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Show IGI 1301 WESTERN WESTERN MICROGRAPHICS 4555 a Volume 74 Number 10 i -- i COMMERCE i a i r ntrw DR i JT T 841 12 IC 841192040 2395 WEST712 : 010199 MICROGRAPH 5 031395 INC STE 200 rv nT7C r- A A Salina, Utah 84654 Wednesday, March 8, 1995 50 cents Economic Report dubs 1994 "Boom Year" By Greg Duerden Salina Sun Editor After last years economic performance was characterized as stunning, economists postulated that 1994 would again be a strong year, albeit somewhat slower than 1 993 . Instead, 1994 took off even strong than 93 and job growth sailed even higher, with the state creating 50,000 net new jobs and leading the nation in the job growth rate for the second year in a row. The 1 994 job growth rate of 6.2 percent is the highest in II 15 years and the third highest in history. This economic expansion is not only substantial, but sustained. This is the extending the longest period of employment growth of 3 or higher to seven years. Because of this performance, 1994 is distinguished as a boom year. The 1995 Economic Report to the Governor documents the exceptional economy of the past year, reviews the history of previous years activities and provides an outlook for the future. Many of the same trends that impacted last years economy are present again this year. A construction boom continues to lead economic growth and brings with it increases in related industries. Net has continued, as well as sizeable increase in gross taxable sales. On the downside, defense reductions, base closures and corporate restructuring continue to cause concern. But 1994 has introduced several new themes. These themes portray an economy that is: strong and booming, sometimes at record setting levels; broadly successful, meaning that economies in counties throughout the state are performing better, i private sector driven; competitive, with low business costs; diversified, with clusters of new industries performing very well; resilient, withstanding several threats to economic post-WW- . performance; cooling down, that is, gradually adjusting back to more sustainable and historical levels of performance; and looking toward major decisions in 1995. Each of these themes is described in more detail, followed by a brief summary of each chapter contained in this report Economic Outlook The Utah economy is expected to continue to experience growth in 1995. solid, above-avera- Employment is forecasted to increase by 4.3 in 1995, well above the historical average of 3.5. Several companies have announced permanent work force expansion and housing and labor costs in the state should remain below the national average. Forecast for 1995 are increases for: Population 2.4 4.3 Employment 7.2 Nonagricultural Wages Personal Income 7.4 Gross Taxable Sales 8.0 Overall economic growth is expected to be slower in 1995 than 1994 because of higher interest rates, federal defense and nondefense cutbacks, lower net less affordable housing, a tighter labor market, an improving business climate in California, and other factors. Of particular concern is the possibility of realignment or closure of Hill Air Force Base andor Defense Depot Ogden. Despite these risks, Utahs economy is still expected to be among the top performers in 1 995. - Long-Ter- m - Outlook Utahs population is projected to reach 3.11 million person by the year 2020. This projection represents an increase of 1 .2 million inhabitants between 1994 and 2020 and an average annual increase of 1 . 9 annually. Over the projection period, from 1 994 to 2020, approximately 1.3 million births are projected to occur, 400,000 deaths and 350,000 net During the same 26 year period, the school age population is projected to increase by over 191,000. Utah is projected to continue to have the youngest median age in the nation and the total population should increase at roughly twice the national rate. Economic Indicators -Labor Market Activity In 1994, Utah added a record 50,000 new nonfarm jobs for a growth rate of the strongest expansion since 1978 and the largest job growth rate of any state in the nation. The 1994 unemployment rateof3.7isthelowestlevel since 1957. Construction registered the highest growth rate of any major industry, increasing by 21.9. Mining was the only major industry to experience no growth. while the average monthly Total wages were up wage expanded 2.3 in 1994. Despite the rise in wages, (Continued on Page 10) 6.2, 8.6, Area Sterling Scholar coordinators prepare for the 1995 judging in Centerfield. Linda Miller of Gunnison Mark Anderson and Courtney Syme, and Rodney Cox, back, make final plans. See relates story on page 8 of today's Salina Sun. Salina crime rate is double Gunnisons; Highways to blame? By Greg Duerden Salina Sun Editor Salina is a quiet little town, but not everything is obvious. Gunnison is a comporable community, in most respects, or do they compare? Recently Salina Police Chief Gordon Keisel gave a presentation to the Salina Lions Club where he handed out copies of a couple of pages from the 1993 Utah Crime Report showing the crime statistics for the various com- munities in the state. Chief Keisel compared Monticello and comporable Sevier County employment gains in Job Service '94 report The latest figures from the Utah Department of Employment Security shows an increase in employment to 6.2 for the third quarter of 1994 in Sevier County. Widespread employment growth centers in the industrial sectors, while public (governmental) employment showed a reduction of 20 jobs. But the largest gain came in the retail trade sector, with about 155 workers being hired in the quarter. Auto dealerships and service stations added about 55 and restaurants added another 50 positions. The service sector showed 75 positions added, with almost all of these in the health care field. Wholesale sector added 36 new jobs and trucking jobs in the county increased by 33 slots. Construction added 30 people, mining and manufacturing added about 40. Construction permit valuation was up, with well over increase from third quarter 93, totaling $5.8 mil100 lion, the report claims. Most of this is attributed to residential construction in the county. in theffird quarter About60newhomes PPjoyed of 94, compared to 23 a year ago the same quarter. Residential valuation totals $4.1 million. Six apartment units, 6 mobile homes, 1 1 cabins and 32 homes were approved in the quarter, all in the countys unincorporated area. Four homes were approved for Annabella and one for Glenwood. Nonresidential construction also rose to $1.1 million, with approvals of two industrial buildings, two public buildings, one service station and one office building. Gross taxable sales revenue for the first quarter of 1 994, which is the latest available data, reported almost a 20 increase to a total of $3 1 .4 million. Retail sales were strong with $19.4 million, which is a 15 higher than the same time last year. Department stores was one of the only sections to show a decline, only an 8 dip. Manufacturing was another one of the declining sectors, with a 45 drop to $1.1 million. Wholesale of durable and nondurable goods showed a strong increase, from less than $1 million a year ago to over $3 million for this quarter. ; h popula- tions (Monticello with 1902, Salina with 2028) and both with major highways running Crime Categories What jumps out, in a comparison of the crime report for the three similar communities, is the significantly higher crime rate in Salina. Salina has a crime index of 153 or a crime rate of 75.44 per Tale of Three Cities both Salina, ge getting its moneys worth for their officers. Gunnison, using that same criteria, is getting a good deal as well, with 53 cases per officer. Monticello is comporable, having 60 cases per police officer. through them. Gunnison could Auto dealerships and service station generated $5.8 also be thrown into million for sales and food store sales approached $5.7 that comparison. The population is similar in size (1923, million. Taxable sales, in Richfield, showed a 20 increase, to which is actually closer to Salinas than Monticello) and it also has Highway 89 running through its community, $20.8 million. as does Salina. The biggest difference, according to Chief Kiesel, is the additional highways Salina has through its borders. There is Insterstate 70, Highway 50, as well as Highway 89. These roads bring more crime and criminals through The Central Utah Public Health Department will Chief Kiesels jurisdiction, increasing his three-ma- n hold an immunization clinic in Salina, on Wednesdepartments caseload. He told the Lions he and his day, March 8, 1995, at the American Legion Buildofficers have almost 70 cases per man. ing from 9 to 1 1 :30 am. Compared to the sheriff (with almost 15 per officer) or the Richfield PD (with about 32 per officer), Salina is Immunization Cline Set As reported here first... 1000 popula-- , tion. Gunnison has an index of 72 and a crime rate of 37.44; while Monticello has an index of 76 and a crime rate of 39.96. Breaking down into the Part I crimes (murder, rape, robbeiy, aggravated assault, burglaiy, larceny, motor vehicle theft and arson) all three towns have zero murders, rapes, robberies to report in 1 993. according to the report. Aggravated assault both Salina and Gunnison have four while Monticello has one. Salina has signficantly more burglaries, with 23 as compared to 14 in Monticello and only 8 in Gunnison reported in 1993. Larceny was another area Salina doubled the other communities, with 125 versus 6 1 for Monticello and 60 for Gunnison. Salina reported one stolen vehicle while the other towns reported zero. None of the communities reported any arson cases. Interest in Central Utah oil and gas continues Huge Central Utah gas reserve Last Thursday, Utahs State Geologist gave a speech prepared for the Utah Association of Petroleum and Mining Landmen. A belt of coal in Central Utah contains vast reserves of natural gas, according to Allison, director of the Utah Geological Survey. In the speech, Allison says a fairway of methane (coalbed gas) underlies a 12 by 80 mile area running through Carbon, Emery, Sanpete and Sevier counties. He estimates it could contain 4 to 9 trillion cubic feet of natural gas. The gas is trapped in coal deposits up to 40 feet thick lying at depths of 1000 to 5000 feet below the surface. One company. River Gas of Utah, has already drilled price. One Sanpete County parcel, which was 43.43 acres of over 70 wells in the northern third of the fairway in its Price. acquired land in Section 19 South 1 East, went to Sonja Drunkards Wash gas field near River Gas is currently preparing an Environmental V. McCormick of Salt Lake City, for $ 10.50 an acre. She told the BLM she was representing herself in the auction. Impact Statement in anticipation of drilling as many as Two parcels, among those sold, were in the Southern 1000 gas wells in the next decade. Two other companies, Anadarko Petroleum and T exaco, Utah County area (1 1 South 9 East). Parcels 129, which have recently drilled four wildcat wells to further define was 1643. 10 acres, went to Anadrako Petroleum Corporaof the fairway. the southern tion, of Houston, for $2.00 an acre. Parcel 130, which was the whole fairway could be a think We Allison said, 1308.61 acres, went to McCormick for $21.00 an acre. BLM leases went up for bid Monday, Feb. 27, and on Thursday) March 2 state Geologist, M. Lee Allison, gave a speech on the Huge Natural Gas Resources Identified in Central Utah. Linda Sorenson, of the BLM office in Salt Lake City, gave us the details of several parcels, within the Central Utah area, which were let for bid early last week. With 266 parcels up for bid, throughout the state, 81 were sold to various enterprises. Parcel 118 was 1266.56 acres in Sevier County, which went to Texaco Exploration and Production in Denver at $2.00 an acre. Parcel 119, also in Sevier County, was only 640 acres and also went to the same bidder for the same two-thir- ds rich as the Drunkards Wash area. If so, the area could support 3000 to 4000 nevy gas wells. There are currently about 3000 producing oil and gas wells in the entire state. No applications, yet While several groups have expressed interest in the Central Utah resources (oil and gas), the Richfield office of BLM says they have not seen any increase in interest, officially. Michael Jackson, the minerals and resource person for the BLM office in Richfield, said he has been here for seven years and his office has had no (zero) APDs on federal land during his tenure. We have had one seismic line (approved) around Yuba Lake last year, he said. But he has received a couple of phone calls but no one has applied for any drilling permits or made official requests to do any seismic work in the Sevier River Valley. The Jan. 4, 1995, issue of the Salina Sun and Gunnison Valley News carried a front page story about the wildcat well near Indianola which mentioned the oil and gas reserves as well as the expected activity it should generate within the next few months. |