The Sacramento City Council voted 8-1 this week to increase City Manager Howard Chan’s base salary from $372,700 to $400,652 – a 7.5 percent raise that sets Chan’s base pay $182,096 higher than Governor Gavin Newsom’s.
With bonuses and incentives, Chan’s new compensation could reach $456,994, The Sacramento Bee reported November 2. He will also will receive $500 per month for a vehicle, $100 per month for cell phone costs, and $400 as a monthly expense allowance.
The vote came after a closed meeting that lasted more than two hours.
“Councilwoman Katie Valenzuela voted against the raise, voicing concerns that the council had recently given several city unions smaller raises,” The Bee reported. “Recent contract for police and firefighters, for instance, included 3.5 percent raises.”
Chan’s base salary is the second highest in the state after Santa Clara City Manager Rajeev Batra, who makes $448,492, according to the State Controller’s Office.
“Four California city managers earned more than him last year when bonuses and other incentives are included,” The Bee noted.
The raise is the second that Chan has received in less than two years. In May 2021, the council unanimously approved a 21 percent raise. He did not receive a raise in 2020.