ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

· October 1, 2002 - September 30, 2003 (Actual) 

October 1, 2004- September 30,2005 (Projected) 

March2004 

Bureau of Reclamation 

United States Department of the Interior 
CENTRAL VALLEY PROJECT -IMPROVEMENT ACT 

ANNUAL FINANCIAL REPORT 

SUMMARY 

Subsection 3407(f) of the Central Valley Project Improvement Act (Title XXKIV 

of Public Law 102-575) provides for an annual financial report to the Senate 

Committee on Energy and Natural Resources, the Committee on Appropriations of 

the Senate, the House Committee on Resources, and the Committee on 

Appropriations of the House of Representatives. The annual financial report 

is to describe all Restoration Fund revenues and expenditures during the prior 

fiscal year and projected Restoration Fund revenues and expenditures during 

the next upcoming fiscal year. 

This report is the eleventh annual financial report prepared pursuant to 

Subsection"3407(f) of the Central Valley Project Improvement Act (CVPIA) and 

covers fiscal year 2003 actual revenues and expenditures and fiscal year 2005 

projected revenues and expenditures. For purposes of this report revenues are 

actual collections processed, and expenditures are obligations incurred. 

Schedules 1 through 4 provide summary information on fiscal year 2003 

Restoration Fund revenues and expenditures. Schedules 5 through 8 provide 

summary information on projected fiscal year 2005 Restoration Fund revenues 

and expenditures. 

This report does not include the Water and Related Resources Appropriations 

Account or. State of California cost share information. These two funding 

sources are in addition to the Restoration Fund, and with the Restoration Fund 

compose the annual CVPIA program. Each funding source is considered in 

allocating the Restoration Fund to individual CVPIA activities, and CVPIA 

funding is in turn coordinated with the CALFED Bay-Delta Program to best 

ensure compatibility with and to complement CALFED initiatives. Overlapping 

CVPIA and CALFED areas are integrated as a way of using the strengths of both 

programs to maximize performance and meet program objectives. It is 

anticipated that these processes will result in a broad-based ecosystem 

management strategy wherein all parties join together in a partnership in 

their efforts toward mitigation and restoration of the environment. 

Fiscal Year 2003 

Fiscal year 2003 Restoration Fund revenues totaled $47,864,401 .. Fiscal year 

2003 Restoration Fund expenditures were $48,897,103. The fiscal year 2003 

Restoration F.und balance, $13,868,922(fiscal year 2002 carryover $14,901,624 -

fiscal year 2003 expenditures exceeding revenues by $1,032,702 was carried 

over into the fiscal year 2004 program. Schedule 1 summarizes fiscal year 

2003 Restoration Fund revenues and expenditures, including the carryover from 

fiscal year 2002, and the Restoration Fund balance at September 30, 2003. 

Schedules 2 and 3 provide detailed information on fiscal year 2003 revenues, 

including power payments, and water (irrigation, and municipal and industrial) 

payments by water service area. Schedule 4 lists the fish and wildlife 

restoration activities funded during fiscal year 2003 and the amounts 

attributable to each activity. 
Fiscal Year 2004 

Fiscal year 2004 Restoration Fund revenues were $38,281,814. Expenditures for 

this period were approximately equal to the revenues received. Detailed 

fiscal year 2004 information will be in the next annual financial report. 

Fiscal Year 2005 

For fiscal year 2005, Restoration Fund revenues are projected to be 

$39,600,000. Schedule 5 shows the projected revenue sources for fiscal year 

2005 by authorizing subsection of the CVPIA. 

Revenues: 

Friant Division Surcharges $ 8,000,000 

T~ered Water Revenues 300,000 

Transfer Water Revenues 25,000 

M&I Surcharges 1,000 

Restoration Payments 46,369,000 

Total Projected Restoration Fund 

Revenues for Fiscal Year 2005 $_':;;4_,6~;;L OQ_Q 

The Restoration Fund revenues attributable to Project Water are 

projected by applying the applicable Restoration Fund rate to the projected 

fiscal year 2005 Project Water deliveries that will be sold. Project Water 

delivery projections are updated annually under the Project's Irrigation and 

M&I water ratesetting policies. These projections serve as the primary basis 

for projecting Restoration Fund revenues. 

The Friant Division Surcharge rate for fiscal year 2005 remains at $7 per 

acre-foot. Tiered Water rates specified in the contracts for delivered 

Project Water are based on percentages of contractor's total Project Water 

entitlements and the difference between full cost and cost of service rates. 

