January 1998

Volume 2 * Issue 1

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WELCOME to POCATELLO’S ELECTRONIC NEWSLETTER

Also Known as EVERYTHING POCATELLO!

This FREE newsletter is provided to you by

Michael James Johnston, the editor.

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OUR CONTRIBUTORS:

Economic Summary (Investments, Stocks & Bonds)- Lynn Baldwin

Weather History- Steve Cannon

Real Estate- Jim Johnston

Public Schools (School District #25)- Chris Williams

Economy and Finance- Larry R. Bell

Property Ownership- Joe Campbell

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This month's LINKS:

This month's POCATELLO LINKS:

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PUBLIC SCHOOLS

by Chris Williams, Public Information Officer

School District #25

Phone: (208)235-3257

At least 30,000 canned goods. More than 1,400 coats and blankets.

Thousand of dollars worth of gifts for the Secret Santa program. Hundreds of toys for the Toys for Tots effort.

Such statistics reflect just some of the efforts undertaken by students and teachers in School District No. 25 as they turned their attention this holiday season to needy individuals and families in Southeast Idaho.

As a matter of fact, it may feel a bit odd if the true spirit of giving wasn’t felt within the District each November and December.

"I'm amazed every year by the number of things I hear about that our teachers, our students and our administrative staff are doing to try to help people," said Superintendent Dr. David Peck. "There are more things that go on than are made public too.

"There’s just example after example after example of people who do that kind of thing," he said. "It’s kind of a tradition almost, within the school district, to see those things happen. And I think that’s great."

The spirit of giving was evident at every school this year, and especially at Highland High School as teachers Pamela Peck and Ryan Fleischmann encouraged their students to donate food and clothing to the less fortunate.

Anyone visiting the pair’s classrooms the morning of Dec. 12 would have been overwhelmed at the efforts of the students — stacks upon stacks upon stacks of all sorts of canned goods and other non-perishable food stuffs. And all were being loaded onto trucks headed for the Salvation Army.

The idea to have a canned food drive was nothing new. Pamela’s first was six years ago at Irving Junior High. But instead of a typical food drive, she decided to throw in a little competition between teachers, since students always seemed to have more fun reaching for a goal than filling a generic "please-bring-food-to-school" request.

Now at Highland, Pamela continues to mix a little competition in with the food drive, and pits herself against a lifelong competitor; her brother and fellow teacher, Ryan.

"She came in in the middle of a lecture (last year) and challenged me to a contest," Ryan said. "And we’ve always been competitive so I accepted the challenge and it was a good contest.

"In fact, we both got 5,000-plus cans last year and at the final buzzer, it came down to a difference of 30 cans between the two of us," he said.

This year, the efforts of Pamela and Ryan — along with their students —generated 17,592 canned goods.

"The canned food is one project," Pamela said. "I’ve had students bring in more than 1,400 coats and blankets. I got dry cleaners to donate their services, and we are donating all the blankets and coats to Aid For

Friends — a student-generated idea for a class project. They’ve raised $643 to feed five families at Thanksgiving time, and that’s just kids in my room.

"So there are students out there who want to do things if given an opportunity to do that and are shown a way to do that," she said.

Pamela acknowledges the friendly sister-brother competition helps.

"(It) sparked a little more interest for the students," she said,

"but we spend a lot of time focusing on the purpose of it, and what their goal is. And their goal is to give food to others. So the competition really becomes secondary to walking into a room and seeing this.

"When students come in and start seeing the pile grow from 200 cans to 400 to 1,000 to 2,000, its incredible, because they start to think, ‘Hey,

I can get cans here.’"

While the students put forth a huge effort to find people who would open their hearts and contribute, area businesses also went the extra mile to donate.

"In fact, we’ve had several businesses that have given twice to

Highland High School," Ryan said. "They donated to my students and

(Pamela’s) students, and a lot of the small locally-owned businesses seemed to be the biggest givers."

One aspect not lost on either teacher, however, is how they must fit the exercise into their curriculum. Such a fit, Pamela explained, is not hard to do.

"One of the (school district’s) learning goals says to learn to use resources and be resourceful," Pamela said. "Students who didn’t feel they could personally contribute took time and they solicited businesses in the community. We probably have 100 different businesses that donated this year between the two classrooms — all done by students who took the time to call the people, take a letter of verification out and bring it back. So I think it gives them a goal of knowing their community, how to work within the community and to get things to help others.

"Another learning goal the district has is that the learner will develop caring, sharing, empathy and understanding," she said. "I think they’ve done that. We spent some time talking about that; that a lot of us are very fortunate and we have a lot, and to help others that may not have much. And so this is what we came up with."

Dr. Peck also commented, "I’ve wondered what it is that motivates people to do these kind of things. As I’ve pondered it, it seems people who are in education, who work in this field, are people who care about others. So when they find out that somebody needs something, they are some of the first people who are right there to see if they can assist."

So who won the brother-sister contest? Ryan did, by 60 cans.

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REAL ESTATE

by W. James "Jim" Johnston, Associate Broker, GRI, CRS, CRB, ABR

Coldwell Banker Landmark

Phone: (208)232-9010

Here are some statistics that you might find interesting about single family homes in the Pocatello area as of December 26, 1997:

Currently there are 334 "active" single family homes on the market.

Within the past two weeks:

Average sales price for single family homes: $78,000

Average days a home is on the market: 124

The percentage of list price to sales price: 95.9%

Total sold volume: $1,248,000

Within the past month:

Average sales price for single family homes: $91,718

Average days a home is on the market: 113

The percentage of list price to sales price: 96.9%

Total sold volume: $16,692,747

Within the past year:

Average sales price for single family homes: $91,684

Average days a home is on the market: 103

The percentage of list price to sales price: 97.5%

Total sold volume: $78,756,242

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WEATHER & CLIMATE SUMMARY

by Steve Cannon, weatherman

KIDK TV 3

Phone: (208)522-5100

The new year starts out as the coldest month of the year. January's temperatures show us that winter is here! The monthly average temperature is a chilly 23.8 degrees, coming from an average high temperature of 32.4, and a daily average low temperature of 15.1. January marks one of the wettest months as well, with an average monthly precipitation total of 1.13''.

With all the cold weather, January is also noted as the month when warmer than normal temperatures make a bid for fame and fortune. The 'January Thaw' is legendary in Idaho. The record high temperature for January gives validity to the 'January Thaw' theory, with a warm 57, recorded on January 3^rd, 1918. On the other hand, January can be bone-chilling; evident by the record low temperature for the month: -31 on January 25^th, 1949. The most January moisture was recorded in 1911, with 4.28'' logged. The heaviest snowfall for the month was recorded in 1950, with a total of 28.1''. In one 24 hour period in 1950, 10.1'' of snow was recorded. Unfortunately, there is no record of the day in 1950 when all that snow fell.

Despite the cold weather, we're actually making progress toward spring; or at least getting more daylight to enjoy the winter! Sunrise times start out at 8:02 am on January 1^st, but extend to 7:47 am on the 31^st. While that time might not sound like a big deal, sunset times extend from a 5:07 pm sunset on the 1^st to a 5:42 pm sunset on the 31^st!

Notables who claim birth dates in January include Benjamin Franklin, born on January 17^th, 1706; Confederate general 'Stonewall' Jackson, born on January 21^st, 1824; President Franklin D. Roosevelt was born on January 30^th, 1882; and 'The King' of rock and roll, Elvis Presley, born on January 8^th, 1935!

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ECONOMIC SUMMARY- STOCKS & BONDS- INVESTMENTS

By Lynn Baldwin

Manager & Regional Trust Officer

U.S. Bank of Idaho

120 N. Arthur * Pocatello, Idaho 83204

Phone: (208) 234-5544

The currency and banking crisis facing many emerging economies continues to have a global impact on financial markets. While the problems faced by these foreign economies are considered threatening to the US, at this point our economy has shown few signs of distress. Economic releases continue to point toward continued expansion in the US with contained inflation. However, some companies with significant business overseas have already reported disappointing earnings results tied to the "Asian Flu". The ripple effects of this crisis will affect the US financial markets for some time to come.

Domestic employment remains strong. Average hourly earnings have increased by 4.1% year-over-year, which is significantly higher than the rate of inflation. A portion of this increase in hourly wages is a result of the increase in the minimum wage, which was implemented in September.

In spite of wage pressures, there are few signs of inflation. Analysts expect the recent problems in Southeast Asia to have a dampening effect on future global economic growth. The Federal Reserve will likely leave short term interest rates unchanged at their next meeting.

Analysts are closely monitoring the Christmas selling season. Although consumers have increased their debt levels, they have more buying power as personal income continues to increase, and all measures of consumer confidence are at high levels. However, it appears that the consumer is fairly selective and looking for bargains. Due to the US dollar’s high value vs. the Asian currencies, as well as these nations’ need to ramp up their exports, more goods will be imported into the US at lower price levels. Consumers may be even more price conscious, as they see the lower prices available on imported goods.

It will take some time before we can determine how effective the International Monetary Fund (IMF) bailout will be. The IMF is providing billions of dollars to South Korea, but the key question will be what an austerity program (as a result of this IMF bailout) will mean to the average worker in South Korea and how they will accept the burden. Such austerity measures could cause social unrest and present political problems in the upcoming election in South Korea.

The signs of wage pressure were ignored by the fixed income markets because most bond buyers have convinced themselves that this will be offset by the general disinflationary trends that are occurring worldwide due to the Asian crisis. Disinflation occurs when price levels rise more slowly than they previously did. We have seen some evidence that inflation has been tempered as gold and oil prices have declined since the first of this year. In fact, gold at $283 an ounce is at a 12 year low. The low rate of inflation has helped keep interest rates at low levels, in spite of the evidence that our economy generally remains quite healthy. Long term treasuries have increased in price and dropped slightly below a 6% yield (the lowest level since January of 1996), and the yield curve remains quite flat.

We continue to experience quite a bit of volatility in the stock market. Going back in history there have been only a couple of times when the market moved more than 7% in any one month period. Between July 1 and October 7 the Standard & Poor’s 500 Stock Index (S&P) rose by 7.7% one month, declined by 6.3%the next, and then rose by 9.3%. Then between October 7 and October 27 the S&P declined by 10.8% which represents the worst compressed return in the last 10 years. The period from October 27 through December 9 saw the S&P appreciate by 11.2% which was the single best one month return in the last 10 years. We expect the volatility to continue.

Our cash reserves have risen to 11.5% in our equity fund as a result of our cautious outlook. The rotation of groups continues as various sectors exchange the lead week after week as the market continues to adjust valuation levels along with changes in earnings forecasts.

We had expected the small and mid-cap stocks to improve because they are domestically focused and, therefore, insulated from most of the turmoil in Southeast Asia. However, both mid and small cap companies tend to be more sensitive to the perception of a slowing economy. When problems such as the Asian crisis threaten economic growth, and thus corporate earnings, investors tend to find more confidence in the larger, more familiar growth companies, which tend to be the multi-nationals. Some of the increase in growth company valuations may be temporary, and we believe that the mid cap and smaller companies will eventually provide the better returns going forward.

We at First Asset Management and US Bancorp wish you all happy holidays and a prosperous new year.

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THE ECONOMY & FINANCE UPDATE

by Larry Bell with Citizens Community Bank

Real Estate Production Center

Email:

Site Address:

(208)232-5373

RATES CONTINUE TO GO LOWER

Both long-term treasury rates and mortgage rates are at the lowest levels they have been for the last three years. You must note these comments are as of December 23, 1997. A lot can happen to change rates and their direction between this date and the date you read these comments. The current 30-year fixed mortgage rate is 7.125% and the fifteen-year rates are 6.75%. These rates have been steady to declining over the last month. They are approaching the lowest levels since early in this decade. The lowest mortgage rates got earlier in this decade were 6.875% for a thirty-year rate and 6.50% on a fifteen-year loan. All the rates quoted are par rates, there are no discounts paid to obtain a lower rate.

These rates have several implications to homeowners and potential buyers. Homeowners may want to consider refinancing to obtain a lower rate or obtain cash for any worth while purpose. Many homeowners are refinancing at these low rates to payoff their first mortgage and a home equity line that is at a higher rate. Many homeowners have not refinanced debt at higher rates for many reasons however now is the time to act.

Early in the year is a good time to buy a new house. The selection is usually as good as any time of the year and if you have a house to sell the first part of the year is a good time to market your house as there is a great deal of activity. Many first time homebuyers use their tax return as a portion of their down payment.

One may ask will these rates go lower? Nobody can accurately this question but there are several factors that could cause rates to increase. One factor is the growth rate of the national economy. Should the economy grow too fast the Federal Reserve will increase rates. Many think the economy is approaching the growth rate that may cause the Federal Reserve to increase rates to combat inflation. The other factor is the influx of money from the Asian financial markets. This could slow down or start to flow out of the United States and this could cause our long term rates to increase slightly or at least stop their downward trend.

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PROPERTY OWNERSHIP

by Joe Campbell

Vice-President of Pioneer Title of Bannock County

Site Address:

Title insurance is a contract to protect an owner against losses arising through defects in the title to real estate owned. If the title is insurable, the company guarantees the owner against loss due to any defect in title or expense in legal defense of the title pursuant to the terms of the policy.

When a person buys a car or consumer goods, the seldom need to know whether the former owner is married, single or divorced; whether they have paid their taxes or are involved in a lawsuit. But when a person buys a home it is necessary to have all that information and much more. For, while he or she may own the property, others may also have rights in the same real estate.

There are many possible causes of title defects that no examination can disclose. That is because they never have been recorded and thus do not appear in the abstract. A title insurance policy protects the owner against all these hidden risks; those listed below and many more:

Fraud. False claims of ownership, forged deeds, wills, signatures, conveyances, instruments, false representations, false record of all sorts, illegal acts of trustees, guardians, administrations, and attorneys.

Human error. Errors in copying, indexing, recording; errors by administrators, executors, trustees, guardians and attorney; destruction of records.

Improper deeds and wills. Deeds by persons of unsound mind, minors; deeds delivered after death or without the grantor’s consent; invalid, suppressed erroneous wills, missing heirs, unsettled estates.

Liens and other rights. Liens for unpaid estate, inheritance, income, property and gift taxes; homestead rights, community property rights; irregular court proceedings, court opinion reversals, lack of court jurisdiction; defective foreclosures.

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Copyrighted 1998 by Mykro Computer Company. All Rights Reserved. No part of this material may be used or reproduced in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher except in the case of brief quotations embodied in critical articles and / or review.