Table of contents

Overview

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 process brings decision makers together and empowers communities to make decisions about their future through collaboration and cooperation.

The review analyzes the municipality's:

  • governance
  • finances
  • infrastructure
  • services

The review evaluates if a municipality is viable and can provide recommendations to achieve this. It is not meant to examine municipal councils or administrative practices.

Each viability review is unique to the specific municipality and the length of time varies dependent upon multiple factors, including the completion of the infrastructure audit and council and staff vacancies.

Cost

The cost of a review varies depending on the complexity and time it takes to complete.

Costs are distributed between Municipal Affairs and municipalities as follows.

Municipal Affairs

  • ministry staff time and materials for researching, writing, printing and distributing information and reports
  • the cost of public meetings and community engagement activities
  • a municipal grant to pay for the infrastructure audit

Municipalities

  • costs of municipal staff to compile information
  • travel costs to meetings
  • costs of additional council meetings
  • remuneration for councillors to attend review meetings

Review process

  • Step 1. Begin a review

    A review can be started in one of 3 ways:

    Council request

    Councils can write to the Minister of Municipal Affairs to request a review if:

    • they have completed the self-assessment questionnaire
    • they have implemented the mitigation tools found in the capacity building toolkit
    • they believe the municipality is in jeopardy or no longer sustainable

    A completed self-assessment questionnaire must be included with the written request.

    Citizen petition

    Citizens of a municipality can petition the Minister of Municipal Affairs to begin a review.

    To petition the minister, citizens must complete a petition that includes:

    • the signatures of 30% of the municipality’s eligible voters (50% of eligible voters for summer villages)
    • a statement of representative of petitioners
    • an affidavit for each person that witnessed signatures

    All legislated requirements for petitions are outlined in the information handout on petitions.

    Before starting a petition, citizens should contact the Municipal Viability Team by phone at 780-427-2225 or email at [email protected].

    Minister’s discretion

    The Minister of Municipal Affairs can initiate a viability review if they believe it’s warranted.

  • Step 2. Ministry screening

    A viability screening is not required in advance of a viability review but may be completed under certain circumstances to help the minister decide if a review or another process is necessary. This can involve staff gathering information and documents to understand any issues and why the council request or citizen petition was made.

    A viability screening may also take place when a municipality is considered at risk for three consecutive years through the municipal indicators.

  • Step 3. Information collection

    If the minister decides a viability review is necessary, the minister will commit to holding a vote of the electors on the question of dissolution at the conclusion of the review.

    The information collected for the review comes from:

    • ministry staff
    • information supplied by the municipality being reviewed
    • information supplied by the receiving municipality
    • the municipality’s infrastructure assessment or audit
    • stakeholder engagement and community involvement, which can include:
      • written submissions
      • surveys
      • open houses
      • public meetings

    During a review, municipalities can apply for funding through the Alberta Community Partnership program to pay for the completion of an infrastructure assessment.

  • Step 4. Recommendations and options

    After the review, ministry staff provide a report to the municipality.

    The report includes 2 options for the municipality:

    • recommendations for the municipality to reach viability
    • a description of the changes and impacts to residents if the municipality was dissolved

    The report is also sent to residents and presented at a public meeting.

  • Step 5. Public vote

    After the public information session for residents, a vote of electors is held and administered by ministry staff in accordance in accordance with the Local Authorities Election Act (LAEA).

    To be eligible to vote, a person must be:

    • at least 18 years of age
    • a Canadian citizen
    • a resident of Alberta and their place of residence is located in the local jurisdiction on election day

    According to the LAEA, residents of another municipality, or who own property but whose primary place of residence is not in that municipality, are not eligible to vote.

    A person’s primary residence is usually the one to which their tax returns are addressed, is on their driver’s licence, or the address their mail is addressed and delivered

    In order to vote, eligible electors must produce identification for inspection. Acceptable forms of identified can be found here: Voter Identification Requirements

    A public vote is held on the following 2 options:

    1. implement changes to achieve viability, or
    2. dissolve and become part of a neighbouring municipality

    If a majority of residents vote for option one (implement changes), the minister will issue directives which the review municipality must comply with. If the majority of residents vote for option 2 (dissolve), minister is required to recommend dissolution to the provincial cabinet, who will then make the final decision on dissolution.

    For more information about dissolution, see the Dissolution section on Municipal restructuring.

    Depending on the outcome of the vote, the minister will either issue a ministerial directive or recommend municipal dissolution to the cabinet, who will make the final decision to dissolve the municipality.

Active viability reviews

Village of Delia

At the request of the Village of Delia council, the Alberta government initiated a viability review of the village in January 2023. The review will include an infrastructure study funded by a grant from the Alberta Community Partnership program.

An initial public information session focused on what to expect during the viability review and collection of initial input was held on March 22, 2023 in the Delia & District Community Centre. A second public information session is being held October 4, 2023, from 7 pm to 9 pm in the Delia & District Community Centre to offer another opportunity for residents and property owners to provide further input towards the review.

A viability review report will be developed by Alberta government staff, following their analysis of the:

  • village’s local governance
  • administrative and operational capacity
  • finances
  • infrastructure and services

This report will be distributed to the residents and property owners, and a final public information session on the viability review report will be held.

Once the public information session has been held, a vote of the electors on the question of dissolution will be conducted. Depending on the outcome of the vote, the Village of Delia will either:

  • remain an incorporated municipality – and directives will be issued to achieve viability, based on the recommendations within the report
  • dissolve and become a hamlet within Starland County

The viability review is expected to take 12 to 18 months from start to completion.

Completed viability reviews

  • Town of Grande Cache

    The Town of Grande Cache was dissolved and became part of the Municipal District of Greenview on January 1, 2019.

    Public notices and reports

  • Town of Granum

    The Town of Granum was dissolved and became part of the Municipal District of Willow Creek on February 1, 2020.

    Public notices and reports

  • Town of Manning

    Current status

    A vote of the electors of Manning on the question of dissolution was held October 28 and October 29, 2020, in accordance with the Local Authorities Election Act.

    Of the 367 valid ballots cast, 88% (324 ballots) supported remaining as a town, while 12% of voters (43 ballots) supported dissolving and becoming a hamlet in the County of Northern Lights.

    The Minister has issued directives to Manning to achieve viability, based on the recommendations within the viability review report. The Town of Manning will have to provide annual updates on the progress of the directives for 4 years.

    Public notices and reports

  • Village of Bawlf

    Current status

    A vote of the electors of Bawlf on the question of dissolution was held October 20 and October 21, 2020, in accordance with the Local Authorities Election Act.

    Of the 166 valid ballots cast, 54% (90 ballots) supported remaining as a village, while 46% of voters (76 ballots) supported dissolving and becoming a hamlet in Camrose County.

    The Minister has issued directives to Bawlf to achieve viability, based on the recommendations within the viability review report. The Village of Bawlf will have to provide annual updates on the progress of the directives for 5 years.

    Public notices and reports

  • Village of Berwyn

    Current status

    Following a vote of electors in which electors voted to remain a village, the minister provided the Village of Berwyn with directives through a Ministerial Order to ensure continued viability. The village will continue to report on the implementation of the directives until June 2023.

    Public notices and reports

  • Village of Cereal

    The Village of Cereal was dissolved and became part of the Special Areas on January 1, 2021.

    Public notices and reports

  • Village of Champion

    Current status

    The minister decided on December 11, 2018, based on the input from the public and the VRT, a vote would not be conducted and viability directives were issued.

    The village completed its update regarding progress on the minister’s directives in May 2019 and will provide annual updates until June 1, 2023.

    Public notices and reports

  • Village of Clyde

    Current status

    The minister reviewed the council decision and the recommendations from the VRT and issued directives (MO No: MSL:054/16) to the municipality. The village is providing annual reports until June 1, 2021 to the ministry on the completion of the directives.

    Public notices and reports

  • Village of Dewberry

    The Village of Dewberry was dissolved and became part of the County of Vermilion River on January 1, 2021.

    Public notices and reports

  • Village of Ferintosh

    The Village of Ferintosh was dissolved and became part of Camrose County on January 1, 2020.

    Public notices and reports

  • Village of Gadsby

    The Village of Gadsby was dissolved and became part of Stettler County on February 1, 2020.

