Strategic Business Plan Sewerage Services

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Gundagai Shire Council

Strategic Business Plan: Sewerage
Services
Draft 1.5

May 2009
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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Executive Summary
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This document is the sewerage business plan for the Gundagai sewerage system. The plan
recognises that the sewerage system is currently operational and delivers valuable services to the
Gundagai community despite being at an advanced asset age.

This plan represents a starting point from which future sewerage business planning will be based.

The plan recommends that the key initiatives for the sewerage service is to establish written
policies and procedures to define how various critical components of the service are provided,
objectively assess the condition of all assets, identify what works are required in the future and in
what order, and then proceed to deliver those works.

The plan develops the financial component that will achieve the funding considered essential for
sustainable service provision.

The plan identifies the following critical operational issues that need to be evaluated and resolved
promptly for Council and senior officers are to fulfil their statutory obligations and responsibilities
under various Acts and regulations:

 The plan recognises that while the treated effluent reuse scheme maximises the value of reuse
  water, there appear the be insufficient signage warning users of the nature of the scheme and
  the importance of avoiding direct contact with the liquid or ground surface within quarantine
  periods.

    The plan proposes actions to resolve this risk, and will require commitment by senior managers
    to ensure that new operations systems are fully implemented and maintained.

 The plan recognises that the sewage treatment plant has adequate capacity, is in reasonable
  condition for its age, is satisfying current licence conditions according to performance results,
  and could be managed carefully to continue in service for an extended period in order to permit
  plant replacement funding to be progressively accumulated;

    The plan notes that partially treated effluent from the maturation ponds of the sewage treatment
    plant may be seeping to groundwater systems within the prior river bed gravels. Senior
    management are implementing a plan that encourages ongoing due diligence in clarifying and
    minimising this risk by providing a lined storage lagoon.

 There is no trade waste policy, nor are there any pre-treatment systems in non-residential
  properties to treat trade waste prior to discharge to sewer. Lack of a formal trade waste policy
  and user agreement system may prove to be a problem when and if council wants to obtain
  capital works co-funding from the State Government;




 Alf Grigg & Associates                                                                                         2
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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    The reticulation sewerage system has been the subject of a limited CCTV inspection program as
    part of the 2006-07 fair valuation programme. The plan proposes undertaking future CCTV
    inspections of the gravity sewer system based on a combination of sewer function and
    importance, and known service history.

 Some asset management information exists. The plan proposes duplication of records and
  implementation of a formal asset management system.

    There is no Section 64 developer contributions policy or system. The issue is understood to be a
    pre-condition for any capital works co-funding from the State Government, and is proposed to
    be addressed in the future when prerequisite planning instruments are completed.

A summary of the key actions and targets proposed by this plan are provided in Appendix A.




 Alf Grigg & Associates                                                                                         3
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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Table of Contents
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Executive Summary..........................................................................................................................................2
1. Introduction .............................................................................................................................................8
  1.1     Purpose of this Plan ..............................................................................................................................8
  1.2     Acknowledgements ...............................................................................................................................8
  1.3     Disclaimer ..............................................................................................................................................9
2. Operating Environment Review............................................................................................................. 13
  2.1     Introduction ........................................................................................................................................ 13
  2.2     Legislative Framework ....................................................................................................................... 13
  2.3     Corporate Policies and Objectives..................................................................................................... 13
    2.3.1      Policies ....................................................................................................................................... 13
    2.3.2      Objectives................................................................................................................................... 14
3. Service Provision Review ...................................................................................................................... 15
  3.1     Level of Service .................................................................................................................................. 15
    3.1.1      Current Position ......................................................................................................................... 15
    3.1.2      Future Position........................................................................................................................... 19
  3.2     Service Delivery .................................................................................................................................. 19
    3.2.1      Current Position ......................................................................................................................... 19
    3.2.2      Future Position........................................................................................................................... 19
  3.3     Customer Service – Areas Serviced .................................................................................................. 19
    3.3.1      Current Position ......................................................................................................................... 19
    3.3.2      Future Position........................................................................................................................... 20
  3.4     Customer Service – Demand Management ..................................................................................... 20
    3.4.1      Current Position ......................................................................................................................... 20
    3.4.2      Future Position........................................................................................................................... 20
  3.5     Customer Service – Service Pricing .................................................................................................. 20
    3.5.1      Current Position ......................................................................................................................... 20
    3.5.2      Future Position........................................................................................................................... 20
  3.6     Customer Service – Customer/Community Involvement................................................................. 21
    3.6.1      Current Position ......................................................................................................................... 21
    3.6.2      Future Position........................................................................................................................... 21
  3.7     Customer Service – Environment Protection.................................................................................... 21
    3.7.1      Current Position ......................................................................................................................... 21
    3.7.2      Future Position........................................................................................................................... 21
  3.8     Asset Management – Operations...................................................................................................... 21
    3.8.1      Current Position ......................................................................................................................... 21
    3.8.2      Future Position........................................................................................................................... 22
  3.9     Asset Management – Maintenance .................................................................................................. 22
    3.9.1      Current Position ......................................................................................................................... 22
    3.9.2      Future Position........................................................................................................................... 22
  3.10 Asset Management – Capital Works - General................................................................................. 23
    3.10.1     Current Position ......................................................................................................................... 23
    3.10.2     Future Position........................................................................................................................... 23
  3.11 Asset Management – Capital Works - Sewerage ............................................................................. 23
    3.11.1     Current Position ......................................................................................................................... 23
    3.11.2     Future Position........................................................................................................................... 23
  3.12 Human Resources.............................................................................................................................. 24


 Alf Grigg & Associates                                                                                                                                        4
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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    3.12.1
    3.12.2
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              Current Position ......................................................................................................................... 24
              Future Position........................................................................................................................... 24
  3.13 Finance ............................................................................................................................................... 24
    3.13.1
    3.13.2
              Current Position ......................................................................................................................... 24
              Future Position........................................................................................................................... 25
4. Mission Statement................................................................................................................................ 26
  4.1    Availability ........................................................................................................................................... 26
  4.2    Wastewater Quality ............................................................................................................................ 26
  4.3    Response Time to Failure .................................................................................................................. 26
  4.4    Customer Complaints......................................................................................................................... 26
5. Customer Service Plan.......................................................................................................................... 27
  5.1    Review of Level of Service ................................................................................................................. 27
    5.1.1     Objective .................................................................................................................................... 27
    5.1.2     Performance Target................................................................................................................... 27
    5.1.3     Strategy ...................................................................................................................................... 27
    5.1.4     Actions........................................................................................................................................ 27
    5.1.5     Resources Required .................................................................................................................. 27
    5.1.6     Performance Indicators............................................................................................................. 27
  5.2    Areas Serviced.................................................................................................................................... 27
    5.2.1     Objectives................................................................................................................................... 27
    5.2.2     Performance Target................................................................................................................... 28
    5.2.3     Actions........................................................................................................................................ 28
    5.2.4     Resources Required .................................................................................................................. 28
    5.2.5     Performance Indicators............................................................................................................. 28
  5.3    Demand Management ....................................................................................................................... 28
    5.3.1     Objective .................................................................................................................................... 28
    5.3.2     Performance Target................................................................................................................... 28
    5.3.3     Strategy ...................................................................................................................................... 28
    5.3.4     Actions........................................................................................................................................ 28
  5.4    Service Pricing (Including Developer Charges) ................................................................................. 29
    5.4.1     Objective .................................................................................................................................... 29
    5.4.2     Performance Target................................................................................................................... 29
    5.4.3     Strategy ...................................................................................................................................... 29
    5.4.4     Actions........................................................................................................................................ 29
  5.5    Customer and Community Consultation in Decision Making .......................................................... 29
  5.6    Environmental Protection and Sustainable Development............................................................... 29
    5.6.1     Objective .................................................................................................................................... 29
    5.6.2     Performance Target................................................................................................................... 30
    5.6.3     Strategy ...................................................................................................................................... 30
    5.6.4     Actions........................................................................................................................................ 30
    5.6.5     Resources Required .................................................................................................................. 30
    5.6.6     Linkages ..................................................................................................................................... 30
    5.6.7     Performance Indicators............................................................................................................. 30
6. Asset Management Plan....................................................................................................................... 31
  6.1    Operations Plan .................................................................................................................................. 31
    6.1.1     Objective .................................................................................................................................... 31
    6.1.2     Performance Target................................................................................................................... 31
    6.1.3     Strategy ...................................................................................................................................... 31
    6.1.4     Actions – Specific Projects........................................................................................................ 31

 Alf Grigg & Associates                                                                                                                                        5
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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  6.2
    6.2.1
    6.2.2
    6.2.3
    6.2.4
    6.2.5
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          Maintenance Plan .............................................................................................................................. 37
                Objective .................................................................................................................................... 37
                Performance Target................................................................................................................... 37
                Strategy ...................................................................................................................................... 37
                Actions – Specific Projects........................................................................................................ 37
                Performance Indicators............................................................................................................. 38
    6.2.6       Outputs....................................................................................................................................... 38
  6.3     Capital Works Plan ............................................................................................................................. 39
    6.3.1       Rehabilitation............................................................................................................................. 39
    6.3.2       Replacement.............................................................................................................................. 39
    6.3.3       New Works ................................................................................................................................. 39
    6.3.4       Asset Disposal ........................................................................................................................... 39
7. Human Resource Plan .......................................................................................................................... 40
  7.1     Human Resource Planning Objective................................................................................................ 40
    7.1.1       Performance Target................................................................................................................... 40
    7.1.2       Strategy ...................................................................................................................................... 40
    7.1.3       Actions........................................................................................................................................ 40
    7.1.4       Performance Indicators............................................................................................................. 40
  7.2     Position Analysis................................................................................................................................. 40
    7.2.1       Future Actions............................................................................................................................ 42
  7.3     Human Resources Audit .................................................................................................................... 42
    7.3.1       Future Actions............................................................................................................................ 42
  7.4     Resource Development...................................................................................................................... 44
    7.4.1       Future Actions............................................................................................................................ 44
8. Capital Works and Financial Plans ....................................................................................................... 46
  8.1     The purpose of financial planning..................................................................................................... 46
  8.2     Planning approach ............................................................................................................................. 46
  8.3     Planning timeframe............................................................................................................................ 47
    8.3.1       Growth forecasts ....................................................................................................................... 47
  8.4     Capital Works Plan ............................................................................................................................. 47
  8.5     Future operating costs ....................................................................................................................... 49
  8.6     Financial modelling ............................................................................................................................ 49
    8.6.1       Key assumptions ....................................................................................................................... 49
    8.6.2       Modelling constraints ................................................................................................................ 50
    8.6.3       Modelling results ....................................................................................................................... 50
  8.7     Proposed price path ........................................................................................................................... 54
9. References............................................................................................................................................ 55
Appendix A:     Summary of key actions and targets....................................................................................A-1
Appendix B:     Detailed Capital Works Plan................................................................................................ B-1
Appendix C:     Detailed FINMOD Outputs ................................................................................................... C-1




 Alf Grigg & Associates                                                                                                                                      6
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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Table of References to DWE Guidelines
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The following table cross references items in the report with Appendix A of the Department of
Water and Energy document Guidelines for Best-practice Management of Water Supply and
Sewerage (August 2007).

DWE Appendix A Check List Item                                                                           Addressed in this report in section
1. Executive Summary                                                                                     Executive summary
2. Operating Environment Review                                                                          2
3. Performance Indicators                                                                                5.1.6, 5.2.6, 5.3.7, 5.4.6, 5.6.7
4. Levels of Service (LOS)                                                                               3.1.1 & 3.1.2
5. Service delivery                                                                                      3.2.1 & 3.2.2
6. Customer Service Plan                                                                                 3.3 – 3.7 inclusive, Section 5.0
6.1 Unserviced areas                                                                                     5.2
6.2 Pricing, Developer Charges, Trade Waste                                                              5.4
6.3 Environmental Management                                                                             3.7 & 5.6
6.4 Integrated Water Cycle Management                                                                    3.7.1
6.5 Demand Management                                                                                    5.3
6.6 Drought Management                                                                                   3.7.1
6.7 Community Consultation                                                                               5.5 & elements in most sections.
6.8 Occupational Health & Safety                                                                         2.3.1 & 7.0
7. Asset Management Plan                                                                                 6.0
8. Human Resources Plan                                                                                  7.0
9. Action Plan                                                                                           Appendix A




 Alf Grigg & Associates                                                                                                                        7
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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1. Introduction

1.1 Purpose of this Plan
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Strategic Business Plans are intended to govern the long term operation of business entities within
local councils. These plans form a companion to a council’s Management Plan, which detail the
proposed activities of the council over the relatively short timeframe of three years.

This plan is designed to assist in the operation of Gundagai Shire Council’s sewerage business.

Strategic business plans are a particularly useful tool for sewerage businesses for the following
reasons:
 Sewerage businesses are very capital intensive. Assets are created and renewed over timeframes
   of 25 years to a century,. The business needs be able to accumulate funds and service debt in a
   way that, as far as possible, minimises costs borne by the community and preserves
   intergenerational equity.
 Sewerage businesses provide an essential service which reduces risks to public health and the
   environment. The business needs to be able to respond changes to the standards set by
   regulators in a way that reflects the financial realities of a business dependent on high cost, long
   life assets.
 The NSW Department of Water and Energy requires such plans be created to demonstrate the
   long-term viability of the business. Once this has been achieved, the business may qualify to
   issue dividends to the business owner, and/or qualify for financial support for new capital
   works.

This strategic business plan addresses the long-term operation of the business by:
    Considering the current operating environment of the business (section 2)
    Reviewing the current capability of the business to provide services to the community, and
        proposing a future level of service (sections 3, 4 and 5)
    Reviewing the adequacy of the current asset base to provide the current and proposed
        future levels of service, and identify upgrades necessary to achieve or maintain the future
        level of service (section 6).
    Reviewing the human and financial resources required for the business to perform
        (sections 7 and 8)
    Identifying performance indicators to track progress against the objectives of the business.

A map of the Shire is provided at Figure 1. A plan showing the existing sewerage network is shown
at Figure 2.

1.2 Acknowledgements
This plan has been prepared by Alf Grigg, Phil Hawley and Michael Cuthbert, engineering
consultants engaged by Gundagai Shire Council to assist them in this process.


 Alf Grigg & Associates                                                                                         8
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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However the development of the plan has extensively relied on knowledge and input of the staff of
Gundagai Shire Council, particularly Paul Luff and Glen Moore. The plan is a living document, and
Gundagai Shire Council will be undertaking to implement the plan, and progressively update and
modify the plan as knowledge improves and stakeholder requirements change.

1.3 Disclaimer
This document has been prepared for a particular purpose, using information made available by
the client in accordance with the client’s instructions. Users of this document should note the
assumptions and approximations used. Any use of the document outside of the stated purpose is at
the user’s risk.




 Alf Grigg & Associates                                                                                         9
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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Figure 1: Gundagai Shire Council Local Government Area


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 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
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                                                                                                               Michael Cuthbert, Engineering Consultant
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D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Draft 1.5, May 2009




                                                                                                               Alf Grigg & Associates
                                                                                                                                                          Gundagai - South
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Gundagai Shire Council




                                                                                                               Phil Hawley & Associates
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                                                                                                                                                          Projection: GDA 1994
                                                                                                                                                                 Zone 55




                                                                                                                                     12
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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2. Operating Environment Review

2.1 Introduction
                                                                              D
Gundagai Shire Council is constituted as a sewerage authority under the provisions of the Local
Government Act 1993. The Minister for Water and Energy is responsible to administer the relevant
sections of the Act, and provides technical and financial assistance through the Country Towns
Water Supply & Sewerage Programme.

The first installation of the reticulated sewerage system for Gundagai Shire began in the 1930s.

Sewage is collected in a series of gravity catchments, two on either side of the Murrumbidgee River,
that pump in series from the urban catchments to a sewage treatment plant located on the flood
plain adjacent to the river and relatively close to the centre of the urban area.

2.2 Legislative Framework
In managing its sewerage system, Council must work within a complex legislative framework. It is
not the intention for this business plan to describe the Council’s responsibilities under the various
Acts and Regulations, but to list the legislation. It is the responsibility of the Councillors and the
staff to inform themselves of the requirements of the legislation and their relevant responsibilities.

The major Acts that control the sewerage system obligations include:
    Local Government Act 1993,in particular Sections 56 to 66.
    Protection of the Environment (Operations) Act 1997
    Environmental Planning & Assessment Act 1979
    Catchment Management Act 1989
    Soil Conservation Act 1938
    Public Health Act 1991
    Water Act 1912
    Water Management Act 2000
    Independent Pricing & Regulatory Tribunal Act 1992
    Occupational Health & Safety Act 2000

2.3 Corporate Policies and Objectives

2.3.1 Policies
Gundagai Shire Council has adopted the following Policies in respect of the Gundagai sewer
system:
     General: To provide an adequate, reliable sewer system to the Gundagai sewered area at a
       rate and cost that maintains the good amenity of the town area.




 Alf Grigg & Associates                                                                                         13
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


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      



      
                                                                              D
              Customer relations: Council gives a high priority to customer satisfaction. All complaints
              shall be investigated promptly and the customer shall be advised of the outcome. The
              customer shall be advised what further action he/she can take if still not satisfied.
              Environmental Management: All works shall be undertaken in an environmentally
              responsible manner. Environmental assessments shall be completed prior to any
              construction projects. Environmental Management plans shall be developed for all
              construction works. General Environmental Management plans shall be used for all
              maintenance works.
             Financial Management: Council’s finance staff shall undertake the accounting requirements
              for the Sewer Fund at appropriate fees for service. The fees are set in the Management Plan.
             Human Resources: Adequate numbers of properly trained and competent staff shall be
              employed to ensure that the sewage treatment plant and reticulation system can be properly
              run and maintained.
             Occupational Health and Safety: The occupational health and safety of all persons
              employed within and those visiting the organisation are considered to be of the utmost
              importance. Resources in line with the importance attached to occupational health and
              safety will be made available to comply with all relevant Acts to ensure that the workplace is
              safe and without risk to health.
             Sewer Connections: A fee as set in the Council’s annual Management Plan is to be charged
              for connection to the existing sewer reticulation. Where a gravity sewer main extension is
              required a fee may be charged for that extension depending upon the rateability of the land
              involved.
             Sewer Service Pricing: Sewer services will be priced to encourage the efficient use of he
              service and to discourage wastage. A pricing tariff for non-residential users in accordance
              with IPART principles will be adopted. The price amounts will be established in the annual
              Management Plan.

2.3.2 Objectives
                             To provide and maintain a sewerage system that meets the needs of the Gundagai
                              community;
                             To have a charging system that reflects equity in access and usage, and encourages
                              efficiency in user behaviour and operating practices;
                             To manage sewerage system assets that optimises service life and operating costs
                              consistent with rising regulatory requirements.




 Alf Grigg & Associates                                                                                         14
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
3. Service Provision Review
                                                                              D
The current and future service provisions for key results areas are as set out below:

3.1 Level of Service

3.1.1 Current Position
There are currently two separate maintenance teams that undertake water supply and sewerage
system maintenance independently of the other. Currently, there are no operational situations
where the sewerage maintenance team takes sewerage maintenance equipment to a water
maintenance project.

If such practices commence in the future, reliable safeguards will need to be established to ensure
that tools, equipment, clothing and boots utilised on a sewer blockage or maintenance project are
not used on water supply works.

The sewage reticulation system is an ageing system of assets that is approaching a life cycle where
blockages     and      collapses   could     become      more       frequent    without       timely
repair/rehabilitation/replacement.

Asset rehabilitation is proceeding on the basis of the assessment of the service provider rather than
a specialist independent asset expert. Investment decisions do not appear to be based on a total
assessment of condition and functional risk of the asset.

There is no trade waste policy or procedures for acceptance of non-residential wastewater. This
lack of wastewater pre-treatment could result in the State Government declining subsidised
funding for future capital works on the sewage treatment plant.

Service reliability anecdotally appears to be an unknown given that blockages and repairs are not
logged or recorded in a format that would enable accurate review or reporting.

Wastewater quality is a function of the management and performance of the sewage treatment
plant, and is monitored and confirmed by water sampling and analysis conducted by council staff
and external laboratories.

There are no written formal service level policies or standards for level of service. Council
employees understand what should be the preferred standards of level of service yet have no formal
document that can be utilised in responding to consumer requests or complaints.

TBL Performance Reporting
Gundagai Shire Council participates in a performance reporting programme managed by the NSW
Department of Water and Energy. This programme collects statistical information on all non-



 Alf Grigg & Associates                                                                                         15
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
                                                                              D
metropolitan water utilities for the purpose of comparison against each other and major
metropolitan water utilities.

Gundagai Shire Council generally performs well against comparable sewerage utilities. A copy of
the 2006/07 performance report is provided as Figure 3.

The Gundagai Shire sewerage business, when compared to other non-metropolitan utilities, has the
following standout features:

                      1. Low prices. Typical residential bills, usage based charges and developer charges
                         were all less than the statewide median. Most significantly the typical residential bill
                         of $248 is some 40% lower than the median. The non-reporting of developer
                         charges is reflective of the need for the business to prepare a Development Servicing
                         Plan.

                      2. A high proportion of urban properties without a sewerage service. 9% of
                         properties are not provided with sewerage services, compared to the statewide
                         median of 3.7%. Historically this can be related to the topography of the town, which
                         would have made it difficult to service some properties with conventional sewerage.

                      3. A low volume of sewage collected per property. The reported value of 120
                         kilolitres per property per year is less than half of the state median of 230 kilolitres
                         per property per year. This may be related to the low occupancy rates associated
                         with small towns, or possibly related to losses of sewage through cracks and open
                         joins in the reticulation system. The topography of the town (development on steep
                         hills, draining to a large floodplain) may mean that losses are not observed at the
                         surface.

                      4. Extremely constrained finances. The business is characterised by a very low
                         economic real rate of return, high treatment costs per property, and extremely low
                         capital expenditure per property. This is indicative that the business is substantially
                         underfunded.




 Alf Grigg & Associates                                                                                         16
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                                         ra ft
Figure 3: 2006/07 Performance Report

                   Gundagai Shire Council                                                              D        TBL Sewerage Performance
                   SEWERAGE SYSTEM - Gundagai Council has 1 sewage treatment works providing secondary treatment. The system comprises 3,500 EP treatment capacity
                   (Trickling Filter), 5 pumping stations , 3 km of rising mains and 70 km of gravity trunk mains and reticulation. Treated effluent is discharged to land.
                                                                                                                                                                                                      2006/07




                   PERFORMANCE - Residential growth for 2006/07 was 1% which is similar to the statewide median. Gundagai Shire Council complied with 2 out of 4 Best
                   Practice Criteria. The typical residential bill was $248 which was less than the statewide median of $405 (Indicator 12). The economic real rate of return was
                   0.1% which was less than the statewide median (Indicator 46). The operating cost per property (OMA) was $266 which was less than the statewide median of
                   $320 (Indicator 50). Sewage odour complaints were above the statewide median (Indicator 21). Council did not comply with the environmental regulator for
                   effluent discharge. The current replacement cost of system assets was $11M ($12,600 per assessment), cash and investments were $0.1M, debt was nil and
                   revenue was $0.3M (excluding capital works grants).


                   COMPLIANCE WITH BEST-PRACTICE MANAGEMENT GUIDELINES CRITERIA
                   (1) Complete current strategic business plan & financial plan                                                          (2d) Pricing - DSP with commercial developer charges
                   (2)   (2) Pricing - Full cost-recovery, without significant cross subsidies                                Yes         (2e) Pricing - Liquid trade waste approvals & policy
                         (2a) Pricing - Complying Residential Charges                                                         Yes    (3) Complete performance reporting form (by 15 September)          YES
                         (2b) Pricing - Complying non-Residential Charges                                                     Yes    (4) Integrated water cycle management strategy commenced           YES
                         (2c) Pricing - Complying Trade Waste Fees and Charges                                                Yes    COMPLIANCE WITH ALL REQUIRED CRITERIA

                   TRIPLE BOTTOM LINE (TBL) PERFORMANCE INDICATORS                                                                                                   LWU            RANKING           STATEWIDE
                                                                                                                                                                   RESULT                 All           MEDIAN
                                                          NWI No.                                                                                                             200 to 1,500
                                                                                                                                                                                        LWUs
                                                                 1     Population served: 2400                                                                                  Note 1       Note 2     Note 3
                                                          C2     2     Number of connected properties: 880          Number of assessments: 870                       Col 1       Col 2       Col 3      Col 4
                                        CHARACTERISTICS




                                                                 3     Number of residential connected properties: 800
                    UTILITY




                                                                 4     New residences connected to sewerage (%)                                                       1.0           4          3         1.2
                                                          A5     5     Properties served per kilometre of main                                                        12                                 40
                                                                 6     Volume of sewage collected (ML)                                                                110                               3,600
                                                                 7     Renewals expenditure (% of current replacement cost of system assets)                          0.0           2          2         0.0
                                                                 8     Employees per 1000 properties                                                                  2.3           3          4         1.6
                                                          P3           Description of residential tariff structure:    access charge per property; independent of land value (Note 5)
                                    BILLS - 2007/08
                                     CHARGES &




                                                          P3.3   11    Residential access charge / assessment ($)                                                    248          1            1         405
                                                          P4     12    Typical residential bill / assessment ($) (2006/07 values in Table 7)                         248          1            1         405
                                                                 13    Typical developer charge / equivalent tenement ($)                                                                               3,900
                                                                 14    Non-residential sewer usage charge (c/kL)                                                     130          2            2         90
                                                                 16    Urban properties without reticulated sewerage service (%)                                      9.1           3          3         3.7
                    SOCIAL

                                        HEALTH




                                                          E3     17    Percent of sewage treated to a tertiary level (%)                                                                                 82
                                                          E4     18    Percent of sewage volume treated that was compliant (%)                                        100           1          1         93
                                                          E5     19    Sewage treatment works compliant at all times                                                 1 of 1

                                                          C4  21       Odour complaints per 1000 properties                                                           1.1           4          4         0.4
                                        SERVICE LEVELS




                                                          C7  22       Service complaints per 1000 properties                                                                                             9
                                                              23       Customer interruption frequency per 1000 properties                                             0            1          1          0
                                                          C11 23a      Average break/choke repair time (hours)                                                         0            1          1          2
                                                              25       Total days lost (%)                                                                            0.0           1          1         3.2
                                                          W12    26    Volume of sewage collected per property (kL)                                                   120           4          5         230
                                     NATURAL RESOURCE




                                                          W14    26a   Total recycled water supplied (ML)                                                             110           2          4         460
                                       MANAGEMENT




                                                          W15    27    Recycled water (% recycled)                                                                    99            1          1         10
                                                          E8     28    Biosolids reuse (%)                                                                                                               100
                    ENVIRONMENTAL




                                                                 30    Energy consumption per Megalitre (kiloWatt hours)                                                                                 780
                                                                 31    Renewable energy consumption (% of total energy consumption)                                                                       0
                                                          E9     32    Net greenhouse gas emissions - WS & Sge (net tonnes CO2 equivalents per 1000 properties)       360           4          4         230
                                                                 33 90 Percentile licence limits for effluent discharge:
                                    ENVIRONMENTAL
                                     PERFORMANCE




                                                                 34    Compliance with BOD in licence (%)                                                             100           1          1         100
                                                                 35    Compliance with SS in licence (%)                                                              100           1          1         100
                                                          A10    36    Sewer main chokes and collapses per 100 km of main                                             16            1          1         46
                                                          E10    37    Sewer overflows to the environment per 100 km of main                                           1            4          2         18
                                                          E4     38    Sewage treated that was compliant (%)                                                          100           1          1         94
                                                          F2     42    Total revenue - Sge ($'000)                                                                   270                                10500
                                                                 43    Revenue from non-residential plus trade waste charges (% of total revenue)                     41            1          1         16
                                                                 44    Revenue from trade waste charges (% of total revenue)                                         14.4           1          1         1.1
                                                                 45    Current replacement cost per assessment ($)                                                   12,560         2          2        10,900
                                        FINANCE




                                                          F14    46    Economic real rate of return (%)                                                               0.1           4          4         1.4
                                                                 46a   Return on assets (%)                                                                           0.2           4          5         1.4
                                                          F16    47    Net Debt to equity (%)                                                                         -1            1          2         -7
                                                          F17    48    Interest cover                                                                                >100           1          1        >100
                    ECONOMIC




                                                                 48a   Loan payment per property ($)                                                                                                     25
                                                          F18    48b   Net profit after tax ratio - water supply & sewerage (%)                                       17            3          3         16
                                                                 49    Operating cost (OMA) per 100 km of main ($'000)                                                330           1          1        1290
                                                          F7     50    Operating cost (OMA) per property ($) Note 8                                                   266           3          2        320
                                                                 51    Operating cost (OMA) per kilolitre (cents)                                                     221           5          5        129
                                        EFFICIENCY




                                                                 52    Management cost per property ($)                                                               56            2          2        110
                                                                 53    Treatment cost per property ($)                                                                141           5          5         91
                                                                 54    Pumping cost per property ($)                                                                  49            3          3         42
                                                                 55    Energy cost per property ($)                                                                   10            2          1         18
                                                                 56    Sewer main cost per property ($)                                                               20            2          2         39
                                                          F11    57    Capital Expenditure per property ($)                                                           12            5          5        193
                   NOTES :
                   1 The ranking compared with LWUs with 200 to 1,500 connected properties (Col 2) is on a % of LWUs basis - relevant for comparing performance with similar sized LWUs - see attachment.
                   2 The ranking compared with all LWUs (Col 3) is on a % of LWUs basis - relevant for comparing performance with all other LWUs - see attachment.
                   3 The Statewide Median (Col 4) is on a % of properties basis. It best reveals statewide performance giving due weight to larger LWUs & reducing the effect of smaller LWUs- see attachment.
                   4 Annual review required of the key projections & actions in LWU's Strategic Business Plan (SBP), together with annual updating of LWU's Financial Plan. The SBP should be updated after 3 years.
                   5 Non-residential: Access Charge based on square of size of service connection, sewer usage charge - 130c/kL.
                   6 Non-residential & trade waste volume was 24% of total sewage collected; these customers only provided 41% of the revenue from annual charges, usage and trade waste charges.
                   7 The operating cost (OMA)/property was $266. The components of operating cost/property were: management ($56), operation ($100), maintenance ($92), energy ($10) and chemical ($8).




 Alf Grigg & Associates                                                                                                                                                                                           17
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Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                                                                                   ra ft
                              Gundagai Shire Council
                              (Results shown for 10 years together with 2006/07 Statewide Median and Top 20%)
                                                                                                                   D                                       TBL Sewerage Performance (page 2)                                                                      2006/07




                                             2                     4. New residences connected                                                            8. Employees                                                         12. Typical residential bill
                                                                                                                            18.0                                                                        500

                                                                                                                            16.0
                                                                                                                                                                                                        400
                                                                                                                            14.0
                                 (% of existing residences)




                                                                                                                   (per 1000 properties)
                                                                                                                            12.0




                                                                                                                                                                                              ($/assessment)
                                                                                                                                                                                                        300
                                                                                                                            10.0
                                             1
                                                                                                                                    8.0
                                                                                                                                                                                                        200
                                                                                                                                    6.0
                                                                                                                                    4.0                                                                 100
                                                                                                                                    2.0
                                             0                                                                                      0.0                                                                             0
                                                               97/98         99/00      01/02     03/04    05/06                                 97/98     99/00    01/02    03/04   05/06                                  98/99     00/01    02/03     04/05    06/07




                                                6000 13. Typical developer charge                                          1.2                           21. Odour complaints                                 4
                                                                                                                                                                                                                                     25. Total days lost

                                                5000                                                                       1.0
                                                                                                                                                                                                              3
                                                                                                                   (per 1000 properties)




                                                4000                                                                       0.8
                                 ($/Lot)




                                                                                                                                                                                              (%)
                                                3000                                                                       0.6                                                                                2

                                                2000                                                                       0.4
                                                                                                                                                                                                              1
                                                1000                                                                       0.2


                                                               0                                                           0.0                                                                                0
                                                                     98/99      00/01     02/03    04/05   06/07                                97/98      99/00    01/02    03/04   05/06                              97/98        99/00     01/02     03/04    05/06



                                                                    34. Compliance with BOD in                                                    35. Compliance with SS in                                                     36. Sewer main chokes and
                                                     100                                                                     100                                                                      50
                                                                              licence                                                                     licence                                                                       collapses
                                                                                                                                                                                                      45
                                                              80                                                                     80                                                               40
                                                                                                                                                                                                      35
                                                                                                                                                                                              (per 100km of main)




                                                              60                                                                     60                                                               30
                                   (%)




                                                                                                                                                                                                      25
                                                                                                                   (%)




                                                              40                                                                     40                                                               20
                                                                                                                                                                                                      15
                                                              20                                                                     20                                                               10
                                                                                                                                                                                                             5
                                                              0                                                                            0                                                                 0
                                                                    97/98      99/00      01/02    03/04   05/06                                97/98      99/00    01/02    03/04   05/06                              97/98        99/00     01/02     03/04    05/06



                                                                             37. Sewer overflows to                                                     46. Economic real rate of                                            50. Operating cost (OMA) per
                                                20                                environment                                              4                     return                                             350                property
                                                18
                                                                                                                                           3                                                                        300
                                                16
                                   (per 100km of main)




                                                14                                                                                         2                                                                        250

                                                12
                                                                                                                                           1                                                                        200
                                                                                                                                                                                                   ($)
                                                                                                                       (%)




                                                10
                                                                                                                                           0                                                                        150
                                                          8
                                                          6                                                                            -1                                                                           100
                                                          4
                                                                                                                                       -2                                                                           50
                                                          2
                                                          0                                                                            -3                                                                               0
                                                                   97/98      99/00      01/02    03/04    05/06                                97/98      99/00    01/02    03/04    05/06                                  97/98     99/00     01/02    03/04    05/06



                                                                       52. Management cost per                                                          53. Treatment cost per                                              54. Pumping cost per property
                                                      120                                                                          250                                                                               60
                                                                              property                                                                         property
                                                      100
                                                                                                                                   200

                                                              80                                                                                                                                                     40
                                                                                                                                   150
                                                                                                                     ($)
                                   ($)




                                                                                                                                                                                                   ($)




                                                              60
                                                                                                                                   100
                                                              40                                                                                                                                                     20

                                                                                                                                           50
                                                              20

                                                               0                                                                           0                                                                            0
                                                                    97/98      99/00      01/02    03/04   05/06                                 97/98      99/00    01/02   03/04    05/06                                  97/98     99/00     01/02    03/04    05/06


                                NOTES:                                                                                                                                                                                                   LEGEND
                                  1. Costs are in Jan 2007$.                                                                                                                                                                 2006/07 State Median
                                                                                                                                                                                                                             2006/07 Top 20%




 Alf Grigg & Associates                                                                                                                                                                                                                                                     18
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Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
3.1.2 Future Position
                                                                              D
Council will establish and adopt written policy and consumer information on target standards of
level of service. The criteria will be based on the State Benchmarking standard criteria, plus any
criteria specific to the shire service area.

Maintenance procedures will be written and confirmed to ensure that no crossover contamination
from the sewerage to the water supply system can occur.

Council employees will be provided with specialised training in the application of field disinfection
procedures. The relevant employees will be trained to be proficient in correct procedures and
testing systems as a matter of the highest priority.

Council will remain committed to ensuring that sewerage maintenance and construction activities
will remain compliant with OHS provisions for a safe work environment. All works identified will
be prioritised and completed as per the recommendations of the specialist auditor/s.

Council will develop integrated quality management systems for sewerage service provision, with
the priority of actions being OHS, environmental, and finally quality procedures. External
accreditation is not anticipated within a five-year period.

Council will introduce a formal trade waste policy that provides for non-domestic discharges to
sewer to be accepted subject to formal policy, agreements, operating and maintenance procedures,
and specific on-site pre-treatment systems at cost to customers.

3.2 Service Delivery

3.2.1 Current Position
Council employees provide service delivery to consumers.

3.2.2 Future Position
Council intends to continue to pursue an in-house service provision approach to service delivery,
with exceptions being contracted electrical services, professional wastewater consulting
engineering, analytical laboratory and financial audit services.

3.3 Customer Service – Areas Serviced

3.3.1 Current Position
Council currently provides sewerage services to the Gundagai urban area.

Council is not anticipating significant urban growth.




 Alf Grigg & Associates                                                                                         19
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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
3.3.2 Future Position

                                                                              D
Council will continue to actively promote economic development within the shire, and will
highlight the availability of a reliable sewerage service for commercial, industrial and residential
demand within the Gundagai urban area.

Council will plan for future growth by encouraging urban consolidation, and by establishing a
justified Section 64 scheme to ensure that future growth makes an effective financial contribution
to existing assets and future capital expenditure.

3.4 Customer Service – Demand Management

3.4.1 Current Position
The current pricing approach for sewerage services offers little in the way of encouraging demand
management.

Council does not have a formal sewerage system utilisation and discharge restrictions policy to
achieve enforced demand management. Council has no formal trade waste policy.

3.4.2 Future Position
Council will progressively transform its sewerage tariffs so that non-domestic customers are levied
an access charge and usage charge based on the volume of water deemed to be discharged to sewer.

3.5 Customer Service – Service Pricing

3.5.1 Current Position
Council currently has a standard sewerage tariff for most consumers.

Council has no formal developer contributions scheme under section 64 of the Local Government
Act, 1993.

3.5.2 Future Position
Council will implement equitable sewerage services pricing based on volumetric and organic
loading on the sewer system, for non-domestic users.

Council will introduce and price a trade waste policy to ensure that utilisation of the sewerage
system is both equitable to other customers and reflects usage by individual customers.

Council will implement a Section 64 scheme to ensure equitable, developer contributions towards
providing future demand capacity.




 Alf Grigg & Associates                                                                                         20
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 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
3.6 Customer Service – Customer/Community Involvement

3.6.1 Current Position                                                        D
Councillors currently represent the best interests of customers in the sewerage business. The
council offices and service provision systems adequately provide for customer needs.

3.6.2 Future Position
Council intends to continue to focus on best-practice customer service by expanding information
systems such as enhancement of the shire website and improved billing information systems.

3.7 Customer Service – Environment Protection

3.7.1 Current Position
Council currently does not know definitively that the sewer reticulation and treatment system is
not in breach of the POEO Act and has no impact on the environment.

Council operates an effluent reuse system that is innovative and meets an important community
need in the provision of public parkland and golf course watering. The system has a formal
sustainable use monitoring plan, though is not sign-posted to protect area users against
inadvertent contact with irrigated treated effluent.

3.7.2 Future Position
Council will undertake an evaluation of its current environmental policies to ensure that it achieves
full compliance with its responsibilities under the POEO Act and in accordance with reasonable
community expectations.

3.8 Asset Management – Operations

3.8.1 Current Position
Council does not have an asset management system that is independent of key employees. All
records are hard copy, are incomplete apparently only being commenced in the 1980s, and are not
well organised. Only one copy of most documents exists.

The most critical documents are the large-scale detailed plan sheets of the reticulation system.
Gundagai Council also has records of the internal sewerage for connected properties This Plan
acknowledges that some progress is being made in embodying the existing hard copy records into
the council GIS through a programme of scanning.

In advance of the completion of the GIS, council recognises that it continues to manage sewerage
assets by the best endeavours of a few experienced, key employees. Loss of their knowledge of the
records would create a difficult operating circumstance.



 Alf Grigg & Associates                                                                                         21
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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
                                                                              D
Document accuracy is unknown, as with the case of details of property connection points. This
situation, while unusual within the industry setting, is considered by key staff to be adequate for
operational purposes.

Council recognises that this situation is not asset management as recognised and applied by Local
Government today.

Assets associated with the original sewerage scheme have been in service for 70+ years, with the
South Gundagai sewerage scheme dating back to the 1960’s. Since than time some new assets have
been created to service new development. Some sewers suffer systemic service failures such as tree
root blockages.

There are opportunities for urban consolidation in the urban area such as to make more effective
use of existing sewerage reticulation assets.

3.8.2 Future Position
Council will undertake the establishment of an appropriate asset management system that forms
an integral part of the corporate management system.

The system will be selected, implemented, and relevant employees trained to be proficient in its
operation as a matter of the highest priority.

3.9 Asset Management – Maintenance

3.9.1 Current Position
There are currently no written procedures for training or operational purposes. Council does
operate a store for wastewater supplies and holds minimum inventories of repair and maintenance
components.

3.9.2 Future Position
Council will develop comprehensive operational maintenance procedures commencing with OHS
procedures, followed by environmental management procedures and checklists, and finally
conclude an integrated system with quality procedures that create a fully integrated document
system.

Council will continue to maintain a stores inventory of components considered essential on a risk
management basis for the maintenance of the sewerage system.




 Alf Grigg & Associates                                                                                         22
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 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
3.10 Asset Management – Capital Works - General

3.10.1 Current Position                                                       D
Council currently operates a general management plan that is limited to a 3-year forward horizon.
The plan is comprehensive with respect to roads, bridges and buildings, but is limited to 1-2 years
for the sewerage business.

3.10.2 Future Position
Council will continue with its general forward management strategy

3.11 Asset Management – Capital Works - Sewerage

3.11.1 Current Position
Council has only one limited series of strategic review reports that provide any basis of forward
planning for the sewerage system. These reports provide a review of CCTV inspections of the
reticulation sewer system, and makes recommendations for asset replacement, rehabilitation, or
repair.

The decisions arising from these reports do not necessarily effectively integrate with the total
sewerage system forward commitments situation or planning approach.

The basis of justification of some of the recommendations for asset renewal need to be reviewed to
ensure that the Council is receiving best value from such expenditure based on a risk assessment of
the role of such assets.

3.11.2 Future Position
Arising from this plan, Council will commence to generate a 10 / 20 year forward capital works
program.

The plan will be based on objective assessment of the age and assessed condition of all sewerage
system assets as derived from both the newly established asset management system and from
strategic reviews of critical aspects of the sewerage system.

The first key review in this approach will be the establishment of a risk-based review and
assessment system of the reticulation system to ensure that capital investment is targeted at key,
high risk assets, while lower risk assets are repaired and rehabilitated to optimise their life span in
the most cost-effective manner.

The other review will be of the total condition and status of the wastewater treatment plant and
effluent disposal system. Key aspects of the review will be to address and remedy OH&S, security,
and environmental risks.




 Alf Grigg & Associates                                                                                         23
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 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
                                                                              D
The existing effluent reuse system will be upgraded to continue meeting statutory requirements
while striving to meet the objective of long term sustainability under total treated effluent reuse to
ensure there is no discharge to receiving waters. The last discharge to waters occurred in 1994.

3.12 Human Resources

3.12.1 Current Position
Council has an approach to human resources management that identifies which wages employees
have responsibilities for sewerage system functions.

The approach determines that the actual workload is within the capacity of the individual
employees to undertake. It also identifies the key competencies for wages staff for categorising
them into the various grades of the award.

3.12.2 Future Position
Council will further develop existing position descriptions for all wages and salaried employees
involved in its sewerage business, including professional and customer support staff.

These position descriptions will identify the skills required to adequately perform the requirements
of the position and will consider and wherever relevant adopt the skills and competencies that have
been established by leading water supply and sewerage authorities throughout Australia.

Council will also audit workload requirements against the number of staff presently available and
make any adjustments found necessary in staff numbers. In the course of this Council shall also
identify staff with leadership potential and give them the opportunity to participate in a career
development programme. It shall also develop a succession plan that identifies staff with the
potential or skills to occupy higher classifications. At the same time, Council shall also review what
resources are available both within and outside the organisation in the event that there is an
urgent, short-term need.

