Presentation by Tri-County Economic Development District – 8/22/2013

Economic Trends and Impact of Mining Industry in Ferry and Okanogan Counties

Some background

Population, 2000-2011*

Ferry County, WA Okanogan County, WA Washington Ferry+Okanogan U.S.

Population (2011*) 7,530 40,655 6,652,845 48,185 306,603,772Population (2000) 7,260 39,564 5,894,121 46,824 281,421,906Population Change (2000-2011*) 270 1,091 758,724 1,361 25,181,866Population Percent Change (2000-2011*) 3.7% 2.8% 12.9% 2.9% 8.9%

3.7%2.8%

12.9%

2.9%

8.9%

0%2%

4%

6%8%

10%12%14%

Ferry County, WA

Okanogan County, WA

Washington Ferry+Okanogan U.S.

Percent Change in Population, 2000-2011*

Household income

Household Income Distribution, 2011*

Ferry County, WA Okanogan County, WA Washington Ferry+Okanogan U.S.

Per Capita Income (2011 $s) $18,937 $20,518 $30,481 na $27,915Median Household Income^ (2011 $s) $35,684 $40,537 $58,890 na $52,762Total Households 2,825 15,648 2,602,568 18,473 114,761,359

Less than $10,000 ˙304 1,739 155,477 2,043 8,176,081$10,000 to $14,999 ˙201 ˙1,056 112,068 1,257 6,248,397$15,000 to $24,999 ˙538 2,259 234,459 2,797 12,217,054$25,000 to $34,999 ˙329 1,894 248,756 2,223 11,944,165$35,000 to $49,999 ˙439 2,583 353,286 3,022 15,874,513$50,000 to $74,999 ˙460 2,986 502,735 3,446 21,057,656$75,000 to $99,999 ˙269 1,369 357,494 1,638 14,181,160$100,000 to $149,999 ˙216 1,309 383,442 1,525 14,551,369$150,000 to $199,999 ¨30 ˙238 136,439 ˙268 5,354,595$200,000 or more ¨39 ˙215 118,412 ˙254 5,156,369

Gini Coefficient^ 0.45 0.44 0.44 na 0.47

Percent of TotalLess than $10,000 ˙10.8% 11.1% 6.0% 11.1% 7.1%$10,000 to $14,999 ˙7.1% 6.7% 4.3% 6.8% 5.4%$15,000 to $24,999 ˙19.0% 14.4% 9.0% 15.1% 10.6%$25,000 to $34,999 ˙11.6% 12.1% 9.6% 12.0% 10.4%$35,000 to $49,999 ˙15.5% 16.5% 13.6% 16.4% 13.8%$50,000 to $74,999 ˙16.3% 19.1% 19.3% 18.7% 18.3%$75,000 to $99,999 ˙9.5% 8.7% 13.7% 8.9% 12.4%$100,000 to $149,999 ˙7.6% 8.4% 14.7% 8.3% 12.7%$150,000 to $199,999 ¨1.1% ˙1.5% 5.2% ˙1.5% 4.7%$200,000 or more ¨1.4% ˙1.4% 4.5% ˙1.4% 4.5%

PovertyPoverty, 2011*

Ferry County, WA Okanogan County, WA Washington Ferry+Okanogan U.S.

People 7,433 40,034 6,519,490 47,467 298,787,998Families 1,976 10,543 1,683,102 12,519 76,507,230People Below Poverty ˙1,547 8,582 816,509 10,129 42,739,924Families below poverty ˙242 ˙1,367 141,588 1,609 8,000,077

Percent of TotalPeople Below Poverty ˙20.8% 21.4% 12.5% 21.3% 14.3%Families below poverty ˙12.2% ˙13.0% 8.4% 12.9% 10.5%

20.8% 21.4%

12.5%

21.3%

14.3%12.2% 13.0%

8.4%

12.9%10.5%

0%

5%

10%

15%

20%

25%

Ferry County, WA

Okanogan County, WA

Washington Ferry+Okanogan U.S.

Individuals and Families Below Poverty, 2011*

People Below Poverty Families below poverty

Source of earnings

Number of Households Receiving Earnings, by Source, 2011*

Ferry County, WAOkanogan County,

WA Washington Ferry+Okanogan U.S.

