: Ontario Municipal Partnership Fund (OMPF)


2014 OMPF


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

In 2014, the Province will provide a total of $550 million in unconditional funding through the OMPF to 388 municipalities across the province. This funding, combined with the municipal benefit resulting from the provincial uploads, will total over $2 billion in 2014 – more than three times the level of funding provided in 2004. This is the equivalent of over 12 per cent of municipal property tax revenue in the province.

The following table identifies the increase in the combined benefit along with the phase-down schedule for the OMPF program. This phase-down schedule was confirmed in the 2012 and 2013 Ontario Budgets.

Provincial Support Continues to Increase as OMPF is Phased Down
($ millions)
  2013 2014 2015 2016
Provincial Uploads 1,368 1,560 1,630 1,770
OMPF 575 550 525 500
Combined Support 1,943 2,110 2,155 2,270

Redesigned 2014 OMPF

Throughout 2012 and 2013, the Ministry of Finance, working jointly with the Ministry of Municipal Affairs and Housing, held a series of consultations with the Association of Municipalities of Ontario (AMO) and municipal representatives about how to best redesign the OMPF.  The input received from municipalities was very valuable and helped to shape the redesign of the program for 2014.

The objectives of the redesigned 2014 OMPF are to:

  • continue to support areas with limited property assessment;
  • continue to 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.

As part of the redesign, the program includes a new grant – the Northern and Rural Fiscal Circumstances Grant. This grant is being introduced in recognition that not all northern and rural municipalities are the same. The differences in the fiscal circumstances of these municipalities will be recognized through this new grant. Additional, targeted support is provided to northern and rural municipalities based on their northern and rural Municipal Fiscal Circumstances Index (MFCI).

Helping Municipalities Adjust to the New Program

The redesigned 2014 OMPF also provides a significant amount of Transitional Assistance, which ensures municipalities receive a guaranteed level of support based on their 2013 OMPF allocation. Municipalities in the north will receive at least 90 per cent of their 2013 OMPF allocation, while municipalities in other regions of the province will receive at least 85 per cent. 

2014 Minimum Level of Support
(Per cent of 2013 OMPF)
Northern Ontario 90%
Other Regions

These minimum levels of support will be enhanced, up to 100 per cent, for eligible northern and rural municipalities with more challenging fiscal circumstances.

2014 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 2014, the Province will continue to deliver on its commitment in accordance with the timetable agreed to through the PMFSDR by:

  • continuing the phased upload of Ontario Works (OW) benefits; and
  • continuing the phased upload of 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 provide more than $230 million in additional support of municipal OW administration costs. 

As a result of the uploads, 339 municipalities will see an estimated benefit of over $1.5 billion in 2014. 

Upload Benefit to Municipalities
Program 2014
ODB Upload $210 million
ODSP Administration $85 million
ODSP Benefits $784 million
OW Benefits (43% uploaded in 2014) $196 million
Court Security and Prisoner Transportation (43% uploaded in 2014) $54 million
OW Administration additional support $232 million
Total Upload Benefit $1.56 billion

Note: OW administration continues to be cost shared on a 50:50 basis between the Province and municipalities. Beginning in 2011, OW administration costs reflect a revised funding approach which will provide more than $230 million to municipalities in additional support of these costs in 2014.

2014 Combined Benefit

Since 2009, municipal benefits have been calculated as a combination of both the OMPF and provincial uploads.

In 2014, the Province will provide a combined benefit of over $2 billion to 425 municipalities — more than three times the level of funding provided in 2004. The combined benefit includes:

  • OMPF support of $550 million to 388 municipalities; and
  • The upload of over $1.5 billion in social assistance benefit program and court security and prisoner transportation costs for 339 municipalities.
2014 Combined Benefit Compared to Prior Years
  2004 2013 2014
A. CRF/OMPF $618 million $575 million $550 million
B. Provincial Uploads - $1.2 billion $1.5 billion
Combined Benefit (A + B) $618 million $1.9 billion $2.1 billion
Year-over-Year Increase $167 million
Increase Since 2004 $1.4 billion

Ongoing Support to Municipalities

The Province will provide municipalities with ongoing support of approximately $3.5 billion in 2014 — an increase of over 200 per cent from the level provided in 2003.

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

  • $478 million in provincial funding to maintain the 50:50 cost-sharing of land ambulance costs, an increase of $253 million compared to 2005;
  • increasing the provincial share of public health costs from 50 per cent in 2004 to 75 per cent in 2007, providing municipalities with an additional $306 million in annual provincial funding since 2004; and
  • $324 million in provincial gas tax funding in the 2012–13 program year, for a total of $2.6 billion since 2004.

By 2016, the Province will have increased ongoing support to municipalities to $3.7 billion a year — an increase of more than 240 per cent compared to 2003.

Ongoing Suppport to Municipalities Continues to Increase $1 billion in 2003 - $3.7 billion by 2016

Source: Provincial-Municipal Fiscal and Service Delivery Review: “Facing the Future Together” (October 2008); adjusted to reflect the OW administration funding model announced in 2011, the phase-down of the OMPF confirmed in the 2012 and 2013 Ontario Budgets, the phase-out of Toronto Pooling Compensation 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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