ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

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

October 1, 2007- September 30,2008 (Projected) 

September 2007 

Bureau of Reclamation 

United States Department of the Interior 
TABLE OF CONTENTS 

Summary .................................................................................................................................................................. . 

Restoration Fund Revenues and Expenditures for Fiscal Year 2006 (Schedule 1) ..................... .. .......... ............ ...... 3 

Friant Division Surcharges (Subsection 3406( c )(1)) for Fiscal Year 2006 (Schedu~ 2) . . . . . . . . . . . . ... ..... ............... ... 4 

Restoration Revenues {Subsection 3407( c)&( d)) for Fiscal Year 2006 (Schedule 3) ..................................... :......... 5 

Expenditures for Fiscal Year 2006 (Schedule 4) ...................................................................................................... 7 

Projected Restoration Fund Revenues and Expenditures for Fiscal Year 2008 (Schedule 5) ..........................•........ 8 

Projected Friant Division Surcharges (Subsection 3406(c)(l)) for Fiscal Year 2008 (Schedule 6) .......................... 9 

Projected Restoration Revenues (Subsection 3407(c)&(d)) for Fiscal Year 2008 (Schedule 7) ............................. 10 

Projected Expenditures for Fiscal Year 2008 (Schedule 8) .................................................................................... 12 
CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

ANNUAL FINANCIAL REPORT 

SUMMARY 

Subsection 3407(f) of the Central Valley Project Improvement Act (Title XXXN of Public Law 

1 02-575) requires an annual financial report to the Senate Committee on Energy and Natural 

Resources, the Senate Committee on Appropriations, the House Committee on Natural 

Resources, and the House Committee on Appropriations. The annual financial report describes 

all Restoration Fund revenues (receipts) and expenditures (uses) during the prior fiscal year and 

projected Restoration Fund revenues and expenditures during the next upcoming fiscal year. 

This report is the fourteenth annual financial report prepared pursuant to Subsection 3407(f) of 

the Central Valley Project Improvement Act (CVPIA) and covers fiscal year 2006 actual 

revenues and expenditures and fiscal year 2008 projected revenues and expenditures. For 

purposes of this report, revenues are actual collections processed. Schedules 1 through 4 provide 

summary information on fiscal year 2006 Restoration Fund revenues and expenditures. 

Schedules 5 through 8 provide summary information on fiscal year 2008 Restoration Fund 

projected revenues and expenditures. 

This report does not include the Water and Related Resources Appropriations Account or State 

of California cost share funding. 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 tum 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 ofboth 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 2006 

Fiscal year 2006 Restoration Fund revenues totaled $54.9M. Fiscal year 2006 Restoration Fund 

expenditures totaled $45.8M. The balance in the Restoration Fund at the end of fiscal year 2006 

was carried over into the fiscal year 2007 program. Schedule 1 summarizes fiscal year 2006 

Restoration Fund revenues and expenditures Schedules 2 and 3 provide detailed information on 

fiscal year 2006 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 2006 and the amounts attributable to each activity. 

Fiscal Year 2007 

Fiscal year 2007 Restoration Fund revenues are projected to be $41,556,000. Expenditures for 

this period are projected to be approximately equal to the revenues received. Detailed fiscal year 

2007 information will be in the next annual financial report. 

1 
Fiscal Year 2008 

Fiscal year 2008 Restoration Fund revenues are projected to be $59,122,000. Schedule 5 shows 

the projected revenue sources for fiscal year 2008 by authorizing subsection of the CVPIA. 

Restoration Fund revenue projections are determined by applying the applicable restoration fund 

rate to the estimated project water deliveries to be sold. Project Water delivery projections are 

updated annually under the Central Valley Project's Irrigation and M&I water ratesetting policies. 

The Friant Division Surcharge rate for fiscal year 2008 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 2008. 

The fiscal year 2008 Restoration Fund appropriation of $51,622,000 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 2006 

REVENUES 

Non-Discretionary Revenues 

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

Tiered Water Revenues (Subsection 3405(d)) 308,278 

Water Transfer Revenues (Subsection 3405(a)(1 )(B)) 0 

Friant Division Surcharges (Subsection 3406(c)(1)) --See Schedule 2 10,645,287 

M&l Surcharges (Subsection 3407(d)(2)(A)) 0 

Subtotal - Non-Discretionary Revenues $10,953,565 

Discretionary Revenues 

Restoration Payments (Subsection 3407(c) & (d)) -- See Schedule 3 43,918,000 

Contributions 

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

Total Restoration Fund Revenues $54,871,565 

EXPENDITURES 

Expenditures (Subsections 3406 & 3408) -- See Schedule 4 45,770,079 

Expenditure of Non-Federal Contributions 0 

Total Restoration Fund Expenditures $ 45,770,079 

Net Increase/Decrease (Revenues less Expenditures) $9,101,486 

3 
4 

Schedule 2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2006 

WATER REVENUES($) 

SERVICE AREA IRRIGATION M&l TOTAL 

FRIANT -KERN CANAL $8,568,783 $699,335 $9,268,118 

CROSS VALLEY CANAL 1/ (147,595) 0 (147,595) 

MADERA CANAL 1,457,169 0 . 1,457,169 

FRIANT DAM 67,207 371 67,578 

MENDOTA POOL 0 0 0 

SAN LUIS CANAL 2/ 0 16 16 

Total $9,945,564 $699,722 $10,645,287 

1/ Revenue was incorrectly posted to wrong contract and delivery service area. 