3.13 Finance

3.13.1 Current Position
The Sewerage business had $47,000 in net cash as of 30 June 2008, and no outstanding loans. As
of 30 June 2008, the business recorded an operating loss of $92,000 per year. The corresponding
result for 30 June 2007 was a surplus of $11,000. The primary difference in operating results was a
substantial increase in depreciation, relating to the adoption of fair valuation principles. Some
increases were also noted for operation and maintenance costs.

The business is carrying in the order of $137,000 of receivables ($143 per connection served),
largely consisting of unpaid rates and charges. The high level of receivables is largely due to a
timing issue, in that charges for the second half of the financial year have not fallen due before the
close of the financial year. This value has been relatively stable over a number of years.


 Alf Grigg & Associates                                                                                         24
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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
                                                                              D
The business is conducting minimal capital investment, which is largely caused by the lack of
operating surplus. Annual depreciation is estimated at $103,000 per annum, making it a
significant contributor to the operating result for the business.

3.13.2 Future Position
The current financial state of the business illustrates that the business cannot afford even relatively
minor asset renewals and upgrades under the current revenue structure. This is confirmed through
financial modelling which indicates that there are insufficient funds available to accumulate
sufficient reserves or service loans (see section 8.5).

Council will address the financial situation with the business through the following measures:
    Introducing developer charges under section 64 of the Local Government Act 1993;
    Revising fees and charges for usage and access to sewerage services;
    Continuing to manage unpaid rates and charges to maximise liquidity.




 Alf Grigg & Associates                                                                                         25
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 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
4. Mission Statement
                                                                              D
Council will provide a cost-effective sewerage service to the Gundagai urban area. The service will
meet the level of service for which customers have agreed to pay and which satisfies all statutory
requirements.

The service will be provided in an equitable, commercially focused and environmentally sensitive
manner, and will have public health and occupational health and safety as its highest objectives.

4.1 Availability
The number of service failures will be progressively reduced to nil.

4.2 Wastewater Quality
No breaches of licence discharge standards to receiving waters. Operation of the treated effluent
reuse scheme will meet all current EPA criteria for effluent reuse, and for Load Based Licensing
Protocols.

4.3 Response Time to Failure
Sewer blockages in sewers under the responsibility of council will be cleared within 4 hours of
notification

4.4 Customer Complaints
Response to customer complaints will be within an hour during normal working hours, Monday to
Friday, and within 4 hours after hours at all other times.




 Alf Grigg & Associates                                                                                         26
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 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
5. Customer Service Plan

5.1 Review of Level of Service
                                                                              D
5.1.1 Objective
To achieve a new suite of level of service statements that are derived from this review of sewerage
services and are consistent with the financial, asset condition, and statutory/regulatory
circumstances that are revealed to Council.

5.1.2 Performance Target
An appropriate suite of service levels that meets or betters industry minimum standards.

5.1.3 Strategy
Complete the review of levels of service by public consultation by 2010 and detailed review by key
staff followed by formal consideration and adoption by Council.

5.1.4 Actions
             Formally document actual current levels of service as being observed by council employees;
              by 2010;
             Publish these standards and commence a community consultation program to all relevant
              customers; by 2010;
             Investigate service level options to determine financial implications; by 2010;
             Council to consider community input before adopting and publishing new levels; by 1st
              December 2010.
             Review the current trade waste situation and number and type of sources; draft trade waste
              policy and procedures; serve notice on non-residential properties to install, operate and
              maintain trade waste pre-treatment facilities: by 2011.

5.1.5 Resources Required
Staff time;

Costs of publishing and undertaking community consultation program:                                             $4,000

5.1.6 Performance Indicators
Actions completed by key dates.

5.2 Areas Serviced

5.2.1 Objectives
To review the future geographical extent and purpose of the sewerage reticulation system.


 Alf Grigg & Associates                                                                                                  27
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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
5.2.2 Performance Target
Complete the review by 2011

5.2.3 Actions
                                                                              D
             Formally document actual area and purpose of the reticulation sewerage service as being
              observed and implemented by council employees and understood by Council; by 2010;
             Publish these objectives and commence a community consultation program to all relevant
              customers; by 2010;
             Investigate objectives and extent of service options to determine financial implications; by
              2010;
             Council to consider community input before adopting and publishing new policy on the
              physical extent and objectives of the sewerage service, by 2010.

5.2.4 Resources Required
Staff time;
Costs of publishing and undertaking community consultation program: part of level of service
review.

5.2.5 Performance Indicators
Actions completed by key dates.

5.3 Demand Management

5.3.1 Objective
To review the future of demand management concepts and practices for the reticulation sewerage
system.

5.3.2 Performance Target
Complete the review by 2010

5.3.3 Strategy
Complete the review by public consultation and detailed review by key staff followed by formal
consideration and adoption by Council.

5.3.4 Actions
Formally document actual demand management practices as being observed and implemented by
council employees and understood by Council, together with those formal published policies of
relevant State Government departments; place emphasis on elimination of inefficient fittings such
as auto-flushers and illegal connections that create consequent entry of stormwater into gravity
sewer system; by 2011;



 Alf Grigg & Associates                                                                                         28
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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
5.4 Service Pricing (Including Developer Charges)

5.4.1 Objective                                                               D
To review the future of service pricing concepts and practices for the sewerage system, and in
particular, to develop a Section 64 scheme/s for the sewerage system in accordance with
responsible financial management and forward capital commitments.

5.4.2 Performance Target
Complete the review and adopt a Section 64 Scheme/s when made possible by the implementation
of prerequisite planning instruments

5.4.3 Strategy
When possible, complete the review by public consultation and detailed review by key staff
followed by formal consideration and adoption by Council.

5.4.4 Actions
             Formally document actual sewerage pricing practices as being observed and implemented
              by council employees and understood by Council, together with those formal published
              policies of relevant State Government departments; within 3 months of the prerequisite
              planning instruments being implemented;
             Publish these practices and commence a community consultation program to all relevant
              customers; within 1 month of completion of documentation a above;
             Investigate objectives and extent of sewerage pricing options, Section 64 requirements and
              financial implications; within 1 month of completion of documentation a above;
             Council to consider community input before adopting and publishing new policy and
              practices on service pricing for the water supply service; within 3 months of completion of
              documentation a above;
             Undertake the establishment of a Section 64 Scheme; within 6 months of completion of
              documentation a above;
             Consider and formally adopt Section 64 Scheme/s and submit for Departmental approval;
              within 3 months of completion of documentation a above.

5.5 Customer and Community Consultation in Decision Making
None proposed at this time.

5.6 Environmental Protection and Sustainable Development

5.6.1 Objective
To review the environmental and sustainability issues arising from the provision of the sewerage
reticulation service to all users through the reticulation system area as part of achieving a
sustainable sewerage system with minimal environmental impacts.



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5.6.2 Performance Target
Complete the review by 2011.

5.6.3 Strategy
                                                                              D
Complete the review by public consultation and detailed review by key staff followed by formal
consideration and adoption by Council.

5.6.4 Actions
             Formally document any known environmental protection and sustainability issues; these
              are to include a complete environmental review of the sewage treatment plant, effluent
              reuse system, and any known system overflow relief discharge points; by 2011;
             Publish known issues and commence a community consultation program to all relevant
              customers; by 2011;
             Investigate community comment and other specialist input; by 2011;
             Subsequent actions are beyond definition at the time of preparing this plan.

5.6.5 Resources Required
             Staff time;
             Specialist wastewater engineering and environmental consultants, say $4,000
             Costs of publishing and undertaking community consultation program: part of level of
              service review.

5.6.6 Linkages
To the extent of pricing and Section 64 scheme/s project and the sewerage system effluent reuse
scheme review.

5.6.7 Performance Indicators
Key dates to have action completed.




 Alf Grigg & Associates                                                                                         30
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6. Asset Management Plan

6.1 Operations Plan
                                                                              D
6.1.1 Objective
To ensure that the sewerage reticulation, treatment, and reuse system operation provides adequate
capacity and reliability to policy and agreed service standards.

6.1.2 Performance Target
Complete the review by 2011.

6.1.3 Strategy
Re-establish the sewerage reticulation, treatment, and reuse system operation to agreed standards
by adherence to documented system operating procedures, operating rules, and a formal due
diligence program.

6.1.4 Actions – Specific Projects

Documented Operating Procedures – Cross-contamination with Water Supply System

             Objective
      Identify any significant outstanding risk of cross-contamination between the sewer and water
      reticulation system as a matter of the highest priority;

             Performance Target
      No incidences of water quality contamination that threaten public health;
      All initiatives completed by 30 June 2010;

             Strategy
      Establish, implement, and monitor operation procedures and associated equipment and
      training to eliminate cross-contamination opportunities or defective practices;

             Actions
                     Review existing practices and known service procedures;
                     Complete a risk analysis of the procedures to identify any cross-contamination
                      opportunities;
                     Write, train employees in use of, and implement new operating procedures that
                      eliminate cross-contamination practices;
                     Schedule all hand and power equipment utilised in water and sewer maintenance
                      operations; design a duplicate list of equipment, purchase and colour identify so that
                      sewer equipment cannot be utilised on a water reticulation operations task/procedure
                      and for the reverse to be achieved; issue equipment to employees on an urgency basis;

 Alf Grigg & Associates                                                                                         31
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       
              


                                                                              D
                      Where duplication is impractical or excessively expensive, develop and integrate
                      operational procedures for pressure washing and disinfection of excavator/backhoe
                      buckets, etc, between sewer and water reticulation projects;

              Resources Required
                     Duplicate hand equipment: $2,000;
                     Duplicate protective clothing: $1,000;
                     Duplicate power equipment bucket/s and portable pump: $10,000

             Performance Indicators
                     Water quality results;
                     Incidences of water-borne disease within the communities served;
                     Completion of project by 30 June 2009.

Review of Treated Effluent Reuse Scheme - Operating Procedures

             Objective
      Ensure that the operations of the effluent reuse system are fully compliant with the POEO Act
      and other published regulations and guidelines covering wastewater reuse on public land that is
      accessible to the general public;

             Performance Target
                     No examples of contamination from people coming into contact with land irrigated by
                      the effluent reuse scheme;
                     Completion of due diligence audit of scheme, by 2011;
                     Completion of actions arising from audit, by 2011;

             Strategy
                     Establish whether the existing system meets the provisions of the POEO Act and reuse
                      regulations and guidelines; act promptly to re-establish the system to be compliant;

             Actions
                     Review existing status of system with respect to operational times of effluent
                      application; check signage if any that provides the public and users of use of treated
                      effluent application and precautions required to enter the land;
                     Complete a due diligence review of the scheme as it complies or is non-compliant with
                      the POEO Act and other relevant regulations and guidelines;
                     Act to correct any critical non-compliant practices or extreme risks to public health;
                      schedule all other non-compliant issue for action as funding permits
                     Write new operating procedures, train employees in use of same, and implement;

             Resources Required
                     Staff time to write known existing procedures;


 Alf Grigg & Associates                                                                                         32
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Draft 1.5, May 2009


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      
              
              
                      Signage for reuse sites, $3,000;


              Performance Indicators
                     Water quality results;
                                                                              D
                      Due diligence audit by specialist wastewater consultant, $3,000;




                     Incidences of possible diseases that can be acquired by contact with irrigated land
                      within the communities served;
                     Completion of audit and consequent urgent works by due dates.

Facilities Operating Rules/Procedures

             Objective
      Establish and maintain appropriate/consistent operating rules and procedures for all sewerage
      system facilities;

             Performance Target
      Levels of service achieved;
      All initiatives completed by 2011.

             Strategy
      Establish, implement, and monitor operation procedures for all facilities;

             Actions
                     Review and document known existing practices and service procedures for the sewage
                      treatment plant;
                     Complete a risk analysis of the procedures to identify any issues associated with public
                      health via water quality, OHS, or environmental issues;
                     Write, train employees in use of, and implement new operating procedures for the
                      reticulation system and sewage treatment plant;
                     Conduct due diligence audits on a random basis to confirm employee compliance and
                      appropriate competence;

             Resources Required
                     Staff resources to record existing procedures;
                     Due diligence audit by external consultant: $3,000;

             Performance Indicators
                     Treated effluent discharge to receiving water quality results;
                     Reported OHS incidences including near misses;
                     Completion of project by 2011.




 Alf Grigg & Associates                                                                                         33
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Draft 1.5, May 2009


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Asset Register Establishment

             Objective                                                       D
      Establish and maintain an asset register of all sewer reticulation, treatment and effluent reuse
      system assets;

             Performance Target
             All existing asset records protected and duplicated by Dec-2009;
             Asset register completed by Jun-2010;
             System training completed by Dec-2010;
             Satisfactory external due diligence audit completed by Jun-2011;

             Strategy
      Establish what asset records exist, test validity and accuracy, implement appropriate register;
      maintain register;

             Actions
             Locate and consolidate all known water supply asset information;
             Immediately store records in fire-proof conditions;
             Duplicate records and security store second set as back-up copy;
             Complete categorisation, validity and accuracy assessment of original records and
              documents; discard or store invalid, inaccurate records and mark accordingly;
             Evaluate NAMS asset management software for application to the requirements of the
              water asset records; place due emphasis on comprehensive integration of register and asset
              management system with all relevant corporate management systems;
             Cost, evaluate options, and purchase or extend existing asset management system/s;
             Input water supply asset records and data to establish register;
             Train appropriate staff in operation and maintenance of register;
             Establish operating procedures to ensure maintenance of the register arising from new
              works, rehabilitation works, repairs, replacements, customer reports, and condition
              assessments;
             Purchase a GPS unit for accurately locating assets, asset failures, field exposures, and new
              works; train staff in the use of the system, and implement as a matter of urgency;

             Resources Required
             Asset management software (via NAMS): $2,000 per annum
             Training for staff;
             Development of procedures by staff.
             Specialist asset management system advice.
             GPS unit and support software, under $1,000.

             Performance Indicators


 Alf Grigg & Associates                                                                                         34
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      
      
      
      
      
              Date by which records are secured against fire loss;

                                                                              D
              Date by which records are duplicated and second set secured against loss to fire/theft;
              Date by which asset management system and register system is installed;
              Date by which all existing records are entered into the system register;
              Date by which relevant staff are trained in use of system and register.

System Condition Assessment

             Objective
      Undertake a condition assessment of key sewerage system assets to determine current
      condition and remaining service life;

             Performance Targets
             All trunk sewerage assets assessed and condition registered on the asset register by the
              following dates:
                  o Sewerage facilities for OH&S workplace issues: by 30 December 2009;
                  o Completion of OH&S works: by 30 December 2009;
                  o Trunk sewerage mains and pumping stations (Level 1 assets), by 30 December 2010;
                  o Level 2 sewerage mains and assets, by 30 December 2012;
                  o Level 3 sewerage reticulation assets, progressively by 30 December 2015;

             Strategy
      Establish existing OHS issues within treatment plant relating to employee safety and public
      entry, and physical condition of all sewer assets, compare with known or estimated asset age
      and industry service life; list repair, rehabilitation, replacement works to maintain service
      reliability;

             Actions
                     Review existing practices associated with any exposures of existing sewers; ensure that
                      every opportunity to recover pipeline sections is utilised to obtain sections or fragments
                      of pipes;
                     Generate a procedure to ensure that all relevant data is captured including digital
                      photographs; link the procedure and data file with the asset register to optimise existing
                      system condition data;
                     Lodge assessment data on asset register;
                     Review program annually; list estimated program cost in forward commitments for next
                      business plan;
                     Have sewage treatment plant inspected by competent asset condition assessment
                      professionals for current status to determine works required to maintain and extend
                      service life for period sufficient to enable funding requirements to be satisfied;
                     Require professional to provisionally specify, cost, and prioritise each aspect of the
                      renewal project. Include funding requirements in 2009/10 capital works program.



 Alf Grigg & Associates                                                                                         35
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      




      
              Resources Required
              
              
                      Field support services:
                      CCTV program, $6,000 annually;

              Performance Indicators
                                                                              D
                     Completion of assets by target dates;
                     Number of asset failures not detected and predicted by program;

Due Diligence Program

             Objective
      To undertake due diligence reviews of all operations to ensure that the sewer system operations
      of council are compliant and minimise risk exposure to consumers and council.

             Performance Target
      No examples of breaches of laws, regulations, codes, standards, Government or departmental
      directions or guidelines.

             Strategy
      Establish an organisational culture of compliance and adherence combined with adequate
      education and training of councillors and employees of responsibilities.

             Actions
                     Establish a soft and hard copy library of relevant documents that define the various
                      responsibilities of council as arising from the operation of the sewerage reticulation,
                      treatment, and reuse systems;
                     Provide a series of training and briefing sessions for councillors and employees to
                      ensure that there is universal understanding of the scope and importance of the various
                      documents;
                     Nominate an internal employee to undertake a course in due diligence procedures and
                      audits so as to undertake the role of internal auditor;
                     In parallel, obtain quotations for suitably qualified and experienced external providers
                      to undertake planned, due diligence spot audits of various sewerage system activities;
                     Develop and distribute details of a due diligence audit program that will be applied at
                      random throughout the sewer system operation;
                     Monitor the implementation and outcomes of audits; act promptly to respond to and
                      correct non-compliance situations; develop written procedures to manage any detected
                      non-conformances involving significant breaches of Acts or regulations that involve
                      penal or civil penalties (i.e.: POEO Act, OH&S Act, etc)
                     Ensure non-conformances are documented and monitored to a documented successful
                      outcome; re-list such non-conformances for follow-up audits.

             Resources Required


 Alf Grigg & Associates                                                                                         36
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      
              
              
              
                      Employee training: in Water plan;
                      Library material: in Water plan;
                      External audits: in Water plan;

              Performance Indicators
                                                                              D
                     Number of detected breaches of regulations, Acts, codes, departmental and industry
                      guidelines in any reporting period;
                     Number of adverse findings against council by any regulatory bodies.

             Outputs
                     Statement of Operations Objectives
                     List of Strategies and Actions to Achieve These Objectives
                     List of Performance Indicators
                     Basic Asset Register
                     Condition Survey Report
                     Capacity Estimates of Existing System
                     System Operating Rules for normal and breakdown conditions.
                     Due Diligence Program (POEO Act 1997)
                     Inputs to Capital Works Plan, Maintenance Plan, and Financial Plan

6.2 Maintenance Plan

6.2.1 Objective
      To ensure that the sewerage routine and breakdown response maintenance system ensure the
      delivery of capacity and reliability to policy and agreed service standards.

6.2.2 Performance Target
   Complete the review by 2012.
Completion of documentation of maintenance procedures, in parallel with operations action plans.

6.2.3 Strategy
      Re-establish the sewerage system maintenance procedures to agreed standards by adherence to
      documented system operating procedures, operating rules and a formal due diligence program.

6.2.4 Actions – Specific Projects

Documented Operating Procedures – Cross-contamination with Water Supply System
             Ensure that maintenance procedures, currently unwritten, are formally written and link
              into the operations action plan to establish effective isolation procedures between water and
              sewerage operations.




 Alf Grigg & Associates                                                                                         37
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General Documented Operating Procedures
      

      
                                                                              D
              Assess current maintenance system for known or identifiable deficiencies such as manhole
              cover maintenance.
              Extend the maintenance procedures documentation plan to include documenting all
              current maintenance activities.
             Establish written schedule of existing routine maintenance activities; evaluate for
              effectiveness and frequency; compare with industry and manufacturers’ recommendations
              and specifications; update to revised schedule of planned maintenance activities

Facilities Operating Rules/Procedures
             Complete cross check of operations action plan for facilities operating rules to ensure that
              appropriate linkages between operations and maintenance are established.
             Where operations rules and procedures are insufficient to fully detail maintenance tasks,
              create maintenance documents and cross-link to operations rules, procedures, and the asset
              register.

Asset Register Establishment
             Ensure that any consideration of asset management systems includes adequate provision
              for logging and recording of maintenance activities.

System Condition Assessment
             Ensure that operations system condition assessment includes adequate provision for
              assessment and recording of asset condition arising from maintenance activities or lack of
              such maintenance.

Due Diligence Program
             Ensure that the operations due diligence program provides for random internal audits of
              planned maintenance tasks to determine the completeness and effectiveness of completed
              tasks.

6.2.5 Performance Indicators
             Completion of tasks by due date.
             Outcomes of random due diligence audits of completed tasks and record keeping.

6.2.6 Outputs
             Statement of Maintenance Objectives
             List of Strategies and Actions to achieve these Objectives.
             List of Performance Indicators
             Scheduled Maintenance Program – Fixed Time and Conditioned Based
             Breakdown Response Plans
             Estimates of Human and other resources required.
             Appropriate maintenance manuals.


 Alf Grigg & Associates                                                                                         38
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             Inventory of spares and support equipment.

6.3 Capital Works Plan                                                        D
This plan proposes a program of provision for the ongoing maintenance of the treatment plant
until the treatment performance no longer complies with DECC licence conditions.

At this point, it is likely that a new treatment plant will need to be constructed on a site considered
more viable for wastewater treatment purposes. This location is unlikely to remain on the
floodplain as per the existing plant, and will necessitate the redirection of the two final sewer rising
mains to the new location.

The two major sewer pump stations will then probably require upgrading for rate of flow and total
head.

6.3.1 Rehabilitation
No detail on rehabilitation works is currently available. System condition assessment will enable
life expired assets to be identified prior to collapse failure and major service interruptions.

6.3.2 Replacement
No planned details of asset replacement are known at this time.

6.3.3 New Works
Any new works required within the planning year will, if required, be at full cost to developers and
have no significant impact on this plan.

Subsequent review and development of this plan for the 2009/10 Financial Year will enable the
capital works plan for new works to be established for the period 2010 – 13, with an outline works
plan for 2013 - 2018.

No further detail on new works is either realistic or viable at this time.

6.3.4 Asset Disposal
No detail on asset disposal is available at this time.




 Alf Grigg & Associates                                                                                         39
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7. Human Resource Plan

7.1 Human Resource Planning Objective
                                                                              D
To ensure that Council has appropriate numbers of staff in the correct positions and with the
necessary experience and skills to meet the operational requirements of the Asset Management
Plan

7.1.1 Performance Target
No deficiency in human resources causes a failure to deliver levels of service

7.1.2 Strategy
Complete position analysis, human resources audit and resource development plan by 31
December 2009

7.1.3 Actions
             Implement the above strategy
             Meet specialist or other identified needs by outsourcing.
             Develop a succession plan to ensure that there are trained staff with sufficient knowledge of
              the Asset Management Plan to cover absences and resignations by 31 December 2009
             Establish a learning programme for every member of staff and provide a minimum of 5 days
              training for each staff member per year, by 30 June 2009 and thereafter review and update
              by 30 June annually
             Identify any staff members for leadership development by 31 December 2009
             Establish a career development programme for staff identified with leadership potential by
              31 March 2010

7.1.4 Performance Indicators
             Numbers of staff available equals number required, by category
             Dates to have actions completed

7.2 Position Analysis
Figure 4 shows the organisational structure for Gundagai Shire Council.

At the time of preparing this business Council has position descriptions and skill descriptors to
satisfy the requirements of the NSW Local Government NAPSA, the award under which most
employees of Council are employed.

This Award is a skills-based award that requires councils to develop a salary system that provides
incentives for staff to acquire and use additional skills.




 Alf Grigg & Associates                                                                                         40
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                                                                              D
Each position is yet to be progressively analysed and the relevant objectives, key tasks, duties and
specialist knowledge documented. The key competencies for each wages division grade by general
position classification have already been developed. The skills levels necessary for each of the
salary grades to fit into the salary system within the NAPSA have also already been developed.

A copy of these current skill level gradings (as amended on 2 March 2000) follows:

              Sewage treatment Plant Operator

                                                                                                       Salary Band/Level
              Grade 1                        Basic Plant Operation                                       B1L2g
                                             OH&S knowledge
                                             Maintenance of lawns and surrounds of Treatment Works properties
                                             All skills of CSP Grade 3



              Grade 2                        All skills of Grade 1                                        B1L3f
                                             High Grade of Plant Operation
                                             OH&S Certification
                                             Ability to maintain Plant items
                                             Clear sewer chokes
                                             Locate sewer manholes
                                             Carry out minor sewer main repairs and use associated products relative to control
                                                     and maintenance
                                             Instigate flood control procedures
                                             Traffic Control
                                             All skills of CSP Grade 5
                                             PWD Certification
                                             First Aid Certificate
                                             Confined Spaces Certification
                                             Certificate I

              Grade 3                        All skills of Grade 2                                              B1L3g
                                             Locate sewer manholes using sewer maps
                                             All skills of CSP Grade 6
                                             Install sewer mains
                                             Maintain and update sewer maps as required
                                             Have public relations skills

              Grade 4                        All skills of Grade 3                                              B1L4b
                                             All skills of CSP Grade 7
                                             Have a high standard of public relations skills
                                             Ability to train operatives
                                             Certificate II

              Grade 5                        All skills of Grade 4                                              B2L1e
                                             Exceptional and innovative Grade of Plant Operation

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                                                                              D
                                             Exceptional Ability to maintain Plant items
                                             Locate sewer manholes, sewer mains and junctions using sewer maps and computer
                                                     assistance
                                             All skills of CSP Grade 8
                                             Have exceptional public relations skills
                                             Have superior knowledge of Sewage treatment Plant     Operations
                                             Ability to oversee sewer main installation
                                             Certificate III

7.2.1 Future Actions
Council will further develop existing position descriptions for all wages and salaried employees
involved in its sewerage business, including professional and customer support staff, on an ongoing
basis.

These positions descriptions will identify the skills required to adequately perform the
requirements of the position and will consider and wherever relevant adopt the skills and
competencies that have been established by leading sewerage authorities throughout Australia.
The current suite of skills possessed by individual staff members will be assessed and learning
contracts will be negotiated with each staff member with the objective of eliminating any skill gaps
and maintaining competency in the skills acquired.

The position analysis and skill requirements shall be written into this chapter of the business plan
and revised with each successive plan update. However, individual employee’s skill levels and
learning contracts shall remain confidential between the employees concerned and the Council.

7.3 Human Resources Audit
Council’s human resource management system has identified which employees have
responsibilities for sewerage system functions. However, this relates to operational and
professional staff only, and has not included support staff such as customer service staff on the
switchboard or front counter or finance and administration staff involved in billing etc.

7.3.1 Future Actions
Council will audit workload requirements as determined by this management plan against the
number of staff presently available, and make any adjustments found necessary in staff numbers.
The audit will be completed by 31 December 2009.

The audit shall also consider the skills requirements derived from the position analysis above.

The audit results shall be written into this chapter of the business plan and revised with each
successive annual plan update.




 Alf Grigg & Associates                                                                                          42
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Figure 4: Organisational structure


                                                                                                                  D  Gundagai Shire Community


                                                                                                                       Gundagai Shire Council


                                                                                                                                Mayor


                                                                                                                          General Manager


                                         Director Administration and Finance                                         Director Health, Building and                          Director Engineering Services
                                                                                                                         Community Services

 Financial Management and Control                                                                Parks & Gardens                                          Recreation                                   Roads, Bridges, Drainage


                 Administration                                                                       Sewerage                                             Garbage                                            Water Supply


           Records management                                                                     Noxious Weeds                                           Saleyards                                          Workshop/Plant


                     Insurance                                                                       Impounding                                  Development Approvals                                         Subdivisions


   Property and Land Management                                                                      Cemeteries                                             Health                                      Development Approvals


                     Personnel                                                                    Building Control                                   Property Maintenance                                   Stores Management


                  Stores Control                                                                  Street Cleaning                            Human Resource Management                              Human Resource Management


          Information Technology                                                                                                                                                                              SES Controller



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Draft 1.5, May 2009


                                                                                                  ra ft
7.4 Resource Development
                                                                              D
As indicated above, Council has developed a salary system as required by the current Local
Government NAPSA.

To date, one sewerage operator is qualified and training is being offered to the other operator to
develop his competency. One of the outcomes of the salary system is a suite or required skills for
each position, and the provision of appropriate training to ensure acquisition of any missing skills.

7.4.1 Future Actions
Both specialist water supply staff are at the top of their salary scale, and are considered full
qualified for their roles. In the event that a position becomes vacant, it is likely that the
replacement staff will need to be taken through a structured training programme to develop a
comparable level of capability.

Individual learning plans will be developed for each employee with responsibilities within the
water supply business. In addition to operations staff, this will include professional and customer
service staff.

These learning plans shall take the form of a contract between the Council and the employee that
will reward the employee for acquiring mutually agreed skills over a pre-defined time period. The
Council shall provide or arrange for the necessary training at no cost to the employee. It is
expected that each staff member apart from customer service staff will undergo a minimum of five
(5) days training per annum. Customer service staff should receive a minimum of two (2) days
training per annum on combined sewerage and water operations.

The required skills will be identified through the position analysis described in Section 7.2.1. Initial
learning plans will be developed by 30 June 2010 and shall thereafter be revised by 30 June each
year. The contents of individual learning plans shall remain confidential between the Council and
the employee.

It should be noted that for a multi-purpose Council such as Gundagai Shire, many staff are engaged
in activities for the water fund, the sewerage fund, and in some cases, also the general fund. In
such cases, the learning plans shall be negotiated with each employee individually and may contain
relevant elements pertaining to skills required for work in each of these funds.

Council will identify employees with leadership potential. Staff so identified will be given the
opportunity to participate in a career development programme. These staff will be identified by 31
December 2009, with the career development programme to be agreed by 30 June 2010. The
career development programme will be written into individual learning plans.

In conjunction with the above, Council will develop a succession plan that identifies staff with the
potential or the skills to occupy higher classifications, with the view to ensuring that adequately

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Draft 1.5, May 2009


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                                                                              D
skilled and experienced staff are available in the event of leave or unexpected resignations. Council
will also review what resources are available either within or outside the organisation in the event
that there is an urgent, short-term need. The succession plan will be developed by 31 December
2009.

The learning needs of the organisation will be reviewed annually and written into this chapter of
the business plan.




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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
8. Capital Works and Financial Plans

8.1 The purpose of financial planning
                                                                              D
Sewerage business are characterised by large variations in annual expenditure as capital assets are
progressively purchased, maintained, rehabilitated and replaced. The long life cycle of these assets
inevitably means that most sewerage businesses will need to go through cycles of funds
accumulation, spending and debt servicing.

From the customer’s perspective, it is important that the cost of service is kept as stable as possible.
If the cost of service is consistent (in real terms) over the life cycle of the asset base, both current
and future customers are treated in an equitable manner.

This Financial Plan seeks to meet the following objectives to support the Gundagai sewerage
business:
    The business is capable of funding new and replacement assets needed to provide a
       satisfactory level of service to its customers and the broader community.
    Over the long term, customer charges are kept as low and as stable as possible.

This version of the Financial Plan should be considered indicative of a future price path. The actual
price path will vary with the preparation of a Development Servicing Plan, proposed for late 2008,
and any future changes in the regulatory and economic environment. All costs are expressed in
2007/2008 prices.



                                                                                                                                               Existing   Future Level
                                                                                                                                                Asset      of Service
8.2 Planning approach                                                                                                                           Data       Objectives

The Financial Plan has been developed using
‘FINMOD’ modelling software provided by the                                                                     Historical Financial               Capital Works
                                                                                                                        Data                           Plan
NSW Department of Water and Energy. This
software uses historical operating cost information
and combines it with forecasts of growth and                                                                                           Financial
                                                                                                                                        Model
future capital works to prepare financial forecasts,
including cash, loans required and asset valuation
estimates.                                                                                                       Customer Price                       Financial
                                                                                                                      Path                          Performance


The capital works and financial planning process
consists of:
   1. Identifying the future capital requirements for the business, being the assets requiring
       rehabilitation or replacement over the planning timeframe, and the new assets required to
       meet the level of service objectives for the business. This is the Capital Works Plan.



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Draft 1.5, May 2009


                                                                                                  ra ft
                                                                              D
      2. Based on historical financial data, preparing forecasts of future operating costs. The data
         used for this plan are the Special Schedules to Gundagai Shire Council’s return to the
         Department of Local Government for the 2005/06 and 2006/07 financial years. These
         forecasts can be adjusted to reflect known future variations in costs.
      3. Iteratively adjust charges income and future loans until a stable price path is achieved, and
         loans are capable of being serviced.
      4. Review the results, and if necessary, consider new scenarios based on variations to the
         proposed level of service, or alternate procurement approaches.

8.3 Planning timeframe
These plans have been developed over a thirty year planning timeframe, from the 2007/08
financial year through to 2038. This timeframe is recommended by the Department of Water and
Energy, and represents slightly less than half of the life cycle of most major assets in the sewerage
system.

8.3.1 Growth forecasts
There is a considerable degree of uncertainty involved when forecasting growth for smaller centres
such as Gundagai. This is because factors such as employment prospects are heavily dependent on
the performance of a small number of individual enterprises.

For the purposes of modelling growth forecasts have been based on the changes in population and
dwellings between the 2001 and 2006 census counts. During this period the Gundagai urban
centre was recorded as having almost zero population growth, but a significant increase in the
number of dwellings, in the order of 1.0% per annum. This is attributed to reducing occupancy, a
phenomenon observed in many other centres. The census data is provided in Table 1.

Table 1: Census population and dwelling data, 2001 and 2006, Gundagai Urban Centre
               Year                                          Population                                Occupied Dwellings   Occupancy
               2001                                            1997                                           773             2.58
               2006                                            1998                                           811             2.46

If the decline in occupancy rate was extrapolated to 2037, this would suggest by this time the a
mean occupancy rate would be 1.85. This highly unlikely without a fundamental change in the
typical household structure.

Instead the growth rate in assessments was adjusted downwards until the mean occupancy
increased to 2.0 persons per assessment in 2037. This yields a growth rate of 0.7% per annum.

8.4 Capital Works Plan
The Gundagai sewerage system is an aged but functional system. A preliminary review of asset
loading suggests that the sewerage system isn’t likely to reach significant capacity constraints over



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Draft 1.5, May 2009


                                                                                                  ra ft
                                                                              D
the 30 year period, rather the majority of the expenditure required will be related to the
reinvestment in existing assets through rehabilitation or replacement.

The timing of asset reinvestments has largely been determined from Gundagai Shire Council’s
valuation of assets at Fair Value, completed in 2007.

A detailed schedule of capital works is provided as Appendix B.

Sewage treatment plant
The sewage treatment plant is aged, and will require replacement for condition reasons during the
planning timeframe. While significant structural issues have been observed, it is more likely that
plant replacement will be triggered through regulatory pressures.

The sewage treatment plant is located within a floodplain, and effluent is reused at controlled
access facilities (primarily the golf course).

End of life could be triggered by one of the following scenarios:
   1. More restrictive Environment Protection Licence requirements mandating a higher quality
       of effluent be delivered to reuse sites.
   2. The aged condition of the plant infrastructure leading to treatment failures such as
       breakdowns, system bypasses or leaks to the environment.
   3. The perceived risk of the sewage treatment plant’s location demanding that it be replaced
       with a new facility outside of the floodplain.

The nature of these end-of-life scenarios means that there is a considerable degree of uncertainty
associated with the timing of the plant replacement, and the cost to the business of that
replacement. Some scenarios could qualify the business for grants or subsidies for the replacement
plant.

Sewage pumping stations
The limited number of significant sewage pumping stations means that the financial impact of
refurbishments and replacements is relatively low. There also are a number of very minor stations
that could be replaced with off-the-shelf units- these are not considered material to the business.

For the significant stations, well refurbishment has been rescheduled for end-of life as estimated by
the 2007 valuation. The plan assumes that pumps, mechanical and electrical components will be
replaced at rehabilitation, and every 25 years. These replacement value of these components have
been valued based on historical information from a replacement programme completed between
2001 and 2004.




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Draft 1.5, May 2009


                                                                                                  ra ft
Mains

                                                                              D
The majority of the mains in the North Gundagai sewerage network date back to the original
network, established in the 1930s. The 2007 valuation suggested this network would reach end-of-
life by 2015.

The South Gundagai sewerage network was largely developed in the 1960s. Since that time various
both networks have had minor extensions to service new development areas.

It is not practically or financially feasible for the business to rehabilitate these life-expired assets in
2015. Additionally it quite likely that some individual assets will have a considerably longer life, or
the light loading of the asset means it could still operate satisfactorily despite being in
compromised structural condition.

Instead the capital works plan is based on the business investing $200,000 every two years in
mains rehabilitation from 2015 until the backlog is cleared. Additional operating costs have been
assigned to the business to provide for additional CCTV inspection, root cutting and chemical root
treatment of the life-expired assets. This also provides a valuable data source to prioritise the
rehabilitation programme.

8.5 Future operating costs
The capital works proposed generally consist of infrastructure augmentation and replacement.
There are no additional major plant components proposed. Therefore operating costs per
assessment are unlikely to significantly change due to these factors.

However the sewage treatment plant replacement has potential to significantly alter the operating
cost profile, depending on the location of the plant (affecting pumping costs), and level of
treatment required (affecting energy and chemical costs). Compared to the existing sewage
treatment plant, newer plants generally require higher energy input to compensate for reduced
transit time through the plants.

This change in operating cost has not been considered in the financial modelling at this stage due
to the high level of uncertainty associated with the location of the plant and the technology likely to
be deployed.

8.6 Financial modelling

8.6.1 Key assumptions
All models require a number of key assumptions. These assumptions can have a significant impact
on the model results. Because of this, the modelling process includes various sensitivity tests to
identify which assumptions have a significant impact on the outcomes for the business. Key
assumptions and sensitivity tests are provided in Table 2.



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                                                                              D
It should be noted that the developer charge documented in the assumptions is yet to be calculated
or considered by the council. The value used is a lower bound estimate based on the charges levied
by other utilities.

Table 2: Key assumptions and sensitivity tests
Parameter                                                                                                        Assumed value 2007-       Sensitivity tests at
                                                                                                                    2037 (average)
Inflation (general)                                                                                                    2.5%pa                    3.5%pa
Inflation (capital works)                                                                                              2.5%pa                    3.5%pa
Interest rate for new borrowings                                                                                       7.5%pa                    8.5%pa
Interest rate for investments                                                                                          6.5%pa                    5.5%pa
Capital works programme                                                                                               As per plan          STP replacement in
                                                                                                                                              2012, 2022
Mean useful life of assets                                                                                              71 years                    -
                                                                                                                 Based on 2007 asset
                                                                                                                       valuation
Growth in assessments                                                                                                   0.7% pa            0.35%pa, 1.0% pa
Developer charges income                                                                                            $2,000/ET from                -
                                                                                                                       2009/10
Number of assessments                                                                                           As per Special Schedule             -
                                                                                                                           5
Vacant assessments                                                                                              Vacancy rate is constant            -

8.6.2 Modelling constraints
The modelling process used the following constraints during model development:
    The minimum cash and investments balance was to be $50,000
    The Economic Real Rate of Return (ERR) was to be generally positive during the model
      period.
    Any increases in Typical Residential Bills (TRB) were to be phased in so that the increase
      did not exceed 10% per year.

8.6.3 Modelling results
The financial models indicate that the current income stream isn’t sufficient to sustain operations
in the medium, let alone be able to fund a substantial rehabilitation programme. This is shown by a
negative economic real rate of return, which shows that the net operating result, less depreciation
is less than zero.

Within the sewerage business there is little accumulated cash reserve. This has triggered the need
for user charges to be increased by 60% to prepare for the replacement of the sewage treatment
plant. Following the investment in the sewage treatment plant, debt servicing requirements and the
need to rehabilitate gravity mains cause the business to have minimal available cash for the rest of
the planning period.




 Alf Grigg & Associates                                                                                                                                 50
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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
Figure 5: Cash and debt, Base case, 2007-2037




            2,000
                                                                              D   Financial Data




            1,500
    $'000




            1,000

              500

                    0
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                                                                                                     Year

                                                 Cash and Investments (2007/08$'000)                                    Debt outstanding (2007/08$'000)



Under the higher charges regime, the Economic Real Rate of Return increases to between 1% and
2%pa, the range recommended by the Department of Water and Energy. This suggests that the
business is sustainable at this income stream. Once debt has been retired, there is potential for the
business to generate dividends.
Figure 6: Financial performance, Base case, 2007-2037

                                                                               Performance Data
                                                   $395




              4.0                                                                                                                                     $400
              3.0                                                                                                                                     $350
                        $248




                                                                                                                                                      $300
              2.0                                                                                                                                     $250
                                                                                                                                                             $/annum


              1.0                                                                                                                                     $200
    %




              0.0                                                                                                                                     $150
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                                                                                           Year

                                                 Economic Real Rate of Return (% )                                Typical Residential Bills


Sensitivity analysis
The results of the sensitivity analysis are summarised in Table 3, and are shown in Figure 7 to
Figure 10.



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                                                                                                  ra ft
                                                                              D
The sensitivity analysis shows that the performance of the business is most severely affected by the
timing of the replacement of the sewage treatment plant, and variations to the growth rate. The
sewage treatment plant replacement in particular needs the Typical Residential Bill to be varied by
up to 15%. A side effect of this is that the Economic Real Rate of Return also varies substantially. If
the sewage treatment plant needs to be replaced early and no subsidy is available, there is merit in
lowering typical residential bills in the latter part of the planning period.

If the sewage treatment plant replacement qualifies for 50% subsidy assistance, typical residential
bills can reduce slightly, however the reduction is constrained by the Economic Real Rate of Return
falling to undesirable levels. The effect of this is that the business accumulates a substantial cash
balance by 2037.

Table 3: Sensitivity analysis results
                                                                                                         Typical               2037/38 Net                    Mean
Scenario                                                                                              Residential Bill         Cash ($'000)                    ERR
STP replacement 5 years later                                                                             $380                    -$272                       1.29%
Subsidy for new works and STP                                                                             $385                   +$2,322                      0.95%
Growth higher (1.0%pa)                                                                                    $395                    +$496                       1.75%
Inflation 1%pa higher                                                                                     $395                    -$510                       1.45%
Subsidy for new works                                                                                     $395                    -$547                       1.44%
Base Case                                                                                                 $395                    -$829                       1.43%
Investment interest 1%pa lower                                                                            $395                   -$1,028                      1.43%
Loan interest 1%pa higher                                                                                 $395                   -$1,962                      1.43%
Growth lower (0.35%pa)                                                                                    $395                   -$2,503                      1.22%
STP replacement 5 years earlier                                                                           $450                    -$545                       2.01%


Figure 7: Sensitivity, STW timing and subsidy, financial performance 2007-2037

                                                                               Performance Data
                                                                                                                                     $450




              6.0                                                                                                                           $400
                      $248




              4.0                                                         $380                                                              $300
                                                                                                                                                   $/annum
    ERR %




              2.0                                                                                                                           $200
              0.0                                                                                                                           $100
            -2.0                                                                                                                            $0
            20 0

            20 2
                  /24


            20 6

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               31

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            20




                    Base Case                                                   50% subsidy for STP (ERR)                STP 5 years earlier (ERR)
                    STP 5 years later (ERR)                                     50% subsidy for STP (TRB)                STP 5 years earlier (TRB)
                    STP 5 years later (TRB)                                     Base Case (TRB)




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Draft 1.5, May 2009


                                                                                                  ra ft
Figure 8: Sensitivity, STW timing and subsidy, net cash position 2007-2037




             3,000
                                                                              DNet Cash Position



             2,000
             1,000
    $'000




                     0
            -1,000
            -2,000
                   /08

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                     Base Case                                                  50% subsidy for new works              50% subsidy for STP
                     STP 5 years earlier                                        STP 5 years later

Figure 9: Sensitivity, finances and growth, economic real rate of return, 2007-2037

                                                          Sensitivity - Economic Real Rate of Return

                 4
                 3
                 2
    ERR %




                 1
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                                                                                                    Year

                                                    Base case                                    Invest interest -1%     Loan interest +1%
                                                    Inflation +1%                                Growth @ 0.35%          Growth @ 1%




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Draft 1.5, May 2009


                                                                                                  ra ft
Figure 10: Sensitivity, finances and growth, net cash position 2007-2037




             2,000
                                                                              D
                                                                    Sensitivity - Net Cash Position



             1,000
                    0
    $'000




            -1,000
            -2,000
            -3,000
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                                                                                                     Year

                                                     Base case                                    Invest interest -1%   Loan interest +1%
                                                     Inflation +1%                                Growth @ 0.35%        Growth @ 1%


8.7 Proposed price path
The base case models indicate that typical residential bills for the sewerage business need to
increase by 60% in real terms. The business is most susceptible to variations in the timing of the
sewage treatment works replacement, and growth in assessments. Both of these parameters are
largely outside of the business’ control. Given the scale of increase required, there is merit in
phasing the changes as soon as possible.

