Transit Services Department

2016 Draft Budget

Transit Commission
November 12, 2015

Transit Funding at a Glance

Transit operating costs are funded from:
1.

Customers fares;

2.

Property taxes; and,

3.

Other revenue.

Capital requirements (expansion and renewal) are

funded from property taxes, development charges, and
senior levels of government.

How OC Transpo Compares

Key Budget Elements

Alignment with Transit Affordability Plan Capital contributions,
revenue/cost ratio targets, etc.

2.5% increase to Transit levy as identified in the Transit Affordability

Plan (Proposed 2016 Budget Timeline and 2016-2018 Budget
Directions report to FEDCO on October 6, 2015)
Pro-rated share of the estimated 1.3% increase in taxes resulting
from growth assessment (Proposed 2016 Budget Timeline and 20162018 Budget Directions report to FEDCO on October 6, 2015)
Ridership: 97 million customer-trips on conventional service and
800,000 on Para Transpo
Fare revenue: $189 million from conventional service and $2 million
from Para Transpo service
Fare revenue increase of 2.5%
4

Transit Funding in 2016

Transit operating budget $490.3 million in 2016
Transit operating costs $389.9 M
Contributions to conventional capital reserve $62.2 M
Contributions to pension deficit $0.4 M

Debt Charges $37.8 M

Transit operating budget of $490.3 million funded from:

Customers fares - $190.9 million in 2016
Property taxes - $261.3 million in 2016
Other revenue - $38.1 million in 2016
(includes Provincial gas tax revenue)

2015 Base Pressures $7.8 M

As per 2015 Operating and Capital Budget Q2 Transit Commission
Status Report, there are a number of base funding issues that will
need to be addressed in the 2016 budget. These include:
Increased maintenance costs resulting from the expiration of
warranties on a large portion of the articulated bus fleet;

Increased insurance claim provision based on actual experience;

Revision of the fare revenue lines to bring them into line with
current ridership expectations;

Annualization of 2015 service increase;

Annualization of 2015 fare increase; and,

Adjustment to pension plan funding.

Maintain Services $9.8 M

2016 cost of living, increments and benefit adjustments

Increase in expenditures for Fleet Maintenance due to inflation

Hedging strategy resulted in lower diesel fuel price per litre
$1.01 in 2015 to $0.99 in 2016
Increase in facility expenditures related to inflation on utility and
property lease costs

Increase in contribution to reserves and debt charges

Increase in Trillium Line maintenance contract costs

Efficiencies / Savings (4.6 M)

1. Park and Ride lots maintenance funded

(0.9) M

from parking reserve

2. Gapping and position realignment

(2.4) M

3. Discretionary spending reduction

(0.4) M

4. Fleet Maintenance efficiency target

(0.5) M

5. Low ridership first/last trips

(0.5) M

Revenues / User Fees

Per the Affordability Model, fares and taxation revenues are to
increase annually to provide the necessary funds for both
operating and capital purposes
The level of fare revenues from annual increases must be
sufficient to move towards Councils revenue / cost ratio target
of 55%
Fares need to keep pace with costs
Revenue / cost ratio cannot erode as it affects affordability

Additional User Fees & Revenues 3.9 M

Transit Fare Increase 2.5%

2.2 M

New Revenues

1.5 M

Bluesfest

0.20 M

New Condos

0.83 M

CTC

0.43 M

Advertising

0.3 M

10

Summary of Draft Operating Budget

Budget Pressure Categories
2015 Base Adjustment

7.8 M

Maintain

9.8 M

Growth

0 M

Revenue

(4.0) M

Savings / Efficiencies

(4.6) M

Total Budget Target (achieved)

$ 9.0 M

Revenue/cost ratio is budgeted to be 51.6%

11

Low Ridership First/Last Trips

Early morning first trips with very low ridership
Line

Route

From/to

92

Terry Fox to Stittsville

93

LeBreton to Richcraft Complex

94

Fallowfield to Riverview

98

Greenboro to Hawthorne

111

Billings Bridge to Baseline

114

Hurdman to Elmvale

116

Merivale/Slack to Greenboro

116

Greenboro to Colonnade

120

Place d'Orlans to Portobello

10

121

Blair to Hurdman

11

122

Place d'Orlans to Trim

12

131

via Convent Glen (ccw)

