Sacramento city manager’s pay was highest in the state last year. Will he get another raise?

Sacramento City Manager Howard Chan earned more last year than any other city manager in California.

Chan earned $493,655 in regular pay in 2022, according to data the state controller’s office released this week.

The council in November approved a $400,652 base salary for Chan. The controller’s office figure is higher because it includes retroactive pay Chan received for the raise, dating back to Jan. 1. 2022, Chan said. That made Chan the highest paid city manager in the state in regular pay.

Santa Clara’s city manager came in second in regular pay, at $468,674. Santa Clara is a Silicon Valley town with about 132,000 people where the median home price is around $1.5 million, about $1 million more than the median home price in Sacramento.

Chan’s total wages hit $547,905, according to the state data because he cashed out his vacation and leave time, as his contract allows.

In total wages, only two city managers earned more than Chan, neither of whom are still serving in their positions. They include the former city managers of Montebello and Palmdale, who each appeared to receive large payouts in 2022 following court settlements related to their dismissals.

Chan declined comment for this story.

It appears the council earlier this week discussed yet another raise for Chan. The council agenda for a closed session June 20 includes an item for negotiations regarding the city manager. Following the closed door meeting, City Attorney Susana Alcala Wood did not announce during the public meeting that the council had taken any action. That means they did not approve another raise for Chan, though they could do so in the future.

Councilwoman Katie Valenzuela was the only council member who voted against Chan’s November raise. Since then, three new council members have been sworn in. It’s unclear if another raise would get the five votes needed to pass.

Under Chan’s leadership, the city weathered the pandemic without significant cuts or service disruptions, and opened a new convention center and performing arts center downtown. Since 2018 the city has opened 1,100 homeless shelter beds and spaces, costing about $42 million annually. Chan has also come under criticism for annual increases to the the police budget, and for not opening more homeless weather respite centers. Falling trees killed two homeless people during a January storm, and another three unhoused people froze to death in November.

Chan earned about $130,000 more in total wages last year than Sacramento County Executive Ann Edwards, who oversees a roughly $7 billion budget compared to the city’s $1 billion.

Chan’s pay has grown steadily and 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 $158,652, while the other eight council members make $99,317. Gov. Gavin Newsom’s salary is $224,000.