Wellington North’s share of the Ontario Municipal Partnership Fund (OMPF) has decreased by five per cent for 2018.
New director of finance Adam McNabb presented a report to council on Dec. 4 indicating the 2018 allocation was down by $62,700.
“So as we move into the budget process, that’s going to put some strain on our finances for the coming year,” said Mayor Andy Lennox.
Councillor Steve McCabe asked about the reason for the decrease.
CAO Mike Givens said the township is no longer eligible for the assessment value fund due to growth.
The OMPF provides monetary support to municipalities based on a formula. This year, due to growth in assessment value, Wellington North’s assessment equalization grant was decreased from $87,400 to $0.
“That is the one component that has been on a state of decline since 2014. In 2014, it was $166,000 and it has been steadily deteriorating over the last few years, which brings us to 2018 which is unfortunately now nil,” said McNabb.
The rural communities grant increased by $38,700 to $955,900 and the northern and rural fiscal circumstances grant decreased by $14,000 to $361,100.
“The province really sees, as our assessed values go up, that we are increasingly wealthy as a community, even though that has no reflection on what cash people have to spend,” said Lennox.
“It’s just the property values have gone up so we are less eligible for funding.”
This is the first year the township has seen a decrease since at least 2015.
“Of the seven municipalities in Wellington County, only Minto and ourselves were getting any increases, the others were all swallowing a big hit,” said Lennox.
Council received the report for information. Councillor Sherry Burke was absent.
