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Annual Report 2005/06 OUR MISSION

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Annual Report 2005/06 OUR MISSION goulburn-murray water annual report 2005/06 OUR MISSION To deliver sustainable water services that meet customer and stakeholder needs and support regional economic growth, while balancing social, economic and environmental considerations. OUR VALUES Human safety, the environment and customer service are our highest priorities Sustainability is our commitment to future generations Cooperation based on the involvement of people is the key to progress Openness builds trust, knowledge and understanding Integrity, respect and pride are valued characteristics of our people Continual improvement is essential and underpins our future Contents OUR PERFORMANCE AT A GLANCE - 2005/06 4 GOVERNANCE 9 ECONOMIC SUSTAINABILITY 13 SOCIAL SUSTAINABILITY 25 ENVIRONMENTAL SUSTAINABILITY 39 FINANCIAL STATEMENTS 59 GOULBURN-MURRA APPENDICES 83 Y W A TER Annual Repor t 2005/06 1 Report from the Chairperson scheme (which won the prestigious media reports the excellent work of National Salinity prize and diverts our farmers as they increase water use 22,000 tonnes of salt from the Murray efficiency. Our new information each year), are either finished or caravan, ‘Water Wheels’, now informs nearing completion. both our customers and the public of these changes. The new Water Storage Amenity Unit and our revised approach to leasing We accept our responsibilities to and maintenance of recreation and support regional development and will public use assets have won great use the reconfiguration plans already support from local government and piloted in the Pyramid-Boort irrigation local communities. Essentially, our area as a model in all irrigation policy is to offer longer leases and districts to allow a clear vision to security in return for more investment emerge in each community about the This Board is now in the last year of its by business owners to enhance the future of water use and associated three-year appointment and it is timely appearance and customer satisfaction land zoning and channel maintenance. to use this report as a reflection on of the many parks and buildings on Communities will be encouraged to where we have come from and where dam foreshores. Together with private engage at every level with these further work is needed. industry, we were pleased to support reconfiguration plans across our the Eildon boat ramp in conjunction entire system. In the first year we concentrated on with the highly successful Eildon Dam pricing, introducing the Regulatory upgrade, which was opened by Our customers face many challenges. Asset Base approach and the internal Victorian Premier Steve Bracks in This year we had our first period of productivity review aimed at reducing October 2005. The boat ramp leaves a regulation by the Essential Services our costs to the lowest responsible lasting legacy to boat users Commission and we will need to level while maintaining our delivery throughout Victoria, well positioned ensure that we adapt our pricing capacity in the system. beside a principal dam. Both structures process to obtain the most benefit from this new policing body. Water During this last year our new Chief will now serve all Victorians well into reform and regulation will increase Executive, Russell Cooper, has been this century. and the community is expecting even active, pursuing Board goals of cost Issues in other areas such as Eppalock greater care for the environment than reduction and introducing the new and Nagambie’s Chinaman’s Bridge we currently achieve. Commodity Advanced Maintenance Program as Caravan Park have been addressed prices continue to be affected by well as attending a large number of with long-term planning and we are events outside our control. Climate Water Services Committee meetings. excited by the prospect of a new, change has moved to the centre of He has thus gained a greater privately funded caravan park at our customer and Board understanding of our diverse business Nagambie by the end of 2006. considerations. as well as met many irrigators. This TER A wide customer contact has been well Throughout this time we have had The Board sees itself as both a Y W received by our stakeholders. great success improving our practical reflection of customer relationships within our region at local concerns as told to us by our active The Board has placed a lot of shire level and with our customers, as Water Services Committees and a emphasis on successful project well as our partners in the Department conduit to bring the best investment management and, consequently, work of Sustainability and Environment, and and government assistance to help our is progressing on Total Channel State and Federal Governments, customers achieve profits. We will Control in association with Rubicon GOULBURN-MURRA catchment management authorities continue to work on all these fronts where major advancements in and peak industry bodies such as the for the next year. accuracy of water flow and metering VFF. have been demanded. In the long term this will move all our system into The entire community is vitally t 2005/06 the age of automated delivery our interested in irrigation and water farmers expect. Other projects, such as reform. We are concentrating on Don Cummins the Waranga Western Channel assisting our customers understand CHAIRPERSON upgrade, the Tungamah Pipeline and the various changing rules associated the Pyramid Creek Salt Interception Annual Repor with this reform while ensuring the 2 Report from the Chief Executive TCC equipment have been progressed highlight of the year, with the project with Goulburn-Murray Water completed $4.5 million under budget providing strong leadership with the and earlier than expected. expectations sought. We now have renewed confidence that TCC will play The Tungamah water savings project, a significant role in future water which involves the replacement of savings projects, but concurrent earthen channels with pipes and projects, including the lining of pumps, is well underway at the close channels and the replacement of of the year. This $20 million project is channels with dedicated pipelines, also expected to be completed well are also being advanced. ahead of time and under budget and it forms a vital plank in the Mokoan The resource shift of rural water to Return to Wetlands project. urban water became a reality when This report covers my first year as solutions for Bendigo’s water needs My vision for the future is to lead Chief Executive and marks another became a major issue during the year. Goulburn-Murray Water into a regime challenging but exciting year for With funding for a Coliban pipeline of ‘Continuous Improvement’ in all Goulburn-Murray Water. Throughout from Waranga Western Channel to things we do and being ever mindful this period I have spent considerable Eppalock now locked in, the challenge of the important role entrusted to us time working closely with the Board, in 2006/07 will be to finalise the as managers of nearly 70% of our customers and our stakeholders to agreed terms of this water transfer Victoria’s water resources. Bringing ensure that we understand the needs between all the parties involved. about cost effective water savings of customers and communities, and strategies will form a vital link in this continually seek to improve our Despite low allocations in the Continuous Improvement culture efficiency while responsibly managing Campaspe system, which has created whilst pressing for ever further a resource that is under increasing significant financial challenges for our reductions in lost time injuries of all pressure. I am pleased with the Campaspe customers, the return of employees and contractors. working relationships we have sales allocation in the Murray system developed and believe we are well contributed to an improved overall placed for managing the challenges financial result. Combined with a ahead of us. capital contribution towards the closure of the Cobram town The continuation of drought channel, this helped to return conditions has created both difficulties a net profit of $5.9 million for and significant hardships across our Goulburn-Murray Water for the year. rural irrigator customer base. In the Russell Cooper case of the Campaspe Irrigation The transition from a renewals annuity CHIEF EXECUTIVE GOULBURN-MURRA District, we have responded to the pricing basis to a regulated asset base, concerns of irrigators with financial coupled with the first Water Plan for adjustment arrangements to ease review by the Essential Services their burden. Commission (ESC), created a significant resource load on the Water savings has become a focal organisation. The challenge for future Y W point within Goulburn-Murray Water price reviews by the ESC will be to A and there has been much attention strive for the required level of balance TER directed towards Total Channel between consultation with the Control (TCC) as the panacea for regulator whilst ensuring the valuable Annual Repor producing water savings that can be work of Water Services Committees in returned to the environment. The developing the price/service trade-offs equipment supplied has caused is not diminished. disappointment and challenges for many in the Central Goulburn area. The completion of the $52.5 million t 2005/06 Issues to do with quality control of Eildon dam wall upgrade project was a 3 Our Performance at a glance - 2005/06 Governance Economic Sustainability Objective The Board aims to continuously We will actively pursue new and We will contribute to Government improve its governance practices and improved ways to operate our water reforms, developing and strive to achieve high levels of business to achieve the most cost adapting the appropriate assets, transparency, trust and stewardship. effective total water system technology and systems that meet management whilst meeting all our the future needs of our customers (statutory financial and customer) and communities and enable obligations. regional growth. Highlights The Board developed a whole-of- We undertook an independent We completed the $52.5m project to business risk management review of our cost base, which upgrade Eildon dam, which was framework.
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