Former Sacramento city manager Howard Chan pays back money owed for legal fees
Former Sacramento City Manager Howard Chan has reimbursed the city for the thousands of dollars in legal fees used to negotiate his contract extension.
The repayment follows reporting by The Sacramento Bee that found Chan had spent $3,215 on a lawyer to help in negotiations to extend his contract and billed it as a personal expense. The city’s acting city manager Leyne Milstein ordered Chan to pay back the money following questions from The Bee.
The city received the money for fees via check on Friday, said city spokesperson Jennifer Singer.
“As public servants, we must be mindful stewards of taxpayer money,” said Mayor Kevin McCarty in a statement to The Bee. “City funds should never cover personal costs. I am appreciative this issue was flagged and thankful for city staff for quickly resolving this issue and ensuring the return of the misused funds.”
The controversy surrounding the legal fees was the latest wrinkle related to Chan’s tenure as city manager. He resigned on Dec. 31, after the City Council rejected his contract extension and months of criticism over his high salary and decision-making. In 2023, Chan made roughly $593,240 in total wages — the second highest for a city manager in the state. He has since taken an assistant city manager role with the city, an option granted as part of his former contract.
Since his resignation, Chan’s name has been mentioned alongside alleged co-conspirators in a bribe to extend his contract.
Chan has repeatedly denied requests to comment over the last few months.
This story was originally published April 2, 2025 at 1:07 PM.
