Staff Report #1
June 23, 2025
To All Commissioners
Re: Financial Update – Conventional Transit Services – Operating Budget – April 30, 2025
Recommendation
That the report be RECEIVED for information.
Background
Set out in the table below is the Statement of Operations for Conventional Transit Services for the four-month period ending April 30, 2025. The statement sets out actual to budget performance for the period.
London Transit Commission Statement of Operations – Conventional Transit Services Four Months Ending April 30, 2025 (000’s omitted)
| Description | Actual | Budget | Amount Better (Worse) | Percent Better (Worse) | |
| Revenue | |||||
| Transportation | $ 14,306.7 | $ 14,206.2 | $ 100.5 | 0.7 % | |
| Operating | 763.8 | 724.6 | 39.2 | 5.4 % | |
| Transfers from reserves | 258.9 | 374.4 | (115.5) | (30.9)% | |
| Province-provincial gas tax | 3,329.0 | 3,329.0 | – | 0.0 % | |
| City of London | 13,433.4 | 13,433.4 | – | 0.0 % | |
| Total revenue | 32,091.8 | 32,067.6 | 24.2 | 0.1 % | |
| Expenditure | |||||
| Personnel cost | 21,424.2 | 21,747.4 | 323.2 | 1.5 % | |
| Direct bus maintenance | 3,544.0 | 3,395.5 | (148.5) | (4.4)% | |
| Fuel | 3,097.2 | 3,484.5 | 387.3 | 11.1 % | |
| Facility costs | 1,644.5 | 1,528.1 | (116.4) | (7.6)% | |
| Insurance | 258.9 | 374.4 | 115.5 | 30.9 % | |
| Contribution to reserves | 236.7 | 231.7 | (5.0) | (2.2)% | |
| All other material expense | 1,283.1 | 1,306.0 | 22.9 | 1.8 % | |
| Total expenditure | 31,488.6 | 32,067.6 | 579.0 | 1.8 % | |
| Net favourable/(unfavourable) | $ 603.2 | $ – | $ 603.2 | 1.9 % | |
As indicated in the above table, the conventional service has a net favourable operating budget performance to-date of 1.9% or $603,200. An explanation of the variances is set out below.
Revenue
- favourable transportation revenues of $100,500 due mainly to higher than budgeted ridership;
- favourable operating revenues of $39,200 due to higher interest income earned, noting $5,000 relates to interest earned on reserve funds and is highlighted below as an unfavourable contribution to reserves; and
- unfavourable transfers from reserves of $115,500 as the required contribution to cover insurance claims is $115,500 less than budgeted, noting this decrease is offset below within the favourable insurance expenditure.
Expenditures
- favourable personnel costs of $323,200 due primarily to the timing of filling vacant positions in the Fleet & Facilities department along with corresponding benefit costs;
- unfavourable direct bus maintenance costs of $148,500 directly related to the outsourcing of repair work due to mechanical staff shortages;
- favourable fuel costs of $387,300 due to lower than budgeted diesel fuel prices;
- unfavourable facility costs of $116,400 due mainly to higher than budgeted contracted services by the City for bus stop snow removal; and
- favourable insurance costs of $115,500 due to lower than budgeted claim costs.
Ridership
The table below sets out actual to budget ridership performance as well as a comparison to the same period in the previous year.
Ridership Performance – Actual vs. Budget Four Months Ending April 30, 2025 (000’s omitted)
| Description | Actual | Budget | Variance | % Variance | 2024 Actual | % Variance |
| Total Passengers (000’s) | 6,560.9 | 6,431.9 | 129.0 | 2.0 % | 7,015.1 | (6.5)% |
| Average Fare | $ 2.181 | $ 2.209 | $ (0.028) | (1.3)% | $ 1.995 | 9.3 % |
| Revenue Service Hours | 240.4 | 245.7 | (5.3) | (2.2)% | 238.1 | 1.0 % |
| Rides/Rev Service Hour | 27.3 | 26.2 | 1.1 | 4.3 % | 29.5 | (7.4)% |
Ridership is slightly above the year-to-date budgeted level but lower than 2024 levels for the same period due mainly to the reduction in tuition pass riders (international students).
2025 service hours are slightly below budget due to limitations in bus availability for tripper buses. The 1.0% increase in service hours compared to 2024 actual is due to the implementation of the annualized 2024 service growth.
Administration will continue to monitor the operating budget performance, including ridership, on a monthly basis.
Recommended by:
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager