: Ontario Municipal Partnership Fund – Treasurer/Clerk-Treasurer Letter

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

November 15, 2012

Dear Treasurer/Clerk-Treasurer:

In their November 15th letter to Heads of Council, the Ministers of Finance and Municipal Affairs and Housing announced that 2013 will be a transition year for the Ontario Municipal Partnership Fund (OMPF). I am writing to provide you with more details regarding your 2013 allocation.

As part of the transition year, the Province will provide a total of $575 million in stable funding to 388 municipalities across the province. This Transition-Year Stable Funding, combined with the municipal benefit resulting from the provincial uploads will total over $1.9 billion in 2013. This is more than three times the level of funding provided under the previous program in 2004.

For 2013, the Province will ensure that municipalities receive a guaranteed level of support based on their 2012 OMPF allocation. Municipalities in the north will receive at least 95 per cent of their 2012 OMPF allocation, while municipalities in other regions of the province will receive at least 90 per cent.

In addition, these minimum levels of support will be enhanced up to 100 per cent for eligible municipalities with more challenging fiscal circumstances.

Details of the 2013 Transition-Year Stable Funding

As noted in the joint Ministers’ letter to Heads of Council, the Transition-Year Stable Funding will be enhanced for eligible municipalities based on their relative fiscal circumstances. This will be determined using a northern and rural Municipal Fiscal Circumstances Index (MFCI).

The northern and rural MFCI measures a municipality’s fiscal circumstances relative to other northern and rural municipalities in the province. The index is determined by six indicators including a municipality’s assessment base and median household income.

The northern and rural MFCI is measured on a scale from 0 to 10, where a lower MFCI corresponds to relatively positive fiscal circumstances, whereas a higher MFCI corresponds to more challenging fiscal circumstances.

As part of the 2013 transition year, funding will also be enhanced for those municipalities that may require additional support as a result of the OMPF representing a more significant source of municipal revenue.

Additional details regarding the Transition-Year Stable Funding are provided in the 2013 OMPF Transition-Year Stable Funding Technical Guide.

2013 Transition-Year Stable Funding Allocation Notice and Insert

Details specific to your municipality’s allocation are included in the 2013 Transition-Year Stable Funding Allocation Notice. Line A.1 identifies your municipality’s 2013 funding level. Your municipality’s actual 2013 allocation is reflected on Line A of this Notice.

The additional benefit from the provincial uploads is presented in box B. Supporting data inputs are also provided in boxes D and E, and accompanying inserts.

2013 OMPF Transition-Year Workbook

To assist municipalities in understanding their 2013 OMPF Transition-Year Stable Funding allocation, the Ministry of Finance has developed a customized workbook that will be provided to individual municipalities electronically.

Your municipality’s workbook provides detailed calculations and outlines the underlying data components used to calculate your municipality’s 2013 OMPF Transition-Year Stable Funding allocation.

2013 Payment Schedule

Also enclosed is a Cash Flow Notice that identifies your municipality’s 2013 quarterly payment schedule. The quarterly payments will be processed at the end of January, April, July, and October 2013.

2013 Reporting Obligations

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

  • their 2012 Financial Information Return (FIR) by May 31, 2013; and
  • their 2013 tax rate by-laws by September 30, 2013.

Payments for municipalities that do not meet these reporting obligations will be subject to holdback until these documents have been filed.

The 2013 Transition-Year Funding Allocation Notices will be posted on the Ministry of Finance website:

http://www.fin.gov.on.ca/en/budget/ompf/2013/
http://www.fin.gov.on.ca/fr/budget/ompf/2013/

2010 OMPF Reconciliation

In the joint Ministers’ letter to Heads of Council, the government has confirmed the reconciliation of the 2010 OMPF. The Ministry will be providing additional details in respect of the final reconciliation payments under the OMPF in the coming weeks. As noted in the letter, there will be no further reconciliations beyond the 2010 program year.

2014 OMPF

During the 2013 transition year, the Province will continue to consult with its municipal partners with respect to the redesign of the program for 2014.

Based on the input received to date, the government has heard that there continues to be a need for ongoing assistance for municipalities, particularly those with more challenging fiscal circumstances. As a result, the redesign of the program for 2014 is expected to improve the targeting of funding for northern and rural municipalities, which will be accomplished through the application of the northern and rural MFCI.

As indicated in the joint Ministers’ letter to Heads of Council, during the 2013 transition year, the Province will continue to welcome municipal input on the redesign of the program that will be implemented in 2014. To that end, I am looking forward to continuing the dialogue on the program redesign with the Association of Municipalities of Ontario and other municipal representatives.

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.

Janet Mason
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