ERA Water scheme expected to record a $825,000 loss in 2018/19

The financial performance of a three-council, water-harvesting project is “high on the watch list” of Burnside Council’s audit committee, with the scheme expected to record a $825,000 loss this financial year.

• First drop delivered in councils’ $13m water harvesting project
• ERA Water gets the nod

The financial performance of a three-council, water-harvesting project is “high on the watch list” of Burnside Council’s audit committee, with the scheme expected to record a $825,000 loss this financial year.

Audit committee chairman David Powell said the $13 million Eastern Regional Alliance (ERA) Water scheme – underwritten by Burnside, Norwood, Payneham & St Peters and Walkerville councils – was predicted to deliver just 35ML of water this year.

“They (ERA Water) would be high on the watch list,” said Mr Powell, adding the committee was “challenging (Burnside’s) subsidiaries to have improved financial performance”.

A report tabled at a recent Burnside Council meeting showed ERA Water’s delivery of water was well below expectations, primarily due to very low rainfall to the end of November, a faulty bore and delays with commissioning, all affecting the bottom line.

Speaking at the meeting, Cr Mike Daws said he was “a little concerned by ERA Water’s accounts”.

A report tabled at a recent Burnside Council meeting showed ERA Water’s delivery of water was well below expectations.

ERA Water chairman Bryan Jenkins told the Eastern Courier Messenger in October last year that the project was likely to record a $546,000 hit in 2018/19, as it suffered from “substantially higher” costs than first predicted.

The board was expected to present more definitive financial information to the member councils in March.

It said the irrigation of AE Cousins and Symons reserves, Beaumont Common, Webb Oval and Newland and Penfold parks was “proceeding as expected” with water harvested under the scheme.