Thumbnail photo by Paul Critz Crescent City Harbormaster Mike Rademaker said the Harbor District is not going broke, though commissioners were asked to approve an adjustment to payroll expenditures Wednesday in order to balance the budget. “We have over $15 million in grants to improve Citizens Dock and the seawall,” he said. “That’s going to fund the majority of the work I’m going to do, plus tsunami recovery is going to be funded, that’s going to be paying for a lot of my payroll and it’s going to be paying for maintenance work.” The Port Infrastructure Development Program grant the Harbor District received from the U.S. Maritime Administration as well as a $1 million appropriation from the California legislature are two of four things keeping the port from going bankrupt, Rademaker said. Revenue generation through the district’s efforts to find developers for its RV parks and the potential renegotiation of its loan with the U.S. Department of Agriculture are two other possibilities for keeping CCHD afloat, he said. Still, two weeks after the Harbor District Board held a budget workshop, their financial officer, Sandy Moreno, said she still had adjustments to make before the 2025-26 revised budget was balanced. She proposed taking about $75,000 out of the Harbor District’s payroll budget to balance its overall budget. “We have a net decrease in position of $373,000 and we only had cash on hand of $300,000,” Moreno said. “We have to be balanced, so I got to come up with $73,000. I’m just going to use the number $75,000. To be whole, I’m going to take $75,000 out of your payroll to balance our budget.” Of that $75,000 from payroll expenses, roughly $36,000 — about $3,000 a month — would come from commissioner expenses and $30,000 would come from payroll processing costs, Moreno said. Moreno said she and Rademaker are still trying to negotiate with the USDA, though the federal government shutdown has delayed those discussions. If the USDA allows the Harbor District to make 10% of its annual payment instead of the entire $260,000 over the next two years, she proposes to allocate Measure C transiency occupancy tax dollars toward maintenance. “”We have a facilities plan and we’re trying to determine if it’s been approved,” she told commissioners, recommending they review the budget on a monthly basis. “We haven’t gotten all that way, but we feel like we’ve got balls rolling in a number of different ways.” Three commissioners approved the revised 2025-26 budget with the adjustments Moreno requested. Commissioners Dan Schmidt and Annie Nehmer dissented. Nehmer argued that to save money, the Harbor District could “take back raises” or revise the health benefits package it offers to employees. Without grant money, Nehmer said, the Harbor District has tax revenue that would pay for the Fashion Blacksmith settlement as well as expenses for January, February and March. “No one wants to address this,” she said. “We have to make hard decisions.” Nehmer suggested the Harbor District might want to approach the Del Norte County Board of Supervisors to obtain a line of credit similar to the assistance supervisors offered the Border Coast Regional Airport Authority to address its cash flow emergency. However, Moreno said if she and Rademaker renegotiated the district’s USDA loan to only have to make a 10% payment this year and next year, CCHD would get a better interest rate than if it obtained a bridge loan elsewhere. The Harbor District isn’t offering raises to its employees this year, Moreno said. She said cutting $75,000 from payroll is also an option that will be on the table in January rather than just shifting funds. Moreno also argued that grant dollars, including the PIDP grant, and the appropriation money would help fund maintenance as well as Rademaker’s pay. According to Rademaker, California lawmakers included $1 million for Harbor District maintenance in Senate Bill 105, which was signed into law on Sept. 17. He referred to the appropriation as a “vital down payment” as the district continues to work with the California Office of Emergency Services to obtain additional recovery funding from the July 30 Kamchatka tsunami that damaged H Dock. However, though the bill was approved last month, Rademaker said Harbor District staff haven’t made a big deal about it because the money likely won’t be disbursed until early 2026. Meanwhile, Moreno said she and Rademaker have been spending a lot of time formulating a plan to propose to the USDA when the government shutdown is lifted. They still hope to convince the USDA that the Harbor District shouldn’t insure its inner boat basin against collision and fire, which includes a $181,000 premium and a $250,000 deductible. Rademaker said he and Moreno were still trying to obtain quotes as well. He said they submitted requests to an insurance agent Nehmer recommended, who may be able to find tsunami coverage for the marina.