Transfer Water Revenues are based on projected acre-feet subject times a 

projected difference .between full cost and cost of service rates. The M&I 

Surcharge rate equates to a 1992 Consumer Price Index Urban (CPIU) indexed 

rate of $25 per acre-foot of Project Water subject to this charge. The 

Restoration Payment rates for Project Water equate to a 1992 CPIU indexed rate 

of $6 per acre-foot for irrigation water and $12 per acre-foot for M&I water. 

These CPIU indexed rates are adjusted annually at the start of each fiscal 

year. No other Restoration Fund revenues are projected for fiscal year 2005. 

The fiscal year 2005 Restoration Fund appropriation of $54,695,000 is 

shown in schedule 8. The schedule lists the fish and wildlife restoration 

activities projected to be funded during the fiscal year and the amounts 

attributable to each activity. 

2 
Sc:hedule 1 

Central Valley Project Improvement Act 

Restoration Fund Revenues and Expenditures (Obligations) 

for Fiscal Year.2003 

Revenues Fiscal y,ear 2003 

Non-Discretionary Revenues 

Pre-Renewal Charges (Subsection 3404(c)(3)) $0 

Tiered Water Revenues (Subsection 3405(d)) 231,676 

Transfer Water Revenues (Subsection 3405(a)(1 )(B)) 53,958 

Friant Division Surcharges (Subsection 3406(c)(1)) - See Schedule 2 7,501,457 

M&l Surcharges (Subsection 3407(d)(2)(A)) 1,176 

Subtotal - Non-Discretionary Revenues $7,788,267 

Discretionary Revenues 

Restoration Payments (Subsection 3407{c) & (d)) - See Schedule 3 40,076,134 

Total Restoration Fund Revenues $47 ,<864,401. 

Expenditures /1 

Expenditures (Subsections 3406 & 3408) - See Schedule 4 48.~997' 103 

Excess of Restoration Fund Revenues over Expenditures ($1,032,702) for Fiscal Year 2003 

Contributions 

Non-Federal Contributions (Subsection 3407(a)) 0 

Expenditure c:>f_ Non-Federal Contributions 0 

Restoration Fund Balance at September 30, 2002 14,H01 ,624 

Restoration Fund Balance at September 30, 2003 /2 $13,868,922 

/1 Obligations. 

/2 Restoration Fund Balance results from FY 1999 and FY 2000 when Congress 

directed collections that exceeded appropriations. 

3 
Schedule 2 

Central Valley Project Improvement Act 

Friant Division Surcharges {Subsection 3406(c)(1)) 

for Fiscal Year 2003 

WATER SALES REVENUES{$) 

SERVICE AREA IRRIGATION ._MM_. -

TOTAL 

FRIANT -KERN CANAL $5,953,554 $141,974 $6,095,528 

CROSS VALLEY CANAL 0 0 0 

MADERA CANAL 1,404,991 0 1,404,991 

FRIANT DAM 0 938 938 

MENDOTA POOL 0 0 0 

Total $7,358,545 $142,912 $7,!':i01 ,457 

4 
Schedule 3 

Page 1 of 2 

Central Valley Project Improvement Act 

Restoration Payments (Subsection 3407(c) & (d)) 

for Fiscal Year 2003 

WATER SALES REVENUES($) 

SERVICE AREA IRRIGATION ~ TOTAL 

FOLSOM 

Folsom Dam & Reservoir $0 $684,012 $684,012 

Folsom-South Canal 0 70,412 70,412 

Sugar Pine Dam & Reservoir 0 13,741 13,741 

Sly Park Dam & Reservoir 96,042 271,913 367,955 

Total Folsom 96,042 1,040,078 1,136,120 

TRACY 

Contra Costa Canal 1,663 1,304,742 1,306,405 

Delta-Mendota Canal 1,711,346 259J312 1,970,658 

San Luis Canal-Tracy . 1,377,295 13,540 1,390,835 

New Melones Dam & Reservoir (137,396) 0 (137,396) San Felipe Unit 314,583 1,471,239 1,785,822 

Total Tracy 3,267,491 3,048,833 6,316,324 

FRESNO 

San Luis Canal-Fresno 6,504,753 235,087 6,739,840 

Friant Dam 557 1,318 1,875 

Friant-Kern Canal 6,568,191 321,479 6,889,670 

Cross Valley Canal 122,954 0 122,954 

Madera Canal 1,538,382 0 1,538,382 

Delta-Mendota Pool 395,772 0 395,772 

Buchanan Unit 184,560 0 184,560 Hidden Unit 92,280 0 92,280 

Total Fresno 15,407,449 557,884 15,965,333 

SHASTA 

Clear Creek Unit 1,061 28,313 29,374 

Shasta Dam & Reservoir 2,301 30,490 32,791 

Spring Creek Conduit 5,242 68,062 73,304 

Cow Creek Unit 10,412 37,677 48,089 

Toyon Pipeline 0 46,235 46,235 

SacramentG River- Shasta 7,450 7,715 15,165 

Total Shasta 26,466 218,492 ' 244,958 

5 
Schedule 3 

Page 2 of 2 

Central Valley Project Improvement Act 

Restoration Payments (Subsection 3407(c) & (d)) 

for Fiscal Year 2003 

WATER SALES REVENUES($) 

SERVICE AREA IRRIGATION _lML TOTAL 

WILLOWS 

Corning Canal 0 0 0 

Tehama-Colusa Canal 0 2,035 2,035 Black Butte Dam & Reservoir 0 1,739 1,739 Colusa Basin Drain 0 0 0 Feather River 66,255 0 66,255 Sacram~nto River - Willows 513,789 19,966 533,755 Total Willows 580,044 23,740 603,784 

Restoration Payments 

Irrigation and M&l $19,377,492 $4,889,027 $.24,266,519 

Restoration Payment - Irrigation $19,377,492 

Restoration Payment- M&l 4,889,027 

Restoration Payment - Power 15,809,615 

Total $40,076,134 

6 
Sch1edule 3A 

Central Valley Project Improvement Act 

Restoration Payments (Subsection 3407(c) & (d)) 

Projected versus Actual 

for Fiscal Year 2003 

WATER SALES REVENUES($) 

SERVICE AREA PROJECTED ACTUAL DIFFERENCE 

Black Butte Dam & Reservoir $1,805 $1,739 ($66) Buchanan Unit 183,552 184,560 1,008 Clear Creek Unit 23,831 29,374 5,543 Colusa Basin Drain 50,201 0 (50,201) Contra Costa Canal 1,359,837 1,306,405 (53,432) Coming Canal 0 0 0 

Cow. Creek Unit 72,059 48,089 (23,970) Cross Valley Canal 218,595 122,954 (95,641) Delta-Mendota Canal 1,751,055 1,970,658 =~19,603 

Delta-Mendota Pool 385,949 395,772 9,823 Feather River 75,631 66,255 (9,376) . Folsom Dam & Reservoir 649,927 684,012 34,085 Folsom-South Canal 158,130 70,412 (87,718) Friant Dam 2,892 1,875 {1,017) Friant-Kern Canal 5,356,042 6,889,670 1,~)33,628 

Hidden Unit 183,552 92,280 (91 ,272) · Madera Canal 1,057,787 1,538,382 480,595 

New Melones Dam & Reservoir 0 (137,396) (137,396) Sacramento River- Shasta 169,159 15,165 (153,994) Sacramento River- Willows 1,803,228 533,755 (1 ,269,473) San Felipe Unit 1,635,793 1,785,822 150,029 San Luis Canal-Fresno 6,628,425 6,739,840 111,415 San Luis Canal-Tracy 957,415 1,390,835 433,420, Shasta Dam & -Reservoir 42,446 32,791 (9,655) Sly Park Dam & Reservoir 310,516 367,955 57,439 Spring Creek Conduit 81,742 73,304 {8,438) Sugar Pine Dam & Reservoir 108,601 13,741 (94,860) Tehama-Colusa Canal 1,728 2,035 307 

Toyon Pipeline 37,521 46,235 8,714 

Restoration Payments - Water $23,307,419 $24,266,519 $959,100 

Restoration Payments- Water (Irrigation and M&l) $24,266,519 

Restoration Payment - Power 15,809,615 

Total $40,076,134 

7 
Schedule 4 

Central Valley Project Improvement Act 

Expenditures (Obligations) for Fiscal Year 2003 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION AMOUNT (5U 

Habitat Restoration, Improvement, & Acquisition 

Anadromous Fish Program 3406(b){1) 4,996,906 

Other CVP Impacts 3406(b)(1) Other 4,394,141 

Dedicated Project Yield 3406(b)(2) 893,179 

Water Acquisition 3406(b)(3) 11,969,489 

Evaluate Project Operations 3406(b)(9) 55,141 

Refuge Wheeling 3406(d)(5) 14,237,2:79 

CVPIA Supporting Investigations 3406(e) (11 ,034) 

