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 The food processing industries industries processing food The look forward establishing to a of industrial volumes large waste relationship with the ESC. industry a cleaner production/ in trade prior waste its discharge to of the Goulburn generate Valley challenges and costs to the business, and costschallenges to co-operative and positive working contributing total 25% of the region’s facilities. however, the board and management however, waste minimisation project, aimed minimisation project, waste with the five customers largest load. Inwastewater August 2004, with the Environment Protection at substantially salt levels at reducing a Memorandum of Understanding to our wastewater management management our wastewater to Goulburn Valley Water entered into Authority jointly fund to with (EPA) In March 2005, the Authority entered into a contractual arrangement arrangement contractual a into of methane gas generated from gas generated of methane the for conversion into green electricity. electricity. green into conversion for with Diamond Energy for the sale facilities, management wastewater anaerobic treatment process within the covered systems lagoon at our Tatura, Mooroopna and SheppartonTatura, Chairman (Right) In June 2005, made its the ESC On 1 January 2004, new regulatory proposals but significantly increasing proposed tariffs. The new regulatory program, serviceprogram, delivery proposals regulation of the Victorian water industry. The Authority developed over and above the Authority’s ensure the financial sustainability of new environment many presents financing and pricing proposals to final substantially determination, approving the Authority’s Plan Water and other initiatives planned for the a comprehensive three year Water arrangements came into effectarrangements came into with are forecast to increase to around the business. the volumetric price in the of water three year period, withthree year together the Authority’s capital investment the Essential Services Commission the next three years, borrowings Water’s ongoing capital ongoing program.Water’s Plan which was submitted the to ESC for approval in SeptemberESC $52 million to fund to million Goulburn $52 Valley (ESC) responsible for the economic Shepparton-Mooroopna system, 2004. The Water Plan2004. incorporated The Water Mijo Darveniza Chief Executive (Left) 2005 Annual Report 2005 Laurie Gleeson Laurie

In 2004/2005 net debt increased In 2004/2005 In 2004/2005 Goulburn Valley Goulburn Valley In 2004/2005 It is our pleasure present to the lot of hard work and commitment program during the year of $30.8

performance reflects the continued Chairman/CEO Report Goulburn Valley Water Goulburn Valley operating profit included $11.257 profitoperating included $11.257 of $5.3 million compared with $9.4 of $5.3 million compared with $9.4 cash flows from trading activities and existing and future capital works, enabled the Authority substantially to responsibilities acrossenvironmental eleventh Annual Reporteleventh of Goulburn from $10.6 million to $27.6 million at $27.6 million to from $10.6 deliver on our economic, social and funded developers. by This financial from our staff throughout the year new borrowings of $17 million. Over new borrowings of $17 million. This program was funded via million of gifted and sewerage water million in the previous year. This million in the previous year. strong infrastructure strong investment strong growthstrong in land development across the region. assets and cash contributions to the region. Water achieved an operating profitWater 30 June 2005, driven by a continuing Valley Water for the year ended 30 Water Valley June 2005. Good planning a and

Chairman/CEO Report 2 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 of reclaimed water over stressed Katunga deep lead that we are well placed to build on our recycled for irrigated agriculture, aquifer will be terminated. past achievements, and to continue woodlots and golf courses. The Excellent progress was made on to contribute to the development of a Authority is undertaking an extensive the construction of the new $8 sustainable Goulburn Valley region. desludging program of its regional million Wallan wastewater reuse

Goulburn Valley Water Chairman/CEO Report 3 Goulburn Valley Water generated The Authority directly employs volumes of high quality and water create streams wastewater their special environmental challenges. of in 2004/2005 annual revenue million and managed around $49 over $479 an asset base valued at of million. This infrastructureincludes kilometres 40 treatment water plants, 27 1,500 facilities, management wastewater over 340 and pumping tanks stations, 92 reservoirs kilometres of mains and 920 water pressure and gravity sewers. people, in operational, around 170 engineering, financial and administrative roles. This workforce partnerships by is complemented with consultants and contractors undertake a rangeto of business, operational and technical functions. The Authority supplies to water known is region GoulburnThe Valley population of over 118,000 and and 118,000 over of servicesand wastewater a to population 55,454 properties in 55 towns and cities from the outskirts of Melbourne the in the south to Murray River in the north. companies operating food processing processing food operating companies plants in the region that require large as “the food bowl of Australia”. systems supply 40 from towns 55 and provides sewerage reticulated regional towns via 27 31 to facilities. management wastewater supply Bulk is principally water Australia”. Murray, Goulburn/Broken, from the of and Delatite Steavenson, Rubicon bowl River systems and a number of smaller local streams such as Sunday food Creek and Seven Creeks. “the as The Authority major services 16 2005 Annual Report 2005

Goulburn Valley Water provides provides Water Valley Goulburn Goulburn is a Statutory Water Valley Goulburn is a Water Valley Who we are and what we do are and what we Who we We will be a professional, innovative and customer-focused organisation. customer-focused and innovative be a professional, will We Mission – Our Core Purpose an in its business operate will Water Valley Goulburn manner. sustainable environmentally and effective cient, effi

To be a leader in water management management water in be a leader To delivering quality service. customer Overview Vision – Our Shared Aspiration Goulburn Valley Water Goulburn Valley world standard urban water as Goulburn Valley Water) was was Water) Valley smaller 23 of merger successful and sewerage authorities.water Goulburn Valley 1994, On March 1, Goulburn Authority Water Region (trading as by Ministerialconstituted Order, under powers conferred by Division and 2 of Part Act 1989 6 of the Water all other available powers. Authority responsible the Minister to MP Thwaites John Hon. The Water, for and operates under the provisions of The Authority Act 1989. the Water is governed by a Board of seven members appointed by the Minister The Board sets policy and for Water. and is supporteddirection the by team. senior management

Overview 4 Relationship with Government

Goulburn Valley Water is a State will be subject to independent audits A key aspect of the new regulatory owned Government Business under the auspices of the Essential framework relates to pricing and Enterprise (GBE). The Authority Services Commission. requires water businesses to establish operates under the Water Act 1989 a three year water plan commencing and the Water Industry Act 1994 and is Essential Services 1 July 2005. The water plan details responsible to the Minister for Water. Commission the services to be provided and In accordance with the provisions of The Water Industry Regulatory Order proposed prices for delivery of those Section 41 of the Water Industry Act 2003 (WIRO) came into effect on 1 services. The WIRO requires the 1994, the Minister for Water issued January 2004. The WIRO provides a Commission to be satisfied that the a Statement of Obligations (SoO) framework for economic regulation prices proposed by the Authority for to Goulburn Valley Region Water by the Essential Services Commission the services it provides are sufficient Authority which took effect from 28 (ESC) for the services provided by to provide a revenue stream that July, 2004. the water industry in Victoria. As one allows for the recovery of: This Statement imposes obligations of the 22 businesses supplying water, • Operational, maintenance and on the Authority in relation to the sewerage and related services within administrative costs; performance of its functions and Victoria, Goulburn Valley Water’s • The cost of renewing and exercise of its powers. Compliance prices and service standards are now rehabilitating existing assets; with the Statement of Obligations regulated by ESC. and • A rate of return on assets as at 1 July 2004, and on investments made after 1 July 2004. On 15 June 2005, the ESC issued its final determination in respect of prices and service standards. As a result of ESC’s determination, Goulburn Valley Water was required to make some significant changes to the proposed pricing structure for the next three years, which resulted in an increase between 4% and 27% for volumetric charges across the region. Another significant change in pricing was the substantial reduction and capping of headwork charges for new developments. This change was introduced for all Victorian water business.

Goulburn Valley Water Overview 5 ae n h Environment the and Water

Water and the Environment

In its 2004/2005 Corporate Plan Goulburn Valley Water developed three key goals for water and the environment. Outlined on the following page are the goals, the activities undertaken to achieve the goals, and progress as at 30 June 2005.

Amy Ahmet testing Honeysuckle Creek downstream of the reservoir

6 Goulburn Valley Water 2005 Annual Report Goal Key Targets & Initiatives Corporate Goals Status @ 30 June 2005 Water Conservation By-Law introduced Develop and implement a Water 1 January 2004 – see page 10 Manage and Conservation Strategy Education campaign on water conservation – see page 10 conserve the community’s Waste minimisation programs introduced– see page 21 scarce water Continue to work closely with the Participation in GBCMA River Health & Water Quality resources in Catchment Management Authority Coordinating Committee meetings. – see page 15 a holistic and and play an effective and influential Education program – see page 28 environmentally role in promoting the health of the Co-ordinated activities across the catchment sustainable region’s catchment areas with the during National Water Week. – see page 29 manner objective of minimising GVW’s Continued to fund and manage Waterwatch risks in respect to water quality. program in the Goulburn Valley. Deliver quality Compliance achieved. drinking water Achieve compliance with Australian Bridgesoft water quality database which complies Drinking Water Guidelines system introduced – see page 14 with Australian - Filtration Systems, Disinfected HACCP systems introduced at all water treatment plants. Drinking Water Systems, Non-Potable Systems Upgrading of operator skills continues to Guidelines. have a high priority. – see page 41 Non-compliances were recorded at Eildon, Alexandra and Wallan; all other 24 sites Achieve 100% compliance with complied fully with EPA licence conditions. EPA licences and conditions Plant upgrades occurred at Eildon and Wallan, and should eliminate future compliance problems at these sites. Manage 98% reuse (excluding the three wastewater wastewater in an Achieve 100% of the region’s capacity management facilities that return to stream) environmentally for reclaimed water reuse/recycling, including return to stream. 76% reuse (including the three wastewater management sustainable facilities that return to stream) see page 18 manner and maximise Continued to participate in the National Biosolids opportunities Undertake research into the Re-use Program being led by the CSIRO. – see page 20 for sustainable potential applications of biosolids Development of the community reclaimed water consultation package – see page 20 reuse throughout Water and salt audits at TMI and SPC/ Work with key industry customers the Goulburn Ardmona completed. – see page 21 Valley region to achieve the following targets in relation to salt discharges Continued active participation with the joint dairy industry and CSIRO Closing the identify strategies for industrial salt - Loop’ research project. – see page 23 discharge reduction by 2006; and Work commenced on revised trade waste achieve a 50% overall reduction - agreements to support salt reduction objectives in salt discharges by 2008. - to be developed by October 2005.

Goulburn Valley Water Water and the Environment 7 ae n h Environment the and Water

Our Water Our Future

Goulburn Valley Water has a Outlined below is a summary of the number of programs in place that will initiatives undertaken to meet the address the obligations the Authority current targets described in Chapter has in relation to the Government’s 5 – Smarter Water Use in Our Cities Our Water Our Future policy. and Towns.

Chapter No Description Initiatives/Projects In 2004, Goulburn Valley Water adopted a Water Conservation Strategy that included: • Implementing a Conservation By-Law to limit time of day garden watering, require trigger nozzles for handheld hoses to wash vehicles and prohibit hosing down of pavements. • Undertaking a review of the current water education program to assess its effectiveness in delivering water conservation The Government will require all regional messages. An allocation of $20,000 has been included urban water authorities to develop water in the 2005/2006 budget to complete this initiative. 5.3 conservation targets within 12 months. These targets will be incorporated into the water • Encouraging water audits of key industrial customers to identify water savings in their plants. This program authority’s Water Supply-Demand Strategies commenced during 2004/2005 and a further $90,000 has been allocated to continue the program during 2005/2006. • Targeting distribution system water loss savings. A further $20,000 has been allocated to continue the program during 2005/2006. • Establishing targets to reduce average water consumption by 11% by 2010/2011 from 2001/2002 levels:

Demand Component 2001/2002 2001/2002 Level 2010/2011 Level Target Reduction 2005/2006 Target Revenue 26,860 27,481 27,483 Volume (ML) Non-revenue 1,669 1,625 1,673 volume (ML) Leakage (ML) 4,852 3,397 4,295

Raw Diversion (ML) 33,381 32,503 33,451

Assessments (No.) 51,856 56,996 54,741 Revenue volume per 0.518 0.482 7% 0.502 assessment (ML) Non-revenue volume per 0.032 0.029 9% 0.031 assessment (ML) Leakage per 0.094 0.060 36% 0.078 assessment (ML) Total demand per 0.644 0.570 11% 0.611 assessment (ML) Note: These numbers include industrial water consumption

8 Goulburn Valley Water 2005 Annual Report The Government will require all urban water authorities to introduce permanent Goulburn Valley Water introduced a permanent Water 5.4 water savings measures. These measures Conservation By-Law in January 2004 -see page 10 will be developed at the local level and will be suitable for local conditions. The Government and water authorities will Education on water conservation and water quality is 5.5 undertake community education and information continuing on a number of fronts – see page 28 programs to encourage water saving. The Government will require water authorities Goulburn Valley Water’s bills have been revised to ensure to make water bills more informative. This compliance with the Essential Services Commission Customer 5.6 will enable households to better monitor Service Code. The bill highlights water consumption compared their water use over time, and compare their with the previous four billing cycles for each property consumption with households in their local area. The Government and water authorities will develop, prior to 1 December 2004, uniform Goulburn Valley Water is leading the working group developing 5.8 water restriction guidelines for drought response the uniform water restriction guidelines. This was an initiative plans which will set out a recommended four- identified by Goulburn Valley Water in April 2003. stage restriction policy for the whole of Victoria. The Water Smart Gardens and Homes Rebates Scheme will continue to support households to use water more wisely, over Goulburn Valley Water has promoted the Government’s Water the next two years until 30 June 2006. Smart Gardens and Homes rebate scheme on the Authority Rebates will be made available to the website and in customer newsletters. Since the introduction following not-for-profit organisations that of the rebate scheme customers of Goulburn Valley Water are eligible for the Water and Sewerage have applied for and received the following rebates. Rebate on service charges: sporting clubs, 1 July 2004 – 30 June 2005 housing and accommodation, preschools and kindergartens and churches. Product No of Rebates 5.12 This not-for-profit component of the Water Dual Flush Toilet 15 Smart Gardens and Homes Rebate Scheme commenced 1 October 2004. It provides High Pressure Cleaner 131 funding to these not-for-profit organisations Rainwater Tank 56 on a dollar-for-dollar basis up to a maximum of $250 per eligible assessment for water Rainwater Tank to Toilet 4 efficiency improvements (the maximum rebate Shower Rose 15 of $250 is available when $500 or more is spent by the organisation). The rebate will Water Saving Products 39 be provided back to the organisation on its water bill as with the domestic rebates. Waste minimisation programs initiated by Goulburn Valley The Government will require all urban water Water have resulted in significant savings by a number of authorities to work with industry towards major customers such as SPC-Ardmona, Campbell’s Soups 5.18 improved water management outcomes, and Unilever Australia. In an effort to achieve further industry including opportunities for water conservation, savings, the Authority took a lead role with the EPA to recycling and waste minimisation. jointly fund a water and salt audit of Tatura Milk Industries and SPC/Ardmona during 2004/2005 – see page 21 The Government will require urban water EPA Victoria and Goulburn Valley Water are working together authorities to work with industrial and to reduce trade waste flows and inputs of salt to wastewater 5.30 commercial clients and EPA Victoria to management facilities across the Goulburn Valley. A develop cleaner production programs Memorandum of Understanding (MOU) between the two and reduce salt discharge. organisations was signed in August 2004. – see page 21 Water authorities will implement leakage Distribution system water loss has reduced reduction programs and use cost effective 5.37 from 14.0% to 10.6% since 2002 technology such as water pressure reduction to reduce distribution losses. The program is continuing, and further savings are expected. Goulburn Valley Water Water and the Environment 9 ae n h Environment the and Water

Water Consumption and Drought Response Reporting

Permanent Water Saving Rules In January 2004 Goulburn Valley Water introduced a permanent water conservation by-law. Since this time Goulburn Valley Water’s customers have embraced these best practice principles. The Authority’s analysis of water consumption, which involved modelling and taking into account climatic conditions, indicates that residential customers have reduced their water consumption by 6%. This Sunday Creek Reservoir - February 2005 reduction equates to 950 megalitres The aim of the permanent water reduction in water consumption is of water savings per year. conservation by-law is to encourage relatively small, there has been a 2% Goulburn Valley Water credits customers and the wider community increase in the number of properties the saving partly to their regional to conserve water by adopting ‘best supplied over this period. location. The Authority’s customers practice’ water use principles that The Authority has implemented a understand how precious water are set out in the by-law. The three program to reduce unaccounted water, really is and what farmers go through main components of the by-law are:- including water losses. This program during drought periods. 1) No sprinklers between 10 am and includes replacement of older water 5 pm (the hottest part of the day) meters, regular calibration of bulk 2) No hosing paved/hard surfaces meters, and detailed investigations 3) A trigger nozzle is to be fitted to into areas experiencing high losses. a hose to wash vehicles. This program is to continue in In the summer of 2004/2005 2005/2006. Goulburn Valley Water undertook an extensive advertising campaign Water Restrictions to promote water conservation. The Good spring rainfall in 2004 resulted in campaign included newspaper and an easing of Stage 3 water restrictions radio advertisements and a joint TV down to Stage 2 on 1 December 2004 campaign with North East Water. for towns supplied from Sunday Creek Reservoir. With further unseasonal rain Water Consumption in February, Sunday Creek Reservoir Water consumption reduced by increased to 80% of its capacity and the 0.4% in 2004/2005 compared to the Authority was able to lift restrictions previous year. While this is a relatively for the first time in nearly three years. small reduction, it was a 9% decrease Sunday Creek Reservoir supplies on the record of 30,467 megalitres the towns of Broadford, Clonbinane, recorded in 2002/2003. Kilmore, Wandong-Heathcote Junction In 2004/2005 a small reduction and Wallan. of 73 megalitres was recorded in The very dry autumn and early winter residential use, and an 80 megalitres period resulted in Stage 1 water increase in retail non-residential use. restrictions being re-introduced on 2 A reduction of 124 megalitres was June 2005 for these towns. recorded in ‘other’ use. The ‘other’ No other towns in Goulburn Valley category includes system losses and Water’s region were on water Water Conservation By-Law newspaper ad unaccounted water. Whilst the overall restrictions during 2004/2005.

