Sept. 4, 2008

   A Publication of the Economic Development Corporation of Utah
CEO Jeff Edwards

President's Message

Kudos to South Jordan City; Rick Horst


South Jordan City has drawn national attention for its work in creating a 20-year financial stability forecasting model—an innovative way of looking at the past to predict future city needs. The city presented a case study this summer at the Alliance for Innovation's annual Transforming Local Governments (TLG) Conference in Greenville, South Carolina. Since then it has received numerous requests for copies of the model, which it has willingly shared. We commend South Jordan City for its innovative approach to city planning and also for its willingness to share it's innovation with other municipalities across the country. This week's feature story highlights the work by South Jordan City.

We would also like to applaud the work of South Jordan's outgoing City Manager Rick Horst. After nine years of working with South Jordan, Rick has moved on to become city manager of Ocala, Florida. In the time Rick managed South Jordan the city experienced exponential growth in economic development and sales tax revenue. His tenure saw the growth of retail centers and the positive impacts of Daybreak's massive development on the west side.

Rick is originally from Florida and his new position allows him to live closer to family. We salute Rick for his contributions to Utah's economy and wish him the best of luck in his new endeavors.

Today's Economic Review also includes links to many of the ED-related news stories from the past week. As always, if you have comments, suggestions or topics you'd like to see in the Economic Review, please contact us by clicking the “Comments” button on the bottom of this page. Enjoy!

Jeff Edwards

Jeff Edwards
President and CEO

Feature

South Jordan City Sets the Standard for Innovation
in Municipal Government Operations


Trying to predict one's financial future can be difficult, at best, but for a city in high growth mode like South Jordan, such forecasting is an imperative not to be ignored. That's why in 2006 South Jordan developed a 20-year financial sustainability forecasting model using a complicated series of 50 Excel spreadsheets that, linked together, project needs and resources based upon property tax growth, tax revenues, land values, sales tax growth, inflation, capital and human resource expenditures.

“South Jordan City's cutting edge 20-year forecasting model provides a tool that literally brings the City's financial future into the present,” says City Manager John Geilmann. “The model provides the City's policy makers with time-based information to assist them in making decisions that truly do consider the best interests of the global South Jordan community for the present and the future.”

Thanks to its innovative advancements in governmental operations, South Jordan and its forecasting model have since received national acclaim. Earlier this year the city was recognized by the Alliance for Innovation, an internationally renowned nonprofit association of local governments. In June, South Jordan City was selected from among 90 cities to present a case study at the Alliance for Innovation's annual Transforming Local Governments (TLG) Conference in Greenville, South Carolina. The TLG conference represents the epitome of innovation in the public sector and drew local government professionals from across the country.

South Jordan was selected to present at the TLG conference because of its demonstrated creativity and leadership in redefining the conventional style of local governance. It's presentation, “Back to the Future: The Best Way to Predict the Future is to Create It,” showcased the city's efforts to create a long-term financial model and the management culture that supports it.

Mayor William Kent Money says he is pleased South Jordan is being recognized for its innovative efforts to provide wise and sustainable financial management solutions. “Our citizens deserve the best and I think South Jordan is proving that governments can and do take a proactive approach to long-term sustainability,” he adds.

Indeed, the model helps South Jordan City officials forecast the long-term effects of the decisions they make and provides a framework for discussing how to create a sustainable community in the future.

“We're trying to get a good mix of revenue,” says Laurie Johnson, assistant city manager, administrative services. “We want to be balanced so that we aren't totally dependent on sales taxes and our property taxes and fees aren't too high, otherwise no one could afford to live here. It's like a three legged stool.”

While the model is only as good as the data and assumptions put into it, Johnson says it's design makes it easy to update. “Each year we look at the previous year's data and ask, “Did our assumptions hold true?” she says. “Then we can adjust our plans and decisions accordingly."

South Jordan's population has increased nearly 70 percent since the 2000 census and is projected to continue its rapid growth for the foreseeable future. City leaders have expressed a strong desire to manage the growth and create a community that will be fiscally and socially sustainable for generations to come. Geilmann says the forecasting model integrates land use information with tax policy, economic development and personal needs to assess the impact of today's decisions in such a way that city leaders can visualize their impact for approximately 20 years into the future.

