PORT TOWNSEND — An increased demand for the lumber market is expected to bring Jefferson County extra revenue, but the timing and the amount are undetermined.
“The market is picking up,” said Department of Natural Resources Olympic Region Manager Susan Trettevik.
“With the demand for lumber in China, we have gotten bids that exceed our minimum limits, so we will be able to generate some revenue.”
Trettevik addressed the three Jefferson County commissioners Monday, stating that bids in four areas of land with a combined projected value of $4 million had been accepted.
The county would receive a portion of these funds — perhaps up to $423,000 this year.
DNR takes 25 percent in administrative costs, and some will be distributed to other taxing districts.
If excess lumber revenue is collected, beneficiaries would include the county road fund, the conservation futures fund, the Port of Port Townsend, the Jefferson County Public Utility District, public school districts, Jefferson Healthcare hospital, fire districts and library districts, County Administrator Philip Morley said.
The funds may not be collected until after the timber is taken to market, and it is yet to be harvested. So new revenue may take several years to reach county coffers, though some funds could be allocated during the current budget cycle.
According to Morley, $230,000 in lumber fees is projected for 2011, but the projection could be readjusted to $423,000, an increase of $194,000 to the county’s general fund, if the lumber harvests occur as DNR anticipates.
Morley called this situation “good news.” Any unexpected revenues would go toward alleviating shortfalls in other areas.
Morley said the county already has received $121,000 this year from DNR.
“It is not clear if that would be out of the $423,000 or if the figures are additive,” Morley sad.
“If that’s the case, that would be even better news.”
While excess timber revenues could be allocated to the general fund, the money also could be used to compensate for real estate excise tax shortfalls, Morley said.
The county has a $710,000 payment due to cover the debt on prior bonds, but the real estate excise tax, which was allocated for this purpose, is projected to come in at $460,000.
Morley said the real estate excise tax also supports the construction and renovation fund that is used to maintain such county facilities as the courthouse.
“If the DNR timber comes in in excess of the general-fund needs, the excess would be put in either of these two funds and help pay our obligations or pay to maintain our facilities,” he said.
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Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or at charlie. bermant@peninsuladailynews.com.
