Reserve Rate Analysis

City of Chandler — Regular Meeting (2026-01-28)

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Actuarial Report Comparison
June 30, 2024
June 30, 2025
 Change from 
Prior Year 
Estimated Unpaid Losses & ALAE
11,708,406
       
11,349,763
          
(358,643)
           
Projected Ultimate Losses & ALAE
3,042,000
         
3,012,000
             
(30,000)
              
14,750,406
       
14,361,763
          
(388,643)
           
-2.6%
Audit Report Comparison
June 30, 2024
June 30, 2025
 Change from 
Prior Year 
Net Position
8,988,861
         
11,418,071
          
2,429,210
         
IBNR & Case Reserves
11,708,406
       
11,349,763
          
(358,643)
           
Net Position with IBNR Funded
20,697,267
       
22,767,834
          
2,070,567
         
10.0%
Amount over (under)
5,946,861
         
8,406,071
             
Reserve Analysis
 Actual FY 
23/24 
 Actual FY 
24/25 
 Estimate FY 
25/26 
 Proposed FY 
26/27 
Beginning Fund Balance
18,258,014
    
20,886,041
      
22,689,242
          
24,803,172
       
Revenues
   Contribution to Fund/Int Income
5,952,016
       
6,339,848
         
6,213,580
             
5,434,300
         
   Transfer In from Utilites for Safety Pos.
68,017
             
72,888
              
76,854
                  
80,697
               
   Transfer In from General Fund
-
                   
-
                     
-
                        
-
                     
   *Transfer In for Muni FF Cancer Reimb Fd
-
                   
-
                     
-
                        
-
                     
Total Revenues
6,020,033
       
6,412,736
         
6,290,434
             
5,514,997
         
Expenditures
        Operating Expenditures
(1,985,318)
      
(2,187,348)
        
(2,176,504)
           
(2,387,523)
        
        Claim Expenditures
(1,406,688)
      
(2,422,186)
        
(2,000,000)
           
(3,000,000)
        
Total Expenditures
(3,392,005)
      
(4,609,534)
        
(4,176,504)
           
(5,387,523)
        
Ending Fund Balance
20,886,041
    
22,689,242
      
24,803,172
          
24,930,646
       
Actuarially Calculated "Nominal/Central Level" (6/30/25 report)
14,361,763
       
Projected Fund Balance for FY 2026-27 over Nominal/Central Level
10,568,883
       
* Municipal Firefighter Cancer Reimbursment embedded in the Contribution beginning FY 2023-24
FY 2025-26
FY 2026-27
 Change in 
Contribution 
No change to ongoing contribution
5,060,100
         
4,611,300
             
(448,800)
           
 Recommendation of Change in City Contribution
to Trust for FY 2026-27 
Workers' Compensation and Employer Liability Trust
Contribution and Reserve Analysis for FY 2026-27
 Nominal/Central Value 
 Net Position