Financial Statements and Wellness Report - Management Services

City of Chandler — Regular Meeting (2025-08-13)

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ASSETS
Cash and investments
25,464,005
$       
Accrued interest
252,040
 
Accounts receivable
26,154
 
 Total assets
25,742,199
 
LIABILITIES
Accounts payable
38,261
 
Accrued payroll
21,473
 
Compensated absences payable
56,944
Claims incurred but not reported (IBNR) Current 89%
2,867,580
 
Claims incurred but not reported (IBNR) Non-current 11%
354,420
 
Due to city
1,951,151
 
Employee claims payable, due to Blue Cross Blue Shield
1,609,901
 
Retiree claims payable, due to Blue Cross Blue Shield
301,060
 
COBRA claims payable, due to Blue Cross Blue Shield
19,343
 
 Total liabilities
7,220,133
 
NET POSITION
Unrestricted 
18,522,066
 
 Total net position
18,522,066
$       
Note:  December 31, 2024 minimum end of year reserve including IBNR and two months costs as 
projected by Segal Consulting. 
 $ 
  9,063,000 
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Net Position
June 30, 2025

2025
Budget
2025
Budget 
Prorated
Actuals
Budget to 
Actual 
Difference
OPERATING REVENUES
  Contributions:
      Employer self insurance premiums
22,528,480
$     
11,264,240
$     
11,627,364
$       
363,124
$           
      Employee self insurance premiums
3,357,170
         
1,678,585
         
1,688,551
            
9,966
                  
      Retiree premiums
2,816,610
         
1,408,305
         
1,350,887
            
(57,418)
               
      COBRA premiums
24,250
              
12,125
              
12,165
                 
40
                       
  Other:
      BCBS wellness programs
80,000
              
80,000
              
80,000
                 
-
                      
      BCBS wellness coordinator
100,000
            
100,000
            
100,000
               
-
                      
      BCBS general and administration
25,000
              
-
                    
50,000
                 
50,000
                
      Recovery of medical claims
30,000
              
15,000
              
6,088
                   
(8,912)
                 
      Pharmaceutical rebates
665,000
            
332,500
            
349,635
               
17,135
                
          Total operating revenues
29,626,510
       
14,890,755
       
15,264,690
         
373,935
             
OPERATING EXPENSES
  Personnel support 
470,406
            
235,203
            
229,639
               
(5,564)
                 
  Audits & financial services
10,125
              
10,125
              
9,275
                   
(850)
                    
  Promotional 
30,000
              
15,000
              
-
                       
(15,000)
               
  Operating supplies & equipment
95,027
              
47,514
              
19,628
                 
(27,886)
               
  Bank charges
500
                    
250
                    
400
                      
150
                     
  Contractual services
173,000
            
86,500
              
14,638
                 
(71,862)
               
  Other:
      Self-insurance administrative fees
3,283,833
         
1,641,917
         
1,688,824
            
46,907
                
      PCORI fees
11,000
              
11,000
              
12,173
                 
1,173
                  
      Wellness programs
133,368
            
66,684
              
23,403
                 
(43,281)
               
      Health savings & flex spending acct contributions
280,593
            
280,593
            
195,650
               
(84,943)
               
  Claims paid:
      Employees
21,188,000
       
10,594,000
       
12,165,024
         
1,571,024
          
      Retirees
4,119,000
         
2,059,500
         
2,252,946
            
193,446
             
      COBRA
93,000
              
46,500
              
33,261
                 
(13,239)
               
          Total operating expenses
29,887,852
       
15,094,786
       
16,644,861
         
1,550,075
          
OPERATING INCOME (LOSS)
(261,342)
           
(204,031)
           
(1,380,171)
          
(1,176,140)
         
NONOPERATING REVENUES (EXPENSES):
  Transfers Out - Technology Fund
(5,530)
               
-
                     
-
                       
-
                      
  Interest income (loss)
785,500
            
392,750
            
499,131
               
106,381
             
          Total nonoperating revenues (expenses)
779,970
            
392,750
            
499,131
               
106,381
             
         Change in net position
518,628
            
188,719
            
(881,040)
              
(1,069,759)
         
NET POSITION:
Total net position, as of January 1, 2025
19,403,106
19,403,106
19,403,106
-
                      
Total net position, as of June 30, 2025
19,921,734
$     
19,591,825
$     
18,522,066
$       
(1,069,759)
$       
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, 2025

Cash flows from operating activities:
Cash received for premiums and other operating purposes
17,321,931
$       
Cash payments for claims
(14,721,525)
 
Cash payments to suppliers for other services
(1,939,719)
 
Cash payments to employees for services
(229,639)
 
Net cash provided by operating activities
431,048
 
Cash flows from investing activities:
Investment income
499,131
 
Proceeds from sales of investments
4,378,156
 
Purchases of investments
(5,308,335)
 
Net cash used for investing activities 
(431,048)
 
Net increase in cash and cash equivalents
- 
Cash and cash equivalents, January 1, 2025
- 
Cash and cash equivalents, June 30, 2025
-
$      
    
Reconciliation of operating income to cash provided by operating activities:
Operating income
(1,380,171)
$            
Adjustments to reconcile operating income to net cash provided by
operating activities:
Changes in assets and liabilities:
(Increase)/Decrease in due from (to) city
1,951,151
 
(Increase)Decrease in accounts receivable
106,090
 
Increase/(Decrease) in claims payable
(270,294)
 
Increase/(Decrease) in accounts payable
24,272
 
Net cash provided by operating activities
431,048
$      
   
Reconciliation of Cash and Cash Equivalents to the Statement of Net Position:
Cash and cash equivalents
-
$      
    
Investments
25,464,005
 
Cash and investments
25,464,005
$       
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Cash Flows
 For the Six Months Ended June 30, 2025

Wellness Detail
Jan - Dec
2022
Jan - Dec
2023
Jan - Dec
2024
Jan - Jun
2025
Cumulative 
Total Since 
Inception
Revenue
Wellness Funds from BCBS
25,000.00
$ 
25,000.00
$ 
25,000.00
$ 
-
$            
349,031.73
$    
YOGA Program Revenues
- 
-
              
-
              
- 
14,200.00
         
Total Wellness Program Revenue
25,000.00
$   
25,000.00
$   
25,000.00
$   
-
$    
   
363,231.73
$       
Operating Expenses
YOGA Program Expenses
-
$            
-
$            
-
$            
-
$            
18,370.00
$       
Other Professional Services
2,500.00
     
17,700.00
   
250.00
        
- 
21,743.62
         
Promotional/Advertising Services
16,795.78
   
9,713.08
     
8,289.13
     
3,188.81
     
174,038.32
       
Printing Supplies and Charges
- 
379.08
        
66.24
          
- 
8,120.34
           
Office Supplies
648.96
        
41.55
          
- 
255.83
        
6,603.29
           
Food and Events
- 
- 
- 
277.78
        
957.36
 
Clothing and Uniforms
- 
- 
- 
- 
52.91
 
Other Supplies
489.80
        
440.88
        
- 
- 
930.68
 
Office Furniture and Equipment
3,200.73
     
1,476.34
     
7,534.63
     
- 
14,332.70
         
Employee Activities/Recognitions
- 
- 
- 
738.39
        
1,220.02
           
Postage and Freight
- 
- 
- 
- 
2,585.94
           
Travel/Lodging/Meals
574.22
        
450.00
        
- 
- 
2,811.22
           
Subscriptions and Memberships
- 
- 
150.00
        
- 
2,588.10
           
Education and Training
- 
- 
1,277.51
     
995.00
        
4,921.43
           
Other Expenses
70.00
          
77.85
          
- 
- 
1,043.35
           
Total Operating Wellness Program Expenses
24,279.49
$   
30,278.78
$   
17,567.51
$   
5,455.81
$     
256,769.87
$       
Capital Expenses
Mezzanine (6BF670)
-
$            
-
$            
18,460.56
$ 
17,947.04
$ 
36,407.60
$       
Total Capital Wellness Program Expenses
-
$    
   
-
$    
   
18,460.56
$   
17,947.04
$   
36,407.60
$          
Total Wellness Program Expenses
24,279.49
$   
30,278.78
$   
36,028.07
$   
23,402.85
$   
293,177.47
$       
Net Wellness Funds Remaining
70,054.26
$      
Chandler Health Care Benefits Trust
Wellness Programs Tracking thru June 2025 (preliminary)