Focus Issues
The changing face of Seminole; The unaffordability of Seminole
1. Exorbitant property insurance rates are driving Florida residents out of Florida. What can government do to assure that insurance companies share the risk, nationwide, so that insurance companies do not cherry pick the least risk insureds, and leave the rest of us in harm's way?
There were no catastrophic insurance claims made in Florida in 2006, but catastrophic premiums were paid. Will Floridians receive a reduction in premiums in 2007 as a result?
When our property insurance company left Florida last year, it was able to maintain the policies it had on automobiles here in Florida. Why are insurance companies able to profit from automobile insurance, and not share the risk on property insurance?
What does this have to do with my running for Membership on the Seminole City Council? If insurance premiums remain high, and/or continue to increase, the face of Seminole will be very different in five years. In fact, the faces of Seminole will be very different. Look around now. Will your neighbors and friends still be here . . . indeed, will you still be able to afford to live in Seminole?
What can you do, and what can I do about this as a Council Member? We need to exchange ideas. We need to communicate the effects of this situation on our local community, through personal examples, to our representation in Tallahassee. We need to express the gravity of the situation, formulate strategies and suggestion solutions, then monitor progress from those people who are in a position to address and make the necessary changes.
This affects our today and tomorrow in Seminole. We must all contribute to solving this problem. Please communicate your ideas and suggestions to me through my web site.
2. Property valuations have increased drastically the past few years. The sale of property at these higher assessed values has brought an influx of new revenue to the taxing authorities. Every time you have seen a For Sale sign go up/come down, that sale has generated huge increases in ad valorem taxes for your neighborhood.
Ask yourself this: With this sizable increase in revenue for spending on public services, how is it that less and less people can afford to live here?
Seminole's millage rate has declined since 1993 to its present 2.75. Seminole residents enjoy a low tax rate, and great services. We appreciate this, but realize that there are reasons that we find ourselves in this position. Now there are questions we must ask regarding our ability to continue on this path.
Since the property valuation growth has slowed, we cannot expect revenue growth to continue at the same pace. As Seminole residents, and as a potential Member of our City Council, we must ask: Has local government anticipated the slow down of new revenue from property taxes? Has it adjusted its budget accordingly? Is Seminole prepared for a resulting slow down in spending?
Has the substantial rise in taxes collected been earmarked for new, or possibly higher expenses? Has local Seminole government saved any of the newly created tax revenue? If so, how/where?
3. Home valuations will likely remain at these higher levels. This effects the face of Seminole today and tomorrow, in a number of ways. Please consider the following scenarios.
Consider what I might face if I were out buying a home in Seminole today. Would I qualify for a loan on the home I already own? Realtors have used a formula of annual family income, times three, as the valuation of a home which a new buyer might afford. Given my family's financial condition today, which is comparable to when we bought our home, the inflated value of the the home I live in now, would make it completely out of my own financial reach today. I am sure that many people would find themselves in this same position.
To further understand, those of us who already own homes in Seminole might ask ourselves, if I sold my home today, and immediately bought it back tomorrow, what would it cost for me to live in my present home? Take into account the new property valuations and consider the amount of the higher taxes you would be paying. Compare that with your present expenses. I am sure the ad valorem taxes would be much higher. How would this affect the possibility of your continued home ownership in Seminole?
Now ask, what would be the homeowner's insurance premium on the repurchase of your home today? Could you find affordable homeowner's insurance? Many people today cannot even find a company to write their new insurance, let alone an affordable policy.
One might say, well you bought your home at a good time, be happy with that. I am, but I am not only concerned for myself. I am concerned about the prospect of who my future Seminole neighbors might be. I hope to be a Council Member representing present and future residents of Seminole, so I cannot rest on what was possible for me six years ago. I must ask, who can afford to live in Seminole today, and who will be able to afford Seminole tomorrow? Whose faces will I see up and down my street in the coming months?
Answering these questions gives an idea of what prospective homeowners in Seminole must ask themselves. Sadly, these costs are out of the reach of most people. The gravity of this situation and the problems it may cause for Seminole are obvious.
What does this have to do with Seminole as a whole? In consideration of the higher property taxes and home valuations, who will be able to live in Seminole? Can working class people afford to move here? Can young families afford to move into Seminole? Will retired people on fixed incomes continue to move here? Can recent college graduates afford to purchase a home here in Seminole? How affordable will mobile home ownership remain with many residents living on fixed incomes, and the taxes and insurance for their land owners going up? Indeed, who will be able to continue to live in Seminole?
Consider these scenarios. There are many retired people who own homes in Seminole. Some would like to down-size, to move from multiple bedroom/bath homes, to smaller condos. They'd like to get rid of the lawn maintenance, and don't need the extra space. However, if they sell their homes, considering the higher valuations of the new property they might buy, they will likely being paying much higher taxes, in the new, smaller home. Living in a smaller home and then paying more taxes is a crazy proposition. Common sense says that they will not move. Sadly, they limit their choices and remain in a home that a young family may need.
How about this scenario? Rental property owners provide homes for those who either cannot afford to buy, or for those who choose to rent. We know that personal income for most people has not gone up in proportion to the huge increase in property valuations. With the property tax and insurance increases, the landlords are very likely losing money each month as the rental units bring in much less than the owner's expenses. How long can that continue?
I have heard that rental property owners are taking out equity loans to pay for tax and insurance increases. How long can that continue before a big chunk of the equity of the rental property is lost? Well, you say, they may simply sell their property. Who will be able to afford the property? Will anyone be able to buy the property at all? Will many properties sit vacant, unsold and unused?
Win, lose or draw in the March 13 election, these issues must be addressed. As you can see, I have talked to many neighbors and friends here. I am asking the questions, and I'm looking for answers. You're reading my analysis, so now you've got more information to think through. There are a lot of smart people out there, and collectively, we must address these issues.
Please send your ideas to me, talk to your neighbors, and/or contact your local newspaper or Tallahasee. I trust that you want critical-thinking people assessing this situation and directing your concerns and suggestions to places where the changes can be made. Let me be your voice on the Seminole City Council.
Please get your family, friends and neighbors to vote for Patricia Plantamura on March 13.
PLEASE NOTE THAT THIS PAGE MAY CHANGE CONTINOUSLY. NEW INFORMATION BRINGS NEW IDEAS, AND MORE INFORMATION MAKES FOR BETTER CHOICES. COMMENTS/IDEAS/SUGGESTIONS ANYONE?