ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

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

October 1, 2006- September 30, 2007 (Projected) 

September 2006 

Bureau of Reclamation 

United States Department of the Interior 
TABLE OF CONTENTS 

Summary ................................................................................................................................................................... 1 

Restoration Fund Revenues and Expenditures for Fiscal Year 2005 (Schedule 1) . . . . . . . . . . . . . . . . . ............................ 3 

Friant Division Surcharges (Subsection 3406(c)(1)) for Fiscal Year 2005 (Schedule 2) .......................................... 4 

Restoration Revenues (Subsection 3407(c)&(d)) for Fiscal Year 2005 (Schedule 3) .......................................... 5 

Expenditures for Fiscal Year 2005 (Schedule 4) ...................................................................................................... 7 

Projected Restoration Fund Revenues and Expenditures for Fiscal Year 2007 (Schedule 5) . .... ........................... 8 

Projected Friant Division Surcharges (Subsection 3406(c)(l)) for Fiscal Year 2007 (Schedule 6) ......................... 9 

Projected Restoration Revenues (Subsection 3407(c)&(d)) for Fiscal Year 2007 (Schedule 7) .............................. 10 

Projected Expenditures for Fiscal Year 2007 (Schedule 8) ................................................................... 12 
CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

ANNUAL FINANCIAL REPORT 

SUMMARY 

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

102-575) 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 thirteenth annual financial report prepared pursuant to Subsection 3407(f) of 

the Central Valley Project Improvement Act (CVPIA) and covers fiscal year 2005 actual 

revenues and expenditures and fiscal year 2007 projected revenues and expenditures. For 

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

summary information on fiscal year 2005 Restoration Fund revenues and expenditures. 

Schedules 5 through 8 provide summary information on fiscal year 2007 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 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 2005 

Fiscal year 2005 Restoration Fund revenues totaled $57.6M. Fiscal year 2005 Restoration Fund 

expenditures totaled $43.7M. The balance in the Restoration Fund at the end of fiscal year 2005 

was carried over into the fiscal year 2006 program. Schedule 1 summarizes fiscal year 2005 

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

fiscal year 2005 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 2005 and the amounts attributable to each activity. 

1 
Fiscal Year 2006 

Fiscal year 2006 Restoration Fund revenues are projected to be $52,219,000. Expenditures for 

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

2006 information will be in the next annual financial report. 

Fiscal Year 2007 

Fiscal year 2007 Restoration Fund revenues are projected to be $41,556,000. Schedule 5 shows 

the projected revenue sources for fiscal year 2007 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 2007 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&l 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 2007. 

The fiscal year 2007 Restoration Fund appropriation of$41,478,000 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 2005 

REVENUES 

Non-Discretionary Revenues 

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

Tiered Water Revenues (Subsection 3405(d)) 246,909 

Water Transfer Revenues (Subsection 3405(a)(1 )(B)) /1 (8,216) 

Friant Division Surcharges (Subsection 3406(c)(1 )) --See Schedule 2 10,999,981 

M&l Surcharges (Subsection 3407(d)(2)(A)) 425 

Subtotal - Non-Discretionary Revenues $11,239,099 

Discretionary Revenues 

Restoration Payments (Subsection 3407(c) & (d)) -- See Schedule 3 46,336,000 

Contributions 

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

Total Restoration Fund Revenues $57,575,099 

EXEPNDITURES 

Expenditures (Subsections 3406 & 3408) -- See Schedule 4 43,722,167 

Expenditures of Non-Federal Contributions 0 

Total Restoration Fund Expenditures 43,722,167 

Net Increase/Decrease (Revenues less Expenditures) 13,852,932 

/1 Revenues were received and incorrectly processed into the Restoration Fund account for water transfers. 

It was later determined that the revenues should have been processed into the advance account for water. 

A standard voucher was processed to correct the error and the revenues were transferred to the 

contractors's advance account. 

