PERTH-ANDOVER, N.B. -- The New Brunswick government will spend $2.85 million on flood mitigation measures in Perth-Andover, but it stopped short Thursday of announcing plans to move houses that are in danger of flooding again.

A flood in March forced 500 of the village's 1,780 residents out of their homes and resulted in about $25 million in damage.

Local Government Minister Bruce Fitch said the money will be used to stabilize riverbanks and improve flood forecasting.

"The measures ... are a first step in our overall mitigation plan to reduce the impact of future events -- before they occur -- to protect lives, property, the environment and economy," he said in a statement.

Fitch faced some angry residents who said the government should pay for relocating homes to higher ground.

A report released two weeks ago suggested moving as many as 72 homes at a cost of about $8 million. The report concluded that some homes on the nearby Tobique First Nation may also require relocation at a cost of about $700,000.

Al McPhail, spokesman for a flood victims committee, said the government's priorities are misguided.

"With $2.8 million we could have moved 28 to 30 homes up out of danger," he said. "That's all we've asked for since March."

Fitch said if the province decides to move the homes, he's hoping the federal government will help pay the bill.

"We continue to work on that, to do some research, and hopefully we'll have an answer in the very near future," he said.

Misty Smith told Fitch she was frightened when the fast-rising waters surrounded her century-old home. She said the ground floor was submerged under 60 centimetres of water.

Smith says she wants her home moved to higher ground.

"I didn't choose to walk away from (my home), but now I want it safe," she said. I want my life safe, I want myself safe and I want my community safe."

Michael Walker lives in the nearby community of California Settlement. His home was not affected by the flood, but he said the government needs to protect Perth-Andover because of its role as a hub for the area.

"I want guarantees that next spring these people are safe," Walker said.

The new government funding will be used for flood management projects on the Tibbitts and McLaughlin brooks. It will also be used to stabilize the north bank of the Tobique River and the east bank of the St. John River to reduce erosion and increase the stability.

But Fitch admitted the work won't guarantee protection from another flood.

"There are no guarantees when it comes to mother nature," he said.

In April, the province asked a group representing Perth-Andover, the Tobique First Nation, NB Power and the government to examine what caused the flood and what could be done to help prevent similar floods in the future.

The report says road improvements should be made to improve access to the village and surrounding communities during a flood, including a new bridge across the St. John River that would cost at least $20 million.

Fitch said the provincial cabinet is still analyzing the report's findings.

"The decisions we are making will affect people from the area not only for today, next spring or next year, but for a lifetime," he said.

The government says nearly 200 claims for financial assistance have been processed and $5 million was paid out by the province in the weeks after the disaster.