Newport Beach’s Dual City Manager Salaries: A Financial Dilemma

Residents of Newport Beach are raising eyebrows following the recent decision by the city council to endorse two city manager salaries for 2026. This unexpected choice arises as the current City Manager, Grace Leung, has opted for an early retirement, effective at the end of 2025, a year sooner than initially planned. Such a change prompts questions about fiscal responsibility, transparency, and the methods behind the city’s managerial succession.

Early Retirement and Leung’s Severance Package

Grace Leung’s original contract extended until the end of 2026, yet in a recent council meeting, a new agreement was unanimously passed, allowing her to retire a year earlier. Though her departure might seem cut-and-dry, Leung’s exit comes with a severance package that is worth nearly a full year’s salary, totaling $345,782 along with various benefits including an auto allowance and an additional $24,000.

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Transition to New Leadership

In tandem with Leung’s departure, the council has swiftly appointed Assistant City Manager Seimone Jurjis as the next City Manager, effective December 27, 2025. Jurjis’s contract carries a base salary of $363,071 and has a term running until December 30, 2030, thereby setting a precedent for how the city transitions leadership roles.

Residents, however, like Jim Mosher, have pointed out a crucial issue regarding the recruitment process. The Newport Beach city charter states that the council "shall screen all qualified applicants" when selecting a city manager, prompting concerns about the lack of an apparent application process as the council approved Jurjis’s ascension.

Transparency and Selection Process Controversies

When questioned regarding the recruitment process, Mayor Joe Stapleton maintained that the selection was confidential, emphasizing that while qualifying individuals were screened, disclosing details would be inappropriate. This lack of clarity has left some residents dissatisfied, as the absence of an open application process raises questions about transparency and accountability, crucial pillars of efficient governance.

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Financial Concerns Among Residents

Criticism escalated as residents began to understand that the city would be paying two salaries in 2026, causing concern over fiscal management. Some estimate that taxpayers will absorb nearly $1 million in managerial salaries during this transitional period. Resident Adam Leverenz voiced these concerns starkly at a council meeting, questioning the prudence of this financial strategy, especially when city resources could be better allocated to pressing community needs.

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Balancing Internal Promotions with Community Expectations

Amidst the cut-and-dry discussions on salaries and severance, Councilmember Noah Blom defended the decision to promote from within. He suggested that promoting someone like Jurjis, who already possesses institutional knowledge of the city’s workings, could streamline the transition and perhaps mitigate risks associated with hiring an external candidate. This perspective reflects a broader sentiment found across various sectors, advocating for internal promotions as a method to maintain continuity during leadership changes.

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Conclusion: The Question of Leadership in Newport Beach

As Newport Beach prepares for this managerial transition, two primary concerns loom large: fiscal responsibility and the integrity of the recruitment process. Residents are keen on understanding the broader implications of these recent decisions, especially when it comes to city governance and future leadership transitions. As the city council gears for the looming changes, continual community engagement and transparent decision-making will be pivotal in navigating these complex issues. What remains clear is that Newport Beach will need to evaluate not only its financial obligations but also the methods it employs in choosing its leaders to ensure community trust and effective governance.

For additional updates and developments regarding Newport Beach’s city management, you can follow Voice of OC’s coverage, which provides ongoing commentary and reporting on local governmental affairs.