Staff Report #8
October 25, 2023
To All Commissioners
Re: Financial Update – Conventional Transit Services – Operating Budget – September 30, 2023
That the report be NOTED and FILED.
Set out in the table below is the Statement of Operations for Conventional Transit Services for the nine-month period ending September 30, 2023. The statement sets out actual to budget performance for the period.
London Transit Commission Statement of Operations – Conventional Transit Services Nine Months Ending September 30, 2023 (000’s omitted)
|Description||Actual||Budget||Amount Better (Worse)||Percent Better (Worse)|
|Transportation||$ 24,731.7||$ 24,720.5||$ 11.2||0.0 %|
|Transfers from reserves||5,772.9||6,035.7||(262.8)||(4.4)%|
|Province-provincial gas tax||6,653.9||6,653.9||–||0.0 %|
|City of London||27,281.7||27,281.7||–||0.0 %|
|Total revenue||67,016.2||66,507.2||509.0||0.8 %|
|Personnel cost||43,138.8||43,402.5||263.7||0.6 %|
|Direct bus maintenance||6,277.5||5,607.2||(670.3)||(12.0)%|
|Facility costs||2,671.2||2,810.3||139.1||4.9 %|
|Contribution to reserves||1,345.7||714.6||(631.1)||(88.3)%|
|All other material expense||2,420.8||2,375.7||(45.1)||(1.9)%|
|Net favourable/(unfavourable)||$ 342.0||$ –||342.0||0.5 %|
As indicated in the above table, the conventional service has a net favourable operating budget performance to-date of 0.5% or $342,000. An explanation of the variances is set out below.
- favourable operating revenues of $760,600 due to the continued climb in interest rates, resulting in higher than budgeted interest income, noting this increase is offset below as unfavourable contributions to reserves; and
- unfavourable transfers from reserves as the required contribution to cover insurance claims is less than budgeted, noting this decrease is offset below as a favourable insurance cost.
- favourable personnel costs of $263,700 due primarily to the timing of filling vacant positions;
- unfavourable direct bus maintenance expenditures of $670,300 due mainly to the increasing cost pressures on parts as well as outsourced repairs required to maintain MTO inspections during labour shortfalls;
- favourable fuel costs of $600,500 due mainly to lower than budgeted diesel fuel prices; and
- unfavourable contributions to reserves of $631,100 due to the increase in interest income earned on reserves, noted above in operating revenue.
The table below sets out actual to budget ridership performance as well as a comparison to the same period in the previous year.
Ridership Performance – Actual vs. Budget Nine Months Ending September 30, 2023 (000’s omitted)
|Description||Actual||Budget||Variance||% Variance||2022 Actual||% Variance|
|Total Passengers (000’s)||13,181.9||12,781.4||400.5||3.1 %||9,006.0||46.4 %|
|Average Fare||$ 1.876||$ 1.934||$ (0.058)||(3.0)%||$ 2.265||(17.2)%|
|Revenue Service Hours||504.8||507.6||2.8||0.6 %||456.6||10.5 %|
|Rides/Rev Service Hour||26.1||25.2||0.9||3.7 %||19.7||32.4 %|
Administration will continue to monitor the operating budget performance, including ridership, on a monthly basis.
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager