WATER SECURITY AND ZERO CARBON WATER IS A PRECIOUS RESOURCE

HEALTHY PEOPLE AND ENVIRONMENT WATER IS ESSENTIAL TO SUSTAIN LIFE

PROSPEROUS ECONOMIES WATER UNDERPINS ECONOMIC PROSPERITY Corporate Plan GREEN AND ACTIVE COMMUNITIES WATER UNDERPINS LIVEABILITY 2020–2025 OUR REGION

LEGEND TRADITIONAL LAND OWNERS DJA DJA WURRUNG CLANS ABORIGINAL CORPORATION Cohuna TAUNGURUNG LAND AND WATERS COUNCIL (ABORIGINAL CORPORATION) (TLAWC)

MURRAY RIVER YORTA YORTA NATION Leitchville ABORIGINAL CORPORATION Macorna CURRENTLY NOT REPRESENTED BY A Gunbower REGISTERED ABORIGINAL CORPORATION

Pyramid Hill WATER SUPPLY SYSTEMS Echuca CAMPASPE Boort COLIBAN Mitiamo Mysia GOULBURN GROUNDWATER Jarklin Lockington Borung LODDON Wychitella Rochester MURRAY Korong Vale Dingee WIMMERA Serpentine Wedderburn SEWER Elmore Raywood WATER NON POTABLE Inglewood WATER (UNTREATED) Bridgewater Goornong RIVER AVOCA RIVER Sebastian RECYCLED WATER

CAMPASPE Marong

LODDON RIVER Bendigo Tarnagulla Bealiba Axedale Laanecoorie LAKE EPPALOCK Dunolly Heathcote

Maldon Harcourt Tooborac Castlemaine Campbells Creek Chewton Elphinstone Mildura Newstead Fryerstown Taradale Guildford Malmsbury MALMSBURY Kyneton Echuca LAURISTON SheppartonShepppartpar oon WodongaWodoododoonganga UPPER COLIBAN Tylden HorshamHorsham BendigoBenBeenndigdidigo WangarattaW StawellStawell Castlemaine NORTH AraratArarat Kyneton victoriavictoria HamiltonHamilton 08,000 16,000 32,000 BallaratBallarat MelbourneMelbourne BairnsdaleBairnsdale Trentham GeelongGeelong SaleSale METRES Portland MorwellMorwell Warrnambool ColacColac

COLIBAN WATER | CORPORATE PLAN 2020–2025 CONTENTS

OUR CHALLENGE 2

OUR RESPONSE TO CORONAVIRUS (COVID-19) 3

WHO WE ARE AND WHAT WE DO 4

STRATEGY 2030 8

Strategic direction 1: Water security and zero carbon 8 Strategic direction 2: Healthy people and environment 14 Strategic direction 3: Prosperous economies 22 Strategic direction 4: Green and active communities 28 Business enablers 32

OUR FINANCIALS 33

APPENDICES 39 This photo was taken prior to coronavirus (COVID-19) restrictions and 1. Strategies, Drivers and Obligations 39 requirements of physical distancing and face coverings. 2. Risk Management 40 We respectfully acknowledge Aboriginal and Torres Strait Islander peoples as 3. Minister’s Letter of Expectations 41 the Traditional Owners and custodians 4. Key Performance Indicators and Targets 42 of the land and water on which all 5. Detailed Financial Outlooks 45 Australians rely. 6. Statement of Prices and Tariffs 52 We pay our respects to Dja Dja Wurrung, Taungurung, Yorta Yorta, Barapa Barapa, their Elders past, present and future, as Traditional Owners and the custodians of the land and water on which we rely and operate. We acknowledge and respect the continued cultural, social and spiritual connections of all Aboriginal Victorians. We also acknowledge the broader Aboriginal and Torres Strait Islander community and their connections with lands and waters, and recognise and value their inherent responsibility to care for and protect them for thousands of generations. We acknowledge Aboriginal Victorians as Traditional Owners and, in the spirit of reconciliation, we remain committed to working in partnership with Traditional Owners to ensure meaningful, ongoing contributions to the future of land and water management.

COLIBAN WATER | CORPORATE PLAN 2020–2025 1 OUR CHALLENGE

The millennium drought hit our region hard. Enormous capital Enhanced modelling of climate change scenarios will help us investment was required to ensure continuity of water supply to mitigate the impacts of climate change by incorporating our 49 disperse towns. Significant price increases were modelling into long-term asset planning. unfortunately unavoidable and debt soared as we met our Water is essential to sustain life. Our planned water and sewer community’s critical needs. Following the millennium drought, we committed to customers that our financial performance would upgrades will maintain human health and enhance improve. Since 2016 we have repaid over $35 million of borrowings environmental health. We will further improve our understanding and improved our credit rating, and this has reduced our interest of the communities we operate in and offer customers new ways repayments. Customer prices have generally increased less than of interacting with us. Improved relationships with our traditional inflation over the past five years, improving affordability. owners Dja Dja Wurrung, Taungurung, Yorta Yorta and Barapa Barapa will assist their economic self-determination and we will Population growth and climate change will affect every service better understand how these traditional owners value water. we deliver, and this Corporate Plan 2020-2025 foreshadows major changes to the way we do business. Communities expect More than ever, we have a key role to play beyond core water and high levels of service and we will work hard to underpin regional sewer services. We are a key enabler of regional prosperity prosperity. Some key assets are ageing and others are uniquely working in partnership with community groups, major customers exposed to large regional climate impacts, including bushfires. and local councils. We will establish innovative pricing options We must significantly increase our capital investment to respond for major customers to optimise the use of our assets and to climate change, population growth and community improve our operating efficiency, ensuring we balance pricing, environmental expectations. Our debt will unavoidably increase service and debt levels. but by planning early we aim to avoid a sudden spike in customer bills. Due to our harsh climate, our customers have told us we must be better supporting liveability within our region. Communities Following extensive customer and community engagement in the value green open spaces, and we will enhance opportunities for lead up to our Pricing Submission 2018-2023, our Board in 2018 community recreation on our land and assets. endorsed Strategy 2030 building upon our vision of Water to Live, Grow and Enjoy. This bold Strategy outlines four strategic The passion and skills of our staff are fundamental to the directions: achievement of the exciting future envisaged in Strategy 2030. • Water security and zero carbon We will continue to upskill and motivate our staff so that they can • Healthy people and environment apply their knowledge to the wicked problems of climate change and population growth. Our staff will be assisted in their crucial • Prosperous economies roles by best practice technology within the office and across the • Green and active communities region. Together we will apply a zero tolerance to work related For the first time, our Corporate Plan responds directly to the injuries and continue to promote staff health, safety and exciting future envisaged by Strategy 2030, and sets achievement wellbeing. targets directly related to the four Strategic Directions. This Corporate Plan is compliant with government guidelines and Water security is our core purpose and this year we will progress reflects the direction of Water for Victoria. We have also linked long term supply and demand initiatives. An internal carbon our Key Performance Indicators (KPIs) to the United Nations price will prioritise investments to help us achieve zero carbon by Sustainable Development Goals as we know we can be a local 2050 in alignment with government policy. leader in global sustainability.

LUCY ROFFEY DAMIAN WELLS

Chairperson Managing Director

2 COLIBAN WATER | CORPORATE PLAN 2020–2025 OUR RESPONSE TO CORONAVIRUS (COVID-19)

As an essential service, we have focussed firstly on acting swiftly, safely and responsibly to help prevent the spread of coronavirus (COVID-19). We set up an Incident Management Team (IMT) to lead our coronavirus (COVID-19) response and preparedness activities. We took early decisions to cease non-essential travel and to ensure organisational readiness for a range of business consequence scenarios in relation to coronavirus (COVID-19). Our key priorities continue to be protecting our people while delivering essential water services to support our communities. Recognising the economic impact of coronavirus (COVID-19) on our communities, we have extended our hardship provisions, offered financial counselling, and communicated these changes to our communities. While we necessarily closed our physical customer interface points, we have continued a strong focus on customer engagement through phone and digital channels. We also acted quickly to implement a practice of paying contractor and supplier invoices within a week of receiving them to ensure local businesses could keep their cash flows as strong as possible. It has been pleasing to see some contractors extend this arrangement down the supply chain. We transitioned our workforce to remote working smoothly without interruption to customer service and major projects such as the Kyneton Water Reclamation Plant upgrades. On average, about 80 per cent of our staff are working from home with only 5 per cent working from their regular office or site. Staff received regular updates from the IMT, and a focus was placed on the wellbeing and mental health of all our employees. We have maintained our routine of Wednesday morning ‘all-staff’ meetings through moving to a digital format which has worked to keep our people well informed about business priorities and other important information. We continue to communicate the government’s messaging and keep our communities up to date with any restrictions to activities on our reservoirs or general service information. In April 2020, we mobilised a separate ‘recovery’ team to ensure that we can recover quickly as we move through what will ultimately be an easing of restrictions. We see this work as critical to taking the lessons out of our new way of working and to explore how we can further enhance customer and community outcomes. At the time of writing (May 2020) we continue to experience the early economic and community consequences of managing the risks of COVID-19. As is widely reported economic conditions are expected to deteriorate. Fortunately we have not experienced major business impacts to date that we have not been able to manage. It is possible however that over the coming year and beyond our customers’ ability to pay bills may be impacted and supply chains may be interrupted. The extent and materiality of these consequences remains difficult to judge at this early stage however we believe that we can achieve the goals stated in the Minister’s Letter of Expectations. If we are impacted heavily, we acknowledge we may need to submit a revised Corporate Plan. We continue our work to in earnest to support our customers and our communities who rely on us to provide water to live, grow and enjoy.

Images in this publication were taken prior to coronavirus (COVID-19) restrictions and requirements of physical distancing and face coverings.

COLIBAN WATER | CORPORATE PLAN 2020–2025 3 WHO WE ARE AND WHAT WE DO

VISION

Water to Live, Grow and Enjoy

PURPOSE

We deliver water services for community needs now and into the future.

WHAT WE DO

Stakeholder collaboration underpins our successful delivery of services to our customers and our communities. We are accountable to the Victorian Minister for Water. Our aim is to be a valued service to our customers, and a valued member of our community, while fulfilling the Victorian Government’s expectations by efficiently implementing its priorities.

• Water harvest, storage, treatment and distribution to customers;

• Urban wastewater collection, including trade water from industrial and commercial customers;

• Wastewater treatment, re-use and disposal of the reclaimed water;

• Rural water supply; and

• Supply of recycled water to rural customers and urban residential and non-residential customers.

OUR TRADEMARK BEHAVIOURS

Trust Honesty Unified Committed

4 COLIBAN WATER | CORPORATE PLAN 2020–2025 SNAPSHOT

TOWNS 162,000 PEOPLE IN OUR 49 REGION OUR REGION COVERS

SQUARE KILOMETRES 504 16,500 KILOMETRES OF RURAL CHANNELS AND PIPELINES 2,008 KILOMETRES OF RAW WATER RESERVOIRS SEWER MAINS 34 AND SERVICE BASINS

2375 KILOMETRES OF WATER MAINS (POTABLE AND NON-POTABLE) WATER KILOMETRES OF PUMP DISTRIBUTION WASTEWATER MAIN CHANNELS 180 PUMP STATIONS 70 STATIONS 69INCLUDING PIPED SECTIONS WATER RECLAMATION PLANTS WATER ONE PLUS TWO OPERATED BY ETE TREATMENT RECYCLED KILOMETRES OF COLIBAN PTY LTD (ECHUCA AND PLANTS WATER FACTORY DISTRIBUTION ROCHESTER) AS A BOOT1 PARTNER 19 16 PLUS THREE OPERATED 57 78 MAINS BY VEOLIA WATER KILOMETRES OF INCLUDES 48 KILOMETRES OF (BENDIGO, CASTLEMAINE RECYCLED WATER JOINT OWNED AND OPERATED AND KYNETON) AS A INFRASTRUCTURE PIPELINE WITH CENTRAL BOOT1 PARTNER HIGHLANDS WATER

We hold Bulk Entitlements in the Campaspe, Coliban, Goulburn, Loddon, Murray and Wimmera surface water systems and groundwater extraction licences in Elmore and Trentham (Groundwater supply systems). We also hold high and low reliability water shares in the Goulburn and Campaspe systems.

COLIBAN WATER | CORPORATE PLAN 2020–2025 5 OUR KEY STAKEHOLDERS

We partner with a large number of stakeholders to achieve the best outcomes for our customers and communities. THE FRAMEWORKS WE OPERATE IN Our key stakeholders are: We are a statutory water corporation and our functions and powers are defined in the Victorian Treasurer and Victorian Water Act 1989. The Victorian the Department of Treasury and Finance (DTF) Government’s specific requirements of us are in Statements of Obligations. Victorian Minister for Water and We are regulated by state: the Department of Environment, Land, Water and Planning (DELWP) • Department of Environment, Land, Water and Planning monitors our business North Central Catchment Management Authority (CMA) performance • Department of Treasury and Finance TRADITIONAL OWNER GROUPS monitors our financial performance • Dja Dja Wurrung • Department of Health and Human Services • Taungurung ensures we protect public health by supplying safe drinking water in compliance • Yorta Yorta with legislative requirements and regulatory • Barapa Barapa standards. • Environment Protection Authority monitors LOCAL GOVERNMENT our environmental standards and • City of Greater Bendigo objectives through our Amalgamated • Macedon Ranges Shire Council Licence • Hepburn Shire Council • Essential Services Commission approves the prices we charge and our service • Loddon Shire Council standards • Mitchell Shire Council We are also regulated by the Australian • Campaspe Shire Council Competition and Consumer Commission (ACCC) • Gannawarra Shire Council regarding rural services within the Murray • Central Goldfields Shire Council Darling Basin. • Mount Alexander Shire Council

INDUSTRY REGULATORS • Essential Services Commission (ESC) • Environment Protection Authority (EPA) • Department of Health and Human Services (DHHS) • Energy and Water Ombudsman Victoria (EWOV)

INDUSTRY REPRESENTATIVES • Water Services Association of Australia (WSAA) • VicWater

As part of ongoing environmental scanning, we keep aware of significant annual and strategic plans of key stakeholders on a regular basis. These plans and strategies are incorporated where appropriate so that our plans and strategies reflect the aspirations of the communities we serve.

6 COLIBAN WATER | CORPORATE PLAN 2020–2025 STRATEGY 2030

WATER SECURITY HEALTHY PEOPLE AND AND ZERO CARBON ENVIRONMENT

Water is essential to Water is a precious resource sustain life Securing our region’s water supply Providing clean, affordable water in a constrained environment for human and environmental through innovation, education needs including for and carbon reduction. Aboriginal values.

