MINTO – Town council here has expressed “grave concern” about the possibility of the provincial government reducing or eliminating the municipality’s future allotments under the Ontario Municipal Partnership Fund (OMPF).
A resolution passed on April 16 indicates the provincial grant of $1.63 million in 2019 is equal to nearly 34 per cent of the town’s municipal property tax revenue.
“A 33.96% increase in the municipal property tax rate would increase the municipal component of property taxes paid for an average household by $403 per year,” the resolution states.
Last December, the province announced it was reviewing the OMPF program, which provides annual funding allotments to municipal governments to help offset operating and capital costs.
Under pressure from municipal governments to provide information on 2019 allocations prior to setting budgets, finance minister Vic Fedeli, in a Feb. 13 letter, announced funding under the program would “remain virtually the same as in 2018.”
The letter indicates that while the review would continue, any changes would not take effect until the 2020 budget, and substantial advance notice would be provided.
“Municipalities were further advised that the overall spending envelope for the program would decrease, having a significant impact on future budgets and how funds are raised by municipalities as funding will be reduced by an unspecified amount,” states the motion, which passed unopposed at the meeting.
“If allocations to municipalities are reduced, councils will need to compensate with property tax increases or local service reductions.”
The resolution calls on the province to complete the OMPF review in an “expeditious” manner “as future financial consideration ensures municipal sustainability.”
Treasurer/acting clerk Gordon Duff noted the town’s resolution modeled on a similar resolution and request for support from the Municipality of Grey Highlands, where the 2019 OMPF allocation of around $1.1 million equalled just over 10% of the township’s municipal property tax revenue.
