HomeMy WebLinkAboutDeerfoot Forest Final CF Application 2025
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2025 CFF Program Application
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 (360) 379-4498 or
tpokorny@co.jefferson.wa.us with questions.
Background and Eligibility Information
1. Project Title Deerfoot Forest
2. Conservation Futures Fund Acquisition Request Amount: $98,000
Conservation Futures O&M Request Amount: $12,000
3. Total Conservation Futures Request Amount: $110 ,000
4. Please indicate the type of interest contemplated in the acquisition process. __ Warranty Deed X Easement __ Other (Please describe below.)
In whose name will the property title be held after acquisition?
Penney Jo Ewing Hubbard will continue to hold title, with a conservation easement held by Jefferson Land
Trust and potentially a REPI easement held by the US Department of Defense.
5. Applicant Information
Name of Applicant or Organization: Jefferson Land Trust
Contact: Sarah Spaeth
Title: Director of Conservation & Strategic Partnerships
Address: 1033 Lawrence St. Port Townsend, WA 98368
Phone: (360) 379-9501, ext. 101 ________________________________ Fax: (_____) _____-________, ext. ____
Email: sspaeth@saveland.org
6. Sponsor Information: (if different than applicant) _________________________________________________
Organization Name:___________________________________________________________________________
Contact: ____________________________________________________________________________________
Title: ______________________________________________________________________________________
Address: ____________________________________________________________________________________
Phone: (_____) _____-________, ext. ____ _______________________ Fax: (_____) _____-________, ext. ____
Email: _____________________________________________________________________________________
2025 Jefferson County Conservation Futures Fund Program
Property Acquisition Project and/or
Operations and Maintenance Project Application
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2025 CFF Program Application
This application was approved by the sponsor’s legally responsible body (e.g., board, council, etc.) on February
20, 2024
7. Project Location Street Address or Description of Location: 11500 Center Rd. Quilcene, WA 98376
Driving Directions from Port Townsend: From Chimacum, take Center Road south for 11.5 miles and turn
right into the private driveway.
Section: 5
Township: 27 N
Range: 1W
Assessor’s Parcel Number(s): 701052002 and 701052011
Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with
CFF funds or used as match.
All parcels listed above will remain in Penney Hubbard’s ownership and will be preserved with a conservation
easement held by Jefferson Land Trust, likely along with a Navy Readiness and Environmental Protection
Integration (REPI) restrictive easement.
Please list the assessed values for each property or APN, as applicable.
701052002 –$469,479 current market value assessed & taxable value
701052011 - $82,905 current market value assessed & taxable value
8. Existing Conditions
New Site: Yes X No _________________________ Number of Parcels: 2
Addition to Existing Site: Yes No X ____________ Acres to Be Acquired: 36.9
Total Project Acreage (if different):______________ Current Zoning: RR:20 and RR:5
Existing Structures/Facilities: Two residences, two wells, a pump house, a small barn, woodshed, and a few
additional outbuildings.
Any current covenants, easements or restrictions on land use: None
Current Use: Residential
Waterfront (name of body of water): None
Shoreline (linear feet): N/A
Owner Tidelands/Shorelands: N/A
9. Current Property Owner X is __is not a willing seller.
Project Description
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2025 CFF Program Application
10. In 1,000 words or less, provide a summary description of the project, the match, and why you think preserving
this property is important. Name three top objectives for the property (other than those related to funding). Include
information about the physical characteristics of the site that is proposed for acquisition with Conservation
Futures Fund 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 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.
Jefferson Land Trust is seeking Conservation Futures funding for the permanent protection of Deerfoot Forest
with a conservation easement. This property is in Quilcene along Center Road and contains two parcels that
total 36.9 acres. Jefferson Land Trust seeks to protect this property with a conservation easement to protect
the important ecological features of upland forest, forested wetlands, and headwaters of two important creek
systems. The easement will prohibit fragmentation of the two parcels, further development, and
conventional/ clear-cut forest management practices.
The Hubbard Forest property appears to be a section of the headwaters of both Donovan Creek and Tarboo
Creek. This is inferred from onsite characteristics, knowledge of the water drainage, property location, and
elevation hillshade imagery. Jefferson Land Trust and other partners such as the Northwest Watershed
Institute, WA Department of Natural Resources, and Jefferson County have been working for over two
decades on the protection efforts of both watersheds of Donovan and Tarboo Creeks. This offers an important
opportunity for Jefferson Land Trust to continue with land protection efforts in these priority areas.
The Deerfoot Forest conservation easement will limit future development, require single ownership of the two
parcels, restrict forest management that only permits ecological enhancement activities, all with the goal of
protecting the wildlife corridor that this diverse second growth forest contributes to (described further in #7).
As large rotating clearcuts have occurred on adjacent neighboring parcels, Penney Hubbard and her husband
have ensured that the management of the Deerfoot Forest has allowed natural regeneration of the forest
ecosystem to occur. Their management vision includes the maintenance, preservation, and enhancement of
the diverse second growth forest as a “forest garden” for native plant species, wildlife, and human recreation
and enjoyment.
Deerfoot Forest has been naturally regenerating since its last logging operation around 1920. There are
various forest zones including mature Douglas fir mixed with cedar, western hemlock, Sitka spruce, alder and
maple patches, and forested wetlands. While some areas of the forest could benefit from more conifer tree
presence, there is a substantial amount of downed wood and standing snags throughout the property which
provide important habitat for various wildlife and sequester water and carbon on site. The property has varied
topography ranging from mostly flat forestland on the south side of Center Road to south-facing sloped
forestland on the parcel north of Center Road. The topography and soils of Deerfoot Forest hosts seasonal and
perennial forested wetlands and while there is no apparent surface water flow, the property appears to have
hydrological connections as a section of the headwaters of both Donovan Creek and Tarboo Creek. These
characteristics are well-suited to the proposed ecological protection. On the property, in addition to the two
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2025 CFF Program Application
residences located in the larger northern parcel, infrastructure includes two wells, a pump house, a small
barn, and other small outbuildings. Current zoning of the parcels appears to allow for one additional
development right on the southern parcel that would be extinguished with the conservation easement. The
existing infrastructure on site would remain in use by private landowners after protection with the
conservation easement, and the infrastructure would be limited to within one “building envelope” in the
easement.
Deerfoot Forest’s surrounding neighbor landowners include private timber companies, residential
development, and Department of Natural Resources Forest Board. These surrounding land uses have resulted
in the Deerfoot Forest serving as an intact wildlife corridor across the busy Center Road from the DNR Dabob
Bay Natural Area, only .25 miles away across Dabob Rd to the south. The landowners and other community
members have regularly sited black bears and cougars crossing Center Road between the two Hubbard
parcels, presumably because of the habitat interruption and fragmentation occurring on the surrounding
properties. The Deerfoot Forest has remained a wildlife and native plant refuge over the years as nearby
disturbances have continued to occur.
Jefferson Land Trust intends to protect this forested property with a conservation easement before the end of
2026 or early 2027, and CFF funds will provide essential funding toward this goal. In addition to CFF funds,
funding from the Navy Readiness and Environmental Protection Integration (REPI) program for the REPI
easement will also likely provide a substantial amount of the funding for this project, as well as (or
alternately) a bargain sale of the conservation easement from the landowners, providing the required
matching funds for the CFF program. The federal grant dollars and landowner match contributed to this
project have reduced the amount of funding requested from the CFF program.
After the protection of Deerfoot Forest with a conservation easement, the landowners will continue to
manage the property to enhance its ecological values, and the property will be protected from inappropriate
development or timber harvesting, forever.
To date, Jefferson Land Trust protects over 1,360 acres in the Tarboo Creek and Donovan Creek watersheds.
These properties include forestland, riparian, and farmland properties, working with several partners,
including the Northwest Watershed Institute and Department of Natural Resources.
Top objectives:
1. Protect the property with a conservation easement and Navy REPI restrictive easement which will
reduce the development rights, protect the forest and wetland habitat, and protect the headwaters of
Tarboo Creek and Donovan Creek – 2026/early 2027
2. After protection of the property the landowners, Jefferson Land Trust staff, and other natural
resources partners will collaborate to plan and implement the best forest management practices to
ensure that the property continues on its path toward old-growth forest characteristics and
contributes to climate resiliency
3. Landowners, Land Trust, and other partners will continue to assess the use of the property as a
wildlife corridor and determine if there are additional enhancements that can contribute to that use.
The overarching goal of this project is to protect the ecological values of Deerfoot Forest so that the property
will always remain in a maturing forested condition, protecting the water quality of the lower watersheds.
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2025 CFF Program Application
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 Fund 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.
Estimated or Appraised Value of Propert(ies) to be Acquired: The estimated value of the conservation
easement is $180,000.
Total Estimated Acquisition-related Cost (see Conservation Futures Fund Manual for eligible costs): $32,000
Total Operation and Maintenance Cost: $12,000
Total Project Cost: $224,000
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):
Deerfoot Forest estimated costs Timeline Est. Total
Cost
CFF Request Match
Easement acquisition 2026 $180,000 $75,000
$105,000
Land acquisition related costs, i.e.
appraisal, survey, Baseline document,
closing costs
2026 $24,000 $15,000 $9,000
Project management, admin and legal
fees
ongoing $8,000 $8,000 $0
O&M ongoing $12,000 $12,000 $0
Total $224,000 $110,000
(49%)
$114,000
(51%)
The estimate for the value of the easement acquisition is based on the current Jefferson County fair market
value assessment of the property, combined with our knowledge of the appraised value of other conservation
easements on local properties recently. Similarly, Jefferson Land Trust completes multiple acquisition
projects a year which helps us provide experienced estimates for project management and other
administrative costs that will be needed for this project.
Standalone O & M go to question #14:
Scored Questions
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2025 CFF Program Application
1. To what degree does the project leverage contributions for acquisition from groups, agencies or
individuals?
Sponsors or other organizations are required to contribute to acquisition of the proposed site and/or operation and maintenance activities.
1 a. Please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures Fund program funds.
1 b. Matching Fund Estimate Acquisition O&M %
Conservation Futures Funds Requested $98,000 $12,000 49.0%
Matching Funds/Resources* $114,000 $0 51%
Total Project Acquisition Cost $212,000 $12,000 100%
* If a prior acquisition is being proposed as match, please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition.
1 c. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when?
Navy REPI (or bargain sale) $114,000 __ Yes No _________ Yes No ________
NOTE: Fifty-percent (50%) matching funds are required, and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation of property or a property right can 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 has the project sponsor identified the long-term stewardship issues for the proposed project?
2 a. Identify any factors, threats, or stressors that could negatively affect the conservation values and/or community benefits for which the property would be conserved.
The mature forest conditions and hydrological conservation values of the Deerfoot Forest, including the
seasonal and perennial wetlands that feed into the Donovan Creek and Tarboo Creek watersheds could be
negatively impacted by further development currently allowed on the southern parcel under county code,
and by conventional forest management practices without a conservation easement.
2 b. Describe the management strategies that the stewardship plan will include to address the identified factors, threats, or stressors, including any actions planned to make these negative outcomes or impacts less likely.
The Land Trust anticipates that the stewardship plan will focus on management strategies designed to retain
and enhance the mature forest and wetland characteristics of the property. The landowners have a forest
management plan that was recently updated in consultation with an experienced DNR forester. This plan
promotes forest health, diversity, and resilience and will be a guiding document in the development of the
Stewardship Plan.
The Stewardship Plan is created in partnership with landowners who retain the fee-simple rights to the
property. These plans, including their management strategies, are developed once the staff have more time
(funded by public granting agencies) to conduct site assessments to create a baseline conditions report and
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2025 CFF Program Application
stewardship plan. The Land Trust will engage in ongoing, detailed discussions with landowners and their
forest manager to formulate joint strategies for protecting and enhancing the identified conservation values,
once the project has secured funding and before closing on the conservation easement.
While we will have the required Stewardship Plan outline or draft to County Environmental Health staff in
advance of closing on the conservation easement, the national Land Trust Alliance—which regularly updates
its Standards and Practices to guide accredited land trusts such as Jefferson Land Trust—requires a
management plan to be developed within 12 months of land acquisition. This timeline allows staff to set
management goals, address risks to conservation values, and identify appropriate public access
opportunities. When necessary, we will update the Stewardship Plan according to the conservation easement
requirements. (https://landtrustalliance.org/resources/learn/explore/practice-12b-land-management-and-
stewardship
2 c. Describe any existing water rights, and current uses of water. Identify any conservation values currently being protected that are dependent on these sources of water.
The Deerfoot Forest property residences utilize two domestic wells. Onsite water supply is not an element of
the identified conservation values.
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.
Over the 35 years since it was formed, Jefferson Land Trust has managed many acquisition projects with
several project partner organizations, including Jefferson County, The Trust for Public Land, Northwest
Watershed Institute, North Olympic Salmon Coalition (NOSC), JCCD, HCSEG, the Navy and others, and we
have been responsible for conducting or coordinating restoration activities in partnership with many of those
same agencies and organizations. The Land Trust also holds title to over 1,890 acres of preserves and we have
helped with the preservation and stewardship of another 12,941 acres in Jefferson County. We currently hold
69 conservation easements on 3,597 acres, including the Tarboo Wildlife Preserve (396 acres), Carl’s Forest
(156 acres), Arlandia (28 acres), and other facilitated protection projects with the Northwest Watershed
Institute.
Jefferson Land Trust stewardship and monitoring protocols were developed with the guidance of the national
Land Trust Alliance, and adherence to those protocols is one of the requirements for our formal land trust
accreditation.
3 b. Has the project sponsor and/or applicant been involved in other projects previously approved for Conservation Futures Fund funding? _____No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures Fund funds.
X Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for
Conservation Futures Fund funds. Please provide details:
Jefferson Land Trust has worked with many willing landowners and has sponsored 40 CFF applications over
the years since Jefferson County approved collection of the conservation futures property tax and developed
the program in 2003. These projects are found in almost all areas of East Jefferson County and range from fee
simple acquisition of nature preserves that are held by Jefferson Land Trust, or by other entities such as the
City of Port Townsend, Jefferson County or the Jamestown S’Klallam Tribe, to permanent conservation
easements held by Jefferson Land Trust on privately owned properties.
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2025 CFF Program Application
4. 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:
__is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort, that provided opportunities for public review and comment. 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.
X complements an adopted open space or conservation plan that was open to public review, but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan.
__is a stand-alone project, or part of a project that was not open to public review.
For context, the Deerfoot Forest property is nearby the Washington DNR’s designated Dabob Bay Natural
Area. The Dabob Bay Natural Area was created to protect one of Washington’s highest functioning coastal spit
and tidal wetland systems. Deerfoot Forest and other properties within the Tarboo watershed have the
opportunity to provide additional protection to these areas by protecting the water quality of tributaries
feeding into Dabob Bay. Tarboo-Dabob is identified in the Willamette Valley—Puget Trough—Georgia Basin
Ecoregional Assessment (Floberg et al. 2004) as a priority area for conserving terrestrial biodiversity, and the
summary of special occurrences appendix.
Jefferson Land Trust’s community-vetted 100-Year Conservation Plan articulates the importance of
preserving habitat with the community vision – “Habitat is biologically diverse, interconnected, and supports
viable population of keystone species.” (pg. 13, Jefferson Land Trust Conservation Plan, 2010). It also identifies
"wildlife corridors" and “natural ecosystems” as priorities for habitat areas to be protected, which Deerfoot
Forest can be characterized as.
A portion of the Deerfoot Forest property is specifically identified as a Highly Resilient Terrestrial Biodiversity
Area through Jefferson Land Trust’s Climate Resiliency Spatial Conservation Planning. More information
about the Land Resilience Study can be found in the hyperlink and in Question #11.
5. To what degree does the project conserve opportunities which are otherwise lost or threatened?
5 a. The proposed acquisition site X does __does not provide a conservation or preservation opportunity which
would otherwise be lost or threatened.
5 b. If applicable, please carefully describe the nature and immediacy of the threat, and any unique qualities about
the site.
The landowners of Deerfoot Forest have considered working with Jefferson Land Trust to protect their
forestland for over a decade now. Up until last year, the Hubbards wanted to reserve their ability to sell off
their second parcel in case they have unexpected medical costs arise. However, now that there is the
opportunity to secure Conservation Futures funds for the protection of this property, we can now work with
the landowners to consolidate the property, extinguish the remaining development right, and ensure that it
cannot be subdivided or clearcut should the landowners need to sell the property in the future, or after their
lifetimes.
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2025 CFF Program Application
6. Are the conservation values of the project commensurate with or greater than the amount of CFF funds requested, and will both the timeframes for meeting project objectives and associated
metrics demonstrate achievement of the conservation objectives?
6 a. Summarize the project’s conservation values and how the CFF funds requested support these values.
The conservation values of the property that will be protected by the conservation easement include mature,
diverse forest habitat, forested wetlands, scenic qualities along a main county road, and educational and
scientific opportunities. The protection of this mature forest habitat will benefit the biological diversity,
carbon sequestration, and groundwater recharge of the forest, as well as extend the wildlife corridor in the
Tarboo and Donovan Creek watersheds that many partners have been working to protect for two decades.
CFF funds requested will directly support these values by utilizing the conservation future tax levy to preserve
the sensitive lands of Deerfoot Forest that would be permanently damaged by increased development or
resource extraction. CFF funds may also leverage additional funding from the Navy’s Readiness and
Environmental Integration Program, and/or a bargain sale of the conservation easements.
The timeframes for meeting the project objectives are reasonable and will achieve the conservation
objectives.
6 b. Summarize how the project’s conservation values are related to the project’s specific objectives.
The objectives described in the Project Description ensure that Jefferson Land Trust is performing the
appropriate steps to ensure permanent protection of the conservation values described in 6a. 7. To what degree does the project preserve habitat for flora and fauna other than habitat for anadromous fish species?
7 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).
7 b. X provides habitat for native flora and fauna. Identify the documented habitat(s) and native flora or fauna
species that will be protected by the project.
7 c. X contributes to a wildlife corridor or migration route identified by Washington Connectivity Working Group
or other peer-reviewed source.
If affirmative in any of the above, please describe and list the Priority Habitat(s) and Threatened, Endangered, or
Sensitive species below, and cite or provide documentation of species’ use.1
Note about this year’s changes to 7c: the “Washington Connectivity Working Group” has no data on their Linkage
Pathways interactive map west of the Cascade Mountains. Additionally, all the links recommended in the
footnote below are expired. If citing information from specific resources is desired, please provide different
requests. Otherwise, sponsors will continue to cite information from their resources.
Note also that the Land Trust is participating in the statewide Washington Habitat Connectivity Action Planning
process and is providing feedback and local priority information to advise the update of the Action Plan,
expected to be complete in mid- 2025.
1 See, for example, http://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp_nh.aspx http://www.wdfw.wa.gov/conservation/phs/list/
http://www1.dnr.wa.gov/nhp/refdesk/plants.html http://www1.dnr.wa.gov/nhp/refdesk/pubs/wa_ecological_systems.pdf
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2025 CFF Program Application
The Deerfoot Forest property is nearby other conserved land including the conservation easements Tarboo
Wildlife Preserve (396 acres), Carl’s Forest (156 acres), Arlandia (28 acres), and other facilitated protection
projects with the Northwest Watershed Institute, contributing to greater habitat corridors for wildlife species.
The mature, mixed species forest and forested wetlands onsite provide habitat for multiple species - wildlife
documented onsite include Black bear and deer, cougar, coyote, raccoon, local woodpecker species and bat
species that move throughout the landscape. Western toads have been sited on the property for multiple
years – they are listed as a State Candidate (WDFW Priority Habitat and Species list) and Federal Species of
Concern.
The Olympic Cougar Project, a connectivity collaborative funded by the international Panthera nonprofit
organization, has documented that within the last several months, Yenewes, a collared female cougar who
now has four kittens, spent one week on the northern Deerfoot Forest parcel. When a cougar who is part of
this study spends a week in one place, they have either killed and are eating, or they are denning. Additionally,
the Olympic Cougar Project has shared data of other collared cats that are also frequenting this area in and
around Deerfoot Forest.
Directly to the south of Deerfoot Forest is Department of Natural Resources property in their Forest Board
category for timber production, but we understand that the presence of marbled murrelets on or near this
property means that DNR may be working to incorporate these properties into their Dabob Bay Natural Area
Preserve (currently located less than .25 miles from Deerfoot Forest). Deerfoot Forest contributes to the
protection of water quality throughout the Dabob Baby and Donovan Creek watersheds by reducing the
number of negative impacts that the streams and bays have to respond to such as sedimentation, erosion,
pollution, and flooding. Furthermore, Dabob Bay is home to surf smelt, Pacific sand lace, Pacific Herring,
Pacific geoduck, hardshell clams, commercial oyster production as well as several WDFW Priority Habitats
(estuarine and marine wetland, freshwater emergent wetland). Quilcene Bay, fed by Donovan Creek has
similar conservation values and species present.
8. To what degree does the project protect habitat for anadromous fish species?
8. 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.
As described in question #7, this property appears to be some of the headwaters of both Donovan Creek and
Tarboo Creek, both of which are anadromous streams for multiple salmonid species, including Hood Canal
summer chum, Puget Sound chinook, coho. The protection of habitats upstream in a watershed provides
benefit to the water quality and conditions of the salmon-bearing streams further down the watershed.
9. To what degree does the project preserve farmland for agricultural use OR preserve forestland for forest management? 9 a. Describe the extent and nature of current and planned agricultural use or forest management activities of the
proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds.
The forestland’s primary management goal is not for silvicultural and economic production, but instead for
actively managing the property through enhancing and preserving the ecological diversity and resiliency of
this upland and forested wetland habitat.
9 b. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat.
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2025 CFF Program Application
With the proposed terms of the conservation easement, Deerfoot Forest will be able to be managed in a
similar function as described in 11b, in perpetuity. The easement terms will restrict clear cutting, timber
harvest, and conversion of the forest which will protect the water quality, soil health, watershed function and
wildlife habitat as described throughout this application.
9 c. Does this project preserve a mix of quality farmland and forestland?
Preservation of farmland is not one of the proposed conservation values for this forested property; the
preservation of structurally diverse, second growth forest is the primary goal of this conservation easement.
10. To what degree does this project increase resiliency to and mitigation of climate change, and is
the project’s scale significant in regards to increasing climate resiliency?
10. Describe how this project will increase resiliency to and mitigation of climate change. Is the project’s scale significant in regards to increasing climate resiliency?
Jefferson Land Trust and the North Olympic Land Trust have been involved in a Land Resilience Study of the
North Olympic Peninsula since 2020. This study included working with a professional GIS consultant to utilize
over 90 data sets and draw from 18 public and private sources to develop a set of climate resilience metrics
that are helping to structure conservation initiatives in both partner organizations and shape future
collaboration. The metrics are analyzed through the four pillars of our work including working farmland,
working forestland, habitat and biodiversity, and community opportunity areas.
Through this analysis, portions of Deerfoot Forest are identified as a Terrestrial Biodiversity Conservation
Opportunity Area through this spatial resiliency study. Terrestrial Biodiversity Conservation Opportunity Areas
are defined as the lands on the Olympic Peninsula that are most likely to retain their ecological integrity and
features that support migrating biodiversity both present and predicted, where there are corridors between
these features that will support future migration and are the habitat lands that have high carbon
sequestration values.
The long-term protection of this structurally diverse second-growth forest will enhance its ecological
integrity, contributing to climate change resilience. Achieving climate change resilience in Jefferson County
will require incremental protection efforts, collaborating with landowners of varying property sizes. Most
privately-owned parcels in the county, not held by commercial timber companies, are smaller than 100 acres.
In this context, the 37-acre size of this project is particularly significant, especially due to its proximity to the
Dabob Bay Natural Area Preserve and protection efforts in the lower Donovan Creek watershed.
11. What area does the project serve?
11 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.
Deerfoot Forest is a piece of property that is part of a much broader county area that has been prioritized for
protection by many local and regional land conservation and management partners. Both the Donovan and
Tarboo Creek watersheds have been prioritized for preservation and restoration for over two decades, as
described in #7. Deerfoot Forest is at the top of these watersheds, which benefits all of the downstream work
that has been happening over many years.
11 b. Is the project located in an area that is under-represented by CFF funded Projects? Areas that Conservation
Futures has not been able to support to date include, Toandos Peninsula, Dosewallips Valley, Bolton Peninsula, and the West End.
No.
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2025 CFF Program Application
12. To what degree is the applicant committing to providing educational opportunities, interpretive opportunities, and/or serve as a general community resource that does not reduce the
conservation value(s) of the project?
12. Describe the educational or interpretive opportunities that the applicant will provide for 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.2 Provide the time frames when each of the above will be implemented.
While conservation easements cannot require access for the public or interpretive signage, the Hubbards are
very passionate about being able to share educational and visitor opportunities on their property. Their future
goals for the forest stated in their Forest Management Plan include designing additional walking trails and
visitor infrastructure such as benches and gazebo to encourage the opportunity for people to visit an
exemplary native forest and wildlife habitat for future generations.
13. To what degree does the project preserve historic or culturally significant resources3? 13. The proposed acquisition __ includes historic or culturally significant resources4 and
__ is registered with the National Register of Historic Places, or an equivalent program.
__ is recognized locally has having historic or cultural resources.
__ is adjacent to and provides a buffer for a historic or cultural site.
X none of the above.
If affirmative in any of the above, please describe below, and cite or provide documentation of the historical cultural resources.
Standalone O & M Projects
14. Applications for standalone Operation and Maintenance funding to be scored on a scale of 1-100 based on information provided. Consider the CFF Manual and the topics below, for example:
14. 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.
Verification
2 The words “education” and “interpretation” are interpreted broadly by the CFF Committee.
3 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.
Deerfoot Forest
Application Photos
Forested sedge wetland.
Southern parcel facing southwest. Bigleaf maple-dominant forest with mid-size regenerating conifers.
Onsite driveway with Douglas fir and bigleaf maple.
Large maple on site; moss and lichen demonstrate strong moisture presence. Conservation Futures Citizen Advisory
Committee site visit.
Representative conditions of mixed alder, salmonberry, sword fern forest. Northern neighbor boundary line
(commercial forestry) can be seen in background.
One of many Western toads found onsite by the landowners. Western toads are listed as a State Candidate (WDFW
Priority Habitat and Species list) and Federal Species of Concern.
Jefferson Land Trust Board Roster 2025
Jefferson Land Trust
Board of Directors
2025
Jane Guiltinan
Board President
• Dean Emeritus at Bastyr
University
• Naturopathic Physician, retired
Tim Lawson
Vice President
• Founder and Executive Director
of Port Townsend School of
Woodworking, retired
Brian Rogers
Secretary
• Chancellor of University of
Alaska Fairbanks, retired
• State of Alaska Legislator,
retired
Julie Lockhart
Treasurer
• Educator and nonprofit
professional, retired
• Executive Director of
WinterSpring, retired
Sherry Moller
• Plan Manager for Washington
FAIR Pl
Tom Sanford
• Executive Director of North
Olympic Land Trust
Rick York
• California Department of Fish
and Game - Botanist and
Biologist, retired
Barry Mitzman
• Reporter and Peabody Award-
winning Television Producer,
retired
• Seattle University Strategic
Communications Director,
retired
Ed Thompson
• Attorney and land conservation
professional, American
Farmland Trust, retired
Ben Wilson
• Healthcare and Technology,
retired
• Board President of Climate
Action Pathways for Schools
Jefferson Land Trust Board Roster 2025
Jennifer Harrison
• Head of Gaming
Experimentation, Microsoft
• Managing Director of Earth
Economics
JEFFERSON LAND TRUST
➢ BOARD OF DIRECTORS
ORGANIZATIONAL CHART
➢ RICHARD TUCKER - Executive Director
➢ SARAH SPAETH- Director of Conservation and Strategic Partnerships
BLAISE SULLIVAN- Conservation Project Manager
➢ ERIK KINGFISHER- Director of Stewardship & Resilience
CARRIE CLENDANIEL- Preserve Manager
DEVON BUCKHAM – Education Coordinator
GREG SACHS – Preserve Assistant
KELLY STOCKER – Americorps Habitat Enhancement Crew Member
MARLOWE MOSER – Stewardship Coordinator
➢ KATE GODMAN- Director of Philanthropy
SARAH ZABLOCKI-AXLING- Development Manager
SYDNEY LAROSE – Development Assistant
RIC BREWER- Community Relations & Events Manager
➢ STEPAHNIE WEIGAND – Communications Manager
LILLY SCHNEIDER – Communications Coordinator
➢ PAULA McNEES- Finance Manager
➢ CRISTINA VILLALOBOS – Office & Preserve Assistant (Matrixed to Stewardship)
➢ RYEN HELZER – Community Forest Manager
INCOME
Restricted Funds
Federal, State & County Grants 250,795
Foundation Grants 150,000
Donor Restricted -
Investment -
Operations Income
Annual Contributions 545,000
Special Events 66,550
Fee for Service 156,110
Investment Income -
Other/Release from Restriction 809,201
Foundation Grants/Unrestricted 20,000
Total Income 1,997,656
EXPENSE
Direct Program 156,629
Acquisition & Conveyance -
Land/Easement Holding 55,800
Professional Services 179277.00
General & Administrative 1,605,445
Total Expense 1,997,151
Net Income 505
JEFFERSON LAND TRUST AND SUBSIDIARIES
Consolidated Financial Statements
For the Years Ended December 31, 2023 and 2022
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-2023 .............................. 5
Consolidated Statement of Activities and Changes in Net Assets-2022 .............................. 6
Consolidated Statement of Functional Expenses-2023 ......................................................... 7
Consolidated Statement of Functional Expenses-2022 ......................................................... 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
1
MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditor’s Report
To the Board of Directors
Jefferson Land Trust & Subsidiaries
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 Subsidiaries
(collectively, JLT, a nonprofit organization), which comprise the consolidated statement of financial position as of
December 31, 2023 and 2022, 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, 2023 and 2022, 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.
2
In performing an audit in accordance with GAAS, 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
Certified Public Accountants
& Consultants
July 26, 2024
Montesano, WA
Jefferson Land Trust and Subsidiaries
A Washington Not For Profit Organization
Consolidated Statement of Financial Position
As of December 31, 2023 and December 31, 2022
Assets
2023 2022
Current Assets:
Cash and cash equivalents 2,427,128$ 2,173,070$
Accounts receivable 170,424 37,604
Current pledges receivable 1,139,589 1,063,546
Prepaid expense 15,839 1,361
Total Current Assets 3,752,980 3,275,581
Land and Conservation Easements:
Habitat land 9,231,039 7,534,455
Working land 5,052,673 97,728
Open space land 332,761 332,761
Conservation easements 69 69
Total Land and Conservation Easements 14,616,542 7,965,013
Fixed Assets:
Furniture, equipment, and improvements 97,340 97,340
Less: Accumulated depreciation (66,611) (61,086)
Fixed assets, net 30,729 36,254
Other Assets:
Long term pledges receivable 150,366 471,051
Land hold fee-net - 8,333
Investments 2,276,171 1,463,104
Total Other Assets 2,426,537 1,942,488
Total Assets 20,826,788$ 13,219,336$
The accompanying notes are an integral part of these financial statements
3
Jefferson Land Trust and Subsidiaries
A Washington Not For Profit Organization
Consolidated Statement of Financial Position
As of December 31, 2023 and December 31, 2022
Liabilities & Net Assets
2023 2022
Current Liabilities:
Accounts payable 30,683$ 26,399$
Accrued liabilities and deferred revenue 138,401 112,823
Total Current Liabilities 169,084 139,222
Long-Term Liabilities:
Note payable 550,000 -
Total Liabilities 719,084 139,222
Net Assets:
Without donor restrictions
Undesignated 1,099,368 1,039,705
Board designated 14,520,704 7,833,694
15,620,072 8,873,399
With donor restrictions 4,487,632 4,206,715
Total Net Assets 20,107,704 13,080,114
Total Liabilities & Net Assets 20,826,788$ 13,219,336$
The accompanying notes are an integral part of these financial statements
4
Jefferson Land Trust and Subsidiaries
A Washington Not For Profit Organization
Consolidated Statement of Activities and Changes in Net Assets
For the Year Ended December 31, 2023
Without Donor With Donor Total
Restrictions Restrictions 2023
Support and Revenues:
Gifts and contributions 1,260,518$ 2,601,431$ 3,861,949$
Donated land and easements 184,433 - 184,433
Inkind donations 11,042 - 11,042
Grants and contracts 4,906,931 - 4,906,931
Special events income, net of
expenses of $37,121 16,782 - 16,782
Net investment return 80,034 101,457 181,491
Net assets released from restriction 2,421,971 (2,421,971) -
Total Support and Revenue 8,881,711 280,917 9,162,628
Expenses:
Program services 1,525,548 - 1,525,548
Management and general 302,737 - 302,737
Fundraising 306,753 - 306,753
Total Expenses 2,135,038 - 2,135,038
Change in Net Assets 6,746,673 280,917 7,027,590
Net Assets, Beginning of Year 8,873,399 4,206,715 13,080,114
Net Assets, End of Year 15,620,072$ 4,487,632$ 20,107,704$
The accompanying notes are an integral part of these financial statements
5
Jefferson Land Trust and Subsidiaries
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
6
Jefferson Land Trust and Subsidiaries
A Washington Not For Profit Organization
Consolidated Statement of Functional Expenses
For the Year Ended December 31, 2023
Management Fund- Total
Program and General Raising 2023
Salaries 581,490$ 162,041$ 194,180$ 937,711$
Payroll taxes 48,293 13,458 16,127 77,878
Employee benefits 70,153 19,549 23,426 113,128
Professional fees 416,346 46,314 14,000 476,660
Land and stewardship expenses 286,823 - - 286,823
Rent 19,435 5,416 6,490 31,341
Public awareness 8,795 4,291 1,679 14,765
Dues and subscriptions 12,594 11,763 16,090 40,447
Insurance 12,556 8,038 4,193 24,787
Postage and printing 11,324 215 10,034 21,573
Other 5,611 10,138 310 16,059
Travel and seminars 10,580 4,618 1,223 16,421
Office supplies 18,579 3,675 5,344 27,598
Depreciation and amortization 2,460 3,055 - 5,515
Utilities 8,997 2,507 3,004 14,508
Web design and maintenance 8,910 - - 8,910
Bad debts - 6,000 - 6,000
Bank fees 2,602 1,659 10,653 14,914
Total Expenses 1,525,548$ 302,737$ 306,753$ 2,135,038$
The accompanying notes are an integral part of these financial statements
7
Jefferson Land Trust and Subsidiaries
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.
8
2023 2022
Cash flows from operating activities:
Cash received from grantors, donors and customers 8,948,453$ 3,420,969$
Cash paid to suppliers and employees (2,139,733) (1,851,446)
Cash paid for interest - (3,525)
Cash received from interest 44,382 24,405
Net cash provided (used) by operating activities 6,853,102 1,590,403
Cash flows from investing activities:
Cash paid for investments (1,275,403) (518,055)
Cash received from investments 593,455 1,894
Proceeds from notes receivable - 41,577
Cash paid for land (6,467,096) (338,686)
Net cash provided (used) by investing activities (7,149,044) (813,270)
Cash flows from financing activities:
Cash paid on line of credit - (83,537)
Cash received from loan 550,000 -
Net cash provided (used) by financing activities 550,000 (83,537)
Net increase (decrease) in cash & cash equivalents 254,058 693,596
Cash & cash equivalents at beginning of year 2,173,070 1,479,474
Cash & cash equivalents at end of year 2,427,128$ 2,173,070$
The accompanying notes are an integral part of these financial statements
Jefferson Land Trust and Subsidiaries
A Washington Not For Profit Organization
Consolidated Statement of Cash Flows
9
For the Years Ended December 31, 2023 and December 31, 2022
2023 2022
Reconciliation of increase (decrease) in net assets to net cash
provided (used) by operating activities:
Increase (decrease) in net assets: 7,027,590$ 2,133,525$
Adjustments:
Depreciation and amortization 5,515 6,753
Bad debts 6,000 24,808
Land hold fee amortization (adjustment) 8,333 8,333
Realized and unrealized losses (gains) on investments (137,109) 98,776
Donated land (184,433) (207,256)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (132,820) (32,952)
(Increase) decrease in pledges receivable 244,642 (480,678)
(Increase) decrease in prepaid expense (14,478) (1,361)
Increase (decrease) in accounts payable 4,284 12,172
Increase (decrease) in accrued expenses and deferred revenue 25,578 28,283
Net cash provided (used) by operating activities 6,853,102$ 1,590,403$
The accompanying notes are an integral part of these financial statements
Jefferson Land Trust and Subsidiaries
A Washington Not For Profit Organization
Consolidated Statement of Cash Flows
For the Years Ended December 31, 2023 and December 31, 2022
10
Jefferson
Land Trust
JLT
Resources,
LLC
Chimacum
Ridge CF, LLC Subtotal Eliminations
Consolidated
2023
Assets
Current Assets:
Cash and cash equivalents $ 2,416,391 $ 10,637 $ 100 $ 2,427,128 $ - $ 2,427,128
Accounts receivable 170,424 - - 170,424 - 170,424
Current pledges receivable 1,139,589 - - 1,139,589 - 1,139,589
Prepaid expense 15,839 - - 15,839 - 15,839
Total Current Assets 3,742,243 10,637 100 3,752,980 - 3,752,980
Land and Conservation Easements:
Habitat land 8,409,108 821,931 - 9,231,039 - 9,231,039
Working land 97,728 - 4,954,945 5,052,673 - 5,052,673
Open space land 332,761 - - 332,761 - 332,761
Conservation easements 69 - - 69 - 69
Total Land and Conservation Easement 8,839,666 821,931 4,954,945 14,616,542 - 14,616,542
Fixed Assets:
Furniture, equipment, and improveme 87,203 10,137 - 97,340 - 97,340
Less: Accumulated depreciation (65,080) (1,531) - (66,611) - (66,611)
Total Fixed Assets 22,123 8,606 - 30,729 - 30,729
Other Assets:
Long term pledges receivable 150,366 - - 150,366 - 150,366
Land hold fee-net - - - - - -
Investments 7,571,312 - - 7,571,312 (5,295,141) 2,276,171
Total Other Assets 7,721,678 - - 7,721,678 (5,295,141) 2,426,537
Total Assets 20,325,710$ 841,174$ 4,955,045$ 26,121,929$ (5,295,141)$ 20,826,788$
Liabilities
Current Liabilities
Accounts payable $ 30,683 $ - $ - $ 30,683 $ - $ 30,683
Accrued liabilities and deferred reven 138,401 - - 138,401 - 138,401
Total Current Liabilities 169,084 - - 169,084 - 169,084
Long Term Liabilities
Note payable - 550,000 - 550,000 - 550,000
Total Liabilities 169,084 550,000 - 719,084 - 719,084
Net Assets
With Donor Restrictions 4,487,632 - - 4,487,632 - 4,487,632
Without Donor Restrictions 15,668,994 291,174 4,955,045 20,915,213 (5,295,141) 15,620,072
Total Net Assets 20,156,626 291,174 4,955,045 25,402,845 (5,295,141) 20,107,704
Liabilities & Net Assets 20,325,710$ 841,174$ 4,955,045$ 26,121,929$ (5,295,141)$ 20,826,788$
The accompanying notes are an integral part of these financial statements.
