1. Financial Capital

2. What is Capital?  Capital is any resource capable of producing other resources.  Examples of capital include: cars, machines, buildings, land and money.

3. Public and Private Capital  Public capital are community resources: schools, roads, utilities, parks.  Private capital are individual resources: land, buildings, equipment, money.

4. Financial Capital  Financial capital represents resources that are liquid: having the ability to be turned into other assets.  Common forms of financial capital are stocks, bonds, market futures, letters of credit and money.  Financial capital is extremely mobile today which results in growing problems for rural communities.

5. Availability of Financial Capital  Loans: short-term or long-term (bonds) funds borrowed from a financial institute.  Stocks: selling shares of a business to obtain financial capital in exchange for dividends and voting rights that determine management controls.

6. The Rise and Fall of Banks  1780’s – 1920’s banks were easy to start due to lack of regulations.  During Great Depression, tens of thousands of banks failed. Many were located in rural communities. Federal and State regulation of banks instilled trust in the system and helped insure financial capital would be reinvested into the local communities.  Deregulation of banks in 1980’s caused a change in flow of financial capital. Mostly out of rural communities in search of short-term returns.  “income multiplier”- tool used to determine to what extent capital is reinvested into a community

7. Maintaining Local Financial Capital  Community Reinvestment Act of 1977: aimed at poor urban areas, rural area at this time seemed stable.  Brownfields Act in 1995 revised the CRA to target a broader range of “low-to- moderate income communities”.  New programs and community foundations are arising to address the financial capital issues for rural communities.

8. The gov’t that Failed?  Governments can provide tax concessions to certain investments or geographic areas.  Although this can bring more businesses, industries & people into a struggling community, it puts additional stress on publicly provided services, like schools, utilities, roads, etc.

9. Livingston County Statistics  1994 total personal income $281,287 Net earnings: 54.0% of TPI Dividends, interest, rent: 27.0% of TPI Personal current transfer receipts: 19.0 of TPI  2004 total personal income $366,570 Net earnings: 55.6% of TPI Dividends, interest, rent: 20.9% of TPI Personal current transfer receipts: 23.5% of TPI

10. Livingston County Statistics Continued OSEDA County Demographic Profile - Trend 1990-2000 Livingston County, 29117 Subject 20001990Change Note s Num ber Pct. Num ber Pct. Num ber Pct. (*) (*) 13. Households by Income Source Universe: Households Metadata: 1990 200019902000 Households With Income from Wage or Salary4,07670.33,91469.21621.1 Households With Income from Soc Security1,97034.02,04936.3-79-2.3 Households With Income from Public Assistance2073.63506.2-143-2.6 Households With Income from Retirement87615.170612.51702.6

11. Livingston County Statistics Continued OSEDA County Demographic Profile - Trend 1990-2000 Livingston County, 29117 Subject 20001990Change Note s NumberPct.NumberPct.NumberPct. (*) (*) 12. Selected Income Measures Universe: Households or Families or Persons Metadata: 1990 200019902000 Total Households5,796 5,652 1442.5 Median HH Income$32,290 $28,242 $4,04814.3 Average Household Income$40,891 $36,647 $4,24411.6 Families3,867 3,976 -109-2.7 Median Family Income$40,902 $36,070 $4,83213.4 Average Family Income$50,981 $43,397 $7,58417.5 Per Capita Income$16,685 $14,763 $1,92213.0

12. Livingston County Statistics Continued OSEDA County Demographic Profile - Trend 1990-2000 Livingston County, 29117 Subject 20001990Change Notes NumberPct.NumberPct.Number Pct. (*) (*) 14. Poverty (1999 dollars) Universe: Persons for Whom Poverty Status is Determined Metadata: 1990 200019902000 Persons For Whom Poverty Status is Determined13,592 13,744 -152-1.1 Poor Persons1,69212.42,07315.1-381-2.6 Persons Below 50% of Poverty Level6624.97005.1-38-0.2 Persons Below 185% of Poverty Level4,48833.04,80535.0-317-1.9 Persons Between 100 & 200% of Poverty Level3,31924.43,24123.6780.8 Persons Under 5 for Whom Poverty Status is Determined874 915 -41-4.5 Below Poverty Level19422.220222.1-80.1 Persons 5 to 17 Whom Poverty Status is Determined2,591 2,736 -145-5.3 Persons 5 to 17 Below Poverty Level41716.12,25782.5-1,840-66.4 Persons Under 18 for Whom Poverty Status is Determined3,465 3,651 -186-5.1 Below Poverty Level61117.668118.7-70 Poor Persons in Families1,17610.31,51812.7-342-2.4 Families Below Poverty3345.8510.92834.9

13. Business Patterns  In 2003 there were 8,888 jobs in Livingston County. Retail Trade1,204 Farm employment 845 Manufacturing 828 Local government 799

14. Income Patterns  Percent of income by Industry Manufacturing 9.2% Local government 7.0% Retail trade 6.5% Construction 4.1%

15. More Livingston County Statistics Subject 20001990Change NotesNotes NumberPct.NumberPct.NumberPct. (*) (*) 10. Employment Status Universe: Persons Age 16 or Older Metadata: 1990 200019902000 Persons Age 16 or Older11,50179.011,29477.42071.6 Civilian Labor Force6,83559.46,48157.43542.0 Unemployed Persons2203.23184.9-98-1.7 Female Civilian Labor Force3,25347.62,87344.33803.3 Unemployed Females in Civilian Labor Force 1233.81505.2-27-1.4 Not in Labor Force4,65540.54,78742.4-132-1.9 OSEDA County Demographic Profile - Trend 1990-2000 Livingston County, 29117

16. More Livingston County Statistics Continued OSEDA County Demographic Profile - Trend 1990-2000 Livingston County, 29117 Subject 20001990Change Notes NumberPct.NumberPct.NumberPct. (*) (*) 11. Work Force by Occupation Universe: Employed Persons in CLF Metadata: 1990 200019902000 Employed Persons in Civilian Labor Force 6,61596.86,16395.14521.7 Management, Professional & Related Occupations 1,81827.51,27820.75406.7 Service occupations1,23918.793715.23023.5 Farming, Fishing & Forestry Occupations 721.15028.1-430-7.1

17. Industry Incentives in Chillicothe  Farmers Electric Cooperative Companies offer loan programs of $400K zero- percent interest for 10 years.  Electric services are provided at no cost with no franchise fee’s or facilities charge.  City of Chillicothe offers revolving loan programs.  Chillicothe Industrial Development Corporation (CIDC) provides business loans.  Green Hills Rural Development offers low-cost interest loans.  Chillicothe Industrial Development Authority (IDA) offers revenue bonds.

18. Resources  Rural Communities Legacy + Change Flora & Flora, 2004.  U.S. Department of Commerce Bureau of Economic Analysis www.bea.gov/  Chillicothe Chamber of Commerce www.chillicothemo.com/index.html  Chillicothe Missouri http://www.chillicothecity.org/index.html  U.S. Census Bureau http://censtats.census.gov/  Office of Social and Economic Data Analysis http://oseda.missouri.edu/index.shtml  Images and Photos http://www.google.com/imghp?hl=en&tab=wi&qhttp://www.google.com/imghp?hl=en&tab=wi&q= http://www.google.com/imghp?hl=en&tab=wi&q