CCFD Assistance Bill to Become Law Friday

Gov. Lincoln Chafee declined to sign  permitting the financially troubled Central Coventry Fire District to issue tax bills to fund the district until Sept. 1, but he did allow it to become law.

In accordance with the state Constitution, if action is not taken by the governor on a bill within six days (excluding Sunday) following its passage by the General Assembly, it automatically becomes law. 

The House of Representatives passed the legislation on April 25 and the Senate on May 2.

The bill, 2013-H 5176A, will keep the fire district in business using the previous year’s budget while the district works to develop a new budget, new tax assessment and collection of taxes by Sept. 1. It specifically authorizes the fire district to continue to operate under the tax levy last authorized by the district’s voters, excluding the multi-tiered taxation used in the past that was found to be in violation of the district's charter. That authorization will expire on Sept. 1 if district voters have not approved a new budget by then 

During a status update hearing in Superior Court last Friday, Special Master Rick Land said if the bill became law, he would soon issue new tax bills to Central Coventry residents using a single tax rate of $2.86 per $1,000 of assessed value, based on the Dec. 31, 2011 valuations.

of assessed value 228 to 204. by a 1,357 to 484 vote margin.

Local legislators who met with Chafee early in the week explained that the governor was reluctant to put his signature on the bill as it temporarily nullifies the vote of the taxpayers.

The CCFD legal process will continue on Friday, when a hearing is held to address two requests submitted by Special Master Land. One petition requests authorization to hold a new election for the district's board of directors, following the February court order from Judge Brian P. Stern that the former members resign.

A second emergency petition by Land will also be heard on Friday requesting authorization to enter into a short-term financing agreement with Centreville Bank to obtain funds necessary to keep the fire district operational during the gap period, not to exceed $1.5 million. Without the loan, Land feels the district faces the serious risk of running out of funds in the interim. 

The hearing will be held on Friday, May 10 at 2 p.m. before the Providence County Superior Court, located at 250 Benefit St., Providence, 5th Floor, Courtroom 11.