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ANNUAL REPORT 2000/1 Internet Copy

ANNUAL REPOR T 2000/1

HIGHLIGHTS OF THE YEAR MISSION

– Lake Glenmaggie 75th Birthday celebrations in May 2001 The Mission of SRW is: – Lerderderg weir withstands flash flood in October 2000 To operate, manage and develop our core businesses of; – Western storage levels improve during 2000/1, Western Irrigation business supply secured for 2001/2 – irrigation supply, – Macalister Irrigation District suffers late season water supply – water storage management, and shortage – licensing of rural water use in – First major valve refurbishment at Glenmaggie completed southern Victoria, professionally, economically and sustainably. successfully in August 2000 – New water quality monitoring station commissioned in Werribee Irrigation District – Cowwarr weir also hit by flash flood in April 2001 – Twelve Streamflow Management Plans in progress or completed during 2000/1 – Five draft Groundwater Management Plans completed during the year, five more under way

A commemorative cairn has been constructed at the office of SRW to mark the 75th anniversary both of Lake and of irrigation of the Macalister Irrigation District from the lake. The cairn, which is seen here together with one of the signs erected throughout the district to mark the anniversaries, will display one of the two commemorative plaques unveiled by the Minister.

Southern Rural Water - Annual Report 2000 - 2001 Internet Copy

CONTENTS

Southern Rural Water ...... 2 ...... What We Do 10 Minister for Environment and Authority...... Board 10 Conservation, the Hon Sherryl Garbutt MP, visited Maffra on 7 Corporate...... 12Governance May 2001 to address the dinner to Statement celebrate the 75th anniversary of the construction of Lake Chairman’s...... Report 30 18 ...... 6 Glenmaggie dam, and to unveil commemorative plaques to be Chief Executive’s Report...... 8 displayed at the Maffra office and at the dam. Operations...... Report 20 Overview Eastern Irrigation Western...... Irrigation 28 ...... 14 Licensing Headworks VISION VALUES Capital...... Works 35 Resource...... Management...... 48 26 The Vision of SRW is for our business to be Our values are the principles which guide how Customer & Community regarded:- we work and operate our business. They Consultation require that we achieve; – By our customers, as a satisfactory and Statutory Report preferred service provider; – Partnership with our customers, to Tables ...... 32 empower them to influence our business – By Government (our shareholder), as fulfilling Financial Report direction and assist us in meeting their its expectations and adding value to its Compliance Index priorities; and needs;

– By our peers, other stakeholders and the – Transparent and sustainable prices, with community, as a professional, competent, no cross-subsidies between our respected and progressive business. businesses; – Effective measurement and continuous OUR BUSINESS DRIVERS improvement in performance; To realise our Vision, we must:- – Open and accountable decision making; – Improve customer service; – Ethical and accountable corporate 88 Johnson Street – Charge the lowest viable prices; governance; PO Box 153 Maffra Victoria 3860 – Safeguard our business; ...... – Environmental, social 2 and economic

– Build our capability; and responsibility; Telephone: (03) 5139 3100 Facsimile: (03) 5139 3150 – Pursue our shareholder’s priorities. – Strong partnerships with others Email: [email protected] – The recruitment and development of a Website: www.srw.com.au professional and motivated workforce; ...... and 24 4

– The best and most appropriate use of the Editor: Geoff Barry - ...... water we manage. 4 Director Business Services

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1 SOUTHERN Internet Copy RURAL WATER

(SRW) is responsible for rural water supply and the operation of principal rural headworks storage systems, across the entire southern part of Victoria from the GreatWHA DivideT WE DO to the coast.

Our customersIRRIGA areTION predominantlyWe theoperate the farmers,three gravity irrigation districts graziers and ingrowers the southern half of Victoriaof - the Macalister southern Victoria,(near Maffra in ), but and weat Bacchus also Marsh harvest waterand in Werribee. bulk Together these on deliver behalf an average of non-metropolitanof 177,000 ML each yearurban for irrigation and other water authoritiespurposes. and electricity generators, Our irrigation businesses provide water for who hold Bulk Entitlements or pasture and crop irrigation to almost 1,400 other agreements to take and customers, and stock and domestic water to 1,600 use water from our storages. properties, with an average annual turnover of We service around 10,000 A highlight of the year was the series of conducted bus tours into the Lerderderg weir on 25 March 2001. Business customers and$7.69 in million (actual2000/1 revenue for 2000/1 was $7.60 Manager Headworks Pat Caruso was one of the tour guides and is seen addressing a group of visitors at the weir. generated $16.6million). million in operating turnover from all sources. We expendLICENSING around $3 million in capitalWe manage and controlworks the taking each and use of year. water for irrigation and other purposes from rivers and groundwater aquifers in southern Victoria. Our principal Office is in Maffra, in centralWe have 4,100 customers Gippsland. licensed to take water Maffra is thefrom hub rivers andof streams, the and a further 3,000 Macalister Irrigationcustomers licensed to useDistrict, groundwater bores. which covers Average55,000 annual turnover hectares for the Licensing and is our largest single business excluding Government project funding business unit. We also have a is $2.44 million (actual revenue in 2000/1 was $2.50 district office at Werribee. In million). order to ensure that prompt and efficientHEADWORKS services are available to all our customers, We harvest and store water on behalf of bulk however remote, SRW has a entitlement holders - our own irrigation network of field staff located customers, urban water authorities and Latrobe strategically across our region. Valley power generators - from four major We are the second largest systems and seven large at Pykes Creek, rural water authority in Victoria Merrimu, Gisborne, Melton, Blue Rock, Yallourn and our staff of around 100 and Glenmaggie. manages the State’s largest groundwater operationOur Headworks business delivers and around its300,000 second largestML in bulknon- supplies each year. Average business metropolitan turnoverheadworks net of recoverable works is $4.42 million. business. Actual revenue for 2000/1, including recoverable works of $273,000, was $4.82 million.

2 Southern Rural Water - Annual Report 2000 - 2001 Internet Copy

SRW covers the southern half of Victoria. This map of our region highlights the major rivers flowing south, our three irrigation districts and our office locations.

3 AUTHORITY BOARD Internet Copy

SRW continued to be controlled in 2000/1 by a Board of nine members, appointed under PartWater Act 6 of the 1989, for a three year term expiring on 30 June 2001. During June 2001 the Minister for Conservation and Environment announced the appointment of a new Board of eight members to take effect from 1 July 2001. The Board for 2000/1The SRW Board pictured prior to its final meeting on 5 June 2001 (L to R). Standing: Mr Pat Foster, Mr David Koch, Mr John Tilleard, Mr John Nicol and Mr Geoff Crick. comprised the followingSeated: Mrs Jennifer McMillan, Mr Allan Pappin (Chairman), Dr Greg Walsh (Deputy Chairman) and Mrs members: Joan Liley. Allan Pappin CVO AM, CORPORATE GOVERNANCE Chairman,is a farmer BOARD from COMMITTEES Calulu, near TheBairnsdale SRW Board has established fourin Committees EastSTATEMENT Gippsland. to assist it to conduct its business effectively The SRW Board has established general princi- Dr Greg Walsh,and efficiently. Deputy The four committees and their Chairman,is a business ples under which it and management operate, to members to 30 June 2001 were: consultant and company ensure that the Authority fulfils its responsibilities director from Warrnambool in AUDI T COMMI TTEE: in the best interest of Government, customers and south west Victoria. Mr Fost er ( Chai r man) , Mrs Liley, Mr Crick. the community. These principles are as follows: Geoffis Crick, a farmer from Blowhard, nearBUSINESS Ballarat PLANNING COMMITTEE: in central VictoriaDr Walsh (Chairman), and Mrs McMillan,an Mr Tilleard. ROLE OF THE BOARD executive member of the – To be accountable to the Minister for the Victorian FarmersREMUNERATION Federation. AND CORPORATE achievement of the results and targets GOVERNANCE POLICY COMMITTEE: Patrickis Foster,a public required by Government accountant withMr Pappin (Chairman),practices Dr Walsh, Mr Foster. in – To ensure that customers and other Werribee and TECHNICALColac. COMMITTEE: stakeholders are adequately consulted by management Davidis Koch, a farmer Mr Tilleard from(Chairman), Mr Koch, Mr Nicol. Nareen, north of Coleraine in – To plan the future of the Authority western Victoria, and a Board – To set, review and amend policies to direct member of Western District the Authority Health Services. – To appoint the Chief Executive Joanis Liley, both a beef/ – To assess the performance of the Authority sheep farmer and a secondary and the Chief Executive economics teacher, from Walkerville, near Wilson’s – To avoid unacceptable actions and situations. Promontory in south Gippsland. Jenniferis McMillan,a dairy MANAGEMENT OF THE AUTHORITY farmer from Denison in the – The Chief Executive is accountable to the Macalister Irrigation District inBoard, not the individual members, and is , and was the responsible to the Board for the operation of recipient of the year 2000 Jack the Authority Green Churchill Fellowship. – The Chief Executive: John Nicolis an OAM, – manages the Authority engineering consultant from – is the connection between the Board and Werribee. the Authority – makes recommendations to the Board John isTilleard, an engineering consultant from Sale, in central concerning the Authority and Gippsland. – implements the policies of the Board. – The Board instructs the Chief Executive through written policies – The Board monitors and assesses the performance of the Authority and the Chief Executive. 4 Internet Copy

MEMBERSHIP OF THE BOARD – Members may access independent – Regular formal and informal – Nine (9) non-executive members until 30 professional advice subject to approval by meetings with customer, June 2001 the Chairman. community and government groups and individuals. – From 1 July 2001, seven (7) non-executive members and the Chief Executive RISK MANAGEMENT – Risk Management is recognised as a key ETHICS – All members are appointed for a three year Board responsibility – The Board is committed to period – Formal risk assessment processes and risk compliance with the spirit and the – Members are appointed by the Minister in avoidance and management plans are in letter of legislation accordance with provisions of the Water Act place – The safety and health of the 1989 – Regular and comprehensive reviews are Authority staff is a key focus – The Chairman is appointed by the Minister undertaken to ensure that the business risks – All Board and Authority – The Deputy Chairman is appointed by the of the Authority are being properly and responsibilities and functions are Board effectively managed undertaken in accordance with – Board remuneration is set by the Minister. – Contingency and emergency management the following governance values: plans are in place for significant risks. – the expectations of its BOARD COMMITTEES shareholder – The following Committees assist the Board in DUE DILIGENCE – the skills and experience of its the effective execution of its governance – Regular management reports to the Board members responsibilities: – Regular formal reviews of performance – the knowledge and expertise of its – Audit Committee undertaken by senior management and customers – Business Planning Committee Board sub-committees – Remuneration and Corporate Governance – enhancing customer value Policy Committee – Major reviews, audits and assessments – strategic planning for the future undertaken as required according to – Technical Committee. – Authority rather than individual or identified priorities or needs – Committees have formal Terms of Reference, factional priorities – Clear review and audit responsibilities report to the Board and liaise closely with the – outward vision rather than internal established for Board sub-committees Chief Executive and senior management to preoccupation ensure that their activities support and – Direct sub-committee access to internal and – encouragement of diversity in enhance the governance role of the Board. external audit. viewpoints STATUS AND INDEPENDENCE ASSESSMENT AND DEVELOPMENT – strategic leadership more than – Members must disclose any conflict of – A regular, annual, formal program of Board administrative detail pecuniary or other interest self assessment – clear distinction of Board and – Members are appointed to bring specific – A planned annual program of formal Chief Executive roles skills and experience to the Board, not to education or training in topics identified – collective rather than individual represent any constituency during the assessment process decisions – A planned and ongoing program of visits to – future rather than past or present key locations in the Authority’s region and – proactivity rather than reactivity.

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Allan J Pappin CVO AM, Chairman SRW.

CHAIRMAN’S REPORT In my final Report as Chairman of SRW I would restrictions. Initially some 130 farmers were like to focus on three things: subject to withdrawal of supply due to the 150% It will not be sufficient for us to restrictions, with the majority of customers being merely achieve• the uncertaintyappropriate inherent in our industry; affected by the eventual 100% cap. financial outcomes.• the challenges confronting We it; mustand demonstrate clearly that our Change and challenge are ever-present realities, • the colleagues with whom I have been even in an efficient and successful business such business decisions and privileged to work. outcomes also benefit society as ours, and SRW, together with our peer RWAs Uncertainty was demonstrated during 2000/1 by and our metropolitan colleagues, faces and the environment. the varied fortunes of our irrigation district formidable challenges in 2001/2 and beyond. We customers. In Bacchus Marsh and Werribee must not only continue to provide the excellent there were good supplies of water in storage at customer service and maintain the clear the start of the year and customers had no customer focus that we have developed over the difficulty accessing required volumes throughout last decade, but must also respond to changing the year. Moderate weather conditions meant and emerging Government and community that sales revenues were down in both districts expectations, particularly in respect of the best as the water was simply not needed. use of the valuable resource we manage, on behalf of all beneficiaries - including the By contrast the Macalister Irrigation District environment. effectively ran out of water in April, despite beginning the irrigation season with ample In this context the expectations of triple bottom volume available. Lake Glenmaggie was full three line accounting will become more and more months into the season and stayed that way up important in measuring our operational success until 27 November. Indeed, off-quota water was in coming years. It will not be sufficient for us to available to customers throughout the period from merely achieve appropriate financial outcomes. 13 September to 26 November. We must demonstrate clearly that our business decisions and outcomes also benefit society and From then onwards, however, prolonged dry and the environment. hot weather in combination with heavy usage drained Glenmaggie at an alarming rate during This will be particularly the case in respect of our December and January. Rain late in January was Licensing business, as we continue to address only a brief respite before the cycle of high usage complex problems associated with the and low or no inflows recommenced in February. management of Groundwater and Surface Water. The key to success will lie in our ability to engage As a consequence SRW was forced to impose the various groups and individuals on whom these severe restrictions on irrigators during April. An resources impact - our customers, other initial cap at water right plus 50% sales quickly stakeholders, Government and, of course the dropped to water right only. This meant that there wider community. were few opportunities for farmers to trade water or to make alternative plans to accommodate the

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That engagement will be a challenge for our Mrs Joan Liley and Mr David Koch also retire at last ten years. Those achievements processes of communication, especially in the 30 June and to them too I offer my thanks for their could not have taken place without the south west of the State, where the majority of our enthusiasm, involvement and contribution during dedicated support and involvement of Licensing customers are located. We must ensure their appointments. It is a daunting task to join a past and current Board members, that we can communicate ideas, plans and Board such as this “ mid-stream”. The learning management and staff, our customers, information clearly, widely, understandably and curve is steep and the challenges are great. Joan Government and the communities accurately. Only by doing so will we adequately and David have mastered those challenges and which we serve. engage and involve those affected by made enduring contributions to the governance Thank you all. developments in these areas. That engagement of SRW. must take place; without it the achievement of Chief Executive Martin Kent, his management essential and desirable triple bottom line reforms team and all the staff of SRW have, for yet another and outcomes will be impossible. year, worked professionally and productively to In relation to the governance and management meet the needs of our customers, our shareholder of SRW, the term of office of the current SRW and our stakeholders. In amongst the challenges Board expires on 30 June 2001. The Minister for of a rapidly emptying Glenmaggie, the establish- Environment and Conservation has announced ment and implementation of Groundwater and the membership of the new Board, which will be Surface Water Management Plans, flash floods substantially changed both in structure and in both our eastern and western districts and the membership. The Minister has invited me to usual round of operational surprises, the staff remain as Chairman of the new Board until 31 made time to organise the celebration of the 75th December 2001. anniversary of Lake Glenmaggie Dam and to

In all, three of the current Board members have conduct open days at Glenmaggie and Lerderderg been re-appointed and my congratulations go to weir. Additionally, the usual diverse range of Mrs Jennifer Macmillan and Mr Geoff Crick. To capital works projects was commenced and/or my retiring colleagues I offer my heartfelt thanks completed and we continued to lead the State in and appreciation for your efforts on behalf of the fields of Groundwater and Streamflow SRW, our customers and our communities Management planning. The efforts of the staff throughout your tenure. In particular I would like deserve our respect and admiration. to acknowledge Dr Greg Walsh, Mr John Tilleard, Finally, as a farmer utilising both Groundwater and Mr Pat Foster and Mr John Nicol who, as the Mitchell River to irrigate our property, I expect foundation members of the SRW Board in 1995, to maintain a long, close and fruitful customer have shared with me the experience - sometimes relationship with SRW. As Chairman - of SRW, frustrating, sometimes exhilarating, but always Gippsland Rural Water and the Gippsland rewarding - of building the Authority into the Regional Board of Management of the Rural progressive, respected and professional Water Corporation - I look back with great organisation it is today. satisfaction and pride on the achievements of the

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Dr Martin Kent, Chief Executive.

