proceeds from asset sales, development contributions, grants and subsidies and other sources as permitted by statute. Prior to determining the “Residual amount to be funded by General-type Rates”, Council identify all other funding sources appropriate to the type of cost incurred for the stormwater service. After the exclusion of fees, charges, subsidies, grants and general revenue: Fees and Charges - These have been set at a level to recover private benefits where it is practical and economic to do so, unless there have been determinations arising from previous funding reviews to fund all or part of such benefits from rates. Grants and Subsidies -These are sought and applied for whenever they are available. General Revenues - These are allocated to geographic rating areas in proportion to the gross general-type rates and charges. The Council has determined the fair and equitable charge for the operational costs of the stormwater service to be 100% to General-type Targeted Rate in all areas except Picton where the costs are funded 100% by a separate targeted charge. Funding of Capital Requirements In general, the sources of funds for capital expenditure will be utilised in the following order: • Development and financial contributions. • Capital grants and subsidies (where available). • User charges. • General revenue sources [see below]. • Council financial reserves, including Depreciation Reserves. • Loan raising [which will impact on rates in the form of loan servicing charges]. • Targeted rates [directly charged]. 5.2.2 Development Contribution Policy Marlborough District has experienced significant growth over the last decade. Although this is often hailed as positive for the community, growth also presents a number of challenges. Not least is Council’s task of expanding infrastructure networks to support the increased use of essential services. The cost of expanding these networks is often high, and the issue of funding inevitably arises. Funding the expansion of these core networks entirely from general rates (or other indirect means) is inequitable, because existing ratepayers may neither cause these works to occur, nor materially benefit from them. As a result, alternative means for funding these capital works must be considered. Development Contributions is one such source. Previously Council has levied financial contributions in accordance with the Resource Management Act 1991 to recover the cost of growth. Subsequently Council adopted a Development Contributions Policy effective from 1 July 2009. The Development Contributions Policy replaced the Financial Contributions Policy with the exception of the North West zone, parking contributions and where the new Policy is silent on issues in the Resource Management Plans. Page 54