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CCFD Public Meeting Sheds Light on Financial Issues

No votes were taken at the meeting that served as an informational forum for taxpayers.

 

 

Hundreds of Central Coventry Fire District residents joined employees, board members and Special Master Richard Land at Monday night's public meeting held at Coventry High School.

Land explained to the crowd that up until last week, he had intended on presenting budgetary information to be voted on by taxpayers, but as the much-anticipated meeting drew near, he decided that presenting his findings regarding the district's financial status would be the ultimate goal of the evening.

Fire District and Personnel

Land, accompanied by Chief Andrew Baynes and advisor John Murray, worked their way through a 53-slide presentation over the course of the nearly 4-hour meeting. The presentation (attached) began with a summary of the fire district's apparatus and station locations, response time goals, and diagrams showing how response times and coverage areas would be effected if specific stations or the entire district were shut down. 

According to Land, a reduction of paid personnel would negatively affect emergency services and although the possibility of a volunteer staff does exist, the cost of insurance, shift compensation, training and outfitting volunteers would also need to be taken into consideration.

When touching upon the possibilities of closure, liquidation, merger or take-over, Land explained that it would not be practical to rely on neighboring districts for long-term coverage, and that all options would require other entities to get involved and contract/legal issues to be dealt with, making for a very long process, diminished resources and delayed emergency response. 

Finances

During the financial portion of the meeting, Land referred to the $2 million in liabilities that the district has accrued. He explained that an assessment error had been made for CCFD in 2010 regarding a Commerce Park property, assessing it at $226,867,140 -  $217,285,200 more than the Town of Coventry's assessment of $9,581,940. 

He went on to explain that the error resulted in about $800,000 in revenue that was over-budgeted for and when the district was level funded the following two years, the problem was replicated twice, leaving a deficit of more than $2 million. Included in the problem was a 100% tax collection assumption, which Land explained to be quite rare, stating that the district's historical rate is closer to 95%. 

"The error was made in the first year but was apparently not communicated well and was unfortunately carried over for two more years," said Land. "I can understand your frustration and anger about this.  I can tell you what happened and I can tell you how I think we can work through it , but I cannot speak to why a board or anybody else made a decision not to do something about it." 

When several taxpayers inquired about the accountability of the error, Land said that the issue will be looked into, but that the current focus is to be able to pass a budget to move the district forward. 

Because of the error, the fiscal 2012 tax assessment was overstated by more than $217 million for commercial property, totaling $2,375,098,468 when combining the amount with residential and tangible assessments. 

Going forward, the adjusted fiscal 2013 tax roll has been adjusted to total $2,165,1098,480. Had the error not occurred, fiscal 2012 tax rates would have been (per $1,000 value) $2.29 for residential, $4.58 for commercial and $2.29 for tangible. 

A 2012 adjusted single tier tax rate was also presented, showing rates without the over-assessment and using a single class of property that comes to $2.62 per $1,000 of value. This number reflects a 44% increase for residential and tangible taxes and a 28% decrease for commercial. (See attached Slide #36 for tax rate examples.)

Land explained that the fire district's charter has never legally allowed for multi-tiered taxation, essentially meaning that an illegal tax rate has been used up until now. Residential taxpayers who paid less than what they would have had to with the proper taxation will not be billed for the difference, but the issue of whether or not commercial property owners will be reimbursed for what they "overpaid" may have to be presented to the court in the future. 

When a resident asked if receivership proceedings would eliminate the possibility of taxpayer reimbursement, Land said that it would be a possibility, but is something that will be looked into. Also being determined is if the fire district has "errors and omissions" insurance and if its charter can be amended through legislation to legally allow for a tiered tax rate going forward.

2013 Budget Going Forward (Slide #39)

Land explained that if the preliminary fiscal 2013 budget had been approved, it would have resulted in a loss of approximately $361,000. The revised budget would show a slight surplus, but at a significantly higher revenue for taxes.

"I want you folks to understand that when we do present the budget that we're asking you to vote on - and it won't be tonight because I want you to have time to absorb this information - we're looking at a significant increase in your taxes, there's no question about it," said Land.

