January 2019
OMPF Reductions and Allocation Notices

2019-01-03 10:54:03 AM

CATEGORIES: Planning, Finance

The Association of Municipalities Ontario (AMO) in late December announced that the Ministry of Finance sent a letter to Ontario’s heads of council and treasurers advising that the Ontario Municipal Partnership Fund (OMPF) will be reduced by an unspecified amount and that allocation notices for 2019 will be delayed. 

AMCTO joins AMO in cautioning the provincial government on such reductions as the OMPF is a critical source of funding for 389 of 444 municipalities across Ontario. In 2018, the OMPF provided $510 million in unconditional support from the province to local governments which uses an equalization approach to address challenges in rural and northern communities.

Delaying the announcement of OMPF cuts specifically will have both immediate and long term consequences for communities across the province. Immediate impacts include municipalities unable to make accurate 2019 spending decisions without the necessary information thereby delaying council budget planning. Long-term impacts include potential property tax increases or local service reductions in 2019 to compensate for the lack of funds. Rural and northern communities will specifically be impacted as these areas usually have low assessment growth and can least afford significant property tax increases. 

AMCTO will continue to monitor for developments on OMPF reductions and allocation notices. 

For more information, please see below:  

Financial Risks for Property Taxpayers and Municipal Budgets
Ontario Municipal Partnernship Fund (OMPF)


 


 


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