Section 5: Financial Summary Capital Expenditure 2014-15 The day to day maintenance and operations of reserves and sportsgrounds and maintaining amenities such as toilets and boardwalks, represents the majority of the expense covered by rates and charges. The Council is conscious of the rating impact created by new activities. As Marlborough grows, infrastructure and services must expand to accommodate growth and increase in demand as driven by Levels of Service. While financial contributions from developers assist with capital expenses, the relative maintenance requirements must also be accounted for through rates and charges. Incremental increases in annual maintenance expenditure responds to the increasing asset base, inflation and changes in levels of service. The funding strategies are broken down into Reserves, Cemeteries and Public Toilets. 5.1.1 Reserves Funding Strategy A significant majority of the benefits derived from expenditure on these services are public in nature, with a small percentage of benefits being to other users of the reserves such as stall holders or event managers. MDC maintains a free use policy for sporting groups to encourage the greatest sustainable use of the reserves by all residents, immaterial of income or group affiliation. Generally revenues received other than from rates and charges are minimal with little opportunity for greater cost recovery or other revenue generation. Operational Funding as at 2014/15 Operational costs General Rates 100% Capital Land Subdivision Reserve Fund 100% Page 65