He also stressed that CCFD firefighters appear willing to discuss contract modifications to try and lessen the burden on taxpayers but that all parties need to be willing to sacrifice in order to resolve the problem.

"We've had two months with this information and I have demonstrated that it's not easy, that problems run deep and that every time we turn a corner, we see new problems," said Land. "The information we have right now is not necessarily perfect, but we're doing the best with what we've got and will continue to work on it."

An upcoming meeting likely to be held in February will hopefully afford Land the opportunity to present a budget to be voted on by taxpayers. The goal of an approved budget would be to get the district through the upcoming fiscal year and allow for a long-term plan to be devised.

"I want to use the right process to do this because I don't want you to make this decision in a vacuum," said Land as he concluded the meeting. "We will provide more information in the coming weeks as we continue to fine tune this and I think by the next meeting we will have a budget for you to consider."

Related Topics: Central Coventry Fire District 2012 Budget Meeting, Central Coventry Fire District Budget and Taxes, Central Coventry Fire District CCFD Receivership, and Central Coventry Fire District Fiscal 2013 Budget Richard Land

RJ

7:34 pm on Tuesday, December 11, 2012

we're looking at a significant increase in your taxes, there's no question about it," said Land.
There are many people (elderly, disabled, disabled veterans) who will not be able to pay a "significant increase" and will result in leans or foreclosers. If the option is to pay higher rates because of no fault of the tax payer but in fact the fault CCFD or allow CCFD to go bankrupt I say let them go bankrupt.

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Concerned taxpayer too

7:56 pm on Tuesday, December 11, 2012

Who let such an error of valuation slip through not one year but twice!!!!!

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Frances Poulito

9:27 pm on Wednesday, December 12, 2012

Amen & Right on Brother! Why would the taxpayers vote for an increase that residents of the town cannot afford, just because the elected officials were irresponsible in their fiscal duties! The result would be that no-blame, hard-working home owners would be burdened to the breaking point in many cases. The end result would be that the same entity that came to us asking for understanding would foreclose on houses and leave residents and their families homeless. This is not an overstatement. This is not a hypothetical. We would vote to try to correct the fire district's "error", and they would, in turn, oust those same voters out of their houses. All this for no other reason than a vaguely explained error that nobody has even apologizing for or owned up to. REALLY!!

We better think hard before we vote. I know that the fire services are life-saving and the men and women working are not at fault. But neither am I.

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Coventry Resident

8:03 pm on Thursday, December 13, 2012

Here are your crooks
Treasurer: Tom LaColle
Tax Collector – Jeanne Graemiger
Chief Seltzer

Rebecca S

8:27 pm on Tuesday, December 11, 2012

Somebody needs to lose their job or job(s) over this mess!

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ETBox

9:06 pm on Tuesday, December 11, 2012

@RJ: Let CCFD go bankrupt? I'm sure you'll be singing that tune until your house is a raging inferno and you wait 25 minutes for an engine or tanker truck from a neighboring town. oh wait better yet.. "Let them go bankrupt" is something I hope you keep reminding yourself when you or family member is having a medical emergency. You know, the stuff that CCFD responds to and aids people in as well as responding to fires. So when your sitting in your recliner, gasping for air and having crushing 10 out of 10 chest pain and having a widow-maker heart attack, just keep singing that tune of "Let them go bankrupt... La la la Let them go bankrupt!" Oh and don't even THINK of be pissed off at the responding EMTs when your OUT OF TOWN rescue that they came to you on, and is responding mutual aid, takes more then 10 minutes to get to you because oh yes that's right..."LET THEM GO BANKRUPT!" was the tune you were singing before! Well keep right on singing it all the way to the cath lab at Rhode Island Hospital and hope they don't have calls in their OWN town that they will attend to first. So then your call gets bumped to ANOTHER town, possibly farther away. But oh that's right..."Let them go bankrupt"

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Brady Trautman

9:15 am on Wednesday, December 12, 2012

Let them go bankrupt was the tune the accountant was singing when they forwarded the 700,000 'mistake' three years in a row. NOW its how do we fix it!? Without being forced to give something up people will allow poor performing officials to continue doing what they do. Accountability has to be demanded and just raising taxes rewards the poor performance. No one wants less service . We are not talking about having to take your own trash to the dump. We are talking about lives. Time to put some educated non greedy people in these jobs instead of the good old boys that perpetuate the problem. These yahoo's can't be in charge of millions of our dollars.

