Staff Report #10
May 31, 2023
To All Commissioners
Re: Financial Update – Specialized Transit Services – Operating Budget – April 30, 2023
Recommendation
That the report be NOTED and FILED.
Background
Set out in the table below is the Statement of Operations for Specialized Transit Services for the four-month period ending April 30, 2023. The statement sets out actual to budget performance for the period.
London Transit Commission Statement of Operations – Specialized Transit Services Four Months Ending April 30, 2023 (000’s omitted)
| Description | Actual | Budget | Amount Better (Worse) | Percent Better (Worse) | |
| Revenue | |||||
| Transportation | $ 148.5 | $ 163.6 | $ (15.1) | (9.2)% | |
| Province-provincial gas tax | 601.8 | 601.8 | – | 0.0 % | |
| City of London | 2,600.7 | 2,600.7 | – | 0.0 % | |
| Total revenue | 3,351.0 | 3,366.1 | (15.1) | (0.4)% | |
| Expenditure | |||||
| Personnel cost | 411.1 | 425.8 | 14.7 | 3.5 % | |
| Contract service cost | 2,699.0 | 2,889.2 | 190.2 | 6.6 % | |
| All other material expense | 48.3 | 51.1 | 2.8 | 5.5 % | |
| Total expenditure | 3158.3 | 3,366.1 | 207.8 | 6.2 % | |
| Net favourable/(unfavourable) | $ 192.6 | $ – | $ 192.6 | 5.7 % | |
As indicated in the above table, the service has a net favourable operating budget performance to date of 5.7% or $192,600. An explanation of the variances is set out below.
Net Operating Costs
- unfavourable transportation revenue of $15,100 due to lower ridership than planned;
- favourable personnel costs of $14,700 due to timing of vacancies and less than anticipated overtime; and
- favourable contract service costs of $190,200 due to lower than budgeted service hours utilized.
Ridership
The table below sets out actual to budget ridership and other performance related measures as well as a comparison to the same period in the previous year.
Ridership and Other Statistics Actual vs. Budget Four Months Ending April 30, 2023 (000’s omitted)
| Description | Actual | Budget | Variance | % Variance | 2022 Actual | % Variance | |
| Eligible passenger trips | 72,692 | 75,500 | (2,808) | (3.7)% | 62,454 | 16.4 % | |
| Attendant/companion trips | 5,058 | 8,700 | (3,642) | (41.9)% | 3,726 | 35.7 % | |
| Total Trips | 77,750 | 84,200 | (6,450) | (7.7)% | 66,180 | 17.5 % | |
| Average fare | $ 1.910 | $ 1.943 | $ (0.033) | (1.7) % | $ 1.952 | (2.2)% | |
| Service Hours | 39,230 | 42,000 | (2,770) | (6.6) % | 40,788 | (3.8)% | |
| EPT per service hour | 1.85 | 1.80 | 0.05 | 3.1 % | 1.53 | 21.0 % | |
| Total trips per service hour | 1.98 | 2.00 | (0.02) | (1.1)% | 1.62 | 22.1 % | |
Administration will continue to monitor the operating budget performance reporting on same on a monthly basis including providing recommendations as may be appropriate.
Recommended by:
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager