Water Services - Budget

The true cost of providing the region’s water now and into the future, is reflected in Toowoomba Regional Council’s 2009/10 Budget.

Water Services portfolio leader Cr Paul Antonio said obviously a 10 year water drought has had serious ramifications for council.

“As forecast, the $187 million pipeline from Wivenhoe Dam to Lake Cressbrook, to be jointly funded by TRC and the State Government, has significantly impacted this year’s budget,” he said.

“People relying on Toowoomba’s bulk water supply will be hardest hit.

“While we have continued to develop contingency emergency supplies from basalt bores and the Great Artesian Basin (GAB), the Wivenhoe pipeline allows council to underpin growth to 2050.

“This guaranteed supply comes with a huge price tag. The cost of the pipeline, coupled with investments in contingency borewater supplies, has been reflected in significant increases in water connection and consumption charges for those connected to the Toowoomba water supply scheme.

“Meanwhile ratepayers on other regional supplies will face increased water consumption costs in line with increased infrastructure and pumping costs in those areas.

“Budget water deliberations about the Toowoomba bulk water scheme were clearly separate from those on other regional water schemes. In other words, regional water scheme users will not be subsidising the Wivenhoe pipeline.

Cr Antonio warned that even with the pipeline, until the dam catchment received drought-breaking rain, dam storages would simply be marking time.

“The Wivenhoe pipeline will start pumping into Lake Cressbrook from early next year.

“Council has had to make some tough decisions about water in this year’s budget. Water access charges for people on Toowoomba’s bulk water supply will double. The half-yearly fee of $160 per connection will go to $320, to help fund the pipeline.

“In addition water consumption costs will be increased to $1.50 per kilolitre (KL) from 80 cents per kilolitre for those consuming less than 100KL/half year (100 kilolitres/half year equates to approx 220 litres/person/day assuming 2.5 people per household) and from $1.50/KL to $2.80/KL for those using more than 100KL/half year.

“Unfortunately, it is a fact of life that we live on a hill. We are the only city in Australia where our major water supply is lower than the city. In fact, every litre of water coming into Toowoomba has to be pumped.

“The drought aside, we face huge infrastructure and pumping costs to deliver that water to consumers. For example, an average property on Toowoomba’s water supply supports $8,412 worth of water assets compared with comparable cities where an average property supports around $5,245 worth of water assets.

“Add to that the cost of pumping the water 650 metres uphill from Wivenhoe and we are looking at unavoidable cost increases.

“Along with the State Government, council has bitten the bullet and taken the hard decisions to ensure a sustainable future for this region. This pipeline will underpin commercial and industrial activity well into the future thereby creating commerce and employment opportunities.

“Aside from the Wivenhoe pipeline, council has allocated over $27.33million on providing and maintaining water infrastructure across the region. We are responsible for some 1500 kilometres of water mains alone.

“The cost of operating and maintaining the storage, pumping, treatment and distribution of water supplies across the region is almost $26million. Maintaining these present assets, alone, costs over $16million annually while the annual cost of operating this infrastructure is over $8.3million.

“Our highly successful water demand management program will continue this financial year with an allocation of just over $1.1million. People on this system can give themselves a well-deserved pat on the back for their water conservation measures.

“The low water consumption rates of around 130 litres per person per day across the Toowoomba water supply area are testament to the community’s acceptance of the council program of waterwise education, public awareness and waterwise rebates.

“This program will remain an important part of council’s water strategy even after the pipeline links us to Wivenhoe. The reality is water saving must remain a long-term goal of this community.

“In addition, this financial year we will be rolling out a fluoridation program for town water supplies to comply with State Government legislation. The State will meet the capital costs of the program while council will have to meet ongoing operation costs.

“A State Government allocation of $1million has been earmarked for the design, construction and commissioning of works at Mt Kynoch Water Treatment Plant by December 31, 2009 to provide fluoridated water to some parts of Toowoomba.

“A further $600,000 from the State will pay for investigations, planning and design and to commence fluoridation systems at Crows Nest, Highfields, Millmerran and Yarraman water treatment plants. Flouridation of these water supply systems has to be phased in by December 31, 2010.

“Council now has the ability to look at wastewater collection, pumping and treatment from a regional perspective. The wastewater network consists of some 83 pumping stations, 12 treatment plants and 1150 kilometres of sewerage pipeline servicing 43,700 connections.

“Over the next couple of years we will be spending over $47million on the collection, pumping and treatment of wastewater across the region.

“To operate and maintain this extensive wastewater collection, pumping and treatment system costs council almost $20million each year,” Cr Antonio said.