Lower Murray Water Annual Report 2008-2009

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Lower Murray Water Annual Report 2008-2009 Lower Murray Water Operating Area MURRA Merbein Y Services Mildura Water Treatment Plant Irymple Potable Water – Urban Red Cliffs Raw Water – Urban Werrimul Sewer N.S.W. Irrigation Drainage Robinvale S.A. Domestic & Stock RIVE Surface Water (Private) Diverters R Features Township Border Murray River S.A. Piangil LMW Boundary of Operations Major Roads Nyah West Nyah Woorinen Sth Swan Hill Lake Boga Murrabit VICTORIA Mystic Park Koondrook Kerang 0 10 20 40 60 80 Kilometres © State of Victoria, Lower Murray Urban and Rural Water Corporation 2009. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. 1 Contents Our Profile 2 Our Chairman & Managing Director 4 Our Board 6 Our Organisational Chart 9 Our Objectives 10 Our Works 12 Our Customers 15 Our Commitment to Our Region 19 Our Environment 21 Our People 27 Our Financial Management 30 Our Water Transfers and Licences 34 Reportable Information 40 Disclosure Index 42 Financials 43 Our Performance Reporting 2008/09 78 Appendix 1: Lower Murray Water – Whistleblower’s Protection Policy 84 2 Our Profile Our Establishment Our Services Lower Murray Urban and Rural Water Authority was created under We provide: the provisions of the Water Act 1989 via order in Council effective ~ urban water services to 15 townships via nine treatment plants to 1st July 2004. It assumed the whole of the property, rights, liabilities, approximately 60,000 customers along the Murray River in Victoria obligations, powers and functions under the Water Act 1989 of the from Kerang to Mildura; Lower Murray Region Water Authority and Sunraysia Rural Water Authority. ~ wastewater collection, treatment and effluent re-use and disposal services to 11 towns via 10 treatment plants; The varied the form and title of Lower Murray Water Governance Act ~ river quality water services to 7,067 customers in the four pumped Water and established new governance arrangements effective from irrigation districts of Merbein, Red Cliffs, Robinvale and Mildura, the 1st July 2007. By statute under the Lower Murray Water Act 1989 Millewa rural district and some areas of the waterworks districts of Urban and Rural Water Authority became Lower Murray Urban and Carwarp and Yelta; Rural Water Corporation. ~ management of the region’s rural bulk water entitlement On 19th August 2008 Minister for Water The Hon. Tim Holding issued of 560,940ML a determination for Lower Murray Water to take over the whole of the ~ the collection and disposal of subsurface drainage water from the functions, powers and duties of the First Mildura Irrigation Trust (FMIT). three pumped irrigation districts, Nangiloc, Robinvale and Boundary Bend diverters; During the reporting period the Minister for Water was The Hon. Tim ~ ensuring drainage design in new agricultural developments conforms Holding MP. with salinity management plan development guidelines; ~ partnership in the design, implementation, operation and maintenance of works initiated by the Mallee Catchment Management Authority; ~ management of the private diversion licences of 1,075 water users along the Murray River in Victoria between Nyah and the South Australian border; ~ the assessment and approval of permanent and temporary water trade applications; and ~ reclaimed water for third party use. In addition to security of supply, public health, water quality and environmental responsibilities, we recognise the crucial economic role of water from a regional and state context. 3 Our Vision Our Goals Vital Resource – Vital Service 1. Quality Services Delivery Managing our water resources responsibly to promote the economic To provide high quality drinking water, wastewater, irrigation, drainage and social advancement of our region, while protecting our environment. and water recycling services to our customers 2. Positive Customer, Staff and Stakeholder Our Core Business Relationships Our core business is to meet the present and future needs of our customers To maintain positive relationships and communications with rural and and community by providing reliable and secure water services. urban customers, government and other stakeholders Our Region 3. Building a Prosperous Region Our area of operation extends from Kerang to the South Australian To contribute to the economic, social and cultural development border taking in the municipalities of Mildura, Swan Hill and of the region and ensure the security of the community’s collective Gannawarra. We provide the region with urban water and wastewater water resource services, treatment and effluent disposal services, river quality water to stock and irrigation customers, along with the collection and disposal of 4. Sustainability of Our Environment subsurface irrigation drainage water. To plan and manage all our operations in an environmentally responsible We recognise that our overall well-being and livelihood is directly linked and sustainable manner to the agricultural, tourism and support industries which form our economic backbone. 5. Motivated and Empowered People How we manage our water resources recognises the intrinsic To maintain a quality, appropriately skilled and committed workforce inter-relationship between this resource and the social and economic fabric of our region. 6. Efficient Financial and Asset Management To manage the Corporation’s assets and financial resources responsibly 7. Responsible Corporate Governance To manage our business affairs in a manner consistent with the best standards of corporate governance 4 Our Chairman & Managing Director I welcome Mr Peter Jones as a new member of the Board and look The Chairman’s Overview forward to the contributions that he will bring to our decision making. This past year has been one of contrasting highlights which have been I also wish to thank Mr Damien Heintze for his service to the water tempered by the continuing struggles in dealing with drought and low industry via our Board of Directors since 1st July 2004. Damien commodity prices in some sectors of our horticultural customer base. resigned in May 2009 due to work commitments. In the context of the global financial crisis our business has performed at I also acknowledge the new Mildura Customer Service and Advisory a level above expectations. There are several factors contributing to this Committee members who have voluntarily taken up positions on this result. Firstly the move to relax urban water restrictions eased the pressure very important committee. The advisory committees will play a pivotal on cash flow and allowed customers to avail themselves of limited lawn role in assisting the Corporation in planning and delivering the Sunraysia watering provided that they were prepared to pay the higher cost of Modernisation Project. temporary water via the Corporation’s volumetric stepped charge. This decision was taken being cognisant of the need for preservation of our Progress on the $47M Robinvale High Pressure Irrigation Project is community spirit and included recognition of the needs of the elderly and strong and will lead to commissioning in late 2009. This is to be a infirm. This was a clear example of triple bottom line decision making. major landmark project that will provide significant improvement in service levels and reliability providing growers with the opportunity for The management team once again adjusted the business to a survival enhancement of their production outputs. budget once there was some certainty around the level of water allocation. The final allocation for the season was 35%. Our urban services have not been forgotten with the new $39M Koorlong Wastewater Treatment Plant proceeding to the construction Of major importance was the support provided by the State Government phase. This project will cater for growth and provide facilities for the to underwrite fixed charges for rural water customers. This factor alone treatment and reuse of sewerage for many years to come. provided benefits to both the Corporation and to irrigator customers generally and provided a much needed boost to community spirit. In closing I wish to express my thanks firstly to my fellow Directors; to the Managing Director and the Management Team and their staff; In spite of the difficult times, the Corporation managed to fund $14M and finally to all of our customers for their general understanding and of depreciation and completed $34M of Capital Works without any compliance during the drought. borrowings, with our operating result before tax a loss of $2M. Significant noteworthy events include the announcement of the Commonwealth Government’s commitment to provide $103M, subject to due diligence, toward modernisation of the irrigation infrastructure in Sunraysia. The Business Case for this funding is in preparation and will Michael D Tilley be lodged early in the 2009/10 financial year. Chairman Also of significant historical note is the merger with the First Mildura 28th September 2009 Irrigation Trust in August 2008. While this event triggered emotive reaction from some of the irrigation community, it is my view that this consolidation was an economic necessity due to the inevitable financial pressures associated with small business. The timing will in hindsight be very poignant in the context of the global financial crisis and continued drought. Integration of the business activities and staffing has proceeded very smoothly and is reflective of lessons learned during the earlier merger with Sunraysia Rural Water Authority in 2004. Further
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