3 

II 
Schedule 2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2005 

WATER REVENUES ($) 

SERVICE AREA IRRIGATION ___MM_ TOTAL 

FRIANT -KERN CANAL $9,114,566 $433,181 $9,547,747 

CROSS VALLEY CANAL 148,953 0 148,953 

MADERA CANAL 1,244,353 0 1,244,353 

FRIANT DAM 57,899 1,029 58,928 

MENDOTA POOL 0 0 0 

Total $10,565,771 $434,210 $10,999,981 

4 
Schedule 3 

Page 1 of 2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2005 

WATER REVENUES($) 

SERVICE AREA IRRIGATION __MM_ TOTAL 

FOLSOM 

Folsom Dam & Reservoir $107,845 $479,785 $587,630 

Folsom-South Canal 25,000 71,906 96,906 

Sugar Pine Dam & Reservoir 0 15,129 15,129 

Sly Park Dam & Reservoir {18,357} 263,507 245,150 

Total Folsom 114,488 830,327 944,815 

TRACY 

Contra Costa Canal 0 1,504,065 1,504,065 

Delta-Mendota Canal 1,333,304 215,184 1,548,488 

San Luis Canal-Tracy 1,222,195 13,298 1,235,493 

New Melones Dam & Reservoir 0 0 0 

San Felipe Unit 453,872 1,219,333 1,673,205 

Total Tracy 3,009,371 2,951,880 5,961,251 

FRESNO 

San Luis Canal-Fresno 5,895,015 215,091 6,110,106 

Friant Dam 54,307 2,347 56,654 

Friant-Kern Canal 9,209,760 1,170,140 10,379,900 

Cross Valley Canal 439,128 0 439,128 

Madera Canal 1,202,398 0 1,202,398 

Delta-Mendota Pool 302,632 0 302,632 

Buchanan Unit 179,160 0 179,160 

Hidden Unit 95,160 0 95,160 

Total Fresno 17,377,560 1,387,578 18,765,138 

SHASTA 

Clear Creek Unit 0 30,639 30,639 

Shasta Dam & Reservoir 0 27,877 27,877 

Spring Creek Conduit 0 65,979 65,979 

Cow Creek Unit 0 12,362 12,362 

Toyon Pipeline 71 30,730 30,801 

Sacramento River - Shasta 64,355 12,943 77,298 

Total Shasta 64,426 180,530 244,956 

5 

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Schedule 3 

Page 2 of2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2005 

WATER REVENUES($) 

SERVICE AREA IRRIGATION ~ TOTAL 

WILLOWS 

Corning Canal 0 109 109 

Tehama-Colusa Canal 0 2,421 2,421 

Black Butte Dam & Reservoir 0 478 478 

Colusa Basin Drain 0 0 0 

Feather River 66,137 0 66,137 

Sacramento River - Willows 1 ,302,147 85,301 1,387,448 

Total Willows 1,368,284 88,309 1,456,593 

Restoration Payments 

Irrigation and M&l $21,934,129 $5,438,624 $27,372,753 

Restoration Payment - Irrigation $21 ,934,129 

Restoration Payment- M&l 5,438,624 

Restoration Payment - Power 18,963,247 

Total $46,336,000 

6 
Schedule 4 

Central Valley Project Improvement Act 

Expenditures for Fiscal Year 2005 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION AMOUNT($) 

Habitat Restoration, Improvement, & Acquisition 

Anadromous Fish Program 3406(b)(1) 4,605,886 

Other CVP Impacts 3406(b)(1) Other 1,471,011 

Dedicated Project Yield 3406(b)(2) 926,724 

Water Acquisition 3406(b)(3) 11,787,322 

Flow Fluctuation Study 3406(b)(9) 17,526 

Trinity River Restoration 3406(b)(23) 2,280,138 

San Joaquin River Basin Res Mgt Initiative 3406(c)(1) 754,191 

San Joaquin Basin Action Plan 3406(d) 2,314,415 

Refuge Water Supply/Conveyance 3406( d)( 1 )(2)( 5) 6,062.,456 

Ecosystem/Water Operations Study 3406(g) 3,597,828 

Land Retirement 3408(h) 2,403,193 

Other Fish and Wildlife Restoration Activities 

Tracy Pumping Plant & Fish Test Facility 3406(b)(4) 731 

Coleman Fish Hatchery 3406(b )( 11) 388 

Clear Creek Restoration 3406(b)(12) 813,197 

Spawning Gravel 3406(b)(13) 669,736 

CVP Project Assessment/Monitoring Program 3406(b )( 16) 561,797 

Anadromous Fish Screen Program 3406(b )(21) 5,455,628 

Total Expenditures Fiscal Year 2005 $43,722,167 

7 

l.l l 
Schedule 5 

Central Valley Project Improvement Act 

Projected Restoration Fund Revenues and Expenditures 

for Fiscal Year 2007 

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 33,755,000 

Contributions 

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

Total Projected Restoration Fund Revenues $41,556,000 

EXPENDITURES 

Expenditures (Subsections 3406 & 3408) -- See Schedule 8 $ 41,478,000 

Net Increase/Decrease (Revenues less Expenditures) $78,000 

/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 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 

