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2010-11 Annual Report 20 October 2011

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2010-11 Annual Report 20 October 2011 2010-11 annual report 20 October 2011 Reference: HW2011-1352 Telephone: 1300 657 657 Facsimile: 02 4949 9414 The Hon Gregory Stephen Pearce, MLC The Hon Michael Bruce Baird, MP Minister for Finance and Services Treasurer Minister for the Illawarra Parliament House Parliament House Macquarie Street Macquarie Street Sydney NSW 2000 Sydney NSW 2000 Dear Minister and Treasurer, We have pleasure in submitting the Hunter Water Corporation 2010-11 Annual Report for the financial year ended 30 June 2011, for presentation to the Parliament of New South Wales in accordance with the Annual Reports (Departments) Act 1985. The 2010-11 Annual Report provides an overview of our key performance and highlights, as well as the consolidated financial statements for Hunter Water Corporation, including our subsidiary company Hunter Water Australia. Key features of this report include highlights of our dynamic performance culture and commitment to operational excellence. Hunter Water will make the 2010-11 Annual Report available electronically at www.hunterwater.com.au following acceptance of this report in the Parliament of New South Wales. Yours sincerely, Dean Taylor Ron Robson Acting Managing Director Chairman contents year in review 2 our organisation 3 MD and Chairman’s report 4 corporate governance 5 regulatory framework 7 our board 8 organisational structure 10 general management report 11 customers 12 environment 16 operational excellence 19 performance culture 22 financial statements 25 statistical information 77 Hunter Water Australia 108 Hunter Water Australia financial statements 110 about this report This report outlines Hunter Water’s open and collaborative activities and performance from We are committed to being open and 1 July 2010 - 30 June 2011. collaborative. This Annual Report is an example of how we seek to be It covers highlights from the year, as transparent in our decision making and well as reports from our Board and operations. General Management Team. This report and others can be found We have provided our financial at www.hunterwater.com.au or by reports, further statistical calling 1300 657 657. information and performance against regulatory frameworks. We also report on the activities of our subsidiary Hunter Water Australia. 1 year in review operations at a glance • 227,695 properties connected to • 4,730 kilometres of sewermains • 135,009 customer contact centre the water network telephone calls answered • 287,515 megalitres capacity • 215,748 properties connected to of raw water sources • 240,332 visitors to our website the wastewater network • 123 water pump stations • 481 employees • 67,100 megalitres of water supplied • 418 wastewater pump stations • $199 million spent on capital works infrastructure projects. • 4,674 megalitres of recycled • 5 water treatment plants water supplied • 18 wastewater treatment works • 4,898 kilometres of watermains financial highlights • Total revenue was $253 million • Net profit before tax was • Net borrowings were $821 million $32 million at the end of 2010-11 • Operating expenditure was $102 million • Total assets at the end of 2010-11 • Net cash flows from operating were valued at $3,537 million activities were $70 million during 2010-11. 2 our organisation about hunter water our people environmental stewardship, our record of leadership in water industry reform Over 480 people worked at Hunter who we are and the individual and collective Water during the 2010-11 year contribution and achievements of our Hunter Water is a State-owned to deliver great results for the staff and partners. Corporation providing water and communities of the lower Hunter. wastewater services to over half a Our staff worked side by side with regulation million people in the lower Hunter contractors, alliance members, region. There are 227,695 properties stakeholders and the community to The framework for our business connected to the water network and ensure a sustainable water future for operations comes from two key 215,748 to the wastewater network. our region. instruments. Our total assets are valued at The first is the NSW Government’s our history approximately $3.5 billion. regulatory framework for metropolitan The Hunter Water that exists today water utilities, which protects 2 Our area of operation covers 5,366km has had a long and rich history from its consumers and the environment with a population of 560,603 in the humble beginnings in the 1880s when through a set of licences and other local government areas of Cessnock, water was first delivered to Newcastle controls. Lake Macquarie, Maitland, Newcastle, from a temporary pumping station on The second is the Statement of Port Stephens, Dungog and small the Hunter River at Oakhampton. parts of Singleton. Corporate Intent (SCI), which sets out The constitution of the first Board was the strategic objectives and business We deliver an average 184 megalitres approved in 1892 and New South performance targets that are agreed (one megalitre equals 1 million Wales’ second water