For Immediate Release                                                            

February 2, 2006

KINGSTON AND THE ISLANDS TO RECEIVE $6,746,272

IN PROVINCIAL FUNDING FOR 2006

Ontario Municipal Partnership Fund Targets Communities With Greatest Needs

KINGSTON - Under the Ontario Municipal Partnership Fund (OMPF), and with a one-time assistance grant Kingston will be receiving $6,559,000 for 2006. This is $250,000 higher than the province agreed to provide last year to the city. Frontenac Islands will be also be receiving $187,272 for 2006, an increase of $6,072 over last year announced MPP for Kingston and The Islands and Minister of Municipal Affairs and Housing John Gerretsen. 

A total of $707 million is being provided to municipalities through OMPF in 2006, a $51 million or 7.7 per cent increase over 2005.

“The Ontario government has listened to the concerns of municipalities and, despite its own fiscal challenges, one-time special assistance is being provided so that no municipality will receive less funding in 2006 than it did through OMPF in 2005,” said Gerretsen.

The OMPF assists municipalities with their share of social program costs; supports areas with limited property assessment; addresses challenges faced by northern and rural communities; and responds to policing costs in rural communities.

“The Ontario Municipal Partnership Fund is a fair, responsive and transparent system of grants that provides similar funding to municipalities in similar circumstances,” said Finance Minister Dwight Duncan. “It is an example of a new and evolving program that contributes to our commitment to strengthening our communities.”

The OMPF Fund replaced the Community Reinvestment Fund in 2005 as the province's primary transfer payment to municipalities.  In 2006, it will provide funding to 391 municipalities or 88 per cent of all municipalities in the province.

All four grants within the OMPF have been increased as follows:

•  The Social Programs Grant rises from $179 million to $184 million

•  The Equalization Grant rises from $170 million to $197 million

•  The Northern and Rural Communities Grant rises from $249 million to $260 million

•  The Police Services Grant rises from $58 million to $66 million

The OMPF is part of a larger government commitment to strengthen Ontario communities along with other initiatives such as:

• Providing $298 million toward the $900 million fund for the Canada Ontario Municipal Rural Infrastructure Fund

•  Delivering more than $1 billion in provincial gas tax revenues to municipalities over five years.

•  Increasing the provincial share of public health to 75 per cent by 2007.

•  Assisting more than 170 municipalities with up to $2.2 billion in low-cost, longer term loans, for more than 1,100 local projects, through the Ontario Strategic Infrastructure Financing Authority.

“We are working with municipalities to improve the quality of life for all Ontario citizens,” said Gerretsen.

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