Staff Report #8
July 29, 2020
To All Commissioners
Re: Financial Update – Capital Budget Programs – June 30, 2020
Recommendation
That the report be NOTED and FILED.
Background
Summarized in the table below is the 2020 Capital Program Summary for the six-month period ending June 30, 2020.
Summary of 2020 Capital Budget Program Activity
Six Months Ending June 30, 2020
| Description | Actual | Budget | Amount Under Budget (Over Budget) | |
| Program | ||||
| Stop Upgrades | $ – | $ 240,700 | $ 240,700 | |
| Service Fleet | 73,839 | 130,000 | 56,161 | |
| Shop Equipment | 109,434 | 236,200 | 126,766 | |
| 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 | 29,330 | 325,000 | 295,670 | |
| Total | $ 388,307 | $ 17,686,500 | $ 17,298,193 | |
| Funding | ||||
| Provincial Gas Tax | $ 29,330 | $ 7,351,300 | $ 7,321,970 | |
| Capital Program Reserve | 209,348 | 1,296,900 | 1,087,552 | |
| 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 | $ 388,307 | $ 17,686,500 | $ 17,298,193 | |
The following programs are underway through the first six 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. A van was purchased for the mobile mechanic function and is currently being outfitted with racking, lighting, etc.
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 September.
Smart Card Program – additional replacement routers purchased.
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