The Isle of Man Water and Sewerage Authority has laid before Tynwald its Annual Report and Accounts for 2010/11, the year in which the water supply and sewage disposal functions for the Island combined to form the new Water & Sewerage Authority. The report details that the Authority is funded from two separate sources; the drinking water function generates income from water rates and water meter charges whilst funding for the sewage function is derived from Government’s General Revenues via the Treasury. As a consequence, it has been necessary to maintain two separate sets of accounts, which have been reported separately and then merged to demonstrate the consolidated position as at 31st March 2011. The report highlights the development of the Regional Sewage Treatment Strategy (RSTS) to those parts of the Island not connected to a modern sewage treatment plant via the IRIS system. In April 2011, Tynwald approved ?40 million for Phase 1 (2011 – 2016) of the RSTS which will see the replacement of small sewage treatment plants around the West and North of the Island, together with a new sewage treatment plant at Ramsey and an enhanced sludge treatment centre at Meary Veg. Completion of Phase 2 of the RSTS (2017-2021) will result in the cessation of raw sewage discharges into the seas around the Island. In addition, the Authority has continued with the programme of works highlighted in the 2000 Asset Maintenance Programme, including completion of the new Ballagawne Service Reservoir and the commencement of the new Ramsey Service Reservoir (completion due Spring 2012). Pipeline rehabilitation work continued with schemes to replace water mains and sewers and the refurbishment of many of the old sewage pumping stations around the Island. The Authority is confident that with this sustained investment in its infrastructure it will continue to improve the security of supply to its customers and will deliver operational and environmental improvements to the Island’s water and sewerage systems. The report confirms that since 2000, the Authority has continued to manage its water operations without financial support from Treasury and that the Board remains committed to repaying the ?75 million Bond, which was taken out in March 2000. The accounts indicate that the current value of the sinking fund is ?20 million and this is forecast to increase by some ?3 million per year to repay the Bond in full by 2030. The Authority’s Chairman, Mr Crookall, commented: ‘As well as ensuring the sinking fund is on target to meet the Authority’s commitments, income from water rates has been required to help fund the overall drinking water Capital programme 2000-2021, renewal of plant and equipment at the water treatment works and the revenue costs associated with supplying a wholesome supply of drinking water to properties on the Island. It is therefore particularly pleasing to note that the 2010/11 Annual Report and Accounts shows a surplus of ?4.6 million in the year and confirms that the Authority was able to meet all its budgetary, capital and long-term reserve obligations. ‘The Accounts for 2010/11 have been the subject of an external audit and demonstrate a good fiscal performance for the first year for the newly formed Isle of Man Water and Sewerage Authority.’ ENDS