Alberta conducting review of Gibbons following years of financial challenges

The town of Gibbons is getting provincial support after it reached its debt ceiling and drained its reserves.

The Town of Gibbons in central Alberta will be under review by the province following several years of financial and governance challenges.

Minister of municipal affairs Dan Williams spoke with the mayor and council on Friday to discuss the town’s request for an expedited viability review which was submitted in January.

A viability review evaluates the long-term viability of the municipality and determines next steps which could include raising property taxes or dissolving the town to its partner county.

Gibbons councillor Ashley Morrison said those decisions would be put to the residents.

Williams said the province has taken several steps to support Gibbons, including appointing an official administrator to provide oversight and advice, extending the municipality’s debt limit and providing a $500,000 grant through the Alberta Community Partnership program.

“Our meeting also focused on the path forward for Gibbons and the steps being taken to stabilize the municipality’s finances, restore legislative compliance and ensure core services for residents continue during the review process,” said Williams in a statement.

“The town is facing serious financial challenges that have developed, and Alberta’s government is providing support to ensure the town can continue to provide core services until the review is completed.”

In December, Gibbons indicated it was facing operating deficits, depleted reserves, rising debt pressures, late financial reporting and other challenges from past financial decisions. The town formally requested assistance from the province in January.

“We didn’t get here overnight,” said Morrison. “This occurred over an extended period of time … over the course of the last five or seven years.”

Gibbons is at its allowed debt ceiling of $13 million and its reserves are depleted, added Morrison.

The province said it appears that Gibbons reported overstated revenues in its 2025 operating budget and that its cash reserves and borrowing capacity were used to cover operating expenses.

Operating deficits from 2020 to 2025 also do not appear to have been disclosed in municipal budgets.

Morrison said it’s been overwhelming for her and the other six newly elected councillors and mayor.

“There has been a lot to digest and to unpack in two months,” she told CTV News Edmonton. “We’re actively working very hard to remain a municipality, because that’s what we’re hearing from residents at this point in time.”

She said they are also working on providing a full overview of the potential of becoming a hamlet of Sturgeon County.

Gibbons is about 30 kilometres northeast of Edmonton.

With files from CTV News Edmonton’s Evan Kenney