Staff Report #7 – Financial Update – Specialized Transit Services – Operating Budget – July 31, 2022

Staff Report #7

August 31, 2022

To All Commissioners

Re: Financial Update – Specialized Transit Services – Operating Budget – July 31, 2022

Recommendation

That the report be NOTED and FILED.

Background

Set out in the table below is the Statement of Operations for Specialized Transit Services for the seven-month period ending July 31, 2022. The statement sets out actual to budget performance for the period.

London Transit Commission Statement of Operations – Specialized Transit Services Seven Months Ending July 31, 2022 (000’s omitted)

Description  Actual  Budget Amount Better (Worse)  Percent Better (Worse)
Revenue
Transportation $ 244.8 $ 282.1 $ (37.3)  (13.2)%
Province-provincial gas tax 1.031.6 1,031.6 0.0 %
City of London 5,359.7 5,359.7 0.0 %
Total revenue 6,636.1 6,673.4 (37.3)  (0.6)%
Expenditure
Personnel cost 648.3 698.7 50.4  7.2 %
Contract service cost 4,589.3 5,102.6 513.3 10.1 %
All other material expense 200.9 201.6 0.7 0.3%
Total expenditure 5,438.6 6,002.9 564.3  9.4%
Net cost 1,197.6 670.5 527.1 8.8%
Safe Restart program(1) (1,146.5) (670.5) (476.0) (7.9)%
Net favourable/(unfavourable) $ 51.0  $ – $ 51.0  0.9 %

Notes: (1) Actual Safe Restart allocation subject to final reconciliation and submission of claims to the Province

As indicated in the above table, the service has a net favourable operating budget performance to date of 0.9% or $51,000. An explanation of the variances is set out below.

Net Operating Costs

  • unfavourable transportation revenue of $37,300 due to lower ridership than anticipated;
  • favourable personnel costs of $50,400 due to timing of vacancies and less than anticipated overtime; and
  • favourable contract service costs of $513,300 due to lower than budgeted service hours utilized.

COVID-19 related variances will be monitored in connection with the Safe Restart funding and overall Safe Restart Reserve Fund and separate reports will be provided detailing actual submissions to the Province.

Ridership

The table below sets out actual to budget ridership and other performance related measures as well as a comparison to the same period in the previous year.

Ridership and Other Statistics Actual vs. Budget Seven Months Ending July 31, 2022 (000’s omitted)

Description Actual Budget Variance % Variance 2021 Actual % Variance
Eligible passenger trips 118,353 124,800 (6,447) (5.2)% 78,368 51.0 %
Attendant/companion trips 7,559 14,400 (6,841) (47.5)% 5,401 40.0 %
Total Trips 125,912 139,200 (13,288) (9.5)% 83,769 50.3 %
Average fare  $ 1.944 $ 2.027  $ (0.082) (4.1)%  $ 1.996  (2.6)%
Service Hours 71,767 81,124 9,357 11.5 % 71,110 0.9 %
EPT per service hour 1.65 1.54 0.11  7.2 % 1.10 49.6 %
Total trips per service hour 1.75 1.72 0.04 2.2 % 1.18 48.9 %

As was the case in 2021, the onset of the pandemic and its impacts in March 2020, coupled with the ongoing ridership fluctuations since that time complicate the ability to compare 2021 results to those experienced in 2022.

Administration will continue to monitor the operating budget performance reporting on same on a monthly basis including providing recommendations as may be appropriate.

Recommended by:

Mike Gregor, Director of Finance

Concurred in by:

Kelly S. Paleczny, General Manager