Coventry At-Large Council Race: Verducci Q&A

COVENTRY, RI — John-Paul “JP” Verducci, lifelong Coventry resident, associate director for the Rhode Island Department of Transportation, decided on his Coventry At-Large Council race run after experiencing the town’s poor development planning and learning about late financial filings.

“My wife Stephanie and I are currently raising the third generation of Verduccis in Coventry.  I have lived in Coventry all of my life and I have no plans to move anywhere else. We have two daughters and live in a home we purchased years ago located off of Old North Road in the eastern side of town,” Verducci wrote in response to the Coventry At-Large Council race Q&A.

“Over the course of my career, I have held numerous financial and administrative positions in both the legislative and executive branches of state government, currently serving as associate director for the Rhode Island Department of Transportation. The last few years have shown there are multiple issues in town that need help addressing. What personally inspired me to run for local public office was recent property developments proposed in my neighborhood by the same home builder that appears to have left the Town with multiple issues in the last subdivision where they constructed several new homes. I had to install French drains and a sump pump because of all the runoff. After discussing with my neighbors and doing some research, I learned the town lacks a comprehensive development plan, and without intervention, we will constantly be at the mercy of the developers. 

Additionally, and of more concern, was when it came to my attention that the Town was not filing required financial reports with the state auditor general in a timely manner, and that’s when the “public administrator” in me became concerned. I could see the negativity building on social media and places around town, and I wanted to see if I could put my experience to use, and that’s when I decided it was time to step up,” Verducci wrote. 

Coventry At-Large Council race Q&A rules

Warwickpost.com invited all Coventry Town Council candidates to answer the same six questions, giving them all four days to respond. Candidates were urged to answer the questions directly, and invited to elaborate on each topic after answering the initial question. The answers have been edited for style and spelling, to ensure responses remain on-topic, and to avoid introducing misinformation into the debate.

All the candidates’ answers to the questionnaire have been posted within the same  10-minute window, with a digital dice roll assigning the order each set of answers run on the site, and thus, their order in  the daily newsletter.

Here are Warwick Post’s questions, and Verducci’s answers:

1) The state auditor’s assessment of the Coventry Schools to-date $5M deficit lays partial blame on turnover of poor performing prior executive leadership,  and prior finance directors on the school and town side, coinciding with ill-timed Financial Town Meeting votes for level funding. The result was inadequate budgets that didn’t catch deficits early. 

Coventry At-Large Council race Q&A – 1A) What is your position on level-funded budgets?

Coventry put itself in tough position by asking people who already believe their taxes are excessive to agree to an increase in taxes. This was exacerbated by the fact that service delivery was being questioned, i.e. school performance, infrastructure and perceived mismanagement. Given that, it wasn’t a huge surprise when increases were not approved. However, with a level funded budget, operations managers must abide by that, which to some degree was ignored. Rather than live with constraints, they forged ahead to meet the demand of residents without making necessary budgetary adjustments to expenses.   

Coventry is a bedroom community and the housing market supports that position. From what I can tell after taking a look back, it appears in prior years, the political desire of prior administrations to level fund school budgets, and the pressure from residents when budget referendums were voted up or down, created a structural deficit that was somewhat disguised by Covid revenues. My education and experience taught me that, level funding budgets or incrementally increasing them is a widely accepted practice; however, it lacks creativity and prioritization, and tends to hide systemic issues that build along the way. That is a recipe for structural deficits, deferred maintenance and a reactive government. 

Coventry At-Large Council race Q&A – 1B) How can the Council be more proactive with financial leadership?

There is no replacement for studying the current budget, observing best practices from other municipalities and prioritizing services based on need. Public safety, education and general services such as trash/recycling and plowing must be done to be a functioning town. I would encourage town council members to have a better understanding of how governmental finance works at a high level, and then proceed to better understand fund sources and expenditures for each budget section. This will allow us to baseline service costs and establish metrics that can be used to track outcomes as program funding is added or subtracted. With a budget of $120 million, I would advocate to establish a finance committee that meets frequently at first, with public presentations from the town’s managers/department heads about their programs, including staffing levels, outcomes and challenges. That will also provide the residents with a new level of transparency that will hopefully begin to stem the tide of negativity and mistrust of the town council.  

Coventry At-Large Council race Q&A – 1C) Please share any other thoughts you have on this.   

Government budgeting and finance are complicated issues, and we must realize that we can’t talk at residents about what we have to do without explaining what we are legally obligated to do, what the priorities are, and how that coincides with our long-term vision. This is a challenge due to the current climate of mistrust. We must do everything we can to be transparent and explain why decisions were made, and we must be open to change and new ideas.  That is not going to be an easy task. There are pressures on education as more housing units come on board, and despite the State’s efforts to create more housing in rural communities I have not seen any a movement to increase State aid for education of other services. In a post Covid world there have been challenges recruiting police officers that are sorely needed to maintain law and order in the community including efforts to decrease traffic offenses and aggressive driving.  A shortage of new recruits has resulted in overtime in order to fill shifts and that negatively affects the police budget.   

Coventry At-Large Council race Q&A – 2) How can the town’s fire districts be better managed? 

Rhode Island has a long history of breaking things into their smallest possible units, 39 municipalities, each with their own villages and so on. There was a time where that made sense, but combining under one municipal service makes the most sense now. The two largest benefits should be (1) Economies of scale, as we can eliminate duplicative services such as financial managers, lawyers and administrative costs. (2) Shared services that will allow for a much easier flow of resources to where they are needed throughout the town. Under the current model, the districts are independent and equipment and personnel can’t be dispatched outside of their district. This impact has been seen most recently with announcements of advanced life support services being unavailable in certain sections of town for limited periods of time. I think we can all agree the Town has outgrown the current way emergency services are administered and some action is necessary.  There is bound to be a long-term benefit if fire districts are consolidated.  Both the cost of providing services and having adequate resources available in an emergency would need to be examined.  The challenge is to get the right balance, determine if it should be a unified fire district or Town administered fire department, and how to dissolve the existing districts and distribute assets that are chartered by the State.  Each district has its own charter, and the union will need a seat at the table as collective bargaining agreements and pension plans are factors that will need to be managed.   

Coventry At-Large Council race Q&A – 3) What is the most important thing you will do to aid small businesses in town?

Provide fiscal stability while promoting responsible growth. I’ve checked in with our business community while canvassing, and the one consistent message was the Town doesn’t provide incentives for them to stay here and expand. Coventry’s current financial situation is not good for small business because they believe the commercial taxes will go up to cover the shortfall, and that creates an expense problem. On the revenue side of the equation, our underperforming schools will not attract younger families and new generations to move here. Without a sustainable supply of new residents buying houses, paying taxes and utilizing the services small businesses provide, the businesses will have to close or relocate. The town council needs to have more direct conversations with the small business community to examine alternatives to the standard commercial tax. For example, we should explore establishing business districts with tax treaties to improve infrastructure, and/or utilize tax incremental financing to attract and retain a more diverse selection of businesses, for example, an outdoor specialty store like Bass Pro Shop.

Businesses will not move here or stay here without fiscal stability, which means honest budgets based on realistic resources; the constant threat of a looming fiscal crisis is not attractive. Additionally, the town needs to add housing and infrastructure to support the population growth. However, if we continue the process of accepting developments in a one-off fashion and not in the context of a comprehensive plan, we run the risk of missing the opportunity that growth brings, future generations of residents. People will not want to stay here or move here if the roads are in disrepair, houses are flooding from runoff and basic services such as trash removal aren’t being provided. 

Coventry At-Large Council race Q&A – 4) According to the RI Auditor General’s report on the town’s sewer program, “Only a small portion (approximately 3%) of the Town’s homeowners and businesses are connected to the System,” and, “A longer-term view needs to be part of the overall assessment of the program as there will be a future need in Coventry to expand the sewer program for either health and safety, water contamination, or economic development reasons.”

Coventry At-Large Council race Q&A – 4a) Given the town-wide benefits to building sewers, is supporting the program in part with the General Fund, as suggested in the report, a good idea? What would you suggest?

I’m very interested to learn more about the funding methodology, it is clearly not sustainable. As a sewer customer, we pay the original assessment, a minimum charge to West Warwick and a minimum charge to Coventry, plus usage. That is a pretty good amount of money for households to connect to a system, and at a bare minimum, it should be self-sustaining. Instead, the town’s consultants are recommending double digit increases for the next few years, which leads me to believe the foundation of the methodology is flawed. I believe the town as a whole does benefit, and using general revenues should be considered; however, I would like the town’s consultants to research and present best practices and alternative funding methodologies instead of recommending ever increasing burdens to the users of the system. 

Alternative approaches could include a combination of a townwide assessment, bonding, or loans from the Rhode Island Infrastructure Bank. If we do decide to include general funds, the Town Council must demonstrate to the residents the overall benefit of expanded services. If one of those benefits is creating a more attractive business climate, then the Town must figure out a way to capitalize on those benefits to reduce the residential tax burden. If elected, I will keep an open mind to changing the funding methodology so that is predictable and realistic, and doesn’t rely on annual double-digit increases. 

Coventry At-Large Council race Q&A – 4b) Please share any other thoughts you have on this.   

Many residents have shared that they do not want to connect to the sewer system, and they are against mandating connections. I would like to learn more about the technical aspects of the hook up, and if there are provisions for people with years of useful life left on their septic systems to opt out. I would also like to increase the visibility of the timeline for the planned additions to the sewer lines so that people can prepare for the future. 

Being a rural town, sewer construction in many areas where lots have significant frontage and lot size may not be feasible or cost effective.  When one considers financing a septic system as part of a mortgage, even if we are talking for the replacement rather than as part of the cost of a home, the monthly payment coupled with a few hundred dollars biannually to pump the tank is much less expensive than the assessment and usage fee. The town will need to develop a plan with a focus on protecting environmentally sensitive areas, areas where systems fail or are non-existent, and where it might enhance economic development.  If the benefits to the Town as a whole can be quantified it could then lead to justification of cost sharing across the community.

Coventry At-Large Council race Q&A – 5) Council President Hillary Lima suggests new Council members proactively study the town’s finances and budget process with the town’s finance director. What do you think of that suggestion?

I agree 100%, and when elected, I look forward to working with Council President Lima and the other council members to regain control of the Town’s finances. I believe that it is vital to educate ourselves on the finance and budget process. Over the course of my career, I have been involved in budget development for both the executive and legislative branches for almost 20 years. One of the most crucial aspects of budget development is for those involved to realize how the process works, and where changes can be made. The process needs to start with informational sessions from the department heads in coordination with the town manager and finance director. There is no replacement to sitting down and learning the personnel, programs, challenges and outcomes for each business unit. This information can be presented at council meetings, so that residents effected by these programs can testify and give feedback to the council. 

I would also like to tour the various work areas, including schools, to hear from the people doing the work every day, so that I can hear first-hand about their challenges.  The town employs a great deal of talent and I am always looking for a fresh perspective that will aid in any decisions that affect them and the departments they work in.  This can be a slow and challenging process, but it’s the only way to fully understand the details for each department. The financial issues the town is facing requires each council member to have a deeper understanding of the budget process and the town’s fiscal status in order to make fully informed decisions. 

Coventry At-Large Council race Q&A – 6) State law splits governance of Schools and Municipal finance, and there tends to be a split in town members’ attention to and attendance of the respective meetings. 

Coventry At-Large Council race Q&A – 6a) Should these groups interact more? 

Yes, there needs to be constant and direct dialogue between the entities. The school’s budget is two-thirds of the town’s budget, and it would be foolish to limit interactions or let political grandstanding get in the way of delivering education in a more efficient way with better outcomes. The recent developments with the school budget have shown that delays and poor performance by one entity can have a ripple effect on town. Not only do large deficits strain resources, but when there is no time to course correct, resources have to be curtailed abruptly, such as the cutting of extracurricular activities. The residents are tired of the same back and forth and we must do everything we can to keep a constant flow of information between the two entities to avoid financial surprises that negatively impact town residents. 

Coventry At-Large Council race Q&A – 6b) If so, how would you approach that?

I will advocate for work sessions with all decision makers at regular intervals, public meetings, perhaps bi-weekly. as we triage the financial issues. These should not be meetings for show, they would need to have a formalized agenda agreed to by leadership of each entity, with action items and follow up from department heads. The discourse at these meetings needs to be focused on productive solutions, not simply complaining. Each side needs to propose realistic solutions, including alternative funding sources and realistic savings initiatives. 

Coventry At-Large Council race Q&A – 6c) Please share any other thoughts you have on this.

The magnitude of the financial problem facing the town can’t be understated, and with the majority of the town’s funding going towards education, the relationship between the two entities must be respectful and productive. We can’t have long lengths of time between decisions, incomplete information sharing or political grandstanding. A high performing education system is one of the major factors in deciding where to move and raise a family. Coventry needs a constant flow of younger residents to drive the economy and attract small and medium size businesses. Without a more efficient and better performing education system, the town’s growth will be unsustainable, leading to reduced services and higher taxes. It’s crucial we make improvements and get this right.