13

135

Place d'Orlans to Lakeridge

14

143

Greenboro to Conroy

15

149

Hurdman to Elmvale

16

152

Bayshore to Carling Place

17

170

Barrhaven Centre to Fallowfield

18

173

Barrhaven Centre to Fallowfield

19

173

Fallowfield to Barrhaven Centre

20

176

Tunney's Pasture to Slack

21

189

Hunt Club to Riverview

Day of the week

Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri

Trip time

Customers affected

New first trip

time

06:47

07:49

05:03

05:32

04:57

05:27

05:27

06:01

04:45

05:30

04:11

04:26

05:50

07:49

04:53

05:23

06:15

06:45

05:15

05:52

05:23

06:15

04:03

10

04:46

06:00

06:30

06:40

08:43

07:38

08:10

06:09

06:39

04:57

05:37

05:47

06:17

05:24

05:53

04:02

04:49

05:35

06:05

12

Low Ridership First/Last Trips

Late evening last trips with very low ridership (1/2)
Line

Route

22

16

23

16

24

94

25

98

26

99

27

112

28

120

29

122

30

122

31

128

32

128

33

130

34

130

35

131

36

131

37

132

38

134

39

135

40

135

41

137

From/to

Day of the week

Mon-Fri
Mon-Fri
Tunney's to Britannia
Mon-Fri
Riverview to Fallowfield
Mon-Fri
Hawthorne to Greenboro
Mon-Fri
Barrhaven Centre to Greenboro
Mon-Fri
Elmvale to Billings Bridge
Mon-Fri
Portobello to Place d'Orlans
Mon-Fri
Millennium to Place d'Orlans
Mon-Fri
Place d'Orlans to Trim
Mon-Fri
Blair to Tauvette
Mon-Fri
Tauvette to Blair
Mon-Fri
Blair to Innes
Mon-Fri
Innes to Blair
Mon-Fri
via Convent Glen (ccw)
Mon-Fri
via Chapel Hill (cw)
Mon-Fri
Innes to Place d'Orlans
Mon-Fri
Renaud to Place d'Orlans
Mon-Fri
Lakeridge to Place d'Orlans
Mon-Fri
Place d'Orlans to Lakeridge
Place d'Orlans to Place d'Orleans Mon-Fri
Britannia to Tunney's

Trip time

Customers affected

New last trip

time

23:07

22:37

23:55

23:19

00:51

00:21

00:00

23:15

23:33

22:33

00:06

23:33

23:05

20:43

22:48

22:18

00:08

23:38

23:50

23:10

00:10

23:30

00:25

23:55

00:13

23:43

00:10

23:40

23:50

23:20

20:00

14:36

22:12

21:42

23:29

22:56

00:33

00:03

22:40

20:05

13

Low Ridership First/Last Trips

Late evening last trips with very low ridership (2/2)
Line

Route

From/to

42

143

43

144

44

147

45

150

46

150

47

151

48

151

49

152

50

170

51

170

52

172

53

172

54

175

55

176

Barrhaven Ctr to Tunney's

Pasture

56

177

Cambrian to Barrhaven Centre

Day of the week

Trip time

Customers affected

New last trip

time

21:56

20:56

00:06

23:30

22:15

21:15

21:06

20:36

22:32

21:02

21:21

20:51

22:25

21:15

23:55

23:05

23:44

23:14

23:50

23:11

23:57

23:27

00:09

23:39

22:55

20:19

Mon-Fri

00:05

23:35

Mon-Fri

23:31

22:32

Mon-Fri
Mon-Fri
Leitrim to Greenboro
Greenboro to Uplands and return Mon-Fri
Lincoln Fields to Tunney's Pasture Mon-Fri
Tunney's Pasture to Lincoln Fields Mon-Fri
Mon-Fri
Baseline to Tunney's Pasture
Mon-Fri
Tunney's Pasture to Baseline
Mon-Fri
Carling Place to Bayshore
Mon-Fri
Barrhaven Centre to Fallowfield
Mon-Fri
Fallowfield to Barrhaven Centre
Mon-Fri
Bayshore to Lincoln Fields
Mon-Fri
Lincoln Fields to Bayshore
Mon-Fri
Golflinks to Barrhaven Centre
Conroy to Greenboro

14

Low Ridership First/Last Trips

Other last trips with very low ridership
Line

Route

From/to

57

136

Lakeridge to Place d'Orlans

58

173

Barrhaven Centre to Fallowfield

59

173

Bayshore to Barrhaven Centre

60

182

Carling Place to Lincoln Fields

61

189

Riverview to Greenboro

62

189

Hunt Club to Riverview

63

193

Blair to Place d'Orlans

Day of the week

Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri
Mon-Fri

Trip time

Customers affected

New last trip

time

18:45

18:15

19:17

18:48

18:25

17:56

19:37

19:07

18:42

18:32

08:36

07:55

17:05

16:30

These trips with very low ridership would be removed in

April 2016
The last day of operation would be Friday, April 22

15

Transit Capital Highlights 2016

Bus refurbishment

$9.3 M

Vehicle modification and replacement

$2.3 M

Renewal of operational assets

$4.0 M

Transitway and other infrastructure

$1.8 M

Station, facility, bus stop improvements, and shelters $1.9 M

16

Challenges / Risks
Changes in Ottawa Economy
Employment levels
Downtown building occupancies
Decentralization of major employers from the core
Shifts in travel modes
Low gasoline prices encourages car use

17

Future Fares / Ridership

Detailed assessment of ridership levels is underway

Fare pricing / elasticity is being assessed

Detailed report on this work along with fare structure needed

for conversion to multi-modal and the opening of the
Confederation Line will be brought to Transit Commission in
Q1 of 2016

Will include assessment of the feasibility of low income pass

18

Whats Not Included

The budget provides no capacity for any new service

No increases in management positions or other FTEs

19

Questions?

20