Staff Report #5
November 27, 2019
To All Commissioners
Re: Financial Update – Conventional Transit Services – Operating Budget – October 31, 2019
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, 2019. 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, 2019
|Description||Actual||Budget||Amount Better (Worse)||Percent Better (Worse)|
|Transportation||$ 27,706.8||$ 27,348.9||$ 357.9||1.3 %|
|Transfers from reserves||941.3||650.0||291.3||44.8 %|
|Province – provincial gas tax||7,601.7||7,601.7||–||0.0 %|
|City of London||23,998.1||23,998.1||–||0.0 %|
|Total revenue||61,533.8||60,781.4||752.4||1.2 %|
|Personnel cost||41,420.3||41,643.6||223.3||0.5 %|
|Direct bus maintenance||5,631.0||4,992.6||(638.4)||(12.8)%|
|Facility costs||2,428.1||2,564.4||136.3||5.3 %|
|Contribution to reserves||531.4||445.8||(85.6)||(19.2)%|
|All other material expense||2,227.9||2,160.5||(67.4)||(3.1)%|
|Total expenditure||60,076.5||60,781.4||704.9||1.2 %|
|Net favourable/(unfavourable)||$ 1,457.4||$ –||$ 1,457.4||2.4 %|
As indicated, the conventional transit service to-date has a net favourable actual to budget performance of $1,457,400 representing approximately 2.4% of the total budget to-date of $60.8 million.
The major performance issues relate to:
- net favourable transportation revenue of $357,900 due to higher than budgeted ridership ($366,400) and a prior year adjustment relating to the tuition pass program ($132,400) offset by lower than budgeted average fare ($140,900) (mix of riders different vs. budget);
- favourable operating revenue due to higher than budgeted interest on operating and reserve fund accounts; and
- a net increase in funding from reserves of $291,300 required to offset the higher than budget return-to-work program ($229,100) and insurance claims ($62,200).
- favourable personnel costs due to fewer revenue service hours utilized and timing of replacing vacant positions, offset by an increase in costs associated with the return-to-work program;
- unfavourable direct bus maintenance and servicing due to an increase in the number of replacement engines installed as well as major repairs to bus involved in an uninsured collision;
- favourable fuel costs of $1,381,300 attributed to favourable fuel rates ($1,011,400) and favourable fuel consumption ($369,900); and
- unfavourable insurance costs of $244,700 attributable to the 30% rate increase for bus insurance at the July 1st renewal date ($182,500) as well as liability claims funded by reserves.
The table below sets out actual to budget ridership performance for the ten months ending October 31, 2019 as well as comparison to the same period in the previous year.
|Description||Actual||Budget||Variance||% Variance||2018 Actual||% Variance|
|Total Passengers (000’s)||19,827.5||19,564.8||262.7||1.3%||19,220.9||3.2 %|
|Average Fare||$ 1.388||$ 1.395||$ (0.007)||(0.5)%||$ 1.378||0.7 %|
|Revenue Service Hours||538.1||546.7||(8.7)||(1.6)%||525.1||2.5 %|
|Rides/Rev Service Hour||36.8||35.8||1.1||3.0 %||36.6||0.7 %|
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