DNR 2016 Annual Report

Page 1

2016 Annual Report


VINEYARD LEASES BUILD SCHOOLS Barely one percent of state trust land is used for orchards or vineyards yet leases on these lands contributed more than 38 percent of the $21.3 million that agriculture lands earned for public school construction in fiscal year 2016.

$

21.3

MILLION

ANNUAL REVENUE FOR PUBLIC SCHOOLS AND OTHER TRUST LAND BENEFICIARIES FROM DNR-MANAGED AGRICULTURAL LAND LEASES


2016 DNR ANNUAL REPORT

4 Highlights 7 Fiscal Management Data* 35 Timber Management Data* 40 Boards and Leadership 41 Contact Information and DNR Regions Map

DNR Communications and Outreach Mail Stop 47003 Olympia, WA 98504-7003 Email information@dnr.wa.gov Phone 360-902-1016 TRS: 711 This document is available in PDF format at: dnr.wa.gov Photos (top to bottom): DNR: Defends more than 13 million acres from wildfire; manages Natural Resources Conservation Areas, like Woodard Bay NRCA; administers the Derelict Vessel Removal Program to protect Washington’s waters; helps landowners replace culverts that block fish from reaching upstream habitat; implements and administers the state’s Forest Practices Rules.

Hilary S. Franz Commissioner of Public Lands * Fiscal and timber pages account for the revenues DNR generated, collected, and expended during Fiscal Year 2016. 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 DNR is an equal opportunity employer.

Contents

For copies, or for disabled persons needing this information in an alternate format, contact:


2016 DNR ANNUAL REPORT

1,137

8th

ACRES ADDED TO NATURAL AREA PRESERVES

Department of Natural Resources

Highlights

STEWARDSHIP FORESTERS MADE 3,045 SITE VISITS TO HELP FAMILY FOREST OWNERS MANAGE THEIR LANDS TO IMPROVE FOREST HEALTH AND HABITAT

2,400-ACRE NEW KLICKITAT CANYON COMMUNITY FOREST ESTABLISHED A communitydeveloped management plan will guide the multiple uses of scenic forestland north of Glenwood.

43

LAKE KAPOWSIN AQUATIC RESERVE

The 512-acre Lake Kapowsin in Pierce County becomes the state’s eighth aquatic reserve— the first fresh water reserve.

KLICKITAT CANYON COMMUNITY FOREST

communities, counties and non-profits obtained funding for healthy urban forests through DNR.

1,600

FIREFIGHTERS TRAINED FOR 57 AGENCIES ACROSS THE STATE ● 162 FIRE DISTRICTS RECEIVED EQUIPMENT ● 32 MORE COMMUNITIES GAINED FIREWISE RECOGNITION ● 21 COMMUNITIES RECEIVED FUNDS TO REDUCE WILDFIRE RISKS

58,857

HOURS OF VOLUNTEER CARE FOR TRAILS, CAMPGROUNDS AND PICNIC AREAS

15 IN-STREAM BARRIERS TO FISH PASSAGE REMOVED The Family Forest Fish Passage Program helps small landowners replace out-dated culverts and other structures.

AQUATIC RESERVE ADDED

VOLUNTEERS AT CAPITOL STATE FOREST

32 miles

OF NEW TRAILS OFFER OPTIONS FOR FUN ON STATE TRUST LANDS


PHOTO BY CARRIE McCAUSLAND / DNR

2016 D N R A N N UA L R E P O R T 5

A COMMUNITYINFORMED MANAGEMENT PLAN WILL GUARANTEE WORKING FOREST LANDS, RECREATION AND EDUCATION OPPORTUNITIES IN KLICKITAT CANYON COMMUNITY FOREST.


HIGHLIGHT FROM THE FIELD

AQUATIC RESERVES PROTECT IMPORTANT NATIVE ECOSYSTEMS ON STATE-OWNED AQUATIC LANDS THROUGH MANAGEMENT PLANS DEVELOPED WITH PUBLIC INPUT. â–¼ The protection of the bull kelp beds was key to the creation of the Smith and Minor Islands Aquatic Reserve. Citizen scientists regularly conduct kelp surveys to assess the extent and composition of the kelp beds.


FISCAL DATA

TIMBER DATA

OVER ALL AGENCY OPER ATIONS 8 Total Revenue 9 Total Expenditures 10 DNR-Administered Funds 11 Funds Administered by Other Entities

STATE FOREST L ANDS 24 Forest Development Account (FDA) 25 General Distribution of Revenue from State Forest Lands 26 State Forest Lands STATE AQUATIC L ANDS 28 Aquatic Resources and RMCA—Aquatic 29 General Distribution of Revenue from State-Owned Aquatic Lands 30 FISC AL NOTES 34 State Trust Lands Management Fund Accounting Report

◗ These pages account for the revenues DNR generated, collected and expended during Fiscal Year 2016 (July 1, 2015 – June 30, 2016). ◗ 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 37 to 41, 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 11). ◗ 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 2016.

Management

ABOUT THESE PAGES

Fiscal Data

STATE GR ANT L ANDS 12 Resource Management Cost Account (RMCA) 13 State Grant Lands 14 RMCA Upland 15 General Distribution of Revenue from Upland State Grant Lands 16 Common School, Indemnity and Escheat Grants 17 University Grants Original and Transferred (UW) 18 Charitable, Educational, Penal and Reformatory Institutions Grant (CEP&RI) 19 Capitol Building Grant 20 Normal School Grant (EWU, CWU, WWU and TESC) 21 Scientific School Grant (WSU) 22 Agricultural College Trust Management Account (ACTMA) 23 Agricultural School Grant (WSU)


FISCAL DATA

2016 D N R A N N UA L R E P O R T 8

TIMBER DATA

Total Revenue | FY 2016 REVENUE BY SOURCE

1

Source

FY 2016

F Y 2015

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

$190,276 88

$180,862 147

13,216

12,804

4,166 360 $208,106

3,754 306 $197,872

$22,165 24,311 8,958 2,994 4,639 1,198 2,739 $67,004

$21,102 30,475 8,170 2,145 4,479 1,592 2,803 $70,765

$484 11,603 18,671 3,165

$575 11,382 18,346 3,342

2,614 $36,537 $311,647

318 $33,963 $302,600

$12,360 0 $12,360

$10,659 0 $10,659

$324,007

$313,259

Total Revenue Total

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

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

2016 D N R A N N UA L R E P O R T 9

TIMBER DATA

Total Expenditures | FY 2016 EXPENDITURES BY PROGRAM2

FY 2016

F Y 2015

Operating Fire Suppression Product Sales & Leasing Resource Protection

$146,486 38,285

$89,063 40,983

20,022 19,744

19,275 22,072

18,198 16,781 15,078 14,606

17,404 15,569 13,527 19,361

10,121 6,717

8,848 7,191

Administration Geology & Earth Resources

5,558 4,772

5,427 2,627

Agricultural Resources Law Enforcement Services

1,754 1,305

2,103 1,325

$319,425

$264,773

$12,720 6,909 3,823 2,352 2,123 1,674

$33,947 9,523 3,860 8,154 3,212 1,930

897 640

5,244 1,264

336 $31,475

0 $67,134

$350,901

$331,907

Land Management Agency Support Forest Practices Engineering Services Aquatic Resources Interagency Payments Asset & Property Management

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

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

Amounts are reported in thousands of dollars. ■ About This Page 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. 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

2016 D N R A N N UA L R E P O R T 10

TIMBER DATA

DNR-Administered Funds – Revenue and Expenditures | FY 2016 Fund Title

Beginning Balance 7/1/15

Revenue

Expenditure

Ending Balance 6/30/16

$6,732

$23,122

$(24,749)

$5,105

■ About This Page

19,720

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.

