orth EEast WatW ter Contents Report profile Mission & Values 1 North East Water’s 2004-05 Annual Report is a summary of our • Our Water Plan operations, programs and achievements over the reporting period. Report theme 1 • Current and previous Wastewater Treatment Plant (WWTP) Our 2004-05 Environment Report accompanies this document, performance reports Summary of Events 2 and we recommend the two be read in conjunction to gain a fuller • Current and previous Drinking Water Quality performance At a Glance 2 picture of our performance. reports Chairman / Chief Executive Report 3 The Annual Report has been prepared to inform our stakeholders You can obtain these at our head office at 1 Hovell St, Wodonga, Overview 5 of our activities, and to meet our statutory reporting or from our website, www.nerwa.vic.gov.au. responsibilities under the Financial Management Act 1994 and Case Study - Carter Holt Harvey 19 Our website also outlines a range of activities that help us meet the directions of the Minister for Finance. Our Operations 20 our economic, social and environmental objectives. Further information on North East Water’s economic, social and Our Customers 30 environmental performance is available from the following Our Staff 34 sources: Our Finances & Assets 38 • Previous annual reports Case Study - Bruck Textiles 41 • Current and previous environment reports Governance 42 • Corporate Plan 2005-06 to 2009-10, a statement of the Case Study - Wodonga Rendering/Norvic 51 company’s corporate intent for the current financial year, and a detailed plan for the next five years Performance Report 52 Financial Report 60 Disclosure Index 77 Glossary 78 Appendices 79 Mission Report theme: North East Water will provide water products and services in a sustainable manner Water for industry ur Annual Report 2004-05 carries the theme ‘Water for O Industry’. We chose this theme in recognition of the invaluable contribution water makes to the many large manufacturers that operate in north- east Victoria. Whether they’re operating abattoirs or making pine products, the presence of clean, reliable water is an essential ingredient to their success. Furthermore, the success of these industries naturally contributes to the success and development of towns and cities across the entire Values region. However, like the rest of the community, industry has a responsibility to use water in the most efficient way possible. We will achieve our Mission through the following values: The Victorian Government’s White Paper Our Water Our Future makes it incumbent on manufacturing businesses to reduce their water usage in • Listening order to help preserve the State’s water supplies. • Responding We’re proud to say that, as a whole, industries in north-east Victoria have • Teamwork taken on board the mantle of water conservation, formulating ambitious • Legal and ethical behaviour but achievable goals and plans to cut down consumption. • Continuous improvement and innovation This report profiles some of our industries, and highlights their efforts to • Professionalism preserve our water supplies. • Rewarding and celebrating achievement AnnualAnnual ReportReport 2004-20052004-2005 NorthNorth EastEast WaterWater 11 Summary of Events July 2004 Table 1 – Summary of Key Statistics March 2005 • We achieve an overall customer satisfaction • We record a 17% reduction in summer water rating of 85% - page 31 At a glance 2002-03 Change (%) 2003-04 Change (%) 2004-05 use 81,773 • A community consultation committee to Population served (sewerage) 3.5S 84,607 1.3S 85,709 • The Board approves investigation of a 20 look at future planning for water services Population served (water) 93,200 0.5S 93,688 1.5S 95,051 megalitre treated water storage increase for in Yackandandah begins its strategic Connected properties (sewerage) 34,413 3.3S 35,545 1.8S 36,172 Wangaratta - page 28 sessions - page 32 Water sold (megalitres) 19,892 10.4T 17,828 10.3T 15,994 • The Board approves investigation into 350 August 2004 megalitre raw water storage for Bright, Sewage treatment volumes 9,476 0.3S 9,505 4.8S 9,959 • We call for public input to our draft Water Wandiligong and Porepunkah - page 28 Overall customer satisfaction (%) 83 3.6S 86 1.2T 85 Plan for the Essential Services Commission • The Board approves study on raw water (ESC) - page 3 Employee numbers 105.5 2.6S 108.2 6.0S 114.2* storage for Yackandandah - page 28 September 2004 No. of employee days lost to injury 9 1.1T 8.0 0.0 8.0 April 2005 • We host the Victorian Water Industry Total revenue ($’000) 28,551 10.4S 31,532 28.1S 40,407 • We present our submission on ESC draft Operators Association (VWIOA) annual Net operating result ($’000) -2,252 115.4S 347 1,064S 4,039 decision - page 3 conference in Wodonga - page 31 Total assets ($’000) 344,114 1.1T 340,222 24.9T 424,828 May 2005 • West Wodonga Wastewater Treatment Plant • Capital expenditure 16,020 66.3T 5,394 99.1S 10,740 The Board reviews and updates the Code Operator, Peter Tolsher, wins Victorian of Governance - page 47 Operator of the Year - page 31 * Measured as full time equivalent employees (FTE) • We review our strategic intent and establish • We submit our Water Plan to the ESC December 2004 Sewerage Program, which aims to develop a strategy taskforce to undertake an October 2004 • We call for nominations for future innovative solutions to service small environmental scan of the organisation - • The Victorian Government’s 5% development planning community communities - page 3 page 15 Environmental Contribution comes into committees in Benalla and Yarrawonga - February 2005 June 2005 effect page 32 • We sign a Memorandum of Understanding • We announce plans for a pipeline to supply • We host the annual regional conference of • Our Occupational Health and Safety (MoU) with cross-border neighbour, Tungamah, Devenish and St James from the Australian Water Association’s Victorian Management System (OHSMS) achieves Albury Water - page 3 Yarrawonga - page 28 branch in Beechworth - page 31 recommendation for certification - page 35 • North East Catchment Management • ESC releases final determination on Water November 2004 January 2005 Authority (North East CMA) begins Plan - page 3 • Contractors complete a $2.4 million • North-east Victorian towns Milawa and rolling out ‘Wet, Wild and Wonderful’, a upgrade to the Beechworth Water Bethanga included in the first phase of the joint education project with North East Treatment Plant - page 39 Government’s Country Towns Water and Water - page 31 2 North East Water Annual Report 2004-2005 Message from Chairman and CEO elcome to North East Water’s 2004-05 Annual sharing, source potential joint funding opportunities and Report. This year’s report covers a busy and improve our approach to consultation within our Weventful period for our Authority, and for the communities Victorian water industry as a whole. • Our relationship with local councils has been further A major focus has been the preparation of our first Water Plan enhanced with the development of MoUs. These for the ESC. This comprehensive document acts as a agreements aim to improve working relationships and blueprint for the ESC to set our pricing path for the three ensure we are addressing community concerns about water years from 2005-06 to 2007-08. The Water Plan was and wastewater services. We have been encouraged by the submitted on 1 September 2004 after extensive consultation number of councils already committing to the MoUs, and with our community and stakeholders. We have welcomed anticipate the remainder to sign before the end of the year. the impressive level of community involvement during the The development of MoUs formalises our approach to consultation phase of its development. Dr Peter Box Jim Martin encourage sustainable regional growth within catchment Our Focus on Sustainability Chairman CEO capabilities. We are also working closely with councils on the development of a Water Supply-Demand Strategy During our Water Plan consultation, we were encouraged by (WSDS), a requirement of the Victorian Government’s the community’s increased awareness of sustainability issues. longer-term results of the community’s changed attitude to White Paper, Our Water Our Future water. As an Authority, we are also aware of the precious nature of Consulting with our Communities the resource we manage, and are committed to incorporating The By-Law’s effectiveness, combined with the price reform sustainability principles into our business operations for the and increasing community awareness, has seen a marked Our consultation with the community is a crucial component benefit of current and future generations. reduction in water demand, from an average residential of our program of town Future Development Planning. This year the Board endorsed an Ecologically Sustainable demand of 314 kilolitres per household in 2003-04 to 270 The program has further developed this year, with Development (ESD) strategy, which provides direction for kilolitres per household in 2004-05. This offers confidence community groups established in Yackandandah, Wangaratta, implementing sustainability concepts across the Authority. that our communities will deliver our sustainability Bright and Benalla. We prioritised the Wangaratta and Bright objectives. groups this year to address the impacts of the 2003 bushfires. This is the key strategy in our aim to reduce our environmental impact by 10%. Building Partnerships These community groups work with us to review the long- term water demand and service requirements for the towns. As part of this, we are continuing our push to gain Class A We have continued to improve our communication with The Yackandandah, Bright and Wangaratta groups have made verification for recycled water at the West Wodonga customers, and develop relationships with Albury Water, recommendations to the Board for future actions in their Wastewater Treatment Plant. This fit-for-purpose reuse is in North East CMA and local councils: respective communities.