Financial Statements and Wellness Report - Management Services

City of Chandler — Regular Meeting (2026-02-25)

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ASSETS
Cash and investments
21,590,134
$       
Accrued interest
190,123
Accounts receivable
34,484
     Total assets
21,814,741
LIABILITIES
Accounts payable
281,346
Accrued payroll
26,938
Compensated absences payable
63,464
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
2,489,459
Employee claims payable, due to Blue Cross Blue Shield
1,469,230
Retiree claims payable, due to Blue Cross Blue Shield
856,679
COBRA claims payable, due to Blue Cross Blue Shield
24,296
    Total liabilities
8,433,412
NET POSITION
Unrestricted 
13,381,329
    Total net position
13,381,329
$       
Note:  December 31, 2024 minimum end of year reserve including IBNR and two months costs as 
projected by Segal Consulting. 
 $             9,063,000.00 
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Net Position
December 31, 2025 (Unaudited)

2025
Budget
Actuals
Budget to 
Actual 
Difference
OPERATING REVENUES
 Contributions:
     Employer self insurance premiums
22,528,480
$    
23,227,783
$         
699,303
$           
     Employee self insurance premiums
3,357,170
        
3,379,405
            
22,235
              
     Retiree premiums
2,816,610
        
2,793,859
            
(22,751)
             
     COBRA premiums
24,250
             
26,262
                 
2,012
                 
 Other:
     BCBS wellness programs
80,000
             
80,000
                 
-
                     
     BCBS wellness coordinator
100,000
           
100,000
               
-
                     
     BCBS general and administration
25,000
             
50,000
                 
25,000
              
     Recovery of medical claims
30,000
             
20,437
                 
(9,563)
               
     Pharmaceutical rebates
665,000
           
735,885
               
70,885
              
         Total operating revenues
29,626,510
     
30,413,631
          
787,121
            
OPERATING EXPENSES
 Personnel support 
470,406
           
497,421
               
27,015
              
 Audits & financial services
10,125
             
9,275
                    
(850)
                   
 Promotional 
30,000
             
1,127
                    
(28,873)
             
 Operating supplies & equipment
95,027
             
18,435
                 
(76,592)
             
 Bank charges
500
                  
658
                       
158
                    
 Contractual services
173,000
           
15,971
                 
(157,029)
           
 Other:
     Self-insurance administrative fees
3,283,833
        
3,207,612
            
(76,221)
             
     PCORI fees
11,000
             
12,173
                 
1,173
                 
     Wellness programs
133,368
           
45,331
                 
(88,037)
             
     Health savings & flex spending acct contributions
280,593
           
196,158
               
(84,435)
             
 Claims paid:
     Employees
21,188,000
     
27,081,258
          
5,893,258
         
     Retirees
4,119,000
        
6,292,168
            
2,173,168
         
     COBRA
93,000
             
51,592
                 
(41,408)
             
         Total operating expenses
29,887,852
     
37,429,179
          
7,541,327
         
OPERATING INCOME (LOSS)
(261,342)
          
(7,015,548)
           
(6,754,206)
        
NONOPERATING REVENUES (EXPENSES):
 Transfers out - Technology Fund
(5,530)
              
(6,807)
                   
(1,277)
               
 Interest income (loss)
785,500
           
1,000,578
            
215,078
            
         Total nonoperating revenues (expenses)
779,970
           
993,771
               
213,801
            
        Change in net position
518,628
           
(6,021,777)
           
(6,540,405)
        
NET POSITION:
Total net position, as of January 1, 2025
19,403,106
19,403,106
          
-
                     
Total net position, as of December 31, 2025
19,921,734
$    
13,381,329
$         
(6,540,405)
$       
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Revenues, Expenses and Changes in Net Position
For the Twelve Months Ended December 31, 2025 (Unadited)

Cash flows from operating activities:
Cash received for premiums and other operating purposes
33,000,850
$           
Cash payments for claims
(33,275,411)
            
Cash payments to suppliers for other services
(3,239,383)
              
Cash payments to employees for services
(485,436)
                 
Net cash provided by operating activities
(3,999,380)
              
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
1,000,578
               
Proceeds from sales of investments
4,740,129
               
Purchases of investments
(1,734,520)
              
Net cash used for investing activities 
4,006,187
               
Net increase in cash and cash equivalents
-
                          
Cash and cash equivalents, January 1, 2025
-
                          
Cash and cash equivalents, December 31, 2025
-
$                        
Reconciliation of operating income to cash provided by operating activities:
Operating income
(7,015,548)
$            
Adjustments to reconcile operating income to net cash provided by
operating activities:
Changes in assets and liabilities:
(Increase)/Decrease in due from (to) city
2,489,459
               
(Increase)Decrease in accounts receivable
97,760
                    
Increase/(Decrease) in claims payable
149,607
                  
Increase/(Decrease) in accounts payable
267,357
                  
Increase/(Decrease) in accrued payroll
5,465
                      
Increase/(Decrease) in compensated absences payable
6,520
                      
Net cash provided by operating activities
(3,999,380)
$            
Reconciliation of Cash and Cash Equivalents to the Statement of Net Position:
Cash and cash equivalents
-
$                        
Investments
21,590,134
             
Cash and investments
21,590,134
$           
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Cash Flows
 For the Twelve Months Ended December 31, 2025 (Unadited)

Wellness Detail
Jan - Dec
2022
Jan - Dec
2023
Jan - Dec
2024
Jan - Dec
2025
Cumulative 
Total Since 
Inception
Revenue
Wellness Funds from BCBS
25,000
$         
25,000
$         
25,000
$         
25,000
$         
374,032
$         
YOGA Program Revenues
-
$           
-
$           
-
$           
-
$           
14,200
$           
Total Wellness Program Revenue
25,000
$        
25,000
$        
25,000
$        
25,000
$        
388,232
$        
Operating Expenses
YOGA Program Expenses
-
$           
-
$           
-
$           
-
$           
18,370
$       
Other Professional Services
2,500
$       
17,700
$     
250
$          
-
$           
21,744
$           
Promotional/Advertising Services
16,796
$     
9,713
$       
8,289
$       
7,257
$       
178,107
$         
Printing Supplies and Charges
-
$           
379
$          
66
$            
47
$            
8,168
$              
Office Supplies
649
$          
42
$            
-
$           
385
$          
6,732
$              
Food and Events
-
$           
-
$           
-
$           
351
$          
1,031
$              
Clothing and Uniforms
-
$           
-
$           
-
$           
-
$           
53
$                   
Other Supplies
490
$          
441
$          
-
$           
67
$            
998
$                 
Office Furniture and Equipment
3,201
$       
1,476
$       
7,535
$       
-
$           
14,333
$           
Employee Activities/Recognitions
-
$           
-
$           
-
$           
6,136
$       
6,617
$              
Postage and Freight
-
$           
-
$           
-
$           
-
$           
2,586
$              
Travel/Lodging/Meals
574
$          
450
$          
-
$           
-
$           
2,811
$              
Subscriptions and Memberships
-
$           
-
$           
150
$          
375
$          
2,963
$              
Education and Training
-
$           
-
$           
1,278
$       
3,587
$       
7,514
$              
Other Expenses
70
$            
78
$            
-
$           
-
$           
1,043
$              
Total Operating Wellness Program Expe
24,279
$        
30,279
$        
17,568
$        
18,206
$        
256,770
$        
Capital Expenses
Mezzanine (6BF670)
-
$           
-
$           
18,461
$     
27,126
$     
45,586
$           
Total Capital Wellness Program Expense
-
$               
-
$               
18,461
$        
27,126
$        
45,586
$           
Total Wellness Program Expenses
24,279
$        
30,279
$        
36,028
$        
45,331
$        
302,356
$        
Net Wellness Funds Remaining
85,876
$       
Chandler Health Care Benefits Trust
Wellness Programs Tracking thru December 2025