PORT TOWNSEND — Jefferson County will receive more revenue than expected from state timber sales, but that bounty will be needed to compensate for the shortfall created by funds lost in the decrease of real estate excise tax revenue, the county administrator said.
The county commissioners heard a report about the windfall at its Monday meeting, learning that timber sales on county owned parcels would net $375,000 more than expected.
County Administrator Philip Morley said that $250,000 of that amount is earmarked to pay off the bond that was used to purchase the Castle Hill offices that house public works and the Department of Community Development.
“Before the recession, real estate excise tax [known as REET] revenue paid for this and more,” Morley said.
“In the county’s adopted 2011 budget, REET is expected to generate only $459,000, which is $251,000 less than our annual debt service,” he added.
Morley said that in 2010 and 2011, the county was able to fund this difference using other capital funds, but in 2012 the county’s general fund will become liable for any 2012 shortfall in the real estate excise tax revenue to meet the county’s annual debt.
Morley said the county has already received $243,416 of the excise tax in the first six months of 2011, more than half of the projected annual total.
State Department of Natural Resource timber revenue comes from harvesting timber on County Trust Lands managed by DNR.
DNR contracts with private harvest companies, and after DNR takes out its 25 percent management fee, harvest revenues come to the county and are divided among all the taxing districts, Morley said.
“Revenue will depend on the actual harvest practices of the timber companies,” Morley said.
“And if DNR revenue to the county is up, DNR revenue to other taxing districts would be up too.”
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Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or charlie.bermant@peninsuladailynews.com.