Trust Management Accounts* Forest Development (FDA) 3 Resources Management (RMCA) Total** RMCA Uplands Subtotal RMCA Land Bank Subtotal RMCA Aquatics Subtotal Agricultural College (ACTMA)

20,073

47,839

11,177

36,229

2,090 6,805

0 11,610

(48,191) (33,084)

14,321

461

1,422

0 (15,107) (1,082)

2,090 3,307

$27,266

$72,382

$(74,023)

$25,625

$5,340 353 N/A 26 261 1,940 N/A

$13,279 75 15,191 25 23 24,741 46

$(12,282) (18) (3,552) 0 (2) (18,661) (1,246)

$6,337 410 N/A 51 282 8,019 N/A

N/A 8,443 622 4,348

78 10,535 609 591

(3,251) (7,743) (592) (976)

N/A 11,236 639 3,962

1,956 N/A

(964) 1

(487) (2,379)

505 N/A

N/A 5,461 1 957 1,133 905

567 5,697 7 4,174 1,484 746 $76,904

(1,944) (6,545) 0 (3,712) (1,838) (649) $(65,879)

N/A 4,612 9 1,419 778 1,002

$149,286

$(139,902)

800

Other DNR-Administered Funds 14 Access Road Revolving Aquatic Lands Dredged Material Aquatic Lands Enhancement 7 Community Forest Trust Conservation Areas Stewardship Contract Harvesting Revolving Derelict Vessel Removal 8 Forest and Fish Support 9 Forest Fire Protection Assessment Forest Practice Application Landowner Contingency Forest Fire Marine Resources Stewardship ORV and Nonhighway Vehicle 6 Park Land Trust Revolving 10 Real Property Replacement 3 Special Forest Products Outreach & Educ. State Forest Nursery Revolving Surface Mining Reclamation Surveys andpages Maps See Fiscal Notes, 54-58. Totals may not add due to rounding.

Total DNR-Administered Funds 14

Amounts are reported in thousands of dollars.

* 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 $2,090,465 dedicated by law (RCW 79.19) to Land Bank purchases of lands that replace previously sold trust lands. See pages 12, 22, 24 and 28 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

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.


FISCAL DATA

2016 D N R A N N UA L R E P O R T 11

TIMBER DATA

Other Funds – Revenue and Expenditures | FY 2016 Fund Title

Revenue

Expenditure

Net Fiscal Activity

$65,670

$0

$65,670

Community College Forest Reserve WSU Bond Retirement

0 1,449

(500) 0

(500) 1,449

UW Bond Retirement 19

1,775

0

1,775

3,092 35 35 35 35 6,666 55,919

0 0 0 0 0 0 0

3,092 35 35 35 35 6,666 55,919

$134,711

$(500)

$134,211

$7,627 2,397 1,502 5,028 153 $16,707

$0 0 0 0 0 $0

$7,627 2,397 1,502 5,028 153 $16,707

$23,547

$(47,429)

$(23,882)

275 58

(261) (130,488)

14 (130,430)

(1,219)

0

(1,219)

5 0

0 (9,978)

5 (9,978)

0 0 27 609 $23,303 $174,722 $324,007

(350) (291) (19,284) (2,418) $(210,499) $(210,999) $(350,901)

(350) (291) (19,257) (1,808) $(187,196) $(36,277)

Trust Current Funds 13 Common School Construction

CEP&RI EWU Capital Projects CWU Capital Projects 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 State Building Construction State Toxics Control Total Activity - Other Funds 14 Total All Funds and Activities

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 30-34. 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

2016 D N R A N N UA L R E P O R T 12

TIMBER DATA

Resource Management Cost Account (RMCA) | FY 2016 EXPENDITURES

REVENUE

Source Beginning Balance (July 1, 2015)

$20,072,548

RMCA Revenue Uplands Aquatics

36,228,954 11,609,748

Operating Revenue

47,838,702

Less Expenditures 2 Agricultural Resources Asset & Property Management Product Sales & Leasing Land Management Law Enforcement Correctional Camps Administration Interagency Payments Agency Support

1,724,351 1,207,540 10,613,779 8,726,049 699,722 299,551 1,894,516 4,157,852 6,383,223

Aquatic Resources Engineering Services

10,850,202 1,634,706

Total Operating Expenditures Total Capital Expenditures

48,191,491 0

Total Expenditures and Other Charges

48,191,491

Ending Fund Balance (June 30, 2016)*

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■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 $2,090,465 in upland trust reserved for Land Bank sell-first purchases. See page 14 for details.

$19,719,759


FISCAL DATA

2016 D N R A N N UA L R E P O R T 13

TIMBER DATA

State Grant Lands | FY 2016 REVENUE

DISTRIBUTION

Grand Total All Funds

Trust Current Funds 13

Trust Permanent Funds 13

Resource Management Cost Account 15

$86,514,536

$45,088,401

$16,658,797

$24,767,339

25,117

2,365

11,164

11,589

6,000,000 0 $92,539,653

6,000,000 0 $51,090,766

0 0 $16,669,961

0 0 $24,778,927

$4,293,472 16,885,244 890,472 24,312,970

$2,652,727 11,089,129 586,764 13,575,278

$341,071 645,126 37,255 0

$1,299,674 5,150,989 266,452 10,737,692

2,059,965 8,952,609

1,353,087 6,134,088

73,722 77,093

633,156 2,741,428

Mineral And Hydrocarbon Rights-Of-Way

2,712,951 1,119,273

1,151,906 260,116

577,579 488,421

983,465 370,737

Communication Sites Special Forest Products

3,101,702 239,657

1,674,959 140,155

497,805 26,077

928,939 73,425

$64,568,315

$38,618,210

$2,764,149

$23,185,956

$347,005 1,113,733

$110,499 941,410

$35,580 0

$200,926 172,323

(754,195) 714,458 $1,421,001

3,219,818 2,366 $4,274,094

(3,219,818) 457,327 $(2,726,912)

(754,195) 254,765 $(126,181)

$158,528,970

$93,983,069

$16,707,198

$47,838,703

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

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use Commercial Real Estate

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. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

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

2016 D N R A N N UA L R E P O R T 14

TIMBER DATA

Resource Management Cost Account (RMCA) Upland | FY 2016 Granted Trusts

Source Beginning Trust Balance (July 1, 2015)

Land Bank*

Total Uplands

$11,177,523

$2,090,159

$13,267,682

36,228,650

305

36,228,955

1,724,351 1,207,540 10,613,779 8,726,049 699,722 299,551 1,326,263 2,409,635

0 0 0 0 0 0 0 0

1,724,351 1,207,540 10,613,779 8,726,049 699,722 299,551 1,326,263 2,409,635

4,442,526 1,634,706

0 0

4,442,526 1,634,706

Total Operating Expenditures Total Capital Expenditures

33,084,125

0

33,084,125

0

0

0

Total Expenditures Ending Trust Balance (June 30, 2016)

33,084,122

0

33,084,122

$14,322,052

$2,090,464

$16,412,516

Upland Revenue Total Upland Revenue Less: Expenditures 2 Agricultural Resources Asset & Property Management Product Sales & Leasing Land Management Law Enforcement Correctional Camps Administration Interagency Payments Agency Support Engineering Services

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

About This Page This portion of the RMCA supports the management of upland state grant lands, each of which supports a specific, designated beneficiary. * Land Bank revenue is dedicated by law (RCW 79.19) to purchase lands that replace previously sold trust lands.

