Central Falls, R.I., which is on the verge of exiting bankruptcy, would experience modest gains under its five-year budget plan.
The city attorney, Theodore Orson of Orson and Brusini Ltd., filed the plan on Monday night with the U.S. Bankruptcy Court for the District of Rhode Island in Providence on behalf of new Central Falls receiver John McJennett.
Judge Frank Bailey, assigned from the Boston bankruptcy court to handle the case, must sign off on the plan.
According to court documents, Central Falls projects a $1.2 million operating surplus in fiscal 2012, with gains in the following years to range from $7,400 to $87,800. Its expected surplus in fiscal 2017 would be $40,000.
The plan calls for annual tax increases of 4% at least through 2017.
McJennett replaced Robert Flanders as receiver last Friday. Flanders filed for Chapter 9 protection last Aug. 1 for the city of 18,000, which at the time faced an $80 million pension shortfall. Flanders reworked the pension package for retired police officers and firefighters, with the parties agreeing on 55% cuts.
Gov. Lincoln Chafee said the plan would position Central Falls to emerge from bankruptcy by late summer or early fall. “Central Falls is now stronger and more viable than before,” he said.
Chafee, meanwhile, continued his overhaul of the Rhode Island Economic Development Commission in the aftermath of the 38 Studios controversy. Late Monday, Chafee made three more EDC appointments, subject to Senate approval, bring the total of new members to six.
The three are Roland Fiore, president of South County Sand & Gravel Co., Stephen Hardy, senior vice president with Bristol County Savings Bank, and William Holmes, the business manager for Rhode Island Carpenters Local 94.
The EDC in 2010 approved a $75 million loan guarantee, funded by a bond sale and backed by Rhode Island’s moral obligation, for 38 Studios LLC, the video-game company owned by former Boston Red Sox pitcher Curt Schilling.
But the future of the company, which moved to Providence from Maynard, Mass., is in question after Schilling last month laid off his staff. Earlier in May, Schilling was late with a $1.1 million fee payment.