Financial Statements & Wellness Report - Management Services

City of Chandler — Regular Meeting (2026-06-10)

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ASSETS
Cash and investments
19,576,973
$        
Accrued interest
160,915
Due from city - premiums
5,849,383
Prepaid expense 
259,656
Accounts receivable
137,893
     Total assets
25,984,820
LIABILITIES
Accounts payable
19,183
Compensated absences payable
63,464
Claims incurred but not reported (IBNR) - current 89%
4,300,480
Claims incurred but not reported (IBNR) - non-current 11%
531,520
Employee claims payable, due to Blue Cross Blue Shield
1,305,620
Retiree claims payable, due to Blue Cross Blue Shield
60,580
COBRA claims payable, due to Blue Cross Blue Shield
17,076
     Total liabilities
6,297,923
NET POSITION
Unrestricted 
19,686,897
     Total net position
19,686,897
$        
Note:  December 31, 2025 minimum end of year reserve including IBNR and two months costs as 
projected by Segal Consulting. 
 $           11,252,000.00 
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Net Position
March 31, 2026

2026
Budget
2026
Budget 
Prorated
Actuals
Budget to 
Actual 
Difference
OPERATING REVENUES
  Contributions:
      Employer self insurance premiums
24,006,210
$     
6,001,553
$        
6,177,903
$            
176,350
$            
      Employee self insurance premiums
3,492,660
          
873,165
             
871,587
                  
(1,578)
                  
      Retiree premiums
2,887,490
          
721,873
             
948,284
                  
226,411
              
      COBRA premiums
27,140
               
6,785
                  
19,914
                    
13,129
                 
  Other:
      BCBS wellness programs
25,000
               
-
                      
-
                          
-
                       
      BCBS wellness coordinator
100,000
             
-
                      
-
                          
-
                       
      BCBS general and administration
85,000
               
-
                      
-
                          
-
                       
      Recovery of medical claims
30,000
               
7,500
                  
45,702
                    
38,202
                 
      Pharmaceutical rebates
665,000
             
166,250
             
223,891
                  
57,641
                 
          Total operating revenues
31,318,500
        
7,777,126
          
8,287,281
              
510,155
              
OPERATING EXPENSES
  Personnel support 
487,004
             
131,116
             
82,398
                    
(48,718)
               
  Audits & financial services
10,125
               
5,063
                  
4,775
                      
(288)
                     
  Operating supplies & equipment
95,027
               
23,757
               
1,411
                      
(22,346)
               
  Bank charges
600
                     
150
                     
250
                         
100
                      
  Contractual services
58,000
               
14,500
               
11,944
                    
(2,556)
                  
  Other:
      Self-insurance administrative fees
3,337,265
          
834,316
             
787,548
                  
(46,768)
               
      PCORI fees
12,200
               
12,200
               
-
                          
(12,200)
               
      Wellness programs
110,876
             
27,719
               
7,884
                      
(19,835)
               
      Health savings & flex spending acct contributions
305,412
             
305,412
             
176,420
                  
(128,992)
             
  Claims paid:
      Employees
24,307,000
        
6,076,750
          
5,604,693
              
(472,057)
             
      Retirees
5,647,000
          
1,411,750
          
1,138,306
              
(273,444)
             
      COBRA
46,000
               
11,500
               
3,167
                      
(8,333)
                  
          Total operating expenses
34,416,509
        
8,854,233
          
7,818,796
              
(1,035,437)
          
OPERATING INCOME (LOSS)
(3,098,009)
         
(1,077,107)
         
468,485
                  
1,545,592
           
NONOPERATING REVENUES (EXPENSES):
  Transfers out - Technology Fund
(5,530)
                
-
                      
-
                          
-
                       
  Transfers in - General Fund
-
                      
-
                      
7,000,000
              
7,000,000
           
  Interest income (loss)
945,500
             
236,375
             
239,527
                  
3,152
                   
          Total nonoperating revenues (expenses)
939,970
             
236,375
             
7,239,527
              
7,003,152
           
         Change in net position
(2,158,039)
         
(840,732)
            
7,708,012
              
8,548,744
           
NET POSITION:
Total net position, as of January 1, 2026
11,978,885
11,978,885
11,978,885
            
-
                       
Total net position, as of March 31, 2026
9,820,846
$        
11,138,153
$     
19,686,897
$          
8,548,744
$         
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Revenues, Expenses and Changes in Net Position
 For the Three Months Ended March 31, 2026

Cash flows from operating activities:
Cash received for premiums and other operating purposes
5,694,413
$             
Cash payments for claims
(7,972,751)
              
Cash payments to suppliers for other services
(1,252,395)
              
