Province slashes municipal grant

The city will get about $3 million from the province for its Ontario Municipal Partnership Fund grant, according to the chair of the city's finance committee.

That falls about $1 million short of what was expected, Ward 11 Coun. Terry Kett said. Last year's grant was about $4 million, and the city was banking on the same amount this year.

Kett said he doesn't anticipate any significant impact on the overall budget, though.

“I don't think (an increase) is what council wants, and if we have to, we'll cut somewhere else,” he said.

That's not to say he isn't disappointed.

“I would like to see municipalities and the province sit down again and look at some kind of quid pro quo work and get us to the point where the province takes up certain costs, and we take up certain costs, so that we're not reliant on the province for these last-minute, year-end grants.”

In the grand scheme of things, the city is receiving about $35.5 million from the province for the 2012 budget. In addition to a decrease in the OMPF grant, there is less money for social programs, which are cost-sharing initiatives between the city and the province.

“The trouble with these grants, is it's a group of about six grants that are combined, and what we are worried about right now is our grants for our social programs, which have been reduced,” he said. “If the province cuts its funding to social program, it in effect means there is a cut to the level of service. We have to get out our pencils and find out what is the exact effect on these programs before we can go to council and say, 'here is the effect on our budget.'”

It will probably take the city about three more days to find out what the the exact impact will be, and Kett said he doesn't want to speculate about final numbers until it is finalized.

One thing is for certain, though, it will mean more work ahead, he said.

While waiting on word from the province about its OMPF grant, work was done to put together a list of options for council's consideration in case that funding should fall through. Those options and more will be presented to council, Kett said.

The city now has its year-end done, and there is a bigger surplus than had been anticipated, and that will help offset the decrease in the grant, Kett said. “There isn't a definitive number for the surplus, but “we know it's enough that it will help to some degree.”

There is an issue below the surface of the decrease in funding that Kett said needs to be addressed. The city should not have to rely on the province to fund any of its operations.

“To me, (these grants) are an embarrassment, and I find that if we looked at the cost of what the province is paying to give the city $35 million, how many staff members must they employ to do that,” he said. “This is a very poor use of taxpayers' money, and I'd like to see the provinces and the Association of Municipalities of Ontario sit down and work it out.”

Kett said he plans to bring forward a notice of motion to that effect.

A finance and administration committee meeting is scheduled for Feb. 21, and the city will release more information as it becomes available.

Posted by Arron Pickard