Council Approves Proposed 300K Town Loan to Fire District

Dozens of Coventry residents gathered in Town Council Chambers at Town Hall Tuesday night for an emergency Special Meeting to bear witness to a discussion by Council members regarding a suggested loan from the Town of Coventry to the Central Coventry Fire District.

The loan, proposed at Monday night's Council meeting by President Gary Cote, would not exceed $300,000 and would bridge the gap between Apr. 11 when the district will be out of funds and officially closed per order of the court, and May 15 when its third quarter tax bills are due. As of that date, tax revenue would be used to begin loan repayment to the Town of Coventry. The loan would also allow state and local legislators additional time to develop and introduce legislation ensuring the delivery of continued adequate emergency service to all Coventry residents with or without the operation of CCFD. 

Cote explained that if approved, the no-interest loan would not be dispersed in one lump sum, but in separate payments based on receipts supplied to the Town by Special Master Rick Land. The loan would be secured with CCFD assets and in regards to repayment, Coventry would be in line with the district's largest asset holder; Centreville Bank, to receive funds as they are released. If liquidation of the district is ultimately ordered despite the loan, repayment to the Town would be ordered from liquidation assets.

"This loan will be secured in a level playing field with Centreville Bank's in the judge's eyes," said Cote. "We will not be behind anybody."

He also stressed that the loan would not indicate the creation of or participation by the Town in a municipal fire district.

Councilwoman Karen Carlson asked whether or not the Town's charter allows for such a loan to be offered, to which Town Solicitor Fred Tobin explained that there is "absolutely no prohibition against the Town making a loan of this nature".

"The Town Council has the right to protect the public health and safety and if that means a loan of this nature, there's no prohibition against it," he said.

Much to the dismay of many residents in attendance, Tuesday's meeting was held without a public vote or opportunity for public comment, however many still loudly voiced their opinion, asking why Central Coventry taxpayers' multiple budget rejections would be essentially overruled if the Town follows through on its loan offer.

"We are here tonight to act on an emergency which has presented itself to the Town of Coventry that has grave consequences on what this Council considers to be a public health, safety and welfare issue for the citizens of Coventry," said Cote. "We are trying to provide the very best emergency service that we can muster. We're not here to step on anybody's toes, we're not here to disregard your vote, but we are here to make sure that if something bad happens in the Town of Coventry, emergency response is available in a timely fashion. All we're trying to do is bridge the gap that exists because no plan to keep the district safe has been presented by anyone. There is not a plan in place, this Council had no choice but to create a plan for your safety and for ours, we're citizens of this Town, too. That's what we're here tonight trying to do."

He also explained that if a catastrophic event occurred due to lack of emergency service, the Town of Coventry will be held liable and open for lawsuits that residents' tax dollars will be used to defend.

Council Vice President Kerry McGee agreed with Cote's sentiments, stating that the loan would not be a bailout and would only be offered in the best interest of Coventry taxpayers.

Councilman Ted Jendzejec pointed out the multiple pieces of legislation currently circulating in the General Assembly that have been introduced with the goal of securing fire and EMT services to the district that would likely have inadequate coverage and elevated response times if reliant solely on mutual aid form nearby districts.

"There are many plans out there in the General Assembly to help fix this problem," he said. "We need to buy time for the General Assembly to pass these plans. I'm not advocating for any one plan, but there are many in place to fix this in the case of liquidation or the case of continuation. You should know that there are many people working very hard on your behalf."

"I am a member of the Central Coventry Fire District and personally I would like to see this district continue," said Councilman Greg Laboissonniere. "I think we can solve our problems but I think we need to extend the time to get plans in place."

Before ordering a Council vote, President Cote addressed the residents once more, pointing out that without the Central Coventry fire district, the Town would be operating with just three rescues that would be responding to an average of 17 to 22 calls per day.

"This means that if they're already out and you call 9-1-1, the next closest piece of apparatus will be dispatched to your house. Whether it's coming from West Greenwich, East Greenwich, Scituate, Hope Jackson, West Warwick - I don't know, but it effects response time," he said. "And if you're having a heart attack on your living room floor, by the time somebody gets there, it may be too late."

"As your elected officials, we're simply trying to look our for the best interests of the citizens of the Central Coventry Fire District who did nothing to create this problem but are being asked to pay the penalties for it," Cote continued. "That's all we're trying to do is protect your best interests. It doesn't matter which plan you folks want. If it works for you, it works for me, but we have to allow time for that plan to be put in place. This does that, and with court action, it assures the taxpayers in the Town of Coventry that their money will be paid back - and it will be paid back with no expense to anyone sitting here. The taxpayers in the Central Coventry Fire District are already saddled with a big enough expense. They don't need to be saddled with this one, and they won't be."

Prior to adjourning for the evening, Council members approved the loan recommendation by a 4 to 1 vote with Councilwoman Carlson opposed. The proposal will now be presented to Judge Brian Stern in Kent County Superior Court at 2 p.m. on Wednesday for a final ruling.