Glossary of Terms Prepayments Amounts paid to creditors by the MDC in the current year that relate to future years. Property Value For rating purposes this refers to either the “land” or “capital” value of a property. Rate/Rates The Local Government (Rating) Act 2002 defines Rate – (a) means a general rate, a targeted rate, or a uniform annual general charge that is set in accordance with subpart 2 of Part 1; and (b) includes a penalty added to a rate in accordance with section 58; but (c) does not include a lump sum contribution. Residential Development Means any activity in a residentially zoned area or where the predominant activity is not non-residential or rural. RMA Means the Resource Management Act 1991. Resource Management Plan Means the Wairau/Awatere Resource Management Plan and the Marlborough Sounds Resource Management Plan. Section Management Allocation of Section Manager costs when they are responsible for more than one activity. Service Catchment Means the same as catchment. Service Connection Means a physical connection to a service provided by, or on behalf of, a territorial authority. Statement of Cashflows This describes the cash effect of transactions and is broken down into three components: operating, investing and financing activities. Statement of Financial This can also be referred to as the Income Statement, Profit and Loss Statement, or the Operating Statement. It shows the financial results of Performance various MDC activities at the end of each period as either a surplus or deficit. It does not include asset purchases or disposals. Statement of Financial Position This shows the financial state of affairs at the end of each period. It can also be referred to as the Balance Sheet. Subdivision Has the same meaning as section 218 of the Resource Management Act 1991. Subsidies Amounts received from other agencies for the provision of services eg: NZTA roading subsidies. Third Party Funds Means funding or subsidy, either in full or in part, from a third party eg: subsidies for the roading network. Unit of Demand Means the measure of demand for community facilities. User Charges The charges levied for use of MDC services eg: building consent fees, health inspections. Working Capital This is the remainder left when the value of current liabilities is deducted from the value of current assets. It is a measure used to indicate the short-term solvency of an entity. 2018-2028 Long Term Plan Page 347