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Ontario wants to better focus municipal funding, look at property tax system

OMPF is the main transfer payment from the province. It goes into general revenues and is used to offset operating costs
money

The Ontario Municipal Partnership Fund (OMPF) is the main provincial funding for municipalities, set at $500 million for 2021, but it wants to see expenses better focused in future.

In an announcement Monday, the province said it will also review of the province's property tax system.

Rod Phillips, Minister of Finance, committed to maintaining the OMPF at the Rural Ontario Municipal Association (ROMA) annual conference while announcing consultations on next year's program to ensure the funding is better focused to deliver results for small, northern and rural municipalities.  

ROMA is the representative voice for rural municipal government in Ontario and advocates for provincial policies and programs that support the vitality and long-term prosperity of Ontario’s rural communities.

"Municipalities told us how vital the OMPF is to their communities and they need information sooner to plan their budgets," said Phillips. "That's why we announced allocations for 2020 earlier than ever before, and why we're committing today to maintain the funding envelope for next year."

He says moving forward, the province will consult with municipalities on how to better focus the OMPF on communities that need it most, including small, northern and rural municipalities.

“We’re appreciative of this announcement by the province," Mayor Al McDonald told BayToday. "This provides more predictable and stable funding, helping us to better plan our 2021 budget process. This funding will continue to help offset our operating costs and help reduce the tax burden on North Bay residents.”

Ontario is also looking at the province's property tax system to enhance the accuracy and stability of property assessments.

Municipalities rely on the more than $22 billion annually raised through the property tax system to fund local services. Phillips says the government will work with municipal partners to ensure vital services are supported while building a competitive business environment that will attract investment and create jobs. Property tax is the main revenue source for municipalities.

The Province will distribute $500 million to 389 municipalities across Ontario through the OMPF in 2020, to support local priorities in each community.

In October 2019, the government announced 2020 OMPF allocations, providing municipalities with detailed funding information

The main objectives of the OMPF are:

  • recognize the challenges of small, northern and rural municipalities, while targeting funding to those with more challenging fiscal circumstances.
  • support areas with limited property assessment.
  • assist municipalities that are adjusting to year-over-year funding changes.

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Jeff Turl

About the Author: Jeff Turl

Jeff is a veteran of the news biz. He's spent a lengthy career in TV, radio, print and online, covering both news and sports. He enjoys free time riding motorcycles and spoiling grandchildren.
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