Receiver Files Motion to Take Central Coventry Fire District Out of Bankruptcy

The state-appointed receiver that has been managing the Central Coventry Fire District filed a motion to take the district out of bankruptcy and said the state doesn’t have enough local support to implement the best long-term solutions.

In a Friday statement, David Sullivan, acting director of the Department of Revenue said that while the health of the district’s finances have improved since it entered bankruptcy in 2012, ”we do not have the local support we need to implement the best long-term solution. It isn’t in Rhode Island taxpayers’ best interest to continue spending thousands of dollars on a plan that will not be successful because it lacks the support form the leadership of the town and the CCFD board.”

Sullivan said that the district has $1.9 million cash on hand to pay bills.

The problems will remain unresolved unless the district’s board, the union and local elected officials work together, Sullivan said in the statement.

“Without local support, proceeding with protracted and expensive litigation in the bankruptcy court could result in unnecessary monthly expenses of $120,000 for Rhode Island taxpayers,” he said, adding “The state is not in the business of providing fire and rescue services to local communities. Despite today’s filing, the Department of Revenue remains available to offer guidance and technical support. We encourage the town and the fire district to look at best practices for streamlining services, enhancing accountability, and delivering better value to taxpayers.”

The district’s receiver, Mark Pfeiffer, is expected to file to have the bankruptcy dismissed and day-to-day control will kick back to the district’s board.

Meanwhile, the district is set to hold a special meeting on Oct. 19 at the Coventry Town Hall Annex during which voters will be asked to pick three people to fill vacancies on the board.

The meeting was also supposed to feature the presentation of the receiver’s recovery plan, the 2015 to 2016 budget and an update on the bankruptcy status.