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David Timmons placed Percy on leave on Wednesday after an internal complaint was filed, he said.
Both Timmons and Percy declined to make further comment.
A City Council executive session to discuss the matter has been scheduled for 6:30 p.m. Monday in council chambers at historic City Hall, 540 Water St.
Timmons said that he hopes to issue a statement with details of the action sometime next week.
Percy has worked at the library since 2003.
A $3 million bond to support library expansion is on the Aug. 6 ballot. Timmons said he did not know how Percy’s leave would affect the bond effort.