1. “Is User Pays Possible for a Remote Town Water Supply – Case Study”

2. Town Called “Remote”  Population (2006) 111  Population (2011)144 (est)  Future growth1 – 2 persons/year  Connections75  IndustryCattle/Mining

3. Existing Water supply system  150 mm water main Remote Town Reticulation DAF Water Treatment Plant Dam Clear Water Reservoir [90 kL]  150 mm water main Water is sourced from a dam located 6 kilometres from the township. The water supply is treated by a DAF water treatment plant commissioned in 2006. Treated water is fed to a 90 kL service reservoir which in turn gravity feeds the township.

4. Water Treatment Plant

5. Forsayth Water Plant Pre aeration Tank DAF Treatment PLan Water Treatment Plant

6. Water Reservoir – 90kL

7. Raw Water Dam

8. Water Supply Statistics  Treatment plant capacity2 - 3.4 l/s ~ 150kL/day  Reservoir capacity90 kL  Avge Daily Cons (over 3 yrs)103 kL/day  Peak Day (over 3 years)285kL/day 2.2l/s  Peak Hour4.8 l/s

9. Operating costs/revenue Discount & concessions$8,200 O & M$186,660 Renewals & impr$90,000 TOTAL COST$284,860 (excl Depr) Rates & Charges$66,585 Interest$250 Connection fees$2,000 TOTAL REVENUE$68,835

10. Existing Water Charges  Base Charge (vac lot)$315/Yr  Base Charge (20mm service)$629  Cons Charge (< 700 Kl/half year)60.9c/kL  Cons Charge (> 700 kL/half year)$1.11/kL

11. Water Charges Levied in 2011

12. Adopted Water Charges – 2012/13

13. Current issues  DAF treatment plant is ageing and may require replacement in 10 – 15 years  Raw water pipeline is poorly constructed and will require replacement  Raw water quality is poor and significant labour, chemical and power costs result  Reservoir is poorly constructed, leaks and requires urgent work  Additional storage capacity of 140 kL required to satisfy design requirements  Population growth is minimal

14. What are the real future capital costs Extra reservoir (now) 155 kL$100,000 Replace the WTP (in 15 years) $750,000 Replace raw water pipe ( in 15 yrs)$1,000,000 Upgrade dam intake structure (in 15 yrs)$100,000 Cost now (Reservoir)$100,000 Cost per year over 15 yrs$75,000 Assuming 3% Inflation

15. Real Costs v Revenue Operating costs$285,000 Capital Investment Req’d Now$100,000 Annualised future cap cost$75,000 Est Cost per connection/yr$6,133 Current average revenue/conn/year$920 Subsidy required/connection$5,933 Total Subsidy required/Year~ $445,000

16. What are the options

17. Options 1.Decommission entire water supply system 2.Continue with business as usual 3.Decommission WTP only and provide non potable supply to consumers 4.Decommission WTP and look for alternative clean water source

18. Option 1  Property owners to provide their own rainwater tanks /bore for household and garden use  No water charges and consumers take care of there own water supply needs Decommission WTP and provide non potable supply to consumers

19. Rainwater Tank Model 250m2 of Roof Area, 25kL Tank, 200 litres/con/day Demand

20. Rainwater Tank Model 250m2 of Roof Area, 25kL Tank, 200 litres/con/day Demand

21. Option 2 Continue with Business As Usual. This will necessitate continued cross subsidisation of the scheme of at least $220,000 per year now increasing to $445,000/Year to cover all future costs  No future certainty about funding for asset replacement  Council is struggling to fund the shortfall from General Revenue  This option is unsustainable

22. Option 3 Decommission WTP and provide non potable supply to consumers  Financially viable and sustainable  Cost of rainwater tanks and plumbing by householders ~ $5K - $15K  Water charge for non potable water likely to be around $50,000 ($660/connection) overall (excluding depreciation of assets)

23. Option 4 Decommission WTP and look for alternative clean water source  Feasible but costly  Requires significant financial grant for which there is none likely any time soon

24.  Is the continued subsidisation justified  Is it a priority in the context of Whole of Shire needs and priorities  Does Council have the capacity to replace/refurbish the Water Supply Assets in the future  Would the community support a non potable supply and rain water tanks  Are there other options to be considered For consideration

25.  Community Meeting – those present supported Option 3  Further community information and consultation  Discussions with NRM  Council resolution to deregister as Service Provider of Potable supply What Next

26. QUESTIONS ??