Water underpins liveability Water underpins Working with community and partner agencies to sustain attractive green economic prosperity spaces and recreational water access Partnering with industry and for our communities. government to plan and build water services that supports business, industry and employment. GREEN AND PROSPEROUS ACTIVE COMMUNITIES ECONOMIES

7 STRATEGIC DIRECTION 1 WATER SECURITY AND ZERO CARBON Water is a precious resource. We will focus on securing our region’s water supply in challenging times through innovation, education and carbon reduction.

Water Security Working together to secure our water As the region grows, we will make our water supplies safe and secure so we all keep loving where we live.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

As climate change and population growth bites, By 2030, the community will still have access to water that is secure and we’ll have less water and more demand for it. reliable for a growing population. • We’re already increasing supplies by Security means we’ll have secure water entitlements with the right to use connecting to other systems, finding extra water. Reliability is about meeting demand without water restrictions, 95 per water for Trentham, and buying and selling cent of the time. Over the next few years, we’ll update our Urban Water Strategy water as we need it. to look at the impact of climate on our water supply and sewer services. • We’re also reducing leaks across the whole We’ll also look at encouraging more sustainable use of rainwater, storm water region and running community water-saving and recycled water. campaigns. • Teamwork is high on our list as well, and we’re Possible supply and demand projects include: bringing together organisations with SUPPLY: responsibility in the water cycle across the • Use groundwater in the Upper Coliban and Campaspe catchments whole region to help towns grow sustainably and discover extra sources. • Buy Low reliability Water Shares in the Murray Zone 7 (below Barmah Choke) • We currently have access to over two years • Investigate Class B recycled water opportunities water for most towns and with reasonable • Improve rural efficiencies winter rainfall we are well placed to provide • Build the Bendigo to Castlemaine link unrestricted supplies to all our communities. • Create extra storage at Malmsbury Reservoir • Increase recycled water output

DEMAND: • Find and fix leaks by using data from our digital meters, installing pressure sensors and upgrading supply mains • Reduce water waste at our water treatment plants • Increase community education • Ramp-up compliance to limit water theft

8 COLIBAN WATER | CORPORATE PLAN 2020–2025 TRENTHAM

Trentham is one of our fastest growing towns, with its water coming from a natural spring and the local groundwater system. Increased demand was putting pressure on supply, so we looked at ways to both conserve water in the town and find more. Groundwater testing discovered we could reach extra groundwater through another bore site. In November, 2019 the town was able to access another 55 megalitres of water a year. On top of that, we’re reducing leaks, rolling out pressure sensors and digital meters and we’ve fixed one of the town’s water mains. As climate change bites and demand increases, we’ll continue to look for more options.

This photo was taken prior to coronavirus (COVID-19) restrictions and requirements of physical distancing and face coverings.

THE YEAR AHEAD • We’ll provide greater certainty for our rural customers by developing water restriction (allocation) rules. • Our development of urban water strategies will continue, to help deal with climate change and our growing population. • We'll prepare drought response plans to show our communities how we'll manage water when there are shortages. Such shortages may be the result of extreme dry conditions or a drop in water quality. • Investigation of additional water sources for Trentham and Kyneton will continue, to help secure long-term supplies. • We’ll explore ways to improve the efficiency of our rural networks.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Approve and publish Water Restriction (allocation) Rules for Rural 1 4 5 1 customers by June 2021 8

Publish water supply reliability (demand and yield) analysis in the 1 5 6 2 Campaspe, Goulburn, Loddon and Wimmera Water Supply Systems by 7 8 June 2021 Complete stakeholder engagement regarding water supply and demand options by June 2021

Publish Drought Response Plans in systems with a major supply or 3 demand risk by June 2021 Establish best value demand reduction opportunities by June 2021

4 Install a fit-for-purpose urban supply bore at Trentham by December 2020 Undertake investigations for groundwater augmentation for Coliban Southern by June 2021

Establish best value projects to improve rural efficiency and seek 5 stakeholder support for external funding by June 2021

COLIBAN WATER | CORPORATE PLAN 2020–2025 9 WATER SECURITY AND ZERO CARBON STRATEGIC DIRECTION 1 | CONTINUED

Zero Carbon Reducing the carbon impact of water We’ve set a target of zero net emissions by 2040, increasing our energy security.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

Victorian water corporations are responsible for the largest proportion of Between 2018 and 2025 we are aiming to reduce government carbon emissions. On top of that, we are one of the biggest our emissions by at least 4,300 tonnes of carbon emitters in our region. dioxide equivalent, from a baseline of about • We initially pledged to become carbon zero by 2050, but Strategy 2030 has 33,600 tonnes. We don’t have a clear path to how fast-tracked that deadline to 2040. Continuing our push to zero net we will achieve this, but we know we will need to emissions by 2040 will increase our energy security. Energy prices are be innovative in our approach. We also can’t do it volatile, which puts pressure on the cost of treating and supplying water to alone so we will collaborate and partner with other our communities. businesses to find and deliver solutions. • We’re finding cost-effective ways to decrease emissions with an Energy and Using our flows and assets to produce energy is Carbon Management Strategy. This plan positions us to be industry leaders one way we can increase our energy security, and community expectations. reduce costs and carbon emissions. Hydro and • Zero Emissions Water is a partnership between us and 12 other Victorian solar options will be our likely focus over the next water corporations. Following commissioning, we’ll all buy solar power few years, as we work with our stakeholders to find together from the one solar farm. This means cheaper electricity, which is opportunities and realise the benefits. great for our communities, and it will meet about 20 per cent of our annual energy needs. • Bendigo’s Water Reclamation Plant at Epsom is part of a national plan to make sure there’s enough electricity to go around at peak times. When needed, we shut down our aerators at the plant without impacting treatment. This means guaranteeing power to 230 households.

10 COLIBAN WATER | CORPORATE PLAN 2020–2025 SOLAR ENERGY

Just north of Korong Vale, two large storage tanks supply water for the town and nearby Wedderburn. The site was the perfect spot to roll out our first solar project, with two long sets of panels now sitting beside the treatment plant. For a budget of just $55,000, the solar plant at Korong Vale has delivered about half the energy we need to treat the water for both communities.

THE YEAR AHEAD • We’ll install solar panels at six of our treatment plants across the region, offsetting about 25 per cent of their energy, saving 153 tonnes of emissions and more than $26,500 a year. • We will create a carbon price to help us improve climate change risk management. We’ll also create a cost-effective capital portfolio to help us get to zero carbon by 2040. • We’ll develop a set of annual smaller targets to give us a clear pathway to zero carbon.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Deliver solar installations: 2 1 Wedderburn Water Reclamation Plant (WRP), Cohuna Water Treatment Plant (WTP), Bridgewater WTP, Bridgewater WRP, Laanecoorie WTP and Lockington WTP by December 2020 Undertake benefits realisation on these six installations by June 2021 2 Endorse an internal carbon price by August 2020 2 Embed the carbon price in internal policies and procedures by December 2020

Establish interim targets for each 5-year pledge period into the Energy and 3 Carbon Management Strategy by December 2020

COLIBAN WATER | CORPORATE PLAN 2020–2025 11 WATER SECURITY AND ZERO CARBON STRATEGIC DIRECTION 1 | CONTINUED

Climate Change Adaptation Managing risks in a changing climate We will make sure our assets and services can handle the extremes of climate change, so we can continue to deliver for our communities.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

Climate change is impacting us now. It’s impacting our communities, our Climate change can make our infrastructure, infrastructure and our business. The work we’re already doing will help us services and staff vulnerable. We need to adapt to what we have in front of us today, and what’s to come tomorrow. understand those vulnerabilities, adapt and • Along with impacting water security, droughts, floods, fires and heatwaves mitigate against them where we can. can damage our assets, and change water and sewage quality. They could Over the next few years, we’ll: impact our staff and disrupt our services, which could lead to a range of • Continue to take part in industry projects to problems including: learn how others are assessing the impacts of > Social unrest climate change. > Difficulty in treating our water • Use those forums to recognise the specific > Problems with our sewage environmental compliance risks to our region. > Staff impacts from responding to increased emergency events • We’ll use that information, and our own, in our long-term planning and risk assessments. As • We’ve looked at our entire organisation to identify where the risks are and we know more, we’ll alter our design and started looking at which areas to focus our attention on. We’re working with construction specifications and augment the Department of Environment Land Water and Planning on their pilot existing assets to reduce the risk of failure Water Sector Climate Change Adaptation Action Plan. because of climate change. • Teamwork is a big part of adapting to climate change for all industries. We’re working with the broader water sector to learn from others and understand the impacts of climate change.

12 COLIBAN WATER | CORPORATE PLAN 2020–2025 CARBON OFFSET

One of the big challenges facing all water corporations is the relationship between energy and water. Climate change and increasing populations mean we need to find extra water for our communities. We built the Superpipe to supply more water when needed. But supplying that water requires more energy, and a lot of it. We’re working to offset our carbon use and find alternative energy supplies, while still making sure water gets where it’s needed.

THE YEAR AHEAD • Our commitment to long-term climate change planning will be clear and transparent. • We’ll develop a Climate Change Adaptation Plan. • We’ll undertake a climate change vulnerability assessment for our high-risk assets or sites and identify which critical supply chains are more susceptible to climate change. • All our long-term planning will include climate change scenarios.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Review the High-Level Risk Assessment on the impacts of Climate Change 1 2 5 1 by February 2021 7 Complete Climate Change Adaptation Plan by June 2021

Incorporate Climate Change criteria into Asset Risk Processes by 2 February 2021 Undertake a climate change vulnerability assessment for high risk assets/sites by June 2021 Identify supply chains that are more susceptible to climate change by June 2021

Incorporate climate change variables and impacts into all long- term 1 2 5 3 planning assessments by June 2021 7 8

COLIBAN WATER | CORPORATE PLAN 2020–2025 13 STRATEGIC DIRECTION 2 HEALTHY PEOPLE AND ENVIRONMENT Water is essential to sustain life. We will focus on providing clean, affordable water for human and environmental needs including for Aboriginal values.

Catchment and Environmental Health Safeguarding our natural environment We’ll continue to protect and improve our waterways, land, and native plants and animals.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

Managing water and sewage services brings with it We want to keep delivering reliable and affordable services without risks to the natural environment such as pollution, compromising our environment. And we’ll do it in a way that promotes high impacts to flora and fauna and changes in the flow community trust and respect. of our rivers and creeks. This can impact the health By 2030, we want our waterways and catchments to be healthier as a result of of our catchments, our communities and the our actions. We’ll also continue to create plans that deliver our services in ways broader environment. We’re turning that around that protects and improves our communities. with a range of works that increases the integrity of our services and our waterways. In the next few years we’ll be focussing on: • Over the past two years we’ve increased • Delivering Phase 2 of the Kyneton WRP. investment in our sewer operations and • Improving our WRPs to reduce environmental and community impacts. maintenance, halving the number of sewer • Upgrading sewer pump stations. blockages and spills. • Duplicating sewer pipelines. • We’re working with our waterway partners to improve water quality and establish streamside • Increasing the capacity of our sewer networks to minimise spills during wet habitat. weather. • The land around our reservoirs and treatment plants is important for catchment health. We’re A HEALTHY COLIBAN CATCHMENT minimising fire risk, removing weeds, managing pests, reducing tree hazards and protecting and A Healthy Coliban Catchment brings creating habitat for our native species both in agencies, councils and local our catchment and in other land that we own or communities together to protect the manage. catchment and improve water quality. • We’re improving the performance of our The Upper Coliban River and its sewerage assets such as the Kyneton Water tributaries are some of the region’s Reclamation Plant (WRP). most important waterways. The catchment supplies the raw water, • The way we operate, build and supply is treated for drinking, for more than carefully planned to minimise impacts on the 130,000 people and is significant environment and cultural heritage. culturally and environmentally. In a • We’re creating beneficial products from our little over a year, the project put up waste, such as recycled water and biosolids. more than 26 kilometres of fencing and That’s helping both our environment and our revegetated 35 hectares of riverbanks. local farms. It removed 118 ha of weeds, installed 55 off-stream water troughs.

14 COLIBAN WATER | CORPORATE PLAN 2020–2025 THE YEAR AHEAD

We’ll improve the health of our natural environment and manage our land to face the challenges of climate change and population growth. • We’ll upgrade Kyneton, Heathcote, Bendigo and Castlemaine water reclamation plants. This includes finishing Phase 2 works at Kyneton. • A Healthy Coliban Catchment will continue, including significant weed removal near Lauriston. • We’ll continue to work with the EPA and other stakeholders to monitor the upper Campaspe River. • Our high-risk sewer mains will continue to be upgraded and maintained to limit blockages and spills. • We’ll complete a biosolids treatment and management investment plan. Biosolids are the useable sludge at the bottom of our Water Reclamation Plant ponds. • We’re working to improve our Environmental Management System (EMS). The EMS is a process that helps us identify and manage environmental hazards.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Complete all scheduled Water Reclamation Plant upgrades within project 3 1 delivery timeframes Complete Phase 2 Kyneton Water Reclamation Plant works by December 2020

Achieve shared understanding of A Healthy Coliban Catchment (AHCC) 2 Annual Works Plan with the North Central Catchment Management Authority (CMA) by September 2020. Continue Aquatic Environmental Stress Research Group (AQUEST) water quality monitoring of the Campaspe River at Kyneton throughout 2020-21 Share the results of the AQUEST monitoring program with the regulator and others as appropriate by June 2021

Expand our management systems to reflect changes in Environmental 3 6 3 Legislation and ensure compliance with the General Environmental Duty applying in 2020-21

4 Conduct proactive maintenance on 300km of sewer mains 3 Renew 2.4km of sewer mains Inspect 500 sewer manholes Achieve a blockage rate less than 23 blockages/100kms of sewer main

Complete a biosolids treatment and management investment plan by 10 5 December 2020 Sustainably reuse biosolids in 2020-21

COLIBAN WATER | CORPORATE PLAN 2020–2025 15 HEALTHY PEOPLE AND ENVIRONMENT STRATEGIC DIRECTION 2 | CONTINUED

Community Water is central to every community Our services and our support help our communities love where they live.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

Our communities want fit-for-purpose water and wastewater treatment at an We’ll continue to develop and expand our new affordable price. They also expect a level of engagement that allows them to Relationship System, and rollout our digital meters have their say about how their water is managed. That’s why community is built across our whole region. Those projects will help into everything we do. our long-term goal of continually improving the • We offer continued support for those facing economic hardship. Qualified trust and respect we have with our communities. staff also offer a specialised service for those experiencing family violence. Over the next couple of years, we’ll focus on: • Our staff provide advice on saving water and understanding water use. • Mapping out our community engagement for • Your Town visits give communities the chance to ask questions about their our 2023 Essential Services Commission Pricing local services. Submission. • We speak with our communities regularly about what they want, and give • Identifying ways to improve our service delivery. them a Guaranteed Service Payment if we don’t meet agreed targets. • Completing our digital meter rollout to all • Digital Meters help us identify significant leaks and tell property owners customers. sooner. • Developing our Customer, Billing and • We visit schools, kindergartens and childcare centres to spread the word Stakeholder systems further. about efficient water use. • Continuing to support businesses and our • Our Choose Tap program promotes the health benefits of drinking water communities with trade waste compliance. instead of sugary drinks and the environmental impacts of bottled water. • We use our social media for education campaigns, such as the 3Ps (only put pee, poo and toilet paper down the toilet), that help our communities help us. • We‘ve rolled out the first phase of our Relationship System. We’re working to reduce drinking water taste and odour issues, and sewage odours including at Heathcote (drinking water) and Echuca (sewage). • Our trade waste rules reduce impacts on the environment, our treatment plants and the community.