    Public notices and reports

  • Village of Halkirk

    Current status

    At the request of the Village of Halkirk, the minister initiated a viability review of the village in March 2020. The review included an infrastructure study funded by the Alberta Community Partnership program. Following the analysis of the village’s local governance, administrative and operational capacity, finances, infrastructure and services, the review provided 14 recommendations required to ensure ongoing municipal viability of Halkirk

    The viability review report was provided to residents and property owners in early February 2022. This was followed by a public information session on the viability report and the vote of electors.

    A vote was conducted on the question of dissolution on March 8 and 9, 2022, in accordance with the Local Authorities Election Act. Of the 55 valid votes cast, 33 (60%) supported Option 1 (remain a village), and 22 (40%) supported Option 2 (dissolve). As a result, Halkirk will remain as an incorporated municipality.

    The minister has ordered the Village of Halkirk to address the recommendations, and to annually provide updates over the next 5 years.

    Public notices and reports

  • Village of Hill Spring

    Current status

    The minister issued directives (MO No: MSL:122/17) to the municipality on December 19, 2017.

    The village is directed to develop an action plan (including timelines) as to how the council plans to address each of the recommendations in the viability plan, to prepare a 10-year capital plan, and to provide copies of the 2 plans to Municipal Affairs.

    The village is to report to the ministry annually, until June 1, 2023, on the progress of the implementation of the plans.

  • Village of Hussar

    Current status

    The minister issued directives (MO No: MSL:072/18) to the municipality on October 3, 2018.

    The village is directed to develop an action plan (including timelines) as to how the council plans to address each of the recommendations in the viability plan, to prepare a 10-year capital plan, and to provide copies of the 2 plans to Municipal Affairs.

    The village is to report to the ministry annually, until June 1, 2023, on the progress of the implementation of the plans.

    Public notices and reports

  • Village of Hythe

    Current status

    On June 9, 2021, the Lieutenant Governor in Council approved the dissolution of the Village of Hythe.

    Effective July 1, 2021, the Village of Hythe will be dissolved and become a hamlet in the County of Grande Prairie No. 1.

    Public notices and reports

  • Village of Innisfree

    Current status

    Following a vote of electors in which electors voted to remain a village, the minister provided the Village of Innisfree with directives through a Ministerial Order to ensure continued viability. The village will continue to report on the implementation of the directives until June 2023.

    Public notices and reports

  • Village of Rycroft

    Current status

    The minister issued directives (MO No: MSL:055/18) to the municipality on July 19, 2018.

    The village is directed to develop an action plan (including timelines) as to how the council plans to address each of the recommendations in the viability plan, to prepare a 10-year capital plan, and to provide copies of the 2 plans to Municipal Affairs.

    The village is to report to the ministry annually, until June 1, 2023, on the progress of the implementation of the plans.

    Public notices and reports

  • Village of Wabamun

    The Village of Wabamun was dissolved and became part of Parkland County on January 1, 2021.

    Public notices and reports

  • Village of Warner

    Current status

    The Minister of Municipal Affairs initiated a viability review of the Village of Warner in December 2020 following a sufficient petition request made by electors of the village. The review included an infrastructure study funded by the Alberta Community Partnership program. Following the analysis of the village’s local governance, administrative and operational capacity, finances, infrastructure, and services, the review provided 15 recommendations required to ensure ongoing municipal viability of Warner.

    The viability review report was provided to residents and property owners in February 2022. This was followed by a public information session on the viability report and the vote of electors.

    A vote of the electors of Warner on the question of dissolution was held March 30 and March 31, 2022, in accordance with the Local Authorities Election Act. Of the 166 valid ballots cast, 90.4% (150 ballots) supported remaining as a town, while 9.6% of voters (16 ballots) supported dissolving and becoming a hamlet in the County of Warner. As a result, Warner will remain as an incorporated municipality.

    The minister has issued directives to Warner to achieve viability, based on the recommendations within the viability review report. The Town of Warner will have to provide annual updates on the progress of the directives over the next 5 years.

    Public notices and reports

Contact

Connect with Municipal Sustainability:

Phone: 780-427-2225
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

Related

Municipal restructuring

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