Staff Report #8
April 28, 2021
To All Commissioners
Re: Financial Update – Specialized Transit Services – Operating Budget – March 31, 2021
That the report be NOTED and FILED.
Set out in the table below is the Statement of Operations for Specialized Transit Services for the three-month period ending March 31, 2021. The statement sets out actual to budget performance for the period.
London Transit Commission Statement of Operations – Specialized Transit Services Three Months Ending March 31, 2021 (000’s omitted)
|Description||Actual||Budget||Amount Better (Worse)||Percent Better (Worse)|
|Transportation||$ 67.2||$ 61.8||$ 5.4||8.7 %|
|Province-provincial gas tax||426.0||426.0||–||0.0 %|
|City of London||2,086.2||2,086.2||–||0.0 %|
|Total revenue||2,579.4||2,574.0||5.4||0.2 %|
|Personnel cost||279.7||283.5||3.8||1.3 %|
|Contract service cost||1,863.7||1,877.9||14.2||0.8 %|
|All other material expense||41.2||40.9||(0.3)||(0.7)%|
|Total expenditure||2,184.6||2,202.3||17.7||0.8 %|
|Net cost||394.8||371.7||23.1||1.0 %|
|Safe restart program(1)||(391.1)||(371.7)||(19.4)||(0.8)%|
|Net favourable/(unfavourable)||$ 3.6||$ –||$ 3.6||0.2 %|
Notes: (1) Actual safe restart allocation subject to final reconciliation and submission of claims to the Province
As set out in Staff Report #4, dated March 31, 2021, the recosted operating budget for specialized transit service contains a net favourable “surplus” due to the reduction in service levels anticipated for the ongoing COVID-19 pandemic. These savings will be applied against the net operating shortfall on the conventional service side, consistent with the Safe Restart Program guidelines. As noted in the above table, the year-to-date savings that will be recognized on the Safe Restart submission are $371,700.
Given the recosted 2021 operating budget for specialized transit was updated to reflect continuing COVID-19 trends, the monthly comparisons between budget and actual results will only contain COVID-19 impacts that vary from those assumptions included in the recosted budget and will be discussed below, including any other operating variances. COVID-19 related variances will be monitored in connection with the Safe Restart funding and overall Safe Restart Reserve Fund and separate reports will be provided detailing actual submissions to the Province.
As indicated in the above table, the service has a net favourable operating budget performance to-date of 0.2% or $3,600. An explanation of the variances is set out below.
Net Operating Costs
- favourable transportation revenue of $5,400 due to higher ridership than anticipated; and
- favourable contract service costs of $14,200 due to slightly less service hours utilized.
The table below sets out actual to budget ridership and other performance related measures as well as a comparison to the same period in the previous year.
Ridership and Other Statistics Actual vs. budget Three Months Ending March 31, 2021 (000’s omitted)
|Description||Actual||Budget||Variance||% Variance||2020 Actual||% Variance|
|Eligible passenger trips||31,829||27,400||4,429||16.2 %||66,998||(52.5)%|
|Total Trips||33,949||30,600||3,349||10.9 %||74,731||(54.6)%|
|Average fare||$ 1.979||2.020||$ (0.040)||(2.0)%||$ 2.083||(5.0)%|
|Service Hours||30,223||30,451||228||0.7 %||37,856||(19.7)%|
|EPT per service hour||1.05||0.90||0.15||17.0 %||1.78||(40.8)%|
|Total trips per service hour||1.12||1.00||0.12||11.8 %||1.98||(43.4)%|
|Total Registrants||11,410||11,315||0.8 %|
As noted above, total trips were slightly greater than anticipated but are expected to fluctuate from budget as the province moves in and out of lockdown. Comparisons to prior year are somewhat difficult given March 2020 results had little impact from the pandemic while the March 2021 results are significantly impacted. This will change significantly as the year progresses.
Administration will continue to monitor the operating budget performance reporting on same on a monthly basis including providing recommendations as may be appropriate.
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager