Saturday, March 12, 2011

Mayor and majority of council once again ask Rep. Spencer to do the right thing.

Here is future mayor Chuck Trader's take on the situation:

"I wish Representative Spencer would have been more willing to support the majority vote of council on the senior homestead exemption issue. I was surprised of his unprofessional and critical remarks toward his fellow citizen representatives.

Beyond that, I believe the position of Representative Spencer on the senior homestead exemption should consider much more than his one dimensional position that a $30,000 drop in property tax revenue for the city would put an undue hardship on all the other citizens of St. Marys.

I believe this analysis is shortsighted and should have included a more seasoned and in depth consideration of items that were ignored such as (1) seniors have one of the largest disposable incomes of any other segment of the population; (2) seniors build bigger than average houses that result in more property taxes for the city; and (3) seniors pay county and school system taxes (80% of their property tax bills) as well as LOST and SLPOST that all have a favorable impacts on all the citizens of St. Marys. With most senior citizens not having students attending local schools these taxes would be “free” revenue for all the county citizens to share with reduced taxes. It should also be noted that many seniors become very actively involved as volunteers in making their communities better places to live.

Most importantly, the increased level of senior spending creates local wealth and increased prosperity. A little understanding of economic theory has proven for decades that increased spending has a significant impact known as the ‘multiplier effect’ on the economy. The amount spent by citizens becomes income for someone, a portion of which is saved while a large portion is spent. This additional spending becomes income for someone else…and the cycle repeats. This economic theory is one of the key factors why we as a state and local municipality focus on bringing new residents and tourism to the area. The multiplier effect is alive and well and is real money that alone would well exceed the $30,000 that seems to have gotten all the attention.

It is my sincere hope that Mr. Spencer will move forward with the bill as approved by the majority of St. Marys City Council several months back. It seems that an incomplete financial analysis and consideration of all the facts may have been shortsighted and one dimensional.

I believe that seniors are an investment in the future. Should St. Marys have to take a back seat to other areas both in and outside of Camden County that focus on attracting the demographic segment with the wealth and large disposable incomes? I don’t."

Here is the mayor's letter to Rep. Spencer:

To enlarge, click on letter, then click on letter again.


Camden Wildcat said...

Rep. Spencer want you to email him Jay so that you may post his response to the Council.

Jay Moreno said...


Rep. Spencer has my e-mail address.