Sacramento city manager, whose pay was highest in state last year, gets new raise
Sacramento City Manager Howard Chan, who earned more than any other city manager in the state last year, will receive a raise, the council decided Tuesday.
Chan’s new annual base salary will hit roughly $420,000, an increase of about $20,000.
Chan will also receive 240 hours of leave time, which his contract allows him to cash out at his discretion.
Mayor Darrell Steinberg, along with council members Katie Valenzuela and Mai Vang abstained from the vote.
Steinberg raised concerns with the 240 hours of leave time.
“We face a multi-million dollar deficit next year,” said Steinberg, referring to the fiscal year that starts July 1. “I do have the highest regard, respect and affection for the man sitting to my left ... I wanna say I fully support his salary increase ... as a matter of conscience I’ve had a change of heart regarding the hours question. For me it is an ask that I am uncomfortable with at this time given the challenges we face in the upcoming year.”
Chan declined comment for this story.
His total payout will likely be higher than his new base salary. In 2022 Chan earned more than any other city manager in the state, according to data from the state controller’s office. That year his base salary was $400,652, but his regular pay was $493,655 due to 10 months of retroactive pay from a raise the council approved in November 2022. His total wages climbed higher, to hit $547,905, because he cashed out his vacation and leave time.
According to the city staff report, posted online hours before the meeting, his new raise will include retroactive pay back to Feb. 11, 2023.
The council was set to consider a raise for Chan over the summer, but pulled it from the agenda. It has discussed the topic in numerous times behind closed doors since then.
During the same meeting, which was called to order at 9:20 p.m. Tuesday after the previous council meeting was adjourned, the council also approved new labor contracts with the police officer union, and Local 39, the city’s largest union. The council had previously approved a contract with the firefighters union.
The Local 39 contract, which covers some of the city’s lowest paid workers, includes raises higher than the 5% Chan received, Steinberg said.
The new police officer contract includes 6% raises this year, and 4% raises next year, including retroactive pay for some officers.
There are still several outstanding city labor contracts, but the largest ones are now finalized.
The council also Tuesday awarded City Attorney Susana Alcala Wood a raise, bringing her new base salary to roughly $368,000 a year, retroactive to March 25. Her current base salary is $351,048 according to an employee salary roster that The Sacramento Bee obtained from a California Public Records Act request. The city treasurer, city clerk, city auditor and director of public safety accountability, whose salaries are lower than Chan and Alcala Wood, also received raises.
Under Chan’s leadership, the city weathered through the COVID-19 pandemic without significant cuts or service disruptions, and opened a new convention center and performing arts center downtown. Since 2018 the city has opened roughly 1,300 homeless shelter beds and spaces, which is more than the county, which has a higher budget. Chan has also come under criticism for annual increases to the the police budget, approved by council, and for not yet opening any homeless Safe Grounds five months after council gave him authority to do so.
Chan’s pay has grown sharply since 2018, his first full year in office. Back then, he made about $305,000 in total wages.
As of June, Steinberg’s base salary is $164,205, while the other eight council members make $102,793. Gov. Gavin Newsom’s salary is $224,000.
Valenzuela was the only member to vote against Chan’s raise in November 2022.
Chan’s current contract expires Dec. 31, 2024.
This story was originally published December 13, 2023 at 11:32 AM.
