Staff Report #7 Re: Financial Update – Specialized Transit Services – Operating Budget – August 31, 2019

Staff Report #7

September 25, 2019

To All Commissioners

Re: Financial Update – Specialized Transit Services – Operating Budget – August 31, 2019

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 eight month period ending August 31, 2019. 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, 2019

(000’s omitted)

Description Actual Budget Amount Better (Worse) Percent Better (Worse)
Revenue
Transportation $ 376.2 $ 389.8  $ (13.6)  (3.5)%
Province – provincial gas tax 2,098.1 2,098.1 0.0 %
City of London 3,503.7 3,503.7 0.0 %
Total revenue 5,978.0 5,991.6 (13.6)  (0.2)%
Expenditure
Personnel cost 683.6 671.6 (12.0)  (1.8)%
Contract service cost 5,145.4 5,141.8 (3.6) (0.1) %
All other material expense 202.8 178.2 (24.6) (13.8)%
Total expenditure 6,031.8 5,991.6 (40.2)  (0.7)%
Net favourable/(unfavourable) $ (53.8)  $ – $ (53.8)  (0.9)%

As indicated, the service has a net unfavourable operating budget performance to-date of 0.9% or $53,800 made up of the following:

Revenue

  • unfavourable transportation revenue of $13,600 due to lower than budgeted ridership and lower than budgeted average fare (mix of riders different vs. budget)

Expenditures

  • unfavourable labour costs of $12,000 relating to overtime
  • unfavourable other expenses due to additional system maintenance costs

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.

Description Actual Budget Variance % Variance 2018 Actual % Variance
Eligible passenger trips 197,571 204,200  (6,629)  (2.8)% 192,808 2.5 %
Attendant/companion trips 23,420 23,500 (80)  (0.2)% 23,410 0.0 %
Total Trips 220,991 227,700  (6,709) (2.6)% 216,218 2.2 %
Average fare  $ 1.702  $ 1.712  $ (0.009) (0.5)%  $ 1.708  (0.3)%
Service Hours 96,747 96,635 (112) 0.0 % 95,570 1.2 %
EPT per service hour 2.04 2.11  (0.07)  (2.8)% 2.02 1.2 %
Total trips per service hour 2.28 2.36  (0.07) (2.5)% 2.26 1.0 %
Total Registrants 10,196 9.332 9.3 %

The lower than budget eligible passenger trips is related to the trips per hour being less than budgeted, which is a reflection of a number of factors including:

  • distance of trips being taken (longer trips are more difficult to accommodate in a shared schedule)
  • periods of day and day of week which trips are taken/required (fewer trip requests in a period result in less rides per hour)
  • schedule efficiency overall

All of the aforementioned factors are monitored and schedules are adjusted accordingly in an effort to ensure that scheduled hours by time of day and day of week best match demand.

Administration will continue to monitor 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