BUDGET: Ontario Municipal Partnership Fund 2005

 

The Ontario Municipal Partnership Fund (OMPF)

Overview

The Ontario Municipal Partnership Fund (OMPF) was introduced for 2005 to replace the Community Reinvestment Fund (CRF) as the Province's main funding model for municipalities.

As announced in March 2005, eligible municipalities will receive $656 million in OMPF funding in 2005. This represents an increase of $38 million, or 6.1 per cent, over CRF Funding received in 2004. The OMPF provides funding through four grants; the Social Programs Grant ($179M), Equalization Grant ($170M), Northern and Rural Communities Grant ($249M) and the Police Services Grant ($58M).

The OMPF assists municipalities with their social program costs; includes equalization measures; addresses challenges faced by northern and rural communities; and responds to policing costs in rural communities.

The introduction of the Ontario Municipal Partnership Fund - a clear and transparent system of grants - is part of the government's on-going commitment to strong communities.

At the end of October, the Province completed the first reconciliation update of the 2005 OMPF to reflect more current projections of 2005 program costs.

The Ontario Municipal Partnership Fund is composed of four grants:

  1. Social Programs Grant
    Provides funding to municipalities with limited property assessment to support their share of social program costs.

  2. Equalization Grant
    Provides funding to municipalities with limited property assessment through two components:

    Assessment Equalization provides funding to municipalities with limited property assessment due to lower property values and limited non-residential assessment.

    Farmland and Managed Forest Assessment provides funding to municipalities with limited property assessment due to a significant amount of farmland and managed forest properties.

  3. Northern and Rural Communities Grant
    Provides funding to northern and rural communities through four components:

    Rural Communities funding supports municipalities with rural areas or small communities.

    Northern Communities funding assists municipalities in the North.

    Northern and Rural Social Programs funding limits the municipal share of revenue needed to support social programs in northern and rural communities.

    Stabilization funding provides ongoing assistance to municipalities in the transition to the new funding model .

  4. Police Services Grant
    Provides funding to rural communities to support policing costs.

  5. One-Time Funding
    The province is addressing a key municipal concern in allocating $100 million to reconcile the CRF to 2003 program costs and $35 million to reconcile to estimated 2004 costs.

    The province is also providing $98 million in transition assistance to ensure a managable pace of change for municipalities in the move to the new Ontario Municipal Partnership Fund.

    Through the Stable Funding Guarantee, municipalities will receive, at a minimum, as much funding in 2005 as they received through the CRF in 2004.

    If you require additional assistance regarding the Ontario Municipal Partnership Fund, please contact your local Municipal Services Office of the Ministry of Municipal Affairs and Housing or e-mail your inquiries along with your phone number to: info.ompf@fin.gov.on.ca.

    For inquiries, please contact the Ministry of Finance at info.ompf@fin.gov.on.ca.
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