Financial Statements and Wellness Report - Management Services

CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Net Position
September 30, 2026
ASSETS
Cash and investments $ 25,276,469
Accrued interest 240,500
Prepaid expense 41,640
Accounts receivable 32,923
Total assets 25,591,532
LIABILITIES
Accounts payable 21,690
Accrued payroll 29,443
Compensated absences payable 63,464
Claims incurred but not reported (IBNR) - current 89% 4,300,480
Claims incurred but not reported (IBNR) - non-current 11% 531,520
Due to city 1,624,874
Employee claims payable, due to Blue Cross Blue Shield 4,701,417
Retiree claims payable, due to Blue Cross Blue Shield 1,581,817
COBRA claims payable, due to Blue Cross Blue Shield 24,296
Total liabilities 12,879,001
NET POSITION
Unrestricted 12,712,531
Total net position $ 12,712,531
Note: December 31, 2025 minimum end of year reserve including IBNR and two months costs as
$ 11,252,000
projected by Segal Consulting.

CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Revenues, Expenses and Changes in Net Position
For the Nine Months Ended September 30, 2026
2026 Budget to
2026 Budget Actual
Budget Prorated Actuals Difference
OPERATING REVENUES
Contributions:
Employer self insurance premiums $ 24,006,210 $ 18,004,658 $ 18,523,368 $ 518,710
Employee self insurance premiums 3,492,660 2,619,495 2,618,210 (1,285)
Retiree premiums 2,887,490 2,165,618 2,731,855 566,237
COBRA premiums 27,140 20,355 47,555 27,200
Other:
BCBS wellness programs 25,000 25,000 25,000 -
BCBS wellness coordinator 100,000 100,000 100,000 -
BCBS general and administration 85,000 85,000 85,000 -
Recovery of medical claims 30,000 22,500 55,849 33,349
Pharmaceutical rebates 665,000 498,750 623,528 124,778
Total operating revenues 31,318,500 23,541,376 24,810,365 1,268,989
OPERATING EXPENSES
Personnel support 487,004 374,618 356,862 (17,756)
Audits & financial services 10,125 10,125 9,550 (575)
Operating supplies & equipment 95,027 71,270 15,282 (55,988)
Bank charges 600 450 374 (76)
Contractual services 58,000 43,500 919 (42,581)
Other:
Self-insurance administrative fees 3,337,265 2,502,949 2,699,120 196,171
PCORI fees 12,200 12,200 13,667 1,467
Wellness programs 110,876 83,157 42,889 (40,268)
Health savings & flex spending acct contributions 305,412 305,412 176,420 (128,992)
Claims paid:
Employees 24,307,000 18,230,250 23,107,359 4,877,109
Retirees 5,647,000 4,235,250 5,321,825 1,086,575
COBRA 46,000 34,500 23,363 (11,137)
Total operating expenses 34,416,509 25,903,681 31,767,630 5,863,949
OPERATING INCOME (LOSS) (3,098,009) (2,362,305) (6,957,265) (4,594,960)
NONOPERATING REVENUES (EXPENSES):
Transfers out - Technology Fund (5,530) (5,530) (5,530) -
Transfers in - General Fund - - 7,000,000 7,000,000
Interest income (loss) 945,500 709,125 696,441 (12,684)
Total nonoperating revenues (expenses) 939,970 703,595 7,690,911 6,987,316
Change in net position (2,158,039) (1,658,710) 733,646 2,392,356
NET POSITION:
Total net position, as of January 1, 2026 11,978,885 11,978,885 11,978,885 -
Total net position, as of September 30, 2026 $ 9,820,846 $ 10,320,175 $ 12,712,531 $ 2,392,356

CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Cash Flows
For the Nine Months Ended September 30, 2026
Cash flows from operating activities:
Cash received for premiums and other operating purposes $ 23,947,341
Cash payments for claims (24,536,862)
Cash payments to suppliers for other services (3,217,877)
Cash payments to employees for services (354,357)
Net cash provided by operating activities (4,161,755)
Cash flows from noncapital financing activities:
Cash paid to city for technology replacement (5,530)
Cash received from city 7,000,000
Net cash used for noncapital financing activities 6,994,470
Cash flows from investing activities:
Investment income 696,441
Proceeds from sales of investments 15,841,255
Purchases of investments (19,370,411)
Net cash used for investing activities (2,832,715)
Net increase in cash and cash equivalents -
Cash and cash equivalents, January 1, 2026 -
Cash and cash equivalents, September 30, 2026 $ -
Reconciliation of operating income to cash provided by operating activities:
Operating income $ (6,957,265)
Adjustments to reconcile operating income to net cash provided by
operating activities:
Changes in assets and liabilities:
(Increase)/Decrease in due from (to) city (864,585)
(Increase)Decrease in prepaid expenses (41,640)
(Increase)Decrease in accounts receivable 1,561
Increase/(Decrease) in claims payable 3,957,325
Increase/(Decrease) in accounts payable (259,656)
Increase/(Decrease) in accrued payroll 2,505
Net cash provided by operating activities $ (4,161,755)
Reconciliation of Cash and Cash Equivalents to the Statement of Net Position:
Cash and cash equivalents $ -
Investments 25,276,469
Cash and investments $ 25,276,469

Chandler Health Care Benefits Trust
Wellness Programs Tracking thru September 2026
Cumulative
Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Total Since
Wellness Detail 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Inception
Revenue
Wellness Funds from BCBS $ 24,031.73 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 399,031.73
YOGA Program Revenues - 2,150.00 2,288.00 2,466.00 2,266.00 1,820.00 1,062.00 2,148.00 - - - - - - - - 14,200.00
Total Wellness Program Reven $ 24,031.73 $ 27,150.00 $ 27,288.00 $ 27,466.00 $ 27,266.00 $ 26,820.00 $ 26,062.00 $ 27,148.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 413,231.73
Operating Expenses
YOGA Program Expenses $ - $ 1,820.00 $ 3,360.00 $ 3,220.00 $ 3,150.00 $ 2,905.00 $ 2,555.00 $ 1,000.00 $ - $ - $ 360.00 $ - $ - $ - $ - $ - $ 18,370.00
Other Professional Services - - - 1,200.00 - 93.62 - - - - - 2,500.00 17,700.00 250.00 - 2,656.58 24,400.20
Promotional/Advertising Service - 7,547.42 22,174.80 24,361.61 10,408.85 8,567.47 15,024.50 10,060.07 17,712.80 9,759.42 10,434.58 16,795.78 9,713.08 8,289.13 7,257.45 15,958.34 194,065.30
Printing Supplies and Charges - 227.89 2,954.17 1,259.37 1,447.85 1,735.20 12.30 3.02 35.22 - - - 379.08 66.24 47.20 171.49 8,339.03
Office Supplies - 350.19 375.02 64.56 795.09 677.75 427.82 535.24 1,163.33 424.57 843.38 648.96 41.55 - 384.67 135.98 6,868.11
Food and Events - 628.00 - - - - 51.58 - - - - - - - 351.31 1,938.82 2,969.71
Clothing and Uniforms - 26.16 - 26.75 - - - - - - - - - - - - 52.91
Machinery/Equipment Under 5K - - - - - - - - - - - - - - - 2,244.27 2,244.27
Other Supplies - - - - - - - - - - - 489.80 440.88 - 67.40 - 998.08
Software - - - - - - - - - - - - - - - 1,375.00 1,375.00
Office Furniture and Equipment - - - - - 1,000.00 - - - - 1,121.00 3,200.73 1,476.34 7,534.63 - 11,997.00 26,329.70
Employee Activities/Recognition - - 481.63 - - - - - - - - - - - 6,135.58 1,084.12 7,701.33
Buildings Repair and Maintenan - - - - - - - - - - - - - - - 1,895.00 1,895.00
Postage and Freight - - 27.12 - - - 288.50 942.96 1,327.36 - - - - - - - 2,585.94
Travel/Lodging/Meals - 365.00 352.00 310.00 - - 395.00 365.00 - - - 574.22 450.00 - - 1,220.24 4,031.46
Subscriptions and Memberships - - (600.00) - 120.00 79.00 439.10 625.50 895.50 460.00 419.00 - - 150.00 375.00 155.23 3,118.33
Education and Training 2,648.92 - - - - - - - - - - - - 1,277.51 3,587.22 1,716.89 9,230.54
Other Expenses - - - - - - 625.50 - 200.00 - 70.00 70.00 77.85 - - 338.79 1,382.14
Total Operating Wellness Prog $ 2,648.92 $ 10,964.66 $ 29,124.74 $ 30,442.29 $ 15,921.79 $ 15,058.04 $ 19,819.30 $ 13,531.79 $ 21,334.21 $ 10,643.99 $ 13,247.96 $ 24,279.49 $ 30,278.78 $ 17,567.51 $ 18,205.83 $ 42,887.75 $ 315,957.05
Capital Expenses
Mezzanine (6BF670) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 18,460.56 $ 27,125.62 $ - $ 45,586.18
Total Capital Wellness Program $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 18,460.56 $ 27,125.62 $ - $ 45,586.18
Total Wellness Program Expen $ 2,648.92 $ 10,964.66 $ 29,124.74 $ 30,442.29 $ 15,921.79 $ 15,058.04 $ 19,819.30 $ 13,531.79 $ 21,334.21 $ 10,643.99 $ 13,247.96 $ 24,279.49 $ 30,278.78 $ 36,028.07 $ 45,331.45 $ 42,887.75 $ 361,543.23
Net Wellness Funds Remaining $ 51,688.50