10 Goulburn Valley Water 2005 Annual Report Water Consumption and Drought Response Report 2004/2005

Water District Actual Annual Consumption (ML) and Number of Assessments (No.) Water Supply Water Supply Retail Total Annual Retail Urban Non- Other Urban Residential Consumption

Residential Average Annual Demand Annual Consumption / Average Annual Demand District ML No. ML No. ML ML No. ML % Alexandra, 324 1,849 141 287 13 478 2,136 582 82.2% Eildon, Thornton Barmah 37 152 12 16 0 49 168 51 97.4% Broadford, 297 1,595 81 113 128 506 1,708 439 115.3% Clonbinane Cobram 730 2,238 1,945 431 0 2,675 2,669 2,634 101.6% Colbinabbin 14 77 6 15 8 28 92 33 83.8% Corop 5 32 1 4 0 6 36 6 110.1% Dookie 65 134 20 20 0 85 154 88 96.6% Euroa, Strathbogie, 532 1,968 165 270 57 753 2,238 804 93.7% Violet Town Girgarre 24 112 4 17 3 31 129 39 79.1% Katamatite 33 115 4 19 10 47 134 54 87.3% Katandra West 34 101 7 14 0 42 115 49 85.4% Katunga 20 75 10 17 10 40 92 40 99.7% Kilmore, Wandong 869 5,353 144 337 225 1,238 5,690 1,107 111.8% Heathcote Junction, Wallan Kyabram 790 2,600 270 395 91 1,152 2,995 1,200 96.0% Longwood 35 112 15 14 30 79 126 75 105.5% Mansfield, Bonnie Doon, 381 2,268 182 312 86 649 2,580 665 97.7% Upper Delatite Marysville, 101 662 70 103 128 300 765 262 114.5% Buxton Merrigum 67 200 15 30 8 90 230 101 88.3% Mooroopna 973 3,166 1,111 229 95 2,179 3395 2,353 92.6% Murchison 115 377 32 56 34 181 433 185 97.8% Nagambie, Baxters Road, 197 759 217 118 65 478 877 491 97.4% Kirwans Bridge Nathalia 209 708 80 119 45 334 827 321 104.2% Numurkah, 604 1,927 163 309 95 862 2,236 902 95.5% Wunghnu Picola 1664191 18 73 23 78.7% Pyalong 22 147 3 17 14 39 164 35 112.2% Rushworth 183 553 79 90 30 293 643 330 88.8% Seymour, Avenel, Mangalore, 942 3,544 483 496 312 1,737 4,040 1,781 97.6% Tallarook Shepparton, Congupna, 5,239 14,636 3,738 2,163 955 9,932 16,799 10,434 95.2% Tallygaroopna Stanhope 57 233 10 63 7 74 296 101 73.1% Strathmerton68231233030121 261 135 89.7% Tatura 504 1,607 1,353 205 63 1,920 1,812 1,978 97.1% Tongala 154 536 798 89 28 980 625 1,065 92.0% Toolamba 51 111 4 5 9 64 116 64 99.9 % Woods Point 10 61 1 8 4 15 69 15 98.5% Yea, Molesworth 134 604 48 127 46 228 731 223 102.1% Total 13,837 48,907 11,239 6,547 2,628 27,704 55,454 28,664 99

Goulburn Valley Water Water and the Environment 11 ae n h Environment the and Water

Bulk Water Entitlements

The Authority has converted its rights During 2004/2005 minor increased diversion rates from to water to Bulk Entitlements under amendments to the Tatura and irrigation channels supplying these Section 47 of the Water Act 1989 for a Tongala Bulk Entitlement Conversion systems. total of 39 supply systems. Orders occurred to allow for

Bulk Entitlement Raw Water Volume Taken Total Transfers Supply System Source ML ML ML Alexandra Goulburn River 916 379 -520 Barmah Murray River 82 41 0 Bonnie Doon Lake Eildon 112 69 -35 Broadford, Kilmore, Wallan Sunday Creek 2,238 1,875 0 Buxton Steavenson River 110 0 0 Cobram Murray River 2,801 2,965 174 Colbinabbin Channel 89 33 -45 Corop Channel 44 10 -30 Dookie Channel 160 80 -50 Eildon Lake Eildon 480 163 -312 Seven Creeks and Euroa 1,990 751 0 Mt Hut Creek Girgarre Channel 100 43 -46 Katamatite Channel 84 57 0 Katandra West Channel 64 41 -15 Kyabram Channel 2,000 1,352 -560 Longwood Nine Mile Creek 120 69 0 Mansfield Delatite River 1,300 685 0 Marysville Steavenson River 462 390 0 Mooroopna Goulburn River 500 187 -213 Murchison Goulburn River 350 235 -109 Nagambie Goulburn River 825 508 -290 Nathalia Broken Creek 652 415 0 Numurkah/Wunghnu Broken Creek 1,206 1,076 0 Picola Channel 44 27 0 Pyalong Mollisons Creek 75 46 0 Rushworth Waranga Basin 530 378 -120 Seymour/Avenel/Tallarook Goulburn River 5,340 1,691 -3,095 Shepparton/Mooroopna/ Goulburn River 18,320 13,145 -4,578 Tallygaroopna/Toolamba Stanhope Channel 200 93 -94 Tatura Channel 2,600 1,985 -500 Thornton Rubicon River 120 53 0 Tongala Channel 1,404 1,185 -90 Toolamba Goulburn River 0 0 0 Upper Delatite Delatite River 235 98 0 Violet Town Honeysuckle Creek 270 0 0 Woods Point Brewery Creek 21 17 0 Yea Yea River 438 2,38 0 Total 46,282 30,381

12 Goulburn Valley Water 2005 Annual Report Securing Our Region’s Water Supply

Ensuring there is enough water for storage capacity for the Tatura water to occur is after the completion of the future growth of towns is an essential treatment plant to ensure that the Melbourne to Wallan Water Supply planning activity for Goulburn Valley town’s future winter water supply Pipeline and the Wallan Reclaimed Water. The majority of the Authority’s needs could be adequately met. Water Reuse Facility. It is anticipated raw water supplies come from the In early 2002 Goulburn Valley Water that the transfer will take effect in irrigation supply system managed commenced a $1.8 million project January 2006. by Goulburn-Murray Water. A small including purchasing a 20 hectare Sourcing all future water supplies for number of towns divert water from block of land on the outskirts of Wallan from the very large Melbourne unregulated streams such as Seven town and construction of a new 150 system will also benefit Broadford, Creeks at Euroa, Nine Mile Creek at megalitre raw water storage. The land Clonbinane, Kilmore and Wandong- Longwood and Sunday Creek near was purchased in early 2003 and Heathcote Junction as more water Broadford. construction for the water storage will be available for these towns from Goulburn Valley Water has developed was completed in early 2005. Sunday Creek reservoir. The change water supply master plans for many in supply source will reduce demand of its major towns across the region. Transfer of Wallan and Hidden on the reservoir and relieve the These master plans are developed Valley to Yarra Valley Water supply pressure on these towns. for a 20 year period and establish On Friday 3 September 2004, the water supply infrastructure the Minister for Water, the Hon. Cobram Water capacity and requirements over that John Thwaites, announced that Treatment Plant Upgrade period based on various growth rate responsibility for the operation In June 2005 work was well scenarios. and management of the water and underway on the $6 million upgrade sewerage services in Wallan and of the Cobram water treatment Shepparton Water Hidden Valley would transfer from plant. A new 4.8 megalitre clear Supply Master Plan Goulburn Valley Water to Yarra Valley water storage tank was completed in The Shepparton Water Supply Water in early 2006. December 2004 and the civil works Master Plan is a 20 year program Goulburn Valley Water and Yarra for the new water treatment plant of infrastructure improvements. The Valley Water have been working were completed in March 2005. The master plan was based on a predicted closely together over the past 18 electrical, mechanical and process growth rate of 1.4% per annum for months on the details for this transfer. contract were partly completed, Shepparton and 1% per annum for Both organisations agree that the and on schedule for the targeted Mooroopna, which equates to over most appropriate time for the transfer September 2005 completion date. 6,000 new connections by 2022. It identifies the need to spend over $26 million between 2003 and 2022 on infrastructure improvements. One of the improvements highlighted in the plan is the need to increase the water storage capacity for Shepparton by 16 megalitres. This additional storage has been provided by the construction of two new 8 megalitre concrete water storage tanks. The new works were completed in June 2005 at a cost of $5.7 million. Tatura Water Supply Master Plan The Hon. Robert Mitchell, Member for Central Highlands, The Hon. John Thwaites, Minister for Water, Mijo Darvenzia - Chairman Goulburn Valley Water, Laurie Gleeson - Chief Executive Goulburn In 2001 an investigation identified Valley Water, Jenny Bailey - General Manager Strategy & Communications Yarra Valley Water, the need to increase the raw water Ben Hardman - Member for Seymour at the announcement of the transfer in September 2004

Goulburn Valley Water Water and the Environment 13 ae n h Environment the and Water

This upgrade will ensure that the fully treated water supply. This Bridge Soft plant has the capacity to meet new supply was made possible by Goulburn Valley Water has the future growth of Cobram and the construction of the Cobram to implemented a comprehensive surrounding towns for the next 20 Strathmerton pipeline. information system for its years. The upgrade will also improve Goulburn Valley Water first operational, water quality and the quality of Cobram’s water. approached Yarroweyah residents environmental data using the with the proposal in July 2003 and Bridge-Soft information system. Cobram to received overwhelming support at the The Bridge-Soft system includes Strathmerton Pipeline public meeting. A working group of a sophisticated relational database In August 2002, the Authority residents and Authority employees was to standardise collection of all received funding assistance for the established and the residents were an types of technical data across Cobram to Strathmerton Pipeline invaluable part of the process. the Authority. It also comprises a from the State Government under the The residents championed the web-based reporting application, a Regional Infrastructure Development project and saved the community calibration module for ensuring the Fund (RIDF) and from the Federal many thousands of dollars by using accuracy of analytical instruments, Government under the Department co-operative construction practices. importing capabilities for laboratory of Transport and Regional Services’ The overall project, excluding data and test scheduling, and a Dairy Regional Assistance Program the property service pipes, cost non-conformance resolution and (DRAP). Kraft Foods has also in the order of $220,000 of tracking module. contributed to the pipeline costs. which the community contributed This is the first such use of The pipeline will replace the current approximately $150,000. Bridge-Soft in Australia, and it bore water supply for Strathmerton As an incentive to get the residents has been generating widespread and Kraft Foods which is drawn to connect immediately to the new interest from many other water from the Katunga Deep Lead aquifer. system, the Authority also offered authorities in Victoria and Licenced water allocations from residents three months free water if interstate. this aquifer are well in excess of the their meter was fitted before the end The Bridge-Soft software largely resource capacity and the aquifer level of May 2005. eliminates the need for additional is declining. By providing a supply link personnel to support the Authority’s from Cobram, Goulburn Valley Water quality assurance management is making a significant contribution Water Quality systems. to the reduction in demand on this valuable groundwater resource. Goulburn Valley Water achieved In January 2004 construction of the excellent water quality performance Victorian River 20 kilometres long, $3.4 million water against the requirements of the Safe Health Strategy supply pipeline between Cobram Drinking Water Act during the year. and Strathmerton commenced. All potable water systems fully met Goulburn Valley Water supports The installation of the pipeline and the regulated microbiological, the values of the Victorian River a storage tank at Strathmerton was turbidity and chloroacetic acid Health Strategy and is committed completed in October 2004. The standards. A minor number of to improving sustainability and project requires booster pumps at systems experienced sporadic its environmental performance. Cobram and a high lift pump station non-compliance against the Since the mid 1990’s the at Strathmerton to be completed dichloroacetic acid, trichloroacetic Authority has focused on reducing prior to Strathmerton transferring acid, trihalomethane and aluminium its nutrient load on waterways from the current groundwater supply standards. In most instances, the by directing reclaimed water to to the pipeline. It is anticipated that Authority was able to address these beneficial reuse options such these pumps will be commissioned anomalies through minor process as irrigation of farmland, golf by October 2005. improvements and the Authority has courses, industry reuse etc. This medium term programs to address year 2,336 megalitres of tertiary Yarroweyah Water outstanding system risks. More detail treated reclaimed water were Reticulation Project of specific system performance is returned to the Goulburn River In March 2005, residents of available on the Authority’s website compared to 2,841 megalitres in Yarroweyah gained access to a and the annual water quality report 2003/2004.

14 Goulburn Valley Water 2005 Annual Report Energy Support Fund by the Victorian Government this goal is now well on the way to being achieved. The first project will be at the Tatura facility. This is an excellent project for the region as it has the potential to reduce greenhouse pollution by 17,500 tonnes per year, or the equivalent of taking 4,000 cars off the roads. It also has the potential to generate clean renewable energy for over 2,600 homes and has two major benefits: 1. It will reduce harmful greenhouse gas emissions through the conversion of methane gas to carbon dioxide and substituting “green power” for “coal fired power”. 2. It will increase the security of the power networks in the Shepparton region through an alternative source of power generation.

Regional Catchment Strategy Goulburn Valley Water has a vital interest in water quality within the Goulburn Broken Catchment and works closely with the Goulburn Tony Sennitt - MD Diamond Energy, Mijo Darveniza, The Hon. Theo Theophanous, Minister for Broken Catchment Management Energy Resources and Laurie Gleeson standing in front of the Gas Flare at the Shepparton WMF Authority and other stakeholders to Biogas Project an agreement to turn it into green ensure the environmental values of The biogas created from the energy. the catchment are improved. The anaerobic treatment at Goulburn Valley In March 2005, the Minister for importance of these values to the Water’s wastewater management the Environment, John Thwaites and community, whether economic, facilities is predominately methane Minister for Energy Resources, Theo social or environmental, is reliant gas (about 70%). Methane has 21 Theophanous visited the Shepparton on the health of the catchment. It is times more greenhouse impact than wastewater management facility and therefore essential that issues facing its carbon dioxide equivalent. At the announced funding up to $800,000 the catchment are approached Authority’s Shepparton, Tatura and for Diamond Energy to generate from a collective arrangement of Mooroopna wastewater management electricity from wastewater at stakeholders. facilities the gas is captured under Goulburn Valley Water’s three HRAL Goulburn Valley Water contributes the covers of the high rate anaerobic facilities. to the Regional Catchment Strategy lagoons (HRAL) and destroyed by a It has been a long term goal of by providing professional input into flare system at 800ºC. Rather than Goulburn Valley Water to harness this the many committees responsible wasting this resource Goulburn Valley gas resource into green energy. Thanks for catchment management, water Water and private industry partner, to the funding that Diamond Energy quality monitoring and community Diamond Energy, have entered into will receive under the Renewable education programs.

Goulburn Valley Water Water and the Environment 15 ae n h Environment the and Water

Victorian Greenhouse Strategy Goulburn Valley Water has adopted the Water Services Association of Australia greenhouse reporting template to monitor greenhouse gas emissions. This template will help meet the requirements of the Victorian Greenhouse Strategy set out in the State Environment Protection Policy (Air Quality Management). In 2004/2005 four of Goulburn Valley Water’s wastewater management facilities were identified as Category B sites (energy usage between 500-7,000 gigajoules per year). The facilities were Shepparton, Tatura, Mooroopna and Broadford. An audit in 2004/2005 has revealed that the Shepparton facility has triggered the Category C threshold level of greater than 7,000 gigajoules per year. The reason for increased energy usage at Shepparton is predominantly related to aerator usage following treatment in the recently commissioned high rate anaerobic lagoon. The Authority will continue to monitor the site and look for initiatives to optimise energy usage. Tatura, Mooroopna and Broadford Birdlife at the Cobram WMF wastewater management facilities six threatened species which 97 flora and 227 fauna threatened showed reductions in energy usage include Brush-tailed Phascogale, species that have been identified in compared to 2003/2004. Bush Stone-Curlew, Grey-crowned this region. Babbler, Hemiphlebia Damselfly, The following biodiversity Regent Honeyeater and the Striped management actions and targets Biodiversity Strategy Legless Lizard. In addition, there are have been set for 2005/2006:

Goulburn Valley Water is continuing Action Target Increase the number of Land For to implement its Biodiversity Strategy, Total of 6 sites by 2005/06 which was developed in 2002/2003. Wildlife sites at GVW’s WMF’s During 2004/2005 the Authority’s Increase the number of indigenous 10,000 trees by July 2006 environmental team provided training plantings at GVW’s WMF’s. in biodiversity to 18 staff members Increase the area fenced and planted a further 24,150 trees at off for biodiversity and 10 hectares by July 2006 its facilities across the region. conservation purposes The Authority has developed a Conduct bird surveys at Monitor the effectiveness GVW’s Land for Wildlife biodiversity action plan, established a of the Land for Wildlife sites sites, with assistance from biodiversity budget and a biodiversity for improving biodiversity register. This register has recorded the bird observers club

16 Goulburn Valley Water 2005 Annual Report the coming year in order to meet these requirements and to achieve its goal of continual improvement and sustainable development. Environmental Improvement Plans Goulburn Valley Water has developed Environmental Improvement Plans (EIP’s) for all 27 wastewater management facilities in conjunction with EPA, with an overriding emphasis on continual improvement. In December 2004 Goulburn Valley Water reviewed and updated the EIP’s and submitted them to EPA for approval. Specific site actions to improve environmental performance at the Authority’s wastewater management facilities have been identified by Goulburn Valley Water’s Students from Gowrie St PS participating in National Tree Planting Day Operations group. Involving the operational staff in this process National Tree Planting Day Environmental has engendered greater ownership Students from Orrvale Primary and improved the identification School and Gowrie Street Primary Management and management of environmental School are working together with improvements at each facility. Goulburn Valley Water staff to plant Environmental Objectives and targets are over 1,000 trees at the Shepparton Management System established for each EIP at the wastewater management facility. Goulburn Valley Water’s review stage as the means to drive National Tree Planting Day is a very Environmental Management System continuous improvement. This important event. Prior to planting, (EMS) is designed and certified to process will form the basis for annual the students heard an entertaining ISO 14001. review and submission to EPA in the talk from Goulburn Valley Water’s The EMS was independently audited future. Education Officer Jacinta Burke in November 2004 and May 2005. about the facility, how wastewater Audit findings revealed the EMS was is treated, why the trees are being continuously evolving as part of the planted and how trees will act as a overall management system. The buffer around the site when they EMS has demonstrated progress in are established. Jack Frewin, a local meeting its objectives and targets tree planting contractor, gave great and established a framework for support and assistance on the day reducing its overall impact on the and his passion about trees came environment. through in his discussions with the Recent changes to ISO 14001:2004 children. require a certified EMS to be In addition to the tree planting upgraded to meet the new standard by at the Shepparton wastewater the middle of 2006. Changes include management facility, Lemnos more emphasis on compliance, Primary School planted further defining of the scope of the approximately 250 trees at the EMS and greater harmonisation with Authority’s Shepparton operations ISO 9001. Goulburn Valley Water‘s Jack Frewin explaining to students centre. EMS will undergo amendment over how to plant trees

Goulburn Valley Water Water and the Environment 17 ae n h Environment the and Water

Some of the key improvements water from Goulburn Valley Water’s Stage 2 of the project is the irrigation applicable to the EIP’s are as wastewater management facilities component which is anticipated for follows: is reused every year, depending on completion in late 2005. 100% of • Optimisation of aerators to climatic conditions. In 2004/2005 the available reclaimed water for the minimise greenhouse gas the Authority reused around 7,700 facility will be used for irrigation. 45% emissions from energy usage megalitres of reclaimed water for of the reclaimed water will be used • Further bunding of stored irrigation. Goulburn Valley Water by Goulburn Valley Water during the chemical to prevent spills currently has 16 agreements with irrigation season and the remainder will • Identification and management local farmers and golf clubs that be supplied to a neighbouring property of lagoon bank erosion have reclaimed water delivered to under a third party agreement. • Weed eradication programs their properties for irrigation needs. • Planting of native trees The Authority irrigates woodlots and Wallan Reclaimed • Optimisation of reclaimed pasture at 22 of its wastewater Water Reuse Facility water usage management facilities across the Goulburn Valley Water has invested • Odour identification and region. over $7 million on the Wallan management Over the past 12 months Goulburn reclaimed water reuse facility. The • Plant upgrades to minimise Valley Water has completed stage 1 project involved the acquisition of impacts to air land and water of the Nathalia reclaimed water reuse suitable land, construction of a 325 facility, construction commenced on megalitre reclaimed water storage the Wallan facility and sites are being and irrigation infrastructure for 155 Reuse evaluated for the Marysville facility. hectares of land. Stage 1 of the project involved the construction Goulburn Valley Water beneficially Nathalia Reclaimed of a 165 megalitre winter water reuses reclaimed water and biosolids Water Reuse Facility storage and the development of from its wastewater management Construction of the $1.8 million 92 hectares of land for irrigation. facilities across the region. Nathalia reclaimed water reuse facility Construction of the winter water was well advanced by June 2005. storage and the irrigation system Reclaimed Water The project involved purchasing 6.4 was completed in May 2005. The Reclaimed water is a valuable hectares of land and construction of 92 hectares of land will be irrigated resource for the Authority and the a 100 megalitre winter water storage via two linear move travelling community. and associated infrastructure which irrigators. Approximately 76% of reclaimed was competed in August 2004. Marysville Reclaimed Water Reuse Facility The Marysville reclaimed water reuse facility project is still at a preliminary stage. A community consultation group has been established and potential sites are being investigated and evaluated using a triple bottom line analysis. The project will involve the purchase of suitable land for the construction of a 24 megalitre winter water storage lagoon and 43 hectares for irrigation. The irrigation area may include a suitable third party user and negotiations are underway with the Marysville Country Club as a potential user of reclaimed Mark Putman at the new winter water storage at Nathalia water.

18 Goulburn Valley Water 2005 Annual Report 5. The level of treatment for recycled water was high in all applications (at least class A) compared with Goulburn Valley Water’s Class C. Increasing from Class C to Class A would be very expensive for Goulburn Valley Water, with little environmental or social gain in most applications. 6. There was no use of reclaimed water within the private household at the facilities visited. Californian regulations specifically prohibit in-house use, on the basis of risk minimisation. 7. A coordinated long-term public engagement program based on robust science and transparency is essential for a successful scheme.

Biosolids

A significant challenge for the Australian water industry is the management of biosolids. Sustainable use of biosolids

Leo Kelly taking a biosolids sample completes the natural nutrient cycle and is a valuable resource. Every Water Reuse Study Tour has provided a high degree year a total of approximately 3,000 The Chief Executive and the Director of assurance to operators, dry tonnes of biosolids is produced - Technical Services participated in a regulators and customers. at Goulburn Valley Water’s 27 water reuse study tour to Singapore, 2. Initially recycled water was wastewater management facilities. the USA and Mexico from 28 May given away at several schemes. The Authority has developed a till 16 June 2005. The participants However, the value has now been strategy for managing the biosolids comprised senior staff of water recognised and a charge has and the reuse of this resource. authorities, regulators, government been applied (and acknowledged) In 2003/2004 the Shire of Mitchell department technical specialists and for the recycled water. The aim used over 2,900 cubic metres of one private operator. The itinerary is to continue to increase these dried biosolids from the Broadford comprised: meetings with regulators; charges in the future, although wastewater management facility presentations from water reuse full cost recovery is generally a to cap the Kilmore landfill site. In utilities; and visits to wastewater long way off. 2004/2005 removal of biosolids treatment plants and reuse facilities. 3. Political will (plus financial and from treatment lagoons occurred A summary of the key findings moral support) is essential for at Shepparton, Tongala, Nathalia, from the study tour are as follows: the success of water recycling Broadford and Cobram wastewater 1. Water recycling, in various forms schemes. management facilities. These and using a wide range of water 4. Water conservation in conjunction biosolids are being dried and qualities, is well – accepted in with water recycling was not stockpiled, and will be reused for Singapore, USA and Mexico. evident with most schemes. landfill capping and soil conditioning The longevity of some schemes The USA could learn from on cropping land over the next three (in the order of 40 years), Australia on water conservation. years.

Goulburn Valley Water Water and the Environment 19 ae n h Environment the and Water

Biosolids 18 field sites have been established from the river. A power failure Community Consultation across Australia to maximise the occurred at the pump station Informing stakeholders and the wider range of soils and biosolids for which which was responded to by community of the benefits and product long-term data can be established. operations staff. A blown pole quality controls is extremely important. One of the four sites in Victoria is fuse was replaced by TXU and Goulburn Valley Water’s Director of at Dookie. Goulburn Valley Water the pump station resumed Technical Services, Allen Gale is leading organised the Victorian component of normal operation. a Victorian water industry biosolids the trials and is an active participant 3. Shepparton – Campbell’s Soups communications working group. at the Dookie site. The project has rising main, has a pipe diameter In 2004 this working group developed another two years to run. greater than 300mm diameter. a public engagement framework The spill was caused by a very for the Australian water industry. small “crack off” in concrete An industry-wide template, with Wastewater Spills pipe. Contaminated dirt was common supporting materials has taken away and backfilled with been developed to provide guidelines The management of wastewater clean fill. to ensure consistency of approach spills is a critical legal obligation of 4. Heathcote Junction – Pump and messages. Goulburn Valley Water and a key station overflow was caused by Goulburn Valley Water is also focus of its Environment Policy. a power failure due to severe leading the establishment over the The number and type of spills are storms and heavy rain. The next 12 months of the “Australian monitored and reported each year. exact location of the spill was Biosolids Partnership (ABP)”, based This is the second year that the not able to be identified and on the National Biosolids Partnership two tier system of reporting spills 50 kilolitres was spilt. Clean up in the USA and the Sustainable has been in place. The six reported was not required due to heavy Organics Resources Partnership Priority 1 spills is an increase on the flooding. in Europe. The ABP will provide a previous reporting period. The spills 5. Wallan - Pump station overflow national centre for coordination of mainly relate to power failures at was caused by a power failure biosolids management issues and pump stations due to heavy rainfall due to severe storms and heavy a central repository for information events. rain. Due to the rain the exact on biosolids management for location was not able to be the general public and the water identified and 200 kilolitres was industry. Type spilt. Clean up was not required

2003/2004 2004/2005 due to heavy flooding. National Biosolids Priority Two 62 62 6. Kilmore - Manhole overflow Research Project (NBRP) was caused by a blockage. Less CSIRO Land and Water, based in Priority One 0 6 than 4 kilolitres of sewage was Adelaide, are coordinating an extensive TOTAL 62 68 spilt to the nature strip and then five year biosolids research project into a stormwater drain. The with State water, agricultural and Details of the six Priority 1 spills are affected area was cleaned and environmental authorities nationally as follows:- disinfected. A scheduled sewer and internationally. The project aims 1. Heathcote Junction - Pump reticulation jetting and foaming to provide a scientific basis for reuse station overflow was caused by program was due to commence of biosolids on agricultural soils, and a power failure and resulted in in early April just after the will examine the issues of contaminant 5 kilolitres being spilt. The site spill. This section of main and nutrient bioavailability in biosolids was cleaned and disinfected. will be reviewed using CCTV along with techniques to predict these 2. Marysville – Pump station technology. characteristics. A key focus of the project overflow was caused by a None of the Priority I spills had will be to provide guidelines for ensuring telemetry failure resulting in any notable adverse impact on the agricultural commodities do not exceed 130 kilolitres being spilt onto receiving environment. The number maximum permitted concentrations of grassed land and into a small of Priority 2 spills remained the same, heavy metals (particularly Cadmium), drain that discharges into the reflecting greater awareness of the and that soil microbial health is not Steavenson River. The pump requirements of spill management adversely affected. station is about 15 metres and reporting.

20 Goulburn Valley Water 2005 Annual Report Laurie Gleeson and Mick Bourke (EPA Chairman), signing the MOU to reduce salt State Government facilities across the Goulburn Valley. as well as the achievement of A Memorandum of Understanding environmental objectives. By using Review of Trade Waste (MOU) between the two organisations a cleaner production approach the Management was signed on Friday 27 August. The companies involved will not only aim of the MOU is to reduce the salt reduce their environmental impact Goulburn Valley Water is responsible levels in trade waste. but also identify cost savings along for the management of 9% of the The partnership involves working the way. State’s trade waste discharges and closely with major customers, A successful audit has been is the fourth largest receiving water including Tatura Milk Industries, completed with Tatura Milk Industries authority in the State. The Authority SPC-Ardmona, Unilever and and has highlighted opportunities has been an integral contributor Campbells Soups. Goulburn for substantial savings in sodium to the State Government review of Valley Water will be encouraging generation along with opportunities trade waste management by water industry to use cleaner production for water conservation and recycling authorities. to reduce water consumption, within the factory. trade waste discharges, and the An audit of SPC-Ardmona use of salt within their processes Shepparton and Mooroopna sites Working to Reduce Salt so that less is being discharged to has been finished and a draft report sewer. has been developed. The draft has EPA Victoria and Goulburn Valley Working with companies in the indicated there is opportunity to Water are working together to region to tailor their waste outputs reduce sodium discharge by 15% reduce trade waste flows and through cleaner production is vital from the Mooroopna site and 55% salt to wastewater management for long-term business sustainability from the Shepparton site.

Goulburn Valley Water Water and the Environment 21 ae n h Environment the and Water

Cleaner Production is the tracking of grease trap pump industry environmental managers and training sessions for outs and generation of notices. As operators of wastewater management Major Customers part of the WDMS the Authority facilities. It has long been recognised has introduced barcoding of grease that there was no qualification or In line with Goulburn Valley Water’s traps. With the new barcoding formal training for people who are major trade waste agreements and system the traps can be scanned and directly employed in the management waste minimisation requirements, information electronically loaded into of trade waste. A steering committee the Authority’s trade waste section the WDMS. The information is then comprising representatives from arranged and facilitated training processed and used to notify trade the water industry, EPA and the sessions in the practices and waste staff of pump out events. National Centre for Sustainability at principles of Cleaner Production. The WDMS is also used to track septage Swinburne University was formed to EPA delivered the training to staff receival into Goulburn Valley Water’s oversee development of the training members of Goulburn Valley Water, wastewater management facilities. It package. SPC-Ardmona, Riverland Oilseeds, has the capability to share information In November 2004, specialist Campbell’s Soups, and Tatura Milk with Local Government by tracking consultants were commissioned Industries. An in house training session the pump out of septic tanks. This to develop the resources and was also held at Unilever Tatura. was a Goulburn Valley Water initiative competencies for the training to help Local Government meet the package in a format suitable Waste Data EPA requirement of monitoring the for national accreditation and Management System cleaning of septic tanks. recognition by the Australian National During 2004/2005 Goulburn Training Authority. A pilot course has Valley Water’s trade waste section Trade Waste training been conducted to refine the course introduced a new electronic package development material and competencies and is management system - Waste Data Goulburn Valley Water was invited expected to result in recognition Management System (WDMS). to participate in the development of by the Victorian Department of WDMS is used to manage the minor a training package for trade waste Education and Training, leading to trade waste customers. An example managers, trade waste field officers, national accreditation.

Smoke testing part of the sewer maintenance program

22 Goulburn Valley Water 2005 Annual Report Closing the Loop Research Project The Closing the Loop project, which commenced in 2003 and due for completion in 2007, is a $4.4 million Victorian research project focusing on reducing waste from dairy processing. The project is a collaborative venture through the Dairy Industries Sustainability Consortium led by Primary Industries Research Victoria (PIRVic) – the research arm of the Department of Primary Industries (DPI), with the aim of developing best practice waste management solutions in direct response to the dairy industry’s needs. Closing the Loop has broad industry support and financial backing through PIRVic, the Gardiner Foundation, Dairy Australia and leading dairy, chemical and waste management companies. Goulburn Valley Water is a participant in the project. A demonstration site for irrigation with high salinity water has been established at the Authority’s Tatura wastewater management facility, as the key objective is to reduce the amount of salt used within dairy factories using cleaner production principles. Goulburn Valley Water is also a member of the Industry Advisory Committee.

Rotating screen, part of SPC-Ardmona’s tradewaste pre-treatment

Goulburn Valley Water Water and the Environment 23 utmr n h Community the and Customers

Customers and the Community

The 2004/2005 Corporate Plan following page are the goals, the for Goulburn Valley Water identified activities undertaken to achieve the three goals for Customers and goals and the progress status as at the Community. Outlined on the 30 June 2005.

Student participating in National Water Week Water Olympics

24 Goulburn Valley Water 2005 Annual Report Goal Key Targets & Initiatives Corporate Goals Status @ 30 June 2005 Engage and Develop a communications A workshop involving a range of cross functional communicate and media strategy. employees was held to commence development constructively of a communications strategy for GVW. A with our draft strategy has been developed and will be customers presented to the Board in the latter part of 2005. and the wider This draft considers GVW’s key stakeholders, community in the most appropriate customer consultation an open, honest structures, communications objectives (internal and transparent and external), target audiences, key messages, manner about communication mix, budget/resources etc. water and Develop a structured customer This objective is being considered environmental consultation strategy for the as part of the development of a management Authority which considers the communications and media strategy. issues which most appropriate structure for impact on them. customer consultative committees (CCC’s) including direct involvement by GVW’s District Managers Undertake a public education A consultation strategy was developed campaign on the relative cost for tariff increase and commenced of water and price increases in July 2004 – see page 26 Maintain Develop a stakeholder relationship This objective is being considered as part ongoing management strategy for all of the development of a communications constructive key Authority stakeholders and media strategy (see above). relationships Influence government Goulburn Valley Water’s Senior management team with key policy development and other key employees participate in a number of stakeholders industry working groups that contribute including major to the development of various policies. customers, State and Federal Governments, local governments and other regional organizations. Demonstrate a Continue to conduct customer Goulburn Valley Water undertakes a customer sense of social research to identify and satisfaction survey every 12 months – see page 27 responsibility respond to customer needs, in our business concerns and demands. activities and operations

Goulburn Valley Water Customers and the Community 25 utmr n h Community the and Customers

Community During 2004/2005 Goulburn Customer Charter Valley Water worked with During 2004/2005 the ESC required Service Obligation community reference committees all water authorities to develop a new Goulburn Valley Water is required to for two major projects, the customer charter in accordance provide a range of concessions and Marysville Reclaimed Water Facility with their Customer Service Code. rebates on behalf of the Victorian and the Yarroweyah Reticulated Goulburn Valley Water’s new Government. In 2004/2005 the Town Water Supply. Customer Charter was developed combined total of these concessions In addition to the community in consultation with the Authority’s and rebates was $1.9 million. The reference committees, Goulburn customers. The consultation process table below outlines the value of Valley Water developed consultation was undertaken in four stages: the Authority’s community service strategies for water pricing and Stage 1. An independently obligations. tariffs, the 3 year water plan and the facilitated Focus customer charter. Group. Type 2004/2005 2003/2004 Stage 2. Face to face meetings. Pension Water Pricing and Tariffs Stage 3. Mailout Survey. $1,712,885 $1,469,721 Concessions Goulburn Valley Water undertook Stage 4. Web Site. Water & an extensive consultation and Sewerage public education campaign on $225,157 $220,905 Rebate the relative cost of water and Management of Social Scheme price increases. The program and Economic Impacts Utility included: Relief Grant $2,612 $6,067 • Two focus groups. The Authority has in place a Scheme • An information brochure. Hardship Policy and Revenue $1,940,653 $1,696,693 • A regional forum on the White Paper. Officers are trained to encourage • Major articles in Goulburn Valley customers to inform staff about their Water’s Customer Newletter. personal circumstances surrounding Community Consultation • General community briefings. non-payment of accounts. The • Participation in “field days” at Officers then discuss the range of Goulburn Valley Water develops Stanhope and Cobram. payment options available to the either a community consultation or individual customer and assist them a communications strategy for every Water Plan in working out the best option for major project undertaken and other A consultation strategy was their situation. The Hardship Policy important areas of operations such implemented for the development of is reviewed and updated on an as water plans, customer charter and the Water Plan. The limited timeframe annual basis. drought management plans. for preparing the Water Plan Components of a strategy may necessitated efficient consultation include: mechanisms and an innovative • Identification of key approach. The consultation process stakeholders including for the Water Plan has been multi-cultural and indigenous undertaken in separate stages. interests; Stage 1 Focus group meetings. • The consultation level required Stage 2 Information flyers with with each stakeholder; tariff notices. • Establishment of a Community Stage 3 The final Water Reference Committee to Plan and Summary assist with liaison between the Document as Authority and the Community; submitted to ESC was • Focus Groups; made available on • Newsletters/Information Bulletins; the Web and a public • Open Meetings and Open Days; forum was held in • Presentations to Service Clubs; and Shepparton to discuss • Regular articles in local papers. the Water Plan. Public forum held in Shepparton on the Water Plan

26 Goulburn Valley Water 2005 Annual Report Customer Satisfaction Survey 2005 Customer Satisfaction Survey Goulburn Valley Water undertakes Annual customer satisfaction by category an annual customer satisfaction (weighted satisfaction index) survey which is designed to: • Quantify gaps which may exist between customer’s rating of the importance of service attributes and their perception of the Authority’s performance on each service attribute. • Measure the Authority’s performance against benchmarks established in previous customer satisfaction studies. The results for 2005 are based on responses to a telephone survey of 309 customers located throughout Goulburn Valley Water’s region. The overall customer satisfaction rating of 92.2 is marginally above the 2004 result. The past three years results in the key areas of water supply, wastewater treatment and tariffs are Community Support operated continuously raising and shown in the graph (at right). then distributing around $81,000 to Goulburn Valley Water actively regional causes. supports community groups The committee also organises staff Energy and Water across the region through a to contribute to their communities Ombudsman (Victoria) range of sponsorships including in non monetary ways. Staff are promotional items such as sports encouraged to support the Cancer The Energy and Water Ombudsman drink bottles, environmentally Council, Australian Red Cross, (Victoria) (EWOV) is an independent friendly shopping bags with a SPC-Ardmona’s “Share–A–Can” body funded by the member water conservation message and initiative, contribute regularly to utilities to assist customers who are monetary support. regional blood banks and more dissatisfied with some aspect of the In addition to the Authority’s recently participation in the City service or interaction with utilities support, Goulburn Valley Water of Greater Shepparton’s “Meals on around the state. employees also contribute to a Wheels” program. The number of contacts to EWOV charity fund. In 1988, a handful of Goulburn Valley Water employees for 2004/2005 for Goulburn Valley our staff created the Goulburn Valley are intimately involved with the Water, all Regional Urban Water Water Charity Fund, with the main human side of the community Authorities and the Water Industry aim of raising funds to assist the and can appreciate the extent of as a whole are set out in the table local community. Since its creation, unavoidable personal hardship and below. the Charity Fund Committee has adversity that exists in our region. Through the Charity Fund, staff have Goulburn demonstrated a genuine desire to Type of Contact All RUWA Water Industry Valley Water become involved and assist regional Enquiries 24 289 1,083 communities. Goulburn Valley Water’s Charity Consultation 2 55 168 Fund was recently recognised by Complaints 0 1 5 receiving a regional Community Fund Award for its contribution to local Disputes 0 0 0 communities.

Goulburn Valley Water Customers and the Community 27 utmr n h Community the and Customers

WaterAid Australia Sometimes people forget that Australia is very lucky to have clean safe water to drink and good sanitation, but not every one in the world is as lucky. This is why Goulburn Valley Water decided to be a supporter of WaterAid Australia. At the July 2004 Board Meeting, the Board approved Goulburn Valley Water’s Silver Sponsorship of WaterAid Australia. WaterAid Australia’s vision is of a world where everyone has access to safe water and effective sanitation. A committee of eight employees

has been established and their aim David Hodgkins explaining a salt watch activity to students from St Patrick at Kilmore is to promote WaterAid Australia throughout the Goulburn Valley region Waterwatch In addition to the school Waterwatch and to organise two community fund Waterwatch is still proving to be program Goulburn Valley Water also raising events a year. a most successful mechanism works closely with community to for introducing water issues into monitor streams and rivers in the the school curricula. The program region as part of the Waterwatch Education provides schools with the tools to program. The program monitors many incorporate water activities, especially waterways that have been identified Goulburn Valley Water continued water quality monitoring, into their in the River Health Strategy as being its strong focus on education in curriculum. Across the Goulburn Waterways of High Environmental 2004/2005, through the Goulburn Valley region 53 schools participated Significance. In 2004 Waterwatch Broken Waterwatch network, in the Waterwatch program in 2004. volunteers monitored water quality undertaking programs/activities such Activities undertaken included water at sites across the Goulburn Broken as Waterwatch, Saltwatch, Catchment quality monitoring, aquatic invertebrate catchment. The volunteers monitor Capers, and National Water Week. sampling and habitat surveys. their local waterway for parameters including turbidity, salinity, nutrients and E-coli. These monitors are part of sub-catchment networks which meet regularly to discuss results and initiate community action to help improve the health of the catchment.

Saltwatch Salinity is a major issue in the Goulburn Valley region, and it is important that students understand the impact that salinity has on the land and rivers. 40 schools and over 1,700 students participated in Saltwatch in 2005. To assist with salinity education in the Goulburn Broken, the Waterwatch team received a Community Salinity Grants for the development of 5 GVW Charity Committee (Back Row - Neville Whittaker, Joanne Church, Alan Tyson, Graeme Eadie, Front Row Ken Ellis, Jeanette Berry, Karen Ranson, Peter Smith) Saltwatch kits. In addition a salinity

28 Goulburn Valley Water 2005 Annual Report trailer has been acquired to help move equipment for special salinity awareness days called ‘Matter of Salt’ days and other large community activities. A Matter of Salt day was held in Yarrawonga and a “Saltwatch Sports” Day was held in Kilmore in 2005. These days were very successful, with over 450 students, teachers and parents from 4 schools participating in the 2 days.

