Annual Report - Sydney Water

1 ReportAnnual 2016 17 Letter to Shareholder MinistersDear Treasurer and Minister DominelloReport on performance for the year ended 30 June 2017We are pleased to submit the Annual Report of Sydney Water Corporation ( Sydney Water ) for the year ended 30 June 2017 for presentation to Parliament. Our Annual Report 2016 17 was prepared in accordance with the requirements of section 24A of the State Owned Corporations Act 1989 and the Annual Reports (Statutory Bodies) Act 1984. The financial statements, which form part of the Annual Report 2016 17, have been certified by the Auditor-General of New South sincerely, Bruce Morgan Kevin Young Chairman Managing Director BComm, FCA, FAICD BEng (Hons), MBA, FIE Aust, CPENG, FAICDS ydney Water Annual Report 2016 17 / 1 ContentsLetter to Shareholder Ministers 11.

2 Overview 5 About Sydney Water 6 About us 6 Our area of operations 8 The year in review 9A message from our Chairman and our Managing Director 9 Top achievements 11 Corporate Strategy update 12 Strategic success measures our performance 122. Corporate governance 15 Our Corporate Governance Framework 16 Board of Directors 16 The Board s role and responsibilities 16 Director independence 17 Indemnity and insurance 17 Board of Directors skills matrix 17 Sydney Water Board Directors 18 Committees 21 Board meetings 22 Organisation chart 233.

3 Our performance 25 Our sustainability performance indicators 26 Customer satisfaction 26 Social assistance 27 Service quality and system performance 28 Water drawn 29 Recycled Water 29 Water conservation 30 Water leakage 30 Water quality 30 Infrastructure management 31 Financial performance 33 Our staff 33 Wastewater treatment system discharges 35 Trade waste agreements 35 Environmental compliance 36 Heritage compliance 36 Environmental footprint 37 Energy use and greenhouse gas emissions 38 Environmental performance monitoring 38 Flora and fauna 39By-products 40 Waste reduction 40 Our performance 41 Our customer commitments 41 Multicultural policies and services program 43 Community investments 45 Promotional activity 46 Privacy 472 / Sydney Water Annual Report 2016 17 Our workforce 47 Workforce diversity 49 Staff and

4 Industrial relations 52 Consultant engagements 53 Overseas travel 53 Our activities 55 Research and development 59 Risk management 61 Insurance 62 Legal events 62 Heritage delegation actions 63 Threatened species plans of management 64 Statement on the implementation of our special objectives 664. Financial statements 79 Financial performance summary 80 Reporting exemptions 83 Pricing 83 Auditor-General s statutory audit Report 88 Directors Declaration 88 Independent Auditor s Report 89 Financial statements for the year ended 30 June 2017 91 Appendixes 155 Appendix 1: Government Information (Public Access) Act 2009 156 Appendix 2: Public interest disclosures 161 Appendix 3: Annual Report external production costs 162 Appendix 4.

5 Statutory information index 162 Appendix 5: Index of figures, maps and tables 163 Appendix 6: Glossary 1672 / Sydney Water Annual Report 2016 17 Sydney Water Annual Report 2016 17 / 3 Chapter 1. OverviewAbout Sydney WaterAbout us We re Australia s largest Water and wastewater service provider, and our customers are at the heart of everything we do. We provide safe, refreshing drinking Water to almost five million customers across Sydney , the Blue Mountains and the Illawarra. We also look after wastewater, recycled Water and some stormwater services to ensure our rivers are healthy and beaches are clean.

6 We re an organisation focused on the future, and we work with our stakeholders and regulators to make smart business decisions that ensure we re doing our part to enhance our city s sustainability and lifestyle, now and for years to come. We are a statutory State Owned Corporation, wholly owned by the NSW Government. Our performance targets and service standards are set out in our Operating Licence 2015 2020, which is governed by the Independent Pricing and Regulatory Tribunal (IPART). We operate under the Sydney Water Act 1994, which assigns our principle objectives.

7 These are to: protect public health protect the environment be a successful purpose, mission and vision We re a world-class organisation, delivering essential services our customers love, in our great city. Our vision is to be the lifestream of Sydney for generations to Overview / Sydney Water Annual Report 2016 17 Table 1: Principal statistics, 1 July 2016 to 30 June 2017 Approximate area of operations12,700 square kilometresEstimated population serviced by drinking water5,037,000 peopleQuantity of drinking Water we produced 551,406 million litresLength of drinking Water mains we own and operate21,951 kilometresNumber of drinking Water reservoirs in service243 drinking Water reservoirsNumber of drinking Water pumping stations in service151 drinking Water pumping stationsNumber of properties with drinking Water service available1,936.

8 814 propertiesEstimated population receiving wastewater services4,944,000 peopleWastewater we collected (includes discharge, bypass, overflows and other)564,154 million litresLength of wastewater mains we own and operate25,597 kilometresNumber of wastewater treatment plants116 wastewater treatment plantsNumber of wastewater pumping stations in service684 wastewater pumping stationsNumber of properties with wastewater service available 1,888,745 propertiesEstimated population serviced by recycled water287,000 peopleQuantity of recycled Water we supplied38.

9 339 million litresLength of recycled Water mains we own and operate706 kilometresNumber of Water recycling plants14 Water recycling plantsNumber of recycled Water reservoirs in service9 recycled Water reservoirsNumber of recycled Water pumping stations in service10 recycled Water pumping stationsLength of stormwater channels we control447 kilometresNumber of properties with stormwater drainage available605,775 properties1 The number of wastewater treatment and recycled Water plants is based on Sydney Water s The population serviced by recycled Water refers to Rouse Hill only and is an estimate at June Overview / Sydney Water Annual Report 2016 17 Sydney Water Annual Report 2016 17 / Overview 7 OverviewCorporate governanceOur performanceFinancial statementsAppendixesOur area of operations Figure 1.

10 Map of our area of operations8 Overview / Sydney Water Annual Report 2016 17 The year in review A message from our Chairman and our Managing DirectorGreater Sydney is going through a time of unprecedented growth and change. Over the next 20 years, another million people3 will live here, and the pressures on our existing resources, housing and infrastructure will only increase. The last 12 months have brought challenges, but also opportunities to shape our future and enhance our city s sustainability and lifestyle. This means we must think differently about how we operate and deliver services, while continuing to run an efficient business and deliver value for our customers and stakeholders.