Cash payments to employees for services
(109,336)
                 
Net cash provided by operating activities
(3,640,069)
              
Cash flows from noncapital financing activities:
Cash received from city 
7,000,000
               
Net cash used for noncapital financing activities 
7,000,000
               
Cash flows from investing activities:
Investment income
239,527
                  
Proceeds from sales of investments
2,552,596
               
Purchases of investments
(6,152,054)
              
Net cash used for investing activities 
(3,359,931)
              
Net increase in cash and cash equivalents
-
                          
Cash and cash equivalents, January 1, 2026
-
                          
Cash and cash equivalents, March 31, 2026
-
$                        
Reconciliation of operating income to cash provided by operating activities:
Operating income
468,485
$                
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 prepaid expenses 
(259,656)
                 
(Increase)Decrease in accounts receivable
(103,409)
                 
Increase/(Decrease) in claims payable
(966,929)
                 
Increase/(Decrease) in accounts payable
(262,163)
                 
Increase/(Decrease) in accrued payroll
(26,938)
                   
Net cash provided by operating activities
(3,640,069)
$            
Reconciliation of Cash and Cash Equivalents to the Statement of Net Position:
Cash and cash equivalents
-
$                        
Investments
19,576,973
             
Cash and investments
19,576,973
$           
CITY OF CHANDLER
Chandler Health Care Benefits Self-Insurance Trust Fund
Statement of Cash Flows
 For the Three Months Ended March 31, 2026

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
Jan - Dec
2025
Jan - Dec
2026
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
$  
25,000.00
$    
-
$             
374,031.73
$           
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
$ 
25,000.00
$    
-
$             
388,231.73
$           
Operating 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 Services
-
                 
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
     
7,257.45
        
2,385.80
     
180,492.76
            
Printing Supplies and Charges
-
                 
227.89
         
2,954.17
     
1,259.37
     
1,447.85
     
1,735.20
     
12.30
           
3.02
             
35.22
           
-
               
-
               
-
               
379.08
         
66.24
           
47.20
             
19.20
          
8,186.74
                 
Office Supplies
-
                 
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
           
-
               
384.67
           
135.98
        
6,868.11
                 
Food and Events
-
                 
628.00
         
-
               
-
               
-
               
-
               
51.58
           
-
               
-
               
-
               
-
               
-
               
-
               
-
               
351.31
           
503.30
        
1,534.19
                 
Clothing and Uniforms
-
                 
26.16
           
-
               
26.75
           
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
                  
-
               
52.91
                       
Machinery/Equipment Under 5K
-
                 
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
                  
1,248.30
     
1,248.30
                 
Other Supplies
-
                 
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
489.80
         
440.88
         
-
               
67.40
             
-
               
998.08
                    
Software
-
                 
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
                  
86.00
          
86.00
                       
Office Furniture and Equipment
-
                 
-
               
-
               
-
               
-
               
1,000.00
     
-
               
-
               
-
               
-
               
1,121.00
     
3,200.73
     
1,476.34
     
7,534.63
     
-
                  
-
               
14,332.70
               
Employee Activities/Recognitions
-
                 
-
               
481.63
         
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
6,135.58
        
681.05
        
7,298.26
                 
Postage and Freight
-
                 
-
               
27.12
           
-
               
-
               
-
               
288.50
         
942.96
         
1,327.36
     
-
               
-
               
-
               
-
               
-
               
-
                  
-
               
2,585.94
                 
Travel/Lodging/Meals
-
                 
365.00
         
352.00
         
310.00
         
-
               
-
               
395.00
         
365.00
         
-
               
-
               
-
               
574.22
         
450.00
         
-
               
-
                  
911.31
        
3,722.53
                 
Subscriptions and Memberships
-
                 
-
               
(600.00)
       
-
               
120.00
         
79.00
           
439.10
         
625.50
         
895.50
         
460.00
         
419.00
         
-
               
-
               
150.00
         
375.00
           
155.23
        
3,118.33
                 
Education and Training
2,648.92
       
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
-
               
1,277.51
     
3,587.22
        
1,716.89
     
9,230.54
                 
Other Expenses
-
                 
-
               
-
               
-
               
-
               
-
               
625.50
         
-
               
200.00
         
-
               
70.00
           
70.00
           
77.85
           
-
               
-
                  
40.25
          
1,083.60
                 
Total Operating 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
$ 
18,205.83
$    
7,883.31
$   
280,952.61
$           
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
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
$ 
36,028.07
$ 
45,331.45
$    
7,883.31
$   
326,538.79
$           
Net Wellness Funds Remaining
61,692.94
$