Staff Report #10
November 28, 2018
To All Commissioners
Re: Financial Update – Conventional Transit Services – Operating Budget – October 31, 2018
That the report be NOTED and FILED.
Set out in the table below is the Statement of Operations for Conventional Transit Services for the ten month period ending October 31, 2018. The statement sets out actual to budget performance for the period.
London Transit Commission
Statement of Operations – Conventional Transit Services
Ten Months Ending October 31, 2018
|Description||Actual||Budget||Amount Better (Worse)||Percent Better (Worse)|
|Transportation||26,587.3||$ 26,450.5||$ 136.8||0.5 %|
|Transfers from reserves||951.6||650.0||301.6||46.4 %|
|Province – provincial gas tax||6,508.0||6,508.0||–||0.0 %|
|City of London||22,730.8||22,730.8||–||0.0 %|
|Total revenue||58,010.5||57,492.0||518.5||0.9 %|
|Direct bus maintenance||4,811.3||4,847.2||35.9||0.7 %|
|Facility costs||2,491.6||2,538.5||47.2||1.9 %|
|Contribution to reserves||877.4||724.2||(153.2)||(21.2)%|
|All other material expense||2,025.6||2,027.3||1.7||0.1%|
|Net favourable/(unfavourable)||$ (238.7)||$ –||$ (238.7)||(0.4)%|
As indicated, the conventional transit service to-date has a net unfavourable actual to budget performance of $238,700 representing approximately 0.4% of the total budget to-date of $57.5 million.
The major performance issues relate to:
- favourable transportation revenue of $136,800 due to higher than budgeted ridership ($329,500) offset by lower than budgeted average fare ($216,100) (mix of riders different vs. budget);
- favourable operating revenue of $80,200 due to higher than budgeted interest income; and
- an increase in the transfers from reserves of $301,600 utilized to offset the unfavourable insurance expenditures noted below ($193,900) as well as personnel costs related to the return-to-work program ($107,700).
- unfavourable personnel costs of $105,900 due mainly to higher than budgeted return-to-work program costs as well as the impact of Bill 148’s paid emergency days offset by labour savings associated with reduced service hours;
- unfavourable fuel costs of $449,400 attributed to unfavourable fuel rates ($519,400) offset slightly by favourable fuel consumption ($70,000);
- unfavourable insurance claim costs of $133,500; and
- an increase over budget in contributions to reserves of $153,200 due to increases in interest income (operating revenue).
The table below sets out actual to budget ridership performance for the ten months ending October 31, 2018 as well as comparison to the same period in the previous year.
|Description||Actual||Budget||Variance||% Variance||2017 Actual||% Variance|
|Total Passengers (000’s)||19,220.9||18,983.7||237.4||1.2 %||18,513.8||3.8 %|
|Average Fare||$ 1.378||$ 1.389||$ (0.011)||(0.8)%||$ 1.377||0.1%|
|Revenue Service Hours||525.1||527.9||(2.8)||(0.5)%||507.9||3.4 %|
|Rides/Rev Service Hour||36.6||36.0||0.6||1.8 %||36.5||0.4 %|
September marked the first month of the new Youth pass available for sale. The monthly pass is sold for $52 for use by riders between the ages of 13 and 17. Monthly sales reported for the first three months of the program have been 629, 908 and 991 passes.
Once an appropriate period of time has passed and resulting trends given the new fare category have stabilized, administration will provide a further update assessing the impacts of the new program.
Administration will continue to monitor the operating budget performance, including ridership, on a monthly basis.
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager