City of Whitehorse staff are waiting for nearly $1 million from the Kwanlin Dun First Nation payment that has been outstanding for more than a year.

Mayor Bev Buckway confirmed to the Star the city has not yet received any money from the first nation, but added that she thinks the city will see it soon.

'I believe we'll see it closer to the end of the month,' she said.

The outstanding balance of $892,000, plus interest, stems from a 2006 deal. The city had agreed to finance work on the first nation's proposed waterfront cultural centre at Black Street and First Avenue.

The city agreed to connect city services, which are water and sewage lines and roads, up to the property.

The first nation government agreed to pay the costs, and the work was completed in the summer of 2006. The city invoiced Kwanlin Dun in November 2006 and expected the money by Dec. 30, 2006, but has since received nothing.

'I have full confidence we'll get it all,' said Buckway.

She said when the payment does come in, the city will first see whether it includes interest, and, if not, decide how to proceed with that outstanding amount.

Coun. Florence Roberts said that until a payment comes in from the first nation, she would not speculate on what course of action the city would take with regard to interest.

She did add, however, that 'every time somebody owes the city money, they have to pay interest on it.'

When city taxpayers do not pay the amounts they owe, they face a two per cent compounded interest rate for every month they are late.

In this case, two per cent of $892,000 for 14 months equals an additional $249,760.

Tom Beaudoin, the first nation's director of land claims, confirmed a letter was sent to the city indicating payment would be made by the end of January.

'I'm not really comfortable getting into all of this,' he told the Star.

He said an arrangement was made with the city and payment was organized.

'I'm not sure why it's come up as an issue with the city right now,' he said. He has held his position with Kwanlin Dun for a year now, he said, and in that time he has not seen another financial arrangement with the city go awry.

Construction on the Kwanlin Dun's cultural centre has not yet begun.

'I believe they had intended to build a cultural centre ... it's not built yet because there were some glitches, we'll say, with the funding for that centre,' said Buckway.

In her term as mayor, she said she has not seen any other unpaid balances on the books from Kwanlin Dun.

City manager Dennis Shewfelt said the property remains that of Kwanlin Dun as part of their settled land claims agreement, and whether or not they built the cultural centre on that site, the money is still outstanding.

Procedurally, if the payment comes in without interest added on, Shewfelt said it will not be automatically billed to them.

Rather, 'it will a matter we will deal with at city council,' he said.