CHIEF EXECUTIVE’S As the SRW Board’s second three-year term I believe that this will require SRW to focus in REPORT comes to a close, and at the end of a decade of three areas: fundamental change in the rural water sector – maintaining its financial viability - either within I am pleased that SRW has arising from the publication and adoption of the the existing financial framework or in accor- achieved much, but recognise McDonald Report, now is a good time to take dance with any future expectations which might that there is still much to do. stock of our achievements and to give some succeed this; Our three-way challenge is to thought to the future direction of the Authority and maintain our past – ensuring and demonstrating that it performs the rural water sector in Victoria. achievements, to be well against Government and community environmentallyAt 30 June and 2001, SRW socially stands poised for a post- environmental and social requirements and responsible; McDonaldand future.to Wework have achieved in the key measures; and partnership forMcDonald sustainable goals - a viable, regionally-based – collaborating actively and successfully with resource management,authority; core businesses which are self funded regional communities and regional stakeholders (especially those directly regional communitiesand financially sustainable; and and close environments. charged with other pastoral responsibilities collaboration and consultation with our with respect to catchments and water) to customers. Importantly, we have strengthened ensure the sustainability of the resource, the our understanding of our four businesses - environment it nurtures and the communities Eastern Irrigation, Headworks, Licensing and which depend upon it. Western Irrigation - and of the social, More specifically, this will require our involve- environmental and economic priorities and ment in: policies of Government. – improvement in both our and our customers’ This will provide a springboard for SRW in the operational efficiency to create improved coming decade, when we foresee the key environmental outcomes both on- and off-farm; challenges revolving around our core resource - the water that we harvest and supply, or whose extraction from rivers or bores we license - and the breadth of benefit it can bring to rural communities in southern Victoria. The sustainable management of that water as both a crucial business input and an environmental and com- munity resource can be expected to exercise all agencies with an interest in it.

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– collaboration with other agencies and stake- SRW is already deeply committed to and involved I am pleased that SRW has achieved holders, to achieve improved environmental in many of these. We are active participants in much, but recognise that there is still outcomes whilst maintaining and sustaining the remedial and preventative activities such as the much to do. Our three-way challenge existing economic and social fabric of our region; Gippsland Lakes Rescue Package, and nutrient is to maintain our past achievements, and salinity management programs. We have key – creating beneficial long term environmental to be environmentally and socially management responsibilities as storage outcomes for all Victorian rivers and responsible; and to work in operators and resource managers to monitor and groundwater aquifers through community partnership for sustainable resource maintain environmental flows in waterways driven and supported local management plans; management, regional communities across region. We are leaders in the development – further reform of the water trading system to and environments. of Streamflow and Groundwater Management explicitly address environmental sustainability Plans aimed at securing the long term The decade post-McDonald has been whilst facilitating sustainable regional sustainability of our rivers and aquifers. an exciting journey. It is clear that the development; Increasingly, our future challenges will involve next decade looks to be equally – improved customer service and risk the twin, but complementary, targets of water challenging, rewarding and exciting. management to support best practice irrigation, efficiency and good environmental management. maintain prices at viable levels and achieve This is already the purpose of elements of the desirable environmental outcomes; and Gippsland Lakes Rescue Package, which aims to – continuing collaboration with Government and utilise greater on-farm water efficiency to reduce all stakeholders in rural water, aimed at building, nutrient run-off from the Macalister Irrigation sustaining and enhancing mutually beneficial District. water resource management frameworks and regimes which deliver balanced and beneficial outcomes to all users. Lake Glenmaggie at the end of the 2000/1 irrigation season.

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OVERVIEW

The year in our irrigation districts was average expectations, with total sales down by characterised by polarised fortunes for $238,000. customers. The Western Irrigation business Our Headworks business was also impacted for experienced good rains and gradual improvement the second year by low offtakes from Rosslynne in its water supply and storage situation during by Western Water. This caused a drop the year, with demand for irrigation water in revenue for that storage system of $142,000. generally below expectations as a consequence. This was offset, however, by a reduction in the The Macalister Irrigation District, however, found OPERATIOPERATI REPORT REPORT ONS ONS OPERATI REPORT ONS

OPERATIOPERATI REPORT REPORT ONS ONS Authority’s dividend payment to Government, itself desperately short of water late in the which dropped from $418,000 to $380,000 for irrigation season, following a very dry summer 2000/1 only. and autumn which resulted in the level of Lake Glenmaggie falling dramatically after Christmas Activity in the Licensing business fluctuated both 2000. above and below expectations. Revenues for Pipelining of the Nuntin Channel in the Groundwater and Surface Water diversion were Macalister Irrigation District will create These contrasting outcomes resulted in sales significant resource management benefits, in above forecasts by a total of $134,000 and the form of water use efficiency and water revenue for the Irrigation businesses being down savings, by eliminating leaks and other in- operating results improved by $42,000. Demand system losses from this section of the for the third year running. infrastructure. The first stage has been for Bore Construction Licences, however, was completed during the 2001 winter shutdown All three irrigation districts fell short of long term period. Here, lengths of pipe have been joined down on previous years, although this had no and then mounted on trolleys to facilitate impact on the overall result for the Licensing installation. business.

The renewals-based operating result for the Authority (before dividend payments) was a surplus of $2.854 million for the year, generated predominantly by Headworks operations and Rate of Return charges, and by the receipt of Government funds to support the substantial metering program being undertaken in support of the Groundwater and Streamflow Management Planning activities currently being undertaken by SRW.

When reviewing the business results quoted in this Operations Report and if comparing them with the financial statements appearing later in the report, it is important to note the effect of renewals on our accounts.

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SRW uses a 100 year Renewals Annuity During 2000/1 SRW has also calculation to determine the annual provision conducted a major review of its necessary for replacement of its infrastructure Renewals Annuity program and, as assets (dams, irrigation channels, pipelines etc.). a consequence, will be moving to an

It uses traditional depreciation calculations only annuity period of 40 years for its for its non-infrastructure assets (buildings, irrigation distribution infrastructure computers, motor vehicles etc.). from 2001/2. This has no effect on the financial results for 2000/1. All price setting and budgeting is based on the SRW was the recipient of a grant from the Office of Renewals Annuity, which has been accepted by Public Employment under the “ Managing Fairly” customers and Government as a fair and category of the OPE Annual Awards program, for our EEO program “ Building a ‘Fair Go’ Culture at Work”. equitable mechanism for allocating the cost of our Pictured receiving the grant at the Awards long lived infrastructure assets in use. Presentation Conference are (L to R); Commissioner for Public Employment Mr Peter Salway, SRW EEO team members Vicki Lanigan, Noula Antonopoulos and Tim Renewals Annuities, however, are not an Purton, and SRW Manager Human Resources, Jim acceptable basis for calculating this cost for Watt. purposes of preparing published financial accounts.

In our financial statements appearing later in this Annual Report, therefore, standard depreciation calculations have been substituted. The table at the end of this section illustrates the financial impact of the substitution for 2000/1 and preceding years.

RECONCILIATION OF RENEWALS AND DEPRECIATION BASED RESULTS

2000/1 1999/0 1998/9 1997/8 1996/7 $’000 $’000 $’000 $’000 $’000 Net Surplus (Deficit) for year including Depreciation expense 528 (7,667) 615 1,393 2,745 Add back Depreciation Expense 5,283 4,228 4,084 4,007 3,781 5,811 (3,439) 4,699 5,400 6,526

Deduct Renewals Annuity expense 2,957 3,074 2,811 2,870 2,705 Net Surplus (Deficit) for year including Renewals Annuity expense 2,854 (6,513) 1,888 2,530 3,821

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A panoramic view of a typical channel section and collection of offtake and regulating structures in the Macalister Irrigation District.

EASTERN IRRIGATION

MACALISTER OPERATIONAL PERFORMANCE This restriction was imposed on 3 April but, less IRRIGATION DISTRICT A year of contrasting fortunes began quietly with than a week later, a further restriction to only very low early season demand (in contrast to the water right was formally announced by the MCCC FINANCIAL PERFORMANCE previous year, when 4,660 ML were delivered prior Chairman on 9 April, with effect from 11 April, as In the latter part of the irrigation to the official commencement of the irrigation Glenmaggie continued to fall alarmingly and with season, commencing in early March period). no prospect of meaningful inflows. On that date 2001, it became necessary to place At this stage inflows to Lake Glenmaggie were it held only 18,000 ML. stringent restrictions on customers to excellent and, in mid-September, the Lake was full By 17 April the lake had fallen to less than 12,000 protect remaining unused water right. and the dam began spilling. As a consequence, and ML and was rapidly approaching empty (up to Initially an overall limit of water right in accordance with normal practice, off-quota 9,000 ML cannot be released without pumping, plus 50% was set but, in April, it was supply was offered to customers. Off quota water as it is below the level of the offtake pipes). Three necessary to cut this back further to supply is paid for at the normal rate but is not days later, however, rains finally fell, eventually water right only. This caused an deducted from the customer’s water right. resulting in a flash flood event at Cowwarr on the inevitable drop in water sales revenue, 22nd, when flow rates rose from 3,500 ML/day at although the final impact was less This situation lasted until late November. Only three days later the onset of dry conditions had 8 am to 21,650 ML/day one hour later and peaked than expected. Total sales were 34,232 at 11 am at 24,850 ML/day. ML, the highest in the last three years, resulted in irrigation demand across the district although still 14.4% down on the long reaching full capacity. It remained that way All restrictions were lifted on 23 April and the term average expectation of 40,000 throughout December and January. Through season closed on 15 May with no further incident ML. December Glenmaggie dropped from full to only and no demand for post-season supply. By 30 70%. Deliveries for the month totalled 38,620 ML June Glenmaggie had recovered from its This shortfall caused a drop in sales - 55% higher than the 12 year average for this seasonal low of 10,420 ML (on 22 April) to 32,118 revenue of $178,000. Total revenues of month. It was necessary also to begin calling up ML - still only 16.9% full. $5.569 million were within $7,000 of supply from our share of the budget, but were boosted by high This extraordinary season posed a number of storage to supplement deliveries. interest earnings and by the receipt of questions regarding restriction and allocation $100,000 from the State Government to Heavy rains in the last week of January 2001 gave policies and practices. These will be addressed fund a channel leak sealing project on some hope that the demand pressures would as planning priorities during 2001/2. ease. By early March, however, the Macalister the Main Southern concrete flume, as DELIVERY PERFORMANCE Customer Consultative Committee in part of the Gippsland Lakes Rescue Total deliveries for the season of 151,539 ML were collaboration with management determined that Package funding. marginally down on the previous year, although some form of restriction could become necessary. Lower Operations costs during the sales deliveries - and, as a consequence, sales Letters were sent out to high use customers year were more than offset by revenue - were higher. The principal difference during March warning of the possibility that increases in Maintenance and other between the two years resulted from the extent supply could be limited to water right plus sales expenditure. A further $50,000 of non- to which water right remained unused. In 1999/ of 50%. capital investment activity was also 2000 over 99% was utilised but last year this fell charged against revenue. As a result, to just under 95%. total expenditure was $511,000 over The level of in-system losses against storage budget (including the non-capital offtakes (23.3% as against only 20.8% the previous investment and expenditure of the year) has raised significant concerns about the Lakes Rescue funds) and the final accuracy of measurement of offtakes at Lake deficit of $198,000 was $518,000 worse Glenmaggie, following recent valve replacement than projected. works. There is a concern that actual volumes released are lower than the measured totals and this possibility is being examined by technical Maffra weir is a vital experts. It had been expected that in-system regulating structure which delivery performance should have been at least controls the offtake of water from the lower Macalister maintained in 2000/1, as the district was operated River into the Main Eastern to achieve maximum efficiency in this respect. Channel of the MID.

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Description 2000/1 1999/0 1998/9 We have continued to address the ever growing A very successful ML ML...... ML 224,308and 223,368117,30734,232 difficult 232,995 122,489 31,629 problem 112,797 32,353 of European Carpmaintenance Erosion season was Water brought into in our earthen channels. Repairs were made prolonged for some four the system during the year to sections where damage was months by early and late rains. Water rights most prolific. The exorbitant cost of such works, This enabled early completion and entitlements however, has prompted a study into eliminating of the 2000/1 program and delivered further problems by preventing the fishes’ initial enabled extra works to be Seasonal sales entry into the system. Preventative barriers are brought forward. Some of the delivered in the planning stages and are expected to be more notable achievements % % % introduced in the near future. included: Water delivered to As part of our Environmental and Community customers ...... 68.6 69.6 65.4 ···A comprehensive Awareness program the following projects were technical review of the Water lost within the undertaken throughout the year, supporting delivery system ...... 23.3 20.8 25.3 MID maintenance regime. Landcare Groups, Quality Assurance schemes Water passed as and pollution control: ···Completion of the Main outfalls from system .... 8.1 9.6 9.3 – Developing parts of the Central Gippsland No. Southern Flume joint MAINTENANCE PERFORMANCE 3 Drain reserve for the planting of many rehabilitation project. Recurrent maintenance in the MID is now focused thousands of non-invasive native trees, in ···Completion of phase 1 of a Kilmany Landcare Group increasingly on proactive rather than reactive support of the and road crossings upgrade activity, and new initiatives were introduced or involving extensive earth moving, fencing and and protection program in further developed during 2000/1 to ensure that we drainage works. conjunction with the are able to maintain this direction. – Co-operation and support to milk companies Wellington Shire. The Asset Inspectionbegan in winter inProgram their quality assurance schemes in relation ···Extensive erosion control 2000 and is estimated to take another two years. to SRW herbicide usage in both channels and It comprises the physical assessment by trained – Monitoring drainage water to detect drains and staff of every asset that forms part of the irrigation undesirable levels of chemical residues as system. Its purpose is to determine the quality and part of our aquatic weed control program ···Significant progress in the remaining life of the system infrastructure, to regulator automation – Provision of labour and mechanical plant to regulator automation determine a current condition rating for all assist Target Pasture Development 10 Group program, with nine major component elements and to identify preventative field studies sites prepared for maintenance. This work will also enable the conversion and eleven – Participation in nutrient reduction and water further refinement of future renewals annuity critical locations fitted with reuse programs requirements for the district. overflow escapes. The Critical has Assets been developed Program– Investigation into submerged during 2000/1 to begin in 2001/2, and will identify aquatic weed control and correct components of the system which may alternatives and be vulnerable to failure and difficult to rectify – Staff training in the safe storage, quickly. It aims to further reduce the risk of a major transport and use of interruption to supply. Major supply channels environmentally hazardous located in confined and logistically prohibitive substances. terrain are the first targets. New or improved accesses will be created to allow regular surveillance, remedial works and practical contingency procedures. An initial annual budget of $200,000 for the next five years has been allocated to this initiative. MID Operations Supervisor Ken Bates and Planner David Rodaughan share a lighter moment amidst the bustle of another demanding irrigation season.

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Demand for water through the summer months was the highest for three years. Heavy rains in autumn, however, resulted in greatly reduced WESTERN IRRIGATION demand for the remainder of the season. BACCHUS MARSH The performance target for 95% of customers to IRRIGATION DISTRICT receive water on or before the requested day was exceeded, with 96.2% of orders actually delivered FINANCIAL PERFORMANCE on time. A 7% revenue shortfall, caused mainly by sales Average delivery volumes increased on previous $57,000 below budget, resulted in the BMID years, with 2.3 Ml delivered per order compared posting a $50,000 operating shortfall on revenue to the long term norm of 1.9 Ml. turnover of $541,000, against a budgeted The early announcement of a high allocation, and expectation of a $3,000 surplus. Expenditure was contained within $13,000 of estimates, mainly due the low late season demand for water, resulted in a decrease in water trading during 2000/1. Only to economies in Operations costs. 18 temporary transfers were processed within the Prospects for the future are brighter for the BMID totalling 1,049 ML, compared to 58 transfers district however, following the transfer of a key in 1999/2000. water entitlement which has been unused for more than three years to a new owner at the end DELIVERY PERFORMANCE of the year. Whilst this will not increase water Total water delivered for 2000/1 was 3,450 Ml, 18% right revenue, it raises the possibility of additional higher than the previous year’s 2,919 ML, but still sales. 19% down on the 10-year average of 4,260 Ml. OPERATIONAL PERFORMANCE The improvement derived from increases in sales At the start of the year the storages in the and deliveries outside the district. Sales of 600 Werribee system held 33% of capacity. Good ML were more than double the 1999/2000 total (although again significantly down on the long winter and spring rains quickly filled them to 80% and, by the end of October, both Melton and Pykes term average of 980 Ml on which budgets and Creek were spilling. This allowed an prices are set). Outside district deliveries of 342 Ml represented a 50% rise on the previous year. initial allocation of water right plus 50% sales to be made to BMID irrigators. Delivery efficiency within the system improved markedly in 2000/1 to 77%. This was achieved Demand for water through the summer months through significant reductions in outfall wastage was the highest for three years. Heavy rains in autumn, however, resulted in greatly reduced and improved efficiency within the system. Although total outfalls for the season were 377 demand for the remainder of the season. ML, this represents a better than 50% Economical and effective spray irrigation of improvement on two years ago. vegetables in the WID.

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Following high rainfall and flood damage in November 2000, urgent repairs were necessary at Werribee weir. Here replacement rock gabions are being placed on the northern bank of the river immediately below the weir wall. Description 2000/1 1999/0 1998/9 ML ML...... ML...... 4,481 4,0342,508 3,908 2,469 2,384 Water brought into the...... system 600 232 108 Water rights and entitlements delivered Seasonal sales delivered % % % Water delivered to customers ...... 77.0 72.4 68.8 Water lost within the delivery system ...... 14.5 15.5 13.7 Water passed as outfalls from system .... 8.4 12.1 17.5

SYSTEM MAINTENANCE: The main areas of works for 2000/1 included; – flow meter outlet repairs; – channel patching and sealing; – structure maintenance; and – channel desilting. As in previous years it was necessary to carry been used to great effect over the past three the year. This entailed repairing holes out repair maintenance on valve and flow meter years to seal leaks. Spot sealing was also in security fencing, repair or addition outlets. A total of 19 meter outlets had repairs undertaken, with 14 separate leaks repaired. of handrails, prevention of carried out on various components. A range of structural and general maintenance unauthorised access and rectification of a range of potential hazards to the Two lengths of butyl rubber liner were installed was carried out through the year, notably to public. A key task was the on the main channel in sections of badly cracked address hazards identified during the Public construction of 1200 metres of and leaking channel. These rubber liners have Safety Risk Review program undertaken during security fencing on the main channel through the Bacchus Marsh township. As part of the general works program the old mild steel off-take door, which controls supply from Bacchus Marsh weir into the Main Channel, was replaced with a more durable and longer lasting stainless steel door. The entire 14 kilometre length of the concrete lined Main Channel was de- silted during the year by SRW staff. Contractors with specialist cleaning equipment were engaged to de-silt 4 culverts and siphons.

15 Internet Copy Over the season 6,920 orders were delivered in the district, around 200 less than the previous year. Average irrigation volumes were up slightly, with 1.5 ML per order delivered compared to the 1999/2000 average of 1.4 ML.

The performance target of 95% for customers to receive water on or before requested day, was achieved,WERRIBEE with IRRIGATION 96.8% DISTRICT of all orders suppliedFINANCIAL within PERFORMANCE the Low sales were the principal cause of a $42,000 target period. revenue shortfall (2.7% on turnover of $1.535 million) for the year. All direct cost expenditure categories exceeded budget and, with the inclusion of $39,000 of non-capital investment charged against revenue, total expenditure was $1.571 million, $98,000 over the budget of $1.473 million. These outcomes together created a $78,000 operating shortfall for the year, exactly $140,000 worse than projected. OPERATIONAL PERFORMANCE: Low storage levels (33% full) in the Werribee system at the start of July resulted in an initial allocation of 100% of water right within the WID. Good rainfall throughout the catchment in Werribee Irrigation District farmer Romano Mason installing October and November saw both Pykes Creek a line of spray irrigation heads into his newly acquired and Melton reservoirs spill with minor flooding vegetable property in Werribee South. occurring downstream of Melton Reservoir. This enabled an increase in the allocation to water Over the season 6,920 orders were delivered in right plus 50%. the district, around 200 less than the previous Significant rainfall events in March and April saw year. Average irrigation volumes were up slightly, the system shut down on each occasion for a with 1.5 ML per order delivered compared to the week due to lack of demand. The allocation to 1999/2000 average of 1.4 ML. customers was also lifted to water right plus 100% The performance target of 95% for customers to late in the season. receive water on or before requested day, was Despite the eventual abundance of water, early achieved, with 96.8% of all orders supplied within season conditions posed the prospect of low the target period. seasonal allocations, as was the case in 1999/ 2000. This prompted irrigators into the market, SYSTEM PERFORMANCE: with brisk water trading undertaken early in the A total volume of 10,458 ML was delivered in the season. As the year progressed and allocations WID during the 2000/1 season, surpassing last were raised, trading activity reduced significantly. year’s 10,213 Ml, but still well short of budgeted By year end 50 temporary transfers had been expectations of 12,471 ML. The total for the year processed for a total of 1,535 Ml - 16% of total included 2,013 ML of sales, up 80% on last year water right. This was well short of the 140 but similarly almost 20% below the 10 year applications to transfer 2,310 ML received for the average of 2,500 ML. previous season. There were two permanent Delivery efficiency within the system was 81% in transfers during the season, involving a total 2000/1 compared with 79.5 % in 1999/2000. Outfall volume of 46 ML. losses remained constant, but in-system losses of 16.9% represented an improvement over the previous two years.

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Description 2000/1 1999/0 1998/9 Channel patching was undertaken during the ML ML...... ML 12,906winter 12,8422,0138,445 irrigation 11,330 1,1199,094 period. 8,240 768 A total of 32 separate Water brought into leaks were repaired, ranging from small cracks the system in concrete channel lining to replacement of Water rights panels and capping of channels where supply and entitlements constraints were identified. A trial of a liquid delivered sealant product sprayed onto the concrete was Seasonal sales encouraging. delivered Contractors slashed 12.5 kilometres of wild % % % aniseed which had infested channel and drain Water delivered to banks, using an excavator with a slashing customers ...... 81.0 79.5 79.5 attachment to reach difficult access locations. Water lost within the Herbicide was then applied to control further delivery system ...... 16.9 18.3 18.3 regrowth. Water passed as outfalls from system .... 2.1 2.2 2.2 General weed control involved spraying 180 kilometres of channel banks and 106 kilometres SYSTEM MAINTENANCE: of drainage channels with a non-residual A maintenance priority for the year was weed herbicide to control weeds and grasses in and control on channel and drain reserves. Other key around system infrastructure. maintenance activities included extensive At the beginning of the year the channel-desilting drainage de-silting works, channel patching and program cleaned 50 kilometres of concrete lined channel de-silting. channels over a 5 week period. This represented District drains were filled to capacity for a number all of the open channel distribution system. of days as a result of heavy rains. Additional de- Desilting was undertaken using both SRW and silting works were undertaken by SRW staff, in hired small plant. Specialist cleaning contractors order to maintain flow capacities, along a total of were engaged to de-silt 12 culverts and siphons 13 kilometres of drainage channels. Contractors throughout the district. were engaged to de-silt an additional 400 metres of larger drains.

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A key feature of the year was the reduction in bore construction activity and licensing of new bores. In 1999/2000 1,334 Bore Construction licences were issued, including 870 for stock and domestic bores of which LICENSING 755 were located in south west Victoria. This year the total fell to 976 (down FINANCIAL27%), PERFORMANCEincluding Above average revenues for both Surface Water only 571 stockand Groundwaterand Licensingdomestic functions resulted in bores of whicha better 462 than budgeted were result for inthe Licensing the south west, abusiness. drop Bore Constructionof 39%. Licensing activity was below previous years as demand for stock and domestic bores fell, especially in the south The Minister for Environment and Conservation has now west. The fall in revenue from this activity, was accepted the recommendations of the Farm Dams Review. SRW made significant inputs to the Review and will play a matched by a corresponding drop in expenditure, key role in 2001/2 and beyond in the implementation of the so that there was no bottom line impact on results. recommendations. Overall the Licensing business earned revenue of $2.501 million against budget of $2.445 million. Against this was booked total expenditure of major concern in the south west. Good rains in $2.663 million, resulting in an operating shortfall November and April assisted farmers to survive of $162,000. This was accounted for entirely by but were insufficient to recharge some aquifers. the Farm Dam Licensing function, for which no Metering of bores was completed in the Condah, fees are currently set. The core functions of the Warrion, Nullawarre and Yangery GMAS and business broke exactly even on the year. Groundwater Management Plans have been completed for Nullawarre and Yangery. The OPERATIONAL PERFORMANCE - Groundwater Management Planning process GROUNDWATER continues in Warrion, and will be commenced for As indicated, a key feature of the year was the Condah and Bungaree in the near future. reduction in bore construction activity and Compliance surveys were completed in the licensing of new bores. In 1999/2000 1,334 Bore Bungaree, Glenormiston, Colangulac, Heywood, Construction licences were issued, including 870 and Cut Paw Paw GMAs, totalling in excess of for stock and domestic bores of which 755 were 250 licences. located in south west Victoria. This year the total fell to 976 (down 27%), including only 571 stock and domestic bores of which 462 were in the High flows in the at Cowwarr Weir. This is the south west, a drop of 39%. old course of the river which diverges above the weir from Rainbow Creek, the new course. Management and In the south east of the state there was continuing maintenance of environmental flows on streams such as this interest in Groundwater as an alternative water are ongoing challenges for SRW. source, although the establishment of Ground- water Management Areas (GMAs) and the imposition of Permissible Annual Volumes (PAVs) in them has reduced potential access for some customers where the aquifer concerned has been defined as fully/overcommitted. Declining water levels and the impacts of lack of recharge and higher demand were key concerns during the year. A roster was implemented in the Moe GMA in order to overcome the problem. Metering of bores, in connection with the development of Groundwater Management Plans, was completed in the Sale, Denison, Wy Yung, Lang Lang and Wandin Yallock GMAs and commenced in Seacombe and Rosedale. Groundwater sustainability continues to be the

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OPERATIONAL PERFORMANCE - Water restrictions were introduced on the low levels by mid December. SURFACE WATER Mitchell River on 22 January, which was two Restrictions were imposed at that SURFACE WATER months earlier than last year. The stream time, with irrigation being totally Across our region Licensing staff were involved struggled to cope with irrigation demands and banned by late December. The river in compliance and pre-metering surveys environmental flows. By 11 March irrigators were did not recover sufficiently to allow throughout the year. on stage 9 of a 10 stage roster. Fortunately the the bans to be lifted until May. The South east Victoria experienced another very dry area received good rainfall and a drop in demand was also stressed by year with below average rainfall. Good rains fell enabled the lifting of all restrictions on 22 March. low flows during the year. in Spring, but there was little follow up rain during Most other streams in this area, whilst The roster was again the season. experiencing low flows coped well due to a lack placed on a message bank service, By mid December 2000, irrigation restrictions of irrigation. The dramatic price rise of diesel has and the roster was were in place on the Albert, and also been a factor in the decline in irrigation added to the service for the first time. Bruthen Creek systems. activity. This service has operated very Irrigation demand on the was low All active irrigators on the and its successfully and will be extended to this year compared to 1999/2000. Nonetheless tributaries were metered in January 2001. other rosters during 2001/2 as appropriate. Irrigators on the Merri rostering was introduced from mid-January to On the Avon River irrigation commenced in late were subject to restriction between mid-March. Middle Creek and Billy’s Creek October. Low rainfalls led to the implementation January and May. Consultation with stopped flowing between the end of February and of rosters on 17 December. These remained in the Merri River Customer Consultative mid-March. Flows in Traralgon Creek were low place until late April when the area received good Committee assisted greatly in from early January. rainfall. Valencia Creek was subject to a total managing rosters and restrictions By March 2001, every river system in South Gipps- irrigation ban from 19 December 2000 until April throughout the year. land had been subject to an irrigation ban and it 2001. The Gellibrand River was placed on was not until April that all restrictions were lifted. There was no requirement for rostering on restrictions from February to April. Gippsland Water implemented low level streams in the Koo-Wee-Rup area. Releases from Improved communication of the roster restrictions at Thorpdale through summer, due to and tributaries resulted in good by way of the message bank service low flows in the Little Narracan Creek. SRW staff flows and irrigation requirements were met. and ongoing consultation with the undertook daily surveillance and monitoring of the Throughout south west Victoria, below average stream to ensure that river diverters complied local Customer group and South West rainfall continued to be of concern all year. Water ensured that environmental with licence conditions and to safeguard flows Restrictions were imposed throughout the region for urban use. flows were maintained throughout the between November and May, with total bans on year. Upper usage was low and no some streams between January and May. Continuing dry conditions in the early rosters were implemented, even though there However, good rains in April allowed the winterfill part of the season placed the were only minimal environmental flows evident season to commence on time this year. Maribyrnong and in early March. Water usage on the Latrobe River Flows into the reached critically decreased by 30% on last year. systems under stress. Irrigators on unregulated sections of the rivers were subjected to total bans between January and May. Those on the regulated sections were initially offered only 50% of their allocation, but good rains in March allowed this to be increased to 100%. The rivers in the far west were greatly stressed, with the Glenelg and the Wannon drying out completely. Total bans were imposed on all streams between January and May.

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Lake Glenmaggie filled quickly during the 1999/2000 winter and spilled from mid October until the beginning of December. There was a heavy demand for irrigation water from the beginning of the season and releases were carefully monitored in order to HEADWORKS optimise the available resources. The absence of replenishing FINANCIALin-season PERFORMANCE rains Revenues for the Maribyrnong system were The principal financial objective of our meant that, by the end of the adversely affected by low demand for water from Headworks business is to harvest and store water irrigation period, Glenmaggie Western Water and by reduced recoveries on behalf of bulk entitlement holders - both was reduced to about 9% of pending finalisation of Bulk Entitlement Orders. internal and external - on a full cost recovery capacity. Conversely, revenues for the Werribee and basis, in accordance with the Bulk Entitlement Yallourn Storages systems were above budget. Orders which confer those entitlements. Pending The actual total revenues from all sources of the finalisation of remaining Orders, interim $4.817 million were thus able to more than arrangements and agreements are in place with overcome increases in expenditure ($3.334 million appropriate external customers. actual against $3.121 million budget. This, Current Government policy also provides for SRW together with a reduction in the dividend payment to charge a 4% rate of return to non-metropolitan to Government, resulted in an actual surplus of urban water suppliers on the assets employed to $1.482 million, up $213,000 on the budget forecast. harvest and store their entitlements. OPERATIONAL PERFORMANCE This activity was budgeted to generate total Lake Glenmaggie filled quickly during the 1999/ revenues for 2000/1 of $4.418 million and an 2000 winter and spilled from mid October until the operating surplus of $1.297 million. beginning of December. There was a heavy An early view of Lake Glenmaggie dam, prior to the installation of the fourteen radial gates demand for irrigation water from the beginning which increased its capacity to the current level of 190,000 ML. of the season and releases were carefully monitored in order to optimise the available resources. The absence of replenishing in- season rains meant that, by the end of the irrigation period, Glenmaggie was reduced to about 9% of capacity.

Following the end of the season the storage commenced filling slowly and held just over 32,000 ML by 30 June. Given normal patterns of inflow it is hoped that supply levels should be restored in good time for the 2001/2 season.

Normal daily operational routines during the year were supplemented by special works during 2000/ 1, preparatory to implementing the rehabilitation programs for several of the valves which release water to the Northern and Southern Channels and the .

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Western Headworks staff take a break between bus tours on the occasion of the Lerderderg weir The 75th birthday of the Lake Glenmaggie dam and Blue Rock again played host to a large number of Open Day on . (L to R); Pat Caruso, Gary Madden, Tim Kay, Ray of water delivery from it to the Macalister recreational visitors to its extensive park areas. Dohnt, David Hall and Stephen Peter. irrigation District was also a major event during The Blue Rock Classic (which is an annual team the year. This milestone was highlighted by a very based sporting event) also attracted many visitors successful open day that offered an opportunity to the dam. for all stakeholders to view and gain an insight The year was uneventful at Cowwarr weir until into the operation and functions of such things late April when the failure of an electronic as the hydroelectric generators, the floodgates component resulted in the main gates failing to and various valves. It is hoped that similar events open automatically during a local severe will be held in the future. rainstorm and flash flood which saw inflows jump The Yallourn Storages ( dam and during a one hour period from a rate of about 2,000 Yallourn weir) underwent exhaustive expert ML/day to in excess of 8,000 ML. This caused the reviews and feasibility studies during the year, pool level to increase rapidly and prompt action whilst staff continued to upgrade and improve site was required by staff to restore it to a safe level. safety and security. These works are preparatory Routine technical surveillance monitoring was to major works projects on both structures in the carried out by the SMEC consulting group, which coming two years. Careful inspections were confirmed that all eastern Headworks storages carried out on both dams, following several minor were operating and performing within the earthquakes, in order to ensure that no structural industry guidelines and standards. damage had occurred and that all equipment and Likewise the annual Dam safety Management machinery was unaffected. The telephone service audit identified only one deficiency, namely that which is utilised for remote monitoring and skilled operational staffing levels were at a operation of the site, was re-laid underground to minimum and may not have been adequate to ensure more reliable operations, particularly manage a major emergency. Action has been during storm events. implemented to correct this situation, including continued to supply bulk water employment of an additional staff member. for the Power Industry and downstream irrigators The Werribee system storages, with the but this demand was less than that experienced exception of Melton, began the year relatively at other storages. Consequently the storage empty, as a result of the continuing low rainfall emptied only to about 65 % of capacity and began patterns of recent years. On 1 July 2000 Merrimu filling rapidly after the summer demand ended. held only 23% of capacity, Melton 61 % and Pykes Water from Blue Rock Lake augments the Creek 27%. Gippsland Water storages and during the extended dry period water was pumped from Blue Rock to the Moondarra storage.

