: Ontario Municipal Partnership Fund (OMPF)

 

2017 OMPF

Overview

The OMPF is the Province’s main transfer payment to municipalities. In 2017, the Province will maintain OMPF funding at $505 million, which will provide unconditional support to 388 municipalities across the province.  The Province will continue to provide unconditional funding in 2017 and beyond.  The OMPF, combined with the municipal benefit resulting from the provincial uploads, will total over $2.4 billion in 2017.  This is nearly four times the level of funding provided in 2004.

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 2017

In 2016, 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.

The 2017 OMPF reflects the core objectives of the redesigned program, while balancing the range of views expressed by municipalities through this year’s consultations. 

The 2017 OMPF further targets support to municipalities with challenging fiscal circumstances by increasing the Northern and Rural Fiscal Circumstances Grant to $82 million from $67 million in 2016.  This is an increase of over 20 per cent to this grant component.  This means that municipalities with challenging fiscal circumstances will see their funding through this component of the grant increase in 2017.

In addition, the program enhances the Rural Communities Grant to $148 million from $143 million in 2016, with this funding targeted to rural municipalities across the province with the highest levels of farm land.  This funding increase builds upon the funding enhancement introduced last year to recognize the particular challenges of these municipalities.

Finally, the 2017 OMPF provides a guaranteed minimum level of funding in order to help municipalities as they adjust to the redesigned program.  The 2017 minimum funding guarantee for municipalities in southern Ontario is at least 85 per cent of their 2016 OMPF allocation and for municipalities in northern Ontario is at least 90 per cent of their 2016 OMPF allocation.

  • These minimum levels of support will be further enhanced up to 100 per cent for municipalities with more challenging fiscal circumstances.

Provincial Uploads

The 2016 Ontario Budget confirmed that the government will continue to fulfil its commitment to upload social assistance benefit programs as well as court security and prisoner transportation costs off the local property tax base, as agreed with municipalities in 2008. These uploads will be fully implemented by 2018.

In 2017, the Province will continue to deliver on its commitment to the phased upload of:

  • Ontario Works (OW) benefits; and
  • 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 make available $219 million in additional support for municipal OW administration costs.

As a result of the uploads, municipalities will benefit from more than $1.9 billion in reduced costs in 2017 alone.

2017 Upload Benefit to Municipalities
Program 2017
ODB Upload $251 million
ODSP Administration $85 million
ODSP Benefits $884 million
OW Benefits (86% uploaded in 2017) $408 million
Court Security and Prisoner Transportation (86% uploaded in 2017) $107 million
OW Administration additional support $219 million
Total Upload Benefit $1.9 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.

2017 Combined Benefit

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

In 2017, the Province will provide municipalities with a combined benefit of over $2.4 billion — nearly four times the level of support provided in 2004. The combined benefit includes:

  • OMPF support of $505 million; and
  • the upload of over $1.9 billion in social assistance benefit program 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.

2017 Combined Benefit Compared to Prior Years
  2004 2016 2017
CRF/OMPF $618 million $505 million $505 million
Provincial Uploads   $1.8 billion $1.9 billion
Combined Benefit $618 million $2.3 billion $2.4 billion
Year-over-Year Increase
$100 million
Increase Since 2004 $1.8 billion

Ongoing Support to Municipalities

In 2017 alone, municipalities will benefit from more than $4 billion in ongoing support through the OMPF, provincial uploads, and other provincial initiatives — an increase of $2.9 billion from the level provided in 2003.

For 2017, 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;
  • $332 million in provincial gas tax funding for the 2015–16 program year; and
  • funding to small, northern and rural municipalities through the permanent Ontario Community Infrastructure Fund (OCIF), including:
    • about $95 million in OCIF formula funding in 2017; and
    • an intake of $100 million under the OCIF top-up application component in 2017.
Chart: Ongoing Support to Municipalities Continues to Increase $1.1 billion in 2003 - $3.8 billion by 2016

Accessible description of chart

Source: Provincial-Municipal Fiscal and Service Delivery Review: “Facing the Future Together” (October 2008). Note that the graph has been adjusted to reflect: the OW administration funding model announced in 2011; the phase-out of Toronto Pooling Compensation; the phase-down of the OMPF to $505 million; the Ontario Community Infrastructure Fund announced in 2014, which is being expanded to $300 million per year by 2019; 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

 

Graphic Descriptions

Ongoing Support to Municipalities Continues to Increase $1.1 billion in 2003 - $4 billion by 2017

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 Billion by 2017. 

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