VARIANCE DESCRIPTION

The total departmental year-end variance is projected to be approximately: $1,257,000 Surplus

Transit Windsor is projecting a COVID-related deficit of ($5,816,000) and a non-COVID surplus of $1,257,000. Due to COVID government funding, the COVID-related deficit will be funded in full and therefore Transit is expecting to end the year with a surplus of $1,257,000. Transit was granted $6,523,962 in government funding to assist with mitigating COVID-19 deficits. This funding is eligible to cover costs from April 1, 2020 to March 31, 2021. Any funding not used during 2020 will be eligible to assist with covering COVID-19 negative variances until March 31, 2021.

Transit Revenue: ($9,422,000)

During 2020, Transit Windsor suspended Transit service for the entire month of April and then after, provided service free of any fares in order to allow for rear door access to mitigate the risk of spreading the Corona virus. This rear door boarding policy became a national trend in order to protect employees with limited contact with transit riders. Transit Windsor’s intention is to start collecting fares near the end of October, however with ridership still at an all time low, the fares collected will be substantially reduced from expected levels. The lack of fares has lead to a significant loss of revenue for Transit leading to a projected year end deficit of ($9,422,000) in the Transit Revenue account.

Fees and Service Charges Expense: ($167,000) 

Due to covid19 and in order to reduce the risk of spreading the virus, Transit Windsor suspended transit service during the month of April. In order to provide riders who had purchased a fare over this suspended service period with a means for recuperating part of their pass expense, transit offered a rebate program for those pass holders who had purchased during a specific period of time. This rebate program provided over $300,000 in rebates to eligible pass holders. This account also was impacted by tunnel toll charges which were not paid while the Detroit International Border was closed. The net year end impact for this account is projected to be a deficit of ($167,000).

Commissions: ($40,000)

During 2020, Greyhound shut down service in order to mitigate travel and the spread of the Coronavirus. With this shutdown, no tickets were sold for Greyhound and therefore no commissions have been earned during this time. Transit is anticipating that Greyhound will remain shut down for the remainder of the year and is projecting a ($40,000) deficit for these commissions not earned.

Advertising Revenue: ($31,000)

Due to suspended service, as well as third party companies requesting fees to be waived in order to manage business costs, Transit Windsor is projecting a ($31,000) deficit in the advertising revenue account. This revenue is made up of both bus and shelter advertisements.

Vehicle Maintenance and Parts: ($31,000)

Transit Windsor is anticipating a ($31,000) deficit in the vehicle maintenance and parts account. Although the reduction in service during 2020 due to Covid19 has allowed for a reduction in fleet maintenance, in order to mitigate the spread of the Coronavirus, Transit Windsor was required to install personal protective equipment in the buses which led to additional costs.