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The Lerderderg catchment experienced one of the highest rainfalls recorded in a twenty four hour period during the heavy October rains. This resulted in record stream flows in the system. StaffLow wereto moderate inflows were occurred until mid- subsided and manual operation of the gates was immediately putOctober, onwhen heavyalert rainfalls throughout to the possible. Full functionality of the gates was monitor and carrycatchment resulted out in very highroutine inflows that saw returned within three days of the flood event. flood surveillanceMelton and Pykes of Creek structuresfill to capacity, and Following the event a complete mechanical/ throughout thisMerrimu increaseperiod significantly toand a peak of 74.2%. electrical inspection and recommissioning of the ensure continuityThe storages finishedof theinflows year in a much better tostructure and equipment was performed. As a the tunnels andstate than hasMerrimu been experienced in recent years, result of this process, further works will be Reservoir. with Merrimu holding 61%, Pykes Creek 78% and conducted throughout this year to ensure the Melton 53% of capacity at 30 June 2001. ongoing integrity of the structure and associated In the Maribyrnong system, Rosslynne reservoir systems.

held an all time low of just 7.9% of capacity on 1 In light of the extent of flows, the levels of debris July 2000. Here also the October rains provided deposited against the structure and the considerable relief. The reservoir held 42.6% of subsequent malfunction, a full design review of capacity at the end of October, before demand the structure will be undertaken to assess the again exceeded inflows causing the reservoir to capability of the structure under severe flood end the year at 32.4% full. situations and to consider improvements to the The Lerderderg catchment experienced one of structure to minimise impacts from flooding.

the highest rainfalls recorded in a twenty four Later in the year one of the main attractions of hour period during the heavy October rains. This 2000/1 on the western storages was a series of resulted in record stream flows in the Lerderderg guided tours of the Lerderderg Weir and tunnels River system. Staff were immediately put on alert offered to the local community on Sunday 25 to monitor and carry out routine flood surveillance March 2001. of structures throughout this period and ensure The feature of the day was the guided bus tours continuity of inflows to the tunnels and Merrimu into the Lerderderg Diversion Weir site. For safety Reservoir. reasons general access to the site by the public The river recorded a rapid rise in flow rate, from is normally restricted. The tours provided the 100 ML/day to 10,000 ML/day in less than four opportunity for the public to view the Lerderderg hours. As a consequence, massive volumes of Diversion Weir first hand and to explain to them debris were washed downstream and suddenly the purpose of the weir and the mechanics of deposited against the weir gates. Their great filling Merrimu Reservoir. The day was an weight resulted in all three radial gates outstanding success, with around 300 people malfunctioning and the obstruction of the from local and distant communities attending. automatic pool control function that controls the gate opening. This caused the gates to be over- topped for a short period, until the initial flow

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At Rosslynne, extensive water quality monitoring On the staffing front, an opportunity has been was undertaken due to outbreaks of blue green provided for two traineeships in Water Resource algae. Western Water also designed and installed Management in the Headworks business. An a water aeration system to combat high extensive review was also carried out on the manganese levels in stored water. training needs of the Headworks group and a The serrated tussock eradication program comprehensive training program has been developed to ensure staff are well qualified to continued at Melton, using both contractors and SRW staff climb down and prepare to tackle the SRW staff. Blue green algae monitoring was also manage our complex and essential structures in huge debris pile which washed up against Lerderderg weir during the October 2000 flash essential during the summer. All boating control a safe and efficient manner. flood, jamming the gates and preventing their operation. signage and buoys were upgraded during the year to comply with Marine Board regulations. Melton was also the venue for stage 1 of a proposed 3 stage joint program with Greening Australia (Vic), to replant native vegetation on Authority marginal lands. The principal activities at Merrimu were the serrated tussock program, concentrating on the northern and eastern areas of the storage within the Authority’s boundary, and monitoring and testing for Blue Green Algae. Not surprisingly, repairs, testing and recommis- sioning of the structure following the October flood was the main works activity for 2000/1 at Lerderderg. At Pykes Creek both blackberry and serrated tussock were targeted. Important modifications were also made to the Upper Werribee diversion weir structure, to enhance our ability to accu- rately meet the requirements of the Werribee Bulk Entitlement whilst maintaining efficiency in the diversion of flows into Pykes Creek Reservoir. The Werribee River diversion tunnel downstream measuring station was also upgraded to ensure the maintenance of accurate and reliable data. Pykes Creek also received new boating control signage.

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The rehabilitation of the first of the two major control valves on the southern outlet at Lake Glenmaggie dam was completed during the 1999/2000 winter shut down period. The valve was recommissionedCAPITAL by WORKS mid August, and has operated SRW set a capital works budget for 2000/1 of $2.88 A major rehabilitation and remedial works satisfactorily during the million comprising: program commenced at Lake Glenmaggie dam. season. The second of the two – $970,000 for Headworks projects: Work was commenced on the Erosion Control valves was removed for Program at sites around Sandy point and the – $310,000 for works at Lake Narracan Dam Munjara camp. Bank reshaping and wave rehabilitationand inYallourn MayWeir, the cost2001 of which is and protection measures were completed in these will also be re-installedrecovered from the power generating and re- areas. Further works are programmed for next companies; and commissioned by early August. year at priority spots around the lake, including – $1.6 million for works on irrigation Kelly Cove. infrastructure including $1 million in the The rehabilitation of the first of the two major Macalister Irrigation District. control valves on the southern outlet at Lake

Lerderderg weir. A major Headworks project for the year was the Glenmaggie dam was completed during the 1999/ completion of the Dam Design Review Program, 2000 winter shut down period. The valve was which comprised thorough technical assessment recommissioned by mid August, and has operated of the design of all SRW dams against current day satisfactorily during the season. The second of standards. the two valves was removed for rehabilitation in The reviews of the remaining two high hazard May 2001 and will also be re-installed and re- dams at Melton and Merrimu were commenced, commissioned by early August. together with a review of Yallourn Weir, which is The northern outlet at Glenmaggie consists of our highest risk diversion weir. In addition further three vertical sleeve valves that date back to the work was commissioned on specific design original construction. These valves showed signs aspects of Blue Rock and Glenmaggie dams. of deterioration, and were unsuitable for modern At Lake Narracan dam foundation investigations control adaptation. They will be replaced with were completed and a structural analysis of gates modern stainless steel and delivery of the three commenced, as the first step in a major program new valves took place in April. A contract to of upgrading. The emergency power generator install the valves over two winter periods has at the dam, which was 40 years old, was also been let and the first should be operational by replaced. the end of July 2001.

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SRW engineers Phil Dijs (centre) and Marc Grunow (right) discuss progress on the first stage of the Nuntin pipelining program in the MID with contractor Ian Smith.

Equipment to enable spillway gates to be In the Macalister Irrigation District the main In the Western Irrigation business operated during a power blackout or electric projects were: (Werribee and Bacchus Marsh motor failure at Cowwarr and Maffra Weirs will – Tendering the “design and construct” Irrigation Districts) the main projects be installed before the onset of Spring rains. contract for the replacement of Little Weir, undertaken during the year were: At Lerderderg Weir, the generator which supplies which is a dam wall which forms part of the – Commencement of the “design electricity for the operation of the site is to be of the Main Northern channel where it and construct” contract to replaced. Following the flash flood in October crosses a gully immediately downstream of replace Flume 6, which is an 2000, the requirements of the replacement were Lake Glenmaggie. The replacement works eighty-year old elevated concrete re-assessed and additional capabilities added. include constructing a new structure across flume in Bacchus Marsh. The Installation will be completed by Spring. Other the gully, stabilising the tunnels either side of works will be undertaken during the dam wall, and site rehabilitation and the winter period, and are revegetation of the area currently inundated. scheduled to avoid disruption to The project will be the main works winter irrigation supply undertaken during the 2002 winter shutdown requirements. period. – Continuation of the fencing – Commencement of Stage 1 of the Nuntin program in the urban areas of Pipelining project, which involves the Bacchus Marsh replacement of old concrete lined channels – Securing of funds from the State with pipe. This first stage involves “Water for Growth” program to construction of approximately half a partly fund a feasibility study for kilometre of pipeline. piping all of the Werribee – Continuation of the footbridge replacement Irrigation District and upgrade program to provide safe access – Undertaking repairs to the for SRW operators Werribee Diversion weir, damaged – Continuation of the main channel regulator during a flood event in November upgrade program, replacing drop-bar 2000 regulators with automated doors to improve – Replacement of three minor minor works were undertaken at the site, some operator safety and service crossings on the channel and resulting from flood damage. – Commencement of erosion control on drain systems. The principal Irrigation infrastructure projects for sections of the Main Northern channel 2000/1 comprised works to: – Investigation of sections of the channel – replace poor-condition infrastructure; system that have service delivery problems. – improve service; These resulted in works on the Bundalaguah 2/2 and Sale 1/3 channels prior to the start of – improve safety; and the 2001/02 irrigation season – address environmental issues. – Repair of joints on the Main Northern siphon No 2.

The first refurbished control valve on the southern outlet of Lake Glenmaggie dam has been returned and lowered in place; the crane dogman has climbed onto the valve and waits for the lifting chains to be slackened, so that he can release them.

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SRW is responsible, in conjunction with other stakeholders, for implementing the MID Nutrient Reduction Plan. The Plan outlines the expected contributions to and outcomes from initiatives aimed at reducingRESOURCE the discharge of nutrients from the MANAGEMENT MID. Last year SRW supported landholder extension, water monitoring, nutrientENVIRONMENTAL researchMANAGEMENT GIPPSLAND LAKES SRW is developing an Environmental and investigation activities, asRESCUE PACKAGE Management System that will ensure it is aware SRW is supporting the Gippsland Lakes Rescue well as processing “whole of statutory obligations, and the range of Package through a range of initiatives – imple- farm plans” andenvironmental continuing risks that it potentially faces as a mentation of the Thomson Macalister bulk development ofresult ofdrain its activities, and identifies measures to entitlements, completion of joint sealing on the address these. This will include its obligations management plans. MID Main Southern Channel, and our involvement under the Victorian Biodiversity Strategy. in the MID Nutrient Reduction Plan. SRW is also developing Reservoir Management SRW is responsible, in conjunction with other Plans for each storage to draw together the stakeholders, for implementing the MID Nutrient research into impacts of storage releases on the Reduction Plan. The Plan outlines the expected downstream environment, management of contributions to and outcomes from initiatives releases, blue green algae management and the aimed at reducing the discharge of nutrients from risks to our storage water quality from upper the MID. Last year SRW supported landholder catchment in-flows. It has completed a review of extension, water monitoring, nutrient research the water quality information collected from our and investigation activities, as well as processing storages and initiated a risk assessment to “ whole farm plans” and continuing development identify where the water quality related hazards of drain management plans. lie from both upper catchment inflows and Improved drain management is a continuing releases from our storage to the downstream priority, since reducing drainage outflows is a environment. principal means of reducing nutrient export. SRW monitors its storages for potentially toxic SRW’s current Prime Development Zones project blue green algae so that when a bloom occurs it promises further diversion from the drains, can respond quickly and accurately by informing coupled with the development of higher value Inspecting the new monitoring station our customers, urban suppliers and environ- irrigated enterprises operating on a sustainable installed during 2000/1 to measure nutrient mental agencies of the situation. Last year SRW loads on one of the major drains in the basis. Werribee Irrigation District are (L to R); Dean commissioned CSIRO to prepare a report of the In salinity management, SRW implements the Jones (DNRE), Brian Seaton (Thiess), Patrick risks blue green algae poses in our storages so Ylloh (VGA), Alec Berias (WID CCC), Bill groundwater pumping component of the that we can better inform our business, other Barham (Thiess) and Pat Caruso, SRW Wellington Salinity Plan (18 groundwater pumps Manager Western Irrigation. stakeholders and our customers of the risks. extracting over 4,500 ML of groundwater annually) on behalf of the Wellington Salinity Group. Saline groundwater is pumped out of the shallow aquifers to lower water tables and therefore decrease soil salinity. The program is recognised as one of the most effective in the State.

WATER MONITORING SRW has a water quality monitoring program designed to indicate the potential impacts from water supplies and irrigation district discharges on the beneficial uses to customers, recreational users and the environment.

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Although this typical blue water meter looks fairly insignificant, SRW has installed 1,030 such meters on groundwater bores in GSPAs across our region during the last two years, at a total cost of around $1.5 million. Metering of bores is a key element of the Groundwater Management Planning Program currently being undertaken to safeguard the long term sustainability of groundwater in our region.

SRW has monitoring on five major storages to WATER RESOURCE MANAGEMENT upgraded and some less formal indicate microbiology, nutrients and blue green SRW is responsible for managing diversions of programs have been reviewed and algae. SRW also carries out water quality monitor- water from streams and aquifers and ensuring formalised in consultation with local ing for nutrients discharging from the drains in sufficient supply is retained in these resources customer groups. In addition, monitor- the Macalister Irrigation District, and contributes to maintain and improve natural aquatic ing and alarm systems have been to Waterwatch programs to undertake additional ecosystems. The objective is to ensure that our strengthened to ensure compliance water monitoring and community education management of water resources is sustainable with agreed environmental flows. activities. Overall, SRW has 69 flow monitoring and equitable and optimises the usage for SRW is also working with the Govern- sites on waterways and drains it manages and beneficial social, environmental and economic ment and stakeholder groups to contributes to a further 67 sites in the State outcomes. implement Groundwater Management network. SRW plays a key role in formulating streamflow Plans (GMPs) to protect and improve regimes in collaboration with other stakeholders, the management of the resource. We RESEARCH through the ongoing development of Streamflow have established ten Groundwater SRW commits well over $200,000 to research Management Plans (SFMPs) which include the Supply Protection Areas (GSPAs) annually, with the aim of being informed of issues establishment of appropriate environmental flows across our region, for which GMPs are that arise from its business and could potentially for all stream conditions. SRW is developing completed, commenced or planned. impact on the environment. It has established SFMPs for twelve priority streams in southern SRW has implemented the most links and co-operative partnerships with Arthur Victoria. substantial monitoring program for Rylah Institute, Macalister Research Farm, CRC In 2000/1 the Upper Latrobe and Upper Maribyr- groundwater resources in the State, for Catchment Hydrology, CSIRO and RMIT. nong Plans were completed, adding to those incorporating metering of all licensed previously done for the Merri and Gellibrand irrigation bores in heavily committed WATER EFFICIENCY systems. Planning continued on the Avon and areas and the installation of two SRW recognises that improved water efficiency Moorabool rivers. Progress on these was slow, hundred groundwater monitoring will enable better environmental outcomes whilst however, because of dry conditions and due to bores. recognising the social and economic needs of strategies being developed to improve river GMPs are developed by a Ministerial local communities. health without unacceptable impacts on agri- appointed committee made up of In our Irrigation Districts, a priority is to improve cultural production. Work on both plans will representatives from such bodies as customer understanding of water security, since continue in 2001/2 and it is expected that planning DNRE, the relevant Catchment a lack of information can retard the take-up of will begin in respect of the Barwon and Tarra Management Authority, the Australian better irrigation practices. SRW also continues systems. Drilling Industry Association, local to encourage all customers to use the oppor- While SFMPs will be put in place to manage major Shires, SRW and an equal number of tunities provided by water trading to improve their waterways there are many other streams that licence holders in the area. Generally returns from water efficiency improvements. have no plan in place but have significant afor licence Condah inholder has chaired the Cost-effective reduction in water losses from environmental and productive value. SRW has committee. earthen channels remains a challenge, with capped any further diversions from summer flows GMPs have been completed for current treatments very expensive. However, on all streams. Nullawarre and Yangery (East and West pipelining is cost-effective in some circum- Our principal management strategies for rivers of Warrnambool respectively), Wy Yung stances, and further pipelining is proceeding in in southern Victoria centre on control by formal near Bairnsdale and Sale and Denison the Werribee and Macalister Irrigation Districts. rostering and restriction programs which are in central Gippsland. Plans have also In 2001/2, a Water for Growth project on the Avon introduced progressively in response to changes been commenced for Deutgam near River will explore opportunities for better water in flow conditions. These programs have been Werribee and Warrion near Colac. In use - with the water savings being directed into well tested in the last four years and refinements 2001/2 planning will begin flow regimes which provide better environmental have been made to a number in order to ensure the Hamilton area, Bungaree in the outcomes. equitable and practical supply conditions for Ballarat area, Wandin Yallock in the customers. Several of the programs have been Dandenongs and Koo-Wee-Rup.

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Our various consultative committees involve more than a hundred of our customers in an ongoing round of consultation, feedback, advice and recommendation. In addition, however, SRW also utilises other processes to ensure that theCUSTOMER Board, AND management andCOMMUNITY staff CONSULTATION are familiar with customer and SRW is founded on a fundamental principle of water user communities. As a precursor to the community issues, priorities maximising customer influence on its operations, establishment of a Licensing CCC, SRW has and opinions. These range particularly with regard to price and service established a high level Licensing Forum, which from briefings on current levels in their part of the business. This means has begun to address more strategic issues topics to the policy of regularly ensuring not only that our operations are open relating to Surface water and Groundwater and frequently holding up to and transparent, but also that we have structures management. It is expected that this Forum will half of each year’s formal in place which make both transparency and be translated into a CCC for the Licensing Board meetings in various genuine customer influence a reality. Business during 2001/2. locations across our region. In order to give effect to this principle, we have In our Headworks business, whose customers are established a comprehensive process of cus- predominantly the holders of bulk entitlements to tomer consultation. Each of our three irrigation water harvested in our four major storage systems, districts has its own Customer Consultative the focus has been on establishing strong bilateral Committee (CCC). These committees have been arrangements between SRW and individual encouraged by the Authority to develop a very customers. This entails consideration of wide significant role in business planning and policy ranging issues of significance and urgency, such development for each district. They play a key role as drought planning, infrastructure development in the development of annual Business Plans and and enhancement, and water quality.

pricing proposals for our Eastern Irrigation and Our various consultative committees involve more Western Irrigation businesses. than a hundred of our customers in an ongoing In the Licensing business SRW currently has round of consultation, feedback, advice and some 33 committees involved in the operation of recommendation. In addition, however, SRW also local stream or groundwater management areas, utilises other processes to ensure that the Board, or the preparation of Streamflow and Ground- management and staff are familiar with customer water Management Plans. To date their emphasis and community issues, priorities and opinions. has tended to be more local and these commit- These range from briefings on current topics to tees have become important vehicles for ensuring the policy of regularly and frequently holding up that the management of their local systems has to half of each year’s formal Board meetings in regard to local views and is accepted by local various locations across our region.

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The Board’s custom on these occasions is to meet surface water take-and-use licences, and who with local customers or other stakeholders over are scattered widely across southern Victoria. a meal on the evening prior to the meeting, in We also influence the daily lives of all the local order to informally discuss issues of the day and communities in our region. Communication and to gain a clearer focus and understanding of local real customer influence and participation can be conditions and of community and customer needs hard targets to achieve with such a diverse and and concerns. It is also the practice of the SRW dispersed target group. It has been and remains Board to follow all its monthly meetings, wherever a priority for SRW, however, to ensure that our held, with tours of local farms, SRW infrastructure customers and other stakeholders can or other relevant venues of interest. communicate their concerns and issues, and that their opinions and priorities are properly SRW has more than 8,000 customers, the great acknowledged and considered by the Board and majority of whom are holders of groundwater or the Authority.

The local community has always taken a close interest in the Lerderderg River system and its role in the harvesting of water into Merrimu. The Lerderderg Open Day held in March 2001 gave more than 200 visitors the chance to view and learn about the system more closely. One of the tour parties is seen here at the Lerderderg weir.

29 CHARTER AND PURPOSE Internet theCopy applicant. As a result of subsequent review by VCAT of those decisions, the CHARTER AND PURPOSE decision of partial access was confirmed. An application incomplete at 1 July 2000 The Gi ppsl and and Sout her n Rur al Wat er Aut hor i t y, t r adi ng as was determined by VCAT, with partial access being agreed by consent. Sout her n Rur al Wat er ( SRW), was est abl i shed by Mi ni st er i al Order on 1 Jul y 1995. Members of the public may access the documents of SRW, subject to the provisions of the Freedom of Information Act 1982, by applying in writing to the FOI Officer of SRW i s an Aut hor i t y est abl i shed under t he Wat er Act 1989. I t i s the Authority. Published information is available from the Head Office at 88 Johnson account abl e t o t he Minister for Environment and Conser vat i on and Street Maffra, between 8.00 am and 4.45 pm Monday - Friday excepting public its formal f unct i ons and power s ar e cont ai ned i n Sect i on 7 of t he holidays. The FOI Officer is Mr Geoff Barry. Wat er Act . During 2000/1 SRW complied with the building and maintenance provisions of the The busi ness act i vi t i es of SRW ar e out l i ned i n det ai l el sewher e i n Building Act 1993. Consultants are engaged to manage Certificate of Occupancy t hi s Repor t . conditions for the Maffra head office. SRW pr i mar i l y ser vi ces t he r ur al communi t i es of sout her n Vi ct or i a SRW operates on a full cost recovery basis in accordance with National Competition i n a r egi on whi ch encompasses t he ent i r e St at e sout h of t he Great Policy. Prices are set in collaboration and consultation with customers to ensure Di vi de, wi t h t he except i on of met r opol i t an Mel bour ne. Thr ough i t s that all costs of operation are met, together with a provision for replacement of bul k wat er st or age oper at i ons i t i ndi r ect l y pr ovi des wat er t o ur ban assets used in provision of the supply or services provided. SRW is in the process user s i n Cent r al Gi ppsl and and t he dor mi t or y communi t i es nor t h west of implementing a Tax Equivalent regime as the next step in Competition Policy of Mel bour ne. I t al so har vest s, st or es and del i ver s as r equi r ed bul k compliance. wat er t o maj or power gener at i ng compani es i n t he Lat r obe Val l ey and t o t wo pr i vat el y owned hydr o- el ect r i c power st at i ons l ocat ed SRW manages its OHS responsibilities in accordance with the provisions of relevant on SRW st or ages. legislation, through two regional OHS Committees and a comprehensive network of workplace safety representatives. The following statistics summarise OHS MANAGEMENT AND STRUCTURE performance during 2000/1...... SRW is governed by a Board of nine members appointed by the PARTICULARS ...... 2000/1 1999/0 21 7 15 5 Minister for a three year term expiring on 30 June 2001. NUMBER OF LOST TIME INJURIES (hours) The Chairman is Mr Allan J Pappin CVO AM and the Deputy Chairman TOTAL LOST TIME 492 772 is Dr Greg Walsh. NUMBER OF NO LOST TIME INJURIES (Medical expenses only)511 The other members are: Mr Geoff Crick, Mr Patrick Foster, Mr David NUMBER OF INCIDENTS/NEAR MISSES Koch, Mrs Joan Liley, Mrs Jennifer McMillan, Mr John Nicol OAM, Mr John Tilleard. Continuous improvement in OHS performance has resulted in SRW achieving a net decrease in its Workcover premiums for 2001/2. The Chairman of the Audit Committee is Mr Patrick Foster. The STATUTORY REPORTSTATUTORY REPORT STATUTORY REPORT STATUTORY REPORTSTATUTORY REPORT members of the Audit Committee are Mrs Liley and Mr Crick. The Chief Executive is Dr Martin Kent. RELATED PARTY INFORMATION Related Party Information appears as note 25 “ Responsible Persons Disclosure” in SRW is organised into four principal operating businesses and a the financial statements section of this Report. Corporate group. The four businesses are; Eastern Irrigation, Headworks, Licensing and Western Irrigation. The Director Business Services is Mr Geoff Barry. Mr Graham Hawke DIRECTIONS OF THE MINISTER FOR is the Director Technical Services and the Business Manager ENVIRONMENT AND CONSERVATION Licensing. Mr Pat Caruso is the Business Manager Headworks and On 28 July 2000 the Minister for Environment and Conservation directed that the Business Manager Western Irrigation. Mr Matthew Youell is the Authority transfer and surrender to the Crown all the freehold land purchased for Business Manager Eastern Irrigation. the proposed Mitchell River dam. The intention of the direction is to enable the land The structure of the Authority and the principal functions undertaken to be incorporated into the Mitchell River National Park. by each unit are shown in the Organisational Chart which appears As at 30 June 2001, the transfer processes were incomplete and so the land remains elsewhere in this Report. as an asset in the books of account of the Authority as at that date. FINANCIAL AND OTHER INFORMATION DIRECTIONS OF THE MINISTER FOR FINANCE On 30 June 2001, which was the reference date for collection of The information in this section has been provided to comply with those requirements workforce statistics, SRW employed 103 permanent and 3 temporary of Part 9 of the Directions of the Minister for Finance under the Financial Manage- staff. The following chart summarises relevant workforce data for ment Act 1994, which have not been already met elsewhere in this Annual Report. 2000/1 with comparative figures for 1999/2000 and 1998/9: Additionally, in accordance with section 9.1.3(ii)(I) of the Directions, information FEMALE listed in section 9.1.3(iv) thereof has been prepared and is available to the relevant CATEGORY 2000/ 1 1999/ 0 1998/ 9 Minister, Members of Parliament and the public on request. Permanent Full Time 10 9 9 Permanent Part Time 2 2 2 BULK ENTITLEMENTS Temporary Full Time 1 1 1 The following information is provided in accordance with section 16.3 of the Bulk Temporary Part Time - - 1 Entitlement (Latrobe - Southern Rural) Conversion Order 1996. TOTAL 13 12 13 – at 30 June 2001 Blue Rock reservoir contained 154,694 ML of water. This is 74.3% of MALE the capacity of the reservoir (208,188 ML) CATEGORY 2000/1 1999/0 1998/9 – at 30 June 2001 the amount of water in the Authority’s share of Blue Rock reservoir Permanent Full Time 89 86 81 was 4,065 ML or 1.95% of the total capacity. Permanent Part Time 2 2 2 – the annual amount of water taken by licence holders from the system waterway Temporary Full Time 1 2 2 was: Temporary Part Time 1 - 1 – upstream of Yallourn weir 23 ML; TOTAL 93 90 86 – downstream of Yallourn weir 4,511 ML. TOTAL – the amount of annual losses debited to the Authority’s share of Blue Rock reservoir CATEGORY 2000/1 1999/0 1998/9 was 33 ML. Permanent Full Time 99 95 90 – the amount of internal spill of water into the Authority’s share of storage in Blue Permanent Part Time 4 4 4 Rock was nil. Temporary Full Time 2 3 3 – there were no periods of rationing for any licence holders during 2000-2001. Temporary Part Time 1 - 2 – The Authority has provided for passing flow requirements as specified in the Bulk TOTAL 106 102 99 Entitlement Order for most of the year, but there were several occasions where the requirement was not maintained. All appointments to positions in 2000/1 were undertaken on the basis of merit and equity principles. – there were no temporary or permanent transfers of all or part of the bulk entitlement. Five requests were received in 2000/1 for access to documents under – there was no bulk entitlement or licence in respect of the system waterway the provisions of the Freedom of Information Act 1982. Three of these temporarily or permanently transferred to the Authority. resulted in release of the requested documents and one in partial – there was no amendment to this Bulk Entitlement. Modelling is continuing, release (deletion of certain information). Partial release was also however, to confirm natural flow indicators and to review passing flow offered in respect of the fifth application but this was rejected by requirements, in particular at Sale.

30 – there were no amounts supplied to any licence holders other than thoseInternet specified –Copy Volume of water taken from the waterway by primary entitlement holders including in Schedule 1 of the Order. outfalls: – The Authority met the passing flow requirements 98.1% of the time. There has – Bacchus Marsh — 3,849.6 ML been no other failure of which the Authority is aware to comply with any provision – Werribee — 10,729.8 ML of the bulk entitlement. – River Diverters — 455.8 ML – Difficulties were experienced by the Authority in relation to: – Myrniong — 47 ML – modified natural flow indicators at designated passing points. Modelling of – There have been no internal spills. flows is under review by DNRE. – As at 30 June 2001 capacity shares were : – Western Water — 13,808 ML The following information is published in accordance with section 12.3 of the Bulk – SRW — 2,915 ML Entitlement (Yallourn Energy for Gippsland and Southern Rural Water Authority) – Unallocated — 4,699 ML Conversion Order 1996. – Share of passing flows: – The annual amount of water designated as taken by the Authority from the – Western Water — 219 ML waterway at its pumping station was 16,119 ML. – SRW — 73 ML – In accordance with clause 11.4, the Authority has a network of metering installed – Unallocated — 73 ML within its low quality water system that enables it to determine the low quality – SRW has not received any credits. For the year 2000/1 a total of 377.7 ML was water usage by both the Loy Yang A and Loy Yang B power stations. The returned to the system waterway via the main channel outfall. equipment is checked monthly for validity and annually for signal integrity. – Seven (7) temporary transfers have taken place as follows: – there were no temporary or permanent transfers of all or part of the bulk – 856.6 ML SRW (BMID) to Western Water (Merrimu Reservoir). entitlement. – 150.0 ML SRW (WID) to Western Water (Merrimu Reservoir. – there was no bulk entitlement or licence in respect of the system waterway – No transfers to SRW have taken place. temporarily or permanently transferred to the Authority. – No restrictions were implemented in 2000/1. Initial allocation on 1 July 2000 was – there was no amendment to this bulk entitlement. 100% of water right, from October 120%, from December 150%, from February 2001 – there has been no failure of which the Authority is aware to comply with any 175% and from April 200% allocation. provision of the bulk entitlement. – There are no changes to Schedule 1 – there are no existing or anticipated difficulties experienced by the Authority in – There are no changes to schedule 2. complying with the bulk entitlement. – Permanent Transfers: – 2 Transfer, 45.7 ML, WID to WID The following information is provided in accordance with section 20.3 of the Bulk The following information is provided in accordance with section 20.3 of the Bulk – 1 Transfer, 86.0 ML, River to River. Entitlement (Thomson/Macalister - Southern Rural Water) Conversion Order 2001. – Temporary Transfers: – at 30 June the status of SRW’s entitlement in Thomson Reservoir was; – 8 Transfers, 116.2 ML, from BMID to BMID. – Releases made from Thomson Reservoir to supply primary entitlements were – 44 Transfers, 1,194.8 ML, from WID to WID. 8,583 ML. – 4 Transfers, 76.4 ML, from BMID to WID. – The volume of SRW’s share of storage capacity under clause 9 was 8,245 ML. – 5 Transfers, 190.7 ML, from WID to Werribee River. – The volume of inflows attributed to SRW under clauses 10.1 and 10.2 was 11,976 – 1 Transfer, 13.0 ML, from Werribee River to WID. ML. – 2 Transfers, 55.0 ML, from Werribee River to Werribee River. – the annual amounts of water taken by SRW from the waterway were: – 1 Transfer, 150 ML, from WID to Merrimu – Main Northern Channel 55,556 ML – 6 Transfers, 856.6 ML, from BMID to Merrimu. – Main Southern Channel 117,310 ML – The annual volume supplied to: – Main Eastern Channel 34,397 ML; – Bacchus Marsh — 3,471.9 ML – Cowwarr Channel 17,045 ML. – Werribee — 10,457.7 ML – The volume of water held in Lake Glenmaggie at 30 June 2001 was 32,118 ML. – There are no amendments to this Bulk Entitlement order. – The annual amount of water taken by the primary entitlement holders under this – There have been no new Bulk Entitlements granted. order was 173,048 ML. – No environmental management programs have been implemented at this stage. – There were no credits granted under clause 17 of the order. SRW has continued with the same metering program as before the Bulk – There were no temporary or permanent transfers of a bulk entitlement or any other Entitlement was signed. Some sites have been upgraded with new equipment. entitlement to SRW. – SRW has provided as far as possible for passing flow requirements as specified in – There were no alterations made to Schedules 1 or 2 under sub-clause 8.1 of the the Bulk Entitlement order. order. – At present SRW has experienced no significant difficulties to date in complying – Permanent transfers of primary entitlements took place as follows: with the Bulk Entitlement. – MID to MID — 2 transfers totalling 60.0 ML – River to River — 2 transfers totalling 65.0 ML The following information is published in accordance with section 18.1 of the Bulk – MID to River — 2 transfers totalling 88.0 ML Entitlement (Maribyrnong - Southern Rural Water) Conversion Order 1999. – Temporary transfers of primary entitlements took place as follows: – 222 ML was released to supply licence entitlements. – MID to MID — 76 transfers totalling 2,818.8 ML – SRW’s share of Rosslynne Reservoir at 30 June 2001 was 249 ML. – River to MID — 2 transfers totalling 120.0 ML – Taking into account evaporation and measurement discrepancies SRW had – River to River — 6 transfers totalling 488.6 ML inflows of 415 ML. – MID to River — 6 transfers totalling 498.0 ML – SRW allowed up to 50% for transfer and operating losses. – There were no amendments to this Bulk Entitlement. – SRW has had 19 ML deducted for passing flow requirements. – There were no new bulk entitlements granted to SRW with respect to the supply of – SRW has provided as far as possible for passing flow requirements as detailed in primary entitlements under this order. the Bulk Entitlement order. – There has been no program approved under sub-clause 18.2 to date. – Primary entitlement holders have taken 119.7 ML from the waterway. – There has been no program approved under sub-clause 19.3 to date. – There have been no temporary or permanent transfers from this Bulk Entitlement. – There has been no other failure of which the Authority is aware to comply with any – A total of 270.3 ML was transferred from Western Water’s Macedon system into provision of the bulk entitlement other than the maintenance of environmental their share of Rosslynne Reservoir. flows on the Thomson River. On isolated occasions during the year flows dropped – There have been no alterations to Schedule 1 or 2 of this Bulk Entitlement. below the minimum and remedial action was required. – There has been 1 Temporary Transfer within the system of 38 Ml. – Difficulties were experienced by the Authority in relation to environmental flows as – There have been no amendments to this Bulk Entitlement. indicated above. Remedial action has included improvements to procedures, additional monitoring of the river and modifications to the Thomson river Siphon – There have been no new Bulk Entitlements granted. outfall to maintain flows at that point. – No environmental management programs have been implemented at this stage. SRW has continued with the same metering program as before the Bulk Entitlement was signed. Some sites have been upgraded with new equipment. The following information is published in accordance with section 18.1 of the Bulk Entitlement (Werribee System - Irrigation) Conversion Order 1997. – To SRW’s knowledge it has not failed to comply with any provisions of the Bulk Entitlement. – There have been no transfers from Merrimu Reservoir to Melton Reservoir. – SRW has experienced no significant difficulties to date in complying with the Bulk – Water taken from: Entitlement. – Bacchus Marsh Diversion Weir — 4,481 ML – Werribee Diversion Weir — 12,906 ML – Maddingley Pumps — 0 ML

31 TABLE 1: PERMANENT TRANSFERS OF WATERInternet RIGHTS AND DIVERSIONCopy LICENCES PROCESSED BY THE AUTHORITY DURING...... YEAR ENDED 30 JUNE 2 2 2001 98.0 60.0 2 1 90.0 14.0 1 2 5.0 88.0 0 0 0.0 0.0 0 0 0.0 0.0 85.0-74.0 SUMMARY Total transfers from other Total transfers to other Total transfers from Total transfers to Net increase/ districts/areas and districts/areas and districts/areas and districts/areas and decrease for Internal transfers within waterways within waterways within waterways of other waterways of other district/area District/area or waterway district/area or waterway Southern Rural Water Southern Rural Water Water Authorities Water Authorities or waterway ...... DISTRICTS 0 0.0No. ML 0 0.0 No. ML 0 0.0 No. ML 0 0.0 No. ML 0 0.0 No. ML 0.0 ML Macalister Werribee ...... 2 45.7 0 0.0 0 0.0 0 0.0 0 0.0 0.0 ...... Bacchus Marsh 0 0.0 1 38.0 1 14.0 0 0.0 0 0.0 24.0 WATERWAYS...... 535.2...... 5 147.0 0 1 2 0.0 86.0 51.0 5 147.0 0 0 0 0.0 0.0 0.0 0 0 0.0 0 0 0.0 0.0 0.0 0 0 0.0 0 0 0.0 0.0 0.0 0.0 0 0 0 0.0 0.0 0.0 0.0 0.0 0.0 TABLES TABLES TABLES TABLES TABLES Thomson River Macalister...... River 6 194.5 1 5.0 1 40.0 0 0.0 0 0.0 -35.0 Latrobe River Werribee River Other Totals ...... 15

TABLETotals 1.1: PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITY DURING...... YEAR ENDED 0 30 0.0 JUNE 2001 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 TRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN SOUTHERN RURAL WATER Macalister...... Werribee 2 60.0 Bacchus Marsh 0 0.0 Thomson River 0 0.0 Maribyrnong 0 0.0 Werribee River 0 0.0 Other 0 0.0 1 14.0 3 74.0 TO FROM District District District Waterway River Waterway Waterway Waterways DISTRICT No...... ML 0 No. 0.0 ML 0 No. 0.0 ML 0 No. 0.0 ML 0 No. 0.0 ML 0 No. 0.0 ML 0 No. 0.0 ML 0 No. 0.0 ML 0 0.0 Macalister Werribee...... 148.0 ...... 2 145.7 38.0 0 0 0 0.0 0.0 0.0 3 2 103.0 0 45.7 0.0 0 0 0 0.0 0.0 0.0 1 0 086.0 0.0 0.0 10 0 299.5 0 0.0 0.0 20 0 682.2 0 0.0 0.0 0 1 0.0 38.0 2 45.7 Bacchus Marsh ...... WATERWAYS...... 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 1 5.0 0 0.0 0 0.0 1 86.0 0 0.0 0 0.0 8 245.5 1 86.0 9 250.5 Thomson River ...... 1 50.0 0 0.0 0 0.0 2 98.0 0 0.0 0 0.0 1 40.0 4 188.0 Macalister River Maribyrnong River Werribee River Other Totals ...... 4

TABLE 2 TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITY DURING...... YEAR ENDED 30 JUNE 73 20012802.0 6 204.0 6 348.0 0 0.0 0 0.0 -144.0 SUMMARY Total transfers from other Total transfers to other Total transfers from Total transfers to Net increase/ districts/areas and districts/areas and districts/areas and districts/areas and decrease for Internal transfers within waterways within waterways within waterways of other waterways of other district/area District/area or waterway district/area or waterway Southern Rural Water Southern Rural Water Water Authorities Water Authorities or waterway ...... DISTRICTS...... 0 3 0.0 75.0No.ML 0 0 0.0 0.0 No.ML 0 10 0.0932.8 No.ML 0 0 0.0 0.0 No.ML 0 0 0.0 0.0 No. -932.8 0.0 ML ML Macalister Werribee...... 4 581.0 31 964.6 3 261.0 11 945.8 5 119.0 4 160.0 0 0.0 0 0.0 0 0.0 0 142.0 0.0 785.8 Bacchus Marsh ...... WATERWAYS...... 1 15 5.0985.0 4 160.0 8 624.0 1 13.0 6 622.0 0 0.00 0.0 0 0.00 0.0 147.0 2.0 Thomson River Maribyrnong5412.6 River 32 2194.8 32 2194.8 0 0.0 0 0.0 0.0 Werribee River Other Totals ...... 127

TotalsTABLE 2.1: TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITY DURING YEAR ENDED 30 JUNE 2001 TRANSFERS964.6 10 FROM 932.8 AND TO DISTRICTS/AREAS 0 0.0 0 AND 0.0 WATERWAYS 1 WITHIN 13.0 SOUTHERN 0 0.0 RURAL 42 WATER 1910.4 Macalister Werribee Bacchus Marsh Thomson River Maribyrnong Werribee River Other TO...... FROM 73 2802.0 District 0 0.0 District 0 0.0 District 4 79.0 Waterway 0 River 0.0 Waterway 0 0.0 Waterway 2 125.0 Waterways 79 3006.0 DISTRICT...... 0 0 0.0 0.0No. 0 4 ML160.0 0.0 No. 3 0 ML 75.0 0.0 No. 0 0 ML 0.0 0.0 No. 0 0 ML 0.0 0.0 No. 0 1 ML 0.0 5.0 No. 0 0 ML 0.0 0.0 No. 3 5 ML 165.0 75.0 No. ML Macalister Werribee...... 0 0.0 0 0 0.0 0.0 31 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Bacchus Marsh WATERWAYS...... 3 87.0 0 0.0 0 0.0 1 40.0 0 0.0 0 0.0 19 1482.0 23 1609.0 Thomson3150.0 River ...... 35 1124.6 13 3 1007.8 261.0 9 0 700.0 0.0 0 0 0 0.0 2 4 581.0 18 21 0 1607 0.0 159 0 7607.4 0.0 0 0.0 7 842.0 Maribyrnong River Werribee River Other Totals ...... 79

32 Total9344.6...... 240397.6...... TABLEdistrict 3: IRRIGATION 14405.9 246490.5from1598.63692.4 delivered 128272.78445.0 WATER entitlements 6667.6 0.0USAGE 2012.7 36853.6 FOR 2520.7 0.0 10457.7THE 165126.3Internet YEAR 608.9 0.0 ENDEDTotal 342.30.0 30 3129.6Copy 0.0 JUNE 10457.7 165468.6 2001 342.3 0.0 34042.1 0.0 3471.9 0.0 7945.7 0.0 593.3 0.0 10457.7 207456.4 123.5 0.0 716.8 3471.9 Users in District Diversions from rivers, streams, lakes Total and main channels water rights at offtakes Under Users alloted to (excl. volume water rights/ outside District and passed to domestic District/Area or Waterway diversion other & stock Sales of delivered district from and stock Sales irrigation (District) licences Districts) allowance water in district channels district & domestic usage usage ML ML ML ML ML ML ML ML ML Macalister...... 94196.9 0.0 0.0 0.0 0.0 0.0 0.0 29990.9 7413.4 37404.3 Werribee ...... Bacchus Marsh TABLES TABLES TABLES Total...... TABLES GrossTABLES supplyUsage under 1971.2117044.4 1109.0 0.0 224308.0 0.0 0.0 117307.0 0.0 0.0 34232.0 0.0 0.0 151539.0 0.0 0.0 0.0 0.0 0.0 151539.0 0.0 0.0 0.01297.1 0.0 0.0 9.0 0.0 151539.0 1306.1 Gippsland...... Diverters12549.5 ...... 0.0 0.0 0.0 0.0 0.0 0.0 2160.8 399.8 2560.6 Maribyrnong System Werribee System Bunyip/Tarago System Other Totals ......

TABLE 4: PRIVATE DIVERSIONS FROM WATERWAYS AS AT 30 JUNE 2001 REGULATED Irrigation Stock & Domestic Other...... Total...... 3 332.0 89 48 46811121.8 66 87.5 85 3572.238798.91337.8 1860.54677.5 1 624.9 6581.3 180.2 66.0 721.1 17 18 237 13 44.0 1 122 42.1 670.0 30.4 2.2 311.8 8 5 78 20046.4 400.2 9 30 3383.8 26035.7 2288.3 31212.2 153.4 6998.165504.65 3656.5 5142.7 ...... Authorised Authorised 8 Authorised222.6 38.7 Authorised 7 Authorised 15.4 3 6.6 244.6 Drainage Basin Licence Volume Area Licence Volume Licence Volume Volume No...... ML HA 0 No. 0.0 ML 0.0 No. 1 ML 4.4 ML 0 0.0 4.4 LATROBE RIVER LATROBE RIVER TRIBUTARIES MARIBYRNONG RIVER MOORABOOL...... RIVER 133 16594.1 2759.8 20 46.2 11 35.2 16675.5 THOMSON...... COWWARR CHANNEL 36 940.9 308.6 38 109.8 11 119.8 1170.5 THOMSON MACALISTER THOMSON RIVER WERRIBEE RIVER Total

UNREGULATED Irrigation Stock & Domestic Other ...... Total...... 15 252 12 66 940.27872.06129.7715.0 120.2 810.2 1020.1135.6 28 168 155 68.2 441.8 17.6 33.0 8 62 5 7 20.0 240.6 188.411.0 1028.4 8554.4 6351.1743.6 ...... Authorised Authorised Authorised 121 9763.8 1676.1 Authorised Authorised 31 77.5 19 127.8 9969.1 Drainage Basin Licence Volume Area Licence Volume Licence Volume Volume No. ML HA No. ML No. ML ML AVON...... RIVER 1 6.0 2.0 0 0.0 0 0.0 6.0 BEMM...... RIVER 47 1906.2 17 322.5835.3 130.6 16 37.4 3 6.6 9 78.4 4 2022.0 62.2 904.1 BUNYIP RIVER BUNYIP RIVER WEIRS GLENELG...... RIVER 168 20 7778.7539.5 1180.1 46.7 105 12 255.2 30.8 77 8 1124.3 100.8 9158.2 671.1 HOPKINS...... RIVER 417 75 15807.64369.0 26 3912.71130.9 731.5 116202.1 15 325.8 17 37.4 123 37.4 10 1190.6 8 67.7 17324.0 25.4 4474.1 1193.7 LAKE...... COLAC 56 25 27 1748.63041.42537.8 164.5 409.3 447.0 56 8 8 205.6 17.6 17.6 15 1 1 35.3 4.4 4.4 1989.5 3063.4 2559.8 LATROBE...... RIVER 145 12670.7 2122.0 56 154.0 16 50.6 12875.3 LATROBE RIVER TRIBUTARIES MARIBYRNONG...... RIVER 59 1572.7 405.3 12 28.6 6 107.6 1708.9 MITCHELL...... RIVER 1 24.0 4.0 7 15.4 1 2.2 41.6 MITCHELL RIVER TRIBUTARIES MOORABOOL RIVER NICHOLSON...... RIVER 219 9892.3 1712.7 263 759.0 263 926.0 11577.3 OTWAY...... SYSTEM 16 211211.5 1879657.7 195.595352.7 69.7 9 16462.1 14 26.4 1036 30.8 5 2824.8 5 26.4 675 195.4 1264.3 4684.9 883.9 102862.5 PORTLAND SNOWY...... RIVER 15 702.2 115.3 30 68.2 9 58.6 829.0 SNOWY...... RIVER TRIBUTARIES 35 2770.2 451.2 19 60.2 3 8.8 2839.2 SOUTH...... GIPPSLAND 19 259.7 74.0 22 70.5 9 25.9 356.1 TAMBO...... RIVER LOWER 3 462.7 0.0 0 0.0 1 2.2 464.9 TAMBO RIVER TRIBUTARIES THOMSON MACALISTER THOMSON...... RIVER 1 7.4 1.2 1 2.2 0 0.0 9.6 WERRIBEE RIVER BAY TRIBUTARIES Total

33 TABLE 5: GROUNDWATER EXTRACTIONS ASInternet AT 30 JUNE 2001 Copy

Irrigation Other Total

Authorised Authorised Authorised Authorised Groundwater Management Areas Licences Volume Area Licences Volume Volume

BUNGAREE ...... 84 4719.9 1436.6 6 268.5 4988.4

CONDAH ...... 31 5931.1 930.0 4 97.4 6028.5

CORINELLA ...... 2 73.0 13.0 12 395.6 468.6 ABLES ABLES ABLES ABLES ABLES CUT PAW PAW ...... 2 169.0 28.0 1 342.0 511.0 T T T T T DENISON ...... 67 12757.0 2037.7 58 753.8 13510.8

DEUTGAM ...... 144 5003.7 1553.2 4 539.5 5543.2

FRANKSTON ...... 24 891.2 267.9 6 247.1 1138.3

GERANGAMETE ...... 0 0.0 0.0 1 8000.0 8000.0

GIFFARD 2 ...... 0 0.0 0.0 1 4.0 4.0

GIFFARD ...... 1 1440.0 240.0 0 0.0 1440.0

GIFFARD 1 ...... 12 4330.4 795.0 2 52.0 4382.4

GLENORMISTON ...... 11 2292.1 366.4 24 106.3 2398.4

HEYWOOD ...... 53 5154.2 945.4 35 262.1 5416.3

JAN JUC ...... 0 0.0 0.0 1 4000.0 4000.0

KOO WEE RUP DALMORE 1 ...... 52 995.5 898.3 13 141.6 1137.1

KOO WEE RUP DALMORE 2A ...... 38 797.2 380.7 8 47.0 844.2

KOO WEE RUP DALMORE 2B ...... 71 3049.9 1844.7 21 124.4 3174.3

KOO WEE RUP DALMORE 3 ...... 22 1389.2 572.3 8 32.6 1421.8

KOO WEE RUP DALMORE 4 ...... 28 1677.1 654.3 19 110.3 1787.4

KOO WEE RUP DALMORE 5 ...... 10 491.7 186.5 10 90.6 582.3

KOO WEE RUP DALMORE 6 ...... 13 445.6 167.8 2 118.0 563.6

LAKE MUNDI ...... 46 21455.2 4016.6 2 215.0 21670.2

LANCEFIELD ...... 11 979.2 226.8 1 208.0 1187.2

LANG LANG ...... 19 1935.6 466.8 55 2116.6 4052.2

LEONGATHA ...... 12 1020.3 226.3 22 532.7 1553.0

MERRIMU ...... 9 411.5 134.2 0 0.0 411.5

MOE ...... 18 2167.1 372.1 54 401.1 2568.2

MOORABBIN ...... 26 1863.2 469.3 2 162.5 2025.7

NEPEAN 1 ...... 5 254.0 54.2 3 17.0 271.0

NEPEAN 2 ...... 55 4825.7 1225.1 3 22.0 4847.7

NON GMA ...... 562 40786.2 8848.9 534 10453.0 51239.3

NULLAWARRE ...... 104 21221.6 3464.9 106 793.5 22015.1

ORBOST ...... 2 1200.0 202.0 0 0.0 1200.0

PAARATTE ...... 0 0.0 0.0 3 1009.0 1009.0

PORTLAND ...... 3 230.1 64.1 3 1374.0 1604.1

ROSEDALE 1 ...... 27 9246.5 1600.2 5 189.4 9435.9

ROSEDALE 2 ...... 17 5932.1 989.5 6 1675.7 7607.8

SALE ...... 84 16983.6 4079.5 11 4040.2 21023.8

SEACOMBE ...... 34 11661.7 2047.6 6 2887.2 14548.9

TARWIN ...... 1 2.0 0.3 1 38.0 40.0

WA-DE-LOCK 1 ...... 57 10368.1 1729.5 54 387.1 10755.2

WA-DE-LOCK 2 ...... 68 11726.0 2006.5 44 267.2 11993.2

WA-DE-LOCK 3 ...... 4 779.7 148.3 1 160.0 939.7

WANDIN YALLOCK ...... 158 2607.2 811.7 5 70.2 2677.4

WARRION ...... 98 13820.6 2315.8 28 347.2 14167.8

WY YUNG 1 ...... 7 689.0 127.7 0 0.0 689.0

WY YUNG 2 ...... 48 5331.2 1069.7 0 0.0 5331.2

WY YUNG 3 ...... 11 893.3 139.4 0 0.0 893.3

YANGERY ...... 114 11382.9 2364.1 53 3105.0 14487.9

AWAITING GMA ASSESSMENT ...... 6 448.2 94.50 5 49268.0 49716.2

Other Areas ...... 19 3150.8 510.2 21 2026.3 5177.1

Total ...... 2290 254980.4 53123.6 1264 97498.8 352479.3

34 Internet Copy

GIPPSLAND & SOUTHERN RURAL WATER AUTHORITY STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2001 NOTES 2000-2001 1999-2000 $’000’s $’000’s REVENUE OPERATING REVENUE Water Rates & Charges 2 9,724 9,313 Storage Operator Charges 3 3,422 3,463 Government Grants for Services 1.3, 4 2,683 801 Other Revenue 6 207 326 External Services Contracts 109 150 FINANCIALFINANCIAL REPORT REPORT FINANCIAL REPORT FINANCIALFINANCIAL REPORT REPORT

Interest on Overdue Accounts 77 66 NON-OPERATING REVENUE Interest on Investments 649 576 Government Contribution for Capital Purposes 1.3, 4 - 137 Proceeds from Sale of Fixed Assets 5 335 500 Revenues from Ordinary Activities 17,206 15,332

LESS OPERATING EXPENSES Operations 4,750 5,583 Depreciation of Fixed Assets 1.5, 12 5,283 4,228 Administration 3,332 2,815 Maintenance 2,494 1,895 Written Down Value of Disposed Assets 5 819 721 Transfer of Assets 7 - 7,339 Expenses from Ordinary Activities 16,678 22,581

Profit (Loss) Attributable to the Authority 528 (7,249) Increase in Asset Revaluation Reserve 15(c) 2,754 69,041 Total Changes in Equity Other than those resulting from transactions with owners as owners 3,282 61,792

The accompanying notes form part of these financial statements.

35 Internet Copy

GIPPSLAND & SOUTHERN RURAL WATER AUTHORITY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2001 NOTES 2000-2001 1999-2000 $’000’s $’000’s CURRENT ASSETS Cash Assets 1.12, 23 6,811 3,666 Receivables 9 2,659 2,394 Other Financial Assets 1.6, 10 5,000 1,500 Inventories 1.7 144 179 Other 147 63 Total Current Assets 14,761 7,802

NON-CURRENT ASSETS Other Financial Assets 1.6, 10 1,208 6,208 Property, Plant & Equipment 1.4, 11 425,653 425,328 Total Non-Current Assets 426,861 431,536 Total Assets 441,622 439,338

CURRENT LIABILITIES Payables 13 1,417 2,044 Advances for capital and other works 118 68 Provision for employee entitlements 14 570 745 Total Current Liabilities 2,105 2,857

NON-CURRENT LIABILITIES Provision for employee entitlements 14 862 727 Total Non-Current Liabilities 862 727 Total Liabilities 2,967 3,584 Net Assets 438,655 435,754

EQUITY Contributed capital 15(a) 363,157 370,496 Asset revaluation reserve 15(c) 71,795 69,041 Retained profits 15(b) 3,703 (3,783) Total Equity 438,655 435,754

The accompanying notes form part of these financial statements.

36 Internet Copy

GIPPSLAND & SOUTHERN RURAL WATER AUTHORITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2001 NOTES 2000-2001 1999-2000 $’000’s $’000’s CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 13,623 13,251 Receipts from Government 2,293 938 Payments to suppliers and employees (11,208) (8,773) Interest and bill discount received 655 576 Net Cash provided by Operating Activities 24 5,363 5,992

CASH FLOWS FROM INVESTING ACTIVITIES Payment for property, plant and equipment (3,674) (6,339) Proceeds from (Payment for) investment - term deposit 1,501 (1,442) Proceeds from sale of property, plant and equipment 335 500 Net Cash used in Investing Activities (1,838) (7,281)

CASH FLOWS FROM FINANCING ACTIVITIES Dividend Payment to Government (380) (418) Net Cash used in Financing Activities (380) (418)

Net Increase/(Decrease) in Cash Held 3,145 (1,707)

Cash Held at the Beginning of the Year 3,666 5,373

Cash Held at the End of the Year 23 6,811 3,666

The accompanying notes form part of these financial statements.

37 Internet Copy ent s

1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES 1. 1 Est abl i shment of t he Aut hor i t y Gippsland and Southern Rural Water Authority (SRW) was established on 1 July 1995, by a Ministerial Order under section 98 of the Water Act 1989, dated 30 June 1995. 1.2 Accounting basis The Financial Statements are a general purpose financial report that has been prepared in accordance with applicable Accounting Standards and other mandatory professional reporting requirements (Urgent Issues Group Consensus Views), and provisions of the Financial Management Act 1994. The Financial Statements have been prepared on an accrual basis and in accordance with historical cost convention, except for the valuation of infrastructure assets, which are recorded at current written down replacement value. The accounting policies adopted in preparing the Financial Statements are consistent with those of the previous year. 1.3 Government Grants Programs such as state water assessment, groundwater investigations, salinity investigations, establishment of groundwater management areas, and water resource management, are performed under agreements with the Victorian Government. The reimbursement of the cost of these services for recurrent purposes is included as “ Government Grants for Services” and for capital purposes as “ Government Contribution for Capital Purposes” in the Statement of Financial Performance. The cost of the provision of these services is included in the “ Operating Expenses”. 1.4 Property, Plant & Equipment Fixed assets of the Authority are recorded in the books of account as follows; (a) Fixed assets, other than infrastructure assets, which were acquired prior to 1 July 1994, are shown at estimated written down historical cost; those acquired since 1 July 1994 are shown at cost. (b) Infrastructure assets acquired prior to 30 June1999 were revalued during 1999/2000 and are shown at estimated current written down replacement value. Those acquired after 1 July 1999 are shown at cost. (c) In the case of assets constructed by the Authority, on-site overheads are included in the cost of the assets. i ng Par t of t he Fi nanci al St at em (d) Individual items of plant costing less than $1000 are expensed in the year of purchase. (e) As the Authority is a not-for-profit entity, it has not reviewed the carrying amount of its non-current assets in accordance with the provisions of Australian Accounting Standard AAS10 “ Recoverable Amount of Non-Current Assets”. (f) In accordance with the Authority’s policy of revaluing assets every five years, a revaluation of infrastructure assets as at 1 July 1999 was undertaken during 1999/2000. Headworks infrastructure assets were revalued by the Snowy Mountains Engineering Corporation (Mr T Reid B Eng (Civil), Dip Civil Eng, FIEA, MAGS and Mr Colin Rudd B Eng(Civil),Grad Cert Water Eng, Grad Dip Mgmt, MIEA). Irrigation distribution infrastructure assets were revalued by SRW officers (Mr Paul Byrnes B Eng (Ag)(Hons), Grad Cert Water Eng, Grad Dip GIS and Remote Sensing and Ms Lucy Hluszko B Eng (Civil & Computing)). 1.5 Depreciation Depreciation, using the straight line method, is provided on depreciable assets and charged against revenue on the basis of allocating the cost of the assets over their estimated useful life. Depreciation is provided for six months in the year the asset comes into service and for six months in the final year of useful life. Major classes of assets and their values are included in note 11

ot es t o and f or m Depreciation rates depend on life expectancy. In general the rates used are: N Item Rate Storages 0-1% } Variable, depending upon Channels 1-2% } the condition based Pipelines 1-2% } remaining useful life of the asset. Buildings 2.5% Plant and equipment 10% Office furniture and equipment 5% to 33.3% Motor Vehicles 12.5% 1.6 Investments Authority funds are invested in accordance with Treasury and Investment powers granted to the Authority under the Borrowing and Investment Powers Act 1987. All investments with a maturity date within 12 months of balance date are classified as current assets, unless there exists a probable intention to reinvest the full amount of the investment beyond that period. All other investments are classified as non current. 1.7 Inventories Inventories consist of materials and supplies for asset construction, system operation and general maintenance and are valued at the lower of cost or net realisable value. 1.8 Employee entitlements Employee entitlements consist of provisions for long service leave and annual leave. Long service leave provision is recognised and is measured as the present value of expected future payments to be made in respect of services provided by employees up to reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates on national Government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash flows. The current liability for long service leave represents the estimated amount of leave to be taken in the next twelve months, with the remainder of the provisions being considered as non-current. A provision for sick leave was not necessary as it is not likely that sick leave in future periods would exceed entitlements expected to accrue in those periods.

38 Internet Copy

1.9 Insurance The Authority is covered by policies obtained through a number of underwriters for both property and legal liabilities. The Authority self insures for any amounts below policy deductible limits. No provision is made for potential claims. They are expensed as they occur. Any unsettled claims have been disclosed as contingent liabilities in the notes to the financial statements. 1.10 Operating Leases Where the Authority has a lease, but does not assume, substantially, all the risks and benefits associated with the ownership of the asset, the lease payments are expensed in the year they are incurred. 1.11 Superannuation The Authority contributes in respect of its employees to a number of superannuation schemes administered by the Government Superannuation Office, Local Authorities Super Pty Ltd and other authorised Superannuation Funds. The amounts of these contributions are determined by each scheme’s actuary in accordance with statutory requirements or in accordance with Superannuation Guarantee Legislation. The Authority’s statutory contributions to these schemes are recorded as a superannuation expense. (Note 20) 1.12 Cash at Bank and on Hand Cash at bank and on hand includes petty cash on hand and SRW bank account balance at year end. 1.13 Bad and Doubtful Debts A provision is made for any doubtful debts based on a review of all receivables at balance date. Bad debts are written off in the period in which they are identified. 1.14 Revenue Revenue is brought into account when services have been provided or when a rate is levied or determined. Charges for water delivered are either charged progressively during the year or accrued at 30 June based on actual meter readings. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. The value of goods and services provided free of charge would be recognised as revenue when the Authority gained control of them. No goods or services were provided free during 2000-2001. Government grants for service are recognised as revenue at the earlier of the grant being received or invoiced. In Accounting for the sale of fixed assets, gross proceeds from the sales of fixed assets are included as non operating revenue and written down value of the assets sold is disclosed as an operating expense. Details of the gains and losses on disposal of fixed assets are shown in note 5. All revenue is stated net of the amount of goods and services tax (GST). 1.15 Comparative Figures Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.

2000-2001 1999-2000 $’000’s $’000’s 21,618WATER RATES 1,149 & CHARGES Rates & Charges - Irrigation, Diversions & Groundwater ...... 7,624 7,640 Sales - Irrigation & Diversions ...... Other Charges - Bores, Drilling & Grazing Licences ...... 482 524 9,724 9,313 34,778STORAGE OPERATOR 4,721 CHARGES Total charges ...... Charges to retail business ...... (1,356) (1,258) Charges to other organisations ...... 3,422 3,463 4 GOVERNMENT GRANTS ...... For Services 28 - State Government - Salinity Projects ...... 18950 State Government - People Management ...... 3 - State Government - Tree Planting ...... 3- State Government - Youth Employment Scheme State Government - Establishment of Groundwater Management Areas ...... 1,666 748 State Government - Water for Growth Initiative...... 681 - State Government - Water Savings Plan for Macalister Irrigation District ...... 100 - State Government - Recreational Water Safety Initiative ...... 13 - State Government - Latrobe REALM Model ...... - 3 2,683 801 For Capital Purposes State Government - Salinity Projects - Capital ...... - 137 5 PROFIT / (LOSS) FROM SALE OF FIXED ASSETS Proceeds from Sale of Fixed Assets ...... 335 500 Written Down Value of Disposed Assets ...... (819) (721) Profit / (Loss) from Sale of Fixed Assets ...... (484) (221) 6...... OTHER REVENUE Royalties ...... 108 66 Other ...... 99 260 207 326

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2000-2001 1999-2000 $’000’s $’000’s 7 TRANSFER OF ASSETS Transfer of Assets for the Woady Yaloak Diversion Scheme, transferred to the Corangamite Catchment Management Authority as at 1 July 1999, in accordance with a Ministerial Order dated 19 August 1999. Operation and maintenance of the scheme is now the statutory responsibility of the Corangamite CMA.Refer to Note 15. . - (7,339) 8 AUDIT FEES Financial Statements Audit ...... 21 20 21 20 9 RECEIVABLES Water consumers and other external clients...... 2,689 2,42 Less Provision for Doubtful Debts (refer note1.13) ...... (30) (30) 2,659 2,394 Most debts of the Authority are secured against property. For this reason the Authority has only a $30,000 provision for doubtful debts for general business debtors.

9.1...... BAD & DOUBTFUL DEBTS Bad Debts Expense -- No amounts have been written off as unrecoverable during the reporting period. 10 OTHER FINANCIAL ASSETS Current Interest bearing deposit - current ...... 5,000 1,500 5,000 1,500 Non Current *Interest bearing deposit - non-current ...... 1,208 6,208 Total ...... 6,208 7,708 * This investment has been established to offset a bank guarantee to Water Corporation, for water supplied from the Thomson Reservoir. The guarantee is exercisable only if SRW are unable to redeem the water used from future water allocations (refer note 26). 11 PROPERTY, PLANT & EQUIPMENT (Refer notes: 1.4, 1.5) Land 4,473At Cost ...... 3,638 ...... 5,466 5,466 Infrastructure415,170 Assets 412,880 At Cost ...... At Valuation ** ...... Accumulated1,197 Depreciation 1,197 ...... (4,891) - 414,752 416,518 Buildings At Cost ...... Accumulated2,193 Depreciation 2,079 ...... (192) (161) 1,005 1,036 Furniture, Fittings and Computer Equipment At Cost ...... Accumulated Depreciation ...... (1,445) (1,281) 748 798 Plant1,508 and Machinery 1,492 At Cost ...... 652 609 Accumulated1,219 Depreciation 1,224 ...... (351) (323) 301 286 Motor Vehicles At Cost ...... Accumulated Depreciation ...... (289) (268) ...... Total2,162 Property, Plant & Equipment - ...... 423,491 425,328 Capital WIP ...... 425,653 425,328 A revaluation of infrastructure assets has been undertaken as at 30 June 1999. ** Refer note1.4(f)

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11.1 Movements in Fixed Assets Furniture, Infra- Fittings & structure Computer Plant & Motor Land Assets Equip. Machinery Vehicles Buildings Total $’000’s $’000’s $’000’s $’000’s $’000’s ...... $’000’s $’000’s...... ----5,466 416,518 798 -2,754 465 286 1,224 - 1,036 - 425,328 354 - 819 Balance at Beginning

Additions ...... - 835 114 47 515 - 1,511 Disposals Revaluation Increments ...... - 2,754 Depreciation Expense ...... - 4,891 164 31 166 31 5,283 Carrying Amount at the end of the Year ...... 5,466 414,752 748 301 1,219 1,005 423,491

2000-2001 1999-2000 $’000’s $’000’s

124,891DEPRECIATION...... 3,663 31 41 Infrastructure Assets ...... Buildings ...... 31 37 Furniture, Fittings and Computer Equipment ...... 164 304 Plant and Machinery Motor Vehicles ...... 166 183 5,283 4,228 13 PAYABLES Trade Creditors & Accrued Expenses ...... 1,277 1,932 Payroll Related Accruals ...... 140 112 1,417 2,044 14...... PROVISION...... FOR EMPLOYEE ENTITLEMENTS Long Service Leave 95 294 Current ...... Annual 110 Leave 109 475 451 570 745 Non-current ...... Long Service Leave 862 727 Total ...... 1,432 1,472 Number of Employees at year end 15 ...... EQUITY 370,496 370,496 15(a) Contributed Capital Balance 1 July 2000 Transfer to Retained Profits ...... (7,339) - Balance 30 June 2001 ...... 363,157 370,496 On 1st July 1999 the Woady Yaloak Diversion Scheme was transferred to the Corangamite Catchment Management Authority in accordance with a Ministerial Order dated 19 August 1999. This transfer was processed through the Statement of Financial Performance as Abnormal Expenditure at 30 June 2000. This amount has now been transferred to Retained Profits as at 30 June 2001. 15(b) Retained Profits Retained Profits at the beginning of the financial year ...... (3,783) 3,884 Net Profit Attributable to the Authority ...... 528 (7,249) Dividends Paid to Government ...... (380) (418) Transfer from Contributed Capital - see note 15 ...... 7,339 - Retained Profits at the end of the financial year...... 3,703 (3,783) ...... 15(c) 2,754...... Asset Revaluation Reserve - 69, Opening Balance 041 - Revaluation increment in infrastructure assets ...... - 69,041 Adjustment to Reserve ** ...... Closing Balance 71,795 69,041 The asset revaluation reserve records revaluations of non-current assets. ** The Authority has made an adjustment of $2,753,683 against the Asset Revaluation Reserve. This amount relates to an error in the original asset revaluation exercise, and is included in the value of the Authority’s Infrastructure Assets at Valuation. This entry has been processed in accordance with AAS38, and is one of the few instances where Retained Earnings is not directly adjusted.

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2000-2001 1999-2000 $’000’s $’000’s 16 CONSULTANTS Consultants were engaged by the Authority in 2000-2001 to assist with: Occupational Health and Safety, Workcover Management, IT Systems Development and General Public Relations. Consultancies let 2000-2001 ...... 119 156 There were no individual consultancies in excess of $100,000. 17 LEASE COMMITMENTS Operating Lease Commitments Being for leases of motor vehicles payable: — not later than 1 year ...... 122 143 — later than 1 year but not later than 5 years ...... 49 33 — later than 5 years ...... - - 171 176 The motor vehicle leases are non-cancellable leases with two year term, with rent payable monthly in advance. 181,468CAPITAL COMMITMENTS 517 Capital expenditure contracts outstanding: — not later than 1 year ...... — later than 1 year but not later than 5 years ...... - - — later than 5 years ...... - - This represents commitments outstanding on contracts for Capital Works. All outstanding works will be completed during 2001-2002. There is no actual liability for this amount at 30 June 2001. 19 TRANSACTIONS WITH OTHER VICTORIAN GOVERNMENT CONTROLLED ENTITIES During the 2000-2001 financial year transactions were undertaken with other Victorian Governement controlled entites. These transactions are summarised as follows:...... 2000-2001 1999-2000 $’000’s $’000’s $’000’s $’000’s Intra Inter Intra 5,342Inter...... 371 3,522 383 Assets ...... 745 26 738 1 Liabilities ...... 13 3 149 27 Revenues ...... Expenses ...... 186 734 353 750 ‘Intra’ Transactions are between entities within the Natural Resources and Environment portfolio. ‘Inter’ Transactions are with entities outside the portfolio and controlled by the Victorian Government.

20 SUPERANNUATION 2000-2001 1999-2000 $’000’s $’000’s Employees of the Authority contribute to a number of superannuation funds. Details are as follows: (a) State Superannuation Fund - New Scheme...... Employer Contribution 121 111 (Defined Benefit Scheme)...... Contribution Rate 9.3% Various 9.3% Various (b) State Superannuation Fund - Revised Scheme...... Employer Contribution 85 89 (Defined Benefit Scheme)...... Contribution Rate 14.00% 14.00% (c) SSF - State Employees Retirement Benefits Fund...... Employer Contribution 21 21 (Defined Benefit Scheme)...... Contribution Rate 12.10% 12.10% The Victorian Government holds the responsibility for any unfunded liability for State Superannuation Fund Schemes and is therefore responsible for reporting that liability. (d) Local Authorities Superannuation Board (LASPLAN) ...... Employer Contribution 210 140 (Accumulation Scheme) ...... Contribution Rate 7.00% 7.00% (e) Local Authorities Superannuation Board (LASB)...... Employer Contribution 41 11 (Accumulation Scheme) ...... Contribution Rate 9.25% 9.25% (f) Other Superannuation Schemes ...... Employer Contribution 206 20 (Accumulation Schemes) ...... Contribution Rate 8.00% 8.00% No loans have been provided to the Authority from any of the above schemes. There are no contributions outstanding as at 30th June 2001. Unfunded Superannuation Liabilities Unfunded Liabilities are defined as the difference between the present value of members’ accrued benefits and the net market value of a superannuation scheme’s assets at the reporting date. The Authority is responsible for any unfunded liabilities arising from 1 July 1992 on defined benefits superannuation schemes which it sponsors in respect of its employees. * Local Authorities Superannuation Schemes As at 30 June 1999, the Authority had discharged its liability in respect of this scheme and has been informed that, at 30 June 2001, the scheme remains fully funded. * State Superannuation Fund The Authority has no unfunded liability in respect of its employees who are members of schemes in this fund. This liability has been assumed by the State Government and is disclosed in its financial statements.

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21 FINANCIAL INSTRUMENTS 21(a) Terms, Conditions and Accounting Policy The Authority’s accounting policy including the terms and conditions of each class of financial asset, liability and equity instruments, both recognised and unrecognised as the balance date, is as follows: Statement of Recognised Financial Financial Position Instruments Notes Accounting Policies Terms and Conditions FINANCIAL ASSETS Cash at bank and on hand 23 Cash is stated at its nominal amount. The Authority does not have an overdraft Surplus Authority funds are held in the facility but has access to TCV funds. The bank account. Bank accounts attracted an average 4.5% interest rate for the year. Term Deposits 10 Term deposit is stated at its nominal The Authority has two term deposits for amount. Interest revenue is recognised $1.207 and $5 million with a fixed interest in the operating statement when it is term for a 15 month maturity, current earned. interest rate 6.5%. Debtors 9 Debtors are stated at their nominal For rates and charges debtors outstanding amounts due less any provision for as at 30th June 2001, payment is overdue. doubtful debts. A doubtful debts Normal terms are 30 days from date of provision is made for any amounts which invoice. are considered unlikely to be collectable. FINANCIAL LIABILITIES Creditors and Accruals 13 Creditors and accruals are recognised Terms for the payment of creditors are 30 for future amounts to be paid in respect days after the end of the month in which of goods and services received, the goods and services are received or whether or not billed to the Authority. services rendered or within 30 days from the receipt of invoice, whichever is the later. 21(b) Interest Rate Risk The Authority’s exposure to interest rate risk and the effective interest rates of financial assets and liabilities, both recognised and unrecognised at the balance date, are as follows: Recognised Total Carrying Weighted Average Financial Floating Fixed Non-Interest amount as per the effective Instruments Interest Rate Interest Rate Bearing Balance Sheet interest rate 2000-20011999-2000 2000-20011999-2000 2000-20011999-2000 2000-20011999-2000 2000-2001 1999-2000 $ ‘000’s $ ‘000’s $ ‘000’s $ ‘000’s $ ‘000’s $ ‘000’s $ ‘000’s $ ‘000’s % ...... % 6,811 3,666 - - - - 6,811 5,373 5.43% 4.73% FINANCIAL...... ASSETS - - - - 2,659 2,394 2,659 2,328 Cash Term Deposit- Investment .. - - 6,208 7,708 - - 6,208 6,266 6.41% 5.50% Debtors Total Financial Assets ...... 6,811 3,666 6,208 7,708 2,659 2,394 15,678 13,967 FINANCIAL LIABILITIES Creditors and Accruals ...... - - - - 1,417 2,044 1,417 2,044 - - Advances for Capital & Other Works - - - - 118 68 118 68 - - Total Financial Liabilities ..... - - - - 1,535 2,122 1,535 2,112

21(c) Net Fair Values The aggregate net fair values of financial assets and liabilities, both recognised and unrecognised at the balance date, are as follows: Total Carrying amount per Recognised Financial Instruments Statement of Financial Position Aggregate Fair Value 2000-2001 1999-2000 2000-2001 1999-2000 $ ‘000’s $ ‘000’s $ ‘000’s $...... ‘000’s 6,811 3,666 6,811 3,666 FINANCIAL...... ASSETS 2,659 2,394 2,659 2,394 Cash Term Deposit - Investment ...... 6,208 6,266 7,708 6,266 Debtors Total Financial Assets ...... 15,678 12,326 17,178 12,326 FINANCIAL LIABILITIES Creditors and Accruals ...... 1,417 2,044 1,417 2,044 Advances for Capital & Other Works ...... 118 68 118 68 Total Financial liabilities ...... 1,535 2,112 1,535 2,112 Carrying amounts reflect fair value for all recognised financial instruments identified. 21(d) Credit risk exposure The Authority’s maximum exposure to credit risk at balance date for each class of recognised financial assets is the carrying amount of those assets as disclosed in the Statement of Financial Position.

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21(e) Concentration of credit risk The Authority’s exposure to credit risk is low, as most of the revenue transactions represent a charge on the property or are under a Bulk Entitlements Order. Credit risk is managed in the following ways: — Payment is 30 days or instalments for some customers. — Overdue payments are referred to debt collector approximately 6 weeks after becoming over due. 22 RETAIL AND WHOLESALE OPERATIONS Wholesale Operations Retail Operations 2000-2001 1999-2000 2000-2001 1999-2000 $’000’s $’000’s...... $’000’s $’000’s...... - - 9,724 67 9,313 110 4,005 2,446 Storage Operator Charges ...... 4,750 4,591 28 130 Retail Usage Charges Other Revenue TOTAL REVENUE ...... 4,817 4,701...... 13,757 11,889 1,6911,649 1,773 937 6,384 3,635 6,438 3,291 Operating & Maintenance Expenses Depreciation Administration, Finance & Other Expenses ...... 706 562 2,625 2,241 Internal Storage Operator Costs* ...... - - 1,356 1,258 Other Bulk Supply Charges ...... - - - - TOTAL EXPENSES ...... 4,046 3,272 14,000 13,228 Total Profit/(Loss) for the year ...... 771 1,429...... (243) ...... (1,339) 7,466 6,003289,799 2,296 287,940 299 135,854 137,387 * Internal Charge eliminated in Operating Statement Investments ...... - - 5,000 7,708 Other Assets Fixed Assets Total Assets ...... 297,265 293,943 143,150 145,394 Cash Flow information; Cash Used in Investing Activities ...... (753) (3,637) (1,085) (3,644) Cash From Finance Activities ...... (380) (418) - - Wholesale operations account for the harvesting and storage of water on behalf of external and internal customers who hold bulk water entitlements in that storage. The internal Storage Operator Charges are included in the revenue of the Wholesale Business and the expense of the Retail Business above and are eliminated in the Operating Statement. To reconcile this Note to the Authority Operating Statement, subtract $1356 from the Storage Operator Charges above of $4750 + $28, which results in the Storage Operator Charges figure of $3422 in the Operating Statement. The corresponding internal expenditure elimination is already shown above. Transfer pricing to internal customers is based on full cost recovery with zero rate of return. 23 RECONCILIATION OF CASH 2000-2001 1999-2000 $’000’s...... $’000’s 6,8 For the purposes of the statement of cash flows, cash includes cash on hand and at bank, and investments in money market instruments. Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related item in the Statement of Financial Position as follows: Cash on hand and at bank 11 3,666 24 ...... RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO5,283 PROFIT FROM ORDINARY 4,228 ACTIVITIES FOR THE YEAR Profit / (loss) from Ordinary Activities ...... 528 (7,249) Depreciation ...... Increase/(Decrease) in provision for employee entitlement ...... (41) 34 Change in operating assets and liabilities: Decrease/(Increase) in inventories ...... 35 (21) Decrease...... / (Increase) in trade receivables ...... 7,339 - (265) (65) Decrease / (Increase) in other assets ...... (84) (10) Increase / (Decrease) in advances for capital ...... 50 8 Increase/(Decrease) in trade creditors ...... (627) 1,507 Loss / (Gain) on sale of fixed assets ...... 484 221 Loss on abnormal transfer of Woady Yaloak Scheme Net Cash Provided by Operating Activities...... 5,363 5,992 25 RESPONSIBLE PERSONS DISCLOSURE The names of the Responsible Persons of Gippsland and Southern Rural Water Authority during 2000-2001 are: Minister for Environment and Conservation - Hon. Sherryl Garbutt MP. Members of Authority Board: Mr A Pappin (Chairman); Dr G Walsh (Deputy Chairman); Mr G Crick; Mr P Foster; Mr D Koch; Mrs J Liley; Mrs J McMillan; Mr J Nicol; Mr J Tilleard. The Chief Executive is Dr Martin Kent (Accountable Officer). Remuneration received, or due and receivable by Responsible Persons from the Authority, amounted to $177,889 (1999-2000 $177,889).

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Number of Responsible Persons from the Authority are shown below in their relevant remuneration bands: 2000-2001 1999-2000 $0 - $9,999 ...... - - $10,000-$19,999 ...... 7 7 $20,000-$29,999 ...... 1 1 $30,000-$39,999 ...... 1 1 There were no retirement benefits paid in conjunction with the retirement of Responsible Persons, nor were there any transactions between the Authority and any Responsible Person other than those which occurred within the normal arms length transaction between the Authority and its customers. The number of Executive Officers whose total remuneration exceeds $100,000 during 2000-2001 are shown below in their relevant income bands: 2000-2001 1999-2000 $100,000-$109,999 ...... - 1 $120,000-$129,999 ...... 1 1 $130,000-$139,999 ...... 1 - The total remuneration for the year of the above Executive Officers amounted to $253,622 (1999-2000 $230,000). 26 CONTINGENT LIABILITIES The Authority has a contingent liability for water obtained from Corporation from the Thomson Reservoir in accordance with an Agreement signed on 6 June 2000. The Bank Guarantee may be exercised in accordance with clause 13 of the Agreement if SRW is unable to repay water volumes owed by it as detailed in Schedule 1 of the Agreement, which provides for repayment over a nominal five year period. The total value of the Bank Guarantee is $1,207,500. SRW has established an interest bearing deposit (see note10) as security against the Bank Guarantee, which remains in place until the above obligations have been met.

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21(e) Concentration of credit risk The Authority’s exposure to credit risk is low, as most of the revenue transactions represent a charge on the property or are under a Bulk Entitlements Order. Credit risk is managed in the following ways: — Payment is 30 days or instalments for some customers. — Overdue payments are referred to debt collector approximately 6 weeks after becoming over due.

COMPLIANCE INDEX The Annual Report of the entity is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index has been prepared to facilitate identification of compliance with statutory disclosure and other requirements.

COMPLIANCE INDEX CLAUSE DISCLOSURE PAGE...... 10-29 30 3 REPORT...... OF OPERATIONS 2, 30 Charter...... & Purpose 2, 3, 30 9.1.3 (i) (a) Manner of establishment and Relevant Minister 9.1.3...... (i) (b) Objectives, 30 functions, powers and duties 9.1.3...... (i) (c) Services provided and 30persons or sections of community served Management...... & Structure 30 30 9.1.3 (i) (d) (i) Names of governing board members, audit committee and chief executive officer 9.1.3 (i) (d) (ii) Names of senior offic holders and brief description of each office 9.1.3 (i) (d) (iii) Chart setting out organisational structure 9.1.3...... (i) (e) Workforce data and application 11 30 of merit and equity principles NA 9.1.3...... (i) (f) Application 42 and operation of FOI Act NA 1982 Financial...... and Other Information 30 10-29 9.1.3...... (ii) (a) Summary of financial results with previous four 30 year comparatives 9.1.3 (ii) (b) Summary of significant changes in financial position 9.1.3 (ii) (c) Operational and budgetary objectives for the year and performance against those objectives 9.1.3...... (ii) (d) Major changes or 30 factors affecting achievement of objectives 9.1.3 (ii) (e) Events subsequent to balance date 9.1.3 (ii) (g) Consultancies <$100,000 — Number and total cost of consulting engagements 9.1.3 (ii) (h) Extent of compliance with Building Act 1993 9.1.3 (ii) (i) Statement that information listed in Part 9.1.3 (iv) is available on request 9.1.3 (ii) (k) Statement on implentation and compliance with National Competition Policy 9.8.2 (i) A statement of Occupational health and Safety (OHS) matters 9.8.2 (ii) OHS performance measures ...... 30 FINANCIAL...... 38STATEMENTS 38 38 Preparation 9.2.2 (ii) (a) Statement of preparation on an accrual basis 9.2.2...... (ii) (b) Statement of compliance with Australian 35 Accounting Standards and associated pronouncements 9.2.2...... (ii) (c) Statement of compliance NA with accounting policies issued by the Minister for Finance Statement35,...... 39 of Financial Operations 40, 41 9.2.2...... (i) (a)35, 39 A statement of financial operations for the year 9.2.3 (ii) (a) Operating revenue by class ...... 9.2.3...... (ii) (b) Investment income by class ...... 35 ...... 9.2.3 (ii) (c) Other material 41 revenue by class including sale of non-goods assets and contributions of assets 9.2.3 (ii) (d) Material revenues arising from exchanges of goods or services 9.2.3 (ii) (e) Depreciation, amortisation or diminution in value 9.2.3 (ii) (f) Bad and doubtful debts ...... 40 36, 40 36 9.2.3 (ii) (g) Financing costs ...... NA 9.2.3 (ii) (h) Net increment or decrement on the revaluaiton of each category of assets 9.2.3 (ii) (i) Auditor-General’s fees ...... 40 Statement...... of Financial Position 9.2.236, 44 (i) (b) A statement of financial position for the year Assets...... 36, 38 9.2.3 (iii) (a) (i) Cash at bank or in hand ...... 36 9.2.3 (iii) (a) Iii) Inventories by class ...... 36, 40 9.2.3...... (iii) (a) (iii) Receivables, including trade debtors, loans and other debtors 9.2.3...... 36, 41 (iii) (a) (iv) Other assets, including prepayments 9.2.3 (iii) (a) (v) Investments by class ...... 9.2.3 (iii) (a) (vi) Property, plant and equipment ... 40, 41 9.2.3 (iii) (a) (vii) Intangible assets ...... NA Liabilities...... 36, 41 9.2.3 (iii) (b) (iii) Trade and other creditors ...... 9.2.3 (iii) (b) (v) Provisions, including employee entitlements 36,...... Equity...... 41 36, 41 37 9.2.3 (iii) (c) (i) Authorised capital ...... NA 9.2.3 (iii) (c) (ii) Issued capital ...... 9.2.3 (iii) (d) Reserves, and transfers to and from reserves (shown separately) Statement...... of Cash Flows 39 9.2.2 (i) (c) A statement of cash flows for the year Notes...... to the Financial Statements 44, 45 4 9.2.3 (iv) (b) Contingent liabilities ...... 45 9.2.3 (iv) (c) Commitments for expenditure ...... 42 42 9.2.3 (iv) (d) Government grants received or receivable and source 9.2.3 (iv) (e) Employee superannuation funds 2 9.4.2 Transactions with responsible persons and their related parties 9.7.2 Motor vehicle lease commitments

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Southern Rural Water

88 Johnson Street PO Box 153 Maffra Victoria 3860

Telephone: (03) 5139 3100 Facsimile: (03) 5139 3150 Email: [email protected] Website: www.srw.com.au

Southern Rural Water - Annual Report 2000 - 2001