RI city's receiver details 5-year recovery plan

By the Associated Press | September 22, 2011 | 4:25 PM EDT

CENTRAL FALLS, R.I. (AP) — The Rhode Island-appointed receiver who filed for bankruptcy on behalf of Central Falls has unveiled a five-year recovery plan to get the city back on sound financial footing.

Receiver Robert Flanders Jr. said Thursday the new financial plan is a "major step," but most of the measures are already in place. He added Central Falls is a "city that has been floundering but is setting a new course."

Flanders sought bankruptcy protection in federal court last month, saying that was the only way to return the city to solvency. At the start of the current fiscal year, Central Falls was facing an $80 million unfunded pension liability and a budget shortfall of more than $6 million.

His plan also calls for a property tax increase.