Staff Report #6
October 19, 2026
To All Commissioners
Re: Financial Update – Capital Budget Programs – August 31, 2026
Recommendation
That the report be RECEIVED for information.
Background
Summarized in the table below is the 2026 Capital Program Summary for the eight-month period ending August 31, 2026.
Summary of 2026 Capital Budget Program Activity Eight Months Ending August 31, 2026
| Description | Actual | Budget | Amount Under Budget (Over Budget) | Project Status | |
| Program | |||||
| Bus replacement (2026) | $ 18,511,266 | $ 17,774,000 | $ (737,266) | Completed | |
| Bus expansion (ICIP) | 11,572,670 | 11,033,000 | (539,670) | Completed | |
| Bus expansion | 1,052,061 | 1,003,000 | (49,061) | Completed | |
| Facility upgrades | 383,918 | 500,000 | 116,082 | In progress | |
| Fare processing equipment | 1,582,606 | 1,936,800 | 354,194 | In progress | |
| Information systems | 544,472 | 1,000,000 | 455,528 | In progress | |
| Shop & garage equipment | 145,336 | 240,000 | 94,664 | In progress | |
| Service fleet replacement | 52,085 | 155,000 | 102,915 | In progress | |
| Stop upgrades | 30,935 | 63,500 | 32,565 | In progress | |
| Bus stop amenities | – | 167,500 | 167,500 | Pending ICIP approval | |
| Fleet radio replacement | – | 625,000 | 625,000 | Project deferred | |
| Highbury facility rebuild | – | 11,670,000 | 11,670,000 | In progress (multi-year) | |
| Zero emission bus pilot | – | 25,960,000 | 25,960,000 | In progress (multi-year) | |
| Total | $ 33,875,349 | $ 72,127,800 | $ 38,252,451 | ||
| Funding | |||||
| Provincial Gas Tax | $ 1,114,206 | $ 3,571,600 | $ 2,457,394 | ||
| Capital Program Reserve | 772,828 | 1,458,500 | 685,672 | ||
| City of London | 19,572,954 | 38,758,000 | 19,177,506 | ||
| CPTF | 4,126,000 | – | (4,126,000) | ||
| ICIP – Provincial | 3,767,895 | 6,984,900 | 3,217,005 | ||
| ICIP – Federal | 4,521,926 | 8,382,800 | 3,860,874 | ||
| Senior Government | – | 12,980,000 | 12,980,000 | ||
| Total | $ 33,875,349 | $ 72,127,800 | $ 38,252,451 | ||
The following programs are underway or completed through the first eight months of the year, with narrative focusing on the year-to-date progress.
Bus replacement and expansion (29 buses) – All 29 buses have been fully outfitted and placed into service. It should be noted that all three projects have exceeded their approved budgets due solely to additional US tariffs passed on by the manufacturer. With the recently approved allocation of the Canada Public Transit Fund by Council, funding for the above projects has been updated to reflect this modification and all expenditures will be fully funded.
Facility upgrades – The facility upgrade program is underway with costs incurred to date pertaining to office renovations, rotary lift installation, a generator and rear hoist refurbishments at Highbury.
Fare processing equipment – The project to replace the OBV’s (on board validators) on the conventional fleet is near completion, with all buses currently on the road having been upgraded. Outstanding payments pertain to the final holdbacks pending clearance of remaining punch list items for both the validator and back-office software upgrades.
Information systems & hardware – Expenditures incurred to date include additions to networking equipment and other hardware purchases.
Shop and garage equipment – Expenditures incurred to date relate to the ongoing monthly purchase of shop tools and miscellaneous equipment within Fleet & Facilities.
Service fleet replacement – Expenditures incurred to date are for the purchase of a new Inspector van which has since been outfitted for service.
Administration will continue to monitor actual to budget performance and report to the Commission monthly.
Recommended by:
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager