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1989 Annual Report of the Toronto Transit Commission

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1989 Annual Report of the Toronto Transit Commission Toronto Transit Commission ANNUAL REPORT 1989 N Toronto Transit Commission To: MR. ALAN TONKS, CHAIRMAN, AND CouNCILLORS oF THE MUNICIPALITY OF METROPOLITAN TORONTO It is with pleasure that I present the 1989 Annual Report of the Toronto Transit Commission. This was a most challenging year for the first commission composed of elected councillors. I would like to thank Alan Tonks who, as both TTC Commissioner and Chairman of Metro­ politan Toronto, brought the perspective of the Metro Corporation to the Commission's work. The Commission depends on both Metro Toronto Council and the Province of Ontario for their fmancial support and their commitment to public transit. In the fall of 1989, the TTC adopted a major policy paper, Choices for the Future, containing new initiatives for improving transit for people with disabilities and elderly people. This com­ mitment to improved access to good, reliable public transit for all our citizens will be part of all future decisions on transit line design and vehicle acquisition. Increasing public concern about the environment has thrust public transit into the forefront as the answer to the urban problems of pollution and congestion. I commend TTC Vice-Chairman Mike Colle for his proactive work in bringing environmental issues and the benefits of transit to the public's attention. Commissioner Bev Salmon chaired the committee on workplace harassment and has been instrumental in guiding the new Workplace Harassment Policy, which is being implemented in 1990. The TTC places high priority on developing a workplace in which all its employees can feel comfortable and are treated with dignity and understanding. The "Back To Basics" philosophy, formulated in 1988, formed the background for our decision­ making. It meant focusing on our central mandate: moving people in Metropolitan Toronto. To this end, the decision was made in 1989 to sell Gray Coach Lines and all of its subsidiaries. Commissioner Brian Harrison, the Chairman of Gray Coach Lines, deserves many thanks for his work in overseeing this. As the TTC moves into the 1990s, we will continue to focus on our motto of service, safety and courtesy and to provide a high standard of transit service for the Metropolitan Toronto community. Lois Griffm Chairman 2 To: MR. ALAN TONKS, CHAIRMAN, AND CouNciLLORS oF THE MUNICIPALITY OF METROPOLITAN TORONTO Nineteen eighty-nine was a turnaround year for the Toronto Transit Commission. Ridership was down by almost 3 per cent and fare revenue was $5.1 million below budget, partly because of the 41-day union job action this summer. In order to stem this decline a "Back to Basics" philosophy was initiated. The TTC renewed its emphasis on service, safety and courtesy, the cornerstone of its operating strategy. We set out to provide top-quality service, to win back those lost riders and to re-establish our fmancial strength. A significant step towards improved service was taken when our operators restored the TTC to its accustomed place as the safest public transit system in the United States and Canada serving a city of one million or more people. For the 19th time in 23 years the TTC earned one of the industry's highest safety honours, the American Public Transit Association Silver Award. We also won an award for safety from the Canadian Urban Transit Association. But we must never be content to stand still. The drive towards an even-safer system continues. The same energy and commitment were directed at major lpw-cost service improvements. Stand by buses began operating out of five strategically located subway stations during afternoon rush hours. A crowd relief train, introduced as needed on the Yonge-University-Spadina line during rush hours, proved so successful that three more are being added on that line and three more on the Bloor-Danforth line in 1990. In an atmosphere of concern for the security of our passengers, particularly women and children, a landmark security audit of our rapid transit system had been conducted in 1988 by the TTC, the Metropolitan Toronto Police Force and the Metro Action Committee on Public Violence Against Women and Children. As a result, 1989 saw the introduction of many innovative security measures and the audit was extended to include our surface network. If public transit is to continue to be a vital component of daily life in Metropolitan Toronto, expansion is necessary. The Province of Ontario has announced a seven-project programme of public transit expansion to be completed in the 1990s. After a tough, tight year, a year of refocusing and renewal, we're ready to grow. Allan F. Leach Chief General Manager 3 Financial Overview (Conventional System) 1989 REVENUE Thtal Revenue: $399,811,000 J\s a result of the six-week union job action, revenue J-\ passengers decreased by 2.8 per cent from 1988. The E:l Regular Service, Including decline was the ftrst since 1978. The operating subsidy Fare Grants $375,447,000 (93.9%) requirement, however, was 3.9 per cent less than budget. 0 Charters and Special Services $2,253,000 (0.6%) This Financial Overview briefly analyses the Commission's • Rental Income most significant fmancial results for the year; more details $10,421,000 (2.6%) D Advertising Space Rental can be found on the following pages. $7,808,000 (1.9%) • Other Income $3,882,000 (1.0%) TTC Fares at December 31, 1989 Revenue Passengers Fares millions % 1DKENS Adult 8 for $7.50 114.9 25.5 TICKETS Adult 8 for $7.50 37.4 8.3 1989 EXPENSES Total Expenses: 2 for $2.00 27.0 6.0 $559,598,000 Scholar 8 for $3.75 37.5 8.3 Senior Citizen 8 for $3.75 24.3 5.4 2 for $1.00 0.1 Child 4 for $1.10 12.3 2.7 CASH Wages, Salaries and Other Adult $1.10 65.7 14.6 • Employee Costs Scholar $0.70 6.2 1.4 $426,628,000 (76.2%) Child $0.50 2.9 0.7 Materials, Services and • Supplies PASSES $67,921,000 (12.2%) Metropass $49.00 113.5 25.2 Seniors' Pass $32.00 4.6 1.0 D Automotive Fuel $20,417,000 (3.7%) Family /Visitor $4.00 1.3 0.3 0 Electric Traction Power OTHER $20,273,000 (3.6%) Postal Contract 1.9 0.4 0 Accident Claims Costs Blind and War Amputees 1.1 0.2 $8,524,000 (1.5%) 450.7 100.0 • Depreciation Note: $9,580,000 (1.7%) The split of passengers and revenue by category is estimated on the basis of Municipal Taxes collection of tickets and tokens and a sample analysis of cash fares. • $6,255,000 (1.1%) 4 Operating results 600 1989 1988 Increase % li!!l Revenue($ millions) 399.8 381.5 18.3 4.8 D Operating subsidy($ millions) 159.8 150.4 9.4 6.3 Expenses($ millions) 559.6 531.9 27.7 5.2 Revenue increased to $399.8 million, primarily as a result of the 5.0% fare increase on January 3 partially offset by a 2.8% decrease in ridership. Expenses rose to $559.6 million because of wage increases aggregating 5. 7% and general inflation. The increase in expenses was partially offset by a 2.2% decrease in the service operated. Operating subsidy increased by 6.3%. 1988 1989 Moving average Passengers 470 Increase % 1989 1988 (Decrease) 450 Passengers (millions) 450.7 463.5 (12.8) (~.8) 430 Revenue per passenger 88.7Cj: 82.3<!: 6.4<!: 7.8 Operating subsidy per passenger 35.5Cj: 32.5<!: 3.0<!: 9.2 410 Expenses per passenger 124.2Cj: 114.8<!: 9.4<!: 8.2 390 Ridership decreased by 2.8% as a result of the union job action and its aftermath combined with a :/ decrease in the use of Metropass. 0 1988 1989 Moving average Miles 125 Increase % 1989 1988 (Decrease) 120 Miles (millions) 118.3 120.9 (2.6) (2.2) Revenue per mile 337.9Cj: 315.6<!: 22.3<!: 7.1 Operating subsidy per mile 135.1Cj: 124.4<!: 10.7<!: 8.6 Expenses per mile 473.0Cj: 440.0<!: 33.0<!: 7.5 Vehicle mileage decreased in 1989 due to the union job action and its aftermath. Surface mileage (buses, streetcars and trolley coaches) decreased by 2.1 million miles, while rapid transit miles decreased by 0.5 million. 1988 1989 Moving average Capital expenditures 150 Increase 1989 1988 (Decrease) % 0 Revenue vehicle acquisition($ millions) 32.0 53.7 (21.7) (40.4) 11111 Other capital projects($ millions) 76.1 82.0 (5.9) (7.2) Total($ millions) 108.1 135.7 (27.6) (20.3) Among the major expenditures in 1989 were the purchase of diesel buses ($17.8 million), construe· tion of the Harbourfront Light Rail Transit line ($12.9 million), implementation of the Communications and Information System ($12.6 million) and progress payments on the subway car and articulated light rail vehicle contracts ($12.4 million). 1988 1989 5 Revenue Increase (thousands of dollars) 1989 1988 (Decrease) % Regular service 360,716 344,158 16,558 4.8 Fare grants 14,731 13,721 1,010 7.4 Regular service, including fare grants 375,447 357,879 17,568 4.9 Charters and special services 2,253 2,689 (436) (16.2) 377,700 360,568 17,132 4.8 Rental income 10,421 9,389 1,032 11.0 Advertising space rental 7,808 7,544 264 3.5 Other income 3,882 4,003 (121) (3.0) Total revenue 399,811 381,504 18,307. 4.8 REGULAR SERVICE, INCLUDING FARE GRANTS RENTAL INCOME Regular service, or "passenger" revenue, including fare grants Rent from station concessions and leases of property totalled from Metro Toronto, amounted to $375,447,000 in 1989.
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