Ecosystem/Water Operations Study 3406(g) 3,916,3142 

Land Retirement 3408(h} 2,950,275 

Other Fish and Wildlife Restoration Activities 

Tracy Pumping Plant & Test Fish Facility 3406(b)(4) 2,428,837 

Research Pumping Plant Evaluation 3406(b)(1 0) (9,007) 

Clear Creek Restoration 3406(b)(12) 493,289 

Spawning Gravel 3406(b)(13) 525,093 

CVP Project Assessment/Monitoring Program 3406(b)(16) 495,B54 

GCID - Hamilton City Pump 3406(b)(20) (2,000,000) 

Unscreened Diversions 3406(b)(21) 3,561 .~~19 

Total Expenditures (Obligations) Fiscal Year 2003 $48,897,'103 

8 
Schedule4A 

Central Valley Project Improvement Act 

Expenditures (Obligations) 

Projected versus Actual 

for Fiscal Year 2003 

FISH AND WILDLIFE RESTORATION ACTIVITIES PROJECTED ACTUAL DIFFERENCE 

Habitat Restoration, Improvement, & Acquisition 

Anadromous Fish Program 3406(b)(1) $5,000,000 $4,996,906 ($3,094) 

Other CVP Impacts 3406(b)(1) Oth1 3,000,000 4,394,141 1,:394,141 

Dedicated Project Yield 3406(b)(2) 1,000,000 893,179 ('106,821) 

Water Acquisition 3406(b)(3) 6,944,000 11,969,489 5,025,489 

Evaluate Project Operations 3406(b)(9) 50,000 55,141 5,141 

Refuge Wheeling 3406(d)(5) 13,100,000 14,237,279 1,137,279 

CVPIA Supporting Investigations 3406(e) 0 (11,034) (11,034) 

Ecosystem/Water Operations Study 3406(g) 6,277,000 3,916,342 (2,.360,658) 

Land Retirement 3408(h) 2,600,000 2,950,275 :350,275 

Other Fish and Wildlife Restoration Activities 

Tracy Pumping Plant & Test Fish Facility 3406(b)(4) 5,000,000 2,428,837 (2,571,163) 

Research Pumping Plant Evaluation 3406(b)(1 0) 0 (9,007) (9,007) 

Clear Creek Restoration 3406(b)(12) 500,000 493,289 (6,711) 

Spawning· Gravel 3406(b)(13) 500,000 525,093 25,093 

CVP Project Assessment/Monitoring Program 3406(b)(16) 500,000 495,954 (4,046) 

GCID - Hamilton City Pump 3406(b)(20) 0 (2,000,000) (2,000,000) 

Unscreened Diversions 3406(b)(21) 4,433,000 3,561,219 (871,781) 

Total Expenditures (Obligation~) Fiscal Year 2003 $48,904,000 $48,897,103 ($6,897) 

9 
Schedule 5 

Central Valley Project Improvement Act 

Projected Restoration Fund Revenues and Expenditures (Obligations} 

for Fiscal Year 2005 

Revenues Fiscal Year :2005 

Pre-Renewal Charges (Subsection 3404(c)(3}) $0 /1 

Tiered Water Revenues (Subsection 3405(d)) 300,000 

Transfer Water Revenues (Subsection 3405(a}(1 }(B)) 25,000 

Friant Division Surcharges {Subsection 3406{c)(1})- See Schedule 6 8,000,000 

M&l Surcharges (Subsection 3407{d)(2){A}). 1,000 12 

Restoration Payments (Subsection 3407(c) & (d))- See Schedule 7 46,369,000 

Total Projected Restoration Fund Revenues $54,695,000 

Expenditures /3 

Expenditures (Subsections 3406 & 3408) -- See Schedule 8 54,695,000 

Contributions 

Non-Federal Contributions {Subsection 3407(a)) 0 /4 

FY 2005 Projected Revenues over (under) Expenditures $0 

Restoration Fund Balance projected at September 30, 2004 13,868,!322 

Restoration Fund Balance Projected at September 30, 2005 $13,868,!322 

/1 Pre-Renewal Charges of less than $1,000 from one contractor (Elk Creek CSD) are expected. 

12 M&l Surcharges have been about $1,000 per year from one contractor (U.S. Forest Service} .. 

M&l Surcharges are expected to continue at this rate. 

/3 Obligations. 

/4 Non-Federal Contributions (Subsection 3407(a)) are not projected until a historic basis for 

projecting such receipts is available. 

10 
Schedule 6 

Central Valley Project Improvement Act 

Projected Friant Division Surcharges (Subsection 3406(c)(1)) 

for Fiscal Year 2005 

WATER SALES REVENUES($) 

SERVICE AREA IRRIGATION M&l TOTAL 

FRIANT-KERN CANAL $6,619,152 $429,443 $7,048,595 

MADERA CANAL 949,788 0 949,788 

FRIANT DAM 0 1,617 1,617 

Total $7,568,940 $431,060 $8,000,000 

11 
Schedule 7 

Page 1 of 2 

Central Valley Project Improvement Act 

Projected Restoration Payments (Subsection 3407(c) & (d)) 

for Fiscal Year 2005 

WATER SALES REVENUES ($) 

SERVICE AREA IRRIGATION __MM_ TOTAL 

·FOLSOM 

Folsom Dam & Reservoir $66,748 $600,850 $667,598 Folsom-South Canal 0 313,457 313,457 Sugar Pine Dam & Reservoir 1,422 14,794 16,216 Sly Park Dam & Reservoir 36,281 259,907 296,188 Total Folsom 104,451 1,189,008 'I ,293,459 

TRACY 

Contra Costa Canal 2,567 1,556,852 ~1.559,419 Delta-Mendota Canal 1,458,240 126,287 11,~84,527 San Luis Canal-Tracy 951,364 6,370 957,734 New Melones Dam & Reservoir 0 0 0 San Felipe Unit 195,158 1,605,027 1,800,185 Total Tracy 2,607,329 3,294,536 Ei,901 ,865 

FRESNO 

San Luis Canal-Fresno 5,949,085 157,092 €1,106,177 Friant Dam 0 3,651 3,651 Friant-Kern Canal 4,481,074 969,658. t:i,450,732 Cross Valley Canal 499,056 15,379 514,435 Madera Canal 1,071,795 0 1,071,795 Delta-Mendota Pool 293,858 0 293,858 Buchanan Unit 189,581 0 189,581 Hidden Unit 189,581 0 189,581 Total Fresno 12,674,030 1,145,780 13,819,810 

SHASTA 

Clear Creek Unit 0 25,652 25,652 Shasta Dam & Reservoir 0 52,364 52,364 Spring Creek Cqnduit 0 80,324 80,324 Cow Creek Unit 0 73,986 73,986 Toyon Pipeline - 0 37,633 37,633 Sacramento River_- Shasta 80,374 167,271 247,645 Total Shasta 80,374 437,230 517,604 

12 
Schedule 7 

Page 2 of2 

Central Valley Project Improvement Act 

Projected Restoration Payments (Subsection 3407(c) & (d)) 

for Fiscal Year 2005 

WATER SALES REVENUES($ 

SERVICE AREA IRRIGATION M&l TOTAL 

WILLOWS 

Coming Canal 0 0 0 

Tehama-Colusa Canal (1) 1,786 1,785 Black Butte Dam & Reservoir 157 1,960 2,117 Colusa Basin Drain 8,057 0 8,057 Feather River 79,425 0 79,425 Sacramento Ri'ler - Willows 1,830,288 0 1,830,288 Total Willows 1,917,926 3,746 1,921,672 

Restoration Payments 

Irrigation and M&l $17,384,110 $6,070,300 $2:3,454.410 

Restoration Payment - Irrigation "$17,384,110 

Restoration Payment - M&l 6,070,300 

Restoration Payment - Power 22,914,590 

Total $46,369,000 

13 
Schedule 8 

Central Valley Project Improvement Act 

Projected Expenditures (Obligations) for Fiscal Year 2005 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION AMOUNT($) 

Habitat Restoration, Improvement, & Acquisition 

Anadromous Fish Program 3406(b)(1) $6,000,000 

Other CVP Impacts 3406(b )( 1) Other 3,000,000 

Dedicated Project Yield 3406(b)(2) 927,000 

Water Acquisition 3406(b)(3) 9,536,000 

Flow Fluctuation Study I Reservoir Storage 3406(b)(9) 50,000 0 Trinity River Restoration 3406(b)(23) 1,000,000 0 Refuge Water Supply/Conveyance 3406(d), & (5) 20,630,000 

Ecosystem/Water-Operations Study 3406(g) 7,052,000 

Land Retirement 3408(h) 1,500,000 

Other Fish and Wildlife Restoration Activities 

Clear Creek Restoration 3406(b)(12) 800,000 

0 Spawning Gravel/ Riparian Habitat 3406(b)(13) 500,000 

, CVP Project Assessment/Monitoring Program 3406(b)(16) 300,000 

Anadromous Fish Screening Program 3406(b)(21) 3,400,000 

Total Projected Expenditures (Obligations) Fiscal Year 2005 $54,695,000 

14