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Municipal Operating Grant Formula

Budget 2013 announced the implementation of a new Municipal Operating Grant (MOG) formula. This new formula utilizes a municipality's or Inuit Community Government's number of occupied households from their 2011 Census and a Remoteness Index.

The Remoteness Index was developed by the Newfoundland & Labrador Statistics Agency as a means to measure a community's (municipality or Inuit Community Government) accessibility to various government and community services within the Province. Formally, this index measures how accessible/remote a community is through a weighted average of its proximity to a number of general services, as well as, through the estimated daytime population during normal work hours – both of these variables are created using advanced statistical techniques. A report completed by the Newfoundland & Labrador Statistics Agency further explaining how this index is calculated is available at Remoteness index information PDF.

The following steps can be used to calculate an eligible community's MOG allocation:

  1. Multiply the Remoteness Index assigned to the community by the number of occupied households in that community:
    (Remoteness Index) x (# households) = Result of Step 1
  2. 2. Do the same calculation above for all other communities with a population under 11,000 and add them together:
    (Calculation from step 1 for the 1st of 276 communities) + (Calculation from step 1 for the 2nd of the 276 communities)……+ (Calculation from step 1 for the last of the 276 communities) = Results of Step 2
  3. Divide the results of Step 1 by the results of Step 2:
    (Result of Step 1) / (Result of Step 2) = Step 3 Percentage
  4. Multiply the community's calculated percentage from Step 3 by the total budget allocation in that year:
    (Step 3 Percentage) x (Program Budget) = Community Allocation

It should be noted, however, that if the above calculation results in a community receiving less funding than it was allocated under the previous funding model, then the community's MOG will not change. There are no communities who will receive less funding under this new model.

A full listing of municipal operating grants by municipality is available at Allocation table by municipality PDF.

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