Staff Report #6 – Financial Update – Specialized Transit Services – Operating Budget – May 31, 2021

Staff Report #6

June 30, 2021

To All Commissioners

Re: Financial Update – Specialized Transit Services – Operating Budget – May 31, 2021

Recommendation

That the report be NOTED and FILED.

Background

Set out in the table below is the Statement of Operations for Specialized Transit Services for the five-month period ending May 31, 2021. The statement sets out actual to budget performance for the period.

London Transit Commission Statement of Operations – Specialized Transit Services Five Months Ending May 31, 2021 (000’s omitted)

Description  Actual  Budget  Amount Better (Worse)  Percent Better (Worse)
Revenue
Transportation $ 111.7 103.2  $ 8.5  8.3 %
Province-provincial gas tax 710.4 710.4 0.0 %
City of London 3,484.7 3,484.7 0.0 %
Total revenue 4,306.8 4,298.3 8.5  0.2 %
Expenditure
Personnel cost 453.3 480.0 26.7  5.6 %
Contract service cost 3,107.3 3,133.9 26.6 0.8 %
All other material expense 73.8 63.9 (9.9) (15.5)%
Total expenditure 3,634.4 3,677.8 43.4  1.2 %
Net cost 672.4 620.5 51.9 1.4 %
Safe Restart program(1) (655.5) (620.5) (35.0) (1.0)%
Net favourable/(unfavourable) $ 16.9  $ – $ 16.9  0.5 %

Notes: (1) Actual Safe Restart allocation subject to final reconciliation and submission of claims to the Province

As indicated in the above table, the service has a net favourable operating budget performance to-date of 0.5% or $16,900. An explanation of the variances is set out below.

Net Operating Costs

  • favourable transportation revenue of $8,500 due to higher ridership than anticipated;
  • favourable personnel costs of $26,700 due to timing of vacancies and less than anticipated overtime; and
  • favourable contract service costs of $26,600 due to slightly less service hours utilized.

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.

Ridership

The table below sets out actual to budget ridership and other performance related measures as well as a comparison to the same period in the previous year.

Ridership and Other Statistics Actual vs. budget Five Months Ending May 31, 2021 (000’s omitted)

Description Actual Budget Variance % Variance 2020 Actual % Variance
Eligible passenger trips 52,779 45,800 6,979 15.2 % 74,354 (29.0)%
Attendant/companion trips 3,489 5,400 (1,911) (35.4)% 8,175 (57.3)%
Total Trips 56,268 51,200 5,068 9.9 % 82,529 (31.8)%
Average fare  $ 1.986 2.016  $ (0.030) (1.5)%  $ 1.886  5.3 %
Service Hours 50,389 50,817 428 0.8 % 58,383 (13.7)%
EPT per service hour 1.05 0.90 0.15  16.2 % 1.27 (17.8)%
Total trips per service hour 1.12 1.01 0.11 10.8 % 1.41 (21.0)%
Total Registrants 11,560 11,315 2.2 %

As noted above, total trips were slightly greater than anticipated but are expected to fluctuate from budget as the Province moves in and out of lockdown. The onset of the pandemic and its impacts in March 2020 of last year, coupled with the ongoing ridership fluctuations since that time complicate the ability to compare 2020 results to those experienced in 2021.

Administration will continue to monitor the operating budget performance reporting on same on a monthly basis including providing recommendations as may be appropriate.

Recommended by:

Mike Gregor, Director of Finance

Concurred in by:

Kelly S. Paleczny, General Manager