Corporate Plan - Goulburn Murray Water...In this Corporate Plan, Goulburn-Murray Water details its...

Corporate Plan2004/05 to 2008/09

Delivering sustainable water serviceswww.g-mwater.com.au

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ContentsForeword ...................................................................................................... 2

Mission......................................................................................................... 3

Values ........................................................................................................... 3

Vision............................................................................................................ 4

Business Objectives...................................................................................... 5

Characteristics of the Business..................................................................... 6

Performance Indicators .............................................................................. 10

Business Risks ........................................................................................... 12

Board Corporate Governance Improvement Plan ....................................... 16

Current Operating Environment .................................................................. 17

Key Future Directions ................................................................................. 20

Strategic Program ...................................................................................... 23

Capital Expenditure Program ...................................................................... 30

Capital Expenditure Forecast....................................................................... 31

Goulburn-Murray Water Profit and Loss Statement - Consolidated ........... 32

Pricing Proposals ....................................................................................... 33

Pricing Principles........................................................................................ 33

Pricing Consultation ................................................................................... 34

Pricing Summary........................................................................................ 35

Appendix A - Goulburn-Murray Water Business Structure ......................... 36

Goulburn-Murray Water

Corporate Plan 2004/05

In this Corporate Plan, Goulburn-MurrayWater details its strategic direction forwhat will continue to be a significantperiod of adjustment in the rural waterindustry.

The past year has been yet another ofprolonged drought conditions, addingeven further to the challenges for allstakeholders. The pressures brought on bythe drought have ensured that our industrywill be forever changed. Water now carriesa prominence and value never beforeknown, and our policy planning is nowdriven by efficient use of resources and aclear commitment to the environment.

One word that has become moreprominent in the water industry in recentyears is sustainability. This reflects theincreasing challenge for water authoritiesto achieve sustainability in both financialand water resource management. Morethan just a catchphrase, the quest forsustainability is vital to the future of therural water industry and, therefore, to thesurvival and prosperity of ourcommunities. It will require significantadjustment by the entire industry.However, we believe this will be achievedthrough strong, cooperative regionalcatchment partnerships. Accordingly, wehave planned our programs to supportgovernment policy objectives whilecontinuing, and strengthening, theinvolvement of our customers, councilsand regional communities.

Our priority strategies for this CorporatePlan recognise the need to balance social,economic and environmental values, andinclude:

• Responding to severe drought• Improving the safety of our

workplaces• Extensively reviewing and upgrading

our Environmental ManagementSystem

• Managing service levels andincreasing water system efficiency

• Delivering water savings• Contributing to the quest for healthy

rivers• Extending clarification and

specification of water entitlementsto support sustainable waterresource management

• Undertaking dam improvementworks at Lake Eildon

• Building business viability• Preparing our first Water Plan for

submission to the Essential ServicesCommission

• Building workforce capability anddiversity, and

• Building stakeholder partnerships,particularly with local government

Goulburn-Murray Water also recognisesthe increasing importance of recreationaluses of its water storages, as does theVictorian Government’s White Paper onwater reform, and will continue to workwith stakeholders to understand how theseneeds can best be met.

The Victorian Government’s White Papertypifies the ever-changing nature of theindustry and the need for initiativesrelating to sustainability and water for theenvironment. In managing thesesignificant reforms, Goulburn-MurrayWater will continue to be flexible andcooperative, building on its relationships todeliver sustainable water services.

Don CumminsChairperson

Foreword

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MissionTo deliver sustainable water services.

ValuesHuman Safety, the Environment and Customer Service are ourhighest priorities

Sustainability is our commitment tofuture generations

Cooperation based on theinvolvement of people is the key to progress

Openness builds trust, knowledgeand understanding

Integrity, respect and pride arevalued characteristics of our people

Continual improvement is essentialand underpins our future

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Vision

By 2020:Goulburn-Murray Water envisages thathealthy catchments and waterways willcharacterise the region, underpin theeconomy and make the region a popularbusiness, lifestyle, recreation and tourismdestination.

Land use patterns will be somewhatdifferent from today. There will be a mosaicof higher value and more diverse irrigatedagriculture in future with large tracts ofland used for vegetation and biodiversity,low impact dryland agriculture and rurallifestyle properties.

There will be a significantly increased anddiverse population located mainly in thethriving cities and towns with their valueadding and service industries.

Customer participation in Goulburn-Murray Water decision making will havebeen strengthened and enhanced toincorporate extensive stakeholderinvolvement. This cooperative culture ofinvolvement will have driven serviceimprovement, with flexible and adaptableresponses evolving to better meetstakeholder needs.

Rural water infrastructure will be moremodern and efficient. It will comprisefewer dams and channels. Automatedsystems controlling channels will beintegrated with farm systems in districtsand there will be a number of small-diameter pipeline schemes, many of whichwill serve intensive farming enterprises orlifestyle farms.

Goulburn-Murray Water will be anemployer of choice, providing a safeworkplace for a diverse, committed andcapable workforce which is valued by theAuthority, customers and the community.Our business divisions will becommercially viable and we will continueto achieve productivity.

We will continually reduce the impacts ofour business operations on theenvironment, whilst working with ourcatchment partners to deliver improvedwater health and environmental flowregimes.

Healthy catchments and waterways will characterise the region, underpin theeconomy and make the region a popular business, lifestyle, recreation and tourism destination

1. ServiceTo deliver water-related services toagreed standards to customers andcommunities in northern Victoria.

2. Water To manage water resources on a totalwater cycle basis to meetconsumptive and environmental waterentitlements.

3. EnvironmentTo minimise the impact of Goulburn-Murray Water activities on the environment and enhance theenvironment.

4. AssetsTo effectively operate and manage theassets essential for delivery ofservice.

5. PeopleTo ensure a diverse, capable andflexible workforce of healthy, satisfiedemployees and to provide a safe workenvironment.

6. FinancesTo set prices to reflect the cost ofefficient service provision and toensure long term business viability.

7. RelationshipsTo maintain relationships, buildpartnerships and influence policy that will improve our water and businessmanagement and support sustainableregional development.

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Business Objectives

Characteristics of the Business

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Goulburn-Murray Water is a rural waterauthority established under the Water Act1989 with a skills based Board appointed bythe Minister for Water. Goulburn-MurrayWater has four separate business divisions.These are:

• Bulk Water Services, involving thedelivery of bulk water entitlements andsupplies to urban and rural waterauthorities, and the management ofheadworks assets and associated waterstorages;

• Diversion Services, which includes thelicensing of surface water andgroundwater diversions;

• District Services, involving the deliveryof water entitlements, water supply,drainage and flood protection services tocustomers, and the management ofassets in irrigation, water and waterwaymanagement districts; and

• Natural Resource Services, involving theprovision of a range of services whichsupport sustainable land and watermanagement.

The Authority undertakes its managementfunctions within a region which extendsfrom the Great Dividing Range north to theRiver Murray and from Corryong down riverto Nyah. Goulburn-Murray Water alsooperates salinity mitigation works on theMurray downstream of Nyah, delivers bulkwater to supply points outside its regionand is the Victorian Constructing Authorityfor the Murray-Darling Basin Commission.

The Bulk Water Services business divisionoperates the two major regulated bulk watersupply systems from which the Authoritytakes its name, reflecting the dominantsources of the water resource. TheGoulburn system comprises the storages,weirs and connecting channels thatintegrate the supply of water from theBroken, Goulburn, Campaspe and LoddonRiver catchments. The Murray systemcomprises both Murray-Darling BasinCommission and state-owned headworksassets located on the River Murray or withinthe Victorian tributary catchments of theMitta Mitta, Ovens and King Rivers. TheBulk Water Services business supplies nineother Water Authorities which deliver water

for irrigation, stock and domestic, privatediversion and urban consumption.

The Diversion Services business divisionprovides regulated and unregulated surfacewater and groundwater diversion servicesto customers on 10,500 serviced propertieswithin Goulburn-Murray Water's area.

The District Services business divisiondelivers services to customers on 14,000serviced properties located withinconstituted irrigation, water, and waterwaymanagement districts and six managementareas (Shepparton, Central Goulburn,Rochester, Pyramid-Boort, Murray Valleyand Torrumbarry). The services provided tothese customers include gravity andpumped water supply, surface and sub-surface drainage and flood protection.

The Natural Resource Services businessdivision provides a range of services whichare purchased mainly by governmentsthrough programs coordinated byCatchment Management Authorities. Theservices provided include salinitymanagement, surface and sub-surfacedrainage services support, water quality andland management planning and saltinterception management.

The four business divisions are each theresponsibility of a separate organisationalgroup and are supported by otherorganisational groups that provide a rangeof corporate and support services. Theseservices include corporate secretariat;corporate strategy, planning, coordinationand communications; business and watermarket development; total water systemsand water resource management;environmental management; water savings;financial management; informationtechnology; water administration; andproperty, legal and human resourceservices.

Goulburn-Murray Water's four businessdivisions and the key services provided byeach business are shown diagrammaticallyin Figure 2.

Further details on Goulburn-MurrayWater's business structure are provided inAppendix A.

Figure 1

Map of Goulburn-Murray Water

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Figure 2

Key Goulburn-Murray Water Businesses and Services

Bulk Water Services

• Bulk Water Supply(regulated)

• Hydroelectricity

• Recreation at storages

Diversion Services

• Surface Regulated• Surface Unregulated• Groundwater

District Services

• Water Supply• Surface Drainage• Sub-surface Drainage

• Flood Protection

Natural Resource Services

• Salinity Management • Water Quality Management • Land Management Planning

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Figure 3

Bulk Water Supply RecipientsFigure 3 shows the recipients of bulk water supply services and the bulk water system from which supply is sourced.

RecipientWater Supply System

Goulburn Murray

Goulburn-Murray Water• Shepparton Area Yes• Central Goulburn Area Yes• Rochester-Campaspe Area Yes• Pyramid-Boort Area Yes• Murray Valley Area Yes Yes• Torrumbarry Area Yes• Surface Water Diversions Yes Yes

Other Rural Water Authorities• Wimmera Mallee Yes Yes• Sunraysia Yes• First Mildura Irrigation Trust Yes

Urban Water Authorities• North East Yes Yes• Lower Murray Yes• Goulburn Valley Yes Yes• Central Highlands Yes• Coliban Yes Yes

In order to deliver water services to its bulk and rural water customers, Goulburn-Murray Water operates an extensivewater supply system of storages, weirs, pump stations, channels and drains that stretch across much of north central andnorth east Victoria. This network is the culmination of over 120 years of incremental water resource development.

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Figure 4

Goulburn-Murray WaterAssets StatisticsFigure 4 provides statistics relating to bulk water assets and distribution assets. The harvesting and distribution of wateron a large scale is a capital-intensive undertaking, as it involves a range of high-cost assets.

Bulk Water Assets

Current Replacement Cost 17 large dams Ancillary Assets $1.5 billion*

* Includes $0.6 billion of Murray-Darling Basin Commission Assets

Estimated Average Annual Volumes Delivered to Bulk Supply Offtakes* (ML ’000s)

Goulburn System 1,745

Broken River Basin 21

Goulburn River Basin 1,578

Campaspe River Basin 76

Loddon River Basin 70

Murray System (Victorian component only) 1,691

Murray/Mitta Basin 1,677

Ovens River Basin 14

Bulk Water Entitlements Held

Goulburn-Murray Water holds Bulk Water Entitlements for supplies taken from the Goulburn and Campaspe Basins and the Murray/Mitta Basin

* 10 year rolling average deliveries for the period up to and including 2001/02

Distribution Assets

Current Replacement Cost $1.6 billion

Irrigation Assets

Open Channels 6,529 km

Pipelines 240 km

Drains 3,126 km

Structures 23,647 No.

Meters 20,056 No.

Drain Inlets 8,267 No.

Domestic and Stock Assets

Open Channels 517 km

Pipelines 293 No.

Structures 753 No.

Meters 373 No.

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Performance IndicatorsPerformance Aspect 2004/05 Corporate Performance Targets Social Environmental Economic

Service

A Compliance with agreed service Standards established in relevant Customer standards Service Agreements met for:

- Water supply service standards ✓ ✓ ✓

- Response times for reactive maintenance ✓ ✓ ✓

activities

Accounts issued in accordance with agreed ✓ ✗ ✓

billing schedules, with no more than 1% error rate (as measured by customer enquiry calls)

B Customer satisfaction At least 80% of respondents to customer ✓ ✓ ✓

surveys satisfied with Goulburn-Murray Water services

Water

A Delivery system efficiency Losses in distribution systems compliant ✓ ✓ ✓

with BE loss allowances

B Minimum river flow regimes Actual flows greater than or equal to ✓ ✓ ✓

specified minimum flows 100% of the time

C Water use Water use compliant with seasonally ✓ ✓ ✓

adjusted MDB cap

EnvironmentA Environmental management 100% compliance with Goulburn-Murray ✓ ✓ ✓

compliance Water environmental management targets

People

A Job satisfaction At least 75% of respondents to independent ✓ ✗ ✓

employee surveys satisfied with Goulburn-Murray Water as an employer

B Occupational Health and Safety Frequency - less than 15 lost time injuries ✓ ✗ ✓

per million hours worked

Severity - less than 7 days lost per lost time injury

C Employee health Personal leave reduced by 5% compared to ✓ ✗ ✓

2003/04(average personal leave less than 6 days/employee)

Performance IndicatorsPerformance Aspect 2004/05 Corporate Performance Targets Social Environmental Economic

Assets

Bulk Water Services Assets

A Availability of outlets for releases No unplanned service failures, greater than ✓ ✓ ✓

24 hours, across all storages

B Capability of storage to hold 99% of time, or better, at each storage ✓ ✓ ✓

design capacity

C Emergency Management 100% of plans reviewed and tested at least ✓ ✓ ✓

every 2 years

District Services Assets

A Availability of assets No unplanned service failures due to assets ✓ ✓ ✓

longer than 24 hours

B Asset base reduction Abandon assets with combined replacement ✓ ✓ ✓

value of $1 million

C Minimise life cycle costs Reduce reactive maintenance expenditure ✓ ✓ ✓

by 5% compared to 2003/04

Finances

A Strategic debt management Operating debt less than 90% of water right ✓ ✗ ✓

revenue

Operating debt eliminated by 2010/11

B Tariff reform Fixed revenue base is greater than 85% of ✓ ✗ ✓

total recurrent cost.

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Business RisksMajor Business Risks identified for each of Goulburn-Murray Water's business divisions are summarised below, togetherwith mitigating measures which have been adopted to minimise each risk. In this context, business risks are defined asissues which could act on corporate objectives and that have the ability to prevent or reduce the achievement of ourmission or objectives. Risks are quantified in accordance with Goulburn-Murray Water's Risk Management ProgramProcedures.

Bulk Water Services Business RisksIssue Consequence Likelihood Risk Mitigating Measure

Recreation/ Major Likely High • Public Use Management programPublic liability • Communications program and public awareness

• Insurance

Adverse environmental Major Moderate High • Environmental Management Programimpacts

Failure to supply Major Likely High • Corporate drought(drought) Management planning

• Asset Management Program

Dam Failure Catastrophic Rare Significant • Dam Improvement Program• Dam Safety Program

Water quality Moderate Moderate Significant • Corporate coordination through Natural • General Resource Services Business• Salinity • Environmental Management Program• Blue-Green Algae • Public Use Management programs• Pollutants • Rationalise Perimeter Land Developments• Drought • Salinity Management Programs• Fire • BGA Management Plans

• Regional partnerships and emergency planning• Water quality monitoring programs• Implementation of drinking water

quality guidelines

Terrorism threat Major Unlikely Significant • Dam Safety Program• Water quality monitoring program• State terrorism task force programs

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Natural Resource Service Business RisksIssue Consequence Likelihood Risk Mitigating Measure

Salt Interception Major Unlikely Significant • Natural Resource Services Business function Schemes and funding negotiated with government

Breakdown of Major Rare Significant • Maintenance of regional and basin cooperative partnerships partnerships

Lack of funding for Moderate Unlikely Moderate • Partnerships with CMAsNatural Resource • Rural Catchment Strategy accreditationManagement • Government Services Contract renewal

Adverse impacts on Moderate Unlikely Moderate • Goulburn-Murray Water Biodiversity strategybiodiversity • Lake Nagambie ecology project

• Water Quality and Biodiversity component of Storage Management Plans

• Kerang Wetlands project

Diversion Services Business RisksIssue Consequence Likelihood Risk Mitigating Measure

Water sharing Major Likely High • Streamflow management plans(drought and bushfire) • Groundwater management plans

• Seasonal allocation policy• Drought response plans• Communications program• Assessment of catchment yield risks


Water quality Moderate Moderate Significant • Corporate coordination through • General Natural Resource Services Business• Salinity • Environmental Management Program• Blue-Green Algae • Salinity Management Programs• Pollutants • BGA Management Plans• Drought • Regional partnerships and emergency planning• Fire • Water quality monitoring

• Implement drinking water quality guidelines

Loss of customer Moderate Unlikely Moderate • Strengthening Water Services support Committee process

• Customer consultation and communications

Business Risks

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Business Risks

District Services Business RisksIssue Consequence Likelihood Risk Mitigating Measure

Water availability Major Likely High • Corporate Drought Management planning(Drought and bushfire) • Allocation policy

• Communications program• Distribution system loss management program• Catchment yield risk assessment project


Irrigation drainage Moderate Likely Significant • Establishment of High Level Operating Agreements with stakeholders

• Barr Creek review (with EPA)• Implementation of Goulburn-Murray Water

Drain Management Strategy

Water quality Moderate Moderate Significant • Corporate coordination through Natural • General Resource Services Business• Salinity • Environmental Management Program• Blue-Green Algae • Salinity Management Programs• Pollutants • BGA Management Plans• Drought • Drain Management Plans• Fire • Groundwater Management Plans

• Regional partnerships and emergency planning• Water quality monitoring• Implementation of drinking water quality

guidelines

Public liability Moderate Moderate Significant • Insurance• Communications and public awareness

programs

Loss of customer Moderate Unlikely Moderate • Strengthening Water Services Committee support process


Failure to supply Moderate Unlikely Moderate • Asset Management Program

Terrorism threat Moderate Unlikely Moderate • Water quality monitoring program• State terrorism task force programs

Long-term asset Moderate Unlikely Moderate • Asset Management Plansdeterioration

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Business Risks

Corporate RisksIssue Consequence Likelihood Risk Mitigating Measure

Workforce Safety Catastrophic Unlikely High • OH&S Policies• OH&S Audits• SafetyMAP Compliance Program• Staff, consultant and contractor management

Workforce skills Major Likely High • Growing Organisational Capability Program• Board Performance Improvement Program


Drought Major Likely High • Corporate Drought Management Planning• Communications program

Sustainability of Major Moderate High • Kerang Swan Hill Future Land Use ProjectIrrigation • Goulburn-Broken Irrigation Futures R&D project

• CRC for Irrigation Futures• Ecological Risks Associated with Irrigation

– research project

Loss of customer Moderate Unlikely Moderate • Strengthening Water Services Committee support process


Fractured government Moderate Unlikely Moderate • Ongoing communication and liaison with relationships department and Minister

Lack of community Moderate Unlikely Moderate • Corporate communications programsupport

Terrorism threat Moderate Unlikely Moderate • Office security review• Water quality monitoring program• State terrorism task force programs

Reduced Revenue Moderate Unlikely Moderate • Customer consultation program(Drought) • Communications program

Reduced workforce Moderate Unlikely Moderate • Internal communications programmorale /motivation • Staff support program(drought) • Leadership development and culture change

Board Corporate GovernanceImprovement PlanThe Board will take the followingactions during 2004/05 with theaim of achieving continuousimprovement in its CorporateGovernance:

• Maintain the practice of reviewing theperformance of the Board as a wholein the middle of each year. The reviewincorporates a 360° assessmentprocess, with inputs from keystakeholder groups and management.A Board Performance ImprovementPlan for the coming year is anoutcome of the performance review;

• Review achievement against the BoardPerformance Improvement Plan inNovember, March and June;

• Maintain the practice of reviewingindividual Director performance inJanuary each year, including review ofthe Chair's performance by eachDirector;

• Maintain the following Boardcommittees:

- Financial and Management AuditCommittee

- Remuneration Committee

- Safety and Environment Committee(established in April 2004)

The charter and membership of eachcommittee will continue to bereviewed on an annual basis;

• Encouraging all Directors to undertakethe Australian Institute of CompanyDirectors Course to a standardallowing admission to the AustralianInstitute of Company Directors;

• Continue to update its CorporateGovernance Manual to ensure thatsound ethical standards and bestcommercial practice and principles(consistent with the latestdevelopments, where relevant, of theCorporations Act and Australian StockExchange principles) are adopted. Inparticular, during 2004 the CorporateGovernance Manual will be reviewedto ensure consistency with therecently released Australian Standardon Corporate Governance (AS 8000);

• Enhance its understanding of itsresponsibilities under water legislationthrough briefings on the Water Act1989 and Murray-Darling Basin Act1993;

• Resource its secretariat with capableand appropriately qualified personneland provide access to appropriateprofessional guidance and assistance.

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The reviewincorporates a 360°assessmentprocess, withinputs from keystakeholdergroups andmanagement

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The Goulburn-Murray Water 2004/05Corporate Plan sets the key strategicdirections for the Authority, considered inthe context of a long term strategic visionof sustainability in our region. Our planrecognises the considerable positivechange that has occurred in the Victorianwater industry over the last decade, andbuilds on the solid foundation of Goulburn-Murray Water's achievements since theAuthority was formed in July 1994.

Over this relatively short period, Goulburn-Murray Water has worked to ensure thatservices are clearly defined throughexplicit Customer Service Agreements andare financially separated, and that all 40retail water services have achieved fullself-financing of their real operating andcapital costs. This move to full self-financing has been achieved through apartnership approach between Goulburn-Murray Water and its customers.Customers have accepted significant realprice increases, whilst Goulburn-MurrayWater has implemented a Productivity Planwith productivity improvements averaging3.4% per year over a five-year period to2000/01.

These types of changes can only occurwhen a spirit of cooperation and sharedpurpose exist within an organisation andbetween an organisation and itscustomers. The development of WaterServices Committees is fundamental to thesuccess of Goulburn-Murray Water, andhas provided the vehicle to establish thistype of relationship with our customercommunities. The 12 Water ServicesCommittees exert close scrutiny andsignificant influence on the standards ofservice, maintenance and asset renewalsfor services. Our current strategicimprovement project aimed atstrengthening Water Services Committeesis the next step in the evolution of thisrelationship, and will underpin Goulburn-Murray Water's ability to meet the manychallenges ahead.

The concept of the 'Corporate Identity'has been developed to define andstrengthen the relationship between WaterServices Committees and the Board. Thisallows each Water Services Committee todevelop its services to meet local customerneeds, whilst cooperating with other WaterServices Committees to share knowledgeand be able to benefit through sharedaccess to the corporate resources andcapabilities an organisation of Goulburn-Murray Water's size can cost-effectivelyoffer. Figure 5 illustrates these keyrelationships.

The 2003/04 irrigation season has beendominated by the seventh consecutive yearof drought in the region, with significantpressure on customers, communities andstaff in all our systems. Favourable 2003spring conditions helped somewhat tooffset low irrigation availability; however,the season has still been extremelychallenging for both customers and staff.Allocations in the Goulburn and the Murraysystems reached 100% of Water Rights.Whilst Goulburn users have gainedexperience in managing under these levelsof water availability over the last six years,this year is the lowest allocation on recordin the Murray system and has presentedsome additional challenges to irrigators inthat system.

Goulburn-Murray Waterhas worked to

ensure thatservices are

clearly definedthrough explicit

CustomerService

Agreements

Current Operating Environment

Water availability in many unregulatedstreams and some of the major deeperaquifer systems has also continued to bevery low, with the result that virtually allGoulburn-Murray Water customers areexposed to difficult operatingenvironments for their farm businesses.Goulburn-Murray Water continues to placehigh priority in engagement of customers,industry groups and communities througha proactive consultation andcommunications program to assist in ourregional drought response and recovery.

The uncertainty over the continuation ofdrought conditions in the Goulburn,Campaspe, Broken and Murray systemsinto next year creates an extremely difficultoperating environment for all stakeholders.

We are conscious that the drought hascaused immense hardship to many of ourcustomers, and we recognise that in someareas significant and rapid structuralchange is occurring in industry and in ourcustomer base that will affect our futurebusiness directions. In addition, manycustomers, particularly in the dairy sector,are experiencing lower returns for theirproduce in export markets and areexperiencing further financial pressuresfrom debt accumulated during the severe2002/03 drought year. The combination ofthese factors and the upwards pressureson Goulburn-Murray Water costs to coverrenewal of aging assets, improvements todam safety and management of debt levelshas made consultation with customersover the development of prices for2004/05 the most difficult and stressfulpricing process in the decade Goulburn-Murray Water has been in existence.

Community expectations on the value ofwater and the importance of responsibleand sustainable environmentalmanagement continue to grow, both as aresult of drought conditions and fosteredby the debates and policies surroundingsecurity of entitlements to water, andimproved health of biodiversity and ourriver systems. Water savings initiativesand processes are challenging catchmentcommunities to reconsider fundamentalsof land and water use and createuncertainty for many in the futureavailability of water for traditional uses.

These debates must recognise thefundamental importance of responsiblemanagement and use of water to ourregion, and its place in supporting adynamic and growing local and exporteconomy, as well as healthy and vibrantregional catchment communities.

Within this environment, Goulburn-MurrayWater's business divisions and customerscontinue to be challenged with supportingan aging infrastructure system. Futureland use change, asset modernisation andreconfiguration and the continuation of theDam Improvement Program will all requirecontinuation of the significant progressthat has been made in financial reforms byGoulburn-Murray Water, including theimplementation of the next stages of tariffreform.

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Communityexpectations on the value of water and theimportance ofresponsible andsustainableenvironmentalmanagementcontinue to grow

Current Operating Environment

Figure 5

Key Relationships

Executive

Operational Management

Corporate Identity

Corporate Plan

Local Business Plansand Customer Services

Agreements

Service Delivery andCommunications

Key

Legal accountability

Customer scrutiny

Cooperative influence

Responsibility And Expectations

Note: Directors, Water Services Committee members and officers each operate within respective codes of conduct.

Goulburn-Murray Water Board

Water Services Committees

Customers

Comm

unity

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Central Bureaucracy

Department of Sustainabilityand Environment

Government

Minister for Water

The initial strategic direction of Goulburn-Murray Water since its formation in 1994was primarily driven by the move to fullcost-recovery and financial self-sufficiencyof each service. The fundamental andunderlying importance to Goulburn-Murray Water and its customers of soundfinancial management and continuingreforms to tariff to ensure long-termfinancial sustainability remain, but mustnow be complemented by an increasedemphasis on environmental sustainabilityand increased efficiency of water systems.

This new phase Goulburn-Murray Water isentering can best be characterised as"adjustment for sustainability". It will bebuilt on strong cooperative regionalcatchment partnerships, developing andimplementing programs wheremanagement of water resources supportssustainable land use. Our programs havebeen planned to recognise and support thegovernment policy objectives included inthe following strategies and initiatives:

• Securing our Water Future (Green Paper)

• Victorian River Health Strategy

• The Living Murray

• The Snowy Project Water SavingsProgram

• The MDBC Salinity and DrainageStrategy

• Regional Catchment Strategies

Involvement of our customers throughWater Services Committees is a vital driverof our organisation, and the traditionalscrutiny and influence in balancingservices delivered, service standards andprice will be extended to includeoptimisation of system efficiency. Ourcustomer base is changing and furtherdevelopment of our Water ServicesCommittee structures will recognise thesechanges and place us in a strong positionto meet the government's objectives inrelation to economic regulation by theEssential Services Commission.

The response and management of thecontinuing drought and recovery planningwill remain our primary focus untilconditions change. The potentially lowwater availability for the coming irrigationseason, together with the difficultoperating environment being experiencedby many of our customers, will influenceand drive our business strategies in thecoming year.

We recognise that government andcommunity expectations of Goulburn-Murray Water are changing not onlybecause of the drought, but also becauseof an increased awareness and concern forthe natural environmental and river health.Delivering sustainable improvements inriver health will be complex, andcollectively we must ensure that the desirefor improvement will not mean that short-term measures are introduced to thedetriment of long-term sustainablesolutions. Finding cost-effective watersavings for the environment is provingdifficult and projects are proving morecomplex and involve longer lead timesthan originally expected. The successfulcompletion of the first major water savingsinitiatives, the Woorinen and Normanvillepipelining projects, in 2003/04 is animportant step in this program andsignificant effort and resources will bedirected towards achieving furthersavings.

Sustainable land use will drive our regionalcatchment communities and our businessinto the future. Significant industry andland use change is occurring across ourregion, driven by social, environmental andeconomic factors. Regional CatchmentStrategies integrated with sustainablewater management strategies are vital toensure long-term sustainable goals areachieved. The strategic programs in thisplan include a range of strategies focusedaround implementation of aspects of Landand Water Management Plans, RegionalWater Quality Strategies and BiodiversityStrategies that Goulburn-Murray Water willundertake as its contribution to theimplementation of Regional CatchmentStrategies.

Key Future Directions

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This new phaseGoulburn-Murray Water is entering can best becharacterised as "adjustment forsustainability"

Projects like the Kerang-Swan Hill FutureLand Use Pilot Project and the plannedPyramid Hill Future Management Study arevital in determining long-term land andwater use, which will determine assetinvestment and reconfiguration decisions.The future of the water utility businesseswill be based on infrastructure systemsmodernised, retired or reconfigured tosupport sustainable land use and deliverstrong environmental outcomes. This willrequire a critical assessment of the long-term requirements for infrastructure bothin irrigation delivery systems and ourstorage dams. The continuation of theDam Improvement Program is vital toensure public safety and to supportreliability of water entitlements.

Increased pressure for new or modifiedservices from new and emerging customerand interest groups will become moredominant in our environment, whilst manyof these groups have no commercialrelationship with Goulburn-Murray Water.The relative roles and responsibilities ofgovernment, Goulburn-Murray Water andother organisations will need to be clarifiedto address these issues. Recreation anddevelopment pressures in and aroundmajor water storages must be carefullymanaged in a regional and catchmentcontext, with the increasing communityawareness of water quality and publicliability responsibilities. The wider interestin water management issues from both astate and national level means that strongleadership and alignment of strategies atall levels is vital.

As our businesses strengthen and evolveto meet agreed government and customerneeds, the diversity and capability of ourworkforce will continue to evolve tosupport our programs. There will bechanges in work practices andimprovements in workplace safety.

The key challenges that Goulburn-MurrayWater will work towards over the period ofthis Corporate Plan include:

• Responding to severe drought

• Improving the safety of Goulburn-Murray Water workplaces

• Extensively reviewing and upgradingthe Goulburn-Murray WaterEnvironmental Management System

• Managing service levels and increasingwater system efficiency

• Delivering water savings

• Contributing to the quest for healthyrivers

• Extending clarification and specificationof water entitlements to supportsustainable water resourcemanagement

• Continuing the dam improvementprogram

• Building business viability

• Preparing our first Water Plan forsubmission to the ESC

• Building workforce capability anddiversity, and

• Building stakeholder partnerships

The other important element of the futuredirections for Goulburn-Murray Water is astrong recognition of the dynamic natureof the current environment. New initiativesin relation to sustainability and water forthe environment are developing quicklyand the strategic programs in this plan willneed to be modified to align with thesechanges as they emerge. The mostimportant of these imminent developmentsis the Victorian Government's White Paperon water reforms. The reform directionsforeshadowed in the Green Paper couldlead to significant reforms in themanagement of water entitlements andtrading, and Goulburn-Murray Water willrevise and refocus its strategic program tosupport and implement the Government’sobjectives once they are announced.

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The diversityand capability

of ourworkforce will

continue toevolve to

support ourprograms

Figure 6

Strategic Program Summary 2004/05 – 2008/09

Service• Defining services

• Managing serviceand increasingefficiency

• Enhancing watertrading

Delivering sustainable water services

Water• Responding to

severe drought

• Extendingclarification andspecification ofwater entitlements

• Delivering watersavings

Environment• Reducing

environmentalimpacts

• Managing naturalresourcessustainably

• Contributing to questfor healthy rivers

People• Improving OH&S

• Improving workforce capability & diversity

• Improving work practices

Assets• Modernising assets

• Reconfiguring assetsto support land usechange

• Continuing damimprovementprogram

Finances• Improving business

viability

• Reforming tariffs

• Improving riskmanagement

Relationships• Improving stakeholder

partnerships

• Supporting regionalwater leadership

• Improvingcommunication

22

23

Strategic Program 2004/05 - 2008/09ServiceStrategy Outcome Year for Completion

Defining Services

• Identify and engage all stakeholders and • Services and standards delivered in 2008/09+agree appropriate services and standards accordance with agreements

Managing service and increasing efficiency

• Review and implement distribution system • More efficient water delivery 2004/05loss reduction program • All irrigation area loss targets met

• Complete investigations and implement review • Improved customer service 2006/07of Irrigation Planning Module Generation 2 • Improved system delivery efficiency

• Complete Total Channel Control Project trial • Improved customer service 2004/05and evaluate outcomes • Improved system delivery efficiency

Enhancing Water Trading

• Develop water trading and trading mechanisms • Effective, transparent water trading 2006/07including enhancing Watermove services services provided

+ Denotes strategy completion is beyond 2008/09 planning horizon

24

Strategic Program 2004/05 - 2008/09

WaterStrategy Outcome Year for Completion

Responding to severe drought

• Maximise system efficiency by reducing • Water availability maximised 2004/05losses and increasing delivery efficiency

• Optimise system operation and • Standard of customer service delivery 2004/05communicate effectively to customers optimised

• Control and monitor system and business • Environmental effects minimised 2004/05operations to minimise environmental effects

• Coordinate corporate response to drought • Effect of drought on customers, staff, 2004/05and link to other stakeholder initiatives recreational users and communities

minimised• Strong and effective regional recovery 2004/05

from impacts of drought

• Review and revise water management • Water management practices more 2004/05policies attuned to extreme drought conditions

• Determine and assign individual Area loss • Clear accountabilities for the effective 2005/06allowances in the Goulburn system management of losses

Clarification and specification ofwater entitlements

• Develop and implement bulk entitlements • Clear entitlements for water authorities 2006/07for the Loddon and Ballarook basins and environment

• Develop and implement streamflow • Clear entitlements for licensees and 2008/09 +management plans for priority streams environment

• Develop and implement groundwater • Clear entitlements for licensees supporting 2008/09 +management plans sustainable resource management

• Develop and implement improved water • Control of water use 2005/06accounting framework and water use • All significant water use accurately measurement program measured at both river offtake and farm level

• Assess risks to catchment yield • Risks understood and agreed risk 2005/06accounting framework and water use management actions implemented

Delivering water savings

• Total Channel Control Project trial complete • Opportunities for water savings defined 2004/05

• Small volume metering project negotiated • Water saved 2005/06and implemented

• Investigation of Katandra, Rochester 20 • Opportunities for water savings defined 2004/05projects complete

• Define further Water Savings Projects • Opportunities for water savings defined 2006/07

• Investigation and scoping of further Total • Opportunities for water savings defined 2004/05Channel Control System opportunities complete

• Implement approved future arrangements • Sustainable water resource management 2006/07 for Lake Mokoan and possible water savings

• Tungamah pipeline scheme designed and • Water saved 2006/07 implemented


25

EnvironmentStrategy Outcome Year for Completion

Managing natural resources sustainably

• Develop water quality management strategies • Acceptable water quality in storages, in 2004/05at Goulburn-Murray Water storages support of catchment based strategy

targets

• Conduct major water quality study • Risks of various storage usage activities 2005/06better understood

• Develop and implement strategies for improved • Water quality impacts from perimeter 2008/09 +management of perimeter land at storages land use at storages reduced

• Develop Safe Drinking Water Risk • Water quality risks identified and 2004/05Management Plans managed

• Develop future land use strategies for • Appropriate resource management, 2004/05irrigation areas (Kerang Pilot Study) based on understanding of future

sustainable land use

• Implement Goulburn-Murray Water • Enhanced biodiversity within Goulburn- 2008/09 +Biodiversity Strategy Murray Water assets and area of influence

Contributing to quest for healthy rivers

• Contribute to implementation of relevant • Improved river health 2008/09 +aspects of the Victorian River Health Strategy

• Actively contribute to investigation and • All relevant issues identified 2008/09 +consultation work for Living Murray project • Future implementation and management

strategies negotiated with key stakeholders

Reducing environmental impacts

• Develop and implement strategies to reduce • Environmental risks and impacts 2008/09 +high priority environmental risks progressively reduced

• Revise and simplify Environmental • Environmental Management System 2006/07Management System understood and used by all staff

• Develop rationalisation targets for • Risks to storage water quality understood 2004/05storage perimeter lands developments and risk reduction program developed

• Develop and implement strategies for improved • Water quality impacts from drains within 2008/09 +drainage management catchment strategy targets


26


AssetsStrategy Outcome Year for Completion

Modernising Assets

• Re-assessment of asset condition for all • Asset conditions understood 2004/05irrigation and drainage infrastructure

• Implement improved quality control procedures • Accurate asset data and enhanced asset 2005/06for asset management data systems decision-making

• Appropriate future asset management • Asset base maintained, replaced, 2008/09 +strategies developed and implemented for all reconfigured or retired as appropriatedistrict and bulk water services assets

• Research and Development program • Best use of new technology and 2006/07developed and implemented to support opportunity incorporated into asset future asset management program management programs

Reconfiguring assets to support land use change

• Identify future irrigation district and bulk water • Future asset needs understood 2006/07service requirements & supporting asset needs- Pyramid Hill study- Kerang study expanded- Needs in other areas scoped

• Develop and implement asset reconfiguration • Asset base reconfigured to deliver 2008/09 +strategies appropriate service levels

Continuing Dam Improvement Program

• Implement Dam Improvement Program • Risks reduced 2006/07Phase 2 priority works• Eildon• Cairn Curran• Goulburn Weir


27

PeopleStrategy Outcome Year for Completion

Building organisational capability and diversity

• Establish revised Board policy framework • Clear policy directions for 2004/05Goulburn-Murray Water and alignment with government policy

• Develop long-term Goulburn-Murray Water • Improved human safety, environmental 2006/07organisational development strategy and management and customer service intergrated culture change program performance

• Develop strategic human resource plan • Workforce capable of delivering corporate 2005/06objectives in the short and long term

• Establish mentor schemes to address staff • Workforce capability enhanced 2004/05support and development needs

Improving occupational health and safety

• Develop and implement OH&S action plans • Safer work environment with fewer 2008/09 +based on analysis and risk assessment injuriesfor all work units

• Audit all workplaces and achieve • Improved management of health and 2004/05certification at SafetyMAP Level 1 safety

Improving work practices

• Undertake review of staff accommodation and • Suitable staff accommodation and 2005/06implement recommendations facilities provided at all work locations

• Implement information technology • Systems and procedures implemented to 2005/06strategic plan initiatives deliver better service and improve

productivity

• Develop Goulburn-Murray Water Business • Improved organisational performance and 2005/06Management System consistent business processes


28


FinancesStrategy Outcome Year for Completion

Building business viability

• Develop medium-term pricing paths and • Improved understanding of price-service 2004/05cashflow strategies for key services options, and service pricing for long-term

viability

• Finalise financial framework with government • Clear accountabilities and cost-sharing 2004/05for delivery of non-core services

• Develop Goulburn-Murray Water Water Plan • Pricing path and processes for 2004/052005/06 - 2007/08

• Develop and implement productivity • Costs for Goulburn-Murray Water 2007/08improvement plan functions effectively managed

Reforming Tariffs

• Develop and implement new tariffs or fees • Improved signals to customers about 2005/06for water supply services type and costs of service provided

• Improved signals to customers about third party impacts

• Improved Goulburn-Murray Waterbusiness viability

• Review bulk water cost sharing arrangements • Cost reflective, equitable tariffs for bulk 2004/05for Goulburn-Murray Water customer groups water charges to Goulburn-Murray Water

customer groups

Improving risk management

• Identify future key business risks, develop • Improved ability to manage financial risks 2004/05and implement appropriate pricing strategies to business

• Implement, monitor and review risk • Risk profile lowered 2004/05 management action plan

29

RelationshipsStrategy Outcome Year for Completion

Building Stakeholder partnerships

• Regular coordination forums established with • Improved communication, trust and 2004/05key partners including customers, industry understanding, shared visions, integrated bodies, state and federal Ministers, planning and coordinated actionsgovernment departments, CMAs, other water • ANCID, ANCOLD, CRCs and other authorities and local government industry bodies actively supported

• Implement recommendations of Strengthening • Increased capability and diversity of 2004/05Water Services Committee project customer representatives and improved

effectiveness of Water Services Committees

Facilitating regional water leadership

• Support the Northern Victorian water • Agreed strategies and directions for 2004/05resources forum water resource management

• Enhanced coordination between water resource management agencies

Improving communications

• Enhance and coordinate corporate and local • Community, customer and staff 2005/06communications programs awareness and understanding of key

issues increased

• Enhance multicultural communications • Profile and image of irrigation and water program sector raised and improved understanding

of issues in the community

30

Capital Expenditure ProgramGoulburn-Murray Water manages assetswith a current replacement value of $3.1billion. A well targeted, strategic assetmanagement program is essential in orderto ensure continuity of services tocustomers.

Goulburn-Murray Water uses a computer-based asset management system to planits asset renewal program. This systemcontains data on over 70,000 separateassets. Each asset is assessed todetermine its current condition andremaining life. This life cycle data, incombination with estimates of the currentreplacement cost for each type and size ofasset enables Goulburn-Murray Water toestimate the future capital expenditure(quantum and timing) required to maintainsustainable services. In order to ensurethat the asset management systemaccurately reflects the expenditurerequired to renew assets when they reachthe end of their economic lives, thecondition of each asset is reviewed on afive-yearly cycle. Approximately 50% ofthe asset base has been reviewed over thelast two years and the capital programincluded in this Corporate Plan is based onthis updated data.

This data is also used to determineappropriate customer contributions forinclusion in pricing (via a renewalsannuity) to meet the cost of future assetrenewals, in accordance with the 1994COAG Water Agreement.

The other major area of planned capitalexpenditure is investments to upgradeassets or to improve the extent or standardof services to customers. A significantinvestment program is underway toupgrade Goulburn-Murray Water's majorstorages to meet contemporary safetystandards. An estimated $145 m will beinvested in this Dam ImprovementProgram over the next ten years. The nexttwo years will also see the completion of amajor upgrade to the capacity of theWaranga Western Channel in the Boortarea. This upgrade will enable theexpansion of high value horticulturalplantings in this area.

Generating water savings for theenvironment is also expected to be an areaof major future capital expenditure forGoulburn-Murray Water, in partnershipwith Government. It is expected thatinvestigations currently in progress willenable negotiations on a range of potentialwater savings investments to be finalisedover the next 12 months. When the scopeand timing of these projects are betterdefined, the capital program will be revisedappropriately.

A well targeted,strategic assetmanagementprogram isessential in orderto ensure continuityof services tocustomers

31

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Profit and Loss Summary-Consolidated (Values expressed in $ 2004/05 except 2003/04 year)

Revised Forecast Budget 2003/04 2004/05

$’000s $’000s

Revenue Rates - water and drainage 50,780 59,791 Sales & Consumptive charges 16,470 14,391 Bulk water charges - Goulburn-Murray Water N/A N/A Bulk water charges - other RWAs 3,154 3,235

- RUWAs (ex NMUs) 1,894 1,965Hydroelectricity 443 416Recreation & Associated Storage Revenue 1,792 1,796MDBC contract 16,788 17,446Tungamah Project Contract 0 0Government services contract 5,269 6,026Government grants - other 2,474 7,932Recoverable Works 1,635 697Interest - customers 188 270

- investments 100 260Other Revenue 4,965 4,956Sale of assets 602 465Abnormal Revenue - Assets Received Free 0 0

Total Revenue 106,554 119,646

ExpenditureOperations 22,720 29,996Maintenance 18,477 19,902Management and administration 9,893 10,011Research and development 1,069 851Bulk water charges - Goulburn-Murray Water N/A N/AMDBC contribution - operating 6,065 6,392

- capital 3,050 3,143MDBC contract 16,032 16,692Tungamah Project contract 0 0Government services contract 5,136 5,491Finance charges 172 195Interest expense 800 2,059WDV of disposed assets 602 465WDV of rationalised assets 2,000 2,000Dam Improvement Annuity 1,390 840Renewals annuity 18,273 20,165

Total Expenditure 105,679 118,202

Renewals Profit/(Loss) before payment to consolidated fund 875 1,444

Payment to consolidated fund 385 385

Renewals Profit/(Loss) 490 1,059

Add back renewals annuity 18,273 20,165Add back dam improvement annuity 1,390 840Deduct depreciation 27,500 29,900Deduct Dam Safety Expenditure Funded by DIP Contribution 2,078 1,741Deduct asset rationalisation 775 917

Adjusted Profit(Loss) (10,200) (10,494)

32

33

Pricing Proposals

Price levels for 2004/05 havebeen determined on the basis ofthe following pricing principles:

Consistent with Goulburn-Murray Water'sfinancial objectives, prices set for eachservice must achieve long-term businessviability, ie:

• Ensure full cost-recovery

• Are consumption or usage-based

• Promote efficient and effectivedelivery of service, ie the removal ofcross subsidies not consistent withthis principle

• Promote stability

• Hedge against unforseen /unpredictable risk

• Maintain the financial capacity todeliver price-efficient services overthe long-term

In the case of bulk water services:• price will maintain self-sufficiency

• price will recover annualised costsbased on a rolling 5-year forecast

• a renewals annuity will be included inthe 5-year forecast

• the opening operating bank balanceof the 5-year forecast period isincluded, so that the 5-year forecastof costs is reduced in the case of apositive cash balance, or is increasedin the case of an overdraft cashbalance

• the price will be set so that the costof bulk water supply will be allocatedto bulk water customers on thefollowing basis:

• in accordance with the bulkentitlement order where one exists,

Pricing Principles• where no bulk entitlement order

exists but an equivalent can bedetermined, then on the basis ofthe equivalent

• where no bulk entitlement exists,and no equivalent can bedetermined, then on the basis ofprior usage

In the case of district anddiversion services:• price will maintain self-sufficiency

• price will recover annualised costsbased on a rolling 5-year forecast

• a renewals annuity will be included inthe rolling 5-year forecast

• an overdraft repayment component,calculated at 10% of the prior yearoperating bank closing balance, willbe included in the rolling 5-yearforecast

• the water delivery price will be basedon domestic & stock, water right, andlicensed water volumes plus a ten-year rolling average of sales volume

Prices may be set above the minimumlong-term business viability levelcalculated in accordance with theprinciples above, in consultation withWater Service Committees.

For the 2004/05 financial year, Goulburn-Murray Water has also considered a rangeof variations to these principles to providesome short-term price relief to customerswho are experiencing very difficultcircumstances. These variations are stillconsistent with the overall objective of fullcost-recovery over a rolling 5-year forecastperiod.

34

Goulburn-Murray Water is stronglycommitted to effective customerinvolvement in decision making,particularly in relation to price and serviceissues. The organisation's focus oncontinuous improvement has also seensteady improvement in the nature andextent of Water Services Committee andthe wider customer groups' involvement inthese issues.

Against a background of upwards pressureon prices and lower margins in a numberof irrigated farm industries, it was seen asparticularly important that the irrigationcommunity be given the opportunity togain a good understanding of pricingproposals and to comment on theseissues.

Water Services Committeeinvolvement is extensive, and thekey interactions have been asfollows:

• September 2003Water Services Committees reviewed2004/05 capital, operation andmaintenance budget/programproposals

• January - February 2004Water Services Committee FinanceSub-Committees reviewed andscrutinised preliminary pricingmodels (minimum of two meetings ofeach sub-committee)

• February - March 2004Full Water Services Committeemeetings considered pricingrecommendations

• March 2004Water Services Committeeworkshops, where Water ServicesCommittee representatives presentedtheir Business Plans to Goulburn-Murray Water Board and to otherWSCs. Workshop discussions

included identification and sharing ofpricing issues and pressures in eachArea and wider customer consultationproposals.

• March - April 2004Water Services Committeeconsultation with customers

- Area WSCs published specialpricing newsletters and held aseries of public meetings.

- Diversions WSCs sent eachcustomer a letter explainingpricing issues and seekingfeedback.

• April 2004

Water Services Committeerepresentatives met with Goulburn-Murray Water Board toprovide feedback on publicconsultation on pricing proposals andto develop possible options toaddressing pricing concerns.

Consultation on pricing hasraised the following issues:

- A number of gravity irrigators fromthe dairy sector have indicated astrong desire for zero or low priceincreases in recognition of theirreduced ability to pay as a result oflower returns and the financialburden from debt accumulatedduring the 2003/03 drought.

- There was no widespreadresponse from customers that thelevels of service or asset renewalsproposed were inappropriate.

- Very little feedback was receivedfrom diversion services customersto pricing proposals for theseservices.

Goulburn-Murray Wateris stronglycommitted toeffectivecustomerinvolvement in decisionmaking,particularly in relation to price andservice issues

Pricing Consultation

Pricing Proposals

35

Pricing Summary For Bulk WaterPrice

% Unit 2003/04 2004/05Change $ $

Murray System

Business Cost (0.2)% ML 6.64 6.63

Full Economic Cost (0.01)% ML 15.94 15.92

Goulburn System

Rural (Usage) 6.1% ML 5.55 5.89

Rural (Entitlement)

- Source Charge 5.5% ML 6.35 6.70

- Delivery Charge 0.0% ML 0.14 0.14

River Urbans (Usage) 1.0% ML 18.65 18.83

Channel Urbans (Entitlement)



Goulburn Basin

River Urbans (Entitlement)



Campaspe System

River Urbans (Entitlement) 10.4% ML 33.16 36.60

Pricing Summary For Gravity Irrigation2003/04 2004/05

Additional Entitlement Infrastructure Infrastructure Additional Entitlement Infrastructure InfrastructureService Service Storage Access Usage Service Service Storage Access Usage

Area Fee Point Fee Fee# Fee# Fee^ Fee Point Fee Fee# Fee# Fee^

$/property $/Add. $/ML Ent. $/ML Ent. $/ML Used $/Property $/Add. $/ML Ent. $/ML Ent. $/ML UsedService Point Service Point

Shepparton 100.00 50.00 6.15 23.22 5.62 100.00 50.00 6.55 28.70 6.37

Central Goulburn 100.00 50.00 6.15 19.71 9.85 100.00 50.00 6.55 23.74 7.49

Rochester 100.00 50.00 6.15 17.91 8.96 100.00 50.00 6.55 21.77 7.08

Campaspe 100.00 50.00 6.15 22.20 11.10 100.00 50.00 6.55 31.55 8.66

Pyramid-Boort 100.00 50.00 6.15 13.10 6.55 100.00 50.00 6.55 16.42 5.81

Murray Valley 100.00 50.00 7.56 15.96 7.98 100.00 50.00 7.53 21.19 6.97

Torrumbarry 100.00 50.00 7.56 16.26 8.13 100.00 50.00 7.53 19.46 6.99

# Charge applies to Water Right, and Domestic and Stock entitlement volumes.

^ Charge applies to all water delivered under Water Right, Domestic and Stock, and Sales.

36

Appendix AGoulburn-Murray Water Business StructureFigure A.1 shows the Bulk Water Services business division structure, which comprises three service segments and 29separate bulk water services.

Figure A.1 – Bulk Water Services Business Structure

Segment

Category

• Services

Bulk Water

Bulk Water Supplies

• Murray Basin• Ovens Basin• Broken Basin• Goulburn Basin• Campaspe Basin• Loddon Basin

Salinity Mitigation

• Mildura-Merbein Groundwater Interception Scheme• Barr Creek - Lake Tutchewop Salt Interception Scheme• Woorinen Drainage Scheme

Hydro Electricity

• Dartmouth• William Hovell• Yarrawonga• Eildon• Eildon Pondage• Cairn Curran

Recreation and Public Use

Commercial Leases*

Boating

• Eildon Houseboats• Other Boating*

Recreation Facilities*

*These categories/services are further divided into a number of smaller management units

Figures A.2 and A.3 show the District Services Division and Diversions Services Division business structures, whichcomprise a total of 41 separate rural water services. The Water Services Committee relevant to each service is also shown.All rural water services met the target of pricing for full cost-recovery by 2000/01. Achievement of this target does notmean that prices will not change in future. Prices will move in response to future changes in revenue, or expendituresrequired to operate, maintain and replace or retire assets.

Figure A.2 – District Services Business Division Structure

Segment Water Services Committee

Category

• Services

Irrigation and Drainage

Gravity Irrigation Supply

• Shepparton Shepparton• Central Goulburn Central Goulburn• Rochester Rochester-Campaspe• Campaspe Rochester-Campaspe• Pyramid-Boort Pyramid-Boort• Murray Valley Murray Valley• Torrumbarry Torrumbarry

Pumped Irrigation Supply

• Nyah Torrumbarry• Tresco Torrumbarry• Woorinen Torrumbarry

Primary Surface Drainage

• Shepparton Shepparton• Central Goulburn Central Goulburn• Rochester-Campaspe Rochester-Campaspe• Pyramid-Boort Pyramid-Boort• Murray Valley Murray Valley• Torrumbarry Torrumbarry• Tyntynder Torrumbarry

Community Surface Drainage

• Shepparton Shepparton• Central Goulburn Central Goulburn• Rochester-Campaspe Rochester-Campaspe• Pyramid-Boort Pyramid-Boort• Murray Valley Murray Valley• Torrumbarry Torrumbarry

Sub Surface Drainage

• Shepparton Shepparton• Central Goulburn Central Goulburn• Rochester Rochester-Campaspe• Campaspe West Rochester-Campaspe• Murray Valley Murray Valley• Nyah Torrumbarry• Tresco Torrumbarry• Woorinen Torrumbarry

Domestic and Stock

• Normanville Loddon Waterworks• East Loddon Loddon Waterworks• West Loddon Loddon Waterworks• Tungamah Tungamah

Flood Protection

• Loch Garry Loch Garry

37

Figure A.3 – Diversion Services Business Division Structure

Segment Water Services Committee

Category

• Services

Surface Water Diversions

• Goulburn Regulated Goulburn Diversions• Goulburn Unregulated Goulburn Diversions• Murray Regulated Murray Diversions• Murray Unregulated Murray Diversions

Groundwater Diversions

• Groundwater Diversions Regional Groundwater

38

39

40 Casey Street, PO Box 165, Tatura Victoria 3616(DX 32951)Telephone: (03) 5833 5500Facsimile: (03) 5833 5501Email: [email protected]: www.g-mwater.com.au

Other Offices:

Bulk Water Services

GoulburnGoulburn Headworks Manager - Darren NabbsLake Eildon, High Street, Eildon 3713

MurrayMurray Headworks Manager - David JefferyHume Dam, Private Bag 2, Wodonga 3691

LoddonLoddon Headworks Manager - Ivan SmithCairn Curran Reservoir, Maldon 3463

District Services

Shepparton AreaArea Manager - Phil Hoare21 Wheeler Street, Shepparton 3630

Central Goulburn AreaArea Manager - Graham Smith40 Casey Street, Tatura 3616

Rochester-Campaspe AreaArea Manager - Jeff Parry49 High Street, Rochester 3561

Pyramid-Boort AreaArea Manager - David Kent24 Barber Street, Pyramid Hill 3575

Murray Valley AreaArea Manager– Kevin PreeceDillon Street, Cobram 3644

Torrumbarry AreaArea Manager - Lester HawKoondrook Road, Kerang 3579

Diversions Services

Shepparton21 Wheeler Street, Shepparton 3630

CobramDillon Street, Cobram 3644

Rochester49 High Street, Rochester 3561

KerangKoondrook Road, Kerang 3579

NewlynMidland Highway, Newlyn North 3364

Wangaratta“Tara Court” Ford Street, Wangaratta 3677

Natural Resource Services

TaturaManager Natural Resource Tatura - Terry Hunter40 Casey Street, Tatura 3616

KerangManager Natural Resource Kerang - John GinnivanKoondrook Road, Kerang 3579

Corporate Directory

Pulps used in the manufacture of Impress are bleached using ECF (Elemental Chlorine Free)technology, which eliminates environmentally harmful liquid emissions.

40

Corporate Plan2004/05 to 2008/09

Delivering sustainable water serviceswww.g-mwater.com.au

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