Financial Statements and Wellness Report

City of Chandler — Regular Meeting (2024-08-14)

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ASSETS
Cash and investments
21,561,550
$       
Accrued interest
199,010
               
     Total assets
21,760,560
         
LIABILITIES
Compensated absences payable
48,141
Claims incurred but not reported (IBNR) Current 90%
3,603,600
            
Claims incurred but not reported (IBNR) Non-current 10%
400,400
               
Premiums paid in advance
10,340
                 
Due to city
753,822
               
Employees claims payable, due to Blue Cross Blue Shield
2,211,176
            
Retirees claims payable, due to Blue Cross Blue Shield
402,592
               
COBRA claims payable, due to Blue Cross Blue Shield
8,486
                   
     Total liabilities
7,438,557
            
NET POSITION
Unrestricted 
14,322,003
         
     Total net position
14,322,003
$       
Note:  December 31, 2023 minimum end of year reserve including IBNR and two months costs as 
projected by Segal Consulting. 
 $        9,431,000 
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Net Position
June 30, 2024

2024
Budget
2024
Budget 
Prorated
Actuals
Budget to 
Actual 
Difference
OPERATING REVENUES
  Contributions:
      Employer self insurance premiums
20,867,290
$     
10,433,645
       
10,645,070
$       
211,425
$           
      Employee self insurance premiums
3,117,240
         
1,558,620
         
1,591,646
            
33,026
                
      Retiree premiums
2,661,500
         
1,330,750
         
1,321,780
            
(8,970)
                 
      COBRA premiums
46,460
              
23,230
              
10,567
                 
(12,663)
               
  Other:
      BCBS wellness programs
25,000
              
25,000
              
25,000
                 
-
                      
      BCBS wellness coordinator
125,000
            
125,000
            
125,000
               
-
                      
      BCBS administration
25,000
              
25,000
              
25,000
                 
-
                      
      BCBS communication
30,000
              
30,000
              
30,000
                 
-
                      
      Recovery of medical claims
30,000
              
15,000
              
15,236
                 
236
                     
          Total operating revenues
26,927,490
       
13,566,245
       
13,789,298
         
223,053
             
OPERATING EXPENSES
  Personnel support 
457,115
            
228,558
            
199,912
               
(28,645)
               
  Audits & financial services
10,125
              
-
                     
-
                       
-
                      
  Promotional 
30,000
              
15,000
              
(2,122)
                  
(17,122)
               
  Operating supplies & equipment
120,027
            
60,014
              
2,848
                   
(57,166)
               
  Bank charges
400
                    
200
                    
250
                      
50
                       
  Contractual services
188,000
            
94,000
              
-
                       
(94,000)
               
  Other:
      Self-insurance administrative fees
3,187,621
         
1,593,811
         
1,920,880
            
327,069
             
      PCORI fees
11,000
              
11,000
              
11,086
                 
86
                       
      Wellness programs
125,936
            
62,968
              
10,143
                 
(52,825)
               
      Health savings & flex spending acct contributions
279,672
            
279,672
            
209,650
               
(70,022)
               
  Claims paid:
      Employees
19,319,000
       
9,659,500
         
10,728,707
         
1,069,207
          
      Retirees
4,872,000
         
2,436,000
         
2,165,927
            
(270,073)
            
      COBRA
309,000
            
154,500
            
51,756
                 
(102,744)
            
          Total operating expenses
28,909,896
       
14,595,222
       
15,299,037
         
703,816
             
OPERATING INCOME (LOSS)
(1,982,406)
        
(1,028,977)
        
(1,509,740)
          
(480,763)
            
NONOPERATING REVENUES (EXPENSES):
  Transfers Out - Technology Fund
(5,530)
               
-
                     
-
                       
-
                      
  Transfers In - General Fund
5,000,000
         
-
                     
-
                       
-
                      
  Interest income (loss)
407,450
            
203,725
            
516,592
               
312,867
             
          Total nonoperating revenues (expenses)
5,401,920
         
203,725
            
516,592
               
312,867
             
         Change in net position
3,419,514
         
(825,252)
           
(993,148)
              
(167,897)
            
NET POSITION:
Total net position, as of January 1, 2024
15,315,151
15,315,151
15,315,151
-
                      
Total net position, as of June 30, 2024
18,734,665
$     
14,489,900
$     
14,322,003
$       
(167,897)
$          
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Revenues, Expenses and Changes in Net Position
 For the Six Months Ended June 30, 2024

