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ANNUAL 15 REPORT Regional Map 2014 ANNUAL 15 REPORT REGIONAL MAP N ( Edenhope Rocklands Reservoir -( Balmoral 0 Scale 50 kilometres Konongwootong Reservoir - Cavendish (- Tullich Casterton ( Willaura Bores - ( - - ( ( Sandford - Coleraine - - Glenthompson ( ( Dunkeld - - - - - ( Merino - Wannon Rive HAMILTON( r - ( Tarrington Glenelg River - Penshurst ( - -( Dartmoor - Mt . Emu Creek Derrinallum ( ( Caramut - ( Lismore -( Darlington -( Macarthur - - ( Mortlake Hopkins River - -(- r Heywood yne Rive Glenormiston Surrey River ( Mo Noorat (- -- Terang Camperdown -( ( Purnim - -( - ( Koroit Ewens Hill - - - Tank Hill i River - Reservoir - PORTLAND - Reservoir ( -( Merr Cobden - - - -- ( Port Fairy ( - - - - ( Allansford WARRNAMBOOL ( Timboon - (- -- - Simpson Gellibrand River - ( Plantation Road Carlisle River Peterborough ( - Pipeline --(- Reservoir Port Campbell - Water Reclamation Plant Water Treatment Plant Water Storage Bore 2 2014/15 ANNUAL REPORT CONTENTS Our vision To be recognised for excellence in integrated water services. 3 Vision, Mission, Strategic Objectives, Values 4 Message from Chairman & Managing Director 5 Year in Review Our mission 6 About us To provide secure, safe, reliable and innovative integrated 7 Capital expenditure water services to communities in south-west Victoria. 8 At a glance 9 Highlights 2014/15 10 Financial Summary Our strategic objectives 10 Financial result • Integrated water management 11 Revenue & expenses 12 Financial performance indicators • Deliver customer value 13 Future challenges • Maximise business efficiency • Robust decision making 14 Social Sustainability • Maintain financial viability 14 Customer value 14 Community Service Obligations • Grow organisational capability 15 Water consumption 19 Growth of services 20 Community engagement Our values 21 Environmental Sustainability Think It! 21 Environmental health • Be creative & innovative 22 Recycling water • Embrace change & new ideas 22 Biosolids reuse • Show initiative 23 Greenhouse gas emissions • Rise to the challenge 23 Bulk entitlements 28 Corporate Information Work It! 28 Board of Directors • Act today for tomorrow 30 Board and committee meeting attendance • Deliver & add value 31 Board committees • Get on board & have fun 32 Corporate structure • Listen, learn, share & grow 32 Employment and OH&S data 34 Legislative compliance Own It! • Follow through 37 Performance Report • Take responsibility 44 Financial Statements • Walk the talk • Celebrate our successes 85 Appendix 1 – Disclosure Index 87 Appendix 2 – Weekly Household Consumption 88 Glossary of Terms 90 Index © State of Victoria, Wannon Water, 2015. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. 2014/15 ANNUAL REPORT 3 ChAirmAn anD mAnaginG DireCTor’s reporT Wannon Water delivered another strong financial result, with a Wannon Water delivered on its commitments set out in the profit before tax of $4.96 million. 2014/15 Corporate Plan through the combined efforts of our Board, leadership team and employees and their excellent With an ongoing focus on delivering services that reflect contribution is acknowledged. customers’ expectations for quality, reliability and price, water and sewerage prices were further reduced in real terms On behalf of the Board, as Chairman I would also like to thank without compromising service standards. In addition, business outgoing Managing Director Grant Green, who is leaving efficiency savings were also passed on to residential water Wannon Water after 10 years of leadership. Grant has made customers via a $70 Government Water Rebate. This was the an outstanding contribution to Wannon Water and to the first of four such rebates to be delivered through to 2017/18 – wider Victorian water industry for more than 40 years, and the a total saving of $280. Board wishes him and his family the very best in the years to come. Wannon Water self-funded the $15.42 million of capital works completed in the reporting period to support regional growth and asset renewal. These works included the completion of the West Portland sewerage scheme and a new groundwater bore at Curdievale to boost the security of water supply for John Vogels Grant Green Warrnambool and towns supplied by the Otway System. Chairman Managing Director We also built on our recent success in identifying and reducing In accordance with the Financial Management Act 1994, I am water losses, and for the reporting period reduced non- pleased to present Wannon Water’s annual report for the year revenue water losses by a further 9.6 per cent. ending 30 June 2015. Wannon Water continued to develop innovative and sustainable water and sewerage solutions. The supply of fish for our aquaculture project, which uses goldfish to aid sewage treatment at the Hamilton water reclamation plant, was secured by the acquisition of the fish hatchery site at John Vogels Warrnambool. Chairman 17 July 2015 Our award-winning Warrnambool Roof Water Harvesting Project was expanded, with the number of houses connected to the scheme increasing by 39 per cent in the reporting period. Wannon Water also resolved to extend this urban water catchment project to include the new industrial subdivision being constructed in Horne Road, Warrnambool. 4 2014/15 ANNUAL REPORT 2014/15 yeAr in revieW GOVERNAnCe hiGhLiGhTs eConomiC hiGhLiGhTs ✔ OH&S system certification maintained ✔ Profit before tax of $4.96 million ✔ Environmental Management System ISO ✔ Favourable gearing ratio of 11.45 per cent certification maintained ✔ Self-funded $15.42 million annual capital works ✔ HACCP water quality management system program certification maintained ✔ Refurbished Port Fairy’s water tower to secure water ✔ A suite of corporate strategies were implemented services for the future ✔ Completed construction of a groundwater bore at ✔ Commenced construction of a new groundwater Curdievale to mitigate risk to Otway system production bore to improve the reliability of water security of supply supplies in Heywood ✔ Risk management framework reviewed ✔ Commenced construction of a replacement groundwater bore to boost the security of drinking soCiAL hiGhLiGhTs water supplies for Portland ✔ Completed construction of the West Portland ✔ Reduced water and sewerage prices in real terms sewerage scheme ✔ Recorded a 94 per cent customer satisfaction rating ✔ Delivered the first of four annual $70 bill reductions ENVIRONMENTAL hiGhLiGhTs for residential water customers ✔ Innovative aquaculture project expanded with ✔ Expanded payment options for customers using hatchery purchased and nine water reclamation plants the ‘MyPost Digital Mailbox’ service made available to licensed for stocking fish customers, enhancing this convenient method of bill ✔ Warrnambool Roof Water Harvesting Project delivery expanded to capture water from the Horne Road ✔ Implemented improved smart forms to make it Industrial Estate easier for customers to submit information to ✔ Non-revenue water reduced by 9.6 per cent Wannon Water ✔ Achieved 100% compliance for water quality at all ✔ Commenced a three-stage project to enhance water reclamation plants Konongwootong Reservoir’s recreational fishing ✔ Amendment to Amalgamated Licence granted, facilities providing a permanent solution for treated ✔ Water It, Grow It, Cook It kitchen garden effluent at Heywood water reclamation plant competition re-launched for local schools ✔ Furthered the ecological burn and weed control ✔ 4,100 refillable water drink bottles distributed to program at Dunkeld water reclamation plant and community groups and schools initiated grassland research with La Trobe University ✔ Continued promotion of the ‘Choose Tap’ campaign ✔ Initial trial of introducing indigenous plants at to promote the benefits of drinking tap water operational sites to reduce grass-cutting costs proved compared to bottled water and other beverages successful and the program expanded to four new ✔ Conducted an employee Leading Safety – Ongoing sites Development Program to enhance safety culture ✔ 100 per cent of biosolids beneficially reused ✔ Supported the Future Leaders of Industry program ✔ Research with Deakin University to identify aquatic in Portland biodiversity in water storages accepted for publication internationally ✔ Resolved to proceed with a renewable energy project in Portland to lower operating costs and reduce greenhouse gas emissions by eight per cent ✔ Continued monitoring of carbon sequestration project design to offset 10 per cent of carbon emissions. ✔ Replaced a section of sewer main in Hickford Parade, Warrnambool, while protecting and enhancing a sensitive environmental area ✔ Proceeding with a suite of energy efficiency projects to reduce our environment footprint 2014/15 ANNUAL REPORT 5 2014/15 yeAr in revieW About us Water systems Wannon Water (Wannon Region Water Corporation) is Wannon Water supplies water from a diverse range of water a regional urban water corporation wholly owned by the sources, including surface water catchments, deep geothermal Victorian State Government. and shallow groundwater aquifers. Wannon Water was constituted under the Water Act 1989 as Our water systems include the: a statutory corporation in July 2005. The responsible Ministers • Otway system, sourced from the Gellibrand River during the reporting period were: catchment (and groundwater), which supplies water • The Hon. Peter Walsh MLA, Minister for Water, from 1 July to Warrnambool, Simpson, Cobden, Camperdown, 2014 to 3 December 2014; and Glenormiston,
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