State of the Community Luncheon

Friday, February 5, 2010Odawa Casino Resort

State of the Community Luncheon Sponsor

Bay HarborState of the Community

Luncheon

February 5, 2010

2009 Annual Meetingsof the

Bay HarborHomeowner’s Associations

Bay Harbor Homeowners Association

Annual Meetings2009 Presentation

Bay Harbor 2009 Homeowner’s Association Annual

Meetings

Bay Harbor Celebrates 15 Years

VICTOR INTERNATIONAL WINS TWO PRESTIGIOUS 2009 CNBC

INTERNATIONAL PROPERTY AWARDS

Receives four - star accolades“Best Development USA” - Bay Harbor

“Best Marina Development Caribbean” - North Sound Yacht Club

•Presidents of Associations

•Raise Awareness

•Involved in Community Issues and Activities

Bay Harbor Community Council

Village at Bay Harbor Celebrates 10 Years!

Village at Bay Harbor

BLOOM cava ilaria Hair Studio

New Website

Launched July 2009

villageatbayharbor.com

Bay Harbor Village Hotel & Conference Center

Bridal Expo – February 20, 2010

Noon – 4 pmThe Inn at Bay Harbor

Construction Update

Bay Harbor Yacht ClubLange Center Opened May 2009

Clean Marina Designation

Little Traverse Weather Buoy

•Great Lakes Observing System

•Deployed July 30, 2009

•Cooperative effort between Petoskey, Harbor Springs, Charlevoix and Bay Harbor

ACBS International Event September 11-19, 2010

Bay Harbor Golf Club

Ranked #8 among “Top 100 Golf Resorts” by Conde Nast

Bay Harbor Equestrian Club

Northern Michigan Tool Box Dressage Symposium - May 15 & 16

Environmental Update

East Park Re-Opened June 20, 2009

• CMS provided Resort Township with $400,000 for park restoration

Little Traverse Wheelway Non-Motorized Trail

• Petoskey to Bay Harbor trail segment opened November 2008

• Non-motorized trail throughout Bay Harbor – part of 23 mile dedicated trail system running from Charlevoix to Harbor Springs

Bay Harbor Foundation

Celebrates 5 Years!

Welcome to the World of Charitable Giving!

Bay Harbor Foundation Scholar Program

Scholarships Range from $2,000 to $5,000 each

•Awarded to 52 College Students

Bay Harbor - Guinness Book of World Records

“Longest Electric Vehicle Parade” – June 26, 2009

Bay Harbor Foundation and volunteers put forth an amazing effort to make this happen!

Bay Harbor Events 2010

•In-Water Boat Show – June 18-20•Vintage Car & Boat Festival – June 24-27•Fireworks – July 3•Baynanza – July 17•Art Fair – August 7•Fishing Tournament – September 10-12•Antique & Classic Boat Society – September 17-18•Home Tour – September 18

Thank you!Thank You!

PUBLIC SCHOOL FUNDING IN MICHIGAN AND HOW IT IMPACTS THE PUBLIC SCHOOLS OF PETOSKEY

John P. Scholten, Ed.D.SuperintendentPublic Schools of Petoskey February 5, 2010

SYMPTOMS AT THE NATIONAL AND STATE LEVEL

STATE BUDGET PICTURE

FY 2008-09 SAF REVENUE

31

House Fiscal Agency: January 2009

State sales tax, state income tax, and state education property tax are the three largest sources of SAF revenue.

$238

$144

$415

$423

$700

$729

$1,990

$2,010

$4,720

Other

Real Estate Transfer Tax

Tobacco Taxes

Use Tax

Lottery Transfer

MI Business Tax

Income Tax

State Education Property Tax

Sales Tax

Millions of Dollars

Source: January 2009 Revenue Estimating Conference.

GF/GP CONTRIBUTION TO SCHOOLS

$665.0

$587.0

$378.0

$421.0 $421.0$385.0 $377.8

$62.7$35.0 $34.9 $40.8

$249.4

$165.2

$198.6

$283.0

FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

Mill

ion

s

32

Hou

se F

iscal A

gen

cy

: January

20

09

FY 2008-09 GF/GP contribution to schools remains at a very low level compared to past years.

