Pilot program offers incentives to new teachers

Oconomowoc Area Schools - Santa Claus may be coming to town, but a new initiative between the School District and the business community could culminate in some substantial presents for district staff.

In an effort to recruit and retain new teachers amidst the continuing struggle with state-imposed revenue caps, board members sought a creative approach to offer incentives to live and work in the district. Seven local businesses have agreed to offer discounts and other incentives to teachers and other district employees.

"This initiative is focused on those teachers starting their career in the Oconomowoc School District, which means they are on the lower end of the salary schedule. Knowing the difficulty staff may have in balancing housing costs and school debt with starting salaries was the catalyst for this idea," explained Board President Don Wiemer.

Board member Mike Bicker said that when approached, some businesses wanted to expand their incentives to include all district employees.

Local businesses were approached to gauge interest in offering discounts or special incentives to this target group in a pilot program.

"Businesses that were initially contacted were the largest of their type, the most convenient, offered the most diverse selection of services or were the only business of their type in town," Wiemer explained.

Seven local businesses will participate in the pilot program.

The First Bank Financial Centre has agreed to offer a discount on home mortgages on homes purchased within the Oconomowoc Area School District geographic area.

Appraisals by Stonewood LLC will offer a two-thirds reduction in the standard appraisal fees used in conjunction with a new home purchase.

Ewald Automotive Group will provide dealer invoice pricing on new automobiles on all its product lines. This offer will be available to all employees of the School District. It will also offer a 20-percent discount on all parts and services to the target group.

Brookstone Homes will provide $3,000 in additional upgrades on purchases of new homes by the target group.

Oconomowoc Realty will provide a 10-percent rent discounts on available apartments for new teachers.

Radtke Appliance will provide contractor pricing on appliances for the target group.

One Hour Martinizing will offer a discount on dry-cleaning and laundry services to all employees of the district.

Wiemer said the idea of the program was to entice new teachers to make the Oconomowoc School District home.

"Maybe it's $50 to $100 we can shave off that mortgage payment. That may make the difference if they live here or in Waukesha or Watertown," the board president said.

Bickler agreed.

"That's huge when you're just starting out," he said.

Still to be determined is the ceiling the bank will put in place for two-income families.

"There are some loose ends that need to be worked out," Wiemer said.

Board member Donna Scholl asked how the program would affect collective bargaining.

"The way this is structured is outside of the current compensation negotiations?" she asked.

"Correct. This would have nothing to do with the teacher's contract," Wiemer answered.

"We're hoping more businesses will step up to the plate. We have a 530-employee base here and that's a heck of a customer base. If we can put some stuff together that will save our district employees money, then it's the right thing to do," Wiemer said.

"This is thinking outside the box. I think it's neat. I think it's novel. We've got a 530 employees in the district and that's good buying power," he added.

Superintendent Pat Neudecker said she welcomed this partnership with local business and is unaware of any other district with a similar arrangement.

"It shows great community support for our staff," she said.

Wiemer said local by businesses were enthusiastic about the program.

"Everybody thought it was a great thing to do. There was no hesitation by the businesses we approached," he said.

The board and the superintendent will work to develop operational guidelines for the program.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.