November 20, 2017

Today, the Ministry of Finance issued 2018 allocation notices from the Ontario Municipal Partnership Fund (OMPF). The total funding envelope to municipalities will be increased by $5 million to $510 million. We understand that this is a permanent increase to OMPF for 2018 and beyond.

Letters to heads of council and treasurers are being sent at this time. Allocation notices may also be viewed on the Ministry’s website - see link to the left.

The 2018 OMPF attempts to balance the range of views expressed by municipalities through the 2017 consultation process, while reflecting the objectives and principles of the program. Specifically, the key aspects of the 2018 funding announcement are:
  • Increase targeted support to municipalities facing more challenging fiscal circumstances by providing an additional $8 million through the Northern and Rural Fiscal Circumstances Grant.
  • Recognize the challenges of rural farming communities with the highest levels of farmland by providing an additional $5 million through the Rural Communities Grant.
  • Maintain minimum funding guarantees to provide continued stability (i.e. 85 per cent of 2017 allocation in the south, 90 percent in the north).
  • An additional $5 million to be provided through the Northern Communities Grant component to further support northern municipalities, as announced in the 2017 Ontario Economic Outlook on November 14, 2017.

This is a chart of historical Ontario Municipal Partnership Fund (OMPF) Allocations by Grant (in millions of $) over time, i.e. 2012 to 2018.

The Ministry’s changes for 2018 demonstrate a continued effort to distribute OMPF allocations based on need and the specific fiscal challenges of different types of municipalities. The remaining transitional and stabilization grants are an integral part of the overall envelope in future years. There remains an enduring need for a strong equalization program across the province.

2018 marks the full implementation of the upload of social assistance benefit costs and court security and prisoner transportation costs (up to $125 million annually) from the property tax base as agreed to under the 2008 Provincial Municipal Fiscal Service Delivery Review agreement. The 2018 Upload Benefit to municipal governments is $ 2.1 billion.