Central Falls receiver details 5-year recovery plan

The Rhode Island-appointed receiver who filed for bankruptcy on behalf of Central Falls has unveiled a five-year recovery plan to get the city back on sound financial footing.

Receiver Robert Flanders Jr. said Thursday the new financial plan is a “major step,” but most of the measures are already in place. He added Central Falls is a “city that has been foundering but is setting a new course.”

Flanders sought bankruptcy protection in federal court last month, saying that was the only way to return the city to solvency. At the start of the current fiscal year, Central Falls was facing an $80 million unfunded pension liability and a budget shortfall of more than $6 million.

His plan calls for property tax increases of 5 percent a year for the next five years. He said no more city workers would be laid off.

Flanders said the proposal is conditional on retirees accepting cuts to their pensions and unions agreeing to concessions.

If the five-year plan is approved, Flanders said he would finish his term as receiver on Jan. 1.  The city’s elected officials would return to power.

Article source: http://www2.turnto10.com/news/2011/sep/22/5/receiver-detail-central-falls-financial-plan-ar-752816/

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