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Grampians Wimmera Mallee Water AR 2018

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Grampians Wimmera Mallee Water AR 2018 Annual R eport 2017/2018 Vision OHealuth y ren vVironimsenit ,o thrnivin g& c om mMunitiy. ssion wMiills psironvide affordable ser vices using our precious Through partnerships with our stak eholders, we resources t o ensure a productiv e and liv eable region. Cust omer OWe wrillg proamont e ai csulaturet tihaot renspe cV ts thae vlieuws eof s our cust omers and our people with a ‘can do ’ approach. Or ganisation We will w ork as a t eam t o deliv er agreed organisational priorities whilst respecting the views of stak eholders. We will be acc ountable for the actions we tak e and rAccespoounnsitbaleb fleor those we influence. We will be able t o promot e the merit of our decision Transpar ent Emffiakicnige.nt We will ensure that the performance of our people, assets and resources are optimised in the pro vision of ser vices. Disciplined We will ensure that our policies and processes support a consist ent attainment of quality and safety in all aspects of our operations. 452_GWMWater_AR 2018.qxp_Layout 1 6/9/18 1:28 pm Page 1 Contents Message from the Chairman and Managing Director 2 About GWMWater 4 Understanding Our Business 5 Our Board 6 - Standing Committees of the Board 9 Organisational Structure 13 How We Operate 14 Our Employees 17 Occupational Health and Safety 19 Water Consumption 20 Bulk and Environmental Entitlements 23 Recreation Water 28 Economic Sustainability 30 Social Sustainability 33 - Major Non-Residential Water Users 34 Environmental Sustainability 35 - Water Conservation 36 - Sustainable and Resilient Water Services Systems 36 Management Strategies 38 - Greenhouse Gas Emissions and Net Energy Consumption 39 Performance Reporting 45 - Certification of Performance Report for 2017/18 45 - Financial Performance Indicators 46 - Water and Sewerage Service Performance Indicators 48 - Customer Responsiveness Performance Indicators 49 - Environmental Performance Indicators 50 - Independent Auditor’s Report 51 - Financial Management Compliance Attestation 53 Financial Statements 55 - Comprehensive Operating Statement 56 - Consolidated Balance Sheet 57 - Consolidated Statement of Changes in Equity 58 - Consolidated Cash Flow Statement 59 - Notes to the Financial Statements 60 - Financial Statutory Certificate 105 - Independent Auditor’s Report 106 Appendix A - Disclosure Index 108 Appendix B - Disclosure of Information on Letter of Expectations 110 S ervice Area Map (inside back cover) 1 GWM Water Annual Report 2017/2018 | 452_GWMWater_AR 2018.qxp_Layout 1 6/9/18 1:28 pm Page 2 Message from the Chairman and Managing Director GWMWater continued its record of plan for climate change and in doing complexity by virtue of the recreation achievement against its Strategic so reduce their carbon footprint, a water and water quality and water Directions in 2017/18. process was established whereby security issues of Edenhope and junior to middle staff were co-opted Harrow. The most significant body of work into a process to develop technical GWMWater continues to refine and undertaken over the past eighteen papers to facilitate key themes for adapt its engagement model to months has been the 2018-2023 the new strategy that were then reflect the needs of the region. The Water Price Review which concluded workshopped by the Board. The success in securing support for the on 19 June 2018 with the release of competitive advantages of funding of the feasibility the Essential Services Commission GWMWater in relation to our access assessments and business cases for (ESC) Final Decision. GWMWater to space, connectivity to customers the rural pipeline extension projects has been able to achieve a very and the rural communities we serve, that led to funding support for South good price outcome for its customers understanding of technology, West Loddon and East Grampians locking in an aggregate 2.1% price expectation about renewable energy projects are very much outcomes of reduction in the first year and then and our regional leadership were the consultative models of holding water prices constant in real seen as opportunities for GWMWater GWMWater. In response to terms for the period 2019-2023. to redefine its role in the region. challenges put before the water Even with these price outcomes, Emerging from this is a Strategic industry in relation to engagement, GWMWater has been able to Plan that reset the Vision and GWMWater formed a Deliberative improve its service offer with water Mission and set an agenda that Panel to assist the Board shaping quality improvements being planned continued to realise the value of servicing policy and project priorities for Moyston, Elmhurst, Ultima and growth water created by the pipeline, for the Water Price Submission. In Kaniva. Sanitation issues in Goroke formalised an ambitious renewable the assessment of the GWMWater will be addressed by the construction energy aspiration and provided an price submission, the ESC concurred of a common effluent drainage enabling framework for GWMWater with GWMWater’s assessment of its system, an additional Guaranteed to redefine its role in the region. engagement processes in preparing Service Level obligation to drinking its price submission under PREMO water quality breaches, water price The importance of water in as leading. discounts funded by the recreation agriculture was recognised in Water for Victoria. A whole chapter was contribution charge will be extended The socio-economic study of the dedicated to water and its role in to schools and the improved access value of environmental and agriculture with a greater emphasis to water consumption information recreation water overseen by on domestic and stock supplies. The already available to rural customers Wimmera Development Association South West Loddon Pipeline project will be extended to urban customers was released in October 2017. The commenced construction in April by the introduction of urban remote study attributed a value of $27 million 2016 with substantial progress being metering. to the region by virtue of having made to 30 June 2018 with Stage access to plentiful water for the rivers With the Price Submission for the 2.1 almost complete. The Victorian and lakes of the region. 2018-2023 Water Price Review government formally committed to finalised at the time the new Board the East Grampians Rural Pipeline This excludes the value of the was installed, the focus of the Board Project in May 2018. We are well recently constructed and about to be was to set a new strategy. With an advanced with the West Wimmera commissioned Ouyen Lake and expectation of water businesses to Rural Pipeline Study which has Green Lake Sea Lake that is 2 | GWM Water Annual Report 2017/2018 452_GWMWater_AR 2018.qxp_Layout 1 6/9/18 1:28 pm Page 3 presently being reconstructed to Pipeline. The commitment to the better hold water. Wimmera Mallee Pipeline was a significant stretch for GWMWater with Work on the Mallee Towns Water its credit rating reducing to BBB- in Quality Project also commenced this 2010/11 when the project was year and will deliver water quality completed. Performance has upgrades to the towns of Brim, significantly improved in the Beulah, Woomelang and Sea Lake intervening seven year period to the once completed. The project involves point where our credit rating has the construction of 137 km of pipeline improved to be A-. Free cash flow utilising the excess capacity of the from operations for the year were Warracknabeal Water Treatment $27 million and this produced an Plant. The piping decision was interest cover of 4.6. reflective of the long term risk of more frequent water quality events such as GWMWater continues to work with the black water and blue green algae on Wimmera Mallee community to the River Murray as a consequence of enhance the regions liveability and climate change. The project is improve its productivity. This will be expected to be completed in February achieved by providing, affordable, 2019, and drinking water declared for efficient fit for purpose services to the these town by April 2019. region. In 2017/18 we consolidated the We thank the State and function of the Water Resource Commonwealth governments for their subcommittee of the Board which was commitment to the region with the formed to improve the oversight of the funding for the South West Loddon Storage Manager and Resource Project. This commitment has been Manager function that it performs on further reinforced by the State behalf of the Minister for Water. government with their commitment of Significant activities during 2017/18 $32 million to a further rural pipeline included the installation of digital extension around Ararat in the East readers over groundwater meters in Grampians Water Supply Project. the West Wimmera area, providing In accordance with the Financial input to the Water Resource Plan for Management Act 1994, we are the Wimmera Avoca Basin which has pleased to present GWMWater's been submitted to the Murray Darling Annual Report for the 2017/18 Basin Authority. As we transition to financial year. 2018/19 we have a healthy water reserve with the system being at a level of 46.1 percent. GWMWater continues to improve its operating performance beyond the Mark Williams completion of the Wimmera Mallee Peter Vogel Chairman Managing Director 3 GWM Water Annual Report 2017/2018 | 452_GWMWater_AR 2018.qxp_Layout 1 6/9/18 1:28 pm Page 4 About GWMWater Who We Are What We Do Grampians Wimmera Mallee Water GWMWater is a vertically integrated From these points we store, treat, Corporation (trading as GWMWater) water business directly involved in all transfer and distribute water. In is a government-owned Statutory aspects of the water cycle. sewered urban areas, we collect Corporation established on 1 July wastewater which is transferred, We operate water and wastewater 2004 under the Water Act 1989. The treated and completely reused. To treatment plants in many of our 71 Hon Lisa Neville MP, Minister for deliver these services we manage a towns and we aim to recycle 100 Water was the responsible Minister significant number of assets percent of the wastewater we for the period.
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