I'm seeing some talk about what is called the multiplier effect. I wanted to give that talk some airtime on the post. I've seen a few posts that state if you spend $100,000 in Dayton that gets multiplied by 7 and it becomes $700,000.
Generally, the multiplier effect means that if you buy local, a portion of that money stays in the community. For illustration, I spend $1 at the grocery store, that dollar will be used to pay the wage of grocery store cashier and replenish supplies of the grocery store. That grocery store cashier will use his or her wage to buy something at the gas station, which in turn pays the wage of that person at the gas station.
One problem with the multiplier effect is that there is a cutoff, and that cutoff is Fort Dodge. Fort Dodge has the items that many of us need at cheap prices. That is just the name of the game. Therefore, many of these $1 that I talked about above get cut off at the second or third exchange by a person taking his or her wage money and going to Fort Dodge to buy items. This is also the case when local businesses have to replenish supply, they go to businesses out of town. Nothing wrong with that, that's just how business is transacted. As we can see, $1 does not simply get multiplied by 7 and it becomes $7. The $1 hopefully gets exchanged seven times in the small town. However, this exchange gets cut off by bigger markets like Fort Dodge.
Some argue that we need more attractions in order to get people to spend money here. That is very true, and if it were as easy as adding attractions or businesses I would be first in line saying the golf course is a must because that would mean money would be recycled in Dayton. However, we have to remember these local businesses must be sustainable and self-sufficient in order to continue recycling our money in the community. If that business is not sustainable, then it fails. The issue with the golf course is the town of Dayton is the golf course's credit line and as that business loses money, our taxes are increased. Remember that original $1? That $1 gets taxed a little more heavily this year to make up for the increased taxes going to the golf course. Therefore, I only 95 cents now. That's not good because my pop that I buy at the gas station is still the same price. I don't have as much expendable income as I did before. Plus, I like spending my expendable income on things that I like; I do not like my expendable income getting taxed more as I illustrated above.
If the golf course does bad again next year, my original $1 is only 90 cents now, and that pop is still the same price, which means I have to make up for the price of the pop by using more of my expendable income. This also means less of my $1 goes to the wage of the gas station cashier and less stays in the town of Dayton due to the increased tax. My illustrations further do not take into account the loss of my original $1 due to the fact that the time value of money goes down each year. My $1 (untaxed) is worth more now than that same $1 (untaxed) a year from now.
Finally, this illustration does not take into account that we are losing the opportunity to use our current tax dollars to improve the overall condition of Dayton now. No matter what, our taxes will still be near the highest in Webster County for years to come even if the golf course improves two years down the road. This is because the town will need to maintain a high tax burden on us in order to improve the conditions of Dayton that were neglected in lieu of the golf course.
You are right about the way the multiplier works. It never increases in value. It just moves around allowing others to use it.
ReplyDeleteI would like to remind people of the reasons our tax rate is so high.
ReplyDelete1.New generator, a few years ago.
2.New sewer treatment system, a couple years ago
3.New water treatment plant, last year
4.New water well, this year will include some new water mains.
About the only infrastructure that hasn't been replaced is the streets. And every town has problem keeping them up/repairing them.
Just some FYI
And now a golf course that you can't electrify your home or drink the water of or flush with. Essentially a useless money pit.
ReplyDeleteI understand that, but these are things that were needed to keep the city maintained and functional. A golf course I don't believe falls into the same area as those things you mentioned. Our taxes will not go down in large amounts as the bonds are paid off because of new areas such as the infrastructure
ReplyDeleteneeding to be replaced. So as it was pointed out in one of the quotes from a meeting calling the golf course an amenity. I do not believe a golf course should be an amenity at the expense of the tax payers.
As a member of this new board, I resent the implication that I will be voting in favor of everything golfcourse no matter what the cost. Things have got to change out there, there are going to be some tough choices made, both for and against. Costs need to be cut, things need to be done differently. I for one will be looking at everything and I will be making my decisions based on what makes the most sense, and what's best for the city of Dayton.
ReplyDeleteTo member of the board. I hope you do what you say. I would like to see some facts and figures as to why this should be allowed to continue. Not just the usual we need recreation, but actual figures for everyone to decide whether this will float or sink. Also I think the board should come up with an actual plan of expenses and why the expenses and a plan of goals to be published in the paper and or posted here. I have never seen either.
ReplyDeleteWow, lets give the board a chance, you have the board already failing and they have not even had a meeting. Its people like you that give small towns a bad name! We won't have anything left in our little town if everyone is so supportive, it will be a town to come to and die in. The only thing you can count on are death and taxes.
ReplyDeleteI agree with samaddams. I don't think there has been any release of specific figures related to the golf course and I would like to see those financials to make my own determination of of how well the course did.
ReplyDeleteI am new to this site. Who is "The Dayton Observer"? Possibly I missed that.
ReplyDeleteThey won't reveal themselves! It's all a big secret!
