Sacramento City Council unanimously approves interim city manager to oversee budget deficit

The Sacramento City Council voted unanimously Tuesday to approve a contract for an interim city manager who will steer the city through a nearly $77 million budget deficit.

Leyne Milstein, the city’s former finance director and most recently assistant city manager, was approved for the top position after council members did not extend the contract for Howard Chan last year. She oversaw finance, human resources and information technology departments while under Chan.

Elected officials praised Milstein’s ability to navigate through budgetary issues she draws from a 28-year career in public service. Before joining city ranks in 2005, she worked for state government agencies, including time as an analyst for the California Department of Finance.

Councilmember Caity Maple echoed those ideas on Tuesday and noted Milstein oversees about 5,000 employees and city finances. The city will face an estimated $77 million budget deficit in the upcoming fiscal year which begins in July.

“Obviously, we have some very challenging months ahead,” Maple said in reference to the budget deficit.

Milstein will earn $352,000, and retain the ability to collect vacation hours beyond 480 hours, according to a city memo. She will also have the option of returning as assistant city manager making the same pay after a new manager is selected.

Chan made $262,627 when he became interim city manager in 2016. Toward the end of his tenure, he was earning $593,240 in total wages in 2023. His salary established him as the second highest paid city manager in California.

The base salary for a city manager falls between $248,465.45 to $400,652.50, according to the city’s salary schedule.

Last week, when the City Council voted to appoint Milstein, Councilmember Mai Vang voted in opposition and Councilmember Roger Dickinson abstained from the vote.

Both voted in favor of Milstein’s contract Tuesday and did not immediately respond to a request for comment.

Milstein will help to search for a new city manager. Council members have said that process could take anywhere from about six to eight months.

Milstein did not comment on her approval.

Sacramento resident Henry Harry, who spoke during the portion of the meeting allocated for public comments, voiced opposition to Milstein’s pay and how the meeting to approve her contract happened in the middle of Tuesday, when many are at work and cannot come to the meeting.

“It’s shady,” Harry said.

Councilmember Lisa Kaplan said previously she hopes residents have a chance to comment on the process to select a new city manager and provide their priorities for next top leader.

This story was originally published January 14, 2025 at 3:42 PM.