Faced with debt or dissolving completely, Gibbons council says province’s review doesn’t tell the whole story

The mayor of Gibbons says the current council is working hard to address issues that led the province to determine the town was no longer financially viable.

The Town of Gibbons is set to vote on whether it should remain a heavily indebted municipality or dissolve into a hamlet of the nearby county, but its council says work is already being done to avoid the latter.

On June 24 and 25, eligible Gibbons electors among its approximately 3,200 residents will be asked to make their decision based on a financial viability review the province released Monday.

Should voters decide to remain a town, Alberta municipal affairs minister Dan Williams would give specific directions to Gibbons council to address the municipality’s debt – which reportedly hit its ceiling of $13 million earlier this year.

If the consensus is instead to dissolve, Williams would recommend it to the UCP cabinet for the final say. Gibbons would become a hamlet of Sturgeon County around Jan. 1, 2027 – but that date isn’t confirmed.

Gibbons’s mayor and council requested an expedited viability review in January amid “serious financial challenges.”

The province previously said Gibbons appeared to have overstated revenues in its 2025 operating budget, using cash reserves and borrowing to cover the outlying expenses. It also noted compliance issues in past financial audits, such as filing late.

“Many of the decisions contributing to the current financial position appear to have been made prior to the current council’s term,” the province’s report reads. “However, the town’s current financial condition reflects decisions made by the previous council and administration over many years, acting on behalf of the town.”

Gibbons Mayor Rick Henderson, however, says the province’s report does not acknowledge the town’s efforts to repay debt nor the loss of “local voice, local accountability, and the community’s ability to shape its own future” should it dissolve.

In a response to the province’s 51-page viability review, Gibbons council published “additional detail” for future voters, including updated administrative, strategic and financial plans that it says reflect the progress of the town.

“There must be acknowledgement of the viability report having too many inconsistencies and incorrect assumptions to be considered dependable for a decision of this magnitude,” Henderson wrote in his statement.

The report says “the Town strongly believes that Gibbons is viable and that the financial challenges facing the municipality can be overcome through disciplined financial management, legal collection of outstanding funds, expenditure reductions, reserve rebuilding, long-term tax planning, improved governance, and continued local accountability.”

Dissolving Gibbons would rid the town of a mayor, six local councillors, authority and representation, it added.

The province’s review suggested one current Gibbons councillor be instated in Sturgeon County’s government before a new municipal election in 2029 if they were to merge.

In a Thursday interview, Henderson said the town has already brought in experts to help get finances back on track. Staffing cuts saved $1.2 million already, he says, and council made $1.7 million in service adjustments.

“The average citizen most likely won’t see any difference out there,” he said.

The letter to the province asks that progress made in the 2026 budget, strategic plans, collections, compliance and long-term financial plan be considered with more weight.

The province told CTV News Edmonton it had received the town’s concerns about the review.

“The viability review was initiated and expedited at the request of the Town of Gibbons and conducted on an expedited basis to address urgent financial concerns,” municipal affairs press secretary Jack Alarie said in a statement.

“Throughout the process, the Town and Sturgeon County had multiple opportunities to participate, including submitting information, attending meetings with the ministry, and providing feedback on the draft report.”

Alarie said the final report was an “objective, factual and evidence-based” assessment of the town’s circumstances and aimed to outline the two options without recommending any specific outcome.

An information session for voters to discuss the viability report is set for 7 p.m. on June 10 at the Gibbons Community Cultural Centre.

The final decision will be made by Williams after considering both the results of the Gibbons vote and the viability review.

Gibbons is about 30 kilometres northeast of Edmonton.