Staff Report #10
August 27, 2025
To All Commissioners
Re: Financial Update – Capital Budget Programs – July 31, 2025
Recommendation
That the report be RECEIVED for information.
Background
Summarized in the table below is the 2025 Capital Program Summary for the seven-month period ending July 31, 2025. At the June meeting, the Commission requested additional detail be provided with respect to capital projects and the status of each. The following table has been amended to include a project status column, which indicates the status of each project. Projects with a status of “in progress” indicate that it is anticipated the project will be completed in 2025. Projects with a status of “in progress (multi-year) indicate projects that are underway, but will span multiple years. In these cases, the budget allocation included for the project may be carried forward to the following year subject to project progression. Projects with a status of complete indicate that all invoices for the project have been paid, and any remaining budget is considered a surplus. The manner in which the surplus is dealt with is dependent upon the program’s funding sources. Programs that are funded by the City of London and/or senior level government programs are closed out and any remaining funding that had been allocated is left to the funder to reallocate. Programs that are funded by the LTC Capital Program Reserve would see any surplus from approved projects remain in the Commission’s Capital Program Reserve for use on future year’s projects.
Summary of 2025 Capital Budget Program Activity Seven Months Ending July 31, 2025
| Description | Actual | Budget | Amount Under Budget (Over Budget) |
Project Status | |
| Program | |||||
| Bus replacement (2025) | $ 11,102,224 | $ 16,399,700 | $ 5,297,476 | In progress | |
| Bus replacement (2024) | 15,328,484 | 15,393,200 | 64,716 | In progress | |
| Facility upgrades | 177,884 | 500,000 | 322,116 | In progress | |
| Fare processing equipment | 188,420 | 2,495,000 | 2,306,580 | In progress (multi-year) | |
| Information systems | 158,669 | 800,000 | 641,331 | In progress | |
| Shop & garage equipment | 71,259 | 235,000 | 163,741 | In progress | |
| Service fleet replacement | 53,732 | 65,000 | 11,268 | Project complete | |
| Stop upgrades | 11,958 | 96,000 | 84,042 | In progress | |
| Fleet radio replacement | – | 625,000 | 625,000 | Project deferred | |
| Highbury facility rebuild | – | 5,000,000 | 5,000,000 | In progress (multi-year) | |
| Zero emission bus pilot | – | 25,960,000 | 25,960,000 | In progress (multi-year) | |
| Total | $ 27,092,630 | $ 67,568,900 | $ 40,476,270 | ||
| Funding | |||||
| Provincial Gas Tax | $ 1,414,985 | $ 4,497,600 | 3,082,615 | ||
| Capital Program Reserve | 295,617 | 1,198,000 | 900,383 | ||
| City of London | 21,382,028 | 38,230,300 | 16,848,272 | ||
| City – Federal Gas Tax | 4,000,000 | 7,000,000 | 3,000,000 | ||
| ICIP – Provincial | – | 1,665,000 | 1,665,000 | ||
| ICIP – Federal | – | 2,000,000 | 2,000,000 | ||
| Senior Government | – | 12,980,000 | 12,980,000 | ||
| Total | $ 27,092,630 | $ 67,568,900 | $ 40,476,270 | ||
The following programs are underway through the first seven months of the year, with narrative focusing on the year-to-date progress.
Bus replacement (2024 & 2025) – As of July 31, 28 out of the 34 buses were received and are included in the expenditures above, with the remaining six buses having arrived in August. At the time of writing, 12 buses have been outfitted for service and are currently on the road. As set out in Staff Report #3, dated August 27, 2025, work is ongoing to prepare the remaining buses and place them into service.
Facility upgrades – The facility upgrade program is underway with costs incurred to date pertaining to additional work on the bus fueling and wash lane at the Wonderland facility, along with many other minor repairs and maintenance projects. As set out in Staff Report #7 dated August 27, 2025, a contract for asphalt repairs at the Wonderland facility is being recommended, which is part of this program.
Fare processing equipment – The project to replace the OBV’s (on board validators) on the conventional fleet is underway with the costs included above pertaining to the first payment milestone. As further discussed in Staff Report #5, dated August 27, 2027, the project is underway with the review and approval of the hardware specifications currently in process.
Information systems & hardware – Expenditures incurred to date include the networking equipment, Transit Master system upgrades as well as payments for the Specialized scheduling system’s passenger portal module.
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 relate to the purchase of a new Inspector van which has been outfitted for service.
Stop upgrades – Expenditures incurred to date pertain to the purchase of replacement glass for shelters.
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