This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, qualification or filing under the securities laws of any such jurisdiction. * Preliminary, subjecttochange. from Pennsylvaniapersonalincometaxandcorporatenettax.See“TAXMATTERS”herein. the lawsofCommonwealthPennsylvania,ascurrentlyenactedandconstrued,interestonBondsisexempt corporations asmorefullydescribedunderthecaption“TAXMATTERS–FederalTaxExemption”herein.Under may beindirectlysubjecttocorporatefederalalternativeminimumtaxandcertainothertaxesimposedon preference for purposes of either individual or corporate federal alternative minimum tax. Interest on the Bonds tax purposesunderexistinglaw,ascurrentlyenactedandconstrued.InterestontheBondsisnotanitemof Pennsylvania, interest on the Bonds is excluded from gross income of the owners of the Bonds for federal income Pittsburgh, Pennsylvania. The Bonds are expected to be available for delivery to DTC in New York on or about July __, 2016. will bepasseduponfortheCountybyitsSolicitor,Andrew F.Szefi,Esquire,andfortheUnderwritersbyReedSmithLLP, subject to the approving legal opinion of Clark Hill PLC, Pittsburgh, Pennsylvania, Bond Counsel. Certain other legal matters informed investmentdecision. of theissue.InvestorsmustreadentireOfficial Statementtoobtaininformationessentialmakingan redemption priortotheirmaturityasdescribedherein. the responsibilityofDTCparticipants.See“BOOK-ENTRY-ONLYSYSTEM”herein. payments toDTCparticipantsistheresponsibilityofanddisbursementsuchBeneficial Owners is of theCounty(the“PayingAgent”).SolongasDTCoritsnomineeremainsregisteredowner,disbursement ofsuch of eachyear,commencingonNovember1,2016)willbepayabletoDTCbyU.S.BankNationalAssociation,aspaying agent Owners willnotbeentitledtoreceivephysicaldeliveryoftheBonds. by BeneficialOwnerswillbemadeinbook-entry-onlyformdenominationsof$5,000oranymultiplethereof. Beneficial maintained byDTC,onlythroughbrokersanddealerswhoare,oractthrough,DTCparticipants.Purchasesofthe Bonds New York(“DTC”),andwillbeavailabletoultimatepurchasers(“BeneficialOwners”)underthebook-entry-only system fully registeredBonds,inthenameofCede&Co.,asnomineeTheDepositoryTrustCompany,New York, County Council,andapprovedbytheChiefExecutiveofonMay11,2016.TheBondswillbeissuable onlyas and interestontheBonds.See“THEBONDS”herein. will besecuredbyanirrevocablepledgeoftheCounty’sfullfaith,creditandtaxingpowerforpaymentprincipal of Bonds”) andGeneralObligationBonds,SeriesC-76(the“C-76Bonds”and,collectivelywiththeC-75 “Bonds”) First InterestPayment:November1,2016 Dated: DateofDelivery NEW ISSUE–BOOKENTRYONLY The Bondsareoffered,subjecttopriorsale,when,asand ifissuedbytheCountyandacceptedUnderwriters This cover page contains certain information for referencepurposes only. It isnot a complete summary The Bondswillbearinterest at the rates per annum set forth on the inside cover page. The Bonds are subject to Principal ofandpremium,ifany,interestontheBonds(withpayableMay1November 1 The Bonds will be issued bythe County pursuant to the Ordinance enacted on May 10, 2016 (the “Ordinance”) by the The CountyofAllegheny,Pennsylvania(the“County”)GeneralObligationRefundingBonds,SeriesC-75“C-75 In theopinionofBondCounsel,assumingcompliancewithcertaincovenantsCountyAllegheny, ® Academy Securities,Inc. RBC CapitalMarkets PRELIMINARY OFFICIAL STATEMENT DATED JUNE 15, 2016

GENERAL OBLIGATIONREFUNDINGBONDS,SERIESC-75 COUNTY OF ALLEGHENY PENNSYLVANIA GENERAL OBLIGATIONBONDS,SERIESC-76

The dateofthisOfficial StatementisJune__,2016.

PNC CapitalMarketsLLC Book-Running SeniorManager Wells Fargo Securities $279,500,000* $210,000,000* $69,500,000* Co-Managers and Due:November1,asshownontheinsidefrontcover Authorized Denomination:$5,000andmultiplesthereof Siebert BrandfordShank &Co.,L.L.C. Janney MontgomeryScott LLC RATINGS: See“RATINGS”herein

MATURITY SCHEDULE

$210,000,000* COUNTY OF ALLEGHENY, PENNSYLVANIA GENERAL OBLIGATION REFUNDING BONDS, SERIES C-75 Year Initial Offering (November 1) Principal Maturity Amount Interest Rate Initial Offering Yield Price CUSIP+

$69,500,000* COUNTY OF ALLEGHENY, PENNSYLVANIA GENERAL OBLIGATION BONDS, SERIES C-76 Year Initial Offering (November 1) Principal Maturity Amount Interest Rate Initial Offering Yield Price CUSIP+

______* Preliminary, subject to change + The above CUSIP (Committee on Uniform Securities Identification Procedures) numbers have been assigned by an organization not affiliated with the County or the Underwriters, and such parties are not responsible for the selection or use of the CUSIP numbers. The CUSIP numbers are included solely for the convenience of bondholders and no representation is made as to the correctness of such CUSIP numbers. CUSIP numbers assigned to securities may be changed during the term of such securities based on a number of factors including, but not limited to, the refunding or defeasance of such securities or the use of secondary market financial products. None of the County or any of the Underwriters has agreed, and there is no duty or obligation, to update this Official Statement to reflect any change or correction in the CUSIP numbers set forth above.

COUNTY OF ALLEGHENY, PENNSYLVANIA

Chief Executive Rich Fitzgerald

County Council

Council-at-Large Council District 5 Council-at-Large John P. DeFazio* Sue Means Samuel DeMarco III

Council District 1 Council District 6 Council District 10 Thomas Baker John F. Palmiere DeWitt Walton

Council District 2 Council District 7 Council District 11 Cindy Kirk Nicholas Futules** Paul Klein

Council District 3 Council District 8 Council District 12 Edward Kress Charles J. Martoni, Ph.D. James R. Ellenbogen

Council District 4 Council District 9 Council District 13 Michael J. Finnerty*** Robert J. Macey Denise Ranalli Russell

Controller County Manager Treasurer Chelsa Wagner William D. McKain, CPA John K. Weinstein

County Solicitor Andrew F. Szefi, Esquire

Budget and Finance Director Mary C. Soroka

Bond Counsel Clark Hill PLC

Underwriters PNC Capital Markets LLC Academy Securities, Inc. Janney Montgomery Scott LLC RBC Capital Markets, LLC Siebert Brandford Shank & Co., L.L.C. Wells Fargo Securities

Underwriters' Counsel Reed Smith LLP

Paying Agent U.S. Bank National Association

Financial Advisor BNY Mellon Capital Markets, LLC ______* President of Council ** Vice President of Council *** Chairperson, County Council Committee on Budget and Finance

No dealer, broker, salesman, or any other person has been authorized by the County or the Underwriters to give any information or to make any representation in connection with the offering of the Bonds, other than those contained in this Official Statement, and, if given or made, such other information or representation must not be relied upon as having been authorized by either of the foregoing. This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified or licensed to do so or to any person to whom it is unlawful to make such offer, solicitation, or sale. The information herein has been furnished solely by the County and by other sources that are believed by the County to be reliable, but it is not guaranteed as to its accuracy or completeness by, and is not to be construed as a representation of, the Underwriters. The Underwriters have provided the following sentence for inclusion in this Official Statement: The Underwriters have reviewed the information in this Official Statement pursuant to their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the County after the date hereof. This Official Statement is submitted in connection with the sale of the Bonds and may not be reproduced or used, in whole or in part, for any other purpose. The County has deemed this Official Statement to be final for purposes of Rule 15c2-12 promulgated by the Securities and Exchange Commission.

