Gibbons faces viability review as town grapples with insolvency
We notice the provincial government has launched an expedited viability review for the Town of Gibbons, meaning residents will vote on whether it will stay a town or dissolve and become a hamlet in Sturgeon County.
The town is in a financial crisis. Interim chief operating officer Tim Duhamel told CBC Edmonton that the situation should have been addressed five years ago. "The town is essentially insolvent. There's no cash in reserves, the bank accounts were depleted, we're at maximum debt capacity," he said. While the viability review will assess the town's long-term sustainability, the town has taken short-term steps. In December, a provincially appointed official administrator helped council build interim capital and operating budgets. Council also passed a moratorium on new capital projects except for those required for health, safety, or regulatory compliance, or if a contract is in place. The town is receiving some financial help from the province to help it manage immediate cash-flow pressures. It has also laid off staff, frozen non-essential spending, and initiated a line-by-line budget review.
While residents won't vote on dissolution until the review is complete, the municipality has launched an informal public opinion survey. Meanwhile, the town has started talks with Sturgeon County about potentially transferring fire services and family and community support services to the county, as well as other arrangements. Sturgeon County is participating in the review and says it will assess how services would be delivered if Gibbons became a hamlet. "Sturgeon County also has its own financial realities and pressures to manage, and any potential change in municipal boundaries or responsibilities introduces additional risk to the county's fiscal position and service delivery," the county said in a statement.