This Financial Plan will need to be modified as part of the preparation of a Development Servicing
Plan. This creates an opportunity to refine the price path to more accurately take into account
developer contributions.




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Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
9. References
                                                                              D
Alf Grigg and Associates (2007) Gundagai Shire Council: Valuation of Water Supply and
Sewerage Assets.




 Alf Grigg & Associates                                                                                         55
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Draft 1.5, May 2009


                                                                                                                    ra ft
Appendix A:
Plan
section         Strategic area
                                             Summary of key actions and targets

                                                                Action
                                                                                                                D
                                                                                                                Potential consequences of inaction                                                    Target date
5.1             Level of service                                Document current levels of                      Unable to evaluate feasibility of future levels of service.                                2010
                                                                service
                                                                Survey customers to determine                                                                                                              2010
                                                                attitude to level of service
                                                                                                                Level of service may be determined by Council biases and ‘activist’ interests
                                                                Consideration of community input                                                                                                           2010
                                                                                                                rather than the interests of the broader community.
                                                                to adequacy of current service
                                                                levels
                                                                Establish appropriate suite of                  Unable to evaluate the suitability of investments and upgrades.                            2010
                                                                service levels for the business                 Potential for decline in level of service actually provided due to the inability to
                                                                                                                forward plan reinvestment.
                                                                                                                Uncertainty regarding the level of service able to be offered may be a
                                                                                                                disincentive for commercial and industrial development.
                                                                Implement liquid trade waste                    Risks associated with liquid trade wastes not appropriately identified and                 2011
                                                                policy                                          managed
5.2             Service area                                    Formally document existing                      Confusion over existing serviceable areas could affect development patterns                2010
                                                                service area                                    and may mean areas requiring backlog service are not identified.
                                                                Consult with community on                       Community needs incorrectly identified leading to underinvestment or                       2010
                                                                adequacy of service area                        overinvestment.
                                                                Investigate feasibility of changes              Unplanned financial impacts on the business or affected property holders.                  2010
                                                                to service area
                                                                Adopt policy regarding the extent               Ongoing uncertainty regarding which properties will be ultimately serviced.                2010
                                                                and objectives of the service area
5.3             Demand management                               Document existing demand                        Perception that no demand management is occurring at state government                      2011
                                                                management activities                           level, no baseline to evaluate future initiatives.


 Alf Grigg & Associates                                                                                                                          A-1
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                                    ra ft
Plan
section
5.6
                Strategic area
                Environmental
                protection
                sustainability
                                                    and
                                                                Action
                                                                Document known issues
                                                                regarding environmental
                                                                protection and sustainability
                                                                                                                D
                                                                                                                Potential consequences of inaction
                                                                                                                No baseline identified to evaluate future initiatives.
                                                                                                                                                                                                  Target date
                                                                                                                                                                                                       2011



                                                                Consult community regarding                     No objective understanding of the community’s perception of the need or                2011
                                                                environmental protection and                    otherwise for environmental performance.
                                                                sustainability
                                                                Investigate feasibility of changes              Unplanned financial impacts on the business or the receiving environment.              2011
                                                                based on community response
                                                                and specialist input
6.1             Operations plan                          –      Document procedures to                          Risk of cross-contamination, especially during emergencies or where                    2009
                contamination                                   eliminate the risk of cross-                    inexperienced staff are required to work on sewerage jobs.
                                                                contamination between the
                                                                potable water supply and
                                                                sewerage systems
                Operations                plan –                Review system re operating                                                                                                             2011
                reclaimed                    water              times, signage
                                                                                                                Non-compliances not identified, potential public health impacts in the event of
                scheme                    operating             Due diligence review                                                                                                                   2011
                                                                                                                a process failure.
                procedures                                      Non-compliances corrected                                                                                                              2011
                                                                Write new operating procedures                                                                                                         2011
                Operations                 plan    -            Consistent operating procedures                 Incidents caused by inconsistent approaches to similar activities.                     2011
                facility                  operating             established for all facilities
                procedures                                      Review & document existing                      Loss of corporate knowledge in the event of key staff leaving the business.            2011
                                                                procedures
                                                                Risk analysis of procedures                     Current procedures may be dangerous, damage assets, or inadequately protect            2011
                                                                                                                the environment from damage.
                                                                Write new operating procedures                                                                                                         2011
                                                                                                                Changes to procedures may not be implemented in the field.
                                                                First due diligence audit                                                                                                              2011


 Alf Grigg & Associates                                                                                                                         A-2
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                                    ra ft
Plan
section         Strategic area
                Operations plan
                asset register
                                                         –
                                                                Action
                                                                Existing asset records protected
                                                                & duplicated
                                                                Register established
                                                                                                                D
                                                                                                                Potential consequences of inaction
                                                                                                                Loss of critical data in the event of a disaster such as a fire, substantial costs
                                                                                                                involved in re-capturing this data (if possible at all).
                                                                                                                Unable to systematically review asset characteristics, and ability to provide an
                                                                                                                                                                                                      Target date
                                                                                                                                                                                                           2009

                                                                                                                                                                                                           2010
                                                                                                                appropriate level of service in the future.
                                                                System training                                 Register is not maintained, register does not adequately represent asset base              2010
                                                                Due diligence audit                             leading to poor investment decisions.                                                      2011
                Operations plan –                               Review maintenance practices to                 Inadequate understanding of true condition of network- rehabilitation too early            2009
                system     condition                            maximise recovery of sewer main                 (financial losses) or too late (high level of blockages leading to a decline in
                assessment                                      samples                                         level of service)
                                                                Develop system to link condition                Unable to target rehabilitation and renewal programmes.                                    2010
                                                                data to asset register
                                                                Professional STP condition                      Unable to correctly determine structural life of asset, or structural modifications        2010
                                                                assessment                                      to maximise structural life. Substantial financial consequences to the business.
                                                                Renewals projects costed                        Unable to adequately programme works to maximise performance within                        2010
                                                                                                                budgetary constraints.
6.2             Maintenance plan                                Reviews completed concurrently                  As for Operations Plan.
                                                                with operations plan targets
7.1             Human         resource                          Recruit new staff to meet                       Unable to efficiently meet proposed level of service.                                 (Outsource)
                planning objective                              identified specialist needs
                                                                Develop succession plan                                                                                                                Dec-2009
                                                                Establish learning programme for                                                                                                       Jun-2009
                                                                all staff
                                                                                                                Unable to retain key staff.
                                                                Identify staff with leadership                                                                                                         Dec-2008
                                                                                                                Skills gaps due to extended leave or resignations lead to decline in level of
                                                                potential
                                                                                                                service.
                                                                Establish career development                                                                                                           Mar-2010
                                                                programme for staff with
                                                                leadership potential


 Alf Grigg & Associates                                                                                                                         A-3
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                                    ra ft
Plan
                                                                                                                D
section         Strategic area                                  Action                                          Potential consequences of inaction                                                  Target date
                                                                Audit workload requirements                     Staff unable to fulfil responsibilities leading to a decline in level of service.    Dec-2009
                                                                                                                Underutilised staff leading to higher than necessary operating costs.
7.1             Human         resource                          Recruit new staff to meet                       Unable to efficiently meet proposed level of service.                                Dec-2009
                planning objective                              identified specialist needs
                                                                Develop succession plan
                                                                Establish learning programme for                                                                                                     Jun-2009
                                                                all staff
                                                                                                                Unable to retain key staff.
                                                                Identify staff with leadership                                                                                                       Dec-2008
                                                                                                                Skills gaps due to extended leave or resignations lead to decline in level of
                                                                potential
                                                                                                                service.
                                                                Establish career development                                                                                                         Mar-2010
                                                                programme for staff with
                                                                leadership potential
                                                                Audit workload requirements                     Staff unable to fulfil responsibilities leading to a decline in level of service.    Dec-2009
                                                                                                                Underutilised staff leading to higher than necessary operating costs.
8.6             Capital works                       and         Determine impact of                             Pricing structure inadequate to meet financial needs of business                     Jun-2009
                financial plan                                  Development Servicing Plan on                   Customers affected by substantial changes in prices to service debts once
                                                                other service pricing                           assets need replacement
                                                                Review price structure                          Decline in asset condition due to inadequate funding, leading to decline in level    Jun-2009
                                                                Implement new price path                        of service.                                                                          Jun-2009




 Alf Grigg & Associates                                                                                                                           A-4
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
Appendix B:                                  Detailed Capital Works Plan
                                                                              D




 Alf Grigg & Associates                                                                                         B-1
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Sub-system Sewer Gundagai System

                                                                                  ra ft
                                                               D
  Major Programme Recycled water
     Programme Component Reticulation
      Year          Description                                        Strategy      Type     Capital   OMA     Accuracy         CostDate
               Notes                                                                                     
      1-Jul-2010     System extension to sports ovals                   Sewer     Capital     $35,575    -    Unit rates estim   29-Feb-08
               Project & estimate provided by Glen Moore

     Programme Component Treatment & Storage
      Storage dams and specialist treatment processes for recycled water
      Year       Description                   Strategy    Type      Capital                            OMA     Accuracy         CostDate
            Notes                                                                                        
      1-Jul-2009     Chlorination system                                Sewer     Capital     $20,328    -    Unit rates estim   29-Feb-08
               Project & estimate provided by Glen Moore
      1-Jul-2009     Effluent retention upgrade                    Sewer       Grant          $15,246    -    Unit rates estim   29-Feb-08
               Project & estimate provided by Glen Moore. 2009-2011 progranne.
      1-Jul-2010     Effluent retention upgrade                    Sewer       Grant          $20,328    -    Unit rates estim   29-Feb-08
               Project & estimate provided by Glen Moore. 2009-2011 progranne.
      1-Jul-2011     Effluent retention upgrade                    Sewer       Grant          $15,246    -    Unit rates estim   29-Feb-08
               Project & estimate provided by Glen Moore. 2009-2011 progranne.

     Programme Component Water Pumping Stations
  Major Programme Sewage Pumping Stations
     Programme Component Boys Club
      Year          Description                                        Strategy      Type     Capital   OMA     Accuracy         CostDate
               Notes                                                                                     
      1-Jul-2017     Replacement pumps & electrical                     Sewer     Renewals    $57,682    -                            1-Jul-01
               Actual cost estimate + 20% SID
      1-Jul-2017     Well rehabilitation                                Sewer     Renewals    $69,420                             1-May-07
               Rehabilitation based on 35% original structural value

     Programme Component McDonalds
      Year          Description                                        Strategy      Type     Capital   OMA     Accuracy         CostDate
               Notes                                                                                     
      1-Jul-2026     Replacement pumps & electrical                     Sewer     Renewals    $61,839                                 1-Jul-01
               Actual 2001 cost + 20% SID

     Programme Component Minor stations
      Minor stations servicing a handful of properties

     Programme Component Primary School
      Year          Description                                        Strategy      Type     Capital   OMA     Accuracy         CostDate
               Notes                                                                                     
      1-Jul-2020     Replacement pumps & electrical                     Sewer     Renewals    $36,278         Tendered price          1-Jul-05
               Pumps replaced @ $20k, est switchboard cost $6k, added 20% SID

     Programme Component Royal
      Year          Description                                        Strategy      Type     Capital   OMA     Accuracy         CostDate
               Notes                                                                                     
      1-Jul-2017     Replacement pumps & electrical                     Sewer     Renewals    $99,539    -                            1-Jul-01
               Actual cost plus 20% for SID
      1-Jul-2017    Well rehabilitation                                 Sewer     Renewals   $139,132    -                        1-May-07
               Rehabilitation based on 35% original structural value

  Major Programme Sewage Treatment Plant
     Programme Component Biosolids
      Sludge management system
Tuesday, 1 July 2008                                                                                                    Page 2 of 5
      Year
               Notes
      1-Jul-2017
                    Description

                     Sludge lagoon no mech dewatering

                                                                  r
                                                                      Strategy

                                                                       Sewer
                                                                                        a ft
                                                                                        Type

                                                                                    Renewals
                                                                                                        Capital

                                                                                                      $156,883
                                                                                                                     OMA
                                                                                                                      
                                                                                                                       -
                                                                                                                                Accuracy         CostDate

                                                                                                                                                      1-Jul-03




                                                                D
               4000 EP rate selected. Based on MEU reference rates.

     Programme Component Polishing
      Year          Description                                       Strategy          Type            Capital      OMA        Accuracy         CostDate
               Notes                                                                                                  
      1-Jul-2008     Phosphorus removal system                         Sewer        Capital              $5,082        -      Unit rates estim   29-Feb-08
               Project & estimate provided by Glen Moore
      1-Jul-2017     Chlorine disinfection system                      Sewer        Renewals            $20,000        -      Unit rates estim   25-Jun-08
               Cl disinfection in lieu of UV as water used for controlled access effluent reuse applications
      1-Jul-2027      Chlorine disinfection system                       Sewer       Renewals            $20,000       -      Unit rates estim   25-Jun-08
               Cl disinfection in lieu of UV as water used for controlled access effluent reuse applications
      1-Jul-2037      Chlorine disinfection system                       Sewer       Renewals            $20,000       -      Unit rates estim   25-Jun-08
               Cl disinfection in lieu of UV as water used for controlled access effluent reuse applications

     Programme Component Preliminary
      Year          Description                                       Strategy          Type            Capital      OMA        Accuracy         CostDate
               Notes                                                                                                  
      1-Jul-2009     Flow metering upgrade                             Sewer        Capital             $20,328        -      Unit rates estim   29-Feb-08
               Project & estimate provided by Glen Moore
      1-Jul-2017     Inlet structure for aeration plant            Sewer            Renewals          $108,142         -                          1-Jun-03
               4000 EP rate selected. Based on MEU reference rates.

     Programme Component Secondary Treatment
      Year          Description                                       Strategy          Type            Capital      OMA        Accuracy         CostDate
               Notes                                                                                                  
      1-Jul-2017     Single unit aeration tank - electrical            Sewer        Renewals          $213,740         -                          1-Jun-03
               4000 EP rate selected. Based on MEU reference rates.
      1-Jul-2017     Single unit aeration tank - mechanical        Sewer            Renewals          $819,336         -                          1-Jun-03
               4000 EP rate selected. Based on MEU reference rates.
      1-Jul-2017     Single unit aeration tank - structure         Sewer            Renewals          $748,089         -                          1-Jun-03
               4000 EP rate selected. Based on MEU reference rates.
      1-Jul-2037     Single unit aeration tank - electrical        Sewer            Renewals          $213,740         -                          1-Jun-03
               4000 EP rate selected. Based on MEU reference rates.
      1-Jul-2037     Single unit aeration tank - mechanical        Sewer            Renewals          $819,336         -                          1-Jun-03
               4000 EP rate selected. Based on MEU reference rates.

     Programme Component Siteworks
      All ancillary works relating to site
      Year         Description                                        Strategy          Type            Capital      OMA        Accuracy         CostDate
             Notes                                                                                                    
      1-Jul-2017     Development of replacement site for STW           Sewer        Renewals          $426,723         -                              1-Jul-03
               Replacement siteworks, sized at 4000 EP. Note assumes reasonably flat site which is optimistic for Gundagai. Based on MEU reference rates.

  Major Programme Sewer Reticulation
     Programme Component Gravity
      Programme based on a $200,000 annual cap on rehabilitation (2007 values) with 2 yearly contract
      cycle. The backlog is managed through additional chemical root treatment and CCTV inspections,
      costed at $10/m every 5 years (ie $2/m/a 2007 value)
       Year       Description                    Strategy  Type       Capital  OMA     Accuracy     CostDate
             Notes                                                              
      1-Jul-2008     Expired assets inspection & maintenance           Sewer        Maint                      $0    +$309                        1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2009      Burke estate subdivision reticulation            Sewer        Developer           $60,985        -      Unit rates estim   29-Feb-08
               Project & estimate provided by Glen Moore
      1-Jul-2009     Expired assets inspection & maintenance           Sewer        Maint                      $0      -                          1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2009      Routine CCTV Inspections                         Sewer        Maint                      $0   +$10000                       1-May-08
               Clean & inspect 3km (approx 10%) of gravity main per year



Tuesday, 1 July 2008                                                                                                                    Page 3 of 5
      1-Jul-2010
               Root treatment & CCTV life expired assets
      1-Jul-2011
                      Expired assets inspection & maintenance

                      Expired assets inspection & maintenance


                                                                  r
                                                                   Sewer

                                                                   Sewer
                                                                                   a
                                                                               Maint

                                                                               Maint
                                                                                     ft                $0

                                                                                                       $0
                                                                                                                -

                                                                                                                -
                                                                                                                                 1-May-07

                                                                                                                                 1-May-07




                                                                D
               Root treatment & CCTV life expired assets
      1-Jul-2012      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2013      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2014      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2015      Expired assets inspection & maintenance      Sewer       Maint                   $0    +$30248             1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2015    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2016      Expired assets inspection & maintenance      Sewer       Maint                   $0    -$3220              1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2017      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2017    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2018      Expired assets inspection & maintenance      Sewer       Maint                   $0    -$3220              1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2019      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2019    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2020      Expired assets inspection & maintenance      Sewer       Maint                   $0    -$3220              1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2021      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2021    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2022      Expired assets inspection & maintenance      Sewer       Maint                   $0    -$2977              1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2023      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2023    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2024      Expired assets inspection & maintenance      Sewer       Maint                   $0    -$3220              1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2025      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2025    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2026      Expired assets inspection & maintenance      Sewer       Maint                   $0    -$3220              1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2027      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2027    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2028      Expired assets inspection & maintenance      Sewer       Maint                   $0    -$2837              1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2029      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2029    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2030      Expired assets inspection & maintenance      Sewer       Maint                   $0    -$3224              1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2031      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2031    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2032      Expired assets inspection & maintenance      Sewer       Maint                   $0    +$1363              1-May-07
               Root treatment & CCTV life expired assets

Tuesday, 1 July 2008                                                                                                   Page 4 of 5
      1-Jul-2033
               Root treatment & CCTV life expired assets
      1-Jul-2033
                      Expired assets inspection & maintenance

                    Mains rehabilitation programme


                                                                  r
                                                                   Sewer

                                                                   Sewer
                                                                                   a
                                                                               Maint

                                                                                     ft
                                                                              Renewals
                                                                                                       $0

                                                                                                  $211,983
                                                                                                                -                1-May-07

                                                                                                                                 1-May-07




                                                                D
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2034      Expired assets inspection & maintenance      Sewer       Maint                   $0    +$13826             1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2035      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2035    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets
      1-Jul-2036      Expired assets inspection & maintenance      Sewer       Maint                   $0    -$3276              1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2037      Expired assets inspection & maintenance      Sewer       Maint                   $0       -                1-May-07
               Root treatment & CCTV life expired assets
      1-Jul-2037    Mains rehabilitation programme                 Sewer      Renewals            $211,983                       1-May-07
               Capped programme - phased with additional inspection & maintenance for life expired assets




Tuesday, 1 July 2008                                                                                                   Page 5 of 5
Gundagai Shire Council
Strategic Business Plan: Sewerage Services
Draft 1.5, May 2009


                                                                                                  ra ft
Appendix C:                                  Detailed FINMOD Outputs
                                                                              D




 Alf Grigg & Associates                                                                                         C-1
 Phil Hawley & Associates
 Michael Cuthbert, Engineering Consultant
 D:\Data\Consulting\Gundagai SC\Best Practice Plans\Reports\20090115 Strategic Business Plan Sewer 1.5.doc 32
Revision 2 : Base Case                                                                                                                         ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                             375
                                             336
                                              55
                                             315
                                                      395
                                                      361
                                                        61
                                                      339
                                                              248
                                                              211
                                                               61
                                                              289
                                                                      248
                                                                      211
                                                                       60
                                                                      289
                                                                             273
                                                                             236
                                                                               61
                                                                             302
                                                                                     300
                                                                                     263
                                                                                      59
                                                                                     304
                                                                                             330
                                                                                             289
                                                                                              59
                                                                                             303
                                                                                                    363
                                                                                                    322
                                                                                                      59
                                                                                                    303
                                                                                                            395
                                                                                                            354
                                                                                                             59
                                                                                                            302
                                                                                                                    395
                                                                                                                    355
                                                                                                                     58
                                                                                                                    303
                                                                                                                           395
                                                                                                                           352
                                                                                                                             57
                                                                                                                           339
                                                                                                                                   D
                                                                                                                                   395
                                                                                                                                   354
                                                                                                                                    58
                                                                                                                                   335
                                                                                                                                           395
                                                                                                                                           353
                                                                                                                                            57
                                                                                                                                           334
                                                                                                                                                  395
                                                                                                                                                  354
                                                                                                                                                    56
                                                                                                                                                  330
                                                                                                                                                          395
                                                                                                                                                          355
                                                                                                                                                            57
                                                                                                                                                          331
                                                                                                                                                                  395
                                                                                                                                                                  355
                                                                                                                                                                   56
                                                                                                                                                                  326
                                                                                                                                                                          395
                                                                                                                                                                          355
                                                                                                                                                                           55
                                                                                                                                                                          327
                                                                                                                                                                                 395
                                                                                                                                                                                 356
                                                                                                                                                                                   55
                                                                                                                                                                                 324
                                                                                                                                                                                         395
                                                                                                                                                                                         356
                                                                                                                                                                                          55
                                                                                                                                                                                         323
                                                                                                                                                                                                 395
                                                                                                                                                                                                 357
                                                                                                                                                                                                  55
                                                                                                                                                                                                 320
                                                                                                                                                                                                        395
                                                                                                                                                                                                        357
                                                                                                                                                                                                          54
                                                                                                                                                                                                        320
                                                                                                                                                                                                                395
                                                                                                                                                                                                                358
                                                                                                                                                                                                                 54
                                                                                                                                                                                                                316
                                                                                                                                                                                                                        395
                                                                                                                                                                                                                        358
                                                                                                                                                                                                                         53
                                                                                                                                                                                                                        316
                                                                                                                                                                                                                               395
                                                                                                                                                                                                                               357
                                                                                                                                                                                                                                 53
                                                                                                                                                                                                                               313
                                                                                                                                                                                                                                       395
                                                                                                                                                                                                                                       358
                                                                                                                                                                                                                                        52
                                                                                                                                                                                                                                       313
                                                                                                                                                                                                                                               395
                                                                                                                                                                                                                                               359
                                                                                                                                                                                                                                                52
                                                                                                                                                                                                                                               308
                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                      359
                                                                                                                                                                                                                                                        51
                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                              359
                                                                                                                                                                                                                                                               51
                                                                                                                                                                                                                                                              310
                                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                                      360
                                                                                                                                                                                                                                                                       51
                                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                                              360
                                                                                                                                                                                                                                                                               50
                                                                                                                                                                                                                                                                              323
                                                                                                                                                                                                                                                                                     395
                                                                                                                                                                                                                                                                                     360
                                                                                                                                                                                                                                                                                      50
                                                                                                                                                                                                                                                                                     323
                                                                                                                                                                                                                                                                                             395
                                                                                                                                                                                                                                                                                             361
                                                                                                                                                                                                                                                                                              49
                                                                                                                                                                                                                                                                                             319
Operating Sales Margin (%)                 17.00    26.51 -24.91 -24.48 -11.73 -2.07        7.73 16.37 23.62 23.71 17.2 18.39               19 19.79 19.91 20.85 20.77 21.75 21.98 22.86 23.08 23.98 24.04 24.81 25.08 26.15 26.16 26.08 26.51 23.94 24.28 25.15
Economic Real Rate of Return (%)            1.43      2.54 -1.35 -1.36       0.76   0.26    0.95 1.52      2.46    2.54 1.81         2    1.27 1.35       1.34   1.43 1.41       1.52   1.52    1.62 1.63      1.72     1.7     1.8    1.8    1.93 1.91      1.95    1.97 1.81      1.83    1.94
Debt Service Ratio                          0.27      0.44      0       0       0      0       0       0      0       0       0      0    0.35 0.35       0.38   0.37     0.4 0.39       0.4    0.38 0.39      0.38    0.41     0.4   0.42     0.4 0.42      0.41    0.43 0.42      0.44    0.43
Debt/Equity Ratio                           0.17      0.32      0       0       0      0       0       0      0       0       0      0    0.31 0.29       0.31    0.3 0.32        0.3    0.3    0.27 0.27      0.25    0.26 0.24      0.25    0.22 0.22      0.19    0.19 0.17      0.17    0.14
Interest Cover                              0.76      1.87      0       0       0      0       0       0      0       0       0      0    0.88     0.8 0.76      0.84 0.79       0.89   0.88    0.98 0.98      1.07    1.03 1.18      1.14    1.33 1.31      1.48    1.48 1.51       1.5    1.87
Return on capital (%)                       1.55      2.92 -1.18 -1.15       0.89   0.49    1.19 1.82      2.73    2.92     2.4 2.56      1.59 1.38       1.39   1.47 1.46       1.57   1.55    1.63 1.63      1.69    1.67 1.77      1.79    1.91 1.89      1.92    1.94 1.79      1.78      1.9
Cash and Investments (2007/08$'000)          256     1306     109     142    173     243     375    570     814 1067 1074 1306             118    146     160     181     186    202     111     133      49     11      22      44     52      75      36     55      63      61     46      45
Debt outstanding (2007/08$'000)            1021      1897       0       0       0      0       0       0      0       0       0      0 1828 1738 1857 1792 1897 1784 1781 1662 1652 1526 1626 1485 1551 1399 1402 1236 1275 1094 1116                                                        919
Net Debt (2007/08$'000)                      961     1711       0       0       0      0       0       0      0       0       0      0 1710 1592 1697 1611 1711 1582 1670 1529 1603 1515 1604 1441 1499 1324 1366 1181 1212 1033 1070                                                        874
Net Financial Position                      -705     1306     109     142    173     243     375    570     814 1067 1074 1306 -1592 -1446 -1537 -1430 -1525 -1380 -1559 -1396 -1554 -1504 -1582 -1397 -1447 -1249 -1330 -1126 -1149                                         -972 -1024     -829
Revision 2 : STW Replacement in 2012                                                                                                           ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                             417
                                             376
                                              55
                                             315
                                                      450
                                                      412
                                                        61
                                                      339
                                                              248
                                                              211
                                                               61
                                                              289
                                                                      248
                                                                      211
                                                                       60
                                                                      289
                                                                             273
                                                                             236
                                                                               61
                                                                             302
                                                                                     300
                                                                                     263
                                                                                      59
                                                                                     304
                                                                                             330
                                                                                             289
                                                                                              59
                                                                                             303
                                                                                                    363
                                                                                                    322
                                                                                                      59
                                                                                                    303
                                                                                                            399
                                                                                                            355
                                                                                                             59
                                                                                                            302
                                                                                                                    439
                                                                                                                    393
                                                                                                                     58
                                                                                                                    303
                                                                                                                           450
                                                                                                                           403
                                                                                                                             57
                                                                                                                           339
                                                                                                                                   D
                                                                                                                                   450
                                                                                                                                   406
                                                                                                                                    58
                                                                                                                                   335
                                                                                                                                           450
                                                                                                                                           405
                                                                                                                                            57
                                                                                                                                           334
                                                                                                                                                  450
                                                                                                                                                  405
                                                                                                                                                    56
                                                                                                                                                  330
                                                                                                                                                          450
                                                                                                                                                          407
                                                                                                                                                            57
                                                                                                                                                          331
                                                                                                                                                                  450
                                                                                                                                                                  406
                                                                                                                                                                   56
                                                                                                                                                                  326
                                                                                                                                                                          450
                                                                                                                                                                          408
                                                                                                                                                                           55
                                                                                                                                                                          327
                                                                                                                                                                                 450
                                                                                                                                                                                 408
                                                                                                                                                                                   55
                                                                                                                                                                                 324
                                                                                                                                                                                         450
                                                                                                                                                                                         408
                                                                                                                                                                                          55
                                                                                                                                                                                         323
                                                                                                                                                                                                 450
                                                                                                                                                                                                 409
                                                                                                                                                                                                  55
                                                                                                                                                                                                 320
                                                                                                                                                                                                        450
                                                                                                                                                                                                        408
                                                                                                                                                                                                          54
                                                                                                                                                                                                        320
                                                                                                                                                                                                                450
                                                                                                                                                                                                                409
                                                                                                                                                                                                                 54
                                                                                                                                                                                                                316
                                                                                                                                                                                                                        450
                                                                                                                                                                                                                        410
                                                                                                                                                                                                                         53
                                                                                                                                                                                                                        316
                                                                                                                                                                                                                                450
                                                                                                                                                                                                                                410
                                                                                                                                                                                                                                 53
                                                                                                                                                                                                                                313
                                                                                                                                                                                                                                       450
                                                                                                                                                                                                                                       411
                                                                                                                                                                                                                                        52
                                                                                                                                                                                                                                       313
                                                                                                                                                                                                                                               450
                                                                                                                                                                                                                                               411
                                                                                                                                                                                                                                                52
                                                                                                                                                                                                                                               308
                                                                                                                                                                                                                                                       450
                                                                                                                                                                                                                                                       411
                                                                                                                                                                                                                                                        51
                                                                                                                                                                                                                                                       309
                                                                                                                                                                                                                                                              450
                                                                                                                                                                                                                                                              411
                                                                                                                                                                                                                                                               51
                                                                                                                                                                                                                                                              310
                                                                                                                                                                                                                                                                      450
                                                                                                                                                                                                                                                                      412
                                                                                                                                                                                                                                                                       51
                                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                                              450
                                                                                                                                                                                                                                                                              412
                                                                                                                                                                                                                                                                               50
                                                                                                                                                                                                                                                                              323
                                                                                                                                                                                                                                                                                     450
                                                                                                                                                                                                                                                                                     412
                                                                                                                                                                                                                                                                                      50
                                                                                                                                                                                                                                                                                     323
                                                                                                                                                                                                                                                                                             450
                                                                                                                                                                                                                                                                                             412
                                                                                                                                                                                                                                                                                              49
                                                                                                                                                                                                                                                                                             319
Operating Sales Margin (%)                 24.20    35.37 -24.91 -24.48 -11.73 -2.07        7.73 16.37     24.3 31.27 27.49 28.53 28.77 29.58 29.78 30.42 30.52                  31.4 31.64 32.35 32.42 33.16 33.37            34.1 34.32 35.04 35.22 35.05 35.37 33.25 33.38 34.25
Economic Real Rate of Return (%)            2.01      2.94 -1.35 -1.36       0.76   0.26    0.95       1   1.66    2.41 2.16       2.3    2.18     2.3     2.3   2.38 2.37        2.5    2.5    2.62     2.6    2.7     2.7 2.82      2.82    2.94 2.94      2.62    2.64 2.53      2.52    2.64
Debt Service Ratio                          0.32      0.49      0       0       0      0       0    0.49   0.44    0.38 0.36      0.35    0.42 0.41       0.42   0.41 0.42       0.41   0.42    0.41 0.42       0.4    0.42 0.41      0.42      0.4 0.39     0.32    0.32      0.3   0.3    0.28
Debt/Equity Ratio                           0.23      0.42      0       0       0      0       0    0.42    0.4    0.38 0.35      0.33    0.39 0.36       0.36   0.33 0.33       0.29   0.29    0.26 0.25      0.22    0.22 0.18      0.18    0.14 0.12      0.24    0.21 0.19      0.17    0.15
Interest Cover                              1.37      3.37      0       0       0      0       0    0.51   0.78    1.17     1.1 1.21      1.01 1.12       1.11   1.24 1.22       1.38   1.39    1.58 1.59      1.87    1.86     2.2   2.29    2.89 3.37      1.78     1.9 1.98      2.15     2.5
Return on capital (%)                       2.04      2.92 -1.18 -1.15       0.89   0.49    1.21 1.16      1.71    2.44     2.2 2.29      2.19 2.28       2.27   2.35 2.33       2.47   2.45    2.59 2.55      2.67    2.65 2.79      2.73    2.92 2.91       2.6    2.61 2.51       2.5    2.62
Cash and Investments (2007/08$'000)          151      391     109     142    173     243     391    151     162     231      72    140      65    103       52     59      42      70     59     113    108     106     104     167    171     245     106    230     144     269    182     327
Debt outstanding (2007/08$'000)             1365     2241       0       0       0      0       0 2241 2132 2022 1913 1803 2160 2026 2020 1878 1893 1741 1744 1581 1575 1399 1393 1190 1220                                                     953     820 1701 1578 1453 1326 1199
Net Debt (2007/08$'000)                     1249     2095       0       0       0      0       0 2090 1970 1791 1841 1663 2095 1923 1968 1819 1851 1671 1685 1468 1467 1293 1289 1023 1049                                                     708     714 1471 1434 1184 1144               872
Net Financial Position                     -1098      391     109     142    173     243     391 -1939 -1808 -1560 -1769 -1523 -2030 -1820 -1916 -1760 -1809 -1601 -1626 -1355 -1359 -1187 -1185                               -856 -878      -463    -608 -1241 -1290       -915   -962 -545
Revision 2 : STW Replacement in 2022                                                                                                           ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                            363
                                            325
                                              55
                                            315
                                                      380
                                                      347
                                                        61
                                                      339
                                                              248
                                                              211
                                                               61
                                                              289
                                                                      248
                                                                      211
                                                                       60
                                                                      289
                                                                             273
                                                                             236
                                                                               61
                                                                             302
                                                                                     300
                                                                                     263
                                                                                      59
                                                                                     304
                                                                                             330
                                                                                             289
                                                                                              59
                                                                                             303
                                                                                                    363
                                                                                                    322
                                                                                                      59
                                                                                                    303
                                                                                                            380
                                                                                                            338
                                                                                                             59
                                                                                                            302
                                                                                                                    380
                                                                                                                    339
                                                                                                                     58
                                                                                                                    303
                                                                                                                           380
                                                                                                                           339
                                                                                                                             57
                                                                                                                           339
                                                                                                                                   D
                                                                                                                                   380
                                                                                                                                   340
                                                                                                                                    58
                                                                                                                                   335
                                                                                                                                           380
                                                                                                                                           340
                                                                                                                                            57
                                                                                                                                           334
                                                                                                                                                  380
                                                                                                                                                  341
                                                                                                                                                    56
                                                                                                                                                  330
                                                                                                                                                          380
                                                                                                                                                          341
                                                                                                                                                            57
                                                                                                                                                          331
                                                                                                                                                                  380
                                                                                                                                                                  342
                                                                                                                                                                   56
                                                                                                                                                                  326
                                                                                                                                                                          380
                                                                                                                                                                          341
                                                                                                                                                                           55
                                                                                                                                                                          327
                                                                                                                                                                                  380
                                                                                                                                                                                  341
                                                                                                                                                                                   55
                                                                                                                                                                                  324
                                                                                                                                                                                         380
                                                                                                                                                                                         342
                                                                                                                                                                                          55
                                                                                                                                                                                         323
                                                                                                                                                                                                 380
                                                                                                                                                                                                 343
                                                                                                                                                                                                  55
                                                                                                                                                                                                 320
                                                                                                                                                                                                        380
                                                                                                                                                                                                        343
                                                                                                                                                                                                          54
                                                                                                                                                                                                        320
                                                                                                                                                                                                                380
                                                                                                                                                                                                                343
                                                                                                                                                                                                                 54
                                                                                                                                                                                                                316
                                                                                                                                                                                                                        380
                                                                                                                                                                                                                        345
                                                                                                                                                                                                                         53
                                                                                                                                                                                                                        316
                                                                                                                                                                                                                                380
                                                                                                                                                                                                                                344
                                                                                                                                                                                                                                 53
                                                                                                                                                                                                                                313
                                                                                                                                                                                                                                       380
                                                                                                                                                                                                                                       344
                                                                                                                                                                                                                                        52
                                                                                                                                                                                                                                       313
                                                                                                                                                                                                                                               380
                                                                                                                                                                                                                                               345
                                                                                                                                                                                                                                                52
                                                                                                                                                                                                                                               308
                                                                                                                                                                                                                                                       380
                                                                                                                                                                                                                                                       344
                                                                                                                                                                                                                                                        51
                                                                                                                                                                                                                                                       309
                                                                                                                                                                                                                                                              380
                                                                                                                                                                                                                                                              345
                                                                                                                                                                                                                                                               51
                                                                                                                                                                                                                                                              310
                                                                                                                                                                                                                                                                      380
                                                                                                                                                                                                                                                                      346
                                                                                                                                                                                                                                                                       51
                                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                                              380
                                                                                                                                                                                                                                                                              346
                                                                                                                                                                                                                                                                               50
                                                                                                                                                                                                                                                                              323
                                                                                                                                                                                                                                                                                     380
                                                                                                                                                                                                                                                                                     346
                                                                                                                                                                                                                                                                                      50
                                                                                                                                                                                                                                                                                     323
                                                                                                                                                                                                                                                                                             380
                                                                                                                                                                                                                                                                                             347
                                                                                                                                                                                                                                                                                              49
                                                                                                                                                                                                                                                                                             319
Operating Sales Margin (%)                 14.58    23.53 -24.91 -24.48 -11.73 -2.07        7.73 16.37 20.66 20.57 14.19 15.24 15.45 16.64 16.74 17.82 17.71 18.51 19.07 19.87                            20 20.85 21.19         22   22.2 23.25      23.2 23.21 23.53 21.03 21.27 22.26
Economic Real Rate of Return (%)            1.29      2.12 -1.35 -1.36       0.76   0.26    0.95 1.52      2.07    2.12 1.44       1.6    1.47 1.64       1.63   1.77 1.73       1.24   1.27    1.36 1.36      1.43    1.45 1.54      1.54    1.65 1.63      1.67    1.68 1.54      1.54    1.65
Debt Service Ratio                          0.13       0.3      0       0       0      0       0       0      0       0       0      0       0       0       0      0       0     0.3   0.29    0.28 0.28      0.27    0.27 0.26      0.27    0.26 0.26      0.25    0.25 0.24      0.24    0.23
Debt/Equity Ratio                           0.08      0.24      0       0       0      0       0       0      0       0       0      0       0       0       0      0       0    0.24   0.23    0.22     0.2   0.19    0.19 0.17      0.17    0.16 0.15      0.14    0.12 0.11       0.1    0.09
Interest Cover                              0.75      2.46      0       0       0      0       0       0      0       0       0      0       0       0       0      0       0    1.01   0.95    1.05 1.08      1.18    1.18 1.34      1.35    1.58 1.61      1.79    1.91 1.96      1.98    2.46
Return on capital (%)                       1.50      2.57 -1.18 -1.15       0.89   0.49    1.19 1.82      2.41    2.57 2.07      2.22    2.05     2.1 2.12      2.25 2.24       1.51   1.36    1.43     1.4   1.45    1.45 1.54      1.53    1.66 1.63      1.68    1.66 1.54      1.51    1.65
Cash and Investments (2007/08$'000)         448      1243     109     142    173     243     375    570     796 1028 1016 1227             845 1056 1054 1238 1243                380    217     280    130     140      59     141     67     160      96    170      63     152     84     183
Debt outstanding (2007/08$'000)             552      1556       0       0       0      0       0       0      0       0       0      0       0       0       0      0       0 1556 1480 1404 1328 1251 1235 1154 1135 1052 1027                               938     859     767    735     638
Net Debt (2007/08$'000)                     475      1263       0       0       0      0       0       0      0       0       0      0       0       0       0      0       0 1176 1263 1124 1198 1111 1176 1013 1068                          892     931    768     796     615    651     455
Net Financial Position                       -27     1243     109     142    173     243     375    570     796 1028 1016 1227             845 1056 1054 1238 1243               -796 -1046     -844 -1068 -971 -1117          -872 -1001     -732    -835 -598      -733    -463   -567 -272
Revision 2 : New works 50% subsidy                                                                                                             ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                             375
                                             336
                                              55
                                             315
                                                      395
                                                      361
                                                        61
                                                      339
                                                              248
                                                              211
                                                               61
                                                              289
                                                                      248
                                                                      211
                                                                       60
                                                                      289
                                                                             273
                                                                             236
                                                                               61
                                                                             302
                                                                                     300
                                                                                     263
                                                                                      59
                                                                                     304
                                                                                             330
                                                                                             289
                                                                                              59
                                                                                             303
                                                                                                    363
                                                                                                    322
                                                                                                      59
                                                                                                    303
                                                                                                            395
                                                                                                            354
                                                                                                             59
                                                                                                            302
                                                                                                                    395
                                                                                                                    355
                                                                                                                     58
                                                                                                                    303
                                                                                                                           395
                                                                                                                           352
                                                                                                                             57
                                                                                                                           339
                                                                                                                                   D
                                                                                                                                   395
                                                                                                                                   354
                                                                                                                                    58
                                                                                                                                   335
                                                                                                                                           395
                                                                                                                                           353
                                                                                                                                            57
                                                                                                                                           334
                                                                                                                                                  395
                                                                                                                                                  354
                                                                                                                                                    56
                                                                                                                                                  330
                                                                                                                                                          395
                                                                                                                                                          355
                                                                                                                                                            57
                                                                                                                                                          331
                                                                                                                                                                  395
