Coliban's $14m loss

BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.

The State Government has announced a grant of $50,000 to carry out the review.

The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.

Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.

“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.

“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”

Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.

“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,

“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.

“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”

Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.

“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.

“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”

Bendigo Weekly | Bendigo Weekly | 13-Sep-2012

Coliban Water managing director Jeff Rigby.

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.