The Monroe County Commission's rejection to help fund a study to determine the accuracy of Florida Keys wind insurance rates will have a better chance of being reversed when the board reconsiders its decision on Aug. 19.
Commissioner Heather Carruthers requested the reconsideration, as she was out of town Monday when her colleagues voted against giving money to Fair Insurance Rates in Monroe County (FIRM), which wants to pay attorney Tim Volpe $100,000 and actuary Allan Schwartz $50,000 to do the research.
As FIRM president, Carruthers supports the proposal. The County Attorney's Office has ruled her vote would not pose a conflict of interest because the money would not be paid to FIRM, but the attorney and actuary.
The proposed study comes as Citizens Property Insurance Corp., the Keys wind insurance provider of last resort, has asked to raise rates by 10 percent a year. The increase would be compounded annually -- $1.34 the first year, $1.46 the second year and so on. That would bump Monroe County's annual property taxes of $13.44 per $100,000 of assessed value to $14.68 the first year to $16.14 the next year -- until it eventually doubled the rate within six years, according to FIRM.
The Legislature froze rates in 2007 until 2010, allowing more time to establish fair rates for residents of the Keys and other coastal areas.
The initial proposal died without a clear majority, as the commission voted 2-2, with Mayor George Neugent and Commissioner Mario Di Gennaro in favor of chipping in for the actuary only and Sylvia Murphy and Kim Wigington against it. The commission also voted 3-1, with Murphy dissenting, to postpone its decision on the attorney.
Objections included the tight county budget, not knowing from what fund the money would come, and a desire to wait and see how much the other government entities kick in.
FIRM proposed each government pay 2.8 cents per resident. Key West has agreed to pony up $25,000, and Mayor Morgan McPherson told FIRM Executive Director Colleen Repetto he would be willing to propose another $16,000, she said. Marathon has agreed to pitch in $21,000 and Key Colony Beach has kicked in $2,200. Islamorada rejected FIRM, but Councilmen Michael Reckwerdt on Wednesday said he would ask the council to reconsider at its meeting later that night.
The county cannot increase its tentative property tax rate now that it has approved it. FIRM's request was not in the budget, but could come from reserve and other funds.
"Staff needs to identify where these funds are coming from," said Wigington, who complained the proposed fees for Volpe have increased from $50,000 to $100,000. "This is a lot of money coming from us. We are doing without paper and pencils right now."
In the past, the county has given FIRM $103,000 for various studies since 2006, county records state.
FIRM has spent the past several years battling what the group perceives as unfairly high windstorm insurance rates imposed on Monroe County property owners. The group previously has lobbied successfully against large rate hikes and for more accurate rate models. FIRM's work is estimated to have saved county property owners $445 million from 2006 to 2009, according to the group.
"I am doing everything in my power to get this money for this study," said Di Gennaro, who lobbied the Marathon council and plans to lobby the Islamorada council. "The county must stayed united. The county and the city must work together on this issue. It doesn't help just the homeowners, it helps everybody. They are doing a service to everybody in this community. I have been amazed at what FIRM has accomplished."
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