ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

October 1, 2003- September 30, 2004 (Actual) 

October 1, 2005- September 30, 2006 (Projected) 

September 2005 

Bureau of Reclamation 

United States Department of the Interior 
TABLE OF CONTENTS 

summary 1 

Actual Restoration Fund Revenues and Expenditures 

for Fiscal Year 2004 (Schedule 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 

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

for Fiscal Year 2004 (Schedule 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 

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

for Fiscal Year 2004 (Schedule 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 

Actual Expenditures for Fiscal Year 2004 (Schedule 4) 7 

Projected Restoration Fund Revenues and Expenditures 

for Fiscal Year 2006 (Schedule 5) . . . . . . . . . . • . . . . . . . . . . . • . . . 8 

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

for Fiscal Year 2006 (Schedule 6) . . . . . . . . . . . . . . . . . . . . . . . . . . 9 

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

for Fiscal Year 2006 (Schedule 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 

Projected Expenditures for Fiscal Year 2006 (Schedule 8) 12 
CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

ANNUAL FINANCIAL REPORT 

SUMMARY 

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

of Public Law 102-575) requires 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 

describes 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 twelfth annual financial report prepared pursuant to 

Subsection 3407(f) of the Central Valley Project Impr9vementAct (CVPIA) and 

covers fiscal year 2004 actual revenues and expenditures and fiscal year 2006 

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

actual collections processed. Schedules 1 through 4 provide summary 

information on fiscal year 2004 Restoration Fund revenues and expenditures. 

Schedules 5 through 8 provide summary information on projected fiscal year 

2006 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 2004 

Fiscal year 2004 Restoration Fund revenues totaled $38,281,814. Fiscal year 

2004 Restoration Fund expenditures less the decrease in unliquidated 

obligations totaled $40,324,221. This caused the balance in the Restoration 

Fund at the end of fiscal year 2004 to decrease by $2,042,407 to $11,826,515 

from $13,868,922 at the end of fiscal year 2003. The balance in the 

Restoration Fund at the end of fiscal year 2004 was carried over into the 

fiscal year 2005 program. Schedule 1 summarizes fiscal year 2004 Restoration 

Fund revenues and expenditures, and change in the Restoration Fund balance 

carried over from one fiscal year to the next. Schedules 2 and 3 provide 

detailed information on fiscal year 2004 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 2004 and the amounts attributable to each activity. 
Fiscal Year 2005 

Fiscal year 2005 Restoration Fund revenues are projected to be $54,695,000. 

Expenditures for this period are projected to be approximately equal to the 

revenues received. Detailed fiscal year 2005 information will be in the next 

annual financial report. 

Fiscal Year 2006 

For fiscal year 2006, Restoration Fund revenues are projected to be 

$52,219,000. Schedule 5 shows the projected revenue sources for fiscal year 

2006 by authorizing subsection of the CVPIA. 

Revenues: 

Friant Division Surcharges $ 8,000,000 

Tiered_Water Revenues 300,000 

M&I Surcharges 1,000 

Restoration Payments 43,918,000 

Total Projected Restoration Fund 

Revenues for Fiscal Year 2006 

The Restoration Fund revenues attributable to Project Water are projected by 

applying the applicable Restoration Fund rate to the projected fiscal year 

2006 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 2006 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. 

Congress directed in the CVPIA use of 1992 dollars as the basis for several 

sources of revenues collected into the Restoration Fund. It was determined 

that the Consumer Price Index Urban (CPIU), developed and updated monthly by 

the Bureau of Labor Statistics within the Department of Labor, was appropriate 

to use when indexing collections to 1992 dollars. The M&I Surcharge rate 

equates to a 1992 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 2006. 

The fiscal year 2006 Restoration Fund appropriation of $52,219,000 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 
Schedule 1 

Central Valley Project Improvement Act 

Restoration Fund Revenues and Expenditures 

for Fiscal Year 2004 

Revenues Fiscal Year 2004 

Non-Discretionary Revenues 

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

Tiered Water Revenues (Subsection 3405(d)) 269,411 

Transfer Water Revenues (Subsection 3405(a)(1 )(B)) (202,427) 

Friant Division Surcharges (Subsection 3406(c)(1 )) --See Schedule 2 7,439,253 

M&l Surcharges (Subsection 3407(d)(2)(A)) 1,577 

Subtotal - Non-Discretionary Revenues $7,507,814 

Discretionary Revenues 

Restoration Payments (Subsection 3407(c) & (d)) -- See Schedule 3 30,774,000 

Total Restoration Fund Revenues $38,281,814 

Expenditures 

Expenditures (Subsections 3406 & 3408) -- See Schedule 4 42,060,480 

Decrease in Unliquidated Obligations 1,736,259 

(Prior year statements reported monies obligated) 

Expenditures less Decrease in Unliquidated Obligations 40,324,221 

Excess of Restoration Fund Revenues over Expenditures (less ($2,042,407) 

Decrease in Unliquidated Obligations) for Fiscal Year 2004 

Contributions 

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

Expenditure of Non-Federal Contributions 0 

Restoration Fund Balance at September 30, 2003 13,868,922 

Restoration Fund Balance at September 30, 2004 /1 $11,826,515 

/1 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 2004 

WATER SALES REVENUES($) 

SERVICE AREA IRRIGATION _MgJ_ TOTAL 

FRIANT-KERN CANAL $5,122,740 $822,758 $5,945,498 

CROSS VALLEY CANAL 5,726 0 5,726 

MADERA CANAL 1,346,856 . 0 1,346,856 

FRIANT DAM 139,094 2,079 141,173 

MENDOTA POOL 0 0 0 

Total $6,614,416 $824,837 $7,439,253 

4 
Schedule 3 

Page 1 of 2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2004 

WATER SALES REVENUES($) 

SERVICE AREA IRRIGATION _M!L TOTAL 

FOLSOM 

Folsom Dam & Reservoir $65,647 $698,030 $763,677 

Folsom-South Canal 143,642 96,795 240,437 

Sugar Pine Dam & Reservoir 4,490 12,599 17,089 

Sly Park Dam & Reservoir 33,911 309,064 342,975 

Total Folsom 247,690 1,116,488 1,364,178 

TRACY 

Contra Costa Canal 423 1,380,802 1,381,225 

Delta-Mendota Canal 1,788,026 191,451 1,979,477 

San Luis Canal-Tracy 1,177,871 11,040 1,188,911 

New Melones Dam & Reservoir 0 117,991 117,991 

San Felipe Unit 480,095 1,704,328 2,184,423 

. Total Tracy 3,446,415 3,405,612 6,852,027 

FRESNO 

San Luis Canal-Fresno 6,667,446 247,753 6,915,199 

Friant Dam 155,980 2,349 158,329 

Friant-Kern Canal 6,117,020 997,502 7,114,522 

Cross Valley Canal 532,961 0 532,961 

Madera Canal 1,500,404 0 1,500,404 

Delta-Mendota Pool 345,431 0 345,431 

Buchanan Unit 187,680 0 187,680 

Hidden Unit 279,960 0 279,960 

Total Fresno 15,786,882 1,247,604 17,0;34,486 

SHASTA 

Clear Creek Unit 0 33,086 33,086 

Shasta Dam & Reservoir 0 49,157 49,157 

Spring Creek Conduit 3,999 84,064 88,063 

Cow Creek Unit 0 9,820 9,820 

Toyon Pipel[ne 0 46,998 46,998 

Sacramento River- Shasta 942 5,097 6,039 

Total Shasta 4,941 228,222 233,163 

5 
Schedule 3 

Page 2 of 2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2004 

WATER SALES REVENUES{$) 

SERVICE AREA IRRIGATION ~ TOTAL 

WILLOWS 

Corning Canal 0 108 108 

Tehama-Colusa Canal 0 4,040 4,040 

Black Butte Dam & Reservoir 0 564 564 

Colusa Basin Drain 5,691 0 5,691 

Feather River 22,920 0 22,920 

Sacramento River - Willows 1,002,564 72,501 1,075,065 

Total Willows 1,031,175 77,213 1,108,388 

Restoration Payments 

Irrigation and M&l $20,517,103 $6,075,139 $26,592,242 

Restoration Payment - Irrigation $20,517,103 

Restoration Payment - M&l 6,075,139 

Restoration Payment - Power 4,181,758 

Total $30,774,000 

6 
7 

Schedule 4 

Central Valley Project Improvement Act 

Expenditures for Fiscal Year 2004 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION AMOUNT($) 

Habitat Restoration, Improvement, & Acquisition 

Anadromous Fish Program 3406(b)(1) 5,099,997 

Other CVP Impacts 3406(b)(1) Other 3,578,874 

Dedicated Project Yield 3406(b)(2) 865,401 

Water Acquisition 3406(b)(3) 11,650,629 

Flow Fluctuation Study 3406(b)(9) 33,171 

Trinity River Restoration 3406(b )(23) 389,247 

Refuge Water Supply/Gonveyance 3406(d)(1 )(2)(5) 10,101,523 

Private Wetlands Investigation 3406(d)(6) 2,103 

Ecosystem/Water Operations Study 3406(g) 3,356,747 

Land Retirement 3408(h) 1,953,526 

Other Fish and Wildlife Restoration Activities 

Tracy Pumping Plant & Fish Test Facility 3406(b)(4) 35,807 

Clear Creek Restoration 3406(b)(12) 551,460 

Spawning Gravel 3406(b)(13) 555,612 

CVP Project Assessment/Monitoring Program 3406(b)(16) 437,202 

Anadromous Fish Screen Program 3406(b )(21) 3,428,243 

Flood Agr Lands for Waterfowi/Yid Enhmt 3406(b)(22) 20,938 

Total Expenditures Fiscal Year 2004 $42,060,480 
Schedule 5 

Central Valley Project Improvement Act 

Projected Restoration Fund Revenues and Expenditures 

for Fiscal Year 2006 

Revenues Fiscal Year 2006 

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)) 0 

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

M&l Surcharges (Subsection 3407(d)(2)(A)) 1,000 /2 

Restoration Payments (Subsection 3407(c) & (d))-- See Schedule 7 43,918,000 

Total Projected Restoration Fund Revenues $52,219,000 

Expenditures 

Expenditures (Subsections 3406 & 3408) --See Schedule 8 52,219,000 

Contributions 

Non-Federal Contributions (Subsection 3407(a)) 0 /3 

FY 2006 Projected Revenues over (under) Expenditures $0 

Restoration Fund Balance projected at September 30, 2005 11,826,515 

Restoration Fund Balance Projected at September 30, 2006 $11,826,515 

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

/2 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 Non-Federal Contributions (Subsection 3407(a)) are not projected until a historic basis for 

projecting such receipts is available. 

8 
Schedule 6 

Central Valley Project Improvement Act 

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

for Fiscal Year 2006 

WATER SALES REVENUES($) 

SERVICE AREA IRRIGATION 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 

9 
Schedule 7 

Page 1 of 2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2006 

WATER SALES REVENUES($) 

SERVICE AREA IRRIGATION ~ TOTAL 

FOLSOM 

Folsom Dam & Reservoir $68,895 $620,268 $689,163 

Folsom-South Canal 0 323,587 323,587 

Sugar Pine Dam & Reservoir 1,468 15,272 16,740 

Sly Park Dam & Reservoir 37,448 268,307 305,755 

Total Folsom 107,811 1,227,434 1,335,245 

TRACY 

Con1ra Costa Canal 2,650 1,607,165 1,609,815 

Delta-Mendota Canal 1 ,505,130 130,368 1,635,498 

San Luis Canal-Tracy 981,955 6,576 988,531 

New Melones Dam & Reservoir 0 0 0 

San Felipe Unit 201,433 1,656,898 1,858,331 

Total Tracy 2,691,168 3,401,007 6,092,175 

. FRESNO 

San Luis Canal-Fresno 6,140,379 162,169 6,302,548 

Friant Dam 0 3,769 3,769 

Friant-Kern Canal 4,625,164 1,000,995 5,626,159 

Cross Valley Canal 515,103 15,876 530,979 

Madera Canal 1 t 106,259 0 1,106,259 

Delta-Mendota Pool 303,307 0 303,307 

Buchanan Unit 195,677 0 195,677 

Hidden Unit 195,677 0 195,677 

Total Fresno 13,081,566 1,182,809 14,264,375 

SHASTA 

Clear Creek Unit 0 26,482 26,482 

Shasta Dam & Reservoir 0 54,056 54,056 

Spring Creek Conduit 0 82,920 82,920 

Cow Creek Unit 0 76,377 76,377 

Toyon Pipeline 0 38,849 38,849 

Sacramento River- Shasta 82,959 172,676 255,635 

Total Shasta 82,959 451,360 534,319 

10 
Schedule 7 

Page 2 of2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2006 

WATER SALES REVENUES($) 

SERVICE AREA IRRIGATION ~ TOTAL 

WILLOWS 

Corning Canal 0 0 0 

Tehama-Colusa Canal 0 1,844 1,844 

Black Butte Dam & Reservoir 162 2,023 2,185 

Colusa Basin Drain 8,316 0 8,316 

Feather River 81,979 0 81,979 

Sacramento River- Willows 1 ,889,141 0 1,889,141 

Total Willows 1,979,598 3,867 1,983,465 

Restoration Payments 

Irrigation and M&l $17,943,102 $6,266,477 $24,209,579 

Restoration Payment - Irrigation $17,943,102 

Restoration Payment - M&l 6,266,477 

Restoration Payment- Power 19,708,421 

Total $43,918,000 

11 
Schedule 8 

Central Valley Project Improvement Act 

Projected Expenditures for Fiscal Year 2006 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION AMOUNT($) 

Habitat Restoration, Improvement, & Acquisition 

Anadromous Fish Program 3406(b)(1) $5,000,000 Other CVP Impacts 3406(b)(1) Other 2,500,000 Dedicated Project Yield 3406(b)(2) 900,000 Water Acquisition 3406(b)(3) 4,800,000 Flow Fluctuation Study 3406(b)(9) 50,000 Trinity River Restoration 3406(b )(23) 2,000,000 

Refuge Water Supply/Conveyance 3406( d)(1 )(2)(5) 26,835,000 

Ecosystem/Water Operations Study (VAMP) 3406(g) 3,634,000 Land Retirement 3408(h) 1,500,000 

Other Fish and Wildlife Restoration Activities 

Coleman National Fish Hatchery 3406(b)(11) 200,000 Clear Creek Restoration 3406(b)(12) 300,000 Spawning Gravel I Riparian Habitat 3406(b)(13) 500,000 

CVP Project Assessment/Monitoring Program 3406(b)(16) 500,000 Anadromous Fish Screen Program 3406(b)(21) 3,500,000 

. Total Projected Expenditures Fiscal Year 2006 $52,219,000 

12