Ontario Municipal Partnership Fund - Deputy Minister's letter, November 2006

Ministry of Finance
Office of the
Deputy Minister
Frost Building South
7 Queen's Park Cr
Toronto ON M7A 1Y7
Tel (416) 325-1590
Fax (416) 325-1595
Ministère des Finances
Bureau du
sous-ministre
Édifice Frost sud
7 Queen's Park Cr
Toronto ON M7A 1Y7
Tél (416) 325-1590
Téléc (416) 325-1595
Ontario

December 7, 2006

Dear Treasurer/Clerk-Treasurer:

When the Ontario Municipal Partnership Fund (OMPF) was introduced in March 2005, the government committed to update the grants as more current social program and policing costs become available, a key improvement over the Community Reinvestment Fund (CRF).  The first in-year 2005 OMPF update was conducted in October 2005. 

I am pleased to advise that we have now completed the final 2005 OMPF reconciliation and the first in-year update of the 2006 OMPF.  

Final 2005 OMPF Reconciliation

The 2005 OMPF reconciliation reflects final 2005 data for:

  • Social program costs (Ontario Works, Ontario Drug Benefits and Ontario Disability Support Program);
  • Contracts for Child Care;
  • Inter-municipal cost-sharing agreements; and
  • Ontario Provincial Police and municipal police costs.

The Final 2005 OMPF Allocation Notice for your municipality is enclosed.  If a final 2005 payment is required for your municipality, a Final 2005 Reconciliation - Notice of Payment has also been enclosed.

As previously committed by the government, the Stable Funding Guarantee will continue to ensure that the final reconciliation does not result in reductions in the 2005 OMPF allocations for any municipality as compared to the levels announced in October, 2005.

This is the final 2005 reconciliation.  There will be no further reconciliations of the 2005 OMPF.

2006 OMPF In-Year Update

2006 OMPF allocations have also been updated to reflect nine months of year-to-date social program and police cost data and any reported changes in 2006 inter-municipal cost-sharing agreements. 

The 2006 Allocation Notice – Fall 2006 Update for your municipality is enclosed. If the 2006 in-year update results in a payment to your municipality, a Fall 2006 Update – Notice of Payment has also been enclosed.

As part of the 2006 OMPF announcement, the government advised that no municipality would receive less funding in 2006 than the level announced in October 2005.  Accordingly, for those municipalities that would otherwise see a  reduction in their 2006 OMPF allocation as a result of the in-year update, additional one-time special assistance (line B of the enclosed 2006 Allocation Notice – Fall Update) has been provided to maintain funding at the level announced in March 2006.

It is expected that the final 2006 OMPF reconciliation will be conducted in the Fall of 2007.
 
Both the final 2005 reconciliation payment and the Fall 2006 update payment will be processed by electronic funds transfer during the week of December 11th.

Municipalities can refer to the enclosed 2005 and 2006 Municipal Workbooks for detailed calculations of each OMPF grant component identified on their respective allocation notices.

Social Programs Cost Reports

All upper- and single-tier municipalities will be able to chart both the final 2005 and updated 2006 social program costs through the enclosed Social Programs Cost Reports prepared with the assistance of the Ministries of Community and Social Services and Children and Youth Services. 

We are pleased with the feedback municipalities have provided on the usefulness of these reports and will continue to issue them in conjunction with future updates to the OMPF to reflect more current data.

Reporting Requirements

Municipalities that have not yet met either their 2005 or 2006 reporting requirements will continue to have OMPF payments withheld.  This includes any payments in respect of the 2005 final reconciliation and/or the 2006 in-year update.

Once municipalities have submitted the required information, the respective payments will be released.

If you require additional information regarding your 2005 OMPF final allocation or the 2006 in-year update, you may contact your local Municipal Services Office of the Ministry of Municipal Affairs and Housing, or e-mail your inquiries and your contact phone number to:  info.ompf@ontario.ca.

2007 OMPF

I would also like to confirm the government plans to announce 2007 OMPF grant allocations shortly, in time to support municipalities’ 2007 budget planning cycles.

Sincerely,

Colin Andersen
Deputy Minister
Ministry of Finance

Attachments

cc:       John Burke
            Deputy Minister
            Ministry of Municipal Affairs and Housing

            Kevin Costante
            Deputy Minister
            Ministry of Community and Social Services

            Judith Wright
            Deputy Minister
            Ministry of Children and Youth Services

            Deborah Newman
            Deputy Minister
            Ministry of Community Safety and Correctional Services