Goulburn Valley Water 2003/2004 Annual Report

Running Water from the Mountains to the Murray Table of Content

HIGHLIGHTS ...... 1 OUR ENVIRONMENTAL CHAIRMAN/CEO REPORT ...... 2 RESPONSIBILITY ...... 30 OVERVIEW ...... 4 Water for the Future ...... 30 Vision – Our Shared Aspiration ...... 4 Victorian River Health Strategy ...... 31 Mission – Our Core Purpose ...... 4 Regional Catchment Strategy ...... 31 Corporate Goals ...... 4 Victorian Greenhouse Strategy ...... 31 Water and the Environment ...... 4 Biodiversity Strategy ...... 32 Customers and the Community ...... 4 ISO 14001 Certiﬁ cation ...... 32 Assets and Infrastructure ...... 5 Reuse ...... 33 Organisational Capability ...... 5 Reclaimed Water ...... 33 Financial Performance and Compliance ...... 5 Biosolids ...... 34 Corporate Governance ...... 5 Heritage ...... 34 Who we are and what we do ...... 6 Trade Waste ...... 35 Relationship with Government ...... 7 Spills ...... 36 Essential Services Commission ...... 7 Water Consumption Organisation Structure ...... 7 and Drought Response Reporting ...... 37 Water Restriction By-Law Review ...... 37 OUR SOCIAL RESPONSIBILITY ...... 8 Towns on Water Restrictions ...... 37 Community Service Obligation ...... 8 Security of Supply ...... 37 Community Consultation ...... 8 Water Conservation ...... 38 Community Reference Committees ...... 9 Water Conservation Strategy ...... 39 Management of Social and Economic Impacts . . . . 9 Permanent Water Saving Measures ...... 39 Customer Satisfaction Survey ...... 10 Shepparton Car Dealers Initiative ...... 39 Energy and Water Ombudsman (Victoria) ...... 10 Water Consumption ...... 40 Community Support ...... 11 Bulk Water Entitlements ...... 41 Education ...... 11 OUR ECONOMIC RESPONSIBILITY . 42 Working with Schools ...... 11 Working with the Community ...... 13 Business Performance ...... 42 Water Quality ...... 15 Consultancies ...... 42 Safe Drinking Water Act 2003 ...... 16 Building Act 1993 ...... 42 Risk Management ...... 16 Victorian Industry Participation Policy ...... 42 Incident and Emergency ...... 17 Asset Management ...... 43 Dam Safety ...... 17 OpenGIS ...... 44 Development ...... 18 Hydraulic Modelling ...... 44 Our People ...... 19 SCADA ...... 44 Board ...... 19 Capital Works ...... 45 Senior Management ...... 22 Contract Over $10million ...... 45 Staff Proﬁ les ...... 23 Government Contribution ...... 45 Personnel ...... 25 National Competition Policy ...... 45 Retirements ...... 25 PERFORMANCE REPORTING ...... 46 Long Service ...... 25 EEO ...... 25 FINANCIAL STATEMENTS ...... 61 Training ...... 25 DISCLOSURE INDEX ...... 86 OH&S ...... 27 IT ...... 28 Freedom of Information ...... 29 Information Prepared and Available ...... 29 Whistleblowers ...... 29 Multicultural Policies ...... 29 Highlights

July 2003 January 2004 • Community consultation program commenced • The Authority achieved ISO 14001 certifi cation for review of water restrictions and permanent for Environmental Management System for all water saving methods 27 wastewater management facilities • Yarroweyah Community seized the opportunity • Introduction of Permanent Water Saving to have a town water supply Methods – Water Conservation By-Law • Construction of 20 kilometre Cobram August 2003 to Strathmerton water supply pipeline • Planning approval received for the construction commenced of Nathalia reclaimed water reuse facility • Ministers approval granted to decommission September 2003 Honeysuckle Creek • 18 employees achieved Certifi cates in Water February 2004 Operations • Marysville wastewater management facility • Work commenced on $6 million upgrade of received “Land for Wildlife” listing Cobram water treatment plant • Minister accepted major recommendation May 2004 from the High Level Task Force report • 470 primary school students participated in to build a water supply pipeline from “A Matter of Salt” across the region Melbourne to Wallan • Stormwater Offi cer and City of Greater Shepparton launched the Building and October 2003 Construction Stormwater Awareness Campaign • New computerised payroll system goes live • Practical completion received for the • Over 3,400 school students and community $17 million Shepparton high rate members participated in National Water Week anaerobic lagoon activities across the region • St George’s Road School in Shepparton offi cially June 2004 became a Waterwise School • The township of Rushworth achieved its target for connecting to the new sewerage system November 2003 • The Authority received a 91.9 rating for • Three Board members reappointed and overall customer satisfaction from an two new members appointed for a three independent survey year period

December 2003 • New 4 Stage Water Restriction By-Law and Water Conservation By-Law gazetted • Towns on Sunday Creek Water Supply System had their water restrictions eased with the introduction of a new 4 Stage by-law • The Authority was granted an asbestos removal license from WorkSafe Victoria • Kilmore reclaimed water reuse facility completed

2003/2004 Annual Report 1 Mijo Darveniza Chairman (Left) Laurie Gleeson Chief Executive (Right)

Chairman/CEO Report

It is our pleasure to present the tenth annual report The new listing is for the Marysville wastewater of Goulburn Valley Water. 2003/2004 was another very management facility. successful year for the Authority as we strived to achieve Our environmental services team is leading the successful social environmental and economic outcomes Authority’s implementation of our Biodiversity across the region. Strategy and have provided training to 59 employees In 2003/2004 Goulburn Valley Water achieved an during the year. operating profi t of $9.4 million. This was the result We continue to achieve a high level of reuse of of the continued strong growth in land development reclaimed water with 70% of reclaimed water from works across the region. This accounting profi t our 27 wastewater management facilities being included $8.8 million of water and sewerage assets reused and over 7,000 megalitres being used for contributed by landowners and developers. The value irrigated agriculture. We have also signifi cantly of these assets must be represented in our fi nancial reduced the phosphorus and nitrogen loads from accounts as revenue, which increases the Authority’s 42.8 tonnes in 1994/1995 to 3.4 tonnes in profi t for the year. 2003/2004 and nitrogen from 160 tonnes to 23.5 Over the past six years the Authority’s cash position tonnes following commissioning of the three tertiary has reduced from a net cash position of $22.9 million wastewater management facilities at Shepparton, in 1998 to a net debt position of $10.6 million at 30 Alexandra and Eildon. June, 2004. Over the next four years, an extensive During the year we conducted audits at all our capital expenditure program will result in borrowings wastewater management facilities in relation to increasing to a maximum level of around $38 million greenhouse emissions and energy usage. Four of our in 2007/2008. Our level of debt will then start to 27 facilities were identifi ed Category B and actions reduce in the year 2008/2009 and subsequent years have been developed for these facilities. We are also as our forward capital program reduces signifi cantly. working with Diamond Energy to assess the feasibility In January 2004 Goulburn Valley Water received of constructing a power generation unit at ISO 14001 certifi cation for all our 27 wastewater Shepparton, Tatura and Mooroopna wastewater management facilities. This was one of our key management facilities, to recycle methane gas corporate environmental goals for 2003/2004. generated at these plants. Continuing on the environmental front we have The capital works program for 2003/2004 saw added another Land for Wildlife area to the three $22.6 million invested across the region. During the already listed under this government program. year our Major Projects team managed the successful

2 Goulburn Valley Water completion of the $17 million Shepparton high consumption for 2003/2004. Total water consumed rate anaerobic lagoon and the $5 million Kilmore was 27,822 megalitres a reduction of 8.7% compared reclaimed water reuse facility. Work also commenced to 30,467 megalitres for 2002/2003. Other factors on a $6 million upgrade of the Cobram water contributing to this reduction are improved metering treatment plant and the $3.4 million Cobram to accuracy and water saving initiatives implemented by Strathmerton water supply pipeline. our major food processing customers. In July 2003, we commenced a signifi cant community From 1 January 2004, new regulatory arrangements consultation process on water restrictions and apply to water businesses that involve the Essential permanent water saving methods. The outcome from Services Commission (ESC) assuming an economic this consultation process was the development and regulation role for the Victorian water sector. introduction of a new four stage water restriction Goulburn Valley Water is currently developing a three by-law and the introduction of a new permanent year water plan for the period 1 July 2005 to 30 June water conservation by-law. Water restrictions for 2008. The Board and staff of Goulburn Valley Water towns supplied from the Sunday Creek Reservoir are looking forward to working closely with ESC and system continued for 2003/2004, however we were developing a good working relationship. able to ease the level of restrictions slightly. In October 2003, we welcomed two new Board In September the Minister for Water announced the Members, Bruce Chamberlain and Catherine Scott. recommendations from the High Level Task Force Both bring a broad range of skills and experience that which was formed by the Premier in November will enhance and complement the Board. 2002 to review water security for these towns. The The enthusiasm, good governance and strategic major recommendation which was accepted by direction provided by the Board is acknowledged and the Minister is for Wallan to be supplied from the appreciated. We also thank our staff for their great Melbourne system. Design and construction of a new team effort throughout the year. water supply pipeline from Craigieburn to Wallan is being undertaken by Yarra Valley Water and is due for completion by the end of 2005. This project will signifi cantly improve the security of water supply for this region. New water conservation initiatives were a contributing factor to the signifi cant reduction in water

2003/2004 Annual Report 3 Overview

Vision – Corporate Goals Our Shared Aspiration Water and the Environment To be a leader in water management delivering • Manage and conserve the community’s quality customer service. scarce water resources in a holistic and environmentally sustainable manner. Mission – Our Core Purpose • Deliver quality drinking water which complies Goulburn Valley Water will operate its business in an with Australian Drinking Water Guidelines. efﬁ cient, effective and environmentally sustainable manner. • Manage wastewater in an environmentally We will be a professional, innovative and customer-focused sustainable manner and maximise organisation. opportunities for sustainable reclaimed water reuse throughout the Goulburn Valley region. Customers and the Community • Engage and communicate constructively with our customers and the wider community in an open, honest and transparent manner about water and environmental management issues which impact on them. • Maintain ongoing constructive relationships with key stakeholders including major customers, State and Federal Governments, local governments and other regional organizations. • Demonstrate a sense of social responsibility in our business activities and operations.

4 Goulburn Valley Water Assets and Infrastructure Financial Performance • Plan and manage the Authority’s infrastructure and Compliance and asset base in a manner which enhances • Manage the Authority’s fi nancial resources in a our long-term capacity to deliver high quality responsible and accountable manner. services to our customers. • Maintain a positive return on investment to our • Maintain and develop the Authority’s assets in a shareholder. manner which minimises risk to the community, • Manage the capital resources of the Authority the environment and the Authority. in a manner which refl ects the long-term • Contribute positively to the economic development needs of the region. development and prosperity of our region. • Ensure our pricing structure is fair and Organisational Capability supports the Authority’s goals in relation to return on investment, environmental • Recruit, retain and develop an appropriately sustainability and regional development. skilled workforce of capable and committed employees. Corporate Governance • Maintain a corporate culture which engages • Conduct the business affairs of the Board in a employees in key planning and decision-making manner consistent with best-practice principles processes, and maximises opportunities for of corporate governance. innovation and initiative. • Apply a risk-based approach to planning, • Continue to develop and apply systems budgeting and decision-making processes. and technology to support and improve the • Maintain performance management and delivery of quality services and outcomes for reporting procedures that ensure accountability our customers. to the Government and other stakeholders. • Ensure the Authority’s resources are applied effectively to refl ect the changing needs of the organisation.

2003/2004 Annual Report 5 Who We Are and What We Do Goulburn Valley Water is a successful merger of 23 smaller water and sewerage authorities. On March 1, 1994, Goulburn Valley Region Water Authority (trading as Goulburn Valley Water) was constituted by Ministerial Order, under powers conferred by Division 2 of Part 6 of the Water Act 1989 and all other available powers. Goulburn Valley Water is a Statutory Authority responsible to the Minister for Water, The Hon. John Thwaites MP and operates under the provisions of the Water Act 1989. The Authority is governed by a Board of seven members appointed by the Minister for Water. The Board sets policy and direction and is supported by the senior management team. Goulburn Valley Water provides world standard urban water and wastewater services to a population of over 118,000 and 52,700 properties in 54 towns and cities from the outskirts of Melbourne in the south to the Murray River in the north. The Authority supplies water to 54 towns from 40 supply systems and provides reticulated sewerage to 31 regional towns via 27 wastewater management facilities. Bulk water supply is principally from the Goulburn/ Broken, Murray, Steavenson, Rubicon and Delatite River systems and a number of smaller local streams such as Sunday Creek and Seven Creeks. The Goulburn Valley region is known as “the food bowl of Australia”. The Authority services 16 major companies operating food processing plants in the region that require large volumes of high quality water and their wastewater streams create special environmental challenges. Goulburn Valley Water generated annual revenue in 2003/2004 of around $47 million and managed an asset base valued at over $ 457 million. This infrastructure includes many water and wastewater treatment plants and around 2,600 kilometres of water and sewer mains. The Authority directly employs around 170 people, in operational, engineering, ﬁ nancial and administrative roles. This workforce is complemented by partnerships with consultants and contractors to undertake a range of business, technical and operational functions.

6 Goulburn Valley Water Relationship with Government The Authority’s Water Services Agreement (WSA) is the key accountability mechanism between Goulburn Valley Water and the Minister. The purpose of the WSA is twofold. Firstly, to formalise the Authority’s obligations for the provision of water related services to our customers. Secondly, by specifying service obligations, the WSA will provide greater accountability to Government in terms of the level and standard of service provision and improved business efﬁ ciencies. Goulburn Valley Water report quarterly to the Government on performance against targets set in this agreement. Essential Services Commission From 1 January 2004, new regulatory arrangements apply to water businesses that involve the Essential Services Commission (ESC) assuming an economic regulation role for the Victorian water sector. As one of the 22 businesses supplying water, sewerage and related services within Victoria, Goulburn Valley Water’s prices and service standards are to be regulated within the regime. A key aspect of the new regulatory framework relates to pricing and requires water businesses to establish a Water Plan detailing the services to be provided and proposed prices for delivery of those services for the three year period commencing 1 July 2005. The ESC has the role to consider and, if appropriate, suggest amendments and ultimately approve the Water Plan. The Water Plan being developed by Goulburn Valley Water outlines the service delivery results and other initiatives that the Authority proposes to achieve in the three years from 1 July 2005. It also establishes the revenue needs to achieve sustainability of the business and the proposed prices to be charged for the various services provided by the Authority. As such it presents an excellent reference and platform for service and pricing consultation with customers, other stakeholders within the community and relevant regulatory authorities.

Organisation Structure

Board

Laurie J Gleeson Chief Executive

Allen Gale Peter Quinn Graeme Jolly Director-Technical Director-Corporate Director-Finance Services Services Responsibilities Responsibilities Responsibilties Financial Management Operations Corporate Secretary Accounting Services Development Public Relations Accounts Payable Major Projects Legal & Property Billing Services Asset Management Human Resources Treasury Environmental Services Information Systems

2003/2004 Annual Report 7 Our Social Responsibility

Community Community Consultation Service Obligation Community consultation is an essential component Goulburn Valley Water is required under the Water of the successful operation of Goulburn Valley Act to provide concessions and rebates. In 2003/2004 Water. The Authority develops either a community the combined total of these concessions and rebates consultation or a communications strategy for every was almost $1.7 million. The table below outlines major project undertaken and other important issues the value of the Authority’s Community Service such as tariff increases and water conservation. Obligations. Components of a community consultation/ communications strategy may include: Type 2003/2004 2002/2003 • Identiﬁ cation of key stakeholders including Pension $1,469,721 $1,468,260 Concessions multi-cultural and indigenous interests Water & • The consultation level required with each Sewerage $220,905 $214,115 stakeholder Rebate Scheme • Establishment of a Community Reference Utility Relief $6,067 $4,927 Committee to assist with liaison between the Grant Scheme Authority and the community $1,696,693 $1,687,302 • Focus groups • Newsletters/information bulletins • Open meetings and open days • Presentations to service clubs • Regular articles in local papers

8 Goulburn Valley Water Community Reference Committees During 2003/2004 the Authority worked with numerous community reference committees for a number of major projects including: • Stanhope/Rushworth Small Town Sewerage Scheme • Marysville Reclaimed Water Facility • Yarroweyah Reticulated Town Water Supply In addition to the community reference committees for the above projects, community focus groups were also established for a water restriction review, water tariffs and water plan.

Marysville Community Reference Committee Marysville Community Reference Committee The Marysville Community Reference Committee consists of 11 local residents/business people. The purpose B.Row Glenn Bewicke - GVW, Simon Cuzens, Rod Liesfi eld, of the group is to review and provide input into potential site selection for a new reclaimed water storage Keith Ray, Brett Mooney, lagoon and a new irrigation area. Members of the group include people whose property may be a potential Peter Slocomb - GVW F.Row Janet Gilmore, site, neighbours abutting the existing sites, a member from the Taungurung people (indigenous community) Llyod Flarherty and Marysville business people. The Marysville community were invited to nominate for the Community Reference Committee via advertisements in the local papers, newsletters and by personal invitation. Yarroweyah Community Reference Committee At a public meeting at Yarroweyah in July 2003, those in attendance were asked to put their name forward for a Community Reference Committee. Nine people responded and the fi rst meeting of the group was held in late July. The purpose of the group was to identify the needs of the local community in relation to a reticulated town water supply and whether the community wanted to be connected to a town water supply. A survey was prepared by the group and sent to all property owners in Yarroweyah and there was signifi cant support for the project. Public meetings are being held prior to key milestones of the project to ensure that the community is fully briefed. Community Focus Groups An extensive consultation process was undertaken across the region between July 2003 and September 2003, in relation to the Authority’s proposed water conservation and water restriction by-laws. The consultation process consisted of a mail survey, a telephone survey, four focus group meetings, articles in local papers and the Goulburn Valley Water Newsletter and presentations to service clubs. The outcome of the surveys and focus groups was the development of a new four stage water restriction by-law to replace the existing 10 stage by-law and the introduction of permanent water saving measures in the form of a water conservation by-law. Goulburn Valley Water has also conducted focus group meetings about the Authority’s submission to the State Government’s Green Paper “Securing our Water Future”, proposed 2004/2005 water tariffs and the three year water plan. The Authority advertises all focus groups in relevant local papers across the region and invites people to attend from a database of customers who have indicated an interest in participating in focus groups. Management of Social and Economic Impacts The Authority has in place a Hardship Policy and Revenue Offi cers are trained to encourage customers to inform staff about their personal circumstances surrounding non-payment of accounts. The Offi cers then discuss the range of payment options available to the individual customer and assist them in working out the best option for their situation. The Hardship Policy is reviewed and updated on an annual basis. Goulburn Valley Water operates a 24 hour seven day per week Customer Service Centre. This centre takes all calls in relation to service diffi culties. Each call is logged into the Authority’s computerised customer service software Hanson and then dispatched to the relevant district offi ce to attend. Once the service is rectifi ed the fi eld staff complete a form and this is returned to the customer service centre for logging into Hanson and closing the fi le.

Gas Flare - Shepparton wastewater management facility 2003/2004 Annual Report 9 Customer over time. The average importance rating of the top Satisfaction Survey 10 items has increased from 9.08 to 9.52 since 2000. This has important implications for the calculation The views of the Authority’s customers are essential of customer satisfaction scores. As expectations to Goulburn Valley Water. To obtain an enhanced increase, so too must perceptions of performance understanding of our customers’ perceptions and expectations an annual customer satisfaction survey in order to produce the same levels of customer is conducted by an independent market research satisfaction. Current customer satisfaction levels in organisation. The survey is designed to: part refl ect this increase in customer expectations. • Quantify gaps which may exist between customer’s rating of importance of service Energy and attributes and their perception of the Authority’s Water Ombudsman performance on each service attribute. (Victoria) • To determine if customers are prepared to pay for improved level of service, where there is a The Energy and Water Ombudsman (Victoria) performance gap. (EWOV) is an independent body that was established • Measure the Authority’s performance against by the State Government to assist customers who benchmarks established in the previous are dissatisfi ed with some aspect of the service or customer satisfaction studies. interaction with utilities around the state. EWOV The results for 2004 are based on responses classify contacts under four categories, enquiry, to a telephone survey of 303 customers located consultation, complaint and dispute. throughout Goulburn Valley Water’s region. The The number of contacts to EWOV for both the overall customer satisfaction rating of 91.9 is marginally water industry and Goulburn Valley Water in above the 2003 result. The past six years results in the 2003/2004 is set out in the table below. key areas of water supply, wastewater treatment and tariffs are shown in graph below. Goulburn Valley Water Type of Contact The overall satisfaction has deceased for water Water Industry supply, remained steady for wastewater service issues Enquiries 32 982 and increased signifi cantly in the billing/accounts Consultation 4 147 area, compared to the 2003 results. It is important Complaints 0 3 to note that customer expectations have increased Disputes 0 3

2004 Customer Satisfaction Survey 1998 1999 2000 2001 Customer satisfaction by category 2002 2003 2004 110 (weighted satisfactionindex)

100

96.6

95.7 90 95.5

93.1

92.7

92.3

92.4

91.9

91.7

91.8

91.2

90.4

90.1

90.5

89.8 89.8

89.3

89.4

88.5

87.8

87.6

87.7 87.5

86.4

85.4

80 84.5

0 Water SupplyWastewater Accounts Overall 10 Goulburn Valley Water Community Support Goulburn Valley Water actively supports community groups across the region through a range of sponsorships including promotional items such as sports drink bottles, environmentally friendly shopping bags with a water conservation message and monetary support. In addition to the Authority’s support, Goulburn Valley Water Employees also contribute to a charity fund. Goulburn Valley Water’s charity fund committee has raised over $66,500 since its formation in 1988 through staff payroll deductions and other fund raising efforts to assist charities throughout the region. The Committee comprises seven staff members; Jeanette Berry, Joanne Church, Graeme Eadie, Ken Ellis, Karen Ranson, Peter Smith and Neville Whittaker The Committee has had another very active year donating $6,611.70 to charities throughout the region. The charities that the committee donated to this year are as follows:-

Peter Hull and Jeanette Berry, Goulburn Valley Community Fund ...... $2,500.00 presenting a cheque to Amanda Tucker ...... $300.00 Amanda Tucker Typo Station ...... $500.00 Royal Children’s Hospital ...... $500.00 K-Mart Christmas Wishing Tree ...... $1,000.00 Relay for Life ...... $595.00 2 Children - Lord Mayor’s Camp ...... $229.00 Gowrie St. PS– Washing Machine ...... $499.00 Cystic Fibrosis ...... $100.00 Starlight Foundation ...... $300.00 Australia’s Biggest Morning Tea ...... $88.70 The Committee also makes donations to the community in non-monetary ways by giving blood to the Australian Red Cross. Education Over the past 10 years, Goulburn Valley Water has worked closely with education offi cers from other authorities, government departments and local shires throughout the Goulburn Valley region to implement the Goulburn Broken Waterwatch Program. Organisations involved include the Goulburn Broken Catchment Management Authority, Goulburn Murray Water, Department of Primary Industries, Department of Sustainability and Environment, Parks Victoria, Local Government (City of Greater Shepparton, Benalla, Campaspe, Mansfi eld, Mitchell, Moira, Murrindindi and Strathbogie) and the Goulburn Murray Landcare Network. The aim of this Program is to provide schools and the community with a holistic approach to water environment education. Goulburn Valley Water’s relationship with local government is continuing to develop, as demonstrated with the successful implementation of a two year stormwater awareness and education project in the Goulburn Valley region. Victorian Stormwater Action Program (VSAP) funding was obtained to employ a Stormwater Offi cer, who works closely with local government to raise community awareness about stormwater quality issues. Stormwater pollution is a real concern for Goulburn Valley Water, because what is washed into the stormwater drains can end up in local waterways. The Authority draws its raw water from these waterways to supply town water to the catchment community.

Working with Schools Goulburn Valley Water continued its strong focus on education in 2003/2004, through the Goulburn Broken Waterwatch network, undertaking programs/ activities such as Waterwatch, Catchment Capers, Saltwatch, Stormwater and National Water Week.

Jacinta Burke demonstrating the water treatment process to students from Notre Dame College

2003/2004 Annual Report 11 Waterwatch The Waterwatch Program provides schools with the tools to incorporate water activities, especially water quality monitoring, into their curriculum. 70 schools across the Goulburn Valley region participated in the Waterwatch program in 2003. Activities undertaken included water quality monitoring, aquatic invertebrate sampling and habitat surveys. Community Waterwatch monitors tested water at over 250 sites across the Goulburn Broken catchment during 2003/2004. The Program monitors many waterways that have been identiﬁ ed in the River Health Strategy as being Waterways of High Environmental Signiﬁ cance. The Authority’s commitment to the Waterwatch program now involves the employment of three full time staff within Goulburn Valley Water and the support and management of four part time staff outside the Authority.

Saltwatch Salinity is a major issue in the Goulburn Valley region. It is important that students understand the impact that salinity has on the land and rivers. In 2003, 150 students from nine primary schools attended a special salinity awareness day called “A Matter of Salt”. Following the success of the 2003 program it was decided to expand “A Matter of Salt”. During Saltwatch Week 2004 “A Matter of Salt” was conducted at Broadford, Tatura and Longwood. 470 students from 13 schools participated in three salty activities. In Edible Aquifer, students made an aquifer from ice cream, lemonade and lollies. Salty Soils required students to test soil samples for salt and A Taste of Salt tested the students’ sensitivity to salt in water. Students then participated in Saltwatch Sports which involved six races with a salinity theme.

Catchment Capers Catchment Capers is an integrated catchment-wide project developed for upper primary and lower secondary students. It is based on the Waterwatch program but contains additional activities that deal with water, land and catchment ﬂ ora and fauna issues, such as habitat surveys, water conservation, water quality and frog watch. Each month, students monitor a local waterway for turbidity, salinity, dissolved oxygen and temperature and participate in a series of associated activities that complements the monitoring program. During 2003, 25 schools participated in the Catchment Capers program. A dedicated website has been developed for Catchment Capers Schools. The website provides information for teachers and students about the project including student worksheets, water quality data collected by each school, news & events and additional training resources for teachers.

Waterwise School In October 2003 during National Water Week, St George’s Road School in Shepparton offi cially became Victoria’s fi rst Waterwise School. Since then, the Authority has been working with three other schools in the region to become Waterwise. For a school to become Waterwise they must satisfy fi ve criteria. These include: • The insertion of Waterwise principles into the school charter; • The inclusion of water conservation issues across the school curriculum; • An audit of water consumption in the school and identifi cation of potential opportunities for water conservation; • Participation in Goulburn Valley Water’s National Water Week activities; and • The use of school newsletters and other activities to raise awareness of water conservation issues with the wider school community including parents.

Students participating in Saltwatch activities May 2004

12 Goulburn Valley Water Mural Painted by Marysville PS for National Water Week 2003

Working with the Community Goulburn Valley Water recognises the importance of providing the community with opportunities to learn about water conservation along with the roles and responsibilities of the Authority. Goulburn Valley Water conducts its community education through a range of activities such as tours of facilities, talks at local service clubs, stands at exhibitions, brochures, newsletters and the website. Goulburn Valley Water also works with the community to monitor streams and rivers in the region as part of the Waterwatch program. During 2003/2004 Waterwatch assisted 120 volunteers to monitor their local waterway for parameters including turbidity, salinity and nutrients. These monitors are part of sub-catchment networks which meet regularly to discuss and interpret results and initiate community action to help improve the health of the catchment.

Facility Tours During 2003/2004 over 550 people visited Goulburn Valley Water’s facilities on organised tours. The community visited water treatment and wastewater management facilities at Kilmore, Shepparton, Broadford, Tatura Kyabram and Euroa. The Sunday Creek Reservoir was also a popular destination for the local community. During these tours, Authority staff explained the water and wastewater management processes and discussed the role of Goulburn Valley Water in the community.

Exhibitions Goulburn Valley Water participated in three regional events in 2003/2004. In February 2004, the Authority set up a display at the Shepparton Bush Market Day to provide the community with information about water conservation and water treatment. In April 2004, Goulburn Valley Water displayed water quality and conservation information at the Goulburn Valley Field Day at Stanhope. The display promoted the range of activities that schools and the community can get involved with under the Waterwatch program. In May, the inaugural Lifestyle Fantastic was held at Cobram for which Goulburn Valley Water was a gold sponsor. At this event, Goulburn Valley Water took a holistic approach to water education. Visitors to the stand made their way through a series of exhibits covering macro invertebrates in waterways, water treatment processes, water conservation and wastewater treatment and reuse. National Water Week The major activity for National Water Week in 2003 was the “Water For Life” Water Festival. Over 3,400 school students and community members had the opportunity to learn more about our water resources by participating in a number of free events. The community and schools could participate in competitions such as the River Yarns writing competition, a photographic competition for the best historical, recreation and nature photos and a poster competition. Seven schools prepared a Mural with the theme ‘Our Catchment’. The murals travelled around the region after Water Week. Two performing arts groups, The Ricky D Rainman Show and Earth Quest visited a number of schools and taught students about stormwater and water conservation. A free movie night with a water theme was held at Swanpool Cinema and Kyabram Fauna Park. There were wetland tours at Mangalore and Yea. Two river cruises were held at Nagambie where over 100 people took advantage of a scenic cruise along the Goulburn River. Tours of Goulburn Valley Water’s water treatment and wastewater management facilities were also conducted. The success of National Water Week was due to the organising committee made up of representatives from Goulburn Valley Water, Goulburn Broken Catchment Management Authority, Goulburn Murray Water, Landcare and Local Government.

2003/2004 Annual Report 13 Building and Construction Stormwater Awareness Campaign Billboard.

Stormwater Program The Stormwater Program is a school and community In May 2004, the Stormwater Offi cer worked closely education program. The Stormwater Offi cer works with the City of Greater Shepparton to develop a with local governments across the region and the Building and Construction Stormwater Awareness Goulburn Valley Regional Waste Management Group Campaign. The purpose of the campaign is to educate to educate the community on stormwater issues. tradesmen about the effect that their building site can In October 2003, the No Butts campaign was have on the urban stormwater system. conducted throughout the Goulburn Valley. The The theme for the campaign is “If fi sh can’t live in campaign was aimed at educating smokers that it you can’t drink it.” This campaign emphasises that cigarette butts are litter, and that smokers need to take for the Goulburn Valley region, water for drinking personal responsibility for disposing of their waste. is drawn from local waterways and this is where The integrated campaign encouraged local councils pollution from stormwater drains ends up. and businesses to be proactive in combating cigarette butt litter. A key component of the campaign was to distribute personal ashtrays to smokers so that they can dispose of every butt.

Bluey - the No Butts campaign mascot spreading the stormwater message

14 Goulburn Valley Water Water Quality The delivery of safe and clean water to customers is essential to Goulburn Valley Water and the Authority is committed to ensuring that the water supplied to drinking water consumers meets relevant health criteria and community expectations. To ensure that these requirements are met the Authority developed a Drinking Water Quality Improvement Plan in 1996. The plan established water quality targets and a capital investment strategy to improve the quality of the water supply systems across Goulburn Valley Water’s region. Over the past 12 months the Authority has made excellent progress towards achieving the quality targets established in the plan and the capital investment program is now largely complete, enabling the focus to shift towards optimising management and operation of treatment plants and assets. During 2003/2004 the Authority invested $585,000 in the duplication of disinfection systems, back up power supply for disinfection systems and upgrade of chlorine monitoring systems across the region. A major upgrade of the Cobram water treatment plant commenced in 2003 and in 2004 construction commenced on the Cobram to Strathmerton pipeline.

Cobram Water Treatment Plant Upgrade In September 2003 work commenced on the $6 million upgrade of Cobram water treatment plant. This upgrade will ensure that the plant has the capacity to meet the future growth of Cobram and surrounding towns over the next 20 years. The upgrade will also improve the quality of Cobram’s water. Part of the project involved the construction of a new clear water storage tank. This tank will provide an additional 4.8 megalitre storage capacity at the Cobram water treatment plant. The other component of the project was the construction of the new water treatment plant. The new plant will operate using a Dissolved Air Flocculation Filtration (DAFF) system and will increase the plant’s capacity by seven megalitres of water per day to 24 megalitres per day. The upgrade of the Cobram water treatment plant is programmed for completion by the end of 2005. Construction of new clear water storage tank at Cobram Cobram to Strathmerton Pipeline In January 2004 construction of a 20 kilometre water supply pipeline between Cobram and Strathmerton commenced. This pipeline will replace the current water supply for Strathmerton and Kraft Foods which is drawn from the Katunga Deep Lead aquifer. Licenced water allocations from this aquifer are well in excess of the resource capacity and investigations show that the aquifer level is declining and water quality is deteriorating. By implementing the supply link from Cobram, Goulburn Valley Water is making a signiﬁ cant contribution to the reduction in demand on this valuable groundwater resource. The project will involve the construction of a water supply pipeline to transfer potable water from Goulburn Valley Water’s water treatment plant in Cobram to Strathmerton and is anticipated to cost $3.4 million. In August 2002, the Authority received funding assistance for this project from the State Government under the Regional Infrastructure Development Fund (RIDF) and from the Federal Government under the Department of Transport and Regional Services’ Dairy Regional Assistance Program (DRAP). Kraft Foods has also contributed to the pipeline. The pipeline will be constructed along the Murray Valley Highway and provides the community of Yarroweyah with the opportunity to reticulate their township with a potable water supply. Laura Oaten with a sample of raw water and treated water

2003/2004 Annual Report 15 Yarroweyah Water Reticulation Project The township of Yarroweyah is not currently serviced by Goulburn Valley Water and properties currently draw water from the Katunga Deep Lead. In July 2003, Goulburn Valley Water held a public meeting at Yarroweyah to outline to the community the opportunity for a potable town water supply due to the construction of the Cobram to Strathmerton pipeline. At the meeting there was overwhelming support for a town water supply. To date 51 properties out of a possible 74 have committed to connecting to the reticulated system. It is anticipated that the residents of Yarroweyah will be able to connect to water as early as December 2004. Safe Drinking Water Act 2003 Signifi cant progress has been made by Goulburn Valley Water towards the implementation of a Water Quality Management System. This integrated system has been designed to meet the requirements of the Safe Drinking Water Act 2003, which came into effect on 1 July 2004. One of the Act’s requirements is increased frequency of water quality monitoring. As a consequence Goulburn Valley Water has increased the frequency of conducting bacteriological tests from a monthly to weekly interval. 2003/2004 was the fi rst full twelve month period that weekly bacteriological monitoring was undertaken by the Authority. Another requirement of the Safe Drinking Water Act is to make information about water quality monitoring available in an open and transparent manner. Goulburn Valley Water produces a Water Quality Annual Report and this is made available to the general public via the Authority’s web site and at local libraries in the region. In keeping with Goulburn Valley Water’s open consultative approach, the Authority will continue to explore mechanisms for communicating its water quality performance to customers in addition to the many other services provided to ensure that customers are informed of water quality issues. One example of a new initiative is the purchase and implementation of the Bridgesoft Operations Database during 2003/2004. The establishment of this software was an Australian fi rst, facilitating centralised data acquisition and streamlined reporting of real time, fi eld and independent laboratory data related to operations management. In the medium term Goulburn Valley Water has a strategy to further develop this system to enable automatic reporting and web publishing as an effi cient means of complying with the Safe Drinking Water Act 2003 obligations. One of these obligations is to make water quality monitoring data available to customers within seven days of compilation. Goulburn Valley Mark McNeil reviewing Water has plans in place to present this data on its website through the application placement of survey pegs for the new Yarroweyah Water of the Bridgesoft Operations Database. Reticulation Project Risk Management Risk management underpins every aspect of Goulburn Valley Water’s operation from facility security, water quality, environmental, IT security, emergency management and dam safety, which is why a Corporate Risk Strategy was developed in 1995. During 2003/2004 the Authority undertook a major review of the Corporate Risk Strategy. This strategy is a living document and is continually updated. In addition to identifying the key business risks facing the Authority, a revised risk assessment process was established embracing the concepts in AS/NZS 4360:1999. Programs such as the water quality catchment to tap, environmental management and occupational health and safety risk frameworks are just some of the examples forming Goulburn Valley Water’s risk strategy. To support the Authority’s enterprise risk approach, the ERA Methodware risk management platform was purchased during the year. Development of this platform is proposed to be fi nalised during 2004/2005, facilitating streamlined qualitative and quantitative risk assessment, risk treatment selection and performance tracking. The initiatives now in place will enable consistency of application and reporting of risk issues and effective risk management across the business.

16 Goulburn Valley Water Incident and Emergency Emergency management has been recognised as an important issue by Goulburn Valley Water for some time and the Authority is well prepared to respond to unplanned events and to minimise any impact on its customers. The Authority undertook a complete revision of its Corporate Emergency Management Plan during 2002/2003 to facilitate better integration with the Emergency Management Manual of Victoria, and emergency plans of associated bodies such as Police, SES, Department of Human Services and the seven municipalities servicing the Authority’s Region. The new plan also fully integrates with the Authority’s Risk Management Plan, bringing a greater risk focus to emergency management responsibilities. This plan has since undergone minor revision on a number of occasions as a normal activity within the Operations Management System. During 2003/2004 the Authority conducted ongoing training in the application of the Corporate Emergency Management Plan supplemented by two SES facilitated desk top exercises. The ﬁ rst exercise tested stakeholder understanding of protocols and conﬁ rmed the robustness of the plan. The second more rigorous exercise involved a long term scenario testing change of shift and support systems. The success of both exercises was measured by the adequacy of the plan and the review process forming part of the exercises. Goulburn Valley Water also actively participates at committees and exercises at municipal and regional level. Through this involvement and the commitment to our own internal planning processes, the Authority is well placed to manage emergencies should they arise.

Water main replacement work in Shepparton

Dam Safety Goulburn Valley Water undertakes a dam safety program including regular monitoring and surveillance of its dams. This is supported by annual engineering inspections of 12 signifi cant dams by an external specialist consultant. A portfolio risk assessment carried out in 1998 reviewed 9 storages having a signifi cant hazard rating. The study identifi ed that from an engineering viewpoint, four of the storages (Broadford No 3, Hollowback, Honeysuckle Creek and Sunday Creek) were unlikely to comply fully with current ANCOLD design standards. With the exception of Honeysuckle Creek Reservoir, all storages have a relatively low risk profi le. Works to rectify defi ciencies at Sunday Creek, Hollowback and Broadford No. 3 reservoirs are therefore planned to occur within the next fi ve years and the decommissioning of Honeysuckle Creek Reservoir is programmed for 2004/2005.

2003/2004 Annual Report 17 Honeysuckle Creek Reservoir Broadford (No. 3 Reservoir) Since June 2002, the Violet Town community has This reservoir provides a balancing storage upstream enjoyed fi rst class quality, high security water via a of the Broadford Water Treatment Plant. In 2003 $1.4 million pipeline from Euroa. The Violet Town consultants completed a detailed investigation of the community gave overwhelming support in 2000 to embankment. No critical defects were discovered, but build this pipeline and decommission the reservoir, it was confi rmed that the storage has an unacceptable to improve Violet Town’s water in preference to probability of a piping failure compared with more remediating Honeysuckle Creek. After an extensive recent storages. The provision of a full height rock community consultation process and review by fi lter has therefore been recommended. This work, the Department of Sustainability and Environment, together with some minor repairs and upgrading, is Goulburn Valley Water’s proposal to decommission planned to take place in 2004/2005. Honeysuckle Creek Reservoir and return the 240 megalitre bulk water entitlement to the government Other Dam Safety Investigations for environmental fl ows received Ministerial approval Further investigation and reports are proposed in in January 2004. 2004/2005 on the following dams:- Decommissioning will return Honeysuckle Creek to • Abbinga Reservoir – Euroa its natural state, improve the health of the ecosystem • Nine Mile Creek Reservoir – Longwood and create a more stable environment for platypus • Kilmore No.3 Reservoir – Kilmore and fi sh populations along the reach of the creek. Decommissioning is due to commence in October Development 2004 and will take approximately four months to complete. Goulburn Valley Water has a social responsibility to ensure that wherever possible new development in Sunday Creek Reservoir the region will be supplied with water and sewerage Sunday Creek Reservoir is Goulburn Valley Water’s services. largest storage with a capacity of 1,700 megalitres. It During 2003/2004 1,552 new lots were developed has been identifi ed that the storage fails to comply within the Authority’s region. The major growth centre with current ANCOLD design standards. A review was Shepparton which contributed approximately of the Sunday Creek Reservoir embankment in 27% of all new allotments created. Wallan was 2003/2004 has confi rmed the need to upgrade this the second highest growth area, contributing structure by the provision of a downstream fi lter approximately 20%. The chart below outlines the zone. Work will commence in 2004/2005 on the site major growth areas across the region and compares investigation and detail design of the work. the number of new allotments created in 2003/2004 with the previous year.

Major Growth Areas - New Allotments 2003/2004 2002/2003 500

414 400

351

300 303

200 175 138 100 102 110 107 87 96 68 49 35 27 0 Cobram Kilmore Kyabram Mansfield Mooroopna Shepparton Wallan 18 Goulburn Valley Water Honeysuckle Creek Reservoir

Our People

Board Board Composition The Board of Goulburn Valley Water operates The Board comprises of seven members appointed under the provisions of the “Water Act 1989” and has by the Minister for Water for a three year term. ultimate responsibility for the corporate governance For the period 1 July 2003 to 31 October 2003, the of the Authority. members of the Board were Mijo Darveniza (Chair), The Board is responsible for setting strategic James Ure (Deputy Chair), Vera Fleming, Michael Hall, direction, establishing goals and objectives for Jenny Houghton, Allan Layton and Margaret Rae. executive management and monitoring the business on On 1 November 2003 fi ve Board positions became behalf of its customers and the Victorian Government. vacant and the Minister for Water reappointed three Key corporate governance responsibilities of the existing and two new Board members for a three Board include: year term. The current members of the Board are • The adoption and monitoring of corporate Mijo Darveniza (Chairman), Jenny Houghton (Deputy strategies, plans, policies and the annual business Chairman), Bruce Chamberlain, Michael Hall, Allan plan for Goulburn Valley Water; Layton, Margaret Rae and Catherine Scott. • Monitoring operational and fi nancial Under the direction of the Chairman, an external performance on a regular basis; consultant was engaged to review the collective performance of the Board and the contribution of • Ensuring that risk management systems are in individual members for the 2003/2004 year. A report place to cover environmental, operational and outlining the fi ndings of this review was provided to fi nancial risks; the Minister for Water. • Reviewing the performance of the Chief Executive Offi cer and senior management; • Enhancing shareholder and community value; • Ensuring that Goulburn Valley Water has policies and procedures to satisfy its legal and ethical responsibilities; and • Reporting annually to the Victorian Government and other stakeholders on the fi nancial and operational performance of the Authority.

2003/2004 Annual Report 19 a range of community roles including Shepparton Golf Club, Goulburn Valley Health, Fairley Leadership Program and the Goulburn Valley Grammar School. Allan Layton retired as General Manager Operations, Southern Hydro after more than 30 years in the Victorian electricity industry. With a technical background, Allan is also experienced in training and development, industrial relations, electricity trading, and business and ﬁ nancial management. Allan is an active volunteer with the Country Fire Authority and with Red Cross, President of the Alexandra District Hospital, Treasurer of the Darlingford Upper

F.Row Bruce Chamberlain, Goulburn Nursing Home, and Vice-President of the Margaret Rae, Catherine Scott, Alexandra District Ambulance Service. Michael Hall Board Members B.Row Jennifer Houghton, Margaret Rae has a background in both the public and Mijo Darveniza, Allan Layton Mijo Darveniza OAM, Chairperson. Mijo is a retired private sectors and a well established professional Shepparton businessman. He has been involved career in the university sector of higher education in the water industry since 1973 and has been particularly in the areas of policy development Chairman of Goulburn Valley Water since March, and application, strategic planning, fi nancial analysis 1994. Mijo has led the Authority through a signifi cant and legislative matters. Margaret has extensive period of reform in the water sector and maintained experience on a range of boards and committees, excellent relationships with the Government and including two terms as Deputy Chair of the Lake other stakeholders. His time as Chairman has seen Mountain Alpine Resort Management Board and a major program of upgrade and renewal of water current appointments to the Board of the Alexandra and wastewater infrastructure, major tariff reforms District Hospital and Treasurer/Secretary for the and the delivery of improved water and wastewater Buxton Rural Fire Brigade. Margaret brings a range services to many customers throughout the region of skills to bear on the complex issues managed Jennifer Houghton, Deputy Chair, resides at by the Board in conducting its core business and Longwood and has been a member of Goulburn in future planning and development initiatives. Since Valley Water Board since November, 1997. She has moving to Buxton, Margaret has also become an a background in teaching, is an active commercial active member of the Goulburn Broken Waterwatch pilot and a Director of the Aerospace, Defence and Monitoring Group and has developed a keen interest Maritime Foundation. As a Board Member of the in the health of our rivers. Kangan Batman Institute of TAFE, Jenny follows her Catherine Scott lives at Bylands near Kilmore and passion for aviation and education for which she has operates a beef cattle stud. She is an experienced been recognised nationally and internationally. She board member and senior executive with over 15 operates an award winning vineyard in the foothills years experience in the fi nance/investment banking of the Strathbogie Ranges. industry with a strong focus on infrastructure Bruce Chamberlain is a Certifi ed Practising and agribusiness funding. Catherine has a unique Accountant living and practicing in Kilmore and has a combination of investment banking and corporate Bachelor of Business majoring in Accounting. He has experience in aviation, infrastructure and agriculture been Chairman of The Kilmore & District Hospital sectors. Catherine is a non-executive director of and Kilmore Agricultural & Pastoral Society and is V-Line Passenger Pty Ltd and VicForests. She is also presently Chairman of the Board of The Kilmore a Board Member of Goulburn Broken Catchment International School. He is also Treasurer and a Management Authority (GBCMA) and is Chair of Board Member of The Equestrian Federation of GBCMA Audit Committee. She holds a Bachelor of Australia (Victorian Branch) and a Trustee (and past Science (Honours) degree, a Bachelor of Commerce Chairman of Trustees) of The Kilmore Racecourse Degree and is a graduate of the Australian Institute & Recreation Reserve as well as a Director of the of Company Directors. Victorian Indigenous Nurseries Co-Operative Ltd. Michael Hall lives in Shepparton and has a Bachelor of Board Meetings Arts majoring in Economics and Accountancy. Michael Board meetings are scheduled for the fi rst is a member of the Institute of Chartered Accountants Wednesday of each month except January. of Scotland and Australia, a Registered Tax Agent and Additional meetings are convened from time a Registered Company Auditor. Michael is currently a to time as circumstances arise and periodic Partner in charge of Audits and Practice Administration infrastructure inspections and consultation meetings at Maxwell Brown and Mountjoy. Michael is active in are undertaken throughout the year. 20 Goulburn Valley Water The Chief Executive and senior executives attend all the directors judgement. The Board Chairman, Mijo Board Meetings. The Director – Corporate Services Darveniza, is an ex-offi cio member of the Committee. Peter Quinn is the nominated Board Secretary and The Committee Secretary is the Director – Finance, provides advices to the Board on governance matters. Graeme Jolly. Board Committees The Remuneration and Performance Committee The Board has established three Committees to reviews the performance and remuneration of senior assist in carrying out its functions and responsibilities. executives within the policy parameters issued by The Chairman convenes the Remuneration and the Government Sector Executive Remuneration Performance Committee and is an ex-offi cio member Panel (GSERP). The Committee, on behalf of the of all other Committees. The Chief Executive attends Board, strives to attract, retain and motivate senior meetings together with senior executives as required. executives of the quality required to provide sound Minutes of Committee meetings are presented to performance and leadership of the Authority. the full Board. The Remuneration Committee members are Mijo The Audit Committee is delegated the task of over Darveniza (Chair), Jenny Houghton, Michael Hall and viewing all fi nancial matters including appointment Catherine Scott. of external and internal auditors, review of audit The Operations, Environment and Safety Committee programs, adequacy of internal fi nancial controls, is responsible for reviewing the Authority’s operating and accounting policies and controls. The operational/environmental performance, compliance Victorian Auditor-General is responsible for the audit with the EMS and water quality guidelines. The of the Authority’s fi nancial records. Johnsons MME Committee assists the Board in fulfi lling its duties (Chartered Accountants) have been appointed by the Auditor-General as his Agent for the year ended and responsibilities relating to OH&S policies and 30 June 2004. Pitcher Partners are engaged as the standards. Authority’s internal auditors. The Operations, Environment and Safety The Audit Committee members are Michael Committee members are Allan Layton (Chair), Bruce Hall (Chair), Jenny Houghton and Catherine Chamberlain and Margaret Rae. The Board Chairman, Scott. All members are independent in character Mijo Darveniza, is an ex-offi cio member of the and judgement and there are no relationships or Committee. The Committee Secretary is Director circumstances which could affect, or appear to affect, – Technical Services, Allen Gale.

Audit & Remuneration Operations Special Board Board Compliance & Performance Environment & Meeting Name Committee Committee Safety Committee** No of No No of No No of No No of No No of No Meeting Attended Meeting Attended Meeting Attended Meeting Attended Meeting Attended Mijo Darvenzia 11 9 2 1 4 2*1131* Jenny Houghton 11 11 224411 Michael Hall 11 11 224411 Allan Layton 11 11 2 1 3 3 Margaret Rae 11 11 2 2 3 3 Catherine Scott 771 2211 (Appointed 1/11/2003) Bruce Chamberlain 7711 22 (Appointed 1/11/2003) Vera Flemming 431122 (retired 31/10/2003) Jim Ure 4311 (retired 31/10/2003) * ex-ofﬁ co member ** Includes 1 meeting of predecessor - Environmental Audit & Development Committee

2003/2004 Annual Report 21 L-R Graeme Jolly, Senior Management Laurie Gleeson, Allen Gale, Peter Quinn Goulburn Valley Water’s senior management team In 2001 Allen completed his term as Federal is led by Chief Executive, Laurie Gleeson. Laurie is President of the Australian Water Association supported by three directors, Allen Gale Director (AWA), the peak water industry association in - Technical Services, Graeme Jolly Director – Finance Australia. He has been involved at a state and federal and Peter Quinn Director - Corporate Services. level with AWA for more than 25 years. Also, in Laurie Gleeson has held senior executive positions 2001 Allen was invited to represent Australia at a within the Victorian Water industry since 1980 United Nations Environment Program workshop in and lives in Shepparton. Laurie is a member of the Japan on protecting coastal and marine ecosystems Australian Water Association, a Member of the from land-based activities in the Asia Pacifi c region. Water Services Association of Australia, a Member He is currently leading a national water industry of the Australian Society of Certifi ed Practising group in developing community engagement in the Accountants, Member of the Institute of Company management of biosolids. Directors, a Member of the Executive Council of Graeme Jolly joined Goulburn Valley Water in the Institute of Water Administration since 1983 - October 1995 after 11 years experience with a past President and Treasurer, Member of the Audit multi national Chartered Accounting fi rm, and 10 Committee for the City of Greater Shepparton years in a Senior Finance role with a publicly listed and is a member of a number of regional natural company. Graeme has a Diploma of Business - resource management forums in Victoria. Accountancy and is a member of the Institute of Laurie has overseen dramatic rationalisation of Chartered Accountants of Australia, and the Institute the water industry at local, regional and state levels of Water Administration. Graeme is a member of the during his time with Goulburn Valley Water. He VicWater Finance Issues Steering Committee, and is has been an activist for structural reform, greater an active member of various VicWater industry task effi ciency and high standards of customer service groups including Price Determination, Tax Equivalent in the Victorian water industry. Under Laurie’s Regime and Asset Valuations. Graeme is a member leadership Goulburn Valley Water, in partnership with of the Board of Management, and Chairman of the industry has actively promoted waste minimisation Audit Committee of Goulburn Valley Health. and cleaner production initiatives. The Authority has Peter Quinn joined Goulburn Valley Water in 1996 encouraged and provided fi nancial assistance to after 16 years experience in the rural water sector major trade waste customers to undertake audits in Victoria. Peter is a qualifi ed Valuer with signifi cant of their production process and to develop waste experience in the acquisition and management of land minimisation plans. This has resulted in a signifi cant by water utilities, and is a member of the Australian reduction of trade waste loads which has achieved Property Institute. Prior to joining Goulburn Valley very positive outcomes for the environment. Water Peter was responsible for a range of property Allen Gale joined Goulburn Valley Water in 1999 and legal functions for Goulburn-Murray Water, the after more than 30 years working with national and largest rural water authority in Victoria, and was international consulting engineering and science involved in signifi cant change management projects companies. Allen, a civil engineer with a Master of during the restructuring of the rural water sector. Engineering Science Degree, and who was based He completed the Executive MBA program at the in Perth for 20 years prior to moving to Goulburn Australian Graduate School of Management in 2000 Valley Water, has experience throughout Australia, and in 2003 was awarded a Churchill Fellowship to the Asia-Pacifi c and USA in all aspects of water and study water resource issues across the USA and environmental engineering. In addition to working Europe. Peter is currently undertaking the role of with a wide range of major private and public clients, Secretary/Public Offi cer for the Institute of Water Allen was an adviser to the Hong Kong and Malaysian Administration. governments in wastewater management and advised the West Australian Minister for the Environment on restructuring of the water industry in WA.

22 Goulburn Valley Water Wayne Reither taking a Peter McNair, at the backwash wheel customer service call at Alexandra water treatment plant

Staff Profi les Works Coordinator Peter McNair is a works Coordinator in GoulburnValley Customer Service Offi cer Water’s South East District. The main responsibility of Goulburn Valley Water operates a 24 hour 7 day the role is coordinating a small team of operations a week Customer Service Centre. The Customer and/or maintenance employees, undertaking day Service Centre was established in 1998 and is to day activities related to Goulburn Valley Water’s manned by fi ve employees who work on a 24 hour services provided to customers. roster system. Peter has worked in the local water industry for Wayne Reither has been with the Authority for 28 30 years with four local water authorities, of which years and has experience in all aspects of water and the last seven years have been with Goulburn Valley sewer. He joined the Customer Service Centre during Water. The previous three authorities were SR&WSC the establishment stage of the department. for 10 years, Shire of Alexandra for 10 years and Mid Wayne believes that joining the Customer Service Goulburn Water for three years. Centre was the highlight and the most challenging The day to day role of the Works Coordinator time of his career with Goulburn Valley Water. He is fi lled with emergencies like burst water mains, said that the set up required the compilation of blocked sewer mains, faulty sewer and water pumps. contacts and records and the development of a On a daily basis Peter organises meters to be read, management system. Wayne said that this was an repairing of small leaks and ordering materials and important part of the establishment process as fi ttings for jobs. the Customer Service Centre is the main hub of In addition to the regular daily tasks Peter has to communication for Goulburn Valley Water. organise water tappings and sewer point installations Every shift is different in the Customer Service for plumbers. The organising of planned maintenance Centre. A typical day for Wayne will involved is another task that he undertakes, including the answering calls from customers in relation to problems cleaning of water tanks, sewer pump stations, mains with water and sewerage reticulation, fi nalising “Dial fl ushing and sewer main jetting. Before U Dig” requests and monitoring the SCADA Peter’s most challenging experience with Goulburn system to ensure water treatment plants and sewer Valley Water is pumping water from Lake Eildon to pump stations are operating correctly and report any the Bonnie Doon reservoir. Over the last few years problems to operational staff. In addition he assists Lake Eildon has been extremely low and there has operations with calls and information, updates and only been a small fl ow of water under the Bonnie maintains reservoir storage levels and sewer pump Doon bridge where the water for the reservoir is station operation spreadsheets and prepares a daily pumped from. Water is pumped from the creek report to all districts. into a tank then it is pumped up to the reservoir. The challenge is to keep a steady supply of water without pumping sand when the fl ows are low and maintaining the security of the tanks when heavy rain increases the fl ows.

2003/2004 Annual Report 23 Wastewater Management Facility Operator Goulburn Valley Water has 27 wastewater management facilities across its four regions. Jim Stephen is a wastewater management facility Operator in the South West district and is responsible for the Seymour wastewater management facility. Jim has been worked with Goulburn Valley Water and its predecessor Mid Goulburn Water for over 12 years and has been working as a wastewater management facility operator for the past two years. Each morning Jim goes to the Seymour wastewater management facility and records the evaporation level and the rain gauge. He then drives around the lagoons to ensure that everything is as it should be. One of the most important tasks Jim Jim Stephen testing reclaimed undertakes is the regular sampling of the reclaimed water, this is to ensure that the water at Seymour wastewater management facility plant is operating correctly. During the irrigation season samples are taken on a weekly basis. The samples are sent to an independent laboratory for testing of E.Coli. Other ﬁ eld testing includes groundwater bores, lagoon monitoring and soil sampling. Jim is currently undertaking his Certiﬁ cate III in Water Operations and said that returning to study has been very enjoyable, but has also been one of the biggest challenges in his role with the Authority. The highlight of Jim’s career with Goulburn Valley Water has been the involvement with the tree plantation at Seymour, to see a project from the start and how well the trees are going in such a short time. He is looking forward to seeing the project through to completion in about eight years time.

Environmental Scientist Amy McPhee joined Goulburn Valley Water approximately 18 months ago after graduating from The University of Melbourne – Dookie Campus. Amy works in the Authority’s Environmental Services team as an Environmental Scientist and has a Bachelor of Applied Science (Natural Resource Management). Since joining the Authority Amy has completed Certifi cate IV in Workplace Assessment and Training and an Environmental Auditing Course. This enables Amy to deliver the Environmental Module of Certifi cate II – Water Operations course to Goulburn Valley Water’s operations staff. The training covers wastewater spills, biodiversity, the Environmental Management System and the Authority’s intranet software. Amy shares the training responsibilities with her Environmental Services colleagues. In addition to her training responsibility Amy also undertakes internal audits of the Environmental Management System and external audits of the Authority’s third party reclaimed water reusers. Amy is also responsible for ensuring that sampling of wastewater, rivers, groundwater, biosolids and soil is undertaken by operations staff. She analyses the results of this sampling and prepares a number of reports using the data. The main one being the monthly report to the Board on EPA licence compliance. The highlight of Amy’s career with the Authority so far, has been the ISO 14001 certifi cation of the Environmental Management System. Another highlight was her involvement with implementing the Biodiversity Strategy, especially the Land for Wildlife Programs at Shepparton and Marysville. Amy is looking forward to taking on more challenging projects and having more responsibility in the future.

Amy McPhee, participating in National Tree Planting Day

24 Goulburn Valley Water Personnel Training As at 30 June 2004, the approved establishment Staff training continues to be a strong focus for workforce for Goulburn Valley Water consisted of Goulburn Valley Water. The Field Training Strategy, 169.25 full time equivalent (FTE) positions a reduction developed in November 2002 is fully supported by of 2.75 FTE since 30 June 2003. the Authority’s Board and senior management. As a testament to this support, 18 employees achieved Staff As At Female FTE Male FTE 30 June 2004 Certifi cates in Water Operations in September 2003. Four employees achieved Certifi cate III and Senior Management 0 4 14 employees, including three Trainees, achieved Managers 1 14 Certifi cate II. Administration 25.25 11 Technical 4 35 Presentation of the certifi cates was held at the Operations 3 67 Australian Water Association Operators Conference Customer Service 0 5 in Shepparton in early September with another TOTAL 33.25 136 presentation at the Authority’s Operations Centre in Shepparton in late September. Retirements In addition to the above courses 12 employees Goulburn Valley Water farewelled three long-serving successfully completed the challenging program for employees during 2003/2004. Austin Cosgriff retired Certifi cate III Frontline Management. 25 Operational after 18 years. John Dagger after 23 years and Glen and Administrative employees are currently Thorsen chose early retirement after 15 years. undertaking Certifi cate III in Business Administration with Southern Edge Training which should be Long Service completed by the end of 2004. Goulburn Valley Water has a very dedicated loyal Goulburn Valley Water is currently in the process of workforce. There are 33 staff members who have developing maintenance modules for Certifi cate II in over 10 years service with the Authority and its Water Operations, which will be delivered in house. predecessors. Of those 33 employees, 16 have 20 or Chisholm TAFE is assisting Goulburn Valley Water more years service. with the development of assessment tools for use by EEO the Authority’s qualifi ed workplace assessors. Goulburn Valley Water is committed to the This means that maintenance and construction employment and conduct principles expressed in fi eld staff who previously had limited opportunity to the Public Sector Management and Employment Act participate in Certifi cate training will now have access 1998. It has adopted policies and processes to ensure to training which will develop their existing skills and merit and equity in employment, accountability in add further value to their teams and provide them performance and diversifi cation in structure. with a nationally recognised qualifi cation. As part of annual reporting requirements Goulburn Valley Water provides information to the Offi ce of Public Employment on policies and processes with regards to employment and conduct principles, employee statistics and grievances. The Authority continues to embrace “best practice” in its people Recipients of Certifi cate II, polices and actively encourages recruitment of Certifi cate III Water women into non-traditional roles. Operations and Certifi cate III Front Line Management with Director - Technical Services Allen Gale and Human Resource Co-Ordinator Yvonne Creece

2003/2004 Annual Report 25 Occupational Health and Safety, Environmental and During 2003 health and safety training was provided Licensing Procedures and other core Certifi cate II and to all middle and senior managers throughout III modules are being delivered in house on a regular the organisation. This training, facilitated by an basis. Technical modules are also being delivered to experienced OH&S consultant, provided managers fi eld staff at both Certifi cate II and III levels. with the opportunity to better understand their In-house training will be further enhanced with health and safety roles and responsibilities. another fi ve employees to undertake Certifi cate IV Other employees across the Authority attended Workplace Assessor and Trainer by the end of 2004. career and industry based training courses and Occupational Health and Safety continues to be seminars including OH&S & Contractors, Red Card a high training priority for Goulburn Valley Water. A Induction and a variety of different software courses. signifi cant number of employees attended a range In September 2003, the Annual AWWOA of courses designed to help protect employees and Conference was held in Shepparton. Goulburn Valley members of the public. Training in the Authority’s Water encourages Operation employees to submit safety policies and procedures is provided to all new papers for this conference. Neil Healey received third operators as part of a formal induction process. prize in best operator paper section for his Technical Operational and technical employees are trained in paper on drought management in the South West more specifi c areas including: region. Jamie Madgwick received second prize in the Operator Posters section for his poster on low • Confi ned space entry water levels in Waranga Reservoir and Peter Huggins • Fall protection received third prize for his poster on the design and • Safe handling of chemicals building of a chlorine trailer. • Electrical spotters Excellent posters were also submitted by Ben • First aid Harris on the Euroa wastewater management facility • Operation of plant and equipment upgrade and Peter Kanters on the Broadford water delivery problems due to the drought. • Fire safety • Safe handling of asbestos • Manual handling • Trenching and excavation

26 Goulburn Valley Water Occupational Health & Safety (OH&S) Throughout 2003/2004 Goulburn Valley Water wider organisation through the health and safety has continued to make signifi cant health and safety committee. The committee meets every six weeks improvements across all business operations. The to discuss health and safety issues, incidents, and development of an OH&S Management Plan in 2002 reviews OH&S policy and procedures. To prepare has enabled the Authority to move closer towards representatives to perform their functions they the goal of developing robust health and safety receive WorkSafe accredited training and ongoing management systems. assistance is provided by the OH&S Coordinator. 2003/2004 saw a signifi cant improvement in the In early December 2003 Goulburn Valley Water was Authority’s Lost Time Incident Frequency Rate granted an asbestos removal license from WorkSafe (LTIFR). This rate measures the number of lost time Victoria. This allows the Authority to continue to injuries for each 1 million hours worked and is a useful remove asbestos cement pipes safely. As part of the indicator which can be compared from year to year. license application the Authority’s safe operating A reduction in the LTIFR indicates that there were procedure for removing asbestos cement pipes was fewer lost time incidents for that period. The LTIFR required to be submitted to WorkSafe for assessment for 2003/2004 was 21.52 which was a reduction of along with additional information on the training and 10% from 2002/2003. experience of our personnel. During 2003 independent health and safety audits The development of effective safety management were carried out at all of Goulburn Valley Water’s systems continues to be a high priority for Goulburn major workplaces and facilities. 270 sites where Valley Water. A SafetyMAP gap analysis was completed in early 2004 which identifi ed areas inspected including all water treatment plants, where requirements where being met as well as waste management facilities, offi ces and depots. In improvement opportunities. The recommendations December 2003 an action plan was developed to from the gap analysis will be used to develop address recommendations resulting from the audits an OH&S Management Plan for 2004 – 2006. and progress is reviewed monthly. Local health and Additionally, a legislative compliance gap analysis was safety representatives have been assisting managers also completed which identifi ed areas where OH&S with the implementation of improvements which legal requirements are being met and other areas for range from provision of safety signage through to improvement. works to install additional hand-railing. Goulburn Valley Water continues to maintain On a six monthly basis in-house safety inspections of strong links with other water authorities throughout major facilities are undertaken to ensure hazards are Victoria through the Vic Water OH&S Network. This identifi ed and systems are maintained. These audits are network, which was initiated to promote a more undertaken by supervisors and operators. This assists effective approach to managing occupational health the Authority in identifying local safety concerns. and safety, meets regularly to discuss current health Health and safety representatives continue to take and safety issues and exchange new ideas. Goulburn an active role through promoting health and safety Valley Water is also actively involved in a local safety at the local work team level. They involve themselves group and attends regular meetings and seminars on in local safety improvements and contributing to the current OH&S topics. 2003/2004 Annual Report 27 Noel Squires Information Technology Manager

Information Technology Goulburn Valley Water recognises the essential role information technology plays in the achievements of its corporate goals. The Authority is continually exploring opportunities that arise from new developments in technologies. In 2003/2004 a number of new projects were implemented after extensive pilot programs. The projects included: • Trialling new intranet software for Microsoft – Sharepoint Portal Server. This new software will enhance the Authority’s knowledge management and provide a powerful collaboration environment. • Introducing a new Payroll and Human Resource Management Software – PayGlobal. This has provided the Authority with improved time and activity capture, payroll automation and human resource management capabilities. • New GIS software provides powerful browser based access to up to date spatial information to all users across the Authority. The system based on the OpenGIS standard stores spatial data in an Oracle database and delivers powerful editing capability using Autodesk and MunSys products. • Upgrading from Exchange 2000 Server to Exchange Server 2003 has enhanced the browser based email and now provides greater functionality for employees with limited access to the corporate network. The Authority covers a large area and has made major investments in technology to improve the management, monitoring and efﬁ ciency of its operational facilities. To ensure that the IT department is able to support the ﬁ eld staff a dedicated role has been developed for an Operations IT Coordinator. The core responsibilities of this role are: • To lead a small team to manage and develop those IT systems used in operations. • To ensure that all operational technological developments including new infrastructure delivered by the Major Projects group are consistent with the Information Systems Strategic Plan. The main focus of the role is on deriving maximum value from technology investments in SCADA and process control by developing systems to derive strategic knowledge from historical data.

28 Goulburn Valley Water Freedom of Information The following offi cers have been appointed in for the purpose of the Act. As a public body, the accordance with the provisions of the Freedom of Authority is required to comply with the Act, and Information Act 1982; under section 68 of the Act, a public body is required Principal Offi cer – Chief Executive to establish procedures: Authorised Person – Director - Corporate Services • To facilitate the making of disclosures under Goulburn Valley Water received one request for the Act; information during the year, which was dealt with in • For investigation of disclosed matters; and accordance with the Act. • For the protection of person from reprisals During 2003/2004 all Goulburn Valley Water by the public body or any member offi cer employees participated in a training/information or employee of the public body because of session on the Freedom of Information Act. disclosures under the Act. Information Prepared and Available During 2003/2004 all Goulburn Valley Water The information listed in FRD 22 of the Reporting employees participated in a training/information Requirements for 2003/2004 has been prepared session on the Whistleblowers Act and the Authority’s and is available to the relevant minister, Members of procedures. A copy of these procedures is included Parliament and the public on request. as an insertion to this report. Whistleblowers Multicultural Policies Goulburn Valley Water has developed procedures in Goulburn Valley Water is mindful of the State accordance with Section 68(3) of the Whistleblowers Government’s Multicultural Policy and shares its Protection Act 2001 which comply with the commitment to promoting programs and strategies Ombudsman’s Guidelines. aimed at delivering culturally appropriate services. The The key agency involved in the administration of the Board endeavours to ensure that our systems and processes under the Act is the State Ombudsman’s staff are sensitive to cultural and language diversity Offi ce. Goulburn Valley Water is a “public authority” within our customer base and regional community.

2003/2004 Annual Report 29 Our Environmental Responsibility Water for the Future Goulburn Valley Water has made signifi cant progress environmental project if a 40% connection rate was towards addressing the targets outlined in the achieved by June 2004. Rushworth has achieved this Government’s Water for the Future policy. The policy goal and the Authority is working with the local has set a target for Melbourne to increase water community to identify a potential project. Stanhope recycling to 20% by 2010. In 2003/2004 Goulburn has been offered a two month extension as another Valley Water recycled 70% of the reclaimed water from the Authority’s 27 wastewater management eight connections are required to reach the 40% facilities. For further details refer to the Reuse section connection rate. of this report. Goulburn Valley Water has promoted the During 2003/2004 Goulburn Valley Water Government’s Water Smart Gardens and Homes commissioned the new $5 million Kilmore reclaimed rebate scheme on the Authority website and in water reuse facility which enabled the Authority to customer newsletters. Since the introduction of the cease releasing reclaimed water into the Kilmore rebate scheme customers of Goulburn Valley Water Creek. In addition to the Kilmore project the Minister have applied for and received the following rebates. for Water has approved the decommissioning of Honeysuckle Creek Reservoir which will allow for 1 Jan 2003 to 30 Sept 2003 the natural fl ow to return to the creek. No. of Product The construction phase for Small Town Sewerage Rebates Schemes across Goulburn Valley Water’s region Rainwater Tank 31 was completed in 2003 with the commissioning of Greywater System 1 the Rushworth/Stanhope wastewater management $20 Rebates 57 facility. The Small Town Sewerage Scheme was another initiative of the Government’s Water for the 1 Oct 2003 to 30 June 2004 No. of Future policy. Over the last seven years Goulburn Product Valley Water has invested more than $25 million on Rebates sewering eight small towns with a population greater Rainwater Tank 100 than 500 people. The towns included in the project Greywater Systems 2 were Avenel, Girgarre, Marysville, Merrigum, Violet Basket Offer 92 Town, Wandong-Heathcote Junction, Rushworth and Dual Flush Toilet 35 Stanhope. The Authority’s focus is turning towards High Pressure Cleaner 132 ensuring that the properties serviced by the schemes Shower Rose 57 promptly connect to the systems. As an incentive to Rainwater Tank-to-Toilet Connection 2 connect, Goulburn Valley Water offered Rushworth Washing Machine 238 and Stanhope $5,000 each towards a community Dishwasher 118 30 Goulburn Valley Water 160 Nutrient Load to Victorian River Health Strategy 150 Goulburn River Goulburn Valley Water is a key player in the Goulburn Broken Regional from WMF’s Catchment Strategy and continues to strive to improve its environmental Phosphorus performance within the region. The Authority has signifi cantly reduced Nitrogen its phosphorus and nitrogen loads on the Goulburn River. Phosphorus loads to the river declined from 42.8 tonnes in 1994/1995 to 3.4 tonnes 100 in 2003/2004. Nitrogen releases for the same period decreased from 160 tonnes to 23.5 tonnes. In order to determine its impact on river health, the Authority has developed an extensive biological monitoring program to identify any impacts of reclaimed water on the biotic fl ora and fauna of the 50 42.8 Goulburn River. This ongoing monitoring program has provided useful data to stakeholders within the catchment and is forwarded to EPA for 23.5 annual review.

3.4 Regional Catchment Strategy 0 1994/1995 2003/2004 Goulburn Valley Water works closely with Goulburn Broken Catchment Management Authority and actively participates in the development and delivery of the Regional Catchment Strategy for the Goulburn-Broken. Authority staff have served as members of community committees, such as the River Health and Water Quality Committee and the Steering Committee for the Environment, Social and Economic Impact Study of Gowangandie Weir. The delivery of the Regional River Health Strategy involves community capacity building and issue-specifi c projects, such as stormwater education and water quality monitoring. The Waterwatch Program is the major community education and capacity building mechanism in the Catchment River Health Strategy. Victorian Greenhouse Strategy 2003/2004 was the fi rst year that Goulburn Valley Water was required to report on energy usage and greenhouse emissions to the atmosphere. The intention of this reporting is to promote sustainable business practices by requiring organisations to report on their direct and indirect emissions to the atmosphere annually. To ensure compliance, energy audits are undertaken at each of the Authority’s wastewater management facilities. The audit includes energy usage (electricity) and indirect emissions (methane generation) to the atmosphere from lagoons. From these audits the Authority is able to identify facilities that have high energy usage and to develop action plans to minimise the impacts from these facilities. From the audits conducted four of the 27 wastewater management facilities were identifi ed as Category B sites (energy usage between 500-700 gigajoules per year) that require action plans to be developed. Audits at Shepparton, Mooroopna, Tatura and Broadford wastewater management facilities revealed that high energy usage was directly related to pump and aerator operation. Action plans have now been developed to minimise the impact of these facilities on the environment by adopting the following measures: • Optimisation of aerator run times to match plant biological loads, thereby minimising energy usage, and • A review of the operational performance of the methane fl ares at the high rate anaerobic lagoons with a view to minimising the release of methane to the atmosphere. Consideration will be given to the “whole of life” cost in the design and decision making process when selecting plant and equipment, eg pump replacement evaluation will include consideration of pump effi ciency, energy effi ciency and variable speed drives application and suitability. With methane gases that are generated at wastewater management facilities, especially the high rate anaerobic lagoons at Shepparton, Mooroopna and Tatura, there is a potential to reuse gas for power generation. In December 2003 Goulburn Valley Water advertised for an Expression of Interest to develop the Authority’s methane resources. Diamond Energy was the successful organisation and they are working in conjunction with the Authority to review the various options for potential future power generation. The project with Diamond Energy has progressed to a point where a Technical Capability Study is being undertaken. The purpose of this study is to assess the feasibility of constructing a Power Generation Unit at each of the Shepparton, Mooroopna and Tatura wastewater management facilities. It is anticipated that the fi rst phase of any development will be at Tatura, with a view to expanding power generation to Shepparton and Mooroopna in the future providing the Authority is satisfi ed with the economic viability. 2003/2004 Annual Report 31 Biodiversity Strategy In 2002/2003 Goulburn Valley Water developed and commenced implementing the Authority’s Biodiversity Strategy, which is in line with the Victorian Government’s direction on biodiversity. The Authority has made signifi cant progress in the implementation of the strategy and in 2003/2004 59 staff members received training in biodiversity. The Authority has developed a biodiversity action plan, established a biodiversity budget and a biodiversity register. This register has recorded six threatened species which include Brush-tailed Phascogale, Bush Stone-Curlew, Grey-crowned Babbler, Hemiphlebia Damselfl y, Regent Honeyeater and the Striped Legless Lizard. In addition, there are 97 fl ora and 227 fauna threatened species that have been identifi ed in this region and may be sighted in the future. The Authority is working with the Goulburn Broken Catchment Management Authority to incorporate this register of fl ora and fauna into a regional database. In 2003/2004 the Marysville wastewater management facility was added to the “Land for Wildlife” program. There are now four Goulburn Valley Water sites, Shepparton, Kilmore Broadford and Marysville, listed as “Land for Wildlife”. A fl ora Land for Wildlife Audit and fauna survey was undertaken at the Marysville being undertaken at Marysville wastewater site in October 2003, as part of the “Land for Wildlife” management facility assessment. The survey identifi ed 17 fauna species, all birds, including the Hardhead Duck, Chestnut Teal, Crimson Rosella and the White-Throated Tree-creeper. 38 plant species were recorded of which 36 were natives, including the Silver Wattle, Small Grass Tree and the Ivy-leaf Violet. During the survey no mammals were recorded. However, there is evidence to indicate that wombats make their home at the facility. Over the past 12 months more than 8,000 trees have been planted at the Mansfi eld and Rushworth/Stanhope wastewater management facilities and the Kilmore reclaimed water reuse facility. Over the next 12 months the Authority plans to plant more than 10,000 trees across the region. ISO 14001 Certifi cation During the late 1990’s Goulburn Valley Water started developing an Environmental Management System. This system has enabled the Authority to raise the awareness of the impact that day to day operations can have on the environment. It also helps to identify and manage minor and major environmental risks. In March 2003 the Environmental Management System for Goulburn Valley Water’s Tongala wastewater management facility received certifi cation to the international standard for Environmental Management Systems ISO 14001. One of the Authority’s major objectives for 2003/2004 was to gain ISO 14001 certifi cation for all 27 wastewater management facilities. The Tongala system was used as the template and in January 2004 the remaining 26 wastewater management facilities gained certifi cation. The Environmental Management System provides Goulburn Valley Water with the means of having a continuous improvement culture and a quality assurance approach of doing it right the fi rst time. It has enabled Authority staff to raise their awareness of the impact every aspect of the business has on the environment. It provides them with the mechanism to raise environmental issues and has improved the Authority’s procedures for responding to all types of environmental risks. Goulburn Valley Water’s Board and senior managers are committed to this certifi cation and will ensure that adequate resources are made available to train staff and update skills, to continually analyse environmental impacts and improvements, and to continue with a regular auditing schedule to maintain ISO 14001 certifi cation.

32 Goulburn Valley Water Reuse Nathalia Reclaimed Water Reuse Facility In April 2004 the construction of Goulburn Valley Goulburn Valley Water benefi cially reuses reclaimed water and biosolids from its wastewater management Water’s $1.8 million Nathalia reclaimed water reuse facilities across the region. facility commenced, with completion projected by the end of 2004. This project involved an extensive Reclaimed Water community consultation period and an independent Approximately 70% of reclaimed water from panel review. During the community consultation Goulburn Valley Water’s wastewater management period concerns were raised by local residents about facilities is reused every year. In 2003/2004 the the environmental impact, through fl ooding, that the Authority reused just over 7,000 megalitres of project may have had on the area. These concerns reclaimed water for irrigation. Nearly 31% of this were addressed at the panel hearing and the planning volume was taken by third party reusers. Reclaimed approval for the project was received in August 2003. water is a valuable resource not only for the The project involved purchasing 6.4 hectares from a Authority, but also for the community. Goulburn local farmer whose land abuts the Authority’s existing Valley Water currently has 16 agreements with facility. A 100 megalitre reclaimed water storage and local farmers and golf clubs who have reclaimed associated infrastructure will be constructed on this land. water delivered to their properties for their irrigation needs. The Authority itself irrigates 100% of the available reclaimed water for the facility woodlots and pasture at 22 of its wastewater will be used for irrigation. 45% of the reclaimed water management facilities across the region. will be used by Goulburn Valley Water during the irrigation season and the remainder will be supplied Over the past 12 months Goulburn Valley Water to a neighbouring property under a third party has commissioned the Kilmore reclaimed water agreement. reuse facility, commenced construction on the Nathalia facility, tenders have been called for the Wallan Reclaimed Water Reuse Facility Wallan facility and sites are being evaluated for the Goulburn Valley Water will be investing over $7 and Marysville facility. million on the Wallan reclaimed water reuse facility. Kilmore Reclaimed Water Reuse Facility An extensive consultation process was undertaken The Kilmore reclaimed water reuse facility was for this project and it was reviewed by an independent completed in December 2003, which has allowed panel. The panel approved the project and processes Kilmore Creek to return to its natural fl ow regime. are currently underway to acquire land in the Wallan Reclaimed water from the Kilmore wastewater region. The project involves the acquisition of suitable management facility is piped approximately three land, construction of a 325 megalitre reclaimed water kilometres to the new $5 million reclaimed water storage and irrigation infrastructure for 155 hectares facility at Willowmavin. The new facility consists of a of land. Stage 1 of the project will be the construction 300 megalitre winter storage and 97 hectares of of a 165 megalitre winter storage and development pasture, which is irrigated with the reclaimed water of 92 hectares of land for irrigation and is due to be by way of two centre pivot irrigators. completed in May 2005.

Peter Slocomb and Mark McNeil reviewing work on the Nathalia reclaimed water reuse facility

2003/2004 Annual Report 33 Heritage Listed site

Marysville Reclaimed Water Reuse Facility Heritage The Marysville reclaimed water reuse facility project Heritage sites and archaeological relics provide a is in preliminary stages. A community consultation valuable link to past lifestyles and cultural changes, group has been established and potential sites are and preserving these important and irreplaceable being identifi ed, investigated and evaluated using a historical resources is essential for future generations. triple bottom line analysis. The project will involve the purchase of suitable land, and/or identifying a suitable Goulburn Valley Water ensures that any heritage third party user, construction of a reclaimed water sites or archaeological relics located on Authority storage and an irrigation facility. land are preserved and protected. Cultural heritage management is a component of the Authority’s Marysville is located within a unique environment environmental training program for its staff and is where precipitation exceeds evaporation and a key element of all works projects. Prior to major Goulburn Valley Water is working with the local construction work being undertaken the Authority community to ensure that the new facility is engages a consultant to conduct archaeological environmental friendly, economical and provides for surveys so that any signifi cant sites or relics are the future growth of Marysville. The completion date identifi ed and can be protected. of the project will be dependent on the outcome of the site selection process. There are two sites on Authority owned land that contain heritage buildings. One site identifi ed as Biosolids having signifi cant heritage value consists of a house Every year a total of approximately 3,000 dry tonnes and farm buildings comprising the remnants of the of biosolids is produced at Goulburn Valley Water’s foundations of a house, a covered cistern, remains 27 wastewater management facilities. The Authority of several outbuildings, traces of garden, exotic trees, has developed a strategy for managing the biosolids a standing machinery shed and possible dump as and the reuse of this resource. well as a shed of heritage signifi cance. The other site on the Authority Heritage listing was identifi ed In 2003/2004, desludging of lagoons at Kilmore, as a slaughterhouse and is associated with a family Tongala, Kyabram and Broadford wastewater who have been butchers for about 100 years. The management facilities was undertaken at a cost of site was constructed some time around 1932-1938 more than $1 million. At most sites a lagoon was and continued until it was closed in 1988. The site taken offl ine and the biosolids air dried within the comprises of a corrugated iron building, the stumps empty lagoon. Once dried, the biosolids are suitable from the footings of another building, bricks, buried for use and Goulburn Valley Water’s preference is for artefacts and exotic trees. To preserve these relics the them to be applied to dryland cropping sites as a soil sites have been isolated from day to day operational conditioner. activities. The reuse of biosolids is an important issue for Other signifi cant historical features that have been the Victorian water industry especially in relation to identifi ed on Goulburn Valley Water sites include fi ve community education. To assist in the education of Scar Trees. Scar Trees are a part of Australian Cultural the industry and the wider community a Biosolids Heritage. Aborigines cut a slab of bark from these Communication Working Group has been established trees and most likely used it to make canoes, shields, and is being led by Goulburn Valley Water. This group is containers and shelters. The Scar Trees are fenced off developing a framework for a communication strategy for protection and their health status is monitored. for the water industry on biosolids recycling and community engagement.

34 Goulburn Valley Water Trade Waste and the Authority is building a Septage Receival In the Goulburn Valley region there are several Station adjacent to it which will be managed by Collex. large food processing companies, such as SPC The Authority was also a major contributor to the Ardmona, Campbells Soups, Nestle and Unilever. development of the EPA/VicWater “Guidelines for These organisations require large volumes of high the Development of a Trade Waste Management quality water. The wastewater discharged from plant Plan”. The launch of this new guideline, to assist operations creates special environmental challenges industry, was held at Goulburn Valley Water’s ofﬁ ce in for Goulburn Valley Water. Shepparton in March 2004. The Authority’s Trade Waste Section has regular meetings with major trade waste customers. At Shepparton Wastewater these meetings the customers are provided with Management Facility Augmentation information on their water usage, their trade waste In May 2004, construction of the $17 million quality and their potential impact on the operation of state-of-the-art high rate anaerobic lagoon was wastewater management facilities. Minor trade waste completed. The 200 megalitre lagoon is covered with customers are also important to the Authority and a polypropylene cover and has a surface area of ﬁ ve during 2003/2004 an annual audit inspection program hectares, which is over twice the size of the MCG. for minor trade waste customers was implemented. This project was a partnership between Goulburn Campbells Soups has reduced water usage by Valley Water and local industries in the Shepparton 163,370 kilolitres over the past two years and area, particularly SPC Ardmona, and it will provide Unilever has trialled a solar still to reduce the amount Shepparton with an environmentally sustainable long of salt in the wastewater. Collex is establishing a new term means of managing increasing domestic and Liquid Waste Industrial Treatment Plant in Shepparton industrial wastewater loads.

Ray Twitchett and Alan Tyson at the Shepparton HRAL

2003/2004 Annual Report 35 Unilever Australasia Over the past 12 months Unilever Australasia’s Tatura plant has been trialling a solar still to reduce the salt in its trade waste discharge. The still is designed to receive concentrated low volume salt solutions and convert the solution to a salt precipitate by evaporation. The salt precipitate is then used as a stock feed additive. This trial has proved very successful and Unilever is planning to construct a larger scale solar still. Unilever is also improving the quality of its trade waste discharge by reducing the salt generated from the cleaning of its food processing vessels and equipment with caustic soda via modifi cations to work practices and the installation of a CIP. Spills Wastewater spills have the potential to have serious environmental impacts, which is why Goulburn Valley Water has established a Spill Control procedure for each wastewater management facility as part of the Environmental Management System. The Water Services Agreement with the Government requires the Authority to classify wastewater spills as Priority 1 (major failures - impact on the external environment) and Priority 2 (minor failure – minimal impact on the external environment). During 2003/2004 the number of wastewater spills across the Authority’s region was signifi cantly lower than for the previous year. There were no Priority 1 spills compared to 3 the previous year and 62 Priority 2 spills for Len Tricarico, SPC Ardmona 2003/2004 compared to 87 for the 2002/2003 year. and Mark Putman GVW reviewing Campbells Soups trade waste pretreatment Type 2003/2004 2002/2003 Priority 2 Spills 62 84 Priority 1 0 3 Campbells Soups Total Spills 62 87 In 2002 the Campbells Soups’ work team in Lemnos was set a challenge to reduce their water consumption, which would result in internal savings and preserve Australia’s valuable water resource. Over this period Campbells Soups has achieved phenomenal results and has reduced its annual water usage by more than 160 megalitres or 19% and reduced wastewater discharge by more than 215 megalitres (29%). This was achieved by the Campbells Soups’ management involving staff to identify opportunities to reduce water usage through a combination of improved operational practices, recycling, equipment modifi cations, and the development and implementation of water saving initiatives. Mark Putman and Brett Carter at Unilever trial solar still

36 Goulburn Valley Water Water Consumption and Drought Response Reporting

Water Restriction By-Law Review In April 2003 Goulburn Valley Water convened a meeting with neighbouring water authorities to discuss the impact of water restrictions on customers and the Authority’s experiences. At the time Goulburn Valley Water was operating a 10 stage water restriction by-law while other authorities had between 4 and 8 stages. One of the compelling experiences for all Authorities was the confusion customers experienced about who was on what level of water restrictions and what the restrictions meant to the customer. An outcome from this meeting was the establishment Creeks in Euroa, Nine Mile Creek at Longwood and Artist Impression of the new water storage of a working group to look at developing a more Sunday Creek in Broadford. All water supply sources tank in Shepparton uniform statewide four stage water restriction by-law. are relatively secure except during very severe In the mean time Goulburn Valley Water undertook drought events. an extensive community consultation process which To ensure that the future needs of towns are met included surveys and focus groups in relation to water the Authority has developed water supply master restrictions. The outcomes from this consultation plans for major towns across the region. Projects process were the development of a new 4 stage resulting from these plans include new water storages water restriction by-law and a separate water for Shepparton, Kyabram and Tatura. Another major conservation by-law. These by-laws were both project is the Melbourne to Wallan pipeline which is introduced in December 2003. being constructed by Yarra Valley Water. Towns on Water Restrictions Development of master plans for other communities in our region will continue in 2004/2005. Although rainfall was higher in 2003/2004 than the previous year much of Victoria was still on water Shepparton Water Supply Master Plan restrictions. Towns supplied by Goulburn Valley Water The Shepparton Water Supply Master Plan from the Sunday Creek System, including Broadford, was completed in April 2003 and recommends Waterford Park, Kilmore, Wandong-Heathcote infrastructure improvements that Goulburn Valley Junction and Wallan, had been on water restrictions Water needs to undertake over the next 20 years since August 2002, and on Stage 9 restrictions since to accommodate future growth whilst maintaining an 22 May 2003. When the new 4 stage water restriction adequate level of service to customers. The master by-law was introduced on 17 December 2003 water plan was based on a predicted growth rate of 1.4% restrictions were slightly eased and the towns moved per annum for Shepparton and 1% per annum for to Stage 3 water restrictions. This level of restriction Mooroopna, which equates to over 6,000 new continued throughout the remainder of the year. connections by 2022. Stage 2 restrictions were introduced at Bonnie The plan indicates that Goulburn Valley Water needs Doon on 24 March 2004, and removed on the 24 to invest over $26 million between 2003 and 2022 May 2004. These restrictions were necessary because on infrastructure improvements. A total additional of the low level in the Bonnie Doon town storage. storage capacity of 16 megalitres is required. Customer acceptance of these restrictions has been The additional storage will be provided by two new excellent, with only a small number of minor restriction eight megalitres concrete water storage tanks. In breaches being detected. June 2004 Goulburn Valley Water awarded the tank Security of Supply contract , with the ﬁ rst tank to be built on Authority land in Kialla Lakes and the second tank to be built on Ensuring that there is enough water for future the Authority’s existing Maculata Drive site in North growth of towns is an essential planning activity for Shepparton. The new storage tanks and associated Goulburn Valley Water. works will cost approximately $5.7 million and are The Authority purchases the majority of its raw due for completion in early 2005. water from the irrigation supply system managed by Goulburn-Murray Water. A small number of towns divert water from unregulated streams such as Seven

2003/2004 Annual Report 37 Water clariﬁ er at Yea water treatment plant

Melbourne to Wallan Pipeline In September 2003 the Minister for Water announced the recommendations from the High Level Task Force which was formed by the Premier in November 2002 to review water security for these towns. The main recommendation made by the Task Force was for Yarra Valley Water to supply bulk water to Goulburn Valley Water for Wallan and Hidden Valley consumers. This involves building a pipeline between Mt Ridley in Yarra Valley Water’s region to the Pretty Sally Reservoir at Wallan. This pipeline is programmed for completion by the end of 2005. The Task Force report highlighted the extensive community consultation process undertaken by Goulburn Valley Water as part of the South Western Water Resource Study and the excellent planning document developed from the study. The Task Force also noted that the recent water restrictions for this region were due to the worst drought on record rather than a lack of infrastructure and planning. The Task Force recognised that the South Western Water Resource Strategy was a living document and a valuable planning tool and recommended that it be retained as the base planning document for water supply planning for the south west region. Other recommendations from the report included increasing the capacity of Sunday Creek Reservoir from 1,700 to 2,350 megalitres in around 2012 and constructing the Goulburn River to Broadford pipeline in 2021. Originally, it had been planned to start construction of the Goulburn River to Broadford pipeline in 2004. However, with Wallan’s water supply now planned to come from Melbourne in the near future, this project will not be required until much later in the 25 year planning period. Water Conservation Water conservation is essential for the sustainable future of the community as outlined in the State Government’s White Paper on water. During 2003/2004 Goulburn Valley Water has been proactive towards water conservation. An independent consultant was appointed to develop a water conservation strategy for the Authority and, as noted above, a new water conservation by-law was introduced across the region. The increased focus on water conservation is illustrated by Goulburn Valley Water and the Shepparton car dealers working together to introduce new water conservation systems at car yards.

38 Goulburn Valley Water Water Conservation Strategy Permanent Water Saving Measures In June 2003 Goulburn Valley Water appointed the On 1 January 2004 Goulburn Valley Water became Institute for Sustainable Futures to evaluate a range of the second water authority to introduce a permanent water conservation options available and to identify water conservation by-law. the benefi ts/disbenefi ts to the Authority on a Triple The development of the by-law was a direct Bottom Line basis. The decision to undertake this outcome from an extensive community consultation project was timely as it coincided with the release of process with over 90% of surveyed customers the State Government’s Green Paper “Securing Our supporting the introduction of some form of Water Future”. permanent water saving rules. The aim of the water The Institute for Sustainable Futures report indicated conservation by-law is to encourage customers and that the three most benefi cial water conservation the wider community to conserve water by adopting options for Goulburn Valley Water to focus on were: ‘best practice’ water use principles that are set out • An education campaign across the entire region; in the by-law. Sprinklers are banned during the hottest part of the day, between the hours of 10 am • Development of planning scheme controls; and and 5 pm. The by-law restricts the hosing down of • Water conservation programs with industrial paved areas and requires the fi tting of a trigger nozzle customers. to hoses used to wash vehicles. The by-law applies The Board of Goulburn Valley Water accepted these all year round for all towns across the region, unless recommendations in March 2004 and the Authority stricter water restrictions are in the place. is planning to undertake the following activities in The requirements of this by-law are similar to those 2004/2005: introduced by Barwon Water in February 2003 and • Review of the Authority’s current water are likely to be introduced statewide in 2004/2005. education program to assess its effectiveness The introduction of the new Water Conservation in delivering a water conservation message; By-Law was supported by an extensive community • Develop a program to work with local education program including a direct mail campaign government to deliver water conservation outlining the requirements & a fridge magnet strategies, including an assessment of how with the main points, advertisements & articles in planning scheme controls can be used to local papers & bulletins, road signs in towns across promote water conservation measures in the region, a brochure for real estate agents to hand conjunction with new development; and out to tenants, promotional stands at regional events • Encourage key industrial customers to and articles in the Goulburn Valley Water customer undertake water audits to identify water newsletter & on the Authority’s website. savings in their operations. Shepparton Car Dealers Initiative In January 2004 Goulburn Valley Water and Shepparton car dealers entered into a Memorandum of Understanding to conserve water. In October 2003 a representative of the Shepparton car dealers presented a proposal to the Authority on how their industry could conserve water. This was a great initiative, and the car dealers have agreed to wash vehicles in their yards a maximum of two times per week and to fi t water saving nozzles to all hoses. Collectively the car dealerships in Shepparton will save nearly four megalitres of water per year. If this leadership and initiative of the Shepparton car dealers can be emulated across Victoria, million of litres of water each year could be saved.

Water Conservation Sign

2003/2004 Annual Report 39 Water Consumption A signiﬁ cant 8.7% reduction in total water conservation initiatives introduced by Goulburn consumption was recorded in 2003/2004 compared Valley Water. The reduction in the ‘other’ category to the previous year. The reduction occurred in relates to a combination of programs to meter all retail urban residential (down 10.8%), retail urban services and to regularly replace older meters. More non-residential (down 4%) and the ‘other’ category accurate bulk meters and regular calibration of these which declined by 15.4%. The ‘other’ category meters is also contributing to the improvement. The includes system losses and unaccounted water. Authority is also devoting more resources to identifying The reductions in residential and non residential the reasons for system losses in individual towns. water consumption are largely due to the water

Actual Annual Consumption (ML) and Number of Assessments (No.) Water District Retail Urban Water Supply Retail Total Annual Other Residential Urban Non-Residential Consumption Average Annual Average Demand from 2001/02 to 2003/04 Annual Consumption Annual Average Demand District ML No. ML No. ML ML No. ML % Alexandra, Eildon, 362 1,823 159 289 61 582 2,112 677 86.1% Thornton Barmah 33 150 12 15 0 46 165 53 86.1% Broadford, Clonbinane 271 1,543 71 112 62 403 1,655 492 81.8% Cobram 736 2,267 1,733 441 60 2,529 2,708 2,760 91.6% Colbinabbin 15 76 5 15 21 41 91 35 115.3% Corop 4 33 140537698.9% Dookie 61 134 22 21 0 83 155 88 94.5% Euroa, Strathbogie 386 1,555 147 219 83 616 1,774 671 91.9% Girgarre 26 113 5 17 6 37 130 51 73.7% Katamatite 36 114 5 19 11 53 133 60 88.2% Katandra West 34 103 4 13 9 47 116 51 91.8% Katunga 24 76 6 16 8 38 92 45 83.7% Kilmore, Wandong Heathcote Junction, 761 5,131 138 327 63 962 5,458 1,152 83.6% Wallan Kyabram 825 2,579 263 397 102 1,190 2,976 1,230 96.8% Longwood 35 112 12 14 30 77 126 74 104.8% Mansﬁ eld, Boonie Doon, Sawmill Settlement, 412 2,215 177 308 71 660 2,523 689 95.9% Merrijig Marysville, Buxton 115 659 71 103 69 255 762 280 91.1% Merrigum 77 199 19 30 12 108 229 109 98.6% Mooroopna 979 3,105 1,294 228 0 2,272 3,333 2,384 95.3% Murchison 112 375 30 56 28 171 431 190 89.8% Nagambie, Baxters Road, 203 731 207 115 53 462 846 460 100.5% Kirwans Bridge Nathalia 205 703 71 119 18 295 822 333 88.5% Numurkah, Wunghnu 601 1,907 158 309 120 879 2,216 949 92.6% Picola 15 64 1 9 2 18 73 28 65.2% Pyalong 23 146 3 17 0 25 163 27 93.1% Rushworth 184 549 80 90 42 306 639 343 89.1% Seymour, Avenel, 993 3,490 429 494 198 1,620 3,984 1,766 91.7% Mangalore, Tallarook Shepparton, Congupna, 5,293 14,296 3,711 2,151 1,255 10,259 16,447 10,979 93.4% Tallygaroopna Stanhope 56 232 8 63 50 114 295 118 97.2% Strathmerton 70 230 24 31 45 138 261 150 92.3% Tatura 504 1,528 1,432 213 95 2,030 1,741 1,962 103.5% Tongala 154 532 781 90 102 1,037 622 1,159 89.5% Toolamba 46 111 2 5 12 61 116 65 93.2% Violet Town 95 385 25 50 37 158 435 163 96.8% Woods Point 9 61 1 8 7 17 69 14 124.6% Yea, Molesworth 152 600 52 131 21 225 731 248 90.7% Total 13,910 47,927 11,159 6,539 2,752 27,822 54,466 29,859 98.6% Total and percentages subject to rounding calculations. 40 Goulburn Valley Water Bulk Water Entitlements The Authority has converted its rights to water to Bulk Entitlements under section 47 of the Water Act 1989 for a total of 39 water supply systems.

Bulk Raw Water Raw Water Supply System SOURCE Entitlement Volume Taken Transfers ML ML ML Alexandra Goulburn River 916 413 -471 Barmah Murray River 82 36 0 Bonnie Doon Lake Eildon 112 61 -35 Broadford, Kilmore, Wallan Sunday Creek 2,238 1,479 0 Buxton Steavenson River 110 0 0 Cobram Murray River 2,801 2,834 174 Colbinabbin Channel 89 41 -40 Corop Channel 44 10 -25 Dookie Channel 160 117 -16 Eildon Lake Eildon 480 173 -290 Seven Creeks and Mt Hut Euroa 1,990 774 0 Creek Girgarre Channel 100 53 0 Katamatite Channel 84 55 0 Katandra West Channel 64 47 0 Kyabram Channel 2,000 1,323 -576 Longwood Nine Mile Creek 120 70 0 Mansﬁ eld Delatite River 1,300 725 0 Marysville Steavenson River 462 343 0 Mooroopna Goulburn River 500 250 -209 Murchison Goulburn River 350 214 -130 Nagambie Goulburn River 825 525 -300 Nathalia Broken Creek 652 370 0 Numurkah/Wunghnu Broken Creek 1,206 1,056 0 Picola Channel 44 26 0 Pyalong Mollisons Creek 75 32 0 Rushworth Waranga Basin 530 373 -122 Seymour/Avenel/Tallarook Goulburn River 5,340 1,767 -2,768 Shepparton/Mooroopna/ Tallygaroopna/ Goulburn River 18,320 13,353 -3,388 Toolamba Stanhope Channel 200 121 -58 Tatura Channel 2,600 1,847 -480 Thornton Rubicon River 120 90 0 Tongala Channel 1,404 1,127 0 Upper Delatite Delatite River 235 85 0 Violet Town Honeysuckle Creek 270 0 0 Woods Point Brewery Creek 21 19 0 Yea Yea River 438 232 0 Total 46,282 30,041

2003/2004 Annual Report 41 Our Economic Responsibiliity

Business Performance 2004 2003 2002 2001 2000 $’000 $’000 $’000 $’000 $’000 Total Revenue 47,235 51,658 41,200 33,989 33,708 Expenses other than Depreciation 24,940 24,584 21,540 20,017 18,465 Depreciation 12,847 12,074 10,911 9,941 9,657 Net Proﬁ t 9,448 15,000 8,749 4,031 5,586 Total Assets 457,317 447,670 430,339 382,913 385,308 Borrowings 11,228 10,018 11,160 12,787 20,996 Shareholders Equity 437,424 427,976 412,399 364,460 359,708 Return on Assets 2.26% 3.61% 2.26% 1.39% 1.81% Debt to Equity Ratio 0.03 0.02 0.03 0.03 0.06 Interest Cover Ratio 13.14 19.03 9.96 4.07 3.75

Consultancies Victorian Industry A number of consultants were engaged to carry Participation Policy (VIPP) out speciﬁ c tasks during the year. There were seven Goulburn Valley Water has implemented procedures separate engagements costing a total of $153,177. in accordance to Section 9 of the Victorian Industry Participation Policy Act 2003. The VIPP forms part Building Act 1993 of our consultancy handbook which is issued to all During the reporting period, the Authority met consultants undertaking projects for the Authority. relevant compliance provisions of the Building Act The handbook requires consultants to ensure the 1993 in building and maintenance activities. VIPP forms part of all tender documentation.

42 Goulburn Valley Water Asset Management The Authority operates over 1,500 kilometres of water mains, 920 kilometres of pressure and gravity sewers, 340 pumping stations, 92 tanks and reservoirs, 40 water treatment plants and 27 wastewater management facilities. The management of these assets is vitally important and the Authority utilises a number of tools to assist, including an Asset Register and Maintenance Management System, a Geographical Information System (GIS), Hydraulic Modelling and Supervisory Control and Data Acquisition (SCADA). In particular, Goulburn Valley Water has invested heavily in the establishment of the Hansen asset management system which underpins the asset register and facilitates the Authority’s relatively high performance in ﬁ nancial asset management, maintenance management and lifetime asset operational performance. Through this tool, Goulburn Valley Water has developed optimised maintenance programs and a forward look asset rehabilitation and replacement program that support the delivery of reliable services to our customers. In addition to the above mentioned tools Goulburn Valley Water contracts out CCTV inspections, which review the conditions of sewer mains using a TV camera. This enables the Authority to identify areas where replacement and rehabilitation work are required. During 2003/2004 over 37 kilometres of sewer mains were inspected and 1,702 metres of sewer mains rehabilitated. 3,480 metres of water mains were assessed as not providing the level of service required and were replaced. In May 2004 Goulburn Valley Water hosted a delegation of directors, managers and engineers from Sacramento County Regional Sanitation District in the United States. The delegation was in Australia to review asset management procedures and tools and visited water authorities identiﬁ ed as having best practice in asset management in Australia.

Reviewing live CCTV Camera Images

2003/2004 Annual Report 43 OpenGIS SCADA During 2003/2004 Goulburn Valley Water The SCADA system remotely monitors water successfully transferred all fi les from two separate GIS treatment plants, wastewater management facilities, systems to a new OpenGIS system. The new system pumping stations and storages using sensors at over allows fi eld staff to access the system on computers 400 sites across the region, 24 hours a day 7 days a installed at remote depots and provides offi ce staff week. It operates using line of sight communication with immediate feedback, improving the quality of technology via radio telemetry units at various the fi eld data. It allows the Authority to continually sites to the Authority’s central operations centre in improve the accuracy of its records and is a vital tool Shepparton. in managing, reviewing and assessing the reticulation The SCADA system has improved the overall network. infrastructure system performance by permitting Hydraulic Modelling remote monitoring and operation. This decreases the time it takes to identify and rectify a problem in the Hydraulic modelling is used to identify and quantify fi eld, improves forward planning for maintenance of future capital works. A computerised representation infrastructure and enables the Authority’s customer of the network is developed and is calibrated to service personnel to respond in a more informed observed data such as fl ow and pressure throughout manner to customer queries. The outcome is a higher the system. Once the model is calibrated future level of service to customers. projected loads are entered and this enables the Authority to predict future infrastructure and capacity requirements for the system. During 2003/2004 water supply network models were completed for Kilmore, Seymour and Tatura and sewer models were produced for Shepparton and Tatura.

44 Goulburn Valley Water Capital Works Government Contributions Goulburn Valley Water continued its signiﬁ cant $351,000 has been recognised for the year as the capital works program in 2003/2004, with expenditure contribution from the Department of Innovation, of almost $22.6 million on 116 projects. The variance Industry and Regional Development towards the between the budget and actual is due to a revised construction of the Cobram-Strathmerton pipeline. program including deleted projects and delays caused Additionally, an unbudgeted amount of $108,000 by issues such as, lease negotiations, acquisition of has been recognised for the year as a grant from land, legal actions and planning conditions imposed the Department of Sustainability and Environment by Councils. towards the establishment of irrigated reuse plantations located at the Seymour and Broadford Contracts Over $10 Million wastewater management facilities. During 2003/2004 no contracts valued at over $10 million were entered into and the Authority entered National Competition Policy into 34 contracts less than $10 million. The Authority has operated in a manner that meets the National Competition Policy compliance requirements.

2003/2004 Annual Report 45 Performance Reporting

Financial Performance Indicators Indicator 2003/2004 Target 2003/2004 Actual Variance % Long Term Profi tability 0.4% 2.3% 465% Owner’s Investment 0.1% 2.2% 2,100% Long Term Financial Viability 7.5% 2.6% -65.3% Liquidity and Debt Servicing 145.5% 1,313.8% 803% Operating Effi ciency Water Supply/Wastewater Collection • Water Supply Bulk - - - • Water Supply Reticulation $142.78 $162.06 13.5% • Water Supply Treatment $252.84 $274.46 8.5% • Wastewater Reticulation $243.80 $273.34 12.1% • Wastewater Treatment $505.89 $443.08 -12.4% Variance Report – Financial Performance Indicators The actual trading result achieved for the year was greater than business plan targets for Long Term Profi tability, Owner’s Investment and Liquidity and Debt Servicing because revenue and earnings before interest and tax exceeded budget due to an increase in development and gifted assets. In addition, interest expense was below budget for the year because capital expenditure was less than targeted. The Long Term Financial Viability indicator is better than target. Debt is less than target due to strong trading cash fl ows for the year and capital expenditure being less than target for the year. Operating Effi ciency indicators, Water Supply Reticulation and Water Supply Treatment, are unfavourable compared to business plan target. This is due to water megalitres transported being 15% below budget with the impact of water conservation measures and restrictions being evident. Water costs are marginally under budget for the year. Wastewater Reticulation is unfavourable due to wastewater megalitres transported being 3.8% below budget but costs incurred being greater than target. Wastewater Treatment is favourable despite wastewater megalitres treated being 3.8% below budget but costs incurred are under budget due to incomplete desludging works and tertiary treatment costs being less than target. 46 Goulburn Valley Water Shepparton Water Tower

Service Delivery Performance Indicators

Reliability of Supply – Urban Supplies

Indicator 2003/2004 Target 2003/2004 Result Variance % Properties Interrupted Ratio 16% 22.6% 41% Interruption Time 1.8 hours 1.55 hours -14% Variance Report – Reliability of Supply – Urban Supplies

Properties Interrupted Ratio The variance in this ratio is due principally to a power supply problem which resulted in all 2,900 properties at Kyabram being without water for a short period of time. Exclusion of this incident would reduce the ratio to 17%.

Interruption Time The average interruption time of 1.55 hours was below the 1.8 hour target. The time to repair any water main failure depends on the location and nature of the failure. The Authority services many towns that are remote from work depots, and this increases interruption times. The bettering of the 1.8 hour target is indicative of the high level of commitment by the Authority’s maintenance staff. Reliability of Wastewater Collection Services Indicator 2003/2004 Target 2003/2004 Result Variance % Sewer overﬂ ows/100km of main 6 6.95 16% Variance Report – Reliability of Wastewater Collection Services Some 47% of all sewer spills occurred in the ﬁ rst three months of the year. These were caused by the ingress of tree roots into sewers, and followed the drought conditions of 2002/2003. Increased maintenance works have since reduced the frequency of blockages. An ongoing preventative maintenance program is also targeting areas that experience frequent sewer blockages.

2003/2004 Annual Report 47 Bacteriological Quality of Potable Water Supplied to Customers

Compliance Variance Target Actual Compliance Actual Compliance Supply Zone for zero E. coli and Compliance for E.coli for Total Coliforms zero Total Coliforms Fully Treated Supplies ALEXANDRA 100% 100% 100% 0% AVENEL 100% 100% 100% 0% BARMAH 100% 100% 98% -2% BROADFORD 100% 100% 100% 0% COBRAM 100% 100% 100% 0% EUROA 100% 100% 98% -2% KILMORE 100% 98% 79% -21% KYABRAM 100% 100% 100% 0% LONGWOOD 100% 100% 96% -4% MANSFIELD 100% 100% 94% -6% MERRIGUM 100% 100% 100% 0% MOOROOPNA 100% 100% 97% -3% MURCHISON 100% 100% 100% 0% NAGAMBIE 100% 100% 100% 0% NATHALIA 100% 100% 88% -12% NUMURKAH 100% 100% 98% -2% PICOLA 100% 98% 94% -6% PYALONG 100% 100% 100% 0% RUSHWORTH 100% 100% 100% 0% SEYMOUR (Includes Trawool) 100% 100% 100% 0% SHEPPARTON (Includes Congupna) 100% 100% 99% -1% TALLAROOK 100% 100% 98% -2% TALLYGAROOPNA 100% 100% 100% 0% TATURA 100% 100% 100% 0% TONGALA 100% 100% 100% 0% TOOLAMBA 100% 100% 100% 0% VIOLET TOWN 100% 100% 98% -2% WALLAN 100% 100% 98% -2% WANDONG-HEATHCOTE JUNCTION 100% 100% 100% 0% WUNGHNU 100% 100% 96% -4% YEA 100% 100% 100% 0% Partially Treated Supplies BONNIE DOON 100% 100% 88% -12% BUXTON 100% 100% 98% -2% COLBINABBIN 100% 100% 81% -19% DOOKIE 100% 100% 94% -6% EILDON 100% 100% 100% 0% GIRGARRE 100% 98% 85% -15% KATAMATITE 100% 100% 96% -4% KATANDRA WEST 100% 100% 96% -4% KATUNGA 100% 100% 100% 0% MARYSVILLE 100% 100% 79% -21% STANHOPE 100% 100% 98% -2% STRATHMERTON 100% 100% 98% -2% THORNTON 100% 98% 92% -8% UPPER DELATITE 100% 96% 83% -17% WATERFORD PARK 100% 100% 100% 0%

48 Goulburn Valley Water Non Potable Supplies COROP 80% 100% 100% 25% MOLESWORTH 80% 100% 100% 25% STRATHBOGIE 80% 100% 100% 25% WOODS POINT 80% 100% 92% 15% KIRWANS BRIDGE 80% 100% 100% 25% GOULBURN WEIR 80% 100% 100% 25% Fully Treated Supplies 99.9% 97.8% Partially Treated Supplies 99.4% 92.5% Non Potable Supplies 100.0% 98.6% TOTAL 99.8% 96.3% Variances Report – Bacteriological Quality of Potable Water Supplied to Customers Goulburn Valley Water obtains raw water supplies from inhabited and often polluted catchments. It relies on a multiple barrier approach, which include water treatment plants and disinfection facilities, to ensure that the water it supplies to customers is safe to drink. The Authority places a very high priority on ensuring that its potable supply systems are of the highest possible standard. This is illustrated by the Authority setting bacteriological targets of 100% compliance compared to targets of either 95% and 90% set by the Department of Human Services. Regular water sampling and continuous monitoring via an extensive SCADA system linked to a manned 24 hour control centre verify the performance of the various systems. In early 2003 the Authority moved to weekly bacteriological testing of all potable water supply systems. In 2003/2004 a total of 2,412 samples were taken from customer’s taps and tested at a NATA registered laboratory. The target for these samples was zero E.coli and zero coliforms. Total compliance over the year was 99.74% in respect to E.coli, and 96.15% in respect to total coliforms. All non-compliances are investigated, and reported to the Board of Goulburn Valley Water. In addition, consultants WATER ECOscience have undertaken a detailed review of coliform exceedances. They have concluded that the slight increase in the number of non-conformances is due principally to the increased sampling compared to previous years. Other factors such as the effectiveness of treatment and disinfection were judged to have only a minor impact. The Authority is progressively upgrading its treatment and disinfection systems. It has and is introducing improved management systems to improve the reliability of its treatment and disinfection systems. The training of water treatment staff has been improved. The Department of Human Services has advised that the presence of total coliform bacteria in well-managed water supply systems does not necessarily mean that the quality of water supplied is harmful to health, as many species of coliform bacteria occur naturally in the environment. Moreover, from 1 July 2004 total coliform will no longer be a compliance measure for Victorian water authorities.

Luke McCormick recording water quality results

49 Variations in excess of 5% of the business plan targets have occurred in the following systems: 1. Kilmore- the 79% compliance for total coliform was below the target of 100%. The failures occurred principally in the low level system, and can be attributed to occasional marginal chlorination. The problem was compounded by the severe water shortages which prevented staff undertaking normal reticulation fl ushing and air scouring until June 2004. Upgrading of one chlorination facility to provide a duty/standby arrangement and a back up power facility occurred in early 2004. Upgrading of the second plant is to occur later in 2004. 2. Mansfi eld – three samples taken over the year contained coliform. One failure was attributed to low chlorine levels; the others involved low numbers of coliform with relatively high chlorine residuals. 3. Nathalia – of the six samples that failed, four contained a single coliform. These low readings have no health signifi cance. The installation of a cover on the clear water storage and revised chlorination arrangements in late 2004 will signifi cantly improve this system. 4. Picola – Two samples contained low numbers of total coliform in water with an adequate chlorine residual. The other more serious failure involved the detection of 4 E.coli. This is believed to be related to a backfl ow issue at the fi re station or a contaminated sample. Discussions have taken place with the local fi re brigade regarding back fl ow hazards. 5. Bonnie Doon – low coliform numbers were often detected in the presence of relatively high chlorine readings. Increased turbidity due to the continuing low level of Lake Eildon is suspected to be a contributing factor. 6. Colbinabbin – coliforms have been detected on a number of occasions, often in the presence of high chlorine levels. Turbidity can be slightly elevated due to the basic treatment system at this location, and this can be a contributing factor to the failures. 7. Dookie – coliforms were detected in three samples. Marginal chlorination was the likely reason for these failures.

Goulburn Murray Water Channel at Tongala

50 Goulburn Valley Water 8. Girgarre – relies on sedimentation in a storage basin to reduce turbidity, and the chlorine demand of the treated water is relatively high. In low ﬂ ow areas of the town chlorine levels can be low, and coliform regrowth can occur. This is not indicative of any health risk. One failure was the result of a chlorinator malfunctioning. 9. Marysville – the water at Marysville has a relatively high organic content and the maintenance of chlorine residuals throughout the town is difﬁ cult. Coliforms were detected in ten samples and are generally attributed to regrowth within the reticulation network. 10. Thornton – marginal chlorine levels in this run-of-the-river system were the cause of these failures. 11. Upper Delatite – this is a chloraminated system, and generally low coliform numbers have been detected in the very long pipeline system. These low total coliform numbers do not indicate a health risk. On one occasion a short duration disinfection failure resulted in both low numbers of E.coli and coliforms being detected. 12. All six non-potable systems exceeded the performance targets. However, due to lack of treatment facilities the water delivered to customers in these towns cannot be guaranteed to be always free of pathogens. The very good results in 2003/2004 may not be repeated in future years.

2003/2004 Annual Report 51 Physico-Chemical Quality of Water Supplied to Customers for Turbidity, Colour and pH Level pH Turbidity Colour

Water Supply Zone Compliance with Guideline Value Compliance with Guideline Compliant No. Minimum Maximum Samples Taken Value Compliance with Guideline Compliant No. Maximum Samples Taken Value Compliance with Guideline Compliant No. Maximum Samples Taken Fully Treated Supplies AVENEL 100% 30 6.7 7.9 30 100% 30 0.9 30 100% 27 0 27 BARMAH 100% 40 6.9 7.6 40 100% 40 0.9 40 100% 40 8 40 BROADFORD 100% 36 6.9 8.1 36 100% 36 2.5 36 100% 34 9 34 COBRAM 100% 38 6.8 7.3 38 100% 38 0.9 38 100% 38 3 38 EUROA 100% 37 6.8 7.5 37 100% 37 1.4 37 100% 37 1 37 KILMORE 77% 71 7.2 9.4 92 100% 92 2.0 92 100% 92 5 92 KYABRAM 100% 33 6.8 7.4 33 100% 33 1.2 33 100% 33 0 33 LONGWOOD 100% 37 7.0 7.8 37 100% 37 2.4 37 100% 37 0 37 MANSFIELD 100% 39 6.5 7.3 39 100% 39 1.3 39 100% 39 7 39 MERRIGUM 100% 32 6.9 7.6 32 100% 32 1.4 32 100% 32 7 32 MOOROOPNA 100% 37 6.9 8.2 37 100% 37 4.4 37 100% 37 1 37 MURCHISON 100% 37 6.9 7.7 37 100% 38 1.4 38 100% 38 0 38 NAGAMBIE 100% 31 6.7 7.7 31 100% 30 0.8 30 100% 27 14 27 NATHALIA 100% 40 6.8 7.5 40 98% 39 10.2 40 98% 39 19 40 NUMURKAH 100% 38 6.8 7.5 38 97% 37 7.8 38 100% 37 10 37 PICOLA 100% 40 6.9 7.6 40 100% 40 1.7 40 100% 40 12 40 PYALONG 100% 35 7.5 7.9 35 100% 35 2.0 35 100% 33 5 33 RUSHWORTH 100% 40 6.6 7.7 40 95% 39 6.5 41 100% 40 0 40 SEYMOUR 82% 102 6.8 9.7 124 94% 114 8.5 121 100% 113 7 113 SHEPPARTON 100% 96 6.6 8.2 96 100% 96 2.0 96 100% 96 <2 96 TALLAROOK 100% 31 7.0 8.4 31 100% 30 2.5 30 100% 26 0 26 TALLYGAROOPNA 100% 32 7.1 8.2 32 100% 32 1.3 32 100% 32 0 32 TATURA 100% 40 6.8 8.2 40 92% 36 6.5 39 100% 40 7 40 TONGALA 97% 32 6.9 9.0 33 100% 34 1.4 34 100% 32 0 32 TOOLAMBA 100% 39 7.2 7.8 39 100% 39 2.6 39 100% 38 1 38 VIOLET TOWN 100% 37 6.8 7.4 37 100% 37 1.9 37 100% 37 2 37 WALLAN 100% 92 6.5 8.1 92 100% 92 3.3 92 100% 92 5 92 WANDONG- HEATHCOTE 90% 26 7.0 8.7 29 100% 29 1.6 29 100% 29 2 29 JUNCTION WATERFORD PARK 97% 35 6.7 8.7 36 100% 36 2.5 36 100% 33 5 33 WUNGHNU 100% 38 6.9 7.5 38 100% 38 3.3 38 100% 38 7 38 YEA 100% 45 6.7 7.5 45 100% 45 1.1 45 100% 42 11 42

52 Goulburn Valley Water pH Turbidity Colour

Water Supply Zone Compliance with Guideline Value Compliance with Guideline Compliant No. Minimum Maximum Samples Taken Value Compliance with Guideline Compliant No. Maximum Samples Taken Value Compliance with Guideline Compliant No. Maximum Samples Taken Partially Treated Supplies ALEXANDRA 100% 45 6.7 7.5 45 100% 44 1.9 44 100% 42 11 42 BONNIE DOON 100% 39 6.7 7.6 39 82% 32 6.7 39 92% 36 54 39 BUXTON 98% 44 5.1 7.2 45 100% 45 1.8 45 98% 41 49 42 COLBINABBIN 100% 37 6.8 8.0 37 92% 34 8.3 37 100% 37 2 37 DOOKIE 100% 32 6.9 7.8 32 100% 32 1.9 32 100% 32 2 32 EILDON 96% 43 6.4 6.9 45 78% 35 12.0 45 95% 40 40 42 GIRGARRE 100% 33 7.1 8.5 33 100% 33 4.4 33 100% 33 2 33 KATAMATITE 97% 37 6.9 8.7 38 100% 38 4.6 38 100% 37 8 37 KATANDRA WEST 100% 33 7.1 7.8 33 97% 32 5.3 33 100% 33 3 33 KATUNGA 100% 36 6.7 7.0 36 100% 37 0.7 37 100% 31 2 31 MARYSVILLE 100% 45 6.6 7.2 45 100% 45 1.9 45 95% 40 44 42 STANHOPE 100% 32 6.7 7.5 32 100% 32 4.9 32 100% 32 4 32 STRATHMERTON 100% 37 6.5 7.0 37 100% 38 0.9 38 100% 33 2 33 THORNTON 100% 45 6.6 7.3 45 100% 44 4.5 44 88% 37 43 42 UPPER DELATITE 92% 47 6.4 7.0 51 98% 50 5.5 51 96% 49 41 51 Non Potable Supplies COROP 100% 30 7.3 8.1 30 57% 17 13.5 30 100% 30 13 30 GOULBURN WEIR 100% 30 6.8 8.2 30 13% 4 45.0 30 15% 4 71 27 KIRWANS BRIDGE 100% 31 6.7 7.5 31 7% 2 95.0 30 15% 4 77 26 MOLESWORTH 100% 20 6.7 7.4 20 64% 9 7.6 14 80% 12 50 15 STRATHBOGIE 100% 37 6.7 7.6 37 3% 1 29.1 37 0% 0 146 37 WOODS POINT 100% 10 6.7 7.2 10 100% 9 4.5 9 100% 9 6 9 Variances Report – Physico-Chemical Quality of Water Supplied to Customers for Turbidity, Colour and pH Level pH The pH compliance range is 6.5 to 8.5, and is based supply area is supplied via an old cast iron on the need to reduce corrosion in pipes. Only supply main. Kilmore, Seymour Wandong-Heathcote Junction and 3. The results for Wandong-Heathcote Junction Upper Delatite fell below the 95% compliance level. show that three out of 29 samples had pH Minor exceedences do not impact on the suitability levels above 8.5, with the highest reading being of the water for normal domestic use. 8.71. These results are caused by extended 1. At Kilmore 11 minor non-conformances were contact with concrete pipe linings and tanks. recorded at one property. All these results 4. The natural pH of water in the Delatite River at were slightly above the 8.5 upper limit, and are Sawmill Settlement, which supplies the Upper believed to be due to a relatively long contact Delatite system, is often marginally below 6.5. time with cement based pipe at this location. The minor nature of the variance and naturally 2. A number of failures were also recorded at attractive quality of this water does not justify Seymour in the Trawool area. This part of the pH correction.

2003/2004 Annual Report 53 Darryl Johnston adjusting the alum dosing pump Turbidity The turbidity limit is 5NTU, and this is consistently met for most systems. Water with a turbidity of 5 would appear slightly muddy and milky in a glass. Towns that fell below the 95% compliance level were: 1. Tatura – due to ﬁ ltration problem, the Tatura water treatment plant produced poor quality water for a short period of time. The maximum turbidity recorded was 6.5NTU. 2. Bonnie Doon – the low level in Lake Eildon, which is the raw water supply source for Bonnie Doon, did not allow for the normal long settlement time in the Town Storage. As a result a small number of samples were marginally above the 5NTU limit. 3. Eildon – water for this community is drawn directly from Lake Eildon. No treatment occurs for turbidity. The low level of the lake has caused turbidity levels to increase, and ten samples exceeded the 5NTU limit. A new water treatment plant, scheduled for construction in 2006/2007, will eliminate this problem. 4. Seymour – a small number of failures were recorded at Trawool due to the old supply main in this area. 5. Colbinabbin – clariﬁ cation of water for this town occurs in two earthen basins. Three out of 37 samples exceeded the 5NTU limit. The maximum reading was 8.3NTU.

Colour The compliance limit for colour is 15 Hazen Units. Compliance levels of less than 95% were recorded only at Bonnie Doon and Thornton. These non- compliances are only of aesthetic signiﬁ cance and relate to the natural colour in these untreated supplies.

54 Goulburn Valley Water Quality of Reclaimed Water Reuse by Wastewater Management Facility

Aggregate annual performance of a Short term/persistent compliance treatment or disposal facility with EPA Licence Wastewater Management Facility Overall sets Business Plan Business Plan Overall tests Variation (Sampling Variation Target Target events) Alexandra 77% 84% 9% 33% 83% 151% This system is Avenel evaporation 0% 100% 0% only Bonnie Doon 100% 100% 0% 100% 100% 0% Broadford 100% 100% 0% 100% 100% 0% Cobram 100% 100% 0% 100% 100% 0% Eildon 83% 93% 12% 67% 81% 21% Euroa 100% 100% 0% 100% 100% 0% This system is Girgarre 100% evaporation 0% 100% 0% only Kilmore 100% 79% 21% 100% 67% 33% Kyabram 100% 100% 0% 100% 100% 0% Mansﬁ eld 100% 100% 0% 100% 100% 0% Marysville 100% 100% 0% 100% 100% 0% Mooroopna 100% 100% 0% 100% 100% 0% This system is Murchison 100% evaporation 0% 100% 0% only Nagambie 100% 100% 0% 100% 100% 0% Nathalia 100% 0% 100% 100% 0% 100% Numurkah 100% 100% 0% 100% 100% 0% Seymour 100% 100% 0% 100% 100% 0% Shepparton 100% 100% 0% 100% 100% 0% This system is Stanhope/ 100% evaporation 0% 100% 0% Rushworth only This system is Strathmerton 100% evaporation 0% 100% 0% only Tatura 100% 100% 0% 100% 100% 0% Tongala 100% 100% 0% 100% 100% 0% Upper Delatite 100% 100% 0% 100% 100% 0% This system is Violet Town 100% evaporation 0% 100% 0% only Wallan 95% 76% 20% 75% 75% 0% Yea 100% 100% 0% 100% 100% 0%

2003/2004 Annual Report 55 Belinda Murray taking a sample of reclaimed water at the Shepparton wastewater Variance Report – Quality of Reclaimed Water Reuse management facility Non-compliances at Alexandra occurred during the release of reclaimed water to the Goulburn River and were caused by algal blooms in the lagoons at the facility. The tertiary treatment plant, designed to remove nutrients and suspended materials (including algae), has been commissioned and will signifi cantly improve the quality of reclaimed water released to the river. Non-compliances at Eildon occurred during the release of reclaimed water to the Goulburn River and were also the result of algal blooms occurring in the facility’s fi nal lagoon caused by algae events. The tertiary treatment upgrade of this plant was not completed in the reporting period. Non-compliances at Kilmore occurred during a time when lagoon levels were very low due to reclaimed water reuse for the construction of the new winter storages at Kilmore wastewater management facility. The winter storages have been completed and releases to the Kilmore Creek have ceased. Non-compliances at Nathalia are the result of inadequate winter storage capacity. A new winter storage is under construction. Non-compliances at Wallan occurred during an emergency release of reclaimed water to the Merri Creek. Operational staff had diffi culty optimising the alum dosing rate to achieve required phosphorus removal. Additional irrigation facilities are being developed in 2004/2005.

56 Goulburn Valley Water Environmental Performance Indicators

Waste Management for Wastewater (by Treatment or Disposal Facility) Reclaimed Water Reuse by Wastewater Management Facility Business Total Wastewater Management Facility Variation (%) Plan Target (%) % Reused Alexandra 48 14 71 Avenel 100 0 100 Bonnie Doon 100 100 0 Broadford 100 100 0 Cobram 100 100 0 Eildon 63 35 44 Euroa 100 100 0 Girgarre 100 0 100 Kilmore 47 0 100 Kyabram and Merrigum 100 100 0 Mansﬁ eld 100 100 0 Marysville 100 100 0 Mooroopna 100 100 0 Murchison 100 0 100 Nagambie 100 100 0 Nathalia 100 100 0 Numurkah 100 100 0 Seymour 100 100 0 Shepparton 62 50 19 Stanhope/Rushworth 100 0 100 Strathmerton 100 0 100 Tatura 100 100 0 Tongala 100 100 0 Upper Delatite 100 100 0 Violet Town 100 0 100 Wallan 94 88 6 Yea 100 100 0 Total 70 % Reused = (Volume reused/ Volume exiting last process unit of the facility)* 100

Variance Report – Reclaimed Water Reuse The variation for Avenel, Girgarre, Murchison, Stanhope/Rushworth, Strathmerton and Violet Town was 100%. The reclaimed water storage lagoons at these sites are sized for future growth and evaporation levels are such that no reclaimed water is available for irrigation. The 100% variation for the Kilmore wastewater management facility was due to newly constructed storage lagoons that were being ﬁ lled this year. Thus no reclaimed water was available for reuse. Tertiary treatment plants were built and commissioned at Alexandra and Eildon wastewater management facilities this year. The associated process trials used reclaimed water that would have normally been available for reuse in irrigation. At Eildon wastewater management facility the third party reuser elected to grow pasture for hay which delayed commencement of the irrigation season. This will not occur next year. At Shepparton and Wallan wastewater management facilities rainfall and inﬂ ows were higher than the previous year which was used as a basis for the targets. The rain delayed the commencement of the irrigation season and impacted negatively upon the evaporation volume.

2003/2004 Annual Report 57 Wastewater Sludge Reused/Recycled Indicator 2003/2004 Target 2003/2004 Result Variance % Volume of Sludge Reused 0% 0% 0% Water Services Agreement Standards Indicator 2003/2004 Target 2003/2004 Result Variance % Restoration of water supply – unplanned 98% 99% -1% interruptions resolved within 5 hours Containment of Sewer Spillages No of 100% 100% 0% sewer spillages contained within 5 hours Customer Complaints Performance Indicators Indicator 2003/2004 Target 2003/2004 Result Variance % Water Quality Complaints 7.5 6.22 -17% Water Supply Reliability Complaints 6.0 2.86 -52% Sewerage Service Quality 4.0 1.83 -52% and Reliability Complaints Affordability Complaints 3.0 0.22 -93% Other Complaints 2.0 1.84 -8%

Variance Report – Customer Complaints

Water Quality Complaints Affordability Complaints The result of 6.22 complaints per 1,000 customers The target for affordability complaints was based was below the target of 7.5. Most of these complaints on limited information and was well in excess of the relate to high turbidity or colour in the water. Improved recorded complaints in 2003/2004. scheduling of water main cleaning is expected to continue the reduction in this indicator. Other Complaints The result was 1.84 complaints per 1,000 customers Water Supply Reliability Complaints compared to the 2.0 target. The major issue was The result of 2.86 was much better than the target trench subsidence complaints following construction of 6 complaints per 1,000 customers. It indicates an of sewers. excellent response by Authority staff to any supply interruption or problem.

Sewerage Service Quality and Reliability Complaints Improved operation of sewerage facilities and prompt customer service provided a result of 1.83 complaints per 1,000 customers. This compared to the target of 4.0.

58 Goulburn Valley Water 2003/2004 Annual Report 59 60 Goulburn Valley Water Financial Statements Statement of Financial Performance for the year ended 30 June, 2004 Note 2004 2003 $’000 $’000

Revenue from Operating Activities

Fees and Charges 2 30,253 31,676 Developer and Land Owner Contributions 3 13,573 16,234 Government Contributions 4 459 - Interest Revenue 5 926 1,277 Other Revenue 6 2,024 2,471 47,235 51,658

Expenses of Operating Activities

Direct Expenses 7 30,367 29,612 Administration Expenses 8 6,642 6,214 Borrowing Costs 9 778 832 37,787 36,658

Proﬁ t from Ordinary Activities before Tax 9,448 15,000

Income Tax Expense 10 - -

Net Proﬁ t 9,448 15,000

The above Statement of Financial Performance should be read in conjunction with the accompanying notes

2003/2004 Annual Report 61 Statement of Financial Position as at 30 June, 2004 Note 2004 2003 $’000 $’000 Current Assets Cash Assets 11 580 7,929 Receivables 12 7,646 7,695 Prepayments 266 170 Inventories 13 1,121 1,023 Other Financial Assets 14 - 2,000 Total Current Assets 9,613 18,817

Non-Current Assets Receivables 12 10,068 10,624 Property, Plant and Equipment 15 437,636 418,229 Total Non-Current Assets 447,704 428,853 Total Assets 457,317 447,670

Current Liabilities Payables 16 5,972 7,080 Interest Bearing Liabilities 17 333 6,790 Provisions 18 1,298 1,150 Total Current Liabilities 7,603 15,020

Non-Current Liabilities Interest Bearing Liabilities 17 10,895 3,228 Provisions 18 1,395 1,446 Total Non-Current Liabilities 12,290 4,674 Total Liabilities 19,893 19,694 Net Assets 437,424 427,976

Equity Contributed Equity 19 251,548 251,548 Reserves 20(a) 152,679 152,679 Retained Proﬁ ts 20(b) 33,197 23,749 Total Equity 437,424 427,976

The above Statement of Financial Position should be read in conjunction with the accompanying notes

62 Goulburn Valley Water Statement of Cash Flows for the year ended 30 June, 2004 Note 2004 2003 $’000 $’000 Cash Flows from Operating Activities Receipts from Customers (inclusive of goods and 41,505 42,491 services tax) Income Grants from Government Departments 459 - Payments to Suppliers and Employees (inclusive of goods (27,949) (25,455) and services tax) Interest and Bill Discounts Received 965 1,302 Interest and Other Costs of Finance Paid (733) (848) Net Cash Inﬂ ow from Operating Activities 21 14,247 17,490

Cash Flows from Investing Activities Proceeds from Sale of Investments 2,000 14,000 Proceeds from Sale of Property, Plant and Equipment 6 964 825 Payments for Property, Plant and Equipment (25,770) (28,177) Net Cash (Outﬂ ow) from Investing Activities (22,806) (13,352)

Cash Flows from Financing Activities Proceeds from Borrowings 8,000 - Proceeds from Government Equity Contributions 19 - 577 Repayment of Borrowings (6,790) (1,142) Net Cash Inﬂ ow (Outﬂ ow) from Financing Activities 1,210 (565)

Net Increase (Decrease) in Cash held (7,349) 3,573 Cash at the beginning of the Financial Year 7,929 4,356 Cash at the end of the Financial Year 11 580 7,929

The above Statement of Cash Flows should be read in conjunction with the accompanying notes

2003/2004 Annual Report 63 Notes to the Financial Staements Note 1 Summary of Signifi cant Accounting Policies This general purpose fi nancial report has been prepared in accordance with the Financial Management Act 1994, applicable Accounting Standards, relevant Directions of the Minister for Finance and other mandatory professional reporting requirements (Urgent Issue Group Consensus Views). It is prepared in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation. Where necessary comparative fi gures have been adjusted to conform with presentation and disclosure requirements in the current year. 1(a) Revenue Recognition Revenue is brought to account when services have been provided or when tariffs and fees have been levied. Water and sewerage charges by measure are recognised as income when the service has been used. Meter reading is cyclical and, therefore, an estimation is made at the end of each accounting period for water services used by customers and recorded on meters which have not yet been read. Gains or losses on disposal of non-current assets are calculated as the difference between the gross proceeds on sale and their written down value. Contributions for capital works from all sources other than the Victorian State Government are treated as revenue and are disclosed in the notes to the fi nancial statements as landowner contributions and headworks fees. Developers are required to make fair and reasonable contributions towards the cost of developing the Authority’s water supply distribution and sewerage disposal systems. These contributions are recorded as ‘headworks fees’ and are recognised as revenue upon receipt. Grants received from the Victorian State Government for specifi c capital projects are normally treated as equity and disclosed in the Statement of Financial Position as “contributed equity” following Ministerial approval. Refer note 19. Landowner contributions represent assets acquired at no cost to the Authority and are recognised as revenue upon their acceptance by the Authority for maintenance in perpetuity. 1(b) Income Tax For the fi nancial year 2001-02, the Authority was subject to the rules applicable under the State Equivalent Tax Regime administered by the Victorian Department of Treasury and Finance. The Authority was notifi ed by the Treasurer, of the Government’s decision to direct Regional Water Authorities to become subject to the National Tax Equivalent Regime (NTER) from 1 July, 2002. The NTER is administered by the Australian Taxation Offi ce. Tax effect accounting procedures are followed whereby the income tax expense in the Statement of Financial Performance is matched with the accounting profi t after allowing for permanent differences. The future tax benefi t relating to tax losses is not carried forward as an asset unless the benefi t is virtually certain of realisation. Income tax on cumulative timing differences is set aside to the deferred income tax or the future income tax benefi t accounts at rates which are expected to apply when timing differences reverse. Please refer further information Note 10. The Authority has adopted the liability method of Tax Effect Accounting in accordance with the requirements of AAS 3.

64 Goulburn Valley Water 1(c) Inventories Inventories consist of stores and materials used by the Authority in construction, repairs and maintenance of works and livestock held on the Authority’s wastewater treatment farms. Inventories other than livestock are valued at the lower of cost and net realisable value. Costs are assigned to stores and materials on the basis of weighted average cost. In accordance with Accounting Standard AAS 35 Self Generating and Regenerating Assets, livestock are valued at net market value. 1(d) Investments Investments are valued at cost and are classifi ed between current and non-current assets based on maturity dates of individual investments. Interest revenue from investments is brought to account as it is earned. 1(e) Revaluation of Property, Plant and Equipment Land, buildings and infrastructure assets are revalued on a 5 yearly cycle. Plant and equipment is recorded in the accounts at cost. Assets with a useful life of less than 2 years at the date of review are not revalued. Major assets may be the subject of further interim review and revaluation at the Authority’s discretion. Assets are not revalued to an amount which will exceed their recoverable amount. The revised accounting standard AASB 1041 Revaluation of Non-Current Assets requires assets to be valued at fair value. The Authority will revalue land, buildings and infrastructure assets to fair value by June 2005 in accordance with the transitional provisions of the standard. Revaluations will then be completed on a regular basis to ensure the carrying amounts of assets refl ect their fair value. Revaluation increments are credited to an Asset Revaluation Reserve (refer note 20) except to the extent they reverse a revaluation decrement previously recognised as an expense, that portion of the increment being included in revenue. To the extent that a revaluation decrement reverses a revaluation increment previously credited to and still included in the balance of the Asset Revaluation Reserve, the decrement is debited directly to that reserve. Otherwise the decrement is recognised as an expense in the Statement of Financial Performance. 1(f) Carrying Amount Of Non-Current Assets The carrying amounts of classes of fi xed assets are reviewed annually to determine whether they are in excess of their recoverable amounts at balance date. If the carrying amount of a class of fi xed assets exceeds its recoverable amount, the assets are written down to the lower amount. The recoverable amount of an asset is the net amount expected to be recovered through the net cash infl ows arising from its continued use and subsequent disposal. Expected net cash fl ows have not been discounted to their present value in determining the recoverable amount for major asset groups. 1(g) Property, Plant and Equipment Constructed by the Authority The cost of non-current assets constructed by the Authority includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fi xed overhead. 1(h) Depreciation of Property, Plant and Equipment All fi xed assets with the exception of land are depreciated using the straight line method to write off the net cost or revalued amount of each item over its estimated useful life to the Authority. The estimated useful lives of each group of assets have been reviewed during the year , and adjustments made where required. The estimated useful lives are as follows: Buildings 30 to 50 years Infrastructure Assets 5 to 100 years Plant and Equipment 3 to 20 years

2003/2004 Annual Report 65 1(i) Leases Leases of fi xed assets, where substantially all the risks and benefi ts incidental to the ownership of the asset, but not the legal ownership, are transferred to the Authority, are classifi ed as fi nance leases. Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets are amortised over their estimated useful lives. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Lease payments for operating leases, where substantially all the risks and benefi ts remain with the lessor, are charged as expenses in the periods in which they are incurred. 1(j) Borrowing Costs Borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing costs include interest on bank overdrafts, interest on borrowings and fi nance lease charges. 1(k) Provision for Dividend An obligation to pay a dividend only arises after consultation between the Board, the relevant portfolio Minister and the Treasurer. Following this consultation a formal determination is made by the Treasurer. Although this process has not yet been completed at the reporting date, the Board’s preliminary dividend estimate in respect of the current year is nil. 1(l) Employee Benefi ts (i) Wages and Salaries and Sick Leave Liabilities for wages and salaries, including non-monetary benefi ts expected to be settled within 12 months of the reporting date, are measured at their nominal amounts in respect of employees’ services up to the reporting date. The nominal basis of measurement uses employee remuneration rates that the entity expects to pay as at each reporting date and does not discount cash fl ows to their present value. Non-vesting sick leave is not expected to exceed current and future sick leave entitlements, and accordingly, no liability has been recognised. (ii) Annual Leave Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balance date, including on-costs. Annual leave entitlements are provided for at their nominal value as above. (iii) Long Service Leave Long service leave expected to be paid within 12 months of the reporting date is recognised in the provision for employee benefi ts and is recorded as a current liability in the Statement of Financial Position at its nominal value. Long service leave expected to be paid later than one year is recognised in the provision for employee benefi ts and is measured at the present value of the estimated future cash outfl ows to be made for these entitlements and recorded as a non-current liability. Consideration is given to expected future employee remuneration rates, employment related on-costs and other factors including experience of employee departures and periods of service. Commonwealth Bond Rates are used for discounting future cash fl ows. (iv) Superannuation The Authority contributes in respect of its employees to the superannuation plans as detailed in note 24. Any unfunded liability in respect of any of these plans is recognised in the fi nancial statements of the Authority. Unfunded liabilities are defi ned as the difference between the present value of the employees’ accrued benefi ts at the reporting date and the net market value of the superannuation plan’s assets at that date.

66 Goulburn Valley Water 1(m) Goods and Services Tax Revenues, expenses and assets are recognised net of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Offi ce (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from , or payable to, the ATO is included as a current asset or liability in the Statement of Financial Position. Cash fl ows arising from operating activities are disclosed in the Statement of Cash Flows on a gross basis – ie. inclusive of GST. The GST component of cash fl ows arising from investing and fi nancing activities which is recoverable or payable to the ATO is classifi ed as operating cash fl ows. 1(n) Adoption of Australian Equivalents to International Financial Reporting Standards

Background For the reporting period ending 30 June 2006, the Authority is required to adopt the fi nancial reporting requirements of the Australian equivalents to International Financial Reporting Standards (IFRSs). This fi nancial report will require comparatives at 30 June 2005 and hence will require opening balances for the fi nancial year commencing 1 July 2004. The Authority is a not-for-profi t reporting entity for the purposes of the Australian equivalent standards. Included in the Australian equivalent IFRS standards will be additional wording where there is a need to have different or additional requirements for not-for-profi t entities. In addition, standards of particular relevance to the Australian environment that deal more specifi cally with not-for-profi t entity issues and/or do not have an equivalent IASB standard will also be maintained.

Managing Transition The Authority has commenced activities to identify key issues and the likely impacts resulting from the adoption of Australian equivalents to IFRSs.

Potential impacts Based on our analysis of the requirements in the proposed standards relating specifi cally to not-for- profi t entities there is considered to be little potential for a material impact on the Authority’s fi nancial position and future fi nancial performance following adoption of the requirements of the Australian equivalent IFRS standards. However, the impacts of the proposed standards have yet to be fully analysed. In addition, certain decisions have yet to be made where choices of accounting policies are available. 1(o) Rounding of Amounts Amounts reported in the fi nancial statements are expressed to the nearest thousand dollars, or in certain cases, to the nearest dollar.

2003/2004 Annual Report 67 Note 2004 2003 $’000 $’000

Note 2 Fees and Charges

Tariffs and Charges 14,499 13,654 Metered Charges 11,658 14,092 Trade Waste Charges 3,245 3,183 Licences and Fees 851 747 30,253 31,676

Note 3 Developer and Land Owner Contributions

Landowner Contributions 8,774 13,260 Headworks Fees 4,799 2,974 13,573 16,234

Note 4 Government Contributions

Capital Project Grant – Water 351 - Capital Project Grant – Sewer 108 - 459 -

Note 5 Interest Revenue

Interest on Investments 115 737 Interest on Tariffs, Schemes and Charges 811 540 926 1,277

Note 6 Other Revenue

Proceeds on the Sale of Property, Plant & Equipment 964 825 (1) Rent/Lease 284 197 Farm Revenue 598 868 Miscellaneous 178 581 2,024 2,471

(1) Sale of Property, Plant and Equipment throughout the period realised a loss of $119,933 (2003: Loss $502,937)

68 Goulburn Valley Water Note 2004 2003 $’000 $’000

Note 7 Direct Expenses Purchase of Raw Water 903 872 Maintenance 4,508 4,350 Water Treatment 5,874 6,401 Sewage Treatment and Pumping 6,760 6,000 Depreciation Infrastructure 15 11,238 10,662 Written Down Value of Property, 1,084 1,327 Plant & Equipment Disposed (1) 30,367 29,612

Note 8 Administration Expenses Salaries & Oncosts 3,410 3,208 Bad Debts Written Off 22 33 Audit Fees - External Audit (Auditor-General, Victoria) 35 35 Audit Fees - Internal Audit (Pitcher Partners) 27 15 Depreciation 15 1,609 1,412 Professional/Consulting Services 166 182 Ofﬁ ce Expenses 629 661 Promotions & Development 218 208 Computer Expenses 210 170 Authority and Associated Expenses 316 290 6,642 6,214

Note 9 Borrowing Costs Lease Charges 7 5 Interest on Loans & Bank Charges 771 827 778 832

2003/2004 Annual Report 69 Note 2004 2003 $’000 $’000

Note 10 Income Tax The income tax expense for the ﬁ nancial year differs from the amount calculated on the operating proﬁ t . The differences are reconciled as follows:

Operating proﬁ t before income tax 9,448 15,000 Income tax calculated at 30% 2,834 4,500

Tax effect of permanent differences Non-deductible depreciation 25 28 Capital Loss on Disposal of Asset - 8 Legal fees and penalties 2 2 Sundry items 1 1 Income tax adjusted for permanent differences 2,862 4,539

Benefi t of tax losses for the year not brought to 1,540 - account (refer (i)) Benefi t of prior year tax losses brought to account in - (744) this year Net provision for deferred income tax not brought to (4,402) (3,795) account (refer (i)) Income tax expense attributable to operating profi t--

(i) A net provision for deferred income tax has not been brought to account in these ﬁ nancial statements because there is considerable uncertainty in respect to whether a taxation liability will ever eventuate. Assuming the Authority remains subject to the same price controls to which it has been subject in recent times, and assuming similar operating costs, it is projected that no taxation liability will occur for at least 20 years. With increasing service standards likely to increase operating costs in future, it may be that a taxation liability never occurs. Accordingly, the Authority does not believe it is appropriate to bring these taxation assets and liabilities to account at this time. Had the Authority brought these assets and liabilities to account, an income tax expense of $2.862 million would have been recognised in the Statement of Financial Performance thus reducing the net proﬁ t by the same amount. Furthermore, a net deferred tax liability (the net of deferred tax assets and deferred tax liabilities) of $10.062 million would have been recognised as a non-current liability in the Statement of Financial Position, which would also have reduced the net assets by the same amount.

