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<\/a> had made him a controversial figure.<\/p>\n Chan\u2019s 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.<\/p>\n 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 tax documents and payrolls obtained by The Bee through a public records act request. He collected $412,041.35, while she received $392,763.06 in total earnings, records show.<\/p>\n 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.<\/a><\/p>\n 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.<\/p>\n Chan did not immediately respond to a request for comment. In a previous statement, Chan said he had 22 years to accrue \u201csignificant leave balances\u201d which he has opted to cash out each year.<\/p>\n The terms of Chan\u2019s 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.<\/p>\n Chan made $327,039.14 in regular pay. But the final pay stub shows his earnings also included a $16,950.68 in \u201csick payoff(s)\u201d and $26,067.45 in \u201cvacation payoff(s).\u201d He also collected $16,075.07 in holiday pay and $15,409.71 in \u201cadditional time off pay.\u201d<\/p>\n Chan was California\u2019s second highest paid city employee in 2024 with $789,147 in total earnings, according the California State Controller\u2019s Office.<\/p>\n Chan\u2019s pay \u2014 which rose 48% between 2017 and 2022 \u2014 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.<\/p>\n As the new city manager,<\/a> Smith\u2019s pay is $399,000 coupled with 160 hours of \u201cmanagement leave,\u201d 40 hours of which Smith can cash out in this calendar year. She also received a $50,000 relocation allowance.<\/p>\n This story was originally published April 8, 2026 at 5:00 AM.<\/p>\n Related Stories from Sacramento Bee<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/img-26-04-07-08D58.jpg\" "\\"img-26-04-07-08D58.jpg\\"")
The final 2025 pay stub for Assistant Sacramento City Manager Howard Chan, released with redactions by the city in response to The Bee\u2019s public records request, shows the total earnings, car allowance and other incentives Chan received. City of Sacramento <\/p>\n
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