Resolution 144-2006
Commissioner Rice
RESOLUTION NO. 144-2006
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY REQUESTING USE
OF HURRICANE RECONSTRUCTION SALES TAX TO RELIEVE
A PROPOSED INCREASE IN WINDSTORM INSURANCE
RATES.
WHEREAS, a group of concerned citizens F.I.R.M. (Fair Insurance Rates
for Monroe County) has brought countywide attention to the fact that there is a
windstorm insurance premium crisis in Monroe County; and
WHEREAS, the cost-of-living in Monroe County is the highest In the
State of Florida; and
WHEREAS, a home in Monroe County with an insurable value of
$350,000 in 2005, on average paid $5,747 for windstorm insurance, will in
2006 pay nearly double at $10,539 annually or $878.26 per month for
windstorm coverage after Citizen's Property Insurance proposed rate increase.
The net annual cost of windstorm insurance on the $350,000 home would be
in the range of $17,539 to $28,039, if the deductible of 2% or 5% is included in
the cost of the insurance; and
WHEREAS, a school teacher, law enforcement officer, government
employee, social worker, nurse, fisherman or fixed-income retiree who owns a
home in the Florida Keys does not have sufficient income to pay the current
windstorm premiums much less the substantial increase proposed by Citizen's
Property Insurance, and may have to consider moving from the Keys; and
WHEREAS, there is an affordable housing crisis in the Keys and a
shortage of affordable rental housing, and any increase in windstorm
premiums no doubt will be passed-on by landlords to their tenants resulting in
even higher residential rental rates; and
WHEREAS, the building codes in Monroe County were for many years
much more stringent than in other parts of the State and consideration of the
heightened building code standards should be incorporated and heavily
weighted in the calculation of windstorm rates; and
WHEREAS, the deductibles on windstorm policies are so high the
homeowners generally are unable to make claims for windstorm damage or to
pay for windstorm repairs, thereby making windstorm policies impractical and
unaffordable; and
WHEREAS, the dramatic increases in windstorm insurance premIums
will result in fewer people purchasing windstorm insurance if they are not
Use of Hur, reconstruction Sales Tax
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required to have casualty insurance, with the result that catastrophic
windstorm damage to those homes will either not be repaired or in many
instances will be repaired at the expense of local, state and federal government
taxpayers; and
WHEREAS, the history of the last two years reflects that the entire state
of Florida is vulnerable to windstorm damages, especially those parts of the
state where hurricane shutters and other storm-proofing techniques are not in
common practice; and
WHEREAS, the State of Florida has estimated that the State has and will
receive a "windfall" sales tax revenue in excess of $3 billion from hurricane
rebuilding efforts;
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, that:
1. The Board of County Commissioners urges Governor Bush, the Cabinet and
the State Legislature to use the $3.2 billion hurricane reconstruction sales tax
windfall to provide relief to Citizens' insureds from the expected $1.5 billion
assessment.
2. The Clerk shall send a copy of this resolution to the Honorable Jeb Bush,
the Honorable Charlie Crist, the Honorable Tom Gallagher, the Honorable
Charles H. Bronson, State Senators Larcenia Bullard and Rudy Garcia, and
State Representatives Ken Sorensen and Dennis Ross, and the members of the
Board of Governors for Citizens Property Insurance Corporation.
3. This Resolution shall become effective on the date adopted.
Mayor Charles "Sonny" McCoy
Mayor Pro Tern Murray Nelson
Commissioner George Neugent
Commissioner David Rice
"~:<>":";~!*!tn~ssioner Dixie Spehar
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PASSED AND ADOPTED by the Board of County Commissioners of Monroe
County, Florida, at a meeting of said Board held on the fifteenth ~y & Mitch,.."
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k:i;~,\\' BOARD OF COUN
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< Attest: DANNY f" KOL~AGE, Clerk By:
BCr~
Deputy Clerk
COMMISSIONERS
, FLORIDA
Use of Hur, reconstruction Sales Tax
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