HomeMy WebLinkAbout120913_ra03JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
FROM: Philip Morley, County Administrator
DATE: December 9, 2013
RE: UPDATE: Washington State Department of Natural Resources County Income
Reports with Sue Trettevik, DNR Regional Manager, and Drew Rosanbalm, DNR
State Lands Assistant
STATEMENT OF ISSUE: This is a regular quarterly update on Washington State Department
of Natural Resources' County Income Report with Sue Trettevik, DNR Regional Manager and
Drew Rosanbahn, DNR State Lands Assistant. The revenue from timber harvests on State Forest
Board lands in Jefferson County is distributed to the various taxing districts in which the forests
are located.
ANALYSIS: See attached letter from Commissioner Peter Goldmark. Customarily, DNR's
Olympic Region staff also presents to the County Commissioners a refined projection of timber
harvest volumes and revenues from State Forest Board lands in Jefferson County. Olympic
Region Manager Susan Trettevik and State Lands Assistant Drew Rosanbalm will attend and
make the presentation.
FISCAL IMPACT: DNR's actual and project timber harvest from State Forest Board Trust
lands directly impact County revenues in 2013 and revenues projected for 2014 within the
County's General, Road Fund and Conservation Futures Fund, as well as revenues to a wide
variety of junior taxing districts which contain State Forest Board lands.
RECOMMENDATION: Hear the update and participate in the discussion that follows.
ATTACHMENT: Letter from Public Lands Commissioner Peter Goldmark, October 31, 2013.
REVIEWED BY:
n
Phi strator Date
Peter Goldmark
Wash r,igton State
C,orl,misslo,er of Public Lams
s
t9
October 31, 2013
The Honorable John Austin, Chair
Jefferson County Board of Commissioners
P.O. Box 1220
Port Townsend, WA 98368
Dear Commissioner Austin:
The Washington State Department of Natural Resources (DNR) manages approximately 14,703
acres of State Forest Lands that benefit Jefferson County. These lands generated $106,000 in the
first three quarters of calendar year 2013 and are projected to generate $368,000 for all of
calendar year 2013 from activities expected to occur under current contracts. This represents a
decrease of $580,000 from the 2013 projection in the July 2013 report.
Net value under contract for harvest after calendar year 2013 is estimated at $2,135,000. This
income information does not include anticipated revenues from additional planned activities for
which contracts have not been finalized. Projections of income after July 2, 2013 reflect the
management fee of 25 percent, as adopted by the Board of Natural Resources on that date. The
projections do not, however, reflect the remaining deductions for repayment of the erroneous
trust distributions that occurred between 2010 and 2012.
Some counties receive portions of their income from leases and fees; however, the majority of
income reflected in this report is derived from timber sales. As most revenue stems from timber
sales, these projections can fluctuate depending upon when timber harvests actually occur.
Market conditions, contract requirements, and regulatory requirements influence timber
purchasers' decisions about when to harvest. Harvesting could occur earlier if conditions
warrant. Changes in purchasers' plans for harvest will be reflected in future reports. The next
projection of State Forest Land revenues will be available in January 2014.
I appreciate how necessary revenue is to the success of county functions. DNR consistently
strives to ensure that we realize the maximum available income from the State Forest Lands we
manage on behalf of the counties. Should you have any questions regarding this information,
please contact Susan Trettevik, Olympic Region Manager, at 360- 374 -2800 or at
susan.trettevik@dnr.wa.gov.
Sincerely,
Peter Go mark
Commissioner of Public Lands
Enclosures
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