Catchment Capers Catchment Capers is an integrated catchment-wide project developed for upper primary and lower secondary students. It is based on the Waterwatch National Water Week Poster Competition program, but contains additional The official launch of Water Week was community writing and photographic activities that deal with water, land a ‘Water Olympics’ for school students competitions. A student from Benalla and catchment flora and fauna at Princess Park in Shepparton. Some West Primary School was the overall issues, such as habitat surveys, water of the ‘Olympic’ sports included; winner in the poster competition, conservation, water quality and Frog the water bug relay, water handball, winning a new bike for his effort. watch. Each month, students monitor pollution pickup and rescuing frogs. Water Week activities would not a local waterway for turbidity, salinity, Gold, silver and bronze medals were occur without the support of the dissolved oxygen and temperature presented to the winning teams before sponsors and committee; Goulburn and participate in other associated the 260 students enjoyed a BBQ to Valley Water, Goulburn Broken activities that complement the end the festivities. The committee Waterwatch, Goulburn Broken monitoring program. During 2005, 32 repeated the Water Olympics event Catchment Management Authority, schools participated in the Catchment in Benalla later in Water Week with Goulburn-Murray Water, Goulburn Capers program compared to 25 in another 230 students participating. Murray Landcare Network, City of 2004. A dedicated website has been The ‘Ricky D Rainman Show’ toured Greater Shepparton, Campaspe developed for Catchment Capers the catchment for 2 weeks around Shire Council, Department of Schools, which provides information Water Week performing 26 shows in Primary Industries Department of for teachers and students about the 11 towns to a total audience of almost Sustainability & Environment and project, student worksheets, news 3,600 students - coordinating this was Kyabram Fauna Park. and events, and additional training not an easy task! Ricky taught students resources for teachers. about stormwater, wastewater, river World Water Day health and water conservation. To celebrate World Water Day National Water Week Movies nights were held for the Goulburn Valley Water offered The Goulburn Broken Water Week general public in Kyabram, Mansfield, schools in Cobram, Nathalia, Committee again organised a Swanpool and Alexandra with large Kyabram and Kilmore a tour of their Water Festival for National Water crowds attending screenings of local water treatment plant. Week 2004. This format is proving movies. Wetland and river walks Students were given a brief overview very successful with 5,200 people were also popular with around 200 on the water treatment process and participating in a range of cultural people attending twilight walks in taken on a tour of the facility to see and education activities. Yea, Mansfield, Benalla, Mangalore, the process in action. In addition to the The week commenced with free Kyabram and Shepparton. water treatment process information boat cruises at Nagambie and The competitions proved to students were also provided with a Cobram which were very popular be popular again this year with comparison between water production with the 216 people who joined in on over 500 entries in the primary and water availability in Australia and one of the 7 cruises. schools poster competition and the in third world countries.

Goulburn Valley Water Customers and the Community 29 sesadInfrastructure and Assets

Assets and Infrastructure

The 2004/2005 Corporate Plan for the goals, the activities undertaken Goulburn Valley Water identified three to achieve the goals and the progress goals for Assets and Infrastructure. status as at 30 June 2005. Outlined on the following page are

Neil Griffiths and George Taylor installing a sluice valve

30 Goulburn Valley Water 2005 Annual Report Goal Key Targets & Initiatives Corporate Goals Status @ 30 June 2005 Plan and manage the Programs for the replacement and Authority’s infrastructure rehabilitation of below ground water Continue to develop an asset and asset base in a supply and sewerage reticulation assets renewals profiling system manner which enhances continue to be prepared based on condition our long-term capacity assessment and service performance data. to deliver high quality Continue to monitor the services to our customers. Independent audits continuing to be conducted safety and performance annually by external consultant GHD. Maintain and develop the of GVW’s dam portfolio Authority’s assets in a Continue to develop and Preparation of maintenance programs manner which minimises implement preventative for all above ground assets were risk to the community, maintenance programs to completed and loaded into the Hansen the environment and optimise performance of all System by November, 2004. the Authority. assets and infrastructure. Finalise negotiations Contribute positively with YVW in relation to to the economic Negotiations completed, transfer the arrangements for the development and scheduled for 16 January. construction of the new south- prosperity of our region. west supply pipeline (Wallan) Assets The Authority operates over 1,500 2004/2005 Goulburn Valley Water Development kilometres of water mains, 920 replaced 1,900 metres of water mains. kilometres of pressure and gravity Closed Circuit Television (CCTV) Goulburn Valley Water has a sewers, 340 pumping stations, inspections are conducted to review responsibility to ensure that wherever 92 tanks and reservoirs, 40 water the condition of sewer assets using possible new development in the treatment plants and 27 wastewater video footage and condition reports region will be supplied with water management facilities. Details of all prepared by the camera operator. and sewerage services. these facilities are stored in the Asset Goulburn Valley Water has recently During 2004/2005 1,333 Register. The same computer system upgraded its CCTV data management new lots were developed within also manages the maintenance and software to WinCan. WinCan has the Authority’s region. Shepparton operation of the Authority’s assets. numerous advantages over previous continued to be the dominant growth The Asset Register and Maintenance software with the biggest benefit centre with the number of new lots Management System are used, along arising from the ability to identify increasing from 414 in 2003/2004 to with consultation with District Managers high risk sewers without the need 464 this year. and Operations and Maintenance Staff, to watch hours of CCTV footage. The chart on page 32 shows the to identify water mains that are in need Information stored within the WinCan major growth areas across the region of replacement and to formulate a database is shared with other asset and compares the number of new sewer inspection program. management software. This further allotments created in 2004/2005 Water mains are identified for increases the efficiency of sewer with the previous year. replacement by their failure history analysis and enables all users access and the consequence of failure. During to the CCTV footage.

Goulburn Valley Water Assets and Infrastructure 31 sesadInfrastructure and Assets

Asset Management Considerable advantage has been attained through the Authority Benchmarking Project participating in the Benchmark Study, During 2004/2005 Goulburn Valley as it provides a ready frame of reference Water participated in the Water with other water supply Authorities who Services Association of Australia’s have undertaken the study to discuss Asset Management Benchmarking performance of asset management Project. The Benchmark Study covered practices, e.g. types of systems seven functional areas including:- used, practices in meeting KPIs and • Corporate Policy and Business procedural documentation management. Planning • Asset Capability Forward Planning • Asset Acquisition Dam Safety • Asset Operation • Asset Maintenance Goulburn Valley Water’s dam safety • Asset replacement and program includes a combination of Rehabilitation policy, procedures and activities aimed • Business Support System at ensuring that dams meet recognised 23 water supply authorities safety criteria. The program includes: throughout Australia and New Zealand • Regular monitoring and review participated in the study which of storage levels and instrument Mooroopna water tower comprised a rigorous process of readings. ranking the Authority’s performance • Maintenance programs. Honeysuckle Creek based on a total of 918 questions • Annual inspections for 12 Decommissioning over the seven functional areas. significant dams by external Honeysuckle Creek is being returned The project report shows the specialist consultants. to its natural flow following the Authority as a leading asset manager The assessments undertaken have decommissioning of the Honeysuckle with the achievement of best practice identified Sunday Creek, Broadford Creek Reservoir which was due to for three of the seven functional No. 3, Nine Mile Creek and Kilmore commence in October 2004. However, asset management practices within No. 3 storages as being unlikely to the decommissioning process was a group of eight similar sized water comply fully with current ANCOLD delayed until April 2005 due to supply Authorities. design standards. objections to the project resulting in a Victorian Civil and Administrative Major Growth Areas - New Allotments Tribunal (VCAT) hearing. VCAT dismissed the objections to the decommissioning and directed that a planning permit be granted to Goulburn Valley Water for removal of native vegetation and for the construction works associated with the decommissioning. The Shire of Strathbogie issued the necessary planning permit in March 2005 and in April the decommissioning of Honeysuckle Creek Reservoir commenced. The decommissioning process involves: • maintenance of the access road; • construction of three upstream rock chutes; • construction of a rock apron downstream;

32 Goulburn Valley Water 2005 Annual Report • removal of the reservoir infrastructure; • removal of the embankment in stages; • installation of a fish ladder; and • tidy up of site and revegetation. By the end of June 2005, maintenance of the access road and construction of the three rock chutes have been completed, and construction of the downstream rock apron was well underway. Depending on the weather, all works apart from tidying up of the site and revegetation are expected to be completed by October 2005. Throughout the construction phase environmental monitoring has been conducted in accordance with the Construction Management Plan approved by Strathbogie Shire Council. Results to date have indicated that the silt load in Honeysuckle Creek is not being unduly impacted upon by the works. Revegetation will commence in Spring/Summer 2005 depending on when decommissioning works are finalised. The decommissioning of Honeysuckle Creek Reservoir has allowed the Authority to return its bulk water entitlement of 240 Honeysuckle Creek Reservoir - May 2005 megalitres for environmental flows. Honeysuckle Creek was Goulburn Broadford (No. 3 Reservoir) No. 3 Reservoir requires the provision Valley Water’s highest corporate risk The 100 megalitres Broadford No. of a downstream filter zone to comply due to the limited discharge capacity 3 Reservoir provides a balancing fully with current design standards. of the spillway and lack of a filter storage upstream of the Broadford This 66 megalitres capacity treated zone in the embankment wall. water treatment plant. Detailed water storage is located on the investigation of the embankment outskirts of Kilmore, and the need Sunday Creek Reservoir has identified no critical defects, for this storage in the longer term Sunday Creek Reservoir is but did confirm that the storage is subject to a separate review. On Goulburn Valley Water’s largest has an unacceptable probability of completion of this study, a decision storage with a capacity of 1,650 piping failure compared with more will be made on the timing of any megalitres. It has been identified recently constructed storages. upgrading works. that the storage fails to comply with Construction of a down stream current ANCOLD design standards. filter zone is scheduled during Nine Mile Creek Reservoir Detailed design for the provision 2005/2006 at an estimated cost of Nine Mile Creek Reservoir has a of a down stream filter zone will $0.4 million. capacity of 27 megalitres and is used be undertaken in 2005/2006. to supply Longwood. A detailed review Construction work is planned to Kilmore No. 3 Reservoir is planned to occur in 2005/2006 commence in 2006/2007 at an A detailed review undertaken in to look at options to improve the estimated cost of $2.8 million. early 2005 has shown that Kilmore integrity of this structure.

Goulburn Valley Water Assets and Infrastructure 33 raiainCapability Organisation

Organisational Capability

In 2004/2005 Corporate Plan the goals, the activities undertaken Goulburn Valley Water set four to achieve the goals and the progress goals for Organisational Capability. status as at 30 June 2005. Outlined on the following page are

Organisation Structure Board

Laurie J Gleeson Chief Executive

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

34 Goulburn Valley Water 2005 Annual Report Goal Key Targets & Initiatives Corporate Goal Status @ 30 June 2005 Recruit, retain Train and develop skills in all staff Training and development of skills to maintain and develop an in order to build and maintain positive customer relationships involves a appropriately positive customer relationships. number of ongoing initiatives – see page 41 skilled workforce of capable and Develop a Goulburn Valley committed Established and operating – see page 40 Water Scholarship program employees. Maintain a This is an ongoing challenge and involves corporate identifying key management and operational Ensure that appropriate contingency culture which positions, developing work roles that plans/succession plans are in engages encourage autonomy and growth, recruiting place for all key management employees in employees suited to career progression, and operational positions. key planning and identifying potential leaders and encouraging decision-making personal and professional development. processes, and maximises Need to identify objectives, key issues, and Undertake an internal opportunities appropriate consultant partner. Deferred from organisational climate survey. for innovation 2004/05. To be implemented during 2005/2006. and initiative. Continue to The 14 System Procedures developed as part of develop and the Operations Management System have been Complete the integration of apply systems fully revised by the project team to integrate new management support and technology the requirements of the Environmental and systems (EMS and OHS). to support Occupational Health and Safety management and improve systems. This goal was achieved during 2004/2005. the delivery An IT Operations Unit has been established and of quality Continue to maximise the application a work plan has been developed which identifies services and and improvement of IT systems in the current and future projects that require their outcomes for operational areas of the Authority involvement. Resourcing has been reviewed and our customers. two new positions will be added to the team. Ensure the Authority’s resources are applied GVW has adapted its organisational structure Continually evaluate the Goulburn effectively during 2004/2005 to respond to shifting demands Valley Water organisational structure. to reflect and priorities of the business – see page 37 the changing needs of the organisation.

Goulburn Valley Water Organisation Capability 35 raiainCapability Organisation

In 2001 Allen was Federal President of the Australian Water Association (AWA) and was awarded life membership in 2005. In 2001 Allen represented Australia at a United Nations Environment Program workshop in Japan on protecting coastal and marine ecosystems. He is currently leading a water industry group developing community engagement in the management of biosolids. Graeme Jolly joined Goulburn Valley Water in October 1995 after 11 years with a multi national Chartered Accounting firm, and 10 years in a Senior Finance role with a publicly listed company. Graeme has a Diploma of Business - Accountancy and is a member of the Institute of Chartered Accountants of Australia and the Institute of Water Administration. Graeme is Chairman of the VicWater Finance Issues Steering Committee that has considered matters such as Infrastructure Asset Valuations and International Financial Reporting Standards during the year. Graeme Allen Gale, Laurie Gleeson, Peter Quinn, Graeme Jolly is a member of the Board of Management, and Chairman of the Senior Management Audit Committee of Goulburn Valley Laurie Gleeson has held senior his time with Goulburn Valley Water. Health. executive positions within the He has been an activist for structural Peter Quinn, joined Goulburn Victorian Water industry since reform, greater efficiency and high Valley Water in 1996 after 16 years 1980. Laurie’s many industry standards of customer service in the in the rural water sector in Victoria. involvements include the Australian Victorian water industry. Peter is a qualified Valuer and is a Water Association, Water Services Allen Gale joined Goulburn Valley member of the Australian Property Association of Australia, American Water in 1999 after more than 30 Institute. Prior to joining Goulburn Waterworks Association, Australian years working with national and Valley Water Peter was responsible Society of Certified Practising international consulting engineering for a range of property and legal Accountants, Institute of Company and science companies. Allen, functions for Goulburn-Murray Directors and the Executive Council of a civil engineer with a Master of Water and was involved in significant the Institute of Water Administration Engineering Science Degree, has change management projects during since 1983 including past President experience throughout Australia, the the restructuring of the rural water and Treasurer. Laurie sits on the Audit Asia-Pacific and USA in all aspects of sector. He completed the Executive Committee of the City of Greater water and environmental engineering. MBA program at the AGSM in 2000 Shepparton and is a Member of a Allen was an adviser to the Hong and in 2003 was awarded a Churchill number of regional natural resource Kong and Malaysian governments Fellowship to study water resource management forums in Victoria. in wastewater management and issues across the USA and Europe. Laurie has overseen dramatic advised the West Australian Minister Peter is currently undertaking the rationalisation of the water industry at for the Environment on restructuring role of Secretary/Public Officer for local, regional and state levels during of the water industry in WA. the Institute of Water Administration.

36 Goulburn Valley Water 2005 Annual Report Restructure Another important area for the Coordinator has been established. Authority is the sharing of knowledge. The key objectives of the position Goulburn Valley Water has adapted Recognising this Goulburn Valley are to optimise sustainable reuse of its organisational structure during Water created a new position for a reclaimed water and biosolids and to 2004/2005 to respond to shifting Knowledge Coordinator in October ensure that the Authority maximises demands and priorities of the 2004. The main responsibilities for partnering arrangements with third business. These changes impacted this role are the Authority’s records party reusers. Strategic Operations a number of sections within the management, development of the and Environmental Services have Authority including revenue, intranet and web sites and support been combined to create Strategy, operations, IT, environmental and for operational quality systems. The Assets and Environment. This merger communications. objective of this role is to establish ensures that the internal audit In July 2004 Goulburn Valley Water an environment in which people are process of the Authority’s operations closed its Administration office in encouraged to create, learn, share is managed by the one section. Seymour. The role of the Customer and use knowledge together for the Changes within the Corporate Service Centre in Seymour had benefit of the organisation, employees Services section involved the progressively contracted since July, and customers. merging of a number of work groups. 1997, when the former Mid-Goulburn In June 2005 the Technical Services The Authority’s education team and Water Board was amalgamated with and Corporate Services sections the Community Consultation/PR Goulburn Valley Water. The Authority of Goulburn Valley Water were Officer were combined to create the identified that with the development streamlined to ensure that positions Communications Department. The of a state-of-the-art billing system and were aligned to the relevant sections. two work groups had been working the introduction of a range of account The Authority’s trade waste section closely together for the past three payment options by Goulburn Valley has been incorporated into Operations years and merger was a logical Water, the need to maintain an office and a new position of Recycling decision. function in Seymour had diminished significantly. The administrative activities undertaken at Seymour were combined with the Authority’s regional headquarters at Shepparton. This rationalisation of office functions has substantially increased operational efficiency and effectiveness. In August 2004 an Operations IT Coordinator role was created. The Authority has made major investments in process control and SCADA technology to improve the management, monitoring and efficiency of its operational facilities. To ensure this investment is utilised to its full potential the Operations IT Coordinator will manage and develop the IT systems used in operations. The Operations IT Coordinator has the responsibility of ensuring all operational technological developments including new infrastructure delivered by the Major Projects and Development groups are consistent with the Information Systems Strategic Plan. Peter Dwyer drenching sheep at the Shepparton WMF

Goulburn Valley Water Organisation Capability 37 raiainCapability Organisation

Personnel Staff as at 30 June 2005 Staff as at 30 June 2004 The table (right) shows the Female Male Female Male personnel figures for 2004/2005 TOTAL TOTAL FTE FTE FTE FTE compared to 2003/2004. Senior Retirements 04 4 04 4 Management In September 2004 Goulburn Valley Water farewelled District Manager, Managers 1 12 13 1 14 15 Bob Barton a long time employee. Bob retired after 20 years with the Administration 29.25 7 36.25 25.25 11 36.25 Authority and its predecessors. EEO Technical 5.5 33 38.5 4 35 39 Goulburn Valley Water is committed Operations 5 66 71 3 67 70 to the employment and conduct principles expressed in the Public Customer 055055 Administration Act 2004. Service Centre The Act specifies a number of employment and conduct principles TOTAL 40.75 127 167.75 33.25 136 169.25 that must be observed by public sector organisations and their employees. employee statistics and grievances. He also worked for Tambo Water The Authority continues to embrace Board, which later became East “best practice” in its people polices Gippsland Water. Employers Employees and actively encourages recruitment In his role as Manager Strategy, must ensure: must: of women into non-traditional roles. Assets and Environment at Goulburn Decisions are Act with Valley Water, Bruce manages a multi- based on merit impartiality Industrial Relations disciplinary team to implement Employees Display During 2004/2005 there was no the Authority’s Operations and are treated integrity, lost time due to industrial disputes. Environmental Strategies in addition to providing technical support fairly and including Staff Profiles reasonably avoiding real services to the Operations group. or apparent The short term focus of the role Equal Technical Services Manager conflict of is one of communication to help employment interest facilitate others in undertaking opportunity their role. The long range activities is provided Show of the role include the formulation accountability Reasonable of business strategies such as the for actions avenues Water and Corporate Plans and of redress Provide supporting operational strategies against responsive to deliver business objectives. The unfair or service Bruce Hammond joined the operations, asset management unreasonable Authority eight years ago as a and environmental aspects of the treatment Systems Manager and in 2000 was role embrace a substantial part of promoted to Manager, Strategy Goulburn Valley Water’s activities and As part of annual reporting Assets and Environment. Bruce has influence all facets of its business. requirements Goulburn Valley Water over 20 years experience in the water The balancing of day to day provides information to the Office industry including the State Rivers issues against strategic planning of Public Employment on policies and Water Supply Commission, requirements make time and processes with regards to Mornington Peninsula and District management a significant challenge employment and conduct principles, Water Board and Melbourne Water. in Bruce’s role. Another recent

38 Goulburn Valley Water 2005 Annual Report challenge has been the preparation Operator in the Authority’s Central of the Water Plan. Bruce was part Water Treatment team, which has of the team that prepared the Water responsibility for 12 water treatment Plan, making a valuable contribution plants ranging from the complex full to the Authority’s submission to the treatment system in Shepparton Essential Services Commission. down to a non potable supply system Bruce has had many highlights in his for Corop. Laura joined Goulburn career with Goulburn Valley Water but Valley Water three years ago and is the greatest satisfaction came from involved in the operations of the water the successful implementation of treatment plants in Shepparton, the Year 2000 Operations Strategy. Dookie, Katandra West and a re- The strategy comprised a wide range chlorination plant in Tallygaroopna. of initiatives to deliver integrated Treating water requires an operator operational management systems to ensure all water leaving the to serve the needs of the business treatment plant meets or exceeds all into the future. The foresight in these parameters set by the Department of initiatives is presently being realised Human Services in the Safe Drinking Bruno Spiller in the regulatory environments Water Regulations. Laura’s role Bruno Spiller joined the Authority established through the WIRO, the includes tasks such as; 4 years ago as part of the Northern Safe Drinking Water Act 2003, White • Water treatment plant District Operations and Maintenance Paper and Statement of Obligations. adjustments including jar tests team and 12 months ago commenced Looking forward, Bruce is aspiring of raw water supplies and working as a water treatment to become more involved in the laboratory testing for water at operator. management of the Authority. He different stages of treatment Bruno’s main responsibility is the sees the future of Goulburn Valley • Filter monitoring and day to day running of the Numurkah, Water as being one of steady maintenance Nathalia, Barmah, Picola and improvement in service delivery by • Monitoring, cleaning and Wunghnu water treatment plants. embracing innovative initiatives and calibration of all instrumentation On a daily basis Bruno records achieving steady cultural change. • Monitoring and ordering of plant information such as the flow Bruce believes it is no surprise that chemicals and laboratory from the river, flow to the towns, Goulburn Valley Water is a leading consumables number of hours the pumps have water business and he believes that • Monitoring, maintenance and been operating, how much backwash the Authority has significant potential calibration of pumps water has been used and how much to improve its position over the • Water quality sampling in the has been reclaimed. coming years. It will be an exciting reticulation network as well as in Each week Bruno undertakes water time. the treatment plants quality testing at specified sites • General housekeeping in each town. These sites include Operational Staff One of the biggest challenges Laura the raw water offtake, the treated faces is treating the ever changing water storage and special sample water from the Goulburn River. The points within the town. The tests raw water quality in the Goulburn include pH, turbidity, true colour, River can change dramatically within chlorine residual and the aluminium very short periods of time and with residual. Additional samples are also little treated water storage capacity sent to an independent laboratory in Shepparton there is no other for bacteriological testing. A more Laura Hooper choice than to continue treating. intensive testing regime is undertaken Goulburn Valley Water’s Central To assist her in her role Laura is quarterly and this includes testing for District is divided into three looking forward to the automation a broad range of chemical elements sections, Water Treatment, of the two sedimentation plants at such as iron, manganese, nitrate, Wastewater Management Facilities the Shepparton plant as well as the phosphorous, cadmium, and lead. and Operations & Maintenance. completion of two new large clear Bruno considers being given the Laura Hooper is a Water Treatment water storages. opportunity to learn water treatment

Goulburn Valley Water Organisation Capability 39 raiainCapability Organisation

as being one of the highlights of his that people do not realise. Her role Mijo Darveniza time with Goulburn Valley Water. One includes tasks such as:- Engineering Scholarship of his biggest challenges has been • Payroll; In 2003 Goulburn Valley Water treating the raw water for Nathalia • Payroll Tax and month end established the Mijo Darveniza and Numurkah after heavy rainfall balancing; Engineering Scholarship. The in February caused the water quality • Maintenance of superannuation scholarship is for a full time Victorian in the Broken River to deteriorate. records and general university student undertaking an During this time Bruno had to administration; engineering or water related course undertake more frequent testing so • Maintenance of employee and whose parental home address is that adjustments could be made to records; within the Goulburn Valley region. the treatment plants. He also had • Workcover claims; and There is a recognised shortage of to modify the treatment process • Documentation connected with engineers in the water industry, and one to handle the extreme raw water employees commencing and way to attract graduates into the water turbidity and colour conditions. terminating. industry is to offer a scholarship. The Bruno’s role is not restricted to just As well as all the payroll aim of the scholarship is to promote the the operation of the water treatment responsibilities, Jeanette is also water industry to tertiary level students plant. The Northern District consists responsible for the Authority’s fleet and support a full time student from the of nine people and everyone is also administration. She arranges the Goulburn Valley region. involved in emergency repairs. This fleet changeovers and the ordering The Scholarship is offered each year to includes repairing water mains, and maintaining of fuel cards for students completing their second year of clearing sewer blockages and Board vehicles. tertiary study in courses such as Civil or responding to customer enquires. Over the 24 years Jeanette has Environmental Engineering. Recipients Every 5 to 6 weeks Bruno is rostered seen many changes, gone are the of the scholarship receive two benefits, to be available to respond to any days when she use to get driven a cash component and vacation problem that occurs outside normal down to the bank to withdraw employment for two consecutive years. working hours. cash for payroll and to count out The Scholarship has been awarded the money into everyone’s pay to two students thus far. Matthew Payroll Officer envelope. It is now fully automated. Drysdale of Yea was the inaugural The payroll function has changed winner in 2003. In 2005, Matthew will from a fully manual system, to complete his final year of a Bachelor of a semi-automated system using Environmental Engineering (Majoring spreadsheets, to a fully automated in land and water management) at system. There has also been a shift Monash University in Clayton. in the approach to training, safety, Stuart Jones was the 2004 winner privacy and EEO. and is undertaking a double degree at Since working with the Goulburn Melbourne University in Environmental Jeanette Berry is one of the Valley Water, Jeanette’s greatest Engineering/Science with science most important people employed challenge has been the numerous majors of Environmental Science and by Goulburn Valley Water. She is the amalgamations that the Authority Ecology. In 2005 Stuart is in the fourth Authority’s Payroll Officer. Jeanette’s has been through. Some of the year of a five year course. employment with the Authority amalgamations came with very few To be eligible for the scholarship commenced as a six week temporary employee records. The highlight for candidates must meet the following position in the Revenue Department Jeanette has been the introduction of criteria: of the Shepparton Urban Water Trust. the new payroll software package in • Studying a full-time The CEO soon discovered that she 2004. It is less labour intensive, more undergraduate engineering had payroll experience and Jeanette streamlined and is extremely user degree at a Victorian University; has been with the Authority and its friendly. She is looking forward to • Major must be in a water related predecessor bodies for over 24 years. full potential of the software package field; As suggested by her position title being introduced across the entire • Entering the third year of study; Jeanette’s main area of responsibility Authority which will enable employees and is payroll, but it is not as simple as to check their own leave entitlements • Parental home must be located in that as payroll has many aspects and apply for leave on line. Goulburn Valley Water’s Region.

40 Goulburn Valley Water 2005 Annual Report Recipients of Certificate II & III with Laurie Gleeson and Allen Gale

Staff Training Board and senior management. in the Authority’s safety policies As a testament to this support, 25 and procedures is provided to all Goulburn Valley Water has a employees achieved Certificates new operators as part of a formal structured training program, which in Water Operations in September induction process. was developed in conjunction with a 2004. One employee achieved Operational and technical field staff review team. This approach Certificate III and 24 employees employees are trained in more to training is providing an industry achieved Certificate II. specific areas including: leading training program for the Four employees also successfully • Confined space entry Authority’s field staff. The benefits completed Certificate IV in • Fall protection have not been fully realised but as Workplace Trainer and Assessor and • Safe handling of chemicals each member of staff achieves a level 21 employees completed Certificate • Electrical spotters of competency the level of expertise III in Business Administration. • First aid and delivery of service to customers Occupational Health and Safety • Operation of plant and equipment improves. To ensure that the training continues to be a high training • Fire safety program continues to be relevant and priority for Goulburn Valley Water. • Safe handling of asbestos properly implemented, reviews of the A significant number of employees • Manual handling strategy are undertaken annually. attended a range of courses • Trenching and excavation The training strategy is fully designed to help protect employees supported by Goulburn Valley Water’s and members of the public. Training

Goulburn Valley Water Organisation Capability 41 raiainCapability Organisation

OH&S In addition to the above initiatives 2003 health and safety audits were Goulburn Valley Water is committed undertaken at 274 Goulburn Valley Goulburn Valley Water continues to continual improvement in the area Water sites. From this audit over to have a strong focus on health of OH&S, including:- 1,200 issues were identified and as and safety. During 2004/2005 • The ongoing identification at June 2005, 90% of the identified the following initiatives have been and assessment of hazardous issues have been rectified. The issues undertaken by the Authority: manual handling tasks. included physical improvements such • Development of guidance • The ongoing growth and as provision of handrails, equipment material to assist suppliers development of the OH&S guarding, fire protection equipment, and designers of major project Committee. The committee safety signage and completion of works to identify key OH&S members participate in safety documentation and statutory requirements at the design stage routine meetings which is fully risk assessments of a project and amend or alter supported by management. The While the Authority did not achieve the design to improve health and aim is to move the committee its target of a 10% reduction in safety for the operator. towards examining strategic its Lost Time Incident Rate, the • The development and issues and reviewing past hours lost from workplace injury implementation of emergency incidents. reduced significantly (by over 400 procedures at all major • Further development of hours - Lost Time Hours Rate). Goulburn Valley Water sites. The Goulburn Valley Water’s OH&S This improvement reflects the procedures include information management system. Authority’s efforts in implementing on managing emergencies such • Involvement in other OH&S more effective return to work as chemical spills, physical and forums - Goulburn Valley Safety opportunities for injured workers non physical threats, medical Group & VicWater OH&S as well as a reduction in the emergencies, fire, flood and Professional Forum. severity of injuries. It is expected storms. Throughout 2004/2005 significant improvements from a review of • The development of an OH&S progress has been made to rectify all lost time incidents will provide training matrix and OH&S the OH&S issues identified by an effective strategies for reducing training calendar. independent auditor. In October injury numbers in future years.

Andrew Roberts (Water Treatment Australia) explains the workings of the saturator on the recently constructed upgrade to the Cobram WTP to Mark Putman (GVW)

42 Goulburn Valley Water 2005 Annual Report Information Technology This delivers integrated voice and system. Accounts are also stored data communication across the electronically for future reference if IT is an important element of any Authority’s corporate network. It required. organisation. Technology is constantly provides the 24 hours Customer NetBill is installed free of charge changing and to remain effective and Service Centre and the Revenue to the customer along with backup efficient an organisation must have a Customer Service departments support, training and procedure successful IT strategy. with call centre functionality which manuals. All the customer is In 2004/2005 a project to install ensures the efficient handling of required to have is access to email microwave links to connect the customer calls and provides detailed and the internet. NetBill has been Shepparton administration centre, performance reporting. successfully installed at Shepparton Shepparton water treatment plant To assist in payment of accounts Retirement Village and is currently and the Shepparton operations centre for customers who have numerous being promoted with City of Greater was successfully completed. The accounts or are billed monthly, Shepparton, Major Customers - SPC links provide the high performance Goulburn Valley Water has Ardmona, Campbell’s, Tatura Milk, redundant high speed connectivity introduced NetBill. This provides Unilever, associated Councils and all necessary to operate a converged an on-line facility to view and pay large Retirement Villages. voice and data environment across accounts electronically which will It is expected to have several the three key sites. streamline the process immensely; customers using NetBill by the end A new IP Telephony system was saving the customer time and money of 2005. also introduced in 2004/2005. compared to the normal paper based

Goulburn Valley Water Organisation Capability 43 iaca efrac n Compliance and Performance Financial

Financial Performance and Compliance

The 2004/2005 Corporate Plan for Goulburn Valley Water identified four goals for Financial Performance and Compliance. Outlined on the following page are the goals, the activities undertaken to achieve the goals and the status as at 30 June 2005.

44 Goulburn Valley Water 2005 Annual Report Key Targets & Initiatives Corporate Goal Status @ 30 June 2005

Manage the Authority’s Systems are in place. Policies and financial resources procedures have been updated and Develop the systems and skills in a responsible and additional data is now being captured to required for operating, managing and accountable manner. report to the ESC. Senior Management reporting in an ESC environment. Group are still assessing the need for Maintain a positive additional resources in future years. return on investment to our shareholder. The Water Plan was submitted to the ESC in September 2004. A response to the Manage the capital Prepare a submission to the ESC ESC’s Draft Determination was submitted resources of the which proposes a pricing structure Authority in a manner in April 2005, and a Final Determination which reflects the was received from the ESC in June 2005. long-term development Refine internal audit procedures Internal audit plan has been needs of the region. to ensure they are focusing on key updated for next 2 years. Ensure our pricing business control and risk areas. structure is fair and supports the Authority’s goals in Completed as part of Financial relation to return Undertake a gap/risk analysis of Management Compliance Framework on investment, current processes and procedures September 2004 and progressively environmental towards June 2005 certification. sustainability and regional development.

Goulburn Valley Water Financial Performance and Compliance 45 iaca efrac n Compliance and Performance Financial

New water storage tank at Strathmerton Business Performance Capital Works 2005 2004 2003 2002 2001 Goulburn Valley Water continued $’000 $’000 $’000 $’000 $’000 its significant capital works program Total Revenue 49,035 47,235 51,658 41,200 33,989 in 2004/2005, with expenditure of almost $30.2 million on 123 projects. Expenses other 30,232 24,940 24,584 21,540 20,017 The variance between the budget and than Depreciation actual is due to a revised program Depreciation 13,483 12,847 12,074 10,911 9,941 including deleted projects and delays caused by issues such as acquisition Net Profit 5,320 9,448 15,000 8,749 4,031 of land, legal actions and planning conditions imposed by Councils. Total Assets 479,315 457,317 447,670 430,339 382,913 Borrowings 27,895 11,228 10,018 11,160 12,787 Consultancies Shareholders 442,744 437,424 427,976 412,399 364,460 Equity A number of consultants were engaged to carry our specific tasks Return on Assets 1.39% 2.26% 3.61% 2.26% 1.39% during the year. There were ten Gearing Ratio 0.06 0.03 0.02 0.03 0.03 separate engagements costing a total of $252,676. Interest Cover 14.27 13.14 19.03 9.96 4.07 During 2004/2005 no consultancies Ratio of over $100,000 were entered into.

46 Goulburn Valley Water 2005 Annual Report Contracts National Multicultural Policies

Over $10 Million Competition Policy Goulburn Valley Water is mindful of During 2004/2005 no contracts Neutrality is a guiding principle of the State Government’s Multicultural valued at over $10 million were entered the National Competition Policy. It Policy and shares its commitment to into and the Authority entered into 42 requires that Government owned promoting programs and strategies contracts of less than $10 million. businesses should compete aimed at delivering culturally with private sector businesses appropriate services. The Board on the same footing. Goulburn endeavours to ensure that our Building Act 1993 Valley Water has operated in a systems and staff are sensitive to manner that meets the National cultural and language diversity within During the reporting period, the Competition Policy compliance our customer base and regional Authority met relevant compliance requirements. community. provisions of the Building Act 1993 in building and maintenance activities. Freedom of Whistleblowers Information Act 1982 Victorian Industry Goulburn Valley Water has developed Participation Policy During 2004/2005 there was procedures in accordance with one written request for information Section 68(3) of the Whistleblowers (VIPP) accompanied by an application fee Protection Act 2001 which comply of $22.50. The response was initially with the Ombudsman’s Guidelines. Goulburn Valley Water has rejected as exempt under section The main objective of the implemented procedures in 30(1) of the Act within the statutory Whistleblowers Protection Act 2001 accordance with Section 9 of the period of 45 days. An internal review is to encourage and facilitate the Victorian Industry Participation Policy was subsquently undertaken and the marking of disclosures of improper (VIPP) Act 2003. The VIPP forms part information requested was released conduct or detrimental action by of our consultancy handbook which is in full. public officers and public bodies. issued to all consultants undertaking The following officers have been During 2004/2005 no disclosures projects for the Authority. The appointed in accordance with were made under the Whistleblowers handbook requires consultants to the provisions of the Freedom of Protection Act 2001. ensure the VIPP forms part of all Information Act 1982; Tender documentation. Principal Officer – Chief Executive Authorised Person – Director Corporate Services Government There were no hearings or appeals Contributions in relation to FOI matters for 2004/2005. $250,000 has been recognised for the year as the contribution from the Department of Innovation, Industry Information Prepared and Regional Development towards and Available the construction of the Cobram- Strathmerton pipeline. Additionally, The information listed in an amount of nearly $10,000 has Financial Reporting Direction 22 been recognised for the year as of the Financial Management Act a grant from the Department of 1994 is held at Goulburn Valley Sustainability and Environment Water’s office in Shepparton and towards the establishment of irrigated is available on request, subject reuse plantations located at the to the Freedom of Information Act Rob Jones (GVW) and Rob Armistead (Armistead Seymour and Broadford wastewater 1982 and the Information Privacy Earthmoving) discussing the decommissioning management facilities. Act 2000. process at Honeysuckle Creek Reservoir.

Goulburn Valley Water Financial Performance and Compliance 47 oprt Governance Corporate

Corporate Governance

In 2004/2005 Corporate Plan Goulburn Valley Water set three goals for Corporate Governance. Outlined on the following page are the goals, the activities undertaken to achieve the goals and the progress status as at 30 June 2005.

Pipes along the HRAL at Shepparton WMF

48 Goulburn Valley Water 2005 Annual Report Goal Key Targets & Initiatives Corporate Goals Status @ 30 June 2005 The risk management framework was revised by consultants URS when they partnered Apply a risk- with Goulburn Valley Water to produce the based approach Corporate Risk Strategy in December 2003. The to planning, framework has subsequently been extended budgeting and Develop a comprehensive Risk in System Procedure SP-01, Risk Management decision-making Management Framework to incorporate a semi-quantitative assessment processes process to identify operational level risks warranting full quantitative assessment. In addition, implementation of the ERA software platform is facilitating efficient risk management, performance monitoring and reporting. Conduct the A Board Charter was developed during Develop a formal Code of business affairs 2004/2005 and the final version approved at Conduct/Charter for the Board. of the Board the June 2005 Board Meeting - see page 52 in a manner The roles and objectives of the Board Committees consistent with have been reviewed in past 12 months, and best-practice Undertake a review of membership of Committees was reviewed by the principles of Board sub-committees Board at December 2004 meeting. The Board has corporate resolved to undertake triennial reviews in the future. governance. The Chairman and Board Members discuss Implement a development plan and identify development needs as part for Board members of the annual Board review process. Maintain Undertake a Board-member The Board undertake at least 2-3 visits per year performance education program incorporating a During 2004/2005 members have undertaken management monthly schedule of field visits to key a number of activities – see page 53 and reporting assets, facilities and customers. procedures that ensure 2003/2004 review completed by external Undertake an externally accountability to consultant during 2nd half of 2004. Internal review facilitated annual review of the Government of 2004/2005 Board performance completed the Board’s performance. and other and submitted to Minister in June 2005. stakeholders.

Goulburn Valley Water Corporate Governance 49 oprt Governance Corporate

L-R Margaret Rae, Catherine Scott, Bruce Chamberlain, Mijo Darveniza, Michael Hall, Allan Layton, Jennifer Houghton

Board • Monitoring operational and Board Composition financial performance on a The Board of Goulburn Valley regular basis; The Board comprises seven members Water operates under the • Ensuring that risk management appointed by the Minister for Water. provisions of the Water Act 1989 systems are in place to cover The following members of the Board and has ultimate responsibility for environmental, operational and were appointed for a three year period. the corporate governance of the financial risks; Jenny Houghton (Deputy Chairman), Authority. • Reviewing the performance of Bruce Chamberlain, Michael Hall, Allan The Board is responsible for the Chief Executive Officer and Layton, Margaret Rae and Catherine setting strategic direction, senior management; Scott. Mijo Darveniza (Chairman) was establishing goals and objectives • Enhancing shareholder and appointed for a 12 month period from 1 for executive management and community value; November 2004 to 31 October 2005. monitoring the business on behalf • Ensuring that Goulburn of its customers and the Victorian Valley Water has policies and Government. procedures to satisfy its legal Key corporate governance and ethical responsibilities; and responsibilities of the Board include: • Reporting annually to the • The adoption and monitoring Victorian Government and other of Goulburn Valley Water’s stakeholders on the financial and Corporate Plan, Water Plan and operational performance of the Statement of Obligations; Authority.

50 Goulburn Valley Water 2005 Annual Report Board Members Michael Hall, lives in Shepparton development initiatives. Since moving and has a Bachelor of Arts majoring to Buxton, Margaret has also become Mijo Darveniza OAM, Chairperson. in Economics and Accountancy. an active member of the Goulburn Mijo is a retired Shepparton Michael is a member of the Institute Broken Waterwatch Monitoring Group businessman. He has been involved of Chartered Accountants of Scotland and has developed a keen interest in in the water industry since 1973 and Australia, a Registered Tax Agent the health of our rivers. and has been Chairman of Goulburn and a Registered Company Auditor. Catherine Scott, lives at Bylands Valley Water since March, 1994. Michael is currently a Partner in near Kilmore and operates a beef Mijo has led the Authority through charge of Audits and Practice cattle stud. She is an experienced a significant period of reform in Administration at Maxwell Brown board member and senior executive the water sector and maintained and Mountjoy. Michael is active in a with over 15 years experience in the excellent relationships with the range of community roles including finance/investment banking industry Government and other stakeholders. Shepparton Golf Club, Goulburn with a strong focus on infrastructure His time as Chairman has seen Valley Health, Fairley Leadership and agribusiness funding. Catherine a major program of upgrade and Program and the Goulburn Valley has a unique combination of renewal of water and wastewater Grammar School. investment banking and corporate infrastructure, major tariff reforms Allan Layton retired as General experience in aviation, infrastructure and the delivery of improved water Manager Operations, Southern and agriculture sectors. Catherine is and wastewater services to many Hydro after more than 30 years in a Non-Executive Director of V-Line customers throughout the region. the Victorian electricity industry. Passenger Pty Ltd and VicForests. Jennifer Houghton, Deputy Chair. With a technical background, Allan She is also Deputy Chair of Goulburn Resides at Longwood and has been is also experienced in training and Broken Catchment Management a member of Goulburn Valley Water development, industrial relations, Authority (GBCMA) Chair of GBCMA Board since November, 1997. She electricity trading, and business and Audit Committee and Chair of has a background in teaching, is a financial management. Allan is an the VicForests Audit Committee. commercial pilot and a Director of the active volunteer with the Country She holds a Bachelor of Science Aerospace, Defence and Maritime Fire Authority and with Red Cross, (Honours) degree, a Bachelor of Foundation. As a Board Member President of the Alexandra District Commerce Degree and is a graduate of the Kangan Batman Institute of Hospital, Treasurer of the Darlingford of the Australian Institute of Company TAFE, Jenny follows her passion for Upper Goulburn Nursing Home, and Directors. aviation and education for which Vice-President of the Alexandra she has been recognised nationally District Ambulance Service. and internationally. She operates Margaret Rae has a background an award winning vineyard in the in both the public and private foothills of the Strathbogie Ranges. sectors and a well established Bruce Chamberlain is a Certified professional career in the university Practising Accountant living and sector particularly in the areas of practicing in Kilmore and has a policy development and application, Bachelor of Business majoring in strategic planning, financial analysis Accounting. He has been Chairman of and legislative matters. Through Kilmore & District Hospital and Kilmore extensive experience on a range of Agricultural & Pastoral Society and is boards and committees, including presently Chairman of the Board of two terms as Deputy Chair of the Lake Kilmore International School. He is Mountain Alpine Resort Management also Treasurer and a Board Member of Board and current appointments to the Equestrian Federation of Australia the Board of the Alexandra District (Victorian Branch) and a Trustee (and Hospital and as Treasurer/Secretary past Chairman of Trustees) of Kilmore for the Buxton Rural Fire Brigade, Racecourse & Recreation Reserve Margaret brings a range of skills to as well as a Director of the Victorian bear on the complex issues managed Indigenous Nurseries Co-Operative by the Board in conducting its core Ltd. business and in future planning and

Goulburn Valley Water Corporate Governance 51 oprt Governance Corporate

Board Meetings Michael Hall (Chair), Jenny Houghton performance, compliance with the and Catherine Scott. All members EMS and water quality guidelines. and Committees are independent in character The Committee assists the Board in Board meetings are scheduled and judgement and there are no fulfilling its duties and responsibilities for the first Wednesday of each relationships or circumstances which relating to OH&S policies and month except January. Additional could affect, or appear to affect, the standards. meetings are convened from time Member’s judgement. The Board The Operations, Environment and to time as circumstances arise and Chairman, Mijo Darveniza, is an ex- Safety Committee members are Allan periodic infrastructure inspections officio member of the Committee. Layton (Chair), Bruce Chamberlain and consultation meetings are The Committee Secretary is the and Margaret Rae. The Board undertaken throughout the year. Director – Finance, Graeme Jolly. Chairman, Mijo Darveniza, is an ex- The Chief Executive and senior officio member of the Committee. executives attend all Board Meetings. The Remuneration Committee The Committee Secretary is Director The Director – Corporate Services Reviews the performance and – Technical Services, Allen Gale. Peter Quinn is the nominated Board remuneration of senior executives Secretary and provides advice to the within the policy parameters issued Board on governance matters. by the Government Sector Executive Board Performance The Board has established three Remuneration Panel (GSERP). Review Committees to assist in carrying out The Committee, on behalf of the its functions and responsibilities. Board, strives to attract, retain and An internal review of Board Minutes of Committee meetings are motivate senior executives of the performance was undertaken for the presented to the full Board. quality required to provide sound 2004/2005 year and a report was performance and leadership of the submitted to the Minister in June The Audit Compliance Authority. 2005. Committee The Remuneration Committee The committee is delegated the task members are Mijo Darveniza (Chair), of over viewing all financial matters Jenny Houghton, Michael Hall and Board Charter including appointment of internal Catherine Scott. auditors, review of audit programs, As part of the review of Board adequacy of internal financial controls, The Operations, Environment performance and effectiveness operating and accounting policies and and Safety Committee in 2004 one of the improvement controls. Is responsible for reviewing the items identified by the Board was The Audit Committee members are Authority’s operational environmental the development of a Board charter or governance manual. A sub- committee of the Board comprising Allan Layton, Margaret Rae, Bruce Name Chamberlain and the Director Corporate Services developed a draft Charter for the Board’s Board Board Meetings Board Special Meetings Audit & Compliance Committee Remuneration Committee Operations Environment & Safety Committee consideration and final approval in Mijo Darveniza 11/11 4/4 4/4* 1/1 1/4* June 2005. The Charter documents the high level Jenny Houghton 10/11 4/4 4/4 1/1 powers and functions of the Authority Michael Hall 10/11 3/4 4/4 1/1 and the Board and articulates some of the measures by which the Board Allan Layton 10/11 3/4 3/4 collectively, and individual Board Margaret Rae 10/11 4/4 3/4 members will fulfil their obligations. It also covers protocols about the Catherine Scott 10/11 2/4 3/4 1/1 relationship between Board members and Goulburn Valley Water officers; Bruce Chamberlain 10/11 2/4 3/4 and external communication by the * ex-officio Member Board or Board members.

52 Goulburn Valley Water 2005 Annual Report Peter Jackson at the Murchison WMF Board Education Program

In October 2003 Goulburn Valley • Visited the Kilmore reclaimed • Risk Management Water held a strategic planning water reuse facility in October database ERA (Dec 04) session at Woodend. At this 2004 to inspect the works • Hydraulic Models & workshop the Authority’s Board including centre pivot irrigation GIS (Feb 05) agreed to develop a Board-member system • IT Projects (Feb 05) education program incorporating a • Visited the Shepparton HRAL • Planning Tracker monthly schedule of field visits to for the announcement of the (March 05) key assets, facilities and customers. Diamond Energy co-generation • Waste Data Management During 2004/05 members have project in March 2005 System (April 05) undertaken the following activities: • Visited the Eildon Dam to • CCTV and WinCan • Presentation from the Mayor, inspect rehabilitation works software (May 05) CEO and Councilors of the being undertaken by the G-MW The Board also resolved at the City of Greater Shepparton alliance in June 2005 Woodend planning workshop to about the proposed Freight Board-members have also been instigate strategic discussions in Logistics Centre in July 2004 provided with comprehensive conjunction with Board meetings on • Presentation from Melita presentations from Goulburn Valley key issues of importance to Goulburn Stevens, Senior Microbiologist Water employees on the Authority’s Valley Water. In February 2005 the at Melbourne Water about key management systems and Board had a session on standards of Coliforms in water quality programs including: water supplies in small communities compliance in August 2004 • Hansen Asset Management and associated pricing implications • Visited Campbell’s Soups factory system (Oct 04) and three strategic discussion topics at Shepparton in August 2004 • Preparation of Capital Works have been scheduled for the second • Met with the Shire of Strathbogie Program (Nov 04) half of 2005. regarding Honeysuckle Creek • Community Education Reservoir in September 2004. Program (Nov 04)

Goulburn Valley Water Corporate Governance 53 efrac Reporting Performance

Performance Reporting

Financial Performance Indicators

2004/2005 2004/2005 Indicator Variance% Target Actual Long Term Profitability 0.5% 1.4% 180%

Owner’s Investment 0.2% 1.2% 500%

Long Term Financial Viability 7.0% 5.8% -17.1%

Liquidity and Debt Servicing N/A 14.26 N/A

Immediate Liquidity and Debt Servicing N/A 33.70 N/A Operating Efficiency Water Supply/Wastewater Collection Water Supply Bulk N/A N/A N/A

Water Supply Reticulation N/A $167.29 N/A

Water Supply Treatment N/A $312.77 N/A

Wastewater Reticulation N/A $300.91 N/A

Wastewater Treatment N/A $562.34 N/A Variance Report – Financial Performance Indicators

The actual trading result achieved for the year was greater than business plan targets for Long Term Profitability and Owner’s Investment, because revenue and earnings before interest and tax exceeded budget due to an increase in development and gifted assets. In addition, interest expense was below budget for the year because interest rates were lower than expected. The Long Term Financial Viability indicator is better than target. Debt is less than target due to strong trading cash flows for the year. All other Performance Indicators are not reported against a target as the Department of Sustainability and Environment have amended the Performance Indicator definitions. 2004/2005 actual results are provided for information purposes only.

54 Goulburn Valley Water 2005 Annual Report Service Delivery Performance Indicators

Reliability of Supply – Urban Supply 2004/2005 2004/2005 Indicator Variance % Target Result Properties Interrupted ratio 20% 20.4% 2%

Interruption Time 1.8 hours 1.7 hours -6%

Variance Report – Reliability of Supply – Urban Supply Properties Interruption Ratio

This ratio measures the proportion of consumers who experience service interruptions during a year. The 2004/2005 figure is marginally above the target, but below the 2003/2004 figure of 22.6%. Note that in 2004/2005 a total of 294 unplanned and 195 planned interruptions occurred. An increase in planned interruptions occurred as non urgent maintenance works are being deferred to allow for a minimum of 48 hours notice of a service interruption to be provided to consumers.

Interruption Time The average interruption time relates to the time it takes to repair supply failures. In 2004/2005 Authority staff achieved an average interruption time of 1.7 hours. This compares to a target of 1.8 hours. Reliability of Wastewater Collection Services 2004/2005 2004/2005 Indicator Variance % Target Result Sewer Overflows/100km of main 6 6 0% Variance Report – Reliability of Wastewater Collection Services Sewer overflows usually occur due to blockages caused by tree roots. Pump station failures are also a common cause of overflows. In 2004/2005 68 sewer spills were recorded. Most were of a minor nature and were caused by tree roots. A regular sewer cleaning maintenance program is in place and is used to minimise blockages and the resultant sewer spills.

Goulburn Valley Water Performance Reporting 55 efrac Reporting Performance

Quality of Reclaimed Water by Wastewater Management Facility Reclaimed water produced by each wastewater management facility is closely monitored and its performance measured against EPA licence requirements. Results for each facility in 2004/2005 are shown below. Aggregate annual performance Short term/persistent Wastewater of a treatment or reuse facility compliance with EPA Licence Management Business Business Overall sets Overall Variance Variation Facility Plan Plan (Sampling tests (%) (%) (%) Target (%) Target (%) events) (%) Alexandra 100 92 8 100 65 35 Avenel 100 100 0 100 100 0 Bonnie Doon 100 100 0 100 100 0 Broadford 100 100 0 100 100 0 Cobram 100 100 0 100 100 0 Eildon 100 73 27 100 65 35 Euroa 100 100 0 100 100 0 Girgarre 100 100 0 100 100 0 Kilmore 100 100 0 100 100 0 Kyabram 100 100 0 100 100 0 Mansfield 100 100 0 100 100 0 Marysville 100 100 0 100 100 0 Mooroopna 100 100 0 100 100 0 Murchison 100 100 0 100 100 0 Nagambie 100 100 0 100 100 0 Nathalia 100 100 0 100 100 0 Numurkah 100 100 0 100 100 0 Seymour 100 100 0 100 100 0 Shepparton 100 100 0 100 100 0 Stanhope/ 100 100 0 100 100 0 Rushworth Strathmerton 100 100 0 100 100 0 Tatura 100 100 0 100 100 0 Tongala 100 100 0 100 100 0 Upper Delatite 100 100 0 100 100 0 Violet Town 100 100 0 100 100 0 Wallan 100 65 35 100 67 33 Yea 100 100 0 100 100 0

56 Goulburn Valley Water 2005 Annual Report Herding cattle at the Cobram WMF Variance Report – Quality of Reclaimed Water by Wastewater Management Facility Non-compliances at the Alexandra wastewater management facility occurred due to BOD limits being exceeded on some occasions during the discharge of tertiary treated reclaimed water to the Goulburn River. These BOD results were caused by high algae numbers in the lagoon based treatment system. Filtered BOD levels, which are more meaningful in this type of system, were much lower and below the BOD limit. Non-compliances at Eildon wastewater management facility occurred during commissioning of a new tertiary treatment plant. The non-compliances related to pH levels being outside the specified range and elevated BOD and E.coli levels. The plant is now fully commissioned and performing satisfactorily with EPA licence conditions being fully met. Non-compliances at Wallan wastewater management facility occurred during an emergency release of reclaimed water to the Merri Creek. Discharge to the Merri Creek ceased on November 2004. This was a short term requirement until a new winter storage was commissioned in July 2005.

Goulburn Valley Water Performance Reporting 57 efrac Reporting Performance

Environmental Performance Indicators

Reclaimed Water Reuse by Wastewater Management Facility

Goulburn Valley Water operates 27 separate wastewater management facilities. Three of these facilities discharge limited volumes of tertiary treated reclaimed water to the Goulburn River. All other reclaimed water is used for irrigation. Details of the reuse performance at each wastewater management facility is shown below. Business Wastewater Plan Total Reused Variance (%) Management Facility Target (%) (%) 2004/2005 Alexandra 20 44 -120 Avenel 0 0 0 Bonnie Doon 100 100 0 Broadford 100 100 0 Cobram 100 100 0 Eildon 17 48 -182 Euroa 100 100 0 Girgarre 0 0 0 Kilmore 100 100 0 Kyabram 100 100 0 Mansfield 100 100 0 Marysville 100 100 0 Mooroopna 100 100 0 Murchison 0 0 0 Nagambie 100 100 0 Nathalia 100 100 0 Numurkah 100 100 0 Seymour 100 100 0 Shepparton 55 56 -2 Stanhope/Rushworth 0 0 0 Strathmerton 0 0 0 Tatura 100 100 0 Tongala 100 100 0 Upper Delatite 100 100 0 Violet Town 0 0 0 Wallan 100 61 39 Yea 100 100 0 % Reused = (Volume reused/ Volume exiting last process unit of the facility)* 100

58 Goulburn Valley Water 2005 Annual Report Variance Report - Reclaimed Water by Wastewater Management Facility Alexandra, Eildon and Shepparton wastewater management facilities all beneficially reused greater volumes of reclaimed water than targeted. Avenel, Girgarre, Stanhope/Rushworth and Violet Town are new wastewater systems where inflows have yet to reach the level where reclaimed water is available for irrigation. Strathmerton and Murchison rely on evaporation to balance inflows. The 39% variance at the Wallan wastewater management facility was the result of increased inflows and a delay due to land acquisition difficulties in the construction of a new winter storage and irrigation facility. The storage has since been completed and is now filling. Biosolids Reuse 2004/2005 2004/2005 Indicator Variance % Target Result Volume of sludge reused/recycled 27% 0 100% A total of 2,940 cubic metres of dried biosolids were used in late 2003/2004 by the Shire of Mitchell for capping at the Kilmore landfill site. These biosolids came from the Broadford wastewater management facility, and were not included in the 2003/2004 annual report. Removal of biosolids from treatment lagoons occurred at Shepparton, Tongala, Nathalia, Broadford and Cobram. These biosolids have been stockpiled, and are expected to be reused for landfill capping and soil conditioning on cropping land over the next 3 years. Network Reliability Performance Indicators 2004/2005 2004/2005 Indicator Variance % Target Result Restoration of Water Supply 98% 99% -1% within 5 hours Number of sewer spillages (priority 100% 99% 1% 1 and 2) contained within 5 hours Variance Report - Network Reliability Performance Indicators The single failure to contain a sewer spill within 5 hours occurred in February 2005 when Authority staff were unable to deliver a portable generator to a pump station at Heathcote Junction within a reasonable period of time due to severe storm damage and flooding in the area. Customer Complaints Performance Indicators Indicator 2004/2005 2004/2005 Variance % (Complaints per 1,000 customers) Target Result Water Quality Complaints 7.5 5.7 -24% Water Supply Reliability Complaints 6 3.9 -35% Sewerage Service Quality and 41.8-55% Reliability Complaints Affordability Complaints 3 0.1 -97% Other Complaints 2 1.3 -35% Variance Report - Customer Complaints Performance Indicators

All customer complaint categories were well below the respective targets. This can be attributed to a consistently prompt response by Authority staff to any system failure, and generally good customer relations. The largest number of complaints relate to water quality. This is an area where the Authority is continuing to improve the consistency of the quality of water produced at its treatment plants and the variability of chlorine levels in treated water. Many of the complaints received this year followed storm events in February which resulted in a severe degradation in raw water quality.

Goulburn Valley Water Performance Reporting 59 efrac Reporting Performance

Performance statement for 2004/2005

In our opinion, the accompanying Statement of Performance of Goulburn Valley Region Water Authority in respect of the year ended 30 June 2005 is presented fairly in accordance with the Financial Management Act 1994. The statement outlined the relevant performance indicators as determined by the responsible Minister, the actual results achieved for the year against pre-determined performance targets, and an explanation of any significant variance between the actual results and performance targets. As at the date of signing, we are not aware of any circumstance which would render any particulars in the Statement to be misleading or inaccurate.

