WORKING PAPER NO.  37
              COLUMBIA RIVER BASIN PROJECT
     FOR WATER SUPPLY AND  WATER QUALITY MANAGEMENT
          PEND OREILLE BASIN (IDAHO-WASHINGTON)
           PRELIMINARY ECONOMIC RECONNAISSANCE
            AND ESTIMATE OF GROWTH,  1960-2010
DATE;  November 30, 1962        DISTRIBUTION

Prepared by    KLC	        Project Staff
Reviewed by	        Cooperating Agencies

Approved by	        General	
     U. S. DEPARTMENT OF HEALTH, EDUCATION AND WELFARE
                    Public Health Service
                         Region IX

       Division of Water Supply and Pollution Control
                   Room 570 Pittock Block
                     Portland 5, Oregon

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this working paper contains preliminary  data and  information
primarily intended for internal use by the Columbia  River
Basin Project staff and cooperating agencies.  The material
presented in this paper has not been  fully evaluated and
should not be considered as final.

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     PEND  OREILLE BASIN  (IDAHO-WASHINGTON)
      PRELIMINARY ECONOMIC RECONNAISSANCE
       AND ESTIMATE OF GROWTH, 1960-2010
              Table  of Contents



 I.   INTRODUCTION                          1

     A.   Purpose  of This Analysis           1

     B.   Definition of the Area             1

     C.   Study Period                      1

     D.   Limitations  of This Analysis       1

 II.   PRESENT ECONOMIC BASE                 2

     A.   Population                        2

     B.   Industry                          4

 III.  ESTIMATE FUTURE GROWTH               6

     A.   Factors  Influencing Future Growth  6

     B.   Future Population                  7
Prepared by:  Economic Studies  Group
              Water Supply and  Pollution
              Control Program,  Pacific Northwest

              November 1962

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                  PEND OREILLE BASIN (IDAHO-WASHINGTON)
                   PRELIMINARY ECONOMIC RECONNAISSANCE
                    AND ESTIMATE OF GROWTH, 1960-2010
I.  INTRODUCTION

    A.  Purpose of This Analysis

        This analysis is intended to provide a preliminary estimate of

the economic potentials and anticipated growth of the subject area.

    B.  Definition of the Area

        The Pend Oreille Basin, for the purposes of this study,  is de-

fined to include Bonner County, Idaho and Pend Oreille County, Washington.

    C.  Study Period

        The study period is the 50-year period 1960-2010, with an interim

point at 1985.

    D.  Limitations of This Analysis

        Three limitations apply to this study.  The first is that it is

intended only as a preliminary estimate of the outlook for the subject

area's growth.  Subsequently, in connection with the Columbia River Basin

Project for Water Supply and Water Quality Management, an analysis will

be made on an industry-byindustry basis of the growth potential in the

various subbasins.  At that time this preliminary estimate will  be re-

viewed and revised if necessary.

        The second limitation is that this study is intended for use

particularly ia assessing future water needs.  Emphasis has been placed

on the analysis of those industries which make heavy demands upon the

water resource.  Other industries have been considered only insofar as

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they may have a significant effect on future population.  For  this reason,




this study is not submitted as  a detailed  industrial  forecast.





          The third limitation  is one of scope.  The  study is  oriented




  to a specific project and is  intended for  sizing purposes.   Consider-




  ation of inter-region relationships at a later date may require modi-




 fication of conclusions.






  II.  PRESENT ECONOMIC BASE




       A.  Population




           Population of the Pend Oreille  basin at April 1960  is shown




  in Table I.  The total population of the area changed very slightly in




  numbers in the decade 1950-1960.  Though Pend Oreille County's numbers




  dropped considerably, a moderate rise in Bonner County resulted in a




  slight over-all gain for the  area.  There  was no area in the region




  that displayed significant population growth.




           As Table I indicates, the region  is one with a predominantly




  rural pattern of settlement.   In fact, the ten years 1950-60 saw urban




  populations drop from 48.5 percent of the  basin's total to 47.7 percent,




  as population decline was slower in the  rural than  in urban  portions of




  Pend Oreille County, while the rural population of  Bonner County in-




  creased faster than its town  population.

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                             TABLE I &t
             Population Trends in the Fend  Oreille  Basin



        Fend Oreille County



Metaline"



Metaline Falls



lone



Cusick



Newport



 • Urban Total



Rural



  Fend Oreille County Total






           Bonner County



Clarks Fork



Ponderay



Priest River



East Hope



Hope



Sandpoint



Kootenai



Oldtown



  Urban Total



Rural




  Bonner County Total



Basin Total
1950
563
547
714
360
1,385
3,569
3,844
7,413
387
248
1,588
149
111
4,265
199
258
7,205
7,648
14,853
22,266
1960
299
469
648
299
1,513
3,228
3,686
6,914
452
231
1,749
154
96
4,355
180
211
7,428
8,159
15,587
22,501
Change
-264
- 78
- 66
- 61
128
-341
-158
-499
65
- 17
161
5
- 15
90
- 19
- 47
223
511
734
235
(47.77.)
(13.37.)
( 9.27.)
(17 7.)
( 9.27.)
( 9.57.)
( 4.17.)
( 6.77.)
(16.87.)
( 6.87.)
(10.17.)
( 3.37.)
(13.57.)
( 2.17.)
( 9.57.)
(18.27.)
( 3.17.)
( 6.77.)
( 4.97.)
( 1.17.)
a/  U. S. Census of Population, 1950, 1960

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     B.  Industry




         The region depends on three major industries - agriculture,




lumbering, and mining.  Together these industries provided about 33.6




percent of the total employment in 1960.   A fourth source of employment




is the area's recreational resources in the form of rivers, lakes and




forests, which swelled the ratio of service employment to 53.5 percent




in 1960 - unusually high for a predominantly rural area.  Table II




categorizes major sources of employment in 1960.








         Agricultural employment has dropped steadily with farm consoli-




dation.  The average farm in the area is  fairly large, 521.1 acres in




Bonner County in 1959, 339.5 acres in Pend Oreille County,  The agri-




cultural pattern shows a steady rise in the value of livestock and




products, with dairy products accounting for roughly half of the value




of livestock products, and a moderate decline in value of crops, Irri-




gation is practiced on a very minor scale.  In 1959, only 2,813 acres




were irrigated in Bonner County, 2,702 acres in Tend Oreille County,




down from 3,830 and 3,392 respectively, in 1954. -/




         Lumbering depends on forest stands in the Coeur d'Alene,




Nordman and Kaniksu National Forests.  Extensive logging and a number




of small saw mills are chief sources of employment, with shingle mills




and wood preserving plants also present.   It would appear that a sub-




stantial part of the region's log output is sawed in nearby Coeur d'Alene.




         Mining in Pend Oreille County has, in the past, been a more




significant contributor to the regional economy.  Lead and zinc deposits
\l  U. S. Census of Agriculture,  1959

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are currently worked in two mines, with a third,  quite large,  mine under




development.  A lengthy strike at the Kellogg,  Idaho smelting  plant of




The Bunker Hill Company combined with persistent  low prices  for lead and




zinc, resulted in a stringent cutback in production in the early 'sixties,,




which has halved mine employment.




         Other manufacturing activities are largely concentrated in




Sandpoint, Idaho, county seat of Bonner County, and service  and commercial




center for the region.  Sandpoint also appears  to be a center  of tourist




trade, a substantial element in the regional economy.




                              TABLE  II £/




                    Employment  by Industry,  1960
 Mining




 Construction
       Non-durable goods




 Trans. Comm.  & utilities




 Wholesale & retail trade




 All other services




 Industry not  reported




   Total




 Unemployed




   Total Labor Force

y and fisheries


products
goods
iods
.ties
rade

sd



Pend Oreille
208
223
140
395
134
34
110
330
538
45
2,157
253
2,410
Bonner
611
13
295
860
56
66
371
1006
1309
110
4,697
722
5,419
% of Area Total
10.5%
3.2
5.5
16.1
2.4
1.2
6.1
17.3
23.6
1.9
87.6
12.4
100. 0%
 a/  Uo S. Census of Population,  1960

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III.  ESTIMATED FUTURE GROWTH




      A.  Factors Influencing Future Growth




          During the 1950-60 decade the Fend Oreille basin was  practically




static in population and economic activity.  Suffering from the effects  of




low commodity prices on its raw-materials based economy.




          The future outlook continues to depend largely  on the region's




agriculture, timber and non-ferrous metals;  and for several reasons,   these




present the area with little hope for vigorous expansion.




          Farm consolidation appears to have lagged to some extent behind




Northwest experience, suggesting a continuing drain on agricultural employ-




ment.  The region's forests are being exploited near sustained  yield levels,




indicating only moderate growth of timber production.  At the same time, the




area would appear to support an unusual number of small sawmills;   some




strain on lumbering employment may be expected as a greater portion of the




area's timber comes to be cut in fewer, but larger and more productive,




mills.



          The sustained depression of the domestic lead and zinc industry-




a function of the combination of excess productive capacity internationally,




competition- from substituted, products, and slowly rising demand for products




using the metals - suggests only moderate growth from this resource.




          Some economic growth is promised by expansion of the tourist




industry in the  three national forests of the area, and the lakes - Priest,




Pend Oreille, and Hoodoo - which are its distinctive feature.  The national




trend to more extensive outdoor recreation, and an excellent highway network,

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make such recreational attractions eminently valuable to an area.






      B.  Future Population




          Various projections for future population growth in the States




of Washington and Idaho have been made by state and federal agencies.




As suggested above, it would appear that the growth of the Fend Oreille




basin will be well under tha£ of the states in which it lies.  For the




purposes of this study, it is assumed that the population decline of




Fend Oreille County can be reversed and that Bonner County will continue




to grow.'  If an annual growth rate of .7 percent is assumed, population




of the basin would be as follows:




                   1960           1985         .   2010




                 29,415         36,760          46,720




          Within the area, growth of the Idaho portion should continue to




exceed that of Fend Oreille County in Washington.




          No attempt is made at this time to forecast the growth outlook




for individual towns.  As a rough guide, it may be assumed that growth




will be concentrated in the three larger towns, and in those serving the




mining industry.  Rural populations may be expected to decline, and the




decline may well include some of the smaller towns„ as the prevailing




national trend to urbanization asserts itself in the area.

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