Judge Approves Special Master's Request to Issue Voluntary Tax Invoices to CCFD Residents
The decision will allow the struggling Central Coventry Fire District to begin receiving some revenue to pay firefighters and other operating costs.
Firefighters, board members and several taxpayers of the Central Coventry Fire District along with several town officials including Town Manager Tom Hoover, Town Council President Gary Cote, Police Chief Bryan Volpe and Asst. Town Solicitor Arthur Reed gathered at the Washington County Courthouse in Wakefield at 2 p.m. on Wednesday.
The occasion was a much-anticipated hearing regarding the fire district's recent special mastership filing that occurred last Tuesday. Following an annual meeting on Oct. 1 where the passage of the 2012-2013 budget was tabled until Dec. 3, Interim Chief Andrew Baynes and then Board of Directors Vice-President Joseph Bonn announced at a press conference that the district was out of funds needed to pay staff salaries and operating costs. Due to its inability to send out tax bills to residents, the district's stream of revenue was forced to a halt, leading to the decision to file for receivership.
Wednesday's hearing was presided over by R.I. Superior Court Judge Brian P. Stern who began the proceedings by explaining to the gallery that the decision to hold a preliminary hearing just two days after attorney Richard Land was appointed as the district's Special Master was made because it is before anything else, a public safety issue.
"First let me say that it would be extremely difficult to close the doors of this department without a plan in place," said Judge Stern. "Because the district has outlined that they to not have the funds to continue operations and pay the firefighters who have been working without pay for 12 days and are owed more than $150,000, we are moving along quickly."
He outlined the specific aspects of the district's plight that he intended to address during the hearing, which included ensuring that the court understood the district's requests, allowing an opportunity for involved parties to be heard, obtaining a preliminary understanding of public safety issues that have arisen and allowing the court to authorize any emergency steps that need to be taken.
Special Master Richard Land explained that he has quickly begun to familiarize himself with the situation and the concerns of members of the district, and although it is still a bit soon to grasp the full scope of the situation, it is widely understood that his initial goals are to pay the firefighters and continue to provide fire and emergency services to residents.
After discussing the short-term contingency plan that is in place regarding automatic aid from the three additional Coventry fire districts and neighboring communities, Judge Stern expressed his concern that a short-term plan would not be acceptable for the safety of the community in the near future.
"The court is concerned from a public safety point of view that we at least need to be prepared in the case that the Central Coventry Fire District will no longer be providing coverage," he said. "We hope that doesn't happen but we need to be prepared for it."
Chief Volpe and Council President Cote both spoke of their intent to provide as much assistance from a town level as possible - an action that will include allowing the fire district to use the town's fuel supply to keep its vehicles on the road and responding to emergencies. The specifics of this decision will be confirmed at a future court hearing, but the town's reimbursement when the district gets back on its feet will be required through the special mastership process.
"Public safety is what all of us here are about today," said Volpe. "I just want to thank my brothers in the fire department for volunteering like they have been. That is unheard of in this day and age and I applaud them for it."
"The job that these men and women do is irreplaceable and indispensable to the Town of Coventry," said Cote. "We will do whatever we can to help them come out a stronger and better department than when they started and I know they are capable of that."
Judge Stern went on to suggest that Land implement the formation of a public safety committee, which should consist of Land himself, Interim Chief Baynes, Police Chief Volpe, a representative from the Town Council or the Town Manager, chiefs from the town's additional fire districts, district board members and a representative from the firefighters' union. He also plans to request the short-term technical assistance from the RI State Fire Marshal, RI Department of Health director, a representative from the RI Emergency Management department and possibly representatives from the state departments of revenue and administration.
Judge Stern and Land discussed and both agreed that the only way for the district to begin moving forward in a positive direction is to enable the district to send tax bills out to its residents in order to begin bringing revenue back in.
Judge Stern agreed that because of the emergency nature of the proceedings, the court would exert its equitable powers to allow Land to mail voluntary tax invoices to residents in amounts equal to the $5.2 million tax levy from the previous year's bills. The invoices will be rendered to the taxpayers "in anticipation of an approved budget and approved tax levy" in December and may be later supplemented with an additional bill reflecting any changes that will be voted into effect by the residents. A letter explaining the court's decision and how it will effect the current situation will accompany the tax bills.
