PART 6Funding

Funding18.

(1)

Subject to the provisions in article 5 of the 2014 Order64 and paragraph (2), the constituent councils must ensure that any reasonably incurred costs of the Combined Authority are met to the extent that the Combined Authority has not decided to meet these costs from other resources available to the Combined Authority.

(2)

Subject to paragraph (4), the constituent councils must meet the costs of the expenditure reasonably incurred by the Mayor in, or in connection with, the exercise of the functions specified in articles 3, 5, 6, 7, 10 and 19(10) to the extent that the Mayor has not decided to meet these costs from other resources available to the Combined Authority.

(3)

Any amount payable by each of the constituent councils to ensure that the costs of the Combined Authority referred to in paragraphs (1) and (2) are met is to be determined by apportioning such costs between the constituent councils in such proportions as they may agree or, in default of such agreement, in proportion to the total resident population of the Combined Authority which resides in the local government area of that council at the relevant date as estimated by the Statistics Board65.

(4)

In relation to the expenditure mentioned in paragraph (2)—

(a)

to the extent to which such expenditure is to be met by amounts payable under arrangements made under paragraph (3)—

(i)

the Mayor must agree with the Combined Authority the total expenditure mentioned in paragraph (2) in advance of incurring this expenditure; and

(ii)

in the absence of the agreement specified in paragraph (i), no such expenditure may be incurred;

(b)

any precept issued in relation to such expenditure under regulations made under section 40 of the Local Government Finance Act 199266 is to be disregarded from any calculation of the costs of the expenditure.

(5)

The functions mentioned in articles 16 to 18 are to be funded out of the levy issued by the Combined Authority to the constituent councils under section 74 of the Local Government Finance Act 198867 and in accordance with the Transport Levying Bodies Regulations 199268.

(6)

For the purposes of this article the relevant date in relation to a payment for a financial year is 30th June in the financial year which commenced two years prior to the financial year in which such payment is made.