16 COLIBAN WATER | CORPORATE PLAN 2020–2025 COMMUNITY REBATE PROGRAM

Our involvement in the popular Community Rebate Program is saving water and helping the community save money. We’ll send a plumber around to the house of an eligible concession card holder to conduct a water audit and highlight areas where water can be saved. We then give them up to $650 of free services, such as repairing or replacing taps, shower heads or toilets, repairing leaky pipes and fixing hot water units. In 2018-19 we completed 163 water audits, replaced 24 shower heads, and fixed 48 leaking pipes. We repaired 73 toilets – replacing cisterns, cracked bowls and seats – and fixed 46 hot water systems. Across the state, the Department of Environment, Land, Water and Planning program has saved 280 megalitres.

This photo was taken prior to coronavirus (COVID-19) restrictions and require- ments of physical distancing and face coverings.

THE YEAR AHEAD

• We’ll hold our annual customer forum. • We’ll better understand customer satisfaction through surveys. • Our Community Education program will continue across the region. • We’ll assess the benefits of our new Customer, Billing and Stakeholder Systems.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS 1 Plan and deliver the Annual Customer Forum by June 2021

2 Plan, deliver and assess customer satisfaction survey by June 2021

Conduct a benefits realisation of the new Customer, Billing and 3 Stakeholder systems by November 2020

4 Complete 100 community education sessions by June 2021

COLIBAN WATER | CORPORATE PLAN 2020–2025 17 HEALTHY PEOPLE AND ENVIRONMENT STRATEGIC DIRECTION 2 | CONTINUED

Water Quality Providing high-quality water to our communities We’ll continue to supply clean and safe drinking water as our region grows and adapts to climate change.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

Our communities expect to have access to fit-for-purpose water Our goals are to continue to deliver quality drinking water and when they need it. We’re working hard every day to continue our high levels of service to our communities. We’ll upgrade our long and proud history of supplying high-quality drinking water water treatment plants with a focus on climate change and to our towns and cities. population growth. We’ll also work towards our long-term goal of • Our water treatment plants are assessed to cater for growth our tap water being the drink of choice because of its quality and and quality compliance for the next 25 years. health benefits. • Our Drinking Water Quality Risk Management Plan is audited We’ll kick this off over the next few years by: every two years to make sure our processes and procedures • Scheduling upgrades to selected water treatment plants. deliver. • Investigating alternate supplies such as groundwater where • Our yearly budgets include water quality monitoring, appropriate. operations, maintenance and capital upgrades to make sure • Complying with the planned microbial health-based targets our water is safe to drink. for drinking water. • Building new treatment processes for towns with odour and taste issues.

THE YEAR AHEAD • We’ll be planning, designing or undertaking upgrade works for the Echuca, Korong Vale and Goornong water treatment plants.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Complete water treatment projects at Echuca and Korong Vale and an 1 investigation at Goornong within project delivery timeframes

18 COLIBAN WATER | CORPORATE PLAN 2020–2025 HEATHCOTE WATER TREATMENT PLANT UPGRADES

We made the upgrade of the Heathcote WTP a priority to improve water quality for locals. As well as improving the drinking water, we wanted to use less raw water, and less energy in our sewer system. The upgrades will mean ultra-violet disinfection and increased chlorine contact time. We’ve also installed activated carbon systems that improve taste and smell, recycle waste to decrease our use of raw water and reduce the amount going to the sewer. That means we can defer upgrading the town’s water reclamation plant and save customers money and energy by pumping less waste to it.

This photo was taken prior to coronavirus (COVID-19) restrictions and requirements of physical distancing and face coverings.

COLIBAN WATER | CORPORATE PLAN 2020–2025 19 HEALTHY PEOPLE AND ENVIRONMENT STRATEGIC DIRECTION 2 | CONTINUED

Traditional Owner Cultural Values Working On Country together We’ll continue to incorporate Aboriginal values and objectives into our water planning and management.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

Our region includes the traditional lands of the Dja Dja Wurrung, Taungurung, Our philosophy of respecting and protecting Yorta Yorta and Barapa Barapa. We recognise and support Traditional Owner Aboriginal values in everything we do will continue. cultural values and economic inclusion in the water sector. Over the long term we’ll: • Our procedures and operations include Cultural Heritage Surveys. We also • Meaningfully contribute to Bridging the Gap develop Cultural Heritage Management Plans with Traditional Owners. through our actions and commitments. • We have two service agreements with Dja Dja Wurrung Clans Aboriginal • Increase Aboriginal participation and inclusive Corporation. They focus on revegetation, fencing, landscape design, pest practices in water management. control, and fire hazard reduction. • Better recognise and understand Aboriginal • Coliban Water meets monthly with the Dja Dja Wurrung Clans Aboriginal water values, uses, and objectives. Corporation’s commercial arm Djandak to discuss current and future projects and share knowledge. These meetings help us understand the • Invest in local Traditional Owner projects. value of water to the Dja Dja Wurrung communities. • We’re working with Dja Dja Wurrung to build their project management capabilities. • We have developed a Reflect Reconciliation Action Plan. • Our rural team partners with Djandak to provide employment opportunities and we provide school-based traineeships in other areas of our organisation. • We funded the Dja Dja Wurrung Aboriginal Waterway Assessment of the upper and lower Coliban River.

20 COLIBAN WATER | CORPORATE PLAN 2020–2025 PROTECTING HISTORY

Our southern storages and waterways are significant places for local Traditional Owners. When we began planning to open up the storages to On Water recreation, we immediately turned our focus to protecting key cultural sites. We worked with Dja Dja Wurrung to survey the storages and find out what was there. The surveys discovered a large number of significant artefacts and sites across all our storages. Dja Dja Wurrung and local company Tech Duinn wrote a Cultural Heritage Management Plan to protect the sites before work began. That work also protects the sites today. We’re still working together, and have funded a mayam (shelter) overlooking the Upper Coliban spillway and Coliban River. The shelter also includes interpretive signs highlighting the rich cultural history or the area.

THE YEAR AHEAD • We’ll develop a new Innovate Reconciliation Action Plan. • We’ll support our local Traditional Owner groups in their push for economic self-determination as requested. • We’ll open dialogue with all Traditional Owner groups in our region. This will help us better understand their connection to water and help us embed this knowledge into our decision making. • We’ll continue to work with Dja Dja Wurrung protecting cultural sites at our southern storages. • We’ll work within our Memorandum of Understanding with Dja Dja Wurrung and engage in good faith negotiations with Djandak.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Have our proposed Innovate RAP submitted to Reconciliation Australia by 6 1 September 2020

Determine how Coliban Water can assist local Traditional Owner groups 2 regarding economic self-determination by June 2021

Understand how local Traditional Owner groups value water in our region 3 by June 2021

Develop a Cultural Heritage Management Plan for the installation of boat 4 ramps at Premier Mine Road and Barkers Creek by July 2020

Achieve ongoing compliance with the objectives of the MOU with 5 Dja Dja Wurrung

COLIBAN WATER | CORPORATE PLAN 2020–2025 21 STRATEGIC DIRECTION 3 PROSPEROUS ECONOMIES Water underpins economic prosperity. We will focus on partnering with industry and government to plan and build water services that supports business, industry and employment.

Partnerships Working together with a focus on the future We’ll continue to partner with industry, government and our communities to plan and build the water services that help businesses and attract new ones.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

We’re working with all our stakeholders on a shared vision for a prosperous We know there has never been a more important economy. The past year has shown us, more than ever, what working together time to work together with the organisations that can achieve. help us deliver water services. That needs to • We’re creating innovation and efficiency by working alongside our business continue over the long term to grow local partners to deliver the water and sewer projects. businesses, industry and employment. As part of doing this, we’ll focus on projects over the next few • We work with our Rural Customer Advisory Group to support local years such as: horticulture and agriculture businesses. • Continuing to take part in stakeholder forums • We’re working with local councils on a range of forums, such as the Great and identify new ones. Bendigo Economic Development Strategy Steering Committee. • Strengthening relationships with businesses, • Our work with other government agencies is bearing fruit for our local industries and our partners with a focus on communities and local landholders. employment in the region. • We are continuing to work with councils to plan for any water or sewer asset capacity increases as part of our integrated water management plans. • We’re working with industry peers to share information and successes, and the latest innovation and research. • We’re active members of the La Trobe University Industry Advisory Committee and are part of the university’s Work Integrated Learning Program.

22 COLIBAN WATER | CORPORATE PLAN 2020–2025 HARDWICKS MEATWORKS

Limited storage space at the Kyneton Water Reclamation Plant was making treating trade waste from the nearby Hardwick’s Meatworks difficult. We wanted to find a solution that would benefit both the company and the community. By working closely with Hardwick’s, we were able to find an innovative way to solve the problem for the plant and their business.

THE YEAR AHEAD • We’ll work with our top 20 business water users or discharge customers to find out how we can identify their service goals. • Our relationships with our key service providers will strengthen, with a focus on innovation and efficiency. • We’ll create community and government stakeholder charters so we can create a shared vision for the prosperity of the region.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Develop and implement a community stakeholder charter and a 4 5 8 1 government stakeholder charter, inclusive of measurement frameworks by June 2021 10

Improve the relationship with our top four private strategic partners 10 2 measured through annual surveys by: • Establishing a baseline by July 2020 • Results available by October 2020 • Implement actions by June 2021

Meet with top 20 major water and wastewater customers to identify their 5 10 3 service needs by December 2020 Complete five major customer water audits to assist customers in managing their water use by June 2021

COLIBAN WATER | CORPORATE PLAN 2020–2025 23 PROSPEROUS ECONOMIES STRATEGIC DIRECTION 3 | CONTINUED

Prosperity Helping our communities thrive Our economy needs our help more than ever before. We’ll support growth by providing services vital for the success of industry, business and employment.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

Access to water is essential for production and economic growth. As our We want to be a community leader in the prosperity economies and communities rebuild, we are standing alongside them and of our region, underpinned by providing reliable providing the water services they need to thrive. and high-quality water and sewage services. This • We’re recognising areas of growth and identifying the capacity and also means investing in infrastructure over the next capability to supply future demand. few years, including upgrades and renewals such as: • The good work we’re doing with local government and community organisations to manage water together through integrated water • Upgrading the water networks in towns across management plans will continue. the region. • We’re applying our Local Jobs First policy when assessing tenders over • Duplicating trunk water mains in Bendigo and $1million. We’re also buying goods and services that contribute socially Kyneton. and economically to our local community. • Building new assets to service growth in • We’re investing in assets for new subdivisions to help homebuyers get the Huntly, Marong and Maiden Gully. services they need straight away. • Increasing storage in Strathfieldsaye. • We employ more than 200 people across the region in a variety of skilled We’ll also support regional prosperity by continuing jobs. to deliver the Social Procurement Framework with a • We’re continuing to invest in, and upgrade, our assets, that support the focus on our region. community, help the economy grow and create jobs. • We’re working with land development practitioners to plan and approve water and sewer infrastructure in new estates.

24 COLIBAN WATER | CORPORATE PLAN 2020–2025 SOCIAL PROCUREMENT

We’ve signed up to the Victorian Government’s Social Procurement Framework initiative, where value for money is about more than just price. Its aim is to also deliver social and sustainable outcomes for the region and the state when choosing a tender or contract. We’ve also gone one step further and joined the Bendigo Growing Regional Opportunities for Work program. GROW Bendigo is about being more strategic when we choose services. We want to work with businesses, improve social and economic outcomes and increase job opportunities.

This photo was taken prior to coronavirus (COVID-19) restrictions and requirements of physical distancing and face coverings.

THE YEAR AHEAD • We’ll continue to invest in upgrades and renewals to our infrastructure. This includes design work on new storage tanks and booster pump stations at Echuca West, Marong and Strathfieldsaye. • Our urban land developers are important to the region’s prosperity, which is why we’ll finalise a negotiated New Customer Contributions framework with them. This will mean fair and clear rules to help more land be developed. • We’ll continue to apply our Local Jobs First and Social Procurement policies, work with the GROW Bendigo program and look at how we can do more to help our local economy recover. • We’ll work with councils to provide a planned approach to increase urban water supply and sewage infrastructure. • We’ll engage with our non-residential customers about how they see our services can help business confidence in the region. • We’ll continue to deliver the transitional solution to Bendigo’s rising groundwater on behalf of the Victorian government.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Undertake a baseline survey of business perception of our provision of 5 1 affordable, efficient and reliable service delivery by June 2021

Complete preliminary designs for Echuca West, Marong and 2 Strathfieldsaye tanks and booster pumps by June 2021

Approve and implement an updated procedure for negotiated New 3 Customer Connections by February 2021

Review and publicly report the effectiveness of local employment 4 initiatives including Local Jobs First, Social Procurement Policy and GROW Bendigo by June 2021

Complete the Bendigo Town Vision to support the City of Greater Bendigo 5 Industrial Land Strategy by June 2021

Continue to deliver the Bendigo Groundwater Transitional Solution on 1 6 behalf of the Victorian Government through 2020-21

COLIBAN WATER | CORPORATE PLAN 2020–2025 25 PROSPEROUS ECONOMIES STRATEGIC DIRECTION 3 | CONTINUED

Economic Sustainability Sustaining our business with the community in mind Affordable water and sewage services is at the heart of everything we do, as we create sustainable services to help build the local economy.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

We provide water and sewage services in an operating environment that is We know being economically sustainable will result financially constrained. Every day we balance levels of service with the in reliable water services, assets, and condition of our assets, affordability of prices and our own financial viability management. We want integrated water by: management to be business-as-usual as we tackle • Being innovative with our pricing to help businesses and create the big challenges of climate change and opportunities. population growth. • Being smarter in the way we buy energy. Over the next few years we’ll: • Balancing stable and decreasing water bills with sustainable spending. • Review how we prioritise expenditure in line • Budgeting and planning for works and upgrades to our assets. with Strategy 2030 goals. • Running a dynamic capital expenditure process. This allows us to be • Plan and prepare our 2023 Essential Services flexible to deal with changes in priorities and any new issues as they arise. Commission pricing submission to focus on a strong local economy and our Strategy 2030 • Including value for money in our tender assessments. vision. • Making sure our business cases are robust to deliver the best solutions. This means including community costs, social, and environmental considerations. • Working with stakeholders to support integrated water management outcomes. • Effectively managing our large and diverse assets to get the best out of each one.

THE YEAR AHEAD • By reclassifying our trade waste customers we’ll deliver more cost-effective pricing. That means those customers who cause a lot of the costs will pay more, and those who don’t will pay less. This will bring cross-subsidisation to an end and we’ll lower the chances of poor environmental outcomes by linking risks to higher trade waste prices. • We’ll investigate opportunities to enter into innovative agreements with customers that will benefit them and will help us to defer the need to upsize our assets.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Obtain signed agreements from all Trade waste customers by 1 June 2021

Identify opportunities for innovative pricing agreements with 2 large customers to optimise asset utilisation by June 2021

26 COLIBAN WATER | CORPORATE PLAN 2020–2025 INNOVATIVE PRICING

When recycled water replaced the raw channel water in parts of Bendigo, a large local company faced a problem. While the water is safe, it wasn’t suitable for the company’s strict needs. We put our heads together and came up with a plan that helped them and the local community at the same time; supply them with potable water at a reduced rate from April to December, and a full rate over summer. As a result, the company now stores and treats water onsite, which defers the need to expand the system and reduces demand in the summer.

COLIBAN WATER | CORPORATE PLAN 2020–2025 27 STRATEGIC DIRECTION 4 GREEN AND ACTIVE COMMUNITIES Water underpins liveability. We will focus on working with community and partner agencies to sustain attractive green spaces and recreational water access for our communities.

Green and engaging landscapes Protecting the green spaces our communities love Keeping open spaces and private gardens green in a changing climate is important for everyone’s health and wellbeing.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

Our communities value public parks and gardens, lakes and recreation We want to ensure public urban areas that are reserves. Trees that provide shade, along with green grass, help to cool our important to our communities are green, cool and towns in a heating climate. Healthy green public spaces also help people stay attractive. These spaces can be public parks and active and connecting with nature is important for our mental health. gardens, sporting fields, or even street trees. It’s • Our updated Smart Gardens for a Dry Climate booklet helps our important our communities stay liveable as climate communities keep their gardens waterwise. change begins to bite. • We’re working with councils, community groups and other organisations to Over the next few years we’ll: find alternative sources of water and help them use water more wisely. • Make sure councils have access to discounted • Our Local Government Water Discounts give councils cheaper water for water for priority community spaces. their priority public spaces. • Investigate whether we can increase the • We’re active members of water programs across the region such as Water amount of recycled water we produce. Sensitive Bendigo, the Coliban Region Integrated Water Management • Recast our Urban Water Strategy. Forum, and Reimagining Bendigo Creek. • Continue to work closely with councils and our • Our education programs teach children about the water cycle and communities to keep our urban landscapes sustainable water use. green and water sensitive. • The Bendigo Recycled Water Factory provides us with recycled water to use instead of valuable drinking water where appropriate. • Our campaigns promote our Permanent Water Savings Rules to our communities and how they can use them to keep their gardens green.

28 COLIBAN WATER | CORPORATE PLAN 2020–2025 LOCAL COUNCIL WATER DISCOUNTS

Our local councils manage the majority of green public spaces, so it makes sense to help them out where we can. Each year we make a capped amount of water available to councils at half price. The only catch is they use it for areas that benefit their communities. Importantly, no one is allowed to make a profit from it and council must have an existing way to get the water there. In 2019 we offered 50 megalitres and seven of the eight councils in our region applied. We gave discounts to each council to, for example, water public gardens and fill public pools. We’ll make 100ML available this financial year, 200 ML next year and 300ML the year after.

This photo was taken prior to coronavirus (COVID-19) restrictions and requirements of physical distancing and face coverings.

THE YEAR AHEAD • We’ll continue providing councils with discounted water for public spaces and assets. • We’ll begin to look at ways to improve the efficiency and reliability of the Bendigo Recycled Water Factory. • Our updated Smart Gardens for a Dry Climate booklet will be released.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS

Inform Councils of new criteria for accessing the Local Government 5 7 1 Recreational Water discounts by July 2020 Determine allocation of water discounts by September 2020 Complete a post implementation review of the 2020-21 program by April 2021 2 Complete the Bendigo Recycled Water Factory Master Plan by 30 June 2021

Achieve greater visibility of Smart Gardens booklet by printing and 3 distributing at least 5000 copies of the updated booklet by 30 June 2021

COLIBAN WATER | CORPORATE PLAN 2020–2025 29 GREEN AND ACTIVE COMMUNITIES STRATEGIC DIRECTION 4 | CONTINUED

Active and Healthy Communities Water supports the health and wellbeing of our communities We’re helping our communities stay healthy and active by opening up our land and storages, and promoting the benefits of drinking water.

WHAT WE’RE DOING NOW OUR LONG-TERM PLANS

Outdoor activities have physical and mental health benefits. They can improve We want our communities to continue to enjoy our mood, lower stress, increase energy levels, and even boost the immune tracks, picnic spots and storages for active and system. Our communities are increasingly looking for more ways to get active passive recreation. We’ll also continue to provide and stay healthy in nature, and we’re helping them do it. access to tap water in public spaces. • Four of our major reservoirs are open for walking, running, fishing and Over the next few years we’ll: kayaking, and they’re all popular picnic and barbecue spots. • Look at what other sites are suitable to be • We promote tap water as the drink of choice in our communities and opened for public recreation. schools. • Continue to provide Choose Tap educational • We maintain access to the tracks alongside the Coliban Main Channel from programs across our region. Mount Alexander to Sandhurst Reservoir as part of the Goldfields Track. • Work with councils to install permanent • We make sure all our public areas are maintained and safe for everyone bubblers at popular places. to use. • Keep promoting the health benefits of tap water. • Buy more portable drinking fountains and event water trailers as demand increases.

30 COLIBAN WATER | CORPORATE PLAN 2020–2025 BARKERS CREEK RESERVOIR

While our big three storages – Upper Coliban, Lauriston, and Malmsbury – are popular with anglers, walkers and kayakers, there’s a smaller storage that is proving size doesn’t matter. Like the other three, we’ve opened Barkers Creek Reservoir near Harcourt for both on-water and land recreation. The reservoir is an important storage for the local community and the Harcourt Valley orchard industry. It’s also gaining a big reputation for its cultural and ecological significance. Cultural heritage surveys identified artefacts significant to the Dja Dja Wurrung across a range of sites. Ecological studies found Threatened species among the many in and around the reservoir. We’re protecting the relevant sites and working with the Victorian Fisheries Association to stock the storage. The VFA has also just re-snagged the reservoir, providing perfect habitat for all kinds of fish and waterbugs.

THE YEAR AHEAD • We’ll keep managing our existing land open to public access and storages for fishing, kayaking, picnicking, walking, running and cycling. • We’ll consider other recreation opportunities for our communities, such as bird watching at the Bendigo Water Reclamation Plant. We’ll also investigate opening more old tracks next to our channels. • We’ll investigate installing signs on our channel trails that tell the story of the Coliban system. • We’ll continue to promote and develop Choose Tap campaigns. • We’ll take part in a the ‘Be a Refiller’ campaign in Echuca to encourage local businesses to invite the public in to use their taps to refill water bottles.

‘WATER FOR VIC’ UN SUSTAINABLE KEY PERFORMANCE INDICATORS FOR THE YEAR AHEAD CHAPTERS DEVELOPMENT GOALS 1 Develop Recreation Policy by June 2021 7 Build two new boat ramps (funded by Better Boating Victoria and Victoria Fisheries Authority) at our southern storages by June 2021 2 Install five new permanent bubblers in our region by June 2021 5 Procure two additional elocatable bubblers by June 2021

Participate with Campaspe Shire and the all abilities services group Vivid 3 in the “Be a Refiller program” throughout 2020-21

Supply “Choose Tap” water bottles to Dental Health Services Victoria for 5 4 kindergarten-age children participating in the Smiles 4 Miles program by June 2021

COLIBAN WATER | CORPORATE PLAN 2020–2025 31 BUSINESS ENABLERS

To provide safe and healthy water and to deliver our Strategy 2030 and Corporate Plan, we rely on the support of key internal business functions.

OUR PEOPLE WE COLLABORATE

We have zero tolerance for risking the health, safety and wellbeing of our staff We know it is important to share knowledge, skills and contractors. This is in addition to our core business function of providing and learning to keep improving and working safe and healthy drinking water and sewage treatment for our communities. smarter for our customers and communities. We collaborate with other water corporations, industry To do this we: bodies, traditional owners and local and state • Have regular OH&S meetings with our staff to share, educate and improve governments. We survey key stakeholders annually practices. and implement actions to continually improve our • Celebrate and encourage diversity, equity and inclusion and reinforce this relationships. through policies and education. • Support staff at risk of family violence with a special leave entitlement, WE ARE CUSTOMER CENTRIC internal support policies, and access to our confidential Employee Assist We are continuously improving our processes to Program. understand and consider what is best for • Hold regular information sessions about health and wellbeing, and offer customers and community when making decisions. programs and initiatives for our staff. We are delivering technology to improve our • Offer education and training to support current and future development. customer and billing systems. This technology will • Support staff to attend and present at industry forums and conferences. revolutionise the way we interact with customers and allow us to improve the customer experience. • Conduct regular checks with our staff to see how we are doing as an employer and business.

OUR TECHNOLOGY

Digital technology is a key enabler of continuous improvement. We actively seek new digital methods to make it safer, faster and easier to work with us. Our Technology Strategy will improve how we manage our data, make us more efficient, improve our decision making and streamline how we report. This ten year roadmap will underpin the delivery of Strategy 2030 by providing clear understanding of business needs, and will ensure we prioritise technology and information upgrades best aligned with Strategy 2030.

OUR INNOVATION

We have an innovation platform for all of our staff to suggest innovative ideas, big or small. This platform has already delivered benefits to staff and to our communities.

OUR CONTINUOUS IMPROVEMENT

We embed continuous improvement in our planning and processes. We have continued our accreditations of the Integrated Quality System, made up of our Quality Assurance system, OH&S and Environmental Management System. We complete our Annual Water Quality report which shows all of our compliance results.

32 COLIBAN WATER | CORPORATE PLAN 2020–2025 OUR FINANCIALS

Financial Strategy

This Corporate Plan sets our pathway for maintaining financial sustainability and customer affordability in the final three years of Pricing Submission 2018 (PS18), and embraces the direction of Strategy 2030 in the final two years of the Plan. Corporate Plan 2020-2025 continues with the ongoing vision to deliver on the customer outcomes committed in PS18. For the first three years, revenue projections are based on prices approved by the ESC. Beyond this point, there is uncertainty as new prices for 2023-2028 will be approved following the 2023-2028 Price Review. Budgeted expenditure includes a generous allowance for extensive customer and community engagement. This engagement will explore community preferences regarding price, service and debt levels, and outcomes of this engagement will be crucial as we review our long term financial position to ensure Strategy 2030 deliverables.

COLIBAN WATER | CORPORATE PLAN 2020–2025 33 Summary of financial outcomes

TABLE 1: SUMMARY OF FINANCIAL OUTCOMES

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 FORECAST PLAN PLAN PLAN PLAN PLAN FINANCIAL RESULT $’000 $’000 $’000 $’000 $’000 $’000

COMPREHENSIVE OPERATING STATEMENT Revenue 148,855.9 147,754.4 144,036.3 147,544.9 153,641.9 159,544.3 Operating, Administration & Employee Expenditure 71,721.6 75,127.1 73,285.6 74,972.3 76,239.4 77,536.4 Government Funding Expenditure 3,973.8 4,165.8 40.0 40.0 40.0 40.0 Depreciation & Amortisation Expenditure 32,367.6 31,518.1 37,492.8 38,136.0 38,763.1 39,338.9 Environmental Contribution 5,116.0 5,116.0 5,116.0 5,116.0 5,734.0 5,734.0 Earnings Before Interest and Tax 35,676.9 31,827.4 28,101.8 29,280.6 32,865.5 36,895.1 Borrowing & Finance Charges 26,463.0 24,607.5 22,407.2 20,787.8 19,145.2 17,841.2 Tax Expense (703.0) (2,166.0) (1,708.4) (2,547.8) (4,116.1) (5,716.1) Net Profit After Tax 8,510.9 5,053.9 3,986.2 5,944.9 9,604.2 13,337.7

BALANCE SHEET Total Assets 1,676,138.5 2,018,922.1 2,012,484.1 2,011,144.2 2,031,209.8 2,050,330.8 Total Liabilities 611,500.2 704,994.9 693,000.3 685,715.4 696,176.9 701,960.2 Total Equity 1,064,638.3 1,313,927.2 1,319,483.8 1,325,428.7 1,335,032.9 1,348,370.6

CASHFLOW Net Cash provided from Operating Activities 37,306.8 27,766.8 35,157.7 41,000.9 41,609.8 50,403.5 Net Cash used in Investing Activities (22,774.8) (28,874.6) (29,699.3) (29,710.6) (46,774.0) (49,346.5) Net Cash used in Financing Activities (9,725.6) (10,198.1) (10,697.4) (11,237.1) 6,680.5 409.3 Cash and cash equivalents at the end of the financial year 18,599.0 7,293.1 2,054.1 2,107.4 3,623.6 5,089.9

34 COLIBAN WATER | CORPORATE PLAN 2020–2025 Revenue

Revenue for the planning period is projected to total $753 million, predominately sourced from water and sewer services, rural access and delivery charges, bulk water and developer installed works. The projections have been set assuming stable levels of demand for water and sewerage services, adjusted by population growth and CPI.

FORECAST REVENUE

175,000 Water 150,000 Sewerage THOUSANDS 125,000 Rural Bulk Water 100,000 Developer Contributions & Gifted Assets 75,000 New Customer Contributions 50,000 Government Funding 25,000 Other

0 Forecast $K Plan $K Plan $K Plan $K Plan $K Plan $K 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 FORECAST PLAN PLAN PLAN PLAN PLAN REVENUE $’000 $’000 $’000 $’000 $’000 $’000 Water 69,424.1 66,455.2 68,107.0 69,800.2 72,901.6 75,785.8 Sewerage 53,385.7 54,226.4 55,632.4 57,039.3 59,558.3 61,872.9 Rural 3,907.5 3,593.4 3,552.9 3,512.7 3,539.4 3,679.4 Bulk Water 6,078.0 5,118.9 3,471.9 3,526.2 3,561.8 3,668.7 Developer Contributions & Gifted Assets 7,042.7 7,218.7 7,399.2 7,584.2 7,773.8 8,007.0 New Customer Contributions 4,179.4 4,656.7 4,541.6 4,734.2 4,935.1 5,083.1 Government Funding 3,933.8 4,125.8 0.0 0.0 0.0 0.0 Other 904.7 2,359.3 1,331.5 1,348.2 1,372.1 1,447.4 Total 148,855.9 147,754.4 144,036.3 147,544.9 153,641.9 159,544.3

TARIFFS DEVELOPER INSTALLED WORKS GOVERNMENT FUNDING AND NEW CUSTOMER CONTRIBUTIONS Tariffs for 2020-21 to 2022-23 have been We entered into a funding agreement in set based on the current ESC 2018 Development services income growth is 2016 with the Victorian Government, Determination approved price path of CPI expected to be lower than previous years through DELWP, to deliver the Bendigo minus 1.2%. The next regulatory period with customer growth not achieving the Groundwater Project – Transitional covers the final two years of this expected average of 1.7% as planned for Solution on behalf of the State. The Corporate Plan (2023-24 to 2024-25) and in PS18. This revised assumption, along purpose of the project is to manage has a forecast price path of CPI plus 1%. with the change in revenue recognition groundwater that is rising up through under AASB16 Revenue has impacted the currently disused mine shafts under the BULK WATER expected new customer contributions, central part of Bendigo for the benefit of Water allocation sales have been and as such reduced revenue level has the regional community. been projected. budgeted in line with the forecast long The interim solution will be in place term average rainfall and inflows that are through to 30 June 2021. expected to occur in the southern storages. Customer growth in the We recognise the importance of this northern and southern regions will lead to project to the ongoing liveability of additional pumping from Lake Eppalock Bendigo and its contribution to sustaining and the Goulburn system. a vibrant tourism sector across the city and associated region.

COLIBAN WATER | CORPORATE PLAN 2020–2025 35 Operating, Administration and Employee Costs

Our operating, administration and employee expenditure is expected to be $377.2 million over the five year period. Major expenditure categories include employee expenses, water and sewer operational programs and in activities that form the key corporate services business as usual deliverables. We also aim to realise efficiency savings across these expenditure categories, targeting to deliver ongoing cost effective services to current and future customers.

FORECAST EXPENDITURE

100,000 Water Sewer 80,000 THOUSANDS Rural 60,000 Recycled Water Raw Water 40,000 Headworks Administration 20,000 Employee 0 Forecast $K Plan $K Plan $K Plan $K Plan $K Plan $K 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 FORECAST PLAN PLAN PLAN PLAN PLAN EXPENDITURE $’000 $’000 $’000 $’000 $’000 $’000 Water 17,580.3 19,458.9 18,609.2 19,175.3 19,688.0 20,010.6 Sewer 16,450.3 17,209.7 16,578.4 17,084.7 16,729.9 16,795.7 Recycled Water 410.8 407.8 415.6 423.5 431.6 439.9 Rural 765.0 689.3 731.8 684.1 759.8 763.4 Raw Water 3,893.9 3,602.5 3,670.3 3,753.4 3,845.3 3,941.6 Headworks 1,914.3 2,070.1 1,914.3 1,924.1 1,965.1 2,087.2 Administration 16,330.3 16,076.4 11,423.4 11,224.8 11,099.1 10,980.8 Employee 18,350.5 19,778.1 19,982.7 20,742.5 21,760.7 22,557.2 Total 75,695.3 79,292.9 73,325.6 75,012.3 76,279.4 77,576.4

36 COLIBAN WATER | CORPORATE PLAN 2020–2025 Capital Costs

The capital portfolio is developed through a robust prioritisation process taking into consideration Strategy 2030 commitments and improved customer value initiatives, with investment in improving levels of service, growth, renewals and compliance. Our total planned capital delivery forecast is $189.5 million over the planning period.

CAPITAL COSTS

55,000 Capital Funding 50,000 45,000 THOUSANDS 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Forecast $K Plan $K Plan $K Plan $K Plan $K Plan $K 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

2020/21 We have identified that to strategically manage the risks associated with PLAN climate change and aging infrastructure, an increase in the level of investment CAPITAL INVESTMENT $’000 in later years of the plan is required to ensure resilient, fit for purpose assets. Echuca WTP Additional CWS 5,132.9 The increased investment required to effectively manage these risks will ensure Echuca west tanks 4,203.5 services in our region can be maintained. Kyneton WRP mechanical works 3,584.9 Bendigo trunk main review - stage 2 3,449.4 Huntly water growth project A 1,641.0 Echuca odour mitigation SPS no1 and SPS no11 1,254.9 Other projects 6,828.7 Total Projects 26,095.3 WRP renewals and optimisation 1,566.8 Planned corrective reactive maintenance 1,260.0 Integrated water and sewer planning 915.0 WTP renewals and optimisation 504.0 Water main renewals 500.0 OHS remedial works program 491.8 Other BAU programs 5,642.7 Total BAU Programs 10,880.3 Delivery assurance margin (1) (6,975.6) Total capital portfolio 30,000.0

(1) The delivery assurance margin supports the flexible management of the capital portfolio by enabling the business to dynamically adjust project delivery schedules, to ensure the total capital spend is achieved.

COLIBAN WATER | CORPORATE PLAN 2020–2025 37 Borrowings

Our debt management strategy adheres to the Department of Treasury and BORROWING COSTS Finance treasury management guidelines. Maturing loans over the planning period will be refinanced into fixed rate long term loans while the portfolio will The cost of borrowing is budgeted to decrease over be managed within approved debt maturity and interest rate risk profiles. the term of the plan due, with the average cost of debt projected to reduce to 3.8% by the end of the Borrowings are expected to increase by $11.5 million over the period from period. Interest rates over the planning period are $372.8 million as at 30 June 2020 to $384.3 million as at 30 June 2025. In the based on the current debt portfolio with refinancing final years of PS18, temporary purpose financial accommodation of $10.0 at expected market rates. million will be available to manage seasonal cash flow risk variations throughout the year. The Financial Accommodation Levy (FAL) is budgeted at 97 basis points as it is anticipated that Borrowings repayments of $4.0 million will continue as planned throughout the the credit rating will improve from the current rating remaining PS18 period, ceasing in 2022/23. Available cash in Pricing of BBB to BBB+ from 2020/21 and remain in place Submission 2023 (PS23) will be directed to fund the capital portfolio, as will until 2024/25. borrowings of $14.5 million and $9 million to deliver on asset resilience. The impact of new borrowings on our net result and other financial sustainability indictors will be minimised by favourable interest rates forecast for new debt and offset by refinancing maturing debt at the lower interest rates.

SENSITIVITY OF FINANCIAL OUTCOMES

OPERATING EXPENDITURE CAPITAL EXPENDITURE WATER AND SEWER DEMAND

2020/21 INCREASE DECREASE INCREASE DECREASE INCREASE DECREASE FINANCIAL RESULT PLAN 5% 5% 5% 5% 5% 5% $’000 $’000 $’000 $’000 $’000 $’000 $’000

COMPREHENSIVE OPERATING STATEMENT Total Revenue 147,754.4 147,754.4 147,754.4 147,754.4 147,754.4 151,504.5 145,371.4 Total Operating, Administration & 75,127.1 78,883.4 71,370.7 75,127.1 75,127.1 75,127.1 75,127.1 Employee Expenditure Earnings Before Interest and Tax 31,827.4 28,071.1 35,583.7 31,827.4 31,827.4 35,577.5 29,444.4 Net result for the year 5,053.9 2,424.5 7,683.4 5,053.9 5,053.9 7,679.0 3,385.8

CASHFLOW Net Cash provided from Operating Activities 27,766.8 25,062.2 30,471.4 27,766.8 27,766.8 30,931.9 25,755.5 Net Cash used in Investing Activities (28,874.6) (28,874.6) (28,874.6) (30,149.6) (27,585.7) (28,874.6) (28,874.6) Net Cash used in Financing Activities (10,198.1) (10,198.1) (10,198.1) (10,198.1) (10,198.1) (10,198.1) (10,198.1) Cash at the end of the financial year 7,293.1 4,588.5 9,997.7 6,081.1 8,582.0 10,458.2 5,281.9 Capital Expenditure 30,000.0 30,000.0 30,000.0 31,500.0 28,500.0 30,000.0 30,000.0

38 COLIBAN WATER | CORPORATE PLAN 2020–2025 APPENDICES

1. Strategies, Drivers and Obligations We have key statutory obligations as well as policies, licences, agreements and strategies that we operate under.

WATER SUPPLY SEWERAGE SERVICES LAND MANAGEMENT AND CATCHMENTS

Annual Operating Plan Bulk Sewage Transfer, Treatment and Aboriginal Heritage Act 2006 Annual Water Outlook Disposal Agreements Biodiversity Strategy Australian Drinking Water Guidelines Climate Change Act 2017 Catchment and Land Protection Act 1994 Bulk Entitlement (water) licenses Environment Protection Act 2017 Dam Safety Policy Catchment and Land Protection Act 1994 EPA Victoria Amalgamated Licence Dams Flood Mitigation Policy Health (Fluoridation) Act 1973 National Greenhouse and Energy Reporting Act 2007 Drinking Water Storages and Land Management Plan (Commonwealth) Licences to Operate Works Environment Protection Act 2017 State Environment Protection Policy Safe Drinking Water Act 2003 (Air Quality Management) Environment Protection and Biodiversity Conservation Act 1999 (Commonwealth) Statement of Obligations (General) State Environment Protection Policy Take and Use Water licences (Waters of Victoria) Environmental Policy Urban Water Strategy Statement of Obligations (General) Flora and Fauna Guarantee Act 1988 Water Act 1989 Water Act 1989 Planning and Environment Act 1987 Water for Victoria Water for Victoria Water Plan State Environment Protection Policy (Waters of Victoria) Water Industry Act 1994 Water Industry Act 1994 Sustainability Strategy Water Act 1989 Water for Victoria Water for Victoria Water Plan

BUSINESS AND FINANCIAL

Aboriginal Heritage Act 2006 Income Tax Assessment Act 1997 Public Records Act 1973 Audit Act 1994 Local Jobs First Act 2003 Reconciliation Action Plan Borrowing and Investment Powers Act 1987 Ministerial Directions for Public Construction Procurement Social Procurement Framework Building Act 1993 Modern Slavery Act 2018 Standing Directions 2018 Constitution Act 1975 National Construction Code of Australia 2015 Statement of Obligations (Emission Reductions) Copyright Act 1968 Occupational Health and Safety Act 2004 Statement of Obligations (General) Customer (Urban, Trade Waste and Rural) Charters OH&S Act 2004 Strategy 2030 Customer Service Code – Rural Water Businesses Pricing Submission 2018 Trade Waste Customer Service Code Customer Service Code - Urban Water Businesses Privacy and Data Protection Act 2014 Victoria Government Purchasing Board Policies (VGPB) Family Violence Policy Project Development and Construction Financial Management Act 1994 Management Act 1994 Victorian Government Sponsorship Policy Freedom of Information Act 1982 Public Administration Act 2004 Water Act 1989 Hardship Policy in Victoria Public Interest Disclosures Act 2012 Water for Victoria

COLIBAN WATER | CORPORATE PLAN 2020–2025 39 2. Risk Management

Strategic risks are identified as part of the Corporate Planning process are regularly reported to the Board’s Risk, Assets and Community Committee. The Risk, Assets and Community Committee provides guidance across the framework.

STRATEGIC RISK MAJOR PROJECTS TO CONTROL RISKS HEALTH, SAFETY AND WELLBEING • Certified Safety Management System Includes risk of harm to employees and risk of harm to the public from not providing adequate • Fatal Risk Protocols for Staff risks services. Coliban Water will actively manage these risks through a coordinated and consistent • Dam Safety approach.

BUSINESS RESILIENCE TO CLIMATE CHANGE INCLUDING WATER SECURITY • Energy and Carbon Management Strategy Includes Coliban Water being ready for the impacts of climate change including customer • Annual Carbon and Energy Plan expectations (climate readiness); environmental obligations such as carbon reduction; water and • Urban Water Strategy and Drought Preparedness Plans sewerage services that protects both human health and the environment; and water availability. • Annual Operating Plan and Annual Water Outlook • Treatment Master Plans and augmentation plans • Shadow Carbon Price Strategy

ENVIRONMENTAL PERFORMANCE • Certified Environment Management System ISO14001 Includes any activities undertaken by Coliban Water that pose a risk or actual impact to the • Kyneton Offsets Project environmental performance of Coliban Water. This risk focuses Coliban Water beyond compliance • Stop the Block Program and into pro-active management of the environment in which we operate.

STAKEHOLDER AND COMMUNITY CONFIDENCE • Reputational Issues Register This risk includes loss of confidence in Coliban Water by the community and stakeholders which • Daily Media Monitoring may impact Coliban Water’s social license to operate in its current form • Customer Engagement Forums • Stakeholder Research • Customer Research • Reconciliation Action Plan

ASSET CONFIDENCE • Asset Management Accountability Framework This risk covers Coliban Water assets being able to service the delivery needs of customers in the • Asset Management System AS/ISO55000 short term i.e. within a 3-5 year time frame. • Asset Revaluation Process • WSAA Benchmarking – Asset Management Customer Value

FINANCIAL SUSTAINABILITY • Corporate Plan Includes financial activities and decisions for debt management and customer affordability. • Business Performance Reporting • Treasury Management Framework • Fraud Detection Program • Procurement Governance Policies • Standing Directions 2018 under the Financial Management Act 1994 • Internal and External Audit

INFORMATION SECURITY • Information Security Program of Works This risk covers the loss of confidentiality, integrity, and/or availability of customer and staff • Victorian Protective Data Security Framework and Standards personal information, revenue and financial information, data used for operations and decision making, and configuration of Information Technology (IT) and Operational Technology (OT) systems. This risk also covers a party gaining unauthorised access to Coliban Water systems (IT or OT).

