CTA finance report: fares lag, investment income and sales tax buoy budget

Tom McComb, CTA finance staff, took the board through November financial results on Jan. 14. He said fare and pass revenue for the month came in "slightly below budget and below where we were last year" and called out an early onset of winter weather and slightly lower U-Pass enrollment as contributing factors. McComb said non-fare revenue—primarily investment income on CTA reserves—more than offset the shortfall for the month and year to date.

McComb gave specific figures in the presentation: system-generated revenue for the month was about $2,100,000 below budget and $1,200,000 below the prior year; year-to-date system-generated revenue was about $10,400,000 positive to budget. On the expense side, he said winter weather drove overtime and a negative monthly labor variance, but materials and fuel/power lines showed mixed one-offs and locked-in savings; total positive variance on expenses for the month was stated at approximately $7,000,000 and year-to-date expenses were about $85,100,000 positive to budget. Sales tax and real-estate-transfer receipts were described as running well ahead of the budget—"better than 10% favorability to budget," McComb said.

Directors asked clarifying questions about the overtime drivers and forecasting; staff attributed the labor variance mainly to November storm operations and said fuel purchases were being locked in to reduce future uncertainty. McComb closed by saying he was happy to answer follow-up questions and that the finance team will update the board with December numbers in the next report.

The numbers stated here are McComb's presentation values to the board; they should be cross-checked with the board packet and the posted financial statements for formal reporting.