HALIFAX - The head of a committee examining Nova Scotia municipalities says the mass resignation of Bridgetown council may be an indication of the fiscal woes small towns face elsewhere.

David Corkum says no other municipality in the province is facing a financial meltdown like Bridgetown's, but the problems are not uncommon in rural areas.

He says it's only a matter of time before another small town succumbs to increasing financial pressure.

The seven-member council for Bridgetown quit earlier this week, saying it was because of financial problems.

Liberal Leader Stephen McNeil is accusing the province's NDP government of ignoring the plight of cash-starved towns and rural municipalities.

McNeil says the province insists the problem is isolated but it's not.

He says government is ignoring the fact this is a problem from one end of Nova Scotia to the other.

Municipal Affairs Minister John MacDonell says the province has a good handle on the financial state of its municipalities because they cannot legally include deficits when they put together their budgets.