Summit: 09South Haven, MichiganThe Cash Flow Project

Friday, November 6, 2009Randy Parry, President

History

1995--two faculty members and two students met with other state community members at SDSU

Mini-grant from PRSCR covered expenses

FBLA used this as a service project

Schools & Community/ Economic Development

StaffFacilitiesTechnologyCurriculumStudents

Silent Participant Leader

Purpose of the Cash Flow Survey

Create more interest in and understanding of American business

Encourage members in the development of projects which contribute to the improvement of home, business, and community

Encourage and practice efficient money management

www.fbla-pbl.org

Process

Students Developed

Survey

ResidentsRespond

Students Analyzed

Data

Students Shared Analysis

CommunityBenefited

Survey Categories

A. Gasoline/Supplies

B. Automotive Repairs

C. Food/Beverage/Recreation

D. Prescription/Medical Supplies

E. Groceries

F. Clothing

G. Gifts

H. Lumberyard Products/Hardware

I. House wares/Personal Care Items/Other Retail

J. Basic Health/Medical Services

A. Gasoline- 12% F. Clothing- 7%

B. Automotive Repairs- 7% G. Gifts- 4%

C. Food/Beverage- 12% H. Hardware- 5%

D. Prescription/Rx Supplies- 12% I. House wares- 5%

E. Groceries- 24% J. Basic Health- 12%

What percentage of your disposable income do you spend on the following purchases?

A. Gasoline- 62% F. Clothing- 12%

B. Automotive Repairs- 63% G. Gifts- 22%

C. Food/Beverage- 44% H. Hardware- 48%

D. Prescription Supplies- 42% I. House wares- 29%

E. Groceries- 58% J. Basic Health- 46%

What percentage of your disposable income do you spend on the following purchases IN MINER COUNTY?

Percent increase of total spent = 10%

Economic spending factor = 3.1

Number of people = 600

What if?…

Projections

Income Level = $22,000

Total amount spent in Miner County =

$10,379.60

10% increase of buying in Miner Co. =

$1,037.96

Total income spent after % increase =

$11,417.56

Total increase of all categories = $622,776.00

Total increase of money spent within Miner Co. based on a specific number of people (600) with this income level = $622,776.00

Total increase in disposable spending times the economic spending factor of 3.1 for this income level = $1,930,605.60

Total increase in disposable spending in Miner Co. based on the ten categories for all income levels = $2,302,384.00

Total increase in disposable spending times the economic spending factor of 3.1 for all income levels = $7,137,390.40

Disposable Spending Calculations

1996 Gross sales -- $37,997,374.11

1997 Gross sales -- $53,614,358.60

Gross sales increased $15,616,984.49Overall increase of 41.1% from the

previous year.

In Miner County...

Selected Survey Results: Income Level $22,000 Total increase in disposable spending*: $1,930,605.60 Number of People: 600     Economic Factor: 3.1     Increase in Local Spending: 10%

5165

5864

76618560 8376

6836

62685398

44543739

32722884

0

1000

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6000

7000

8000

9000

1890

1900

1910

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1970

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1990

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Miner Historical Population Trends

Miner County Historical Population Trend

1990

2000

2001

2002

2003

2004

2005

2006

2010...

-

500

1,000

1,500

2,000

2,500

3,000

3,500 3,2722,884 2,806

2,6292,814

Miner County Population

Miner County Personal Income by Source 1990

Farm26%

Transfer Payments

16%Dividends, Interest & Rent21%

Wages & Salaries

24%

Non-farm Pro-prietors

12%

Miner County Personal Income by Source 2004

Farm; 20.00%

Transfer Payments; 19.00%

Dividends, Interest & Rent; 19.00%

Wages & Salaries; 26.00%

Non-farm Pro-prietors; 16.00%

Is there any hope?

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Miner County Taxable Growth

195,359.92

218,464.71 282,532.51

306,893.22

397,570.84

494,591.49

100,000.00

150,000.00

200,000.00

250,000.00

300,000.00

350,000.00

400,000.00

450,000.00

500,000.00

550,000.00

1996 2000 2001 2002 2003 2004 2005 2006 2007 2008

Howard Sales Tax Revenue

Miner County Tax Levies

0

2

4

6

8

10

12

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Investing In & Supporting the Local Economy

• Cash Flow Project

• The actual amount of increased gross sales was $15,600,000.

• It was an overall increase of 41.1% from the previous year.

Economic DevelopmentInvesting In & Supporting The Local Economy

• Improving & Communicating Access to credit• Supporting & Facilitating Renewable Energy Industry Development• Supporting & Enhancing Systems of Business Recruitment, Expansion & Retention• Developing & Implementing Community Beautification Programs• Creating & Providing Access to Systems of Affordable Quality Childcare• Facilitating Development & Promotion of Local Tourism• Developing & Building Rural Learning Center

Economic Engines

Are not understood or underestimated by rural communities

Stimulate and create economic growthImpact positively by employing people,

accessing capital, exporting products and services

Travel beyond the community into the region, nation, and world

Import Sourcing of people, jobs, investment vs. outsourcing

Miner CountyEconomic Engines

Renewable Energy

Organic Beef

Rural Learning Center

Telemedicine/Rural Health/Seniors/Retirees

School System

CommunityLeadership

Council

Cities

County

Schools

Miner County Heritage Fund

Financial Institutions

Development Corps

RLCHousing

RLC Capacity Building

RLC Economic

Development

FaithCommunity

Community Organizations

Informed, Collaborative Decision-Making

The purpose of the Community Leadership Council is to facilitate local leadership that is:

Committed to Working TogetherAble to Think and Act CreativelyOpen to redefining “Community Boundaries”Willing to Do Things Differently

Knowledge, Ideas & Community-based Perspective

Renewable Energy Economic Impact

• Living Wage Jobs Created With Benefits

• 63 Jobs in Howard, SD is comparable to 7875 Jobs In Sioux Falls, SD

Renewable Energy Economic Impact

• For every student coming into the school district is $4,350 in state support

Renewable Energy Economic Impact

County’s Gross Sales and Retail Sales Taxes at all time highs

Increase in Tax Base for Community Services

Renewable Energy Economic Impact

Housing Rentals and Sales Increase

Renewable Energy Economic Impact

Export based industry= money in, not money out

Renewable energy sector brings new individuals to Miner County, and adds to the knowledge economy

Economic Impact Analysis Classes were held to study the impact of Health Care

in Miner County

IMPLAN Workshop

Manufacturing Sectors Income Multiplier Impact

Knight & Carver $4,824,272 1.16 $5,623,349

Energy MaintenanceSystems $1,507,584 1.16 $1,757,296

TOTALS $6,331,856 $7,380,645

Miner County Renewable Energy Impact on Income

Miner County Renewable Energy Impact on Employment

Manufacturing Sectors Income Multiplier Impact

Knight & Carver 48 1.2459.6

Energy MaintenanceSystems 15 1.2418.6

TOTALS 63

78.2

Miner County Proportion of Total Personal Income by Source 1990-2004

Total Personal Income 52,007 63,572 61,934 67562 60832 58137 66654 674521990 1996 1997 2000 2001 2002 2003 2004

Farm 25.6% 24.9% 26.0% 11.7% 13% 8% 22% 20%13,312 15,824 16,074 7891 7891 4755 14572 13572

Transfer Payments 16.9% 18.2% 18.7% 17.0% 20% 22% 19% 19%8,772 11,576 11,558 11514 12418 13016 12901 13047

Dividends, Int., Rent 21.3% 20.6% 21.2% 19.7% 23% 23% 19% 19%11,058 13,075 13,115 13282 14292 13435 12832 12834

Wages & Salaries 25.0% 20.3% 22.5% 31.0% 28% 28% 24% 26%13,001 12,926 13,958 20930 17166 16378 16260 17300

Nonfarm Proprietors 11.3% 16.0% 11.7% 20.6% 15% 18% 15% 16%

Seniors

• Over 800 residents over the age of 62

• Over $12 million in transfer payments per year

• Volunteer In-Kind Value “Priceless”

• Pool For Investment Capital

• Treasure Chest of Knowledge

• Support groups—Business, Church, Childcare, etc.

• Healthcare availability is essential to the sustainability and growth of Rural America

• If 5 Seniors leave, it’s like a small business leaving your community

Doctors, Dentists, & Other Medical Professionals 22.4 1.35

30.3

Nursing Home

& Pharmacies 118.1 1.24 146.5

TOTALS 140.5

176.5

Health Sectors Employment Multiplier Impact

Miner County Health Sector Impact on Employment

Miner County Health Sector Impact on Retail Sales and Sales Tax Collections

Retail 1 CentHealth Sector Sales Sales Tax

Collection

Doctors, Dentists, & Other Medical Professionals $680,999 $6,810

Nursing Home & Pharmacies $1,269,314 $12,693

TOTALS $1,950,313 $19,503

24 Residents x Social Security Payment ($10,800 Avg) = $259,200

24 Residents x Medicare Payments ($5,900 Avg) = $141,600

Total $ 400,800

Transfer Payments are Very Important to the Local Economy!

For example: Assisted Living Facility Impact

Investment In Strategic Plan 2005

Partners’ Fuel $20,978,738

Partners’ Understanding and Collaboration

$Priceless

Mike Rounds, South Dakota Governor

What you’re seeing here today is what happens when a community comes together and believes in the future of their community. This is an example of what happens when you start the long-term plans and put your resources together.

Thank You!

www.rurallearningcenter.org

Start Your Community Engines

Educate Leaders◦Economies of Scale vs. Dis-Economies of Scale◦Time Convergence

Companies move in for lower costs◦Worry that there might not be enough workers

Workers move in for quality of life◦Worry that they will not be able to get a job

◦Community Building a priority◦Long-Term Strategy & Vision◦Grassroots Action coordinated with City, State

and Federal strategic resources

It’s All Connected