COLIBAN Water has finished the financial year with an expected loss of more than $14 million.Managing Director Jeff Rigby said the end of year result was in line with what was forecast.
“Our main financial objectives for the year were to achieve positive operating cash flow and positive working capital," he said.
"This was achieved, with positive operating cash flow for the second consecutive year.“Our loss was expected and in line with that originally forecast."
Mr Rigby said revenue was significantly down for the financial year.
“Our revenue result was significantly lower than forecast, largely due to lower than expected customer consumption during historically peak demand periods, as a result of high rainfall that occurred again in November to March this year," he said.
“This is despite Permanent Water Saving Rules being largely in place across our region."
Mr Rigby said total expenditure was in line with budget, with no need to purchase additional water and minimal pumping of water occurring through the Goldfields Superpipe.
Depreciation values also increased significantly for the year, which was expected as a result of asset revaluations undertaken during the 2010/11 financial year.“We have continued to invest in our region, with $36.7 million in capital projects for the year and the corporation is on track to deliver $214 million of capital works committed in our current five year 2008-2013 Water Plan," he said.
“Next year, we expect to return a positive cash flow from operations of $3 million and to finish the 2012-13 year as planned with a loss of around $15 million."
Mr Rigby said looking beyond this year, Coliban Water has developed a water pricing and investment strategy aimed at strengthening the long-term financial position of the corporation, which will be outlined in the five year 2013-2018 Water Plan that will be submitted to the Essential Services Commission at the end of this month.
“This plan for the next five years will seek to balance the need for Coliban Water to continue to be financially sustainable over the long term, with ensuring customers can continue to access and afford the essential water and sewerage services provided by the corporation,” he said.