Financial Statements and Wellness Report - Management Services

City of Chandler — Regular Meeting (2025-11-12)

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ASSETS
Cash and investments
23,751,830
$       
Accrued interest
269,048
Accounts receivable
72,768
     Total assets
24,093,646
LIABILITIES
Accounts payable
13,989
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
2,485,576
Employee claims payable, due to Blue Cross Blue Shield
4,618,435
Retiree claims payable, due to Blue Cross Blue Shield
896,824
COBRA claims payable, due to Blue Cross Blue Shield
19,184
     Total liabilities
11,334,425
NET POSITION
Unrestricted 
12,759,221
     Total net position
12,759,221
$       
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
September 30, 2025

2025
Budget
2025
Budget 
Prorated
Actuals
Budget to 
Actual 
Difference
OPERATING REVENUES
  Contributions:
      Employer self insurance premiums
22,528,480
$     
16,896,360
$     
17,412,409
$          
516,049
$            
      Employee self insurance premiums
3,357,170
          
2,517,878
          
2,530,967
              
13,089
                 
      Retiree premiums
2,816,610
          
2,112,458
          
2,017,055
              
(95,403)
               
      COBRA premiums
24,250
               
18,188
               
15,177
                    
(3,011)
                  
  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
               
25,000
               
50,000
                    
25,000
                 
      Recovery of medical claims
30,000
               
22,500
               
6,794
                      
(15,706)
               
      Pharmaceutical rebates
665,000
             
498,750
             
535,997
                  
37,247
                 
          Total operating revenues
29,626,510
        
22,271,134
        
22,748,399
            
477,265
              
OPERATING EXPENSES
  Personnel support 
470,406
             
361,851
             
357,604
                  
(4,247)
                  
  Audits & financial services
10,125
               
10,125
               
9,275
                      
(850)
                     
  Promotional 
30,000
               
22,500
               
1,126
                      
(21,374)
               
  Operating supplies & equipment
95,027
               
71,270
               
15,139
                    
(56,131)
               
  Bank charges
500
                     
375
                     
400
                         
25
                        
  Contractual services
173,000
             
129,750
             
14,638
                    
(115,112)
             
  Other:
      Self-insurance administrative fees
3,283,833
          
2,462,875
          
2,376,136
              
(86,739)
               
      PCORI fees
11,000
               
11,000
               
12,173
                    
1,173
                   
      Wellness programs
133,368
             
100,026
             
32,858
                    
(67,168)
               
      Health savings & flex spending acct contributions
280,593
             
280,593
             
196,158
                  
(84,435)
               
  Claims paid:
      Employees
21,188,000
        
15,891,000
        
22,673,551
            
6,782,551
           
      Retirees
4,119,000
          
3,089,250
          
4,409,125
              
1,319,875
           
      COBRA
93,000
               
69,750
               
42,918
                    
(26,832)
               
          Total operating expenses
29,887,852
        
22,500,365
        
30,141,101
            
7,640,736
           
OPERATING INCOME (LOSS)
(261,342)
            
(229,231)
            
(7,392,702)
             
(7,163,471)
          
NONOPERATING REVENUES (EXPENSES):
  Transfers out - Technology Fund
(5,530)
                
(5,530)
                
(6,807)
                     
(1,277)
                  
  Interest income (loss)
785,500
             
589,125
             
755,624
                  
166,499
              
          Total nonoperating revenues (expenses)
779,970
             
583,595
             
748,817
                  
165,222
              
         Change in net position
518,628
             
354,364
             
(6,643,885)
             
(6,998,249)
          
NET POSITION:
Total net position, as of January 1, 2025
19,403,106
19,403,106
19,403,106
            
-
                       
Total net position, as of September 30, 2025
19,921,734
$     
19,757,470
$     
12,759,221
$          
(6,998,249)
$        
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, 2025

Cash flows from operating activities:
Cash received for premiums and other operating purposes
25,293,451
$          
Cash payments for claims
(23,791,749)
            
Cash payments to suppliers for other services
(2,657,903)
              
Cash payments to employees for services
(357,604)
                 
Net cash provided by operating activities
(1,513,805)
              
Cash flows from noncapital financing activities:
Cash paid to city for technology replacement
(6,807)
                     
Net cash used for noncapital financing activities 
(6,807)
                     
Cash flows from investing activities:
Investment income
755,624
                  
Proceeds from sales of investments
4,481,564
               
Purchases of investments
(3,716,576)
              
Net cash used for investing activities 
1,520,612
               
Net increase in cash and cash equivalents
-
                          
Cash and cash equivalents, January 1, 2025
-
                          
Cash and cash equivalents, September 30, 2025
-
$                        
Reconciliation of operating income to cash provided by operating activities:
Operating income
(7,392,702)
$            
Adjustments to reconcile operating income to net cash provided by
operating activities:
Changes in assets and liabilities:
(Increase)/Decrease in due from (to) city
2,485,576
               
(Increase)Decrease in accounts receivable
59,476
                    
Increase/(Decrease) in claims payable
3,333,845
               
Net cash provided by operating activities
(1,513,805)
$            
Reconciliation of Cash and Cash Equivalents to the Statement of Net Position:
Cash and cash equivalents
-
$                        
Investments
23,751,830
             
Cash and investments
23,751,830
$          
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Cash Flows
 For the Nine Months Ended September 30, 2025

Wellness Detail
Jan - Dec
2022
Jan - Dec
2023
Jan - Dec
2024
Jan - Sep
2025
Cumulative 
Total Since 
Inception
Revenue
Wellness Funds from BCBS
25,000.00
$ 
25,000.00
$ 
25,000.00
$ 
25,000.00
$ 
374,031.73
$     
YOGA Program Revenues
-
               
-
               
-
               
-
               
14,200.00
         
Total Wellness Program Revenue
25,000.00
$ 
25,000.00
$ 
25,000.00
$ 
25,000.00
$ 
388,231.73
$    
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
      
3,288.81
      
174,138.32
       
Printing Supplies and Charges
-
               
379.08
         
66.24
           
47.20
           
8,167.54
           
Office Supplies
648.96
         
41.55
           
-
               
384.67
         
6,732.13
           
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
$ 
5,731.85
$   
256,769.87
$    
Capital Expenses
Mezzanine (6BF670)
-
$             
-
$             
18,460.56
$ 
27,125.62
$ 
45,586.18
$       
Total Capital Wellness Program Expenses
-
$            
-
$            
18,460.56
$ 
27,125.62
$ 
45,586.18
$      
Total Wellness Program Expenses
24,279.49
$ 
30,278.78
$ 
36,028.07
$ 
32,857.47
$ 
302,356.05
$    
Net Wellness Funds Remaining
85,875.68
$      
Chandler Health Care Benefits Trust
Wellness Programs Tracking thru September 2025