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 2016, 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

2016 D N R A N N UA L R E P O R T 15

TIMBER DATA

General Distribution of Revenue from Upland State Grant Lands* | FY 2016

ST

B

FICIARI ENE E

S

53

.1

%

6

DISTRIBUTED TO TRUST BENEFICIARIES 69%

PL

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

D 3 1%

TR TO

M

N SCHOOLS

9%

U

CO

MO

8.18% Land Management ❙ Reforestation, Pre-commercial Thinning, Fertilization & Vegetation Mgmt. ❙ Genetic Improvement of Seedlings ❙ Forest Nursery ❙ Scientific Support ❙ Data Stewardship ❙ Landscape Planning

AN

Learn more about General Distribution of Revenue from Upland State Grant Lands on page 14.

2.4% Institutions and Prisons

RM

CA

U

2.0% Normal Schools (WWU, EWU, CWU and TESC) 5.3% Capitol Buildings

*** Expenditures from Land Bank.

9.95% Product Sales & Leasing ❙ Presales Activities ❙ Oil, Gas & Commercial Site Leasing ❙ Rock & Gravel Sales Assessments ❙ Right-of-Way Granting & Acquisition ❙ Contract Administration ❙ Leasing 0.28% Special Employment ❙ Correction Camps Program

1.5% Univ. of Washington 4.7% WA State University (Scientific Trust only)

1.13% Asset & Property Management ❙ Asset Planning ❙ Land Transactions ❙ Public Use ❙ Recreation ❙ Washington Conservation Corps (WCC) ❙ Natural Areas ❙ Natural Heritage

1.53% Engineering Services ❙ Resource Mapping 1.24% Administration ❙ Policy Analysis ❙ Executive Management ❙ Internal Audit ❙ Communications ❙ Budget and Economic Services ❙ Legal Affairs

4.16% Agency Support ❙ Finance ❙ Personnel and Equipment ❙ Data Systems Management and Support ❙ Geographic Information Systems ❙ Region Administration ❙ Facilities ❙ Environmental Analysis

1.62% Agricultural Resources ❙ Agricultural & Grazing Leases ❙ Weed Management ❙ Permits 2.26% Interagency Payments 0.66% Law Enforcement ❙ Investigative Services


FISCAL DATA

2016 D N R A N N UA L R E P O R T 16

TIMBER DATA

Common School, Indemnity and Escheat Grants | FY 2016 REVENUE

DISTRIBUTION

Total Funds

Common School Construction

Common School Permanent

Resource Management Cost Account 15

$53,315,070

$36,568,475

$0

$16,746,595

3,741

1,255

(0)

2,486

6,000,000 0 $59,318,811

6,000,000 0 $42,569,731

0 0 $(0)

0 0 $16,749,080

$3,471,305 15,977,763 815,344

$2,400,242 11,027,151 567,478

$0 0 0

$1,071,062 4,950,611 247,866

Aquatic Lands Special Use

0 1,893,851

0 1,311,748

0 0

0 582,103

Commercial Real Estate Mineral And Hydrocarbon

8,831,172 852,598

6,125,348 16,105

0 574,993

2,705,824 261,500

Rights-Of-Way Communication Sites

663,600 2,151,466

19,074 1,473,572

449,263 0

195,262 677,894

156,426 $34,813,523

108,205 $23,048,924

0 $1,024,256

48,221 $10,740,343

$89,367 98,118 (495,249) 506,358 $198,594

$51,194 0 0 0 $51,194

$20,840 0 0 457,327 $478,167

$17,333 98,118 (495,249) 49,031 $(330,767)

$94,330,928

$65,669,848

$1,502,424

$27,158,656

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

Leases Agriculture Dryland Irrigated Grazing and Other

Special Forest Products

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

Totals

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■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

2016 D N R A N N UA L R E P O R T 17

TIMBER DATA

University Grants Original and Transferred (UW) | FY 2016 REVENUE

Source 19

DISTRIBUTION

Total Funds

UW Retirement Bond

State (UW) University Permanent

Resource Management Cost Account 15

$2,382,927 13,922

$0 0

$1,666,331 9,537

$716,595 4,385

0 $2,396,849

0 $0

0 $1,675,868

0 $720,980

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 16 Operating Transfer 1, 12 Permits, Fees, and Miscellaneous 1

Totals

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

$205,626 0 31,096

$0 0 0

$142,025 0 21,678

$63,600 0 9,418

0 7,233

0 0

0 4,991

0 2,242

103,472 0

0 0

71,741 0

31,731 0

1,460 0

0 0

1,007 0

452 0

13,377 $362,264

0 $0

9,308 $250,750

4,069 $111,514

$10,244 3,064 12,158 185 $25,650

$490 0 1,774,409 0 $1,774,899

$459 0 (1,774,409) 0 $(1,773,950)

$9,295 3,064 12,158 185 $24,701

$2,784,762

$1,774,899

$152,668

$857,195

■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

2016 D N R A N N UA L R E P O R T 18

TIMBER DATA

Charitable, Educational, Penal and Reformatory Institutions Grant (CEP&RI) | FY 2016 REVENUE

DISTRIBUTION

Total Funds

CEP & RI Account

Resource Management Cost Account 15

Timber Sales Timber Sales-Related Activities 1

$2,865,517

$1,986,557

$878,960

1

1

0

Land Sales (Includes Land Bank)

0 $2,865,518

0 $1,986,558

0 $878,960

Source Sales

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands Special Use

$232,629 3,278 11,613 0 5,985

$160,514 2,262 8,103 0 4,155

$72,115 1,016 3,510 0 1,829

Commercial Real Estate Mineral And Hydrocarbon

11,150 1,065,734

7,731 738,638

3,419 327,096

3,166 231,511

2,190 161,114

976 70,397

27,603 $1,592,668

19,073 $1,103,780

8,529 $488,888

$16,515 4,969 0 2,398 $23,883

$1,540 0 0 0 $1,540

$14,975 4,969 0 2,398 $22,342

$4,482,069

$3,091,878

$1,390,191

Rights-Of-Way Communication Sites Special Forest Products

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

Totals

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■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

2016 D N R A N N UA L R E P O R T 19

TIMBER DATA

Capitol Building Grant | FY 2016 REVENUE

DISTRIBUTION

Total Funds

Capitol Building Construction

Resource Management Cost Account 15

Timber Sales Timber Sales-Related Activities 1

$9,760,263

$6,533,368

$3,226,895

1,849

1,109

740

Land Sales (Includes Land Bank)

0 $9,762,112

0 $6,534,477

0 $3,227,635

$58,375 0 5,443

$40,279 0 3,756

$18,096 0 1,687

0 28,939

0 19,968

0 8,971

1,463 5,461

1,010 3,848

454 1,614

8,452 58,368

5,927 40,274

2,525 18,094

16,212 $182,714

11,216 $126,278

4,996 $56,436

$39,227

$5,489

$33,738

Operating Transfer 1 Permits, Fees, and Miscellaneous 1

10,779 (313,318) 229 $(263,083)

0 0 0 $5,489

10,779 (313,318) 229 $(268,572)

Totals

$9,681,743

$6,666,244

$3,015,499

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

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■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

2016 D N R A N N UA L R E P O R T 2 0

TIMBER DATA

Normal School Grant (EWU, CWU, WWU and TESC) | FY 2016 REVENUE

Source

DISTRIBUTION

Total Funds

EWU, CWU, WWU, TESC Capital Projects

Normal School Permanent

Resource Management Cost Account 15

$3,343,193

$0

$2,369,847

$973,346

927

0

74

854

0 $3,344,120

0 $0

0 $2,369,920

0 $974,200

$74,916 86,355 10,721

$51,692 59,716 7,427

$0 0 0

$23,224 26,639 3,294

0 24,906

0 17,215

0 0

0 7,691

0 0

0 0

0 0

0 0

36,640 0

0 0

26,005 0

10,635 0

2,390 $235,929

1,660 $137,711

0 $26,005

730 $72,213

$13,974 3,951

$526 0

$1,179 0

$12,269 3,951

42,214 2,245 $62,384

0 1,833 $2,358

0 0 $1,179

42,214 412 $58,846

$3,642,432

$140,069

$2,397,105

$1,105,259

Sales Timber Sales 11, 15 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 16 Operating Transfer 1 Permits, Fees, and Miscellaneous 1

Totals

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■ 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

2016 D N R A N N UA L R E P O R T 21

TIMBER DATA

Scientific School Grant (WSU) | FY 2016 REVENUE

DISTRIBUTION

Total Funds

WSU Bond Retirement

Scientific Permanent

Resource Management Cost Account 15

Timber Sales Timber Sales-Related Activities 1

$7,185,204

$0

$4,960,257

$2,224,947

3,867

0

742

3,125

Land Sales (Includes Land Bank)

0 $7,189,071

0 $0

0 $4,960,999

0 $2,228,072

$166,375 557,162 2,201

$0 0 0

$114,799 384,440 1,525

$51,576 172,722 676

0 98,180

0 0

0 67,861

0 30,319

0 0

0 0

0 0

0 0

15,752 526,294

0 0

11,140 363,740

4,612 162,554

22,359 $1,388,323

0 $0

15,480 $958,984

6,879 $429,339

$47,279

$2,546

$11,227

$33,506

9,659 0 1,580 $58,518

0 902,835 0 $905,381

0 (902,835) 0 $(891,607)

9,659 0 1,580 $44,744

$8,635,912

$905,381

$5,028,376

$2,702,155

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 12 Permits, Fees, and Miscellaneous 1

Totals

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■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

2016 D N R A N N UA L R E P O R T 2 2

TIMBER DATA

Agricultural College Trust Management Account (ACTMA) | FY 2016 EXPENDITURES

REVENUE

Source Beginning Fund Balance (July 1, 2015)

$460,684

Revenue Operating Revenue * Interfund Transfer from General Fund 5

1,420,000

Total Revenue

1,421,707

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

Ending Fund Balance (June 30, 2016)

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

1,707

29,666 33,363 390,334 277,077 15,265 12,521 44,800 70,622 149,576

■ 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 10-14.

59,123 1,082,346 0 1,082,346

$800,045


FISCAL DATA

2016 D N R A N N UA L R E P O R T 2 3

TIMBER DATA

Agricultural School Grant (WSU) | FY 2016 REVENUE

Source

DISTRIBUTION

Total Funds

WSU Bond Retirement

Agricultural College Permanent

Sales Timber Sales

$7,662,362

$0

$7,662,362

Timber Sales-Related Activities 1

811

0

811

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

0 0 $7,663,173

0 0 $0

0 0 $7,663,173

$84,247 260,685

$0 0

$84,247 260,685

14,053 -

0 0

14,053 0

Special Use Commercial Real Estate

870 5,352

0 0

870 5,352

Mineral and Hydrocarbon Rights-Of-Way

2,586 1,005

0 0

2,586 1,005

134,065 1,290 $504,153

0 0 $0

134,065 1,290 $504,153

$3,185 0 0 0

$1,312 0 542,575 0

$1,874 0 (542,575) 0

$3,185

$543,886

$(540,701)

$8,170,512

$543,886

$7,626,625

Leases Agriculture Dryland Irrigated Grazing and Other Aquatic Lands

Communication Sites Special Forest Products

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

Totals

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■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

2016 D N R A N N UA L R E P O R T 2 4

TIMBER DATA

Forest Development Account (FDA) | FY 2016 EXPENDITURES

REVENUE

Source Beginning Fund Balance (July 1, 2015)

$6,732,444

Revenue Operating Revenue Total Revenue

23,121,519 23,121,519

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

Ending Fund Balance (June 30, 2016)

0 442,899 8,499,401 7,473,397 203,413 476,221 1,010,998 1,538,487 3,494,512

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 2016, 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. * This chart is based on statewide averages. Detailed breakdown of DNR programs contains examples only, not a complete listing.

1,609,601 24,748,928 0 24,748,928

$5,105,035

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■ About This Page The FDA funds DNR’s land management activities on State Forest Lands (formerly known as Forest Board Lands) in 21 counties. DNR deposits a portion of the revenue it generates from these lands into the FDA, and the legislature appropriates funds from the account to DNR for expenditures. The FDA is used for trust land management expenses (e.g., reforestation, preparing timber sales) on State Forest Lands.

** 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 30-34. Purchase lands, see definition on page 26. Transfer lands, see definition on page 27.


FISCAL DATA

2016 D N R A N N UA L R E P O R T 2 5

TIMBER DATA

General Distribution of Revenue from State Forest Lands* | FY 2016 PURCHASE LANDS 80,217 acres FU

ND

FD

0.2% Law Enforcement ❙ Investigative Services

A 50 %

GE

N.

State General Fund 23.5%

CO

1.8% Engineering Services ❙ Resource Mapping

%

N

TI

ES

Counties 26.5%

T I E S 6 7. UN 3 COUNTIES 67.3%

CO

A

A

FD

FD

CO

%

UNTIES

%

25

75

DIRECT CONTRIBUTION STATE GENERAL FUND 4.9%

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 26.

