Investing in Ontario Act - FAQ Payments under the Investing in Ontario Act and Regulation 277/08

What is the deadline for spending the funds?

Even though Regulation 277/08 does not stipulate a date by which the funds are to be used by municipalities, the province expects that the funds will be used to fund a municipality’s capital priorities as soon as possible.

Under accountability provisions, the province reserves the right to recover the funds if they are not, or will not be, used for the intended purposes.  The province will provide guidance on report-back requirements, which will provide additional details on the intended use of the funds. 

What are the eligible types of expenditures for which the funds can be used?

Municipalities have the discretion to spend their funds on their unique capital priorities.  However, it should be noted that, under the 2008 regulation, payment:

(a) may only be used by an eligible recipient for expenditures that are capital expenditures with respect to the eligible recipient under generally accepted accounting principles for local governments as recommended, from time to time, by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants; and

(b) shall not be used for the purpose of reducing or paying out the amount of any debt relating to a capital expenditure if the debt was incurred by the eligible recipient before the date on which the relevant payment is received. 

In summary, any capital expenditure, as long as it meets the definition of “capital” according to the PSAB definition, is eligible if it meets the timing restrictions.  Further guidance posted on the Ministry of Finance website addresses the timing considerations: 

  • If it was incurred after August 25, 2008 – the date of the province’s public announcement – and prior to November 12, 2008 a municipality needs to have a record of a decision showing that the particular capital expenditures were designated to be funded by the province’s announced commitment of IOA funding.  
  • In addition, the funds shall not be used for the purpose of reducing or paying out the amount of any debt relating to a capital expenditure if the debt was incurred by the eligible recipient before November 12, 2008, the date on which the relevant payment was received. 

More information is available at Investing in Ontario Act.

How should a municipality indicate that an infrastructure project has been funded by the Government of Ontario?

Capital projects that receive provincial investment (with no federal contribution) should display an approved Government of Ontario sign in a prominent location. Logo

Can we use Investing in Ontario Act (IOA) funds as part of the municipal contribution for our Building Canada Fund – Communities Component application?

The Municipality can use IOA funding as their one-third portion of the Building Canada Fund – Communities Component.

Municipalities are reminded that IOA funding must still be used according to stipulations in the Regulation and is still subject to report-backs. 

For questions regarding Building Canada Fund – Communities Component, please contact the Building Canada Fund – Communities Component Joint Secretariat by phone at 1-866-306-7827.

Can we use IOA funds as part of the Municipal Infrastructure Investment Initiative (MIII)?

The municipality can use IOA funds for the Municipal Infrastructure Investment Initiative.

Municipalities are reminded that IOA funding must still be used according to stipulations in the Regulation and is still subject to report-backs.  As well, the municipality will also have to comply with all report-back conditions of the MIII programs.

For questions regarding MIII, please contact the MIII help desk at 1-800-230-0937.

Can we use IOA funds for new federal budget programs?

The use of IOA funds for any other new federal infrastructure programs (e.g. Infrastructure Stimulus Fund, Recreational Infrastructure Fund) has yet to be determined.  For more information, please contact the Ministry of Finance.