Ontario Provides $500 Million in Funding Allocations to Municipalities

The Ontario government is providing municipalities with $500 million through the Ontario Municipal Partnership Fund (OMPF). The province is maintaining the overall structure of the fund, keeping a commitment made at the Association of Municipalities of Ontario annual conference in August 2020. Municipalities are being informed of their specific 2021 funding allocations on Thursday, October 29, 2020, which will provide much needed stability and support.

The OMPF is the Province’s main general assistance grant, used to support the local priorities and specific needs of 389 municipalities, with a special emphasis on northern and rural communities.

“Our government recognizes the importance of certainty and stability for municipalities, particularly in these challenging times. That’s why we are announcing the allocations for the 2021 OMPF today — consistent with our commitment last year to provide our partners with the information they need, when they need it to plan their budgets,” said Rod Phillips, Minister of Finance. “Our government will continue to work together with municipal governments to build a strong foundation for Ontario’s long-term economic recovery, and improve the quality of life for the people across the province.”

The 2021 OMPF  is also providing a $5 million enhancement to further support northern and rural municipalities. This includes a $3 million increase to the Northern and Rural Fiscal Circumstances Grant to provide additional support to those dealing with fiscal challenges and a $2 million increase to the Rural Communities Grant to further support rural municipalities with the highest levels of farmland.

Maintaining the existing funding envelope and structure of the OMPF program for 2021 fulfils a commitment made by Premier Doug Ford during the Association of Municipalities of Ontario’s annual conference in August 2020.

Quick Facts

• The OMPF recognizes the unique challenges of northern and rural municipalities, while targeting funding to those facing difficult fiscal circumstances. The program also supports areas with limited property assessment; and assists municipalities that are adjusting to year-over-year funding changes.
• The Ontario government, in partnership with the federal government, is providing up to $4 billion in one-time assistance to Ontario’s municipalities and transit systems as part of the Safe Restart Agreement.

Additional Resources

• Ontario Municipal Partnership Fund
• Ontario and Municipalities Work Towards a Strong Economic Recovery
• Safe Restart Agreement

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