To All Commissioners
Re: Financial Update – Conventional Transit Services – Operating Budget – March 31, 2018
Recommendation
That the report be NOTED and FILED.
Background
Set out in the table below is the Statement of Operations for Conventional Transit Services for the three month period ending March 31, 2018. The statement sets out actual to budget performance for the period.
London Transit Commission
Statement of Operations – Conventional Transit Services
Three Months Ending March 31, 2018
(000’s omitted)
| Amount | Percent | ||||
| Better | Better | ||||
| Description | Actual | Budget | (Worse) | (Worse) | |
| Revenue | |||||
| Transportation | $ 8,644.0 | $ 8,577.3 | $ 66.7 | 0.8 % | |
| Operating | 364.5 | 344.2 | 20.3 | 5.9 % | |
| Transfers from reserves | 216.6 | 195.0 | 21.6 | 11.1 % | |
| Province – provincial gas tax | 1,952.4 | 1,952.4 | – | 0.0 % | |
| City of London | 5,659.2 | 5,659.2 | – | 0.0 % | |
| Total revenue | 16,836.7 | 16,728.1 | 108.6 | 0.6 % | |
| Expenditure | |||||
| Personnel cost | 11,361.0 | 11,349.7 | (11.3) | (0.1)% | |
| Direct bus maintenance | 1,596.6 | 1,594.9 | (1.7) | (0.1)% | |
| Fuel | 1,795.7 | 1,766.2 | (29.5) | (1.7)% | |
| Facility costs | 975.8 | 990.7 | 14.9 | 1.5 % | |
| Insurance | 149.5 | 150.0 | 0.5 | 0.3 % | |
| Contribution to reserves | 466.3 | 440.0 | (26.3) | (6.0)% | |
| All other material expense | 451.9 | 436.6 | (15.3) | (3.5)% | |
| Total expenditure | 16,796.9 | 16,728.1 | (68.8) | (0.4)% | |
| Net favourable/(unfavourable) | $ 39.8 | $ – | $ 39.8 | 0.2 % | |
As indicated, the conventional transit service to-date has a net favourable actual to budget performance of $39,800 representing approximately 0.2% of the total budget to-date of $16.7 million.
The major performance issues relate to:
Revenue
- favourable transportation revenue of $66,700 due to higher than budgeted ridership ($130,700) offset by lower average fare ($59,500) (mix of riders different vs. budget);
- favourable operating revenue of $ 20,300 due to higher than budgeted interest income; and
- favourable transfers from reserves of $21,600 relating to higher return to work costs (personnel).
Expenditures
- unfavourable personnel costs of $11,300 due mainly to higher than budgeted return to work costs;
- unfavourable fuel costs of $29,500 attributed to unfavourable fuel rates ($116,000) offset by favourable fuel consumption ($86,500);
- favourable facility costs of $14,900 due to both natural gas and hydro savings; and
- unfavourable contributions to reserves of $ 26,300 due to increases in interest income (operating revenue).
Ridership
The table below sets out actual to budget ridership performance for the three months ending March 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) | 6,590.5 | 6,491.6 | 98.9 | 1.5 % | 6,525.6 | 1.0 % |
| Average Fare | $ 1.312 | $ 1.321 | $ (0.009) | (0.7)% | $ 1.305 | 0.5 % |
| Revenue Service Hours | 159.0 | 161.5 | (2.5) | (1.5)% | 157.8 | 0.8 % |
| Rides/Rev Service Hour | 41.4 | 40.2 | 1.2 | 3.1 % | 41.3 | 0.2 % |
Administration will continue to monitor the operating budget performance, including ridership, on a monthly basis.
Recommended by:
Mike Gregor – Director of Finance
Concurred in by:
Kelly S. Paleczny – General Manager