Financial Capital. What is Capital? Capital is any resource capable of producing other resources. Examples of capital include: cars, machines, buildings,

Financial CapitalFinancial Capital

What is Capital?What is Capital?

Capital is any resource Capital is any resource capable of producing other capable of producing other resources.resources.

Examples of capital Examples of capital include: cars, machines, include: cars, machines, buildings, land and money.buildings, land and money.

Public and Private CapitalPublic and Private Capital

Public capital are Public capital are community resources: community resources: schools, roads, utilities, schools, roads, utilities, parks.parks.

Private capital are Private capital are individual resources: land, individual resources: land, buildings, equipment, buildings, equipment, money.money.

Financial CapitalFinancial Capital

Financial capital Financial capital represents resources that represents resources that are liquid: having the are liquid: having the ability to be turned into ability to be turned into other assets.other assets.

Common forms of financial Common forms of financial capital are stocks, bonds, capital are stocks, bonds, market futures, letters of market futures, letters of credit and money.credit and money.

Financial capital is Financial capital is extremely mobile today extremely mobile today which results in growing which results in growing problems for rural problems for rural communities.communities.

Availability of Financial Availability of Financial CapitalCapital

Loans: short-term or long-Loans: short-term or long-term (bonds) funds term (bonds) funds borrowed from a financial borrowed from a financial institute.institute.

Stocks: selling shares of a Stocks: selling shares of a business to obtain financial business to obtain financial capital in exchange for capital in exchange for dividends and voting rights dividends and voting rights that determine that determine management controls.management controls.

The Rise and Fall of BanksThe Rise and Fall of Banks 1780’s – 1920’s banks were easy to 1780’s – 1920’s banks were easy to

start due to lack of regulations.start due to lack of regulations.

During Great Depression, tens of During Great Depression, tens of thousands of banks failed. Many thousands of banks failed. Many were located in rural communities. were located in rural communities. Federal and State regulation of Federal and State regulation of banks instilled trust in the system banks instilled trust in the system and helped insure financial capital and helped insure financial capital would be reinvested into the local would be reinvested into the local communities.communities.

Deregulation of banks in 1980’s Deregulation of banks in 1980’s caused a change in flow of financial caused a change in flow of financial capital. Mostly out of rural capital. Mostly out of rural communities in search of short-term communities in search of short-term returns.returns.

““income multiplier”- tool used to income multiplier”- tool used to determine to what extent capital is determine to what extent capital is reinvested into a communityreinvested into a community

Maintaining Local Financial Maintaining Local Financial CapitalCapital

Community Reinvestment Community Reinvestment Act of 1977: aimed at poor Act of 1977: aimed at poor urban areas, rural area at urban areas, rural area at this time seemed stable.this time seemed stable.

Brownfields Act in 1995 Brownfields Act in 1995 revised the CRA to target a revised the CRA to target a broader range of “low-to-broader range of “low-to-moderate income moderate income communities”.communities”.

New programs and New programs and community foundations community foundations are arising to address the are arising to address the financial capital issues for financial capital issues for rural communities. rural communities.

The gov’t that Failed?The gov’t that Failed?

Governments can provide Governments can provide tax concessions to certain tax concessions to certain investments or geographic investments or geographic areas.areas.

Although this can bring Although this can bring more businesses, more businesses, industries & people into a industries & people into a struggling community, it struggling community, it puts additional stress on puts additional stress on publicly provided services, publicly provided services, like schools, utilities, like schools, utilities, roads, etc. roads, etc.

Livingston County StatisticsLivingston County Statistics

1994 total personal income $281,2871994 total personal income $281,287

Net earnings: 54.0% of TPINet earnings: 54.0% of TPI

Dividends, interest, rent: 27.0% of TPIDividends, interest, rent: 27.0% of TPI

Personal current transfer receipts: 19.0 of TPIPersonal current transfer receipts: 19.0 of TPI

2004 total personal income $366,5702004 total personal income $366,570

Net earnings: 55.6% of TPINet earnings: 55.6% of TPI

Dividends, interest, rent: 20.9% of TPIDividends, interest, rent: 20.9% of TPI

Personal current transfer receipts: 23.5% of TPIPersonal current transfer receipts: 23.5% of TPI

Livingston County Statistics Livingston County Statistics ContinuedContinued

OSEDA County Demographic Profile - Trend 1990-2000

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sNumber

Pct. Number

Pct. Number

Pct. (*)

13. Households by Income Source        Universe: Households        Metadata: 1990 2000

Households With Income from Wage or Salary 4,076 70.3 3,914 69.2 162 1.1  

Households With Income from Soc Security 1,970 34.0 2,049 36.3 -79 -2.3  

Households With Income from Public Assistance 207 3.6 350 6.2 -143 -2.6  

Households With Income from Retirement 876 15.1 706 12.5 170 2.6  

Livingston County Statistics Livingston County Statistics ContinuedContinued

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sNumber Pct. Number Pct. Number Pct. (*)

12. Selected Income Measures        Universe: Households or Families or Persons        Metadata: 1990 2000

Total Households 5,796   5,652   144 2.5  

    Median HH Income $32,290   $28,242   $4,048 14.3  

    Average Household Income $40,891   $36,647   $4,244 11.6  

Families 3,867   3,976   -109 -2.7  

    Median Family Income $40,902   $36,070   $4,832 13.4  

    Average Family Income $50,981   $43,397   $7,584 17.5  

Per Capita Income $16,685   $14,763   $1,922 13.0  

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(*)

14. Poverty (1999 dollars)        Universe: Persons for Whom Poverty Status is Determined        Metadata: 1990 2000

Persons For Whom Poverty Status is Determined 13,592   13,744   -152 -1.1  

    Poor Persons 1,692 12.4 2,073 15.1 -381 -2.6  

    Persons Below 50% of Poverty Level 662 4.9 700 5.1 -38 -0.2  

    Persons Below 185% of Poverty Level 4,488 33.0 4,805 35.0 -317 -1.9  

    Persons Between 100 & 200% of Poverty Level 3,319 24.4 3,241 23.6 78 0.8  

Persons Under 5 for Whom Poverty Status is Determined 874   915   -41 -4.5  

    Below Poverty Level 194 22.2 202 22.1 -8 0.1  

Persons 5 to 17 Whom Poverty Status is Determined 2,591   2,736   -145 -5.3  

    Persons 5 to 17 Below Poverty Level 417 16.1 2,257 82.5 -1,840 -66.4  

Persons Under 18 for Whom Poverty Status is Determined 3,465   3,651   -186 -5.1  

    Below Poverty Level 611 17.6 681 18.7 -70 -1.0  

Poor Persons in Families 1,176 10.3 1,518 12.7 -342 -2.4  

    Families Below Poverty 334 5.8 51 0.9 283 4.9  

Business PatternsBusiness Patterns

In 2003 there were 8,888 jobs in Livingston County.In 2003 there were 8,888 jobs in Livingston County.

Retail TradeRetail Trade 1,2041,204

Farm employmentFarm employment 845 845

ManufacturingManufacturing 828 828

Local governmentLocal government 799799

Income PatternsIncome Patterns

Percent of income by IndustryPercent of income by Industry

Manufacturing Manufacturing 9.2%9.2%

Local government Local government 7.0%7.0%

Retail trade Retail trade 6.5%6.5%

Construction Construction 4.1%4.1%

More Livingston County More Livingston County StatisticsStatistics

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otes

Number Pct. Number Pct. Number Pct. (*)

10. Employment Status        Universe: Persons Age 16 or Older        Metadata: 1990 2000

Persons Age 16 or Older 11,501 79.0 11,294 77.4 207 1.6  

    Civilian Labor Force 6,835 59.4 6,481 57.4 354 2.0  

      Unemployed Persons 220 3.2 318 4.9 -98 -1.7  

      Female Civilian Labor Force 3,253 47.6 2,873 44.3 380 3.3  

      Unemployed Females in Civilian Labor Force

123 3.8 150 5.2 -27 -1.4  

    Not in Labor Force 4,655 40.5 4,787 42.4 -132 -1.9  

OSEDA County Demographic Profile - Trend 1990-2000

Livingston County , 29117

More Livingston County More Livingston County Statistics ContinuedStatistics Continued

OSEDA County Demographic Profile - Trend 1990-2000

Livingston County , 29117

Subject

2000 1990 Change

NotesNumber Pct. Number Pct. Number Pct. (*)

11. Work Force by Occupation        Universe: Employed Persons in CLF        Metadata: 1990 2000

Employed Persons in Civilian Labor Force

6,615 96.8 6,163 95.1 452 1.7  

Management, Professional & Related Occupations

1,818 27.5 1,278 20.7 540 6.7  

Service occupations 1,239 18.7 937 15.2 302 3.5  

Farming, Fishing & Forestry Occupations

72 1.1 502 8.1 -430 -7.1  

Industry Incentives in Industry Incentives in ChillicotheChillicothe

Farmers Electric Cooperative Companies offer loan programs of Farmers Electric Cooperative Companies offer loan programs of $400K zero-percent interest for 10 years.$400K zero-percent interest for 10 years.

Electric services are provided at no cost with no franchise fee’s or Electric services are provided at no cost with no franchise fee’s or facilities charge.facilities charge.

City of Chillicothe offers revolving loan programs.City of Chillicothe offers revolving loan programs.

Chillicothe Industrial Development Corporation (CIDC) provides Chillicothe Industrial Development Corporation (CIDC) provides business loans.business loans.

Green Hills Rural Development offers low-cost interest loans.Green Hills Rural Development offers low-cost interest loans.

Chillicothe Industrial Development Authority (IDA) offers revenue Chillicothe Industrial Development Authority (IDA) offers revenue bonds.bonds.

ResourcesResources

Rural Communities Legacy + ChangeRural Communities Legacy + ChangeFlora & Flora, 2004.Flora & Flora, 2004.

U.S. Department of CommerceU.S. Department of CommerceBureau of Economic AnalysisBureau of Economic Analysiswww.bea.gov/www.bea.gov/

Chillicothe Chamber of CommerceChillicothe Chamber of Commercewww.chillicothemo.com/index.htmlwww.chillicothemo.com/index.html

Chillicothe MissouriChillicothe Missourihttp://www.chillicothecity.org/index.htmlhttp://www.chillicothecity.org/index.html

U.S. Census BureauU.S. Census Bureauhttp://censtats.census.gov/http://censtats.census.gov/

Office of Social and Economic Data AnalysisOffice of Social and Economic Data Analysishttp://oseda.missouri.edu/index.shtmlhttp://oseda.missouri.edu/index.shtml

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