Flood Insurance – The FEMA Dilemma

    Almost three years ago, in September of 2012, Council Member Aaron Moak introduced legislation to fund a flood study of the Beaver Bayou watershed area of Central, a process that is estimated to save well over 1,000 Central homeowners a collective $1 million or more per year in insurance premiums.
    This process was known to be a slow one, but has proven to take longer than first estimated, and has taken several thousands of dollars more in engineering studies than hoped.  So, is it worth it?  I say absolutely yes.
    The Beaver Bayou study is being done according to FEMA’s published procedures and rules, and there is every indication that the flood maps produced should be approved by FEMA.  However, FEMA has requested additional data a number of times, and each time sets the process back another 90 days.  Frustrating? Yes, but not a reason to stop.
    FEMA’s representatives have said that it is very unlikely that the flood maps for this area will be updated by them in the foreseeable future, and this is the only other way that Central citizens can reasonably get relief from high and rising flood insurance premiums.
    The process has so far cost in excess of $100,000, but remember that many millions of real dollar savings are on the line for about 16% of the homes in Central.  And, once this process proves to benefit Central, there is a flood study just waiting to be done that will likely give the same benefit to another large area of Central in the Comite River watershed.
    So is it fair to spend tax dollars to benefit only a portion of Central’s citizens?  We do it every time we repair or overlay roads in one area of the city but not another.  The fact is, that 16% of the $10 million Central has in cash reserves came from those very citizens, and in the long run each of us will eventually be in that 16% and benefit on one issue or another.
    Finally, for you math people out there, consider the payback in sales tax dollars for our City and School System.  If just $1 million per year in flood insurance premiums is saved, and these families spend only half of that on goods in Central, it generates $225,000 in sales tax revenue in 10 years.  Any way you slice it, investing in saving our citizens money is Good News for a Great City.