Mijo Darveniza Laurie Gleeson Chairman Chief Executive

7 September 2005

60 Goulburn Valley Water 2005 Annual Report Goulburn Valley Water Performance Reporting 61 Financial Statements 2005 Annual Report 2005 Goulburn Valley Water Goulburn Valley

Performance Reporting 62 63

2004 $’000 2005 Financial Statements $’000 49,035 47,235 43,715 37,787 Note Goulburn Valley Water Water Goulburn Valley should be read in conjunction with the the with conjunction in read be should

The above of Financial Statement Performance Revenue fromRevenue Ordinary Activities Fees and ChargesDeveloper and Land Owner Contributions ContributionsGovernment RevenueInterest RevenueOther 3Expenses of Ordinary Activities ExpensesDirect 11,257Administration Expenses 13,573 Environmental Contribution 4 2 CostsBorrowing 33,258 260Profit from Ordinary Activities before Tax 5 30,253 Expense Tax Income 6 ProfitNet 459 782 3,478 8 7 926 2,024 6,757 34,645 5,320 1,130 9 6,642 30,367 9,448 - 1,183 10 778 - 5,320 - 9,448 Statement of Financial Performance for the year ended 30 June, 2005 Financial Statements Statements Financial accompanying notes accompanying

Financial Statements Statement of Financial Position as at 30 June, 2005 2005 2004 Note $’000 $’000 Current Assets Cash Assets 11 347 580 Receivables 12 8,816 7,646 Prepayments 258 266 Inventories 13 1,112 1,121 Total Current Assets 10,533 9,613

Non-Current Assets Receivables 12 9,547 10,068 Property, Plant and Equipment 14 459,235 437,636 Total Non-Current Assets 468,782 447,704 Total Assets 479,315 457,317

Current Liabilities Payables 15 5,817 6,035 Interest Bearing Liabilities 16 2,575 333 Provisions 17 1,381 1,235 Total Current Liabilities 9,773 7,603

Non-Current Liabilities Interest Bearing Liabilities 16 25,320 10,895 Provisions 17 1,478 1,395 Total Non-Current Liabilities 26,798 12,290 Total Liabilities 36,571 19,893 Net Assets 442,744 437,424

Equity Contributed Equity 251,548 251,548 Reserves 18(a) 152,679 152,679 Retained Profits 18(b) 38,517 33,197 Total Equity 442,744 437,424 The above Statement of Financial Position should be read in conjunction with the accompanying notes

64 Goulburn Valley Water 2005 Annual Report Statement of Cash Flows for the year ended 30 June, 2005

2005 2004 Note $’000 $’000 Cash Flows from Operating Activities Receipts from Customers (inclusive 44,603 41,505 of goods and services tax) Income Grants from Government Departments 260 459 Payments to Suppliers and Employees (31,459) (27,949) (inclusive of goods and services tax) Interest and Bill Discounts Received 780 965 Interest and Other Costs of Finance Paid (1,068) (733) Net Cash Inflow from Operating Activities 19 13,116 14,247

Cash Flows from Investing Activities Proceeds from Sale of Investments - 2,000 Proceeds from Sale of Property, Plant and Equipment 6 811 964 Payments for Property, Plant and Equipment (30,827) (25,770) Net Cash (Outflow) from Investing Activities (30,016) (22,806)

Cash Flows from Financing Activities Proceeds from Borrowings 17,000 8,000 Repayment of Borrowings (333) (6,790) Net Cash Inflow from Financing Activities 16,667 1,210

Net Increase (Decrease) in Cash held (233) (7,349) Cash at the beginning of the Financial Year 580 7,929 Cash at the end of the Financial Year 11 347 580

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

Goulburn Valley Water Financial Statements 65 iaca Statements Financial

Note 1 Summary of Significant Accounting Policies This general purpose fi nancial report has been prepared in accordance with the Financial Management Act 1994, applicable Accounting Standards, relevant Directions of the Minister for Finance and other mandatory professional reporting requirements (Urgent Issue Group Consensus Views). It is prepared in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation. Where necessary comparative fi gures have been adjusted to conform with presentation and disclosure requirements in the current year.

1(a) Revenue Recognition

Revenue is brought to account when services have been provided or when tariffs and fees have been levied.

Water and sewerage charges by measure are recognised as income when the service has been used. Meter reading is cyclical and, therefore, an estimation is made at the end of each accounting period for water services used by customers and recorded on meters which have not yet been read.

Gains or losses on disposal of non-current assets are calculated as the difference between the gross proceeds on sale and their written down value.

Contributions for capital works from all sources are normally treated as revenue and are disclosed in the notes to the financial statements as landowner contributions and headworks fees.

Landowner contributions represent assets acquired at no cost to the Authority. The fair value of these assets are recognised as revenue upon their acceptance by the Authority for maintenance in perpetuity.

Developers are required to make fair and reasonable contributions towards the cost of developing the Authority’s water supply distribution and sewerage disposal systems. These contributions are recorded as ‘headworks fees’ and are recognised as revenue upon receipt.

Government grants are recognised as revenue on receipt or when an entitlement is established, whichever is the sooner. However, grants received from the Victorian State Government for specific capital projects are treated as equity and disclosed in the Statement of Financial Position as “contributed equity” following Ministerial approval.

1(b) Income Tax

For the financial year 2001-02, the Authority was subject to the rules applicable under the State Equivalent Tax Regime administered by the Victorian Department of Treasury and Finance.

The Authority was notified by the Treasurer, of the Government’s decision to direct Regional Water Authorities to become subject to the National Tax Equivalent Regime (NTER) from 1 July, 2002. The NTER is administered by the Australian Taxation Office.

66 Goulburn Valley Water 2005 Annual Report Tax effect accounting procedures are followed whereby the income tax expense in the statement of financial performance is matched with the accounting profit after allowing for permanent differences. The future tax benefit relating to tax losses is not carried forward as an asset unless the benefit is virtually certain of realisation. Income tax on cumulative timing differences is set aside to the deferred income tax or the future income tax benefit accounts at rates which are expected to apply when timing differences reverse. Please refer further information Note 10.

The Authority has adopted the liability method of Tax Effect Accounting in accordance with the requirements of AAS 3.

1(c) Inventories

Inventories consist of stores and materials used by the Authority in construction, repairs and maintenance of works and livestock held on the Authority’s wastewater treatment farms. Inventories are valued at the lower of cost and net realisable value. Costs are assigned to stores and materials on the basis of weighted average cost.

In accordance with Accounting Standard AAS 35 Self Generating and Regenerating Assets, livestock are valued at net market value.

1(d) Revaluation of Property, Plant and Equipment

The Authority had proposed to revalue its infrastructure assets to fair value during the current year, however with the issue of Financial Reporting Direction 6A Application of Victorian Government Policy ‘Revaluation of Non-Current Physical Assets’ for water and rail entities, the Authority has chosen to adopt the existing valuation of infrastructure assets for this financial year.

The Authority undertakes formal revaluations on a regular basis, generally every 5 years.

Revaluation increments are credited to an Asset Revaluation Reserve (refer note 18) except to the extent they reverse a revaluation decrement previously recognised as an expense, that portion of the increment being included in revenue. To the extent that a revaluation decrement reverses a revaluation increment previously credited to and still included in the balance of the Asset Revaluation Reserve, the decrement is debited directly to that reserve. Otherwise the decrement is recognised as an expense in the Statement of Financial Performance.

1(e) Carrying Amount Of Non-Current Assets

The carrying amounts of classes of fixed assets are reviewed annually to determine whether they are in excess of their recoverable amounts at balance date. If the carrying amount of a class of fixed assets exceeds its recoverable amount, the assets are written down to the lower amount.

The recoverable amount of an asset is the net amount expected to be recovered through the net cash inflows arising from its continued use and subsequent disposal. Expected net cash flows have not been discounted to their present value in determining the recoverable amount for major asset groups.

Goulburn Valley Water Financial Statements 67 iaca Statements Financial

1(f) Property, Plant and Equipment Constructed by the Authority

The cost of non-current assets constructed by the Authority includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overhead.

1(g) Depreciation of Property, Plant and Equipment

All fixed assets with the exception of land are depreciated using the straight line method to write off the net cost or revalued amount of each item over its estimated useful life to the Authority. The estimated useful lives of each group of assets have been reviewed during the year , and adjustments made where required.

The estimated useful lives are as follows:

Buildings 30 to 50 years Infrastructure Assets 5 to 100 years Plant and Equipment 3 to 20 years

1(h) Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the Authority, are classified as finance leases. Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets are amortised over their estimated useful lives. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

1(i) Borrowing Costs

Borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing costs include interest on bank overdrafts, interest on borrowings and finance lease charges.

1(j) Provision for Dividend

An obligation to pay a dividend only arises after consultation between the Board, the relevant portfolio Minister and the Treasurer. Following this consultation a formal determination is made by the Treasurer. Although this process has not yet been completed at the reporting date, the Board’s preliminary dividend estimate in respect of the current year is nil.

1(k) Employee Benefits

(i) Wages and Salaries and Sick Leave

Liabilities for wages and salaries, including non-monetary benefits expected to be settled within 12 months of the reporting date, are measured at their nominal

68 Goulburn Valley Water 2005 Annual Report amounts in respect of employees’ services up to the reporting date. The nominal basis of measurement uses employee remuneration rates that the entity expects to pay as at each reporting date and does not discount cash flows to their present value. Non- vesting sick leave is not expected to exceed current and future sick leave entitlements, and accordingly, no liability has been recognised.

(ii) Annual Leave

Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balance date, including on-costs. Annual leave entitlements are provided for at their nominal value as above.

(iii) Long Service Leave

Long service leave expected to be paid within 12 months of the reporting date is recognised in the provision for employee benefits and is recorded as a current liability in the Statement of Financial Position at its nominal value. Long service leave expected to be paid later than one year is recognised in the provision for employee benefits and is measured at the present value of the estimated future cash outflows to be made for these entitlements and recorded as a non-current liability. Consideration is given to expected future employee remuneration rates, employment related on-costs and other factors including experience of employee departures and periods of service. Commonwealth Bond Rates are used for discounting future cash flows.

(iv) Superannuation

The Authority contributes in respect of its employees to the superannuation plans as detailed in note 22.

Any unfunded liability in respect of any of these plans is recognised in the financial statements of the Authority. Unfunded liabilities are defined as the difference between the present value of the employees’ accrued benefits at the reporting date and the net market value of the superannuation plan’s assets at that date.

1(l) Goods and Services Tax

Revenues, expenses and assets are recognised net of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense.

Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the statement of financial position.

Cash flows arising from operating activities are disclosed in the statement of cash flows on a gross basis – ie. inclusive of GST. The GST component of cash flows arising from investing and financing activities which is recoverable or payable to the ATO is classified as operating cash flows.

Goulburn Valley Water Financial Statements 69 iaca Statements Financial

1(m) Adoption of Australian Equivalents to International Financial Reporting Standards

Impacts of adopting AASB 1047 equivalents to IASB standards

For the reporting period ending 30 June 2006, the Authority is required to adopt the financial reporting requirements of the Australian equivalents to International Financial Reporting Standards (A-IFRS). The financial report for the year ending 30 June 2006 will require comparative information as at 30 June 2005 and hence will require opening balances for the financial year commencing 1 July 2004. The opening balances are to be adjusted to reflect the position that would have existed had A-IFRS always applied and such retrospective adjustments will be made against opening retained earnings.

The Authority is established to achieve the triple bottom line objectives of government which is incompatible with generating profit as a principle objective. There are requirements under A-IFRS that apply specifically to not-for-profit entities that are not consistent with the requirements of International Financial Reporting Standards. As the Authority is a not-for- profit entity those paragraphs in A-IFRS applicable to not-for-profit entities will be applied.

The Authority’s A-IFRS compliant financial report for the reporting period ending 30 June 2006 will include a new statement of changes in equity in addition to the three existing financial statements, which will be renamed. The Statement of Financial Performance will be renamed as the Operating Statement, the Statement of Financial Position will be renamed as the Balance Sheet and the Statement of Cash Flows will be renamed as the Cash Flow Statement.

The Authority has taken the following steps in managing the transition to A-IFRS:

- Allocated responsibility to relevant staff to oversee the transition to and implementation of A-IFRS. This included a review of the new accounting standards to identify likely impacts resulting from the adoption of A-IFRS and any relevant Financial Reporting Directions as issued by the Minister of Finance; and

- Provided education and training to relevant staff to raise their awareness of the changes in reporting requirements and the processes to be undertaken;

The financial report for the year ended 30 June 2005 has been prepared in accordance with current Australian accounting standards and other financial reporting requirements (AGAAP). A number of differences between AGAAP and A-IFRS have been identified as potentially having a material impact on the Authority’s financial position and financial performance on the adoption of A-IFRS. Set out below are key areas where accounting policies are expected to change on adoption of A-IFRS and the best estimate of the quantitative impact of the changes on net profit, net assets and total equity for the year ended 30 June 2005.

The estimates disclosed below are the Authority’s best estimates of the quantitative impact of the changes as at preparing the financial report for the year ended 30 June 2005. The actual effects of the transition to A-IFRS may differ from the estimates disclosed due to:

- Changes in facts and circumstances;

- Ongoing work being undertaken by Authority staff; and

- Potential amendments to A-IFRS and interpretations by the Australian Accounting Standards Board (AASB).

70 Goulburn Valley Water 2005 Annual Report Reconciliation of Net Result under AGAAP to that under A-IFRS Year ended Note 30 June 2005 $’000 Net result under AGAAP 5,320

Estimated AIFRS impact on revenues - Estimated A-IFRS impact on expenses (1,598) Income tax expense (AASB 112) Net Result under A-IFRS 3,722

Reconciliation of net assets as presented under AGAAP and that under A-IFRS Year ended Note 30 June 2005 $’000 Net assets under AGAAP 442,744 Estimated AIFRS impact on assets (i) 6,284 Deferred tax asset (AASB 112) Estimated A-IFRS impact on liabilities (i) (17,861) Deferred tax liability (AASB 112) Net Assets under A-IFRS 431,167

Reconciliation of equity as presented under AGAAP and that under A-IFRS Year ended Note 30 June 2005 $’000 Total equity under AGAAP 442,744

Adjustment to retained earnings

Recognition of deferred tax balances (AASB 112) (i) (9,979) Recognition of Equity movement - Income (i) (1,598) tax expense (AASB 112) – 2004/05 Recognising infrastructure assets at (ii) 138,206 deemed cost (AASB 116) Adjustment to reserves Recognising infrastructure assets at (ii) (138,206) deemed cost (AASB 116) Total equity under A-IFRS 431,167

Goulburn Valley Water Financial Statements 71 iaca Statements Financial

(i) Income tax

Under AASB 112 ‘Income Taxes’, deferred tax balances are determined using the balance sheet method which calculates temporary differences based on the carrying amount of an entity’s assets and liabilities in the statement of financial position and their associated tax bases. This standard also requires the recognition of all deferred tax liabilities, except in specific circumstances which do not apply to the Authority.

This will result in a change to the current accounting policy which calculates the deferred tax balances using the income statement method and does not specifically address the recognition criteria of deferred tax liabilities.

The impact of this change is expected to result in an increase in deferred tax assets of $6.284 million and an increase in deferred tax liabilities of $17.861 million as at 30 June 2005. Accordingly, income tax expense is expected to increase by $1.598 million for the year ended 30 June 2005. Unused tax losses of $5.150 million are recognised and included in the deferred tax asset balance.

(ii) Property, plant and equipment

In accordance with the transitional provisions of AASB 116 ‘Property, Plant and Equipment’ and the Ministerial Directions of FRD 115 ‘Non-Current Physical Assets’ the Authority will elect to measure items of infrastructure at the date of transition to A-IFRS at its existing value and use that existing value as its deemed cost as at that date.

This change in accounting policy will have no impact on the Authority’s Statement of Financial Position or Statement of Financial Performance. However, it will result in the asset revaluation reserve decreasing by $138.206 million and increasing retained profits by the same amount.

(iii) Financial Instruments

In accordance with FRD 101 ‘First Time Adoption of A-IFRS’ AASB 132 Financial Instruments: Disclosure & Presentation and AASB 139 Financial Instruments: Recognition & Measurement do not apply to this Authority upon A-IFRS transition. Any comparative information does not apply as at 30 June, 2005. These A-IFRS standards apply from 1 July, 2005 for comparative purposes.

(iv) Employee Benefits

On adoption of A-IFRS a distinction will be made between short-term & long-term Annual Leave employee benefits. AASB 119 Employee Benefits requires liabilities for short- term employee benefits to be measured at nominal amounts and liabilities for long-term employee benefits to be measured at present value. The effect of this requirement on the Authority’s Statement of Financial Position as at 30 June, 2005 is immaterial.

(v) Superannuation

In accordance with AASB 119 employers are generally required to account for their obligation for Defined Benefit Funds. However, an exception applies where a Defined Benefit Fund has no accurate way of allocating benefit liabilities, assets and costs between employers. The Authority’s defined benefit funds (refer note 22) are unable to identify each

72 Goulburn Valley Water 2005 Annual Report employer’s share of the underlying financial performance or position of the fund with any sufficient reliability for accounting purposes. As such, this Authority has not recognised any unfunded obligations as part of the A-IFRS impact assessment.

1(o) Rounding of Amounts

Amounts reported in the financial statements are expressed to the nearest thousand dollars, or in certain cases, to the nearest dollar. 2005 2004 Note $’000 $’000 Note 2 Fees and Charges Tariffs and Charges 16,156 14,499

Metered Charges 12,947 11,658

Trade Waste Charges 3,308 3,245

Licences and Fees 847 851

33,258 30,253

Note 3 Developer and Land Owner Contributions Landowner Contributions 7,251 8,774

Headworks Fees 4,006 4,799

11,257 13,573

Note 4 Government Contributions Capital Project Grant - Water 250 351

Capital Project Grant - Sewer 10 108

260 459

Note 5 Interest Revenue Interest on Investments 28 115

Interest on Tariffs, Schemes and Charges 754 811

782 926

Goulburn Valley Water Financial Statements 73 iaca Statements Financial

Note 6 Other Revenue Proceeds on the Sale of Property, Plant & Equipment (1) 811 964

Rent/Lease 345 284

Farm Revenue 661 598

Litigation Settlement 1,400 -

Miscellaneous 261 178

3,478 2,024

(1) Sale of Property, Plant and Equipment throughout the period realised a loss of $ 734,999 (2004: Loss $119,933) 2005 2004 Note $’000 $’000 Note 7 Direct Expenses Purchase of Raw Water 947 903

Maintenance 4,920 4,508

Water Treatment 6,862 5,874

Sewage Treatment and Pumping 8,645 6,760

Depreciation Infrastructure 14 11,725 11,238 Written Down Value of Property, Plant 1,546 1,084 and Equipment Disposed (1) 34,645 30,367

Note 8 Administration Expenses Salaries and Oncosts 3,290 3,410

Bad Debts Written Off 59 22

Audit Fees - External Audit (Auditor-General, Victoria) 42 35

Audit Fees - Internal Audit (Pitcher Partners) 45 27

Depreciation 14 1,758 1,609

Professional/Consulting Services 122 166

Office Expenses 625 629

Conservation and Consultation 151 218

Computer Expenses 252 210

Authority and Associated Expenses 413 316

6,757 6,642

74 Goulburn Valley Water 2005 Annual Report Note 9 Borrowing Costs Lease Charges - 7

Interest on Loans & Bank Charges 1,183 771

1,183 778

2005 2004 Note $’000 $’000 Note 10 Income Tax The income tax expense for the financial year differs from the amount calculated on the operating profit. The differences are reconciled as follows: Operating profit before income tax 5,320 9,448

Income tax calculated at 30% 1,596 2,834

Tax effect of permanent differences

Non-deductible depreciation 24 25

Capital Loss on Disposal of Asset 3 -

Legal fees and penalties - 2

Sundry items 2 1

Income tax adjusted for permanent differences 1,625 2,862

Benefit of tax losses for the year not 2,823 1,556 brought to account (refer (i)) Benefit of prior year tax losses brought -- to account in this year Net provision for deferred income tax (4,448) (4,418) not brought to account (refer (i)) Income tax expense attributable to operating profit - -

(i) A net provision for deferred income tax has not been brought to account in these financial statements because there is considerable uncertainty in respect to whether a taxation liability will ever eventuate. Assuming the Authority remains subject to the same price controls to which it has been subject in recent times, and assuming similar operating costs, it is projected that no taxation liability will occur for at least 20 years. With increasing service standards likely to increase operating costs in future, it may be that a taxation liability never occurs. Accordingly, the Authority does not believe it is appropriate to bring these taxation assets and liabilities to account at this time. Had the Authority brought these assets and liabilities to account, an income tax expense of $1.625 million would have been recognised in the statement of financial performance thus reducing the net profit by the same amount. Furthermore, a net deferred tax liability (the net of deferred tax assets and deferred tax liabilities) of $11.679 million would have been recognised as a non-current liability in the statement of financial position, which would also have reduced the net assets by the same amount.

Goulburn Valley Water Financial Statements 75 iaca Statements Financial

2005 2004 Note $’000 $’000 Note 11 Cash Assets Cash at Bank and on hand 347 580

Note 12 Receivables Current Receivables 8,916 7,746

Less Provision for Doubtful Debts (100) (100)

Total current Receivables 8,816 7,646

Non-current Receivables 9,547 10,068

Total Receivables 18,363 17,714

Note 13 Inventories Stores and Materials – at cost 594 641

Livestock – at net market value 1(c) 518 480

1,112 1,121

76 Goulburn Valley Water 2005 Annual Report 2005 2004 $’000 $’000 Note 14 Property, Plant and Equipment Land and Buildings

Freehold Land

At Independent Valuation 2001 19,995 19,995

At Cost 2,155 1,448

22,150 21,443

Buildings

At Independent Valuation 2001 9,484 9,496

Less: Accumulated Depreciation (1,192) (925)

8,292 8,571

At Cost 985 937

Less: Accumulated Deprecation (56) (34)

929 903

Total Land and Buildings 31,371 30,917

Infrastructure Assets

At Independent Valuation 2001 308,252 309,365 Less: Accumulated Depreciation (34,583) (26,529) 273,669 282,836 At Cost 120,660 103,776 Less: Accumulated Depreciation (7,964) (4,666) 112,696 99,110 Infrastructure Assets in the course of construction 36,117 19,471 Total Infrastructure Assets 422,482 401,417

Plant and Equipment

At Cost 11,667 10,476

Less: Accumulated Depreciation (6,285) (5,174)

Total Plant and Equipment 5,382 5,302

Total Property Plant and Equipment 459,235 437,636

Goulburn Valley Water Financial Statements 77 iaca Statements Financial

Note 14 Property, Plant and Equipment (Cont.) Valuation of Property, Plant and Equipment

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

Reconciliations

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current financial year are set out below. Freehold Infrastructure In Course of Plant & Buildings Total Land Assets Construction Equipment $’000 $’000 $’000 $’000 $’000 $’000 Carrying amount at 1 21,443 9,474 381,946 19,471 5,302 437,636 July 2004 Additions 707 48 16,887 16,646 2,340 36,628

Disposals - (12) (742) - (792) (1,546) Depreciation - (289) (11,726) - (1,468) (13,483) Expense Carrying amount at 22,150 9,221 386,365 36,117 5,382 459,235 30 June, 2005

2005 2004 $’000 $’000 Depreciation Charge for the Year

Buildings 289 290

Infrastr ucture 11,726 11,238

Plant and Equipment 1,468 1,319

13,483 12,847

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

78 Goulburn Valley Water 2005 Annual Report 2005 2004 Note $’000 $’000 Note 15 Payables Trade Creditors 5,009 4,817

Other Creditors 808 1,218

5,817 6,035

Note 16 Interest Bearing Liabilities - Secured Current Interest Bearing Liabilities Bank Loans 45 62 Other Loans 2,530 271 2,575 333 Non-Current Interest Bearing Liabilities Bank Loans 220 265 Other Loans 25,100 10,630 25,320 10,895 Total Interest Bearing Liabilities 27,895 11,228

Loans are secured by the future revenue of the Authority and a guarantee from the Treasurer of Victoria. The Authority has an agreement with Treasury Corporation of Victoria to provide a $9.98 million credit standby facility for the 2005/2006 financial period (2004/2005: $18.1 million).

Note 17 Provisions Current Provisions Employee Benefits - Annual Leave 953 1,045 - Long Service Leave 128 190 Works / Maintenance 300 - 1,381 1,235 Non-Current Provisions Employee Benefits - Long Service Leave 1,478 1,395 Total Provisions 2,859 2,630 Total Number of Employees at reporting date 172 171

Goulburn Valley Water Financial Statements 79 iaca Statements Financial

2005 2004 Note $’000 $’000 Note 18 Reserves and Retained Profits (a) Reserves Sinking Fund Reserve 1,792 1,792 Asset Revaluation Reserve 150,887 150,887 152,679 152,679

(b) Retained Profits Retained Profits at the beginning of the financial year 33,197 23,749 Net Profit 5,320 9,448 Retained Profits at the end of the Financial Year 38,517 33,197

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

80 Goulburn Valley Water 2005 Annual Report Note 2005 2004 $’000 $’000 Note 19 Reconciliation of Net Profit to Net Cash Inflow from Operating Activities Net Profit 5,320 9,448

Contributed Assets (6,465) (8,210) Depreciation 13,484 12,847 (Profit)/Loss on Sale of Non-Current Assets 735 120 Bad Debts Written Off 59 22

Change in Assets and Liabilities (Increase)/Decrease in Receivables (708) 583 (Increase)/Decrease in Inventories 9 (98) (Increase)/Decrease in Prepayments 8 (96) Increase/(Decrease) in Trade Creditors and Accruals 445 (466) Increase/(Decrease) in Provisions 229 97 Net Cash Inflow from Operating Activities 13,116 14,247

Note 20 Wholesale and Retail Reporting (i) Retail Operations

Urban Water Wastewater Total 2005 2004 2005 2004 2005 2004 $‘000 $‘000 $‘000 $‘000 $‘000 $‘000 Revenue

Sales – external 24,436 22,367 23,462 23,492 47,898 45,859

Other Revenue 95 103 181 137 276 240

Total Segment Revenue 24,531 22,470 23,643 23,629 48,174 46,099

Total Segment Result 7,932 7,981 5,269 8,691 13,201 16,672

Unallocated Revenues 861 1,136 Less Unallocated 8,742 8,360 Expenses Net Profit 5,320 9,448

This Authority does not have any material Wholesale operations

Goulburn Valley Water Financial Statements 81 iaca Statements Financial

(ii) Transactions with Other Victorian Government Controlled Entities

During the financial year transactions were undertaken with other Victorian Government controlled entitles. These transactions are summarised as follows:

2005 2004 Intra Inter Intra Inter $’000 $’000 $’000 $’000 Assets 12 276 11 202 Liabilities 10 25,077 10 8,098 Income 103 3,249 78 1,724 Expenses 1,082 3,248 1,034 970

“Intra” transactions are with entities within the Department of Sustainability & Environment portfolio.

“Inter” transactions are with entities outside the portfolio controlled by the Victorian Government. Note 21 Financial Instruments

(i) Terms, Conditions and Accounting Policies The Authority’s accounting policies including the terms and conditions of each class of financial asset, financial liability and equity instrument, both recognised and unrecognised at balance date, are as follows: Recognised Note Accounting Policies Terms and Conditions Financial Instruments (a) Financial Assets Receivables – Debtors 12 Debtors are carried at their nominal Credit is allowed for a 30 day amounts due less any provision term for most Receivables. There for doubtful debts. A doubtful are some long-term receivables debt provision is made for any greater than one year and effective amounts which are considered interest rates range from 6.70% to unlikely to be collectable. 7.75% (2004 - 6.70% to 7.75%). (b) Financial Liabilities 15 Creditors and Accruals are Settlement of creditors is normally Payables recognised for future amounts effected within a 30 day term. to be paid in respect of goods and services received, whether or not billed to the Authority. Bank Loans 16 Bank Loans are carried at their Bank Loans are repayable in principal amounts. Interest is charged instalments over the life of the loans. as an expense as it accrues. Interest rates range from 5.875% to 8.90% (2004 – 5.875% to 10.04%) Other Loans 16 Other Loans are carried at their Other Loans are repayable in principal amounts. Interest is charged instalments over the life of the loans. as an expense as it accrues. Interest rates range from 5.125% to 7.40% (2004 – 5.125% to 11.20%) State Government Dividend 1(j) Dividend due and payable is Dividends are prescribed by the recognised when notification of State Government in accordance the relevant amount determined by with the Public Authorities the State Treasurer is received. (dividends) Regulations 1993.

82 Goulburn Valley Water 2005 Annual Report (ii) Interest Rate Risk Exposures The Authority’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at balance date, are as follows: Fixed interest maturing in:

2005 Notes Floating 1 Year over 1 more Non- Total interest or less to 5 years than interest $’000 rate $’000 $’000 5 years bearing $’000 $’000 $’000 Financial Assets

Cash and Deposits 11 342 - - - 5 347

Receivables 12 - 1,141 3,921 5,626 7,675 18,363

342 1,141 3,921 5,626 7,680 18,710 Weighted average 4.35% 5.09% 6.54% 6.88% - - interest rate Financial Liabilities

Bank Loans 16 - 45 159 61 - 265

Payables 15 - - - - 5,817 5,817

Other Loans 16 - 2,530 3,268 21,832 - 27,630

-2,5753,42721,8935,81733,712 Weighted average -5.69%5.93%5.72% - - interest rate Net Financial 342 (1,434) 494 (16,267) 1,863 (15,002) Assets(Liabilities)

Goulburn Valley Water Financial Statements 83 iaca Statements Financial

Fixed interest maturing in: Floating more Non- 1 Year over 1 interest than interest Total 2004 Notes or less to 5 years rate 5 years bearing $’000 $’000 $’000 $’000 $’000 $’000 Financial Assets

Cash and Deposits 11 572 - - - 8 580

Receivables 12 - 888 3,425 6,643 6,758 17,714

572 888 3,425 6,643 6,766 18,294 Weighted average 3.70% 6.62% 7.02% 6.92% - - interest rate Financial Liabilities

Bank Loans 16 - 62 174 91 - 327

Payables 15 - - - - 6,035 6,035

Other Loans 16 - 271 1,635 8,995 - 10,901

- 333 1,809 9,086 6,035 17,263 Weighted average -6.16%5.80%5.90% - - interest rate Net Financial 572 555 1,616 (2,443) 731 1,031 Assets(Liabilities)

84 Goulburn Valley Water 2005 Annual Report (iii) Net Fair Value of Financial Assets and Liabilities

The carrying amounts and net fair values of financial assets and financial liabilities, both recognised and unrecognised at balance date, are as follows:

Carrying Amount Net Fair Value 2005 2004 2005 2004 $’000 $’000 $’000 $’000 (a) Financial Assets Cash and Deposits 347 580 347 580 Receivables - Debtors 18,363 17,714 18,363 17,714 18,710 18,294 18,710 18,294

(b) Financial Liabilities Bank Loans 265 327 277 318 Trade and Other Creditors 5,817 6,035 5,817 6,035 Other Loans 27,630 10,901 28,028 10,634 33,712 17,263 34,122 16,987

The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Authority approximates their carrying value.

The carrying values of Bank Loans and Other Loans are less than their respective fair values. The fair value of these borrowings is estimated using discounted cash flow analysis based on current borrowing rates for similar types of borrowing arrangements. The Authority intends to repay these loans in accordance with their maturities and, accordingly, has decided not to write them up to their fair values.

(iv) Credit Risk Exposures

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, net of any provision for doubtful debts.

Goulburn Valley Water Financial Statements 85 iaca Statements Financial

Note 22 Superannuation

The Authority contributes in respect of its employees to twelve superannuation schemes. Contributions to superannuation schemes expensed during the financial year were as follows:

Scheme Contributions Basis of Calculation

Paid Outstanding 2005 2004 2005 2004 $’000 $’000 $’000 $’000 3.25% of member employee’s Vision Super salary plus the equivalent Superannuation Scheme 394 497 - 218 of the employee’s own (Defined Benefits) contribution rate 2003 outstanding amount is Vision Super the Authority’s contribution Superannuation Scheme -47- - to the Unfunded Liability (Defined Benefits) of the Scheme Vision Super Saver 9% of member 483 461 41 39 Superannuation Scheme employee’s salary State Superannuation Varying percentage of 26 19 - 7 Board New Scheme member employee’s salary First State Rollover and Varying percentage of 6422 Superannuation Fund member employee’s salary Australian Varying percentage of 33 - - Retirement Fund member employee’s salary Rocky Lead Varying percentage of --1- Superannuation Fund member employee’s salary Varying percentage of Equip Super 9911 member employee’s salary Varying percentage of Health Superannuation 1 - - - member employee’s salary Macquaries Varying percentage of 131311 Superannuation Fund member employee’s salary Varying percentage of VicSuper 131511 member employee’s salary Varying percentage of Hull Superannuation Fund 3 3 - - member employee’s salary Varying percentage of Colonial First State 1 3 - - member employee’s salary UBS Warburg Varying percentage of 52 - - Management Trust member employee’s salary 957 1,076 47 269

Vision Super Superannuation Scheme and State Superannuation Board New Scheme are Defined Benefits funds. Any unfunded liability in respect of these plans is recognised in the financial statements of the Authority. The other funds are Accumulation funds. There are no balances repayable in respect of loans made to the Authority from any fund.

86 Goulburn Valley Water 2005 Annual Report Note 23 Contingent Liabilities

(i) Redbank Bloodstock Pty. Ltd.

Solicitors for Redbank Bloodstock Pty Ltd. have written to the Authority indicating that loss and damage has occurred due to alleged seepage from the Authority’s Abbinga Reservoir near Euroa. The solicitor’s claim that the loss is compensable and they have lodged an FOI Request seeking access to documents relating to the reservoir. A claim has been received for $273,000.

(ii) Other

At balance date, the Authority is not aware of any other material contingent liabilities not recorded or disclosed in the accounts.

2005 2004 Note 24 Capital Commitments $’000 $’000 (i) Capital Commitments Commitments for the acquisition of property, plant and equipment contracted for at the reporting date, but not recognised as liabilities, payable: Within one year 2,749 13,238 2,749 13,238

(ii) Lease Commitments Commitments in relation to operating leases contracted for at the reporting date, but not recognised as liabilities, payable; Within one year - 2 -2

Goulburn Valley Water Financial Statements 87 iaca Statements Financial

Note 25 Responsible Persons of the Authority

(i) Responsible Persons

The names of persons holding the position of Responsible Person of the Goulburn Valley Region Water Authority during the financial year were:

The Hon. John Thwaites MP Minister for Water

M.I. Darveniza Chairman

J.A. Houghton Deputy Chairman

M. Hall Member

A.J. Layton Member

M.I. Rae Member

B.E. Chamberlain Member

C.L. Scott Member

L.J. Gleeson Chief Executive

P.A. Quinn Acting Chief Executive

A.J. Gale Acting Chief Executive

(ii) Remuneration of Responsible Persons

The numbers of Responsible Persons are shown below in their relevant income bands:

Remuneration 2005 No. 2004 No.

$0 - $9,999 - 4

$10,000-$19,999 6 4

$40,000-$49,999 1 1

The total remuneration of Responsible Persons referred to in the above bands was $128,225 (2004: $124,699), which includes $19,789 (2004: $19,785) paid in Superannuation Contributions.

The relevant amounts relating to Ministers are reported separately in the Financial Statements of the Department of Premier and Cabinet. The remuneration of the Chief Executive and Acting Chief Executives is reported under “Remuneration of Executives”.

88 Goulburn Valley Water 2005 Annual Report (iii) Remuneration of Executives

The number of executive officers, other than Responsible Persons included under “Remuneration of Responsible Persons” above, whose total remuneration exceeded $100,000 during the reporting period are shown below in their relevant income bands:

Remuneration 2005 No. 2004 No.

$140,000 - $149,999 - 2 $150,000 - $159,999 2 - $160,000 - $169,999 - 1 $180,000 - $189,999 1 - $210,000 - $219,999 - 1 $220,000 - $229,999 1 -

The total remuneration including superannuation of executives whose remuneration was greater than $100,000 referred to in the above bands was $707,435 (2004: $680,557).

(iv) Other Transactions of Responsible Persons and Their Related Entities

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

Land Development

Companies in which Responsible Persons hold an interest, contract to Goulburn Valley Region Water Authority for the provision of land development works from time to time. The companies involved and the amount of works during the year are listed below: Member Company 2005 $ 2004 $ Involved Kavant Nominees Pty. Ltd. M.I. Darveniza 899,299 1,526,138

There have been no related party transactions other than on normal commercial terms and conditions with the Minister during the reporting period. Note 26 Events Occurring After Balance Date Effective 16 January, 2006 the Authority’s rights, obligations and interests in the assets and operations for the provision of water and wastewater services to the Wallan and Hidden Valley townships will be divested upon transfer to Yarra Valley Water. A Ministerial directive has been received by the Authority and has been agreed to between the Authority and Yarra Valley Water for this transfer to take effect.

The Responsible Persons of the Authority are unaware of any other events that have occurred after balance date which materially affect the financial position disclosed at 30 June, 2005.

Goulburn Valley Water Financial Statements 89 iaca Statements Financial

Certification of Financial Statements

We hereby certify that the financial statements of the Goulburn Valley Region Water Authority, comprising the statement of financial performance, statement of financial position, statement of cash flows and notes to the financial statements have been prepared in accordance with the provisions of the Financial Management Act 1994, applicable financial Reporting Directions, applicable Australian Accounting Standards and other mandatory professional reporting requirements.

In our opinion, the financial statements present fairly the financial transactions for the year ending 30 June, 2005 and the financial position of the Authority as at 30 June, 2005. At the date of signing the financial statements we are not aware of any circumstances that would render any particulars included in the statements to be misleading or inaccurate.

Signed on behalf of the Authority

M.I. Darveniza L.J. Gleeson G.D. Jolly Chairman Chief Executive Officer Director - Finance

Date: 7 September 2005

90 Goulburn Valley Water 2005 Annual Report Goulburn Valley Water Financial Statements 91 iaca Statements Financial

92 Goulburn Valley Water 2005 Annual Report Disclosure Index Disclosure Index to Disclosure Clause Disclosure Page Requirements 2004/2005, FRD 22 Manner of establishment and relevant Minister 4 The Annual Report of the entity FRD 22 Objectives, functions, powers and duties 4-5 is prepared in accordance with the FRD 22 Nature and range of services provided 4-5 Financial Management Act 1994 and directions of the Minister for FRD 22 Organisation Structure 34 Board Members Board Committees, Finance. FRD 22 50-52 This index has been prepared objectives achievements to facilitate identification of FRD 22 Statement of workforce data and merit and equity 38 compliance with statutory disclosure Summary of financial results with FRD 22 46 requirements. previous four-year comparatives Summary of significant changes in FRD 22 46 financial position during the year Operational and budgetary objectives for the FRD 22 54-61 year and performance against those objectives Major changes or factors affecting FRD 22 2-3 the achievement of objectives FRD 22 Events subsequent to balance date 88 Application and operation of Freedom FRD 22 47 of Information Act 1982 Compliance with building and maintenance FRD 22 47 provisions of Building Act 1993 FRD 22 Statement on National Competition Policy 47 Application and operation of the FRD 22 47 Whistleblowers Protection Act 2001 FRD 22 Details of Consultancies >$100,000 46 FRD 22 Details of Consultancies <$100,000 46 FRD 12 Disclosure of major contracts 47 FRD 22 Statement of availability of other information 47 FRD 22 Occupation health and safety 42 FRD 15 Executive officer disclosures 88 FRD 10 Disclosure index 92 FRD 25 Victorian Industry Participation Policy disclosures 47 Compliance with Australian accounting SD 4.2 (c) 65 standards and other authoritative SD 4.2 (c) Compliance with Ministerial Directions 65 SD 4.2 (c) Rounding Amounts 72 SD 4.2 (c) Accountable officer’s declaration 89 SD 4.2 (b) Statement of financial performance 62 SD 4.2 (b) Statement of financial position 63 SD 4.2 (b) Statement of cash flows during the year 64 FRD 11 Disclosure of ex-gratia payments n/a Responsible person and executive FRD 21 87 officer disclosures FRD 23 Superannuation liabilities and disclosure 85

Goulburn Valley Water Disclosure Index 93 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 Goulburn Valley Water 2004/2005 Annual Report

Running Water from the Mountains to the Murray