Rhode Island relinquishes control of Central Falls

Associated Press

PROVIDENCE, R.I. (AP) — State control of the financially troubled Rhode Island city of Central Falls has ended, and power has been restored to local officials.

A spokeswoman for Gov. Lincoln Chafee says the state receivership was officially dissolved Monday.

A receiver took over in 2010 to address Central Falls' shaky finances. Rhode Island's smallest city went through a municipal bankruptcy that ended last fall when a federal judge approved the receiver's five-year recovery plan.

A new finance officer will ensure the city follows the plan.

City Council President William Benson Jr. says he's glad the receivership is over but criticized its $4 million price tag.

An attorney for the receiver says the state also is glad to have handed back authority. He says Central Falls is on a path to fiscal stability.

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