During this year’s financial planning cycle for 2016-2017 the SIRA committee has determined that there is a need to increase the charge for non-potable emergency water.
For water bookings starting on 1 July 2016 and thereafter, the price for buying non-potable emergency water will increase from $4 per 1000 litres to $ 5 per 1000 litres. In the interest of keeping cost of living for members low, the $10 booking fee will remain as is.
The reasons for the increase are:
Increase in Sydney Water charges: The charge for water has been $4 per 1,000 litres since 1984 and the price has not been adjusted for increases in cost. SIRA currently pays the Sydney Water usage charge of $2.28 per kilolitre, causing a depletion of the reserve (see below). Sydney Water has indicated it will reduce their charge to $1.97 next financial year and will increase again correcting for inflation over the next 4 year
Maintenance Cost: The current reticulated water infrastructure on the Island is 10 years old and maintenance costs have started to increase. These costs are borne by SIRA and are drawn from the water sales income. We anticipate that costs will continue to increase.
Self- insurance reserve: The self-insurance reserve is in existence so that SIRA will be able to replace large parts of the system in case of a disaster, for example a bush fire. The reserve is currently $87,000 and held in a term deposit which has been built up over the last 10 years. SIRA is currently reviewing the size of the fund and may have to increase it. If there were no price increase for water sales, a projection shows that the fund would decrease over time. The price increase will prevent this decline, at least in the short to medium term.
In case you have any questions regarding the price change, please contact the SIRA treasurer by email on: firstname.lastname@example.org
The original water price was set by Warringah Council in 1984 and remained at that price under Pittwater Council from 1992. In 2005 SIRA took over the responsibility of the emergency water line as an alternative to it being turned off and continued to maintain this price. The line was upgraded and has been maintained since with funds as they became available from water sales income.