People living in the town of Gibbons, about 30 kilometres north of Edmonton, are preparing to vote on whether the municipality should remain an independent town or dissolve and become a hamlet within Sturgeon County.
This viability vote follows months of debate and uncertainty over the town’s financial future.
After last fall’s municipal election, new councillors in the town of Gibbons started the job dealing with an unexpected debt load of $15.3 million.
In February, the council notified its residents that it was at risk of insolvency.
Earlier in the year, Gibbons requested Municipal Affairs conduct a viability review to determine whether it would be able to keep its town status.
This month, the Alberta government released the report, suggesting residents could face a tax increase between 30 and 42 per cent, depending on the scenario.
In an interview ahead of the vote, two members of the town council pushed back, saying those figures were based on outdated information and are creating unnecessary concern among residents.
They strongly argued that Gibbons has made significant financial progress and remains viable as a municipality.
“We were on life support, and we managed to get through everything,” town councillor Darrel Burak told Global News.
“Graciously, the provincial government had given us a $500,000 Alberta Community Partnership grant. We’ve not even touched it.
“We’ve fought the battle, and we’ve done it in-house with no help.”
Burak defended its 8.2 per cent property tax increase, saying it helps balance the budget, and it’s far less severe than the estimates in the province’s viability review report.
He adds that town officials worked hard to improve the town’s finances through staffing cuts, operational changes and tighter spending.
Some of the services taking a hit are grass cutting, road painting and pothole maintenance, as well as the arena’s operating schedule — going forward, it’ll only be open during the winter months instead of year-round.
“We’ve right-sized. We’ve done all the things that we need to do that we feel that our service reduction is barely even noticeable,” Burak said.
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He claims they have already saved $1.2 million and are putting money into reserves.
Coun. Sharla St. Germain adds that residents are stepping up to fill some of the service voids.
“It was more cosmetic things, like we don’t have flowerpots all around the town,” she told Global News.
“Then, the citizens stepped up and were sponsoring flowerpots, and they go water them.
“We have a great community and we’re really lucky to live here.”
Both councillors argued that becoming a hamlet would result in a loss of local autonomy.
They noted that both Sturgeon County and the province have indicated there would be no financial bailout for Gibbons’ debt, leading council members to question the benefits of dissolution.
“Our debt is not going to be coming on the backs of taxpayers of Sturgeon County — so why would you want to lose your autonomy, lose everything that you’ve got, and have someone else dictate on how you’re going to spend?” Burak said.
“It’s hard on our residents just not knowing,” St. Germain added. “I feel like we have a clearly defined plan, a multiple-year plan.”
In a statement, Sturgeon County says it will welcome the town if the province decides that Gibbons will need to become a hamlet.
“As constructive partners in this process, the County is prepared to work with the province to support a fair and sustainable outcome that protects residents and maintains regional stability in line with Alberta’s legislative processes. This includes participating in an orderly dissolution and integration process, as outlined as one option in the report, if that is the decision of the Government of Alberta,” a spokesperson with the county said in a statement.
The county admits that it has its own financial realities and taking on Gibbons would have implications for resident taxpayers.
“If Gibbons does dissolve, it will come with significant debt (estimated at upwards of $13 million), serious and costly infrastructure challenges (estimated at upwards of $20 million), and a range of complex service‑delivery considerations. At the same time, it is our understanding that the province provides less than $2 million in total transition funding to support dissolution, and that those limited dollars must be directed toward Gibbons‑specific transition needs rather than the broader, long‑term impacts on County taxpayers,” the county said.
“In light of the unprecedented nature and scale of this situation, and given the substantial gap between the province’s limited transition funding and the actual fiscal and infrastructure pressures that would be assumed, the County expects that any integration of Gibbons into Sturgeon County will be supported by meaningful and appropriate provincial assistance that reflects the true fiscal and community impacts.”
The Alberta government said it respects the role of local councils and residents in decisions about their communities’ future.
The province said the viability review process is designed to give them clear, objective information for informed decision-making.
“The review was initiated at the Town of Gibbons’ request and expedited to address urgent financial concerns,” said a statement from Municipal Affairs.
“Throughout, the town and Sturgeon County had multiple opportunities to participate—submitting information, attending meetings, and providing feedback on the draft. Local councils may have additional information or alternative approaches they wish to present to their residents, and we encourage open discussion as part of the process.”
“Ultimately, the vote is a chance for Gibbons residents to have their say, and Alberta’s government is committed to a fair, transparent, and accessible process.”
Following the vote, town officials hope results will be available by Friday.
However, the outcome is non-binding. The provincial government ultimately has the authority to make the final decision on Gibbons’ future status.
Despite that uncertainty, council is encouraging residents to participate and make their voices heard.
— with files from Katherine Ludwig, Global News