Cash flows from operating activities:
Cash received for premiums and other operating purposes
17,735,068
$          
Cash payments for claims
(12,265,455)
            
Cash payments to suppliers for other services
(2,156,627)
              
Cash payments to employees for services
(215,741)
                 
Net cash provided by operating activities
3,097,245
               
Cash flows from investing activities:
Investment income
647,419
                  
Proceeds from sales of investments
3,626,531
               
Purchases of investments
(7,371,195)
              
Net cash used for investing activities 
(3,097,245)
              
Net increase in cash and cash equivalents
-
                          
Cash and cash equivalents, January 1, 2024
-
                          
Cash and cash equivalents, June 30, 2024
-
$                        
Reconciliation of operating income to cash provided by operating activities:
Operating income
(1,509,740)
$            
Adjustments to reconcile operating income to net cash provided by
operating activities:
Changes in assets and liabilities:
(Increase)/Decrease in due from (to) city
3,829,439
               
(Increase)Decrease in Accounts receivable
105,991
                  
Increase/(Decrease) in premiums paid in advance
10,340
                    
Increase/(Decrease) in claims payable
680,936
                  
Increase/(Decrease) in accounts payable
(3,893)
                     
Increase/(Decrease) in accrued payroll
(15,829)
                   
Net cash provided by operating activities
3,097,245
$             
Reconciliation of Cash and Cash Equivalents to the Statement of Net Position:
Cash and cash equivalents
-
$                        
Investments
21,561,550
             
Cash and investments
21,561,550
$          
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Cash Flows
 For the Six Months Ended June 30, 2024

Wellness Detail
Jan - Dec
2011
Jan - Dec
2012
Jan - Dec
2013
Jan - Dec
2014
Jan - Dec
2015
Jan - Dec
2016
Jan - Dec
2017
Jan - Dec
2018
Jan - Dec
2019
Jan - Dec
2020
Jan - Dec
2021
Jan - Dec
2022
Jan - Dec
2023
Jan - Jun
2024
Cumulative 
Total Since 
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
    
349,031.73
  
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 Revenue
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
    
363,231.73
 
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
          
21,743.62
    
Promotional/Advertising Svcs
-
                
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
      
1,600.00
      
164,160.38
  
Supplies (printing, office, etc.)
-
                
227.89
          
2,954.17
      
1,259.37
      
1,447.85
      
1,735.20
      
12.30
            
3.02
              
35.22
            
-
                
-
                
-
                
379.08
          
66.24
            
8,120.34
      
Food & Events
-
                
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
            
-
                
6,347.46
      
Clothing & Uniforms
-
                
628.00
          
-
                
-
                
-
                
-
                
51.58
            
-
                
-
                
-
                
-
                
-
                
-
                
-
                
679.58
          
Other Supplies
-
                
26.16
            
-
                
26.75
            
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
52.91
            
Office Furniture
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
489.80
          
440.88
          
-
                
930.68
          
Employee Activities/Recognition
-
                
-
                
-
                
-
                
-
                
1,000.00
      
-
                
-
                
-
                
-
                
1,121.00
      
3,200.73
      
1,476.34
      
7,249.43
      
14,047.50
    
Postage & Freight
-
                
-
                
481.63
          
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
481.63
          
Travel
-
                
-
                
27.12
            
-
                
-
                
-
                
288.50
          
942.96
          
1,327.36
      
-
                
-
                
-
                
-
                
-
                
2,585.94
      
Subscriptions & Memberships
-
                
365.00
          
352.00
          
310.00
          
-
                
-
                
395.00
          
365.00
          
-
                
-
                
-
                
574.22
          
450.00
          
-
                
2,811.22
      
Education & Training
-
                
-
                
(600.00)
         
-
                
120.00
          
79.00
            
439.10
          
625.50
          
895.50
          
460.00
          
419.00
          
-
                
-
                
150.00
          
2,588.10
      
Other Wellness Expenses
2,648.92
      
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
827.51
          
3,476.43
      
Registrations
-
                
-
                
-
                
-
                
-
                
-
                
625.50
          
-
                
200.00
          
-
                
70.00
            
70.00
            
77.85
            
-
                
1,043.35
      
   Total Wellness Program Expenses
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
    
10,143.18
    
247,439.14
 
Net Wellness Funds Remaining
115,792.59
 
Chandler Health Care Benefits Trust
Wellness Programs Tracking thru June 30, 2024 (updated thru 6/30/24 Preliminary)