Staff Report #16
August 28, 2024
To All Commissioners
Re: Financial Update – Capital Budget Programs – July 31, 2024
Recommendation
That the report be NOTED and FILED.
Background
Summarized in the table below is the 2024 Capital Program Summary for the seven-month period ending July 31, 2024.
Summary of 2024 Capital Budget Program Activity Seven Months Ending July 31, 2024
| Description | Actual | Budget | Amount Under Budget (Over Budget) | |
| Program | ||||
| Bus replacement (2023) | $ 12,454,203 | $ 12,177,800 | $ (276,403) | |
| Bus replacement (2024) | 174,929 | 14,918,300 | 14,743,371 | |
| Bus expansion | 8,992,537 | 8,495,000 | (497,513) | |
| Facility upgrades | 204,287 | 801,800 | 597,513 | |
| Fare processing equipment | – | 2,495,000 | 2,495,000 | |
| Information systems & hardware | 305,516 | 1,188,000 | 862,484 | |
| Shop & garage equipment | 119,186 | 240,000 | 120,814 | |
| Service fleet replacement | 144,524 | 155,000 | 10,476 | |
| Stop upgrades | – | 100,000 | 100,000 | |
| Bus stop amenities | – | 224,600 | 224,600 | |
| Fleet radio replacement | – | 625,000 | 625,000 | |
| Smart card program | 291,260 | 408,000 | 116,740 | |
| Highbury facility rebuild | – | 2,500,000 | 2,500,000 | |
| Zero emission bus pilot | – | 25,960,000 | 25,960,000 | |
| Total | $ 22,686,442 | $ 70,288,500 | $ 47,602,058 | |
| Funding | ||||
| Provincial Gas Tax | $ 5,830,961 | $ 7,731,300 | $ 1,900,339 | |
| Capital Program Reserve | 569,227 | 1,683,000 | 1,113,773 | |
| City of London | 2,962,261 | 28,937,700 | 25,975,439 | |
| City – Federal Gas Tax | 6,732,500 | 10,732,500 | 4,000,000 | |
| ICIP – Provincial | 2,994,478 | 3,736,200 | 741,722 | |
| ICIP – Federal | 3,597,015 | 4,487,800 | 890,785 | |
| Senior Government | – | 12,980,000 | 12,980,000 | |
| Total | $ 22,686,442 | $ 70,288,500 | $ 47,602,058 | |
The following programs are underway through the first seven months of the year, with narrative focusing on the year-to-date progress.
Bus replacement (2023) – All of the buses have arrived and are now in service. The unfavourable variance is attributable to a slightly higher bus cost compared to budget.
Bus replacement (2024) – Costs incurred to date relate to the purchase of ancillary equipment in anticipation of the arrival of the 2024 replacement buses, expected in the first quarter of 2025.
Bus expansion – All ten expansion buses have arrived. The unfavourable variance is attributable to a slightly higher net bus cost compared to budget as well as higher than anticipated ancillary equipment (radios, cameras and air filtration system).
Facility upgrades – The facility upgrade program is well underway with costs incurred to date pertaining to camera installations at both facilities, stairs to the body shop roof, door replacements at Wonderland, a large ceiling fan at Wonderland and tent panel replacements at Highbury. The new bus wash for Wonderland approved in May is scheduled for installation in the fourth quarter.
Information systems & hardware – Expenditures incurred to date for the purchase of workstations, networking equipment as well as the Transit Master system upgrade.
Shop and garage equipment – Expenditures incurred to date relate to the ongoing monthly purchase of shop tools and miscellaneous equipment (i.e., parts washer).
Service fleet replacement – Expenditures incurred to date relate to the purchase of a new Inspector van, along with a mobile mechanic’s van. Both units are now in service.
Smart card program – Expenditures incurred to date relate to the handheld project that is currently in progress for the Specialized Service.
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