HomeMy Public PortalAboutRES 94/01RESOLUTION NO. 94 -1
A RESOLUTION OF THE TOWN OF GULF STREAM, FLORIDA,
OPPOSING HOUSE OF REPRESENTATIVES BILL 3191 AND
SENATE BILL 1405 REGARDING THE NATIONAL FLOOD
INSURANCE REFORM ACT OF 1993 AS THEY ARE CURRENTLY
WORDED AND RECOMMENDING REVISIONS THERETO; PROVIDING
AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
WHEREAS, the current Bills referenced above are being
deliberated in the U. S. House of Representatives and Senate as the
National Flood Insurance Reform Act of 1993; and
WHEREAS, the Bills recognize the need for reform of the
present national flood insurance program to be more actuarially
sound; and
WHEREAS, the Bills would require mapping the entire U.S.
coastline at a cost of twenty -five million dollars ($25,000,000.00)
to be paid from policy premiums in order to establish thirty (30)
year and sixty (60) year erosion zones; and
WHEREAS, the establishment of said thirty (30) and sixty
(60) year erosion control zones is arbitrary and unpredictable
throughout the United States and is highly controversial; and
WHEREAS, these Bills do not permit flood insurance for
any new construction or additions to existing structures located in
the thirty (30) year zone; and
WHEREAS, the Bills do not permit flood insurance for any
non - residential structure or residential structure not readily
movable that is located in the sixty (60) year zone; and
WHEREAS, these Bills would prohibit federally- backed
mortgage financing institutions from financing structures within flood-
prone areas unless such structures were insured under the national
flood insurance program; and
WHEREAS, these Bills would, therefore, greatly diminish the
value of property within virtually every coastal community in the nation
because owners could not insure the structures on their property or
sell to buyers who desire to finance the purchase of such property; and
WHEREAS, the Property Appraiser of Palm Beach County has
determined that the proposed Bills could potentially put at risk
the amount of tax revenues collected from taxable coastal property
located in Palm Beach County; and
WHEREAS, the amount of property at risk represents 8.8
billion dollars ($8,800,000,000.00) of taxable value which, in turn,
would represent a potential loss of two hundred million dollars
($200,000,000.00) per year in tax revenues to local governments and
taxing entities in Palm Beach County; and
WHEREAS, these Bills would impose no similar prohibitions
on the insurability of structures within other areas of the nation
which are chronically and predictably flood prone, such as the
riverine areas, even though statistics show that the number and
value of flood insurance claims from riverine areas have exceeded
those from coastal areas; and
WHEREAS, the severe economic impact of the Bills on
coastal tax bases has not been considered, and this impact far
exceeds the intent of the Bills; and
WHEREAS, the Senate should not enact these Bills in their
current form due to this inequity and fundamental unfairness to
coastal property owners.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COMMISSION OF
THE TOWN OF GULF STREAM, FLORIDA, THAT:
Section 1: The Town of Gulf Stream urges the U. S. House
and Senate to reject HR Bill 3191 and Senate Bill 1405 in their current
form due to the devastating impact on the tax base in Palm Beach County
and the entire State of Florida, and due to the fundamental unfairness
to the nation's coastal property owners, in particular, those in Florida
who make up approximately forty (40 %) per cent of all national flood
insurance program policy holders.
Section 2: The Town of Gulf Stream, Florida
strongly recommends that the actuarial soundness of the national flood
insurance program be significantly increased by enforcing regulations
to mandate that a significant number of uninsured structures in
federally designated flood areas be brought into compliance.
Section 3. The Town of Gulf Stream further recommends
that the controversial mapping to create thirty (30) and sixty (60)
year coastal zones of erosion be deleted until it can be proven that this
mapping will have a beneficial impact on the fund and that the policy
holders will derive some benefits from this exercise.
Section 4. The Town of Gulf Stream recommends that the
House and Senate enact compromise Bills which:
A. Delete the controversial erosion control measures
delineated in HR Bill 3191 and Senate Bill 1405, specifically the mapping
of the thirty (30) and sixty (60) year erosion control zones and the
denial of insurance to properties located within those zones;
B. Call for a broad -based economic impact study to determine
the impact on the local communities; and
C. Allow the local communities to address local erosion
problems in a rational manner as opposed to utilizing the arbitrary
mapping concept.
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Section 5: The Town Clerk of the Town of Gulf Stream,
Florida, is hereby directed to submit copies of this Resolution to all
members of the U. S. Senate and House Banking? Committees, Florida U. S.
Congressmen Alcee Hastings, Harry Johnston, Tom Lewis, and Clay Shaw,
Florida U. S. Senators Connie Mack and Bob Graham; all cities within Palm
Beach County; and to the Board of County Commissioners of Palm Beach
County.
Section 6. This Resolution shall take effect immediately
upon adoption.
PASSED AND ADOPTED this 14th
1994.
I
Mayo Koch
(SEAL)
ATTEST:
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'Town Clerk
3
day of January
Commissioner
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Co issioner
Commissioner
Commissioner