The Town of Oromocto, N.B., says it may cut off services to Oromocto First Nation unless it pays bills amounting to $450,000.
The town notified the First Nation last Thursday that garbage collection, snow plowing, water and sewage service could be cut off without further warning. Police and fire protection could also cease to be provided to the reserve, which lies within the town's boundaries.
"We have to take some measure in letting them know that we have to be paid for the services they have been receiving, and we don't seem to be able to get their attention," said Mayor Fay Tidd.
The First Nation has been invoiced for the services repeatedly, but has failed to make any payments and has allowed the debts to accumulate since April 2005, the town stated in a release issued on Monday.
"We feel that all citizens have to be treated equally," Tidd said. "We shut off water for the other citizens in the town if their water isn't paid or their sewage isn't paid or their garbage pickup isn't paid and so on.
"We feel that they should be treated in the same manner," Tidd said. "We can't afford to give them services that the other citizens can't get without paying."
Tidd said she received a call from a senior official in the federal Department of Indian and Northern Affairs late Monday night asking the town to grant a little more time before the services are cut. The town council will be meeting to decide if it will grant that request.
The $450,000 debt from overdue service costs is seriously affecting the municipality's cash flow, said Cindy Abbott, the town's information officer.
"We have been extremely patient with this," Abbott said. "It is not something council has taken lightly, because we know innocent parties will be affected."
Abbott said the town believes the Oromocto First Nation has at least some of the money needed to pay the bill.
An investigation revealed that funds for municipal services were transferred to the Oromocto First Nation by the Department of Indian and Northern Affairs Canada under a multi-year funding agreement in 2005, she said.
"Repeated efforts to bring the Oromocto First Nation and federal departmental officials to a meeting to formalize these arrangements and address the payment of arrears have been unsuccessful," the town stated in a release.
Abbott said the federal government and the band council have been informed of the demand for payment.
CBC News has been unable to reach the First Nation for comment.
With files from the Canadian Press