Staff Report #6
September 27, 2023
To All Commissioners
Re: Financial Update – Conventional Transit Services – Operating Budget – August 31, 2023
That the report be NOTED and FILED.
Set out in the table below is the Statement of Operations for Conventional Transit Services for the eight-month period ending August 31, 2023. The statement sets out actual to budget performance for the period.
London Transit Commission Statement of Operations – Conventional Transit Services Eight Months Ending August 31, 2023 (000’s omitted)
|Description||Actual||Budget||Amount Better (Worse)||Percent Better (Worse)|
|Transportation||$ 21,377.9||$ 21,375.5||$ 2.4||0.0 %|
|Transfers from reserves||5,214.4||5,365.2||(150.8)||(2.8)%|
|Province-provincial gas tax||5,914.5||5,914.5||–||0.0 %|
|City of London||25,360.2||25,360.2||–||0.0 %|
|Total revenue||60,169.0||59,664.1||504.9||0.8 %|
|Personnel cost||38,329.6||38,545.6||216.0||0.6 %|
|Direct bus maintenance||5,621.8||5,008.1||(613.7)||(12.3)%|
|Facility costs||2,585.8||2,672.1||86.3||3.2 %|
|Contribution to reserves||1,176.6||649.7||(526.9)||(81.1)%|
|All other material expense||2,266.2||2,208.9||(57.3)||(2.6)%|
|Net favourable/(unfavourable)||$ 302.2||$ –||302.2||0.5 %|
As indicated in the above table, the conventional service has a net favourable operating budget performance to-date of 0.5% or $302,200. An explanation of the variances is set out below.
- favourable operating revenues of $653,300 due to the continued climb in interest rates, resulting in higher than budgeted interest income, noting this increase is offset below as unfavourable contributions to reserves; and
- unfavourable transfers from reserves as the required contribution to cover insurance claims is less than budgeted, noting this decrease is offset below as a favourable insurance cost.
- favourable personnel costs of $216,000 due primarily to the timing of filling vacant positions;
- unfavourable direct bus maintenance expenditures due mainly to the increasing cost pressures on parts as well as outsourced repairs required to maintain MTO inspections during labour shortfalls;
- favourable fuel costs of $628,800 due mainly to lower than budgeted diesel fuel prices; and
- unfavourable contributions to reserves of $526,900 due to the increase in interest income earned on reserves, noted above in operating revenue.
The table below sets out actual to budget ridership performance as well as a comparison to the same period in the previous year.
Ridership Performance – Actual vs. Budget Eight Months Ending August 31, 2023 (000’s omitted)
|Description||Actual||Budget||Variance||% Variance||2022 Actual||% Variance|
|Total Passengers (000’s)||11,306.2||11,087.4||218.8||2.0 %||7,399.5||52.8 %|
|Average Fare||$ 1.891||$ 1.928||$ (0.037)||(1.9)%||$ 2.326||(18.7)%|
|Revenue Service Hours||446.4||448.3||(1.9)||(0.4)%||404.2||10.4 %|
|Rides/Rev Service Hour||25.3||24.7||0.6||2.4 %||18.3||38.3 %|
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