Staff Report #6
June 27, 2018
To All Commissioners
Re: Financial Update – Conventional Transit Services – Operating Budget – May 31, 2018
Recommendation
That the report be NOTED and FILED.
Background
Set out in the table below is the Statement of Operations for Conventional Transit Services for the five month period ending May 31, 2018. The statement sets out actual to budget performance for the period.
London Transit Commission
Statement of Operations – Conventional Transit Services
Five Months Ending May 31, 2018
(000’s omitted)
| Amount | Percent | ||||
| Better | Better | ||||
| Description | Actual | Budget | (Worse) | (Worse) | |
| Revenue | |||||
| Transportation | $ 13,809.0 | $ 13,731.7 | $ 77.3 | 0.6 % | |
| Operating | 618.4 | 575.2 | 43.2 | 7.5 % | |
| Transfers from reserves | 440.5 | 325.0 | 115.5 | 35.6 % | |
| Province – provincial gas tax | 3,254.0 | 3,254.0 | – | 0.0 % | |
| City of London | 9,904.1 | 9,904.1 | – | 0.0 % | |
| Total revenue | 28,026.1 | 27,790.0 | 236.1 | 0.8 % | |
| Expenditure | |||||
| Personnel cost | 19,354.1 | 19,346.3 | (7.8) | (0.0)% | |
| Direct bus maintenance | 2,504.6 | 2,525.8 | 21.2 | 0.8% | |
| Fuel | 3,032.9 | 2,922.1 | (110.8) | (3.8)% | |
| Facility costs | 1,413.6 | 1,469.6 | 56.0 | 3.8 % | |
| Insurance | 324.7 | 250.0 | (74.7) | (29.9)% | |
| Contribution to reserves | 576.0 | 521.2 | (54.8) | (10.5)% | |
| All other material expense | 767.0 | 755.0 | (12.0) | (1.6)% | |
| Total expenditure | 27,973.0 | 27,790.0 | (183.0) | (0.7)% | |
| Net favourable/(unfavourable) | $ 53.1 | $ – | $ 53.1 | 0.2 % | |
As indicated, the conventional transit service to-date has a net favourable actual to budget performance of $53,100 representing approximately 0.2% of the total budget to-date of $27.8 million.
The major performance issues relate to:
Revenue
- favourable transportation revenue of $77,300 due to higher than budgeted ridership ($162,300) offset by lower average fare ($79,500) (mix of riders different vs. budget);
- favourable operating revenue of $43,200 due to higher than budgeted interest income; and
- an increase in the transfers from reserves of $115,500 utilized to offset the unfavourable insurance expenditures noted below ($74,700) as well as personnel costs related to the return to work program ($40,900).
Expenditures
- net unfavourable personnel costs due to higher return to work costs;
- unfavourable fuel costs of $110,800 attributed to unfavourable fuel rates ($233,000) offset by favourable fuel consumption ($122,200);
- favourable facility costs of $56,000 due to favourable natural gas, hydro price and consumption variances;
- unfavourable insurance claim costs of $74,700; and
- an increase over budget in contributions to reserves of $54,800 due to increases in interest income (operating revenue).
Ridership
The table below sets out actual to budget ridership performance for the five months ending May 31, 2018 as well as comparison to the same period in the previous year.
| Description | Actual | Budget | Variance | % Variance | 2017 Actual | % Variance |
| Total Passengers (000’s) | 10,276.4 | 10,156.4 | 120.0 | 1.2 % | 10,040.9 | 2.3 % |
| Average Fare | $ 1.344 | $ 1.352 | $ (0.008) | (0.6)% | $ 1.339 | 0.4 % |
| Revenue Service Hours | 263.4 | 266.4 | (3.0) | (1.1)% | 256.6 | 2.6 % |
| Rides/Rev Service Hour | 39.0 | 38.1 | 0.9 | 2.3 % | 39.1 | (0.3)% |
Administration will continue to monitor the operating budget performance, including ridership, on a monthly basis.
Recommended by:
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager