HomeMy WebLinkAboutHearing re Conservation Futures Pt 2 D 0 uk'M P-n t 9-
Jefferson Land Trust
CONSERVATION FUTURES 202 RESOLUTION
February 20,2024
WHEREAS,Jefferson Land Trust is an applicant or sponsor for more than one Conservation Futures
Funding application,and Conservation Futures Funding Application process requires that Jefferson
Land Trust prioritize its projects,AND
WHEREAS,Jefferson Land Trust has been working for over two decades in partnership with
Jefferson County Conservation District,the Hood Canal Salmon Enhancement Group and private
landowners to preserve the watersheds of Quilcene Bay,and
WHEREAS,the HUMBLEBERRY FARM includes approximately 50.9 acres of lowland and rolling
pastures of prime agricultural soils and Donovan Creek riparian habitat and will be protected for
water quality,agricultural uses and wildlife habitat in the Quilcene Bay area,and
WHEREAS,the Humbleberry Farm is directly adjacent to the Donovan Creek Wetlands Preserve,
Lower Donovan Nature Preserve,Quilcene Heights Conservation Easement and other protected
lands; it is indicated as priority farmland in several local and regional plans, and significant project
funding is likely from the US Navy and the landowner is eager to complete the project,and
WHEREAS,this important community asset will require stewardship in perpetuity,to include annual
monitoring,maintenance,and management,AND
WHEREAS,Jefferson Land Trust has been working since 2004 in partnership with Northwest
Watershed Institute and Department of Natural Resources to acquire and restore critical
forestland,wetlands, riparian, estuarine, and nearshore habitat in the Tarboo Creek and Donvoan
Creek watershed areas, and
WHEREAS,purchase of a conservation easement on the 36.89-acre DEERFOOT HUBBARD
FORESTproperty owned by Penney Hubbard by Jefferson land Trust would protect in perpetuity
critical forest and wetland habitat from subdivision and further development,and will contribute
to the larger Tarboo Creek and Donovan Creek protection efforts, and
WHEREAS,this important community asset will require stewardship in perpetuity,to include
annual monitoring,maintenance, and management, THEREFORE
BE IT HEREBY RESOLVED that Jefferson Land Trust agreed at its February 20,2024 Board of
Directors meeting to sponsor two applications to the Jefferson County Conservation Futures
Program. The Board agreed that the highest priority is funding for acquisition of parcels in the
HUMBLEBERRY FARM. The second highest priority is funding for the acquisition of a
conservation easement on the DEERFOOT HUBBARD FOREST.
Jefferson Land Trust Page 1 of 2
Signed this 22 of March 2024 Authorized by Board of Directors at their February 20,2024 meeting
Jefferson Land Trust
Tim Lawson, Vice President
Jefferson Land Trust Page 2 of 2
JEFFERSON LAND TRUST
ORGANIZATIONAL CHART
BOARD OF DIRECTORS
➢ RICHARD TUCKER-Executive Director
➢ SARAH SPAETH- Director of Conservation and Strategic Partnerships
BLAISE SULLIVAN-Conservation Coordinator
D ERIK KINGFISHER-Stewardship Director
CARRIE CLENDANIEL-Preserve Manager
JAISE WILSON—Americorps Habitat Enhancement Crew Member
GREG SACHS-Americorps Habitat Enhancement Crew Member
KELCIE KYSAR—Americorps Habitat Enhancement Crew Member
MARLOWE MOSER—Stewardship Assistant
➢ KATE GODMAN-Director of Philanthropy
SARAH ZABLOCKI-AXLING- Development Manager
SYDNEY LAROSE—Development Assistant
RIC BREWER-Community Relations& Events Manager
STEPHANIE WIEGAND-Communications Manager
LILLY SCHNEIDER—Communications Coordinator
D PAULA McNEES-Finance Manager
D CRISTINA VILLALOBOS—Administrative& Preserve Assistant(Matrixed to Stewardship)
➢ RYEN HELZER—Community Forest Manager
Jefferson Land Trust
Board of Directors
2024
Brian Rogers Rick York
Board President • California Department of Fish
• Chancellor of University of and Game - Botanist and
Alaska Fairbanks, retired Biologist, retired
• State of Alaska Legislator,
retired Barry Mitzman
• Reporter and Peabody Award-
Tim Lawson winning Television Producer,
Vice President retired
• Founder and Executive Director • Seattle University Strategic
of Port Townsend School of Communications Director,
Woodworking, retired retired
Craig Britton Ed Thompson
Treasurer • Attorney and land conservation
• General Manager for professional, American
Midpeninsula Regional Open Farmland Trust, retired
Space District, retired
Julie Lockhart
Sherry Moller • Educator and nonprofit
Secretary professional, retired
• Plan Manager for Washington • Executive Director of
FAIR PI WinterSpring, retired
Tom Sanford Jane Guiltinan
• Executive Director of North • Dean Emeritus at Bastyr
Olympic Land Trust University
• Naturopathic Physician, retired
Jefferson Land Trust Board Roster 2024
Ben Wilson
• Healthcare and Technology,
retired
• Board President of Climate
Action Pathways for Schools
Jennifer Harrison
• Head of Gaming
Experimentation, Microsoft
• Managing Director of Earth
Economics
Jefferson Land Trust Board Roster 2024
JEFFERSON LAND TRUST
2024 COMPILED OPERATING BUDGET
INCOME
Restricted Funds
Federal,State&County Grants 108,810
Foundation Grants 90,000
Donor Restricted 501,800
Investment -
Operations Income
Annual Contributions 522,000
Special Events 57,500
Fee for Service 126,750
Investment Income -
Other/Release from Restriction 317,548
Foundation Grants/Unrestricted 13,000
,Total Income 1,737,408
EXPENSE
Direct Program 124,100
Acquisition &Conveyance -
Land/Easement Holding 47,200
Professional Services 168350.00
General &Administrative 1,396,286
Total Expense 1,735,936
Net Income 1,472
INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASUkY
DISTRICT DIRECTOR
2 CUPANIA CIRCLE-
MONTEREY PARR, CA 91755-7406
Employer Identification Number:
Date: MAY 03 1994 91-1465078
Case Number:
954109002
JEFFERSON LAND TRUST Contact Person:
C/O DOUG MASON PRES TYRONE THOMAS
PO SOX 1610 Contact Telephone Number:
PORT TOWNSEND, WA 98368-0109 (213) 894-2289
Our better Dated:
May 08, 1990
Addendum Applies:
No
Dear Applicant:
This modifies our letter of the above date in which we stated that you
would be treated as an organization that is not a private foundation until the
expiration of your advance ruling period.
Your exempt status under section 501(a) of the internal Revenue Code as an
organization described in section 501(c) (3) is still in effect. Based on the
information you submitted, we have determined that you are not a private
foundation within the meaning of section 509(a) of the Code because you are an
organization of the type described in section 509(a) (1) and 2.70(b) (1) (A) (vi)
Grantors and contributors may rely on this determination unless the
Internal Revenue Service publishes notice to the contrary. However, if you
lose your section 509(a) (1) status, a grantor or contributor may not rely on
this determination if he or she was in part responsible for, or was aware of,
the act or failure to act, or the substantial or material change on the part of
the organization that resulted in your loss of such status, or if he or she
acquired knowledge that the Internal Revenue Service had given notice that you
would no longer be classified as a section 509(a) (1) organization.
If we have indicated in the heading of this letter that an addendum
applies, the addendum enclosed is an integral part of this letter.
Because this letter could help resolve any questions about your private
foundation status, please keep it in your permanent records.
If you have any questions, please contact the person whose name and
telephone number are shown above.
Sincerely yours,
• Richard R. Orosco
District Director
Letter 1050 (PO/CG)
JEFFERSON LAND TRUST AND SUBSIDIARY
Consolidated Financial Statements
For the Years Ended December 31, 2022 and 2021
TABLE OF CONTENTS
Independent Auditor's Report .......................................................................................................... 1
Consolidated Financial Statements:
Consolidated Statement of Financial Position...................................................................... 3
Consolidated Statement of Activities and Changes in Net Assets-2022 .............................. 5
Consolidated Statement of Activities and Changes in Net Assets-2021 ..............................6
Consolidated Statement of Functional Expenses-2022......................................................... 7
Consolidated Statement of Functional Expenses-2021......................................................... 8
Consolidated Statement of Cash Flows ................................................................................ 9
Consolidating Statement of Financial Position..................................................................... 11
Consolidating Statement of Activities and Changes in Net Assets ...................................... 12
Consolidating Statement of Functional Expenses................................................................. 13
Notes to the Consolidated Financial Statements................................................................... 14
Aken
Pe$ande1► , Inc PS 324 So.Main Street,Unit A,Montesano,WA 98563
CERTIFIED PUBLIC ACCOUNTANTS Telephone(360)533-3370 Fax(360)532-7123
&CONSULTANTS aikenandsanderspaiken-sanders.com
Independent Auditor's Report
To the Board of Directors
Jefferson Land Trust&Subsidiary
Port Townsend,WA
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying consolidated financial statements of Jefferson Land Trust and Subsidiary
(collectively,JLT,a nonprofit organization), which comprise the consolidated statement of financial position as of
December 31,2022 and 2021,and the related consolidated statements of activities and changes in net assets,functional
expenses,and cash flows for the years then ended,and the related notes to the consolidated financial statements.
In our opinion,the financial statements referred to above present fairly,in all material respects,the financial position
of JLT,as of December 31,2022 and 2021,and changes in net assets and its cash flows for the years then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America
(GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of JLT and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits.We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement,whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about JLT's ability to continue as a going concern for one
year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may
involve collusion,forgery,intentional omissions,misrepresentations,or the override of internal control.Misstatements
are considered material if there is a substantial likelihood that,individually or in the aggregate,they would influence
the judgment made by a reasonable user based on the financial statements.
1
MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
In performing an audit in accordance with GARS,we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements,whether due to fraud
or error, and design and perform audit procedures responsive to those risks. Such procedures include
examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness
of JLT's internal control.Accordingly,no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management,as well as evaluate the overall presentation of the financial
statements.
• Conclude whether,in our judgment,there are conditions or events,considered in the aggregate,that raise
substantial doubt about JLT's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit,significant audit findings,and certain internal control—related matters that we identified
during the audit.
Other Information
Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a whole.
The supplementary information on pages 11-13 is presented for purposes of additional analysis and is not a required
part of the consolidated financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the consolidated financial
statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated
financial statements and to certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion,the information is fairly stated, in all material respects,in
relation to the financial statements as a whole.
Aiken&Sanders,Inc.,PS
a4144- &' �'&
Certified Public Accountants
&Consultants
July 28,2023
Montesano,WA
2
Jefferson Land Trust and Subsidiary
A Washington Not For Profit Organization
Consolidated Statement of Financial Position
As of December 31, 2022 and December 31, 2021
Assets
2022 2021
Current Assets:
Cash and cash equivalents $ 2,173,070 $ 1,479,474
Accounts receivable 37,604 4,652
Current pledges receivable 1,063,546 1,017,724
Prepaid expense 1,361 -
Note receivable-current portion - 5,650
Total Current Assets 3,275,581 2,507,500
Land and Conservation Easements:
Habitat land 7,534,455 6,529,764
Working land 97,728 97,728
Open space land 332,761 332,761
Land for sale - 458,751
Conservation easements 69 67
Total Land and Conservation Easements 7,965,013 7,419,071
Fixed Assets:
Furniture, equipment, and improvements 97,340 97,340
Less: Accumulated depreciation (61,086) (54,333)
Fixed assets, net 36,254 43,007
Other Assets:
Long term pledges receivable 471,051 16,542
Long term note receivable - 41,577
Land hold fee-net 8,333 16,666
Investments 1,463,104 1,084,530
Total Other Assets 1,942,488 1,159,315
Total Assets $ 13,219,336 $ 11,128,893
The accompanying notes are an integral part of these financial statements
3
Jefferson Land Trust and Subsidiary
A Washington Not For Profit Organization
Consolidated Statement of Financial Position
As of December 31, 2022 and December 31, 2021
Liabilities & Net Assets
2022 2021
Current Liabilities:
Accounts payable $ 26,399 $ 14,227
Accrued liabilities and deferred revenue 112,823 84,540
Line of credit - 83,537
Total Current Liabilities 1399222 182,304
Long-Term Liabilities:
Note payable - -
Total Liabilities 139,222 182,304
Net Assets:
Without donor restrictions
Undesignated 1,039,705 1,222,389
Board designated 7,833,694 7,181,832
8,873,399 8,404,221
With donor restrictions 4,206,715 2,542,368
Total Net Assets 13,080,114 10,946,589
Total Liabilities &Net Assets $ 13,219,336 $ 11,128,893
The accompanying notes are an integral part of these financial statements
4
Jefferson Land Trust and Subsidiary
A Washington Not For Profit Organization
Consolidated Statement of Activities and Changes in Net Assets
For the Year Ended December 31, 2022
Without Donor With Donor Total
Restrictions Restrictions 2022
Support and Revenues:
Gifts and contributions $ 576,404 $ 2,522,348 $ 3,098,752
Donated lands and easements 977,256 - 977,256
Inkind donations 2,193 - 2,193
Grants and contracts 805,373 - 805,373
Special events income,net of
expenses of$26,761 23,366 - 23,366
Net investment return (76,265) 1,894 (74,371)
Net assets released from restriction 859,895 (859,895) -
Total Support and Revenue 3,168,222 1,664,347 4,832,569
Expenses:
Program services 1,960,104 - 1,960,104
Management and general 438,537 - 438,537
Fundraising 300,403 - 300,403
Total Expenses 2,699,044 - 2,699,044
Change in Net Assets 469,178 1,664,347 2,133,525
Net Assets, Beginning of Year 8,404,221 2,542,368 10,946,589
Net Assets, End of Year $ 8,873,399 $ 4,206,715 $ 13,080,114
The accompanying notes are an integral part of these financial statements
5
Jefferson Land Trust and Subsidiary
A Washington Not For Profit Organization
Consolidated Statement of Activities and Changes in Net Assets
For the Year Ended December 31,2021
Without Donor With Donor Total
Restrictions Restrictions 2021
Support and Revenues:
Gifts and contributions $ 1,534,523 $ 1,588,023 $ 3,122,546
Donated land 382,400 - 382,400
Grants and contracts 720,657 - 720,657
Special events income, net of
expenses of$6,993 32,027 - 32,027
Net investment return 162,538 - 162,538
Net assets released from restriction 397,897 (397,897) -
Total Support and Revenue 3,230,042 1,190,126 4,420,168
Expenses:
Program services 1,018,681 - 1,018,681
Management and general 308,619 - 308,619
Fundraising 223,460 - 223,460
Total Expenses 1,550,760 - 1,550,760
Change in Net Assets 1,679,282 1,190,126 2,869,408
Net Assets, Beginning of Year 6,724,939 1,352,242 8,077,181
Net Assets, End of Year $ 8,404,221 $ 2,542,368 $ 10,946,589
The accompanying notes are an integral part of these financial statements
6
Jefferson Land Trust and Subsidiary
A Washington Not For Profit Organization
Consolidated Statement of Functional Expenses
For the Year Ended December 31, 2022
Management Fund- Total
Program and General Raising 2022
Salaries $ 451,664 $ 237,470 $ 191,204 $ 880,338
Payroll taxes 36,334 19,103 15,381 70,818
Employee benefits 55,597 29,231 23,536 108,364
Value of conservation easements written down 890,117 - - 890,117
Professional fees 343,533 46,843 13,141 403,517
Land and stewardship expenses 93,842 - - 93,842
Rent 15,968 8,396 6,760 31,124
Public awareness 11,758 446 3,585 15,789
Dues and subscriptions 7,069 16,347 11,055 34,471
Insurance 9,773 4,831 3,890 18,494
Postage and printing 10,291 1,096 14,802 26,189
Other 4,969 9,118 815 14,902
Interest expense - 3,525 - 3,525
Travel and seminars 8,661 8,703 161 17,525
Office supplies 7,744 20,254 4,145 32,143
Depreciation and amortization 2,924 3,829 - 6,753
Utilities 7,129 3,748 3,018 13,895
Web design and maintenance 1,350 - - 1,350
Bad debts 890 23,918 - 24,808
Bank fees 491 1,679 8,910 11,080
Total Expenses $ 1,960,104 $ 438,537 $ 300,403 $ 2,699,044
The accompanying notes are an integral part of these financial statements.
7
Jefferson Land Trust and Subsidiary
A Washington Not For Profit Organization
Consolidated Statement of Functional Expenses
For the Year Ended December 31,2021
Management Fund- Total
Program and General Raising 2021
Salaries $ 313,964 $ 177,005 $ 131,269 $ 622,238
Payroll taxes 25,209 14,208 10,541 49,958
Employee benefits 43,427 24,476 18,159 86,062
Value of conservation easements written down 159,999 - - 159,999
Professional fees 301,876 27,253 25,541 354,670
Land and stewardship expenses 84,295 - - 84,295
Rent 27,988 4,437 1,707 34,132
Public awareness 1,627 2,113 1,173 4,913
Dues and subscriptions 1,639 17,924 4,803 24,366
Insurance 11,759 6,628 4,917 23,304
Postage and printing 8,166 26 8,848 17,040
Other 3,650 10,641 522 14,813
Interest expense 197 20 - 217
Travel and seminars 4,991 5,841 116 10,948
Office supplies 8,477 9,394 6,280 24,151
Telephone 809 456 338 1,603
Depreciation and amortization 2,307 5,584 - 7,891
Utilities 9,862 1,564 601 12,027
Web design and maintenance 1,684 - - 1,684
Bad debts 5,578 36 - 5,614
Bank fees 1,177 1,013 8,645 10,835
Total Expenses $ 1,018,681 $ 308,619 $ 223,460 $ 1,550,760
The accompanying notes are an integral part of these financial statements
8
Jefferson Land Trust and Subsidiary
A Washington Not For Profit Organization
Consolidated Statement of Cash Flows
For the Years Ended December 31, 2022 and December 31, 2021
2022 2021
Cash flows from operating activities:
Cash received from grantors, donors and customers $ 3,420,969 $ 2,696,236
Cash paid to suppliers and employees (1,851,446) (1,392,386)
Cash paid for interest (3,525) (217)
Cash received from interest 24,405 14,701
Net cash provided(used)by operating activities 1,590,403 1,318,334
Cash flows from investing activities:
Cash paid for investments (518,055) (29,667)
Cash received from investments 1,894 13,615
Proceeds from notes receivable 41,577 -
Cash paid for property and equipment - (22,249)
Cash paid for land (338,686) (905,752)
Net cash provided(used)by investing activities (813,270) (944,053)
Cash flows from financing activities:
Cash paid on line of credit (83,537) -
Cash received from line of credit - 83,537
Net cash provided(used)by financing activities (83,537) 83,537
Net increase (decrease) in cash & cash equivalents 693,596 457,818
Cash& cash equivalents at beginning of year 1,479,474 1,021,656
Cash & cash equivalents at end of year $ 2,173,070 $ 1,479,474
The accompanying notes are an integral part of these financial statements
9
Jefferson Land Trust and Subsidiary
A Washington Not For Profit Organization
Consolidated Statement of Cash Flows
For the Years Ended December 31,2022 and December 31, 2021
2022 2021
Reconciliation of increase (decrease)in net assets to net cash
provided(used)by operating activities:
Increase(decrease)in net assets: $ 2,133,525 $ 2,869,408
Adjustments:
Depreciation and amortization 6,753 7,891
Bad debts 24,808 5,614
Land hold fee amortization(adjustment) 8,333 8,331
Debt forgiveness - (119,740)
Realized and unrealized losses(gains)on investments 98,776 (147,837)
Donated land (207,256) (382,400)
Changes in assets and liabilities:
(Increase)decrease in accounts receivable (32,952) (1,661)
(Increase)decrease in pledges receivable (480,678) (918,886)
(Increase)decrease in prepaid expense (1,361) -
Increase(decrease)in accounts payable 12,172 (3,062)
Increase(decrease) in accrued expenses and deferred revenue 28,283 676
Net cash provided(used)by operating activities $ 1,590,403 $ 1,318,334
The accompanying notes are an integral part of these financial statements
10
JEFFERSON LAND TRUST AND SUBSIDIARY
Consolidating Statement of Financial Position
Year Ended December 31,2022
Jefferson Land JLT Resources, Consolidated
Trust LLC Subtotal Eliminations 2022
Assets
Current Assets:
Cash and cash equivalents $ 2,150,837 $ 22,233 $ 2,173,070 $ $ 2,173,070
Accounts receivable 37,604 - 37,604 37,604
Current pledges receivable 1,063,546 - 1,063,546 - 1,063,546
Prepaid expense 1,361 - 1,361 1,361
Note receivable-current portion - - - - -
Total Current Assets 3,253,348 22,233 3,275,581 - 3,275,581
Land and Conservation Easements:
Habitat land 7,269,075 265,380 7,534,455 - 7,534,455
Working land 97,728 - 97,728 - 97,728
Open space land 332,761 - 332,761 - 332,761
Land for sale - - - - -
Conservation easements 69 - 69 - 69
Total Land and Conservation Easements 7,699,633 265,380 7,965,013 - 7,965,013
Fixed Assets:
Furniture,equipment,and improvemer 87,203 10,137 97,340 - 97,340
Less:Accumulated depreciation (60,072) (1,014) (61,086) - (61,086)
Total Fixed Assets 27,131 9,123 36,254 - 36,254
Other Assets:
Long term pledges receivable 471,051 - 471,051 - 471,051
Long term notes receivable - - - - -
Land hold fee-net 8,333 - 8,333 - 8,333
Investments 1,796,649 - 1,796,649 (333,545) 1,463,104
Total Other Assets 2,276,033 - 2,276,033 (333,545) 1,942,488
Total Assets $ 13,256,145 S 296,736 $ 13,552,881 $ (333,545) S 13,219,336
Liabilities
Current Liabilities
Accounts payable $ 26,399 $ $ 26,399 $ $ 26,399
Accrued liabilities and deferred revenu 112,823 112,823 112,823
Line of credit - - -
Total Current Liabilities 139,222 - 139,222 - 139,222
Long Term Liabilities
Note payable - - - -
Total Liabilities 139,222 - 139,222 - 139,222
Net Assets
With Donor Restrictions 4,206,715 - 4,206,715 4,206,715
Without Donor Restrictions 8,910,208 296,736 9,206,944 (333,545) 8,873,399
Total Net Assets 13,116,923 296,736 13,413,659 (333,545) 13,080,114
Liabilities&Net Assets $ 13,256,145 $ 296,736 $ 13,552,881 $ (333,545) $ 13,219,336
The accompanying notes are an integral part of these financial statements.
I
JEFFERSON LAND TRUST AND SUBSIDIARY
Consolidating Statement of Activities
Year Ended December 31,2022
JLT Resources, Consolidated
Jefferson Land Trust LLC Subtotal Eliminations 2022
Support and Revenues
Gifts and contributions $ 3,098,752 $ - $ 3,098,752 $ - $ 3,098,752
Donated land and easements 943,100 34,156 977,256 977,256
Inkind donations 2,193 - 2,193 2,193
Grants and contracts 805,373 - 805,373 805,373
Special events income,net of
expenses of$26,761 23,366 - 23,366 23,366
Net investment return (74,403) 32 (74,371) (74,371)
Net assets released from restriction - -
Total Support and Revenues 4,798,381 34,188 4,832,569 - 4,832,569
Program Expenses
Jefferson Land Trust 1,957,902 - 1,957,902 - 1,957,902
JLT Resources,LLC - 2,202 2,202 - 2,202
Total Program Expenses 1,957,902 2,202 1,960,104 - 1,960,104
Management and general 438,537 - 438,537 - 438,537
Fundraising 300,403 - 300,403 - 300,403
Total Expenses 2,696,842 2,202 2,6",0" - 2,699,044
Change in Net Assets 2,101,539 31,986 2,133,525 2,133,525
Capital Transfer - 105,985 105,985 (105,985) -
Net assets-Beginning of Year 11,015,384 158,765 11,174,149 (227,560) 10,946,589
Net assets-End of the Year $ 13,116,923 $ 296,736 $ 13,413,659 $ (333,545) $ 13,080,114
The accompanying notes are an integral part of these financial statements.
12
JEFFERSON LAND TRUST AND SUBSIDIARY
Consolidating Statement of Functional Expenses
Year Ended December 31,2022
Total
Jefferson JLT Resources, Program Management Consolidated
Land Trust LLC Services &General Fundraising Eliminations 2022
Salaries $ 451,664 $ $ 451,664 $ 237,470 $ 191,204 $ - $ 880,338
Payroll taxes 36,334 36,334 19,103 15,381 - 70,818
Employee benefits 55,597 - 55,597 29,231 23,536 - 108,364
Value of conservation easements written di 890,117 890,117 - - - 890,117
Professional fees 343,108 425 343,533 46,843 13,141 - 403,517
Land and stewardship expenses 93,157 685 93,842 - - - 93,842
Rent 15,968 - 15,968 8,396 6,760 - 31,124
Public awareness 11,758 11,758 446 3,585 - 15,789
Dues and subscriptions 7,069 - 7,069 16,347 11,055 - 34,471
Insurance 9,188 585 9,773 4,831 3,890 - 18,494
Postage and printing 10,291 - 10,291 1,096 14,802 - 26,189
Other 4,969 - 4,969 9,118 815 - 14,902
Interest expense - - - 3,525 - - 3,525
Travel and seminars 8,661 - 8,661 8,703 161 - 17,525
Office supplies 7,744 - 7,744 20,254 4,145 - 32,143
Depreciation and amortization 2,417 507 2,924 3,829 - - 6,753
Utilities 7,129 - 7,129 3,748 3,018 - 13,895
Web design and maintenance 1,350 - 1,350 - - - 1,350
Bad debts 890 - 890 23,918 - - 24,808
Bank fees 491 - 491 1,679 8,910 - 11,080
Total Expenses $ 1,957,902 $ 2,202 $ 1,960,104 $ 438,537 $ 300,403 $ - $ 2,699,044
The accompanying notes are an integral part of these financial statements.
13
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Organization—
Jefferson Land Trust (The Land Trust) is a Washington not-for-profit corporation formed on April 7, 1989. The
Land Trust's purpose is to acquire, preserve and manage open space lands and easements for land conservation
purposes benefitting the public. The Land Trust also provides information and materials to the public on land
conservation issues. The Land Trust serves Jefferson County on the Olympic Peninsula in Washington State. The
Land Trust has been accredited by the national Land Trust Alliance since August 5,2009.
On September 5,2007,JLT Resources,LLC was formed with the Land Trust as its only member.JLT Resources,
LLC was formed for the purpose of purchasing and holding land for conservation purposes.
Principles of Consolidation—
These financial statements consolidate the statements of Jefferson Land Trust and JLT Resources, LLC
(collectively,"JLT"). Inter-organization balances and transactions have been eliminated in consolidation.
Basis of accountina—
The consolidated financial statements of JLT have been prepared on the accrual basis of accounting.
Basis of presentation—
JLT follows accounting prescribed by the Financial Accounting Standards Board in its Accounting Standards
Codification(ASC) 958 Not-for Profit Entities. Under ASC 958, JLT is required to report information regarding
its financial position and activities according to two classes of net assets: with donor restrictions, and without
donor restrictions.
With Donor Restrictions: Net assets that result from contributions whose use by JLT is restricted by donor
imposed stipulations that may expire with the passage of time or can be fulfilled or otherwise removed by actions
of JLT.
Without Donor Restrictions:Net assets that are not restricted by donor stipulation.
Gifts of goods and equipment are reported as without donor restrictions unless explicit donor stipulations specify
how the donated assets must be used.
Property and Fixed Assets—
Improvements, furniture and equipment are capitalized at cost if purchased, or, if donated, at the approximate fair
value at the date of donation. When retired or otherwise disposed of, the related carrying value and accumulated
depreciation are removed from the respective accounts and the net difference, less any amount realized from
disposition, is reflected in earnings. Maintenance and repairs are charged to expense as incurred. Costs of
significant improvements are capitalized. JLT provides for depreciation using the straight-line method over the
estimated useful lives of the assets of five to ten years.
JLT records acquisitions of land at cost if purchased. Land acquired through donation is recorded at fair value,
with fair values generally based on independent professional appraisals. These assets fall into two primary
categories:
14
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
Conservation Lands- Real property with significant ecological value for habitat, open space, or working lands.
Stewardship programs of JLT manage these properties to protect the natural biological diversity of the property.
JLT manages its working timberland as a Forest Stewardship Council-Certified,managed forest.
Conservation Easements-Voluntary legal agreements between a landowner and a land trust or government agency
to permanently protect the identified natural features and conservation values of the property. These easements
may be sold or transferred to others so long as the assignee agrees to carry out, in perpetuity, the conservation
purposes intended by the original grantor. Conservation easements owned by JLT protect habitat, open space and
working lands, such as family farms, through its stewardship programs. Easements acquired represent numerous
restrictions over the use and development of land not owned by JLT. Since the benefits of such easements accrue
to the public upon acquisition, the fair market value of easements acquired is shown in the year of acquisition as
an addition to net assets to record the donation of the easement, and unless conveyed to a public agency for
consideration, shown as a reduction in net assets to record the value of the public's benefit and to recognize that
these easements have no marketable value once severed from the land and held by JLT. Easements held by JLT
are carried on the consolidated statement of financial position at $1 each for tracking and accounting purposes. A
total of$69 is recorded in the financial records for the nominal value of easements acquired.
JLT has preserved a total of 4,517 acres of land with 69 current easements. The original acquisition cost of the
easements,expensed when acquired,was in excess of$19,100,000.
Portions of two easements with a value of$770,000 were donated to JLT during 2022. Accordingly, $770,000 of
contribution revenue and $770,000 of related write down expense have been reported on the consolidated
statements of activities for the year ended December 31,2022.Portions of one easement with a value of$145,700
were donated to JLT during 2021. Accordingly, $145,700 of contribution revenue and $145,700 of related write
down expense have been reported on the consolidated statements of activities for the year ended December 31,
2021.
Estimates—
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America(U.S. GAAP) requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual
results could differ from those estimates.
Expense Allocation—
The costs of providing various programs and other activities have been summarized on a functional basis in the
consolidated statement of functional expense. Program expenses represent expenses incurred to fulfill JLT's
exempt purposes. Management and general expenses support that exempt purpose while fundraising expenses are
incurred to raise resources to carry out program activities. Expenses are recorded, when appropriate, to the
function receiving direct benefit. When expenses benefit more than one function, an allocation is made based on
relative benefits provided to each function.
Cash and Cash Equivalents—
For reporting purposes, JLT considers all unrestricted highly liquid investments with a purchased maturity of
three months or less to be cash and cash equivalents.
15
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
Concentration
JLT maintains its cash in bank deposit accounts with three financial institutions. JLT's cash balances may, at
times,exceed federally insured limits.
At December 31,2022,four donor's pledges represented approximately 86%of pledges receivable.
At December 31,2021,one donor's pledges represented approximately 97%of pledges receivable.
Investments—
Investments in marketable securities with readily determinable fair values are valued at their fair values in the
consolidated statement of financial position. Certificates of deposit are carried at cost plus accrued interest in the
consolidated statement of financial position.Unrealized gains and losses are included in the change in net assts.
Grants and Contracts--
JLT receives grants and contracts from federal, state, and local agencies, as well as from private organizations,to
be used for specific programs or land purchases. The excess of grants receivable over reimbursable expenditures
to-date is recorded as deferred revenue.
Federal Income Taxes—
The Internal Revenue Service has determined Jefferson Land Trust and JLT Resources, LLC (a disregarded
entity) to be exempt from federal income taxes under Internal Revenue Code Section 501(c)(3).Contributions to
JLT are deductible as allowed under IRC Section 170(b)(I)(A)(vi).
During the year ended December 31, 2012, the Land Trust elected the provisions of Section 501(h), relating to
expenditures to influence legislation.That election remain in force unless revoked.
Contributions—
Contributions are recognized when received or when a donor makes an unconditional promise to give to JLT.
Contributions that are restricted by the donor are reported as increases in net assets without donor restrictions if
the restrictions expire in the year in which the contributions are recognized. All other donor restricted
contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets
with donor restrictions are reclassified to net assets without donor restrictions.
Unconditional promises to give (pledges receivable) are recognized as revenues in the period the pledge is
received. Long term pledges(collection expected in greater than one year) are discounted to the net present value
of future cash flows.Conditional promises to give are recognized only when the conditions on which they depend
are substantially met and the promise becomes unconditional.
Subseauent Events--
JLT has evaluated subsequent events through July 28, 2023, the date on which the consolidated financial
statements were available to be issued.
16
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
B. LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS:
JLT, although it expects to receive current support to fund operations for 2023 and later years,has($48,050)and
$594,965 of financial assets available within one year of the statement of financial position dates on December
31, 2022 and 2021, respectively, to meet cash needs for general operating expenditures. JLT also has $578,659
and$471,239,of board designated assets as of December 31,2022 and 2021,respectively,that can be reallocated
for general expenditures if needed.Financial assets available within one year consist of the following:
2022 2021
Financial assets at year end $ 5,208,375 $ 3,650,149
Donor restricted to purpose (4,206,715) (2,525,826)
Long tern (471,051) (58,119)
Board designations (578,659) (471,239)
Financial assets available to meet
cash needs within one year $ (48,050) $ 594,965
C. NET ASSETS COMPOSITION:
JLT's net assets with donor restrictions consisted of the following at December 31,2022 and 2021:
2022 2021
Purpose Restriction:
For stewardship of Bullis Forest Preserve $ 39,511 $ 41,988
Chi-yakh-wh 35,715 43,156
Campaign Readiness Fund/Operations 672,260 10,124
Stewardship funding 836,341 780,703
Quimper Wildlife Corridor 210,353 440,366
Karen Mckee Fund - 65,000
Other program restrictions 51,770 58,691
1,845,950 1,440,028
Time Restriction:
Outstanding pledges 1,540,797 1,034,266
Permanent Restriction
Endowment Fund 819,968 68,074
Total Net Assets With Donor Restrictions $ 4,206,715 $ 2,542,368
17
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
Net assets without donor restrictions consisted of the following at December 31, 2022 and 2021:
2022 2021
Designated:
Quimper Wildlife Corridor $ 1,576,803 $ 1,302,503
Chimacum Creek 388,347 388,347
Duckabush Riparian Forest 492,800 492,800
Duckabush Hacheney 90,000 90,000
Donovan Creek 270,000 270,000
Duckabush Wetlands&Oxbow 530,000 530,000
Bulis Forest Preserve 125,240 125,240
Moore 34,155 -
Beaver Valley 105,986 -
Brinnon-Wright 130,000 -
Upper Snow Creek Forest 340,000 340,000
Snow Creek Uncas Preserve 260,000 260,000
Chimacum Commons 90,850 90,850
Snow Creek Estuary 86,000 86,000
Snow Creek-Hopkins 95,000 95,000
Silver Reach 125,000 125,000
Gateway 85,000 85,000
Kilham Corner 81,202 81,202
Fite&Fissler 182,226 182,226
Valley View 1,710,000 1,710,000
Discovery Bay 311,358 311,358
Longmire 145,000 145,000
Stewardship Fund 366,053 362,149
CP Operations Reserve 27,476 9,653
Karen Mckee Board Fund 13,328 14,591
Operations Reserve 171,801 84,846
Conservation easements 69 67
Total Designated 7,833,694 7,181,832
Undesignated 1,039,705 1,222,389
Total Net Assets Without Donor Restrictions: $ 8,873,399 $ 8,404,221
Net assets of$846,509 and $286,587, respectively, were released from donor restrictions by incurring expenses
satisfying the purpose restriction specified by the donor, and net assets of$13,386 and $111,310, respectively,
were released due to the expiration of time restrictions for the years ended December 31,2022 and 2021.
18
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
D. LINE OF CREDIT•
JLT entered into a line of credit arrangement with Is' Security Bank during 2021. The line requires monthly
payments of interest at 4.25%on outstanding balances.The line of credit principal balance was$0 and$83,537 at
December 31,2022 and 2021,respectively.
E. ENDOWMENTS:
The JLT endowment consists of one fund established to support general operations. As required by U.S. GAAP,
net asset associated with endowment funds are classified and reported based on the existence or absence of donor-
imposed restrictions.
Nature of Endowments and Interpretation of Relevant Laws- JLT's Board of Directors has reviewed the
Washington State Prudent Management of Institutional Funds Act(PMIFA) and, having considered its rights and
obligations thereunder, has determined that it is desirable to preserve, on a long-term basis, the fair value of the
original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the
contrary. As a result of this determination, JLT classifies as nets assets with donor restrictions (a) the original
value of gifts donated to the permanent endowment, and (b) the original value of subsequent gifts to the
permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time
the accumulation is added to the fund.
The remaining portion of the donor-restricted endowment fund that is not classified in net assets with permanent
donor restrictions is classified as net assets with donor restrictions until those amounts are appropriated for
expenditure by JLT in a manner consistent with the standard of prudence prescribed by PMIFA. However, JLT
has informed donors of its spending policy which states that no distributions will be made during the first five
years of the fund's existence or until it reaches a threshold balance of$400,000. Since these milestones have not
yet been reached,JLT adds all amounts earned to the permanently restricted balance.
In accordance with PMIFA, JLT considers the following factors in making a determination to appropriate or
accumulate donor-restricted endowment funds, (1) the duration and preservation of the various funds, (2) the
purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of
inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other
resources of JLT,and(7)JLT's investment policies.
Endowment net assets, all permanently restricted, totaled $819,968 and $68,074, respectively, at December 31,
2022 and 2021.
19
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
Changes in endowment net assets for the year ended December 31,2022 are as follows:
Temporary Permanent
Donor Restrictions Donor Restrictions Total
Endowment Net Assets 1/1/2022 $ - $ 68,074 68,074
Contributions - 750,000 750,000
Investment Income - 1,894 1,894
Net Appreciation(Depreciation) - - -
Endowment Net Assets 12/31/22 $ - $ 819,968 $ 819,968
Changes in endowment net assets for the year ended December 31,2021 are as follows:
Temporary Permanent
Donor Restrictions Donor Restrictions Total
Endowment Net Assets 1/1/2021 $ - $ 68,071 $ 68,071
Contributions - - -
Investment Income - 3 3
Net Appreciation(Depreciation) - - -
Endowment Net Assets 12/31/21 $ - $ 68,074 $ 68,074
Funds with Deficiencies- From time to time, the fair value of assets associated with individual donor-restricted
endowment funds may fall below the level that the donor or PMIFA requires JLT to retain as a fund of perpetual
duration. In accordance with U.S. GAAP, deficiencies of this nature are reported in net assets with donor
restrictions.There were no such deficiencies as of December 31,2022 or 2021.
Return Objectives and Risk Parameters- JLT has adopted investment and spending policies for endowment
assets that attempt to provide a predictable stream of funding to programs supported by its endowment while
seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of
donor-restricted funds that JLT must hold in perpetuity or for donor-specified periods as well as board-designated
funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner
that is intended to produce results that exceed the price and yield results of a custom Policy Index made up of
various indices. The composition of the custom Policy Index is based upon the strategic asset allocation of the
investment portfolio and assumes a moderate level of investment risk. The investment objectives of the
Operations Endowment Fund include maintenance of principal, timely liquidity, and preservation of purchasing
power over time.
Strategies Employed for Achieving Objectives- To satisfy its long-term rate-of-return objective,JLT notes that
for funds earmarked for capital appreciation, appropriate investments include intermediate term bond
funds/ETF's,equity mutual funds,equity ETF's,and unconstrained bond funds.
20
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
Spending Policy and How the Investment Objectives Relate to the Spending Policy- JLT's spending policy
intends that no distributions shall be made from the Operations Endowment Fund for the first five years of its
existence or until it reaches a threshold balance of$400,000, whichever shall first occur. After a five-year period
which ended in December of 2014, or after achieving the $400,000 threshold, distributions shall be made on an
annual basis as determined by the Board. Regular disbursements should be limited to a maximum of 5% of the
value of the portfolio at the beginning of each fiscal year,or one-half of the income generated by the fund for the
most recent fiscal year, whichever is less. At no time will the distribution of the spendable amount result in the
invasion of the original amounts donated.
F. ACCOUNTS RECEIVABLE:
Accounts receivable are stated at the amount management expects to collect from outstanding balances.
Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation
allowance based on its assessment of the current status of individual accounts. Balances still outstanding after
management has used reasonable collection efforts are written off through a charge to the valuation allowance and
a credit to trade accounts receivable.
Historically, bad debts have been immaterial. During 2022 and 2021, there were bad debts of $24,808 and
$5,614, respectively. As of December 31, 2022, management estimated that all accounts receivable were
collectible.
JLT had no material amounts past due at December 31,2022.
G. PLEDGES RECEIVABLE:
JLT received promises to give from a number of donors in 2022 and in years prior to 2022. JLT has provided an
allowance for uncollectible amounts based on its assessment of the current status of individual pledges and has
discounted pledges to current value using a rate of .15%. Pledges receivable at December 31, 2022 are to be
received as follows:
Less than one year $ 1,063,546
Two to five years 480,455
Thereafter -
1,544,001
Less discount to present value (3,204)
Less allowance for uncollectible (6,200)
$ 1,534,597
H. NOTE RECEIVABLE:
On February 15, 2008, JLT granted a loan to an individual in relation to one of the pieces of conservation land
owned by JLT.A promissory noted was received in exchange.
21
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
The promissory note was for the amount of$93,750 and was to be paid in monthly installments of approximately
$600.The note matured on January 15,2028 with an annual interest rate of 5%.
The note was paid in full during the year ended December 31,2022.
I. FURNITURE,EQUIPMENT,AND IMPROVEMENTS:
Furniture, Equipment,and Improvements consist of the following at December 31,2022 and 2021:
2022 2021
Furniture&Equipment,and Software $ 57,351 $ 57,351
Accumulated Depreciation and Amortization (33,825) (32,086)
23,526 25,265
Leasehold Improvements 39,989 39,989
Accumulated Depreciation (27,261) (22,247)
12,728 17,742
Fixed Assets-Net $ 36,254 $ 43,007
Accumulated Depreciation and Amortization was $61,086 and $54,333 at December 31, 2022 and 2021,
respectively.
J. ECONOMIC DEPENDENCY:
For 2022 and 2021, grant funding was primarily provided by the State of Washington Recreation and
Conservation Office, State of Washington Department of Commerce, and Jefferson County. A reduction in this
level of support, if it were to occur,could have a significant impact on JLT's operation
K. RETIREMENT PLAN:
JLT maintains a Simplified Employee Pension— Individual Retirement Accounts Contribution Benefit Plan("the
Plan"). Eligible employees may join the Plan after one year of service. There were employer contributions of
$20,580 and$15,866,respectively, for 2022 or 2021.
L. LAND AND CONSERVATION EASEMENTS:
Land and conservation easements at December 31 are summarized as follows:
22
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
2022 2021
Quimper Wildlife Corridor $ 1,711,301 $ 1,305,501
Chimacum Creek 385,348 385,348
Duckabush Riparian Forest 492,800 492,800
Duckabush-Hacheney 90,000 90,000
Donovan Creek 205,000 205,000
Duckabush Wetlands&Oxbow 530,000 530,000
Bulis Forest Preserve-JLTR 125,240 125,240
Beaver Valley-JLTR 105,985 -
Moore-JLTR 34,155 -
Upper Snow Creek Forest 340,000 340,000
Snow Creek Uncas Preserve 325,000 325,000
Chimacum Commons 90,850 90,850
Snow Creek Estuary 86,000 86,000
Silver Reach 125,000 125,000
Gateway 85,000 85,000
Kilham Comer 38,930 38,930
Valley View 2,002,000 2,002,000
Discovery Bay 418,583 418,583
Fissler 75,000 75,000
Longmire 145,000 145,000
Snow Creek-Hopkins 95,000 95,000
Thorndyke 458,751 -
Land Held for Sale - 458,751
Conservation easements 69 67
Total Unrestricted Net Assets $ 7,965,013 $ 7,419,071
M. INCOME TAX& UNCERTAIN TAX POSITIONS:
Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) are tax exempt non-profit organizations
under the Internal Revenue Code Section 501(c)(3) and are not classified as a private foundation. Accordingly,
the financial statements do not include any provision for income taxes.
JLT files income tax returns in the U.S. federal jurisdiction. The Trust is no longer subject to U.S.federal income
tax examinations by tax authorities for years before 2019. Currently, there is no examination or pending
examination with the Intemal Revenue Service(IRS)or any other state or federal taxing authorities.
JLT adopted the provisions of FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, on January 1,
2009. As of December 31, 2022, there are no tax positions for which the deductibility is certain but for which
there is uncertainty regarding the timing of such deductibility.
23
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
N. INVESTMENTS AND FAIR VALUE MEASUREMENTS:
JLT follows U.S. GAAP which establishes a framework for measuring fair value. That framework provides a fair
value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
Measurements) and the lowest priority to unobservable inputs (Level 3 Measurements). The three levels of the
fair value hierarchy under ASC 958 are described as follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in
active markets that the Trust has the ability to access.
Level 2: Inputs to valuation methodology include: Quoted prices for similar assets or liabilities in active markets.
Quoted prices for identical or similar assets or liabilities in inactive markets. Inputs other than quoted prices that
are observable for the asset or liability. Inputs that are principally from or corroborated by observable market data
by correlation or other means.
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of
any input that is significant to the fair value measurement.Valuation techniques used need to maximize the use of
observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair value. There have been
no changes in the methodologies used at December 31,2022.
Stocks: Valued at quoted market prices in active markets for identical assets.
Mutual Funds: Valued at quoted market prices in active markets, which represent the net asset value (NAV) of
shares held by the JLT at year end.
Community Foundation:Valued at applicable share of pooled market investments at foundation.
Certificates of Deposit: Valued at original investment plus received and accrued interest.
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable
value or reflective of future fair values. Furthermore, although the Trust believes its valuation methods are
appropriate and consistent with other market participants, the use of different methodologies or assumptions to
determine the fair value of certain financial instruments could result in a different fair value measurement at the
reporting date.
The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December
31,2022:
24
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
Assets at Fair Value as of December 31,2022
Level Level Level Total
Mutual funds $ 873,725 $ - $ - $ 873,725
Community Foundation - 200,083 - 200,083
Total Assets at Fair Value: $ 873,725 S 200,083 $ - $ 1,073,808
Certificates of deposit,held
at cost plus accrued interest 389,296
Total Investments $ 1,463,104
The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December
31,2021:
Assets at Fair Value as of December 31,2021
Level Level Level3 Total
Mutual funds $ 918,294 $ - $ - $ 918,294
Total Assets at Fair Value: $ 918,294 $ - $ - $ 918,294
Certificates of deposit,held
at cost plus accrued interest 166,236
Total Investments $ 1,084,530
Investment return for the years ended December 31 consisted of the following:
2022 2021
Interest÷nd income $ 15,371 $ 14,701
Realized/unrealized(loss)gain (89,742) 147,837
Total $ (74,371) $ 162,538
O. LAND PURCHASE AND HOLD FEE:
JLT signed a purchase and sale agreement with a third party during 2015 for the purchase of approximately 850
acres of forest land in Jefferson County. The terms of the agreement, dated March 17, 2015, required JLT to
purchase the property for an amount not to exceed the appraised fair market value of the property.
25
Jefferson Land Trust and Subsidiary
Notes to Consolidated Financial Statements
December 31, 2022 and 2021
The terns of the agreement required the payment of a $100,000 non-refundable hold fee to the third party to
allow time for the purchase process to be completed and for JLT to raise the necessary funding to complete the
purchase. The hold fee agreement was to expire on March 17, 2019. During 2016, JLT signed an amended
agreement that resulted in the refund of$25,000 of the$100,000 hold fee and extended the agreement to nine year
from the original five years,now expiring in 2023.
JLT adjusted amortization of the hold fee to the new life of the agreement which resulted in an increase to the
hold fee asset of$8,331 in 2016. Amortization expense of$8,331 was recognized during 2022 and 2021.
P. PAYCHECK PROTECTION PROGRAM LOAN:
In April of 2020, JLT received a loan of $119,740 from Kitsap Bank. The loan was part of the Paycheck
Protection Program, which is a United States Government program intended to mitigate the economic impact of
the Covid-19 Pandemic. The loan was guaranteed by the United States Small Business Administration and carried
a stated interest rate of 1%. The loan term was two years from inception, with interest payments starting on the
7th month following origination. However,the loan was eligible for forgiveness if the loan proceeds were used to
subsidize payroll and certain occupancy costs of JLT. JLT used the loan proceeds for eligible expenses during
2020 and recognized grant income on loan forgiveness,which occurred in 2021.
26
gON �oG2 2024 Jefferson County Conservation Futures Program
Property Acquisition Project and/or
Operations and Maintenance Project Application
9SH I N G.�O
Please complete the following application in its entirety. Be sure to answer"N/A"for questions that don't apply
to the project. Incomplete applications will not be accepted for consideration.
Unless directed otherwise, use as much space as needed to answer each question.
Contact program staff at 379-4498 or tpokorny@co.iefferson.wo.us with questions.
Background and Eligibility Information
1. Project Title: Tarboo Wildlife Preserve—West Slope Forest Addition
2. Conservation Futures Acquisition Request: $150,000
Conservation Futures O&M Request: $0
3. Total Conservation Futures Request: $150,000
4. Please indicate the type of interest contemplated in the acquisition process.
X Warranty Deed _Easement _Other(Please describe below.)
In whose name will the property title be held after acquisition? Northwest Watershed Institute
5. Applicant Information
Name of Applicant or Organization: Northwest Watershed Institute
Contact: Peter Bahls
Title: Executive Director/Conservation Biologist
Address: 3407 Eddy Street, Port Townsend,WA 98368
Phone: (360) 821-9566, ext. Fax: ext.
Email: peter@nwwatershed.org
6. Sponsor Information: (if different than applicant)Same
Organization Name:
Contact:
Title:
Address:
Phone: . Fax: ( ) - , ext.
This application was approved by the sponsor's legally responsible body(e.g., board, council, etc)on
March 20, 2024
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2024 CF Program Application FINAL
7. Project Location
Street Address or Description of Location: East side of Tarboo valley due east of 2151 Dabob Rd,
Quilcene,Wa.
Driving Directions from Port Townsend: South on Center Road, under Hwy 104,then .5 miles, left on
Dabob Road to 2151 Dabob Rd,Quilcene,Wa.
Section: 28 Township: 28 N Range: 1 W
Assessor's Parcel Number(s): 801-282-005 and 801-283-001
Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with
CF funds or used as match. The parcel is to be acquired with CF funds
Please list the assessed values for each property or APN, as applicable.
801-282-005=$229,400
801-283-001= $229,500
Total County assessed value(not including timber value) _ $458,900
8. Existing Conditions
New Site: Yes No Number of Parcels: 2
Addition to Existing Site: Yes No Acres to Be Acquired: 80.8
Total Project Acreage(if different): Current Zoning: 1 per 80
Existing Structures/Facilities: No
Any current covenants, easements or restrictions on land use: No
Current Use: Forestry
Waterfront(name of body of water):Three Tarboo Creek tributaries
Shoreline(linearfeet): Yz mile of Tarboo Creek tributaries
Owner Tidelands/Shorelands: NA
9. Current Property Owner X is _is not a willing seller.
Project Description
10. In 1,000 words or less,provide a summary description of the project,the match, overarching goal, and three
top objectives. For each objective,identify the metric(s)that will be measured to determine if the objective is
being achieved and the timeframe for meeting the identified metric. Include information about the physical
characteristics of the site that is proposed for acquisition with Conservation Futures Program funds including:
vegetation,topography, surrounding land use, and relationship to parks,trails,and open space. Describe the use
planned for the site, any development plans after acquisition(including passive development), characteristics of
the site which demonstrate that it is well-suited to the proposed use, and plans for any structures currently on the
site. If applicable, describe how the site project relates to a larger conservation program(please identify), and
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2024 CF Program Application FINAL
whether the project has a plan, schedule and funding dedicated to its completion. Please also list any important
milestones for the project or critical dates, e.g. grant deadlines. List the dates and explain their importance. Please
attach a spreadsheet of the budget.
Background, goals, and objectives
Since 2002, Northwest Watershed Institute (NWI),Jefferson Land Trust, and over 40 partnering
organizations have been working on a landscape scale project to protect and restore the Tarboo-
Dabob Bay watershed,with over 4,000 acres conserved to date.The three main objectives of the
conservation effort are to: 1) protect and restore the stream and wetland corridor,from the
headwaters of Tarboo Creek to Dabob Bay, 2) conserve uplands for sustainable forestry, 3) preserve
lands within the Dabob Bay Natural Area.
For this project, NWI proposes to acquire and permanently protect the 80-acre West Slope Forest
Property(the Property), a key forest addition to NWI's adjacent Tarboo Wildlife Preserve.The
Property includes streams, wetlands, riparian habitats, a variety of forest types, and support a high
diversity of native species and is important for landscape scale connectivity for large mammals.
Proposed uses
The Property will be owned and managed by NWI. County and USFWS conservation deed restrictions
will permanently preserve the Property as part of the Tarboo Wildlife Preserve. Selective timber
harvest of the existing tree plantation will be permitted to restore complex older forest structure
and habitat. A walking trail system for supervised public school and other tours is planned.
Critical dates and urgency
To avoid a Rayonier clear-cut of the Property, NWI is negotiating with Rayonier to purchase the
Property by March 2025.
Budget
JCCF Match to Total
Request JCCF Cost Timeline
Acquistion
Rayonier Property-fee simple 150,000 650,000 800,000 Mar-25
Acquisition Related Costs: 15,000 15,000 Sep-24 to Mar-2025
Project management and administration 10,000 10,000 Sep-24 to Mar-2025
Total Project Costs 150,000 675,000 825,000
Percent match to JCCF 1 82%
11. Estimate costs below,including the estimated or appraised value of the propert(ies) or property right(s)to be
acquired, even if Conservation Futures funds will only cover a portion of the total project cost. In the case of
projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel.
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2024 CF Program Application FINAL
Estimated or Appraised Value of Propert(ies)to be Acquired: $800,000
Total Estimated Acquisition-related Cost(see Conservation Futures Manual for eligible costs): $25,000
Total Operation and Maintenance Cost: $0
Total Project Cost: $825,000
Basis for Estimates(include information about how the property value(s)was determined, anticipated acquisition-
related costs, general description of operation and maintenance work to be performed,task list with itemized
budget, and anticipated schedule for completion of work):
Estimate of fair market value is based on a preliminary estimate from a professional appraisal of
timber and land by Chad Johnson,SH&H Appraisal,and Marty Strickland,Sound Forestry, due for
completion in April, 2024.
O & M only go to question #15:
Scored Questions
1. To what degree does the project leverage contributions for acquisition from groups, agencies or
individuals?
1 a. Sponsor or other organizations X will _will not contribute to acquisition of proposed site and/or operation
and maintenance activities.
1 b. If applicable,please describe below how contributions from groups or agencies will reduce the need to use
Conservation Futures program funds.
1 c. Matching Fund Estimate Acquisition O&M %
Conservation Futures Funds Requested $150,000 $0 18%
Matching Funds/Resources* $675,000 $0 82%
Total Project Acquisition Cost $825,000 $0 100%
*If a prior acquisition is being proposed as match,please describe andprovide documentation of value, location,
date of acquisition and other information that would directly link the match to the property being considered for
acquisition.
1 d. Source of matching Amount of Contribution If not, Contribution If not,
funds/resources contribution approved? when? available now? when?
NCWC Grant $600,000 Yes No 2025 Yes No 2025
NWI Donations $75,000 Yes No 2025 Yes No 2025
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2024 CF Program Application FINAL
NOTE: Matching funds are strongly recommended and a higher rating will be assigned to those projects that
guarantee additional resources for acquisition. Donation of property or a property right will be considered as
a matching resource. Donation of resources for on-going maintenance or stewardship("in-kind"
contributions)are not eligible as a match.
2. To what degree does the project sponsor commit to provide long-term stewardship for the proposed
project?
2 a. Sponsoring agency X is _is not prepared to provide long-term stewardship(easement monitoring,
maintenance,up-keep, etc.) for the proposed project.
2 b. Describe any existing programs or future plans for stewardship of the property, including the nature and
extent of the commitment of resources to carry out the stewardship plan.
Northwest Watershed Institute plans to steward the parcel long term as part of NWI's Tarboo
Wildlife Preserve (TWP).A Stewardship Plan, including Forest Management Plan,will be prepared
for the Property.
Long-term stewardship of the West Slope Forest parcel can be efficiently incorporated into NWI's
existing operations because NWI's main base of operations is the 400-acre Tarboo Wildlife Preserve
in the heart of the Tarboo valley,adjoining the proposed project. NWI already employs an
experienced professional staff, including an Executive Director/Conservation Biologist,Stewardship
Director/Botanist, Education and Outreach Director/Volunteer coordinator,and Field Crew that
conduct annual restoration projects, monitoring,and stewardship at TWP and other conservation
properties in the Tarboo watershed. NWI currently stewards nearly 800 acres in the Tarboo-Dabob
Bay watershed, of which about 400 acres are managed for sustainable, ecologically based forestry
and under Forest Stewardship Council standards.
3. To what degree has the project sponsor demonstrated effective long-term stewardship of a similar
project?
3 a. Describe the sponsoring agency's previous or on-going stewardship experience.
Northwest Watershed Institute is a nonprofit conservation organization that provides scientific,
technical and on-the-ground support for watershed restoration and has been conducting habitat
stewardship and restoration projects in the Tarboo watershed for over 20 years. NWI has extensive
experience stewarding and managing the Tarboo Wildlife Preserve and private and state
conservation properties using professional staff,experienced field crew,contractors,and volunteers.
NWI forestlands are certified by the Forest Stewardship Council and NWI has completed several
successful ecologically-based selective timber harvests in the Tarboo forest to date.
3 b. Has the project sponsor and/or applicant been involved in other projects previously approved for
Conservation Futures funding?
No,neither the sponsor nor applicant has been involved in a project previously approved for
Conservation Futures funds.
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2024 CF Program Application FINAL
X Yes,the sponsor and/or applicant for this project has been involved in a project previously approved for
Conservation Futures funds. Please provide details:
Yes. NWI has been involved in eleven previous successful Conservation Futures funded projects in
the Tarboo watershed including nine conservation easement projects proposed jointly by NWI and
JLT and two fee simple projects. NWI returned funding to JCCF for the 120-acre Discovery Creek
project in 2021 because additional federal funding was obtained for NWI to acquire that property.
4. To what degree is the acquisition feasible?
4 a. Property X can_cannot feasibly be acquired in a timely fashion with available resources.
4 b.Necessary commitments and agreements_are X are not in place.
4 c. All parties_are X are not in agreement on the cost of acquisition.
If"not"to any of the above,please explain below.
Rayonier has expressed their interest in selling the West Slope Forest Property(letter attached) and
NWI is optimistic that a purchase agreement can be finalized and the Property purchased by March
of 2025. NWI has a successful track record in purchase of similar property from Rayonier: over the
past 4 years NWI has purchased 3 parcels totaling 216 acres.
5. To what degree is the project a part of an adopted open space, conservation, or resource
preservation program or plan that was open to public review and comment,or identified in a
community conservation effort that provided opportunities for public input?
The proposed acquisition X is specifically identified in an adopted open space,conservation,or resource
preservation program or plan,or community conservation effort, that is publicly available. Please describe
below, including this project,s importance to the plan. Please also reference the website of the plan if available or
include the plan with this application.
_complements an adopted open space or conservation plan,but is not specifically identified. Please describe
below, and describe how the proposed acquisition is consistent with the plan.
_is a stand-alone project.
Jefferson Land Trust's Jefferson County Conservation Plan (2010) identifies the Property as within a
priority forest conservation area. h_ttps://www.saveland.org/wp-
content/uploads/2016/06/2010 JLT ConservationPlan LoRes.pdf
The Property is within the priority habitat stream corridor area of the Tarboo Creek/Dabob Bay
Implementation Strategy, a Sub-Plan of JLT's Jefferson County Conservation Plan(2010).
The Property is a top priority in Northwest Watershed Institute's Tarboo Watershed Conservation
Strategy to protect and restore the stream and wildlife corridor of Tarboo Creek (Objective 1) and
also fits within the Forestland protection objective (objective 3)
http://www.nwwatershed.ore/tarboo-watershed-conservation-strategv.htmi
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2024 CF Program Application FINAL
The proposed properties are within a priority terrestrial conservation area identified and mapped in
the Willamette Valley-Puget Trough--Georgia Basin Ecoreqional Assessment(2004 Floberg et al).
This priority area includes much of the Tarboo and Thorndyke watersheds. The Ecoregional plan,
developed by Washington Department of Fish and Wildlife and The Nature Conservancy, is one of
the primary conservation plans for Puget Sound and has received extensive public and scientific
review.
6. To what degree does the project conserve opportunities which are otherwise lost or threatened?
6 a. The proposed acquisition site X does _does not provide a conservation or preservation opportunity which
would otherwise be lost or threatened.
6 b. If applicable,please carefully describe the nature and immediacy of the opportunity or threat, and any unique
qualities about the site.
The proposed acquisition will provide a significant conservation opportunity that will be otherwise
by lost in the next year. If NWI cannot purchase the Property by March 2025, Rayonier will proceed
with industrial management plans including clear-cutting the property, then aerial spraying with
herbicides, prior to replanting with a monoculture of Douglas fir.
Over the longer term, the conservation purchase will prevent development of the property into at
least two large residential lots, one on each 40-acre parcel, with scenic views of the Olympics.
Although the Property is part of a much larger forestland tract owned by Rayonier, the company is a
Real Estate Investment Trust(REIT) that aims to maximizing its return over time by selling
forestlands for development in East Jefferson County.
CF funding in 2024 is urgently needed to leverage other potential funding from private donors and
other grant sources so the Property can be purchased in early 2025.
7. Are the conservation values of the project commensurate with or greater than the amount of CF
funds requested, and will both the timeframes for meeting project objectives and associated metrics
demonstrate achievement of the conservation objectives?
7 a. Summarize the project's conservation values and how the CF funds requested support these values.
The project's conservation values are extremely high relative to CF funds requested because: 1) the
CF funds are a small fraction (18%) of the overall project funding, 2) a large acreage of 80 acres will
be protected at a CF futures cost of only$1,875/acre.
The project will preserve a critical large parcel adjoining the Tarboo Wildlife Preserve, helping to
protect the stream, wetland and forest conservation corridor that extends from the headwaters of
Tarboo Creek to Tarboo-Dabob Bay.The project will conserve 80 acres of streams, wetlands, and
forest that provide wildlife habitat,tribal cultural resources, outdoor education opportunities, and
help protect anadromous fish in downstream Tarboo Creek, as well as water quality and shellfish
resources in Tarboo-Dabob Bay.
7b. Summarize how the project's conservation values are related to the project's specific objectives.
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2024 CF Program Application FINAL
The project's conservation values of wildlife habitat and connecting corridor, aquatic habitat
support, cultural resources, outdoor education,forest carbon storage and protecting biodiversity are
well served by the project objectives which are to purchase the property for permanent conservation
and restoration of older forest habitat,while allowing sustainable timber harvest.
8. To what degree does the project preserve habitat for flora and fauna other than habitat for
anadromous fish species?
8 a. X provides habitat for State of Washington Priority Habitat specific to the project and/or State or Federal
(NOAA and USFWS)Candidate, Endangered, Threatened or Sensitive species (provide list and references).
8 b. X provides habitat for a variety of native flora or fauna species.
8 c. X contributes to an existing or future wildlife corridor or migration route.
If affirmative in any of the above,please describe and list the Priority Habitats) and Threatened, Endangered, or
Sensitive species below, and cite or provide documentation of species'use.
Priority and Listed Species on-site
Tarboo Creek tributaries Priority Riparian Habitat
Western toad State Candidate and Federal Species of Concern
Pileated woodpecker State Candidate
Listed Species benefited downstream in adjacent Tarboo Wildlife Preserve:
Puget Sound steelhead State Candidate and Federal Threatened
Hood Canal coho salmon Federal Species of Concern
Western Brook lamprey Federal Species of Concern
Listed Species benefited downstream in Tarboo-Dabob Bay (documented rearing habitat)
Hood Canal summer chum salmon State Candidate and Federal Threatened
Puget Sound Chinook salmon State Candidate and Federal Threatened
Provides habitat for a variety of native flora and fauna
The project will protect and restore riparian, wetland and forest habitats that support a high
diversity of at-risk fish, bird, amphibian, and mammal species that occur in Pacific Northwest forests,
including western toad, amphibians, bats, bear, cougar, blacktail deer, and neo-tropical migratory
birds. The 80 acres is primarily 35-year old plantation forest, but includes a variety of forest types
including mature maple groves, alder wetlands, and riparian areas along three tributaries to Tarboo
Creek. Ecologically based thinning of plantation forest is proposed that will promote older forest
habitat growth over time for potential use by at-risk species such as fisher and marbled murrelet.
Wildlife corridor
The property is a critical part of long-term effort to protect a significant wildlife corridor from the
headwaters of Tarboo Creek to Dabob Bay. Cougar have been using the Property as recently as early
' See, for example,http://www.dnr.wa.gov/researchscience/topics/naturalheritage/paves/amp nh.aspx
http://www.wdfw.wa.gov/conservation/phs/list/
http://www1.dnr.wa. og v/nhp/refdesk/plants.html
http://wwwl.dnr.wa. og v/nhp/refdesk/pubs/wa ecological s st�pdf
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2024 CF Program Application FINAL
March 2024, migrating down the valley from the Freeman Conservation Easement property across
the Tarboo Wildlife Preserve (see maps and photos). Black bear and deer move throughout the
preserve and into the Property. Western toads seasonally migrate from the valley bottom wetlands
to forested wetland and streams on the hillsides of the Property. A bull and cow elk were seen for
the first time in 2023 at the Tarboo Wildlife Preserve, suggesting the possibility of an elk herd re-
establishing in the Tarboo valley after 100 years absence. The proposed project will significantly
benefit landscape scale wildlife conservation.
8 d. Does the current owner participate in conservation programs that enhance wildlife habitat'? If so,please
provide details.
Yes—the proposed owner of the Property is Northwest Watershed Institute, a non-profit
conservation organization with professional expertise and over 20 years of experience in protecting
and restoring wildlife habitat in the Tarboo Creek-Dabob Bay watershed. NWI staff, field crew, and
contractors have conducted more than 100 stream, wetland, and forest restoration projects on NWI,
state, private lands. NWI stewards nearly 800 acres, of which approximately 400 acres are
forestlands, some of which are managed for ecologically based forestry under FSC certification.
9. To what degree does the project protect habitat for anadromous fish species?
9 a. Describe to what degree the project protects habitat for anadromous fish species (for example: marine
shorelines, stream or river corridors including meander zones, and riparian buffers). Please provide documentation
and maps that demonstrate the location,quality and extent of the existing buffer and adjoining habitat.
The West Slope Forest Property is important for protecting adjacent downstream habitat for
anadromous fish species of Tarboo Creek.The Property contains three tributaries that drain into the
adjacent Tarboo Wildlife Preserve in the Tarboo valley. Protection and restoration of the stream
ravines and forests on the steep slopes of the Property will help maintain summer stream flow,
reduce siltation, and prevent herbicide contamination of downstream habitat for native coho
salmon, coastal cutthroat trout,fall chum salmon, and steelhead that occur in Tarboo Creek and
Tarboo-Dabob Bay.
Listed Species benefited in adjacent downstream Tarboo Wildlife Preserve:
Puget Sound steelhead State Candidate and Federal Threatened
Hood Canal coho salmon Federal Species of Concern
Western Brook lamprey Federal Species of Concern
Listed Species benefited downstream in Tarboo-Dabob Bay (documented rearing habitat)
Hood Canal summer chum salmon State Candidate and Federal Threatened
Puget Sound Chinook salmon State Candidate and Federal Threatened
10. To what degree does the project preserve farmland for agricultural use OR forestland for
silvicultural use?
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2024 CF Program Application FINAL
10 a. Describe the extent and nature of current and planned agricultural or silviculture use of the proposed
acquisition, including any anticipated changes to that use once the property, or property right, is acquired with
Conservation Futures funds.
The forest will be managed for ecologically based sustainable forestry and to restore diverse older
forest habitats. NWI will prepare a Forest Management Plan that meets FSC standards and that will
involve thinning the 35-year-old plantation forest to restore older forest structure,function and
habitats and provide sustainable timber products.
10 b. Describe the current owner's record of implementing management practices that preserves and/or enhances
soil, water quality, watershed function and wildlife habitat.
Northwest Watershed Institute has been conducting forest related watershed restoration for over 20
years including road removal, tree planting, stream culvert replacement, invasive species removal,
and selective timber harvest. Most of NWI's forestlands are Forest Stewardship Council certified,
which are the strongest certification standards for ecologically based forest management.
The proposed management will involve use of silvicultural practices to restore older forest habitat,
as well as invasive species removal.
10 c. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality,
watershed function and wildlife habitat.
Acquisition of the West Slope Forest Property will allow protection of the existing forest that would
otherwise be clear-cut and aerial sprayed with herbicide. NWI plans to help enhance watershed
function,wildlife habitat, and water quality by ecologically based thinning of the dense plantation
forest, as well as removal of invasive species such as English holly.These forest management
practices will help boost tree growth and help develop older, more biological diverse forest habitats
and healthy soils.
10 d. Does this project preserve a mix of quality farmland and forestland?
This specific project involves forestland and habitat protection and does not include agriculture.
However, if the definition of agriculture is broadened to include native food foraging,the Property
has excellent potential for gathering of black truffles and other edible mushrooms and deer hunting.
In addition, although this property does not include agricultural lands, within the context of the large
conservation effort for the Tarboo-Dabob Bay watershed, NWI,JILT, and partners are preserving a
mix of agricultural lands, forestlands,wetlands, and wildlife habitats.
11. Climate change:
1 1 a. To what degree does this project increase resiliency to and/or mitigate climate change, and is the project's
scale significant in regards to increasing climate resiliency?
Forests of the Pacific Northwest are among the best in the world for sequestering and storing
carbon. The project proposal to protect and restore older forest habitat on 80-acres will store
significant amounts of carbon. A 60-year old forest stores roughly the equivalent of 7 years of
carbon emissions by the average American - per acre.The project is of significant benefit in terms of
carbon storage over time. In addition,the planned thinning of the plantation forest to help it
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2024 CF Program Application FINAL
become more biologically diverse in terms of species and structure will increase its resilience to
forest fires, helping to mitigate climate change impacts.
12. What area does the project serve?
12 a. Describe how the proposed acquisition benefits primarily a_local area X broad county area including the
area served,the nature of the benefit,the jurisdictions involved, and the populations served.
The proposed project benefits a broad county area because it is a key part of a conservation project
that extends from the headwaters of Tarboo Creek to the state's Dabob Bay Natural Area to protect
and restore habitats and wildlife connectivity on a landscape scale. In particular,the project will
protect a critical "gap" in the Tarboo Wildlife Preserve that will directly benefit the wildlife corridor
along the Tarboo valley,salmon habitat, biodiversity and safeguard water quality in downstream
Dabob Bay,which has been recognized as a state and national priority for conservation due to its
diverse estuarine habitats and valuable shellfish production.
12 b. Is the project located in an area that is under-represented by CF funded Projects?Areas that Conservation
Futures has not been able to support to date include, Toandos Peninsula, Sewali's Valley, Bolton Peninsula, and
the West End.
N/A
13. To what degree will the acquisition provide educational opportunities, interpretive opportunities,
and/or serve as a general community resource that does not reduce the conservation value(s) of the
project?
13 a. Describe the educational or interpretive opportunities that exist for providing public access, educational or
interpretive displays(signage,kiosks,etc.)on the proposed site, including any plans to provide those
improvements and any plans for public accessibility that will not reduce the conservation value(s)of the project.'
The Property is a key addition to the Tarboo Wildlife Preserve, NWI's base of operation for volunteer
activities, restoration,and education in the community.As such,the property itself will serve as an
important site for educating the public on forest protection and sustainable use.The site is easily
accessible from the Preserve and NWI plans to develop a foot trail system to host workshops,tours
and other public events to expand understanding and adoption of forest restoration methods.
As described in the letter from the Port Gamble S'Klallam Tribe,the Property will also serve an
important educational purpose as a place for the Tribes to pass on traditions of sustainable
gathering of forest plants used for cultural purposes and ceremonies.
The Properties is also available for public access by prior permission, including deer hunting, berry
picking,and mushroom picking,three important recreational uses in rural areas
14. To what degree does the project preserve historic or culturally significant resources"?
14 a. The proposed acquisition_includes historic or culturally significant resources' and
is registered with the National Register of Historic Places, or an equivalent program.
'The words"education"and"interpretation"are interpreted broadly by the CF Committee.
" Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and
social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44
and 27.53 RCW.
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2024 CF Program Application FINAL
X is recognized locally has having historic or cultural resources.
is adjacent to and provides a buffer for a historic or cultural site.
none of the above.
If affirmative in any of the above,please describe below, and cite or provide documentation of the historical
cultural resources.
Please see letter from Laura Price, Cultural Resources Director for the Port Gamble S'Klallam Tribe,
that attests to the importance of this Property for preserving and restoring cultural resources.
The Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe, and
Skokomish Tribe are signatories to the Point No Point Treaty and retain the right to hunt and gather
within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to
rely upon a diversity of intact native plant communities in the region, as they have for thousands of
years,as places where they gather traditional food, medicine, and materials for use in all aspects of
their cultural life, including social and religious.The project site's forests will provide resources for
tribal uses,such as cedar bark for basket weaving. If funded,the project will permanently conserve
the forest while allowing sustainable harvest and gathering to maintain tribal cultural traditions.
All O & M Projects
15. Applications for Operation and Maintenance funding only to be scored on a scale of 1-100
based on information provided. Consider the CF Manual and the topics below, for example:
15 a. Please describe in detail,the reason O&M funds are needed,proposed O &M activities, and how they
protect resources cited in the original acquisition project. Attach additional information such as up-to-date
stewardship plan,maps, field reports,work plan, budget, timeline, etc.,to support the application, if appropriate.
O &M projects must address a compelling, immediate need. Specifically include whether the project has an up-
to-date stewardship plan. If there is such a plan, is it being implemented and is the proposed O&M work
specifically included in the plan?Also, describe any unforeseen or urgent threats to the resource conservation
values of the site and whether the proposed O&M activities will mitigate those threats and/or prevent potential
future threats.
N/A
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2024 CF Program Application FINAL
Verification
16. Sponsor commitments:
16 a. Sponsors of projects that are approved for funding by the Board of County Commissioners are required to
submit a brief progress report by October 30 every year for three years after the award is approved,or three years
after the acquisition funds are disbursed to the applicant, whichever is later. The progress report must address any
changes in the project focus or purpose, progress in obtaining matching funding,and stewardship and
maintenance. Sponsors receiving O& M funds will also submit an annual report for each year that O&M funds
are expended. The Committee will use the information to develop a project"report card"that will be submitted
annually to the Board of County Commissioners.
16 b. If this project is approved for funding, I understand the sponsor is required to submit progress reports for
three years and for any year in which O& M funds are expended. Initials 72ZI-7-Y Date
16 c. If, three years after the date funding is approved by the Board of County Commissioners, the project sponsor
has not obtained the required matching funds,the Committee may request the Board of County Commissioners to
nullify their approval of funds,and may require the project to re-apply.
If this project is approved for funding, I understand that we may be required to re-submit the application if the
proje t ponsor does no obtain the necessary matching funding within three years.
Initials f_qte
Y
16 d. The applicant has reviewed all project requirements and all information in the application is accurate to the
best of their knowledge.162, Initial s_&? ate
16 e. The sponsor commits to providing long-term stewardship to achieve the conservation and protection goals of
the project as proposed in this application or may be modified with recommendation of the CF Committee and
approval of the BoCC. lZ) Initials Date
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2024 CF Program Application FINAL
Tarboo
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Figure 3. The proposed acquisition of the West Slope Forest Property (the Property) is adjacent
to the Tarboo Wildlife Preserve in the Tarboo valley.
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Figure 5. Lydar showing hillslopes and stream ravines on the Property.
Figure 6. Critical areas on the Property, including streams, wetlands (blue), and steep
slopes(yellows).
Figure 7. Aerial view north of Property adjacent to the Tarboo Wildlife Preserve.
ask.
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Figure 8. Aerial view south of property in relation to TWP and Tarboo Bay.
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Figure 9.Aerial view east of Property with recent cardboard/live stake plantings in foreground.
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Figure 10. View of Property from NWI's field station/base for the Tarboo Wildlife Preserve.
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Figure 11. NWI staff and volunteers set out to plant wetlands with Property in background.
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Figure 12. Volunteers learning how to do live stake and cardboard plantings with Property in
background.
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07-Feb 24
A.ALl,2 iv:{ Victor 2/9/2024 3:00-
2/9/2024 7:00;5 fixes
09 Feb 24
+2 Quilcene
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Figure 21. Travel route of a young collared cougar named Sewect, visiting Tarboo watershed in
March 2024 (from Panthera Project).
Sewect
2024)
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Figure 22. Sewect spent extended time in the area including the Property (from Panthera
Project).
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Figure 23. Family of 4 cougar from game camera at nearbly Dabob Bay (one young at log).
77,
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10-28-2023 19:11:29
Figure 24. Bull elk recorded on game camera at Tarboo Wildlife Preserve in October 2023. The
Project will improve landscape scale conservation and connectivity for wildlife.
Rayonier
Rayonier Forest Resources, L.P.
19950 7th Avenue NE, Suite
Poulsbo, Washington 98370
March 13, 2024
VIA EMAIL
peter@nwwatershed.org
Peter Bahls, Executive Director
Northwest Watershed Institute
3407 Eddy Street
Port Townsend, WA 98368
360-821-9566
www.nwwatershed.org
Dear Mr. Bahls,
Rayonier Forest Resources, L.P. ("Rayonier") understands that Northwest Watershed Institute
("NWI") is seeking funding to purchase fee simple interest in Jefferson County, WA tax parcels
801282005 and 801283001.
Rayonier is a willing seller of fee simple interest in the above parcel to NWI,pending agreement
on terms and value. These above parcels are also shown on the attached map. This is a non-
binding letter and neither Rayonier nor NWI shall incur any liability or legal obligation to the
other as a result of this letter. The legal rights and obligations of each party shall then be only
those which are set forth in a signed purchase and sale agreement.
Sincerely,
r&d
Chad McClung
Senior Manager, Real Estate Operations
Mobile: 936-671-0210
Chad.mcclung(c-rayonier.com
f. de,
_ r jice
i n1�-OU-J,t
PARCEL MAP
Iqllb—
' nax""giyt naxt`J'y't?m
PORT GAMBLE S'KLALLAM TRIBE
March 21, 2024
Peter Bahls,Executive Director
Northwest Watershed Institute
3407 Eddy Street
Port Townsend,WA 98368
Dear Mr. Bahls:
I understand that Northwest Watershed Institute is applying for Jefferson County Conservation Futures(1CCF)
grant funding to acquire and protect the West Slope Forest,80 acres of forestland,as part of NWI's Tarboo
Wildlife Preserve. If successful,the grant funding will protect the forest under county deed restrictions and allow
older forest habitats to develop,while permitting some limited harvest of trees and other forest products We
strongly support this project and want to convey the importance of the forest as a cultural resource to the
Tribes
The JCCF grant application states that cultural resources include"...traditional, religious,ceremonial,and social
uses and activities of affected Indian Tribes...". I want to make it clear that the West Slope Forest is a cultural
resource under this definition and the proposed plan for protection and restoration would help grow its
importance.
Four tribes- Port Gamble S'Klallam Tribe,Jamestown S'Klallam Tribe,Lower Elwha S'Klallam Tribe,and
Skokomish Tribe- are signatories to the Point No Point Treaty and retain the right to hunt and gather within
their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon the
forests of the region,as they have for thousands of years,as places where they gather traditional food,
medicine,and materials for use in all aspects of their cultural life,including social and religious.
Currently,the Tribe is enjoying a renaissance of weavers and artists using traditional methods and materials;
especially materials from the cedar tree.For example,tribal members harvest the inner bark of large cedar trees
for weaving baskets and clothing used for ceremonial purposes.They also harvest wood from cedar, big leaf
maple,and alder trees to make large box drums, masks,and other traditional objects that the Tribes have used
for thousands of years for religious and social ceremonies. However,with the conversion of vast areas to private
industrial tree farms and development projects,it is increasing difficult for us to access forests suitable for
traditional cultural uses.
The proposed project will protect an important cultural resource for the Tribes:a young forest where,with good
stewardship,the benefits to the Tribes will continue to grow as the forest develops into an older, biologically
diverse forest with a large variety of indigenous plants and trees of cultural importance.The Tarboo forest is
significant not just for the materials it can offer over time, but the opportunity for the Tribe to harvest locally;
the process of harvesting itself is infused with traditional,social and religious meaning that we want to pass on
to the coming generations.
Sincerely,
Laura Price
Cultural Resources Director
360 509-7723
31912 Little Boston Road NE Kingston,WA 98346
P:360-297.2646 1 F:360-297-7097
Email:mfo@pgst.nsn.us i web.www pgst.nsn.us
Northwest Watershed Institute
BOARD OF DIRECTORS 2023-24
Board Members and Affiliation and Term on the Board of Directors
Officers
Peter Bahls Peter Bahls is currently full time Executive Director and Conservation
President,Vice-President, Biologist for Northwest Watershed Institute.
Treasurer
Term-2023-2025
3407 Eddy Street
Port Townsend,WA 98368
Jean Ball Jean Ball is a farmer and naturalist in Quilcene,Washington.
Board Member
Term- 2022-2024
10221 Center Road,
Quilcene,WA 98368
Scott Calhoun Scott Calhoun studied biology and geology in college and graduate
Board Member school where he specialized in shorelines and watersheds. He owns
forestland in the Tarboo watershed.
5710 59th Ave NE
Seattle,WA 98105 Term-2022-2024
Janis Henry Janis Henry is a retired biotech patent attorney and chemist with over
Secretary 30 years of experience.She is a life-long nature enthusiast and
embraces adventure travel.
14445 SE 55th Street
Bellevue,WA 98006 Term-2023-2025
Gene Jones Gene Jones is a member of the Port Gamble S'Klallam Tribe and
Board Member spiritual leader for four Tribes in the Olympic Peninsula region.
5860 NE Totten Road Term-2023-2025
Poulsbo,WA 98370
Liz Hoenig Kanieski Liz Hoenig Kanieski has over 25 years of experience as a field biologist,
environmental educator,and environmental planner.Much of her work
1005 Lawrence Street has focused on watershed protection,citizen engagement and water
Port Townsend,WA 98368 resources.
Term-2023-2025
Keith Lazelle Keith Lazelle is an award-winning nature photographer who lives on
Board Member Dabob Bay. His work has been used by many environmental
organizations including Audubon,Hoh River Trust,The Nature
PO Box 192 Conservancy,and NWI.
Quilcene,WA 98376
Term-2022-2024
Northwest Watershed Institute
STAFF ROSTER 2024
Peter Bahls, Executive Director
Wesley Meyers, Stewardship Director
Megan Brookens, Education and Outreach Director
Robin Enge, Administrative Assistant
Eva Ellis, Field Crew
Jacob Baily, Field Crew
Zack Hawkes, Field Crew
Hanna Petersen, Field Crew
Mark Tomkiewicz, Field Crew
Trevor Williams, Field Crew
Ashley Ross, Field Crew
Hillary Kleeb, Field Crew
Jv vv 3407 Eddy Street I Port Townsend, Washington 98368
Northwest voice 360.385.6786 fax 360.385.2839
Watershed Institute email peter@nwwatershed.org I www.nwwatershed.org
Memo
To: Tarboo Creek Conservation Project File
From:Peter Bahls, Executive Director
CC:
Date: March 20, 2024
Re: Executive Committee Resolution to Submit Jefferson County Conservation
Futures 2024 Application for the West Slope Forest Addition to Tarboo
Wildlife Preserve.
At its Annual Board Meeting of May 19, 2023, the Board of Directors of Northwest
Watershed Institute unanimously approved the following resolution —
An executive committee comprised of Peter Bahls and Janis Henry shall serve as an
executive committee to have the power to make on-going decisions between Board
meetings per the existing by-laws.
On May 20, 2024 the executive committee approved the following resolution—
DECIDED — Northwest Watershed Institute shall sponsor and submit a grant
application for Jefferson County Conservation Futures 2024 Program to propose
acquisition and conservation of the 81-acre West Slope Forest property as part of the
Tarboo Wildlife Preserve.
Peter Bahls Janis Henry
President Secretary
i
2:04 PM Northwest Watershed Institute
03/20/24 Profit & Loss
Accrual Basis July 2022 through June 2023
Jul'22-Jun 23
Ordinary Income/Expense
Income
Grant Revenue
4010 Federal Funds 201,651,39
4020 Foundation 8,448.60
4030 State Funds 129,161.87
Total Grant Revenue 339,261.86
Contributed Income
4040 Restricted 72,211.00
4050 Unrestricted 52,425.62
Total Contributed Income 124,636.62
Rental/Lease Income
4165•Olson tideland lease 4,000.00
4175 Rental Income Reinertsen Rental 18,000.00
4182 Rental Income-Yarr Caretaker 4.500.00
Total Rental/Lease Income 26,500.00
Consulting/Miscellaneous
4210 Consulting Fees 5,360.73
4220 Miscellaneous Income 118.00
Total Consulting/Miscellaneous 5,478.73
Total Income 495,877.21
Gross Profit 495,877.21
Expense
Health benefits
6096 Health insurance 36,855.21
6094 HSA Contribution 9,750.00
Total Health benefits 46,605.21
6055• Gifts 300.00
6041 Paypal Fees 281.83
6010 Advertising 50.00
6030 •Automobile Expense 6,451.71
6040• Bank Service Charges 117.50
Insurance
6091 •Auto 1,341.50
6093-Liability Insurance 6,114.05
Total Insurance 7,455.55
Land Acquisition
6150•Land -38,399.87
6160 • Land-earnest money 2,500.00
Land Acquisition-Other 35,426.54
Total Land Acquisition -473.33
6210• Miscellaneous 0.00
Payroll Expenses
Gross wages
6237 Education Director 15,168.00
6231 Director 73,333.44
6232 Stewardship Director 29,568.00
6233- Project Assistant 4,459.00
6234• Field Crew 63,983.63
Total Gross wages 186,512.07
Page 1
2:04 PM Northwest Watershed Institute
03/20/24 Profit & Loss
Accrual Basis July 2022 through June 2023
Jul'22-Jun 23
Payroll Taxes
6246 Paid Family and Medical Leave 34.79
6240 Medicare 3,029.34
6241 Social Security 12,952.85
6243 Workers Comp 8,790.51
6245 WA State Unemployment 2,293.88
Total Payroll Taxes 27,101.37
Payroll Expenses-Other 22,441.50
Total Payroll Expenses 236,054.94
6250 • Postage and Delivery 748.96
6260• Printing and Reproduction 947.19
Professional Fees
6271 -Accounting 2,000.00
Total Professional Fees 2.000.00
Program Expense
6282 Fees 10,624.81
6283 Project subcontractors 69,373.10
6286 Overrun 141.76
Total Program Expense 80,139.67
6290- Rent 12,000.00
Repairs and Maintenance
6310•Building Repairs 504.26
6320•Computer Repairs 196.38
Total Repairs and Maintenance 700.64
Supplies
6420 • Field Supplies 33,906.16
6440•Office Supplies 1,805.35
Total Supplies 35,711.51
Taxes
6510 • Property Taxes 3,426.04
Total Taxes 3,426.04
Telephone/Communications
6650 • Mobile phone 1,736.54
6610 -Internet Server 767.34
Total Telephone/Communications 2,503.88
Travel&Ent
6720 - Meals 471.94
Total Travel&Ent 471.94
Total Expense 435,493.24
Net Ordinary Income 60,383.97
Other Income/Expense
Other Income
7010•Interest Income 1,774.26
Total Other Income 1,774.26
Net Other Income 1,774.26
Net Income 62,158.23
Page 2
2:06 PM Northwest Watershed Institute
03/20/24 Balance Sheet
Accrual Basis As of June 30, 2023
Jun 30,23
ASSETS
Current Assets
Checking/Savings
1020• Checking-Kitsap 145,566.83
Total Checking/Savings 145,566.83
Accounts Receivable
1200•Accounts Receivable 19,295.97
Total Accounts Receivable 19,295.97
Other Current Assets
1350 employee retention credit recei 47,328.06
1250 Prepaid Insurance 1,943.95
1300 Employee advance 163.88
1499• Undeposited Funds 50,777.08
Total Other Current Assets 100,212.97
Total Current Assets 265,075.77
Fixed Assets
1513-Vehicle-2001 Ford xtra Cab 8,000.00
1554•Trailers 4,000.00
1512 Vehicle-Ford pickup 4.150.00
1530 Kubota Tractor 16,709.10
1590 Accumulated Depreciation -26,992.08
Property
1555 Capital Improvements 3,035.20
1551 Land 1,097,135.67
1552• Earnest money 45,000.00
Total Property 1,145,170.87
Total Fixed Assets 1,151,037.89
TOTAL ASSETS 1,416,113.66
LIABILITIES&EQUITY
Liabilities
Current Liabilities
Accounts Payable
2000-Accounts Payable 7.576.28
Total Accounts Payable 7,576.28
Other Current Liabilities
2100- Payroll Liabilities
2105 Fica,Medicare,FWH Payable 4,356.86
2109 WA-Paid Fam Med Leave Emp. 398.31
2120 Workers Comp Payable 3,915.65
2130 SUTA&EAF Payable 800.52
Total 2100• Payroll Liabilities 9,471.34
2250- Rental Security Deposit 3,000.00
Total Other Current Liabilities 12,471.34
Total Current Liabilities 20,047.62
Total Liabilities 20,047.62
Page 1
2:06 PM Northwest Watershed Institute
03/20/24 Balance Sheet
Accrual Basis As Of June 30, 2023
Jun 30,23
Equity
1110• Retained Earnings 1,333,907.81
Net Income 62,158.23
Total Equity 1,396,066.04
TOTAL LIABILITIES&EQUITY 1,416,113.66
Page 2
2:06 PM Northwest Watershed Institute
03/20/24 A/R Aging Summary
As of June 30,2023
Current 1 -30 31 -60 61 -90 >90 TOTAL
ADMIN-001 0.00 0.00 0.00 0.00 0.00 0.00
DOEY-008 13,515.07 0.00 0.00 0.00 0.00 13,515.07
YESL-003 5,780.90 0.00 0.00 0.00 0.00 5,780.90
TOTAL 19,295.97 0.00 0.00 0.00 0.00 19,295.97
Page 1
2:03 PM Northwest Watershed Institute
03/20/24 Profit & Loss Budget Overview
Accrual Basis July 2023 through June 2024
Jul'23-Jun 24
Ordinary Income/Expense
Income
Grant Revenue
4010• Federal Funds 2,000,000.00
4020• Foundation 10,000.00
4030•State Funds 40,000.00
Total Grant Revenue 2,050,000.00
Contributed Income
4040• Restricted 150,000.00
4050• Unrestricted 120,000.00
Total Contributed Income 270,000.00
Rental/Lease Income
4165 Olson tideland lease 4,000.00
4175 Rental Income Reinertsen Rental 18,000.00
4182 Rental Income-Yarr Caretaker 4,500.00
Total Rental/Lease Income 26,500.00
Consulting/Miscellaneous
4210 Consulting Fees 2,000.00
4220 Miscellaneous Income 0.00
Total Consulting/Miscellaneous 2,000.00
Total Income 2,348,500.00
Gross Profit 2,348,500.00
Expense
Health benefits
6096• Health insurance 37,000.00
6094• HSA Contribution 9,750.00
Total Health benefits 46,750.00
6055• Gifts 300.00
6041 - Paypal Fees 400.00
6010-Advertising 50.00
6030 •Automobile Expense 7,000.00
6040 •Bank Service Charges 200.00
Insurance
6091 •Auto 2,000.00
6093• Liability Insurance 7,000.00
Total Insurance 9,000.00
Land Acquisition
6150• Land 1,680,000.00
6160• Land-earnest money 0.00
Land Acquisition-Other 0.00
Total Land Acquisition 1,680,000.00
6210-Miscellaneous 0.00
Payroll Expenses
Gross wages
6237 Education Director 30,000.00
6231 Director 80,000.00
6232 Stewardship Director 40,000.00
6233 Project Assistant 10,000.00
6234 Field Crew 120,000.00
Total Gross wages 280,000.00
Page 1
2:03 PM Northwest Watershed Institute
03/20/24 Profit & Loss Budget Overview
Accrual Basis July 2023 through June 2024
Jul'23-Jun 24
Payroll Taxes
6246 Paid Family and Medical Leave 0.00
6240 Medicare 4,000.00
6241 Social Security 20,000.00
6243 Workers Comp 15,000.00
6245 WA State Unemployment 4,000.00
Total Payroll Taxes 43,000.00
Payroll Expenses-Other 0.00
Total Payroll Expenses 323,000.00
6250- Postage and Delivery 1,000.00
6260- Printing and Reproduction 1,500.00
Professional Fees
6271 •Accounting 3,500.00
Total Professional Fees 3,500.00
Program Expense
6282 Fees 5,000.00
6283 Project subcontractors 140,000.00
6286•Overrun 150.00
Total Program Expense 145,150.00
6290•Rent 12,000.00
Repairs and Maintenance
6350-Septic Repair 10,000.00
6310• Building Repairs 15,000.00
6320 •Computer Repairs 1,000.00
6330• Equipment Repairs 3,000.00
Total Repairs and Maintenance 29,000.00
Supplies
6420 Field Supplies 75,000.00
6440 Office Supplies 3,000.00
Total Supplies 78,000.00
Taxes
6510•Property Taxes 4,000.00
Total Taxes 4,000.00
Telephone/Communications
6650 Mobile phone 2,000.00
6610 Internet Server 1,000.00
Total Telephone/Communications 3,000.00
Travel&Ent
6720•Meals 500.00
Total Travel&Ent 500.00
Utilities
6810 - Gas and Electric 600.00
Total Utilities 600.00
Total Expense 2,344,950.00
Net Ordinary Income 3,550.00
Page 2
2:03 PM Northwest Watershed Institute
03/20/24 Profit & Loss Budget Overview
Accrual Basis July 2023 through June 2024
Jul'23-Jun 24
Other Income/Expense
Other Income
7010•Interest Income 7,000.00
Total Other Income 7,000.00
Net Other Income 7,000.00
Net Income 10,550.00
Page 3
INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY
P. O. BOX 2508
CINCINNATI, OH 45201
Employer Identification Number:
Date: 2 4 93-1325820
DLN:
17053259778026
NORTHWEST WATERSHED INSTITUTE Contact Person:
3407 EDDY STREET CLINTON L FORTNER ID'# 31163
PORT TOWNSEND, WA 98368-0000 Contact Telephone Number:
(877) 829-5500
Public Charity Status:
170(b) (1) (A) (vi)
Dear Applicant :
Our letter dated JANUARY 2002, stated you would be exempt from Federal
income tax under section 501(c) (3) of the Internal Revenue Code, and you would
be treated as a public charity, rather than as a private foundation, during
an advance ruling period.
Based on the information you submitted, you are classified as a public charity
under the Code section listed in the heading of this letter. Since your
exempt status was not under consideration, you continue to be classified as
an organization exempt from Federal income tax under section. 501 (c) (3) of the
Code.
Publication 557, Tax-Exempt Status for Your Organization, provides detailed
information about your rights and responsibilities as an exempt organization.
You may request a copy by calling the toll-free number for forms,
(800) 829-3676. Information is also available on our Internet Web Site at
www.irs.gov.
If you have general questions about exempt organizations, please call our
toll-free number shown in the heading.
Please keep this letter in your permanent records.
Sincerely yours,
Lois G. eraser
Director, Exempt Organizations
Rulings and Agreements
Letter 1050 (DO/CG)