JEFFERSON LAND TRUST AND SUBSIDIARIES
Consolidating Statement of Financial Position
Year Ended December 31, 2023
11
Jefferson Land Trust
JLT Resources,
LLC
Chimacum Ridge
CF, LLC Subtotal
Eliminations
Consolidated
2023
Support and Revenues
Gifts and contributions $ 3,861,949 $ - $ - $ 3,861,949 $ - $ 3,861,949
Donated land and easements 184,433 - - 184,433 - 184,433
Inkind donations 11,042 - - 11,042 - 11,042
Grants and contracts 4,906,931 - - 4,906,931 - 4,906,931
Special events income, net of
expenses of $37,121 16,782 - - 16,782 - 16,782
Net investment return 181,454 37 - 181,491 - 181,491
Net assets released from restriction - - - - - -
Total Support and Revenues 9,162,591 37 - 9,162,591 - 9,162,628
Program Expenses
Jefferson Land Trust 1,513,398 - - 1,513,398 - 1,513,398
JLT Resources, LLC - 12,150 - 12,150 - 12,150
Chimacum Ridge CF, LLC - - - - - -
Total Program Expenses 1,513,398 12,150 - 1,525,548 - 1,525,548
Management and general 302,737 - - 302,737 - 302,737
Fundraising 306,753 - - 306,753 - 306,753
Total Expenses 2,122,888 12,150 - 2,135,038 - 2,135,038
Change in Net Assets 7,039,703 (12,113) - 7,027,553 - 7,027,590
Capital Transfer - 6,551 4,955,045 4,961,596 (4,961,596) -
Net assets - Beginning of Year 13,116,923 296,736 - 13,413,659 (333,545) 13,080,114
Net assets - End of the Year 20,156,626$ 291,174$ 4,955,045$ 25,402,808$ (5,295,141)$ 20,107,704$
The accompanying notes are an integral part of these financial statements.
JEFFERSON LAND TRUST AND SUBSIDIARIES
Consolidating Statement of Activities
Year Ended December 31, 2023
12
Jefferson
Land Trust
JLT Resources,
LLC
Chimacum Ridge
CF, LLC
Total
Program
Services
Management
& General Fundraising Eliminations
Consolidated
2023
Salaries $ 581,490 $ - $ - $ 581,490 $ 162,041 $ 194,180 $ - $ 937,711
Payroll taxes 48,293 - - 48,293 13,458 16,127 - 77,878
Employee benefits 70,153 - - 70,153 19,549 23,426 - 113,128
Professional fees 405,343 11,003 - 416,346 46,314 14,000 - 476,660
Land and stewardship expenses 286,242 581 - 286,823 - - - 286,823
Rent 19,435 - - 19,435 5,416 6,490 - 31,341
Public awareness 8,795 - - 8,795 4,291 1,679 - 14,765
Dues and subscriptions 12,594 - - 12,594 11,763 16,090 - 40,447
Insurance 12,556 - - 12,556 8,038 4,193 - 24,787
Postage and printing 11,324 - - 11,324 215 10,034 - 21,573
Other 5,552 59 - 5,611 10,138 310 - 16,059
Travel and seminars 10,580 - - 10,580 4,618 1,223 - 16,421
Office supplies 18,579 - - 18,579 3,675 5,344 - 27,598
Depreciation and amortization 1,953 507 - 2,460 3,055 - - 5,515
Utilities 8,997 - - 8,997 2,507 3,004 - 14,508
Web design and maintenance 8,910 - - 8,910 - - - 8,910
Bad debts - - - - 6,000 - - 6,000
Bank fees 2,602 - - 2,602 1,659 10,653 - 14,914
Total Expenses $ 1,513,398 $ 12,150 $ - $ 1,525,548 $ 302,737 $ 306,753 $ - $ 2,135,038
The accompanying notes are an integral part of these financial statements.
JEFFERSON LAND TRUST AND SUBSIDIARIES
Consolidating Statement of Functional Expenses
Year Ended December 31, 2023
13
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
14
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.
On November 13, 2023, Chimacum Ridge Community Forest, LLC was formed with the Land Trust as its only
member. Chimacum Ridge Community Forest, LLC was formed for the purpose of purchasing land and operating
a community forest.
Principles of Consolidation--
These financial statements consolidate the statements of Jefferson Land Trust, JLT Resources, LLC, and
Chimacum Ridge Community Forest, LLC (collectively, “JLT”). Inter-organization balances and transactions
have been eliminated in consolidation.
Basis of accounting--
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.
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
15
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:
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.
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.
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
16
Concentrations--
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, 2023, three donor’s pledges represented approximately 70% of pledges receivable.
At December 31, 2022, four donor’s pledges represented approximately 86% 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 remains 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.
Subsequent Events--
JLT has evaluated subsequent events through July 26, 2024, the date on which the consolidated financial
statements were available to be issued.
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
17
B. LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS:
JLT, although it expects to receive current support to fund operations for 2024 and later years, has $1,062,007 and
$423,001 of financial assets available within one year of the statement of financial position dates on December
31, 2023 and 2022, respectively, to meet cash needs for general operating expenditures. JLT also has $614,039
and $578,659, of board designated assets as of December 31, 2023 and 2022, respectively, that can be reallocated
for general expenditures if needed. Financial assets available within one year consist of the following:
2023 2022
Financial assets at year end $ 6,163,678 $ 5,208,375
Donor restricted to purpose (4,487,632) (4,206,715)
Board designations (614,039) (578,659)
Financial assets available to meet
cash needs within one year $ 1,062,007 $ 423,001
C. NET ASSETS COMPOSITION:
JLT’s net assets with donor restrictions consisted of the following at December 31, 2023 and 2022:
2023 2022
Purpose Restriction:
For stewardship of Bullis Forest Preserve $ 27,483 $ 39,511
Chi-yakh-wh 30,740 35,715
Campaign Readiness Fund/Operations 1,132,364 672,260
Stewardship funding 843,969 836,341
Quimper Wildlife Corridor 264,918 210,353
Other program restrictions 52,111 51,770
2,351,585 1,845,950
Time Restriction:
Outstanding pledges 1,289,955 1,540,797
Permanent Restriction
Endowment Fund 846,092 819,968
Total Net Assets With Donor Restrictions $ 4,487,632 $ 4,206,715
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
18
Net assets without donor restrictions consisted of the following at December 31, 2023 and 2022:
2023 2022
Designated:
Quimper Wildlife Corridor $ 2,115,834 $ 1,576,803
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 34,155
Beaver Valley 662,537 105,986
Brinnon-Wright 130,000 130,000
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
Ruck 601,000 -
Chimacum Ridge 4,955,046 -
Stewardship Fund 401,432 366,053
CP Operations Reserve 27,476 27,476
Karen Mckee Board Fund 13,328 13,328
Operations Reserve 171,804 171,801
Conservation easements 69 69
Total Designated 14,520,704 7,833,694
Undesignated 1,099,368 1,039,705
Total Net Assets Without Donor Restrictions: $ 15,620,072 $ 8,873,399
Net assets of $2,421,209 and $846,509, respectively, were released from donor restrictions by incurring expenses
satisfying the purpose restriction specified by the donor, and net assets of $762 and $13,386, respectively, were
released due to the expiration of time restrictions for the years ended December 31, 2023 and 2022.
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
19
D. LINE OF CREDIT:
JLT entered into a line of credit arrangement with 1st 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 $0 at
December 31, 2023 and 2022, 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 $846,092 and $819,968, respectively, at December 31,
2023 and 2022.
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
20
Changes in endowment net assets for the year ended December 31, 2023 are as follows:
Temporary Permanent
Donor Restrictions Donor Restrictions Total
Endowment Net Assets 1/1/2023 $ - $819,968 $ 819,968
Contributions - 5,500 5,500
Investment Income - 11,019 11,019
Net Appreciation (Depreciation) - 9,605 9,605
Endowment Net Assets 12/31/23 $ - $846,092 $ 846,092
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
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, 2023 or 2022.
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.
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
21
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 2023 and 2022, there were bad debts of $6,000 and
$24,808, respectively. As of December 31, 2023, management estimated that all accounts receivable were
collectible.
JLT had no material amounts past due at December 31, 2023.
G. PLEDGES RECEIVABLE:
JLT received promises to give from a number of donors in 2023 and in years prior to 2023. 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, 2023 are to be
received as follows:
Less than one year $ 1,139,589
Two to five years 159,007
Thereafter -
1,298,596
Less discount to present value (2,441)
Less allowance for uncollectible (6,200)
$ 1,289,955
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.
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
22
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, 2023 and 2022:
2023 2022
Furniture & Equipment, and Software $ 57,351 $ 57,351
Accumulated Depreciation and Amortization -34336 (33,825)
23,015 23,526
Leasehold Improvements 39,989 39,989
Accumulated Depreciation (32,275) (27,261)
7,714 12,728
Fixed Assets-Net $ 30,729 $ 36,254
Accumulated Depreciation and Amortization was $66,611 and $61,086 at December 31, 2023 and 2022,
respectively.
J. ECONOMIC DEPENDENCY:
For 2023 and 2022, 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
$36,959 and $20,580, respectively, for 2023 or 2022.
L. LAND AND CONSERVATION EASEMENTS:
Land and conservation easements at December 31 are summarized as follows:
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
23
2023 2022
Quimper Wildlife Corridor $ 2,250,333 $ 1,711,301
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 662,537 105,985
Moore-JLTR 34,155 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 Corner 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 458,751 458,751
Chimacum Ridge-CRCF 4,954,945 -
Ruck 601,000 -
Conservation easements 69 69
Total Unrestricted Net Assets $ 14,616,542 $ 7,965,013
M. INCOME TAX & UNCERTAIN TAX POSITIONS:
Jefferson Land Trust, JLT Resources, LLC (a disregarded entity), and Chimacum Ridge Community Forest, 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 2020. Currently, there is no examination or pending
examination with the Internal Revenue Service (IRS) or any other state or federal taxing authorities.
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
24
JLT adopted the provisions of FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, on January 1,
2009. As of December 31, 2023, there are no tax positions for which the deductibility is certain but for which
there is uncertainty regarding the timing of such deductibility.
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, 2023.
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.
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
25
The following table sets forth by level, within the fair value hierarchy, JLT’s assets at fair value as of December
31, 2023:
Assets at Fair Value as of December 31, 2023
Level 1 Level 2 Level 3 Total
Mutual funds $ 954,554 $ - $ - $ 954,554
Community Foundation - 409,605 - 409,605
Total Assets at Fair Value: $ 954,554 $ 409,605 $ - $ 1,364,159
Certificates of deposit, held
at cost plus accrued interest 912,012
Total Investments $ 2,276,171
The following table sets forth by level, within the fair value hierarchy, JLT’s assets at fair value as of December
31, 2022:
Assets at Fair Value as of December 31, 2022
Level 1 Level 2 Level 3 Total
Mutual funds $ 873,725 $ - $ - $ 873,725
Community Foundation - 200,083 - 200,083
Total Assets at Fair Value: $ 873,725 $ 200,083 $ - $ 1,073,808
Certificates of deposit, held
at cost plus accrued interest 389,296
Total Investments $ 1,463,104
Investment return for the years ended December 31 consisted of the following:
2023 2022
Interest & dividend income $ 44,382 $ 15,371
Realized/unrealized (loss) gain 137,109 (89,742)
Total $ 181,491 $ (74,371)
Jefferson Land Trust and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2023 and 2022
26
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.
The terms 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 2023 and 2022,
completing the hold fee amortization.
JLT completed the land purchase during 2023.
P. NOTE PAYABLE:
JLT Resources, LLC signed a loan agreement and promissory note on January 11, 2023, with the Washington
State Housing Finance Commission, for a total of $550,000. The loan proceeds were used for a property
acquisition. The loan requires annual interest accrual at 1% simple interest, with payments of principal and
interest deferred until maturity. The note matures on the earlier of January 31, 2031, or when a conservation
easement is sold on the underlying property. Jefferson Land Trust plans to purchase and hold the conservation
easement.
Time Agenda Items Action
Requir
ed Who Material
in Packet
4:00 Confirm all Zoom participants can hear and participate in meeting. Action Brian No
4:05 Welcome & Announcements Info Brian No
4:10 Consent Agenda
• Minutes of the 1/16/24 Board Meeting Action Brian Yes
Consent Agenda Approved
4:15
ED Update
• ED Report (see full report for details)
• QWC TLT still awaiting sig nature from the Governor
• 3 properties in QWC to close in March
• Presentation from Olympic Housing Trust next week on plans for
Chimacum Commons
• Capital Campaign total to date 6 million +; presently at 73% of
goal
• Climate resiliency project with NOLT- improving mapping tools
• Audit to occur first part of March
• Conservation Breakfast March 14, Presentation on the Cougar
Project
Info
Richard
Yes
4:45
CPC Projects
• Pedersen property
The CPC recommends that JLT Board approve the purchase of the
Pedersen property
• Priority ranking for CFF of proposed acquisitions of Humbleberry Farm
and Hubbard properties
The CPC recommends that JLT Board approve the following priority for
CFF request - 1. Humbleberry Farm 2. Hubbard
Action Rick & Sarah Yes
The Board approved the purchase of the Pedersen property
The Board approved the CFF priority of !. Humbleberry, 2. Hubbard
Jefferson Land Trust Board Meeting Minutes
Tuesday, February 20, 2024 (4:00 – 6:00 PM) Zoom Only
Zoom : 943 0298 7630 Passcode: 385702