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By Investigative Reporter, Linda Sutter – January 30, 2026
January 28, 2026 I had hoped to continue filming the Harbor District meeting, however the wireless portion was cut so I could not continue to record live. The meeting was very contentious!
COUNTDOWN OF THE HARBOR DISTRICT: A SYSTEM IN FREEFALL
The January 16, 2026 Harbor District meeting revealed yet another chapter in a long‑running saga of dysfunction, selective enforcement, and financial instability. As usual, the rules of decorum were applied unevenly.
THE DOUBLE STANDARD: Roger Gitlin was allowed to shout from the audience without consequence, while I was reprimanded for so much as whispering under my breath.
Roger Gitlin
But the real story isn’t the double standard — it’s what the District is hiding from the public.
I attempted to present a factual financial report during public comment, but Chair Shepherd and Commissioner Evans moved quickly to silence me. Since they refused to allow the public to hear it, I’m publishing it here.
THE DISTRICT’S FINANCIAL REALITY: NEAR INSOLVENCY
The Crescent City Harbor District was nearly insolvent before December’s property tax money arrived. Throughout November and December, the District’s checking account repeatedly fell below $15,000, an alarming threshold for any public agency with payroll, utilities, and debt obligations.
To stay afloat, the District relied on two emergency transfers in December alone:
$19,000 on December 5
$20,000 on December 18
These transfers totaled $39,000, and they were not optional — without them, the District would not have been able to pay its bills or meet payroll.
Meanwhile, payroll withdrawals through HR2Go were extremely high and did not align with the Profit & Loss statements. Vendor payments were also unusually heavy, with dozens of checks issued per week.
The Cash Flow Reports paint a clear picture: the District was cash‑starved for most of November and December, then suddenly appeared “healthy” only after tax money and internal transfers hit the account at the end of the year.
NOVEMBER 2025: LIVING PAYCHECK TO PAYCHECK
- Beginning balance: $33,011.50
- Ending balance: $27,604.68 (matching the Balance Sheet’s $27,605)
Most of November’s activity centered on HR2Go. Multiple payroll‑related debits totaled well over $40,000–$50,000. The District had to make an emergency transfer just to cover expenses. At one point, the account dropped to $11,000, a dangerously low level for a public entity.
In plain terms, the District was living paycheck to paycheck, relying on constant deposits and transfers to avoid overdraft while processing unusually high payroll and vendor outflows.
DECEMBER 2025: RUNNING ON FUMES UNTIL TAX MONEY
On December 4, HR2Go debits totaled about $25,000. On December 19, HR2Go debits totaled nearly $30,000 in a single day.
Before the property tax apportionments hit, the District was running on fumes. The two emergency transfers — $19,000 and $20,000 — were necessary just to keep the account positive.
Across November and December, HR2Go pulled over $50,000 per month.
Only after the December property tax deposits — totaling $260,125 — did the account jump to the year‑end balance of $296,605.31. Without that tax money, the District would have been insolvent.
SANDY MORENO’S REPORT: WHAT IT REALLY MEANS
Sandy Moreno
Sandy Moreno’s January 16 report attempted to shift blame, but the facts tell a different story.
USDA extended the loan modification deadline.
- Moreno implied this delay was caused by “Linda Sutter and Annie Nehmer sticking their fingers where they don’t belong.” But the truth is simple: The District missed the original deadline.
USDA granted an extension because the District was not ready and had not provided required documents Loan modification delays often signal financial instability.
2. “Staff are still working on the insurance review”
This could refer to:
- Ongoing problems with bond compliance, or
- The District’s failure to secure inner basin insurance.
Either way, USDA will not overlook incompetence. The District was given an additional 30 days, from January 16 to February 16, 2026.
3. “RV operations plan still incomplete”
This is a major issue:
- USDA requires a sustainable operations plan for loan modification.
- The District has been operating for months without a finalized plan.
- This is one of the District’s largest revenue sources — and they still don’t have a plan.
4. “The Board of Supervisors supports the plan”
That remains to be seen. Support is not approval, and it certainly is not compliance.
THE ATTEMPT TO SILENCE PUBLIC COMMENT
After Moreno finished her report, Chair Shepherd opened public comment.
Chair Rick Shepard
Commissioner John Evans
But the moment I began to speak, both Shepherd and Evans argued to silence me.
In open session, Shepherd went so far as to say “Linda Sutter is gross” and directed staff to remove my comments from the audio recording.
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