The province is making more money available so municipalities such as Chatham-Kent can modernize and improve their services.
The extra $143 million is available to all 444 municipalities to build smarter government while making sure vital programs and services will be there when local people need them.
The government said municipalities deliver a wide range of services that people rely on every day, like transit, water and wastewater, and parks and recreation.
"Municipalities are the level of government closest to the people, but every community is different - one size doesn't fit all," said Minister of Municipal Affairs and Housing Steve Clark. "This investment in communities will support municipal transformation efforts to make sure they are delivering efficient, effective and modern services that best meet the unique needs of their residents."
The 405 small and rural municipalities across Ontario will have access to an additional $125 million through 2022-2023 while the rest goes to the large urban centres. Chatham-Kent must apply for the funding.
The money will help conduct new service delivery reviews, implement recommendations from previous reviews and undertake a range of projects - such as IT solutions or process improvements.
The province said all applications will be reviewed on a case-by-case basis.
Ontario will also launch a consultation with municipalities about whether to align the municipal and provincial fiscal year and is proposing to eliminate duplication by combining the provincial and municipal voters lists, giving Elections Ontario the responsibility of managing the updated list and taking the burden off of municipalities.
"We are committed to helping and empowering municipalities to become more efficient and effective, so they can make every dollar count," said Clark. "This investment supports the province's commitment to reduce the cost of government while maintaining quality services the people of Ontario expect from all levels of government."
