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Annual Report 2018 ANNUAL REPORT 2017-18 Hunter Water 01 July 2017 - 30 June 2018 Acknowledgement of Country Hunter Water operates across the traditional country of the Awabakal, Birpai, Darkinjung, Wonaruah and Worimi peoples. We recognise and respect their cultural heritage, beliefs and continuing relationship with the land, and acknowledge and pay respect to Elders past, present and future. ABOUT THIS REPORT The Annual Report 2017-18 provides an overview of Hunter Water’s activities and performance for the period 1 July 2017 to 30 June 2018. It includes our Vision and Purpose, highlights from the year, financial reports, statistical information and the activities of former subsidiary company, Hunter Water Australia Proprietary Limited (HWA), of which the assets were divested in December 2014. Until HWA has been liquidated and deregistered, there remains a legislative obligation under the Annual Reports (Statutory Bodies) Act 1984 (NSW) for the financial statements to be reported each year. Past annual reports can be found at hunterwater.com.au/annualreport. We welcome feedback on this report. Please email [email protected] or write to: Public Affairs | Hunter Water | PO Box 5171 | HRMC NSW 2310 LETTER OF SUBMISSION The Hon. Dominic Perrottet MP Treasurer and Minister for Industrial Relations Member for Hawkesbury 52 Martin Place SYDNEY NSW 2000 The Hon. Victor Dominello MP Minister for Finance, Services and Property Member for Ryde 52 Martin Place SYDNEY NSW 2000 Dear Treasurer and Minister Dominello We are pleased to submit the Annual Report of Hunter Water Corporation (Hunter Water) for the financial year ended 30 June 2018 for presentation to the Parliament of New South Wales. Our Annual Report 2017-18 was prepared in accordance with section 24A of the State Owned Corporations Act 1989 and the Annual Reports (Statutory Bodies) Act 1984. The financial statements for 2017-18, which form part of the full report, have been submitted to and certified by the Auditor-General of New South Wales. Yours sincerely Terry Lawler AO Jim Bentley Chairman Managing Director 2 hunterwater.com.au THANK YOU FOR LOVING WATER WITH US Over the past year, I have had the privilege of visiting the Lower Hunter several times. I’m proud to be the Portfolio Minister of Hunter Water, working together to drive important initiatives around water conservation and efficiency. This work includes the campaign which aims to increase awareness of the community’s water use and learn ways to conserve our most precious resource. I am also encouraged by the progress Hunter Water is making in reducing leakage across its network and the part Hunter Water is playing to save water. These conservation and efficiency measures will help improve future sustainability and the resilience of the Lower Hunter’s water supply. I’m excited about the direction Hunter Water is heading in. The Hon. Don Harwin MLC Minister for Resources Minister for Energy and Utilities Minister for the Arts Vice-President of the Executive Council Leader of the Government in the Legislative Council 3 ANNUAL REPORT CONTENTS ABOUT US 5 A MESSAGE FROM OUR CHAIRMAN AND MANAGING DIRECTOR 6 LOVE WATER 8 DELIVERING THE ASPIRATIONS OF OUR REGION 10 SUSTAINABLE DEVELOPMENT GOALS 11 OUR STRATEGIC PRIORITIES 12 CORPORATE PROFILE, STRUCTURE AND GOVERNANCE 40 FINANCIAL STATEMENTS AND STATISTICAL INFORMATION 44 ADDITIONAL INFORMATION 94 HUNTER WATER AUSTRALIA FINANCIAL STATEMENTS 125 CONTACT 142 TIMELINE 26 FINANCIALS 28 HUNTER WATER AUSTRALIA 30 CONTACT 32 4 hunterwater.com.au ABOUT US We aspire to being valued by our partners for the part we play in delivering the aspirations for our region. We are working to enable sustainable growth, and the life our communities desire, with high quality, affordable services. As a State Owned Corporation (SOC) Hunter Water provides drinking water, wastewater, recycled water and some stormwater services to a population of almost 600,000 people in homes and businesses across the Lower Hunter. Hunter Water was the first SOC to be proclaimed within New South Wales pursuant to the State Owned Corporations Act 1989. We are proud of our humble beginnings, starting in the 1880s when water was first delivered to Newcastle from a temporary pumping station on the Hunter River at Oakhampton to Newcastle No 1 Reservoir. Like our region, we have grown considerably since then, and we are constantly looking for new ways to provide great services, enable good development and be a thought leader. We are committed to being a great employer that operates in an efficient and productive manner, enhancing the wellbeing of our employees. The safety of Hunter Water’s drinking water is our priority and is confirmed through an extensive monitoring programme. We have 68 sampling locations across our drinking water network and routinely test for a wide range of physical, chemical and biological characteristics at all stages of the supply system. Our employees help deliver the life our communities desire, working closely with contractors, stakeholders and the community to manage an asset base of more than $2.5 billion worth of water, wastewater and recycled water infrastructure. Together we are building our water resilience capabilities and ensuring a sustainable water future for the Lower Hunter. 459 126 20,793 1 FULL TIME EQUIVALENT YEARS WATER QUALITY NATIONALLY STAFF WORKING FOR OF LOCAL TESTS IN THE RECOGNISED STATE OUR COMMUNITY ACHIEVEMENTS LABORATORY HERITAGE SITE 78 water 5,115 km RESERVOIRS SEWER MAINS Storing water throughout our network Transporting sewage to our treatment works 5,080 km 441 wastewater WATER MAINS PUMP STATIONS Transporting water to people in the region Taking wastewater to our treatment plants 72,522 million litres 276,685 million SUPPLIED LITRES In 12 months to 19 April 2018 Total capacity of Hunter Water’s storages HUNTER WATER ANNUAL REPORT 2017-18 5 3 A MESSAGE FROM OUR CHAIRMAN & MANAGING DIRECTOR Dr Jim Bentley, Managing Director and Terry Lawler AO, Chairman “Metropolitan cities succeed and perform best integrated water conservation based around when all tiers of government collaborate and learning together to challenge preconceptions work together with business, industry and the about water usage and to promote sustainability. community to deliver a shared vision.” Love Water themes have been integrated within - Greater Newcastle Metropolitan Plan 2018 our expanded schools programme and have supported the launch of additional communication With record investment, the Lower Hunter, from channels, with Hunter Water branching into social the coal fields to the coast, is undergoing a media platforms that are used by our customers, substantial transformation. Private investment such as Facebook, Instagram, YouTube and LinkedIn. has been inspired by confidence-building public investment in infrastructure and services, leading Collaboration with our partners was also a focus to significant opportunities to improve the of 2017-18. In March 2018, we joined Lake liveability of our cities and suburbs. Macquarie Mayor Cr Kay Fraser and Chief Executive Morven Cameron, to sign a historic Partnership As evidence of this transformation, Hunter Agreement. As partners, we have been exploring Water assessed a record 2,208 development opportunities to share resources and information applications in the 2017-18 financial year. With to deliver key infrastructure projects and services a continued focus on delivering high quality more efficiently. This improved relationship services, Hunter Water decreased the average will deliver dividends in years to come, further processing time for these applications from 23 helping to improve the experience of our shared days in August 2017 to 9.1 days in June 2018. In customers and ratepayers. 2017-18, we implemented a new Certification of Developer Works Scheme, which has provided the The 2017-18 financial year has not been without development community with greater autonomy its challenges, with unusually dry conditions, and in the delivery of low risk works, and we are in the latter part, the commencement of a period currently in the late stages of piloting a new online of declared drought across the Hunter region. system to receive and process development We were extremely encouraged by the positive applications, further increasing efficiencies and response we received from our communities to reducing unnecessary delays for the development the support we provided to those experiencing sector. These improvements are just one element hardship due to the dry conditions. From support of our renewed customer service focus. for the endangered egrets at Hunter Wetlands Centre at the end of summer, through to delivering Leveraging strong collaborative partnerships will more than one million litres of water to the farmers be fundamental to the growth transition of our of the Upper Hunter in the new financial year, we region. Across the last 12 months, Hunter Water have stood alongside our communities to provide has built strong collaborative relationships with assistance and support. industry, government, academia, partner councils and, most importantly, our communities. Financially, Hunter Water exceeded forecasts with a net profit after tax of $55.7 million (up from Working with our communities, Hunter Water $54.7 million in 2016-17). The increase in income launched its Love Water campaign in December was primarily due to an increase in water usage 2017. Love Water is an innovative approach to charges ($145.0 million, up from $127.4 million in 6 hunterwater.com.au
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