Lower than expected paid ridership and increased overtime at Guelph Transit accounts for the majority of a projected $372,000 negative variance in the 2018 city’s operating budget.
There is a projected positive variance of $572,000 in the city’s non-tax supported budget.
Guelph Transit’s projected negative variance is $262,000.
“Guelph Transit is projecting an unfavourable variance of $264,200. The variance is mainly attributed to lower than projected revenues from cash and ticket sales and increased overtime costs due to 12 vacancies based on the approved staffing compliment. Mitigation measures are in effect and the use of overtime should be reduced in the second half of the year,” says a staff budget update heading to city council.
The city is in the process of training 11 new transit drivers.
The staff update on the 2018 budget says there is a total negative operating variance in city departments of $472,000 and a positive variance in the various city boards of $100,000.
The actual results won’t be known until the new year.
Other negative variance factors are ice rentals, leases, grants and sponsorships, daily parking, sale of recyclable materials and interest and penalties on tax receivables.
Ice rentals took a hit when the junior B Guelph Hurricanes packed their bags and moved to Cambridge for the upcoming season.