70 Goulburn Valley Water Note 2004 2003 $’000 $’000

Note 11 Cash Assets Cash at Bank and on hand 580 2,029 Deposits at Call - 5,900 580 7,929

Note 12 Receivables Current Receivables 7,746 7,795 Less Provision for Doubtful Debts (100) (100) Total current Receivables 7,646 7,695 Non-current Receivables 10,068 10,624 Total Receivables 17,714 18,319

Note 13 Inventories Stores and Materials – at cost 641 713 Livestock – at net market value 1(c) 480 310 1,121 1,023

Note 14 Other Financial Assets Current Investments Interest Bearing Bank Deposits & Commercial Bills - 2,000 - 2,000

2003/2004 Annual Report 71 2004 2003 $’000 $’000

Note 15 Property, Plant and Equipment Land and Buildings Freehold Land At Independent Valuation 2001 19,995 19,995 At Cost 1,448 735 21,443 20,730 Buildings At Independent Valuation 2001 9,496 9,496 Less: Accumulated Depreciation (925) (655) 8,571 8,841

At Cost 937 409 Less: Accumulated Deprecation (34) (14) 903 395 Total Land and Buildings 30,917 29,966

Infrastructure Assets At Independent Valuation 2001 309,365 309,632 Less: Accumulated Depreciation (26,529) (17,843) 282,836 291,789 At Cost 103,776 65,231 Less: Accumulated Depreciation (4,666) (2,240) 99,110 62,991 Infrastructure Assets in the course of construction 19,471 29,017 Total Infrastructure Assets 401,417 383,797

Plant and Equipment At Cost 10,476 8,838 Less: Accumulated Depreciation (5,174) (4,372)

5,302 4,466 Total Plant and Equipment Total Property Plant and Equipment 437,636 418,229

Valuation of Property, Plant and Equipment All land, buildings and infrastructure assets of the Authority were revalued on the 1 July, 2001, by Meritec Pty Ltd and Andersens, at written down replacement cost. Plant and Equipment is recorded at deemed cost from 1 July, 2001. Assets purchased or acquired after the revaluation date are recorded in the accounts at cost.

72 Goulburn Valley Water Note 15 Property, Plant and Equipment (Cont.)

Reconciliations Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current ﬁ nancial year are set out below. Freehold Infrastructure In Course of Plant & Buildings Total Land Assets Construction Equipment $’000 $’000 $’000 $’000 $’000 $’000 Carrying amount at 20,730 9,236 354,780 29,017 4,466 418,229 1 July 2003 Additions 713 528 38,547 (9,546) 3,096 33,338 Disposals - - (143) - (941) (1,084) Depreciation - (290) (11,238) - (1,319) (12,847) Expense Carrying amount at 21,443 9,474 381,946 19,471 5,302 437,636 30 June, 2004

2004 2003 $’000 $’000 Depreciation Charge for the Year

Buildings 290 311 Infrastructure 11,238 10,662 Plant and Equipment 1,319 1,101 12,847 12,074

Non-Current Assets Pledged as Security The Authority has not pledged any of its non-current assets as security.

2003/2004 Annual Report 73 Note 2004 2003 $’000 $’000 Note 16 Payables Trade Creditors 4,754 6,398 Other Creditors 1,218 682 5,972 7,080

Note 17 Interest Bearing Liabilities - Secured Current Interest Bearing Liabilities Bank Loans 62 6,454 Other Loans 271 336 333 6,790 Non-Current Interest Bearing Liabilities Bank Loans 265 327 Other Loans 10,630 2,901 10,895 3,228 Total Interest Bearing Liabilities 11,228 10,018 Loans are secured by the future revenue of the Authority

Note 18 Provisions

Current Provisions Employee Beneﬁ ts - Annual Leave 1,108 1,068 - Long Service Leave 190 82 1,298 1,150 Non-Current Provisions Employee Beneﬁ ts - Long Service Leave 1,395 1,446 Total Provisions 2,693 2,596 Total Number of Employees at reporting date 171 172

Note 19 Contributed Equity

Balance – 1 July, 2003 251,548 250,971 Ministerially Approved Contributions - 577 Balance - 30 June, 2004 251,548 251,548

The purpose of Ministerially approved contributions was to partially fund sewerage facilities constructed in several small towns.

74 Goulburn Valley Water Note 2004 2003 $’000 $’000 Note 20 Reserves and Retained Proﬁ ts

(a) Reserves Sinking Fund Reserve 1,792 1,792 Asset Revaluation Reserve 150,887 150,887 152,679 152,679

(b) Retained Profi ts Retained Profi ts at the beginning of the fi nancial year 23,749 8,749 Net Profi t 9,448 15,000 Retained Profi ts at the end of the Financial Year 33,197 23,749

(c) Nature and Purpose of Reserves (i) Sinking Fund Reserve The Sinking Fund Reserve represents funds set aside to reserves in accordance with loan agreements in place with South Australian Finance Trust and Victorian Superannuation Board to ensure there are sufﬁ cient funds available to repay loans at maturity. (ii) Asset Revaluation Reserve The Asset Revaluation Reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note 1(e).

2003/2004 Annual Report 75 Note 2004 2003 $’000 $’000 Note 21 Reconciliation of Net Proﬁ t to Net Cash Inﬂ ow from Operating Activities

Net Proﬁ t 9,448 15,000

Contributed Assets (8,210) (6,587) Depreciation 12,847 12,074 (Proﬁ t)/Loss on Sale of Non-Current Assets 120 503 Bad Debts Written Off 22 33

Change in Assets and Liabilities (Increase)/Decrease in Receivables 583 (5,169) (Increase)/Decrease in Inventories (98) 50 (Increase)/Decrease in Prepayments (96) (13) Increase/(Decrease) in Trade Creditors and Accruals (466) 1,257 Increase/(Decrease) in Provisions 97 342 Net Cash Inﬂ ow from Operating Activities 14,247 17,490

Note 22 Wholesale and Retail Reporting (i) Retail Operations Urban Water Wastewater Total 2004 2003 2004 2003 2004 2003 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000

Revenue Sales – external 22,367 22,498 23,492 27,367 45,859 49,865 Other Revenue 103 101 137 94 240 195 Total Segment Revenue 22,470 22,599 23,629 27,461 46,099 50,060 Total Segment Result 7,981 7,685 8,691 13,658 16,672 21,343 Unallocated Revenues 1,136 1,598 Less Unallocated Expenses 8,360 7,941 Net Proﬁ t 9,448 15,000

This Authority does not have any material Wholesale operations

76 Goulburn Valley Water (ii) Transactions with Other Victorian Government Controlled Entities During the ﬁ nancial year transactions were undertaken with other Victorian Government controlled entitles. These transactions are summarised as follows: 2004 2003 Intra Inter Intra Inter $’000 $’000 $’000 $’000

Assets 11 202 13 5,103 Liabilities 10 8,098 1 90 Income 78 1,724 99 1,833 Expenses 1,034 970 987 813 “Intra” transactions are with entities within the Department of Sustainability & Environment portfolio. “Inter” transactions are with entities outside the portfolio controlled by the Victorian Government. Note 23 Financial Instruments

(i) Terms, Conditions and Accounting Policies The Authority’s accounting policies including the terms and conditions of each class of ﬁ nancial asset, ﬁ nancial liability and equity instrument, both recognised and unrecognised at balance date, are as follows: Recognised Financial Note Accounting Policies Terms and Conditions Instruments

(a) Financial Assets

Debtors are carried at their nominal Credit is allowed for a 30 day term amounts due less any provision for for most Receivables. There are doubtful debts. A doubtful debt some long-term receivables greater Receivables – Debtors 12 provision is made for any amounts than one year and effective interest which are considered unlikely to be rates range from 6.70% to 7.75% collectable. (2003 - 6.70% to 7.75%). Deposits and Bills are carried at Deposits and Bills have expired the lower of cost and net realisable as at 30 June, 2004. For the year Fixed Interest Bearing value. Interest revenue is recognised ending 30 June, 2003, the term Deposits and Bills 14 in the Statement of Financial to maturity was 21 days and an Performance when it is earned. effective interest rate of 4.72%. (b) Financial Liabilities

Creditors and Accruals are recognised for future amounts to be Settlement of creditors is normally Payables 16 paid in respect of goods and services effected within a 30 day term. received, whether or not billed to the Authority. Bank Loans are repayable in Bank Loans are carried at their instalments over the life of the principal amounts. Interest is charged loans. Interest rates range from Bank Loans 17 as an expense as it accrues. 5.875% to 10.04% (2003 – 5.875% to 15.30%) Other Loans are repayable Other Loans are carried at their in instalments over the life of principal amounts. Interest is charged the loans. Interest rates range Other Loans 17 as an expense as it accrues. from 5.50% to 11.20% (2003 – 5.00% to 15.50%) Dividend due and payable is Dividends are prescribed by the recognised when notiﬁ cation of the State Government in accordance State Government 1(k) relevant amount determined by the with the Public Authorities Dividend State Treasurer is received. (dividends) Regulations 1993.

2003/2004 Annual Report 77 (ii) Interest Rate Risk Exposures The Authority’s exposure to interest rate risks and the effective interest rates of ﬁ nancial assets and ﬁ nancial liabilities, both recognised and unrecognised at balance date, are as follows: Fixed interest maturing in:

Floating Non- 1 Year over 1 to more than interest interest Total or less 5 years 5 years rate bearing

2004 Notes $’000 $’000 $’000 $’000 $’000 $’000

Financial Assets Cash and Deposits 11 572 - - - 8 580 Receivables 12 - 888 3,425 6,643 6,758 17,714 Investments 14 ------572 888 3,425 6,643 6,766 18,294

Weighted average interest rate 3.70% 6.62% 7.02% 6.92% - -

Financial Liabilities Bank Loans 17 - 62 174 91 - 327 Payables 16 - - - - 5,972 5,972 Other Loans 17 - 271 1,635 8,995 - 10,901 - 333 1,809 9,086 5,972 17,200

Weighted average interest rate - 6.16% 5.80% 5.90% - -

Net Financial Assets (Liabilities) 572 555 1,616 (2,443) 794 1,094 Fixed interest maturing in:

Floating Non- 1 Year over 1 to more than interest interest Total or less 5 years 5 years rate bearing

2003 Notes $’000 $’000 $’000 $’000 $’000 $’000

Financial Assets Cash and Deposits 11 7,921 - - - 8 7,929 Receivables 12 - 1,031 3,649 7,038 6,601 18,319 Investments 14 - 2,000 - - - 2,000 7,921 3,031 3,649 7,038 6,609 28,248

Weighted average interest rate 4.44% 5.46% 6.97% 6.97% - -

Financial Liabilities Bank Loans 17 - 6,454 200 127 - 6,781 Payables 16 - - - - 7,080 7,080 Other Loans 17 - 336 1,770 1,131 - 3,237 - 6,790 1,970 1,258 7,080 17,098

Weighted average interest rate - 7.38% 6.57% 6.36% - -

Net Financial Assets (Liabilities) 7,921 (3,759) 1,679 5,780 (471) 11,150

78 Goulburn Valley Water (iii) Net Fair Value of Financial Assets and Liabilities The carrying amounts and net fair values of ﬁ nancial assets and ﬁ nancial liabilities, both recognised and unrecognised at balance date, are as follows: Carrying Amount Net Fair Value

2004 2003 2004 2003 $’000 $’000 $’000 $’000 (a) Financial Assets Cash and Deposits 580 7,929 580 7,929 Receivables - Debtors 17,714 18,319 17,714 18,319 Investments - 2,000 - 2,000 18,294 28,248 18,294 28,248

(b) Financial Liabilities Bank Loans 327 6,781 318 6,983 Trade and Other 5,972 7,080 5,972 7,080 Creditors Other Loans 10,901 3,237 10,634 3,331 17,200 17,098 16,924 17,394

The net fair value of cash and cash equivalents and non-interest bearing monetary fi nancial assets and fi nancial liabilities of the Authority approximates their carrying value. The carrying values of Bank Loans and Other Loans are more than their respective fair values. The fair value of these borrowings is estimated using discounted cash fl ow analysis based on current borrowing rates for similar types of borrowing arrangements. The Authority intends to repay these loans in accordance with their maturities and, accordingly, has decided not to write them down to their fair values. (iv) Credit Risk Exposures The Authority’s maximum exposure to credit risk at balance date for each class of recognised fi nancial assets is the carrying amount of those assets as disclosed in the Statement of Financial Position, net of any provision for doubtful debts.

2003/2004 Annual Report 79 Note 24 Superannuation The Authority contributes in respect of its employees to twelve superannuation schemes. Contributions to superannuation schemes expensed during the ﬁ nancial year were as follows:

Scheme Contributions Basis of Calculation Paid Outstanding 2004 2003 2004 2003 $’000 $’000 $’000 $’000 3.25% of member employee’s salary Vision Super Superannuation 497 361 218 9 plus the equivalent of the employee’s Scheme (ex-LASB) own contribution rate 2003 outstanding amount is the Vision Super Superannuation 47 - - 788 Authority’s contribution to the Scheme (ex-LASB) Unfunded Liability of the Scheme Vision Super Saver Superannuation Scheme 461 398 39 47 9% of member employee’s salary (ex-LASPLAN) State Superannuation Board Varying percentage of member 19 24 7 1 New Scheme employee’s salary First State Rollover and Varying percentage of member 4121 Superannuation Fund employee’s salary Varying percentage of member Australian Retirement Fund 3 3 - - employee’s salary The Australian Master Varying percentage of member ---1 Superannuation Fund employee’s salary Varying percentage of member Equip Super 9 10 1 1 employee’s salary Varying percentage of member C+ Bus - 2 - - employee’s salary Macquaries Varying percentage of member 13 13 1 1 Superannuation Fund employee’s salary Varying percentage of member VicSuper 15 11 1 2 employee’s salary Varying percentage of member AMP - 16 - - employee’s salary Varying percentage of member Hull Superannuation Fund 3 3 - - employee’s salary Varying percentage of member Colonial First State 3--- employee’s salary UBS Warburg Management Varying percentage of member 2--- Trust employee’s salary 1,076 842 269 851 Vision Super Superannuation Scheme (formerly Local Authorities (LASB) Superannuation Scheme) and State Superannuation Board New Scheme are Defi ned Benefi ts funds. Any unfunded liability in respect of these plans is recognised in the fi nancial statements of the Authority. The other funds are Accumulation funds. There are no balances repayable in respect of loans made to the Authority from any fund. Local Authorities (LASB) Superannuation Scheme and Local Authorities (LASPLAN) Superannuation Scheme changed their fund name to Vision Super in November 2003.

80 Goulburn Valley Water Note 25 Contingent Liabilities (i) Members of the Yorta Yorta Aboriginal Community V State of Victoria & Ors VC 6001 of 1995 Having assets located on a number of sites within the area claimed under Native Title Application VC6001 of 1995, the Authority has registered as a party to the claim and has joined with the State of Victoria and Others in defence of the application. The State of Victoria and Others are represented by the Victorian Government Solicitor. This matter was resolved during year ended 30 June, 2001, with no liabilities accruing to the Authority. This matter was then appealed, but the appeal was lost by the Yorta Yorta people in December 2002. (ii) Other At balance date, the Authority is not aware of any other material contingent liabilities not recorded or disclosed in the accounts. Note 26 Capital and Leasing Commitments 2004 2003 $’000 $’000 (i) Capital Commitments

Commitments for the acquisition of property, plant and equipment contracted for at the reporting date, but not recognised as liabilities, payable:

Within one year 13,238 11,507 13,238 11,507

(ii) Lease Commitments

Commitments in relation to operating leases contracted for at the reporting date, but not recognised as liabilities, payable:

Within one year 2 6 Later than one year but not later than ﬁ ve years - 2 28

2003/2004 Annual Report 81 Note 27 Responsible Persons of the Authority

(i) Responsible Persons The names of persons holding the position of Responsible Person of the Goulburn Valley Region Water Authority during the ﬁ nancial year were: The Hon. John Thwaites MP Minister for Water (from 5 December 2002) M.I. Darveniza Chairman J.C. Ure Deputy Chairman (retired 31 October 2003) J.A. Houghton Deputy Chairman V. Fleming Member (retired 31 October 2003) M. Hall Member A.J. Layton Member M.I. Rae Member B.E. Chamberlain Member (appointed 1 November 2003) C.L. Scott Member (appointed 1 November 2003) L.J. Gleeson Chief Executive P.A. Quinn Acting Chief Executive A.J. Gale Acting Chief Executive

(ii) Remuneration of Responsible Persons The numbers of Responsible Persons are shown below in their relevant income bands: Remuneration 2004 2003 No. No.

$0 - $9,999 4 - $10,000-$19,999 4 6 $40,000-$49,999 1 1

The total remuneration of Responsible Persons referred to in the above bands was $124,699 (2003: $128,201), which includes $19,785 (2003: $35,816) paid in Superannuation Contributions. The relevant amounts relating to Ministers are reported separately in the Financial Statements of the Department of Premier and Cabinet. The remuneration of the Chief Executive and Acting Chief Executives is reported under “Remuneration of Executives”.

82 Goulburn Valley Water (iii) Remuneration of Executives The number of executive ofﬁ cers, other than Responsible Persons included under “Remuneration of Responsible Persons” above, whose total remuneration exceeded $100,000 during the reporting period are shown below in their relevant income bands: Remuneration 2004 2003 No. No.

$140,000 - $149,999 2 1 $150,000 - $159,999 - 1 $160,000 - $169,999 1 1 $200,000 - $209,999 - 1 $210,000-$219,999 1 -

The total remuneration including superannuation of executives whose remuneration was greater than $100,000 referred to in the above bands was $680,557 (2003: $676,615)

(iv) Other Transactions of Responsible Persons and Their Related Entities Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

Land Development Companies in which Responsible Persons hold an interest, contract to Goulburn Valley Region Water Authority for the provision of land development works from time to time. The companies involved and the amount of works during the year are listed below: Member Company 2004 2003 Involved

Kavant Nominees Pty. Ltd. M.I. Darveniza 1,526,138 721,189 Tassicker Park Pty. Ltd. M. Hall - 126,056

There have been no related party transactions other than on normal commercial terms and conditions with the Minister during the reporting period.

Note 28 Events Occurring After Balance Date The Responsible Persons of the Authority are unaware of any events that have occurred after balance date which materially affect the ﬁ nancial position disclosed at 30 June, 2004.

Note 29 Financing Facilities The Authority has an agreement with Treasury Corporation of Victoria to provide a $18.1 million credit standby facility.

2003/2004 Annual Report 83 84 Goulburn Valley Water 2003/2004 Annual Report 85 DISCLOSURE INDEX Disclosure Index to Disclosure Requirements 2003/2004. The Annual Report of the entity is prepared in accordance with the Financial Management Act 1994 and directions of the Minister for Finance. This index has been prepared to facilitate identiﬁ cation of compliance with statutory disclosure requirements. Clause Disclosure Page

Report of Operations

Charter & Purpose FRD 22 Manner of establishment and relevant Minister 6 FRD 22 Objectives, functions, powers and duties 4-6 FRD 22 Nature and range of services provided 6

Management Structure FRD 22 Organisation Structure 7

Financial & Other Information FRD 22 Statement of workforce data and merit and equity 25 FRD 22 Summary of fi nancial results with previous four-year comparatives 42 FRD 22 Summary of signifi cant changes in fi nancial position during the year 42 Operational and budgetary objectives for the year and performance against FRD 22 46-58 those objectives FRD 22 Major changes or factors affecting the achievement of objectives 2-3 FRD 22 Events subsequent to balance date 83 FRD 22 Application and operation of Freedom of Information Act 1982 29 FRD 22 Compliance with building and maintenance provisions of Building Act 1993 42 FRD 22 Statement on National Competition Policy 45 FRD 22 Application and operation of the Whistleblowers Protection Act 2001 29 FRD 22 Details of Consultancies >$100,000 45 FRD 22 Details of Consultancies <$100,000 42 FRD 22 Statement of availability of other information 29 FRD 22 Occupation health and safety 27 FRD 15 Executive offi cer disclosures 25 FRD 10 Disclosure index 86 FRD 25 Victorian Industry Participation Policy disclosures 42

Financial Statements

Financial statements required under Part 7 of the FMA SD 4.2 (c) Compliance with Australian accounting standards and other authoritative 64 SD 4.2 (c) Compliance with Ministerial Directions 64 SD 4.2 (c) Rounding Amounts 67 SD 4.2 (c) Accountable offi cer’s declaration 84 SD 4.2 (b) Statement of fi nancial performance 61 SD 4.2 (b) Statement of fi nancial position 62 SD 4.2 (b) Statement of cash fl ows during the year 63

Other disclosures in notes to the ﬁ nancial statements FRD 11 Disclosure of ex-gratia payments N/A FRD 21 Responsible person and executive ofﬁ cer disclosures 82 FRD 23 Superannuation liabilities and disclosure 80

86 Goulburn Valley Water Regional Administration Centre 104-110 Fryers Street, Shepparton, 3630 PO Box 185, Shepparton, 3632 Telephone: (03) 5832 0400 Facsimile: (03) 5831 1467 Email: [email protected] Website: www.gvwater.vic.gov.au

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Impress is manufactured by Pulps used in the manufacture of Australian Paper at Burnie and Impress are bleached using ECF Wesley Valley in Tasmania (Elemental Chlorine Free)