Ex-Sacramento City Manager Howard Chan earned more than his interim successor
Sacramento’s city manager earns a high salary as the top executive overseeing a $1.5 billion budget funding homeless services, parks and public safety. But last year, the pay of Sacramento’s interim city manager was less than her subordinate.
Leyne Milstein, the city’s interim city manager for all but a few days of 2025, received less compensation than assistant city manager Howard Chan, according to tax documents and pay stubs obtained by The Sacramento Bee through a public records request.
Chan served as city manager from 2017 to 2024, when the City Council voted not to renew his contract. His high salary and a 2022 council decision to give him 64 weeks of paid leave amid a budget deficit had made him a controversial figure.
Chan’s city manager contract contained a provision granting him a one-year position as a special advisor, or an assistant city manager, after he left the role of the top executive.
Despite making a lower hourly rate than Milstein, Chan still collected more in total wages than her in 2025 through cashing out sick and vacation time, according to the documents. He collected $412,041.35, while she received $392,763.06 in total earnings, records show.
The 2025 W-2 and pay stubs provide a clear view of how Chan leapfrogged his boss through reimbursements for his sick and vacation time. The documents also show the exact earnings he made during his final year in public office, capping an exit denounced by some and applauded by others.
Milstein, who had worked for Chan since 2017, was appointed interim city manager on Jan. 7, 2025. Current City Manager Maraskeshia Smith assumed the role full-time on Jan. 5, 2026.
Chan did not immediately respond to a request for comment. In a previous statement, Chan said he had 22 years to accrue “significant leave balances” which he has opted to cash out each year.
The terms of Chan’s contract are complete, city spokesperson Jennifer Singer wrote in a statement, while noting the city does not comment on personnel matters related to former employees.
Chan made $327,039.14 in regular pay. But the final pay stub shows his earnings also included a $16,950.68 in “sick payoff(s)” and $26,067.45 in “vacation payoff(s).” He also collected $16,075.07 in holiday pay and $15,409.71 in “additional time off pay.”
Chan was California’s second highest paid city employee in 2024 with $789,147 in total earnings, according the California State Controller’s Office.
Chan’s pay — which rose 48% between 2017 and 2022 — was a controversial subject before the City Council, under Sacramento Mayor Darrell Steinberg, voted to give him 64 weeks of paid leave in 2022. The vote came after Chan recommended forgoing raises for city employees because of a budget gap.
As the new city manager, Smith’s pay is $399,000. That comes with 160 hours of “management leave,” 40 hours of which Smith can cash out in this calendar year. She also received a $50,000 relocation allowance.
This story was originally published April 8, 2026 at 5:00 AM.