Staff Report #7
June 28, 2023
To All Commissioners
Re: Financial Update – Specialized Transit Services – Operating Budget – May 31, 2023
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, 2023. 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, 2023 (000’s omitted)
| Description | Actual | Budget | Amount Better (Worse) | Percent Better (Worse) | |
| Revenue | |||||
| Transportation | $ 190.4 | $ 215.1 | $ (24.7) | (11.5)% | |
| Province-provincial gas tax | 752.3 | 752.3 | – | 0.0 % | |
| City of London | 3,448.6 | 3,448.6 | – | 0.0 % | |
| Total revenue | 4,391.3 | 4,416.0 | (24.7) | (0.6)% | |
| Expenditure | |||||
| Personnel cost | 513.0 | 538.1 | 25.1 | 4.7 % | |
| Contract service cost | 3,474.9 | 3,805.3 | 330.4 | 8.7 % | |
| All other material expense | 73.0 | 72.6 | (0.4) | (0.5)% | |
| Total expenditure | 4,060.8 | 4,416.0 | 355.2 | 8.0 % | |
| Net favourable/(unfavourable) | $ 330.5 | $ – | $ 330.5 | 7.5 % | |
As indicated in the above table, the service has a net favourable operating budget performance to date of 7.5% or $330,500. An explanation of the variances is set out below.
Net Operating Costs
- unfavourable transportation revenue of $24,700 due to lower ridership than planned;
- favourable personnel costs of $25,100 due to timing of vacancies and less than anticipated overtime; and
- favourable contract service costs of $330,400 due to lower than budgeted service hours utilized.
Ridership
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 Five Months Ending May 31, 2023 (000’s omitted)
| Description | Actual | Budget | Variance | % Variance | 2022 Actual | % Variance | |
| Eligible passenger trips | 93,061 | 99,400 | (6,339) | (6.4)% | 80,779 | 15.2 % | |
| Attendant/companion trips | 6,407 | 11,400 | (4,993) | (43.8)% | 4,826 | 32.8 % | |
| Total Trips | 99,468 | 110,800 | (11,332) | (10.2)% | 85,605 | 16.2 % | |
| Average fare | $ 1.914 | $ 1.941 | $ (0.027) | (1.4) % | $ 1.951 | (1.9)% | |
| Service Hours | 50,508 | 55,318 | (4,811) | (8.7) % | 51,107 | (1.2)% | |
| EPT per service hour | 1.84 | 1.80 | 0.05 | 2.5 % | 1.58 | 16.6 % | |
| Total trips per service hour | 1.97 | 2.00 | (0.03) | (1.7)% | 1.68 | 17.6 % | |
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