HomeMy WebLinkAbout111620_ra0210:45 a.m. Regular Agenda
Commissioners Chambers
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
Philip Morley, County Administrator
FROM: Leslie Locke, Executive Assistant
DATE: November 16, 2020
SUBJECT: UPDATE re: Washington State Department of Natural Resources Quarterly County
Income Report
STATEMENT OF ISSUE:
Mona Griswold, DNR Regional Manager, and Drew Rosanbalm, DNR State Lands Assistant, will provide
the Commissioners with an update regarding the Washington State Department of Natural Resources
Quarterly County Income Report.
FISCAL IMPACT:
DNR Representatives will discuss timber sales and revenue reports.
RECOMMENDATION:
No Action Required
T T<77T ti 7T.TT ilt7_
Date
November 3, 2020
The Honorable Greg Brotherton, Chair
Jefferson County Board of Commissioners
P.O. Box 1220
Port Townsend, WA 98368
Dear Commissioner Brotherton:
N F U t�uu
To protect the safety of staff and community members across the state, the Washington State Department of Natural
Resources has closed its offices to the public during the COVID-19 outbreak. However, DNR remains open for
business, even with many of its staff working remotely. Please contact agency staff via phone or email as much as
possible.
We are working to navigate through the disruptions to normal operations, and we appreciate your patience during
this time of uncertainty. For further information on changes across the agency related to the COVID-19 outbreak,
please go to dnr.wa.gov.
The Washington State Department of Natural Resources (DNR) manages approximately 14705 acres of
State Forest Transfer and Purchase Lands that benefit Jefferson County. These lands generated
1,979,000 in the first three quarters of calendar year 2020. Net value under contract for calendar year
2020 is estimated at $3.738,000 from activities expected to occur under current contracts.
The income information in this report does not include anticipated revenues from additional planned
activities (contracts harvests, leases, easements, etc.) for which contracts have not been finalized. These
income estimates are net after the current agency management cost percentage has been applied.
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 occur. Market conditions, weather,
contract requirements, and regulatory requirements influence timber purchasers' decisions about when to
harvest.
DEPARTMENT OF EXECUTIVE MANAGEMENT 360-902-1004
NATURAL RESOURCES PO BOX 47001 CPL@DNR.WA.GOV
OLYMPIA WA 98504 WWW.DNR.WA.GOV
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 Transfer and Purchase Lands.
Should you have any questions regarding this information, please contact Mona Griswold, Olympic
Region Manager, at 360-374-2800 or at mona.griswold@dnr.wa.gov.
Sincerely,
Hilary S. ranz
Commissioner of Public Lands
Enclosures
COUNTY INCOME REPORT
EXPLANATION OF TABLES
October 2020
Two categories of lands are managed by the Washington State Department of Natural Resources (DNR)
specifically to benefit counties:
1. State Forest Transfer Lands. Lands acquired by counties through tax foreclosures were transferred to
DNR to manage. Management fee rates are established by the Board of Natural Resources. Currently,
counties receive 75 percent of the revenue from these lands.
2. State Forest Purchase Lands. State -issued bonds were used to acquire certain parcels from private
owners. Typically, these forest lands had been severely logged and were in need of active management.
Allocation of revenue from these lands was determined when purchase was authorized, as follows: 26.5
percent to the county in which the property is located; 50 percent to DNR for management expenses;
and the remaining 23.5 percent to the State General Fund.
Nineteen counties include these types of State Forest Lands within their county boundaries.
Income from management activities on State Forest Lands is designated for allocation to several taxing districts
in each county. Only a small amount is available to the county for discretionary use.
Revenue from State Forest Lands originates primarily from timber sales. These amounts vary widely as market
conditions fluctuate. Smaller portions of revenue are derived from activities such as communication site leases,
rights -of -way easements for utilities and roads, special forest products, special uses, and interest. Income will
also vary with the number of revenue -generating activities within a given year. Variables responsible for high
revenues in one year can lead to reduced income the following year.
• Table 1 shows the annual revenue for each county from calendar year 2010 through the third quarter of
calendar year 2020. This table illustrates the variability in total revenues from year to year.
• Table 2 shows projected revenue for all 19 counties from all activities on State Forest Lands for
calendar year 2020.
• Table 2A shows projected revenue for each timber sale on State Forest Lands in your county anticipated
to occur for 2020 and beyond (enclosed if applicable).
• Table 3 shows the volume and net value under contract as of September 30, 2020 that is not currently
scheduled for harvest until after December 2021 (enclosed if applicable).
Projections were developed by DNR region staff by contacting each timber purchaser that has rights to an
upcoming sale. Purchasers were asked how much and when they planned to harvest the timber from each sale.
These projected timber revenues should be considered rough estimates only; actual activity will depend on
individual sale characteristics (species, volume, location, etc.), combined with outside market factors as
determined by each purchaser.
The schedule of future timber sales from State Forest Lands in your county is available upon request from
Department of Natural Resources' region staff.
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Table 2. Total Projected Revenues to Counties from State Forest
Transfers and Purchase Lands'
(Dollars in Thousands)
October thru December 2020
Jan thru December 2021
County
High
Medium
High
Medium
Clallam
$995.8
$1,240.5
$367.1
$2,174.4
Clark
246.9
246.9
1,126.2
1,175.0
Cowlitz
1,985.1
1,985.1
11.5
11.5
Grays Harbor
0.0
141.9
3.0
1,598.3
Jefferson
1,759.4
1,759.4
252.9
252.9
King
17.9
96.4
2,952.1
4,085.6
Kitsap
18.4
381.6
57.2
178.3
Klickitat
3.6
20.2
4.3
153.5
Lewis
3,079.1
3,168.8
3,552.3
4,561.2
Mason
581.2
839.9
796.6
2,215.2
Pacific
472.6
472.6
2,005.8
2,023.2
Pierce
0.0
0.0
4.0
4.0
Skagit
2,383.4
2,816.5
666.6
4,784.9
Skamania
772.8
854.0
697.0
1,059.3
Snohomish
3,344.2
3,344.2
1,550.0
2,597.9
Stevens
11.2
11.2
92.0
92.0
Thurston
809.6
1,413.5
808.7
6,471.1
Wahkiakum
0.2
0.2
1.6
1.6
Whatcom
364.2
625.0
279.9
339.8
Totals
$16,845.6
$19,418.1
$15,228.8
$33,779.8
High - 90 percent reliability that timber harvest will occur and stated revenue will be transmitted.
Medium - 50 percent reliability that timber harvest will occur and stated revenue will be
transmitted.
Note: Projected revenues are based on timber purchaser's logging plans as of September 2020.
These plans change with changes in the economy and the business needs of each purchaser.
Department of Natural Resources' region staff should be contacted concerning possible fluctuations
in timber harvest for sales currently under contract and the schedule of future sales on State Forest
Lands in your county.
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