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Infrastructure Funding Statement 2019/20

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Infrastructure Funding Statement 2019/20 Infrastructure Funding Statement 2019-2020 Northamptonshire County Council Contents Introduction ............................................................................................................................................3 Policy Background...............................................................................................................................3 Section 106 & Community Infrastructure Levy in Northamptonshire................................................4 Financial Obligations.......................................................................................................................4 Non-financial obligations ................................................................................................................5 Infrastructure Funding Statement ......................................................................................................6 Part 1: S106 Obligations......................................................................................................................6 Part 2: Future Funding Priorities.......................................................................................................14 Education ......................................................................................................................................15 Libraries.........................................................................................................................................15 Highways & Transport...................................................................................................................16 Community Infrastructure Levy ....................................................................................................17 Appendix 1 New s106 agreements 2019/20....................................................................................18 Introduction This Infrastructure Funding Statement (IFS) has been prepared by Northamptonshire County Council to report on Section 106 (S106) developer contributions received, spent, allocated and held by the authority in the period 1st April 2019 – 31st March 2020. It also sets out priorities for use of S106 in the future. S106 developer contributions are required to mitigate the impact of new development on services and this is achieved by investing the S106 funding in infrastructure projects to support growth, which ensures the needs of new and growing local communities can be met. This report covers the period 1st April 2019 to 31st March 2020 and consists of two main sections comprising: Part 1 - Income and expenditure relating to S106 agreements during the reporting period Part 2 - Priorities for the spend of S106 in future years This IFS also includes: Appendix 1 – New S106 agreements entered into 2019/20 Policy Background The Town and Country Planning Act 1990 (as amended) established the statutory framework for developer contributions in the form of Section 106 planning obligations (commonly referred to as S106). The obligations provide a mechanism by which otherwise unacceptable development may be made acceptable, through the provision of land, specific works, or financial contributions. In all cases, S106 obligations may only be secured where they meet the three tests of Regulation 122 the Community Infrastructure Levy Regulations 2010, including that they are: Necessary to make the proposed development acceptable in planning terms Directly related to the proposed development Fairly and reasonably related in scale and kind to the proposed development As of the 1st September 2019, amendments to the Community Infrastructure Levy Regulations 2010 (the CIL Regulations) require local authorities to produce and publish an annual Infrastructure Funding Statement (IFS) by 31st December each year. The IFS must set out income and expenditure received by the authority in the prior year in relation to the Community Infrastructure Levy (CIL) and Section 106 planning obligations (S106), however not all local authorities have adopted CIL. The local planning authorities in North Northamptonshire (Kettering, Corby, East Northamptonshire and Wellingborough) do not currently operate a CIL charge and will therefore only be required to report on S106 in their respective IFS. The local planning authorities in West Northamptonshire (Northampton, South Northamptonshire and Daventry) have all adopted CIL and are the charging authorities for those areas. They will be required to produce their own reports in relation to CIL and S106 that they receive. These authorities may passport CIL funding to the County Council for investment in infrastructure, however as the County Council is not a CIL charging authority in its own right, and as no CIL funding has been receipted by the County Council during the reporting period, this IFS will report only on S106 developer contributions. Table 1 - Headline Figures Item S106 S106 Total held from prior year(s) at start of reporting year £37,473,134 S106 Total received in reporting year £22,172,650 S106 Total spent in reporting year (including prior year + passported) £15,656,218 S106 passported in reporting year to external parties for spend £1,124,243 S106 used in reporting year to repay prior year(s) spend £6,713,296 S106 held & allocated for future spend at year end £43,989,566 S106 held & unallocated for future spend at year end £0 S106 secured in new agreements in reporting year (forecast)1 £60,449,978 In addition to the amounts shown in Table 1, the County Council has also received and secured in- kind contributions in the form other types of infrastructure, such as land, highways & related works, and public transport services. Where these have been delivered and/or secured within the reporting year, details are provided below. The management of S106 funding by the County Council is closely monitoring and managed through the Development Management function, in close collaboration with Finance and with individual service areas. Section 106 & Community Infrastructure Levy in Northamptonshire Financial Obligations The County Council is responsible for providing a range of services, facilities and infrastructure to, and for, our local communities. Where new development is expected to impact on existing provision, or require new or additional infrastructure to be provided, the County Council seeks to secure S106 planning obligations so that these impacts can be mitigated. This is done in accordance with the adopted Planning Obligations Framework and Guidance Document – Creating Sustainable Communities (2015) and Highways requirements. S106 planning obligations are primarily secured in respect of: Education - including Early Years, Primary, Secondary, Sixth-form and Special Educational Needs & Disabilities (SEND) Library Services Transport & Highways – including public transport and travel plans The County Council currently also acts as an agent on behalf of the Northamptonshire Fire & Rescue Authority (NFRA), and secures S106 on its behalf which is then transferred to NFRS for spend on infrastructure. Other services within the County Council may also secure from S106 planning obligation requirements where appropriate, such as country parks, adult services, archaeology, green infrastructure, flooding and drainage, however no such obligations are currently held or secured by the County Council. 1 Forecast amount indicates expected S106 income based on current costs and average unit size. Amounts received will change to reflect indexation and actual dwelling mix where figures are linked to agreed formulae. The Local Planning Authorities in Northamptonshire will also secure S106 towards services and infrastructure they provide, or commission, such as Affordable Housing, waste collection, sports and leisure facilities, and open space. It should also be noted that whilst it is the preference of the County Council to be signatory to all S106 agreements where obligations towards its services are secured, this is not always the case. In those circumstances, the LPA will collect any financial obligations and transfer that funding to the County Council for project delivery. For the purposes of this IFS however, and where known, those obligations are included in the figures as this provides a fuller picture of the level of investment being undertaken in those areas and the types of projects supported. Non-financial obligations In addition to S106 financial contributions, the County Council may also secure non-financial obligations. This may be in the form of land, for example where a developer is required to provide a site to support delivery of a new school. This may also be in the form of agreements under the Highways Act 1980, or through Service Level Agreements between developers and other service providers, for example to secure provision of a new bus service between the development and existing routes. The County Council may also enter into agreements with developers under Sections 278 and 38 of the Highways Act 1980. Section 278 agreements allow developers to enter into a legal agreement with the County Council to make alterations or improvements to a public highway as part of a planning approval. Section 38 agreements are used when a developer proposed to construct a new road which may then be offered to the County Council for adoption as a public highway. Agreements under S278 and S38 will require the developer to abide by a range of conditions, terms and timescales, and may be supported by bond or cash deposits which may be called upon
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