Friday, Jul. 03, 2009

Area residents may see flood of higher insurance costs, due to FEMA change

FEMA map deadline now August 2010

The cost of living and doing business in the metro-east portion of the Mississippi River basin could soar next year because of a Federal Emergency Management Agency decision to accelerate the pace at which flood hazard maps must be approved.

About 150,000 property owners in the metro-east could be required to buy costly flood insurance by August 2010, the deadline for the preliminary approval of the flood maps. Metro-east leaders had believed the new flood maps for their side of the Mississippi River wouldn't take effect until 2013.

With work barely begun on the task of repairing the region's network of flood protection levees, the result of the flood insurance requirement could be financially devastating, said Les Sterman who on July 22 takes over as chief supervisor of construction for the Southwestern Illinois Flood Protection District Council.

"It's a huge concern right now, and we're trying to work that problem, also," Sterman said. "Because if we continue down this path, there could be people losing their homes over this.

"I just find it incredible that in a difficult economic time like this, you can get thrown out of your house not by a natural event or anything else but by the government."

And the challenge has grown exponentially in recent weeks because of two pieces of disappointing news from the federal government:

* A year ago, the Army Corps of Engineers had estimated the price tag of repairing the levees at no more than $180 million. But in June, the corps raised the projected price tag to $450 million.

* A year ago, leaders in St. Clair, Madison and Monroe counties approved a special quarter-cent sales tax for flood repairs based on the strong expectation they would be reimbursed by the federal government for up to 65 percent of their costs. At a meeting in Alton last month, however, federal officials made it clear the federal government may not be able to provide any financial help.

St. Clair County Board Chairman Mark Kern recalled that at the outset, the corps had placed the cost of levee repairs at only $120 million.

So, based on that estimate, "we thought the quarter-cent sales tax would be sufficient to pay the full bill," Kern said. "Then reimbursement would occur. That was what the expectation was."

Now, with the repair estimate going well north of $400 million, "it's obvious the only way this can be fixed is if the federal government puts in its historical share in the project" -- which is 65 percent, Kern said.

But U.S. Rep. Jerry Costello, D-Belleville, said metro-east leaders knew as far back as two years ago that they would have to shoulder the responsibility of bringing levees in their area up to 100-year level.

"The bottom line is it is not only inaccurate, but it is misleading for the public to be told that 65 percent of the responsibility is the federal government's," Costello said. "Because it's not. These levees are the responsibility of the levee districts."

Despite Costello's words, a strong perception existed that the federal government would step in and provide the lion's share of funding for the levee repairs.

In June 2008, state Sen. Bill Haine, D-Alton, published an article in this newspaper promoting a bill he had co-sponsored setting up flood prevention districts in the three counties.

The temporary sales taxes these districts would enact would serve "as a lifeboat until we can obtain federal reimbursement of up to 65 percent," Haine wrote.

Madison County Board Chairman Alan Dunstan acknowledged the county's flood protection district faces some steep challenges. But he cautioned against anyone making any assumptions about how tough the situation is until Sterman takes over as chief engineer for the flood protection council.

"Nobody has a positive number of what this thing is going to cost," Dunstan said. "I don't know. No one seems to know."

Another asset the metro-east has is Costello because of his effectiveness in Washington, D.C., Dunstan said.

"In a situation like this, he's problably the best congressman you could have," he said. "This is just the start of a process that's probably going to be the biggest issue were going to be facing. ... The bottom line is these levees have to be brought up."