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East Gippsland Water Annual Report 2010/11

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East Gippsland Water Annual Report 2010/11 East Gippsland Water Annual Report 2010/11 East Gippsland Water East Gippsland Water Annual Report 2010/11 HEAD OFFICE 133 Macleod Street Bairnsdale 3875 PO Box 52 Bairnsdale 3875 T: 1300 720 700 F: 03 5150 4477 E: [email protected] www.egwater.vic.gov.au 24 hour emergency and faults service 1300 134 202 © State of Victoria, East Gippsland Water Corporation 2011. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Printed on recycled paper. For more information on this Annual Report contact East Gippsland Water’s Communications Manager (ph: 1300 720 700, E-mail [email protected]) ISSN 1837-2449 At a glance East Gippsland Water’s Region East Gippsland Water serves an area of 21,000 square kilometres The Corporation has nine separate water supply systems that in the east of Victoria, which boasts some of Australia’s most serve the communities of Bairnsdale, Bemm River, Bruthen, diverse and spectacular scenery and a population of some 41,000 Buchan, Cann River, Dinner Plain, Eagle Point, Johnsonville, Lakes people. Entrance, Lake Tyers Aboriginal Trust, Lake Tyers Beach, Lindenow, Lindenow South, Mallacoota, Marlo, Metung, Newlands Arm, The region’s world renowned beaches, lakes, high country and Newmerella, Nicholson, Nowa Nowa, Omeo, Orbost, Paynesville, national parks are a natural drawcard for those seeking a lifestyle Raymond Island, Sarsfield, Swan Reach and Swifts Creek. change, as well as for the many tourists that swell the region’s population numbers over the busy holiday periods. Ten individual wastewater systems serve Bairnsdale, Bruthen, Cann River, Dinner Plain, Eagle Point, Johnsonville, Lakes Entrance, East Gippsland Water’s service area extends east from Lindenow, Lake Tyers Beach, Lindenow, Mallacoota, Marlo, Metung, Newlands through to the region’s capital Bairnsdale, the holiday centres Arm, Nicholson, Omeo, Orbost, Paynesville, Raymond Island and of Paynesville and Lakes Entrance, and on to the wilderness Swan Reach. coast and Mallacoota near the New South Wales border. The Corporation also serves as far north as Dinner Plain in the High Water services are provided to more than 24,000 customers Country of the Victorian Alps. with wastewater services also provided to over 20,000 of these. Fact file (as at 30 June 2011) Water Wastewater Serviced properties Serviced properties - domestic assessments 20,928 - domestic assessments 18,041 - non domestic assessments 3,077 - non domestic assessments 2,191 Volume of water consumed (ML/y) 4,440.6 Volume of wastewater collected (ML/y) 2,775 Length of water mains (km) 899 Length of sewer mains (km) 610.5 Water treatment plants 9 Wastewater treatment plants 10 Water disinfection plants 17 Water recycled (%) 99.2 Separate water supply systems 9 Separate wastewater systems 10 Our Vision Contents Page For East Gippsland Water to be recognised as a premier Corporation within the water industry, responsive to the At a Glance Inside front cover needs of its community, the protection of the environment and the requirements of Government. Report from the Chairperson Our Mission and Managing Director 2 Our core purpose is to ensure that: • our team provide quality water and wastewater Corporate Governance 4 services • our approach is responsive to customers and the Environmental Sustainability 7 Government • our operations are cost effective, environmentally sensitive and conducted in a safe and efficient manner Asset Management 15 • we use sustainable management principles in all our business activities People and Culture 17 Our Objectives In accordance with the Water Act 1989, East Gippsland Community Engagement 20 Water has the following objectives, which are reflected in its Corporate Plan: Social Sustainability 22 • Governance and Regulation We are committed to meeting the requirements of Financial Summary 24 customers, Government and stakeholders. • Environmental Sustainability Other Information 25 We are committed to environmental sustainability in all aspects of water and wastewater service provision. Performance Report 27 • Asset Management and Development We are committed to optimising the use of existing physical assets and developing new infrastructure for Independent Auditor’s Report 31 the delivery of water and wastewater services and emerging requirements. Financial Report 33 • Management and Operations We are committed to optimising the use of our human, Independent Auditor’s Report 63 financial and corporate resources. Appendix: Whistleblower’s Protection Act Policy 65 The Corporation Disclosure Index 73 East Gippsland Region Water Corporation was initially established as East Gippsland Region Water Authority on 1 January 1995, by Ministerial Order and under powers Glossary 74 conferred by the Water Act 1989. It trades as East Gippsland Water. The responsible Ministers during the 2010/11 reporting period were: About this Report • The Hon. Tim Holding MP, Minister for Water This Annual Report details East Gippsland Water’s (1 July 2010 to 2 December 2010) performance and achievements in all areas of its operations • The Hon. Peter Walsh MP, Minister for Water during 2010/11. It has been prepared in accordance with (2 December 2010 to 30 June 2011) the Financial Reporting Direction FRD 30A - Standard In accordance with the Water Act 1989, East Gippsland requirements for the design and printing of annual reports. Water delivers a full range of retail water services, including This defines the design and print specifications of annual water harvesting, storage and drinking water supply. It also reports to ensure consistency, cost minimisation and low provides wastewater collection and treatment services, environmental impact. recycled water for rural and recreational uses, as well as trade waste services to industrial and commercial More information and previous Annual Reports are available customers. at www.egwater.vic.gov.au. ANNUAL REPORT - EAST GIPPSLAND WATER 2010/11 1 Our total Bulk Entitlement for the river is now 9,208ML, which is just 0.7 per cent of the Mitchell’s mean flow. The additional water from the Mitchell will only be drawn as ‘winter fill’, when the river’s flows are higher. There will be no net impact on flows to the Gippsland Lakes, as the additional volume is a transfer from other rivers that also flow into Lake King. This will bolster water security for our reticulated water customers spanning an area that includes the major centres of Bairnsdale, Paynesville and Lakes Entrance. The Corporation obtained an additional 100ML allocation of groundwater for the Mallacoota water supply system in Report from the response to reduced flows in the Betka River, which have been impacting on the reliability of supply. The licence Chairperson and allocation is now 220ML which, in addition to surface water entitlements will meet projected demand levels for the local Managing Director community through to 2050. East Gippsland Water continued to be very proactive in Aquifer Storage and Recovery (ASR) addressing the needs of the local community and Victorian East Gippsland Water is proposing to use an aquifer as a Government in the 2010/11 financial year, recording some natural underground storage for drinking water, which would notable achievements. be a first for Victoria. In 2010/11 broad consultation was Financial position carried out with stakeholders, including nearby groundwater users, on our proposal to use the Latrobe Valley group of The Corporation recorded an overall loss of $161,000 deep aquifers as an underground storage for water sourced this financial period, against a surplus budget forecast of from the Mitchell River. $2.4 million. This variance was due to significant financial challenges and extraordinary expenditures, mainly of a non- This followed an extensive pilot program and modelling cash nature. which demonstrated that subsequent extraction of this water from the storage would have minimal impact on Non-cash expenditure, attributed to the impairment of the surrounding groundwater levels. Importantly, the initiative Nicholson Dam in April 2011 and changes in asset valuations, would help ensure long-term water security for customers, added $3.37 million to expenditure. as using an aquifer reduces the potential for water loss from The financial situation was further compounded by reduced evaporation and maintains high quality drinking water, free water sales, 12 per cent lower than forecast budget, from risks of algal and airborne contamination. equating to a budget shortfall of $760,000. The groundwater regulator, Southern Rural Water, is The non-cash items have not impacted the Corporation’s considering the Corporation’s application for an ASR cash position and the level of borrowings of $36.5 million licence to store up to 500ML in the Latrobe Valley group was in line with budget estimates for the 2010/11 financial of aquifers. Approval of the application is expected early in year. 2011/12. Excluding the adjustment of these extraordinary items, East Gippsland Water would have achieved a surplus result close Major infrastructure to budget of $2.6 million. We invested some $450,000 in additional groundwater bores to ensure the Mallacoota community has secure Importantly, our operating result in 2011/12 is projected to supplies of drinking water into the future. A shade cloth return to budget. The Corporation is expecting to repay a cover was also installed over the second of the town’s total of $5 million in borrowings in the 2011/12 financial year drinking water storage basins, with this $400,000 initiative and remains in a strong financial position. designed to greatly reduce the quantity of stored water lost through evaporation and significantly cut the risk of soil, algal Restrictions or airborne contamination of the stored water. For the fourth year running we ensured no water A new, much larger water storage constructed at Omeo has restrictions anywhere in our region. This was due in no small increased that community’s drinking water storage capacity part to the ongoing success of our five year, $67 million from 5ML to 15ML.
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