Agenda item

The Combined Authority considered a report of the Director of Corporate Services which:

·                    Sought approval to the proposed revenue budget and transport levy for 2019/20, the indicative capital programme, capital strategy and treasury management statement.

·                    Sought approval to the detailed business plan for 2019/20 that sets out the services, activities and priorities for the organisation in the coming year.

Business Plan 2019/20

It was reported that a detailed business plan had been produced, focussing on productivity, inclusive growth and a 21^st century transport system. It was noted that a number of actions addressing carbon reduction have been identified and a fourth corporate priority on clean growth had been included to reflect the environmental ambitions and the work being done to achieve a zero carbon economy. The proposed business plan for each directorate was attached at Appendix 1 and Members were given a presentation setting out their main focus and summarising how the money is planned to be spent.  A public facing corporate plan was being developed, and this would draw on the information in the business plans to demonstrate what the Combined Authority and LEP intend to deliver for people in the region in the coming year. 

Revenue Budget 2019/20

Members considered the proposed revenue budget which was set out in Appendix 3 and details of the key drivers and assumptions for the main budget lines were provided in the submitted report.

Details of the Reserves Policy and position for 2018/19 were outlined in the submitted report and the workings for this year’s reserves policy were set out in Table 1.  It was noted that an animation was available on the Combined Authority’s website that summarised the budget and work of the Combined Authority.

Transport Levy

Details of the net and gross levy by population, showing the effect of the decrease of £1million and the change in population base were provided in Table 3.  This also included the proposed part rebate of previously received contributions towards the Transport Fund reserve.  It was proposed to rebate £2 million for the next two financial years whilst the requirement for borrowing against the capital programme is building up.

Capital Programme 2017/18 and 2018/19

The Combined Authority noted the capital programme for 2019/20 and subsequent years and the indicative capital programme which were outlined in the submitted report. 

It was reported that the Investment Committee now had some approval powers and they would continue to be a key part of the process whereby Growth Deal and other projects are considered and recommended for progression.  It was also proposed that the arrangement for the Transport Committee to approve Integrated Block funded projects up to a value of £3m is continued for 2019/20.

Treasury Management

Members noted the Prudential Funding Statement which was attached at Appendix 4. This set out the treasury management activity in the year, the arrangements in place and details of the funding position.

It was reported that approval of the budget and business plan 2019/20 was a key decisions which should have been published 28 days in advance of consideration of the item. However as the Combined Authority is required by the levying regulations to set the transport levy for 2019/20 by 15 February 2019, it was agreed to take the decision under the rules of General Exception as detailed in paragraph 5.2 of the submitted report.

Resolved:

(a)       That the Combined Authority revised budget / forecast for 2018/19 and the proposed budget for 2019/20 be approved.

(b)       That the indicative capital programme for 2018/19 – 2021/22 be approved.

(c)        That the 2019/20 business plan be approved.

(d)       That the Transport Committee be delegated to approve individual schemes within the integrated transport block of the 2019/20 capital programme up to a maximum cost of £3m.

(e)       That in accordance with the powers contained in the Local Government Finance Act 1988 (as amended) and by virtue of article 9(6) of the West Yorkshire Combined Authority Order and the Transport Levying Bodies Regulations 2015 (as amended) a levy of £104m be determined for the year ended 31 March 2020.

(f)        That the Director of Corporate Services be authorised to issue the levy letter in respect of the financial year ending 31 March 2020 to the five District Councils in West Yorkshire.

(g)       That a payment of £5.09 million and of £2 million be made to the District Councils in accordance with Table 3 of the report.

(h)       That authorisation be given to the Director of Corporate Services to arrange appropriate funding for all expenditure in 2018/19 and 2019/20 subject to statutory limitation, including the most appropriate application of capital funding as set out in the report.

(i)         That approval be made to the expenditure of highways maintenance funding of £28.442 million and the pothole action fund of £1.594 million, to be paid quarterly to the West Yorkshire local authorities in accordance with the DfT formula, and for Director of Corporate Services to vary these amounts should DfT revise the payments from those provisionally indicated.

(j)         That approval be given to the continuing of the policy, effective from 2017/18, for recovering the Combined Authority costs of managing the capital programme against the capital programme spend being mainly Growth Deal, Leeds Public Transport Investment Programme and Local Transport Plan Integrated Transport.  For 2019/20 the estimated total value is £7.8 million (2% - 3%).

(k)        That the adoption of the CIPFA Code of Practice for Treasury Management in Public Services be reaffirmed.

(l)         That the treasury management policy as set out in Appendix 4 of the report be approved.

(m)      That the prudential limits for the next three years as set out in Appendix 4 of the report be adopted.