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RESOLVED
 
i)              
To adopt the Sussex North Offsetting Water Scheme (SNOWS) as
outlined in this report for developments in the Horsham District;
and
 
ii)             
To approve the charging schedule for SNOWS as outlined in this
report.
 
 
REASONS
 
i)              
To enable the implementation of SNOWS and enable development and
growth in the Sussex North Water Resource Zone to proceed.

 
ii)             
To ensure that the costs incurred to Horsham District Council can
be recovered.
 
 
ALTERNATIVE OPTIONS CONSIDERED BUT REJECTED AS
IDENTIFIED IN THE REPORT
 

i)     
Other funding approaches to SNOWS have been considered as
follows:
 
•      
An increased SNOWS access charge to allow the development and
implementation of an additional offsetting above the baseline
savings from Southern Water. However, the current evidence
available suggests that SNOWS will not need to provide separate,
additional offsetting for at least the next three financial years.
Whilst this will need to be kept under review, additional costs
over and above what has been identified as necessary would prevent
the scheme operating on a cost recovery basis.
 
•      
Charging a lower SNOWS access charge was also considered, but this
would be unlikely to generate sufficient income to cover the costs
of operating the scheme and would place a financial burden on
Horsham District Council. This option was therefore discounted.
 

ii)    
It was also considered as to whether any charge would be
appropriate. It was concluded that without SNOWS charging planning
applicants an access charge, the scheme would be reliant on other
sources of funding – either subsidies from Local Planning
Authorities (LPAs) or government, none of which are available at
the current time, or would have any long-term certainty. This would
ultimately jeopardise the launch of SNOWS and the delivery of
development across Sussex North. Without such a scheme in place,
development delivery will continue to be depressed for the
foreseeable future.
 

iii)   
Consideration was also given as to whether SNOWS could operate as a
‘Special Purpose Vehicle’ (SPV) (i.e. a separate
company), which could allow for SNOWS to make a profit from
services rendered. However, following discussions with Horsham
District Council and the other partner local authorities, it was
agreed that SNOWS was not intended to be a profit-making entity and
the potential risks with setting up SNOWS as an SPV were considered to be too great compared to
operating on a cost-recovery basis under existing legislation.
 

iv)   
Not developing SNOWS was discounted on the basis that the affected
Local Authorities needed to work together to source a solution to
enable development to proceed.