In his annual "State of the City" address Thursday, Mayor James W. Davis said South Salt Lake is moving in a positive direction, noting significant improvements in both commerical and residential growth.

"In residential permits we did 155 rehabilitations and 16 new single-family homes, which increased the valuation of the city by $1,345,904," Davis said. "And we did $7,410,000 of new commercial buildings, adding to the valuation of the city by $1,364,000 in rehabilitation last year."Davis said major infrastructural improvements are under way, including upgraded fire protection and greater economic efficiency in the city water system. He said the staff has put the water system in the black for the first time in several years.

South Salt Lake is in the process of abandoning its sewer plant, and all sewer flows are being directed to the new Central Valley Waste Water Treatment Plant.

"The projected 1988 financial figures show that we will save $128,000 the first year over the cost of operation of our existing plant," Davis said. "We are watching the sewer plant issue closely and are working very hard to avoid rate increases in that fund."

The street department has completed major resurfacing of city streets while keeping pace with many new signs, storm drain cleaning and street sweeping activities. The curb and gutter replacement program removed and replaced 4,000 feet of sidewalk, curb and gutter.

Davis said the police department participated in nearly 200 narcotics investigations and successfully responded to 810 animal calls. The detective division cleared 71 percent of its total offense cases, and the traffic division issued citations for 12,119 violations.

Firefighters responded to 16,066 calls and participated in 132 actual fires and were called on 1,205 medical assists, he said. The city sustained an estimated $131,275 in fire losses.

"We lost two lives to fire, and there were four fire-related injuries," Davis said.

In the administration, the city added a professional Personnel Department.

"We have been able to keep our employees with no layoffs and also have been able to keep pace with the cost-of-living adjustment," Davis said.