: 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 13, 2014

Dear Treasurer/Clerk-Treasurer:

In their November 13 letter to Heads of Council, the Ministers of Finance and Municipal Affairs and Housing announced the 2015 Ontario Municipal Partnership Fund (OMPF) allocations. I am writing to provide you with more details regarding your 2015 allocation.

In 2015, the Province will provide a total of $515 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 more than $2.2 billion in 2015. This is more than 3.5 times the level of funding provided in 2004.

As noted in the joint Ministers' letter to Heads of Council, for 2015, the Province will continue to ensure that municipalities receive a guaranteed level of support based on their 2014 OMPF allocation.

Northern municipalities will receive at least 90 per cent of their 2014 OMPF allocation, while municipalities in other regions of the province will receive at least 80 per cent. These minimum levels of support will be enhanced, up to 100 per cent, for eligible northern and rural municipalities with more challenging fiscal circumstances.

The details specific to your municipality's 2015 allocation are outlined in your 2015 OMPF Allocation Notice and Inserts.

Redesigned OMPF

The redesigned OMPF was introduced for 2014 following consultations with municipalities from across the province. The program continues to support municipalities with limited property assessment, and recognizes the unique challenges of northern and rural municipalities.

In addition, a new grant component was announced – the Northern and Rural Fiscal Circumstances Grant – that provides additional, more targeted funding to eligible municipalities with more challenging fiscal circumstances.

2015 OMPF

As you know, the phase down of the OMPF was part of the 2008 upload agreement with the Association of Municipalities of Ontario (AMO) and other municipalities.

Over the past year, the Ministry of Finance has continued to consult with AMO and other municipal representatives on how best to support municipalities through the program as the OMPF phases down. 

In the Province's discussions with municipalities, two key recommendations emerged that have informed the design of the program:

  1. Funding should be further targeted to municipalities with the greatest needs.
  2. The design of the program should ensure a manageable pace of change.

As a result, the 2015 OMPF has been designed to balance these recommendations by increasing targeted support to those municipalities with more challenging fiscal circumstances, while continuing to provide a significant amount of transitional assistance.

Funding provided through the Northern and Rural Municipal Fiscal Circumstances Grant will begin to increase in order to further target support to those municipalities with the most challenging fiscal circumstances.  Compared to 2014, these municipalities will receive an increase of more than 30 per cent in per household funding allocated through this grant.  

In addition, the significant amount of transitional assistance will provide municipalities with stability as they adjust to the redesigned program.

2015 OMPF – Supporting Material

In order to assist municipalities in understanding the redesign of the OMPF and their individual 2015 allocations, the Ministry of Finance has prepared detailed and customized supporting documentation:

  1. 2015 OMPF Technical Guide
  2. 2015 OMPF Allocation Notice and Inserts
  3. Municipal Workbooks and Upload Benefit Report
  1. 2015 OMPF Technical Guide

    The 2015 OMPF Technical Guide provides information with respect to individual grant thresholds, parameters and data sources.
  1. 2015 OMPF Allocation Notice and Inserts

    The OMPF Allocation Notice and Insert outline individual municipal OMPF allocations by grant component, and also provide a summary of key data inputs for 2015. Your municipality's funding allocation is noted on line A.

    The additional benefit to your municipality from the provincial uploads is presented in the accompanying 2015 Upload Notice Insert.
  1. 2015 Municipal Workbooks and Upload Benefit Report

    The 2015 OMPF Workbook and the 2015 Northern and Rural MFCI Workbook (if applicable) provide detailed calculations of 2015 OMPF grant components, the determination of the northern and rural Municipal Fiscal Circumstances Index (MFCI), and outline all underlying data elements.

    The 2015 Upload Benefit Report presents a detailed breakdown of each municipality's estimated benefit resulting from the provincial uploads.

    These documents will be provided electronically to municipal treasurers and clerk-treasurers in the coming weeks. 

The 2015 OMPF Technical Guide as well as individual municipal OMPF Allocation Notices are also available electronically on the Ministry's website:

http://www.fin.gov.on.ca/en/budget/ompf/2015

2015 Payment Schedule

The 2015 Cash Flow Notice identifies your municipality's quarterly payment schedule. Payments will be processed at the end of January, April, July, and October 2015.

2015 Reporting Obligations

We 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:

  • their 2014 Financial Information Return (FIR) by May 31, 2015; and
  • their 2015 tax rate by-laws by September 30, 2015.

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

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

In closing, we would like to thank members of the Municipal Reference Group and all municipalities that provided advice on the 2015 OMPF. We look forward to continuing to work with municipal representatives to ensure the design of the OMPF reflects the long-term priorities of municipalities.


Sincerely,

Information copy
Original signed by

Allan Doheny                  
Assistant Deputy Minister
Provincial Local Finance Division

c.

Kate Manson-Smith
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