Staff Report #7
September 27, 2023
To All Commissioners
Re: Financial Update – Specialized 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 Specialized 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 – Specialized Transit Services Eight Months Ending August 31, 2023 (000’s omitted)
|Description||Actual||Budget||Amount Better (Worse)||Percent Better (Worse)|
|Transportation||$ 315.2||$ 371.2||$ (56.0)||(15.1)%|
|Province-provincial gas tax||1,203.8||1,203.8||–||0.0 %|
|City of London||6,045.4||6,045.4||–||0.0 %|
|Personnel cost||855.5||884.0||28.5||3.2 %|
|Contract service cost||5,831.4||6,623.8||792.4||12.0 %|
|All other material expense||103.7||112.6||8.9||7.9 %|
|Total expenditure||6,790.7||7,620.4||829.7||10.9 %|
|Net favourable/(unfavourable)||$ 773.7||$ –||$ 773.7||10.2 %|
As indicated in the above table, the service has a net favourable operating budget performance to date of 10.2% or $773,700. An explanation of the variances is set out below.
Net Operating Costs
- unfavourable transportation revenue of $56,000 due to lower ridership than planned;
- favourable personnel costs of $28,500 due to timing of vacancies and less than anticipated overtime; and
- favourable contract service costs of $792,400 due to lower than budgeted service hours utilized.
The following table sets out actual to budget ridership and other performance related measures as well as a comparison to the same period in the previous year.
Ridership and Other Statistics Actual vs. Budget Eight Months Ending August 31, 2023 (000’s omitted)
|Description||Actual||Budget||Variance||% Variance||2022 Actual||% Variance|
|Eligible passenger trips||156,726||171,800||(15,074)||(8.8)%||137,171||14.3 %|
|Attendant/companion trips||11,100||19,600||(8,500)||(43.4)%||8,973||23.7 %|
|Total Trips||167,826||191,400||(23,574)||(12.3)%||146,144||14.8 %|
|Average fare||$ 1.878||$ 1.939||$ (0.061)||(3.1)%||$ 1.939||(3.1)%|
|Service Hours||84,370||95,786||(11,417)||(11.9)%||81,778||3.2 %|
|EPT per service hour||1.86||1.79||0.06||3.6 %||1.68||10.7 %|
|Total trips per service hour||1.99||2.00||(0.01)||(0.5)%||1.79||11.3 %|
Administration will continue to monitor the operating budget performance reporting on same on a monthly basis including providing recommendations as may be appropriate.
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager