Gibbons viability review raises concerns in Sturgeon County

The county that may absorb the financially crumbling town of Gibbons says an expedited viability review process does not fit the unprecedented situation the municipalities find themselves in.

"We're being constrained within a regulatory framework that does not meet the current situation," Sturgeon County Mayor Alanna Hnatiw said at a council meeting on March 10.

While viability reviews are relatively common in Alberta — four are underway right now, and four others were completed in 2025 — they're usually done for smaller municipalities. Kevin Miller, the manager of municipal viability at the Ministry of Municipal Affairs, confirmed to Sturgeon County council that the other three municipalities currently under review are all villages with fewer than 500 people. But Gibbons, a town with a population of about 3,200, is too large to be adequately dealt with in this way, Hnatiw said.

The provincial government provides funding for counties that absorb municipalities as hamlets, but the amount is calculated based on population and caps out at 500 people. If Gibbons dissolves and becomes a hamlet within Sturgeon County, the county could receive $450,000 to integrate town governance, administration, and services. It could also receive up to $1.5 million to ensure critical infrastructure can continue operating during the transition.

Given that Gibbons is nearly seven times the size of other municipalities undergoing review, Hnatiw asked Miller "to keep that in mind when you're considering what type of financial supports need to be offered, both for the current council who's trying to dig their way out of this, and potentially for the receiving council that has no say."

Hnatiw noted Gibbons underwent a legislative compliance check in 2025, which found several gaps. For example, budgets did not include correct financial information, and some projects or purchases weren't included in budgets at all; the town's financial plan didn't include the annual surplus or deficit, nor the accumulated surplus or deficit, and its capital plan didn't include anticipated sources of revenue; the town had loaned money to 18 homeowners to replace sanitary sewer lines and to 13 homeowners to pave or remediate driveways; council members or administration cancelled meetings by email instead of holding an official council vote; and, at times, councillors failed to declare the nature of a pecuniary interest or conflict of interest.

"There was reporting in 2024 that showed cash-flow negatives, in 2025 a legislative compliance review, and now here we are with a rushed viability plan, because there isn't time to do the homework that should have been done for several years prior," Hnatiw said.

Miller told Sturgeon County council that viability reviews normally take between 12 and 18 months, but the review of Gibbons is expected to be finished in five months. As a result, the ministry doesn't have time to do an infrastructure audit in Gibbons, he said.

Miller said Gibbons's financial situation was so dire that it required immediate attention. The town's interim chief administrative officer, Tim Duhamel, said in February that the town had four or five weeks of cash remaining before it would be unable to meet payroll or other obligations.

"The receiving municipality has no say in the matter, we've had concerns for several years, and now the viability review is being done in a very rushed manner," Hnatiw said. "I and many of the county residents feel like we're going to be left holding the bag."

Miller said the review will take into account what information is available about the town's infrastructure and, in the future, the ministry could choose to fund an audit outside of the viability review.

The ministry aims to hold the dissolution vote in June, before summer vacation, and over two days so as many electors as possible can participate.

Hnatiw said municipalities are facing more challenges due to increasing populations and the downloading of provincial responsibilities, and asked if the ministry would consider restructuring the viability review process.

One part of Premier Danielle Smith's mandate letter to Municipal Affairs Minister Dan Williams directs him to examine the viability and sustainability of communities, and to look at how the ministry can support municipalities to deliver services in a stable and efficient manner, Miller said.

"I know we are looking to municipal sustainability at this point in time, though there's no other information that I would be able to share, other than it is an active topic that is being examined," Miller said.

Gibbons council is set to hold a special meeting on March 23 to discuss its 2026 operating and capital budgets.