: 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 17, 2015

Dear Treasurer/Clerk-Treasurer:

In their November 17 letter to Heads of Council, the Ministers of Finance and Municipal Affairs and Housing announced the 2016 Ontario Municipal Partnership Fund (OMPF) allocations. I am writing to provide you with more details regarding your 2016 allocation.

In 2016, the Province will provide a total of $505 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 $2.3 billion in 2016. This is nearly four times the level of support provided in 2004.

The details specific to your municipality’s 2016 allocation are outlined in the attached 2016 OMPF Allocation Notice and Inserts.

2016 OMPF

As you are aware, the redesigned OMPF was introduced in 2014, following consultations with the Association of Municipalities of Ontario (AMO) and municipal representatives from across the Province.

Since that time, the Ministry of Finance has continued to consult with AMO and other municipal representatives to further refine the design of the program. The 2016 OMPF reflects the core objectives of the redesigned program, while balancing the range of input received from municipalities during our discussions. Specifically in 2016, the program will:

  • Further support northern municipalities by enhancing the Northern Communities Grant to $84 million, as announced in the 2015 Ontario Budget;
  • Continue to increase targeted support to northern and rural municipalities facing more challenging fiscal circumstances by increasing the Northern and Rural Fiscal Circumstances Grant to $67 million;
  • Further recognize the unique challenges of rural farming communities, by increasing the Rural Communities Grant to $143 million, with the additional funding targeted to rural municipalities with the highest levels of farm land; and
  • Assist municipalities as they transition to the redesigned program by maintaining $61 million in Transitional Assistance. This will mean that in 2016, minimum funding guarantees for municipalities in southern Ontario will be increased to at least 85 per cent of their 2015 OMPF allocation. Northern municipalities will continue to receive at least 90 per cent of their 2015 OMPF allocation. These minimum levels of support will be further enhanced up to 100 per cent for municipalities with more challenging fiscal circumstances.

More information on these changes can be found in the 2016 OMPF supporting materials.

2016 OMPF – Supporting Material

In order to assist municipalities in understanding the OMPF and their individual 2016 allocations, the Ministry of Finance has prepared detailed and customized supporting documentation:

  1. 2016 OMPF Technical Guide
  2. 2015 OMPF Allocation Notice and Inserts
  3. Municipal Workbooks and Upload Benefit Report
  1. 2016 OMPF Technical Guide

    The 2016 OMPF Technical Guide provides information with respect to individual grant thresholds, parameters and data sources.

  1. 2016 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 2016. 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 2016 Upload Notice Insert.

  1. 2016 Municipal Workbooks and Upload Benefit Report

    The 2016 OMPF Workbook and the 2016 Northern and Rural MFCI Workbook (if applicable) provide detailed calculations of the 2016 OMPF grant components, and the determination of the northern and rural Municipal Fiscal Circumstances Index (MFCI), as well as outline all underlying data elements.

    The 2016 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 2016 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/2016

2016 Payment Schedule

The 2016 Cash Flow Notice identifies your municipality’s quarterly payment schedule. Payments will be processed at the end of January, April, July, and October 2016.

2016 Reporting Obligations

We would also like to remind you that municipalities are required to submit their 2015 Financial Information Returns (FIRs) to the Ministry of Municipal Affairs and Housing (MMAH) by May 31, 2016.

Municipalities are also required to submit their 2016 tax rates through the Online Property Tax Analysis (OPTA) System or to MMAH by September 30, 2016.

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 input on the development of the 2016 OMPF. I look forward to continuing the dialogue with municipalities on next year’s program.

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