: Ontario Municipal Partnership Fund (OMPF)

 

2018 OMPF

Overview

The OMPF is the Province’s main transfer payment to municipalities. In 2018, the Province will provide a total of $510 million in unconditional funding to 389 municipalities through the OMPF. This includes an additional $5 million in funding through the Northern Communities Grant to further support northern communities, as committed through the 2017 Ontario Economic Outlook and Fiscal Review.

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

OMPF Review and Redesign

The OMPF was redesigned in 2014 following consultations with municipalities from across the province. A key component of the redesigned OMPF is that it better targets funding to northern and rural municipalities with challenging fiscal circumstances.

The program is comprised of four core grant components as well as Transitional Assistance that reflect the following objectives:

  • support areas with limited property assessment;
  • 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.

What’s New for 2018

In 2017, the Ministry of Finance has continued to consult with the Association of Municipalities of Ontario (AMO) and other municipal representatives on refining the design of the program to ensure it meets the long-term priorities of municipalities and targets funding to northern and rural municipalities with challenging fiscal circumstances.

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. Specifically, the 2018 program will:

  • Increase targeted 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.
  • Further recognize the challenges of northern municipalities by enhancing the Northern Communities Grant to $89 million, an increase of $5 million over 2017. This builds on the enhancement provided to northern municipalities in 2016.
  • Continue to support rural communities across the province through the Rural Communities Grant, which 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.
  • Provide a guaranteed minimum level of funding in order to help municipalities as they adjust to the redesigned program. The 2018 funding guarantee for municipalities in southern Ontario is at least 85 per cent of their 2017 OMPF allocation and for municipalities in northern Ontario is at least 90 per cent of their 2017 OMPF allocation. These minimum levels of support are further enhanced up to 100 per cent for municipalities with the most challenging fiscal circumstances.

Provincial Uploads

In 2018, the Province will have fully implemented its commitment to upload social assistance benefit costs as well as court security and prisoner transportation costs from the property tax base, as agreed with municipalities in 2008. The benefit of the uploads will continue to grow for municipalities as the Province continues to assume future growth in the cost of the uploaded programs.

In 2018, the Province will have fully uploaded municipal costs for:

  • Ontario Works (OW) benefits;
  • Ontario Drug Benefit (ODB) costs;
  • Ontario Disability Support Program (ODSP) administration costs;
  • ODSP benefits; and
  • court security and prisoner transportation costs (up to $125 million annually).

Furthermore, the Province will make available $216 million in additional support for municipal OW administration costs.

2018 Upload Benefit to Municipalities
Program 2018
ODB Upload $273 million
ODSP Administration $85 million
ODSP Benefits $927 million
OW Benefits $485 million
Court Security and Prisoner Transportation $125 million
OW Administration additional support $216 million
Total Upload Benefit $2.1 billion

For additional details regarding the Provincial-Municipal Fiscal and Service Delivery Review (PMFSDR) report, see http://www.mah.gov.on.ca/Page181.aspx .

These uploads have ensured that more property tax dollars are available for important municipal priorities, including investments in infrastructure.

2018 Combined Benefit

Since 2009, support provided to municipalities has been calculated as a combination of both the OMPF and provincial uploads.

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.

  • OMPF support of $510 million; and
  • the upload of over $2.1 billion in social assistance benefit costs and court security and prisoner transportation costs.

The government’s commitment to the provincial uploads means that overall support to municipalities will continue to increase.

2018 Combined Benefit Compared to Prior Years
  2004 2017 2018
CRF/OMPF $618 million $505 million $510 million
Provincial Uploads   $1.9 billion $2.1 billion
Combined Benefit $618 million $2.4 billion $2.6 billion
Year-over-Year Increase
$200 million
Increase Since 2004 $2 billion

Ongoing Support to Municipalities

In 2018, municipalities will benefit from more than $4.2 billion in ongoing support through the OMPF, provincial uploads, and other provincial initiatives — nearly four times the level provided in 2003.

For 2018, the total ongoing provincial support, in addition to the combined benefit of OMPF and uploads, includes:

  • $546 million in funding to support 50:50 cost sharing of land ambulance costs;
  • $568 million in public health funding for mandatory programs and the vector-borne diseases program, which includes the upload of public health costs from 50 per cent in 2004 to 75 per cent in 2007. This funding is part of the total $701 million in public health funding the Province provides for these programs and related support;
  • $334 million in provincial gas tax funding for the 2016–17 program year; and
  • Funding to small, rural and northern municipalities through the permanent Ontario Community Infrastructure Fund (OCIF), including:
    • about $130 million in OCIF formula funding in 2018; and
    • an intake of $100 million under the OCIF top-up application component in 2018.
Chart: Ongoing Support to Municipalities Continues to Increase $1.1 billion in 2003 - $4.2 billion by 2018

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Source: Provincial-Municipal Fiscal and Service Delivery Review: “Facing the Future Together” (October 2008); adjusted to reflect updated projections and funding announcements (e.g., Ontario Community Infrastructure Fund).

Additional Information

For additional information or for other general inquiries about the program, email your query and contact information to: info.ompf@ontario.ca

Graphic Descriptions

Ongoing Support to Municipalities Continues to Increase $1.1 billion in 2003 - $4.2 billion by 2018

This table shows provincial support to municipalities has continued to increase since 2003. The ongoing provincial support to municipalities was $1.1 Billion in 2003 and is projected to reach $4.2 billion by 2018.

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