                                                                                                                                                                  355
                                                                                                                                                                   56
                                                                                                                                                                  326
                                                                                                                                                                          395
                                                                                                                                                                          355
                                                                                                                                                                           55
                                                                                                                                                                          327
                                                                                                                                                                                 395
                                                                                                                                                                                 356
                                                                                                                                                                                   55
                                                                                                                                                                                 324
                                                                                                                                                                                         395
                                                                                                                                                                                         356
                                                                                                                                                                                          55
                                                                                                                                                                                         323
                                                                                                                                                                                                 395
                                                                                                                                                                                                 357
                                                                                                                                                                                                  55
                                                                                                                                                                                                 320
                                                                                                                                                                                                        395
                                                                                                                                                                                                        357
                                                                                                                                                                                                          54
                                                                                                                                                                                                        320
                                                                                                                                                                                                                395
                                                                                                                                                                                                                358
                                                                                                                                                                                                                 54
                                                                                                                                                                                                                316
                                                                                                                                                                                                                        395
                                                                                                                                                                                                                        358
                                                                                                                                                                                                                         53
                                                                                                                                                                                                                        316
                                                                                                                                                                                                                               395
                                                                                                                                                                                                                               357
                                                                                                                                                                                                                                 53
                                                                                                                                                                                                                               313
                                                                                                                                                                                                                                       395
                                                                                                                                                                                                                                       358
                                                                                                                                                                                                                                        52
                                                                                                                                                                                                                                       313
                                                                                                                                                                                                                                               395
                                                                                                                                                                                                                                               359
                                                                                                                                                                                                                                                52
                                                                                                                                                                                                                                               308
                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                      359
                                                                                                                                                                                                                                                        51
                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                              359
                                                                                                                                                                                                                                                               51
                                                                                                                                                                                                                                                              310
                                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                                      360
                                                                                                                                                                                                                                                                       51
                                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                                              360
                                                                                                                                                                                                                                                                               50
                                                                                                                                                                                                                                                                              323
                                                                                                                                                                                                                                                                                     395
                                                                                                                                                                                                                                                                                     360
                                                                                                                                                                                                                                                                                      50
                                                                                                                                                                                                                                                                                     323
                                                                                                                                                                                                                                                                                             395
                                                                                                                                                                                                                                                                                             361
                                                                                                                                                                                                                                                                                              49
                                                                                                                                                                                                                                                                                             319
Operating Sales Margin (%)                 17.00    26.51 -24.91 -24.48 -11.73 -2.07        7.73 16.37 23.62 23.71 17.2 18.39               19 19.79 19.91 20.85 20.77 21.75 21.98 22.86 23.08 23.98 24.04 24.81 25.08 26.15 26.16 26.08 26.51 23.94 24.28 25.15
Economic Real Rate of Return (%)            1.44      2.55 -1.35 -1.36       0.76   0.26    0.95 1.52      2.46    2.55 1.82      2.01    1.27 1.35       1.35   1.44 1.42       1.53   1.53    1.63 1.64      1.72    1.72 1.81      1.82    1.94 1.93      1.96    1.99 1.83      1.85    1.95
Debt Service Ratio                          0.25       0.4      0       0       0      0       0       0      0       0       0      0    0.34 0.34       0.37   0.36 0.39       0.38   0.37    0.36 0.38      0.36    0.39 0.38       0.4    0.38 0.39      0.38      0.4 0.39      0.4    0.39
Debt/Equity Ratio                           0.15      0.31      0       0       0      0       0       0      0       0       0      0     0.3 0.29       0.31   0.29 0.31       0.29   0.27    0.25 0.25      0.23    0.24 0.22      0.23      0.2 0.19     0.16    0.17 0.14      0.13    0.11
Interest Cover                              0.84      2.29      0       0       0      0       0       0      0       0       0      0    0.92 0.84       0.79   0.88 0.83       0.92   0.94    1.06 1.02      1.15    1.12 1.26      1.24    1.44     1.5   1.69    1.66 1.74      1.81    2.29
Return on capital (%)                       1.58      2.95 -1.18 -1.14       0.93   0.53    1.25 1.87      2.78    2.95 2.43      2.59    1.62 1.43       1.43   1.52 1.51       1.61   1.57    1.65 1.61      1.71     1.7     1.8   1.82    1.94 1.91      1.95    1.97 1.82       1.8    1.93
Cash and Investments (2007/08$'000)          311     1376     109     145    197     286     436    633     880 1134 1143 1376             193    226     242     268     277    296     104     139      83     56      81    114     136     171      61     98     125     142     72      97
Debt outstanding (2007/08$'000)              960     1883       0       0       0      0       0       0      0       0       0      0 1809 1721 1840 1776 1883 1770 1658 1546 1562 1441 1526 1393 1466 1320 1242 1086 1137                                                   967    923     741
Net Debt (2007/08$'000)                      861     1616       0       0       0      0       0       0      0       0       0      0 1616 1495 1598 1508 1606 1474 1554 1407 1479 1385 1445 1279 1330 1149 1181                                             988 1012        825    851     644
Net Financial Position                      -550     1376     109     145    197     286     436    633     880 1134 1143 1376 -1423 -1269 -1356 -1240 -1329 -1178 -1450 -1268 -1396 -1329 -1364 -1165 -1194                                  -978 -1120 -890        -887    -683   -779 -547
Revision 2 : New works 50% subsidy incl STW                                                                                                    ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                            367
                                            329
                                              55
                                            315
                                                      385
                                                      352
                                                        61
                                                      339
                                                              248
                                                              211
                                                               61
                                                              289
                                                                      248
                                                                      211
                                                                       60
                                                                      289
                                                                             273
                                                                             236
                                                                               61
                                                                             302
                                                                                     300
                                                                                     263
                                                                                      59
                                                                                     304
                                                                                             330
                                                                                             289
                                                                                              59
                                                                                             303
                                                                                                    363
                                                                                                    322
                                                                                                      59
                                                                                                    303
                                                                                                            385
                                                                                                            343
                                                                                                             59
                                                                                                            302
                                                                                                                    385
                                                                                                                    343
                                                                                                                     58
                                                                                                                    303
                                                                                                                           385
                                                                                                                           344
                                                                                                                             57
                                                                                                                           339
                                                                                                                                   D
                                                                                                                                   385
                                                                                                                                   344
                                                                                                                                    58
                                                                                                                                   335
                                                                                                                                           385
                                                                                                                                           345
                                                                                                                                            57
                                                                                                                                           334
                                                                                                                                                  385
                                                                                                                                                  344
                                                                                                                                                    56
                                                                                                                                                  330
                                                                                                                                                          385
                                                                                                                                                          346
                                                                                                                                                            57
                                                                                                                                                          331
                                                                                                                                                                  385
                                                                                                                                                                  345
                                                                                                                                                                   56
                                                                                                                                                                  326
                                                                                                                                                                          385
                                                                                                                                                                          346
                                                                                                                                                                           55
                                                                                                                                                                          327
                                                                                                                                                                                 385
                                                                                                                                                                                 347
                                                                                                                                                                                   55
                                                                                                                                                                                 324
                                                                                                                                                                                         385
                                                                                                                                                                                         348
                                                                                                                                                                                          55
                                                                                                                                                                                         323
                                                                                                                                                                                                 385
                                                                                                                                                                                                 348
                                                                                                                                                                                                  55
                                                                                                                                                                                                 320
                                                                                                                                                                                                        385
                                                                                                                                                                                                        347
                                                                                                                                                                                                          54
                                                                                                                                                                                                        320
                                                                                                                                                                                                                385
                                                                                                                                                                                                                348
                                                                                                                                                                                                                 54
                                                                                                                                                                                                                316
                                                                                                                                                                                                                        385
                                                                                                                                                                                                                        349
                                                                                                                                                                                                                         53
                                                                                                                                                                                                                        316
                                                                                                                                                                                                                               385
                                                                                                                                                                                                                               348
                                                                                                                                                                                                                                 53
                                                                                                                                                                                                                               313
                                                                                                                                                                                                                                       385
                                                                                                                                                                                                                                       349
                                                                                                                                                                                                                                        52
                                                                                                                                                                                                                                       313
                                                                                                                                                                                                                                               385
                                                                                                                                                                                                                                               349
                                                                                                                                                                                                                                                52
                                                                                                                                                                                                                                               308
                                                                                                                                                                                                                                                      385
                                                                                                                                                                                                                                                      349
                                                                                                                                                                                                                                                        51
                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                              385
                                                                                                                                                                                                                                                              350
                                                                                                                                                                                                                                                               51
                                                                                                                                                                                                                                                              310
                                                                                                                                                                                                                                                                      385
                                                                                                                                                                                                                                                                      350
                                                                                                                                                                                                                                                                       51
                                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                                             385
                                                                                                                                                                                                                                                                             351
                                                                                                                                                                                                                                                                               50
                                                                                                                                                                                                                                                                             323
                                                                                                                                                                                                                                                                                     385
                                                                                                                                                                                                                                                                                     352
                                                                                                                                                                                                                                                                                      50
                                                                                                                                                                                                                                                                                     323
                                                                                                                                                                                                                                                                                             385
                                                                                                                                                                                                                                                                                             351
                                                                                                                                                                                                                                                                                              49
                                                                                                                                                                                                                                                                                             319
Operating Sales Margin (%)                  9.90    21.68 -24.91 -24.48 -11.73 -2.07        7.73 16.37 21.68 21.55 15.21 16.36            7.85 8.99       9.31 10.47 10.3 11.29 11.83 12.48 12.48 13.52 13.87 14.77 14.97 15.95 16.16 16.21 16.56 14.11 14.54 15.56
Economic Real Rate of Return (%)            0.95      2.26 -1.35 -1.36       0.76   0.26    0.95 1.52       2.2    2.26 1.57      1.74    0.51 0.61       0.63   0.72 0.71        0.8   0.84    0.91 0.91         1    1.03 1.13      1.14    1.25 1.27      1.31    1.34 1.17      1.21    1.33
Debt Service Ratio                          0.01      0.02      0       0       0      0       0       0      0       0       0      0    0.02 0.02       0.02   0.02 0.02       0.02   0.02    0.02 0.02      0.02    0.02 0.02      0.01    0.02 0.01      0.01    0.01 0.01      0.01    0.01
Debt/Equity Ratio                           0.01      0.02      0       0       0      0       0       0      0       0       0      0    0.02 0.02       0.01   0.01 0.01       0.01   0.01    0.01 0.01      0.01    0.01 0.01      0.01       0       0      0       0       0      0       0
Interest Cover                             33.26      330       0       0       0      0       0       0      0       0       0      0    6.58 5.92        6.5   7.83     9.8 11.7      12.8    14.6      17 21.63 22.88         26 36.33       41 42.67 69.25       72.5 94.67      148     330
Return on capital (%)                       1.41      5.15 -1.18 -1.14       0.93   0.53    1.25 1.87      2.56     2.7 2.21      2.37    5.15     0.7 0.75      0.87 0.88       1.02   1.08     1.2 1.21      1.32    1.35 1.49       1.5    1.64 1.64      1.72    1.73 1.64      1.65    1.78
Cash and Investments (2007/08$'000)         928      2322     109     145    197     286     436    633     867 1106 1102 1322              85    271     243     403     385    591     586     804    807     971     984 1221 1243 1489 1520 1771 1807 2047 2073 2322
Debt outstanding (2007/08$'000)               42      123       0       0       0      0       0       0      0       0       0      0     123    117     111     105      99      93     86      80      74     68      62      55     49      42      35     29      22      14      7       0
Net Debt (2007/08$'000)                        1        38      0       0       0      0       0       0      0       0       0      0      38       0       0      0       0       0      0       0       0      0       0       0      0       0       0      0       0       0      0       0
Net Financial Position                      926      2322     109     145    197     286     436    633     867 1106 1102 1322              47    271     243     403     385    591     586     804    807     971     984 1221 1243 1489 1520 1771 1807 2047 2073 2322
Revision 2 : Sensitivity - Borrowings @ 8.5%                                                                                                   ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                             375
                                             336
                                              55
                                             315
                                                      395
                                                      361
                                                        61
                                                      339
                                                              248
                                                              211
                                                               61
                                                              289
                                                                      248
                                                                      211
                                                                       60
                                                                      289
                                                                             273
                                                                             236
                                                                               61
                                                                             302
                                                                                     300
                                                                                     263
                                                                                      59
                                                                                     304
                                                                                             330
                                                                                             289
                                                                                              59
                                                                                             303
                                                                                                    363
                                                                                                    322
                                                                                                      59
                                                                                                    303
                                                                                                            395
                                                                                                            354
                                                                                                             59
                                                                                                            302
                                                                                                                    395
                                                                                                                    355
                                                                                                                     58
                                                                                                                    303
                                                                                                                           395
                                                                                                                           352
                                                                                                                             57
                                                                                                                           339
                                                                                                                                   D
                                                                                                                                   395
                                                                                                                                   354
                                                                                                                                    58
                                                                                                                                   335
                                                                                                                                           395
                                                                                                                                           353
                                                                                                                                            57
                                                                                                                                           334
                                                                                                                                                  395
                                                                                                                                                  354
                                                                                                                                                    56
                                                                                                                                                  330
                                                                                                                                                          395
                                                                                                                                                          355
                                                                                                                                                            57
                                                                                                                                                          331
                                                                                                                                                                  395
                                                                                                                                                                  355
                                                                                                                                                                   56
                                                                                                                                                                  326
                                                                                                                                                                          395
                                                                                                                                                                          355
                                                                                                                                                                           55
                                                                                                                                                                          327
                                                                                                                                                                                 395
                                                                                                                                                                                 356
                                                                                                                                                                                   55
                                                                                                                                                                                 324
                                                                                                                                                                                         395
                                                                                                                                                                                         356
                                                                                                                                                                                          55
                                                                                                                                                                                         323
                                                                                                                                                                                                 395
                                                                                                                                                                                                 357
                                                                                                                                                                                                  55
                                                                                                                                                                                                 320
                                                                                                                                                                                                        395
                                                                                                                                                                                                        357
                                                                                                                                                                                                          54
                                                                                                                                                                                                        320
                                                                                                                                                                                                                395
                                                                                                                                                                                                                358
                                                                                                                                                                                                                 54
                                                                                                                                                                                                                316
                                                                                                                                                                                                                        395
                                                                                                                                                                                                                        358
                                                                                                                                                                                                                         53
                                                                                                                                                                                                                        316
                                                                                                                                                                                                                               395
                                                                                                                                                                                                                               357
                                                                                                                                                                                                                                 53
                                                                                                                                                                                                                               313
                                                                                                                                                                                                                                       395
                                                                                                                                                                                                                                       358
                                                                                                                                                                                                                                        52
                                                                                                                                                                                                                                       313
                                                                                                                                                                                                                                               395
                                                                                                                                                                                                                                               359
                                                                                                                                                                                                                                                52
                                                                                                                                                                                                                                               308
                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                      359
                                                                                                                                                                                                                                                        51
                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                              359
                                                                                                                                                                                                                                                               51
                                                                                                                                                                                                                                                              310
                                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                                      360
                                                                                                                                                                                                                                                                       51
                                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                                              360
                                                                                                                                                                                                                                                                               50
                                                                                                                                                                                                                                                                              323
                                                                                                                                                                                                                                                                                     395
                                                                                                                                                                                                                                                                                     360
                                                                                                                                                                                                                                                                                      50
                                                                                                                                                                                                                                                                                     323
                                                                                                                                                                                                                                                                                             395
                                                                                                                                                                                                                                                                                             361
                                                                                                                                                                                                                                                                                              49
                                                                                                                                                                                                                                                                                             319
Operating Sales Margin (%)                 17.00    26.51 -24.91 -24.48 -11.73 -2.07        7.73 16.37 23.62 23.71 17.2 18.39               19 19.79 19.91 20.85 20.77 21.75 21.98 22.86 23.08 23.98 24.04 24.81 25.08 26.15 26.16 26.08 26.51 23.94 24.28 25.15
Economic Real Rate of Return (%)            1.43      2.54 -1.35 -1.36       0.76   0.26    0.95 1.52      2.46    2.54 1.81         2    1.27 1.35       1.34   1.43 1.41       1.52   1.52    1.62 1.63      1.72     1.7     1.8    1.8    1.93 1.91      1.95    1.97 1.81      1.83    1.94
Debt Service Ratio                          0.30      0.53      0       0       0      0       0       0      0       0       0      0    0.36 0.37       0.39   0.39 0.42        0.4   0.43    0.42 0.45      0.45    0.48 0.46      0.49    0.47     0.5   0.49    0.51      0.5 0.53     0.51
Debt/Equity Ratio                           0.19      0.32      0       0       0      0       0       0      0       0       0      0     0.3 0.29       0.31   0.29 0.31        0.3   0.31    0.29 0.31       0.3    0.32     0.3   0.31    0.28 0.29      0.26    0.27 0.24      0.25    0.22
Interest Cover                              0.59      1.26      0       0       0      0       0       0      0       0       0      0    0.79     0.7 0.66      0.73 0.68       0.77   0.73    0.82 0.78      0.85     0.8 0.89      0.87       1    0.96   1.07    1.06 1.07      1.06    1.26
Return on capital (%)                       1.53      2.92 -1.18 -1.15       0.89   0.49    1.19 1.82      2.73    2.92     2.4 2.56      1.57 1.36       1.35   1.43 1.41       1.51    1.5    1.61 1.61       1.7    1.67 1.76      1.77    1.89 1.87      1.91    1.93 1.78      1.79    1.89
Cash and Investments (2007/08$'000)          176     1306     109     142    173     243     375    570     814 1067 1074 1306              58      77      55     57      52      61     52      55      42     33       7      -8    -37     -52     -83 -108      -143    -187   -245 -289
Debt outstanding (2007/08$'000)            1148      1897       0       0       0      0       0       0      0       0       0      0 1784 1702 1802 1736 1851 1748 1850 1734 1825 1755 1897 1760 1842 1690 1761 1600 1659 1501 1560 1384
Net Debt (2007/08$'000)                    1168      1890       0       0       0      0       0       0      0       0       0      0 1726 1625 1747 1679 1799 1687 1798 1679 1783 1722 1890 1768 1879 1742 1844 1708 1802 1688 1805 1673
Net Financial Position                      -992     1306     109     142    173     243     375    570     814 1067 1074 1306 -1668 -1548 -1692 -1622 -1747 -1626 -1746 -1624 -1741 -1689 -1883 -1776 -1916 -1794 -1927 -1816 -1945 -1875 -2050 -1962
Revision 2 : Sensitivity - Interest @ 5.5%                                                                                                     ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                             375
                                             336
                                              55
                                             315
                                                      395
                                                      361
                                                        61
                                                      339
                                                              248
                                                              211
                                                               61
                                                              289
                                                                      248
                                                                      211
                                                                       60
                                                                      289
                                                                             273
                                                                             236
                                                                               61
                                                                             302
                                                                                     300
                                                                                     263
                                                                                      59
                                                                                     304
                                                                                             330
                                                                                             289
                                                                                              59
                                                                                             303
                                                                                                    363
                                                                                                    322
                                                                                                      59
                                                                                                    303
                                                                                                            395
                                                                                                            354
                                                                                                             59
                                                                                                            302
                                                                                                                    395
                                                                                                                    355
                                                                                                                     58
                                                                                                                    303
                                                                                                                           395
                                                                                                                           352
                                                                                                                             57
                                                                                                                           339
                                                                                                                                   D
                                                                                                                                   395
                                                                                                                                   354
                                                                                                                                    58
                                                                                                                                   335
                                                                                                                                           395
                                                                                                                                           353
                                                                                                                                            57
                                                                                                                                           334
                                                                                                                                                  395
                                                                                                                                                  354
                                                                                                                                                    56
                                                                                                                                                  330
                                                                                                                                                          395
                                                                                                                                                          355
                                                                                                                                                            57
                                                                                                                                                          331
                                                                                                                                                                  395
                                                                                                                                                                  355
                                                                                                                                                                   56
                                                                                                                                                                  326
                                                                                                                                                                          395
                                                                                                                                                                          355
                                                                                                                                                                           55
                                                                                                                                                                          327
                                                                                                                                                                                 395
                                                                                                                                                                                 356
                                                                                                                                                                                   55
                                                                                                                                                                                 324
                                                                                                                                                                                         395
                                                                                                                                                                                         356
                                                                                                                                                                                          55
                                                                                                                                                                                         323
                                                                                                                                                                                                 395
                                                                                                                                                                                                 357
                                                                                                                                                                                                  55
                                                                                                                                                                                                 320
                                                                                                                                                                                                        395
                                                                                                                                                                                                        357
                                                                                                                                                                                                          54
                                                                                                                                                                                                        320
                                                                                                                                                                                                                395
                                                                                                                                                                                                                358
                                                                                                                                                                                                                 54
                                                                                                                                                                                                                316
                                                                                                                                                                                                                        395
                                                                                                                                                                                                                        358
                                                                                                                                                                                                                         53
                                                                                                                                                                                                                        316
                                                                                                                                                                                                                               395
                                                                                                                                                                                                                               357
                                                                                                                                                                                                                                 53
                                                                                                                                                                                                                               313
                                                                                                                                                                                                                                       395
                                                                                                                                                                                                                                       358
                                                                                                                                                                                                                                        52
                                                                                                                                                                                                                                       313
                                                                                                                                                                                                                                               395
                                                                                                                                                                                                                                               359
                                                                                                                                                                                                                                                52
                                                                                                                                                                                                                                               308
                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                      359
                                                                                                                                                                                                                                                        51
                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                              359
                                                                                                                                                                                                                                                               51
                                                                                                                                                                                                                                                              310
                                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                                      360
                                                                                                                                                                                                                                                                       51
                                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                                             395
                                                                                                                                                                                                                                                                             360
                                                                                                                                                                                                                                                                               50
                                                                                                                                                                                                                                                                             323
                                                                                                                                                                                                                                                                                     395
                                                                                                                                                                                                                                                                                     360
                                                                                                                                                                                                                                                                                      50
                                                                                                                                                                                                                                                                                     323
                                                                                                                                                                                                                                                                                             395
                                                                                                                                                                                                                                                                                             361
                                                                                                                                                                                                                                                                                              49
                                                                                                                                                                                                                                                                                             319
Operating Sales Margin (%)                 17.00    26.51 -24.91 -24.48 -11.73 -2.07        7.73 16.37 23.62 23.71 17.2 18.39               19 19.79 19.91 20.85 20.77 21.75 21.98 22.86 23.08 23.98 24.04 24.81 25.08 26.15 26.16 26.08 26.51 23.94 24.28 25.15
Economic Real Rate of Return (%)            1.43      2.54 -1.35 -1.36       0.76   0.26    0.95 1.52      2.46    2.54 1.81         2    1.27 1.35       1.34   1.43 1.41       1.52   1.52    1.62 1.63      1.72     1.7     1.8    1.8    1.93 1.91      1.95    1.97 1.81      1.83    1.94
Debt Service Ratio                          0.28      0.47       0      0       0      0       0       0      0       0       0      0    0.35 0.35       0.38   0.37     0.4 0.39       0.4    0.38 0.41      0.41    0.43 0.42      0.44    0.42 0.45      0.44    0.46 0.45      0.47    0.45
Debt/Equity Ratio                           0.17      0.32       0      0       0      0       0       0      0       0       0      0    0.31     0.3 0.32       0.3 0.32        0.3    0.3    0.28 0.29      0.27    0.29 0.26      0.27    0.24 0.24      0.21    0.22 0.18      0.19    0.15
Interest Cover                              0.71      1.71       0      0       0      0       0       0      0       0       0      0    0.84 0.78       0.74   0.81 0.77       0.86   0.85    0.96 0.92         1    0.97 1.11      1.08    1.25 1.19      1.35    1.36 1.39      1.39    1.71
Return on capital (%)                       1.51      2.77    -1.2 -1.16     0.88   0.43    1.14 1.74      2.63    2.77 2.25      2.39    1.52 1.35       1.36   1.45 1.43       1.53   1.52    1.61 1.61       1.7    1.68 1.78      1.79     1.9 1.87      1.92    1.94 1.79       1.8    1.89
Cash and Investments (2007/08$'000)          236     1260     108     140    170     238     367    558     796 1040 1038 1260              66      93    105     124     127    141      49      70      53     56      54      65     53      66      62     65      58      43     15       1
Debt outstanding (2007/08$'000)            1064      1897        0      0       0      0       0       0      0       0       0      0 1828 1738 1857 1792 1897 1784 1781 1662 1726 1646 1739 1593 1643 1486 1533 1359 1390 1200 1225 1030
Net Debt (2007/08$'000)                    1018      1770        0      0       0      0       0       0      0       0       0      0 1762 1645 1752 1668 1770 1643 1732 1592 1673 1590 1685 1528 1590 1420 1471 1294 1332 1157 1210 1029
Net Financial Position                      -782     1260     108     140    170     238     367    558     796 1040 1038 1260 -1696 -1552 -1647 -1544 -1643 -1502 -1683 -1522 -1620 -1534 -1631 -1463 -1537 -1354 -1409 -1229 -1274 -1114 -1195 -1028
Revision 2 : Sensitivity - Inflation @ 3.5%                                                                                                    ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                             375
                                             338
                                              55
                                             316
                                                      395
                                                      363
                                                        61
                                                      339
                                                              248
                                                              211
                                                               61
                                                              291
                                                                      248
                                                                      212
                                                                       61
                                                                      290
                                                                             273
                                                                             235
                                                                               61
                                                                             303
                                                                                     300
                                                                                     262
                                                                                      60
                                                                                     304
                                                                                             330
                                                                                             291
                                                                                              60
                                                                                             303
                                                                                                    363
                                                                                                    323
                                                                                                      59
                                                                                                    304
                                                                                                            395
                                                                                                            354
                                                                                                             59
                                                                                                            304
                                                                                                                    395
                                                                                                                    355
                                                                                                                     58
                                                                                                                    304
                                                                                                                           395
                                                                                                                           354
                                                                                                                             58
                                                                                                                           339
                                                                                                                                   D
                                                                                                                                   395
                                                                                                                                   354
                                                                                                                                    58
                                                                                                                                   336
                                                                                                                                           395
                                                                                                                                           356
                                                                                                                                            57
                                                                                                                                           335
                                                                                                                                                  395
                                                                                                                                                  357
                                                                                                                                                    56
                                                                                                                                                  331
                                                                                                                                                          395
                                                                                                                                                          357
                                                                                                                                                            56
                                                                                                                                                          332
                                                                                                                                                                  395
                                                                                                                                                                  357
                                                                                                                                                                   56
                                                                                                                                                                  328
                                                                                                                                                                          395
                                                                                                                                                                          357
                                                                                                                                                                           56
                                                                                                                                                                          329
                                                                                                                                                                                 395
                                                                                                                                                                                 359
                                                                                                                                                                                   55
                                                                                                                                                                                 325
                                                                                                                                                                                         395
                                                                                                                                                                                         359
                                                                                                                                                                                          54
                                                                                                                                                                                         324
                                                                                                                                                                                                 395
                                                                                                                                                                                                 359
                                                                                                                                                                                                  55
                                                                                                                                                                                                 322
                                                                                                                                                                                                        395
                                                                                                                                                                                                        360
                                                                                                                                                                                                          54
                                                                                                                                                                                                        320
                                                                                                                                                                                                                395
                                                                                                                                                                                                                360
                                                                                                                                                                                                                 54
                                                                                                                                                                                                                316
                                                                                                                                                                                                                        395
                                                                                                                                                                                                                        361
                                                                                                                                                                                                                         53
                                                                                                                                                                                                                        317
                                                                                                                                                                                                                               395
                                                                                                                                                                                                                               361
                                                                                                                                                                                                                                 52
                                                                                                                                                                                                                               314
                                                                                                                                                                                                                                       395
                                                                                                                                                                                                                                       361
                                                                                                                                                                                                                                        53
                                                                                                                                                                                                                                       313
                                                                                                                                                                                                                                               395
                                                                                                                                                                                                                                               361
                                                                                                                                                                                                                                                52
                                                                                                                                                                                                                                               310
                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                      363
                                                                                                                                                                                                                                                        51
                                                                                                                                                                                                                                                      310
                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                              362
                                                                                                                                                                                                                                                               51
                                                                                                                                                                                                                                                              311
                                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                                      362
                                                                                                                                                                                                                                                                       51
                                                                                                                                                                                                                                                                      311
                                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                                              363
                                                                                                                                                                                                                                                                               51
                                                                                                                                                                                                                                                                              324
                                                                                                                                                                                                                                                                                     395
                                                                                                                                                                                                                                                                                     363
                                                                                                                                                                                                                                                                                      50
                                                                                                                                                                                                                                                                                     324
                                                                                                                                                                                                                                                                                             395
                                                                                                                                                                                                                                                                                             363
                                                                                                                                                                                                                                                                                              50
                                                                                                                                                                                                                                                                                             320
Operating Sales Margin (%)                 17.29    26.83 -25.27 -24.48 -12.39 -1.75        8.06 16.35 23.71         24 17.82 18.44 19.04 20.14             20 21.05 20.74 22.26 22.54 23.27 23.69 24.49 24.65 25.27 25.64 26.32 26.68 26.65 26.83 24.64 24.82 25.54
Economic Real Rate of Return (%)            1.45      2.55 -1.36 -1.36       0.72   0.29    0.95     1.5 2.44      2.55 1.86      1.99    1.26 1.37       1.34   1.44     1.4 1.55      1.56    1.65 1.67      1.74    1.74 1.82      1.84    1.93 1.94      1.98    1.98 1.86      1.86    1.95
Debt Service Ratio                          0.25      0.39      0       0       0      0       0       0      0       0       0      0    0.36 0.35       0.37   0.36 0.39       0.37   0.39    0.37 0.38      0.37    0.39 0.38      0.39    0.37 0.38      0.37    0.38 0.37      0.38    0.36
Debt/Equity Ratio                           0.16      0.32      0       0       0      0       0       0      0       0       0      0    0.32     0.3 0.31      0.29 0.31       0.28   0.29    0.26 0.27      0.24    0.25 0.23      0.23     0.2     0.2   0.17    0.17 0.14      0.14    0.11
Interest Cover                              0.82      2.26      0       0       0      0       0       0      0       0       0      0    0.81 0.79       0.75   0.83 0.78       0.92   0.89    1.02 1.01      1.14    1.09 1.24      1.25    1.45 1.46      1.65      1.7     1.8 1.83     2.26
Return on capital (%)                       1.54      2.85 -1.19 -1.14       0.85   0.49    1.19 1.77      2.68    2.85 2.35      2.45    1.48 1.38       1.34   1.44     1.4 1.55      1.53    1.64 1.63      1.72    1.72     1.8   1.83     1.9 1.91      1.95    1.97 1.84      1.85    1.92
Cash and Investments (2007/08$'000)          242     1227     106     136    161     229     358    546     780 1020 1013 1227              66      90      52     74      78    103      66      93      63     32      53      85     59      98      79    118     101     129    100     135
Debt outstanding (2007/08$'000)              977     1877       0       0       0      0       0       0      0       0       0      0 1877 1768 1819 1739 1831 1706 1740 1609 1638 1500 1592 1444 1455 1301 1306 1144 1141                                                   970    958     780
Net Debt (2007/08$'000)                      921     1811       0       0       0      0       0       0      0       0       0      0 1811 1678 1767 1665 1753 1603 1674 1516 1575 1468 1539 1359 1396 1203 1227 1026 1040                                                   841    858     645
Net Financial Position                      -680     1227     106     136    161     229     358    546     780 1020 1013 1227 -1745 -1588 -1715 -1591 -1675 -1500 -1608 -1423 -1512 -1436 -1486 -1274 -1337 -1105 -1148 -908                                        -939    -712   -758 -510
Revision 2 : Sensitivity - Growth @ 0.35%                                                                                                      ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                             375
                                             335
                                              57
                                             315
                                                      395
                                                      359
                                                        60
                                                      339
                                                              248
                                                              210
                                                               60
                                                              287
                                                                      248
                                                                      211
                                                                       60
                                                                      288
                                                                             273
                                                                             237
                                                                               60
                                                                             302
                                                                                     300
                                                                                     263
                                                                                      59
                                                                                     303
                                                                                             330
                                                                                             289
                                                                                              59
                                                                                             301
                                                                                                    363
                                                                                                    322
                                                                                                      59
                                                                                                    302
                                                                                                            395
                                                                                                            353
                                                                                                             59
                                                                                                            301
                                                                                                                    395
                                                                                                                    352
                                                                                                                     58
                                                                                                                    301
                                                                                                                           395
                                                                                                                           353
                                                                                                                             58
                                                                                                                           339
                                                                                                                                   D
                                                                                                                                   395
                                                                                                                                   354
                                                                                                                                    58
                                                                                                                                   333
                                                                                                                                           395
                                                                                                                                           355
                                                                                                                                            58
                                                                                                                                           334
                                                                                                                                                  395
                                                                                                                                                  352
                                                                                                                                                    58
                                                                                                                                                  330
                                                                                                                                                          395
                                                                                                                                                          353
                                                                                                                                                            57
                                                                                                                                                          329
                                                                                                                                                                  395
                                                                                                                                                                  355
                                                                                                                                                                   57
                                                                                                                                                                  326
                                                                                                                                                                          395
                                                                                                                                                                          355
                                                                                                                                                                           57
                                                                                                                                                                          327
                                                                                                                                                                                 395
                                                                                                                                                                                 356
                                                                                                                                                                                   57
                                                                                                                                                                                 322
                                                                                                                                                                                         395
                                                                                                                                                                                         354
                                                                                                                                                                                          57
                                                                                                                                                                                         323
                                                                                                                                                                                                 395
                                                                                                                                                                                                 356
                                                                                                                                                                                                  57
                                                                                                                                                                                                 319
                                                                                                                                                                                                        395
                                                                                                                                                                                                        356
                                                                                                                                                                                                          56
                                                                                                                                                                                                        319
                                                                                                                                                                                                                395
                                                                                                                                                                                                                356
                                                                                                                                                                                                                 56
                                                                                                                                                                                                                316
                                                                                                                                                                                                                        395
                                                                                                                                                                                                                        356
                                                                                                                                                                                                                         56
                                                                                                                                                                                                                        316
                                                                                                                                                                                                                               395
                                                                                                                                                                                                                               357
                                                                                                                                                                                                                                 56
                                                                                                                                                                                                                               313
                                                                                                                                                                                                                                       395
                                                                                                                                                                                                                                       357
                                                                                                                                                                                                                                        56
                                                                                                                                                                                                                                       313
                                                                                                                                                                                                                                               395
                                                                                                                                                                                                                                               356
                                                                                                                                                                                                                                                56
                                                                                                                                                                                                                                               309
                                                                                                                                                                                                                                                       395
                                                                                                                                                                                                                                                       357
                                                                                                                                                                                                                                                        55
                                                                                                                                                                                                                                                       309
                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                              357
                                                                                                                                                                                                                                                               56
                                                                                                                                                                                                                                                              311
                                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                                      358
                                                                                                                                                                                                                                                                       55
                                                                                                                                                                                                                                                                      311
                                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                                              357
                                                                                                                                                                                                                                                                               54
                                                                                                                                                                                                                                                                              327
                                                                                                                                                                                                                                                                                     395
                                                                                                                                                                                                                                                                                     358
                                                                                                                                                                                                                                                                                      55
                                                                                                                                                                                                                                                                                     327
                                                                                                                                                                                                                                                                                             395
                                                                                                                                                                                                                                                                                             359
                                                                                                                                                                                                                                                                                              54
                                                                                                                                                                                                                                                                                             322
Operating Sales Margin (%)                 15.40    24.05 -24.28 -24.3 -13.9           -4   6.56 15.26 22.61 22.54 15.83          17.2 17.62 18.41 18.67 19.58 19.36 20.45 20.44 21.07 21.35 22.14 22.25 22.83 23.27 24.05 24.05 23.78 24.02 21.28 21.44 22.43
Economic Real Rate of Return (%)            1.22      2.32 -1.31 -1.35       0.65   0.13    0.83 1.37      2.27    2.32     1.6 1.79      1.12 1.19        1.2   1.28 1.25       1.34   1.33    1.39     1.4   1.47    1.45 1.52      1.54    1.62     1.6   1.61    1.61 1.45      1.45    1.55
Debt Service Ratio                          0.32      0.57      0       0       0       0      0       0      0       0       0      0    0.36 0.37        0.4    0.4 0.43       0.42   0.45    0.43 0.46      0.47     0.5 0.48      0.51     0.5 0.54      0.52    0.55 0.54      0.57    0.56
Debt/Equity Ratio                           0.20      0.33      0       0       0       0      0       0      0       0       0      0    0.31     0.3 0.32      0.31 0.33       0.31   0.32     0.3 0.31       0.3    0.32     0.3   0.31    0.29 0.31      0.28    0.29 0.27      0.29    0.26
Interest Cover                              0.55      1.09      0       0       0       0      0       0      0       0       0      0    0.82 0.68       0.65   0.71 0.66       0.74    0.7    0.77 0.74      0.79    0.76 0.85      0.82    0.93 0.88      0.97    0.96 0.93      0.91    1.09
Return on capital (%)                       1.33      2.72 -1.14 -1.13       0.79   0.35    1.08 1.68      2.58    2.72 2.21      2.37    1.49 1.19       1.19   1.28 1.24       1.34   1.31    1.38 1.38      1.44    1.43 1.49      1.51    1.59 1.57      1.58    1.58 1.43      1.42    1.52
Cash and Investments (2007/08$'000)          133     1242     111     145    170     234     361    549     785 1026 1022 1242              48      62      62     70      59      59     42      35      15      -4    -37     -61    -98 -124       -168 -206      -256    -315   -389 -448
Debt outstanding (2007/08$'000)             1186     1897       0       0       0       0      0       0      0       0       0      0 1828 1738 1857 1792 1897 1784 1878 1754 1837 1761 1857 1744 1849 1724 1820 1689 1777 1653 1747 1607
Net Debt (2007/08$'000)                     1242     2136       0       0       0       0      0       0      0       0       0      0 1780 1676 1795 1722 1838 1725 1836 1719 1822 1765 1894 1805 1947 1848 1988 1895 2033 1968 2136 2055
Net Financial Position                     -1109     1242     111     145    170     234     361    549     785 1026 1022 1242 -1732 -1614 -1733 -1652 -1779 -1666 -1794 -1684 -1807 -1769 -1931 -1866 -2045 -1972 -2156 -2101 -2289 -2283 -2525 -2503
Revision 2 : Sensitivity - Growth @ 1.0%                                                                                                       ra ft
Typical Residential Bills
Average Residential Bills (2007/08$)
Mgmnt Cost / Assessment (2007/08$)
OMA Cost per Assessment (2007/08$)
                                       30y mean 30 y peak 2007/08 2008/09 2009/102010/11 2011/12 2012/132013/14 2014/15 2015/162016/17 2017/18 2018/19 2019/202020/21 2021/22 2022/232023/24 2024/25 2025/262026/27 2027/28 2028/292029/30 2030/31 2031/322032/33 2033/34 2034/352035/36 2036/37
                                             375
                                             338
                                              63
                                             313
                                                      395
                                                      363
                                                        68
                                                      335
                                                              248
                                                              210
                                                               61
                                                              289
                                                                      248
                                                                      213
                                                                       60
                                                                      287
                                                                             273
                                                                             235
                                                                               60
                                                                             300
                                                                                     300
                                                                                     261
                                                                                      59
                                                                                     301
                                                                                             330
                                                                                             290
                                                                                              58
                                                                                             299
                                                                                                    363
                                                                                                    323
                                                                                                      58
                                                                                                    299
                                                                                                            395
                                                                                                            353
                                                                                                             59
                                                                                                            297
                                                                                                                    395
                                                                                                                    354
                                                                                                                     59
                                                                                                                    299
                                                                                                                           395
                                                                                                                           354
                                                                                                                             60
                                                                                                                           335
                                                                                                                                   D
                                                                                                                                   395
                                                                                                                                   353
                                                                                                                                    60
                                                                                                                                   330
                                                                                                                                           395
                                                                                                                                           355
                                                                                                                                            61
                                                                                                                                           330
                                                                                                                                                  395
                                                                                                                                                  355
                                                                                                                                                    61
                                                                                                                                                  326
                                                                                                                                                          395
                                                                                                                                                          355
                                                                                                                                                            62
                                                                                                                                                          326
                                                                                                                                                                  395
                                                                                                                                                                  356
                                                                                                                                                                   62
                                                                                                                                                                  322
                                                                                                                                                                          395
                                                                                                                                                                          357
                                                                                                                                                                           63
                                                                                                                                                                          323
                                                                                                                                                                                 395
                                                                                                                                                                                 357
                                                                                                                                                                                   63
                                                                                                                                                                                 320
                                                                                                                                                                                         395
                                                                                                                                                                                         358
                                                                                                                                                                                          63
                                                                                                                                                                                         320
                                                                                                                                                                                                 395
                                                                                                                                                                                                 359
                                                                                                                                                                                                  64
                                                                                                                                                                                                 317
                                                                                                                                                                                                        395
                                                                                                                                                                                                        359
                                                                                                                                                                                                          64
                                                                                                                                                                                                        317
                                                                                                                                                                                                                395
                                                                                                                                                                                                                358
                                                                                                                                                                                                                 64
                                                                                                                                                                                                                313
                                                                                                                                                                                                                        395
                                                                                                                                                                                                                        359
                                                                                                                                                                                                                         65
                                                                                                                                                                                                                        314
                                                                                                                                                                                                                                395
                                                                                                                                                                                                                                360
                                                                                                                                                                                                                                 65
                                                                                                                                                                                                                                311
                                                                                                                                                                                                                                       395
                                                                                                                                                                                                                                       360
                                                                                                                                                                                                                                        66
                                                                                                                                                                                                                                       311
                                                                                                                                                                                                                                               395
                                                                                                                                                                                                                                               360
                                                                                                                                                                                                                                                66
                                                                                                                                                                                                                                               307
                                                                                                                                                                                                                                                       395
                                                                                                                                                                                                                                                       361
                                                                                                                                                                                                                                                        66
                                                                                                                                                                                                                                                       307
                                                                                                                                                                                                                                                              395
                                                                                                                                                                                                                                                              361
                                                                                                                                                                                                                                                               67
                                                                                                                                                                                                                                                              309
                                                                                                                                                                                                                                                                      395
                                                                                                                                                                                                                                                                      362
                                                                                                                                                                                                                                                                       67
                                                                                                                                                                                                                                                                      308
                                                                                                                                                                                                                                                                             395
                                                                                                                                                                                                                                                                             361
                                                                                                                                                                                                                                                                               67
                                                                                                                                                                                                                                                                             321
                                                                                                                                                                                                                                                                                     395
                                                                                                                                                                                                                                                                                     363
                                                                                                                                                                                                                                                                                      68
                                                                                                                                                                                                                                                                                     321
                                                                                                                                                                                                                                                                                             395
                                                                                                                                                                                                                                                                                             363
                                                                                                                                                                                                                                                                                              67
                                                                                                                                                                                                                                                                                             317
Operating Sales Margin (%)                 19.66    29.59 -24.91 -23.61      -9.8      0    9.98 18.48 25.95 26.16           20 20.9 21.69 22.67 22.78 23.83 23.7 24.41 24.76 25.52 26.01 26.95 27.17 27.92 28.31 29.11 29.28 29.18 29.59 27.39 27.76                                       28.6
Economic Real Rate of Return (%)            1.75      2.91 -1.35 -1.33       0.87   0.41    1.15 1.76      2.79    2.91     2.2 2.37      1.52 1.62       1.62   1.73 1.71       1.81   1.83    1.93 1.97      2.07    2.08 2.19      2.21    2.33 2.34      2.39    2.41 2.29      2.31    2.44
Debt Service Ratio                          0.17      0.31      0       0       0      0       0       0      0       0       0      0    0.31 0.31        0.3   0.29     0.3 0.29      0.29    0.28 0.27      0.26    0.27 0.26      0.25    0.24 0.23      0.22    0.21 0.21       0.2    0.19
Debt/Equity Ratio                           0.10      0.29      0       0       0      0       0       0      0       0       0      0    0.29 0.27       0.25   0.24 0.24       0.22   0.21      0.2 0.18     0.16    0.16 0.14      0.12    0.11 0.09      0.07    0.06 0.04      0.03    0.01
Interest Cover                              2.17    14.54       0       0       0      0       0       0      0       0       0      0     1.1 1.04       1.07   1.17 1.16       1.29   1.35    1.52 1.66       1.9    1.89 2.22      2.48    2.95 3.49      4.13    5.18     6.1      9 14.54
Return on capital (%)                       1.86      3.22 -1.18 -1.11          1   0.62    1.39 2.05      3.02    3.22 2.73      2.86    1.86 1.67       1.65   1.73     1.7     1.8   1.82    1.92 1.95      2.05    2.05 2.17      2.19    2.31 2.38      2.37    2.47 2.29      2.38    2.43
Cash and Investments (2007/08$'000)          322     1414     108     142    178     255     398    605     866 1137 1164 1414             156    217       66    103      50    128      56     148      31     79      43     161     68     205     138    288     234    384     330     496
Debt outstanding (2007/08$'000)              670     1731       0       0       0      0       0       0      0       0       0      0 1731 1647 1563 1478 1483 1392 1362 1268 1174 1079 1073                                   970    866     761     655    547     436    324     209      92
Net Debt (2007/08$'000)                      577     1575       0       0       0      0       0       0      0       0       0      0 1575 1430 1497 1375 1433 1264 1306 1120 1143 1000 1030                                   809    798     556     517    259     202       0      0       0
Net Financial Position                      -256     1414     108     142    178     255     398    605     866 1137 1164 1414 -1419 -1213 -1431 -1272 -1383 -1136 -1250                        -972 -1112 -921        -987    -648 -730      -351    -379     29      32    384     330     496