Staff Report #11
May 9, 2025
To All Commissioners
Re: 2025 Work Program – Finance – First Quarter Update
Recommendation
That the report be NOTED and FILED.
Background
The following report is provided as an update on significant projects as set out in the 2025 Work Program that were scheduled to commence and/or be completed in the first quarter, with the lead on same being the primary responsibility of the Finance department.
7.2 – Pension Plan Audit
The year-end accounting for the London Transit Commission Employees’ Pension Plan has been completed and KPMG is in the process of finalizing the annual audit. The audit covers the former Standard Life pension that was in place prior to migration to OMERS in 1989. The draft audited financial statements will be presented at the June Commission meeting and will subsequently be submitted to the Financial Services Regulatory Authority of Ontario (FSRA) in order to meet its June 30th filing deadline.
7.11 – Facility Valuation for Insurance Renewal
During the 2024-2025 General Insurance Program renewal, the insurance carrier identified that a full property valuation would be a mandatory requirement for the next renewal. Further discussions with the Commission’s insurance broker, Marsh Canada Ltd. (Marsh), along with additional dialogue with civic administration, confirmed carriers are quite actively requiring insureds to provide independently updated statement of values, including buildings, contents, equipment and inventory. This has been in response to significant increases in construction and equipment costs post-pandemic.
With the assistance of Suncorp Valuations, Marsh completed a valuation service comprised of buildings, site improvements, and equipment located at both 450 Highbury and 3508 Wonderland. Administration worked with both of these vendors over the course of a week to facilitate their necessary fieldwork. The valuation service was performed in order to estimate the insurable value of the identified property and assets for use with the property insurance replacement. The report will also be incorporated into the Commission’s Asset Management Plan during the 2025 update.
Administration is currently working with Marsh on the 2025-2026 General Insurance Program renewal as the current program is set to expire June 30th. Details of which will be the subject of a Staff Report for the June Commission meeting.
10.16 – Asset Management Plan Update (AMP)
The Corporate Asset Management (CAM) department at the City of London has supported London Transit, through a service level agreement, to develop the Commission’s comprehensive AMP as approved in May 2024 and later included in the City’s overarching plan. This AMP builds upon existing London Transit asset management activities and leverages others that have been developing since the establishment of the City’s CAM department and CAM Program. The 2024 LTC AMP was designed to enhance the management of London Transit infrastructure assets in a way that connects strategic London Transit, City of London, and community objectives to day-to-day and long-term infrastructure investment decisions. Finance, together with Fleet and Facilities, worked with the CAM team during the first quarter to provide data necessary to support updated reporting of the City’s plan. Work will continue on an annual basis with the CAM team to review and update that plan as required, noting a comprehensive update is to occur before each future multi-year budget cycle, as O. Reg. 588/17 requires a comprehensive update at least every five years. As noted above, the recently completed Facility Valuation will be helpful in updating the plan in the future.
Recommended by:
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager