01/23/2012


Issue:  The Ministry of Finance is today confirming individual municipal allocations for 2012.

Background:
The provincial government has announced Ontario Municipal Partnership Fund (OMPF) allocations to eligible municipalities. Letters to heads of council and treasurers are being mailed at this time.

The OMPF is a critical provincial funding program which assists municipalities with social program costs, equalization, policing costs, and has a northern and rural communities component. For 2012, 373 municipalities will receive $583 million in OMPF funding. Some data elements and thresholds have been updated but the OMPF formula remains as it did for 2011.

The anticipated value of the social assistance and court security uploads for 2012 is $1.22 billion.  This amount is up $279 million from $947 million in 2011. These costs were previously the responsibility of municipalities and property taxpayers.

Transitional Assistance (formerly known as mitigation) will total $15 million, down $5 million from 2011. It will be distributed to 46 municipalities. Last year’s allocation assisted 74 municipalities. The Province advises that this reduction is reflective of the increase in the number of municipalities receiving funding at or close to actual OMPF entitlements.

Transition Assistance for northern Ontario municipalities will remain at 95% of the prior year’s Combined Benefit. For southern Ontario municipalities it will remain at 90% of the prior year’s Combined Benefit.

AMO awaits further details regarding the reconciliation of 2010 OMPF allocations. Reconciliation adjusts municipal OMPF allocations for the difference between projected and actual social assistance and policing costs.

Some municipalities have not completed Financial Information Returns (FIRs) for 2010. This is a requirement to receive OMPF funding.  Municipalities with outstanding FIRs are encouraged to complete them as soon as possible. In the meantime, these municipalities will be provided preliminary OMPF allocations but payments will continue to be held back.