I thought Proposal A was going to fix school funding?

Basic Ideas Cut Property Taxes Reduce reliance on local operational millage

votes Assure a minimal level of funding for all schools Reduce funding discrepancies between districtsResults Homeowners saw an average 42% decrease in

property taxes Businesses saw an average 13% decrease in

property taxes

Proposal A Changed:

State Funding of SchoolsPrior funding was approximately 32% from the state and 68% from local sourcesAfter Proposal A, funding became approximately 80% from the state and 20% from local sourcesSales tax reliance more volatile than property tax

WHAT DOES ALL THIS MEAN?

As the property values in the Petoskey area increase, the benefit of the increased property tax revenue does not accrue to Petoskey Schools.

The State of Michigan benefits, as the amount of money sent from Lansing decreases as the local property tax revenue increases.

SO WHAT? Salaries and Fringes make up 80% of any

school district budget. Revenue is fixed; State Aid does not fluctuate

significantly without legislative action We are not factories, where we can just crank

out a few dozen more kids and dump them on the market to make quick cash.

PUBLIC SCHOOLS OF PETOSKEY

Financial Results – 2000 through 2009

SUMMARY

Your Board of Education has cut $6.5 million out of the budget over the past 10 years.

$6.5 million is the equivalent of 70 teachers, 100 busses, or a normal sized elementary school.

Fund Balance has still declined from its high of $3.7 million to $1.6 million.

$1.6 million equals approximately 3 weeks of expenses for the school district.

SUMMARY CONTINUED

For the current year, the Governor has rescinded the announced $127 per pupil cut;

However, the initial cut of $165 per pupil will remain. That equals about $500,000 for PSP.

Current forecasts indicate next year we will receive an additional cut of $268, which will be on top of the above $165. That equals loss of an additional $800,000 for PSP, or a total budget hole of $1.3 million.

The Public Schools of Petoskey

Even in Tough Economic Times,We Continue to Improve

Support for Education in Our Community

Points of Pride

The ManyAccomplishments of Our Students

& Staff!

“Education: a debt due from present to future generations.” -- George Peabody

February 5, 2010February 5, 2010

State of our HealthcareState of our Healthcare

Northern Michigan Regional Health System Northern Michigan Regional Health System

Michigan Heart andVascular

Specialists

Michigan Heart andVascular

Specialists

PetoskeyAssurance

Limited

PetoskeyAssurance

Limited

NorthernMichigan

HematologyOncology

NorthernMichigan

HematologyOncology

CommunityFree ClinicCommunityFree Clinic

PrescriptionServices

Pharmacy

PrescriptionServices

Pharmacy

HealthshareReal EstateHealthshareReal Estate

The Living Room

The Living Room

Great Lakes Mobile

Pet Scan Consortium

Great Lakes Mobile

Pet Scan Consortium

Affiliations(Independents)

Cheboygan Memorial Hospital

Cheboygan Memorial Hospital

Mackinac Straits Hospital

Mackinac Straits Hospital

Mackinac Island Medical Center

Mackinac Island Medical Center

Beaver Island RuralHealth Center

Beaver Island RuralHealth Center

Community Health Center of

Northern Michigan

Community Health Center of

Northern Michigan

Northern Michigan Medical

Management

Northern Michigan Medical

Management

NorthernMichiganRegional Hospital

NorthernMichiganRegional Hospital

FoundationFoundation

Hospiceof

Little Traverse

Bay

Hospiceof

Little Traverse

Bay

VitalCareVitalCareBoulder

ParkTerrace

Boulder Park

Terrace

Our MissionOur Mission

To provide healthcareas we expect

for our own family.

To provide healthcareas we expect

for our own family.

Our VisionOur Vision

To be the BEST PLACE for patient-centered care and excellence in quality, people, service and financial performance.

To be the BEST PLACE for patient-centered care and excellence in quality, people, service and financial performance.

Our Key StrategiesOur Key Strategies

Value

Physician-Health System Alignment

Partnerships

Value

Physician-Health System Alignment

Partnerships

The Sum Total of

Everything That Matters

valuevalue

valuevalue QUALITYHealthcareQUALITYHealthcare

SAFETY First

valuevalue

Top 5% In the Nation

Top 5% In the Nation

Patient SatisfactionPatient Satisfaction

Healthcare Goes

valuevalue

GREENGREEN

valuevalue

Financial Performance

Financial Performance

In 2008, over $19.7 million

was allocated to community services

Bad Debt and Charity CareBad Debt and Charity Care

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

2005 2006 2007 2008 2009

Charity CareBad Debts

$(12)

$(10)

$(8)

$(6)

$(4)

$(2)

$-

$2

$4

$6

2005 2006 2007 2008 2009Unaudited

Mill

ions

Health System Financial Performance

Health System Financial Performance

Physician-Health System

Alignment

Physician-Health System

Alignment

Service Partners

Alcona Health CenterHealth Department of Northwest MichiganNorthern Health PlanNorthern Michigan Regional Hospital

partnershipspartnerships

OPERATED BY ALCONA HEALTH CENTER

Partnerships and AffiliationsPartnerships and Affiliations

partnershipspartnerships

Largest employer in West Michigan14,000 staff1,500 physicians2,000 volunteers

Population over 9 million

Who Are They?

Who They Serve

Patients are the Center of our Partnerships

partnershipspartnerships

Together For A COMMON CAUSETogether For A COMMON CAUSE

State of the Economy

Carlin Smith, PresidentPetoskey Regional Chamber of

Commerce

It ain’t all that good

Real Estate Construction Infrastructure Consumer Spending Employment Tourism Health Care

Our biggest challenge?

The State of Michigan Auto Industry (lost 400,000

manufacturing jobs) Government Not Able to Provide

Services 76% of overnight guests in Michigan

are from Michigan 2nd Home Market

We can’t hang our hopes on Lansing

“You really can’t wait for Lansing to get its act together or for the auto industry to reconstitute itself. We need to make a future right now.”

--Patrick Anderson, CEOAnderson Economic Group

Real Estate “Not getting better yet”

Tax Structure Challenging for the 2nd Home Market

Foreclosures are still out there Commercial Real Estate still in decline

Positive Notes? Tax credits have been helpful to first time

home buyers Things are improving nationally

Stock Market

“People are now looking at their statements again”

Dow Jones hit its trough on 3/9/09 at 6547

Has been up over 10,000 of late More optimism, more confidence,

but still not more spending

Employment

Dec. 2009 Emmet County, 18.6% Northwest Michigan, 16.2% State of Michigan, 14.3%

Employment

On the good side? Good job providers: Northern Michigan Regional Hospital Odawa Casino Resort/LTBB Odawa

Indians NCMC/Public Schools Boyne/Nub’s Petoskey Plastics/Manthei/Kilwin’s Etc.

Tourism

“I look at the increase in visitation by Michigan residents as a testament to the enduring and endearing qualities that our area has to offer.”

-Peter FitzsimonsPetoskey Area Visitor’s Bureau

Tourism

Down just a little bit, but holding our own

Pure Michigan has been helpful Aggressive marketing

What’s Next?

“I have no doubt that Michigan can regain its economic strength—but a robust Michigan economy in 2030 is not going to look like the golden days of 1950.”

--Charles Wheelan, EconomistUniversity of Chicago

The New Economy

The next few years will be spent finding the “new normal”

New Manufacturing Niches Aeronautics Alternative Energy Medical Government

The New Economy

Knowledge based economy Return to Agriculture Shift focus from bringing the right

business to town to bringing the right people to town

The New Economy

To live and work here, these cool new people need Convenient affordable air service Solid technology infrastructure Abundant recreation opportunities An authentic “sense of place”

The New (Old) Economy

Tourism Promotion—Pure Michigan Resortism Preservation

It’s Up to Us

Can’t wait for Lansing and the Auto Industry

So, what can we do to begin to move our economy in the Little Traverse Bay Region?

It’s Up to Us

Spend locally Take smart lending risks on quality

local entrepreneurs Enhance our local technology and

communications infrastructure Advocate for better air service Advocate for Pure Michigan

Find New and Better Ways

“Survival of any business requires adaptability, collaborations, efficacy of programs, and high quality service.”

--Liz AhrensCrooked Tree Arts Center

Thank You