Financial Statements and Wellness Report - Management Services

City of Chandler — Regular Meeting (2025-02-26)

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ASSETS
Cash and investments
21,204,980
$       
Accrued interest
205,155
               
Due from city - premiums
3,396,068
            
Accounts Receivable
132,244
               
     Total assets
24,938,447
         
LIABILITIES
Accounts payable
13,989
                 
Accrued payroll
21,473
                 
Compensated absences payable
56,944
Claims incurred but not reported (IBNR) Current 90%
3,603,600
            
Claims incurred but not reported (IBNR) Non-current 10%
400,400
               
Employee claims payable, due to Blue Cross Blue Shield
1,868,533
            
Retiree claims payable, due to Blue Cross Blue Shield
314,318
               
COBRA claims payable, due to Blue Cross Blue Shield
17,747
                 
     Total liabilities
6,297,004
            
NET POSITION
Unrestricted 
18,641,443
         
     Total net position
18,641,443
$       
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
December 31, 2024 (Unaudited)

2024
Budget
Actuals
Budget to 
Actual 
Difference
OPERATING REVENUES
  Contributions:
      Employer self insurance premiums
20,867,290
$     
21,346,698
$        
479,408
$            
      Employee self insurance premiums
3,117,240
         
3,183,742
            
66,502
                
      Retiree premiums
2,661,500
         
2,671,111
            
9,611
                  
      COBRA premiums
46,460
               
22,994
                 
(23,466)
               
  Other:
      BCBS wellness programs
25,000
               
25,000
                 
-
                      
      BCBS wellness coordinator
125,000
             
125,000
               
-
                      
      BCBS administration
25,000
               
25,000
                 
-
                      
      BCBS communication
30,000
               
30,000
                 
-
                      
      Recovery of medical claims
30,000
               
23,940
                 
(6,060)
                 
      Pharmaceutical rebates
-
                     
319,040
               
319,040
              
          Total operating revenues
26,927,490
       
27,772,525
          
845,035
              
OPERATING EXPENSES
  Personnel support 
457,115
             
459,435
               
2,320
                  
  Audits & financial services
10,125
               
9,000
                   
(1,125)
                 
  Promotional 
30,000
               
-
                       
(30,000)
               
  Operating supplies & equipment
120,027
             
22,024
                 
(98,003)
               
  Bank charges
400
                    
507
                      
107
                     
  Contractual services
188,000
             
12,188
                 
(175,812)
             
  Other:
      Self-insurance administrative fees
3,187,621
         
3,642,442
            
454,821
              
      PCORI fees
11,000
               
11,086
                 
86
                       
      Wellness programs
125,936
             
17,568
                 
(108,368)
             
      Health savings & flex spending acct contributions
279,672
             
209,650
               
(70,022)
               
  Claims paid:
      Employees
19,319,000
       
21,669,677
          
2,350,677
           
      Retirees
4,872,000
         
4,212,260
            
(659,740)
             
      COBRA
309,000
             
94,856
                 
(214,144)
             
          Total operating expenses
28,909,896
       
30,360,693
          
1,450,797
           
OPERATING INCOME (LOSS)
(1,982,406)
        
(2,588,168)
           
(605,762)
             
NONOPERATING REVENUES (EXPENSES):
  Transfers Out - Technology Fund
(5,530)
                
(5,530)
                  
-
                      
  Transfers In - General Fund
5,000,000
         
5,000,000
            
-
                      
  Interest income (loss)
407,450
             
919,990
               
512,540
              
          Total nonoperating revenues (expenses)
5,401,920
         
5,914,460
            
512,540
              
         Change in net position
3,419,514
         
3,326,292
            
(93,222)
               
NET POSITION:
Total net position, as of January 1, 2024
15,315,151
15,315,151
-
                      
Total net position, as of December 31, 2024
18,734,665
$     
18,641,443
$        
(93,222)
$             
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Revenues, Expenses and Changes in Net Position
 For the Year Ended December 31, 2024 (Unaudited)

Cash flows from operating activities:
Cash received for premiums and other operating purposes
27,425,821
$          
Cash payments for claims
(25,717,513)
            
Cash payments to suppliers for other services
(3,914,369)
              
Cash payments to employees for services
(444,988)
                 
Net cash provided by operating activities
(2,651,049)
              
Cash flows from noncapital financing activities:
Cash paid to city for technology replacement
(5,530)
                      
Cash received from city 
5,000,000
               
Net cash used for noncapital financing activities 
4,994,470
               
Cash flows from investing activities:
Investment income
919,990
                  
Proceeds from sales of investments
5,017,726
               
Purchases of investments
(8,281,137)
              
Net cash used for investing activities 
(2,343,421)
              
Net increase in cash and cash equivalents
-
                           
Cash and cash equivalents, January 1, 2024
-
                           
Cash and cash equivalents, December 31, 2024
-
$                         
Reconciliation of operating income to cash provided by operating activities:
Operating income
(2,588,168)
$            
Adjustments to reconcile operating income to net cash provided by
operating activities:
Changes in assets and liabilities:
(Increase)/Decrease in due from (to) city
(320,451)
                 
(Increase)Decrease in accounts receivable
(26,253)
                   
Increase/(Decrease) in claims payable
259,280
                  
Increase/(Decrease) in accounts payable
10,096
                    
Increase/(Decrease) in accrued payroll
5,644
                       
Increase/(Decrease) in compensated absences payable
8,803
                       
Net cash provided by operating activities
(2,651,049)
$            
Reconciliation of Cash and Cash Equivalents to the Statement of Net Position:
Cash and cash equivalents
-
$                         
Investments
21,204,980
             
Cash and investments
21,204,980
$          
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Cash Flows
 For the Year Ended December 31, 2024 (Unaudited)

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 - Dec
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
      
8,289.13
      
170,849.51
  
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
      
7,534.63
      
14,332.70
    
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
      
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
-
                
1,277.51
      
3,926.43
      
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
    
17,567.51
    
254,863.47
  
Net Wellness Funds Remaining
108,368.26
  
Chandler Health Care Benefits Trust
Wellness Programs Tracking thru December 31, 2024