Representatives of the federal Department of Indian and Northern Affairs, the Town of Oromocto, N.B., and the Oromocto First Nation are meeting Wednesday to try to resolve $450,000 in debts held by the band.
The town announced on Monday that it would be cutting municipal services to the reserve, which is within Oromocto's boundaries, because the First Nation had not paid its bills since April 2005.
The federal department contacted the town late Monday night asking for a delay to see whether a resolution could be found before water, sewage, garbage pickup, policing, fire and snow removal services were taken away from the reserve.
"[Indian Affairs] hope they can get the First Nation to work out a payment schedule that will be agreeable to us," Oromocto Mayor Fay Tidd said.
Oromocto needs assurances the money is coming so the town can plan for its 2008 budget, Tidd said.
"Until we know it is coming, we don't have anything to work with at all," the mayor said.
Indian and Northern Affairs Canada confirmed the nature of Wednesday's meeting but declined to comment further.
Meanwhile, Oromocto First Nation Chief Roger Atwin refused to comment beyond a news release issued by the council on Tuesday.
In it, the band said it was both "surprised and disappointed" that the Town of Oromocto would resort to "media stunts" to resolve an issue of such significance and importance.
"As opposed to sitting down and discussing the issues in a professional and diplomatic manner, the town has chosen to launch a media campaign that is not reflective of professional conduct nor conducive to the resolution of any matters," the release said.
The release said there was an understanding on Nov. 23, 2007, between Department of Indian and Northern Affairs, the Oromocto First Nation and the Town of Oromocto that supported a resolution.
Funding for the First Nation's municipal services used to go be transferred directly from the federal government to the Town of Oromocto but that deal was changed in 2005.
The federal government now gives the money to the First Nation, which is responsible for directly paying the town for services.
Tidd said since that time, none of the services have been paid for and the bills have accumulated to $450,000.
Residents of the Oromocto First Nation said they were hoping for a quick resolution to the dispute between their band council and the town.
"They're threatening to turn all this stuff off and everybody's upset about it. But it's not our fault. Chief and council have to deal with this, not us," said Janice Keenan, a member of the First Nation.
"I'd do the same thing. If someone owed me that much money and I had a chance to take something away from them, I would."
If some sort resolution can't be reached Wednesday, services will be grinding to a halt, said Tidd.
With files from the Canadian Press