Agenda item

1)     That Cabinet approves the information provided on CIL Income and Expenditure at Appendix 1 of the Cabinet report and agrees to its publication as required under Regulation 62 of the CIL Regulations 2010 (as amended)

 

Resolved to Recommend:

 

2)     the Terms of Reference to the Infrastructure Advisory Group as set out in Appendix 3 of the Cabinet report, including that authority is delegated to the Chairman of the Infrastructure Advisory Group to approve spending of CIL receipts of up to £50,000 on projects not identified in the Infrastructure Business Plan.

 

3)     the allocations of CIL funds to those Infrastructure themes set out in Section 3 of the Cabinet report

 

4)     that funding is allocated to these themes for use in 2018/19 and 2019/20

 

5)     that submissions for CIL funds are encouraged from April 2017 using the CIL submission forms at Appendix 4.

 

6)     entry into the Memorandum of Understanding with Hertfordshire County Council as set out in Appendix 5 of the report to Cabinet

 

7)     that authority is delegated to the Assistant Director (Planning, Development and Regeneration) to:

 

(a)   finalise the wording of the CIL submission bid form and associated guidance notes; and

 

(b)   finalise guidance notes for Town and Parish Councils and Ward Councillors.

 

Decision

 

1)     That Cabinet approves the information provided on CIL Income and Expenditure at Appendix 1 of the Cabinet report and agrees to its publication as required under Regulation 62 of the CIL Regulations 2010 (as amended)

 

Resolved to Recommend:

 

2)     the Terms of Reference to the Infrastructure Advisory Group as set out in Appendix 3 of the Cabinet report, including that authority is delegated to the Chairman of the Infrastructure Advisory Group to approve spending of CIL receipts of up to £50,000 on projects not identified in the Infrastructure Business Plan.

 

3)     the allocations of CIL funds to those Infrastructure themes set out in Section 3 of the Cabinet report

 

4)     that funding is allocated to these themes for use in 2018/19 and 2019/20

 

5)     that submissions for CIL funds are encouraged from April 2017 using the CIL submission forms at Appendix 4.

 

6)     entry into the Memorandum of Understanding with Hertfordshire County Council as set out in Appendix 5 of the report to Cabinet

 

7)     that authority is delegated to the Assistant Director (Planning, Development and Regeneration) to:

 

(a)   finalise the wording of the CIL submission bid form and associated guidance notes; and

 

(b)   finalise guidance notes for Town and Parish Councils and Ward Councillors.

Reason for Decision

 

The report sets out proposals for the governance of the Community Infrastructure Levy (CIL) and seeks Council approval for them.

 

Implications

 

Financial

The cost of developing and implementing the Council’s CIL Policies and Procedures was borne by the Local Development Framework (LDF) budget. We are now in the process of collecting CIL and have set aside 5% of CIL receipts to cover the costs above and on-going administration (including Software costs and subscriptions) The costs are expected to be cost-neutral in the long term. Further information is set out in Appendix 1.

 

The Council is responsible for collecting and allocating significant sums of money to the delivery of infrastructure and needs an appropriate framework for the consideration of such matters.

 

Value for money

The Council will be responsible for allocating CIL money for spend, and thus will have a responsibility to ensure the efficient use of funds. Requests for CIL funding will be expected to demonstrate that the infrastructure project offers value for money with such matters being considered through the submission of projects.

 

Staff

The Council now employs two full time officers to deal with the daily administration and management of CIL and S106. These officers will be responsible for the initial consideration of CIL project submissions, the evolution of the CIL Charging Schedule, supporting policies and strategies together with the wider infrastructure planning function of the Council. Other Council staff will be involved in individual projects relating to the spending of CIL funds as the need arises. Where possible such matters have been incorporated into existing work practices (for example; Resident Services are working closely with Ward Councillors and Neighbourhood Action Groups over the allocation of Neighbourhood CIL)   

 

Land

The Council has an adopted Payment in Kind policy which allows for land to be transferred to the Council upon which they can deliver infrastructure necessary to support growth. No requests have been made to date to pay CIL via this mechanism.

 

Risk Implications

 

CIL processes have recently been subject to an audit and officers are in the process of implementing a number of recommendations to ensure that the process for the collection of CIL funds is efficient and robust.

 

In relation to CIL expenditure, the Council will, where possible, oversee the delivery of infrastructure projects to ensure that they are delivered on budget and in accordance with the timescales agreed by the Infrastructure Advisory Group. The Council may withhold CIL funds until delivery targets or conditions have been met.

 

Equalities Implications.

 

The process for the submission and allocation of CIL funds should be open, fair and equitable for all applicants. The application process has been designed to be inclusive.

 

Health & Safety Implications

There are no Health & Safety implications.

Corporate Objectives

Affordable Housing

Some forms of affordable housing may claim exemption from the payment of CIL. It is not anticipated that CIL funds would be used to fund the provision of affordable housing although CIL funds could be utilised on infrastructure which would facilitate the delivery of housing sites.

 

Safe and Clean Environment

Open space and green infrastructure improvements have been identified as possible recipients of CIL funding within the Council’s Regulation 123 List. Such works would contribute to a safe and clean environment.

 

Building Community Capacity

CIL revenues may be used on social enterprise and local community infrastructure which supports those in the most deprived areas. Local communities should feel empowered to carry out improvements within their neighbourhood by the delegated of a proportion of CIL funding to them under Regulation 59 of the CIL Regulations

 

Dacorum Delivers

The purpose of this report is to explain how the Council will make decisions on the spending CIL receipts upon new items of infrastructure. Key stages in this process include determining which infrastructure projects are capable of delivery and on-going management to ensure that our infrastructure priorities are delivered in accordance with an agreed timetable. 

 

Monitoring Officer/S.151 Officer Comments

 

Monitoring Officer

 

Robust governance procedures are essential to ensure that CIL funds can be allocated to appropriate infrastructure in a timely and efficient manner and that spend is properly monitored.

 

This report, the annexed procedural guidance and associated documents demonstrate that an effective system of governance has been developed, however, the procedures should be kept under continuous review to ensure that they remain up to date and effective.

 

Deputy Section 151 Officer

 

The costs of CIL are factored into the Medium Term Financial Strategy and the income will be reviewed to ensure the forecast and actual income collected is monitored in line with Financial Regulations.

 

The costs of projects will need to be submitted through the budget setting process and will require all the necessary approvals to be built into the ongoing capital programme.

 

Advice

 

C Taylor explained that the report set out a range of governance procedures. She noted that there would be a member development session in March 2017 to understand the CIL arrangements.

 

Councillor Elliot asked if the council received any CIL money before work begun or was it claimed once the development was completed.

R Freeman replied that the council was not releasing any money which had not already been collected.

 

Councillor Marshall asked if these procedures were already in place.

C Taylor explained that procedures already existed and the council had already begun collecting CIL money. Increased work will be carried out with wards and CIL applications and they would be prioritised accordingly.  She suggested that the money be left to accrue and therefore could be used for jobs which would have a big impact.

 

M Gaynor said it was important to allocate accordingly to ward councillors as well as town and parish councillors. He noted that the money should be used for infrastructure and capital and not for items which include ongoing running costs, for example litter bins.

 

Councillor Marshall felt that Town and Parish councils would have the mechanisms to keep records of CIL payments; however unparished wards would not have such information so how would they keep this information up to date.

R Freeman said reports are submitted to town and parish councils bi-annually and therefore this information could also be provided to ward councillors.

 

Councillor Harden asked how CIL money is shown in the budget papers.

J Deane said that this and S106 money is held separately to the council’s budget. It would show on the statement of accounts but not in budget monitoring papers.

 

Councillor Tindall added that it should also be shown as treasury management.

J Deane confirmed this would be the case.

 

Councillor Tindall explained that town and parish council’s will receive 25% and wards 15%, he asked where the difference of 10% went and why the values differed?

R Freeman replied that the CIL was required to give 15% to wards; however this would be increased for areas with a neighbourhood plan in place.

 

Councillor Williams asked to what degree councillors are obliged to take infrastructure plans into consideration.

M Gaynor suggested that money is allocated to those areas of communities seeking the benefits.

 

Councillor Williams added that other organisations are now aware of this scheme however the message they are being given is incorrect.

M Gaynor agreed they were receiving the wrong message and it was not the same as a grant process, which is the impression being given.

 

Voting

 

None.