In connection with the offering of the Bonds, the Underwriters may overallot or effect transactions which stabilize or maintain the market price of such Bonds at levels above those which might otherwise prevail in the open market. Such stabilization, if commenced, may be discontinued at any time.

THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR HAS THE ORDINANCE BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. THE REGISTRATION OR QUALIFICATION OF THE BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS OF THE SECURITIES LAWS OF THE STATES, IF ANY, IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN CERTAIN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE BONDS OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.

TABLE OF CONTENTS PAGE

SUMMARY STATEMENT ...... i INTRODUCTION ...... 1 PURPOSE OF THE BONDS ...... 1 COUNTY OF ALLEGHENY ...... 1 AUTHORITY TO ISSUE THE BONDS ...... 2 THE BONDS ...... 3 General Description of the Bonds ...... 3 Delivery of Certificates; Registered Owners ...... 4 Transfer and Exchange ...... 4 REDEMPTION OF THE BONDS ...... 4 Optional Redemption of C-75 Bonds ...... 4 Optional Redemption of C-76 Bonds ...... 4 Mandatory Redemption of Bonds ...... 4 Notice of Redemption ...... 5 SECURITY FOR THE BONDS ...... 5 General Obligations ...... 5 Certain Covenants and Agreements ...... 6 Default and Remedies ...... 6 BOOK-ENTRY-ONLY SYSTEM ...... 7 FINANCING PLAN ...... 9 The Refunding Program ...... 9 ESTIMATED SOURCES AND USES ...... 10 DEBT SERVICE SCHEDULE ...... 11 SUMMARY OF DIRECT AND OVERLAPPING DEBT ...... 12 FINANCIAL STATEMENTS ...... 12 LITIGATION AND OTHER CONTINGENT LIABILITIES ...... 12 LEGAL MATTERS ...... 15 FINANCIAL ADVISOR ...... 15 VERIFICATION OF MATHEMATICAL CALCULATIONS ...... 15 TAX MATTERS ...... 15 Federal Tax Exemption ...... 15 Commonwealth of Pennsylvania...... 16 Bond Counsel Opinions ...... 16 Other Tax Consequences ...... 16 UNDERWRITING ...... 16 CONTINUING DISCLOSURE UNDERTAKING ...... 17 RATINGS ...... 19 RELATIONSHIP OF CERTAIN PARTIES ...... 19 CONCLUDING STATEMENT ...... 20

Appendix A - County of Allegheny, Pennsylvania Appendix B - Demographic and Economic Information Appendix C - Form of Opinion of Bond Counsel Appendix D - Annual Financial Report for Fiscal Year Ended December 31, 2015

[THIS PAGE INTENTIONALLY LEFT BLANK]

PRELIMINARY OFFICIAL STATEMENT $279,500,000* COUNTY OF ALLEGHENY, PENNSYLVANIA $210,000,000* GENERAL OBLIGATION REFUNDING BONDS, SERIES C-75

and

$69,500,000* GENERAL OBLIGATION BONDS, SERIES C-76

SUMMARY STATEMENT

This Summary Statement is subject in all respects to more complete information contained elsewhere in this Official Statement, including all the Appendices hereto. The offering of the Bonds is made only by means of the entire Official Statement. No person is authorized to detach the Summary Statement from the Official Statement or to otherwise use it without this entire Official Statement, including all the Appendices hereto.

Issuer County of Allegheny, Pennsylvania (the “County”).

Bonds $210,000,000* aggregate principal amount of General Obligation Refunding Bonds, Series C-75 (the “C-75 Bonds”) dated as of the date of issuance and delivery, maturing on the dates set forth on the inside cover page of this Official Statement, with interest payable on May 1 and November 1 of each year commencing on November 1, 2016.

$69,500,000* aggregate principal amount of General Obligation Bonds, Series C-76 (the “C-76 Bonds” and, collectively with the C-75 Bonds, the “Bonds”) dated as of the date of issuance and delivery, maturing on the dates set forth on the inside cover page of this Official Statement, with interest payable on May 1 and November 1 of each year commencing on November 1, 2016.

The Bonds will be issued in denominations of $5,000, or any multiple thereof and will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), pursuant to DTC’s Book-Entry-Only-System (see “THE BONDS” and “BOOK- ENTRY-ONLY-SYSTEM” herein).

Purpose of C-75 Bonds The proceeds from the sale of the C-75 Bonds will be used for the purposes of (i) the refunding of certain outstanding general obligation indebtedness of the County, and (ii) paying the costs of issuing the C-75 Bonds. See “FINANCING PLAN – The Refunding Program” herein.

Purpose of C-76 Bonds The proceeds from the sale of the C-76 Bonds will be used for the purposes of (i) providing funds for various capital projects approved in the Allegheny County Capital Budget; and (ii) paying the costs of issuing the C-76 Bonds. ______*Estimate, subject to change

(i)

Redemption The Bonds are subject to optional redemption and mandatory sinking fund redemption prior to maturity, as described herein. See “REDEMPTION OF THE BONDS” herein.

Form Fully registered book-entry-only bonds.

Ratings Moody’s Investors Service, Inc. (“Moody's”) has assigned a rating of “___” to the Bonds and Standard & Poor's Ratings Services (“S&P”) has assigned a rating of “___” to the Bonds. See “RATINGS” herein.

Security The Bonds are general obligations of the County secured by an irrevocable pledge of the County’s full faith, credit and taxing power for the payment of principal of and interest on the Bonds. All taxable real property in the County is subject to ad valorem taxation without limitation as to rate or amount to pay debt service on the Bonds. See “SECURITY FOR THE BONDS” herein.

(ii)

$279,500,000* COUNTY OF ALLEGHENY, PENNSYLVANIA $210,000,000* GENERAL OBLIGATION REFUNDING BONDS, SERIES C-75

and

$69,500,000* GENERAL OBLIGATION BONDS, SERIES C-76

INTRODUCTION

This Official Statement, including the cover page, Summary Statement and Appendices hereto, is furnished by the County of Allegheny, Pennsylvania (the “County”) in connection with the offering by the County of $210,000,000* aggregate principal amount of its General Obligation Refunding Bonds, Series C-75 (the “C-75 Bonds”), and $69,500,000* aggregate principal amount of its General Obligation Bonds, Series C-76 (the “C-76 Bonds” and, together with the C-75 Bonds, the “Bonds”).

PURPOSE OF THE BONDS

The proceeds from the sale of the C-75 Bonds will be used for the purposes of (i) the refunding of a certain outstanding general obligation indebtedness of the County, and (ii) paying the costs of issuing the C-75 Bonds.

The proceeds from the sale of the C-76 Bonds will be used for the purposes of (i) providing funds for various capital projects approved in the Allegheny County Capital Budget, and (ii) paying the costs of issuing the C-76 Bonds.

See “FINANCING PLAN” and “ESTIMATED SOURCES AND USES” herein.

COUNTY OF ALLEGHENY

The County is the second largest county by population in Pennsylvania and the City of Pittsburgh is the most populous city in the County. Prior to January 3, 2000, the County was governed by a three-person Board of County Commissioners. On January 3, 2000, the governance of the County transitioned to a Home Rule Charter (the “Charter”) and the Commissioner form of government was replaced with an elected Chief Executive (the “Chief Executive”), a fifteen-member County Council (the “County Council”) and an appointed professional Manager (the “Manager”). See APPENDIX A - “COUNTY OF ALLEGHENY” hereto.

The executive and administrative power of the County is vested in the Executive Branch that consists of the Chief Executive, the Manager, the Law Department and other departments and agencies established in the County’s Administrative Code.

