Staff Report #9
May 31, 2023
To All Commissioners
Re: Financial Update – Conventional Transit Services – Operating Budget – April 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 four-month period ending April 30, 2023. The statement sets out actual to budget performance for the period.
London Transit Commission Statement of Operations – Conventional Transit Services Four Months Ending April 30, 2023 (000’s omitted)
|Description||Actual||Budget||Amount Better (Worse)||Percent Better (Worse)|
|Transportation||$ 11,988.1||$ 12,053.0||$ (64.9)||(0.5)%|
|Transfers from reserves||2,625.1||2,683.2||(58.1)||(2.2)%|
|Province-provincial gas tax||2,956.9||2,956.9||–||0.0 %|
|City of London||8,999.6||8,999.6||–||0.0 %|
|Personnel cost||18,059.4||18,235.1||175.7||1.0 %|
|Direct bus maintenance||2,660.1||2,620.4||(39.7)||(1.5)%|
|Facility costs||1,499.7||1,570.3||70.6||4.5 %|
|Contribution to reserves||535.2||365.7||(169.6)||(46.4)%|
|All other material expense||1,063.7||1,056.3||(7.4)||(0.7)%|
|Total expenditure||27,344.4||27,605.7||261.3||0.9 %|
|Net favourable/(unfavourable)||$ 307.8||$ –||307.8||1.1 %|
As indicated in the above table, the conventional service has a net favourable operating budget performance to-date of 1.1% or $307,800. An explanation of the variances is set out below.
- unfavourable transportation revenue of $64,900 due to slightly lower than budgeted ridership, noting the 2023 budget was updated to reflect the post-COVID trends that had been emerging since last September; and
- favourable operating revenues of $169,600 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.
- favourable personnel costs of $175,700 due primarily to the timing of filling vacant positions;
- favourable fuel costs of $173,600 due mainly to slightly lower than budgeted diesel fuel prices; and
- unfavourable contributions to reserves of $169,600 due to the increase in interest income earned on reserves, noted above in operating revenue.
The table below sets out actual to budget ridership performance as well as a comparison to the same period in the previous year.
Ridership Performance – Actual vs. Budget Four Months Ending April 30, 2023 (000’s omitted)
|Description||Actual||Budget||Variance||% Variance||2022 Actual||% Variance|
|Total Passengers (000’s)||6,152.7||6,272.8||(120.1)||(1.9)%||3,688.9||66.8 %|
|Average Fare||$ 1.933||$ 1.921||$ 0.011||0.6 %||$ 2.411||(19.8)%|
|Revenue Service Hours||222.5||223.3||(0.7)||(0.3)%||207.0||7.5 %|
|Rides/Rev Service Hour||27.6||28.1||(0.4)||(1.6)%||17.8||72.9 %|
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