A farmer works a field in Sheffield Mills in Nova Scotia's Annapolis Valley on April 22, 2010.
The council and mayor of a small town in Nova Scotia's Annapolis Valley quit en masse Tuesday, citing long-standing financial problems that could be linked to an RCMP investigation into a potential theft.
Bridgetown's seven-member council said in a statement that it lacks the financial and human resources to manage the "magnitude and complexity" of its money problems, and it is acting on the advice of accounting and legal consultants.
The town is now working with the provincial government to find a way forward, but it's biggest problem is determining the extent of its financial challenges and whether the potential theft is a factor, the town's acting chief administrative officer said.
"To find out what (the problems) are takes a lot of resources, and that's why the town council thought it was best to kind of step aside," Grant Cooke said in an interview.
He said the town's financial woes are not related to any projects it has undertaken, including a $3.3-million upgrade to the town's water system. Last year, the town's operating budget stood at $1.6-million. It had four full-time employees working in the town offices, but that's now down to two workers.
Mayor Art Marshall and members of the council made the decision to quit abruptly when the extent of the problems became known in the past few days, Mr. Cooke said.
"It was a very reluctant decision on the part of the council," he said. "It was better for the citizens, actually, to do it this way.
"We kept getting more information that the problem was complex, widespread ... and actually we don't even know for sure."
The mayor did not return messages seeking comment.
Town solicitor John Cameron said with the town council gone, staff will take over their duties.
"I am not running the town," Mr. Cameron said. "It's going to be run by the staff. I'm the only one left who gets to sign cheques."
Mr. Cameron said there are problems with the town's accounting, including its receipts and tax rolls.
As he spoke, Mr. Cameron excused himself for a few moments to hand some keys to RCMP investigators.
Municipal Relations Minister John MacDonell said three people from his department have been dispatched to the town to make sure residents have access to the services they need. He said the provincial cabinet will soon appoint someone to run the town.
Mr. MacDonell said he has the authority to fire mayors and councils, but the possibility of appointing or calling elections for a new municipal government was something he had yet to look into.
"It's a little bit uncharted," he said.
He said he was aware the municipality was having trouble generating tax revenue, but the announcement about a police investigation came as a surprise.
"It's been a bit rough for them for some time," he said.
RCMP spokeswoman Sgt. Brigdit Leger said the Mounties are investigating a potential theft after they received a complaint from the Town of Bridgetown on May 16. But she declined to release details, saying the probe is in its preliminary stages.
"In the event this investigation results in the laying of criminal charges, only at that time would we confirm the nature of the charges and the names of any individuals involved," she said.
About 1,000 people live in Bridgetown, about a two-hour drive west of Halifax.
Marion Tanner, manager at the Bridgetown Motor Inn, said she was surprised by the resignations and she is concerned about who will be appointed to run the town in the council's absence.
"It puts us in a predicament as a small town," she said. "There's a lot of projects under way and hopefully they will continue on."
She said townsfolk were aware there were problems with finances for about a year, but details were murky.
"There's a lot of questions that people have. The main thing is who is going to take over the finances and run the town until a new council is formed."
The community, which bills itself as the "prettiest little town in Nova Scotia," was once an important shipbuilding and commercial centre on the banks of the Annapolis River, which empties into the Bay of Fundy.