Rich Fitzgerald is the County’s elected Chief Executive. William D. McKain serves as the appointed County Manager. The Chief Executive's term is four years. Mr. Fitzgerald's current term in office ends in January, 2020.

The legislative power of the County is vested in the County Council which consists of two at-large members and thirteen members elected by district. The members of County Council, who are listed on the inside

* Estimate, subject to change

cover of this Official Statement, bring a wide variety of expertise from the private and public sectors to County government. John DeFazio is President of County Council and Nicholas Futules is Vice President of County Council.

For a more detailed review of the County and its operations, see APPENDIX A – “COUNTY OF ALLEGHENY.” Also, for additional information with respect to the County, see APPENDIX B – “DEMOGRAPHIC AND ECONOMIC INFORMATION.”

AUTHORITY TO ISSUE THE BONDS

The issuance of the Bonds is authorized by and subject to (i) Article IX, Section 10 of the Constitution of the Commonwealth of Pennsylvania (the “Constitution”), which directs the Pennsylvania General Assembly to prescribe the debt limits of all units of local government subject to the restrictions prescribed therein; (ii) the Local Government Unit Debt Act, as codified by the Act of December 19, 1996, P.L. 1158, No. 177 (the “Act”), which implements Section 10 of Article IX of the Constitution; and (iii) an ordinance enacted by the County Council on May 10, 2016, and approved by the Chief Executive of the County on May 11, 2016 (the “Ordinance”).

Article IX, Section 10 of the Constitution was adopted April 28, 1968 and directed the Pennsylvania General Assembly to prescribe the debt limits of all units of local government, including the County, subject to four requirements as follows: (1) debt limits shall be based upon a percentage of total revenues, as defined by the General Assembly, of the unit of local government computed over a specific period immediately preceding the year of borrowing; (2) debt limits shall exclude all indebtedness approved by the electors; (3) debt limits shall exclude all self-liquidating or self-supporting indebtedness for any project; and (4) the local government unit must covenant to make payments out of its sinking funds or any other of its revenues or funds sufficient for the payment of interest and principal when due, so long as any non-electoral and lease rental debt shall remain unpaid.

The Act specifically prescribes the limits of non-electoral debt that may be incurred by the County without the approval of the electorate. The County cannot incur any new “nonelectoral debt” (that is, any debt other than debt approved by the electorate or lease rental debt as defined below) if the aggregate net principal amount of such new debt, together with all other net nonelectoral debt outstanding, would cause the total net nonelectoral debt of the County to exceed three hundred percent (300%) of its borrowing base. The County’s borrowing base is defined by the Act as the annual arithmetic average of its adjusted revenues for the three full fiscal years immediately preceding the date of the incurrence of debt.

In addition, where the County incurs debt pursuant to a lease, subsidy contract, guaranty or another form of agreement to acquire a capital asset (“lease rental debt”), the Act provides another debt limitation. Under this limitation the County cannot incur any additional lease rental debt or nonelectoral debt, if the aggregate net principal amount of such additional debt, together with any other net nonelectoral debt plus net lease rental debt of the County, exceeds four hundred percent (400%) of its borrowing base. The County is also authorized to incur additional nonelectoral or lease rental debt under certain circumstances as provided in the Act for specific county- wide functions and responsibilities in an amount not to exceed one hundred percent (100%) of its borrowing base. See Appendix A hereto for a calculation of the County’s debt limits pursuant to the Act.

2

THE BONDS

GENERAL DESCRIPTION OF THE BONDS

The Bonds will be issued as fully registered Bonds in denominations of $5,000, or any multiple thereof. The Bonds will be initially dated as of their date of delivery, shall bear interest on the unpaid principal at the rates and mature in the amounts and on the dates set forth on the inside cover page of this Official Statement and are subject to redemption prior to maturity as set forth under “REDEMPTION OF THE BONDS” herein. While the Bonds are in the Book-Entry-Only System, references herein to the “Owner” or the “Registered Owner” are to Cede & Co., as nominee of DTC. Each beneficial owner of a Bond may desire to make arrangements with a DTC participant to receive notices or communications with respect to matters described herein. See “BOOK-ENTRY- ONLY SYSTEM” herein.

Interest on the Bonds shall be computed on the basis of a 30-day month and 360-day year and shall be payable semiannually on May 1 and November 1 of each year (each, an “Interest Payment Date”), commencing on November 1, 2016. If an Interest Payment Date occurs on a Saturday, Sunday, or a day on which financial institutions in the Commonwealth of Pennsylvania are authorized by law to be closed, the interest on and principal of the Bonds coming due on such Interest Payment Date shall be payable on the next succeeding day which is not on a Saturday, Sunday, or a day on which financial institutions in the Commonwealth of Pennsylvania are authorized by law to be closed (a “Business Day”) without any additional accrual of interest.

Each Bond will be dated as of its date of authentication and will bear interest from the immediately preceding Interest Payment Date to which interest has been paid, unless: (i) such Bond is authenticated on an Interest Payment Date to which interest has been paid, in which case it shall bear interest from such Interest Payment Date; or (ii) such Bond is authenticated on or prior to the first Regular Record Date (hereinafter defined) after the initial issue date, in which event it shall bear interest from the date of initial issuance and delivery of the Bonds.

So long as DTC or its nominee, Cede & Co., is the registered owner of the Bonds, payments of the principal of, premium, if any, and interest on the Bonds will be made by the Paying Agent directly to Cede & Co. Disbursements of such payments to the Direct Participants (as hereinafter defined) are the responsibility of DTC. Disbursement of such payment to the owners of the beneficial interest in the Bonds is the responsibility of the Direct Participants and the Indirect Participants (as hereinafter defined). See “BOOK-ENTRY-ONLY SYSTEM” herein. At all other times, the principal of and interest on the Bonds shall be payable at the designated corporate trust office of U.S. Bank National Association, as Paying Agent (the “Paying Agent”), in such coin or currency of the United States of America as at the time and place of payment is legal tender for public and private debts, provided that interest may be paid by check drawn upon the Paying Agent and mailed to the persons in whose names the Bonds are registered at the close of business on the fifteenth (15th) day of the month immediately preceding the month of the relevant Interest Payment Date (the “Regular Record Date”) at the addresses shown on the registration records for the Bonds (the “Bond Register”) kept by the Paying Agent. Persons designated in the Bond Register as owning Bonds are hereinafter referred to as “Registered Owners.”

Notwithstanding the foregoing, if and to the extent there shall be a default in the payment of interest due on an Interest Payment Date, such defaulted interest shall be paid on a special payment date established by the Paying Agent, to the Registered Owners in whose names the Bonds are registered at the close of business on a special record date (the “Special Record Date” and together with the Regular Record Date, the “Record Date”) established by notice mailed to the Registered Owners not less than ten (10) days prior to such Special Record Date. Notice of a Special Record Date shall be mailed to the Registered Owners as of the close of business on the fifth day prior to the date of such mailing.

3

DELIVERY OF CERTIFICATES; REGISTERED OWNERS

Subject to the provisions described under “BOOK-ENTRY-ONLY SYSTEM” below, in the event that the County determines that it is in the best interest of the County and/or the Beneficial Owners (as hereinafter defined) of the Bonds that bond certificates be issued, or if DTC determines to discontinue providing its services with respect to the Bonds (and no successor Securities Depository has been designated), bond certificates in fully registered form will be printed and delivered as directed by DTC. The ownership of the Bonds so delivered (and any Bonds thereafter delivered upon a transfer or exchange described below) shall be registered in the Bond Register kept by the Paying Agent at its designated corporate trust office, and the County and the Paying Agent shall be entitled to treat the registered owners of such Bonds, as their names appear in such Bond Register as of the appropriate dates, as the owners thereof for all purposes described in the Ordinance.

TRANSFER AND EXCHANGE

Subject to the provisions described under “BOOK-ENTRY-ONLY SYSTEM” below, a Bond may be transferred or exchanged only upon presentation thereof to the Paying Agent. Such Bond must be accompanied by a written instrument or instruments of transfer or exchange, in form and with guaranty of signatures satisfactory to the County and the Paying Agent, duly executed by the Registered Owner thereof or his duly authorized agent or legal representative. Upon surrender of any Bonds to be transferred or exchanged, the Paying Agent shall record the transfer or exchange in its Bond Register and shall authenticate and deliver new Bonds appropriately registered and in appropriate authorized denominations. Neither the County nor the Paying Agent shall be required to (a) issue, or register any transfer or exchange of, any Bond during a period of fifteen (15) business days before any date of selection of Bonds to be redeemed or (b) register the transfer or exchange of any Bond after it has been selected for redemption, in whole or in part, except that Bonds properly surrendered for partial redemption may be exchanged for new Bonds, in authorized denominations, equal in the aggregate to the unredeemed portion. No service charge shall be made for any transfer of any Bond, but the County or the Paying Agent may require payment of any sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds.

REDEMPTION OF THE BONDS

OPTIONAL REDEMPTION OF C-75 BONDS

The C-75 Bonds maturing after November 1, , shall be subject to redemption prior to maturity at the option of the County, on or after November 1, , in whole or in part at any time at a redemption price of 100% of the principal amount thereof plus interest, if any, accrued thereon to the date fixed for redemption. Any such redemption shall be made in the order of maturity selected by the County and within any maturity by lot, as selected by the Paying Agent.

OPTIONAL REDEMPTION OF C-76 BONDS

The C-76 Bonds maturing after November 1, ____, shall be subject to redemption prior to maturity at the option of the County, on or after November 1, ____, in whole or in part at any time at a redemption price of 100% of the principal amount thereof plus interest, if any, accrued thereon to the date fixed for redemption. Any such redemption shall be made in the order of maturity selected by the County and within any maturity by lot, as selected by the Paying Agent.

MANDATORY REDEMPTION OF BONDS

The County shall redeem those C-75 Bonds maturing on November 1, , November 1, and November 1, , prior to maturity in direct order of maturity and within a maturity as selected by the Paying Agent by lot, on November 1 of each year, as set forth below, in the respective principal amounts listed opposite

4 each such year, at a redemption price equal to 100% of the principal amount thereof plus interest accrued thereon to the date fixed for redemption.

C-75 Bonds Stated C-75 Bonds Stated C-75 Bonds Stated to Mature on November 1 to Mature on November 1 to Mature on November 1 Year Principal Amount Year Principal Amount Year Principal Amount

______(1) Final maturity. (1) Final maturity. (1) Final maturity.

The County shall redeem those C-76 Bonds maturing on November 1, , November 1, and November 1, , prior to maturity in direct order of maturity and within a maturity as selected by the Paying Agent by lot, on November 1 of each year, as set forth below, in the respective principal amounts listed opposite each such year, at a redemption price equal to 100% of the principal amount thereof plus interest accrued thereon to the date fixed for redemption.

C-76 Bonds Stated C-76 Bonds Stated C-76 Bonds Stated to Mature on November 1 to Mature on November 1 to Mature on November 1 Year Principal Amount Year Principal Amount Year Principal Amount

______(1) Final maturity. (1) Final maturity. (1) Final maturity.

NOTICE OF REDEMPTION

Any redemption of Bonds shall be upon notice effected by depositing a copy of the redemption notice in first class mail, addressed to the Registered Owners of Bonds to be redeemed, not less than thirty (30) days and not more than sixty (60) days prior to the date fixed for redemption, at the addresses shown on the registration books kept by the Paying Agent on the fifth business day preceding the date selected for the mailing of such redemption notice; provided, however, that failure to give such notice by mailing, or any defect therein or in the mailing thereof, shall not affect the validity of any proceeding for redemption of other Bonds called for redemption as to which proper notice has been given.

If the redemption date for any Bonds shall not be a Business Day, then the date for payment of the principal, premium, if any, and interest upon such redemption shall be the next succeeding Business Day, and payment on such date shall have the same force and effect as if made on the nominal date of redemption.

SECURITY FOR THE BONDS

GENERAL OBLIGATIONS

The Bonds will be general obligations of the County, issued pursuant to the Ordinance, and in accordance with the terms of the Act. The Ordinance contains an irrevocable pledge of the County’s full faith, credit and taxing power for the payment of the principal of and interest on the Bonds. All taxable real property in the County is subject to ad valorem taxation without limitation as to rate or amount to pay debt service on the Bonds.

5

CERTAIN COVENANTS AND AGREEMENTS

The Ordinance contains a covenant with the Registered Owners that the County (i) shall include in its budget for each fiscal year the amount of the debt service charges on the Bonds payable in each such fiscal year; (ii) shall appropriate such amounts from its general revenues for the payment of such debt service charges; and (iii) shall duly and punctually pay or cause to be paid from the sinking fund for the Bonds (the “Sinking Fund”), or any other of its revenues or funds, the principal of and interest on the Bonds on the dates, and at the places and in the manner stated in the Bonds. The County has pledged its full faith, credit and taxing power for such budgeting, appropriation and payment. Each year the County adopts an ordinance which allocates a specific amount of millage for the payment of debt service charges on all of its outstanding general obligation bonds. Tax revenues are deposited into a separate debt service fund solely for the payment of principal and interest on those outstanding general obligation bonds. The Act provides that this covenant is specifically enforceable.

DEFAULT AND REMEDIES

The Act specifically prescribes certain remedies to the Registered Owners upon the occurrence of the following defaults. If the County fails to make adequate provision in its budget for any fiscal year for the sums payable on the Bonds, or any other series of bonds outstanding, or if the County fails to appropriate or pay the money necessary in such year for the payment of maturing principal of and interest on the Bonds (or any other series of bonds outstanding), or any sinking fund obligation for the Bonds (or any other series of bonds outstanding), then any Registered Owner (or owner of any such other obligation) may bring suit in the Court of Common Pleas of Allegheny County and request the court to issue a writ of mandamus directing the Treasurer of the County to pay into the appropriate sinking fund the first tax money or other available revenues thereafter received in such fiscal year by the Treasurer, in proportion to the debt service requirements of each series of bonds outstanding, until the sum on deposit in each sinking fund shall equal the money that should have been budgeted or appropriated for such bonds.

If the County fails or neglects to pay or cause to be paid the interest on or principal of the Bonds as the same become due and payable, and such failure continues for thirty (30) days, any Registered Owner has the right to recover the amount due in a civil action in the Court of Common Pleas of Allegheny County. Under the Act, a judgment obtained in such action would be on a parity with all other general obligation debt with respect to money next received into the County Treasury.

In lieu of the remedies heretofore described, upon a default in payment of the principal of or interest on the Bonds after the same shall become due, and if such default continues for thirty (30) days, or if the County fails to comply with any provision of the Bonds or the Ordinance, the Registered Owners of twenty-five percent (25%) in aggregate principal amount of the Bonds then outstanding may appoint a trustee by filing the instruments prescribed by Section 8263 of the Act with the Allegheny County Department of Real Estate. The trustee, upon its appointment, will then represent all Registered Owners and will have the power, upon being furnished with satisfactory indemnity, to take various actions, and the taking of such actions will preclude similar action whether previously or subsequently initiated by individual Registered Owners. The actions which such trustee may undertake include: (i) commencing a lawsuit to enforce all rights of the Registered Owners; (ii) bringing suit on the Bonds without the necessity for producing the Bonds, and with the same effect as a suit by any Registered Owner; (iii) petitioning the court to levy the amount due upon all taxable real estate and other property subject to ad valorem taxation in the County, in proportion to the value thereof assessed for tax purposes, and such trustee may collect or cause the County to collect such assessment by foreclosure if not paid on demand; (iv) commencing a suit in equity to enjoin any acts or things which may be unlawful and are in violation of the rights of the Registered Owners; and (v) after thirty (30) days prior notice to the County, declaring the unpaid principal of all the outstanding Bonds then in default immediately due and payable.

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BOOK-ENTRY-ONLY SYSTEM

THE INFORMATION PROVIDED UNDER THIS CAPTION CONCERNING DTC AND DTC’s BOOK-ENTRY SYSTEM HAS BEEN PROVIDED BY DTC. NO REPRESENTATION IS MADE BY THE COUNTY OR THE UNDERWRITERS AS TO THE ACCURACY OR ADEQUACY OF SUCH INFORMATION PROVIDED BY DTC OR AS TO THE ABSENCE OF MATERIAL ADVERSE CHANGES IN SUCH INFORMATION SUBSEQUENT TO THE DATE HEREOF.

The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered Bond certificate will be issued for each maturity (and separate stated interest rate within a maturity) of each separate series of the Bonds set forth on the inside front cover page of this Official Statement, each in the aggregate principal amount of such maturity (or separate stated interest rate within a maturity), and will be deposited with DTC.

DTC, the world’s largest depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has Standard & Poor’s rating of: AA+. The DTC rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about the DTC can be found at www.dtcc.com and www.dtc.org.

Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry only system for the Bonds is discontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds. DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect

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Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners, in the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of the notices be provided directly to them.

Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity of a particular series of the Bonds are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such series and maturity to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC’s Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the County as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts such bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Payments of principal of and interest on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Paying Agent on the payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC nor its nominee, the Paying Agent or the County, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Paying Agent. Disbursement of such payments to Direct Participants will be the responsibility of DTC and disbursement of such payments to the Beneficial Owners will be the responsibility of the Direct and Indirect Participants.

DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the County or the Paying Agent. Under such circumstances, in the event that a successor securities depository is not required under the Ordinance or obtained, Bond certificates are required to be printed and delivered in accordance with the Ordinance.

The County may decide to discontinue use of the system of book-entry-only transfers through DTC (or successor securities depository). In that event Bond certificates will be printed and delivered to DTC.

The above information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the County believes to be reliable but neither the County nor any of the Underwriters takes any responsibility for the accuracy thereof.

NEITHER THE COUNTY NOR THE PAYING AGENT WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO PARTICIPANTS, BENEFICIAL OWNERS OR OTHER NOMINEES OF SUCH BENEFICIAL OWNERS FOR (1) SENDING TRANSACTION STATEMENTS; (2) MAINTAINING, SUPERVISING OR REVIEWING, OR THE ACCURACY OF, ANY RECORDS MAINTAINED BY DTC OR ANY PARTICIPANT OR OTHER NOMINEES OF SUCH BENEFICIAL OWNERS; (3) PAYMENT OR THE TIMELINESS OF PAYMENT BY DTC TO ANY PARTICIPANT, OR BY ANY PARTICIPANT OR OTHER NOMINEES OF BENEFICIAL OWNERS TO ANY BENEFICIAL OWNER, OF ANY AMOUNT DUE IN RESPECT OF THE PRINCIPAL OF OR REDEMPTION PREMIUM, IF ANY, OR INTEREST ON BOOK-

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ENTRY BONDS; (4) DELIVERY OR TIMELY DELIVERY BY DTC TO ANY PARTICIPANT, OR BY ANY PARTICIPANT OR OTHER NOMINEES OF BENEFICIAL OWNERS TO ANY BENEFICIAL OWNERS, OF ANY NOTICE (INCLUDING NOTICE OF REDEMPTION) OR OTHER COMMUNICATION WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE ORDINANCE TO BE GIVEN HOLDERS OR OWNERS OF BOOK-ENTRY BONDS; (5) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE EVENT OF ANY PARTIAL REDEMPTION OF BOOK-ENTRY BONDS; OR (6) ANY ACTION TAKEN BY DTC OR ITS NOMINEE AS THE REGISTERED OWNER OF BOOK-ENTRY BONDS.

FINANCING PLAN

The proceeds from the sale of the C-75 Bonds will be used for the purposes of (i) the refunding of certain outstanding general obligation indebtedness of the County as described in “THE REFUNDING PROGRAM” below, and (ii) paying the costs of issuing the C-75 Bonds.

The proceeds from the sale of the C-76 Bonds will be used for the purposes of (i) providing funds for various capital projects approved in the Allegheny County Capital Budget; and (ii) paying the costs of issuing the C-76 Bonds.

THE REFUNDING PROGRAM

A portion of the proceeds of the C-75 Bonds will be applied to refund the following general obligation bonds previously issued by the County (the “Refunded Bonds”):

Refunded Series Refunded Maturities Call Date Year Amount

Certain series of the Refunded Bonds (the “Advance Refunded Bonds”) will be refunded by means of the irrevocable deposit of moneys in escrow with the paying agent for the Advance Refunded Bonds and the investment of such moneys in United States Treasury securities that shall mature and pay interest at such times and in such amounts as shall be sufficient to pay the principal and redemption price of, and interest on, the Advance Refunded Bonds when due to and including the date the Advance Refunded Bonds have been irrevocably called for redemption. The mathematical calculations establishing the sufficiency of such deposit of moneys and escrow investments shall be verified by AMTEC Corporation, of Avon, Connecticut, and Ross & Company, PLLC (an independent Certified Public Accountant), of Louisville, Kentucky, as described under “VERIFICATION OF MATHEMATICAL CALCULATIONS” herein.

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ESTIMATED SOURCES AND USES

The estimated sources and uses of the proceeds of the Bonds are as follows:

C-75 Bonds C-76 Bonds Total

Sources of Funds

Par Amount of the Bonds Net Original Issue Premium ______

Total Sources ______

Uses of Funds

Deposit to the Project Fund Refunding Deposits Costs of Issuance (1) ______

Total Uses ______

(1) Includes Underwriters' discount, legal fees and expenses, printing costs, paying agent fees, financial advisory fees and expenses, CUSIP charges, auditor fees, accounting and verification fees, rating agency fees, disclosure dissemination agent fees, and miscellaneous expenses.

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DEBT SERVICE SCHEDULE

The following table sets forth the aggregate debt service requirements of the County for the fiscal years ended December 31, 2016 through December 31, 2040:

Fiscal Year Series C-75 Series C-76 Ending Existing Aggregate December 31 Debt Service Principal Interest Principal Interest Debt Service 2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040 Total

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SUMMARY OF DIRECT AND OVERLAPPING DEBT

County of Allegheny Net Direct Debt (1) $822,320,000 City of Pittsburgh (2) $481,445,000 Cities of Clairton, Duquesne and McKeesport (2) $58,527,264 Various Townships and Boroughs (2) $801,666,093 Various School District and School District Authorities (2) $2,900,482,200 Community College of Allegheny County (3) $75,450,686 Total Direct and Overlapping Debt $5,139,891,243

Total Direct and Overlapping Debt Ratio to market value...... 6.69% Per capita amount...... $4,177.21

(1) Source: Allegheny County Controller’s Office. As of April 30, 2016. Includes non-electoral debt and lease rental debt. Does not include the Bonds. (2) Source: PA Dept. of Community & Economic Development. As of June 1, 2016. (3) Source: Community College of Allegheny CountyPA Dept. of Community & Economic Development. As of June 30, 2015.

FINANCIAL STATEMENTS

The financial statements of the County as of and for the year ended December 31, 2015, appearing in Appendix D to this Official Statement, have been audited by Zelenkofske Axelrod, LLC, Pittsburgh, Pennsylvania, independent public accountants, as stated in their reports appearing herein.

There can be no assurance that the financial results achieved in the future will be similar to the historical results. Such future results will vary from historical results, and actual variations may be material.

The County represents that, as of the date hereof, there have been no material adverse changes in the County’s financial condition, as set forth in Appendix D of this Official Statement, since December 31, 2015.

LITIGATION AND OTHER CONTINGENT LIABILITIES

The following is a description of certain material legal proceedings and claims involving the County, other than routine litigation incident to the performance of its governmental and other functions, as well as certain other litigation arising out of alleged constitutional violations, civil actions, violations of law or other proceedings. The ultimate outcome of the proceedings and claims described below is not currently predictable. An adverse outcome could have a material effect on the County’s financial condition, but the County does not believe that such an adverse outcome would materially adversely affect the County’s ability to pay debt service on its bonds.

1. Allegheny County Jail Lawsuits. Approximately twenty-four (24) different lawsuits filed in either state or federal court or claims of potential lawsuits have been filed against the County arising out of alleged

12 incidents or actions at the County’s Jail. Five (5) lawsuits/notices of claim were filed by the estates of certain inmates. In these cases, the plaintiffs allege violations of constitutional rights stemming from deaths of inmates during their period of incarceration. Nineteen (19) lawsuits were filed by former or current jail inmates that allege, in part, civil rights violations during the period of incarceration at the County’s Jail.

2. Employment Lawsuits. The County is a named defendant in approximately fifteen (15) different lawsuits filed in either the Court of Common Pleas of Allegheny County or the U.S. District Court for the Western District of Pennsylvania. The cases filed in federal court allege, in part, violations of federal constitutional rights based upon race, gender, political affiliation, and national origin, or violations of the Americans with Disabilities Act, Age Discrimination in Employment Act, Family Medical Leave Act, Uniform Services Employment and Reemployment Rights Act and/or the Fair Labor Standards Act. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in these matters.

3. Personal Injury and Property Damage Suits and Claims. The County has received a number of notices of potential claims for personal injury and/or property damage arising out of incidents on County roadways or properties or alleged incidents caused by County employees. Additionally, the County has been named as a defendant in approximately ten (10) lawsuits filed in the Allegheny County Court of Common Pleas alleging personal injury or property damages. All of the cases involve claims in excess of twenty-five thousand dollars. The County is self-insured for such claims and has the protection of the limits of liability under the state’s Political Subdivision Tort Claims Act.

4. Carol Mazzaro Nicolette. Plaintiff alleges violation of her constitutional rights under the Fifth, Ninth and Fourteenth Amendments to the U.S. Constitution in regard to valuation and taxation of real property located in the vicinity of Pittsburgh International Airport. Preliminary objections were filed in this matter and await judicial determination. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in this matter.

5. Estate of Arthur Henry Fix. Decedent was a former County employee who worked for the Department of Maintenance in the late 1980s. The Estate claims the decedent was exposed to asbestos in the County workplace. The decedent was first diagnosed with mesothelioma in 2014. Preliminary objections were in filed in this matter and the Court of Common Pleas denied the entry of a demurrer based upon the immunity of the County under the Political Subdivisions Tort Claims Act, but sustained all other preliminary objections. An application to amend the interlocutory order was denied and petition for review was filed and accepted in Commonwealth Court. The County recently filed a brief and reproduced record according to the briefing scheduled established by Commonwealth Court. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in this matter.

6. Estate of Iesha Tang. Estate brought a wrongful death claim in the Allegheny County Court of Common Pleas alleging negligent maintenance or failure to provide adequate warning on ramp leading to the Mansfield Bridge located in Glassport, Pennsylvania. The County was voluntarily dismissed from the lawsuit subject to reinstatement pending further discovery. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in this matter.

7. Municipal Authority of Robinson. The County entered into a settlement agreement with the Municipal Authority of Township of Robinson and contractor regarding the construction of a retaining wall on Campbell’s Run Road. The agreement required monitoring of the construction and included a provision indemnifying the Municipal Authority of the Township of Robinson for damage to an existing nearby sanitary sewer line. The sewer line was subsequently damaged by contractor excavation activities in November, 2015. The County is monitoring the situation. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in this matter, however, it is believed that the contractor’s insurance carrier will provide coverage for the damage to the Authority’s line.

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8. In re Condemnation R&P Mistick Holdings, LLC. The County filed a declaration of taking for property owned by R&P Mistick Holdings, LLC to be used for the South Tenth Street Bridge project, but the County has been prevented from paying just compensation to the condemnee because condemnee has been unable to secure a release of liens from the bank which holds either a mortgage or judgment against the property. The parties are actively involved in negotiations in this matter. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in this matter.

9. Doe, Jane. Jane Doe, a minor, by and through her natural guardian, B.W., alleges she received a note passed to her by a correction officer seeking sexual contact while she was incarcerated at Shuman Detention Center. Plaintiff claims intentional infliction of emotional distress, negligence, negligent hiring, and vicarious liability. This matter was recently received and an appropriate response is being prepared. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in these matters.

10. Hatfield, Alicia. Plaintiff in a suit filed in U.S. District Court alleges civil rights violations and intentional infliction of emotional distress relating to the removal of children from plaintiff’s custody. A motion to dismiss was filed in this matter and awaits judicial determination. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in these matters.

11. IRS claim. The U.S. Internal Revenue Service performed and completed an employment tax audit of the County for the years 2009 through 2011. Upon completion of the audit, the IRS proposed adjustments to the County’s filings for these years based upon an alleged failure to properly withhold applicable taxes in the following instances: settlements of lawsuits against the County; employer-provided clothing; employer-provided vehicles; and payments made to certain contractors and other individuals, most notably constables, medical directors, dentists, and nurses. As a result of these adjustments, the IRS is asserting a claim against the County for additional income and employment taxes in the amount of $1,927,589. Approximately, $1,576,220 of the IRS’ claim against the County is based upon its contention that constables are employees of the County and that the County should have been withholding taxes on all fees paid to constables. The County has accepted the IRS’ audit determinations regarding tax withholding for certain legal settlements entered by the County with various litigants during the stated tax years and certain wage characterizations and has paid $43,412 in additional taxes to the IRS. The County, however, vigorously disputes the remaining adjustments; in particular, the IRS’ assertion that the constables are County employees and that the County is obligated to withhold and pay taxes based upon fees paid to constables. To address the outstanding amount of the IRS’ claim for additional taxes, the County retained special tax counsel and filed an administrative appeal. An appeal hearing was held by conference call. The County received a settlement offer from the Appeals Hearing Officer; however, the County rejected the offer as insufficient. The County is continuing to litigate its case in Tax Court regarding worker classification for constables, medical directors, dentists, and nurses. The County, through its special tax counsel, is currently in the process of negotiating a possible settlement of the claim with the IRS and is reasonably confident that it will be able to resolve these issues on favorable terms and significantly reduce any potential audit adjustments.

12. A.J. Demour/Allegheny Construction. General contractor has filed delay and additional costs claim with the Department of Public Works related to the morgue parking garage. A separate claim for change in project completion date related to millwork was also filed by the general contractor. Public Works remains in negotiations with the general contractor. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in this matter.

13. Leffler, Anthony J. and Barbara. In a suit filed in Allegheny County Common Pleas Court, a Port Authority employee alleges violations of his constitutional rights related to actions by Department of Human Services, and his arrest on charges of unlawful restraint, recklessly endangering another person, indecent assault, endangering the welfare of children, and corruption of minors. The complaint was recently filed and the County is preparing an appropriate response. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome in these matters.

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LEGAL MATTERS

All legal matters incident to the authorization of issuance of the Bonds are subject to the receipt of an approving legal opinion from Clark Hill PLC, Pittsburgh, Pennsylvania, Bond Counsel. The proposed form of the opinion is included as Appendix C to this Official Statement. Certain legal matters will be passed upon for the County by its Solicitor, Andrew F. Szefi, Esquire, Pittsburgh, Pennsylvania and for the Underwriters by Reed Smith LLP, Pittsburgh, Pennsylvania.

FINANCIAL ADVISOR

BNY Mellon Capital Markets, LLC (“BNY”) is serving as financial advisor to the County in connection with the issuance of the Bonds. BNY has assisted the County in matters relating to the planning, structuring and issuance of the Bonds and has provided the County with other financial advice. BNY is not obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement. BNY will receive a fee for its services with regard to the issuance of the Bonds.

VERIFICATION OF MATHEMATICAL CALCULATIONS

AMTEC Corporation, of Avon, Connecticut, and Ross & Company, PLLC (an independent Certified Public Accountant), of Louisville, Kentucky (together, the “Verification Agent”), have verified from the information provided to them the mathematical accuracy, as of the date of delivery of the Bonds, of (i) the computations contained in the provided schedules to determine that the amount to be in escrow will be sufficient to pay, when due, the principal or redemption price of and interest on the Advance Refunded Bonds, and (ii) the mathematical computations supporting the conclusion of Bond Counsel that interest on the Bonds is excluded from gross income of the owners thereof for federal income tax purposes. The Verification Agent will express no opinion on the assumptions provided to them.

TAX MATTERS

FEDERAL TAX EXEMPTION In the opinion of Bond Counsel, assuming compliance with certain tax covenants of the County, interest on the Bonds is excluded from gross income of the owners of the Bonds for federal income tax purposes under existing law, as currently enacted and construed. Interest on the Bonds is not an item of tax preference under the Internal Revenue Code of 1986, as amended (the “Code”), for purposes of determining the federal alternative minimum tax imposed on individuals and corporations. Interest on a Bond held by a corporation (other than an S corporation, regulated investment company, real estate investment trust or real estate mortgage investment conduit) may be indirectly subject to alternative minimum tax because of its inclusion in the earnings and profits of the corporate holder. Interest on a Bond held by a foreign corporation may be subject to the branch profits tax imposed by the Code. Ownership of the Bonds may give rise to collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, S corporations with Subchapter C earnings and profits, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry the Bonds. Bond Counsel expresses no opinion as to any such collateral federal income tax consequences. Purchases of the Bonds should consult their own tax advisors as to collateral federal income tax consequences. The initial public offering price of Bonds of certain maturities may be greater than the amount payable on such Bonds at maturity. Bond Counsel expresses no opinion herein with respect to the treatment of such excess of offering price over amounts payable at maturity (“original issue premium”). Investors should seek advice thereon from their own tax advisor.

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The initial public offering price of the Bonds of certain maturities may be less than the amount payable at maturity. The difference between the initial public offering price and the amount payable at maturity constitutes original issue discount. Bond Counsel is of the opinion that the appropriate portion of such original issue discount allocable to the original and each subsequent holder will, upon sale, exchange, redemption, or payment at maturity, be treated as interest and excluded from gross income for federal income tax purposes to the same extent as the stated interest on the Bonds. The Code sets forth certain requirements which must be met subsequent to the issuance and delivery of the Bonds for interest thereon to remain excludable from the gross income of the owners of the Bonds for federal income tax purposes. The County has covenanted in the Ordinance to comply with such requirements. Noncompliance with such requirements may cause the interest on the Bonds to be includible in the gross income of the owners of the Bonds for federal income tax purposes, retroactive to the date of issue of the Bonds. The opinion of Bond Counsel assumes compliance with such covenants, and Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring (or not occurring) after the date of issuance of the Bonds may affect the tax status of interest on the Bonds. Current and future legislative proposals, if enacted into law, clarification of the Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation, or to be subject to or not be exempted from state income taxation, or otherwise prevent the owners of the Bonds from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals, clarification of the Code or court decisions may also affect the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation or other collateral tax consequences, as to which Bond Counsel expresses no opinion. The disclosures and opinions expressed herein are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Bonds, and no opinion is expressed as of any date subsequent thereto or with respect to any proposed or pending legislation, regulatory initiatives or litigation.

COMMONWEALTH OF PENNSYLVANIA Bond Counsel is of the opinion that, under the laws of the Commonwealth of Pennsylvania, as currently enacted and construed, interest on the Bonds is exempt from Pennsylvania personal income tax and Pennsylvania corporate net income tax.

BOND COUNSEL OPINIONS Bond Counsel’s opinions are based on existing law, which is subject to change. Such opinions are further based on factual representations made to Bond Counsel as of the date thereof. Bond Counsel assumes no duty to update or supplement its opinions to reflect any facts or circumstances that may thereafter come to Bond Counsel’s attention, or to reflect any changes in law that may thereafter occur or become effective. Moreover, Bond Counsel’s opinions are not a guarantee of a particular result, and are not binding on the Internal Revenue Service or the courts; rather, such opinions represent Bond Counsel’s professional judgment based on its review of existing law and in reliance on the representations and covenants that it deems relevant to such opinions.

OTHER TAX CONSEQUENCES Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds, which may include original issue discount, original issue premium, purchase at a market discount or at a premium, taxation upon sale, redemption or other disposition and various withholding requirements and any pending or proposed federal tax legislation or litigation which may result in tax consequences. UNDERWRITING

The Bonds are being purchased by the underwriters set forth on the cover page hereof (collectively, the “Underwriters”) for whom PNC Capital Markets LLC is acting as representative (the “Representative”) pursuant 16 to a bond purchase agreement (the “Bond Purchase Agreement”) between the County and the Representative. The Underwriters have agreed to purchase the Bonds for an aggregate purchase price of $______(representing the aggregate principal amount of the Bonds plus net original issue premium of $______, less underwriters’ discount of $______). The obligation of the Underwriters to pay for the Bonds is subject to certain terms and conditions set forth in the Bond Purchase Agreement. The Bond Purchase Agreement provides that the Underwriters will purchase all the Bonds, if any are purchased. Any obligations of the Underwriters are the sole obligation of the Underwriters and do not create any obligations on the part of any affiliates of the Underwriters, including any affiliated bank.

Wells Fargo Securities is the trade name for certain securities-related capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, National Association, which conducts its municipal securities sales, trading and underwriting operations through the Wells Fargo Bank, NA Municipal Products Group, a separately identifiable department of Wells Fargo Bank, National Association, registered with the Securities and Exchange Commission as a municipal securities dealer pursuant to Section 15B(a) of the Securities Exchange Act of 1934. Wells Fargo Bank, National Association, acting through its Municipal Products Group ("WFBNA"), one of the underwriters of the Bonds, has entered into an agreement (the "Distribution Agreement") with its affiliate, Wells Fargo Advisors, LLC ("WFA"), for the distribution of certain municipal securities offerings, including the Bonds. Pursuant to the Distribution Agreement, WFBNA will share a portion of its underwriting or remarketing agent compensation, as applicable, with respect to the Bonds with WFA. WFBNA also utilizes the distribution capabilities of its affiliate Wells Fargo Securities, LLC (“WFSLLC”), for the distribution of municipal securities offerings, including the Bonds. In connection with utilizing the distribution capabilities of WFSLLC, WFBNA pays a portion of WFSLLC’s expenses based on its municipal securities transactions. WFBNA, WFSLLC, and WFA are each wholly-owned subsidiaries of Wells Fargo & Company.

Siebert Brandford Shank & Co., L.L.C. (“SBS”) has entered into an agreement with Muriel Siebert & Co. for the retail distribution of certain securities offerings, at the original issue prices. Pursuant to said agreement, if applicable to the Bonds, Muriel Siebert & Co. will purchase Bonds at the original issue price less the selling concession with respect to any Bonds that Muriel Siebert & Co. sells. SBS will share a portion of its underwriting compensation with Muriel Siebert & Co.

