ARIZONA STATE LAND DEPARTMENT

Annual Report
2004 - 2005

Janet Napolitano
Governor
Mark Winkleman
State Land Commissioner

“Serving Arizona’s Schools and Public Institutions Since 1915”

Contents

Message From the Commissioner........................................................................................ 1
Historic Revenue Year.......................................................................................................... 3
Permanent Fund ................................................................................................................... 5
Expendable Fund.................................................................................................................. 6
Program Accomplishments
Real Estate....................................................................................................................... 7
Natural Resources ......................................................................................................... 11
Forestry .......................................................................................................................... 13
Board of Appeals ........................................................................................................... 15
State Trust Land Uses ........................................................................................................ 16
Land Ownership and Management .................................................................................... 17
Management Team............................................................................................................. 19
Fund and Beneficiary Summary ......................................................................................... 20
Schools K - 12................................................................................................................ 21
University Grants ........................................................................................................... 23
Other Grants .................................................................................................................. 27
Financial Schedules............................................................................................................ 30
Receipts by Category.....................................................................................................31
Rental Acreage and Receipts ........................................................................................ 32
Treasurer’s Formula Distribution.................................................................................... 33
State Trust land Acreage by Beneficiary ....................................................................... 34
Auctions of Leases with and without Preferred Right .................................................... 35

Please visit our website at www.land.state.az.us

Janet Napolitano
Governor
State of Arizona

Message From the Commissioner

September 1, 2005
A Written Report to
Governor Janet Napolitano
by the Arizona State Land
Commissioner

The Honorable Janet Napolitano
Governor of Arizona
1700 W. Washington Street
Phoenix, Arizona 85007
Dear Governor Napolitano:
It is my privilege to deliver to you the State Land Department’s Annual Report for fiscal year 2004-2005 as required by
A.R.S. §37-132. The report contains a summary of the Department’s management activities, and more importantly, recordbreaking revenue that the Land Department earned during the fiscal year.
It is my primary and continuing goal to increase our ability to generate revenue for the beneficiaries of the State Trust. In
this fiscal year, Land Department staff continued their diligent work and sincere dedication to support the Trust. As you
are aware, we were extremely successful in generating more revenue for the beneficiaries.
Fiscal year 2004-2005 was the most productive year in the history of the Land Department. Several revenue records were
broken. The Department had record receipts of $367.1 million. The Sales Section had an outstanding year completing 17
auctions, resulting in gross sales of approximately $254.5 million. In many of these auctions there was intense, competitive
bidding that raised the sale price significantly above the appraised value of the land.

Mark Winkleman
Arizona State Land
Commissioner

Of the total $254.5 million, $8.2 million was from cash sales and was directly deposited into the Permanent Fund. The
balance of just over $246.3 million was financed through the Department and will be paid off over time. The beneficiaries
will earn interest on the balance at a rate averaging from 8% to 10% for an average term of 7 years. These interest rates are
generally higher than market and the total outstanding receivable balance from term sales is a record $446 million, earning
interest daily. The money earned on this balance will be paid to our beneficiaries over the next several years. In addition,
the remaining principal payments on the price for the land will be deposited in the Permanent Fund in future years.
This year the Department generated a record $89.2 million in expendable revenue that was sent to beneficiaries for their
immediate use. This is a 74.9% increase over fiscal year 2003-2004. Records were also set in several other areas of expendable revenues: sales interest, $41.9 million; commercial leasing, $18.5 million; agriculture, $4 million and natural
products, $5.2 million.

1

The record $393.6 million revenue generated this year by the Trust has been allocated as follows: $273 million from the
sale of land, rights-of-ways and minerals was deposited into the Trust Permanent Fund, increasing the Fund to
$1,516,454,000; public schools and institutions received $72.9 million from land rents and interest income, school leases of
$16.4 million as well as $26.5 million from the Treasurer’s formula distributions; the Treasurer’s Office also received $2
million in commercial prepayments that the Land Department will receive back over time as expendable revenue for the
beneficiaries; additionally $2.8 million was deposited in the General Fund.
I created the Southern Arizona Real Estate Office, located in Tucson, to improve our management of State Trust lands in
Southern Arizona. I also continued to focus on the manner of preparing State Trust land for auction. This is a continuation
of the process I began in January of 2003 for improving operations. We are also improving the procedures for our five year
plan, conceptual planning, engineering, and the terms by which the Land Department allows financing of the purchase price
of State Trust land. I am sure you would agree, the record sales and leases that occurred this year show the success of our
actions.
The Land Department served Arizona and its citizens in many other significant ways this past year. As a result of this year’s
wet winter, the Forestry Division successfully addressed the biggest fire season Arizona has ever seen. Nearly 725,000
acres burned this year with most of the fire activity occurring in the deserts with the Cave Creek Complex fire in the northeast valley being the largest. The additional prison crews that were added to the Forestry Division through your budget
recommendation proved to be a critical resource. Forest and Fire Management staff are continually recognized locally and
nationally for their accomplishments.
Thank you for the opportunity to serve Arizona and the Trust beneficiaries as State Land Commissioner. The possibilities
that exist for the Land Department over the next year are exciting. We intend to continue to prepare and market State Trust
land for public auction in a manner to ensure as much competition as possible so as to generate greater revenue for the
beneficiaries of the Trust. I expect to be reporting more record-breaking news next fiscal year.
We will also strive to fulfill the additional and important responsibilities contained in our mission such as fire suppression,
mapping, title, and conservation, for the benefit of the citizens of Arizona.
Sincerely,

Mark Winkleman
Arizona State Land Commissioner

2

About the Commissioner
On January 6, 2003, Arizona Governor Janet Napolitano appointed Mark
Winkleman as the Arizona State Land
Commissioner. Mark has the responsibility to act as a trustee in the management of over 9 million acres of
State Trust land throughout all of Arizona, including over 500,000 acres in
major Arizona cities.
Mark brings over 22 years of commercial real estate experience to the
Land Department. When Mark came
to the Land Department, his initial
goal was to maximize the revenues
from the disposition of urban lands
through the auction process. After
implementing new strategies through
the Land Department staff, the intensity of bidders and the prices achieved
were unprecedented.
Mark has been a leader in the effort to
reform the laws under which the Trust
lands are managed. A proposal is currently under consideration that would
permit the Department to greatly increase revenues to the beneficiaries,
primarily public education. The proposal would reduce urban sprawl and
provide for more effective planning of
the lands most directly in the path of
growth.

Total Trust Revenue

Fiscal Year 2005 - A Historic Revenue Year

$450
$400
$350

• FY 2005 was a record year for Trust revenues. The
Department produced $367.1 million and the Treasurer’s formula distribution generated $26.5 million for
a grand total of $393.6 million.

$300
(Millions)

Record Revenues

• Educational institutions (universities, schools (K-12)
and the School for the Deaf & Blind) received 96.4%
of all beneficiary receipts in FY 2005.

$250
$200
$150
$100
$50
$0

19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05

• The Department completed 17 land sale auctions
resulting in gross sales of approximately $254.5 million.

Fiscal Year

• FY 2005 revenues were $160.8 million higher than FY
2004 revenues and $189.4 higher than FY 2003 revenues.

Treasurer's Distribution

Land Department Earnings

FUNDS
Expendable
Commercial Prepayment
School Leases
General

2,001,859.86
16,381,372.51
2,836,799.88
273,017,638.83

TOTAL LAND DEPARTMENT

367,099,310.37

GRAND TOTAL - FY 2005

3

72,861,639.29

Permanent

Treasurer’s Formula Distribution

Deputy State Land Commissioner
Richard R. Hubbard

FY 2005 TOTAL

26,508,655.15
393,607,965.52

REVENUES BY BENEFICIARY
FY 2005

TRUST
ACRES

STATE LAND
EXPENDABLE
EARNINGS

TREASURER'S
FORMULA
DISTRIBUTION

TOTAL
PERMANENT
FUND RECEIPTS

TOTAL
RECEIPTS

8,107,686

77,145,462.85

24,430,529.00

101,575,991.85

264,354,147.79

365,930,139.64

Normal Schools

174,798

97,829.95

32,020.00

129,849.95

57,625.24

187,475.19

Agricultural & Mechanical
Colleges

124,944

70,849.88

143,306.00

214,155.88

10,622.80

224,778.68

Military Institutes

80,168

71,844.77

7,781.00

79,625.77

3.06

79,628.83

School of Mines

123,254

105,772.05

76,972.00

182,744.05

3,040,582.20

3,223,326.25

University Land Code

137,908

464,489.64

171,189.00

635,678.64

70,907.21

706,585.85

University of Arizona
(Act 0f 2/18/1881)

54,218

857,881.63

430,985.00

1,288,866.63

3,034,492.94

4,323,359.57

School for the Deaf
& Blind

82,560

129,374.00

53,809.00

183,183.00

10,934.90

194,117.90

8,885,536

$78,943,504.77

$25,346,591.00

$104,290,095.77

$270,579,316.14

$374,869,411.91

Legislative, Executive
& Judicial Buildings

64,257

70,228.28

75,015.00

145,243.28

6,537.25

151,780.53

State Hospital

71,248

296,613.40

115,826.00

412,439.40

11,168.90

423,608.30

Miners’ Hospital*

95,431

1,590,572.48

123,217.00

1,713,789.48

764,844.58

2,478,634.06

State Charitable, Penal,
and Reformatory

77,140

7,497,922.21

771,500.00

8,269,422.21

1,584,154.76

9,853,576.97

Penitentiary

76,111

844,170.66

76,506.00

920,676.66

71,617.20

992,293.86

9,269,723

$89,243,011.80

$26,508,655.00

$115,751,666.80

$ 273,017,638.83

$388,769,305.63

BENEFICIARIES
Common Schools (K -12)
(Includes County Bonds)

Subtotal Education

TOTAL

*Miners’ Hospital and Miners’ 1929 combined.

4

TOTAL
EXPENDABLE
RECEIPTS

Permanent Fund
•

Record Permanent Fund receipts of $273,017,639 in increased the
total of the Fund to $1,513,454,000 (Book Value) in FY 2005.

•

The Permanent Fund consists of revenues earned from the sale of
State Trust land combined with the sale of minerals and natural
products.

•

The State Treasurer manages the Permanent Fund and invests the
funds in stocks, bonds and other interest bearing securities. The
earnings are transferred, through a formula distribution, to the beneficiaries for their use.

•

•

BOOK VALUE

MARKET VALUE

1,393,206,000

1,562,016,000

Normal Schools

2,006,000

2,288,000

Agricultural & Mechanical Colleges

6,753,000

7,814,000

374,000

432,000

7,936,000

8,484,000

University Land Code

11,258,000

12,628,000

University of Arizona (Act of 2/18/1881)

23,002,000

26,146,000

School for the Deaf & Blind

2,974,000

3,507,000

Legislative,Executive, and Judicial

4,567,000

5,329,000

State Hospital

3,218,000

3,970,000

$1,200

Miners' Hospital*

6,202,000

7,106,000

$1,000

State Charitable,Penal and Reformatory

46,496,000

53,957,000

5,462,000

6,374,000

1,513,454,000

1,700,051,000

Educational institutions including schools (K-12), the Universities
and the School for the Deaf and Blind were the beneficiaries for over
95.6% of the Permanent Fund as of the end of FY 2005.
Due to the growing value of urban Trust land, its strategic location
and an increase in agency resources, the Department estimates that
Trust beneficiaries will continue to see significant revenue growth to
the Permanent Fund in future years.

Permanent Fund Balance
FY 1986 - 2005
$1,600
$1,400

$800

Common Schools (K - 12)

Military Institutes
School of Mines

Penitentiary Grant

$600

TOTAL

$400
$200

*Miners' Hospital and Miners' 1929 conbined.

'04

'02

'00

'98

'96

'94

'92

'90

'88

$0
'86

(Millions)

BENEFICIARY SHARE OF PERMANENT FUND
JUNE 30, 2005

Fiscal Year

5

Expendable Revenue
•

Expendable revenue totaled $115,751,667 in FY 2005 and included
lease revenue from Trust land leases and permits, interest earnings
from sales’ contracts administered by both the Department and the
Treasurer’s formula distribution.

•

Expendable revenues are available to the beneficiaries for use in
their operations during the same year they are generated.

•

The record $89,243,011.80 of expendable revenue the Department
generated was in large part due to the increase balance of Department managed sales’ contracts which increased to $446.3 million
and generated $41.9 million in interest earnings.

•

As a result of the growing value of urban Trust land, its strategic
location and an increase in agency resources, the Department
estimates that Trust beneficiaries will see significant expendable
revenue growth in future years.

BENEFICIARIES
Common Schools (K – 12)
(Including lands
to Retire County Bonds)
Normal Schools
Agricultural and
Mechanical Colleges

TREASURER'S
FORMULA
DISTRIBUTION

24,430,529.00

LEASE AND
SALES CONTRACT
INTEREST

77,145,462.85 *

TOTAL
EXPENDABLE
REVENUE

101,575,991.85

32,020.00

97,829.95

129,849.95
214,155.88

143,306.00

70,849.88

Military Institutes

7,781.00

71,844.77

79,625.77

School of Mines

76,972.00

105,772.05

182,744.05

University Land Code

171,189.00

464,489.64

635,678.64

University of Arizona
(Act of March 18, 1881)

430,985.00

857,881.63

1,288,866.63

53,809.00

129,374.00

183,183.00

25,346,591.00

78,943,504.77

104,290,095.77
145,243.28

$120

School for the Deaf
and Blind

$100

Subtotal Education:

$80

Legislative, Executive &
Judicial Buildings

75,015.00

70,228.28

$60

State Hospital

115,826.00

296,613.40

412,439.40

Miners’ Hospital

123,217.00

1,590,572.48

1,713,789.48

$40

State Charitable,
Penal, and Reformatory

771,500.00

7,497,922.21

8,269,422.21

$20

Penitentiary Grant

76,506.00

844,170.66

920,676.66

26,508,655.00

89,243,011.80

115,751,666.80

TOTAL

$0
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05

(Millions)

Trust Expendable Earnings
FY 1994 - 2005

EXPENDABLE REVENUE BY BENEFICIARY
FY 2005

* The amount for expendable earnings includes the revenue of $16,381,372.51 from the school leases in accordance with
ARS § 37-221, D.

Total Expendable
Treasurer's Distribution
Land Department Earnings

6

Real Estate Accomplishments
• Fiscal Year 2005 was an extremely productive year for the real estate program. Receipts totaled $352.6 million. Of this total, permanent
fund receipts were $267.8 million, expendable receipts were $82.0 million and General Fund receipts were $2.8 million. Several very successful lease and sales auctions contributed to this success.
• The interest payments on the certificate of purchase balances reached
a record $41.9 million in FY 2005. Interest payments are expendable
revenue and are available to the beneficiaries for use in their operations during the same year they are generated.

• Of the total $254.5 million, $8.2 million was from cash sales and was
directly deposited into the Permanent Fund. The balance of just over
$246.3 million was financed through the Department and will be paid off
over time. The beneficiaries will earn interest on the balance at a rate
averaging from 8% to 10% for an average term of seven years. These
interest rates are generally higher than market and the total outstanding
receivable balance from term sales is a record $448.3 million, earning
interest daily. The money earned on this balance will be paid to our beneficiaries over the next
several years. In addiCertificate of Purchase Balance
tion, the remaining principal payments on the
$450
price for the land will be
$400
deposited in the Perma$350
nent Fund in future
$300
years.

• The beneficiaries also received expendable revenues from commercial leases of $20.7 million and rights-of-way leases of $2.7 million.
In addition, $2 million in commercial prepayment revenue and $16.4
million in school facility lease revenue was earned.

• The chart to the right
shows the significant
increase in the outstanding certificate of
purchase balance in recent years due to the
cumulative effect of
several very successful
sales years.

Balance (in millions)

• The Sales & Commercial Leasing Section had an outstanding year, completing 17 auctions resulting in gross sales of $254.5 million. In many of
these auctions there was intense, competitive bidding. The total sales
price was increased by approximately 40% above the appraised value.

• The Department paid approximately 3.0 million in Broker’s commissions in FY 2005. Beginning in 1996, Real Estate Brokers were authorized to represent bidders at State Trust land public auctions by
registering according to Land Department Rules. Commissions are
paid by the successful bidder as a condition of the public auction.
The program has been very successful in bringing more bidders to
the auctions and of increasing the sales prices.

$250
$200
$150
$100
$50

• The strong real estate market statewide created a vigorous demand
for additional infrastructure including public roads, electrical power,
water and sewer. The Rights-of Way Section generated in excess of
$30.1 million in revenue and completed 468 grants for rights-of-way
during the FY 2005.

$0

Fiscal Year

7

Real Estate Accomplishments
Major Auctions
• $23.2 MILLION: Phoenix, September 21, 2004:
Towne Development, Inc., battled Pulte Homes and a luxury community
developer to make the winning bid of $23.2 Million to purchase 41 acres
located on 56th Street north of Deer Valley Road in Phoenix.
• $3 MILLION; Phoenix, December 14, 2004:
International Motor Sports Hall of Fame Member Roger Penske, representing United Auto Scottsdale, made the winning bid to acquire the long term
ground lease of approximately 3.6 acres near Scottsdale Road and Princess Boulevard in Phoenix.
• $36.6 MILLION; Phoenix, December 15, 2004:
After intense bidding, Toll Brothers made the winning bid of $36.6 Million
to purchase 160 acres located at the northwest corner of 56th Street and
Dixileta Drive in North Phoenix. The winning bid was $14.2 Million higher
than the appraised value of $22.4 Million.
• $42 MILLION; Mesa, April 27, 2005:
At what observers said was one of the most extraordinary auctions in Land
Department history, Randall Jackson, representing JP175, LLC, made the
winning bid of $42 Million to purchase 175 acres located at the northwest
corner of Signal Butte Road and Guadalupe Road in Mesa. (See top
photo.)
• $38.2 MILLION; Phoenix, May 11, 2005:
Life Care Services, LLC, based in Des Moines, Iowa, bid $38.2 Million to
purchase 104 acres located at the southwest corner of Tatum Boulevard
and Mayo Boulevard in the master planned community of Desert Ridge.
• $75.2 MILLION; Mesa, June 9, 2005:
Phoenix Land Division, LLC, made the winning bid of $75.2 million to purchase 171 acres called “Mesa Highlands” located at the crossroads of
McKellips Road and Ellsworth Road in Mesa. (See bottom photo.)
• $23.2 MILLION: Phoenix, September 21, 2004: 41 acres located at 56th
Street north of Deer Valley Road was auctioned for $8.5 million over appraised value.

8

Real Estate Accomplishments
• Two major commercial leases were auctioned in FY 2005.
In Phoenix, at the NWC of Scottsdale Road and Princess
Drive, after 7 bids, United Auto Scottsdale won the lease
with a bid of $3.05 million for the land, with rent over the life
of the lease to total $22.8 million. In Cochise County, a
lease for 397 acres was auctioned, with the County as the
successful bidder. A facility for the testing of unmanned
aerial vehicles is planned for the site, which will bring significant revenues for the Trust as well as promote economic
development in this rural area.

Facts and Figures
Land Auctioned FY 2005

Urban
Rural
Total

Arces Sold
1766.3
50.15
1816.45

Total Sales Price Acres Leased*
$253,639,237.00
3.65
$834,250.00
397.65
$254,473,487.00
401.3

Minimum Cumulative
Lease Revenue
$22,824,409.97
$1,057,636.84
$23,882,046.81

REAL ESTATE PROGRAM RESTRUCTURED
SOUTHERN ARIZONA OFFICE OPENED
In FY 2005, the Land Commissioner implemented a restructuring of the real estate
functions of the agency with the goal of increasing the agency’s ability to manage
State Trust land in the best possible way for the benefit of our beneficiaries.
Specifically, the planning, engineering, appraisal and real estate functions of the
Agency were restructured to further improve our ability to plan, engineer, lease and
sell urban State Trust land now and in the future. The Commissioner feels that
these actions will assist the agency in generating tremendous revenue for the Trust.
Under the plan, the Southern Arizona Office was created. This office is headed by
Ron Ruziska and will work toward the long term and short term planning, engineering and disposition of the valuable State Trust land in Tucson, Pima County,
Cochise County, Marana and other parts of Pinal County south of Picacho Peak.
The fast-growing areas in Tucson, particularly the Houghton Road area, are a high
priority for the Department.
To assist in the Department’s ability to manage the Arizona State Trust land that is
located in Central and Northern Arizona that is slated for urban development, the
Commissioner has expanded and improved the functions of planning, engineering
and disposing State Trust land according to the Five Year Plan. The planning and
engineering functions are now incorporated in the Real Estate Division where Jim
Adams will continue as Real Estate Division Director.
Furthermore, the Appraisal Section will become part of the Commissioner's Office
in the future. Stan Toal will continue to head the Appraisal Office.
Finally, the Land Department has received a significant increase in its annual
budget that is specifically designed to enhance our ability to plan, engineer and
lease or sell urban State Trust land. This infusion of funds and positions along with
the opening of a Southern Arizona Office and other structural changes, will, according to Commissioner Winkleman, “Revolutionize the agency and increase our
ability to do the important job. We firmly believe these steps are the best to vault
the agency further into the 21st Century and accomplish our goal of doing our best
for the Trust.”

9

DESERT RIDGE
A 5,400-Acre
Master
PlannedCommunity
Community in North
Phoenix
A 5,400-Acre
Master
Planned
in North
Phoenix

PARCEL 13
PARCEL 13
84 bids were placed for the 41 acre site that is
surrounded
three for
sides
golf course.
84
bids wereon
placed
theby
41aacre
site that The
is
winning bid on
of $23.2
Millionby
represented
an alsurrounded
three sides
a golf course.
mostwinning
58% increase
over Million
the appraised
land
The
bid of $23.2
represented
value.
an
almost 58% increase over the appraised
land value.

The District at Desert Ridge Marketplace Opened
December 2001
Parcels 1E, 1F, and 1G
The District at Desert Ridge Marketplace Opened

DESERT RIDGE DISPOSITIONS
Parcel No. Acres
1A & 1B
780
180
1C
1D
54
1E, F& 1G
332
2A
106
2B
2
3
242
4
23
5
24
6
62
7
91
8
536
9
50
10
189
11
279
12
41
13
40.23
14
104

Sold/Leased
Sold
Leased
Leased
Leased
Leased
Sold
Sold
Sold
Sold
Sold
Leased
Sold
Sold
Sold
Sold
Sold
Sold
Sold

Use
Residential/Golf
Resort Golf
Marriott Resort
Commercial Retail
Sumitomo Sitix
Utility Pump Station
Mayo Hospital
Residential
Middle School
High School
American Express
Residential
Multi-family
Residential
Residential
Residential
Residential
Mixed Use

Date
Sold/Leased
7/7/1993
7/7/1993
7/7/1993
7/7/1993
12/12/1995
12/12/1995
1/3/1996
2/27/1996
2/27/1996
2/10/1998
11/13/2000
4/4/2001
6/24/2003
3/30/2004
5/12/2004
5/27/2004
9/21/2004
5/11/2005

Revenue
$9,360,000
$33,200,000
$45,800,000
$347,400,000
$90,300,000
$57,350
$12,320,000
$1,416,000
$1,654,040
$2,965,000
$486,000,000
$52,900,000
$24,102,500
$49,300,000
$ 100,500,00
$ 32,00,000
$23,200,000
$38,200,000

10

PARCEL 14
26 bids were placed for 104
acres of prime land on the northern boundary of the Reach 11.
The winning bid of 38.2 Million
was placed by Life Care Services, LLC.

Parcel 7: American Express

Natural Resources Accomplishments
• The Natural Resources Division administers all natural resource related leases, Natural Resource Conservation Districts (NRCDs) and any natural resource
issue that affects State Trust land. Leasing categories in the Division include agriculture, grazing, mineral, mineral material, exploration and apiary. Other
areas of Natural Resources administration include water sales, mineral material sales, water rights administration, trespass investigations, recreational permits,
environmental contamination and cultural resources.
• Range Section
° Due to the increased availability of federal funds to grazing lessees
through the US Department of Agriculture’s Farm Bill programs
and state funds through the Arizona Department of Agriculture’s
Crop and Livestock Grant Program,
the section experienced a significant
increase in the number of Applications to Place Improvement and
Land Treatment Applications for
review, environmental and cultural
clearances and recommendations.
• Minerals Section
° Administers five distinct leasing programs as well as providing
mineral resource evaluations and geologic information for land
sales and conservation proposals.
° Continued high metal prices and urban expansion is reflected in the
continued high levels of mineral exploration, aggregate production
and oil & gas leasing activity.
° Revenues from aggregate sales increased 28% to $4.6 million dollars during the fiscal year.

DIVISION

Lease Rentals

Facts & Figures
Acres

Agriculture

420

2,696

24

8,392,106

1,280

Mineral Material
Grazing

Number
of
Leases

180,739

Exploration
Permits

91,105

231

Mineral

11,502

123

374,663

230

Oil & Gas

Number of Registrations
and Water Rights Claims

Certificated Surface
Water Rights

4,308
105

Well Registrations

2,688

Adjudication Statements
of Claimant

7,026

Water Right Registrations

7,405

Grandfathered
Groundwater Rights

11

Agriculture

$3,992,348

Mineral Material
Grazing

242

$196,495
$2,375,066

Exploration Permits
Geothermal

$146,312
$0

Mineral

$26,583

Oil & Gas

Stockpond Registrations

• Natural Resource Conservation Section
° Provided administrative support to 32 NRCD’s and the 20 environmental education centers they sponsor including conducting training on Open Meeting Laws, Strategic Planning and Risk Management Assessments.
° Conducted technical review of leases that impact native plants including the review of 45 plant surveys that resulted in $222,500 of
compensation to the beneficiaries for natural products removed
from Trust land.

NATURAL RESOURCES
DIVISION
REVENUE PRODUCTION

NATURAL RESOURCES

$460,511

TOTAL

$7,197,315
Sale of Products

Public Auction Water Sales

$261,373

Lease Water Charges

$197,149

Mineral Royalties

$32,955

Natural Products

$4,698,798

TOTAL

$5,190,275
Trespass Revenues

Trespass Revenue

$203,865

TOTAL

$203,865

GRAND TOTAL

$12,591,455

Natural Resources Accomplishments

• Water Rights & Agriculture Section
° Executed the domestic Colorado
River contract with the Bureau of
Reclamations for 1,534 acre feet of
fourth-priority water annually.
° Coordinated with Yavapai County
on the finalization of the design for
the modification to the Wineglass
Dam.
° Continues to pursue the Department’s Federal Reserve claim for the
State Trust land in the courts.
° Agriculture rents increased approximately 10% over the previous
fiscal year.

These pieces of Hohokam pottery were reported by a conscientious individual who found them while hiking on
Trust Land in Pinal County. They were removed by a joint effort between ASLD Archaeologist Steve Ross and
John Madsen of the Arizona State Museum. After analysis, they were repatriated to the Gila River Indian Tribe for
reburial.
The Hohokam civilization thrived between 300 BC to AD 1450. What remains of their cultural today is one of the
most extensive canal systems in the world. They left behind magnificent Red-on-Buff Ceramic pots. Around 1200
AD, the pottery changed styles and became a wonderful combination of red, white, and black ceramics called
polychrome.

12

• Environmental Resources and Trespass Section
° Conducted 29 clean-up projects utilizing more than 2,104 volunteer
hours and resulting in 105 tons of
trash and 2,779 tires being removed
from State Trust land.
° Collected $243,777 from trespass
and/or unauthorized use penalties in
11 different case actions. An Arizona corporation and two individuals were convicted of felonies
related to unauthorized removal of rock products from 20 acres of
Trust land.
° Oversaw the completion of remediation of a pesticide contaminated
airstrip in Cochise County and remediation of land surrounding a
former gold mining operation in the Phoenix area.

Forestry Accomplishments
• The State Forester (the Forestry Division Director) has the authority to prevent and suppress
wildland fires on approximately 30 percent of
land throughout the
State; more than
nine million acres of
State Trust land and
nearly 13 million
acres of private land
outside incorporated
municipalities. The
Land Department mobilizes firefighters and
equipment to and from all areas of Arizona and
other states for fire and non-fire emergencies.
• The Forestry Division responded to 1,231 wildland fires; 857 were State responsibilities and
374 were in support of federal and tribal agencies. Although 94 percent of all Land Department
fires were controlled at less than 100 acres,
67,567 acres were burned on State and private
lands during the year.
• The Division maintains cooperative agreements
with more than 250 local and rural fire departments, other State and Federal agencies, and private companies to control wildfires on State and
private lands.
• The Division also sponsored 44 courses in basic
and intermediate wildland fire suppression strategies and tactics for approximately 1,200 students
from over 135 rural fire departments.

INMATE FIREFIGHTER PROGRAM
Governor Napolitano, with the support of the
State Legislature, has taken the initiative to
significantly expand the State’s Inmate Firefighter Program. There are currently 15 twentyperson Fire/Fuels Crews; 14 are all male crews
and one crew is staffed by all-female inmates.
These crews are
based out of the ten
Arizona Department
of Corrections Prisons Complexes located around the
State. The Fort
Grant,
Douglas,
Lewis and Yuma prison facilities each host one
crew. Four prisons each have two crews: Tucson, Florence, Globe and the Perryville Prison.
The Perryville facility houses the one female
crew and one of the all-male crews. The Winslow Prison Complex, including the smaller

“satellite” facility at Springerville, maintains
three crews.
The inmates selected for these Fire/Fuels Crews
are the lowest custody inmates in the system.
The inmates volunteer for this special work
assignment, and all
go through a comprehensive review
prior to being allowed into the program. Each of the
inmates must successfully complete
the standard firefighter training and physical
fitness testing prior to being allowed to go on
fire assignment. When these crews are not involved in fire fighting activities they work various thinning and brush abatement projects to
protect our communities at risk from wildfires.

Summary of Rural Fire and Volunteer Fire Assistance Grants
RFA Grant

VFA Grant

Annual Summary

Year

Number of
Projects

Dollars

Number of
Projects

Dollars

Number of
Projects

Dollars

2001
2002
2003
2004
2005

33
37
33
42
38

$413,526
$415,000
$482,000
$592,000
$580,000

32
26
21
24
22

$265,000
$300,000
$298,000
$300,000
$283,000

65
63
54
66
60

$678,526
$715,000
$780,000
$892,000
$863,000

TOTAL

183 $2,482,526

13

125 $1,446,000

308 $3,928,526

Forestry Accomplishments
• The Division provides technical, educational, and financial assistance to rural communities and private landowners in the management of their forested
lands. Forest Stewardship Plans are written and implemented by natural resource professionals to guide landowners in reducing the risk of wildfire, insects
and disease, protecting soil and water quality, providing timber and other forest products, improving fish and wildlife habitat, and maintaining the landscape’s natural beauty. The Department supports rural fire departments and communities with State Fire Assistance Grants, Forest Health and Fire Abatement Grants, and Rural and Volunteer Fire Assistance Grants.
• The Division’s Urban and Community Forestry Program
SUMMARY OF COMMUNITY ASSISTANCE, 2001 - 2005
provides technical assistance and grants to Arizona cities
and towns. Staff coordinates
the Community Challenge
Acres Homes
Dollars
Firewise
Fuel
Grant Program, the Arizona
Grant
Year Number Provided Plans Programs Workshops Treatments Treated Protected
Arbor Day celebration and
poster contest. They work
State Fire Assistance
closely with the Arizona Com2001
21 $1,190,500 773
126
131
117
4,789
2,281
munity Tree Council, participating in trade shows, con2002
38 $2,126,215
60
78
50
24
6,537
1095
sumer education programs, and
2003
19 $1,458,222
21
13
6
8
4825
1462
workshops. Arborists study
2004
29 $2,584,532
29
3
12
1507
889
classes are also coordinated by the staff and the Tree
2005
13 $2,375,574
15
1
2
4
140
84
Council, providing training for tree care professionals.
Total SFA's
120 $9,735,043 898
221
189
165 17,798
5,811
• The Division refurForest Health Protection
bished and distributed
hand-held radios, as well
2003
7 $1,089,050
7
2
1
4
1725
301
as nine excess federal
fire engines valued at
Fire Hazard Abatement
$326,916, to cooperating
2003
18 $1,995,290
20
6
6
7
1,295
729
rural fire departments.
2004
3 $1,498,324
3
Currently, there are 155
Annual Summary
refurbished fire fighting
vehicles in rural fire departments statewide. The Depart2001
21 $1,190,500 773
126
131
117
4,789
2,281
ment has contracts for
2002
38 $2,126,215
60
78
50
24
6,537
1,095
future retrofitting of
2003
44 $4,542,562
48
21
14
19
9,092
2,567
three
heavy
trucks.
2004
32 $4,082,856
32
10
18
2,307
889
These trucks, along with
the equipment already
2005
13 $2,375,574
15
1
2
4
140
84
provided to cooperating
5 Year Summary
148 $14,317,707 928
236
197
182 22,865
6,916
fire departments, are
valued
at
nearly
$4,613,118.

14

Board of Appeals

CURRENT BOARD MEMBERS
• Sanders K. Solot
Tucson
Represents the First District, consisting of Pima,
Santa Cruz, Cochise, Graham and Greenlee
counties.
• Kathleen M. Holmes
Scottsdale
Member-at-Large.

Arizona Revised Statute §37-215 requires all land sales and commercial leases to be
approved by the Board of Appeals, which also serves as an Administrative Review
Board.
Applicants and lessees may appeal to the Board a final decision of the State Land Commissioner that relates to appraisals and classifications.
The State Land Department Board of Appeals consists of five board members selected
by the Governor and confirmed by the Senate for six-year terms. Three members represent the 15 counties in the State, which are divided into three districts. Two members
hold positions-at-large.

• William R. Gray
Scottsdale
Represents the Second District consisting of Maricopa, Pinal, Gila, Yuma and La Paz counties.
• Norman R. Brown, Chair
St. Johns
Represents the Third District consisting of Mohave,
Yavapai, Coconino, Apache and Navajo counties.
• Jolene U. Dance
Phoenix
Member-at-Large.

The Board meets once a month unless special circumstances warrant additional sessions. Meetings are usually held in Phoenix.
During the fiscal year, the Board approved 45 commercial leases, including one longterm lease for 65 years, 91 rights-of-way sales appraisals; and 8 land sales appraisals,
eight of which were urban land sales.
Eleven new appeals were filed with the Board. Two appeals modified the Commissioner's decision. Two appeals sustained the Commissioner's decision. Five appeals
were withdrawn and two were dismissed by the Board.

15

State Trust Land Uses

The State Land Department manages 9.3 million acres
of Trust land.
•

9,091,846 acres of the surface are under 9,876
leases and other contracts.

•

479,966 acres of the subsurface are under 608
leases and other contracts.

STATE TRUST LAND USES

SURFACE
Rights-of-Way
Grazing
Commercial
Commercial School Leases
Agricultural
Use Permits
U.S. Government
Homesite
Institutional
Recreational
Subtotal (Leases)
SUBSURFACE
Mineral
Mineral Exploration
Mineral Materials
Oil & Gas
Subtotal (Leases)
TOTAL LEASES

16

NO. OF
LEASES
7,094
1,280
313
16
420
527
159
11
10
46
9,876

% OF
LEASES
71.83
12.96
3.17
0.16
4.25
5.34
1.61
0.11
0.10
0.47
100

123
231
24
230
608

20.23
37.99
3.95
37.83
100

10,484

TOTAL
% OF
ACREAGE ACREAGE
138,528
1.52
8,392,106
92.30
81,314
0.89
864
0.01
180,739
1.99
232,831
2.56
18,274
0.20
64
0
12,892
0.14
34,235
0.38
9,091,846
100

11,502
91,105
2,696
374,663
479,966
9,571,812

2.40
18.98
0.56
78.06
100

State Trust Land - Surface Management Responsibility

i
N

BLM
Forest Service
Indian Trust
Military
Nat’l Parks/Monuments
Other
Parks & Recreation
Private
State Trust
Wildlife Refuge
Cities

Produced by the Arizona State Land Department, GIS Section,
March 2006. The Arizona State Land Department makes no
warranties, implied or expressed, with respect to the information
shown on this map.

17

State Trust Land within Each County

Land Ownership in Arizona
The State of Arizona contains an estimated 72,931,000 acres,
or approximately 113,417 square miles, making it the sixth
largest state in the United States. The surface land ownership
in Arizona can be classified in four basic categories.

COUNTY

ACRES

Apache

653,300

Cochise

1,371,104

Coconino

1,125,331

Gila

496,321

Greenlee

172,104

La Paz

254,411

Maricopa

648,334

Mohave

565,355

Navajo

370,169

Pima

861,056

Pinal

1,206,189

Santa Cruz
Yavapai
Yuma
Misc*
TOTAL
The percentages are estimates derived from digitized map data. The category
called Private is overestimated due to the inclusion of small amounts of land
owned by local, State, and Federal agencies.

31,231

Graham

61,154
1,264,275
186,849
2,540
9,269,723

*Trust lands located in California or Nevada due to
realignment of Colorado River

18

Management Team

Jim Adams
Director
Real Estate Division

Lynn Larson
Director
Administration &
Resource Analysis
Division

Bill Dowdle
Director
Natural Resources
Division

Ron Ruziska
Director
Southern Arizona
Real Estate Division

Richard Oxford
Director
Land Information,
Title, & Transfer
Division

Kirk Rowdabaugh
State Forester
Forestry Division

19

Fund and Beneficiary Summary
In 2005, a total of $388,769,306 in receipts were earned for the beneficiaries. Of this amount, $273,017,639 was deposited in the Permanent Fund for
the beneficiaries. The Permanent Fund is managed by the State Treasurer. The remaining $115,751,667 in receipts were expendable and were distributed to the beneficiaries for use in their operations. Expendable receipts are comprised of lease revenues, interest on the outstanding sales balance and
the Treasurer’s formula distribution. The table below indicates the number of acres remaining for each grant along with a breakdown on how the expendable receipts are distributed to the beneficiaries.

TRUST
ACRES

GRANT

BENEFICIARY

1st $72.3 million of expendable receipts
8,107,686

Receipts over $72.3 million
174,798
124,944

Classroom Site Fund

Normal Schools
Agricultural & Mechanical Colleges

80,168

Military Institutes

123,254

School of Mines

137,908

University Land Code

Board of Regents
to
Distribute to Universities

54,218

University of Arizona (Act 0f 2/18/1881)

82,560

School for the Deaf & Blind

School for the Deaf & Blind

64,257

Legislative, Executive & Judicial Buildings

Legislature, Executive & Judicial Branch

71,248

State Hospital

State Hospital

95,431

Miners’ Hospital (2 Grants)

Pioneers' Home

77,140

State Charitable, Penal, and Reformatory

76,111

Penitentiary

9,269,723

State Aid Formula for K - 12

Common Schools (K - 12) (Includes County Bonds)

Department of Corrections

TOTAL

20

50% Pioneers' Home
25% Department of Corrections
25% Department of Juvenile Corrections

Beneficiary Summary - Common Schools (K-12)
• Public education is by far the largest beneficiary of Trust land managed by the
Department. Congress granted two sections of each township to common schools
when Arizona became a territory and another two sections when Arizona became
a state. The State was able to select Federal lands equal to the sections that could
not be granted due to the establishment of Federal forests, parks and Indian reservations. Today, approximately 8.1 million acres remains in the Trust for common
schools.
• In FY 2005, a record $264.4
million from sales and royalties
was deposited in the Permanent
Fund for common schools
bringing the total balance to
$1,393,206,000.

COMMON SCHOOLS (K-12)
ACRES AND INCOME - FY 2005
SURFACE LEASES
Agriculture
Commercial
Grazing
Homesite
Rights-of-Way
Use Permits
Institutional Taking
U.S. Government
Other
TOTAL SURFACE

ACRES
131,881
23,608
7,392,843
49
167,140
185,768
5,406
17,434
4,718
7,928,848

INCOME
$2,908,132.06
$14,916,373.71
$2,026,620.34
$16,057.00
$2,411,494.56
$1,606,690.99
$127,152.84
$150,366.98
$86,679.06
$24,249,567.54

11,163
80,744
2,212
336,439
430,559

$25,453.27
$128,762.38
$150,032.99
$428,669.57
$732,918.21

SUBSURFACE LEASES
Mineral
Prospecting Permit
Mineral Material
Oil & Gas
TOTAL SUBSURFACE

• In FY 2005, $101.6 million was
generated in expendable receipts from leases, interest on
the outstanding sales balance
and from the Treasurer’s formula distribution. Of this total,
$16.4 million was transferred to
the School Facilities Board,
$72.3 million was distributed
through the School Aid Formula
and $12.9 million was deposited
into the Classroom Site Fund
which will be used for teacher
raises, classroom size reduction and dropout prevention programs.

Penalty & Interest
Sales Interest
School Leases
Treasurer's Formula Distribution
GRAND TOTAL EXPENDABLE
Permanent Fund Receipts
Permanent Fund Balance

• The location of common school grant lands are shown in the above map. As a
result of the large number of acres that are strategically located around urban
areas, substantial revenues are expected to be generated in future years on behalf
of the schools.

21

$198,545.35
$35,583,059.24
$16,381,372.51
$24,430,529.00
$101,575,991.85
$264,354,147.79
$1,393,206,000.00

Beneficiary Summary - Common Schools (K-12)

Classroom Site Fund
Actual

Proposition 310 (passed by voters in the 2000 election) created a Classroom Site Fund
whereby particular sources of funds, including revenue from the fiduciary management
of State Trust land, are directed to fund such items as teacher salaries, classroom size
reduction and dropout prevention programs. According to Proposition 301, the first
$72.3 million in expendable revenue for common schools is used to fund the basic state
aid formula which funds education. Expendable revenue in excess of $72.3 million is
deposited into the Classroom Site Fund.
Com m on Schools Expendable
Earnings FY 1994 - 2005

Fiscal Year

2002

2003

2004

2005

Permanent Fund Revenue

46.7

77.5

131.3

264.4

Treasurer's Distribution

54.8

53.9

18.6

24.4

Rent & Interest Received

31.1

39.2

46.3

60.8

Expendable Received

85.9

93.1

64.9

85.2

(72.3)

(72.3)

(72.3)

(72.3)

13.6

20.8

Base Year Amount

$120

Classroom Site Fund

$100

12.9

Classroom Site Fund
FY 2002 - 2005

$80

$100.0
$90.0
$80.0

$60

(Millions)

$70.0
$40

$20

$60.0
$50.0
$40.0
$30.0
$20.0
$10.0

Expendable Earnings
Leases & Sales Interest

'05

'04

'03

'02

'01

'00

'99

'98

'97

'96

'95

$0

'94

(Millions)

-

$0.0
2002

2003

2004

Total Common School Expendable

Treasurer's Formula Distribution

Classroom Site Fund Distribution

22

2005

Beneficiary Summary - University Grants
• Arizona’s three universities (Arizona State University, Northern
Arizona University, and University of Arizona) are the beneficiaries of six Trust grants.

TOTAL UNIVERSITY GRANTS
FY 2005

• The total expendable revenue that was distributed to the Board
of Regents and then to the universities to fund their operations
was $2.5 million in FY 2005. An additional $6.2 million was
earned and added to the permanent funds for the six grants
bringing the total permanent fund balance to $51.3 million.

SURFACE LEASES
Agriculture
Commercial
Grazing
Homesite
Rights-of-Way
Use Permits
Institutional Taking
U.S. Government
Other
TOTAL SURFACE

• The Board of Regents distributes the expendable earnings from
the six grants to the University of Arizona, Northern Arizona University and Arizona State University as follows:

Board of Regents
Distribution of Trust Revenues to the Universities
Grant

Distribution

Agricultural & Mechanical Colleges

1/2 to UofA and the other 1/2 split
between the 3 Universities based on
Engineering Credit hours

Military Institutes Grant

Split between the 3 Universities
based on Credit hours

University Land Code

Split between the 3 Universities
based on Credit hours

Normal Schools

1/3 to each University

UofA 1881 Grants

UofA

School of Mines Grant

UofA

SUBSURFACE LEASES
Prospecting Permit
Mineral Material
Oil & Gas
U.S. Government
TOTAL SUBSURFACE
Penalty & Interest
Sales Interest
Treasurer's Formula Distribution
GRAND TOTAL EXPENDABLE
Permanent Fund Receipts
Permanent Fund Balance

23

ACRES
15,264
51,480
599,608
6
49,682
15,759
5,151
299
540
737,789

INCOME
$266,650.62
$673,842.45
$206,570.67
$7,653.00
$105,229.80
$67,064.26
$891.73
$3,600.02
$122,845.00
$1,454,347.55

4,565
260
31,001
115
35,941

$8,571.93
$16,480.09
$29,373.22
$0.00
$54,425.24
$4,307.79
$155,587.34
$862,253.00
$2,530,920.92
$6,214,233.45
$51,329,000.00

Dr. Mitch McClaran, U of A, discusses SRER soils
issues with students

The Santa Rita Experimental Range (SRER),
established in 1903 by the U.S. Forest Service,
has been continuously used for ecological and
rangeland research for over 100 years. The
50,000 + acre SRER was transferred to the State's
Trust land program in 1990. Research on the
SRER is administered by the University of Arizona
College of Agriculture. The map above shows the
location of University Grant lands.

24

Beneficiary Summary - University Grants

NORMAL SCHOOLS GRANT

AGRICULTURAL & MECHANICAL COLLEGES

MILITARY INSTITUTES

ACRES AND INCOME - FY 2005

ACRES AND INCOME - FY 2005

ACRES AND INCOME - FY 2005

SURFACE LEASES

ACRES

INCOME

SURFACE LEASES

ACRES

INCOME

SURFACE LEASES

ACRES

INCOME

Agriculture

165

$3,385.31

Agriculture

251

$2,083.43

Agriculture

480

$480.00

Commercial

22,539

$10,588.80

Commercial

10,172

$1,278.28

Commercial

1,935

$35,929.00

145,249

$49,657.28

Grazing

107,310

$37,147.38

Grazing

76,746

$31,750.83

15,655

$1,911.54

40

$1,439.60

94,856

$71,510.97

Prospecting Permit

80

$160.00

TOTAL SUBSURFACE

80

$160.00

Grazing
Rights-of-Way

2,644

$7,801.48

Home Site

2

$2,500.00

Rights-of-Way

Use Permits

3,847

$5,285.88

Rights-of-Way

2,339

$7,446.55

Use Permits

Institutional Taking

2,721

$0.00

Use Permits

2,918

$11,329.96

184

$3,600.02

Institutional Taking

1,917

$0.00

177,348

$80,318.77

U.S. Government

86

$0.00

U.S. Government
TOTAL SURFACE

Other
SUBSURFACE LEASES
Prospecting Permit
Mineral Material

$751.46

160

$12,080.09

Oil & Gas

1,672

$4,323.13

TOTAL SUBSURFACE

1,952

$17,154.68

0

$195.00
$61,980.60

Prospecting Permit

60

$120.00

Mineral Material

20

$1,200.00

7,421

$7,420.94

86

$0.00

Permanent Fund Receipts

$3.06

7,587

$8,740.94

Permanent Fund Balance

$374,000.00

Penalty & Interest

SUBSURFACE LEASES

Oil & Gas
Penalty & Interest
Sales Interest

$326.68
$29.82

Treasurer’s Formula Distribution

$32,020.00

GRAND TOTAL EXPENDABLE

$129,849.95

U.S. Government
TOTAL SUBSURFACE
Penalty & Interest

$122.15

Sales Interest
Permanent Fund Receipts

$57,625.24

Permanent Fund Balance

$2,006,000.00

SUBSURFACE LEASES

124,995

TOTAL SURFACE
120

TOTAL SURFACE

$6.19

Treasurer’s Formula Distribution

$143,306.00

GRAND TOTAL EXPENDABLE

$214,155.88

Permanent Fund Receipts

$10,622.80

Permanent Fund Balance

$6,753,000.00

25

$173.80

Treasurer’s Formula Distribution

$7,781.00

GRAND TOTAL EXPENDABLE

$79,625.77

Beneficiary Summary - University Grants

SCHOOL OF MINES

UNIVERSITY LAND CODE

UNIVERSITY OF ARIZONA - 1881

ACRES AND INCOME - FY 2005

ACRES AND INCOME - FY 2005

ACRES AND INCOME - FY 2005

SURFACE LEASES

ACRES

INCOME

2,485

$36,469.12

Agriculture
Commercial

Agriculture
Commercial

8,483

$8,505.50

111,207

$37,464.72

Rights-of-Way

1,167

$6,627.71

Use Permits

1,286

$1,050.52

Grazing

U.S. Government
TOTAL SURFACE

17

$0.00

124,644

$90,117.57

SURFACE LEASES

ACRES

INCOME

4,776

$53,977.27

Agriculture
Commercial

8,238

$265,770.16

117,681

$38,415.73

Grazing

Rights-of-Way

2,672

$42,792.32

Home Site

Use Permits

5,518

$26,829.40

Rights-of-Way

107

$891.73

8

$0.00

Grazing

Institutional Taking
U.S. Government
Other

SUBSURFACE LEASES

TOTAL SURFACE

Prospecting Permit

1,271

$2,541.36

0

$0.00

12,393

$12,177.26

17

$0.00

13,681

$14,718.62

Mineral Material
Oil & Gas
U.S. Government
TOTAL SUBSURFACE

540

$15,400.00

139,541

$444,076.61

Sales Interest

$18.91
$76,972.00

GRAND TOTAL EXPENDABLE

$182,744.05

Permanent Fund Receipts

$3,040,582.20

Permanent Fund Balance

$7,936,000.00

INCOME

7,107

$170,255.49

112

$351,770.71

41,415

$12,134.73

4

$5,153.00

25,205

$38,650.20

2,151

$21,128.90

406

$0.00

Use Permits
Institutional Taking
U.S. Government

4

$0.00

Other

0

$107,250.00

76,405

$706,343.03

80

$3,200.00

120

$119.99

TOTAL SURFACE
Prospecting Permit

3,034

$4,999.11

SUBSURFACE LEASES

Oil & Gas

9,394

$5,331.90

Mineral Material

U.S. Government

8

$0.00

12,436

$10,331.01

$916.95

Treasurer’s Formula Distribution

ACRES

SUBSURFACE LEASES

TOTAL SUBSURFACE
Penalty & Interest

SURFACE LEASES

Oil & Gas
U.S. Government
TOTAL SUBSURFACE

Penalty & Interest

4

$0.00

204

$3,319.99

$334.92

Sales Interest

$9,747.10

Penalty & Interest

$2,433.29

Treasurer’s Formula Distribution

$171,189.00

Sales Interest

$145,785.32

GRAND TOTAL EXPENDABLE

$635,678.64

Treasurer’s Formula Distribution

$430,985.00

GRAND TOTAL EXPENDABLE
Permanent Fund Receipts

$70,907.21

Permanent Fund Balance

$11,258,000.00

26

$1,288,866.63

Permanent Fund Receipts

$3,034,492.94

Permanent Fund Balance

$23,002,000.00

Beneficiary Summary - Other
• The remaining six Trust grants have as their beneficiaries the School for the Deaf & Blind, the Legislative, Executive and Judicial Buildings, the State Hospital,
the Pioneers’ Home, the Department of Juvenile Corrections and the Department of Corrections. These six grants were authorized in the Enabling Act and
received 100,000 acres. A chart showing the connection between the Grants and the beneficiaries is provided below.
• The Pioneers’ Home received a total of $5,848,501 in expendable receipts and $1,556,922 in Permanent Fund receipts in FY 2005.
• The Department of Juvenile Corrections received a total of $2,067,356 in expendable receipts and $396,039 in Permanent Fund receipts in FY 2005.
• The Department of Corrections received a total of $2,988,032 in expendable receipts and $467,656 in Permanent Fund receipts in FY 2005.

Beneficiary
Grant
School for Deaf & Blind ........................................ School for Deaf & Blind
Legislative, Executive & Judicial Buildings .......... Legislature, Executive & Judicial Branch
State Hospital......................................................... State Hospital
Miners’ Hospital (2 Grants) ................................... Pioneers’ Home
State Charitable, Penal & Reformatory.................. 50% Pioneers’ Home
25% Dept. of Juvenile Corrections
25% Dept. of Corrections
Penitentiary ............................................................ Dept. of Corrections

Arizona State School for the Deaf and
the Blind - Tucson Campus

Arizona Pioneers’ Home
Prescott, Arizona

27

Beneficiary Summary - Other

SCHOOL FOR THE DEAF & BLIND

LEGISLATIVE, EXECUTIVE, & JUDICIAL BUILDINGS

STATE HOSPITAL

ACRES AND INCOME - FY 2005

ACRES AND INCOME - FY 2005

ACRES AND INCOME - FY 2005

SURFACE LEASES

ACRES

INCOME

SURFACE LEASES

ACRES

INCOME

SURFACE LEASES

ACRES

INCOME

Agriculture

2,819

$60,219.09

Agriculture

2,180

$22,233.89

Agriculture

5,487

$90,282.25

Commercial

1,453

$19,932.44

Commercial

6

$19,800.00

Commercial

270

$168,344.58

72,580

$25,593.18

Grazing

56,406

$20,073.99

Grazing

58,121

$20,882.27

Rights-of-Way

1,170

$12,312.96

Rights-of-Way

1,589

$7,335.68

Rights-of-Way

1,016

$5,725.26

Use Permits

5,914

$3,486.09

Use Permits

5,062

$1,344.50

Use Permits

4,921

$7,942.06

Institutional Taking

1

$1,136.83

U.S. Government

Institutional Taking

80

$1,557.96

U.S. Government

32

$0.00

U.S. Government

108

$0.00

83,968

$122,680.59

70,004

$294,734.38

60

$970.00

Grazing

TOTAL SURFACE

TOTAL SURFACE

92

$0.00

65,335

$70,788.06

TOTAL SURFACE
SUBSURFACE LEASES
Prospecting Permit

SUBSURFACE LEASES
Prospecting Permit
Oil & Gas
U.S. Government
TOTAL SUBSURFACE

160

$320.00

6,142

$6,102.45

32

$0.00

6,334

$6,422.45

Oil & Gas
TOTAL SUBSURFACE
Penalty & Interest

Sales Interest

$270.96
$0.00

Treasurer’s Formula Distribution

$53,809.00

GRAND TOTAL EXPENDABLE

$183,183.00

Permanent Fund Receipts

$10,934.90

Permanent Fund Balance

$2,974,000.00

$1,678.00

0

($2,365.76)

639

($687.76)
$127.98

Sales Interest
Penalty & Interest

639

SUBSURFACE LEASES
Mineral
Oil & Gas

440

$440.00

U.S. Government

108

$0.00

TOTAL SUBSURFACE

608

$1,410.00

$0.00

Treasurer's Formula Distribution

$75,015.00

GRAND TOTAL EXPENDABLE

$145,243.28

Permanent Fund Receipts

$6,537.25

Permanent Fund Balance

$4,567,000.00

28

Penalty & Interest

$469.02

Treasurer's Formula Distribution

$115,826.00

GRAND TOTAL EXPENDABLE

$412,439.40

Permanent Fund Receipts

$11,168.90

Permanent Fund Balance

$3,218,000.00

Beneficiary Summary - Other

MINERS' HOSPITAL*

STATE CHARITABLE, PENAL, & REFORMATORY

PENITENTIARY

ACRES AND INCOME - FY 2005

ACRES AND INCOME - FY 2005

ACRES AND INCOME - FY 2005

SURFACE LEASES

ACRES

INCOME

Agriculture

13,845

$371,161.15

Agriculture

3,997

$83,108.97

600 $1,043,013.93

Commercial

3,380

$1,046,964.43

63,175

$26,021.02

Commercial
Grazing

73,781

Home Site

$23,073.57

SURFACE LEASES

ACRES

Grazing

INCOME

SURFACE LEASES

ACRES

INCOME

Agriculture

4,717

$185,142.84

Commercial

478

$571,463.98

65,932

$23,230.73

Grazing

8

$21,405.00

Rights-of-Way

2,375

$81,861.02

Rights-of-Way

1,144

$12,102.30

Rights-of-Way

7,243

$21,314.89

Use Permits

6,508

$74,464.99

Use Permits

5,783

$50,856.53

Use Permits

3,086

$24,014.68

Institutional Taking

475

$58,019.47

Institutional Taking

1,778

$0.00

1

$899.17

168

$0.00

Institutional Taking
U.S. Government
TOTAL SURFACE

98,733 $1,504,882.39

U.S. Government

117

$0.00

U.S. Government

Other

393

$0.00

TOTAL SURFACE

80,420

$1,370,439.90

160

$120.00

TOTAL SURFACE

5

$0.00

79,837

$842,796.38

990

$1,065.72

Oil & Gas

0

($2,339.34)

U.S. Government

5

$0.00

995

($1,273.62)

SUBSURFACE LEASES
Mineral

SUBSURFACE LEASES
Mineral
Prospecting Permit
Mineral Material
Oil & Gas
U.S. Government
TOTAL SUBSURFACE

119

$39.76

4,007

$5,914.42

230

$20,239.91

0

($9.23)

168

$0.00

4,524

$26,184.86

Mineral Material

49

$9,742.01

Oil & Gas

640

$639.72

U.S. Government

117

$0.00

TOTAL SUBSURFACE

966

$10,501.73

Sales Interest
Treasurer’s Formula Distribution
GRAND TOTAL EXPENDABLE

Penalty & Interest

$5,822.93
$6,111,157.65

$5,120.80

Treasurer’s Formula Distribution

$54,384.43

GRAND TOTAL EXPENDABLE

$8,269,422.21

Permanent Fund Receipts

$1,584,154.76

Permanent Fund Balance

$46,496,000.00

$771,500.00

$123,217.00
$1,713,789.48

Permanent Fund Receipts

$764,844.58

Permanent Fund Balance

$6,202,000.00

TOTAL SUBSURFACE
Penalty & Interest

Sales Interest
Penalty & Interest

Prospecting Permit

*Miners' Hospital and Miners' 1929 combined

29

Sales Interest

$2,647.90
$0.00

Treasurer’s Formula Distribution

$76,506.00

GRAND TOTAL EXPENDABLE

$920,676.66

Permanent Fund Receipts

$71,617.20

Permanent Fund Balance

$5,462,000.00

Financial Schedules

Receipts by Category .................................................................31
Rental Acreage and Receipts.....................................................32
Treasurer’s Formula Distribution ................................................33
State Trust Land Acreage by Beneficiary...................................34
Auctions of Leases with and without Preferred Right.................35

