Staff Report #8 – Financial Update – Capital Budget Programs – May 31, 2020

Staff Report #8

June 24, 2020

To All Commissioners

Re: Financial Update – Capital Budget Programs – May 31, 2020

Recommendation

That the report be NOTED and FILED.

Background

Summarized in the table below is the 2020 Capital Program Summary for the five month period ending May 31, 2020.

Summary of 2020 Capital Budget Program Activity

Five Months Ending May 31, 2020

Description  Actual  Budget Amount
Under Budget
(Over Budget)
Program
Stop Upgrades $ –  $ 240,700  $ 240,700
Service Fleet 33,635 130,000 96,365
Shop Equipment 103,719 236,200 132,481
Software and Hardware 26,074 700,000 673,926
Facility Upgrades 57,182 560,600 503,418
Bus Replacement (16) 92,448 9,488,000 9,395,552
Bus Expansion (1)
Bus Stop Amenities 550,000 550,000
Operator Barriers 1,468,900 1,468,900
Fleet Radio Replacement 625,000 625,000
TMP 2030 – BRT Strategy 1,500,000 1,500,000
Fare Processing Equipment 1,862,100 1,862,100
Smart Card Program 325,000 325,000
Total $ 313,058  $ 17,686,500  $ 17,373,442
Funding
Provincial Gas Tax $ – $ 7,351,300  $ 7,351,300
Capital Program Reserve 163,429 1,296,900 1,133,471
City of London 149,629 7,135,000 6,985,371
Federal – ICIP 220,000 220,000
Provincial – ICIP 183,300 183,300
Federal Gas Tax 1,500,000 1,500,000
Total $ 313,058  $ 17,686,500  $ 17,373,442

The following programs are underway through the first five months of the year, with narrative focusing on the year-to-date progress.

Service Fleet – The replacement vehicle for the Inspector fleet was purchased and has been fully outfitted and placed into service. The remaining budget is for a second vehicle which has yet to be sourced.

Shop Equipment – Expenditures incurred to-date relate to the ongoing monthly purchase of shop tools and equipment as well as a scrubber. This budget is utilized throughout the year as equipment and tools are required.

Software and Hardware – Expenditures incurred to-date for the purchasing of workstations and networking equipment.

Facility Upgrades – Expenditures incurred to-date have been for generator upgrades (both facilities), boiler replacement (Wonderland), an updated sewer connection (Wonderland), repairs to damaged columns (Highbury), and HVAC upgrades in the server room. A few other projects are underway with the remainder expected to be completed by year end.

Bus Replacements (16) – Expenditures incurred to-date are for a portion of the ancillary equipment. The buses are scheduled for line entry in mid-July. Providing there are no additional delays at the New Flyer facility, delivery is set to commence in late October.

Administration will continue to monitor actual to budget performance and report to the Commission on a monthly basis.

Recommended by:

Mike Gregor, Director of Finance

Concurred in by:

Kelly S. Paleczny, General Manager