By Myrna Trauntvein
Times-News Correspondent
Nephi City serves as the hub of economic activity and home to most of the largest employers in Juab County.
"Tonight we will cover another aspect of the city general plan," said Randy McKnight, city administrator.
The council has been reviewing the city's general plan, section by section, at council meeting.
He said that Chapter Eight of the plan discussed the economic outlook and was followed by an analysis of the City's market potential.
"Jobs per household are a standard measurement of economic activity in a community," he said.
In 2008, Nephi City had approximately 2,400 jobs and an estimated 1,760 households, equating to approximately 1.36 jobs per household. In the same year, Juab County had approximately 3,327 jobs and 2,991 households, calculating to approximately 1.11 jobs per household. The reason for Juab County's lower ratio of jobs per household could be the fact that many county residents commute out of the county to work.
Data gathered from the Utah Department of Workforce Services, shows the top four employment industries in Nephi are: Trade, Transportation, and Utilities; Government; Construction; and Leisure and Hospitality.
The average number of Firms is 178; the average employment is 2,400; the total wages are $66,713,166 and the average monthly wage is $2,316.
The source for the data used is the Utah Department of Workforce Services, Workforce Development and Information Division, Annual Report of Labor Market Information, 2008.
According to the report on Juab County prepared by the Utah Department of Workforce Services, the construction industry tends to be the most volatile industry in the area, driving employment rates and wages up and down as projects are started and completed.
"Construction currently makes up approximately 14 percent of all employment in Juab County," said McKnight. "In order for Nephi City to build a more sustainable economic base and stabilize employment, focus should be put on industries that are less volatile, including manufacturing, education, health services, government and etc."
Many of Juab County's largest employers are diversified across various industries, creating a healthy economic climate.
"Additionally, the headquarters of all of Juab County's top five largest employers are located in Nephi City," he said.
In fact, according to the Utah Department of Workforce Services, the majority of the county's economic activity is focused in Nephi.
In addition to the top five, Owens Corning is a prominent and prospering business located in Nephi City.
In addition to employment and industry data, an analysis of city revenues aids in determining the economic sustainability of Nephi City. This revenue analysis makes comparisons with surrounding or other similarly sized cities, based on general fund revenue generation, to determine relative reliance on various revenue sources. The common revenue sources for each of the cities include property taxes, sales taxes, other taxes (such as energy, utilities), building permits, other licenses and permits, intergovernmental revenue (such as, Class C Road Funds, State Liquor Fund), charges for services, fines and forfeitures, and other miscellaneous revenues (interest earnings, rental of assets, and so forth).
Juab County's Top Four Largest Employers are (for 2009); Juab School District, 250-499; Central Valley Medical Center, 100-249; Nephi Rubber Products, 100-250; Mid-State Consultants, 50-99.
General Property Taxes in Nephi, Payson, Richfield, Beaver and Fillmore were compared in the study and were based on figures and percentages from the Office of the Utah State Auditor.
"Based on this analysis, Nephi City receives a slightly lower percentage of its revenues from sales taxes than do Payson, Richfield, and Beaver, receiving only 24.6 percent of all of its revenues from sales taxes, compared to a high of 44 percent in Richfield (highest among the cities chosen in the comparative analysis)," said McKnight.
The average for all cities in the sample, not including Nephi City, is 26.9 percent. This analysis suggests that it may be important for Nephi City to expand its retail sales, creating a more balanced revenue stream.
"Nephi City would also benefit from commercial growth, as commercial entities are taxed at 100 percent of market value as opposed to 55 percent of market value for residential properties," he said.
The purchases of goods and services was compared from the percentage of local buyers who purchased from among Nephi, Sanpete County, Utah County and Salt Lake.
For example, as far as appliances were concerned, Nephi residents purchased 11 percent of their appliances in the city, 1 percent in Sanpete, 84 percent in Utah County and 3 percent in Salt Lake.
"Remember that this data was collected in 2008 and may not reflect current sales since changes in our local retail market have changed," said McKnight. "The data does show local trends and attitudes toward local purchases."
Auto repair was higher for local repair people with 82 percent being done in Nephi, 1 percent in Sanpete; 13 percent in Utah County and only 1 percent in Salt Lake.
Automobiles purchased locally amounted to 37 percent of the sales. Local buyers purchased automobiles 2 percent of the time in Sanpete, 46 percent in Utah County, and 11 percent in Salt Lake.
Banking is done locally by 85 percent of residents, 1 percent in Sanpete, 14 percent in Utah County and 1 percent in Salt Lake.
"The purchase of clothing is one of the areas where we have the most leakage in sales," said McKnight.
Four percent of residents purchase clothing locally, 0 percent purchase in Sanpete, 88 percent purchase in Utah County and 3 percent purchase their clothing in Salt Lake.
Most dental care for area residents is provided locally with 64 percent of residents patronizing local providers. Only 3 go to Sanpete County, 28 percent use Utah County for dental services and 2 percent travel to Salt Lake.
Doctors in Nephi provide 76 percent of the medical care for local residents, 1 percent go to Sanpete, 26 percent go to Utah County and 2 percent go to Salt Lake.
When it comes to furniture purchases, only 12 percent purchase locally. That may change for future data since the city no longer has retail sales in furniture. Two percent of residents travel to Sanpete to purchase furniture and 27 percent make such purchases in Utah County with 5 percent of the sales going to Salt Lake.
In the area, 41 percent of residents dining out choose to do so locally. Only 1 percent travel to Sanpete, 59 percent, however, do travel to Utah County, and 1 percent go to Salt Lake.
Entertainment shows that 14 percent rely on local venues, 2 percent travel to Sanpete, 74 percent go to Utah County and 5 percent go to Salt Lake.
"The movie theater was not open when this study was done," said Kent Park, council member.
In fact, said Blair Painter, city clerk/recorder, the local theater connected to the city utilities June 1, 2009.
