Oak Bluffs town administrator Michael Dutton resigned on Friday morning, capping weeks of tension and speculation over whether he would remain on the job.

The five Oak Bluffs selectmen met behind closed doors for an hour on Friday and then announced in public that they had accepted Mr. Dutton’s resignation, which is effective July 31.

“As a longtime Oak Bluffs resident, Mr. Dutton has served his community in a number of positions over the years,” said selectman and board chairman Kathy Burton, reading from a prepared statement. “The board extends its best wishes to Michael and his family as he pursues other endeavors.”

Mr. Dutton’s resignation follows a severe reprimand from the state attorney general last month over violations to state public bidding laws. An investigation into the violations is ongoing. The town is also experiencing severe financial problems.

Selectmen have met in executive session five times over the past few weeks to consider the discipline or dismissal of Mr. Dutton.

On Friday morning Mr. Dutton left town hall shortly before the selectmen convened and was not present at the meeting.

In the statement, selectmen said he will continue to work with them over the next several weeks as they search for a replacement, although the exact nature of the work was unclear. Selectmen said they intend to hire an interim town administrator while they search for a permanent one.

Mr. Dutton has signed a separation and release contract, and the town will pay him $29,250 in severance pay, and $27,000 in unused vacation time and accrued sick time.

He has served as town administrator since 2006. Before that he served as a town selectmen.

After the meeting the mood was somber in town hall among employees and selectmen, who were tight-lipped about the move. Ms. Burton said only that the decision was “personally difficult.”

A complete story about Mr. Dutton’s resignation and the ongoing financial problems in Oak Bluffs will appear in the Tuesday Gazette.