Staff Report #11 – Re: Financial Update – Capital Budget Programs – September 30, 2018

Staff Report #11

October 31, 2018

To All Commissioners

Re: Financial Update – Capital Budget Programs – September 30, 2018


That the report be NOTED and FILED.


Summarized in the table below is the 2018 Capital Program Summary for the nine month period ending September 30, 2018.

Summary of 2018 Capital Budget Program Activity

Nine Months Ending September 30, 2018

Description  Actual  Budget Amount Under Budget
(Over Budget)
Stop Upgrades $ 91,829  $ 110,000  $ 18,171
Service Fleet 33,971 40,000 6,029
Shop Equipment 65,683 200,000 134,317
Software and Hardware 134,767 600,000 465,233
Facility Upgrades 161,324 300,000 138,676
Bus Replacement (8) 2,244,300 4,560,800 2,316,500
Bus Expansion (4) 202,305 2,378,400 2,176,095
Fleet Radio Replacement 625,000 625,000
TMP 2030 – BRT Strategy 1,500,000 1,500,000
Fare Processing Equipment 1,495,000 1,495,000
Smart Card Program 17,543 605,000 587,457
Total $ 2,951,722  $ 12,414,200  $ 9,462,478
Provincial Gas Tax $ 139,348 $ 5,502,200  $ 5,362,852
Capital Program Reserve 204,445 627,000 422,555
City of London 2,607,929 4,785,000 2,177,071
Federal Gas Tax 1,500,000 1,500,000
Total $ 2,951,722  $ 12,414,200  $ 9,462,478

The following programs are underway through the first nine months of the year, with narrative focusing on the YTD progress.

Stop Upgrades

The costs incurred to-date are attributable to the remaining expenditures from the 2017 shelter installs as well as cement pads required for 2018 service improvements. 10 shelters budgeted in 2018 have been ordered and scheduled for installation in late January due to manufacturing delays.

Service Fleet

The costs incurred to-date are attributable to the purchase of a new service van. The project is complete.

Shop Equipment

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

Software and Hardware

The costs incurred to-date are attributable to the replacement of the Specialized Scheduling System and other workstation and networking equipment replacements. Work on these projects is scheduled to continue for the remainder of the year.


Facility Upgrades

Expenditures incurred to-date relate to the purchase of high speed doors for the fuel service lanes, repairs to the maintenance inspection pit and also new office construction. The remaining projects scheduled for 2018, include the next phase of lighting replacement, reinforcement of columns in A and B barn, and grating to be replaced in B barn.

Bus Purchases (Bus Replacement & Bus Expansion)

The costs incurred to-date are attributable to the early purchase of ancillary equipment and inspection costs required for the 2018 bus expansion and replacement projects as well as four buses were received in mid-August. More buses have arrived in October with invoicing to occur in that period with the remainder expected prior to year end.

The remaining programs, including Fleet Radio Replacement, TMP 2030 – BRT Strategy and Fare Processing Equipment, are not likely to commence in 2018. Determination to carry forward to 2019 will occur during the budget recosting process in March.

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