Village of Cereal will dissolve into hamlet status on Jan. 1

By Medicine Hat News on December 12, 2020.

The Village of Cereal will be dissolved on Jan. 1,and become a hamlet in Special Areas No. 3.

That follows a vote this fall ordered by Alberta Municipal affairs after it found during an audit that the village was running a near 40 per cent operating budget deficit each year.

Official process concluded this week with an order of the Alberta Cabinet that follows a sustainability review of the settlement that has a population of 111.

Residents voted by a 42-37 margin in October in favour of dissolving the village.

Cereal, located at the junction of Highway 9 and 886, west of Oyen, was found in the audit to have annual revenue each year of $504,600 compared to $647,300 in expenses.

The difference was “likely” funded with a portion of Alberta and federal infrastructure grants that are allocated for capital projects, not operations.

Further grants were suspended as of mid-2018 and the review ordered.

It stated that choosing hamlet status would likely result in lower property taxes for residents, but also in fewer services.

Options are being determined by the Special Areas board to clear up $450,000 in accumulated debt.

Special Areas board plans to sell the community hall and arena/curling facility. Library and family services will be run out of Oyen. Utility services will be folded into regional systems.

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