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RJ

6:23 pm on Wednesday, December 12, 2012

I guess you don't know how bankruptcy works.... instead of your never ending rant I suggest you go a learn how restructuring under bankruptcy works. Anthony passed their budget last night with a rate of 28 cents per one thousand. They once again did not raise rates, as well as the other districts in town who have managed to keep rates the same and in one case I know of have lowered their rate. CCFD rate is $1.82 per 1000 on assessments that are over blown, on my property alone by $85,000. over current market value. In 2011 they wanted to raise that to $2.55 per 1000 and now there is talk of that going to $3.00 per thousand or a 62% increase. So with that said I stand by my remark....LET THEM GO BANKRUPT.

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Donna

9:29 am on Wednesday, December 12, 2012

Over exaggerated, until it is you or your family!

ETBox

9:30 pm on Tuesday, December 11, 2012

No, be an EMT/FF for over a decade. It's a tragic reality in some cases.

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eye in the sky

9:47 pm on Tuesday, December 11, 2012

I believe Mr. Land is referring to the treasurer Tom Lacolle . He quit abruptly a few months ago and no one has heard from him. I had friend ask a board member if anyone has seen him since he quit and they said no.

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coventry voter-Jay

10:35 pm on Tuesday, December 11, 2012

Is that the same Tom Lacolle who is the current treasurer and Coventry fire district(anthony)

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Another Voter

10:48 am on Wednesday, December 12, 2012

Saving the CCFD is the only and right thing to do! Save it and it may save your life someday. Has all the past finger pointing been going the wrong way, looks it to me. The good old boys symdrone seems to have changed directions. Let the receivership take it's course find the wrong doers fix the issues and carry-on.

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Coventry Resident

8:01 pm on Thursday, December 13, 2012

You must be in on the pay off. Must be getting the raises you voted in for yourself. When you hire someone to do work for you, and they tell you the job will cost $10
and they they try to charge you $1000 and part of that is a raise they gave themselves...you FIRE THEM - you don't keep the crooks in office that ripped you off

WILLIAM E LOWES III

11:16 am on Wednesday, December 12, 2012

I say lets have a Boot Drive and Bake Sale, or any donations that good Coventry Citizens are willing to make just to keep the Fire Department afloat until this whole matter is resolved and put back into "affordable" account. Lets pay off our debts of error, and move forward. It took years, and our forefathers to make this Fire Department and all of Coventry (all Departments) what they are today. We've lost our Heritage by allowing higher powers to make decisions. We're all to blame. Pull together, Stop the Cancer before it spreads.

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Brady Trautman

11:46 am on Wednesday, December 12, 2012

The good ole boy syndrome has not changed directions! Take the emotion out of the equation. This is a failed business. It has failed there is no more forgiveness for incompetance (sp.) . Just bailing out the dept. is the same as bailing out the banks. Bad decisions were made and now here is the result. If we allow this to be bailed out why wouldn't the next district do the same . Why wouldn't other entities in the town do the same. If the taxpayers don't send the message they will continue to be ignored and the same ole same will continue. Again let me make this clear I in no way find fault with the average firefighter. This is politics and back door treachery that has had this town in its grips for years. This is the largest town in the state in my opinion it can no longer operate as a town It has grown too large The budgets are in the millions. Whenever there is that much money involved greed and dishonest people will bend and manipulate to benefit themselves or there good old boys. Remember Mr. Land is not our savior. Twice at the meeting he referred to the taxpayers as "you people" and corrected himself and said "you folks" this guy is bellied up at the table and is collecting his 175.000 in legal expenses. With no respect for ' you people'. It's time to stand up and make drastic change so a precedent can be set. If you run it into the ground buried it will stay!

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WILLIAM E LOWES III

3:11 pm on Wednesday, December 12, 2012

To call it Business is a stretch, One would have to receive moneys in lien of free transport, medical emergencies, house calls, Industrial fire drills, etc. These would be all invoiced, payment due (keep taxes at minimum). Some are covered by insurance. I like to think of this as retraining, not a bailout. Working under a new Charter with new rules.------ If other districts were to do the same then you could lead by example. The Town isn't large, it's just concentrated in one area. As for budgets in the Millions, just need a newer calculator with more decibel points. Numbers are numbers, as long as they are correct!

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Frances Poulito

9:39 pm on Wednesday, December 12, 2012

Whoa, now. One could definitely say this is a business. And Taxpayers are the CEO. We elected CFO's to oversee the day-to-day. They screwed it up. Do we throw more money to the project, without even knowing what the true error was. I say no. As for just needing a newer calculator, I say this old adage - garbage in, garbage out.

getreal

3:06 pm on Wednesday, December 12, 2012

Sounds like Brady is throwing the baby out with the bath water, You find out who and what mistakes were made and you put the right people at the switch to stop this from happening again.

If you feel that you should let everything fail you obviously are part of the problem and not the solution.

" If we do not learn from our mistakes then we are destined to repeat them"

Author unknown

Lets fix this problem the right way that people with some sort of intelligence would. I have not used CCFD yet but my family has and they are very grateful.

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yada yada

3:47 pm on Wednesday, December 12, 2012

Sorry stop drinking the Kool-aid. There is money received its your taxes. I assure you the 700,000. dollar mistake was found the first year. If your tax bill came to you 7,000 higher than what you owed you would make sure someone knew. Please stop being so soft. Accountability please.! Two columns assets and liabilities. One decimal point. Your taxes are being pilfered and you turn the other cheek. Lambs to the slaughter! If we do a boot drive we are gonna need bigger boots. lol

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eye in the sky

5:56 pm on Wednesday, December 12, 2012

Yada Yada you are part of Kool-Aid drinking problem!!! That "700,000" was part of the Cambio property bought back by the town and that tax was never collected. The town owes the district money for that but has not seen fit to pay CCFD. Get educated before you open your mouth!!!!

eye in the sky

6:00 pm on Wednesday, December 12, 2012

Johnny is that you??? RJLE that b#llshit is right off the Assholone flyer. No I am not from the board, not a Firefighter never was..So don't throw the Kool-Aid on me!! By the way who is the one that spoke out that got voted off???

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Lauren Costa

7:23 pm on Wednesday, December 12, 2012

RJ, Coventry (Anthony) Fire District passed a rate of 28 cents on each $100 of property, not $1,000.

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Realistic voter

7:55 pm on Wednesday, December 12, 2012

RJLE You "DON"T know who he was but he was going to do all this wonderful stuff!! WOW must have been "Jesus" himself!!! Listen to yourself !! Yea you sound that foolish!

yada yada

8:46 pm on Wednesday, December 12, 2012

Eye in the sky, Glad you mentioned the Cambio Property. Do some investigation on why that property has such a hold on Coventry. May be we can connect some dots. Please keep a civil tone. Thanking you I am.

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rjle

9:51 pm on Wednesday, December 12, 2012

Realistic voter Thanks for the arrogant comment

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Chris

11:38 am on Thursday, December 13, 2012

At the last meeting plans were purposed on how to 'continue' on with the purposed budget. In order to do so it will reflect a significant increase. This increase will put CCFD at the highest fire district tax rate in RI along with the property tax rates in the town being up near the top also. Combined will put us on the top. These figures are just to 'continue' along. The 2+ million deficit will be figured out later as we need the current budget to pass first. With no tax caps it's not hard to see future significant hikes are needed to address that in the future. So far to date when questions are asked the common answer is " It's being looked in to" or "That will be addressed later but first the budget needs to be addressed". I am not comfortable "moving forward" (passing a higher rate) without the full reasons as to why we are in this spot to begin with.In this day & age not being able to hold anyone accountable and having to accept a clerical over site error excuse on a 3 million dollar (debt & overspending) opp's does not sit well. It's just very hard to open up my wallet to fix something we did not create without full knowledge on how it happened and more importantly being able to trust it will not happen again. Sometimes it is better to sacrifice and hit rock bottom to be able to rebuild structure properly then to repair a sinking ship so it can limp to shore for repairs. To quote a line from the meeting "problems run deep". Maybe an example needs to be made here

Realistic voter

1:09 pm on Thursday, December 13, 2012

" Chris" like many others you were not really paying attention, Answer this when was the last tax increase??

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Chris

5:23 pm on Thursday, December 13, 2012

People are different and share different opinions. Both comments are true & I am paying attention. But I am a person who stands behind sheer principal and would rather pay more out of pocket to have the situation at hand fixed the right & correct way then to give in and take part in paying for a 3 million dollar mistake I did not make. Nothing in this world WORTH HAVING is cheap & easy. No matter who you are, what you came from or what god you pray to we all bleed red. We are all equal as a human race and in this case the people on the bottom were taken advantage of. There is no way a 'clerical error' of that size can go undetected for 2 years without someone knowing about it. Yet not a single person could do anything about it except stretch spending right to the last penny. I wish I could make a clerical error in my check book then when people come to collect say opps sorry cant pay it. How bout you just jack up your rates and let the rest of the people who use this lending institution pay for it. A bit far fetched but you get the idea. It will be interesting to see how much 'fat' can be trimmed off the budget at hand. They keep asking us to pitch in well before I say yes or no I want to see how much they are willing to give back first. An interesting point was the above comment asking how much the district taxes have gone up in the past 3 years. I'll answer that ... not much. That said why has the spending gone up so much knowing the increases were so slight ?

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RIPensionProvider

5:37 pm on Thursday, December 13, 2012

Correct me if the following information is wrong:
1.) CCFD is currently $2.6 million in debt
2.) CCFD will have to issues credits to all commercial property owners because the current law does not allow a two tax tier structure system and therefore all commercial properties owners in the CCFD were over billed by the difference between commercial and residential rates.
3.) The CCFD will also have to issue credit to some residential properties owners who assessments have fallen because the law states the CCFD has to issue tax bills using town of Coventry's current real estate assessment values. Using the old assessments, which were higher, allowed the CCFD to increase the tax rate per $1000 even though the increase was never approved by the residents of CCFD.

If the above information is correct, what are the total liabilities of the CCFD, we have to be talking millions more than $2.6 or does the $2.6 million account for these errors.

A link to the law is provided below.

http://webserver.rilin.state.ri.us/BillText12/HouseText12/H8104A.pdf

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Another Voter

6:36 pm on Thursday, December 13, 2012

1. You are correct there is debt.
2. You are incorrect if any credits are issued that will have to be ordered by the court.
3. you are incorrect. The law that you refer to is the charter of the CCFD, albit you don't have the entire charter. The Charter does state that the tax payers shall set the levy and tax rate. they did in fact move and pass that the District levy at the rate that they are now doing so, the motion was to charge at the 2009 assessed value and tax rate. that is what happened. does it follow the law NO but that is what the people ordered the district do and that is what they did.
There is an issue that caused the debt to grow and it looks as if the receiver is addressing it.

RIPensionProvider

7:07 pm on Thursday, December 13, 2012

1.) So basically any commercial property owners who want a credit will have to sue CCFD for a refund or will a judge in the BK rule on the refunds?
2.) If a motion is made and the people of the district approve it, it does not have to follow the law? Does this apply to minimum manning, pay rates, overtime and pensions?

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Chris

7:14 pm on Thursday, December 13, 2012

These exact questions were asked at the past meeting. Richard Land answered them the best he could. Not in his exact words but this is what he had to say ..
1.) Yes
2.) This will be looked into and be a court issue later on , Yes the law was broken
3.) Possibly , this question piggy backs question 2 and needs to be looked into.

"If the above information is correct, what are the total liabilities of the CCFD, we have to be talking millions more than $2.6 or does the $2.6 million account for these errors."

Richard Land was going over the proposed tax hike and the years that reflected the totals. It went from 1 year to 5 years , I forgot the exact figures. But right before the break the stenographer asked for (due to her fingers cramping up) someone asked if those figures also included paying off the 2.6 million error. He responded with a very quick low tone "No". Then rolled the talk into something else right away. I do not know if he heard or understood the question right before he answered but the the question was loud & clear and his response was direct and quick.

Maybe someone else could shed some light on if that was a true statement.

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Chris

11:33 am on Friday, December 14, 2012

As far as homeowners is concerned you may want to look into your policy and shop around. My house is assessed by the town at 207K (CCFD has it as 257K) and my premium is only 450 a year with a 1K deductible. Structure is written at a 200K then all the other things are separate. This is an honest policy also with nothing on my end hidden. The main thing that keeps it down I will say is I have no hurricane on it. I feel how my house & property sit I won't have tree falling issues and any other mishaps I can take care of myself anyhow. Some may not be comfortable with that and need the added protection. It pays to shop around and get out of the "RI" based agents & go with an interdependent. Everything has it's pro's & con's , all depends on what your comfortable with. So in my case if CCFD is no longer my increase HO will be in the same area as the hike. Keep in mind central Coventry can not go without emergency care for long. This is not a forever & always venture if worst case happens. Like stated above everything has pro's & con's and you go with what makes you comfortable and able to sleep at night.

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WILLIAM E LOWES III

1:35 pm on Friday, December 14, 2012

I got a 'headache' -------- to many " decibel "

eye in the sky

6:25 pm on Friday, December 14, 2012

Someone finally said it!!!

Coventry Resident

8:03 pm on Thursday, December 13, 2012

Here are your crooks
Treasurer: Tom LaColle
Tax Collector – Jeanne Graemiger
Chief Seltzer

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eye in the sky

6:28 pm on Friday, December 14, 2012

And don't forget Bob Crowe who I found out was alway's defending Tom LaColle and missed most of the meetings!! Quit the board after the audit was started HMMMMMMMMM!!!

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jaydenleigh3124

1:58 pm on Tuesday, December 18, 2012

Central Coventry is in financial disaster.We do not need any additional expense (gas!!) and/ or wear and tear on our Fire Engines which get approximately 5 miles or so per gallon . Residents are already facing tough times trying to control their budget as it is. Most towns would never allow this or any other wasteful spending. Why cant we have a Santa outside of the Arnold road station which is a highly traveled road, allowing Santa to take donations to help needy families affected by the hard economic times we are currently facing, instead of the wasteful spending being incurred by people who seem to be oblivious to the hardships of others.

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jaydenleigh3124

2:41 pm on Tuesday, December 18, 2012

The scare tactics from CCFD needs to stop!! Misinformation of higher insurance costs and meetings being postponed or scheduled for a Monday night Patriots football night do not go unnoticed!! We need to dissolve this union which seems to be more focused on money that is not there than serving the public. We need to go back to the basics of what we can afford and base it around that budget. Right now we have firefighters who get paid a salary much like city firefighter's. We are a small town community that should operate with a basic non unionized fire department that is affordable by the people much like our other districts who work just fine that way. If our current firefighter's do not agree, and as far as I'm concerned they knew exactly what they were doing with the budget by rewarding themselves with more than they should have been, we need to dissolve this current corporation like they do in the private sector and rehire non union that are willing to be paid according to the budget which the taxpayer's are able to afford. As far as people's insurance increasing, these firehouses will only be temporarily unmanned because of the high unemployment rate and the long list of people waiting to be employed as firefighters who will be more than willing to be paid what the taxpayer can afford. The tax payers will once again be in control of this district and not controlled by over rewarding union firefighters thinking only of themselves and not what the community can afford. .

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yada yada

4:33 pm on Tuesday, December 18, 2012

Need some facts. Is it true that the town of Coventry owes CCFD the 700,000 in taxes for some property they purchased . Times three years. Is it SOP for the town to pay taxes to the depts. on property within each depts. territory?

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jaydenleigh3124

2:37 pm on Wednesday, December 19, 2012

The state or town itself will never leave any station unmanned. There are more than enough unemployed people to fill those positions. There's no excuse to reward bad behavior on the part of CCFD. Insurance companies cannot just assume those positions will not be filled. It's a joke to justify doubling fire taxes under the false pretense of insurance increases. The truth of the matter is that more than likely it will never happen. Those stations will be remanned immediately under state law. Those firefighters who do not agree with the new circumstances will be replaced with new firefighters willing to cooperate with the new budget. There's a list a mile long of firefighters waiting to become fireman.

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