: 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 (Ontario) M5G 2C8
Tél. 416 327-0264
Téléc. 416 325-7644

Province of Ontario coat of arms

November 20, 2017

Dear Treasurer/Clerk-Treasurer:

In their November 20 letter to Heads of Council, the Ministers of Finance and Municipal Affairs announced the 2018 Ontario Municipal Partnership Fund (OMPF) municipal allocations. I am writing to provide you with more details regarding your 2018 allocation.

In 2018, the Province will provide a total of $510 million in unconditional funding through the OMPF to 389 municipalities across the province. As announced in the 2017 Ontario Economic Outlook and Fiscal Review, the Province is increasing the total OMPF envelope by $5 million beginning in 2018 to further support northern municipalities.

The OMPF, combined with the municipal benefit resulting from the provincial uploads, will total more than $2.6 billion in 2018, which is equivalent to 14 per cent of municipal property tax revenue in the province.

The details specific to your municipality’s 2018 allocation are outlined in the attached 2018 OMPF Allocation Notice and Inserts.

2018 OMPF

As you know, the OMPF was redesigned in 2014 following consultations with municipalities from across the province. Consultations with municipalities and the Association of Municipalities of Ontario (AMO) have continued over the past year and have focused on refining the program to ensure it meets the long-term priorities of municipalities.

The 2018 OMPF reflects the core objectives of the redesigned program, while balancing the range of views expressed by municipalities through this year’s consultations.

  • The 2018 program will further target support to municipalities with more challenging fiscal circumstances by increasing the Northern and Rural Fiscal Circumstances Grant to $89 million from $82 million in 2017.
  • The Northern Communities Grant component of the OMPF program will be enhanced to $89 million in 2018, an increase of $5 million over 2017, to further recognize the challenges of northern municipalities. This builds on the enhancement provided to northern municipalities in 2016.
  • The Rural Communities Grant, which continues to support rural communities across the province, will total $150 million in 2018. The farm enhancement of the Rural Communities Grant will grow from $10 million in 2017 to $15 million in 2018 to further support municipalities with the highest levels of farm land.
  • As in prior years, the 2018 minimum funding guarantee for municipalities in southern Ontario will be at least 85 per cent of their 2017 OMPF allocation and for municipalities in northern Ontario will be at least 90 per cent of their 2017 OMPF allocation. Municipalities in all regions of the province with the most challenging fiscal circumstances will continue to have their funding enhanced up to 100 per cent of the prior year’s allocation.

More information on these changes can be found in the 2018 OMPF supporting materials.

2018 OMPF – SUPPORTING MATERIAL

In order to assist municipalities in understanding the OMPF and their individual 2018 allocations, the Ministry of Finance has prepared detailed and customized supporting documentation:

  1. 2018 OMPF Allocation Notice and Inserts
  2. 2018 OMPF Technical Guide
  3. Municipal Workbooks and Upload Benefit Report

A. 2018 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 2018. 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 2018 Upload Notice Insert.

B. 2018 OMPF Technical Guide

The 2018 OMPF Technical Guide provides information with respect to individual grant thresholds, parameters and data sources.

C. 2018 Municipal Workbooks and Upload Benefit Report

The 2018 OMPF Workbook and the 2018 Northern and Rural MFCI Workbook (if applicable) provide detailed calculations of the 2018 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 2018 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 2018 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/2018/

2018 PAYMENT SCHEDULE

The 2018 Cash Flow Notice identifies your municipality’s quarterly payment schedule. Payments will be processed at the end of January, April, July, and October 2018.

2018 REPORTING OBLIGATIONS

We would also like to remind you that municipalities are required to submit their 2017 Financial Information Return (FIR) to the Ministry of Municipal Affairs (MMA) by May 31, 2018.

Municipalities are also required to submit their 2018 tax rates through the Online Property Tax Analysis (OPTA) System or to MMA by September 30, 2018.

Payments for municipalities that do not meet these reporting obligations will be subject to holdback, beginning with the 2018 fourth quarterly payment, 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, I would like to thank our municipal partners and all municipalities that provided input on the development of the 2018 OMPF, particularly the Municipal Reference Group. I look forward to our continued collaboration.

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

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