Payroll documents released this week show former Sacramento City Manager Howard Chan walked away from 2025 with a bigger payday than the interim manager who stepped in after him, keeping the simmering fight over top‑level City Hall pay very much alive. The disclosures landed just as Sacramento settles into a new administration and a newly hired city manager takes the chair.
How Chan's Paycheck Topped His Stand-In
Payroll records obtained by The Sacramento Bee show Chan collected $412,041.35 in total earnings in 2025. That included $327,039.14 in regular pay, plus multiple leave cash‑outs. The same review of city payrolls shows interim city manager Leyne Milstein received $392,763.06 in total earnings for 2025, which left Chan with the higher haul even though he was no longer running day‑to‑day operations.
Near the Top of California's City Hall Pay Charts
Public compensation records compiled by the state put Chan close to the top of municipal pay lists, at roughly $789,147 in total pay for 2024, according to Transparent California. That pay level, which included large lump‑sum cash‑outs in prior years, helped trigger sharper council oversight and increasing public criticism.
The Fine Print on Chan's Payout
Paystubs reviewed by The Sacramento Bee show Chan received separate payments in 2025 for holiday pay, sick pay and vacation cash‑outs. Public records list $16,075.07 in holiday pay, $16,950.68 in sick payoff and $26,067.45 in vacation payoff, along with other line items. The documents also show a $15,409.71 payment described as additional time‑off pay. Chan told the paper he had 22 years to accrue “significant leave balances,” a defense his supporters say reflects long public service rather than any attempt to engineer an unusually large cash‑out.
The New Boss's Deal
Maraskeshia Smith, who took over as Sacramento's city manager on Jan. 5, 2026, signed a three‑year deal with a $399,000 base salary, a $50,000 relocation allowance and standard management‑leave and severance protections, according to the city's term sheet reported by CapRadio. Hoodline's coverage of Smith's first day noted the contract also includes an auto and technology stipend and nine months of pay if she is terminated without cause. Council members framed the new deal as an effort to rein in the runaway pay practices critics highlighted under the previous administration.
Political Fallout and New Guardrails
The city council voted in December 2024 not to renew Chan’s contract. In the months that followed, it adopted new rules that limit a city manager's ability to place raises on council agendas, reflecting public pushback over the payouts. KCRA and other local outlets reported the rule change after a controversial December vote that would have boosted Chan's pay further. Council members have signaled they want clearer guardrails around leave cash‑outs and lump‑sum payments as the city navigates tight budgets.
Bottom Line
For residents watching Sacramento's finances, the numbers are a reminder that contract details around accrued leave can carry hefty price tags. The city manager oversees roughly a $1.6 billion operating budget, and critics say tighter rules on leave cash‑outs and more transparent disclosures are overdue, according to reporting by CapRadio.