27

U

TRANSFER LANDS ** 537,797 acres

. 8%

FOREST DEVELOPMENT ACCOUNT (FDA) 27.8%

8.4% Land Management ❙ Reforestation, Pre-commercial Thinning, Fertilization and Vegetation Mgmt. ❙ Genetic Improvement of Seedlings ❙ Forest Nursery ❙ Scientific Support ❙ Data Stewardship ❙ Landscape Planning

1.1% Administration ❙ Policy Analysis ❙ Executive Management ❙ Internal Audit ❙ Communications & Outreach ❙ Budget & Economic Services ❙ Legal Affairs 1.7% Interagency Payments

3.9% Agency Support 0.5% ❙ Finance Special ❙ Personnel & Employment Equipment ❙ Correctional ❙ Data Systems Camp ❙ Management Program & Support ❙ Geographic 0.5% Information Asset and Systems Property 9.6% ❙ Facilities Management Product Sales ❙ Region ❙ Asset Planning & Leasing Administration ❙ Land ❙ Presales Activities ❙ Environmental Transactions ❙ Oil, Gas & Analysis ❙ Public Use Commercial ❙ Recreation Site Leasing ❙ Washington ❙ Rock & Gravel Conservation Sales Assessments Corps (WCC) ❙ Right-of-Way ❙ Natural Areas Granting ❙ Natural Heritage & Acquisition ❙ Leasing ❙ Contract Administration


FISCAL DATA

2016 D N R A N N UA L R E P O R T 2 6

TIMBER DATA

State Forest Lands | FY 2016 REVENUE

Source

CONTRIBUTING LANDS

Total Funds

Transfer Lands

Purchase Lands

$79,757,382 65,146

$66,202,646 65,019

$13,554,736 127

$79,822,528

$66,267,665

$13,554,863

$395,438 70,641 281,024 89,828 1,522,339

$337,238 50,512 281,024 84,478 1,152,565

$58,200 20,129 0 5,350 369,774

$2,359,269

$1,905,816

$453,453

Sales Timber Sales Timber Sales-Related Activities 1

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

Other Revenue Interest Income 1

$18,349

$17,282

$1,066

Permits, Fees, and Miscellaneous 1

865,170

865,170

0

15,636 56,206 $955,360

N/A N/A $882,452

N/A N/A $1,066

$83,137,157

$69,055,934

$14,009,382

Treasurer’s Revenue FDA Non-Trust Revenue 16 18

Totals

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■ 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

2016 D N R A N N UA L R E P O R T 27

TIMBER DATA

State Forest Lands | FY 2016

CONTINUED

REVENUE DISTRIBUTION

Recipient

Total Funds

CONTRIBUTING LANDS

Transfer Lands

Purchase Lands

County Clallam

$5,144,512 3,786,628

$5,143,210 3,689,379

$1,302 97,249

826,531 2,511,438

820,673 821,063

5,858 1,690,375

2,088,734 1,802,197 1,564,764 37,062 4,426,310 3,890,207 0 431,880 250,465 7,638,884

2,088,734 1,802,197 1,544,006 37,062 4,199,318 3,889,777 0 245,251 222,946 7,638,884

0 0 20,757 0 226,993 429 0 186,629 27,518 0

1,213,499 5,706,831 58,022 9,936,441 803,722 3,785,165 15,636 $55,918,929

1,211,854 5,661,385 58,022 8,122,516 803,722 3,773,374 N/A $51,773,374

1,645 45,447 0 1,813,925 0 11,791 N/A $4,129,919

General Fund - State

$22,843,282 222,032 0 56,206 $23,121,519 $4,096,709

$17,061,078 221,481 N/A N/A $17,282,559 $0

$5,782,203 551 N/A N/A $5,782,754 $4,096,709

Totals

$83,137,157

$69,055,934

$14,009,382

Clark Cowlitz Grays Harbor Jefferson King Kitsap Klickitat Lewis Mason Okanogan Pacific Pierce Skagit Skamania 3 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

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

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

2016 D N R A N N UA L R E P O R T 2 8

TIMBER DATA

Aquatic Resources | FY 2016 REVENUE

DISTRIBUTION

Source

Total Funds

Aquatic Lands Enhancement

Aquatic Resources Activities Leases

$24,312,970

$13,575,278

$10,737,692

786,572 389,200

393,316 232,925

393,256 156,275

Mineral and Hydrocarbon Rights-Of-Way Interest Income 1 Non-Trust Revenue 16 Miscellaneous 1 Total Revenue

Resource Management Cost Account 15

127,213

47,402

79,811

983,193 201,464 $26,800,611

941,410 534 $15,190,864

41,783 200,930 $11,609,748

RMCA | AQUATIC EXPENDITURES

REVENUE

Source Beginning Trust Balance (July 1, 2015) Aquatic Revenue Total Revenue Less Expenditures 2 Aquatic Resources Administration Interagency Payments Agency Support Total Operating Expenditures Total Capital Expenditures Total Expenditures Ending Trust Balance (June 30, 2016)

$6,804,864

11,609,748 10,850,202 568,253 1,748,217 1,940,694 15,107,366 0 15,107,366

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 30. Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

$3,307,246

Totals may not add due to rounding. Notes 1 to 20 may be found in Fiscal Notes on pages 30-34.

■ About This Page State-owned aquatic lands (tidelands, shorelands and beds of navigable waters) are a “public trust”—managed to benefit the public as a whole. Revenue from these granted state lands is divided between two accounts: The RMCA-aquatic supports DNR’s management of state aquatic lands and resources, and the ALEA provides for the purchase, improvement and protection of aquatic lands, largely through grants to public entities. Distribution varies according to activity and land classification and is governed by law.


FISCAL DATA

2016 D N R A N N UA L R E P O R T 2 9

TIMBER DATA

General Distribution of Revenue from State-Owned Aquatic Lands* | FY 2016

EA

AL

7

5 ALEA

7 ALEA

%

2.5% University of Washington

C 25

8.9% Recreation and Conservation Funding Board

RM

31.11% Aquatic Resources ❙ Nearshore Habitat ❙ Geoducks ❙ Port Management ❙ Contaminated Sediments ❙ Operations, Administration, and Policy Development

CA

AQUATIC LANDS ENHANCEMENT ACCOUNT (ALEA) 56.7% RESOURCE MANAGEMENT COST ACCOUNT (RMCA) AQUATIC 43.3%

5%

Learn more about general distribution of revenue from state-owned aquatic lands on page 28.

A

0.6% Department of Health

5 0%

4.7% Department of Agriculture

RM

HARBOR AREAS ** Effective 2/6/06

RM CA

0.7% State Parks and Recreation Commission

5

7% 6.