40 COLIBAN WATER | CORPORATE PLAN 2020–2025 3. Minister’s Letter of expectations

REFERENCE AND LINK PRIORITY AREA TO CORPORATE PLAN KEY PERFORMANCE INDICATOR CLIMATE CHANGE • Zero Carbon • Complete Climate Change Adaptation Plan. Undertake activities and provide services that minimise • Climate Change • Deliver on Coliban Water’s pledge to reduce emissions by 4,300 tCO2e/y (13 per cent environmental impact, mitigate climate change and Adaption of the relevant five year average baseline) during 2018-2025, with a stretch target of demonstrate reasonable progress in integrating climate 12,300 tCO2e/y (37 per cent of the baseline). change adaption into planning and decision making. • Implement the Energy and Carbon Management Strategy. • Zero net emissions by 2050, with the intent to deliver by 2040.

CUSTOMER AND COMMUNITY OUTCOMES • Community • Continue to implement Coliban Water’s Pricing Submission 2018 Customer Outcome commitments. All aspects of service delivery will be customer and community centred and will continue to build extensive and • Continue to deliver a customer endorsed Coliban Water Engagement Framework and effective community engagement and partnerships in Principles. planning and implementation of service delivery. • Implement a defined program for customer-centricity at Coliban Water. • Plan and deliver the Annual Customer Forum. • Refer to the Customer Engagement Plan.

WATER FOR ABORIGINAL CULTURAL, • Traditional Owner • Send our proposed Innovate Reconciliation Action Plan to Reconciliation Australia. SPIRITUAL AND ECONOMIC VALUES Cultural Values • Continue to deliver our Diversity and Inclusion Plan which includes all areas of Recognise and support self-determination of Aboriginal equity, diversity and inclusion. cultural values and economic inclusion in the water sector. • Deliver on all obligations under the Recognition and Settlement Agreement.

RECOGNISING RECREATIONAL VALUES • Active and Healthy • Develop a Recreation Policy to guide the identification and suitability of land for Communities public access. Support the wellbeing of rural and regional communities by considering the recreational values in water management. • Undertake a community survey to understand community objectives for recreational water.

RESILIENT AND LIVEABLE CITIES AND TOWNS • Community • Continue engagement with local councils on future regional planning. Contribute to healthy communities by supporting safe, • Partnerships • Continue participation in the state-wide Target Your Water Use campaign to promote affordable, high quality services and resilient environments. water efficiency. • Continued delivery of support programs including Coliban Assist Program for customers experiencing hardship. • Continue proactive support program to identify those eligible for Utility Relief Grants. • Develop and implement a community stakeholder charter and a government stakeholder charter.

LEADERSHIP AND CULTURE • Traditional Owner • Have our proposed Innovate Reconciliation Action Plan submitted to Reconciliation Cultural Values Australia by September 2020. Water Corporations reflect the needs of our diverse communities and develop strategies and goals that will • Business Enablers • Continue to deliver our Diversity and Inclusion Plan which includes all areas of increase cultural diversity in the workforce and gender equity, diversity and inclusion. equity in both executive leadership and throughout the • Participate in the 2020 People Matter Survey to understand achievements and to organisation. respond to opportunities in leadership and culture. • Submit a Board Performance Review to the Minister and develop an annual Board Plan to respond to recommendations.

FINANCIAL SUSTAINABILITY • Financials • Financial indicators as prescribed by the Performance Reporting Framework. Delivering safe and cost-effective water and wastewater services in a financially sustainable manner.

COLIBAN WATER | CORPORATE PLAN 2020–2025 41 4. Key Performance Indicators and Targets

We separate the key performance measures into three specific categories. 1. Public Accountability (Government Agency Determined): Water Industry Performance Reporting Framework indicators that are subsequently reported in the Annual Report. 2. Customer Outcomes and ESC Service Standards: As agreed with customers and endorsed by the ESC.; and 3. Customer and Community Rebates: Customers identified these measures as being of high importance. Where these measures are not met, a rebate will be paid to either the impacted customer or community.

TABLE 1: PUBLIC ACCOUNTABILITY (GOVERNMENT AGENCY DETERMINED)

KPIS DEFINITION MEASURE 2020/21 2021/22 2022/23 2023/24 2024/25

FINANCIAL F1 Interest Cover (Cash) Ability to meet ongoing interest expense and Net operating cash flows before net interest and tax 2.12 2.55 2.96 3.16 3.82 service debt / net interest payments F2 Gearing Ratio (debt to assets) Ability to fund proportion of assets using debt Total Debt (including finance leases) /Total Assets 21.4% 20.9% 20.3% 20.4% 20.2% * 100 F3 Internal Financing Ratio Measures ability to finance capital works from Net operating cash flow less dividends/ net capital 94.9% 117.1% 136.7% 88.5% 101.7% cash flow expenditure * 100 F4 Current ratio Ability to meet existing liabilities in the short Current assets / current liabilities (excluding long- 1.0 0.8 0.9 1.0 1.0 term (12 months) term employee provisions and revenue in advance)

F5 Return on Assets (based on Measure of profitability as a percentage of Earnings Before net Interest and Tax/Average Assets 1.7% 1.4% 1.5% 1.6% 1.8% statutory asset values) assets * 100 F6 Return on Equity Measure of profitability as a percentage of Net Profit After Tax / Average Total Equity * 100 0.4% 0.3% 0.4% 0.7% 1.0% shareholder equity F7 EBITDA Margin Ability to generate surplus to fund operations Earnings Before Interest, Tax, Depreciation and 42.8% 45.5% 45.6% 46.6% 47.7% and asset renewal Amortisation/ total revenue * 100 F8 Credit Rating Evaluation of credit risk Credit Rating BBB+ BBB+ BBB+ BBB+ BBB+

WATER SERVICE WS1 Customers receiving unplanned No. of water customers receiving more than 5 No. of customers receiving more than 5 unplanned 0.1 0.1 0.1 0.1 0.1 water supply interruptions in the unplanned interruptions in the financial year. interruptions in the year per 1000 customers year (ESC REW 9) WS2 Customer-minutes to restore water Total duration of all water supply customer Average duration of unplanned water supply 112.0 112.0 112.0 112.0 112.0 supply interruptions. (ESC REW 8) interruptions WS3 Unplanned water supply Water supply interruption when water supply is Unplanned water supply interruptions restored 98.0% 98.0% 98.0% 98.0% 98.0% interruptions restored within lost and until fully restored. (ESC REW 6) within 5 hours/total unplanned water supply 5 hours interruptions * 100

SEWERAGE SERVICE SS1 Sewer spills from reticulation and As per ESC RES 7 Sewer spills from reticulation and branch sewers 99.0% 99.0% 99.0% 99.0% 99.0% branch sewers (P1 and P2) contained within 5 hours/total sewer spills contained within 5 hours SS2 Sewer supply customer Residential sewerage customers experiencing No. of residential sewerage customers affected by 99.0% 99.0% 99.0% 99.0% 99.0% interruptions restored within 1 sewerage interruptions restored within 1 hour sewerage interruptions restored within 1 hour/total hour (ESC RES 9) number of residential sewerage customers

CUSTOMER RESPONSIVENESS CR1 Water quality complaints - colour, No. of water quality complaints regarding No. of complaints per 1000 customers 3.5 3.5 3.5 3.5 3.5 taste and odour, blue water, other discolouration, taste, odour, stained washing, illness or cloudy water (ESC CRS 4) CR2 Sewerage service quality and ESC CRS 6 No. of complaints per 1000 customers 0.06 0.06 0.06 0.06 0.06 reliability complaints CR3 Sewage odours complaints ESC CRS 10 No. of complaints per 1000 customers 1.9 1.9 1.9 1.9 1.9 CR4 Billing/payment issues complaints ESC CRS 7 No. of complaints per 1000 customers 0.28 0.28 0.28 0.28 0.28

ENVIRONMENTAL E1 Effluent re-use volume(end use) Volume of treated sewage effluent reused either Percentage recycled 39% 39% 39% 39% 39% by the water business, a business supplied by the water business or supplied through a third pipe system for urban reuse (ESC CRR1) E2 Total net CO2 equivalent emissions Net tonnes of CO2 equivalent emissions (scope Net tonnes CO2 equivalent 32,505 32,505 29,305 29,305 29,305 1 and scope 2 emissions only) for the whole business and its activities. (ESC CRR 5)

42 COLIBAN WATER | CORPORATE PLAN 2020–2025 Customer Outcomes and ESC Service Standards

TABLE 2: CUSTOMER OUTCOMES AND ESC SERVICE STANDARDS

2020/21 2021/22 2022/23 2023/24 2024/25 TARGET TARGET TARGET *GUIDE *GUIDE CUSTOMER OUTCOME 1: SUPPLY HIGH QUALITY WATER YOU CAN TRUST Systems meeting all parameters in Coliban Water System Index (%) 90 90 90 90 90 Number of Safe Drinking Water Act non-compliances (no.) 0 0 0 0 0 Customer agreement satisfied with the quality of water delivered by Coliban Water (%) 87 87 87 87 87 Water quality to low palatability towns : towns deemed to be low palatability (no.) 0 0 0 0 0 New fencing added each year around major storages (km) 3.0 3.0 3.0 3.0 3.0 Water mains cleaned to remove sediment and improve delivered water quality (km) 100 100 100 100 100 CUSTOMER OUTCOME 2: PROVIDE INFRASTRUCTURE AND SERVICES TO MEET CUSTOMERS’ NEEDS NOW AND INTO THE FUTURE Access to fit for purpose water measured by: • Rural allocation provided (%) 100 100 100 100 100 • Number of towns on water restrictions (not including PWSR) (no.) 0 0 0 0 0 Unaccounted for water (urban) (%) 15 15 15 15 15 New digital meters installed and operational (no.) 5,000 5,000 5,000 5,000 5,000 Undertake Water Efficiency Audits with major non-residential customers (no.) 3 3 3 3 3 Renew Coliban Main Channel: length renewed (km) 0.6 0.6 0.6 0.6 0.6 CUSTOMER OUTCOME 3: REDUCE OUR ENVIRONMENTAL FOOTPRINT AND ACHIEVE A SOCIALLY RESPONSIBLE, SUSTAINABLE BUSINESS FOR FUTURE GENERATIONS Annual CO2 emissions (tonnes CO2-eq) 32,505 32,505 29,305 29,305 29,305 Number of EPA reportable sewer spills (no.) 17 16 15 15 15 Reduction in annual chemical consumption expenditure ($17-18 per ML treated) 99 97 95 95 95 Number sewer blockages per 100km sewer main (no.) 38 36 35 35 35 CUSTOMER OUTCOME 4: OPEN AND TRANSPARENT ABOUT PRICING AND SERVICE DISRUPTIONS, AND EASY TO DO BUSINESS WITH Average customer minutes off water supply (planned and unplanned) (min.) 12.3 11.8 11.5 11.5 11.5 Planned or unplanned water supply interruptions restored within 5 hours (%) 98 98 98 98 98 Customers experiencing 5 or more water supply interruptions (no.) 5 5 5 5 5 Average time to rectify a sewer blockage (min.) 80 80 80 80 80 Customers receiving 3 or more sewer blockages in the year (no.) 16 16 16 16 16 Residential customers receiving 1 or more (un)planned water service interruption in year (%) 10.0 9.8 9.6 9.6 9.6 Utility Relief Grants provided by DHHS to Coliban Water residential customers (no. per 1,000) 8.8 8.8 8.8 8.8 8.8 Total Hardship Grants awarded to customers (excluding government schemes) ($17-18) 225,000 255,000 285,000 285,000 285,000 CUSTOMER OUTCOME 5: SUPPORT THE LIVEABILITY OF THE REGION Volume of water delivered to councils through recreational pricing (ML) 100 200 300 300 300 Maintain or improve our credit rating (rating) BBB BBB BBB+ BBB+ BBB+ We will pay down our debt ($M nominal) 4.0 4.0 4.0 0.0 0.0 OTHER INDUSTRY SERVICE MEASURES Average time taken to attend bursts and leaks: Priority 1 (min.) 32 32 32 32 32 Average time taken to attend bursts and leaks: Priority 2 (min.) 80 80 80 80 80 Average time taken to attend bursts and leaks: Priority 3 (min.) 1,440 1,440 1,440 1,440 1,440 Average duration of unplanned water supply interruptions (min.) 112 112 112 112 112 Average duration of planned water supply interruptions (min.) 140 140 140 140 140 Average time to attend sewer spills and blockages (min.) 30 30 30 30 30 Spills contained within 5 hours (%) 99 99 99 99 99

*2023-24 and 2024-25 Customer Outcomes and Service Standards TBC

COLIBAN WATER | CORPORATE PLAN 2020–2025 43 Customer and community rebates

TABLE 3: CUSTOMER AND COMMUNITY REBATES

TYPE VALUE

CUSTOMER OUTCOME 1: SUPPLY HIGH QUALITY WATER YOU CAN TRUST 25% Water There is an ongoing adverse water quality issue in your system, for example poor taste or colour Customer Access Fee There is a short-term adverse water quality issue in your system, for example poor taste or colour Community $5,000

Coliban Water issues a 'boil water' or 'do not consume' notice in your water supply system Community $5,000

CUSTOMER OUTCOME 2: PROVIDE INFRASTRUCTURE AND SERVICES TO MEET CUSTOMERS NEEDS NOW AND INTO THE FUTURE Infrastructure Rural customers receive less than 100% of water allocation in any given year Customer Charge refund There is poor water flowrate / pressure in a supply area over a prolonged period Community $5,000

CUSTOMER OUTCOME 3: REDUCE OUR ENVIRONMENTAL FOOTPRINT AND ACHIEVE A SOCIALLY RESPONSIBLE, SUSTAINABLE BUSINESS FOR FUTURE GENERATIONS There is a sewer spill to local waterways or the environment that has a significant environmental impact Community $20,000

CUSTOMER OUTCOME 4: OPEN AND TRANSPARENT ABOUT PRICING AND SERVICE DISRUPTIONS, AND EASY TO DO BUSINESS WITH Sewer intrusion into your house or building premises: blown seal Customer $50 / $100

Sewer intrusion into your house or building premises: contained within 1 hour Customer $300

Sewer intrusion into your house or building premises: not contained within 1 hour Customer $1,000

3+ sewer blockages affecting you in a year Customer $100

4+ water supply outages affecting you in a year Customer $50

Water supply interruption not restored within 5 hours Customer $50

Your correspondence (letter or email) to Coliban Water not responded to within 10 business days Customer $10

Restricting the water supply of, or taking legal action against, a residential customer prior to taking reasonable endeavours (as defined by the Essential Services Commission) to contact the customer and provide information about Customer $300 help that is available if the customer is experiencing difficulties paying Failing to unrestrict a customer's water supply within 24 hours (1 business day) of confirmation that the reason for Customer $300 restriction no longer applies

Special Meter Read not completed within 1 business day after the scheduled read date Customer No charge

Planned water supply outage during peak periods (5AM-9PM & 5PM-11PM weekdays, all weekends) Customer $100

High Priority inspection at practical completion not completed within 2 business days Customer $250

High Priority mains extension approval not completed within 10 business days Customer No charge

Note all rebate values are in nominal dollars

44 COLIBAN WATER | CORPORATE PLAN 2020–2025 5. Detailed Financial Outlooks

The financial projections in this Plan have been prepared in accordance with Australian Accounting Standards and within the guidelines prescribed in the Department of Environment, Land, Water and Planning (DELWP) Victorian Water Industry Corporate Planning and Reporting Guidelines 2020-21. The Corporate Plan financials have been reviewed by management, endorsed by the Audit Committee and approved by Board.

COMPREHENSIVE OPERATING STATEMENT

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 FORECAST PLAN PLAN PLAN PLAN PLAN $’000 $’000 $’000 $’000 $’000 $’000

REVENUE 212KL 190KL 190KL 190KL 190KL 190KL Service charges 73,276.2 74,339.9 76,191.6 78,057.2 81,468.2 84,659.6 Usage charges 59,919.9 55,457.8 54,983.9 56,240.5 58,528.9 60,800.5 Government funding 3,933.8 4,125.8 0.0 0.0 0.0 0.0 Developer contributions & gifted assets 7,042.6 7,218.7 7,399.2 7,584.2 7,773.8 8,007.0 New customer contributions 4,179.4 4,656.7 4,541.6 4,734.2 4,935.1 5,083.1 Net gain / (loss) on disposal of non-financial assets (1,458.6) 0.0 (1,000.0) (1,000.0) (1,000.0) (1,000.0) Other income 1,962.5 1,955.4 1,920.0 1,928.7 1,936.1 1,994.1 Total revenue 148,855.9 147,754.4 144,036.3 147,544.9 153,641.9 159,544.3

EXPENSES Operating expenses 41,014.5 43,438.3 41,919.5 43,045.0 43,419.6 44,038.3 Administration expenses 12,356.6 11,910.6 11,383.4 11,184.8 11,059.1 10,940.8 Employee expenses 18,350.5 19,778.1 19,982.7 20,742.5 21,760.7 22,557.2 Expenditure of Government funding 3,973.8 4,165.8 40.0 40.0 40.0 40.0 Borrowing costs 21,192.6 19,800.2 18,099.3 17,019.5 15,959.4 15,289.9 Finance charges 5,270.4 4,807.3 4,307.9 3,768.3 3,185.8 2,551.4 Depreciation & amortisation 32,367.6 31,518.1 37,492.8 38,136.0 38,763.1 39,338.9 Environmental contribution 5,116.0 5,116.0 5,116.0 5,116.0 5,734.0 5,734.0 Total expenses 139,641.9 140,534.5 138,341.6 139,052.1 139,921.7 140,490.5

Net result before tax 9,213.9 7,219.9 5,694.6 8,492.8 13,720.3 19,053.8 Income tax expense (703.0) (2,166.0) (1,708.4) (2,547.8) (4,116.1) (5,716.1) Net result for the year 8,510.9 5,053.9 3,986.2 5,944.9 9,604.2 13,337.7

OTHER COMPREHENSIVE INCOME Change in asset revaluation reserve 0.0 244,235.0 0.0 0.0 0.0 0.0 Income tax expense 0.0 (104,672.1) 0.0 0.0 0.0 0.0 Total other comprehensive income for the year 0.0 139,562.8 0.0 0.0 0.0 0.0 Comprehensive result 8,510.9 144,616.8 3,986.2 5,944.9 9,604.2 13,337.7

COLIBAN WATER | CORPORATE PLAN 2020–2025 45 CASH FLOW STATEMENT

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 FORECAST PLAN PLAN PLAN PLAN PLAN $’000 $’000 $’000 $’000 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES Services and usages charges 134,285.1 129,855.1 131,222.9 134,085.5 139,410.7 144,931.5 Other customer revenue 6,321.9 6,866.0 6,005.6 6,433.0 6,669.6 6,860.0 Receipts from government 4,200.0 600.0 0.0 0.0 0.0 0.0 GST received from the ATO 7,978.9 8,690.1 8,312.4 8,249.3 10,090.9 10,157.4 Interest received 123.0 93.1 73.2 75.2 77.3 79.6 Total receipts 152,908.9 146,104.3 145,614.1 148,843.0 156,248.5 162,028.5

Payments to suppliers (53,651.2) (55,897.0) (52,777.9) (52,846.0) (57,846.4) (55,317.2) Payments to employees (18,200.2) (19,624.1) (19,824.8) (20,580.7) (21,594.9) (22,387.2) Payments to government (3,973.8) (4,165.8) (1,610.3) (40.0) (40.0) (40.0) GST paid to ATO (8,004.0) (8,715.8) (8,338.7) (8,276.2) (10,118.5) (10,185.7) Interest and other costs of finance paid (26,656.9) (24,818.9) (22,788.7) (20,983.1) (19,304.9) (17,960.9) Environmental contributions (5,116.0) (5,116.0) (5,116.0) (5,116.0) (5,734.0) (5,734.0) Total payments (115,602.1) (118,337.5) (110,456.4) (107,842.0) (114,638.8) (111,625.0)

Net cash (outflow) / inflow from operating activities 37,306.8 27,766.8 35,157.7 41,000.9 41,609.8 50,403.5

CASH FLOWS FROM INVESTING ACTIVITIES Payments for infrastructure assets, property, plant and equipment (23,824.5) (28,860.7) (29,621.0) (29,586.2) (46,600.3) (49,176.9) Payments for intangible assets (400.0) (400.0) (400.0) (400.0) (400.0) (400.0) Proceeds from investments 312.7 296.2 229.7 183.6 134.3 138.4 Proceeds on disposal of infrastructure, property, 1,137.0 90.0 92.0 92.0 92.0 92.0 plant and equipment Net cash (outflow) / (22,774.8) (28,874.6) (29,699.3) (29,710.6) (46,774.0) (49,346.5) inflow from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 0.0 0.0 0.0 0.0 14,500.0 9,000.0 Repayment of borrowings (4,000.0) (4,000.0) (4,000.0) (4,000.0) 0.0 0.0 Repayment of finance lease liabilities (5,725.6) (6,198.1) (6,697.4) (7,237.1) (7,819.5) (8,590.7) Net cash (outflow) / (9,725.6) (10,198.1) (10,697.4) (11,237.1) 6,680.5 409.3 inflow from financing activities

Net increase / (decrease) in 4,806.4 (11,305.9) (5,239.0) 53.3 1,516.2 1,466.3 cash and cash equivalents Cash and cash equivalents 13,792.5 18,599.0 7,293.1 2,054.1 2,107.4 3,623.6 at the beginning of the financial year Cash and cash equivalents 18,599.0 7,293.1 2,054.1 2,107.4 3,623.6 5,089.9 at the end of the financial year

46 COLIBAN WATER | CORPORATE PLAN 2020–2025 BALANCE SHEET

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 FORECAST PLAN PLAN PLAN PLAN PLAN $’000 $’000 $’000 $’000 $’000 $’000

CURRENT ASSETS Cash and cash equivalents 18,599.0 7,293.1 2,054.1 2,107.4 3,623.6 5,089.9 Receivables 23,206.3 22,817.4 22,834.2 23,112.3 23,766.1 24,363.8 Inventories 1,707.2 1,707.2 1,707.2 1,707.2 1,707.2 1,707.2 Prepayments 631.2 646.9 663.1 679.7 696.7 714.1 Total current assets 44,143.6 32,464.7 27,258.7 27,606.6 29,793.6 31,875.0

NON-CURRENT ASSETS Receivables 590.5 537.3 489.0 445.0 404.9 368.5 Infrastructure assets, property, plant and equipment 1,567,358.8 1,923,181.6 1,923,364.3 1,923,126.7 1,942,491.7 1,961,054.1 Intangible assets 64,045.6 62,738.5 61,372.2 59,965.9 58,519.6 57,033.3 Total non-current assets 1,631,994.9 1,986,457.4 1,985,225.4 1,983,537.6 2,001,416.2 2,018,455.8

Total assets 1,676,138.5 2,018,922.1 2,012,484.1 2,011,144.2 2,031,209.8 2,050,330.8

CURRENT LIABILITIES Payables 18,705.6 19,154.8 18,200.4 19,891.5 19,808.9 19,569.5 Unearned Income 5,305.1 2,012.1 278.3 301.9 311.8 316.9 Borrowings 4,000.0 4,000.0 4,000.0 0.0 0.0 0.0 Lease liabilities 442.8 456.2 486.0 427.9 275.9 292.2 Finance Leases - BOOT Schemes 6,199.9 6,699.2 7,238.8 7,821.3 8,592.5 9,333.4 Employee benefits 5,432.5 5,568.3 5,707.6 5,850.2 5,996.5 6,146.4 Total current liabilities 40,085.9 37,890.7 35,911.1 34,292.9 34,985.6 35,658.4

NON-CURRENT LIABILITIES Payables 149.6 136.9 117.9 131.7 131.4 129.5 Borrowings 368,831.6 364,831.6 360,831.6 360,831.6 375,331.6 384,331.6 Lease liabilities 4,252.6 3,796.4 3,310.3 2,882.4 2,606.5 2,314.4 Finance Leases - BOOT Schemes 58,520.2 51,822.7 44,585.7 36,766.1 28,175.4 18,843.8 Deferred tax liabilities 138,931.9 245,770.0 247,478.4 250,026.2 254,142.3 259,858.4 Employee benefits 728.5 746.7 765.3 784.5 804.1 824.2 Total non-current liabilities 571,414.3 667,104.2 657,089.2 651,422.6 661,191.3 666,301.9

Total liabilities 611,500.2 704,994.9 693,000.3 685,715.4 696,176.9 701,960.2

Total net assets 1,064,638.3 1,313,927.2 1,319,483.8 1,325,428.7 1,335,032.9 1,348,370.6

EQUITY Contributed capital 304,025.1 304,025.1 304,025.1 304,025.1 304,025.1 304,025.1 Reserves 388,093.9 632,328.8 632,328.8 632,328.8 632,328.8 632,328.8 Accumulated funds 372,519.3 377,573.3 383,129.9 389,074.8 398,679.0 412,016.7 Total equity 1,064,638.3 1,313,927.2 1,319,483.8 1,325,428.7 1,335,032.9 1,348,370.6

COLIBAN WATER | CORPORATE PLAN 2020–2025 47 COMPREHENSIVE OPERATING STATEMENT 2020/21 QUARTERLY PHASING

2020/21 QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 PLAN PLAN PLAN PLAN PLAN $’000 $’000 $’000 $’000 $’000

REVENUE Service charges 74,339.9 18,560.9 18,644.3 18,525.9 18,608.8 Usage charges 55,457.8 9,266.9 14,353.1 19,352.7 12,485.1 Government funding 4,125.8 1,031.4 1,031.4 1,031.4 1,031.5 Developer contributions & gifted assets 7,218.7 1,831.3 1,831.3 1,770.5 1,785.7 New customer contributions 4,656.7 1,395.1 1,095.1 1,083.2 1,083.2 Net gain / (loss) on disposal of assets 0.0 0.0 0.0 0.0 0.0 Other income 1,955.4 490.8 490.8 486.9 486.9 Total revenue 147,754.4 32,576.5 37,446.1 42,250.6 35,481.2

EXPENSES Operating expenses 43,438.3 10,292.5 10,464.3 11,170.0 11,511.5 Administration expenses 11,910.6 2,867.7 3,178.1 2,741.9 3,123.0 Employee expenses 19,778.1 5,331.3 4,589.1 5,328.9 4,528.7 Expenditure of Government funding 4,165.8 1,041.4 1,041.4 1,041.4 1,041.4 Borrowing costs 19,800.2 5,100.8 5,004.5 4,903.9 4,791.1 Finance charges 4,807.3 1,239.9 1,215.3 1,188.9 1,163.2 Depreciation & amortisation 31,518.1 8,186.9 8,214.2 8,261.5 6,855.5 Environmental contribution 5,116.0 1,279.0 1,279.0 1,279.0 1,279.0 Total expenses 140,534.5 35,339.7 34,985.8 35,915.5 34,293.5

Net result before tax 7,219.9 (2,763.2) 2,460.3 6,335.1 1,187.7 Income tax expense (2,166.0) 829.0 (738.1) (1,900.5) (356.3) Net result / (deficit) for the year 5,053.9 (1,934.2) 1,722.2 4,434.6 831.4

OTHER COMPREHENSIVE INCOME Change in asset revaluation reserve 244,235.0 0.0 0.0 0.0 244,235.0 Income tax expense (104,672.1) 0.0 0.0 0.0 (104,672.1) Total other comprehensive income for the year 139,562.8 0.0 0.0 0.0 139,562.8 Comprehensive result 144,616.8 (1,934.2) 1,722.2 4,434.6 140,394.2

48 COLIBAN WATER | CORPORATE PLAN 2020–2025 CASH FLOW STATEMENT 2020/21 QUARTERLY PHASING

2020/21 QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 PLAN PLAN PLAN PLAN PLAN $’000 $’000 $’000 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES Services and usages charges 129,855.1 28,080.8 29,251.2 36,524.5 35,998.6 Other customer revenue 6,866.0 2,280.9 1,800.2 1,472.0 1,312.9 Receipts from Government 600.0 600.0 0.0 0.0 0.0 GST received from the ATO 8,690.1 133.5 (17.7) 16.4 8,558.0 Interest received 93.1 23.3 23.3 23.3 23.3 Total receipts 146,104.3 31,118.4 31,057.0 38,036.2 45,892.8

Payments to suppliers (55,897.0) (13,520.8) (13,574.1) (13,884.4) (14,917.7) Payments to employees (19,624.1) (4,996.1) (4,587.1) (5,272.8) (4,768.1) Payments to Government (4,165.8) (1,041.4) (1,041.4) (1,041.4) (1,041.4) GST paid to ATO (8,715.8) 0.0 0.0 0.0 (8,715.8) Interest and other costs of finance paid (24,818.9) (2,671.5) (9,969.4) (2,628.3) (9,549.6) Environmental contributions (5,116.0) (1,279.0) (1,279.0) (1,279.0) (1,279.0) Total payments (118,337.5) (23,508.8) (30,451.1) (24,106.0) (40,271.6)

Net cash (outflow) / inflow from operating activities 27,766.8 7,609.6 605.9 13,930.2 5,621.1

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for infrastructure assets, property, plant and equipment (28,860.7) (6,419.9) (6,971.7) (7,223.3) (8,245.8)

Payments for intangible assets (400.0) (100.0) (100.0) (100.0) (100.0) Proceeds from investments 296.2 74.0 74.0 74.0 74.0

Proceeds on disposal of infrastructure, property, plant and equipment 90.0 22.4 0.0 46.1 21.5

Net cash (outflow) / inflow from investing activities (28,874.6) (6,423.5) (6,997.7) (7,203.1) (8,250.2)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 0.0 0.0 7,000.0 (7,000.0) 0.0 Repayment of borrowings (4,000.0) 0.0 0.0 0.0 (4,000.0) Proceeds from contributions of owners 0.0 0.0 0.0 0.0 0.0 Repayment of finance lease liabilities (6,198.1) (1,503.9) (1,533.4) (1,565.7) (1,595.2) Net cash (outflow) / inflow from financing activities (10,198.1) (1,503.9) 5,466.6 (8,565.7) (5,595.2) Net increase / (decrease) in cash and cash equivalents (11,305.9) (317.8) (925.2) (1,838.6) (8,224.3) Cash and cash equivalents at the beginning of the financial year 18,599.0 18,599.0 0.0 0.0 0.0 Cash and cash equivalents at the end of the financial year 7,293.1 18,281.2 (925.2) (1,838.6) (8,224.3)

COLIBAN WATER | CORPORATE PLAN 2020–2025 49 BALANCE SHEET 2020/21 QUARTERLY PHASING

QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 PLAN PLAN PLAN PLAN $’000 $’000 $’000 $’000

CURRENT ASSETS Cash and cash equivalents 18,281.2 17,356.0 15,517.4 7,293.1 Receivables 22,424.9 25,901.5 27,264.1 22,817.4 Inventories 1,707.2 1,707.2 1,707.2 1,707.2 Prepayments 560.8 506.0 591.2 646.9 Total current assets 42,974.0 45,470.7 45,079.8 32,464.7

NON-CURRENT ASSETS Receivables 577.2 563.9 550.6 537.3 Infrastructure assets, property, plant and equipment 1,567,721.6 1,568,736.2 1,569,850.6 1,923,181.6 Intangible assets 63,722.4 63,396.6 63,068.4 62,738.5 Total non-current assets 1,632,021.1 1,632,696.7 1,633,469.6 1,986,457.4

TOTAL ASSETS 1,674,995.2 1,678,167.4 1,678,549.4 2,018,922.1

CURRENT LIABILITIES Payables 22,101.2 18,475.3 22,163.2 19,154.8 Unearned Income 4,957.7 3,937.2 2,916.6 2,012.1 Borrowings 4,000.0 29,000.0 22,000.0 4,000.0 Lease liabilities 446.1 449.4 452.8 456.2 Finance Leases - BOOT Schemes 6,321.2 6,444.9 6,570.7 6,699.2 Employee benefits 5,740.7 5,759.0 5,811.8 5,568.3 Total current liabilities 43,566.9 64,065.8 59,915.1 37,890.7

NON-CURRENT LIABILITIES Payables 0.0 0.0 0.0 136.9 Borrowings 368,831.6 350,831.6 350,831.6 364,831.6 Lease liabilities 4,139.2 4,025.5 3,911.4 3,796.4 Finance Leases - BOOT Schemes 56,894.9 55,237.9 53,546.3 51,822.7 Deferred tax liabilities 138,931.9 138,931.9 138,931.9 245,770.0 Employee benefits 755.6 739.3 742.6 746.7 Total non-current liabilities 569,553.2 549,766.2 547,963.8 667,104.2

TOTAL LIABILITIES 613,120.1 613,832.0 607,878.9 704,994.9

TOTAL NET ASSETS 1,061,875.1 1,064,335.4 1,070,670.5 1,313,927.2

EQUITY Contributed capital 304,025.1 304,025.1 304,025.1 304,025.1 Reserves 388,093.9 388,093.9 388,093.9 632,328.8 Accumulated funds 369,756.1 372,216.4 378,551.5 377,573.3 TOTAL EQUITY 1,061,875.1 1,064,335.4 1,070,670.5 1,313,927.2

50 COLIBAN WATER | CORPORATE PLAN 2020–2025 6. Statement of Prices and Tariffs

CUSTOMER PRICE IMPACTS

(AVERAGE BILL $ NOMINAL) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

CENTRAL RESIDENTIAL - 185KL Water Access 227 227 229 231 239 247 Water Variable (central) 415 414 418 421 436 452 Wastewater Access 684 682 688 694 718 743 Total Bill 1,326 1,323 1,334 1,346 1,393 1,442 Nominal change % -0.3% 0.9% 0.9% 3.5% 3.5%

NORTHERN RESIDENTIAL - 230KL Water Access 227 227 229 231 239 247 Water Variable (northern) 516 515 519 524 542 562 Wastewater Access 684 682 688 694 718 743 Total Bill 1,427 1,423 1,436 1,448 1,499 1,552 Nominal change % -0.3% 0.9% 0.9% 3.5% 3.5%

CENTRAL TENANT - 185KL Water Variable (central) 415 414 418 421 436 452 Total Bill 415 414 418 421 436 452 Nominal change % -0.3% 0.9% 0.9% 3.5% 3.5%

NORTHERN TENANT - 230KL Water Variable (northern) 516 515 519 524 542 562 Total Bill 516 515 519 524 542 562 Nominal change% -0.3% 0.9% 0.9% 3.5% 3.5%

CENTRAL AND NORTHERN NON-RESIDENTIAL - 300 KL Water Access 227 227 229 231 239 247 Water Variable (central) 674 672 678 683 708 732 Wastewater Access 684 682 688 694 718 743 Wastewater Variable (95% df) 54 53 54 54 56 58 Total Bill 1,638 1,634 1,648 1,662 1,721 1,781 Nominal change % -0.3% 0.9% 0.9% 3.5% 3.5%

*2023-24 price movements TBC

COLIBAN WATER | CORPORATE PLAN 2020–2025 51 SCHEDULE OF PRICES

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2020/21 2021/22 2022/23 2023/24 2024/25 TARIFF $ TARIFF $ EST $ EST $ EST $ EST $ TARIFF AND PRICE COMPONENT PPM % EST% EST% EST% EST% CPI 2.10% 2.50% 2.50% 2.50% 2.50% URBAN WATER CHARGES Water Volume Charges (per kL) Central District -2.33% -1.59% -1.59% 1.00% 1.00% 2.2452 2.2389 2.2584 2.2780 2.3583 2.4415 Northern District -2.33% -1.59% -1.59% 1.00% 1.00% 2.2452 2.2389 2.2584 2.2780 2.3583 2.4415 Untreated -2.33% -1.59% -1.59% 1.00% 1.00% 1.1226 1.1195 1.1292 1.1390 1.1792 1.2207 URBAN WATER ACCESS FEES 0 & 20 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 227.47 226.83 228.81 230.80 238.93 247.35 25 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 355.42 354.42 357.51 360.62 373.33 386.49 32 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 582.33 580.70 585.75 590.85 611.67 633.23 40 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 909.90 907.35 915.24 923.21 955.75 989.44 50 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 1,421.72 1,417.74 1,430.07 1,442.51 1,493.36 1,546.00 80 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 3,639.61 3,629.41 3,660.99 3,692.84 3,823.01 3,957.77 100 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 5,686.89 5,670.95 5,720.29 5,770.06 5,973.45 6,184.01 150 mm + Meter -2.33% -1.59% -1.59% 1.00% 1.00% 12,795.51 12,759.65 12,870.66 12,982.63 13,440.27 13,914.04 FIRE SERVICES ACCESS FEES 32 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 54.46 54.31 54.78 55.26 57.20 59.22 40 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 81.71 81.48 82.19 82.90 85.83 88.85 50 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 117.41 117.08 118.10 119.13 123.33 127.67 80 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 280.68 279.89 282.33 284.78 294.82 305.22 100 mm Meter -2.33% -1.59% -1.59% 1.00% 1.00% 438.59 437.36 441.17 445.00 460.69 476.93 150 mm + Meter -2.33% -1.59% -1.59% 1.00% 1.00% 921.69 919.11 927.10 935.17 968.13 1,002.26 URBAN WASTEWATER CHARGES Wastewater Access Fee -2.33% -1.59% -1.59% 1.00% 1.00% 683.56 681.64 687.57 693.56 718.00 743.31 Wastewater Volume - NonRes (per kL) -2.33% -1.59% -1.59% 1.00% 1.00% 0.9743 0.9716 0.9800 0.9885 1.0234 1.0595 URBAN RECYCLED WATER CHARGES 20mm or less: $0 from 2018-19 Recycled Water Access -2.33% -1.59% -1.59% 1.00% 1.00% Greater than 20mm: 50% Urban Water Access Fee Recycled Water Variable -2.33% -1.59% -1.59% 1.00% 1.00% 1.6839 1.6792 1.6938 1.7085 1.7688 1.8311 RURAL CHARGES Unmodernised Rural Supply Access Fees (per annum) Pipeline -2.33% -1.59% -1.59% 1.00% 1.00% 852.25 849.86 857.26 864.71 895.19 926.75 Channel -2.33% -1.59% -1.59% 1.00% 1.00% 478.97 477.63 481.78 485.97 503.11 520.84 Channel - Single Shared outlet -2.33% -1.59% -1.59% 1.00% 1.00% 383.17 382.10 385.42 388.77 402.48 416.67 Storage Access -2.33% -1.59% -1.59% 1.00% 1.00% 106.19 105.89 106.81 107.74 111.54 115.47 Infrastructure Charge -2.33% -1.59% -1.59% 1.00% 1.00% 164.92 164.46 165.89 167.33 173.23 179.34 Volume Charge -2.33% -1.59% -1.59% 1.00% 1.00% 260.33 259.60 261.86 264.14 273.45 283.09 Outlet Charges (per outlet) 2+ outlets -2.33% -1.59% -1.59% 1.00% 1.00% 27.38 27.30 27.54 27.78 28.76 29.77 Modernised Rural Supply Access Fees – Pipeline (per annum) As per Urban Water Access Charges Volume Charge -2.33% -1.59% -1.59% 1.00% 1.00% 260.33 259.60 261.86 264.14 273.45 283.09 Infrastructure Charge – network -2.33% -1.59% -1.59% 1.00% 1.00% 222.96 222.34 224.27 226.22 234.19 242.45 Infrastructure Charge – headwork -2.33% -1.59% -1.59% 1.00% 1.00% 24.77 24.70 24.92 25.13 26.02 26.94 Termination fees -2.33% -1.59% -1.59% 1.00% 1.00% 2,229.60 2,223.35 2,242.69 2,262.21 2,341.95 2,424.50 General Rural Fees Excess Usage -2.33% -1.59% -1.59% 1.00% 1.00% 3,241.05 3,231.97 3,260.08 3,288.45 3,404.37 3,524.37 MAJOR TRADE WASTE CHARGES Access Fee (per annum) In accordance with pricing principles Volume Charge (per kL) -1.20% -1.20% -1.20% 1.00% 1.00% 0.9743 0.9828 0.9953 1.0079 1.0435 1.0803 Quality Parameters (per kg) COD -1.20% -1.20% -1.20% 1.00% 1.00% 0.3861 0.3895 0.3944 0.3994 0.4135 0.4281 SS -1.20% -1.20% -1.20% 1.00% 1.00% 0.8247 0.8319 0.8425 0.8532 0.8833 0.9144 TKN -1.20% -1.20% -1.20% 1.00% 1.00% 1.6368 1.6511 1.6721 1.6933 1.7530 1.8148 P -1.20% -1.20% -1.20% 1.00% 1.00% 3.1643 3.1920 3.2325 3.2736 3.3890 3.5084 TDS -1.20% -1.20% -1.20% 1.00% 1.00% 0.0247 0.0249 0.0252 0.0256 0.0265 0.0274 Minor Trade Waste -1.20% -1.20% -1.20% 1.00% 1.00% 155.78 157.1428 159.1385 161.1595 166.8404 172.7215 NEW CUSTOMER CONTRIBUTIONS (PER LOT) Water Growth Area 0.00% 0.00% 0.00% 1.00% 1.00% 1,648.09 1,682.70 1,724.77 1,767.89 1,830.20 1,894.72 Low Growth Area 0.00% 0.00% 0.00% 1.00% 1.00% 1,318.47 1,346.16 1,379.81 1,414.31 1,464.16 1,515.77 Sewer Growth Area 0.00% 0.00% 0.00% 1.00% 1.00% 1,648.09 1,682.70 1,724.77 1,767.89 1,830.20 1,894.72 Low Growth Area 0.00% 0.00% 0.00% 1.00% 1.00% 1,318.47 1,346.16 1,379.81 1,414.31 1,464.16 1,515.77 Recycled water 0.00% 0.00% 0.00% 1.00% 1.00% 824.04 841.34 862.38 883.94 915.10 947.35 CORE MISCELLANEOUS SERVICES Project Management Fee (per project) -1.20% -1.20% -1.20% 1.00% 1.00% 691.21 697.26 706.11 715.08 740.29 766.38 Project Management Fee (per lot) -1.20% -1.20% -1.20% 1.00% 1.00% 92.41 93.22 94.40 95.60 98.97 102.46 Water & Sewer Plan Amendment Fee -1.20% -1.20% -1.20% 1.00% 1.00% 74.34 74.99 75.94 76.91 79.62 82.42 Property Connection Application -1.20% -1.20% -1.20% 1.00% 1.00% 74.34 74.99 75.94 76.91 79.62 82.42 Special Meter Reading Fee -1.20% -1.20% -1.20% 1.00% 1.00% 19.27 19.44 19.69 19.94 20.64 21.37 Information Statement -1.20% -1.20% -1.20% 1.00% 1.00% 28.95 29.20 29.57 29.95 31.01 32.10 NON CORE MISCELLANEOUS SERVICES All other miscellaneous charges Actual cost recovery (+GST where applicable)

52 COLIBAN WATER | CORPORATE PLAN 2020–2025 This photo was taken prior to coronavirus (COVID-19) restrictions and requirements of physical distancing and face coverings.

COLIBAN WATER | CORPORATE PLAN 2020–2025 53 CONTACT US

TELEPHONE: 1300 363 200 General and billing enquiries and 24-hour faults and leaks. Telephone calls are recorded for training and compliance purposes. EMAIL: [email protected] ONLINE: coliban.com.au

OFFICE ADDRESS 37-45 Bridge Street Bendigo VIC 3550. Business hours 8am to 5pm.

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INTERPRETER SERVICE If you require assistance in a language other than English, we provide a free interpreter service. Contact the Translating and Interpreter Service (TIS) on 13 14 50 for assistance.

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Disclaimer: Information contained in this document was correct at the time of publication (September 2020). Coliban Water reserves the right to alter information at any time. © State of Victoria, Coliban Region Water Corporation 2020. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. CC_0109020

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