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Schedule 6 

Central Valley Project Improvement Act 

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

for Fiscal Year 2007 

WATER REVENUES ($) 

SERVICE AREA IRRIGATION TOTAL 

FRIANT-KERN CANAL $6,126,082 $445,501 $6,571,583 

MADERA CANAL 926,100 0 926,100 

FRIANT DAM 0 2,317 2,317 

Total $7,052,182 $447,818 $7,500,000 

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Schedule 7 

Page 1 of 2 

Centrai·Valley Project Improvement Act 

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

for Fiscal Year 2007 

WATER REVENUES($) 

SERVICE AREA TOTAL IRRIGATION __11M_ 

FOLSOM 

Folsom Dam & Reservoir $74,666 $1,153,311 $1,227,977 

Folsom-South Canal 0 885,583 885,583 

Sugar Pine Dam & Reservoir 1,527 16,965 18,492 

Sly Park Dam & Reservoir 42,424 305,374 347,798 

Total Folsom 118,617 2,361,233 2,479,850 

TRACY 

Contra Costa Canal 0 1,996,804 1,996,804 

Delta-Mendota Canal 1,712,962 280,587 1,993,549 

San Luis Canal-Tracy 882,173 11,350 893,523 

New Melones Dam & Reservoir 0 0 0 

San Felipe Unit 298,436 2,017,077 2,315,513 

Total Tracy 2,893,571 4,305,818 7,199,389 

FRESNO 

San Luis Canal-Fresno 6,537,250 284,659 6,821,909 

Friant Dam 0 5,615 5,615 

Friant-Kern Canal 4,749,197 1,079,716 5,828,913 

Cross Valley Canal 313,055 9,636 322,691 

Madera Canal 1,122,539 0 1,122,539 

Delta-Mendota Pool 406,880 0 406,880 

Buchanan Unit 203,635 0 203,635 

Hidden Unit 203,635 0 203,635 

Total Fresno 13,536,191 1,379,626 14,915,817 

SHASTA 

Clear Creek Unit 0 152,025 152,025 

Shasta Dam & Reservoir 0 70,440 70,440 

Spring Creek Conduit 0 103,148 103,148 

Cow Creek Unit 0 111,852 111,852 

Toyon Pipeline 0 41,378 41,378 

Sacramento River - Shasta 28,755 205,094 233,849 

Total Shasta 28,755 683,937 712,692 

10 

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Schedule 7 

Page 2 of2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2007 

WATER REVENUES($) 

SERVICE AREA IRRIGATION M&l TOTAL 

WILLOWS 

Corning Canal 0 0 0 

Tehama-Colusa Canal 0 2,511 2,511 

Black Butte Dam & Reservoir 118 1,849 1,967 

Colusa Basin Drain 403,876 0 403,876 

Feather River 115,392 0 115,392 

Sacramento River - Willows 1,373,456 0 1,373,456 

Total Willows 1,892,842 4,360 1,897,202 

Restoration Payments 

Irrigation and M&l $18,469,976 $8,734,974 $27,204,950 

Restoration Payment - Irrigation $18,469,976 

Restoration Payment - M&l 8,734,974 

Restoration Payment - Power 6,550,050 

Total $33,755,000 

11 
Schedule 8 

Central Valley Project Improvement Act 

Projected Expenditures for Fiscal Year 2007 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION AMOUNT($) 

Habitat Restoration, Improvement, & Acquisition 

Anadromous Fish Program 3406(b)(1) $4,200,000 

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

Dedicated Project Yield 3406(b)(2) 900,000 

Water Acquisition 3406(b)(3) 10,886,000 

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

San Joaquin River Basin Res Mgt Initiative 3406(c)(1) 2,000,000 

Refuge Water Supply/Conveyance 3406(d)(1 )(2)(5) 11,208,000 

Ecosystem/Water Operations Study 3406(g) 4,334,000 

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) 800,000 

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

CVP Project Assessment/Monitoring Program 3406(b)(16) 400,000 

Anadromous Fish Screen Program 3406(b )(21) 3,000,000 

Total Projected Expenditures Fiscal Year 2007 $41,478,000 

12