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NEW: McLaughlin Wants to Settle CF Council/State Receiver Feud

Friday, January 25, 2013

 

It’s no secret that the city councilors of Central Falls and the state-appointed receiver charged with bringing the city back from the brink of financial ruin haven’t gotten along.

In fact, three city council members have accused the receiver, John McJennett III, of failing to work with them and refused under protest to attend workshops to craft a debt reduction plan.

Now, State Representative James. N. McLaughlin wants to ease the tension and is looking for a way to bring the two sides back together.

McLaughlin has been working behind the scenes this week reaching out to city councilors and McJennett to bring the two parties to an agreement that would allow the city’s elected officials to regain control and the receiver to move on.

 “I understand that some feel what the receiver has put forth as a budgetary plan seems unfair,” McLaughlin said. “But spending $9,000 per week on payroll and salaries for the receiver’s staff because of this disagreement is not wise. Central Falls is no longer bankrupt and it has taken the time and effort of many for the city to become solvent again. The receiver’s debt reduction process has already been approved by a federal bankruptcy judge. It’s time for everyone to come back to the table and talk it out until everyone has found a way to move past this quickly.”

At issue is the contention of the city councilors that the state receiver should have left in July of last year and because they have refused to engage in debt-reduction talks, the receiver has been unable to transfer power to the city’s officials.

Providence attorney William Dolan III has been appointed as a mediator to help resolve the dispute.

“I have faith that we can work this out,” McLaughlin said. “The people of Central Falls don’t need any more grief over this. I have spoken my peace to everyone and I promise to do anything I can to help this move forward.”
 

 

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