30

Financial Schedules
RECEIPTS BY CATEGORY - FY 2005

Common Schools (K - 12)
Normal Schools
A&M Colleges
Military Institutes
School of Mines
University Land Code
U of A (Act of 2/18/1881)
School for the Deaf & Blind
Leg.,Exec & Judicial
State Hospital
Miners' Hospital*
St Char.,Pen. & Ref
Penitentiaries
School Leases
Commercial Prepayments
Total Schools & Institutions

ROYALTY

SALES
PRINCIPAL

4,562,976.79
53,657.49
8,222.80
3.06
2,539.20
0.00
179,700.37
1,351.90
6,537.25
11,168.90
80,391.43
212,180.44
71,545.20
0.00
0.00
5,190,274.83

259,791,171.00
3,967.75
2,400.00
0.00
3,038,043.00
70,907.21
2,854,792.57
9,583.00
0.00
0.00
684,453.15
1,371,974.32
72.00
0.00
0.00
267,827,364.00

0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00

5,190,274.83

267,827,364.00

SALES
INTEREST

LEASE
RENTAL

PENALTY &
INTEREST

OTHER
RECEIPTS

TOTAL

35,583,059.24 24,982,485.75
29.82
97,473.45
6.19
70,721.54
0.00
71,670.97
18.91
104,836.19
9,747.10
454,407.62
145,785.32
709,663.02
0.00
129,103.04
0.00
70,100.30
0.00
296,144.38
54,384.43 1,531,067.25
6,111,157.65 1,380,941.63
0.00
841,522.76
0.00 16,381,372.51
0.00
0.00
41,904,188.66 47,121,510.41

198,545.35
326.68
122.15
173.80
916.95
334.92
2,433.29
270.96
127.98
469.02
5,120.80
5,822.93
2,647.90
0.00
0.00
217,312.73

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,001,859.86
2,001,859.86

325,118,238.13
155,455.19
81,472.68
71,847.83
3,146,354.25
535,396.85
3,892,374.57
140,308.90
76,765.53
307,782.30
2,355,417.06
9,082,076.97
915,787.86
16,381,372.51
2,001,859.86
364,262,510.49

13,808.69
3,450.22
49,259.50
0.00
66,518.41
1,200.00

60.32
47.48
66.74
0.00
174.54
0.00

0.00
0.00
0.00
2,770,106.93
2,770,106.93
0.00

13,869.01
3,497.70
49,326.24
2,770,106.93
2,836,799.88
1,200.00

41,904,188.66 47,189,228.82

217,487.27

4,771,966.79

367,100,510.37

GENERAL FUND
F.E.M.A Lands
Farm Loan Lands
Navigable Streambeds
Fees: Lease,Sale & Misc
Total General Fund
Riparian Trust Fund
TOTAL RECEIPTS

0.00
0.00
0.00
0.00
0.00
0.00

*Miners' Hospital and Miners' 1929 combined.

31

RENTAL ACREAGE AND RECEIPTS
FY 2005
BY TYPE OF LEASE
SURFACE LEASES
Agriculture
Commercial
School Leases
Grazing
Homesite
Rights-of-Way
Use Permits
Institutional Taking
U.S. Government
Other
TOTAL SURFACE
SUBSURFACE LEASES
Mineral
Prospecting Permit
Mineral Material
Oil and Gas
TOTAL SUBSURFACE
NON-LEASE REVENUES
Penalty & Interest
Sales Interest
Royalty
Land Sales Principal
Rights-of-Way Sales Principal
Commercial Prepayments
Fees
TOTAL NON-LEASE REVENUES

RECEIPTS
3,992,347.62
18,474,020.52
16,381,372.51
2,375,065.99
45,115.00
2,671,108.94
1,867,148.07
189,658.00
153,967.00
209,524.06
$46,359,327.71

11,502
91,105
2,751
374,663
480,021

26,583.03
146,312.45
196,495.00
460,510.63
$829,901.11

217,487.27
41,904,188.66
5,190,274.83
240,365,929.45
27,461,434.55
2,001,859.86
2,770,106.93
319,911,281.55

GRAND TOTAL
*

ACRES
180,739
81,314
*
8,392,106
64
232,084
232,831
12,892
18,274
5,651
9,155,956

$367,100,510.37

The acres for School Leases are included in the total for Commercial acres.

32

Financial Schedules

TREASURER'S FORMULA DISTRIBUTION*

INCREASE
YEAR ENDING JUNE 30
FY 2004
FY 2005 (DECREASE)
Common Schools (K - 12)

MAY 12, 1912
TO DATE

18,565,352

24,430,529

5,865,177

958,976,624

Normal Schools Grant

25,835

32,020

6,185

2,212,875

Agricultural & Mechanical Colleges

70,016

143,306

73,290

7,398,415

Military Institutes Grant

5,589

7,781

2,192

1,150,348

School of Mines Grant

18,366

76,972

58,606

6,170,093

University Land Code

155,432

171,189

15,757

9,721,290

University of Arizona (Act 0f 2/18/1881)

354,680

430,985

76,305

19,624,318

School for the Deaf & Blind

39,220

53,809

14,589

3,965,635

Legislative,Executive & Judicial Buildings

57,893

75,015

17,122

6,469,654

State Hospital Grant

89,056

115,826

26,770

2,875,311

Miners' Hospital Grant**

85,448

123,217

37,769

5,914,000

528,216

771,500

243,284

18,228,504

76,540

76,506

(34)

3,661,332

20,071,643

26,508,655

6,437,012

1,046,368,399

State Charitable, Penal, and Reformatory
Penitentiary Grant
TOTAL
*Information from the State Treasurer
**Miners' Hospital & Miners' Hospital 1929 combined

33

STATE TRUST LAND ACREAGE BY BENEFICIARY
TRUST ACRES
BENEFICIARY

FY 1978

FY 2005

8,342,469

8,107,686

Normal Schools Grant

172,405

174,798

Agricultural & Mechanical Colleges

134,469

124,944

Military Institutes Grant

82,945

80,168

School of Mines Grant

132,882

123,254

University Land Code

166,354

137,908

University of Arizona (Act 0f 2-18-1881)

62,216

54,218

School for the Deaf & Blind

84,209

82,560

Legislative,Executive & Judicial Buildings

66,660

64,257

State Hospital Grant

79,198

71,248

Miners' Hospital

48,648

47,745

Miners' Hospital (1929)

53,311

47,686

State Charitable, Penal, and Reformatory

80,010

77,140

Penitentiary Grant

80,830

76,111

9,586,606

9,269,723

Common Schools (K - 12)*

TOTAL
*Includes County Bonds

34

Financial Schedules

AUCTIONS OF LEASES WITH AND WITHOUT THE
PREFERRED RIGHT TO MATCH THE HIGHEST BID
(REPORT REQUIRED BY A.R.S.§37-132)

AUCTION

LEASE #

DATE

PARCEL

PREFERRED

NO. OF

PREFERENCE

MINIMUM

BONUS

SUM BASE

LOCATION

RIGHT

BIDDERS

EXERCISED

BID

BID

RENTAL

REVENUE
12/14/2004

03-109548

West of the NWC of Princess
Drive and Scottsdale Road; Maricopa County

Yes

4

No

$2,450,000.00*

$600,000.00*

$21,555,883.54

8/31/04

03-109195

1/2 mile North of State Hwy 82
and 3 miles East of State Hwy
90, North of Sierra Vista; Cochise
County

No

1

N/A

$23,270.00

None

$1,057,634.85

8/10/2004

03-107735

NEC of Deer Valley Road & 97th
Avenue; Maricopa County

No

1

N/A

$378,450.00

None

$60,121,478.55

*Minimum bid at auction based on appraised land value rather than 1st year rent.

35

ARIZONA STATE LAND DEPARTMENT
1616 West Adams ● Phoenix, Arizona 85007
www.land.state.az.us