The move comes amid an investigation into nearly $400,000 missing from the fire and rescue department and after a request last month from the Town Council to step down by July 1.
Mayor Ronnie Williams has said Mitchell had nothing to do with the missing money but that he was being held accountable as head of the department.
Fire department officials informed Garner town leaders in January of the missing money, which was uncovered during an outside audit of the department's books from July 2008 to June 2009.
When the State Bureau of Investigation was called to start looking into the situation, Amy Moore, an administrative assistant who handled the fire department's finances, abruptly resigned.
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