Alberta’s government confirmed Friday it will conduct an expedited viability review of the Town of Gibbons, located northeast of Edmonton, after the community reported serious financial trouble.

Municipal Affairs Minister Dan Williams said the faster timeline was requested by the town’s new council after it warned in late 2025 of a financial crisis marked by ongoing deficits, depleted reserves, growing debt and delays in financial reporting. The province has extended the town’s borrowing limit, provided a $500,000 grant through the Alberta Community Partnership program and appointed an official administrator to oversee council and operations during the review.

Williams said provincial involvement is necessary to ensure essential services continue while the town determines its next steps. Under Section 130.1 of Alberta’s Municipal Government Act, a viability review examines whether a municipality can remain sustainable or whether changes such as restructuring or dissolution should be considered.

Provincial documents show operating deficits from 2020 to 2025 were not fully reflected in municipal budgets. The 2025 operating plan appears to have overstated revenues, and the town used reserves and conditional grant funding to cover operating costs, creating potential repayment obligations. Gibbons’ situation reflects broader financial pressures facing some Alberta municipalities, including unpaid industrial taxes and limited revenue flexibility.

The outcome of the review will determine whether Gibbons can stabilize its finances internally or whether more significant structural changes are required.