The health of Bountiful's tax base is linked closely to retail sales of automobiles and groceries, according to a research firm conducting an economic development study.
Robert Springmeyer, with Bonneville Research, said that fourth quarter sales in those two categories in 1986 and 1987 far outpaced the sale of other products in Bountiful. The research helps support the notion many residents may be leaving the city to purchase durable goods, including apparel.A drop in sales in those two categories can affect the sales tax revenue that supports city services. While Wasatch Front gross taxable retail sales grew in 1988, they remained flat in Bountiful, statistics show.
Still, Bountiful may be a greater retail center than many believe. Of the 10 communities with the highest adjusted gross income, Bountiful is the only one without a major mall.
"It is not exactly the quiet little bedroom community that everyone believes. Bountiful is actually a major retail center," Springmeyer said.
He also reported that State Tax Commission statistics show 14 percent of Bountiful households make more than $50,000 a year and 40 percent make more than $25,000.
"One of the things we found was the wealthier you are, the larger the family. A lot of people are land rich and cash poor. In terms of public policy, you need to be careful about taxes. A tax increase will increase burdens on people who don't have a lot of cash," he said.
The statistics were presented to about 60 representatives of business, government, education and the general public who met to discuss the economic future of Bountiful.
The session was held Tuesday morning at Staker School, which now houses the University of Utah extension, and was led by Bonneville Research, for which the City Council paid $25,000 to conduct an economic development study. The study will be used by community leaders to plan growth and as a guide for economic development.
Borrowing a term referring to intense problem solving by architectural students, the residents participated in a "charette" where they discussed the liabilities, strengths and their perception of the city's economic base and who pays for city services.
Group participants concluded that:
-People like Bountiful's quality of well-trained and well-educated people, the sense of security, community spirit, low crime, good education system, small town atmosphere, management of city government, spirit of helping each other and proximity to Salt Lake City.
- People didn't like uncontrolled development in the foothills, a fractured business district, lack of public forums, bickering in city government and California-type development on 500 South.
-They feel the city's liabilities include earthquake dangers, no large tracts of available land for development and, in some cases, its proximity to Salt Lake City.
-The city needs a Utah County-type of development, a more diverse and planned economic base, perhaps more freeway access, creating a Park City-like atmosphere downtown and more development of the 5 Points Mall. It should also capitalize on historical values and businesses that draw people from outside Bountiful.
Representatives will meet again in November.