At the last meeting, the Chairman of the Community Infrastructure Levy Steering Group (CILSG) proposed several changes to the current governance arrangements and Funding Decision Protocol for the allocation of funds from Strategic Community Infrastructure Levy (CIL).  Officers were tasked with considering the Chairman’s proposals and the report detailed the response.  It was also suggested that the Membership of the CIL Officer Group include Members.

Strategic CIL retained by the Council could be used to fund a wide range of infrastructure such as transport, flood defences, schools, hospitals and other health and social care facilities, but not affordable housing.  The Council must spend CIL on infrastructure needed to support the development of the district which would be informed by the Infrastructure Delivery Plan (IDP).

Appendix 1 to the report illustrated the new proposal for the sub-division of the Strategic CIL funds into three specific allocation areas, as follows:

·       Special Projects Fund (SPF): To apportion 55% of the Strategic CIL to fund projects across the district (those areas outside the parish of Bexhill) where the Council considered an infrastructure improvement or project.  Applications must demonstrate how their infrastructure proposal met the Council’s Local and Corporate Plan objectives and be identified as critical infrastructure within the IDP.

·       Distribution Fund (DF): To apportion 40% of the Strategic CIL to fund projects across the district (anywhere outside of the parish of Bexhill) and the amount requested be match-funded and only used in parishes or towns where housing was allocated.  In addition, projects that could demonstrate wider infrastructure impact could receive between 75% and 100% of funding.  Applicants must demonstrate a prioritised infrastructure plan and allocated funding would not be greater than the total Strategic CIL generated by the parish or town.

·       Climate Change Fund: To apportion 5% of Strategic CIL in support of the Council’s commitment to be a carbon neutral district by 2030 and fund climate change projects across Rother.

Over an agreed period, monies not allocated from the DF would be transferred to a Residual Fund.  To be apportioned for use in areas where large Community Land Trusts, exceptions sites or affordable housing schemes had been developed and were exempt from CIL.  This fund could also be made available to applications that were eligible for Community Grant Scheme (CGS) funding or considered within the Strategic CIL infrastructure definition and could not be funded through Local CIL or other funding sources.

It was proposed that both the SPF and DFs were only used against agreed priority infrastructure projects as per the Infrastructure List (IL) and that firm funding commitments were only made against actual funds received by the Council.  The minimum allocation would be £30,000.  It was also noted that the Council would not have to take out loans to fund CIL projects against reserves.

The IL was a statement of the infrastructure projects or types of infrastructure that the Council intended would, might, wholly or partly be funded by CIL.  This was a requirement of the Infrastructure Funding Statement that was reviewed annually and published in December each year.  The up-to-date list of infrastructure requirements to support development identified through the Local Plan was identified in the IDP.  Much of the infrastructure would be within the district boundary however other elements might cross boundaries e.g. High-Speed Rail etc.  The IDP detailed the framework for infrastructure needed to support the development targets in the Council’s Local Plan and those infrastructure improvements that were required to resolve existing deficiencies and promote sustainable communities.

It was proposed that parish and town councils (where housing was allocated) and other infrastructure providers be asked to provide a list of infrastructure projects needed to support development through the new Local Plan; discussion would commence later in 2021.  The list should identify whether any identified infrastructure proposed would have a local or wider impact in Rother.

The CILSG had the opportunity to ask questions and the following salient points were clarified / noted:

·       Strategic CIL retained by the Council could be used to fund a wide range of jointly funded infrastructure projects with outside organisations.  The Council would be liaising with many infrastructure providers to ascertain critical infrastructure requirements e.g. East Sussex County Council etc. 

·       Strategic CIL contributions might need to be made to large infrastructure projects.

·       Primary school project on the NE Bexhill development would be delivered from Section 106 funding (on-site infrastructure).

·       SPF could support Rother assets where any projects met the Strategic CIL definitions, an example put forward was the Landgate, Rye; it was noted that all applications would be considered by Strategic CIL Allocations Panel.

·       IL comprised of key development projects (scored high to low priority); judgement on importance of projects.

·       Strategic / Local CIL would not cover the costs of all infrastructure requirements.

·       Local CIL allocation must be spent within five years otherwise the District Council could request that the funding be returned.  It was understood that the same restrictions did not apply for Strategic CIL; clarity would be sought, and Members advised.

·       The District Council would be liaising with parish and town councils later this year to ascertain their infrastructure priority requirements.

·       Once the new CIL governance arrangements were finalised and formally approved, CIL Workshops would be arranged and hosted by the District Council (including other infrastructure providers) to advise parish and town councils how they should spend and account for CIL receipts.

·       To improve knowledge and transparency, it was suggested that parish and town councils be provided with ‘best practice guidance’ on CIL arrangements etc., in due course.

·       Unspent / unallocated parish and town council CIL monies could be spent on CGS projects where they met the definition of Strategic CIL.

·       Proposed to lower the CIL funding threshold to £30,000.  However, CILSG was advised that not all CGS applications would meet CIL criteria.  There was some merit in reducing the funding threshold further, however it was thought these projects might not be considered Strategic CIL or meet the definition of infrastructure.  Resource implications within the Planning Department would also need to be considered.  

·       Suggest allocating some CIL money to the CGS to cover applications that qualify.  Important to retain CGS and reduce the Council’s reliance on drawing monies from reserves.

·       Strategic CIL retained by the District Council could be passed to parish and town councils, however spend would be subject to restrictions of Strategic CIL.

·       Important to incorporate allocation (percentage split) flexibility within the new arrangements.  

After consideration, the CILSG was supportive of the new Strategic CIL funding apportionment arrangements and requested that officers prepared the necessary documents to be considered at the next meeting for onward recommendation to Cabinet and full Council.  It was also recommended that the composition of the renamed proposed Strategic CIL Allocations Panel include the Cabinet Portfolio Holders for Strategic Planning, Finance and Performance Management, Economic Development and Regeneration, Chairman of Overview and Scrutiny Committee and Chairman of the Council, and supported by the Head of Strategy and Planning, Planning Policy Manager, Assistant Director Resources, Principal CIL Officer and Environment and Policy Manager.

RESOLVED: That:

1)    the Strategic Community Infrastructure Levy Funding Apportionment Proposals, as set out and attached at Appendix 1 to the report be approved and presented at the next scheduled meeting of the Community Infrastructure Levy Steering Group for onward recommendation to Cabinet and full Council; and

2)     the composition of the proposed Strategic CIL Allocations Panel include Cabinet Portfolio Holders for Strategic Planning, Finance and Performance Management, Economic Development and Regeneration, Chairman of Overview and Scrutiny Committee and Chairman of the Council, and supported by the Head of Strategy and Planning, Planning Policy Manager, Assistant Director Resources, Principal CIL Officer and Environment and Policy Manager.