The City of Toronto is in need of a new manager but Mayor David Miller already knows who he wants to fill the job.

Shirley Hoy, who has held the position since 2001, announced Monday she would be stepping down from her post.

"I truly believe that in a large organization, if I stayed eight or nine years, that would be too long," she said. "They need a fresh set of eyes."

Toronto Mayor David Miller thanked Hoy for her service at the news conference and told reporters he would be recommending council to appoint the city's chief financial officer, Joe Pennachetti.

"The City will benefit from Mr. Pennachetti's significant experience and he will continue to bring the kind of professionalism to the City Manager position that is critical to the success of this City," said Miller. "The new city manager will build on the successes we have had in delivering on the mandate of prosperity, opportunity and liveability."

Council will consider Miller's recommendation at its next meeting in September.

Hoy didn't give a reason for her departure but said she would be seeking employment in the health and social services sector.

At least one city councillor was not pleased with the news. Coun. Michael Thompson blamed Miller for her resignation, saying he is a micro-manager looking for too much power and not allowing staff to do their job.

"The citizens of Toronto have got to rise up and understand what's going on," he told CTV Toronto. "They're going to be fed all sorts of information about why this is a good thing and how the mayor had nothing to do with it.

"Quite frankly, the mayor's office should be held accountable for the exodus of senior staff in this city because it's not at all in our best interest as a city," he said. "It needs to be managed and it's not being managed well."

Fellow councillor Mike Del Grande said he has heard people complain.

"They view this place as controlling, where if you don't follow a particular policy, then you're out of here."

Hoy told CTV Toronto Miller is not the reason she decided to leave. She said she has always felt she could do her job.

Hoy has been manager through many changes at city hall, including through the implementation of the historic Toronto Act, which gave the city for the first time the power to generate its own revenue through taxes.

Hoy took charge during the city's most challenging moments, directing operations during the SARS outbreak, the blackout, the MFP inquiry and labour disruption.

"Shirley Hoy has been an exemplary civil servant, guiding this city through challenging times while positioning its public service as the leading civic administration in Canada," Miller said. "I have always enjoyed working with Shirley and have benefited from her forthright advice, professionalism and devotion to excellence."

Hoy said she is proud of the work she and her colleagues accomplished.

"What I will always be most proud of is the tireless dedication of City staff in delivering innovative and high-quality services to the people of Toronto," she said.

Hoy's final day is scheduled for October 6, 2008.

With a report from CTV Toronto's Naomi Parness