Objective: An affordable expansion program that matches capacity to demand.

Core Strategy 6

Deliver Optimal Value for Money

Owner:

Chief Financial and Administration Officer

Overview of deliverables:

The TTC is driven to be as efficient and effective as possible and will deliver an ongoing, top-to-bottom cost review.

Smiling TTC worker.We will work to modernize our practices by applying proven business techniques, including zero-based budgeting. We will review what constitutes core and non-core activity and examine options for our future business model.

Our strategy also addresses the need for a greater focus on fare evasion and protection of primary revenue.

We need engagement with the government at three levels to get a fairer financial deal for the TTC. We must develop compelling arguments for sustained funding that will enable better, more efficient long-term planning. We will work with the City of Toronto and other groups to explore new revenue streams to secure adequate TTC funding.

How we will measure success:

  • Subsidy/fare ratio
  • Fare evasion rate
  • Revenue/cost ratio

Key initiatives to deliver the financial sustainability objective:

Efficiency and core business

The TTC will examine every aspect of our business to maximize efficiency and to devote scarce resources to where they most directly benefit the customer.

Specific activity will include:

  • Undertaking a TTC-wide, zero-based budget review starting in 2013.
  • Ongoing “make vs. buy” review of non-core areas that could be delivered more efficiently and effectively by a third party.
  • Adoption of modern management techniques to maximize supply chain and production efficiencies, and minimize waste.
  • De-layering of the organization to improve business efficiency and lines of communication, and to shift resources from corporate overhead to front-line supervision.
  • Use of technology to aid decision making.
  • Introduction of articulated buses on busiest routes.

Overtime

Overtime, though it can be expensive, is critically important in transit where demand can fluctuate significantly depending upon the time of day or year, and the need to staff up for major events.

Specific activity will include:

  • Options for reducing expenditure on overtime.

Economies of Scale / Buying Power

The TTC represents close to 75% of public transit in the GTHA and benefits from substantial economies of scale.

Specific activity will include:

  • Analysis of opportunities to work with other city and provincial agencies to leverage buying power.

SAP

The TTC has a number of legacy HR, Finance and IT systems that are incompatible with those used by the City of Toronto.

Specific activity will include:

  • A fundamental review of opportunities to modernize and streamline TTC systems to achieve compatibility with those used by the City of Toronto.

Claims Management

The TTC has made significant steps in the last few years to drive down the cost of claims and the potential for insurance fraud.

Specific activity will include:

  • Analysis of opportunities to further reduce the cost of claims.

Secondary Revenue Strategy

Secondary revenue streams (parking, advertising, retail, etc.) are a small but critical component of TTC revenue. In addition to providing valuable revenue these services also provide benefits to our customers.

Specific activity will include:

  • Development of a new strategy for retailing that will deliver the customer benefits of local shopping opportunities, raise the level of the services provided, and ensure maximum return to the TTC bottom line.
  • A review of station naming rights and the potential for other sponsorship revenue generators.

Wheel-Trans

The TTC has a strategy to progressively upgrade our network to be accessible for all Torontonians.

Specific activity will include:

  • Continued roll-out of accessible vehicles and facilities.
  • Exploration of more efficient ways to provide an accessible taxi service.

Shared Service Review

In conjunction with the City of Toronto, the TTC will continue to explore efficiencies that can be gained from pooling resources and processes with partner agencies.

Accommodation Strategy

In conjunction with the City of Toronto, the TTC will continue progress on consolidation of our property portfolio.