0%

. 3%

2.8% Puget Sound Partnership

C

43

14.6% Department of Natural Resources

RM

%

22.0% Department of Fish and Wildlife

5%

25

5 0%

ALEA

RM

SECOND CLASS TIDELANDS & SHORELANDS

ALEA

FIRST CLASS TIDELANDS & SHORELANDS

A

0%

CA

5

BEDS OF NAVIGABLE WATERS

1.63% Administration ❙ Policy Analysis ❙ Executive Management ❙ Internal Audit ❙ Communications ❙ Budget & Economic Services 5.01% Interagency Payments 5.56% Agency Support ❙ Finance ❙ Personnel & Equipment ❙ Data Systems ❙ Management & Support ❙ Geographic Information Systems ❙ Facilities ❙ Region Administration


2016 D N R A N N UA L R E P O R T 3 0

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 2016). 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 FY16 Fiscal Year 2016 (July 1, 2015 – June 30, 2016) 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

Timber sales include non-trust activity for contract harvesting sales. 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 2016 include Firewise Grants, Fire Communications Base Stations and Mountain Top Repeaters. Total Expenditures of $350,900,632 for Fiscal Year 2016 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 2016 a total of $5,494,847, 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. Trust Land Transfer: During Fiscal Year 2016 a total of $6,000,000 was distributed to the Common School Construction Account from the Trust Land Transfer program. Encumbered State Forest Land: During Fiscal Year 2016 Encumbered State Forest Land Transfers, a program enabled by Second Substitute House Bill 1484, resulted in distributions of $216,265 to the Forest Development Account and $648,795 to Skamania County. 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 2016 sales, existing contracts and interest was $305 (interest only) to the RMCA. A total of $2,090,465 in the RMCA 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 2016 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 2016. 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 2016.


2016 D N R A N N UA L R E P O R T 31

Figure 4

Figure 1

Forest and Fish Support Account

ORV & Nonhighway Vehicle Account Beginning Balance

$825,685

Licensing Natural Resources Fish and Wildlife

Dept of Revenue

$2,973,253

Natural Resources

$900 37

2,974,189

Fish and Wildlife Parks and Recreation

(86,500)

(2,679,519)

$4,426,170 $14,854,844

Special Approp to the Governor*

332,000

Natural Resources

18,984

Treasurer's Deposit Income

4,020 432

(60,581)

15,149,698

Natural Resources Recreation & Conservation Funding Board

(5,359,014)

Net Fiscal Activity

Natural Resources Recreation & Conservation Funding Board

(3,552,118)

Ending Balance

(2,156,007)

Agriculture

(1,151,640)

Puget Sound Partnership

(683,591)

University of Washington

(604,576)

Parks and Recreation

(162,969)

Health

(134,286)

Net Fiscal Activity

(13,804,200)

per operations budget 2ESHB 2376 Sec 804 and $643,000 loan repayment to the Clean Up Settlement Account (15H) per ESSB 6052 Sec 805.

Figure 3 Derelict Vessel Removal Account $1,268,746

Revenue

45,705

911,751

Expenditures Natural Resources

(1,245,659) (15,500)

(1,944,493) 0

(1,944,493)

373,948 $1,961,946

Total-To-Date

Common School Construction Account

$616,164

$25,936,527

Capitol Building Construction Account

234,882

9,887,006

Normal School Permanent Account

751,878

31,749,216

State University Permanent Account

162,200

15,805,746

$1,765,123

$83,378,495

$205,602

$8,644,348

Total Trust Funds Resource Management Cost Account Capitol Building Trust

78,436

3,298,247

Normal School Trust

250,270

10,522,133

University School Trust Total RMCA

$746,076 119,970

2,318,442

FY 2016

Common School Trust

Natural Resources

12,346

FDA/RMCA Loan Repayment

*Treasurer’s transfers include $975,000 from Marine Resources Stewarship Account (16P)

Dept of Revenue

136,407

Figure 6

$5,771,668

Beginning Balance

1,751,689 418,000

*$418,000 per 2015-17 Operating Budget, ESSB 6052 Sec 727.

1,345,498

Ending Balance

$1,587,998

Expenditures

Fish and Wildlife

Licensing

$5,347,994

Beginning Balance Revenue Parks and Recreation (Discover Pass)

Expenditures

Licensing

1,203,162

Ending Balance

Park Land Trust Revolving Account

Revenue

Distribution to Fourth-Class Towns

(3,251,351)

Figure 5

Beginning Balance

Puget Sound Partnership

4,454,513

294,670

Aquatic Lands Enhancement Account

Treasurer's Deposit Income

2,030

$1,120,355

Figure 2

Fish and Wildlife

75,808

Net Fiscal Activity

(213,703)

Net Fiscal Activity

Treasurer's Transfer*

Treasurer's Deposit Income

4,376,676

Natural Resources

$(2,379,316)

Ending Balance

Natural Resources

$4,144,832

Expenditures

Expenditures Natural Resources

Beginning Balance Revenue

Revenue

(1,261,159)

Net Fiscal Activity

(349,407)

Ending Balance

$919,338

54,067

5,268,583

$588,374

$27,733,311


2016 D N R A N N UA L R E P O R T 3 2

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 2016. 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 2016. 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 2016. 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 35,655 acres was transferred to these trusts. The value of these transfers eliminated the debt between FDA and RMCA. A total of $2,353,497 was distributed to the trusts from timber harvested during Fiscal Year 2016. The RMCA received $588,374 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 2016 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 2016 this fund had revenue of $18,447,650 and expenses of $18,332,675. 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 2016 this fund had revenue of $471,505 and expenses of $567,453. 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 2016. 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

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. 17 | NEGATIVE REVENUE

Any negative revenue reflects accounting adjustments (such as baddebt write-offs, credit memos) from a prior fiscal year. Fiscal Year 2016 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 2016.


2016 D N R A N N UA L R E P O R T 3 3

Figure 7a Common School / Escheat Trust Trust Activity Timber Sales Timber Sales-Related

Total Revenue

Com. School Construction

Com. School Permanent

RMCA

52,819,821

35,952,312

0

16,867,509

(322,775)

1,255

0

(324,030)

34,813,523

23,048,924

1,024,256

10,740,344

Misc Interest Income

75,807

37,939

20,840

17,028

Fees / Service Charges

49,031

0

0

49,031

Leases

Operating Transfer-In Subtotal

821,765

616,164

0

205,602

88,257,172

59,656,593

1,045,097

27,555,482

326,516

0

0

326,516

(821,765)

0

0

(821,765)

Forest Board Repayment Sales Operating Transfer-Out Subtotal Total Trust Activity

(495,249)

0

0

(495,249)

87,761,922

59,656,593

1,045,097

27,060,233

13,560

13,255

0

305

6,000,000

6,000,000

0

0

648,530

0

457,327

191,203

6,662,090

6,013,255

457,327

191,508

94,424,013

65,669,848

1,502,424

27,251,741

Non-Trust Activity STO Interest Land Sales / Trust Land Transfer Other Revenue Total Non-Trust Activity GRAND TOTAL

Figure 7b

Figure 7c

Capitol Building Trust Activity Timber Sales Timber Sales-Related Leases Late Interest Fees / Service Charges Operating Transfer-In Subtotal

Normal School Total Revenue

Cap. Bldg. Construction

RMCA

9,446,945

6,298,487

3,148,459

1,849

1,109

740

182,714

126,278

56,436

5,677

3,911

1,766

229

0

229

313,318

234,882

78,436

9,950,732

6,664,666

3,286,066

Operating Transfer-Out

Total Revenue

Capital Projects

Normal Sch. Permanent

RMCA

Timber Sales

3,385,407

0

1,617,969

1,767,438

Timber Sales-Related Leases Late Interest Fees / Service Charges Operating Transfer-In Subtotal

0

0

0

(313,318)

0

(313,318)

Operating Transfer-Out Subtotal Total Trust Activity

Subtotal

(313,318)

0

(313,318)

Non-Trust Activity

Total Trust Activity

9,637,414

6,664,666

2,972,748

STO Interest

33,550

1,578

31,972

STO Interest Land Sales / Trust Land Transfer

Other Revenue

21,005

0

21,005

Total Non-Trust Activity

54,555

1,578

9,691,969

6,666,244

52,977 3,025,725

Non-Trust Activity

GRAND TOTAL

(1,039,892)

1,833

1,253

(1,042,978)

235,929

137,711

26,005

72,213

60

39

0

20

412

0

0

412

1,002,148

0

751,878

250,270

3,584,063

139,583

2,397,105

1,047,375

1,044,361

0

0

(1,002,148)

0

Forest Board Repayment Sales

Forest Board Repayment Sales

Trust Activity

Other Revenue Total Non-Trust Activity GRAND TOTAL

1,044,361 (1,002,148)

(42,213)

0

0

(42,213)

3,626,277

139,583

2,397,105

1,089,589

12,205

486

0

11,719

0

0

0

0

7,699

0

0

7,699

19,904

486

0

19,417

3,646,180

140,069

2,397,105

1,109,007


2016 D N R A N N UA L R E P O R T 3 4

Figure 8 University Trust Trust Source/Activity

Total Revenue

Bond Retirement

20 | STATE TRUST LANDS MANAGEMENT FUND ACCOUNTING REPORT

University Permanent

RMCA

University-Transferred Timber Sales

1,591,941

0

1,107,575

484,366

402

0

277

125

236,428

0

163,575

72,852

13,447

0

9,209

4,238

609

0

421

189

Sale of Property-Other

0

0

0

0

Fees/Services Charges

147

0

0

147

Timber Sales-Related Leases Misc-Trespass Late Interest

Operating Transfer-In

1,901,786

1,685,520

162,200

54,067

(1,685,520)

0

(1,685,520)

0

2,059,239

1,685,520

(242,262)

615,982

Timber Sales

574,720

0

396,557

178,163

Leases

Operating Transfer-Out Total University Original

125,836

0

87,174

38,662

Fines & Forfeits

73

0

50

23

Late Interest

56

0

39

17

Fees/Services Charges

38

0

0

38

Operating Transfer-In

88,890

88,890

0

0

Operating Transfer-Out

(88,890)

(88,890)

0

Total

700,723

88,890

394,931

216,903

228,424

0

0

228,424

0

0

0

0

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

0

0

0

0

(216,266)

0

0

(216,266)

12,158

0

0

12,158

9,578

490

0

9,088

Non-Trust Allocation STO Interest Non-Trust Revenue Allocation Total GRAND TOTAL

5,971

0

0

5,971

15,549

490

0

15,059

2,787,669

1,774,899

152,668

860,102

Figure 9 RMCA/FDA Debt/Loan Accounting For Fiscal Year 2016 Grant Lands

State Forest Lands

2016 Trust Charges

Beginning Balance

$48,191,490

$24,748,929

RMCA Expenditures

48,191,490

0

0

24,748,929

$0

$0

FDA Expenditures Cumulative Debt/Loan

Fiscal Year 2016 Management Fund Debt Status As of June 30, 2016, 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

DNR PHOTO FILES

FISCAL DATA TIMBER DATA


FISCAL DATA

2016 D N R A N N UA L R E P O R T 3 6

TIMBER DATA

Timber Volume | Sold and Harvested | FY 2016 Trust / Beneficiaries

Acres

Timber Volumea 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 Klickitat Lewis Mason Pacific Pierce Skagit Skamania Snohomish Stevens Thurston Wahkiakum Whatcom Subtotal Transfer

1,606 247 164 41 244 67 54 0 525 430 304 476 1,355 448 1,199 0 292 128 173 7,753

29,470 10,314 6,428 2,349 7,283 2,297 1,537 0 16,308 10,876 9,125 6,523 37,004 10,430 26,619 0 10,547 4,257 6,153 197,520

27,220 14,195 2,970 2,436 5,513 5,466 4,296 0 13,472 9,846 1,170 778 23,589 2,783 22,090 10 26,246 3,232 11,839 177,151

Trust / Beneficiaries

Acres

Timber Volumea Sold (mbf) b

Timber Vol. Harvested c (mbf) b

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

8,835 1,491 1,245 313 1,828 1,033 4 742 0 310 1 10 427 1 0

160,215 26,437 12,301 11,596 51,807 13,768 106 19,549 0 1,594 25 196 19,835 142 0

170,218 21,656 6,794 8,676 29,741 8,861 19 22,049 1,345 0 25 1,558 13,679 142 70

Subtotal All Other Lands

16,240

317,511

284,833

Statewide Total

24,382

526,382

480,898

â– About This Page a

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

b

STATE FOREST PURCHASE

(FORMERLY KNOWN AS FOREST BOARD PURCHASE LANDS)

Clark Cowlitz Grays Harbor d Lewis Pacific e Pierce e Skagit Skamania Snohomish Thurston Subtotal Purchase

mbf: thousand board feet

c

36

679

0

0

173 95 0 2 0 3 21 59

5,478 2,647 0 42 0 52 554 1,839

885 0 12,442 2,823 85 128 0 0 501 2,050

389

11,291

18,914

Volume harvested is estimated for sales partially harvested. d

Includes Forest Board Repayment Trust.

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 NaturESystem database, Report TSC311; 8/29/16


FISCAL DATA

2016 D N R A N N UA L R E P O R T 37

TIMBER DATA

Silviculture a | FY 2016 Trust / Beneficiaries

Acres Planted b

Stems per Acre c

Trust / Beneficiaries

Precommercially Thinned Acresd

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

STATE FOREST TRANSFER

(FORMERLY KNOWN AS FOREST BOARD TRANSFER LANDS)

Clallam

Jefferson King

858 547 161 0 196 194

304 391 374 0 295 387

994 36 68 124 42 0

Kitsap Klickitat Lewis Mason Pacific Pierce Skagit Skamania

30 25 914 707 79 0 420 391

361 302 353 342 356 0 377 356

236 0

784 2 348 123 202 5,983

319 269 169 254 344 332

330 0

Clark Cowlitz Grays Harbor

Snohomish Stevens Thurston Wahkiakum Whatcom Subtotal Transfer

3,956

STATE FOREST PURCHASE

(FORMERLY KNOWN AS FOREST BOARD PURCHASE LANDS)

Clallam Clark Grays Harbor Lewis Mason Pacific e Pierce Skamania Snohomish Thurston

2

306

0

11

362

0

126 28 0 35 69 37 37 85

395 175 0 399 401 378 423 181

721 16 106 49 89 0 0 601

Subtotal Purchase

430

339

1,582

Stems per Acre c

Precommercially Thinned Acresd

868 475

292 329

181 307

457

343

245

7,147 17 184 720 4

264 402 422 316 226

3,516 0

868

271

68

University - Transferred Water Pollution Control Division Trust Land

341 647 81 272 116 0

515 155 0

Acres Plantedb

37

436

0

Subtotal All Other Lands

10,776

280

4,693

Total - All Trusts

17,189

300

10,231

â– About This Page These data are included in the 2016 Annual Report to Trust Beneficiaries per RCW 79.10.010 a

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

227 149 0

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: Planning and Tracking Database 12/14/2016


FISCAL DATA

2016 D N R A N N UA L R E P O R T 3 8

TIMBER DATA

Timber Acres Harvested a | FY 2016 Trust / Beneficiaries

Acres Commerc. Thinned Small Wood b

Acres Partially Cut/Older Stand Thinning c

Acres Regeneration Harvestb

Total Acres d

Aver. Year of Regen. Cut Stand

â– About This Page

Clallam

229

0

619

848

1930

Clark

139

0

398

537

1948

Cowlitz

0

0

72

72

1941

a 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.

Greys Harbor

3

0

58

61

1941

b

Jefferson

0

0

170

170

1941

41

0

117

158

1947

Kitsap

0

0

147

147

1944

Lewis

55

1

356

412

1954

Mason

0

0

371

371

1938

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

Pacific

0

0

25

25

1943

d

Pierce

34

0

9

43

1952

Skagit

215

0

616

831

1939

1

0

83

84

1952

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

76

0

783

859

1946

â– Notes

STATE FOREST TRANSFER

King

Skamania Snohomish Stevens

0

1

0

1

0

Thurston

1

0

588

589

1927

Wahkiakum

0

0

52

52

1934

Whatcom

127

0

275

402

1954

Subtotal Transfer

921

2

4,739

5,662

1958

STATE FOREST PURCHASE

Clark Grays Harbor Lewis

0

0

35

35

1927

69

0

350

419

1946

221

0

55

276

1966 1943

Pacific

0

0

2

2

Snohomish

0

0

190

190

1970

Thurston

0

0

52

52

1938

290

0

684

974

1946

2,038

685

6,325

9,048

1963

Subtotal Purchase Comm. School, Indemnity & Escheat Total

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

c

Harvested acres shown are Fiscal Year 2016 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. 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.

Agricultural School Total

153

2

647

802

1950

University Transfer Total

479

37

137

653

1956

Numbers may not add due to rounding.

59

0

211

270

1946

Source

Capitol Building Total

409

18

843

1,270

1948

Normal School Total

329

113

420

862

1953

DNR NaturE System database, Report TSC348; 8/29/2016

Scientific School Total

1956

CEP & RI Total

245

12

583

840

University Original Total

0

0

40

40

1941

University Repayment Total

1

0

31

32

1943

15

1

336

352

1937 1964

Forest Board Repayment Total King Co. Water Pollution Control District T

1

0

3

4

Subtotal

3,729

868

9,576

14,173

Statewide Total

4,940

870

14,999

20,809


FISCAL DATA

2016 D N R A N N UA L R E P O R T 3 9

TIMBER DATA

Deferrals | FY 2016 Trust / Beneficiaries

No Deferral Acres

FORMERLY KNOWN AS ACRES OFF-BASE FOR HARVEST

Short-Term Def. Acres

Long-Term Def. Acres

STATE FOREST TRANSFER

Clallam

63,947

359

24,419

Clark

22,254

858

1,990

9,789

155

437

Cowlitz

Trust / Beneficiaries

No Deferral Acres

Short-Term Def. Acres

Long-Term Def. Acres

Comm. School, Indenmity & Esch.

866,362

28,598

191,792

Capitol Grant

73,063

595

25,464

Scientific School

53,525

685

11,671

43,821

394

10,921

1,742

0

474

Jefferson

12,113

212

1,534

Normal School University, Original & Transferred

44,239

22

12,988

King

16,138

0

5,397

Agricultural School

42,501

1,699

9,283

6,314

0

830

34,206

201

5,291

Klickitat

18,553

23

242

Lewis

31,115

132

7,024

5,035

0

511

Mason

23,025

0

3,633

Pacific

8,708

13

5,794

CEP&RI Water Pollution Control Division Trust Land Community College Forest Reserve

3,360

0

52

Community Forest Trust

0

0

44,918

Grays Harbor

Kitsap

Pierce

7,798

0

722

Skagit

55,229

905

23,919

Skamania

24,629

323

11,741

Snohomish

47,538

175

11,925

Stevens Thurston Wahkiakum Whatcom Subtotal Transfer

Trust / Beneficiaries

124

0

7

15,493

489

2,851

8,469

58

3,841

20,167

58

7,929

393,155

3,759

114,707

No Deferral Acres

Short-Term Def. Acres

Long-Term Def. Acres

138

0

92

2,421

0

1,258

219

9

37

23,540

0

4,166

STATE FOREST PURCHASE

Clallam Clark Cowlitz Grays Harbor Jefferson

12

0

4

Kitsap

39

0

36

Klickitat

40

0

0

Lewis

2,617

80

244

Mason

403

0

104

Pacific

4,964

30

2,790

Pierce

2,793

0

450

Skagit

745

0

29

Skamania

2,800

0

1,535

Snohomish

1,603

0

39

35

0

4

18,766

0

3,697

Stevens Thurston Whatcom Subtotal Purchase

704

0

244

61,839

119

14,731

Other Lands*

973

0

121,734

Subtotal

1,167,085

32,194

434,625

Total – All TRUSTS

1,622,080

36,071

564,064

■ 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 v20160630, 2016.


2016 DNR ANNUAL REPORT

BOA RD OF N AT U R A L RESOU RC ES (2015/16) Peter Goldmark, Chair, Commissioner of Public Lands JT Austin, designee for Governor Jay Inslee Thomas DeLuca, Director, School of Environmental & Forest Sciences, College of The Environment, University of Washington Randy Dorn, Washington State Superintendent of Public Instruction Ron C. Mittelhammer, Interim Co-Provost, Washington State University Bill Peach, Clallam County Commissioner DN R M A N AG EMEN T (2015/16) Peter Goldmark, Commissioner of Public Lands Leonard Young, Department Supervisor Stephen Bernath, Deputy Supervisor, Forest Practices Kyle Blum, Deputy Supervisor, State Uplands Megan Duffy, Deputy Supervisor, Aquatics & Geology Mary Verner, Deputy Supervisor, Wildfire & Administration Aaron Everett, Policy Director & State Forester FO REST P R AC T I C ES BOA RD (2015/16) Stephen Bernath, Chair, Commissioner of Public Lands’ designee Heather Ballash, Department of Commerce, director’s designee Patrick Capper, Department of Agriculture, director’s designee Brent Davies, general public member Bob Guenther, general public member / small forest landowner David Herrera, general public member Tom Laurie, Department of Ecology, director’s designee Bill Little, timber products union representative Dave Somers / Lisa Janicki, elected county official Carmen Smith, general public member / independent logging contractor Court Stanley, general public member Joe Stohr, Department of Fish and Wildlife, director’s designee Paula Swedeen, 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

Ear to the Ground blog Facebook YouTube Twitter Fire Twitter Flickr

DNR Workforce In June 2016, the Department of Natural Resources had 1,279 permanent, year-round employees.

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.