Fort Walton Beach Council agenda — 12-12-06 ‎(workshop)‎ — reading text

by municipal and county Emergency Operations Centers ( EOCs).  Property Insurance Resolution WHEREAS, the State of Florida experienced eight hurricanes and four tropical storms during 2004 and 2005, with total insured losses estimated at $ 35. 9 billion; and WHEREAS, the natural disasters, regulatory environment, and other factors limit the availability of property and casualty insurance and reinsurance for residential and nonresidential property owners, as well as for government property owners, and dramatically increases its cost; and WHEREAS, the weakness in the private insurance market exacerbates dependence on the Citizen' s Property Insurance Corporation ( Citizens), the state insurer oflast resort for over 882, 000 Floridians, and the Florida Hurricane Catastrophe ( CAT) Fund, the state reinsurance company that reinsures property and casualty insurance companies including Citizens; and WHEREAS, when claims by Citizens' policy holders exceed the amount of premium received for such policies and results in a deficit, all Florida residential and non- residential property insurance policyholders pay assessments to make up the deficit for Citizens; and WHEREAS, such assessments by Citizens will likely adversely impact statewide consumer spending by reallocating expenditures of disposable income away from goods and services and towards insurance costs; and WHEREAS, when the CAT Fund depletes it's cash reserves and is forced to issue bonds, assessments are levied to make up the deficit on direct premiums for all but a few property and casualty insurance policies in this state; and WHEREAS, Citizens has assessed almost $ 2 billion to cover the deficit between premiums collected and claims filed since 2004, and the 2006 Legislature appropriated 715 million to reduce the assessment; and WHEREAS, on May 31, 2006, the Governor and Cabinet authorized $ 1. 5 billion in bonding authority to address the CAT Fund deficit, which must be recovered from assessments on all but a few property and casualty insurance policies in this state; and WHEREAS, the population of Florida is growing and the value of real property is increasing, while private- sector insurers are limiting their underwriting, resulting in additional demand for property and casualty insurance at a growth rate of over 50, 000 new applications for Citizens' coverage per month; and WHEREAS, Senate Bill 1980, which was passed, by the 2006 Legislature and signed into law by Governor Bush is a good initial step toward refonning the CAT Fund and Citizens, as well as encouraging residential hazard mitigation and the investment of private capital in Florida' s insurance market, but more far- reaching changes are necessary to stimulate affordable private alternatives to accommodate the growing demand for property insurance and reinsurance. NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERSHIP OF THE FLORIDA LEAGUE OF CITIES: Section 1. That the Governor and Legislature take expedient action to resolve the property insurance crisis facing the citizens, businesses, and governmental entities in this state. Such solutions should include: a. Improving competition and creating incentives to attract greater private capital investment in the Florida primary and reinsurance markets; b. Encouraging commercial and residential hazard education and mitigation among all Florida property owners; c. Depopulating Citizens, restructuring of the CAT Fund, and encouraging private alternatives for insurance and reinsurance; and d. Florida Building Code upgrades to provide enhanced windstorm protection. Section 2. That all individuals, associations, market sectors, consumer advocate groups and all other entities impacted by the current property insurance crisis be afforded an opportunity to provide recommendations and solutions. Section 3. That any such solutions to the property insurance crisis be presented to the Governor and Legislature prior to the convening of the 2007 Legislative Session. PASSED AND ADOPTED BY THE LEGISLATIVE COMMITTEE OF THE FLORIDA LEAGUE OF CITIES, ORLANDO FLORIDA, NOVEMBER 17, 2006  2007 Northwest Florida League of Cities DRAFT Legislative Priorities During August- October 2006, the Northwest Florida League of Cities (NWFLC) solicited input from its member and non- member cities regarding the major legislative issues the NWFLC should focus on for 2007. The input was solicited and obtained through its Annual Legislative Survey mailed and faxed out to every member and non-member city, through e- mail, and from telephone communications. The draft priorities were presented at the October 18 meeting of the NWFLC Board of Directors and presented for final approval at the November 2006 meeting held in conjunction with the Florida League of Cities Conference in Orlando, November 15- 17, 2006. The NWFLC includes 50 Member Cities, representing over 440, 000 constituents, and works closely with the Florida League of Cities in representing the interests of Northwest Florida' s municipalitiesto the Florida Legislature, the Executive Office of the Governor and Cabinet, and state agencies. The cornerstone legislative priorities for the NWFLC each year are to (1) vigorously 2) vigorously oppose any efforts to impose unfunded mandates on municipalities and ( oppose any attempts to usurp or reduce either through statute or by constitutional amendment the Home Rule 2overnin2 authority of municipal 2overnment. In addition, the NWFLC will strongly support state legislation, constitutional amendments, existing municipal funding sources, create new or or program initiatives that preserve expand existing municipal revenue capacity options, or provides greater flexibility for municipal government fiscal home rule authority in order to adequately fund and provide for the services and needs of their communities and citizens. The following represents the 2007 legislative priorities of the NWFLC: Propertv Insurance Reform The NWFLC encourages the Florida Legislature, and the Governor and Cabinet to take expedient action to resolve the property insurance crisis facing citizens, businesses, and governmental entities in this state. The NWFLC will support legislation and programs that target ( a) improving competition and creating incentives to attract greater private capital investment in the Florida primary and reinsurance markets; (b) encouraging commercial and residential wind hazard education and mitigation among all Florida property home owners; and ( c) Depopulating Citizens and reducing the exposure of the CAT Fund by encouraging private alternatives for reinsurance. Increased and Sustained Fundin2 for Affordable Housin2 The NWFLC will support legislation that increases funding for affordable housing Trust programs, perpetuates the full funding and operation of the Affordable Housing Fund, and removes the cap on funds available and targeted for affordable housing in Florida. Identification and Inte2l1ltion of Local Road Improvements with Stratetrlc Intermodal System ( SIS) PlanniDl! and Implementation The NWFLC will support legislation and programs that ensure a more equitable and fair distribution of SIS transportation funds for identified needs in Northwest Florida and for studies and programs that identify and integrate into SIS funded projects necessary local and regional road expansions and improvements. Growth Manai!ement " Glitch" Bill The NWFLC will support a " glitch" bill that clarifies provisions of CS/ CS/ CS/ SB 360 passed during the 2005 Legislative Session. Specifically, the NWFLC will support revisions to CS/ CS/ CS/ SB 360 that ensure state oversight over comprehensive planning activities is minimized, promote local flexibility in the establishment and implementation of impact fees, school concUITency requirements, building permit fees, and other fees, provide adequate funding for technical assistance and infrastructure needs, and better define the role and interests of state government in local planning functions. Increased Fundini!for Water and Wastewater Infrastructure The NWFLC strongly supports funding for improved and expanded wastewater, potable water, and surface water infrastructure facilities. Establishment of a dedicated revenue source for small and rural cities to expand capacity and retrofit existing infrastructure is critical. Confidentialitv of Municipal Official. Employee and Resident Social Securitv Information The NWFLC will support legislation rescinding or effectively reforming the requirement of government agencies to release Social Security numbers of their employees and residents to private sector companies upon request. The NWFLC specifically recommends the deletion of Chapter 199. 0721( 3), Florida Statutes.