Staff Report #8
June 29, 2026
To All Commissioners
Re: Financial Update – Capital Budget Programs – May 31, 2026
Recommendation
That the report be RECEIVED for information.
Background
Summarized in the table below is the 2026 Capital Program Summary for the five-month period ending May 31, 2026.
Summary of 2026 Capital Budget Program Activity Five Months Ending May 31, 2026
| Description | Actual | Budget | Amount
Under Budget (Over Budget) |
Project Status | |
| Program | |||||
| Bus replacement (2026) | $ 3,773,631 | $ 17,774,000 | $ 14,000,369 | In progress | |
| Bus expansion (ICIP) | 10,377,486 | 11,033,000 | 655,514 | In progress | |
| Bus expansion | 943,408 | 1,003,000 | 59,592 | In progress | |
| Facility upgrades | 185,755 | 500,000 | 314,245 | In progress | |
| Fare processing equipment | 559,325 | 1,936,800 | 1,377,475 | In progress | |
| Information systems | 198,338 | 1,000,000 | 801,662 | In progress | |
| Shop & garage equipment | 47,692 | 240,000 | 192,308 | In progress | |
| Service fleet replacement | 52,085 | 155,000 | 102,915 | In progress | |
| Stop upgrades | – | 63,500 | 63,500 | In progress | |
| Bus stop amenities | – | 167,500 | 167,500 | Pending ICIP approval | |
| Fleet radio replacement | – | 625,000 | 625,000 | Project deferred | |
| Highbury facility rebuild | – | 11,670,000 | 11,670,000 | In progress (multi-year) | |
| Zero emission bus pilot | – | 25,960,000 | 25,960,000 | In progress (multi-year) | |
| Total | $ 16,137,720 | $ 72,127,800 | $ 55,990,080 | ||
| Funding | |||||
| Provincial Gas Tax | $ 279,663 | $ 3,571,600 | $ 3,291,937 | ||
| Capital Program Reserve | 298,115 | 1,458,500 | 1,160,385 | ||
| City of London | 7,950,131 | 38,758,000 | 30,799,869 | ||
| ICIP – Provincial | 3,458,817 | 6,984,900 | 3,526,083 | ||
| ICIP – Federal | 4,150,994 | 8,382,800 | 4,231,806 | ||
| Senior Government | – | 12,980,000 | 12,980,000 | ||
| Total | $ 16,137,720 | $ 72,127,800 | $ 55,990,080 | ||
The following programs are underway through the first five months of the year, with narrative focusing on the year-to-date progress.
Bus replacement and expansion (29 buses) – At the time of writing, all but two buses are on property with six outfitted for service and currently on the road. The remaining buses are expected to be in service prior to the September service change implementation.
Facility upgrades – The facility upgrade program is underway with costs incurred to date pertaining to office renovations, rotary lift installation, and a generator.
Fare processing equipment – The project to replace the OBV’s (on board validators) on the conventional fleet is underway and on schedule, with the costs included above pertaining to software design and development milestones.
Information systems & hardware – Expenditures incurred to date include additions to networking equipment and other hardware purchases.
Shop and garage equipment – Expenditures incurred to date relate to the ongoing monthly purchase of shop tools and miscellaneous equipment within Fleet & Facilities.
Service fleet replacement – Expenditures incurred to date are for the purchase of a new Inspector van which has since been outfitted for service.
Administration will continue to monitor actual to budget performance and report to the Commission monthly.
Recommended by:
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager