PREP and COLA

PREP - Private Road Equalization Program; and

COLA - Cost of Living Adjustment

Road Associations face constant challenges to maintain their private roads, particularly in terms of snow removal and of course filling potholes. Although waterfront property owners represent substantial tax revenue for the municipalities, none of these monies are spent on private roads.

MLA was instrumental in seeking financial assistance from Beckwith Township in 2008. MLA, through the Private Roads Committee and Municipal Relations Committee, continues to engage both Beckwith Township and Drummond/North Elmsley Township, to recognize the need to support Road Associations through financial assistance. Two very important means of providing this assistance are PREP and COLA.

jump to COLA

Private Roads Equalization Program - PREP

Recent developments

A little under half of the private road residents around Mississippi Lake are located in Beckwith Township, and PREP is an active and welcome subsidy for them.

However, almost an equal number of the lake community residents live in Drummond / North Elmsley Township, where no PREP program exists. In the past few years, MLA has been working hard to promote a program in DN&E similar to the Beckwith PREP. View the following Oct 2018 Report as well as the Minutes of the meeting with Road Associations on 8 Aug 2023 for an update on the status of PREP discussions with Beckwith and Drummond / North Elmsley Townships.

Current status

For Beckwith - the PREP program is active. The Township promulgates an annual notice to the RAs every autumn. However, a surprising number of Road Associations do not take advantage of this benefit.

If your Road Association is not participating in PREP, you are losing out!

If the Township is not sending your RA the annual notice for application, you should contact the Township and rectify this oversight.

For D&NE - MLA is continuing its engagement with the municipality, with support from the lake community, to introduce a PREP program.

Background

It all started with the Private Roads Study Group Report - 2008 which recommended that Beckwith Township implement an "Equalization Program" to provide financial assistance to residents of private roads. To its credit, Beckwith Council initiated their Private Roads Equalization Program - PREP, starting in autumn 2009.

COLA

Cost of Living Adjustment - COLA

Background

Beckwith Township introduced PREP in 2009 with specified levels of support for each RA based on the 2009 budget. These levels have not changed over the years, therefore have not been adjusted for increases in the cost of living. As a result, as costs of materials and services have increased due to inflation, the relative benefit of PREP payments has eroded over time.

Whereas the tax base has increased since 2009, this increase in revenue, paid in part by private road dwellers is not reflected in the PREP contributions. The proposed solution is to increase PREP payments with an cost of living adjustment (COLA) that matches the inflation rate.

Recent developments

MLA has engaged Beckwith Township with a view to introducing COLA as part of the PREP program. In March 2025, Beckwith Council passed a motion to apply COLA at the same rate as this year's tax increase.

Current status

The autumn 2025 Beckwith PREP program will a COLA component. As at April 2025, the COLA for 2025 is projected to be 4%, but that is subject to the final decision (not yet rendered) regarding the tax rate increase.