“Albertans rely on their municipalities to deliver essential services and manage public dollars responsibly. The province is working closely with Gibbons’ new council and has taken several steps to support the town, 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. These actions provide oversight and short-term support while the viability review is underway.
“Today, I met with the mayor and council to discuss the expedited viability review, a process that supports a municipality and its residents to evaluate the long-term viability of the municipality, and determine next steps.
“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. 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 2025, the town indicated it was facing an imminent financial crisis, including operating deficits, depleted reserves, rising debt pressures, late financial reporting and other challenges stemming from previous financial decisions. In January, the town formally requested provincial assistance including immediate financial support and an expedited viability review.
“Municipalities are responsible for their local financial decisions, and situations like this highlight the importance of staying focused on core services. Our priority is ensuring residents continue to receive those services while the town works toward outlining its next steps.
"I have also met with the mayor and council of Sturgeon County to discuss the expedited viability review and thank them for their collaboration to date.”
Quick facts
- The Town of Gibbons has faced mounting financial and governance challenges over several years.
- Operating deficits from 2020 to 2025 do not appear to have been disclosed in municipal budgets.
- The municipality appears to have reported overstated revenues in its 2025 operating budget.
- The town’s cash reserves and borrowing capacity were used to cover operating expenses.
- Conditional grant funding may have been used for operating purposes, creating repayment liabilities.
- The province appointed an official administrator to supervise the municipality and its council, and a provincial viability review is underway to determine the town’s long-term path forward.