Total households: 2,825 15,648 2,602,568 18,473 114,761,359Labor earnings 1,669 10,918 2,090,770 12,587 90,888,685Social Security (SS) 1,314 5,551 663,000 6,865 32,005,143Retirement income 821 3,339 466,941 4,160 20,126,376Supplemental Security Income (SSI) ˙212 ˙1,099 101,364 1,311 4,948,413Cash public assistance income ˙171 ˙666 101,415 ˙837 2,948,651Food Stamp/SNAP ˙430 2,675 286,377 3,105 11,759,700

Percent of Total^Labor earnings 59.1% 69.8% 80.3% 68.1% 79.2%Social Security (SS) 46.5% 35.5% 25.5% 37.2% 27.9%Retirement income 29.1% 21.3% 17.9% 22.5% 17.5%Supplemental Security Income (SSI) ˙7.5% ˙7.0% 3.9% 7.1% 4.3%Cash public assistance income ˙6.1% ˙4.3% 3.9% ˙4.5% 2.6%Food Stamp/SNAP ˙15.2% 17.1% 11.0% 16.8% 10.2%

Employment and earnings – Ferry County

Total Population, Employment, & Real Personal Income Trends, 1970-2011

1970 1980 1990 2000 2011 Change 2000-2011

Population 3,682 5,836 6,329 7,276 7,689 413Employment (full and part-time jobs) 1,207 2,085 2,567 2,771 2,775 4Personal Income (thousands of 2012$s) 68,359 107,484 137,844 168,988 206,881 37,893

Average Earnings per Job & Per Capita Income, 1970-2011 (2012 $s)

1970 1980 1990 2000 2011 Change 2000-

2011Average Earnings per Job $41,679 $38,576 $39,883 $32,102 $32,845 $742Per Capita Income $18,566 $18,417 $21,780 $23,225 $26,906 $3,681

Percent Change % Change 2000-2011

Average Earnings per Job 2.3%Per Capita Income 15.8%

0

10,000

20,000

30,000

40,000

50,000

60,000

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

$s

Average Earnings per Job & Per Capita Income, Ferry County WA

Average Earnings per Job Per Capita Income

Employment and earnings – Okanogan County

Total Population, Employment, & Real Personal Income Trends, 1970-2011

1970 1980 1990 2000 2011 Change 2000-

2011Population 25,901 30,858 33,424 39,566 41,411 1,845Employment (full and part-time jobs) 14,171 16,853 19,407 22,140 23,677 1,537Personal Income (thousands of 2012$s) 553,902 770,123 830,915 1,089,084 1,497,112 408,028

Average Earnings per Job & Per Capita Income, 1970-2011 (2012 $s)

1970 1980 1990 2000 2011 Change 2000-2011

Average Earnings per Job $31,854 $32,838 $29,046 $31,081 $37,549 $6,468Per Capita Income $21,385 $24,957 $24,860 $27,526 $36,153 $8,627

Percent Change % Change 2000-2011

Average Earnings per Job 20.8%Per Capita Income 31.3%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

$s

Average Earnings per Job & Per Capita Income, Okanogan County WA

Average Earnings per Job Per Capita Income

Unemployment

Seasonal Unemployment Rate, 2009-2013

Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec.

2009 12.9% 14.6% 16.6% 14.3% 12.7% 12.3% 11.6% 12.1% 11.7% 11.7% 13.0% 15.4%2010 17.8% 18.9% 17.9% 15.5% 14.5% 13.2% 12.7% 13.3% 12.2% 12.0% 12.9% 14.2%2011 16.0% 17.0% 16.8% 15.1% 14.4% 13.4% 13.0% 14.2% 13.0% 12.7% 12.7% 14.7%2012 16.1% 16.9% 15.7% 13.2% 12.7% 12.1% 11.8% 12.1% 10.6% 10.2% 10.9% 12.8%2013 14.7% 14.8% 14.0% 11.8% 11.7%

Unemployment Rate (%)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Average Annual Unemployment Rate, Ferry County WA

Ferry County

Seasonal Unemployment Rate, 2009-2013

Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec.

2009 11.0% 12.4% 12.8% 10.3% 9.3% 8.0% 6.8% 8.0% 7.3% 7.4% 10.8% 13.8%2010 14.9% 15.1% 13.5% 11.6% 10.9% 9.2% 7.6% 9.2% 7.7% 7.7% 11.1% 12.8%2011 13.9% 13.6% 12.6% 11.2% 10.6% 9.4% 7.4% 8.5% 7.6% 7.6% 10.3% 12.3%2012 12.8% 12.5% 11.8% 10.4% 9.7% 8.3% 6.8% 7.6% 6.8% 6.6% 9.0% 10.5%2013 12.5% 12.5% 11.2% 9.5% 8.8%

Unemployment Rate (%)

Okanogan County

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Average Annual Unemployment Rate, Okanogan County WA

Jobs and Earnings

Mining/Extraction Industry Jobs and Earnings

Jobs and Average Earnings - Ferry County

Jobs and Average Earnings - Okanogan County

Gold Ore Mining Impacts

Current Unemployment