ReplyDeleteSo people in the town have to be supportive of everything? I should be supportive of everything the government does? I personally support almost everything in Dayton. I just don't agree with continuing ownership of the golf course. Most everyone in town supports things that are successful. Continuing golf course ownership however, is costing taxpayers money. Money that they feel isn't being invested wisely. That is why people are against continuing ownership.
ReplyDeleteAlso this statement: "Its people like you that give small towns a bad name!" is not necessary to say. Saying things like this are what makes people's emotions boil and makes things not civil. I understand being upset however, we can all keep level heads here.
Can "The Dayton Observer" maybe give us a little information on your background? Age; Retired / Employed / Unemployed? Home owner? Business Owner? It would be nice to see what perspective you are forming your opinions from.
ReplyDeleteI don't know who the Dayton Observer is. No one seems to. That is probably for the best. I am sure most of know each other, but the way this town is divided it is best not to know who is posting what. Can you imagaine how ugly we would be if we knew who said what!! Just enjoy the right to disagree about this and thank the Dayton Observer for this great opportunity.
ReplyDeletesamaddamslite...I agree with most of what you said. The part I disagree with is "The Dayton Observer" is posting his biased opinons as fact. Yes, I'm posting anonymously too however, I am not authoring a site without any accountability. This is creating either promotion or disagreement with his personal opinions rather than fostering a healthy discussion from both sides based on FACT. It would be more, shall we say eithical, for "the dayton observer" to post a non-biased topic question for constructive debate. In that format I could respect "The Dayton Observer" remaining anonymous. In the current format it demonstrates lack of credibility and creates a devisive atmosphere.
ReplyDeleteBy posting your comment you can either agree or disagree with D(ayton) O(bserver) hereafter known by me as DO. The local newspaper does the same albeit everyone knows who he is. I have no problem with DO remaining unknown or you or I as far as that goes. Personally I think it is good since we can say what we want without fear of personal attacks from anyone in the community. One's opinion on things sometimes stirs more resentment from others than does a direct insult to that person. Just look how divided some are on this forum. As far as DO's opinion being fact, some of it is. The economic facts speak for themselves. Like I said I would like to see some economic facts from the pro-golf side. Thank you for your support of at least some of what I said. We should all be able to agree on the right to say what we believe as long as it is not personal or a complete fabrication. Along that line if I make a statement known to be false someone please correct me and give me proof thereof and I will readily admit my mistake.
ReplyDeleteI would like to remind everyone that blogspot is free. So if you want to start your own blog in the way you feel is the "right" way. Then you should do so. Also if you feel information is wrong than bring it up, DO has said before he doesn't mind anyone stating what they think.
ReplyDeleteI do want add another thing. Please sign up as with a username. Just go to blogspot's homepage and clink on start a blog. You then sign-up for a google account in the next page. Don't worry you don't actually have to start a blog. Then when you post a comment pick comment as: Google Account
I've enjoyed our discussion samaddamslite. Yes, we should be able to discuss what we believe and a blogspot is a great opportunity to do that without retribution from other.
ReplyDeleteMaybe DO will take my suggestions...
Hopefully others will refrain from unjustified personal attacks and keep criticism constructive, including DO.
We need to thank those who will serve on our new parks and rec board. Before they have even met they are already receiving personally directed attacks on this site, which is unfortunate.
Sitting on any type of community board is a thankless task. You just can't make everyone happy. Often they have to put their personal opinions aside and act on behalf of the majority of the community or in the best interest of it's citizens. I hope responsible members of Dayton can support the Parks and Rec board, along with the city council and all of our other community boards, in the difficult challenges that lie ahead. They do not deserve personal attacks, they deserve our respect and thanks for their sacrifices in helping make Dayton a great place to live.
Maybe I'll come up with some type of name so we know we're talking with one and other. We'll see.
It's Friday night. Hey, why don't we all take the night off this subject and go spend it with our families? This isn't going to get settled tonight and there's more to life than this issue that will pass.
Goodnight.
I've got to say that the last few commenters are the most objective of all so far. We can disagree and still be 1/2 way nice to each other. That's is the way it should be take the opinion of others and really think about thier side along with yours. As far as DO it doesn't matter who you are this a good thing, gets everyones opinion out there. Daytonflier also has a point but, we don't need to get a google acount, just make up a user name. You can call me Al.
ReplyDeleteSammaddamaslite, first of all I'm going to call you sam, cause I had to scroll up a couple times to see how you spelled that. I'm the board member and I will tell you that the first thing on the new boards agenda will be going over budget items. We have to go through the budget to see where we stand, then we need to figure our own budget, and that's not just for the golfcourse, but all the city parks. I believe there will be changes. I know everyone's concerned about this whole situation, the current economy does'nt help, people are scared, we just can't let our emotions get in the way of making good sound decisions. I know everyone on this board, and I can honestly say that I don't think anyone on it has a hidden agenda. I think we all hope to figure out a way to make it work(the course). But, I also think that if we can't find the answer that we'll be willing to make the right decision. That's it for me, everyone have a good weekend.
ReplyDeleteBoard member. Al
Thanks to all and go to your neutral corners. Come out fighting on Monday.
ReplyDelete