: Ontario Municipal Partnership Fund (OMPF) 2012

Ministry of Finance
Provincial-Local
Finance Division
10th Floor
777 Bay Street
Toronto ON M5G 2C8
Tel (416) 327-0264
Fax (416) 325-7644

Ministère des Finances
Division des relations provinciales-municipales en matière de finances
10e étage
777 rue Bay
Toronto ON M5G 2C8
Télé.   (416) 327-0264
Téléc. (416) 325-7644

January 23, 2012

Dear Treasurer/Clerk-Treasurer:

This letter follows the recent letter to Heads of Council, from the Ministers of Finance and Municipal Affairs and Housing, announcing the 2012 Ontario Municipal Partnership Fund (OMPF).

In 2012, the OMPF will provide $583 million to 373 municipalities across the province. The combined benefit to municipalities through the OMPF and the provincial uploads will total over $1.8 billion in 2012. This is almost three times the level of funding provided under the previous program.

The details specific to your municipality’s 2012 OMPF allocation are enclosed.

Details of the 2012 OMPF Release

The OMPF is designed to respond to the individual circumstances of each municipality, including updates in assessment, households, policing and social program costs.

It is important to note that while the province’s upload of over $170 million in municipal Ontario Works (OW) administration costs has resulted in lower actual municipal OW administration costs, the additional costs recognized by the province have been included in OMPF calculations beginning in 2012. As a result, the 2012 Social Programs Grants will be maintained at the same level as in 2011 rather than being reduced as agreed upon during the Provincial-Municipal Fiscal and Service Delivery Review.

Specific refinements to grant parameters have been incorporated in the 2012 OMPF allocations to reflect changes in the underlying data:

  • The average income threshold for the Social Programs Income Threshold Component has been adjusted to 0.66 per cent.
  • The total weighted assessment per household threshold for the Assessment Equalization Grant Component has been adjusted to $238,000.
  • The tax revenue threshold for the Northern and Rural Social Programs Grant Component has been adjusted to 11.35 per cent.

In addition, beginning in 2012, the phased upload of court security and prisoner transportation will be reflected in the calculation of the Police Services Grant for municipalities that are responsible for those costs. 

2012 Combined Benefit

Consistent with the calculation of the combined benefit in prior years, both the upload of over $170 million in OW administration costs and the phased upload of court security and prisoner transportation costs will be included, along with previously uploaded social assistance benefit programs, in the determination of municipal support beginning in 2012.  

2012 OMPF Allocation Notice

Details for your municipality are provided on the enclosed 2012 OMPF Allocation Notice. Your municipality’s 2012 OMPF allocation is identified on Line C. 

For single- and upper-tier municipalities, the additional benefit to your municipality from the provincial uploads, including OW administration is identified in section D. It should be noted that the removal of these costs from the property tax base will also benefit lower-tier taxpayers.

2012 Payment Schedule

Also enclosed is a Payment Notice that identifies your municipality’s 2012 OMPF quarterly payment schedule. The first quarterly payment will be processed through electronic funds transfer this week, and is in respect of the period January through March 2012. The remaining quarterly payments will be processed at the end of April, July, and October 2012.

2012 Reporting Obligations

I would also like to remind you that, as in previous years, municipalities are required to submit the following to the Ministry of Municipal Affairs and Housing (MMAH):

  • their 2011 Financial Information Return (FIR) by May 31, 2012; and
  • their 2012 tax rate by-laws by September 30, 2012.

Similar to prior years, OMPF payments for municipalities that do not meet these reporting obligations will be subject to holdback until these documents have been filed. As you know, the FIR is one of the key data requirements for the OMPF.

The 2012 OMPF Allocation Notices and the 2012 Ontario Municipal Partnership Fund Technical Guide will be posted on the Ministry of Finance website:

http://www.fin.gov.on.ca/en/budget/ompf/2012/
http://www.fin.gov.on.ca/fr/budget/ompf/2012/

If you require additional information, you may e-mail your inquiries and contact information to: info.ompf@ontario.ca.

Sincerely,

Information copy
Original signed by

Allan Doheny                  
Assistant Deputy Minister (A) 
Provincial Local Finance Division

c.

Dana Richardson
Assistant Deputy Minister
Local Government and Planning Policy Division
Ministry of Municipal Affairs and Housing

Elizabeth Harding
Assistant Deputy Minister
Municipal Services Division
Ministry of Municipal Affairs and Housing