FERGUSON, Mo. — Embattled Ferguson Police Chief Thomas Jackson resigned Wednesday, according to the city, which said both sides “agreed to a mutual separation.” The resignation is effective March 19 and comes one week after a scathing Department of Justice report exposed problems in the city’s policing tactics. Jackson will receive a severance payment and health insurance for one year, with Lt. Col. Al Eickhoff assuming his duties during a nationwide search for a new chief, the statement said.

Jackson had previously indicated he might willing to step down, but first he wanted to ensure that the police department stayed in place and was not disbanded. There has been talk about whether the St. Louis County Police Department should take over policing duties in Ferguson.

Ferguson City Manager John Shaw stepped down on Tuesday, following a scathing Department of Justice report that exposed problems in the city’s policing tactics. The report mentioned both men by name.

Jackson could not be immediately reached for comment.

The Justice Department’s report faulted Ferguson’s officers for seeing residents as “sources of revenue,” a practice that disproportionately targeted African-Americans.

The investigators also found evidence of racist jokes being sent around by Ferguson police and court officials.

Two police officers resigned last week and the city’s top court clerk was fired in connection with racist emails, city spokesman Jeff Small said on Friday.