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Part of Municipal sustainability

Viability reviews for municipalities

Learn about the process that helps determine if a municipality is viable and sustainable.

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Municipal sustainability

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. These reviews support communities to plan for long-term success.

There is no absolute definition or formula for what makes a municipality viable, either in Alberta or in most other jurisdictions. However, in general, municipal viability concerns come down to efficiency of resources and the effectiveness of local services and infrastructure. Complete the Municipal Sustainability Strategy Self-Assessment Questionnaire to better understand your community’s viability.

The viability review process brings information together and empowers residents to make informed decisions about the future of their community.

Viability reviews analyse a municipality’s:

  • community
  • governance
  • administration
  • services
  • finances
  • infrastructure

Each viability review is unique to the specific municipality and the length of time varies depending on multiple factors. These include the completion of an infrastructure audit and council and staff vacancies. Generally, viability reviews take between 12 to 18 months to complete.

Viability report

The viability review results in a viability report. This document summarizes information collected from the municipality, residents, and the neighbouring municipality, and provides a comparison of what may happen if the municipality votes to remain or dissolve. The report also includes recommendations that support sustainable governance should electors vote to remain. Reports are not meant to examine municipal council or administrative practices.

Following the review, electors participate in a vote. This vote determines whether the municipality should remain an incorporated municipality or if it should dissolve and become a hamlet in the neighbouring municipality.

If you have any questions about viability reviews, contact the Municipal Viability team at [email protected] or by phone at 780-427-2225 or toll-free by dialing 310-000 first.

Cost

The cost of a review varies depending on the complexity and the 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, reports, voter ballots, and other documents.
  • Any costs for presentations, public information sessions, and the voting stations, which may include facility rentals and newspaper advertising.
  • A municipal grant up to $120,000 to pay for an infrastructure audit.

Municipalities

  • Municipal staff time to compile information.
  • Remuneration for councillors to attend viability review meetings.
  • Any additional costs determined by the municipality, which may include travel and additional council 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 passed a resolution requesting a viability review
    • have implemented the mitigation tools found in the capacity building toolkit
    • believe the municipality is in jeopardy of becoming, or is, no longer viable

    The council request must also include a completed Municipal Sustainability Strategy Self-Assessment Questionnaire.

    Petition

    Electors of a municipality can petition the Minister of Municipal Affairs to undertake a viability review.

    To petition the Minister, electors must submit a petition that includes:

    • signatures of electors numbering at least 30% of the municipality’s population (in a summer village, signatures of electors equal to at least 50% of the number of summer village residences)
    • 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, electors should contact the Municipal Viability team at [email protected] or by phone at 780-427-2225 or toll-free by dialing 310-000 first.

    Minister’s discretion

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

  • Step 2. Ministry screening

    The Minister may choose to initiate a viability screening to decide if a viability review, or if another process, would be more appropriate. A viability screening involves government staff gathering information to understand municipal concerns and identify why the council request or petition was made.

    The Minister may also initiate a viability screening if a municipality is considered at risk for 3 consecutive years through its municipal indicators.

  • Step 3. Information collection and public engagement

    If the Minister initiates a viability review, ministry staff will conduct the review, including collecting information for the viability report. In undertaking the review, the Minister also commits to holding a vote of the electors on the question of dissolution at the conclusion of the review.

    Information is collected for the review from:

    • the municipality
    • the potential receiving municipality
    • an infrastructure audit of the municipality
    • public engagement and community involvement, which can include: 
      • written submissions
      • surveys
      • public information sessions

    During a review, the municipality is eligible to apply for grant funding for an infrastructure audit through the Alberta Community Partnership program. This audit assesses municipal infrastructure and creates a roadmap for future capital improvements.

    A Viability Review Support Group (VRSG) is also created. This group is composed of councillors and administration from the review and potential receiving municipality, in addition to appointed representatives from the municipal associations. The VRSG reviews the draft viability report and makes recommendations for long-term sustainability of the community.

    Public engagement

    Throughout the viability review, the ministry organizes engagement opportunities to inform residents on the viability review process and collect feedback. Engagement activities include:

    • an initial public information session to outline the viability review process and gather information
    • a survey to gather detailed input from community residents and business owners
    • a mid-review public information session to update residents and business owners on the viability review process and gather additional information
    • a pre-vote public information session to discuss the viability review report and review the options presented

    Public engagement events and activities are promoted online and in letters to community residents. Following the initial and mid-review engagement sessions, supporting resources and documents will be made available highlighting common concerns.

  • Step 4. Recommendations and options

    After the review is complete, a report is prepared for the municipality. This report is sent to all residents and property owners and presented to the community in a pre-vote meeting.

    The report typically describes 2 options for the municipality:

    1. remain an incorporated municipality and work towards municipal sustainability
    2. dissolve and become a hamlet in the receiving municipality and the changes and impacts that residents may expect

    The report also contains recommendations for the municipality to improve its viability should electors vote for the incorporated municipality to remain.

  • Step 5. Vote of electors

    After the pre-vote public information session, a vote of electors is conducted 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 whose place of residence is in the municipality on election day

    According to the LAEA, residents of another municipality, or who own property but whose primary place of residence is not in the municipality, are not eligible to vote. Refer to the LAEA for specific regulations concerning voter eligibility in a summer village.

    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.

    To vote, eligible electors must produce identification. Acceptable forms of identification can be found in the Voter Identification Requirements.

    The vote is held on the following 2 options:

    1. municipality remains and implements changes to achieve viability
    2. dissolve and the municipality becomes a hamlet in the receiving municipality

    If a majority of electors vote for the municipality to remain (and implement changes), the Minister will issue directives the review municipality must comply with. If a majority of electors vote for the municipality to dissolve, the Minister must 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.

Active viability reviews

Summer Village of Ma-Me-O Beach

A viability review was initiated for the Summer Village of Ma-Me-O Beach in December 2023. This review started at the request of the Minister of Municipal Affairs.

Current status

With input from the Summer Village of Ma-Me-O Beach and the surrounding County of Wetaskiwin, a viability review report is being prepared that will be shared with residents and property owners. Once the report has been distributed, a pre-vote public information session will be held to review the contents of the report prior to the vote on the question of dissolution. This vote is anticipated to be held in early 2025 and will be conducted as per the requirements of the Municipal Government Act.

Past activities

An initial public information session was held to explain the viability review process with the community on February 21, 2024. This session covered what to expect during the viability review, and participants had the opportunity to share their thoughts on the viability of Ma-Me-O Beach. The ministry also shared an online public survey.

An in-person, mid-review public information session was held in Ma-Me-O Beach on August 10, 2024, to provide an update on the viability review process, to discuss the contents of the Ma-Me-O Beach viability review report, and to provide input on the development of the viability review report:

Village of Bittern Lake

A viability review was initiated for the Village of Bittern Lake in October 2023. This review started because of a sufficient petition.

Current status

With input from the Village of Bittern Lake and the surrounding Camrose County, a viability review report is being prepared and will be shared with residents and property owners. Once the report has been distributed, a pre-vote public information session will be held to review the contents of the report prior to the vote on the question of dissolution. This vote is anticipated to be held in late 2024 and will be conducted as per the requirements of the Municipal Government Act.

Past activities

An initial public information session was held in Bittern Lake to review the viability review process with the community on January 11, 2024. This session included tabletop exercises and a public survey. This public survey was also available online. Based on this initial information session, an additional information document was prepared for the public.

A mid-review public information session was held in Bittern Lake on June 19, 2024, to provide an update on the viability review process and an opportunity to gather additional public input.

Village of Delia

A viability review was initiated for the Village of Delia in January 2023. This review started at the request of the village council.

Current status

With input from the Village of Delia and the surrounding Starland County, a viability review is being prepared and will be shared with residents and property owners. Once the report has been distributed, a pre-vote public information session will be held to review the contents of the report prior to the vote on the question of dissolution. This vote is anticipated to be held in late 2024 and will be conducted as per the requirements of the Municipal Government Act.

Past activities

An initial public information session was held in Delia to review the viability review process with the community on March 22, 2023. This session included tabletop exercises and a public survey.

A mid-review information session was held in Delia on October 4, 2023, to provide an update on the viability review process and an opportunity to gather additional public input.

Village of Halkirk

An additional vote of electors on the question of dissolution was approved for the Village of Halkirk in June 2024. This vote was initiated at the request of the village council and included an update of the village’s February 2022 viability review report.

Current status

Residents of the municipality voted on October 8 and October 9, 2024, to dissolve the Village of Halkirk and that Halkirk become a hamlet in the County of Paintearth. As a result of the vote, the Minister of Municipal Affairs must recommend to Cabinet and the Lieutenant Governor in Council that the municipality be dissolved with a recommended effective dissolution date of January 1, 2025.

The Ministry of Municipal Affairs has appointed an official administrator to help the village navigate the transition process. The official administrator will not be involved in the day-to-day operations of the village.

Past activities

An initial public information session was held in Halkirk on July 8, 2024, to learn about the additional vote of electors, the update of the February 2022 viability review report, and to provide an opportunity for public input. This session included a public survey.

A pre-vote public information session was held in Halkirk on September 24, 2024, to review the contents of the updated report and answer questions about the report and the vote of electors.

Completed viability reviews

  • Village of Warner (2022)

    The Village of Warner voted to remain a village in March 2022. The Minister issued directives to the village to achieve viability and it must provide annual updates on the progress of the directives until June 2027.

    Public notices and reports

  • Village of Cereal (2021)

    The Village of Cereal was dissolved and became a hamlet in Special Areas on January 1, 2021.

    Public notices and reports

  • Village of Dewberry (2021)

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

    Public notices and reports

  • Village of Hythe (2021)

    The Village of Hythe was dissolved and became a hamlet in the County of Grande Prairie on July 1, 2021.

    Public notices and reports

  • Village of Wabamun (2021)

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

    Public notices and reports

  • Town of Granum (2020)

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

    Public notices and reports

  • Town of Manning (2020)

    The Town of Manning voted to remain a town in October 2020. The Minister issued directives to the town to achieve viability and it must provide annual updates on the progress of the directives until June 2024.

    Public notices and reports

  • Village of Bawlf (2020)

    The Village of Bawlf voted to remain a village in October 2020. The Minister issued directives to the municipality to achieve viability and it must provide annual updates on the progress of the directives until June 2025.

    Public notices and reports

  • Village of Ferintosh (2020)

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

    Public notices and reports

  • Village of Gadsby (2020)

    The Village of Gadsby was dissolved and became a hamlet in the County of Stettler on February 1, 2020.

    Public notices and reports

  • Town of Grande Cache (2019)

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

    Public notices and reports

  • Village of Berwyn (2018)

    The Village of Berwyn voted to remain a village in May 2018 and was subject to directives until June 2023. The village has requested to continue annual reporting and the Minister has approved additional reporting until June 2026.

    Public notices and reports

  • Village of Champion (2018)

    Based on input from the public and the Viability Review Team, the Minister chose not to conduct a vote for the Village of Champion and issued directives for the village until June 2023. The village met all directives and is no longer subject to ministry review.

    Public notices and reports

  • Village of Hussar (2018)

    The Village of Hussar voted to remain a village in October 2018 and was subject to directives until June 2023. The village met all directives and is no longer subject to ministry review.

    Public notices and reports

  • Village of Innisfree (2018)

    The Village of Innisfree voted to remain a village in November 2018 and was subject to directives until June 2023. The village met all directives and is no longer subject to ministry review.

    Public notices and reports

  • Village of Rycroft (2018)

    The Village of Rycroft voted to remain a village in July 2018 and was subject to directives until June 2023. The village met all directives and is no longer subject to ministry review.

    Public notices and reports

  • Village of Hill Spring (2017)

    The Village of Hill Spring voted to remain a village in December 2017 and was subject to directives until June 2023. The village met all directives and is no longer subject to ministry review.

  • Village of Clyde (2016)

    Based on input from the Village of Clyde council and the Viability Review Team, the Minister chose not to conduct a vote and issued directives for the village until June 2021. The village met all directives and is no longer subject to ministry review.

    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]

Previous Municipal restructuring