CALENDAR

Sept. 8: 2nd Annual What's IN OUT Back Economic Summit and Golf Tournament  (Zermatt Resort/Homestead Resort & Golf Course)
Sept. 10: Blueprint Jordan River Open House, Utah Cultural Celebration Center, 1355 West 3100 South, West Valley City and Sept. 11 at Lehi Legacy Center, 123 North Center Street, Lehi or the Gale Center, 10300 Beckstead Lane, South Jordan
Sept. 13-17: IAMC (Oklahoma)
Sept. 25: What's Goin' Down Up North - Northern Utah Economic Summit,  9 a.m. - 3 p.m. (Utah State University Innovation Campus, North Logan) Registration form.
Sept. 30: Utah Chapter NAIOP Survivor 2008 Bus Tour
Oct. 9-12: CoreNet (Orlando)
Oct. 21: 3rd Annual Procurement Symposium
Oct. 22: Quarterly Update
Dec. 17: Holiday Open House (EDCUtah)
 

In The News

Economic Development Headlines from the Past Week

New director takes helm at SLC Planning Division

- After a week at the helm of Salt Lake City's troubled Planning Division, Director Wilford Sommerkorn says morale in the department is on the upswing. (KCPW)

Into the wind — State's first wind farm selling power to PacificCorp grid

- The winds of change are blowing at the mouth of Spanish Fork Canyon, and a California-based company is there to capitalize. A 19-megawatt, nine-turbine wind-energy facility is up and running, selling electricity to PacifiCorp and representing the first utility-scale wind project in the state's history. (Morning News)

Microsoft invests in Utah firm that streams TV online

- Microsoft has become an investor in Move Networks, a growing Utah company that streams television on the Internet for entities such as the NFL and Disney. The Tuesday announcement came after an accord in which Move Networks will use its streaming technology to help operate Microsoft's Silverlight Web television service. (SL Tribune)

Fast-growing Utah firms make Inc. list

- A Provo company, Seastone LLC, is building a booming business around specialty gift card packaging - the tin boxes, hood ornaments and other wrappings that hold gift cards. Between 2007 and last year, Seastone's revenue jumped 1,343 percent - enough to rank it No. 183 on Inc. magazine's annual list of the 500 fastest-growing private companies in the United States. (SL Tribune)

Zions Bank deemed a long-term survivor

- Zions Bancorporation, the Salt Lake City-based banking company that operates in 10 states, rose the most in almost a month after Fox-Pitt Kelton Cochran Caronia Waller said it would be a ''long-term survivor'' of the credit crunch. (SL Tribune)

Utah County roundtable

- As the construction and real estate sectors slow, local business leaders find the positives in a growing county – new transportation options, revamped educational offerings and a healthy dose of entrepreneurial spirit. What is the current overall economy in the valley? (Utah Business Magazine--registration required)

Conditions slip a bit for Utah businesses

- Business conditions in Utah slipped a bit between February and August, according to a report released Tuesday. The Goss Institute for Economic Research said Utah's business-conditions index in August was 52.8, down from the institute's most recent figure for Utah, 53.9 in February. (Morning News)

Becker to visit Japanese sister city

- Salt Lake City Mayor Ralph Becker, along with two members of the Salt Lake City council, will board an airplane bound for Japan tonight. Becker, along with J.T. Martin and Van Turner, are headed overseas to participate in the commemoration of the 50th anniversary of Salt Lake City's sister-city relationship with Matsumoto. (KCPW)

Entrepreneurship through abundance

- Alan Hall is very blunt when asked about what he wants to do with his wealth. “We're looking for companies that are very high growth, that can return to us ten times our investment in about a five year period of time or sooner."Hall, who is the Managing Partner of Murcato Partners, also has a private investment firm, Island Park Investments. Through Island Park, he's looking for 100 high-tech or internet companies in Utah to invest in. (Utah Pulse)

Ogden makes a name for itself

- One of 10 places in the country where "you've gotta go." The third-best American town on the rebound. One of the 12 next great American adventure towns. These are just a few of the superlatives used recently to describe Ogden in national magazines and other prominent media outlets, which have caught wind of the city's revitalization efforts and the smorgasbord of nearby outdoor activities available to residents and visitors alike. (Standard Examiner)

Towne Centre mall finally expanding

- The Renaissance Towne Centre is starting to build again. The Bountiful City council approved the site plans for two new buildings, one of which has already begun construction near the Wells Fargo Bank building. (Clipper Today)

$21 million power plant now supplying Heber

- Residents of the Heber Valley have a fresh source of power in the Jordanelle Dam Hydroelectric Power plant, which was formally opened in a dedication ceremony Wednesday.
The $21.5 million facility began generating power on July 1. Construction of the project started in September 2006. (Morning News)

Utah billboards play to strengths

- A new generation of "Welcome to Utah" billboards is going up along highways entering the state. Unlike the past half-dozen years, when those billboards all heralded Utah's role as host of the 2002 Winter Olympics, the state's approach now will be more regional. (SL Tribune)

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