: Ontario Municipal Partnership Fund (OMPF)


2016 OMPF


The Ontario Municipal Partnership Fund (OMPF) is the Province’s main transfer payment to municipalities. 

In 2016, the Province will provide a total of $505 million in unconditional funding to 388 municipalities through the OMPF. This includes an additional $5 million in funding through the Northern Communities Grant to further support northern communities, as committed in the 2015 Ontario Budget. The OMPF combined with the municipal benefit resulting from the provincial uploads, will total over $2.3 billion in 2016. This is nearly four times the level of funding provided in 2004.

Provincial Uploads and OMPF Phase-Down

In 2012, the government announced the review of the OMPF and the phase-down of the program by 2016.  This is the final year of the phase-down that was part of the 2008 Provincial-Municipal Fiscal and Service Delivery Review (PMFSDR) agreement to upload social assistance benefit programs and court security and prisoner transportation costs off the property tax base.

Despite the phase-down of the program, overall support provided to municipalities will continue to increase, with the provincial uploads more than offsetting the reduction to the program.

Summary of Combined Provincial Support 2013-2016 ($ Millions)
Year 2013 2014 2015 2016
Provincial Uploads* 1,368 1,560 1,705 1,834
OMPF** 575 550 515 505
Combined Support 1,943 2,110 2,220 2,339
* Based on updated information and projections from the Ministry of Community and Social Services
** Confirmed in the 2015 Ontario Budget

OMPF Review and Redesign

The redesigned OMPF was introduced in 2014, following consultations with the Association of Municipalities of Ontario (AMO) and municipal representatives from across the province. The program is comprised of four core grant components that reflect the following objectives:

  • support areas with limited property assessment;
  • recognize the challenges of northern and rural municipalities, while targeting funding to those with more challenging fiscal circumstances; and
  • assist municipalities as they transition to the redesigned program.

One of the key features of the redesigned program is the Northern and Rural Fiscal Circumstances Grant. This grant component was developed in close consultation with municipalities and was introduced in recognition that not all northern and rural municipalities are the same. The differences in the fiscal circumstances of these municipalities are recognized through this grant, which provides additional, targeted support to eligible municipalities based on their northern and rural Municipal Fiscal Circumstances Index (MFCI).

What’s New for 2016

As announced in the 2015 Ontario Budget, to further support northern municipalities, the Northern Communities Grant component of the OMPF program will be enhanced to $84 million in 2016, increasing the total 2016 OMPF to $505 million from the previously planned $500 million.

In 2015, the Ministry of Finance has continued to consult with AMO and other municipal representatives on refining the design of the program to ensure it meets the long-term priorities of municipalities.

The 2016 OMPF has been designed to balance the range of views expressed by municipalities through this year’s consultations. Specifically, the 2016 OMPF will continue to increase targeted support to municipalities facing more challenging fiscal circumstances by increasing the Fiscal Circumstances Grant to $67 million, an increase of more than 20 per cent to this grant component. 

In addition, beginning in 2016, the Rural Communities Grant, which continues to support rural farming communities, will be enhanced to $143 million.  This funding increase will be targeted to municipalities with the highest levels of farm land in recognition of their unique challenges.

Finally, in response to municipal feedback, the 2016 minimum funding guarantees for municipalities in southern Ontario will be increased to at least 85 per cent of their 2015 OMPF allocation. Northern municipalities will continue to receive at least 90 per cent of their 2015 OMPF allocation.

These minimum levels of support will be further enhanced up to 100 per cent for municipalities with more challenging fiscal circumstances as measured by the MFCI.

2016 Provincial Uploads

The Provincial-Municipal Fiscal and Service Delivery Review (PMFSDR) was completed in 2008. This review set out a new approach to the funding and delivery of services in Ontario and represents a significant milestone in the provincial–municipal partnership.

In 2016, the Province will continue to deliver on its commitment to the phased upload of:

  • Ontario Works (OW) benefits; and
  • court security and prisoner transportation costs (up to $125 million annually at maturity).

This builds on the government’s previous uploads of:

  • Ontario Drug Benefit (ODB) costs in 2008;
  • Ontario Disability Support Program (ODSP) administration costs in 2009; and
  • ODSP benefits, completed in 2011.

Furthermore, the Province will make available $219 million in additional support of municipal OW administration costs.

2016 Upload Benefit to Municipalities
Program 2016
ODB Upload $231 million
ODSP Administration $85 million
ODSP Benefits $871 million
OW Benefits (71% uploaded in 2016) $337 million
Court Security and Prisoner Transportation (71% uploaded in 2016) $89 million
OW Administration additional support $219 million
Total Upload Benefit $1.8 billion

For additional details regarding the PMFSDR report, see http://www.mah.gov.on.ca/Page181.aspx.

2016 Combined Benefit

Since 2009, support provided to municipalities has been calculated as a combination of both the OMPF and provincial uploads.

In 2016, the Province will provide municipalities with a combined benefit of over $2.3 billion — nearly four times the level of funding provided in 2004. The combined benefit includes:

  • OMPF support of $505 million; and
  • The upload of over $1.8 billion in social assistance benefit programs and court security and prisoner transportation costs.
2016 Combined Benefit Compared to Prior Years
  2004 2015 2016
CRF/OMPF $618 million $515 million $505 million
Provincial Uploads   $1.7 billion $1.8 billion
Combined Benefit (A + B) $618 million $2.2 billion $2.3 billion
Year-over-Year Increase
Increase Since 2004
$100 million
$1.7 billion

Ongoing Support to Municipalities

The Province will provide municipalities with ongoing support of over $3.8 billion in 2016 — an increase of $2.7 billion from the level provided in 2003.

For 2016, the total ongoing provincial support, in addition to the combined benefit of OMPF and uploads, includes:

  • $520 million in funding to support 50:50 cost sharing of land ambulance costs;
  • $582 million in public health funding, which includes the upload of public health costs from a provincial share of 50 per cent to 75 per cent;
  • $332 million in provincial gas tax funding for the 2015–16 program year; and
  • $100 million in annual funding to small, northern and rural municipalities through the permanent Ontario Community Infrastructure Fund (OCIF).
Chart: Ongoing Support to Municipalities Continues to Increase $1.1 billion in 2003 - $3.8 billion by 2016

Source: PMFSDR: “Facing the Future Together” (2008). Adjusted to reflect: OW administration funding model announced in 2011; phase-out of Toronto Pooling Compensation; OMPF phase down and additional $5 million for the 2016 OMPF (2015 Ontario Budget); permanent, annual $100M Ontario Community Infrastructure Fund announced 2014; and updated projections.

Additional Information

For additional information or for other general inquiries about the program, email your query and contact information to: info.ompf@ontario.ca

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