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Saskwater Annual Report 2019-20

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Saskwater Annual Report 2019-20 Annual Report 2019-20 TABLE OF CONTENTS About SaskWater 1 Corporate Profile 2 Value Proposition 3 Financial and Operating Highlights 4 Letter of Transmittal 6 Minister’s Message 6 Year at a Glance 8 Letters to Stakeholders 12 Management Discussion and Analysis 14 Core Lines of Business 16 Strategic Plan and Balanced Scorecard 22 Customer Driven 24 Pursuing Excellence 28 Valuing Employees 34 Suceeding Financially 38 • 2019-20 Financial Results 38 ABOUT • Risk Management 43 • Management’s Report on Internal SASKWATER Control over Financial Reporting 48 SaskWater is Saskatchewan’s commercial Crown water In addition, SaskWater remotely monitors facilities for • Independent Auditor’s Report 49 utility, helping communities, First Nations and industry four communities and provides operator training to • Financial Statements and Notes 50 gain access to reliable and professional water and 29 Saskatchewan First Nations. wastewater services. Setting Our Course 72 SaskWater’s services directly and indirectly reach The history of SaskWater goes back to 1966, when we approximately 107,000 people in Saskatchewan. Corporate Social Responsibility at SaskWater 72 began operations as the Saskatchewan Water Supply In order to provide these services, SaskWater owns • Economic Prosperity 72 Board. The head office was relocated from Regina to 10 water treatment plants, three wastewater facilities, Watrous in 1977, and in 1984, the Saskatchewan Water • Social Responsibility 74 including 15 kilometres of wastewater forcemain, Corporation was created with its head office in Moose 140 kilometres of canal and 942 kilometres of potable • Environmental Stewardship 76 Jaw. All the personnel and property of the former and non-potable water pipeline. SaskWater also owns Board were transferred to the new corporation. In Corporate Governance 78 or leases 43 booster and pump stations. 2002, SaskWater received a new mandate to operate Board of Directors 82 exclusively as a commercial water utility. Supporting economic growth and the people of Saskatchewan has always been at the core of Corporate Governance Statement 84 SaskWater provides professional water and SaskWater’s purpose. As Saskatchewan’s communities wastewater services to 66 communities, 10 rural Executive 94 and industries grow with the province’s expanding municipalities, 79 rural pipeline groups, 17 industrial and economy, SaskWater works hard to supply its Corporate Directory 95 243 commercial and domestic end-user customers. customers with the infrastructure, customer service and water resources they need to prosper. 1 CORPORATE SASKWATER’S PROFILE VALUE PROPOSITION SaskWater is committed to providing the TO ITS CUSTOMERS highest level of service to its customers. That • SaskWater employees hold diverse levels of certification for water promise is reflected in the corporation’s vision, and wastewater systems, allowing for early problem diagnosis and mission and values. troubleshooting. • SaskWater’s knowledge of Saskatchewan’s regulatory requirements and our operational expertise allow customers to focus on their core business Vision while we ensure permit requirements and quality standards are met. • We are the best at connecting water for life and growth, partnering for a • SaskWater’s remote monitoring system provides customers with the safety better tomorrow. and security of having their facilities monitored 24 hours a day by trained operations personnel. Mission • SaskWater’s engineering team provides flexible solutions and project • To provide safe, reliable and sustainable water and wastewater services management services to meet the unique needs of customers from for Saskatchewan. concept through to construction. • SaskWater has the ability to invest in water and wastewater systems and Values our integrated asset management program ensures timely investment in existing assets. This allows customers to invest their dollars in other areas • INTEGRITY – We act ethically with respect, honesty, courtesy and fairness. beneficial to their business or community. • PROFESSIONALISM – We provide quality, expertise and excellence in the • SaskWater provides grant application support, enhancing our customers’ delivery of our services, and we are accountable for our actions. ability to access capital funding and municipal grants. • TEAMWORK – We promote co-operation and commitment to achieve our • SaskWater utilizes established knowledge and innovation exchange common goals. networks and is committed to adopting innovative ideas and technologies. • SAFETY – We are committed to safety in all aspects of our operations. • As a provincial Crown utility, SaskWater has strong working relationships • INNOVATION – We pursue continuous improvement and innovative with regulatory and other government agencies, consultants and solutions. contractors that enable access to best practices. • ENVIRONMENT – We respect and support the environment and • SaskWater’s existing, well-maintained infrastructure allows for efficient communities where we live and work. and cost-effective regional solutions. • SaskWater’s Community Investment program supports Saskatchewan SaskWater has defined four strategic goals to guide the corporation: communities through sponsorships and donations. CUSTOMER DRIVEN, PURSUING EXCELLENCE, VALUING EMPLOYEES and SUCCEEDING FINANCIALLY. Our 2019–20 Annual Report provides details on how we are accomplishing all four goals. 2 3 FINANCIAL AND OPERATING HIGHLIGHTS SYSTEMS MAP Year Ended Year Ended Current Service in Saskatchewan March 31 March 31 Financial Highlights ($ thousands): 2020 2019 SaskWater currently owns and/or operates potable, non-potable and wastewater infrastructure in the following Total revenue $ 59,457 $ 57,290 locations/regions: Total expenses 49,474 47,833 Operating income 9,983 9,457 Net finance expense (1,631) (1,967) 1 LA RONGE REGION Net income $ 8,352 $ 7,490 2 PIERCELAND Other comprehensive income 148 363 3 MEADOW LAKE Total comprehensive income $ 8,500 $ 7,853 4 MEOTA-COCHIN-JACKFISH LAKE REGION Dividends $ 4,176 $ 3,745 5 KINDERSLEY Debt ratio 50.00% 46.10% 6 NIPAWIN Operating Highlights (cubic metres): 7 MELFORT REGION Non-potable water distributed 36,766,347 39,884,765 8 WAKAW-HUMBOLDT REGION Potable water distributed 7,788,003 7,838,396 9 HANLEY-WATROUS-LANIGAN REGION La Ronge1 10 SASKATOON REGION 2 11 ELBOW 3 12 GRAVELBOURG 6 13 MOOSE JAW 4 7 14 BUFFALO POUND REGION Saskatoon 10 8 15 WHITE CITY 9 5 16 EDENWOLD 11 17 19 18 14 16 17 CUPAR Moose Jaw13 20 15 18 FORT QU’APPELLE 12 19 MELVILLE 20 RM OF SHERWOOD 4 5 LETTER OF MINISTER’S TRANSMITTAL MESSAGE Moose Jaw, June 2020 It is my pleasure to present SaskWater’s 2019-20 Annual Report and to reflect on some of the Crown corporation’s To His Honour achievements throughout the past year. The Honourable Russ Mirasty, S.O.M., M.S.M. Lieutenant Governor of Saskatchewan SaskWater achieved a substantial project milestone in March, Province of Saskatchewan 2020, with the commissioning of the new Melville Regional Water Supply System. This project, which began in 2016, was Dear Sir: aimed at completely redeveloping the city’s potable water I have the honour to submit herewith the Annual supply service. The Melville system now benefits from a new Report of the Saskatchewan Water Corporation for water treatment plant, new supply wells, a well control station the fiscal year ending March 31, 2020. and a water supply pipeline. This new infrastructure, funded in part through a grant from the Governments of Canada The report includes the financial statements, duly and Saskatchewan, showcases the level of dependability certified by auditors for the corporation, in the form and expertise that SaskWater brings to its customers. approved by the Treasury Board and in accordance with The Saskatchewan Water Corporation Act. SaskWater has also reached a significant agreement with the City of Meadow Lake for the purchase of its water I have the honour to be your obedient servant. treatment plant, together with a 30-year water supply Sincerely, agreement. The corporation took over operation of the Bronwyn Eyre system in January, 2020, making Meadow Lake the sixth city to be served by SaskWater. These two projects represent a significant portion of the corporation’s investments of $20.4 million on capital projects in 2019-20. Infrastructure maintenance totalled $3.0 million, Minister Responsible for which speaks to SaskWater’s commitment to service, Saskatchewan Water Corporation reliability and financial sustainability. SaskWater’s responsible fiscal approach generated net income of $8.35 million in 2019-20, outpacing previous years’ earnings, and the Crown corporation paid a dividend of $4.17 million to the province. This past year’s accomplishments point to SaskWater’s commitment to the government’s Crown Sector Priorities and demonstrate a strong customer focus, as SaskWater continues to make significant investments in provincial infrastructure. These projects contribute to private sector engagement and keep our skilled labour force working to strengthen our Saskatchewan economy. Despite the unprecedented challenges brought on by the COVID-19 pandemic, SaskWater continues to provide unmatched quality and expertise and to deliver safe, reliable and sustainable water and wastewater services. Ongoing initiatives, including to evaluate and update business processes and implement new technology, will further improve that level of service, as SaskWater strives to help build healthy, vibrant communities in Saskatchewan. Sincerely, Bronwyn Eyre
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