Photo: YouTube / County of Grande Prairie

By Shaun Penner

Hythe Village Status

Village of Hythe submits viability review request to determine future

Apr 23, 2020 | 6:38 PM

The Village of Hythe is reevaluating its future, as the municipality has submitted a request to Alberta Municipal Affairs for a viability review.

Village Council voted in favour of submitting the request at Wednesday’s meeting, meaning that following the outcome of the province’s recommendations, the Village could dissolve and become a part of the County of Grande Prairie.

A similar move was made at the end of 2018 in Grande Cache, which following a viability review, the town’s residents voted to dissolve the town and become a hamlet within the M.D. of Greenview.

Hythe Mayor Brian Peterson says this decision was made because the Village can no longer keep up with rising operational costs and much needed infrastructure repairs.

“Infrastructure that has slowly deteriorated for over 30 years, where the Village really hasn’t had the money to put into it,” said Peterson. “Some of our other problems are 40 per cent of our (assessable) tax base pays zero.”

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That 40 per cent of the tax base is made up of schools, government buildings and churches that are assessable, but do not pay taxes to the municipality and instead pay the province with a grant in lieu of taxes. The Village says since shifting to that payment model, the grant that is then given to the municipality from the province has slowly decreased to zero, which the Village equates to about $500,000 in lost tax revenue.

Other issues such as a 35 per cent decrease in funding from the Municipal Sustainability Initiative (MSI) and additional police funding requirements that have fallen on municipalities have also driven the Village to the point of having to question its long term viability.

“Combine those things and add those in with the increasing costs of operating, it just has come to where the Village can’t see its way through in the years to come.”

Peterson says the review process can take anywhere from six months to a year, even as long as two years. The process involves a review of the Village’s finances, governance and regional cooperation, among others.

The process will also include public input and feedback. Residents will also vote on the province’s terms following the viability review, with an option for dissolution into the County of Grande Prairie.

“We recognize the vote by Hythe residents on the recommendation of the Province’s review team is binding,” said County of Grande Prairie Reeve Leanne Beaupre, in a statement. “With any relationship moving forward with Hythe, we want to create a positive environment for the citizens of the County of Grande Prairie as well as Hythe.”

Hythe residents will have a chance to hear from Council on Tuesday, April 28 about the matter during a virtual tele-town hall. You can also schedule to speak with Mayor and Council members one-on-one on April 29 and 30. The Village asks that you register for wither option by contacting the Village office at 780-356-3888 or by email at info@hythe.ca.

“This will be a long process, with a good ending,” said Peterson. “We’ll find out what’s going to be best for the Village. I think it’ll be a good ending.”