The Brazos River Authority Waco Texas

BRAZOS RIVER AUTHORITYMANAGEMENT’S DISCUSSION AND ANALYSISAUGUST 31, 2008, 2007 AND 2006 (in thousands)Condensed Statement of Revenues, Expenses and Changes in Net AssetsFiscal Years Ended August 31, 2008, 2007 and 20062008 2007 2006OPERATING REVENUESWater supply system $ 36,536 $ 32,698 $ 30,052Cost reimbursable operations 18,347 17,448 17,025TOTAL OPERATING REVENUES 54,883 50,146 47,077OPERATING EXPENSESOperating and maintenance 34,738 33,404 33,045Depreciation and amortization 10,124 9,819 9,965TOTAL OPERATING EXPENSES 44,862 43,223 43,010OPERATING INCOME 10,021 6,923 4,067Total net non-operating expenses 219 3,828 11,048GAIN/(LOSS) BEFORE CONTRIBUTIONS 9,802 3,095 (6,981)Capital contributions 661 1,933 1,126CHANGE IN NET ASSETS 10,463 5,028 (5,855)NET ASSETS, BEGINNING 131,291 126,263 132,118NET ASSETS, ENDING $ 141,754 $ 131,291 $ 126,26310