Staff Report #10
August 26, 2020
To All Commissioners
Re: Financial Update – Capital Budget Programs – July 31, 2020
Recommendation
That the report be NOTED and FILED.
Background
Summarized in the table below is the 2020 Capital Program Summary for the seven-month period ending July 31, 2020.
Summary of 2020 Capital Budget Program Activity
Seven Months Ending July 31, 2020
| Description | Actual | Budget | Amount Under Budget (Over Budget) |
|
| Program | ||||
| Stop Upgrades | $ – | $ 240,700 | $ 240,700 | |
| Service Fleet | 74,547 | 130,000 | 55,453 | |
| Shop Equipment | 145,351 | 236,200 | 90,849 | |
| Software and Hardware | 33,249 | 700,000 | 666,751 | |
| Facility Upgrades | 69,800 | 560,600 | 490,800 | |
| Bus Replacement (16) | 92,448 | 9,488,000 | 9,395,552 | |
| Bus Expansion | – | – | – | |
| Bus Stop Amenities | – | 550,000 | 550,000 | |
| Operator Barriers | 696,970 | 1,468,900 | 771,930 | |
| 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 | 29,846 | 325,000 | 295,154 | |
| Total | $ 1,142,211 | $ 17,686,500 | $ 16,544,289 | |
| Funding | ||||
| Provincial Gas Tax | $ 526,816 | $ 7,351,300 | $ 6,824,484 | |
| Capital Program Reserve | 453,147 | 1,296,900 | 843,753 | |
| City of London | 162,248 | 7,135,000 | 6,972,752 | |
| Federal – ICIP | – | 220,000 | 220,000 | |
| Provincial – ICIP | – | 183,300 | 183,300 | |
| Federal Gas Tax | – | 1,500,000 | 1,500,000 | |
| Total | $ 1,142,211 | $ 17,686,500 | $ 16,544,289 | |
The following programs are underway through the first seven 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 and hoist. 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 commenced line entry in mid-July. Providing there are no additional delays at the New Flyer facility, delivery is set to commence in late September.
Operator Barriers – Installation of the barriers has commenced and at the time of writing, enough permanent and temporary barriers have been installed in order to provide buses for the current service level. The remaining barriers will continue to be installed as they are received. It should also be noted that given the recent announcement of the Safe Restart Program (see Staff Report #1, dated August 26, 2020), it is anticipated that funding for this project can be utilized from this source, rather than from Provincial Gas Tax and the internal Capital Program Reserve fund as previously approved.
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