The MLMCF is a limited partnership with two shareholders: the District of Mackenzie (limited partner) and the McLeod Lake Indian Band (limited partner). The partnership is structured such that operations are managed by the McLeod Lake Mackenzie Community Forest Corporation (general partner).
Profits from MLMCF log sales are used to achieve the Community Forest’s mission, goals and objectives; including short and long term forest management planning and operations. In addition, a reserve fund is held for contingencies.
As per its ‘Distribution of Profits’ policy, each year, the MLMCF evaluates their financial position to determine whether there are surplus funds. The Board of Directors determines the surplus available for distribution in equal portions to the District of Mackenzie, the McLeod lake Indian Band and the MLMCF. Each shareholder develops their own priorities and systems for use and/or distribution of the funds.
On June 20 2017, the MLMCF presented cheques of $500,000 each to McLeod Lake Indian Band and the District of Mackenzie for the 3rd year in a row. For the 2016 fiscal year the MLMCF Board of Directors had declared a profit of $1.5 million, which was shared three ways in accordance with its policy on the Distribution of Profits.
The company has done well in recent years due to increased salvage logging of pine killed by Mountain Pine Beetle and other forest health-related harvesteing. Now that the dead pine in the Community Forest’s tenure area has been salvaged, the annual cut will be much reduced, as will the annual revenues. The Community Forest does not expect to generate such large profits in the future.