Staff Report #11
October 31, 2018
To All Commissioners
Re: Financial Update – Capital Budget Programs – September 30, 2018
Recommendation
That the report be NOTED and FILED.
Background
Summarized in the table below is the 2018 Capital Program Summary for the nine month period ending September 30, 2018.
Summary of 2018 Capital Budget Program Activity
Nine Months Ending September 30, 2018
| Description | Actual | Budget | Amount Under Budget (Over Budget) |
|
| Program | ||||
| Stop Upgrades | $ 91,829 | $ 110,000 | $ 18,171 | |
| Service Fleet | 33,971 | 40,000 | 6,029 | |
| Shop Equipment | 65,683 | 200,000 | 134,317 | |
| Software and Hardware | 134,767 | 600,000 | 465,233 | |
| Facility Upgrades | 161,324 | 300,000 | 138,676 | |
| Bus Replacement (8) | 2,244,300 | 4,560,800 | 2,316,500 | |
| Bus Expansion (4) | 202,305 | 2,378,400 | 2,176,095 | |
| Fleet Radio Replacement | – | 625,000 | 625,000 | |
| TMP 2030 – BRT Strategy | – | 1,500,000 | 1,500,000 | |
| Fare Processing Equipment | – | 1,495,000 | 1,495,000 | |
| Smart Card Program | 17,543 | 605,000 | 587,457 | |
| Total | $ 2,951,722 | $ 12,414,200 | $ 9,462,478 | |
| Funding | ||||
| Provincial Gas Tax | $ 139,348 | $ 5,502,200 | $ 5,362,852 | |
| Capital Program Reserve | 204,445 | 627,000 | 422,555 | |
| City of London | 2,607,929 | 4,785,000 | 2,177,071 | |
| Federal Gas Tax | – | 1,500,000 | 1,500,000 | |
| Total | $ 2,951,722 | $ 12,414,200 | $ 9,462,478 | |
The following programs are underway through the first nine months of the year, with narrative focusing on the YTD progress.
Stop Upgrades
The costs incurred to-date are attributable to the remaining expenditures from the 2017 shelter installs as well as cement pads required for 2018 service improvements. 10 shelters budgeted in 2018 have been ordered and scheduled for installation in late January due to manufacturing delays.
Service Fleet
The costs incurred to-date are attributable to the purchase of a new service van. The project is complete.
Shop Equipment
Expenditures incurred to-date relate to the ongoing monthly purchase of shop tools and equipment. This budget is utilized throughout the year as equipment and tools are required.
Software and Hardware
The costs incurred to-date are attributable to the replacement of the Specialized Scheduling System and other workstation and networking equipment replacements. Work on these projects is scheduled to continue for the remainder of the year.
Facility Upgrades
Expenditures incurred to-date relate to the purchase of high speed doors for the fuel service lanes, repairs to the maintenance inspection pit and also new office construction. The remaining projects scheduled for 2018, include the next phase of lighting replacement, reinforcement of columns in A and B barn, and grating to be replaced in B barn.
Bus Purchases (Bus Replacement & Bus Expansion)
The costs incurred to-date are attributable to the early purchase of ancillary equipment and inspection costs required for the 2018 bus expansion and replacement projects as well as four buses were received in mid-August. More buses have arrived in October with invoicing to occur in that period with the remainder expected prior to year end.
The remaining programs, including Fleet Radio Replacement, TMP 2030 – BRT Strategy and Fare Processing Equipment, are not likely to commence in 2018. Determination to carry forward to 2019 will occur during the budget recosting process in March.
Administration will continue to monitor actual to budget performance and report to the Commission on a monthly basis.
Recommended by:
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager