DNR Annual Report 2018

Page 1

2018 Annual Report


2018 DNR ANNUAL REPORT

Contents

04 31 36 37

FISCAL MANAGEMENT DATA*

TIMBER MANAGEMENT DATA*

BOARDS AND LEADERSHIP

C ONTACT INFORMATION & DNR REGIONS MAP

For copies, or for disabled persons needing this information in an alternate format, contact: DNR Communications and Outreach Mail Stop 47003 Olympia, WA 98504-7003 Email information@dnr.wa.gov Phone 360-902-1000 TRS: 711 This document is available in PDF format at: dnr.wa.gov Cover photo by Ken Bevis/DNR

Hilary S. Franz Commissioner of Public Lands * Fiscal and timber pages account for the revenues DNR generated, collected, and expended during Fiscal Year 2018—July 1, 2017 to June 30, 2018. This report was prepared by the Washington State Department of Natural Resources (DNR). It provides information required by the following statutes: RCW 79.10.010, RCW 79.64.100 and RCW 79.64.030


FISCAL DATA

TIMBER DATA

STATE GR ANT L ANDS 8 Resource Management Cost Account (RMCA) 9 State Grant Lands 10 RMCA Upland 11 General Distribution of Revenue from Upland State Grant Lands 12 Common School, Indemnity and Escheat Grants 13 University Grants Original and Transferred (UW) 14 Charitable, Educational, Penal and Reformatory Institutions Grant (CEP&RI) 15 Capitol Building Grant 16 Normal School Grant (EWU, CWU, WWU and TESC) 17 Scientific School Grant (WSU) 18 Agricultural College Trust Management Account (ACTMA) 19 Agricultural School Grant (WSU) STATE FOREST L ANDS 20 Forest Development Account (FDA) 21 General Distribution of Revenue from State Forest Lands 22 State Forest Lands STATE AQUATIC L ANDS 24 Aquatic Resources and RMCA—Aquatic 25 General Distribution of Revenue from State-Owned Aquatic Lands 26 FISC AL NOTES 30 State Trust Lands Management Fund Accounting Report

◗ These pages account for the revenues DNR generated, collected and expended during Fiscal Year 2018 (July 1, 2017 – June 30, 2018). ◗ Most revenues DNR generated are from activities on upland state trust lands and aquatic lands. Distribution of revenue is governed by statute and varies according to trust and revenue source. ◗ DNR manages 2.1 million acres of forestlands that generate revenue for state trusts, mostly from timber sales. On pages 31 to 34, DNR provides data on timber management activities on forested state trust lands, as required by RCW 79.10.010(3).

◗ Fiscal information is presented as a combination of tables, pie charts, and notes. The notes provide context for the tables. ◗ Underlined bold numbers are totals or subtotals. ◗ Some pages show dollars in thousands. Totals may not add exactly due to rounding. ◗ There is no individual page for the Community College Forest Reserve Trust. (See Fund Activity, page 7). ◗ These pages include data for federally granted trust lands and for legislatively established trust lands, including State Forest Lands (formerly known as Forest Board lands). Trusts are listed individually. ◗ Counties that contain State Forest Lands, but are not listed for an activity, did not have that activity during Fiscal Year 2018.

Management

ABOUT THESE PAGES

Fiscal Data

OVER ALL AGENCY OPER ATIONS 4 Total Revenue 5 Total Expenditures 6 DNR-Administered Funds 7 Funds Administered by Other Entities


FISCAL DATA

2018 D N R A N N UA L R E P O R T 4

TIMBER DATA

Total Revenue | FY 2018 REVENUE BY SOURCE

1

Source

FY 2018

F Y 2017

Total Funds

Total Funds

Sales Timber Sale Removals Timber Sales-Related Activities Forest Road Assessments Nursery Seedling Sales Miscellaneous Leases Agriculture Aquatic Commercial Real Estate Mineral and Hydrocarbon Communication Sites Rights-of-Way Miscellaneous Other Revenue Interest Income Fire Assessments and Cost Reimbursement Grants and Contributions Permits, Fees and Related Charges Miscellaneous Total Revenue from Operations Other Activity Land Transfers 3 Land Bank 4

$196,470

$172,645

55

53

14,021 4,920

14,121 4,128

462 $215,929

423 $191,370

$25,471

$22,783

36,902 10,917 2,925

37,379 9,658 3,148

4,730

4,728

1,230 2,706 $84,880

1,187 2,821 $81,704

$903

$563

29,436 38,769 3,846

17,366 14,574 3,531

9,895 $82,848 $383,657

6,178 $42,214 $315,287

$5,198 1,505 $6,703

$7,972 7,755 $15,727

$390,360

$331,014

Total Revenue Total

Totals may not add due to rounding. Amounts reported in thousands of dollars

Amounts are reported in thousands of dollars. â– About This Page Revenues are shown for two years for comparison. Differences between the years reflect changes in market conditions, legal requirements, availability of resources, and other factors.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 5

TIMBER DATA

Total Expenditures | FY 2018 EXPENDITURES BY PROGRAM2

FY 2018

F Y 2017

Operating Fire Suppression Product Sales & Leasing Resource Protection

$94,597

$52,038

40,434

39,564

■ About This Page

23,638 23,028

Expenditures are shown for two years for comparison. Differences between the years reflect changes in the programs, legal requirements, salaries and benefits, inflation, and other factors.

Land Management

23,798 22,535

Agency Support

20,044

22,191

Forest Practices Engineering Services Aquatic Resources Interagency Payments Asset & Property Management Administration

17,227 14,609

19,341 15,763

14,992

15,550

11,971 7,418 6,171

8,921 7,728 5,865

5,297 1,614 1,380

5,148 2,063 1,536

$282,090

$242,374

$12,180 2,687 1,824

$13,449 6,149 3,334

1,266 840 589

6,718 1,173 5,383

236 69 23 $19,714

637 3,679 2,660 $43,181

$301,804

$285,555

Geology & Earth Resources Agricultural Resources Law Enforcement Services Total Operating Expenditures Capital Real Estate and Property Acquisition Facilities & Roads Puget Sound Corps Forest Health Miscellaneous 2 Recreation & Natural Areas Aquatic Resources Forest Practices Trust Land Transfers Total Capital Expenditures Total Expenditures Total 2

Amounts reported in thousands of dollars. See accompanying notes. Totals may not add due to rounding.

Amounts are reported in thousands of dollars.

DNR’s expenditures reflect the Department’s diverse work. Land management activities, funded by trust land revenue, are investments in the long-term benefits and productivity of the resources. Other activities, funded by non-trust revenue sources, support regulatory, assistance and resource protection programs, as well as agency operations. Capital expenditures include land acquisitions on behalf of state trusts and natural areas.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 6

TIMBER DATA

DNR-Administered Funds – Revenue and Expenditures | FY 2018 Beginning Balance 7/1/17

Revenue

Expenditure

Ending Balance 6/30/18

Trust Management Accounts* Forest Development (FDA)

$4,728

$22,365

$(23,127)

$3,965

Resources Management (RMCA) Total**

23,820

61,716

(53,738)

31,799

9,274 7,311 7,234 360

35,648 7,862 18,206 1,430

(38,653) (991) (14,094) (1,340)

6,269 14,181 11,346 450

$28,909

$85,510

$(78,205)

$36,214

$6,695

$14,387

$(12,765)

$8,317

Aquatic Lands Dredged Material Aquatic Lands Enhancement 7 Clark-McNary

623 N/A (2,036)

14 21,434 2,037

(253) (5,137) 0

384 n/a 1

Community Forest Trust Conservation Areas Stewardship

69 275

22 24

(7) (2)

84 297

8,810 n/a 0

8,539 16 138

(8,862) (841) (138)

8,487 n/a (0)

n/a 11,629 0

415 10,192 13,991

(4,409) (9,656) (10,127)

n/a 12,165 3,864

659

744

(605)

798

12 3,989

6 687

0 (406)

18 4,270

91 n/a n/a 5,919 12 1,313 621 1,003

51 4 32 5,573 1 4,979 1,803 871 $85,960

0 (3,301) (1,778) (46) 0 (4,175) (1,781) (894) $(65,181)

142 n/a n/a 11,447 13 2,117 643 979

$171,471

$(143,386)

Fund Title

■ About This Page

RMCA Uplands Subtotal RMCA Land Bank Subtotal RMCA Aquatics Subtotal Agricultural College (ACTMA) Other DNR-Administered Funds Access Road Revolving

14

Contract Harvesting Revolving Derelict Vessel Removal 8 Federal Lands Revolving Forest and Fish Support 9 Forest Fire Protection Assessment Forest Health Revolving Forest Practice Application Geothermal Landowner Contingency Forest Fire Marine Resources Stewardship ORV and Nonhighway Vehicle 6 Park Land Trust Revolving 10 See Fiscal Notes, pages 54-58. Totals may not add due to rounding. Real Property Replacement 3 Special Forest Products Outreach & Educ. State Forest Nursery Revolving Surface Mining Reclamation Surveys and Maps

Total DNR-Administered Funds 14 See accompanying notes. Totals may not add due to rounding. Amounts reported in thousands of dollars.

Amounts are reported in thousands of dollars.

DNR’s fiscal activity includes generating revenue for a variety of funds and accounts, some of which benefit state trust beneficiaries and some of which fund state programs, including DNR’s own. DNR’s fiscal activity also includes expenditures supporting its work. Some of the accounts that receive revenue from DNR or that fund DNR’s expenditures are managed by DNR; others are managed by other agencies. * These accounts fund DNR’s management of state trust lands. Revenue may be carried over from year to year. As a result, any given year’s expenditures do not necessarily correlate to that year’s revenue.

** The RMCA trust balance includes $7,861,501 dedicated by law (RCW 79.19) to Land Bank purchases of lands that replace previously sold trust lands. See pages 8, 18, 20, and 24 for more detailed accounting. FDA and RMCA are funded through revenue generated from the lands whose management they support. ACTMA is not funded through such revenue, but instead, through a legislative appropriation from the State General Fund. n/a = not applicable


FISCAL DATA

2018 D N R A N N UA L R E P O R T 7

TIMBER DATA

Other Funds – Revenue and Expenditures | FY 2018 Fund Title

Revenue

Expenditure

Net Fiscal Activity

$62,640

$0

$62,640

Community College Forest Reserve

1,009

0

1,009

WSU Bond Retirement

1,566

0

1,566

UW Bond Retirement 19 CEP&RI EWU Capital Projects CWU Capital Projects

3,201 5,280 30 30

0 0 0 0

3,201 5,280 30 30

30

0

30

30 6,238 59,639

0 0 0

30 6,238 59,639

$139,691

$0

$139,691

$4,248 4,130 1,266 6,994

$0 0 0 0

$4,248 4,130 1,266 6,994

342 $16,980

0 $0

342 $16,980

$60,434

$(111,652)

$(51,218)

291 1,675

(441) (19,808)

(151) (18,133)

(1,182)

0

(1,182)

7 33

0 (13,743)

7 (13,710)

6 0 0 356 598 $62,218

(31) (148) (1,620) (7,549) (3,426) $(158,418)

(25) (148) (1,620) (7,193) (2,827) $(96,200)

$218,889 $390,360

$(158,418) $(301,804)

$60,471

Trust Current Funds 13 Common School Construction

WWU Capital Projects TESC Capital Projects Capitol Building Construction Forest Board Counties Trust Permanent Funds 13 Agricultural College (WSU) Normal School (EWU, CWU, WWU, TESC) Common School (K-12) Scientific (WSU) State University (UW) 19 Other Funds General Fund Air Pollution Control Budget Stabilization Cleanup Settlement Account 17 Developmental Disabilities Community Trust Disaster Response Environmental Legacy Stewardship NOVA Program Pension Funding Stabilization State Building Construction State Toxics Control Total Activity - Other Funds 14 Total All Funds and Activities

See accompanying notes. Totals may not add due to rounding. Amounts reported in thousands of dollars.

Amounts are reported in thousands of dollars. Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 26-30. â– About This Page All revenue for the Community College Forest Reserve Trust was generated from leases. DNR expenditures from the fund were to purchase land for the trust.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 8

TIMBER DATA

Resource Management Cost Account (RMCA) | FY 2018 EXPENDITURES

REVENUE

Source Beginning Balance (July 1, 2017)

$23,820,385

RMCA Revenue Uplands Aquatics

43,509,913 18,206,007

Total revenue

61,715,920

Less Expenditures 2 Agricultural Resources Asset & Property Management Product Sales & Leasing Land Management Law Enforcement

1,592,065 1,435,831 12,518,878 10,856,233 731,507

Correctional Camps Administration Interagency Payments Agency Support

363,613 1,933,723 4,701,116 6,548,625

Aquatic Resources

9,756,849

Engineering Services Total Operating Expenditures Total Capital Expenditures Total Expenditures RMCA Fund Balance (June 30, 2018)*

Totals may not add due to rounding.

■About This Page The Resource Management Cost Account (RMCA) funds DNR’s Land Management activities on state grant lands. DNR deposits a portion of the revenue it generates from these lands into the account, and the legislature appropriates funds from the account to DNR for expenditures. The RMCA can be used only for land management expenses (e.g., reforestation, preparing timber sales, or managing aquatic leases) that support federally granted state lands. * RMCA fund balance includes $7,861,501 in upland trust reserved for Land Bank sell-first purchases. See page 10 for details.

2,308,316 52,746,756 991,000 53,737,756 $31,798,547


FISCAL DATA

2018 D N R A N N UA L R E P O R T 9

TIMBER DATA

State Grant Lands | FY 2018 REVENUE

DISTRIBUTION

Grand Total All Funds

Trust Current Funds 13

Trust Permanent Funds 13

Resource Management Cost Account 15

$91,694,037

$45,780,110

$18,988,963

$26,924,963

26,966 0 1,505,193

14,385 0 0

3,071 0 0

9,510 0 1,505,193

$93,226,196

$45,794,495

$18,992,035

$28,439,666

Leases Agriculture Dryland

$5,502,865

$3,349,299

$487,511

$1,666,055

Irrigated

18,867,609

12,739,257

297,667

5,830,685

1,022,009 36,902,710 2,151,231 10,911,494 2,948,778 977,160 3,016,412

667,175 20,017,889 1,409,424 7,453,843 1,297,484 437,676 1,665,311

43,109 0 76,339 76,748 588,941 185,979 444,323

311,725 16,884,820 665,468 3,380,904 1,062,353 353,505 906,778

203,425 $82,503,692

116,062 $49,153,421

24,797 $2,225,414

62,566 $31,124,858

$588,976 2,257,035

$171,646 594,741

$8,905 0

$408,425 1,662,294

(98,546) 696,800 $3,444,266

4,755,991 7,842 $5,530,222

(4,755,991) 509,735 $(4,237,352)

(98,546) 179,223 $2,151,396

$179,174,154

$100,478,137

$16,980,097

$61,715,920

Source Sales Timber Sales 11, 15, 19 Timber Sales-Related Activities 1 Trust Land Transfer Program Land Sales (Includes Land Bank) 4

Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer 1, 12 Permits, Fees, and Miscellaneous 1

Total Revenue

Totals may not add due to rounding.

â– About This Page State grant lands (upland and aquatic) were granted to Washington at statehood by the federal government. Each upland parcel is assigned to a specific state trust dedicated to financially supporting a specific beneficiary (e.g., the Common School Trust supports construction of K-12 schools). The aquatic lands are designated as a public trust to benefit the public as a whole. Income from state grant lands is divided among trust beneficiary accounts and the RMCA, which DNR uses to manage the lands.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 10

TIMBER DATA

Resource Management Cost Account (RMCA) Upland | FY 2018 Source

Granted Trusts

Land Bank

Total Uplands

Beginning Trust Balance (July 1, 2017) Upland Revenue

$9,275,283

$7,311,071

$16,586,354

Operating Revenue Total Upland Revenue

35,648,412 35,648,412

7,861,501 7,861,501

43,509,913 43,509,913

Less: Expenditures 2 Agricultural Resources

1,592,065

0

1,592,065

1,435,831 12,518,878 10,856,233 731,507 363,613

0 0 0 0 0

1,435,831 12,518,878 10,856,233 731,507 363,613

Administration

1,353,606

0

1,353,606

Interagency Payments Agency Support

3,114,290 4,378,898

0 0

3,114,290 4,378,898

Engineering Services

2,308,316

0

2,308,316

38,653,237

0

38,653,237

0

991,000

991,000

38,653,237

991,000

39,644,237

$6,270,458

$14,181,572

$20,452,030

Asset & Property Management Product Sales & Leasing Land Management Law Enforcement Correctional Camps

Total Operating Expenditures Total Capital Expenditures Total Expenditures Ending Trust Balance (June 30, 2018)

Totals may not add due to rounding.

About Next Page Generally, by law, each beneficiary of the granted land trusts receives 70 percent of the revenue earned from its lands, and the remaining 30 percent goes to the RMCA to fund DNR’s management of the lands. This chart shows the combined distribution in Fiscal Year 2018, with each trust beneficiary’s share proportional to its share of the total revenue earned, and with the RMCA share divided among DNR’s expenditures from the account for upland management activities. Expenditures are appropriated by the legislature and are ongoing investments to keep the lands productive and to generate future income for the trusts. * This chart is based on statewide averages. Detailed breakdown of DNR programs contain examples only, not a complete listing. This chart does not include revenue from the Agricultural School trust lands because 100 percent of revenue from those lands is distributed to the trust. ** Per Board of Natural Resources Resolution #1472, the management fund deduction of revenues from granted lands was established at 31 percent, effective 8/18/15.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 11

TIMBER DATA

General Distribution of Revenue from Upland State Grant Lands* | FY 2018 Learn more about general distribution of revenue from Upland State Grant Lands on page 10.

8.5% Land Management ❙ Reforestation, Pre-commercial Thinning, Fertilization, and Vegetation Mgmt. ❙ Genetic Improvement of Seedlings ❙ Forest Nursery ❙ Scientific Support ❙ Data Stewardship ❙ Landscape Planning

N SCHOOLS 4 8.4 % O C EFICIAR BEN IES T S 6 U DISTRIBUTED TO TRUST BENEFICIARIES 69%

D 3 1%

TO

9%

TR

O MM

U

PL

AN

RESOURCE MANAGEMENT COST ACCOUNT (RMCA) UPLAND 31%**

4.0% Institutions and Prisons

RM

CA

1.8% Engineering Services ❙ Resource Mapping

6.0% WA State University (Scientific Trust only)

4.7% Capitol Buildings

1.1% Administration ❙ Policy Analysis ❙ Executive Management ❙ Internal Audit ❙ Communications ❙ Budget and Economic Services ❙ Legal Affairs 0.8% Capital Investments ❙ Land Bank

*** Expenditures from Land Bank.

9.8% Product Sales & Leasing ❙ Presales Activities ❙ Oil, Gas, and Commercial Site Leasing ❙ Rock and Gravel Sales Assessments ❙ Right-of-Way Granting and Acquisition ❙ Contract Administration ❙ Leasing 0.3% Special Employment ❙ Correction Camps Program

2.7% Univ. of Washington

3.2% Normal Schools (WWU, EWU, CWU, and TESC)

1.1% Asset & Property Management ❙ Asset Planning ❙ Land Transactions ❙ Public Use ❙ Recreation ❙ Washington Conservation Corps (WCC) ❙ Natural Areas ❙ Natural Heritage

3.4% Agency Support ❙ Finance ❙ Personnel and Equipment ❙ Data Systems Management and Support ❙ Geographic Information Systems ❙ Region Administration ❙ Facilities ❙ Environmental Analysis

1.2% Agricultural Resources ❙ Agricultural and Grazing Leases ❙ Weed Management ❙ Permits 2.4% Interagency Payments 0.6% Law Enforcement ❙ Investigative Services


FISCAL DATA

2018 D N R A N N UA L R E P O R T 12

TIMBER DATA

Common School, Indemnity and Escheat Grants | FY 2018 REVENUE

DISTRIBUTION

Total Funds

Common School Construction

Common School Permanent

Resource Management Cost Account 15

Timber Sales 11, 15

$51,893,333

$35,832,053

$0

$16,061,280

Timber Sales-Related Activities 1 Trust Land Transfer Program Land Sales (Includes Land Bank) 4

15,578 0 1,505,193 $53,414,104

10,213 0 0 $35,842,266

(0) 0 0 $(0)

5,365 0 1,505,193 $17,571,838

$4,264,362 18,389,234

$2,942,404 12,693,604

$0 0

$1,321,958 5,695,631

933,424

644,035

0

289,388

0 1,986,893

0 1,370,956

0 0

0 615,937

10,782,098 845,646 308,122

7,439,648 4,773 42,619

0 586,693 170,013

3,342,450 254,180 95,489

2,178,904 116,910 $39,805,593

1,484,061 80,667 $26,702,767

0 0 $756,707

694,843 36,243 $12,346,119

$199,370 835,711 (46,079) 633,266 $1,622,268

$92,233 0 0 2,519 $94,752

$343 0 0 509,124 $509,467

$106,794 835,711 (46,079) 121,623 $1,018,049

$94,841,965

$62,639,784

$1,266,174

$30,936,006

Source Sales

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral And Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer 1, 15 Permits, Fees, and Miscellaneous 1

Totals

Totals may not add due to rounding.

■About This Page Income from these state grant lands and escheat lands (those with no known heirs) supports construction of state public kindergarten through 12th grade schools. The beneficiary’s share of income is distributed to the Common School Construction Account and the Common School Permanent Account, which generates perpetual interest for the support of school construction. This distribution varies by activity and is governed by law.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 13

TIMBER DATA

University Grants Original and Transferred (UW) | FY 2018 REVENUE

Source 19 Sales Timber Sales Timber Sales-Related Activities 1, 17 Land Sales (Includes Land Bank)

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer 1, 12, 19 Permits, Fees, and Miscellaneous 1

Total Revenue

Totals may not add due to rounding.

DISTRIBUTION

Total Funds

UW Retirement Bond

State (UW) University Permanent

Resource Management Cost Account 15

$4,711,440 (1)

$0 0

$3,283,209 (0)

$1,428,230 (0)

0 $4,711,439

0 $0

0 $3,283,209

0 $1,428,230

$210,450 0 32,927

$0 0 0

$145,211 0 22,719

$65,240 0 10,207

0

0

0

0

6,383 103,472 0 3,753

0 0 0 0

4,404 71,396 0 2,589

1,979 32,076 0 1,163

0 15,236 $372,221

0 0 $0

0 10,513 $256,832

0 4,723 $115,388

$24,170 43,591 21,295 438 $89,494

$2,997 0 3,198,041 0 $3,201,037

$126 0 (3,198,041) 0 $(3,197,915)

$21,047 43,591 21,295 438 $86,371

$5,173,154

$3,201,037

$342,127

$1,629,990

■About This Page Income from these state grant lands supports construction of buildings for the University of Washington. Some of these lands were acquired at the time of statehood, and some lands were transferred to this trust from the CEP&RI trust by the legislature in 1893. The beneficiary’s share of income is distributed to the University Permanent and UW Bond Retirement accounts. This distribution varies by activity and is governed by law.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 14

TIMBER DATA

Charitable, Educational, Penal and Reformatory Institutions Grant (CEP&RI) | FY 2018 REVENUE

Source Sales Timber Sales Timber Sales-Related Activities 1 Land Sales (Includes Land Bank)

DISTRIBUTION

Total Funds

CEP & RI Account

Resource Management Cost Account 15

$5,674,768

$3,915,590

$1,759,178

289 0 $5,675,056

198 0 $3,915,788

91 0 $1,759,269

Leases Agriculture Dryland

$453,439

$312,873

$140,566

Irrigated Grazing and Other Aquatic Lands

3,434 17,196 0

2,369 11,866 0

1,064 5,331 0

Special Use Commercial Real Estate

7,103 11,150

4,901 7,694

2,202 3,456

1,265,474 2,532 172,113

873,177 1,747 118,525

392,297 785 53,588

36,811 $1,969,253

25,400 $1,358,551

11,411 $610,702

$37,848 66,079 0 2,620 $106,547

$5,640 0 0 0 $5,640

$32,208 66,079 0 2,620 $100,907

$7,750,856

$5,279,979

$2,470,877

Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer Permits, Fees, and Miscellaneous 1

Total Revenue

Totals may not add due to rounding.

■About This Page Income from these state grant lands is used to establish and maintain institutions managed by the Department of Corrections (such as prisons) and the Department of Social and Health Services (such as the Western State Hospital). The beneficiary’s share of income is distributed to the CEP&RI Account.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 15

TIMBER DATA

Capitol Building Grant | FY 2018 REVENUE

Source Sales Timber Sales Timber Sales-Related Activities 1 Land Sales (Includes Land Bank)

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue Operating Transfer 1, 15 Permits, Fees, and Miscellaneous 1 16

Total Revenue

Totals may not add due to rounding.

DISTRIBUTION

Total Funds

Capitol Building Construction

Resource Management Cost Account 15

$8,728,565

$6,032,467

$2,696,098

7,440 0 $8,736,005

3,974 0 $6,036,441

3,466 0 $2,699,564

$70,450 0 4,978

$48,610 0 3,435

$21,839 0 1,543

0

0

0

22,784

15,721

7,063

9,422 9,022 60,687 90,906 11,525 $279,775

6,501 6,225 41,874 62,725 7,949 $193,041

2,921 2,797 18,813 28,181 3,576 $86,733

$48,262

$8,313

$39,949

77,219 (17,569) 194 $108,106

0 0 0 $8,313

77,219 (17,569) 194 $99,793

$9,123,886

$6,237,796

$2,886,090

■About This Page Income from these state grant lands supports construction of state government office buildings at the Capitol Campus in Olympia. The beneficiary’s share of income is distributed to the Capitol Building Construction Account.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 16

TIMBER DATA

Normal School Grant (EWU, CWU, WWU and TESC) | FY 2018 REVENUE

Source Sales Timber Sales 11, 15

DISTRIBUTION

Total Funds

EWU, CWU, WWU, TESC Capital Projects

Normal School Permanent

Resource Management Cost Account 15

$5,941,538

$0

$4,131,187

$1,810,351

Timber Sales-Related Activities 1

1,198

0

703

495

Land Sales (Includes Land Bank)

0 $5,942,736

0 $0

0 $4,131,890

0 $1,810,846

$65,496 62,731 11,361 0

$45,412 43,284 7,839 0

$0 0 0 0

$20,084 19,447 3,522 0

25,863

17,845

0

8,017

0 0

0 0

0 0

0 0

(3,072) 0 2,966 $165,345

0 0 2,047 $116,428

(2,120) 0 0 (2,120)

(952) 0 919 $51,037

$26,177 50,299

$2,610 0

$0 0

$23,568 50,299

(56,193) 573 $20,856

0 0 $2,610

0 0 $0

(56,193) 573 $18,246

$6,128,937

$119,037

$4,129,770

$1,880,129

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way 17 Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue 16 Operating Transfer 1, 15 Permits, Fees, and Miscellaneous 1

Total Revenue

Totals may not add due to rounding.

■ About This Page Income from these state grant lands supports construction at Eastern Washington University, Central Washington University, and Western Washington University (regional universities). These three universities were originally called ‘normal schools.’ The Evergreen State College (TESC) was added to this trust by the legislature to begin receiving revenue after July 1, 1995. The beneficiary’s share of income is distributed to the Normal School Permanent Account and capital project accounts for each university. This distribution varies by activity and is governed by law.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 17

TIMBER DATA

Scientific School Grant (WSU) | FY 2018 REVENUE

DISTRIBUTION

Scientific Permanent

Resource Management Cost Account 15

Source

Total Funds

WSU Bond Retirement

Sales Timber Sales

$10,225,247

$0

$7,055,420

$3,169,827

301 0 $10,225,548

0 0 $0

208 0 $7,055,628

93 0 $3,169,920

$310,864 369,495 5,589

$0 0 0

$214,496 254,951 3,857

$96,368 114,543 1,733

0

0

0

0

97,644

0

67,375

30,270

0 0 24,705 419,891 18,363 $1,246,550

0 0 0 0 0 $0

0 0 17,046 289,724 12,670 $860,120

0 0 7,659 130,166 5,693 $386,431

$60,666

$5,444

$6,548

$48,674

99,186 0 2,609 $162,461

0 928,702 0 $934,146

0 (928,702) 0 $(922,154)

99,186 0 2,609 $150,469

$11,634,560

$934,146

$6,993,593

$3,706,820

Timber Sales-Related Activities 1 Land Sales (Includes Land Bank)

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue Operating Transfer 12 Permits, Fees, and Miscellaneous 1 16

Total Revenue

Totals may not add due to rounding.

■About This Page Income from these state grant lands supports construction of buildings at Washington State University. The beneficiary’s share of income is distributed to the Scientific School Permanent and the WSU Bond Retirement accounts. This distribution varies by activity and is governed by law.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 18

TIMBER DATA

Agricultural College Trust Management Account (ACTMA) | FY 2018 EXPENDITURES

REVENUE

Source Beginning Fund Balance (July 1, 2017)

$360,426

Revenue Operating Revenue * Interfund Transfer from General Fund 5

9,600 1,420,000

Total Revenue

1,429,600

Less Expenditures 2 Agricultural Resources Asset & Property Management Product Sales & Leasing Land Management Law Enforcement Correctional Camps Administration Interagency Payments Agency Support Engineering Services Total Operating Expenditures Total Capital Expenditures Total Expenditures and Other Charges

ACTMA Fund Balance (June 30, 2018)

*Includes treasurer’s interest. See accompanying notes. Totals may not add due to rounding.

21,695 32,929 433,999 432,661

■ About This Page This account funds DNR’s management of the Agricultural College trust lands. The ACTMA is funded through an appropriation from the state General Fund. (As of July 1, 1999, Agricultural College trust lands do not contribute to the RMCA, which supports DNR’s management of other state grant lands.) *Includes treasurer’s interest. See accompanying notes on pages 6-10.

19,250 28,090 50,821 90,766 170,758 59,242 1,340,211 0 1,340,211

$449,815


FISCAL DATA

2018 D N R A N N UA L R E P O R T 19

TIMBER DATA

Agricultural School Grant (WSU) | FY 2018 REVENUE

Source Sales Timber Sales

DISTRIBUTION

Total Funds

WSU Bond Retirement

Agricultural College Permanent

$4,519,146

$0

$4,519,146

Timber Sales-Related Activities 1

2,161

0

2,161

Asset Transfer/Loan Repayment Land Sales (Includes Land Bank)

0 0 $4,521,308

0 0 $0

0 0 $4,521,308

$127,805 42,716 16,533

$0 0 0

$127,805 42,716 16,533

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate Mineral and Hydrocarbon Rights-Of-Way 17 Communication Sites Special Forest Products

Other Revenue Interest Income Non-Trust Revenue Operating Transfer 12 Permits, Fees, and Miscellaneous

Total Revenue

Totals may not add due to rounding.

0

0

0

4,560 5,352

0 0

4,560 5,352

2,248 (1,550) 154,598 1,614 $353,875

0 0 0 0 $0

2,248 (1,550) 154,598 1,614 $353,875

$4,692

$2,805

$1,888

0 0 611

0 629,249 0

0 (629,249) 611

$5,303

$632,053

$(626,750)

$4,880,486

$632,053

$4,248,433

■About This Page Income from these state grant lands supports construction of Washington State University’s buildings. All revenue from these lands is income for the trust and is divided between the Agricultural College Permanent Account and the WSU Bond Retirement Account. This distribution varies by activity and is governed by law.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 2 0

TIMBER DATA

Forest Development Account (FDA) | FY 2018 EXPENDITURES

REVENUE

Source Fund Balance (July 1, 2017)

$4,727,785

Revenue Operating Revenue

22,364,893

Total Revenue

22,364,893

Less Expenditures 2 Agricultural Resources Asset & Property Management Product Sales & Leasing Land Management Law Enforcement Correctional Camps

112 315,866 8,405,928 7,155,599 211,752 354,403

Administration Interagency Payments

910,176 1,581,310

Agency Support Engineering Services Total Operating Expenditures Capital Expenditures Total Expenditures and Other Charges

FDA Fund Balance (June 30, 2018)

See accompanying notes. Totals may not add due to rounding.

About Next Page By law, revenue from State Forest Lands (formerly known as Forest Board Lands) goes to the county in which the land is located, the state general fund for the support of Common Schools, and to the FDA to fund DNR’s management of the lands. Distribution differs for Transfer lands and Purchase lands—see the small pie charts. The large pie chart shows the combined total distribution for Fiscal Year 2018, with the FDA share divided among DNR’s expenditures from the account. Expenditures are appropriated by the legislature and are ongoing investments to keep the lands productive and to generate future revenue.

3,170,321 1,021,795 23,127,262 0 23,127,262

* This chart is based on statewide averages. Detailed breakdown of DNR programs contains examples only, not a complete listing.

$3,965,416

** Per Board of Natural Resources Resolution No.1408, the management fund deduction for FDA was increased to 25% effective 7/2/13. Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 26-30. Purchase lands, see definition on page 22. Transfer lands, see definition on page 23.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 21

TIMBER DATA

General Distribution of Revenue from State Forest Lands* | FY 2018 PURCHASE LANDS 80,217 acres FU

ND

FD

0.2% Law Enforcement ❙ Investigative Services

A 50 %

GE

N.

State General Fund 23.5%

C

1.2% Engineering Services ❙ Resource Mapping

%

N

TI

ES

Counties 26.5%

NTIES 7 1 OU COUNTIES 71%

CO

FOREST DEVELOPMENT ACCOUNT (FDA) 26.6%

A

FD

CO

%

A portion goes to the State General Fund Counties also redistribute revenue to junior taxing districts, bond retirement, road funds, and other obligations. These vary by county. Learn more about general distribution of revenue from State Forest Lands on page 22.

% 26

FD

UNTIES

%

25

75

DIRECT CONTRIBUTION STATE GENERAL FUND 3.0%

.6

U

TRANSFER LANDS ** 537,797 acres

1.0% Administration ❙ Policy Analysis ❙ Executive Management ❙ Internal Audit ❙ Communications ❙ Budget and Economic Services ❙ Legal Affairs

8.2% Land Management ❙ Reforestation, Pre-commercial Thinning, Fertilization, and Vegetation Mgmt. ❙ Genetic Improvement of Seedlings ❙ Forest Nursery ❙ Scientific Support ❙ Data Stewardship ❙ Landscape Planning

A

1.8% Interagency Payments

3.6% Agency Support 0.4% ❙ Finance Special ❙ Personnel and Employment Equipment ❙ Correctional ❙ Data Systems Camp ❙ Management Program and Support ❙ Geographic 0.4% Information Asset and Systems Property 9.7% ❙ Facilities Management Product Sales ❙ Region ❙ Asset Planning & Leasing Administration ❙ Land ❙ Presales Activities ❙ Environmental Transactions ❙ Oil, Gas, and Analysis ❙ Public Use Commercial ❙ Recreation Site Leasing ❙ Washington ❙ Rock and Gravel Conservation Sales Assessments Corps (WCC) ❙ Right-of-Way ❙ Natural Areas Granting ❙ Natural Heritage and Acquisition ❙ Leasing ❙ Contract Administration


FISCAL DATA

2018 D N R A N N UA L R E P O R T 2 2

TIMBER DATA

State Forest Lands | FY 2018 REVENUE

CONTRIBUTING LANDS

Source

Total Funds

Transfer Lands

Purchase Lands

Sales Timber Sales Timber Sales-Related Activities 1

$81,023,678 28,108

$74,601,681 27,864

$6,421,997 244

$81,051,787

$74,629,546

$6,422,241

$320,498 43,876 (23,835)

$268,621 23,231 (23,835)

$51,877 20,645 0

Leases Agriculture/Minor Forest Products Commercial/Special Use Mineral and Hydrocarbon 16, 17 Rights-Of-Way Communication Sites

Other Revenue Interest Income 1 Permits, Fees, and Miscellaneous 1 Treasurer’s Revenue FDA Non-Trust Revenue 16 18

Totals

n/a—not applicable. Totals may not add due to rounding.

242,331

237,108

5,222

1,698,672 $2,281,540

1,317,210 $1,822,335

381,462 $459,206

$55,121

$53,349

$1,772

0

0

0

54,751 591,350 $701,222

n/a n/a $53,349

n/a n/a $1,772

$84,034,549

$76,505,229

$6,883,219

■ About This Page and Next Page Income from these lands is distributed to the counties in which the lands are located, the state general fund for the support of common schools, and the Forest Development Account (FDA) for DNR’s Land Management expenses on these lands. There are two categories of State Forest Lands (formerly known as Forest Board Lands): Purchase lands and Transfer lands. Purchase lands were given to the state or purchased by the state at low cost. The FDA receives half the income from these lands. The other half is divided between the respective county and the state general fund for the support of common schools. n/a: Not applicable.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 2 3

TIMBER DATA

State Forest Lands | FY 2018 REVENUE

Recipient County Clallam

Total Funds

CONTINUED CONTRIBUTING LANDS

Transfer Lands

Purchase Lands

$5,879,803

$5,879,352

$451

3,231,922

3,187,245

44,677

1,681,687 1,019,581

1,678,608 44,124

3,079 975,457

Jefferson King

898,097 1,924,183

898,097 1,924,183

0 0

Kitsap Klickitat

1,446,576 25,772

1,427,639 25,585

18,936 188

Lewis Mason Okanogan

5,075,394 5,826,206 41

5,046,802 5,825,507 41

28,592 699 0

Pacific

2,019,946

1,505,648

514,298

1,014,082 14,668,560 1,544,350 4,880,489 96,564

881,263 14,668,560 1,538,736 4,880,489 96,564

132,819 0 5,615 0 0

2,626,739 1,991,784 3,732,123

2,190,401 1,991,784 3,714,680

436,338 0 17,443

54,751 $59,638,651

n/a $57,405,309

n/a $2,178,591

General Fund - State

$21,759,265 14,277 0 591,350 $22,364,893 $2,031,005

$19,086,571 13,349 n/a n/a $19,099,920 $0

$2,672,694 928 n/a n/a $2,673,623 $2,031,005

Total Revenue

$84,034,548

$76,505,229

$6,883,219

Clark 16 Cowlitz Grays Harbor

Pierce Skagit Skamania Snohomish Stevens Thurston Wahkiakum Whatcom Treasurer's Revenue 18 Forest Development Account Trust Activity Permits, Fees, & Miscellaneous 1 Treasurer's Revenue FDA Non-Trust Revenue 16

n/a—not applicable. Totals may not add due to rounding.

Transfer lands were forfeited to the counties in which they were located when the private landowners failed to pay property taxes, primarily in the 1920s and 1930s. The counties turned the lands over to the state. DNR now manages these lands and distributes at least 75 percent of the income to the counties and up to 25 percent of the income to the Forest Development Account (FDA). n/a: not applicable.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 2 4

TIMBER DATA

Aquatic Resources | FY 2018 REVENUE

DISTRIBUTION

Source

Total Funds

Aquatic Lands Enhancement

Aquatic Resources Activities Leases

Resource Management Cost Account 15

$36,902,710

$20,017,889

$16,884,820

Mineral and Hydrocarbon

826,387

413,309

413,079

Rights-Of-Way Interest Income 1

581,984 187,791

351,436 51,606

230,548 136,186

1,084,951 56,488

594,741 5,324

490,210 51,165

$39,640,312

$21,434,304

$18,206,007

Non-Trust Revenue 16 Miscellaneous 1 Total Revenue Totals may not add due to rounding.

RMCA | AQUATIC EXPENDITURES

REVENUE

Source Trust Balance (July 1, 2017)

$7,234,031

RMCA Aquatic Revenue Less Expenditures 2

18,206,007

Aquatic Resources Administration Interagency Payments Agency Support Total Operating Expenditures Total Capital Expenditures Total Expenditures Trust Balance (June 30, 2018)

See accompanying notes. Totals may not add due to rounding.

About Next Page By law, revenue from state-owned aquatic lands goes to the Aquatic Lands Enhancement Account (ALEA) for aquatic resource enhancement and to the RMCA to fund DNR’s management of state aquatic lands. Distribution differs for different types of aquatic land — see the small pie charts. The large pie chart shows the combined total distribution, with the ALEA share divided among state agency expenditures from that account, and the RMCA share divided among DNR’s expenditures from the RMCA. Expenditures are appropriated by the legislature and are ongoing investments to keep the submerged lands productive. * This chart is based on statewide averages. Detailed breakdown of DNR programs contains examples only, not a complete listing. ** The ALEA portion of revenue from harbor areas in fourth-class towns is redistributed to those towns twice each year. See fiscal note #7, page 26.

9,756,849 580,117 1,586,826

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 26-30.

2,169,728 14,093,520 0 14,093,520 $11,346,518


FISCAL DATA

2018 D N R A N N UA L R E P O R T 2 5

TIMBER DATA

General Distribution of Revenue from State-Owned Aquatic Lands* | FY 2018

0.8% Department of Health 7.8% Recreation and Conservation Funding Board 1.3% University of Washington

EA

AL

7

5 ALEA

ALEA

C %

4.3% Department of Agriculture

AQUATIC LANDS ENHANCEMENT ACCOUNT (ALEA) 54.1% RESOURCE MANAGEMENT COST ACCOUNT (RMCA) AQUATIC 45.9%

RM

25

0.6% State Parks and Recreation Commission

CA

. 9%

1.9% Puget Sound Partnership

RM

5%

Learn more about general distribution of revenue from state-owned aquatic lands on page 24.

31.8% Aquatic Resources ❙ Nearshore Habitat ❙ Geoducks ❙ Port Management ❙ Contaminated Sediments ❙ Operations, Administration, and Policy Development

45

20% Department of Natural Resources

1% 4.

RM

0%

5 0%

%

5 17.3% Department of Fish and Wildlife

C

HARBOR AREAS ** Effective 2/6/06

A

7

RM

CA

5%

25

5 0%

ALEA

RM

SECOND CLASS TIDELANDS & SHORELANDS

ALEA

FIRST CLASS TIDELANDS & SHORELANDS

A

0%

CA

5

BEDS OF NAVIGABLE WATERS

1.9% Administration ❙ Policy Analysis ❙ Executive Management ❙ Internal Audit ❙ Communications ❙ Budget and Economic Services 5.2% Interagency Payments 7.1% Agency Support ❙ Finance ❙ Personnel and Equipment ❙ Data Systems ❙ Management and Support ❙ Geographic Information Systems ❙ Facilities ❙ Region Administration


2018 D N R A N N UA L R E P O R T 2 6

Fiscal Notes These numbered notes provide context and explanations for data in the tables on the fiscal pages that follow, where they are referred to by numerical superscript. A note may apply to more than one page. Although similar to notes in prior reports, these notes apply only to this report (FY 2018). AC R O N Y M S ACTMA Agricultural College Trust Management Account AFRS Agency Financial Reporting System ALEA Aquatic Lands Enhancement Account CEP&RI Charitable, Educational, Penal, and Reformatory Institutions Trust COLA Cost of Living Adjustment CWU Central Washington University EWU Eastern Washington University FDA Forest Development Account FY18 Fiscal Year 2018 (July 1, 2017 – June 30, 2018) K-12 Kindergarten to 12th grade schools RMCA Resource Management Cost Account TESC The Evergreen State College UW University of Washington WSU Washington State University WWU Western Washington University

1 | REVENUE SOURCES

For reporting purposes, DNR follows the modified accrual basis of accounting per Generally Accepted Accounting Principles (GAAP). Under this measurement focus, revenues are recognized and recorded when they become both measurable and available, i.e., when invoiced. Timber sales include removals from Contract Harvesting Revolving Account and Forest Health Revolving Account sales. For Contract Harvesting Account sales, allocation to the trusts happens at the time of distribution, generally at the end of the sale. Timber sale-related activities include contract extensions, slash disposal, trespasses, and default settlement payments. Miscellaneous sales include publications, GIS data, honor camp activities, surveys, and maps. Miscellaneous leases include special use and special forest products. Interest income includes interest on contracts, interest assessed for late payments, and interest earned from account (treasurer’s interest). Permits, fees and related charges include surface mining permits, log patrol licenses, aquatic lands dredged material disposal site fees, forest practices damage assessments and permits, survey records recording fees, application/assignment fees, burning permit fees, and local government assessments. Operating transfers include transfers attributed to prior period revenue. Miscellaneous other revenue includes prior period adjustments, recoveries of prior biennium expenditures, miscellaneous treasurer transfers, as well as revenue from the ORV & Nonhighway Vehicle and Natural Resources Conservation Areas Stewardship accounts. 2 | EXPENDITURE CATEGORIES

Administration includes Executive Management & Operations, Internal Audit, Communications & Outreach, Policy & Governmental Operations, Budget & Economics, Legal Compliance and Environmental Review. Interagency payments are payments made to other state agencies (the Attorney General, State Auditor, Financial Management, Enterprise Services, Secretary of State, etc.) and various telecommunication vendors for services they provide to the department. Agency support includes the following programs: Human Resources (personnel, safety and training), Financial Management (accounting, payroll, risk

management and purchasing), Information Management (IT), Geographic Information Systems, Facilities, Region Administration and Environmental Analysis. Miscellaneous capital projects for Fiscal Year 2018 include Firewise Grants and Fire Communications Base Stations and Mountain Top Repeaters. Total Expenditures of $301,804,064 for Fiscal Year 2018 excludes the interfund transfer from General Fund to the Agricultural College Trust Management Account in the amount of $1,420,000 (see footnote #5). 3 | LAND TRANSFERS

Real Property Replacement: During Fiscal Year 2018 a total of $5,197,690, an amount equivalent to the property value, was received from (1) transfers to other government entities, (2) resolution of trespass violations, or (3) transfers in lieu of condemnation. This money is used to acquire replacement trust lands. 4 | LAND BANK

DNR uses the Land Bank program (RCW 79.19) to reposition trust land assets for better future income production. Through the Land Bank, state trust lands are first auctioned to private buyers. Proceeds of land sales made under this “sell first” process are held in the Resource Management Cost Account (RMCA) until they can be used to purchase replacement trust lands. This revenue from trust property sales should equal or exceed the cost of trust property purchases. However, during any one fiscal year the transactions may not balance (e.g., a property has been sold, but property to replace it has not yet been purchased). Land bank transactions are accounted for by trust within each of DNR’s management funds. Revenue from Fiscal Year 2018 sales, existing contracts and interest was $1,505,193 to the RMCA. A total of $7,861,501 in the RMCA’s fund balance is reserved to acquire property to replace trust property previously sold through the “sell first” process of the Land Bank program. 5 | AGRICULTURAL COLLEGE TRUST MANAGEMENT ACCOUNT

Per RCW 79.64.090 the revenue on Agricultural College trust lands is distributed 100 percent to the agricultural college permanent fund or WSU bond retirement account. The management of the agricultural college trust lands is funded from the Agricultural College Trust Management Account. This account is dependent on legislative appropriation for funding. Currently, the legislature

appropriates the money for this purpose from General Fund under a proviso. For Fiscal Year 2018 the total interfund transfer from General Fund was $1,420,000. 6 | ORV & NONHIGHWAY VEHICLE ACCOUNT

This account provides for acquisition, planning, development, maintenance, and management of ORV recreation facilities, non-highway roads and non-highway road recreation facilities; education and law enforcement programs related to non-highway vehicles; and construction and maintenance of campgrounds and trailheads. DNR, the Department of Fish and Wildlife and the Parks and Recreation Commission spend from the account in support of these functions. The Department of Licensing collects revenue for the account from taxes, licenses, permits and fees. DNR administers the account according to Legislative appropriations. See Figure 1 for the account’s total fiscal activity for Fiscal Year 2018. 7 | AQUATIC LANDS ENHANCEMENT ACCOUNT

This account provides for the purchase, improvement and protection of aquatic lands for public purposes. DNR, the Department of Fish and Wildlife, the Department of Agriculture, the Parks and Recreation Commission, the Recreation and Conservation Funding Board, the Department of Health and the Puget Sound Partnership spend from the account for these purposes. DNR administers this account and only the DNR fiscal activity is reported on the Department Administered Funds section of the annual report. See Figure 2 for the account’s total fiscal activity for Fiscal Year 2018. 8 | DERELICT VESSEL REMOVAL ACCOUNT

This account provides for costs and reimbursements to authorized public entities for the removal of derelict and abandoned vessels. DNR spends from the account for these purposes and the Department of Licensing spends from the account for the purpose of administering the collection of revenue for the fund. DNR administers this account and only the DNR fiscal activity is reported on the Department Administered Funds section of the annual report. See Figure 3 for the account’s total fiscal activity for Fiscal Year 2018.


2018 D N R A N N UA L R E P O R T 27

Figure 1 ORV & Nonhighway Vehicle Account Beginning Balance

$1,453,363

Revenue Licensing

Figure 4 Forest and Fish Support Account

$3,746,116

Fish and Wildlife

1

Beginning Balance

Parks and Recreation

0

Revenue

Natural Resources

4,056

3,750,173

Expenditures Natural Resources

Natural Resources $(3,300,751)

Fish and Wildlife

(287,544)

Parks and Recreation

(176,043)

Net Fiscal Activity

$6,364,623

Natural Resources

18,669

Treasurer's Deposit Income

5,551 0

Natural Resources Recreation & Conservation Funding Board

23,333

(67,370) (620,000) (4,485,288)

Natural Resources

(5,136,737)

Recreation & Cons. Funding Board

(2,015,486)

Agriculture

(1,122,642)

Puget Sound Partnership

(487,393)

University of Washington

(343,359)

Health

(216,332)

Parks and Recreation

(165,087)

Net Fiscal Activity Ending Balance

20,775,818

(1,777,656)

265,574 $2,662,146

FY 2018

Total-To-Date

$321,632

$26,842,269

Capitol Building Construction Account

122,606

10,232,275

6,803,494

Normal School Permanent Account

392,473

32,854,454

$13,168,118

State University Permanent Account

403,952

16,213,303

$1,240,663

$86,142,301

$107,322

$8,946,576

(13,972,323)

Total Trust Funds Resource Management Cost Account Common School Trust

Beginning Balance

$1,237,375

Revenue $791,581 85,690 16,461 16

893,747

(840,868) (14,785)

Capitol Building Trust

40,943

3,413,547

Normal School Trust

130,639

10,890,022

University School Trust Total RMCA

Expenditures

Net Fiscal Activity

0

Net Fiscal Activity

Common School Construction Account

Derelict Vessel Removal Account

Ending Balance

(1,777,656)

FDA/RMCA Loan Repayment

Figure 3

Natural Resources

2,043,230

Figure 6

Clean-Up Settlement account (15H) per ESSB 6052 Sec 805.

Licensing

4,238 28,260

*Includes operating transfer.

*Includes operating transfers. Treasurer’s transfer includes $620,000 loan repayment to the

Treasurer's Deposit Income

$2,010,732

Ending Balance

Fish and Wildlife

Natural Resources

$2,396,572

Expenditures

Expenditures

Licensing Dept of Revenue

$5,670,808

Beginning Balance Revenue Parks and Recreation* (Discover Pass)

$21,415,635

Parks and Recreation

Treasurer's Transfer*

1,437,811

Ending Balance

Park Land Trust Revolving Account

Revenue

Distribution to Fourth-Class Towns

(4,408,927)

Net Fiscal Activity

Figure 5

Beginning Balance

Fish and Wildlife

5,846,738

$1,439,198

Aquatic Lands Enhancement Account

Agriculture

414,884

Natural Resources (3,764,339)

Figure 2

Treasurer's Deposit Income

$5,431,854

Expenditures

(14,166)

Ending Balance

Natural Resources*

Dept of Revenue

$4,232,997

(855,653) 38,094 $1,275,469

134,651

5,404,436

$413,555

$28,654,581


2018 D N R A N N UA L R E P O R T 2 8

9 | FOREST AND FISH SUPPORT ACCOUNT

This account was created in 2007 to provide for activities pursuant to the state’s implementation of the forests and fish report as defined in chapter 76.09 RCW and related activities, including, but not limited to, adaptive management, monitoring, and participation grants to tribes, state and local agencies, and not-for-profit public interest organizations. DNR spends from the account for these purposes and the Department of Revenue spends from the account for the purpose of administering the collection of revenue for the fund. Sources of revenue for this account include surcharges on timber and wood product manufacturers, extractors and wholesalers per RCW 82.04.260 (12). DNR administers this account and only the DNR fiscal activity is reported on the Department Administered Funds section of the annual report. See Figure 4 for the account’s total fiscal activity for Fiscal Year 2018. 10 | PARK LAND TRUST REVOLVING ACCOUNT

This account is used for acquiring real property as a replacement for the property transferred to the State Parks and Recreation Commission in order to maintain the land base of the affected trusts, and to receive voluntary contributions for the purpose of operating and maintaining public use and recreation facilities. This account may also be used to hold funding for future acquisition of lands for the community forest trust program, or to purchase replacement forest land. In May 2011, the Governor signed the Discover Pass into law (see also RCW Title 79A) intended to provide revenue to maintain recreation access to state lands and meet the increasing demand for outdoor recreation. Effective July 1, 2011 the Discover Pass was required for vehicle access to recreation lands which include state parks, boat launches, campgrounds, heritage sites, wildlife and natural areas, trails and trailheads. DNR’s portion (8%) of this revenue is

transferred to this account by the State Parks and Recreation Commission. DNR’s recreation program spends from this portion of the account. DNR administers this account and only the DNR fiscal activity is reported on the Department Administered Funds section of the annual report. See Figure 5 for the account’s total fiscal activity for Fiscal Year 2018. 11 | FDA /RMCA LOAN REPAYMENT

The Board of Natural Resources resolution #635 in 1990 and #756 in 1992 authorized settlement of the FDA debt to the RMCA by transferring timber-cutting rights on State Forest Purchase lands to the Common School, Capitol Building, Normal School and University granted trusts. A onethird interest in assets (timber cutting rights) of the FDA on 35,625 acres was transferred to these trusts. The value of these transfers eliminated the debt between FDA and RMCA. A total of $1,654,218 was distributed to the trusts from timber harvested during Fiscal Year 2018. The RMCA received $413,555 from this activity. Since this is repayment of a loan, the transactions are recorded as an operating transfer rather than current period revenue. The values from the harvest activity by fund as well as RMCA trust for Fiscal Year 2018 and in total since the adoption of resolution 635 in 1990 are in Figure 6. 12 | OPERATING TRANSFERS

According to the Office of Financial Management’s interpretation of generally accepted accounting principles, debt service funds (funds used to pay off debts), such as the UW or WSU Bond Retirement accounts, cannot receive revenue directly. Instead, revenue to these two funds are recorded to the respective permanent funds, and then an operating transfer is made to the appropriate debt service fund. 13 | TRUST FUNDS – CURRENT AND PERMANENT

Trust Current Funds are funds that individual trust beneficiaries can draw from. Trust Permanent Funds are endowments, which generate interest that can be transferred to the Current Funds.

14 | FISCAL ACTIVITY FOR OTHER TYPE FUND(S) ADMINISTERED BY DNR

Natural Resources Equipment Account (411): Total other fiscal activity does not include funds classified as internal service funds. The Natural Resources Equipment Account is DNR’s only internal service fund. This fund is used to maintain, replace and provide equipment to the Department’s programs on a rental basis. In Fiscal Year 2018 this fund had revenue of $21,973,100 and expenses of $18,956,162. Miscellaneous Program Account (759): Total other fiscal activity does not include program account 759. This account is used to record the activity and balances of local accounts used by property management companies responsible for managing commercial real estate properties managed in trust by the department. In Fiscal Year 2018 this fund had revenue of $504,648 and expenses of $578,107. 15 | RMCA PORTION OF TRUST LAND REVENUE

The Resource Management Cost Account received 31 percent on most transactions and the trusts received 69 percent of revenue from trust lands during Fiscal Year 2018. Also, some revenue transactions are subject to different distribution ratios. These transactions include aquatic resources, miscellaneous nontrust revenue, interest earnings, land sales transactions and interfund loan repayment, the last of which affects the Common School, University, Capitol Building and Normal School trusts. Figure 7 (a,b,c) reflects trust activity with Forest Board Repayment activity. Refer to footnote #19 for trust activity related to University Trust. 16 | NON-TRUST REVENUE AND OTHER MISCELLANEOUS

Non-trust revenue cannot be attributed to a specific trust. Activities include forest road assessments, miscellaneous services, manuals and publications, prior period recoveries and adjustments, application fees and interest income. Fiscal Year 2018 Forest Board Transfer (fund 999) under Clark County is overstated by $560,091.59 due to a county recovery invoice processed incorrectly. The correction was processed after fiscal year-end close (fiscal year 2019), therefore, next fiscal year will be understated.

17 | NEGATIVE REVENUE

Any negative revenue reflects accounting adjustments (such as baddebt write-offs, credit memos) from a prior fiscal year. Fiscal Year 2018 negative revenue in Cleanup Settlement account reflects accounting of loan repayment from the Aquatic Lands Enhancement and State Toxics Control accounts. 18 | TREASURER’S REVENUE

Due to the schedule for distributing revenue, revenue from State Forest Lands may earn interest before it is distributed to the appropriate county. Interest earnings cannot be attributed specifically to Transfer Lands or Purchase Lands. This revenue is accounted for as treasurer’s revenue and is distributed to the appropriate county. 19 | UNIVERSITY TRUST – ORIGINAL , TRANSFERRED, REPAYMENT

The accounting for the University Trust combines activity from original University trust lands, lands which have been transferred to the trust, and the University trust’s share of interfund loan repayment as described in footnote #11. See Figure 8 for the breakdown of the different elements contributing to the information for University Grants for Fiscal Year 2018.


2018 D N R A N N UA L R E P O R T 2 9

Figure 7a Common School / Escheat Trust Trust Activity Timber Sales Timber Sales-Related Leases Misc Interest Income Fees / Service Charges Operating Transfer-In Subtotal

Total Revenue

Com. School Construction

Com. School Permanent

RMCA

$51,464,379

$35,510,421

$0

$15,953,958

15,578

10,213

(0)

5,365

39,805,593

26,702,767

756,707

12,346,119

58,051

39,613

343

18,095

124,142

2,519

0

121,623

428,954

321,632

0

107,322

91,896,697

62,587,164

757,050

28,552,483

382,875

0

0

382,875

(428,954)

0

0

(428,954)

Forest Board Repayment Sales Operating Transfer-Out Subtotal

(46,079)

0

0

(46,079)

91,850,618

62,587,164

757,050

28,506,404

141,319

52,620

0

88,699

Land Sales / Trust Land Transfer

1,505,193

0

0

1,505,193

Other Revenue

1,344,835

0

509,124

835,711

Total Non-Trust Activity

2,991,347

52,620

509,124

2,429,603

$94,841,965

$62,639,784

$1,266,174

$30,936,007

Total Trust Activity Non-Trust Activity STO Interest

GRAND TOTAL

Figure 7b

Figure 7c

Capitol Building Trust Activity Timber Sales

Normal School Total Revenue

Cap. Bldg. Construction

RMCA

$8,565,016

$5,909,861

$2,655,155

7,440

3,974

3,466

279,775

193,041

86,733

6,977

2,844

4,133

Fees/Service Charges

194

0

194

Operating Transfer-In

163,549

122,606

40,943

9,022,950

6,232,327

2,790,624

Timber Sales-Related Leases Late Interest

Subtotal

Operating Transfer-Out Subtotal

145,980

0

145,980

(163,549)

0

(163,549)

(17,569)

0

(17,569)

9,005,381

6,232,327

2,773,055

STO Interest

41,285

5,469

35,816

Other Revenue

77,219

0

77,219

118,504

5,469

$9,123,885

$6,237,796

113,035 $2,886,090

Total Trust Activity Non-Trust Activity

Total Non-Trust Activity GRAND TOTAL

Timber Sales Timber Sales-Related

Total Revenue

Capital Projects

Normal Sch. Permanent

RMCA

$5,418,426

$0

$3,738,714

$1,679,712

1,198

0

703

495

165,345

116,428

(2,120)

51,037

Late Interest

112

75

0

37

Fees/Service Charges

573

0

0

573

Leases

Operating Transfer-In Subtotal

523,112

0

392,473

130,639

6,108,766

116,503

4,129,770

1,862,493

466,918

0

0

466,918

(523,112)

0

0

(523,112)

Forest Board Repayment Sales

Forest Board Repayment Sales

Trust Activity

Operating Transfer-Out Subtotal

(56,194)

0

0

56,194

6,052,572

116,503

4,129,770

1,806,299

STO Interest Land Sales / Trust Land Transfer

26,065

2,534

0

23,531

0

0

0

0

Other Revenue Total Non-Trust Activity

50,299

0

0

50,299

76,364

2,534

0

73,830

$6,128,937

$119,037

$4,129,770

$1,880,129

Total Trust Activity Non-Trust Activity

GRAND TOTAL


2018 D N R A N N UA L R E P O R T 3 0

Figure 8 University Trust Trust Source/Activity

Total Revenue

Bond Retirement

University Permanent

20 | STATE TRUST LANDS MANAGEMENT FUND ACCOUNTING REPORT

RMCA

University-Transferred Timber Sales Timber Sales-Related Leases Misc-Trespass Late Interest Sale of Property-Other

$4,154,061

$0

$2,866,302

$1,287,759

0

0

0

0

245,994

0

169,736

76,258

(1)

0

(0)

(0)

168

0

113

55

0

0

0

0

374

0

0

374

Operating Transfer-In

3,649,536

3,110,933

Operating Transfer-Out

(3,110,933)

Fees/Service Charges

Total

403,952

134,651

(3,110,933)

0

4,939,200

3,110,933

329,169

1,499,097

18,776

0

12,956

5,821

126,227

0

87,096

39,130

0

0

0

0

20

0

13

7

University Original Timber Sales Leases Fines & Forfeits Late Interest Fees/Service Charges

63

0

0

63

Operating Transfer-In

87,108

87,108

0

0

Operating Transfer-Out

(87,108)

(87,108)

0

Total

145,086

87,108

12,958

45,021

559,898

0

0

559,898

0

0

0

0

University-Repayment Timber Sales Timber Sales Related Late Interest Operating Transfer-Out Total

0

0

0

0

(538,603)

0

0

(538,603)

21,295

0

0

21,295

23,983

2,997

0

20,986

Non-Trust Allocation STO Interest Non-Trust Revenue Allocation

43,591

0

0

43,591

Total

67,574

2,997

0

64,577

$5,173,154

$3,201,038

$342,127

$1,629,990

GRAND TOTAL Figure 9

RMCA/FDA Debt/Loan Accounting For Fiscal Year 2018 Grant Lands

State Forest Lands

2018 Trust Charges

Beginning Balance

$53,737,756

$23,127,262

RMCA Expenditures

$53,737,756

0

0

$23,127,262

$0

$0

FDA Expenditures Cumulative Debt/Loan

Fiscal Year 2018 Management Fund Debt Status As of June 30, 2018, no debt exists between the State Forest Lands (Forest Development Account) and the Grant Lands (Resource Management Cost Account).

Statutory Authority and Requirements: Subject to legislative appropriation, the Department of Natural Resources is authorized by RCWs 76.12.110 and 79.64.030 to use funds from the Resource Management Cost Account (RMCA) and Forest Development Account (FDA) interchangeably in the management of State Grant Lands and State Forest Lands. The law also states, however, that an annual accounting will be kept of payments made by one fund on behalf of another. For example when RMCA funds are used to pay for activities on State Forest Land, it shall be considered a debt against the FDA. RCW 79.64.030 also requires that the results of the accounting be reported to the legislature at the next regular session. Accounting Procedures Beginning with fiscal year 1996, the following Cost Allocation System accounting procedures have been used to calculate any debt or loan between the management funds: A. All operating program expenditures that can be determined to benefit a particular land category are directly charged to that land category. B. Expenditures for majority of the department’s operating programs for which the benefiting land category cannot be determined (indirect expenditures) are allocated to land categories based on staff month percentages derived from personnel time charged directly to those land categories or by Western Washington forested acres. C. Capital outlay expenditures that benefit particular land categories are determined in advance then charged by land category in the ratio set by appropriations. D. Agency Administration and Support costs are allocated to land category based on agency work plans for the year as established during the budget process. E. Direct charges and indirect charges are totaled by land category within the Cost Allocation System. Expenditures paid from the RMCA and FDA accounts are compared to these total charges for Grant Lands and State Forest Lands to determine how much of the charges were paid from one account on behalf of the other. If RMCA funds were used to pay State Forest charges, a debt principal is incurred in that amount. If State Forest funds were used to pay RMCA charges, the debt principal is reduced by that amount. Funding adjustments may be made periodically during the fiscal year to align expenditures by fund with total charges for Grant Lands and State Forest Lands to prevent the accumulation of any new debt in the year. F. As required by law, interest is charged on the debt incurred. A full year’s interest is charged on cumulative debt carried from the previous year. One half year’s interest is calculated on the change in the debt principal occurring during the current year. G. Cumulative debt from the preceding year, plus new principal and interest charges are totaled to determine the new cumulative debt. See Figure 9.


Timber Data

Management

PHOTO BY KEN BEVIS

FISCAL DATA TIMBER DATA


FISCAL DATA

2018 D N R A N N UA L R E P O R T 3 2

TIMBER DATA

Timber Volume | Sold and Harvested | FY 2018 Trust / Beneficiaries

Acres Sold

Timber Volume Sold (mbf) b

Timber Vol. Harvested c (mbf) b

STATE FOREST TRANSFER

(FORMERLY KNOWN AS FOREST BOARD TRANSFER LANDS)

Clallam Clark Cowlitz Grays Harbor Jefferson King Kitsap Lewis Mason Pacific Pierce Skagit Skamania Snohomish Stevens Thurston Wahkiakum Whatcom Subtotal Transfer

1,379 208 58 2 64 121 100 803 391

28,865 4,314 2,354 116 6,567 4,834 3,718 34,639 10,510

25,740 13,033 5,351 168 3,623 6,416 4,565 15,246 12,981

258 28

8,194 880

5,918 3,013

1,763 311 615 0 341 83 347 6,872

45,748 5,228 9,689 0 15,826 4,746 11,228 197,456

46,399 8,183 16,604 0 6,470 6,003 12,402 192,115

Trust / Beneficiaries

Acres Sold

Timber Volumea Sold (mbf) b

Timber Vol. Harvested c (mbf) b

Common School, Indem. & Esch. Agricultural School University Transferred & Orig. CEP and RI Capitol Building Normal School Escheat Scientific School University Original Comm. Coll. For. Res. University Repayment Forest Board Repayment King County Water Pollution

6,491 569 570 103 941 399 0 667 22 191 14 374 142

160,591 14,316 4,074 2,314 23,479 8,627 0 14,330 1,548 5,048 446 16,044 2,010

161,399 15,679 14,408 15,333 26,930 20,966 45 33,190 37 4,020 4,115 8,399 419

Subtotal

10,483

252,827

304,940

Statewide Total

17,755

463,711

505,119

â– About This Page a

Timber volume sold per acre depends on site-specific conditions and harvest method. b

Volume harvested is estimated for sales partially harvested.

STATE FOREST PURCHASE

(FORMERLY KNOWN AS FOREST BOARD PURCHASE LANDS)

Clark Cowlitz Grays Harbor Lewis Pacific Pierce Skamania Thurston Subtotal Purchase

mbf: thousand board feet

c

0

0

0 252 2 0 72 0 74 400

0 8,490 57 2 2,261 0 2,618 13,428

666 59 3,775 391 1,178 628 65 1,302 8,064

e

Includes University Repayment data. Notes Timber is sold before it is harvested. Timber sale contracts are typically two or more years in length, with most timber harvest schedules determined by individual purchasers. Sale and harvest of timber may or may not occur in the same fiscal year. Revenues are generated when timber is harvested. Market conditions can influence number of sales and volume sold.

Sales which contain more than one trust and/or beneficiary, report estimated acres and volumes for each specific trust. Sales which benefit more than one trust, distribute revenues proportionally by value based on percentage of area. Volume does not include forest improvement treatment (FIT) sales. Numbers may not add due to rounding. Source DNR NaturE System database, Report TSC311; 4/26/2019


FISCAL DATA

2018 D N R A N N UA L R E P O R T 3 3

TIMBER DATA

Timber Acres Harvested a | FY 2018 Trust / Beneficiaries

Acres Commerc. Thinned Small Wood b

Acres Partially Cut/Older Stand Thinning c

Acres Regeneration Harvestd

Total Acres

Aver. Year of Regen. Cut Stand

1946

â– About This Page a

586

0

856

1,442

Clark

1

0

554

555

1947

Cowlitz

0

0

131

131

1935

The Department tracks harvest method information in ten categories; for purposes of this report, per RCW 79.10.010, the data are aggregated into three harvest methods. b

STATE FOREST TRANSFER

Clallam

Greys Harbor Jefferson King

0

0

4

4

1940

102

0

87

189

1941 1934

Commercial thinning/small wood generates revenue, promotes growth of the remaining trees, and creates desired future forest conditions.

21

0

134

155

Kitsap

0

0

152

152

1937

Lewis

144

0

289

433

1946

Mason

4

0

542

546

1948

Pacific

28

0

132

160

1943

Pierce

125

0

36

161

1937

Skagit

640

0

2,377

3,017

1939

68

0

271

339

1944

Regeneration harvests refer to any removal of trees intended to assist natural tree regeneration or create space for replanting.

Skamania

c

Partial cuts/older stand thinnings generate revenue and help achieve desired future forest conditions. d

217

0

460

677

1951

â– Notes

Thurston

0

0

172

172

1955

Wahkiakum

0

0

127

127

1936

18

0

414

432

1957

1,954

0

6,738

8,692

1944

15

0

17

32

1955

0

0

2

2

1931

Harvested acres shown are Fiscal Year 2018 activities only; acres are reported again in the future if additional harvest activities occur. Acres harvested are estimated for sales partially harvested. Timber volume harvested per acre depends on site-specific conditions and harvest method.

Grays Harbor

19

0

107

126

1937

Lewis

12

0

9

21

1956

Pacific

0

0

46

46

1846 1950

Snohomish

Whatcom Subtotal Transfer STATE FOREST PURCHASE

Clark Cowlitz

Pierce

1

0

22

23

Skamania

1

0

3

4

1953

Thurston

4

0

39

43

1944

52

0

245

297

1929

Subtotal Purchase Comm. School, Indemn. Total

Sales which contain more than one trust beneficiary report estimated acres harvested for each specific trust. Sales which benefit more than one trust distribute revenues proportionally by value based on percentage of area. Acres do not include forest improvement treatment (FIT) sales.

1,301

0

4,920

6,221

1947

Agricultural School Total

143

0

507

650

1948

University Transfer Total

240

0

458

698

1954

12

0

533

545

1943

Source

Capitol Building Total

309

0

673

982

1948

Normal School Total

116

256

377

749

1946

DNR NaturE System database, Report TSC348; 8/14/2019

0

0

2

2

1982

119

0

751

870

1947

0

0

1

1

1940

119

0

751

870

1947

3

0

108

111

1846

Forest Board Repayment Total

3

0

208

211

1934

King Co. Water Poll. Ctrl Dist T

0

0

12

12

1940 1934

CEP & RI Total

Escheat Total Scientific School Total University Original Total Comm. Coll. Forest Res. Total University Repayment Total

Subtotal

2,365

256

9,301

11,922

Statewide Total

4,371

256

16,284

20,911

Numbers may not add due to rounding.


FISCAL DATA

2018 D N R A N N UA L R E P O R T 3 4

TIMBER DATA

Silviculture a | FY 2018 Trust / Beneficiaries

Acres Planted b

Stems per Acre c

STATE FOREST TRANSFER

(FORMERLY KNOWN AS FOREST BOARD TRANSFER LANDS)

Clallam Clark Cowlitz Grays Harbor Jefferson King Kitsap Klickitat Lewis Mason Pacific Skagit Skamania Snohomish Thurston Wahkiakum Whatcom Subtotal Transfer

Other Trusts / Beneficiaries

Acres Plantedb

Stems per Acre c

Precommercially Thinned Acresd

Agricultural School Capitol Grant Charitable/Educational/ Penal & Reformatory Instit. Common School and Indemnity Escheat

988 1,034

370 344

0 213

405

381

61

9,761 9

326 301

697 0

Normal School Scientific School University Original

668 647 38

387 357 501

13 77 0

University - Transferred Water Pollution Control Division Trust Land

117

219

0

Precommercially Thinned Acresd

799 814

310 421

112 158

213 62 14 158 241 25 354 413 146

357 476 400 378 366 200 410 323 353

88 0 0 0 0 0 0 0 0

741

76

352 150

15 0

536 472 173 284 5,523

369 350 355 372 361

0

148

423

0

Subtotal

13,815

341

1,061

Total - All Trusts

20,390

349

1,660

0

â– About This Page

0

These data are included in the 2018 Annual Report to Trust Beneficiaries per RCW 79.10.010

91 464

a

STATE FOREST PURCHASE

(FORMERLY KNOWN AS FOREST BOARD PURCHASE LANDS)

Clark Grays Harbor Lewis Thurston Subtotal Purchase

41

388

0

583

366

46 0 90 135

3

325

426

373

1,053

370

Silvicultural activities are forest management practices. Implementation of silvicultural practices varies according to site-specific conditions and availability of management funding. b

Acres planted include all planting processes and all tree species. c

Average per acre. (Stems per acre planted depend on site-specific conditions and anticipated survival rates).

d

Pre-commercially thinned acres increase yield rate per acre by selectively decreasing overcrowding of saplings. Numbers may not add due to rounding. Source *Source: Land Resource Manager database, 4-19-2019


FISCAL DATA

2018 D N R A N N UA L R E P O R T 3 5

TIMBER DATA

Deferrals | FY 2018 Trust / Beneficiaries

No Deferral Acres

FORMERLY KNOWN AS ACRES OFF-BASE FOR HARVEST

Short-Term Def. Acres

Long-Term Def. Acres

STATE FOREST TRANSFER

Trust / Beneficiaries

43,977

2,035

7,828

72,683

2,370

24,308

65,609

249

23,014

21,481

1,916

1,816

Cowlitz

8,639

1,539

247

Grays Harbor

1,738

12

470

Jefferson

12,351

212

1,357

CEP&RI Comm. School, Indenmity & Esch. Community College Forest Reserve

King

13,571

476

7,392

Community Forest Trust Escheat

5,647

0

1,517

18,851

0

213

Lewis

30,887

374

Mason

19,830

48

10

0

0

Pacific

9,945

232

4,279

Pierce

6,102

Okanogan

1,054

7,079

Scientific School

52,896

2,199

11,098

6,806

University Original

3,534

191

746

40,634

335

12,174

2,388 18,048 8,434

Trust / Beneficiaries

49,381

296

127

0

10,182 7

15,674

295

2,876

8,173

885

3,175

21,254

66

6,853

398,449

8,303

106,153

No Deferral Acres

Short-Term Def. Acres

Long-Term Def. Acres

STATE FOREST PURCHASE

Clallam Clark Cowlitz Grays Harbor

126

0

105

2,323

139

1,225

188

50

24 5,014

22,719

0

Jefferson

14

0

1

Kitsap

76

0

0

Klickitat

40

0

0

2,744

103

98

Mason

253

0

256

Lewis Pacific

5,044

514

2,238

Pierce

2,710

0

528

Skamania

2,878

72

1,388

Snohomish

1,636

0

10

36

0

5

18,118

0

4,355

682

0

268

59,589

878

15,514

Stevens Thurston Whatcom Subtotal Purchase

20 47,851 9,982

917

Subtotal Transfer

1,257 195

785

Whatcom

178,418

975

27,338

Wahkiakum

36,918

4,276

61,843

Thurston

870,725

44,672

Skamania Stevens

203

Normal School

Skagit Snohomish

Long-Term Def. Acres

Capitol Grant

Clallam

Klickitat

Short-Term Def. Acres

Agricultural School

Clark

Kitsap

No Deferral Acres

University Transferred Water Pollution Control Division Trust Land

4,177

56

1,289

993

125,585

126,578

Subtotal

1,139,824

45,274

420,556

Total – All TRUSTS

1,632,938

55,261

548,262

Other Lands*

■ About This Page These data are in the 2016 Annual Report to Trust Beneficiaries, per RCW 79.10.010. With the adoption of the 2004 Sustainable Harvest Level, DNR no longer classifies lands as “off-base” or “on-base,” but instead designates deferral status. Long-term deferral approximates “offbase.” Deferral status is determined by whether the silviculture and land management activities, including harvest, are permitted or deferred for a period of time. Short-term deferrals represent forestlands anticipated to be deferred from harvest in the next 10 years. Longterm deferrals represent forestlands anticipated to be deferred from harvest beyond 10 years and forestlands managed for non-timber harvest revenue objectives. Acres are designated as deferrals because they are inoperable, are low site, contain permanent research plots, are upland wildlife management areas, are timber gene pool reserves, are on unstable slopes in riparian buffers, are located in a northern spotted owl nest patch, contain a northern spotted owl site center, are identified as marbled

murrelet habitat, are included in the Olympic Experimental State Forest deferral areas, or are the result of the Settlement Agreement reached in 2006, or the 2006 Policy for Sustainable Forests Old-Growth Policy (all of these decisions were included in the 2007 sustainable harvest adjustment for Western Washington State Trust forestlands). A site can be deferred due to one or more factors. Deferral classifications are not permanent designations. DNR may change the classification as specific forest stands or sites are re‑evaluated. Acreage updates and changes can occur over time due to technological refinements in data gathering and analysis. Numbers may not add due to rounding or potential double counting. *Other lands include: Administrative Site, Land Bank, Milwaukee Road Corridor, Natural Area Preserve, Natural Resources Conservation Area, Tidelands—2nd-Class, Trust Status Not Applicable or Unknown. Source: Deferral Status of State Forestlands DNR Forest Resources Division, LDO v20180629, 2018.


2018 DNR ANNUAL REPORT

BOA RD OF N AT U R A L RESOU RC ES (2018) Hilary S. Franz, Chair, Commissioner of Public Lands JT Austin, designee for Governor Jay Inslee Dr. Dan Brown, Director, School of Environmental & Forest Sciences, College of The Environment, University of Washington Chris Reykdal, Washington State Superintendent of Public Instruction AndrÊ-Denis G. Wright, Dean, College of Agricultural, Human & Natural Resource Sciences, Washington State University Bill Peach, Clallam County Commissioner DN R M A N AG EMEN T (2018) Hilary S. Franz, Commissioner of Public Lands Ted Sturdevant, Chief of Staff Megan Duffy, Department Supervisor Stephen Bernath, Deputy Supervisor, Forest Practices Angus Brodie, Deputy Supervisor, State Uplands Kristin Swendall, Deputy Supervisor, Aquatics and Geology George Geissler, Deputy Supervisor, Wildfire and Forest Health, and State Forester Brule Burkhart, Deputy Supervisor, Administration and Information Technology Brooke Hamilton, Deputy Supervisor, Human Resources Josh Wilund, Deputy Supervisor, Region Operations Tom Bugert, Senior Strategic Advisor Dan Stonington, Policy Director FO REST P R AC T I C ES BOA RD (2018) Stephen Bernath, Chair, Commissioner of Public Lands’ designee Lisa Janicki, Elected county official Carmen Smith, General public member and independent logging Bob Guenther, General public member and small forest landowner Ben Serr, Department of Commerce Tom Laurie, Department of Ecology Patrick Capper, Department of Agriculture Jeff Davis, Department of Fish and Wildlife Noel Willet, Timber Products Union Tom Nelson, General public member David Herrera, General public member Brent Davies, General public member


NORTHWEST REGION

SEDRO WOOLLEY

COLVILLE

FORKS

NORTHEAST REGION

ENUMCL AW

OLYMPIC REGION

SOUTH PUGET REGION

OLYMPIA SOUND

ELLENSBURG

CASTLE ROCK

PACIFIC CASCADE REGION SOUTHEAST REGION

PACIFIC CASCADE REGION 601 Bond Rd. PO Box 280, Castle Rock,  WA 98611-0280 (360) 577-2025

NORTHEAST REGION 225 S. Silke Rd. Colville, WA 99114 (509) 684-7474

OLYMPIC REGION 411 Tillicum Lane Forks, WA 98331-9271 (360) 374-2800

NORTHWEST REGION 919 N. Township St. Sedro-Woolley,  WA 98284-9384 (360) 856-3500

SOUTH PUGET  SOUND REGION 950 Farman Ave. N. Enumclaw, WA 98022-9282 (360) 825-1631 SOUTHEAST REGION 713 Bowers Rd. Ellensburg, WA 98926-9301 (509) 925-8510

Visit our website dnr.wa.gov Send us an email information@dnr.wa.gov Call us (360) 902-1000 Come in See addresses at left CHECK OUT OUR SOCIAL MEDIA LINKS

facebook.com/ WashDNR YouTube/ WAstateDNR Twitter: @waDNR Fire Twitter: @waDNR_fire Instagram: washDNR

DNR Workforce In June 2018, the Department of Natural Resources had 1,339 permanent, year-round employees DNR is an equal opportunity employer.

Contact

OLYMPIA HEADQUARTERS 1111 Washington St. SE MS 47000 Olympia, WA 98504-7000 (360) 902-1000


dnr.wa.gov


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.