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Goulburn Valley Water 2004/2005 Annual Report

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Goulburn Valley Water 2004/2005 Annual Report Goulburn Valley Water 2004/2005 Annual Report Running Water from the Mountains to the Murray Contents Regional Administration Centre 104-110 Fryers Street, Shepparton, 3630 Highlights 1 PO Box 185, Shepparton, 3632 Telephone: (03) 5832 0400 Chairman/CEO Report 2 Facsimile: (03) 5831 1467 Email: [email protected] Overview 4 Website: www.gvwater.vic.gov.au Water and the Environment 6 Customers and the Community 24 Designed and Printed by Assets and Infrastructure 30 Goulburn Valley Printing Services (03) 5825 1700 Cover: Daltons Impress Silk 250gram Organisational Capability 34 Text: Daltons Impress Silk 130gram Financial Performance and Compliance 44 Impress is manufactured by Pulps used in the manufacture of Corporate Governance 48 Australian Paper at Burnie and Impress are bleached using ECF Wesley Valley in Tasmania (Elemental Chlorine Free) Performance Reporting 54 Financial Statements 62 Disclosure Index 92 Highlights Highlights July 2004 October 2004 March 2005 • Goulburn Valley Water • The Water Festival for National • State funding under becomes a Silver Supporter Water Week 2004 was once Renewable Energy Support of WaterAid Australia. again conducted. Over 5,200 Fund announced for biogas • Orrvale Primary School and people participated in a range of project between Goulburn Gowrie Street Primary School activities during the week. Valley Water and Diamond planted over 1,000 trees at Energy. November 2004 the Shepparton wastewater • Yarroweyah connected to a management facility. • First independent audit on potable water supply. • Administrative services Goulburn Valley Water’s consolidated at Shepparton Environmental Management April 2005 headquarters and Seymour System successfully completed. • Decommissioning of office closed. Honeysuckle Creek Reservoir December 2004 commenced. August 2004 A new 4.8 megalitre clear water • May 2005 • Signing of MOU with EPA to storage tank was completed at the reduce salt levels in trade Cobram water treatment plant. • Trial of NetBill commenced waste discharges generated with a large Retirement by industry. January 2005 Village and the City of • Water conservation by-law in Greater Shepparton. September 2004 place for 12 months resulting in June 2005 • Minister for Water announces a 6% saving in water usage. Wallan and Hidden Valley will • Construction of two new 8 be provided with water from February 2005 megalitre concrete water storage Melbourne and the management • Sunday Creek Reservoir tanks completed in Shepparton. and operation of water and reaches 80% capacity and • Essential Services Commission’s sewerage services will transfer to water restrictions lifted for the determination on prices and Yarra Valley Water in early 2006. towns of Broadford, Clonbinane, service standards for the three • 25 employees achieved Kilmore, Wandong-Heathcote financial years to June 2008 Certificates in Water Operations. Junction and Wallan. announced. Goulburn Valley Water Highlight 1 Chairman/CEO Report Laurie Gleeson Chief Executive (Left) Mijo Darveniza Chairman (Right) Chairman/CEO Report It is our pleasure to present the the next three years, borrowings challenges and costs to the business, eleventh Annual Report of Goulburn are forecast to increase to around however, the board and management Valley Water for the year ended 30 $52 million to fund Goulburn Valley look forward to establishing a June 2005. Good planning and a Water’s ongoing capital program. co-operative and positive working lot of hard work and commitment On 1 January 2004, new regulatory relationship with the ESC. from our staff throughout the year arrangements came into effect with The food processing industries enabled the Authority to substantially the Essential Services Commission of the Goulburn Valley generate deliver on our economic, social and (ESC) responsible for the economic large volumes of industrial waste environmental responsibilities across regulation of the Victorian water with the five largest customers the region. industry. The Authority developed contributing 25% of the region’s total In 2004/2005 Goulburn Valley a comprehensive three year Water wastewater load. In August 2004, Water achieved an operating profit Plan which was submitted to the Goulburn Valley Water entered into of $5.3 million compared with $9.4 ESC for approval in September a Memorandum of Understanding million in the previous year. This 2004. The Water Plan incorporated with the Environment Protection operating profit included $11.257 the Authority’s capital investment Authority (EPA) to jointly fund with million of gifted water and sewerage program, service delivery proposals industry a cleaner production/ assets and cash contributions to and other initiatives planned for the waste minimisation project, aimed existing and future capital works, three year period, together with at substantially reducing salt levels funded by developers. This financial financing and pricing proposals to in trade waste prior to its discharge performance reflects the continued ensure the financial sustainability of to our wastewater management strong growth in land development the business. facilities. across the region. In June 2005, the ESC made its In March 2005, the Authority entered In 2004/2005 net debt increased final determination, substantially into a contractual arrangement from $10.6 million to $27.6 million at approving the Authority’s Water Plan with Diamond Energy for the sale 30 June 2005, driven by a continuing proposals but significantly increasing of methane gas generated from the strong infrastructure investment the volumetric price of water in the anaerobic treatment process within program during the year of $30.8 Shepparton-Mooroopna system, the covered lagoon systems at our million. This program was funded via over and above the Authority’s Tatura, Mooroopna and Shepparton cash flows from trading activities and proposed tariffs. The new regulatory wastewater management facilities, new borrowings of $17 million. Over environment presents many new for conversion into green electricity. 2 Goulburn Valley Water 2005 Annual Report The project was made commercially wastewater management facilities project at Beveridge. Likewise, viable by a funding grant to Diamond and during the year we were able to Yarra Valley Water made substantial Energy from the Sustainable Energy provide the Shire of Mitchell with over progress on the construction of the Authority Victoria under the Victorian 2,900 cubic metres of dried biosolids $29 million Melbourne to Wallan Government’s renewable energy to cap the Kilmore landfill site. This water supply pipeline, with both support fund. The project was was an excellent reuse of this projects on target for completion formally launched at Shepparton by by-product of the sewerage treatment in late 2005. On commissioning of the Minister for Water, John Thwaites process. these systems, responsibility for the and the Minister for Energy Industries, As a major provider of essential future management and operation of Theo Theophanous. infrastructure in the Goulburn Valley, the water and sewerage services in In October 2004, the Authority the Authority invested a further $30.8 Wallan will transfer from Goulburn entered into a formal contract for the million in new water and wastewater Valley Water to Yarra Valley Water in decommissioning of the Honeysuckle projects during the year. January 2006. Creek reservoir. Unfortunately, site This program of works included a Throughout the year, Goulburn works were to be delayed due to an new $6 million water treatment plant Valley Water continued to work objection to the Victorian Civil and at Cobram and the construction of closely with our catchment partners, Administration Tribunal (VCAT). The a $3.4 million pipeline and pumping the Goulburn-Broken Catchment VCAT hearing extended over several station to provide fully treated water Management Authority and months and was ultimately resolved to the town of Strathmerton and the Goulburn-Murray Water and other in favour of the Authority, enabling Kraft Foods processing plant. The stakeholders to ensure a consistent the works to proceed in April. The small community of Yarroweyah near strategic approach is taken with removal of the reservoir has not only Cobram also obtained potable water initiatives to improve river health eliminated the Authority’s significant for the first time in March 2005 as and the environmental values of the exposure to the risk of embankment the pipeline passed through the Goulburn-Broken catchment. failure and its subsequent village en-route to Strathmerton. In conclusion, we wish to express consequences, but will also provide Whilst the economic and social our thanks to the Board, senior significant environmental benefits benefits of this project are obvious to management team, our employees, as the creek is returned to a natural the region, there is also a substantial contractors and consultants for flow regime, providing a more stable environmental benefit being their contribution to another year of environment for platypus and fish delivered. Once these projects are significant business outcomes and populations along the creek. fully commissioned and the town of the provision of quality service to In 2004/2005 Goulburn Valley Water Strathmerton and the Kraft factory customers. continued its long term commitment are supplied with Murray River water, Our commitment to continuous to water reuse with 76% or around the current urban demand on the improvement and teamwork ensures 7,700 megalitres
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