authority was to with the shareholders, the NSW litres) of water per day. Our raw born. We are governed under the Government. water sources are Grahamstown State Owned Corporations Act 1989 These objectives and business Dam (190,000 megalitre capacity), and in 1992 the Hunter District Water performance targets are incorporated Chichester Dam (21,500 megalitres), Board was corporatised under the in our Strategic Business Plan, Tomago Sandbeds (60,000 megalitres) Hunter Water Act 1991 and began which focuses on four key areas of and Anna Bay Sandbeds (16,000 trading as it is known today – Hunter customers, environment, operational megalitres). Water Corporation. excellence and performance culture to We collect, treat and deliver drinking We are proud of our long history of provide clear direction for our future. water to our customers and then service to the local community, our transport, treat and dispose of the region’s wastewater. Our water consistently meets quality guidelines for drinking water set by the National Health and Medical Research Council. Our vision is to be the leader in sustainable water services and utility solutions for our customers. This is achieved through the hard work of dedicated and highly capable people striving to deliver superior customer service while enhancing the environment through operational excellence. 3 MD and Chairman’s report Directorate of NSW Department of In just two years, we have also Finances and Services in collaboration implemented a series of greenhouse with Hunter Water. gas abatement projects that have resulted in greenhouse gas emissions The plan is looking at solutions that reductions of almost 3,000 tonnes, can help our region meet the needs or about 55 million black balloons of of a growing population and make it emissions. resilient to drought. Our collaborative approach will ensure that whatever the Through our Community Funding outcome, it will be the best solution for Program we continued to support the lower Hunter community. lower Hunter community groups in a range of environmental and social In May, the Hunter Treatment initiatives. This year our fundraising Alliance celebrated two years of efforts in conjunction with Newcastle’s > Ron Robson and Dean Taylor successful wastewater treatment Honeysuckle Business Precinct upgrade projects. Significant raised an incredible $55,000 for the The underlying theme across our milestones so far for the program Leukaemia Foundation’s World’s operations in 2010-11 has been include commissioning the $43 Greatest Shave, making us the second working with our stakeholders, million Burwood Beach Wastewater highest fundraiser in NSW and among customers and the community as one Treatment Works (WWTW) Stage the top 10 fundraisers nationally. team. 2 upgrade, and the Paxton and Branxton WWTWs, which are the Our people are our most important This year we successfully launched first plants in the region to use asset – without them, achievement our new Customer Contract, cutting edge membrane bioreactor of our business goals would not be following a periodic review by the technology. possible. In 2010-11 we continued our Independent Pricing and Regulatory focus on fostering a high performance Tribunal (IPART) in consultation with This is the first time Hunter Water has business culture in which our people Hunter Water, our customers and key implemented an alliance model to are motivated, achievement focused stakeholders. The new contract came deliver a suite of complex projects, and work collaboratively as one team. into effect on 1 July 2011 and includes ensuring faster project delivery and With our continued focus on zero an innovative new rebate policy to standardisation across multiple harm we are achieving great outcomes support customers in hardship. related projects. The knowledge and in safety and this year we saw a 40 experience gained from the Alliance per cent reduction in field staff manual Our commitment to working in program will be applied to our future handling injuries. partnership with major developers projects. and customers has continued to be By working with our customers, a key focus over the past 12 months. This year a partnership with Ausgrid stakeholders and community we will Introducing account managers for to install key water and power continue to ensure we deliver the best our major customers has enabled infrastructure at the same time has outcomes for both Hunter Water and us to be proactive in understanding helped reduce disruptions for the our community. and responding to the issues and local community. The partnership, challenges impacting development which developed from stakeholder projects and the industry as a whole. consultation with local utilities and Dean Taylor local government, is a first for Hunter Acting Managing Director More than 100 regional developers, Water and Ausgrid. major customers and development and planning industry identities In the pursuit of sustainability we Ron Robson recently took the opportunity to finalised our Catchment Management Chairman exchange ideas and information with Plan, which sets clear priorities for us at our annual Developer Forum.
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