"It we are able to send these out to the taxpayers, there's a general belief that people will understand that the services need to be delivered to the community," said Land. "I hope that this will allow the residents to step up to the plate and essentially afford us time to work on the longer-term financial issues with the district so when we come back to court or hold the Dec. 3 tax meeting, we will have a real plan to present."
"The first tax dollars that come in, the court has no problem saying that they will go towards salaries owed and ongoing salaries," stated Judge Stern.
Stern will also require that a financial plan be put into place by Land and his soon-to-be-formed committee that everyone can understand and have confidence in, as well as a five-year plan that explains how the district will deal with the debts that it has incurred. Public meetings that are widely advertised to residents are another requirement of the court.
"I want this to be a very transparent process," said Judge Stern. "This is a public entity and through the committees, meetings and public filings, everybody can be aware in terms of where we stand."
The hearing concluded with a report from Blue Cross Blue Shield of Rhode Island legal counsel Russell Marsella, confirming the reinstatement of CCFD employees' health insurance coverage that had been terminated pre-special mastership, effective immediately and retroactive from Oct. 12. Marsella did state that it may take up to 24 hours for employees to be added back into the system, but that they are covered immediately.
"I believe we covered the most significant points and I thank the court for the progress that was made today," said Land. "It will give the firefighters some comfort and will allow us to address some of the emergency contingency plans. I hope to have the committee formed very quickly and have short and long term plans in place before we lose any more weeks."
Stay with Coventry Patch for more CCFD updates as they become available.
Uncle Bob
9:11 pm on Thursday, October 18, 2012
Voluntary Tax Invoices, now I've heard it all. I will give the CCFD the SAME courtesy it showed me when I asked to have a late fee waived, "request denied".
In41time
2:56 pm on Friday, October 19, 2012
Uncle Bob that is hilarious. I paid my bill on time but it was posted 2 days late and was assessed a late fee. No waiver for me either. I wasn't going to pay it but they held my car registration renewal hostage. "Request Denied!"
John
5:01 pm on Friday, October 19, 2012
You will think twice when you need them, Maybe you should have paid your taxes on time like the rest of us. It's you I look down on!!!
In41time
5:18 pm on Friday, October 19, 2012
John... it's still hilarious!
In41time
5:51 pm on Friday, October 19, 2012
John... BTW when you say pay your taxes on time 'like the rest of us' are you including Mr. Gordon the FF who hasn't paid his taxes back to 2009?
In41time
6:39 pm on Friday, October 19, 2012
OOOPs ... I was referring to Dave 'Gorman' the CCFD FF that hadn't paid his taxes due to a dispute dating back to 2009. Such a flash in the pan I forgot his name there for a moment. John I' m expecting the obligatory name-calling from you now so let's have it. LOL
mad hatter
9:11 pm on Thursday, October 18, 2012
i think there needs to be at least 3 elected citizens to the board. if both sides of an argument are not presented, the problem will never be solved.
Richard Flint
9:11 pm on Thursday, October 18, 2012
Please report thecopay on health insurance for us....
rjle
11:17 pm on Thursday, October 18, 2012
I am sorry to see this happen but its long due the budget and district taxes were abused and misrepresented by all involved.
So its time to stop the bleeding and finger pointing and move on Sell it off do whats best for the taxpayers you know the one that feed the district,
I would love to see it a one town one tax like WW did with some legislation and planning it could work. but i know we will go back to the same old same .
Emile Schenck
12:20 pm on Friday, October 19, 2012
Wow lets see now. $150,000 needed for 12 days only??? that's $12,500 a day 52 firefighters? @ 8 hr, day? 240.38 a day each. or $30.04 per hour...Now the message is clear cut them back to $15.00 per hr. Lay off 25 of them and revert to call men...30 bucks for playing card now really, Oh and stop using equipment for personal use, And no more painting equipment (pink) pad... without getting approval. You guys answer to no-one everyopne needs a boss to hold them in check. And quit crying about having iot so tough, hundreds of guys would take your lace in a heartbeat. the money used to paint the truckls Fire Rescue and squard car has nothing to do with fighting fires, If we elect to donate to any worthy cause it should be our choice not yours,,, Note just a few ideas I have more....
Lauren Costa
12:24 pm on Friday, October 19, 2012
Emile, just to be clear, the pink vehicles, and the labor/materials used to paint them does not come from CCFD funds, payroll or any other kind of taxpayer money. The labor is voluntary and the supplies are donated. CCFD stores the fire truck for the RI chapter of Pink Heals, but that is the extent of it.
RS
2:56 pm on Friday, October 19, 2012
You are paying them to be available.....not by the call. And it's 10 hours per day and 14 hours at night...redo your math. Here's a better idea...check your facts before posting stupid comments about painting trucks. No one asked you to donate to Pink Heals Foundation, the firefighters contribute. So much hate....maybe you should try having a more positive outlook on life.
John
5:01 pm on Friday, October 19, 2012
Another uninformed moron, You will find lot's of company here!!!!
JLG
4:15 pm on Friday, October 19, 2012
Firefighting demands a high level of dedication and professionalism for those who choose it as a career. A firefighter must possess the courage and stamina to risk their lives for the sake of others. They must also study long hours and go through extensive periods of training to become effective and efficient professional firefighters. Whether it is rescuing people from a burning building, caring for their medical needs, extinguishing fires in a home or community business, this profession is all about HELPING OTHERS. Firefighters are essential to making our neighborhoods safe for our residents, our visitors and the job providers we need in order to keep our towns running. You would think that professionals who risk their lives to protect us would receive more respect and support from the very COMMUNITY they serve. Yet it is our very communities that suffer when loved ones are hurt or in danger and who do you call for help? Why is it that so many legislators and citizens alike don’t seem to understand this and do everything in their power to take away from these brave men and women at the first notion of a tax increase? Why are firefighters, police, teachers and members of our military always the first on the list to take the cuts and make the concessions? We need to remember, “You get what you pay for” and if you want the best and brightest protecting you and teaching your children…you need to be willing to make your own concessions!
JLG
4:15 pm on Friday, October 19, 2012
Central Coventry Fire Fighters are stepping up and working without pay in order to straighten out the finances in their town, so that those in charge can move forward with what is best for the TOWN! They did not choose to strike or walk off the job! No one can afford their taxes, who wants to pay more? But To blame all "firefighters" for the money troubles caused by those actually paying the bills is wrong. They are as caught in the middle with this as you are! How do you think these men and women will be paying their bills WITHOUT A PAYCHECK? The COMMUNITY keeps voting in the same career politicians and keeps them paid well while they bash the unions and these "local heroes” who sacrifice time away from their families and their lives, to do their job to protect you! Would you risk your LIFE for a paycheck? Would that career politician who is spinning the stories you are listening to? How much is it worth to you to have someone trained and ready to pry you or your loved one out of a mangled car or burning building and get you to the hospital? I’ll say it again, you get what you pay for…
rjle
8:17 am on Saturday, October 20, 2012
No one is working for nothing they all will get back pay and we would want them to recieve it they are working because it's in the best interest for them. Keep in mind what they negotiate in their last contract this year hasn’t even caught up to this mess until 2014 ask them and ask the board that approved its not thier problem just pay them or lay the last four off.
John
9:54 am on Monday, October 22, 2012
Would you work for nothing??? Thought so ...Go back under your rock !! Lay off the last four and pay back the goverment over 300,000 for the grants ...Great idea moron.. know your facts before one opens it to insert foot!!!!!!
John
4:10 pm on Saturday, October 20, 2012
OK Today I received my Voluntary Tax Invoices can some one tell me why in the heck are we are using town of Coventry's property valuation for 2009 and not Coventry's property valuation for 2010 or even 2011 isn't the past years valuation what you base the rate on
John
4:10 pm on Saturday, October 20, 2012
I do realize this bill hasn't been approved by the taxpayers, but be aware you are obligated to pay no matter what , but using 2009 come on is the because it was the higher valuation I know mine went down
I think we are getting stiffed no matter what is said.
RIPensionProvider
5:54 pm on Saturday, October 20, 2012
I may be wrong, but I thought state law requires the fire district to use the town's current assessed value when issuing bills? Shouldn't the bill be calculated using the fire district's current rate multiplied by the current real estate assessed value per the town of Coventry.
Miadlor
10:49 pm on Saturday, October 20, 2012
If this is the Law....can you locate it?
QuidnickCrusader
11:56 am on Sunday, October 21, 2012
I am back with another attempt to bring facts to a discussion. This situation is serious and tragic enough, and the uninformed comments made here only add to the problem, rather than help it. So here we go.
First off, it is true that the home valuations being used in the calculations for the bills is from 2010, before the Town's statistical revaluation was completed, which was in December of 2010. When drafting the Town budget for fiscal 2011/12, Town Manager Thomas Hoover explained how that revaluation would negatively affect the amount the Town would collect in tax levy if the current rate per thousand at the time was not adjusted to reflect the reduction in valuations. You can view that report in his proposed budget for that year here:
http://www.town.coventry.ri.us/Town%20FY12%20Detail-1.pdf
As pointed out correctly, the fire districts in town base their tax rates off of the Town's valuation. What gets lost in the translation is that the various fire district's fiscal years and the Town's fiscal year do NOT run concurrently.
QuidnickCrusader
11:58 am on Sunday, October 21, 2012
The Central Coventry Fire District (CCFD) budget proposed for fiscal 2011/12, was presented to voters at the Annual Meeting in the Fall of 2011, which would have been the first year of basing the tax rate on the post-revaluation property values. The vote that took place at that meeting voted to level fund for six months, while CCFD pursued nearly $900,000 in back taxes. What that action essentially did, was to force CCFD to use the assessments and rates from the previous year in order to collect the same levy. The voters did not authorize a new budget, therefore removing the mechanism for the CCFD to adjust the rates to reflect the decrease in property values. When the meeting commenced six months later, it was presented that the district could get by on the level funding they were operating under at that time, so no further action was taken in regards to rate adjustments. That was an oversight by both the governing body of the district and those in attendance at that meeting. But as far as the dollar for dollar collections, the point was moot, because the district was only authorized to levy the exact amount it did the year previous, which meant old valuations, at the old tax rate, which was and currently is $1.82 per thousand on the unadjusted valuation.
QuidnickCrusader
4:09 pm on Sunday, October 21, 2012
Mr. Hoover, in his report on the results of the 2010 statistical revaluation to the Town Council, stated that there was a 15-20% decrease in value of one and two family homes in Coventry. As evidenced here:
http://www.town.coventry.ri.us/TC032811.pdf
Now here's where arithmetic comes into play, so pay attention. City-data.com listed 2009 median home value in Coventry at around $255,000 (http://www.city-data.com/city/Coventry-Rhode-Island.html). So for math purposes, we'll use that figure, and we'll use the middle of the 15-20% devaluation figure of 17.5%. So, if you were taxed by CCFD on that home valued at $255,000, at the rate of the time of $1.82 per thousand (which is also the current rate, based on the old valuation), your bill was around $464. Now if that same home de-valued 17.5%, it would have lost $44,625.00 in value, and therefore roundly assessed at $210,000 present day. But CCFD was only authorized to collect the same $464 from that home. In order to collect that same amount, the RATE per thousand would have to be adjusted upward, because there are now LESS thousands on which to levy the tax. So, to collect the same $464, the rate per thousand on the reduced value of $210,000 would have to be $2.21 per thousand, rounded. To review:
Old valuation- $255,000 multiplied by $1.82 per thousand (255x 1.82)= $464
Revaluation(if adjusted)- $210,000 multiplied by $2.21 per thousand(210x2.21)=$464
QuidnickCrusader
4:09 pm on Sunday, October 21, 2012
The common, ongoing misconception is that when property values are reduced due to the revaluation process, is that the amount you pay in taxes drops. That is NOT the case. In order to collect the same levy, the rate per thousand must increase because of the fact that there are now a less thousands of value. In other words, more thousands=lesser rate per thousand, less thousands=higher rate per thousand. The statements made about being overcharged because of the decreased property values are categorically and factually false.
The tax bills sent out are for the same amount we have been taxed for the past two years. And if I understand it correctly, any amount paid now will be credited to the ratepayer's account when this mess gets straightened out and an actual budget and tax rate are set.
Miadlor
5:54 pm on Saturday, October 20, 2012
The 2009 figures for me, equal me paying taxes on over $65,000 more than I should. This was also pulled last year. Doing it this way hides what the actual Tax Rate would be to take in the money they say they need. Tv reports aren't showing the real increase to the taxes.
RIPensionProvider
10:49 pm on Saturday, October 20, 2012
Combined, I would be paying taxes on over $400,000 more than I should be.
RIPensionProvider
4:47 pm on Sunday, October 21, 2012
Crusader,
I own property in other states and when the property values fell over the last couple years, my taxes did fall... So you are wrong when you say that it is a misconception. Secondly, the voters did want to increase the tax rate so why didn't the fire district just issue the bills with the current rate and current values. I understand the overall budget for CCF would have declined, but that where the fire department has to learn to do more with less. Cut pays, cut overtime, institute larger co-pays, eliminate clothing allowances. If CCF had used the the current rate and current real estate values and issued the bills instead of trying to level fund or get more, the money would have come in and they would not have had to go bankrupt, they just would have had to work with a smaller budget, just like everyone else in this economy. And no one would have to loose their job if the cuts were divided among the 50 or so employees. I appreciate the info, do you know whereby can find the payroll info per individual with overtime included. I would like to see it posted online somewhere so taxpayers could view it and make their own determination about if it reasonable. Also is it or is it not state law that fire bills should be issued using current assessment, I don't care why or why not is wasn't done, just whether or not it was legal.
RS
10:11 pm on Sunday, October 21, 2012
You can cut all you want as long as it's negociated. I believe salaries and benefits are contractual. If you are going to start cutting up contracts why not just tell the vendors that the Fire District will be paying less for the stuff they purchase. See how that works out when you try breaking those contracts.
RIPensionProvider
9:54 am on Monday, October 22, 2012
RS
The firefighters can agree to concessions or we can close up shop. In a bankruptcy most vendors don't get paid per their contract, they usually get cents on the dollar.
Miadlor
10:11 pm on Sunday, October 21, 2012
Correct, going by the old evaluation is just disguising what the actual tax rate hike is.
RIPensionProvider
3:52 pm on Monday, October 22, 2012
Miadlor. Here is the law, check out page 4, in the area of line 23. Looks like they need to use most current assessment to me.
http://webserver.rilin.state.ri.us/BillText12/HouseText12/H8104A.pdf
John
8:06 pm on Monday, October 22, 2012
There is no tax hike, It's taxed at the old rate of 1.82 per at the old evaluation. Did your bill go up ?? NO IT"S THE SAME AS LAST YEAR.!!! God some people are just stupid or just like to stir it up ...Which one are you????
CoventryTaxpayer
8:06 pm on Monday, October 22, 2012
-
rjle
9:54 am on Monday, October 22, 2012
Guess it doesn't make any difference looks like, at any time when the district board wants they can grab the last highest value year to go by they did it last year also BINGO what were they thinking . And when the value went down on my property so did my taxes in this Town they at that time had to find a way to adjust to meet the budget thats the way they did business and they did.
This should have been done also with CCF district in 2010 2011 .Contracts Purchases fuel consuption should have been froze but it didn't, more spending still occurred this was a total lack of reasonability on the board CFD management and union officials.
Thakns for putting Coventry on the map. Everyone of you should be replaced from the duties you failed the taxpayers on.
John
7:31 pm on Monday, October 22, 2012
Congrats, You are by far the most uninformed post here!! Please know your facts or is that beyond your scope??
mad hatter
4:24 pm on Monday, October 22, 2012
quidneckcrusader is correct. you should always look at the approved budget to see if taxes are going up. the budget that gets voted in is then put against valuations to get the rate per thousand. not the other way around. if the 2011 budget is 6.5mil and the 2012 budget is 6.5mil then there is not perceived change. however, on revaluation your property might be set a hair higher or lower to the norm. that is because the valuations are guesstimates by the people who do them. for every person that is getting a smaller tax bill on a level budget, there is someone else in the town getting a higher tax bill.