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In FY 2004, our budget was cut, personnel were lost or relocated, and frustrations were high, yet in our accomplishments we were able to maintain quantity without compromising quality. We were able to accomplish this by better matching our talents and skills with our roles and responsibilities. Unfortunately, however, opportunities to better manage resources and expand our program presented themselves in FY 2004, but because of the challenges we were faced with, we were unable to capitalize on them. As in the past, we compiled an impressive list of accomplishments during FY 2004, but there are a few that stand out in our minds. We successfully expanded the range of endangered humpback chub (see Page 4), established 2 new populations of threatened Apache trout and renovated an additional 2 streams that are scheduled to receive Apache trout in 2005 (see Page 4), and managed backwater habitats leading toward endangered "big- river" fish recovery (see Page 5). In addition, we completed several applied research projects, whose results are available for immediate implementation by resource managers. We examined the effects of repeated handling on endangered fish, overwinter survival of different sizes and strains of trout, effects of dam operations on largemouth bass, and catchability of humpback chub in baited vs. unbaited hoop nets (see Page 8). We know that future budgets are not likely to increase, vacancies may not be filled, and additional personnel may be lost. However, we remain optimistic that our future looks bright because we know what needs to be done, we know how to do it, we know we can do it, and we know we'll get it done. This mind set is best demonstrated in a quote from an AZFRO Biologist following a recent staff meeting..."honesty over the future budget and potential for staff reductions, somehow, seemed to elevate overall staff morale, which instilled both hope and purpose back into the staff." Regardless of past and future resource allocations, AZFRO is committed to doing the best we can with what we are given! J 0 ~~' :~ Arizona Fishery Resources Office FY 2004 Annuai Report '