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East Gippsland Water Annual Report 2017 18 EAST GIPPSLAND WATER - ANNUAL RE 2017/18 PORT 201 PORT 7/18 HEAD OFFICE 133 Macleod Street Bairnsdale 3875 PO Box 52 Bairnsdale 3875 T: 1800 671 841 F: 03 5150 4477 E: [email protected] www.egwater.vic.gov.au 24 hour emergency and faults service 1300 134 202 © State of Victoria, East Gippsland Water Corporation 2018 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Printed on recycled paper. For more information on this Annual Report contact East Gippsland Water’s Communications and Community Engagement Manager T: 1800 671 841 E-mail: [email protected] ISSN 1837-2449 ANNUAL REPORT ANNUAL REPORT - EAST GIPPSLAND WATER 2017/18 1 At a Glance East Gippsland Water’s Region East Gippsland Water serves an area of 21,000 square It has nine separate water supply systems that serve the kilometres in the east of Victoria, which boasts some of communities of Bairnsdale, Bemm River, Bruthen, Buchan, Australia’s most diverse and spectacular scenery. Cann River, Dinner Plain, Eagle Point, Johnsonville, Lakes The region’s world renowned beaches, lakes, high country Entrance, Lake Tyers Aboriginal Trust, Lake Tyers Beach, and national parks are a natural draw-card for those seeking a Lindenow, Lindenow South, Mallacoota, Marlo, Metung, lifestyle change, as well as for the many tourists that swell the Newlands Arm, Newmerella, Nicholson, Nowa Nowa, Omeo, region’s population numbers over the busy holiday periods. Orbost, Paynesville, Raymond Island, Sarsfield, Swan Reach and Swifts Creek. East Gippsland Water serves around 35,000 people. Its service area extends east from Lindenow, through to the Eleven individual wastewater systems serve Bairnsdale, region’s capital Bairnsdale, the holiday centres of Paynesville Bemm River, Bruthen, Cann River, Dinner Plain, Eagle Point, and Lakes Entrance, and on to the wilderness coast and Johnsonville, Lakes Entrance, Lake Tyers Beach, Lindenow, Mallacoota near the New South Wales border. It also serves Mallacoota, Marlo, Metung, Newlands Arm, Nicholson, Omeo, as far north as Dinner Plain in the High Country of the Orbost, Paynesville, Raymond Island and Swan Reach. Victorian Alps. Water services are provided to some 26,400 account holders (assessments) with wastewater services also provided to around 22,500 account holders. Water and Sewerage Services Water Services Other Townships Genoa River Buchan River Snowy River Mt Hotham Cann River Brodribb River Genoa Dinner Plain Bemm River Omeo Mallacoota Betka River Swifts Creek Buchan Rocky River Cann River Tambo River Ensay Dargo Princes Hwy Nicholson River Orbost Bemm River Newmerella Nowa Nowa Mitchell River Bruthen Marlo Johnsonville Swan Nicholson Reach Lake Tyers Bairnsdale Lindenow Lakes Entrance Metung Walpa Eagle Point Lindenow South Paynesville Newlands Arm Melbourne Fact File (as at 30 June 2018) Water Wastewater Serviced properties Serviced properties - residential assessments 23,194 - residential assessments 20,121 - non residential assessments 3,256 - non residential assessments 2,370 Volume of water consumed (ML/y) 5,002 Volume of wastewater collected (ML/y) 3,103 Length of water mains (km) 953 Length of sewer mains (km) 706 Water treatment plants 9 Wastewater treatment plants 11 Water disinfection plants 11 Water recycled (%) 100 Separate water supply systems 9 Separate wastewater systems 11 ANNUAL REPORT - EAST GIPPSLAND WATER 2017/18 The Corporation Contents Page East Gippsland Region Water Corporation was initially established as East Gippsland Region Water At a Glance Inside front cover Authority on 1 January 1995, by Ministerial Order and under powers conferred by the Water Act 1989. Report from the Chairperson It trades as East Gippsland Water. and Managing Director 2 The responsible Minister during the 2017/18 Corporate Governance 4 reporting period was The Hon. Lisa Neville MP, Minister for Water. People and Culture 8 In accordance with the Water Act 1989, East Risk Management 13 Gippsland Water delivers the full range of retail water services, including water harvesting, Environmental Sustainability 14 storage and drinking water supply. It also provides Asset Management 24 wastewater collection and treatment services, recycled water for rural and beneficial community Community Engagement 26 uses, as well as trade waste services to industrial and Social Sustainability 27 commercial customers. Financial Summary 30 Other Information 31 Our Vision Performance Report 35 Sustainability and resilience through leading and innovative water solutions. Independent Auditor’s Report 39 Financial Report 41 Our Mission Independent Auditor’s Report 83 Providing quality water and wastewater services to Disclosure Index 85 sustain and enhance our community. Glossary 86 Our Objectives • To meet the needs of our customers and stakeholders Responsible Body Declaration • To enhance the liveability, development and In accordance with the Financial Management Act 1994 resilience of our region I am pleased to present East Gippsland Water’s Annual • To innovate and achieve whole-of-business Report for the year ending 30 June 2018. sustainability • To optimise the efficiency and affordability of our services Joanne Booth • To maximise the potential of our people Chairperson, East Gippsland Water 6th September 2018 About this Report This Annual Report details East Gippsland Water’s performance and achievements in all areas of its Financial Management Compliance operations during 2017/18. It has been prepared in Attestation Statement accordance with the Financial Reporting Direction I Joanne Booth, on behalf of the Board, certify that FRD 30D - Standard Requirements for the East Gippsland Water has complied with the applicable Publication of Annual Reports. This defines the Standing Directions of the Minister for Finance under the design and print specifications of annual reports Financial Management Act 1994 and Instructions. to ensure consistency, cost minimisation and low environmental impact. Further information and previous Annual Reports are available at www.egwater.vic.gov.au Joanne Booth Chairperson, East Gippsland Water 6th September 2018 ANNUAL REPORT - EAST GIPPSLAND WATER 2017/18 1 In its consideration of the resultant Price Submission, the water industry’s independent regulator, the Essential Services Commission, granted “fast track” status in its approval process - reflecting the high quality of the submission and the strong linkages to outcomes preferred by customers. Implementation of related programs, initiatives and outcomes is due to commence in July 2018. We will be maintaining current levels of service for the next five years, with no increase in the average customer bill, except for inflation. Our commitment to deliver affordable water and sewerage services means we’ll be absorbing Report from the increases in any external business costs as much as we can. Our plan allows for a total of around $62 million to be Chairperson and invested in a major capital works program over the next five years. Complementing this, we will be spending around $19 Managing Director million a year on the day-to-day operation and maintenance of existing water and sewerage infrastructure. Initiatives and Key Achievements Excluding inflation, the average residential customer (using East Gippsland Water continued to proactively address the 146,000 litres of water a year) will see their combined bills for needs of the regional community and expectations of the water and sewerage decrease by $5 over the 2018/19 financial Victorian Government in the 2017/18 financial year. year and no bill increase from 1 July 2019 to 30 June 2023. We continued to implement significant initiatives in line with East Gippsland Water’s Customer Committee continued ‘Water for Victoria’ (the Victorian Government’s water to play an instrumental role in relation to the community management strategy) and the strategies and objectives set engagement process for development of the Price Submission. out in our Corporate Plan (business plan for the year) and It made recommendations to the Board on the community’s Water Plan (five year business plan for 2013-18), with some behalf relating to service preferences and priorities in the areas notable achievements. of liveability, environmental sustainability, service levels and There were no significant changes or factors which affected our financial assistance for customers experiencing genuine difficulty performance during the reporting period. paying their East Gippsland Water bills. It was also empowered by the Board to determine guaranteed service levels. Financial Overview We recorded a surplus before tax of $3.24 million. This Water for Victoria was higher than the budgeted profit of $1.6 million, due to During 2017/18 we progressed a number of initiatives aligned increased water sales attributable to hotter and drier than with ‘Water for Victoria’. This plan provides a framework for average conditions, higher revenue from various sources, managing precious water resources across the state as we deal stable operating costs and embedding efficiencies into day-to- with the long-term challenges presented by climate change day business activities. and a growing population. Expenditure on capital works totalled $8.85 million for the We continued to encourage the community to get behind the year, with a number of major projects completed. These ‘Target Your Water Use’ water efficiency program aimed at included water system upgrades in Bairnsdale, Cann
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