Thurrock Council in Essex has asked the government for exceptional a 469m funding black hole following a series of failed investments.
Sean Clark, the council’s corporate director of resources, was cautioned about “remarkable” risks being seized.
A council spokesman said he tendered his resignation, which was accepted.
The government lent the council £850m to pay back loans from other UK councils, but it still left the local authority unable to balance its budget.
Essex County Council is due to publish its best value inspection report on 17 February, which is expected to identify mistakes that were made but also provide recommendations.
The local authority has already scrapped and 26m scheme to build 82 affordable houses and has proposed closing some job vacancies.