Image of Quinte West Town Hall by Jason Hagan

Ontario Municipal Partnership Fund

Backgrounder August 06, 2021

Municipal Implications

The Ontario Municipal Partnership Fund (OMPF) provides unconditional operating support from the Province to municipal governments. It uses an equalization approach to address challenges in rural and northern communities, with funding based on various community fiscal health indicators.

In 2020, the total funding envelope was decreased by $5 million to $500 million. This reduction came from the Transition and Stabilization Grant component in keeping with recent practice. In 2021, the OMPF remains at $500 million, but the specific funding allocations have changed. The Transitional and Stabilization Grant component has been reduced by $5 million, the Rural Communities Grant component has been increased by $2 million, and the Northern and Rural Fiscal Circumstances Grant component has been increased by $3 million.  

AMO will continue to advocate for stable OMPF funding envelope and allocations to recipient municipalities which reflect local economic and fiscal circumstances.

Background

OMPF funding supports local front line services in 389 municipalities across Ontario. OMPF reductions can have a big impact on local property tax rates or service levels. For example, a 1% property tax increase raises just $50,000 for almost half of Ontario’s municipal governments.

The Ministry of Finance continues to hold annual meetings with municipal treasurers to discuss the future of the Fund, its design, and ongoing evolution. These deliberations have helped to inform some of the Province’s funding decisions.

Historical OMPF Allocation (in millions of $):

Component

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Social Services Grant

25

0

0

0

0

0

0

0

0

0

Policing Grant

94

0

0

0

0

0

0

0

0

0

Farmland and Managed Forests Grant

46

0

0

0

0

0

0

0

0

0

Assessment Equalization Grant

147

0

149

149

149

149

149

149

149

149

Northern Communities Grant

86

0

79

79

84

84

89

89

89

89

Rural Communities Grant

162

0

138

138

143

148

150

150

150

152

Northern and Rural Fiscal Circumstances Grant

0

0

50

55

 67

82

89

89

89

92

Transitional and Stabilization Grants

38

0

134

94

61

41

33

28

23

18

TOTAL OMPF

598

575

550

515

505

505

510

505

500

500

Contact:

Craig Reid
Senior Advisor