S106 Monitoring Fees
We have introduced a S106 Monitoring Fee Schedule that will be applicable to all new S106 agreements, it is based on a percentage of the total amount secured plus a flat fee for non-financial obligations. This method is similar to S106 fees charged by other Local Authorities and less than fees collected by CIL charging authorities could collect. We have looked at setting a cap for fees but considers that the use of a sliding percentage scale already ensures that the fees are not excessive.
The Schedule uses a fair and proportionate method that reflects the work required to monitor a S106 agreement in its entirety and over the whole lifetime of the agreement. This in some cases can be in excess of twenty years. The fees are as detailed below.
The Fee Schedule
Fee based on % of funds secured
5% up to £100,000
£5000 + 4% between £100,001 to £500,000
£21,000 + 3% between £500,001 to £1,000,000
£36,000 + 2% between £1,000,001 - £3,000,000
£76,000 + 1% over £3,000,001
£500 per non-financial obligation
Stage payments of the fee due for large scale development will be considered and is to be agreed with the Planning Officer in consultation with the S106 Monitoring team
Planning legislation
The Community Infrastructure Levy 2010 (as amended) allows for administration fees to be charged. A CIL charging authority may use up to 5% of received funds for its administrative costs as detailed under Regulation 61 and all authorities may charge S106 Monitoring Fees on S106 Agreements under Regulation 122 as detailed below.
122.—(1) This regulation applies where a relevant determination is made which results in planning permission being granted for development.
(2) Subject to paragraph (2A), A planning obligation may only constitute a reason for granting planning permission for the development if the obligation is—
(a) necessary to make the development acceptable in planning terms;
(b) directly related to the development; and
(c) fairly and reasonably related in scale and kind to the development.
(2A) Paragraph (2) does not apply in relation to a planning obligation which requires a sum to be paid to a local planning authority in respect of the cost of monitoring (including reporting under these Regulations) in relation to the delivery of planning obligations in the authority’s area, provided—
(a) the sum to be paid fairly and reasonably relates in scale and kind to the development; and
(b) the sum to be paid to the authority does not exceed the authority’s estimate of its cost of monitoring the development over the lifetime of the planning obligations which relate to
What will the fee cover
The CIL Regulations stipulate that the charge for S106 monitoring must reflect the amount of work required over the lifetime of the agreement. This will involve officers across a wide range of specialist services in the council in addition to planning officers. This will cover the cost of officer time and expenses for the following elements:
- recording and keeping up to date, the details of the S106 Agreement
- monitoring obligations for trigger points
- discharging non-financial requirements
- physical monitoring
- invoicing and collection of monies
- management of funds and allocation to infrastructure projects
- publication of annual Infrastructure Funding Statement