Financial Statements - Management Services

CITY OF CHANDLER
Chandler Worker's Compensation and Employer Liability Trust
Statement of Net Position
September 30, 2026
ASSETS
Cash and investments $ 24,375,411
Accrued interest 195,585
Total assets 24,570,996
LIABILITIES
Due to City 806,366
Total liabilities 806,366
NET POSITION
Unrestricted 23,764,630
Total net position (1) $ 23,764,630
Notes:
Nominal
(1) Net Position as compared to Reserve Goal: "Central" Value
Estimated Unpaid Losses & ALAE, as of 6/30/24 $ 11,349,762
Weighted Projected Ultimate Losses & ALAE 3,012
Reserve Goal Based on 6/30/25 Actuarial Report $ 11,352,774

CITY OF CHANDLER
Chandler Workers Compensation and Employer Liability Trust
Statement of Revenues, Expenses and Changes in Net Position
For the Three Months Ended September 30, 2026
FY 2026-27 Budget to
FY 2026-27 Budget Actual
Budget Prorated Actuals Difference
OPERATING REVENUES
Contributions:
Employer self insurance premiums $ 5,038,212 $ 1,259,553 $ 1,324,131 $ 64,578
Recovery of prior year expense - - 81,000 81,000
Total operating revenues 5,038,212 1,259,553 1,405,131 145,578
OPERATING EXPENSES
Personnel services 647,933 161,983 173,808 11,825
Professional services 49,150 12,288 19,353 7,065
Operating supplies and maintenance 9,200 2,300 - (2,300)
Communication and transportation 2,100 525 2,987 2,462
Excess insurance 700,000 700,000 697,104 (2,896)
Premium insurance 70,000 17,500 17,820 320
Other insurance 750,000 750,000 684,579 (65,421)
Claims paid 3,000,000 750,000 441,987 (308,013)
Education and training 2,100 525 - (525)
Total operating expenses 5,230,483 2,395,121 2,037,638 (357,483)
OPERATING INCOME (LOSS) (192,271) (1,135,568) (632,507) 503,061
NONOPERATING REVENUES (EXPENSES):
Interest income (loss) 821,000 205,250 223,923 18,673
Transfers out to technology fund (3,845) (3,845) (3,845) -
Transfers in from Municipal Utilities for safety position 80,459 20,114 20,114 -
Total nonoperating revenues (expenses) 897,614 221,519 240,192 18,673
Change in net position 705,343 (914,049) (392,315) 521,734
NET POSITION:
Total net position, as of July 1, 2026 24,156,945 24,156,945 24,156,945 -
Total net position, as of September 30, 2026 $ 24,862,288 $ 23,242,896 $ 23,764,630 $ 521,734

CITY OF CHANDLER
Chandler Worker's Compensation and Employer Liability Trust
Statement of Cash Flows
For the Three Months Ended September 30, 2026
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for premiums $ 2,564,322
Cash payments for claims (597,883)
Cash payments to suppliers for other services (1,456,077)
Cash payments to employees for services (173,808)
Net cash provided (used) by operating activities 336,554
CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES:
Cash paid to city for technology replacement (3,845)
Net cash provided (used) by capital financing activities (3,845)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash received from the city 20,114
Net cash provided (used) by noncapital financing activities 20,114
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income 292,592
Net increase (decrease) in cash and cash equivalents 645,415
CASH AND CASH EQUIVALENTS:
Beginning of year 23,729,996
As of September 30, 2026 $ 24,375,411
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES:
Operating income (loss) $ (632,507)
(Increase) decrease in due from city 1,159,191
(Increase) decrease in claims payable (155,896)
Increase (decrease) in accounts payable (34,234)
Total adjustments 969,061
Net cash provided (used) by operating activities $ 336,554