Municipal restructuring

Status change is when a municipality changes its status from one municipal type to another.

Types of municipalities include:

• municipal districts
• villages
• summer villages
• towns
• cities
• specialized municipalities

Amalgamation is when 2 or more municipalities with shared borders join together to become a new municipality.

Municipalities may explore amalgamation if they believe they can operate better as one municipality.

The Minister of Municipal Affairs may also initiate amalgamation negotiations.

Annexation is when a municipality acquires land from a bordering municipality.

Annexation is often considered when a municipality requires additional land to provide room for growth.

Municipalities must apply to the Land and Property Rights Tribunal to initiate annexation negotiations.

Formation, also known as incorporation, is when a new municipality is created.

In 2001, Alberta Municipal Affairs adopted restructuring principles, standards, and criteria, which outline that no new municipalities should be created if it increases the total number of Alberta municipalities. Since 2001, no new additional municipalities in Alberta have been formed.

We encourage residents interested in forming a municipality to explore other municipal restructuring processes.

Dissolution is when a municipality ceases to exist as an incorporated entity, with the community becoming a hamlet within the neighbouring municipality.

Dissolution may be considered for several reasons. For example, a municipality that is struggling financially may benefit from dissolving into another municipality with more financial resources to provide services to residents. Dissolution may also be beneficial when one municipality can provide many services more efficiently, such as emergency or utility services, over a larger area. Dissolution may also be considered when a municipality faces governance challenges, including difficulties filling council positions or leadership concerns.

In Alberta, dissolution may only occur because of a vote of electors on the question of dissolution. A vote on the question must occur following a viability review, a detailed review that compares what may happen if the municipality votes to remain or dissolve.

Municipal Affairs, Alberta Municipalities (AB Munis), Rural Municipalities of Alberta (RMA) and other Alberta municipal associations have a wide variety of capacity-building tools to support municipalities as they respond to the changing needs of their citizens and remain sustainable.

For a full list of available tools, visit Municipal government resources.

The self-assessment questionnaire is a tool for municipal councils and administrations to:

• evaluate and understand their current situation
• identify areas of strength
• identify areas to improve

We encourage municipalities to complete the self-assessment questionnaire prior to exploring restructuring options. The questionnaire provides links to capacity-building tools designed to help strengthen municipal performance and information on interpreting questionnaire results to determine next steps.

A viability review is a process that helps municipalities determine their ability to continue as a municipality or develop a plan that leads to viability. The review process brings information together and empowers residents to make decisions about the future of their community.

For information about the viability review process and a list of active and completed reviews, visit Viability reviews for municipalities.