Staff Report #5
May 26, 2021
To All Commissioners
Re: Financial Update – Conventional Transit Services – Operating Budget – April 30, 2021
That the report be NOTED and FILED.
Set out in the table below is the Statement of Operations for Conventional Transit Services for the four-month period ending April 30, 2021. The statement sets out actual to budget performance for the period.
London Transit Commission Statement of Operations – Conventional Transit Services Four Months Ending April 30, 2021 (000’s omitted)
|Description||Actual||Budget||Amount Better (Worse)||Percent Better (Worse)|
|Transportation||$ 5,482.0||$ 5,859.8||$ (377.8)||(6.4)%|
|Transfers from reserves||347.6||374.4||(26.8)||(7.2)%|
|Province-provincial gas tax||3,180.4||3,180.4||–||0.0 %|
|City of London||7,410.8||7,410.8||–||0.0 %|
|Personnel cost||17,299.7||17,450.2||150.5||0.9 %|
|Direct bus maintenance||2,230.9||2,268.4||37.5||1.7 %|
|Facility costs||1,210.7||1,254.6||43.9||3.5 %|
|Contribution to reserves||90.1||88.9||(1.2)||(1.3)%|
|All other material expense||1,006.3||1,179.3||173.0||14.7 %|
|Total expenditure||24,245.0||24,808.2||563.2||2.3 %|
|Net cost||(7,605.9)||(7,738.8)||132.9||0.5 %|
|Safe restart program(1)||8,078.2||7,738.8||339.4||4.4 %|
|Net favourable/(unfavourable)||$ 472.3||$ –||$ 472.3||1.9 %|
Notes: (1) Actual safe restart allocation subject to final reconciliation and submission of claims to the Province
Given the recosted 2021 operating budget for conventional transit was updated to reflect continuing COVID-19 trends, the monthly comparisons between budget and actual results will only contain COVID-19 impacts that vary from those assumptions included in the recosted budget and will be discussed below, including any other operating variances. COVID-19 related variances will be monitored in connection with the Safe Restart funding and overall Safe Restart Reserve Fund and separate reports will be provided detailing actual submissions to the Province.
As indicated in the above table, the conventional service has a net favourable operating budget performance to-date of 1.9% or $472,300. An explanation of the variances is set out below.
- unfavourable transportation revenue of $377,800 due to the continued Provincial lockdown, noting this variance will be eligible for application of Safe Restart Funding and included within the Safe restart program line item;
- unfavourable operating revenue of $25,700 due to lower interest earned on cash balances; and
- unfavourable transfers from reserves of $26,800 due to lower than anticipated insurance claims (see offset below in Expenditures).
- favourable personnel costs of $150,500 due mainly to the timing of replacing vacant positions and the reduction in rehab work assignments;
- favourable fuel costs of $132,700 due to reduced prices and improved fuel mileage;
- favourable insurance costs of $26,800 due to the lower level of insurance claims received; and
- favourable other materials of $173,000 due to lower COVID-19 related expenditures than budgeted.
The table below sets out actual to budget ridership performance as well as comparison to the same period in the previous year, noting that ridership numbers in 2020 began to see a significant decline in late March 2020 due to the onset of the pandemic, while 2021 has continued that trend.
Ridership Performance – Actual vs. Budget Four Months Ending April 30, 2021 (000’s omitted)
|Description||Actual||Budget||Variance||% Variance||2020 Actual||% Variance|
|Total Passengers (000’s)||1,931.2||2,185.8||(254.6)||(11.6)%||6,893.3||(72.0)%|
|Average Fare||$ 2.834||$ 2.681||$ 0.153||5.7 %||$ 1.584||78.9 %|
|Revenue Service Hours||206.1||204.7||1.4||0.7 %||214.2||(3.8)%|
|Rides/Rev Service Hour||9.4||10.7||(1.3)||(12.2)%||32.2||(70.9)%|
Administration will continue to monitor the operating budget performance, with the focus on COVID-19 as well as general operating impacts on a monthly basis.
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager