We are pleased to submit Yarra Valley Water’s 2015-16
From a planning perspective, our approach in 2015-16
Annual Report.
was guided by the policy direction emerging from the
State Government’s Water for Victoria Discussion Paper.
In 2015-16, we continued to execute against our 2020
We are long-term advocates of communities being at the
Strategy. The strategy is anchored in our purpose statement:
centre of water policy and we are firmly committed to
responding to climate change by adopting a restorative
Our purpose is to provide exemplary water and sanitation
environmental approach.
services that contribute to the health and wellbeing of
current and future generations.
We remain committed to driving extraordinary performance
by further developing a vibrant organisational culture with
Broader coverage of our 2020 Strategy initiatives and
highly engaged staff. In February, we completed the Aon
our business activities over the past year can be found
Hewitt Employee Engagement Survey and achieved an overall
in the 2015-16 Strategic Commitments section of this
engagement score of 80%, placing us in the top quartile of
Annual Report.
all organisations who use this survey and significantly higher
than the Australian average.
This year, Yarra Valley Water has delivered $20 million savings
in operating costs as part of our ongoing commitment to
A new Yarra Valley Water Board was appointed on 1 October
making every cent count. We believe that, by improving our
2015. We would like to offer our thanks to the previous Board
own productivity, we can continue to support the standards
for its high-quality stewardship. The results of its efforts
of living enjoyed by current and future generations in Victoria.
can be seen in the ongoing performance of Yarra Valley Water.
The new Board has rapidly picked up its responsibilities and
We delivered a better than targeted financial result in 2015-
looks forward to guiding the organisation to even higher
16. In relation to revenue, this was mainly due to higher
levels of performance.
water and sewer usage charges from increased customer
demand, additional service charges from customer growth
We also wish to pay tribute to and thank the Yarra Valley
and higher trade waste revenue from increased volumes and
Water staff for their support, efforts and achievements
the identification of new trade waste customers. Additional
over the past year. It has been a strong year of results
revenue was also delivered from development related
and sets a great platform for the achievement of the
activities including new customer contributions and sale
goals the organisation has set itself for the next year.
of plumbing related products and services.
In accordance with the Financial Management Act 1994,
From an expenditure perspective, we incurred higher
we are pleased to present Yarra Valley Water’s Annual
wholesale charges as a result of increased customer demand,
Report for the year ending 30 June 2016. It is compliant
impairment of land and buildings and additional operating
with all statutory reporting requirements.
costs associated primarily with a 12% increase in emergency
civil maintenance volumes largely associated with the warm,
dry weather experienced over the year. This increase, together
with transitional issues associated with moving to a new
maintenance contract, contributed to a temporary increase
in our response times in addressing network faults. While
this was disappointing, overall customer satisfaction was
not impacted and a recovery in response times was evident
towards the end of the financial year.
Sue T O’Connor
Savings were achieved in finance charges due to lower
borrowing levels (as a result of lower capital expenditure)
and the effective management of the debt portfolio to take
advantage of market conditions to reduce finance charges
in the short and long-term.
In 2016, Yarra Valley Water was included in the Australian
Centre of Corporate Social Responsibility (ACCSR) CSR
Top 10 for the first time. This recognises those organisations
with the strongest corporate social responsibility capabilities
Patrick J McCafferty
based on the ratings of their employees against various
Managing Director
criteria. This ranking is included within the ACCSR’s annual
‘State of CSR report’, which is the largest ongoing research
study of CSR capabilities, practices and trends in Australia
and New Zealand.