The Village of Halkirk hosted a town hall meeting on Sept. 24, 2024 where Ministry of Municipal Affairs staff, Dee Deveau and Ross Zimmermann presented findings of the minister’s review on the village’s viability.
A 2022 viability review report was prepared after collecting and analyzing information from both the Village of Halkirk and the County of Paintearth. In March of 2022 a vote of electors was held on the question of dissolution. At that time village residents voted to remain a village.
In May 2024, the village council requested the Minister hold an additional vote of electors citing ongoing viability challenges. In June 2024, the minister approved the request and directed ministry staff to update the 2022 viability report and conduct another vote on the question of dissolution.
The report stated that Halkirk’s current state must improve to ensure a viable future. If the electors voted to remain a municipality, the Minister of Municipal Affairs would require the village to take additional steps to boost viability.
Additional key factors, besides electing councillors, would need to be considered when assessing Halkirk’s ongoing viability. These include future budgets to ensure adequate staffing, major repairs and infrastructure replacement, inflationary or additional operating costs and a potential decrease in revenue.
It was also noted that no new or additional revenue sources were expected. Due to these circumstances the village may need to increase property tax revenue to cover staffing, inflationary pressures, additional costs and funding for large infrastructure projects over a 10-year period.
“Basically you are burying the village in bureaucracy,” voiced one resident, noting that they were being treated in the same manner as larger centres such as Calgary or Edmonton.
Deveau sympathized with residents but noted that the regulations are the same in small communities as in large urban centres.
Sustainable governance
The report noted that the village has struggled to attract residents interested in running for council and receives limited community input on municipal issues.
While councillors have completed the minimum mandatory training, the village operates without a strategic business plan. The report also noted that Municipal bylaws were outdated or absent on current issues.
Chief Administrative Officer (CAO) Tamara Sloboda, noted that following the rules and regulations of the Municipal Government Act (MGA) is challenging and that the responsibility placed on council can be overwhelming.
“Many communities are struggling with the bureaucracy,” said Mayor Bill Rock of the Village of Amisk, adding “Understand what you are asking of your councillors.”
If the village becomes a hamlet, Halkirk residents would be represented by an elected Division 4 County of Paintearth councillor. Existing bylaws would remain in effect until altered or repealed by the county, which would also provide bylaw enforcement.
Administration and operations
The village currently budgets for part-time employees, including a chief administratove officer (CAO), a public works foreman and part-time administrative support for routine tasks.
The report noted that past CAOs have often worked beyond their contracted hours without compensation. Many administrative functions, such as property assessment and water, sewer and road repairs, are contracted out to service providers.
If the village becomes a hamlet, the office would eventually operate out of the County of Paintearth, with administrative and operational processes transitioning to county staff, who have the capacity to assume those responsibilities.
“The county is not the bad guy here,” noted Sloboda.
Finances and taxation
The 2023 audited financial statements showed the Village of Halkirk had a total restricted and unrestricted surplus of $489,535 and carried no debt. In the event of municipal dissolution, the village’s financial assets must be used in the Hamlet of Halkirk.
The report showed that the village has a very small tax base, with a residential property tax rate of 11.592 in 2023. As well, a small annual surplus is generated for its natural gas utility which is used for general operating expenses.
Council would need to consider a combination of new or increasing costs and a potential decrease in government transfer payments when developing future budgets.
“The consequences could be quite devastating for the village,” noted Deveau.
“We are broke and if we want to stay as a village we better reach deep into our pockets,” noted a resident.
Should Halkirk become a hamlet, the residential mill rate would be based on the 2024 village rate. Natural gas rates are not expected to change, however, residents would be responsible for paying for services not currently provided by the county, such as water and sewer.
Under the current Alberta Community Partnership Programs (ACP), dissolution of the village would make the County of Paintearth eligible for a one-time provincial grant of about $638,000 for infrastructure and $146,000 for the transition of operations from the village to the county.
The county would also receive $50,838 through the Local Government Fiscal Framework (LGFF) and $55,360 from the Canada Community Building Fund (CCBF).
The county would review the condition of the village’s assets, and if they are disposed of, the funds would be used for infrastructure projects in the Halkirk community.
Infrastructure
A 2021 infrastructure study conducted by the Government of Alberta found that much of the infrastructure was built before 1980, with some dating back to the 1950s. Most infrastructure requires an immediate, planned approach to replacement. The 10-year capital plan included in the study estimated costs at over $8 million.
If Halkirk remained a village, Zimmermann noted that the village would “require an increase in revenue or a reduction of services.”
If Halkirk becomes a hamlet, the county would address critical infrastructure needs using Halkirk’s reserves, revenue and taxes. Grants and other funding would be used to repair or replace water systems. Roads and buildings would be assessed to determine their best use.
Services
The village owns several recreational, cultural and historical properties, with the goal of pursuing historical tourism to drive economic development. If Halkirk becomes a hamlet, the county would maintain most service levels and assess the needs for sustainability.
Voting
The vote on whether to remain a municipality or become part of the County of Paintearth will take place on Oct. 8 – 9.
Only eligible electors of Halkirk are allowed to vote on the dissolution question. Non-resident property owners are not eligible to vote.
The ballot will ask electors the following question: Based on the findings of the Village of Halkirk viability review and updated report, which of the two options below do you support for the future of Halkirk?
Option one, the Village of Halkirk remains a village and implements changes to achieve viability or option two, dissolve the Village of Halkirk and Halkirk becomes a hamlet in the County of Paintearth.
Conclusion
If a majority of voters choose dissolution (50 per cent plus one of valid ballots cast), the minister must recommend to cabinet that the village be dissolved at a time that allows for a smooth transition of services. Until then, the village will continue to operate.
Cheryl Bowman
Multimedia reporter
ECA Review
