Joplin Schools Financing Disaster – There’s No Spreadsheet for This

Make payroll! MAY 23: CHALLENGE #1

Locate temporary spaces for schools and negotiate contracts Construct temporary facilities, fix damaged facilities by August 17 for start of school Supplies & contents for temp facilities: replace EVERYTHING by August 17 Work with FEMA, SEMA, insurance on temp facilities and rebuilding No projections, no budget, no assurance of reimbursement: just spend! MAY 24: THE RECOVERY PROCESS BEGINS

Good decisions early on: – Hired insurance attorney (public adjuster) – Hired disaster experts to help navigate the world of FEMA and SEMA – Big-picture planning – took the time to think about what was possible rather than what seemed impossible – seized opportunities THE RECOVERY PROCESS…

Transition of damaged or destroyed facilities to temporary facilities

Temporary Facility Rental Costs Serves 3,000 students JHS 11/12 – 36 month (Mall)$ 3,402,990 EMS – 30 month (Warehouse)$ 1,080,000 JHS 9/10 – 36 month (City Auditorium)$ 1,200,000 FTC – 36 month (Warehouse)$ 1,260,000 Buses $ 258,336 Athletics$ 70,000 Temporary Build-outs$14,900,000 Temporary Furnishings & Equipment$ 7,500,000 Supplies for Temporary Facilities$ 820,000 TOTAL:$30,491,326 15% Local match for FEMA projects$ 4,573,700 *August 2011: $1.5m received from the Governor's office. SHORT-TERM RECOVERY – TEMPORARY FACILITIES

Cost Saving Solutions Two Elementary Schools moved to vacant buildings already owned by Joplin Schools. Grades 9/10 returned to a former High School site and non-K-12 programs were moved from that site. This created a domino effect, adding 15% local match costs, and allowed a continuation of displaced programs: Early Childhood and Beacon School. SHORT-TERM RECOVERY – TEMPORARY FACILITIES

Rebuilding / construction / 21 st Century Learning design – Two elementary schools – Middle school – High school – Technical school Used pre-storm facilities plan as foundation but reworked for new realities – known and unknown LONG-TERM RECOVERY – PERMANENT FACILITIES

PROPERTY LETTER

PROPERTY COMPARISON Old JHS/FTC38.05 acres New JHS/FTC66 acres 73% increase JOPLIN HIGH SCHOOL / FRANKLIN TECH

PROPERTY COMPARISON Old Irving2.1 acres New Irving13.6 acres 648% increase IRVING ELEMENTARY

PROPERTY COMPARISON Old East20 acres New East34.9 acres 75% increase EAST ELEMENTARY / MIDDLE SCHOOL

When making tough or unpopular decisions remember these key things: – Transparency builds trust – Tell your story before the media does – Need full support and faith of board & leadership: speak the same language publicly – Be prepared to use “goodwill” capital – pre-storm relationships and perceptions matter LONGTERM RECOVERY…

$62 million gap between reality and vision for Joplin Schools 11 months after tornado devastated one third of the community, we had to ask for the largest bond issue in city’s history (a history that included many failed bond campaigns…) LONGTERM RECOVERY – VISION MEETS REALITY

$62 million bond request – largest in community’s history Passed with 57.68% - needed 57.14% (4/7 th ’s) Passed by 48 votes LONGTERM RECOVERY…

LESSONS LEARNED Review insurance policy annually – keep current Check “business interruption” insurance – should have $1 - $5 million (district of our size) Be aware of outlying equipment, grounds, lights, playgrounds – are they adequately insured? Codes & standards – keep these in mind when replacing older facilities Blanket coverage – total loss limit per event vs. by building limit

LESSONS LEARNED Keep good records / inventories Back up accounting systems – minimize loss of information that pertains to operations Develop relationships with city leadership – input on city redevelopment Don’t put kids in hallways – check your safety plan

QUESTIONS? Visit joplinschools.org and click the Operation Rising Eagle banner to learn more. Contact: Paul Barr, CPA Chief Financial Officer, Joplin Schools p ext c