Staff Report #7
July 29, 2020
To All Commissioners
Re: Financial Update – Specialized Transit Services – Operating Budget – June 30, 2020
That the report be NOTED and FILED.
Set out in the table below is the Statement of Operations for Specialized Transit Services for the six-month period ending June 30, 2020. The statement sets out actual to budget performance for the period.
London Transit Commission
Statement of Operations – Specialized Transit Services
Six Months Ending June 30, 2020
|Description||Actual||Budget||Amount Better (Worse)||Explanation||Percent Better (Worse)|
|General Operating||COVID Impact|
|Transportation||$ 156.7||$ 365.5||$ (208.8)||$ –||$ (208.8)||(57.1)%|
|Province-provincial gas tax||856.3||865.3||–||–||–||0.0 %|
|City of London||3,608.7||3,608.7||–||–||–||0.0 %|
|Contract service cost||3,732.5||4,179.8||447.3||45.3||401.9||10.7%|
|All other material expense||77.2||87.3||10.1||10.1||–||11.6%|
|Net favourable/(unfavourable)||$ 298.8||$ –||$ 298.8||$ 66.3||$ 232.5||6.2%|
As indicated, the service has a net favourable operating budget performance to-date of 6.2% or $298,800. Of this favourable variance, $232,500 is attributable to the impacts of COVID-19 and $66,300 is due to favourable general operating expenditures. An explanation of the variances is set out below.
- unfavourable transportation revenue of $208,800 due to the implementation of free fares, corresponding with rear door boarding on conventional service. Prior to the impact of COVID-19, transportation revenue had been performing to budget through mid-March.
- favourable labour costs of $50,300 relating to a reduction in labour hours compared to budget due mainly to the COVID-19 situation; and
- favourable contract service costs attributable to the reduced demand on service and thus fewer service hours due to COVID-19.
The table below sets out actual to budget ridership and other performance related measures as well as a comparison to the same period in the previous year.
Ridership and Other Statistics
Actual vs. budget
|Description||Actual||Budget||Variance||% Variance||2019 Actual||% Variance|
|Eligible passenger trips||80,441||162,600||(82,159)||(50.5)%||149,077||(46.0)%|
|Average fare||$ 1.759||2.016||$ (0.257)||(12.8)%||$ 1.702||3.3 %|
|Service Hours||68,861||77,231||8,370||10.8 %||72,632||5.2 %|
|EPT per service hour||1.17||2.11||(0.94)||(44.5)%||2.05||(43.1)%|
|Total trips per service hour||1.29||2.35||(1.05)||(44.9)%||2.30||(43.6)%|
|Total Registrants||11,005||10,691||2.9 %|
As noted above, the lower than budget eligible passenger trips is directly related to the COVID-19 outbreak as trips were on budget prior to that point.
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