Fri September 14, 2012
Central Falls gets high financial praise
By CATHERINE WELCH
PROVIDENCE, RI – Moody's is taking a shine to Central Falls' plan to dig itself out of bankruptcy. The bond rating agency released a report that applauds the city's five-year plan.
Moody's noted that Central Falls pulled itself out of bankruptcy without defaulting on bond payments, and calls the city's five-year plan "credit positive" extending the love to Rhode Island's other financially distressed cities. The five-year plan raises property taxes, makes deep cuts into pensions, and demands state oversight of city finances. It also moves city employees covered by the locally administered pension into the state's Municipal Employee Retirement System.
Facing a $6 million budget gap and $80 million in unfunded liability, Central Falls filed for Chapter 9 last year. It will officially emerge from bankruptcy next month.
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