2/ Revenue was incorrectly posted as Friant revenue. Revenue should have 

been recognized as Restoration M&l. 

.. 

'")\ 
Schedule 3 

Page 1 of 2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2006 

WATER REVENUES($) 

SERVICE AREA IRRIGATION M&l TOTAL 

FOLSOM 

Folsom Dam & Reservoir $66,749 $841,376 $908,125 

Folsom-South Canal 187,199 78,669 265,868 

Sugar Pine Dam & Reservoir 0 16,951 16,951 

Sly Park Dam & Reservoir 22,254 276,226 298,480 

Total Folsom 276,202 1,213,222 1,489,424 

TRACY 

Contra Costa Canal 0 1,381,993 1,381,993 

Delta-Mendota Canal 1,792,627 48,143 1,840,770 

San Luis Canal-Tracy 836,081 228,459 1,064,540 

New Melones Dam & Reservoir 0 122,199 122,199 

San Felipe Unit {59,500} 1,811,298 1,751,798 

Total Tracy 2,569,208 3,592,092 6;:.161 ,300 

FRESNO 

San Luis Canal-Fresno 7,368,904 235,433 7,604,337 

Friant Dam 78,018 927 78,945 

Friant-Kern Canal 9,533,259 1,410,202 10,943,461 

Cross Valley Canal (126,515) 0 (126,515) 

Madera Canal 1,828,001 0 1,828,001 

Delta-Mendota Pool 274,992 0 274,992 

Buchanan Unit 197,760 0 197,760 

Hidden Unit 194,040 0 194,040 

Total Fresno 19,348,461 1,646,562 20,995,023 

SHASTA 

Clear Creek Unit 0 38,705 38,705 

Shasta Dam & Reservoir 0 33,463 33,463 

Spring Creek Conduit 0 79,979 79,979 

Cow Creek Unit 0 2,391 2,391 

Toyon Pipeline 0 57,734 57,734 

Sacramento River - Shasta 3,919 60,889 64,808 

Total Shasta 3,919 273,161 277,081 

5 
Schedule 3 

Page 2 of2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2006 

WATER REVENUES($) 

SERVICE AREA IRRIGATION M&l TOTAL 

WILLOWS 

Corning Canal 0 0 0 

Tehama-Colusa Canal 0 6,877 6,877 

Black Butte Dam & Reservoir 0 2,609 2,609 

Colusa Basin Drain 0 0 0 

Feather River 19,049 0 19,049 

Sacramento River - Willows 1,389,799 88,567 1,478,367 

Total Willows 1,408,849 98,054 1,506,902 

Total Restoration Payments 

Irrigation and M&l $23,606,639 $6,823,090 $30,429,729 

Restoration Payment - Irrigation $23,606,639 

Restoration Payment - M&l 6,823,090 

Restoration Payment - Power 13,488,271 

Total $43,918,000 

6 
Schedule 4 

Central Valley Project Improvement Act 

Expenditures for Fiscal Year 2006 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION AMOUNT($) 

Habitat Restoration, Improvement, & Acquisition 

Anadromous Fish Program 3406(b)(1) 4,863,050 

Other CVP Impacts 3406(b )( 1 ) Other 1,917,559 

Dedicated Project Yield 3406(b)(2) 2,016,293 

Water Acquisition 3406(b)(3) 12,051,712 

Flow Fluctuation Study 3406(b)(9) 58,442 

Trinity River Restoration 3406(b)(23) 960,413 

San Joaquin River Basin Resource Mgmt 3406(c)(1) 700,730 

San Joaquin Basin Action Plan 3406(d) 4,200,693 

Refuge Water Supply/Conveyance 3406(d)(1 )(2)(5) 6,613,672 

Ecosystem/Water Operations Study 3406(g) 3,758,599 

Land Retirement 3408(h) 1,713,933 

Other Fish and Wildlife Restoration Activities 

Tracy Pumping Plant & Fish Test Facility 3406(b)(4) 4,139 

Coleman Fish Hatchery 3406(b )( 11) 12,532 

Clear Creek Restoration 3406(b )( 12) 759,309 

Riparian Habitat 3406(b )(13) 434,049 

CVP Project Assessment/Monitoring Program 3406(b )( 16) 320,127 

Anadromous Fish Screen Program 3406(b)(21) 5,384,826 

Total Expenditures Fiscal Year 2006 $45,770,079 

7 

? I 
Schedule 5 

Central Valley Project Improvement Act 

Projected Restoration Fund Revenues and Expenditures 

for Fiscal Year 2008 

REVENUES 

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

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

Water Transfer Revenues (Subsection 3405(a)(1 )(B)) 0 

Friant Division Surcharges (Subsection 3406(c)(1)) --See Schedule 6 7,500,000 

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

Restoration Payments (Subsection 3407(c) & (d))-- See Schedule 7 51,321,000 

Contributions 

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

Total Projected Restoration Fund Revenues $59,122,000 

EXPENDITURES 

Expenditures (Subsections 3406 & 3408) -- See Schedule 8 $51,622,000 

Net Increase/Decrease (Revenues less Expenditures) $7,500,000 

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

21 M&l Surcharges have been about $1,000 per year and 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 2008 

WATER REVENUES($) 

SERVICE AREA IRRIGATION TOTAL 

FRIANT-KERN CANAL $6,122,498 $451,619 $6,574,117 

MADERA CANAL 924,056 0 924,056 

FRIANT DAM 0 1,827 1,827 

Total $7,046,554 $453,446 $7,500,000 

9 
Schedule 7 

Page 1 of2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2008 

WATER REVENUES($) 

SERVICE AREA IRRIGATION M&l TOTAL 

FOLSOM 

Folsom Dam & Reservoir $0 $766,632 $766,632 

Folsom-South Canal 0 736,683 736,683 

Sugar Pine Dam & Reservoir 1,572 17,452 19,024 

Sly Park Dam & Reservoir 43,656 314,143 357,799 

Total Folsom 45,228 1,834,910 1,880,138 

TRACY 

Contra Costa Canal 0 1,496,735 1,496,735 

Delta-Mendota Canal 1,899,036 194,280 2,093,316 

San Luis Canal-Tracy 1,202,225 12,426 1,214,651 

New Melones Dam & Reservoir 0 0 0 

San Felipe Unit 352,592 1,825,957 2,178,549 

Total Tracy 3,453,853 3,529,398 6,983,251 

FRESNO 

San Luis Canal-Fresno 7,134,115 229,028 7,363,143 

Friant Dam 0 4,555 4,555 

Friant-Kern Canal 5,052,117 1,125,976 6,178,093 

Cross Valley Canal 441,196 16,981 458,177 

Madera Canal 1,152,588 0 1,152,588 

Delta-Mendota Pool 341,975 0 341,975 

Buchanan Unit 209,549 0 209,549 

Hidden Unit 209,549 0 209,549 

Total Fresno 14,541,089 1,376,540 15,917,629 

SHASTA 

Clear Creek Unit 0 33,805 33,805 

Shasta Dam & Reservoir 0 35,184 35,184 

Spring Creek Conduit 0 91,573 91,573 

Cow Creek Unit 0 55,830 55,830 

Toyon Pipeline 0 43,858 43,858 

Sacramento River - Shasta 35,038 175,068 210,106 

Total Shasta 35,038 435,318 470,356 

10 
Schedule 7 

Page 2 of2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2008 

WATER REVENUES($) 

SERVICE AREA IRRIGATION M&l TOTAL 

WILLOWS 

Corning Canal 0 0 0 

Tehama-Colusa Canal 10,827 . 2,792 13,619 

Black Butte Dam & Reservoir 175 1,134 1,309 

Colusa Basin Drain 305,592 0 305,592 

Feather River 130,968 0 130,968 

Sacramento River - Willows 1,578,234 0 1,578,234 

Total Willows 2,025,796 3,926 2,029,722 

Total Restoration Payments 

Irrigation and M&l $20,101,004 $7,180,092 $27,281,096 

Restoration Payment - Irrigation $20,101,004 

Restoration Payment - M&l 7,180,092 

Restoration Payment - Power 24,039,904 

Total $51 ,321 ,000 

11 
Schedule 8 

Central Valley Project Improvement Act 

Projected Expenditures for Fiscal Year 2008 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION AMOUNT($) 

Habitat Restoration, Improvement, & Acquisition 

Anadromous Fish Program 3406(b)(1) $4,500,000 

Other CVP Impacts 3406(b )(1) Other 1,500,000 

Dedicated Project Yield 3406(b)(2) 800,000 

Water Acquisition 3406(b)(3) 12,790,000 

Flow Fluctuation Study 3406(b)(9) 50,000 

Trinity River Restoration 3406(b)(23) 1,000,000 

San Joaquin River Basin Resource Mgmt 3406(c)(1) · 2,000,000 

Refuge Water Supply/Conveyance 3406(d)(1 )(2)(5) 16,600,000 

Ecosystem/Water Operations Study 3406(g) 4,850,000 

Land Retirement 3408(h) 1,000,000 

Other Fish and Wildlife Restoration Activities 

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

Spawning Gravel I Riparian Habitat 3406(b)(13) 1,000,000 

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

Anadromous Fish Screen Program 3406(b)(21) 4,432,000 

Total Projected Expenditures Fiscal Year 2008 $51,622,000 

12 

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