Committee recommends Harbor Master budget; officials outline mooring, launch and vessel plans

The City of Salem Committee on Administration and Finance recommended approval of the Harbor Master—Y26 budget on May 20, 2025 after hearing a status update and capital requests from Harbor Master Bill McHugh.

The vote matters because the harbor's operating revenues and revolving accounts support seasonal staffing, equipment and a FEMA grant match for a new multi-mission vessel. The committee also discussed mooring availability and the return of a water taxi service that could affect transient vessel revenue and harbor operations.

Bill McHugh, the harbor master, told the committee that "this fiscal year, '26 budget is relatively the same. No major changes." He described how the harbor budgets part-time watch staffing by hours and adjusts start dates based on weather and season length; he said seasonal patrols typically continue "until at least November 1." McHugh said the harbor logged an especially busy season the prior year and that personnel levels have been increased this spring to meet higher call volumes.

Councilors pressed McHugh on several operational items. When asked about "increased water excursion capacity with new offerings," McHugh said launch service will resume using vessels operating out of Congress Street and Blaney Street and that private operators, including an operator who purchased a Hinkley launch in the fall, won an RFP to run water taxi service. "They're gonna operate there," he said, referring to the Congress Street dock, and the operator will pay a fee to use section of the dock house.

McHugh explained fluctuations in performance measures and permit counts. He said Chapter 91, Section 10A mooring permits are issued only when rental moorings are filled; the marina lso has roughly 263 rental moorings. He noted increased average boat sizes ("closer to 40 feet" from about 20 feet historically) reduces how many vessels fit in existing mooring fields. That change, plus delayed construction of a marshaling yard at the deepwater berth, affected vessel movement and some revenue projections.

On capital items, McHugh described a FEMA Port Security grant that will cover 75% of the cost of a new small Safe Boat International interceptor-style vessel; the harbor account will pay a 25% match drawn from the Harbor Master revolving account (winter boat storage revenue). McHugh said the boat contract is in place and he expects the vessel to be "in service next season." He also said a refit of an existing boat will be covered by insurance and that Glendale Street yard won the RFP to do the refit.

The committee moved to recommend approval of the Harbor Master personnel line item of $395,121 and an expenditures line item of $60,299 for a department total of $455,420. Councilor Stock made the motion, Councilor Davis seconded, and roll call votes recorded Councilor Davis (yes), Councilor Stock (yes), Councilor Watsonfeld (yes) and Chair Merkle (yes); the committee recommended approval.

The committee and McHugh noted next steps: capital items remain in the five-year plan and funding-source votes will be considered by the full council on June 11. McHugh also said the harbor is marketing enhanced transient mooring options through the electronic harbor management system that accepts credit-card payments and provides a chart view of rental moorings for transient users.

Details and context that informed the discussion include waiting lists for moorings (McHugh estimated one to three years depending on boat size and location), the 75/25 FEMA funding split for the new vessel, and the harbor's policy of not issuing long-term permits for rental moorings that are not being used in order to preserve access for recreational mariners. McHugh said the harbor gives escorts to certain arriving vessels for public safety and that delays in construction at the deepwater berth affected predictions for this season.

Committee members thanked McHugh for his work on the new Salem Willow's Pier projects and for startup work on the ferry building. The committee moved on to capital-improvement items after recommending the Harbor Master budget.

Ending note: the harbor's FY26 budget recommendation now proceeds to the full council; the council will vote on funding sources and the overall capital plan on June 11, 2025.