The Underwriters may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into investment trusts) and others at prices lower than the initial offering prices set forth on the inside cover page hereof.

CONTINUING DISCLOSURE UNDERTAKING

In order to provide certain continuing disclosure with respect to the Bonds in accordance with Rule 15c2- 12 of the United States Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time (“Rule 15c2-12”), the County has entered into a Disclosure Dissemination Agent Agreement (the “Disclosure Agreement”) for the benefit of the holders of the Bonds with Digital Assurance Certification, L.L.C. (“DAC”), under which the County has designated DAC as Disclosure Dissemination Agent (the “Disclosure Dissemination Agent”) and under which the County will prepare an annual report (the “Annual Report”) to be filed by the Disclosure Dissemination Agent with the Municipal Securities Rulemaking Board (the “MSRB”) through the MSRB’s Electronic Municipal Market Access (EMMA) in such electronic format as is prescribed by the MSRB and accompanied by such identifying information as prescribed by the MSRB, not later than 180 days following the end of each fiscal year of the County, beginning with the fiscal year ending December 31, 2016. The Annual Report will contain the following financial information and operating data with respect to the County which the County customarily prepares and makes public:

(a) the County’s audited general purpose financial statements, prepared in accordance with generally accepted accounting principles in effect from time to time, and

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(b) financial information and operating data (excluding any management discussion) of the type found in this Official Statement in Appendix A under the captions “COUNTY FINANCIAL MANAGEMENT, BUDGETING AND CONTROLS – 2011-2015 Schedule of Operations” “MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATING FUNDS—Summary of Operations, Fiscal Years 2011-2015” (and all tables thereunder)” “SOURCES OF ALLEGHENY COUNTY REVENUE,” “ALLEGHENY COUNTY PROPERTY ASSESSMENTS,” “COUNTY OF ALLEGHENY, PENNSYLVANIA CERTIFIED REAL ESTATE ASSESSED VALUATION,” “COUNTY OF ALLEGHENY, PENNSYLVANIA Real Property Tax Levies and Collections, Assessed Value of Taxable Property – Last Five Fiscal Years 2011-2015,” “COUNTY OF ALLEGHENY, PENNSYLVANIA TWENTY-FIVE LARGEST REAL PROPERTY TAXPAYERS 2016,” “PENSION PLAN,” and “STATEMENT OF INDEBTEDNESS”.

In addition, the County will undertake to provide written notice of the occurrence of any of the following events (each, a “Notice Event”) with respect to the Bonds in sufficient time to enable DAC to file such notice with the MSRB using EMMA within ten (10) business days after the occurrence of such event:

1) principal and interest payment delinquencies; 2) non-payment related defaults, if material; 3) unscheduled draws on debt service reserves reflecting financial difficulties; 4) unscheduled draws on credit enhancements reflecting financial difficulties; 5) substitution of credit or liquidity providers, or their failure to perform; 6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the Bonds; 7) modifications to rights of Bondholders, if material; 8) Bond calls, if material, and tender offers; 9) defeasances; 10) release, substitution, or sale of property securing repayment of the Bonds; 11) rating changes; 12) bankruptcy, insolvency, receivership or similar event of the County; 13) the consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and 14) appointment of a successor or additional trustee or the change of name of a trustee, if material.

The County will also agree to file in a timely manner, to the MSRB using EMMA, notice of its failure to provide the Annual Report and audited financial statements on or before the date specified in the Disclosure Agreement.

No Bondholder may institute any suit, action or proceeding at law or in equity (“Proceeding”) for the enforcement of the Disclosure Agreement or for any remedy for breach thereof, unless such Bondholder shall have filed with the County Solicitor evidence of ownership and a written notice of and request to cure such breach, and the County shall have refused to comply within a reasonable time. All Proceedings shall be instituted only as specified herein, in the Federal or State courts located in the County, and for the equal benefit of all holders of the outstanding Bonds benefited by the same or a substantially similar covenant and no remedy shall be sought or granted other than specific performance of the covenant at issue.

Other than as described herein, the County has not knowingly failed to comply, in any material respect, with its previous continuing disclosure obligations in the last five years. The County filed its audited financial statements and financial information and operating data for the fiscal year ended December 31, 2012 in

18 compliance with the Rule on May 15, 2013. The County failed to include in that submission the CUSIPs related to the County’s Adjustable Rate Demand General Obligation Refunding Bonds, Series C-50 and Adjustable Rate Demand General Obligation Bonds, Series C-51. On January 31, 2014, the County discovered this oversight and corrected it. The County did not file a listed event notice regarding the failure to file. In addition, the County has not filed notices of insured rating changes for its outstanding insured bonds for any of the past five fiscal years. On June 12, 2014, the County filed insurer rating change information and a notice of failure to file insured rating changes to EMMA.

DAC provides its clients with automated filing of rating events, templates consolidating all outstanding filing requirements that accompany reminder notices of annual or interim mandatory filings, review of all template filings by professional accountants, as well as a time and date stamp record of each filing along with the unique ID from EMMA accompanying the copy of the actual document filed. DAC also offers its clients a series of training webinars each year qualified for 15-20 NASBA certified CPE credits, as well as model secondary market compliance policies and procedures. The Disclosure Dissemination Agent has only the duties specifically set forth in the Disclosure Agreement. The Disclosure Dissemination Agent’s obligation to deliver the information at the times and with the contents described in the Disclosure Dissemination Agreement is limited to the extent the County has provided such information to the Disclosure Dissemination Agent as required by the Disclosure Agreement. The Disclosure Dissemination Agent has no duty with respect to the content of any disclosures or notice made pursuant to the terms of the Disclosure Agreement. The Disclosure Dissemination Agent has no duty or obligation to review or verify any information in the Annual Report, audited financial statements, notice of Notice Event or any other information, disclosures or notices provided to it by the County and shall not be deemed to be acting in any fiduciary capacity for the County, the Holders of the Bonds or any other party. The Disclosure Dissemination Agent has no responsibility for the County’s failure to report to the Disclosure Dissemination Agent a Notice Event or a duty to determine the materiality thereof. The Disclosure Dissemination Agent shall have no duty to determine or liability for failing to determine whether the County has complied with the Disclosure Agreement. The Disclosure Dissemination Agent may conclusively rely upon certifications of the County at all times.

RATINGS

Standard & Poor’s Ratings Services (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”) have assigned their municipal bond ratings of “___” and “___”, respectively, to the Bonds. Generally, rating agencies base their ratings on information and materials furnished to them and on investigations, studies and assumptions made by them. Such a rating reflects only the view of the rating agency assigning the same, and an explanation of the significance of such rating may be obtained only from such rating agency. There is no assurance that a particular rating, once assigned, will be maintained for any given period of time or that it may not be revised downward or withdrawn entirely by the rating agency assigning the same if, in its judgment, circumstances so warrant. A downward change in or withdrawal of a rating may have an adverse effect on the market price of the rated bonds.

The ratings are neither a “market” rating nor a recommendation to buy, sell or hold the Bonds and the ratings and the Bonds should be evaluated independently.

Neither the Underwriters, nor the Financial Advisor nor the County have undertaken any responsibility after issuance of the Bonds to oppose a revision or withdrawal of any rating assigned to the Bonds.

RELATIONSHIP OF CERTAIN PARTIES

In its normal course of business, the Underwriters, the Financial Advisor and the Paying Agent and/or their respective affiliates may have credit, investment banking, or other financial relationships with the County from time to time, for which they received or will receive customary fees and expenses. PNC Capital Markets LLC is acting as Senior Managing Underwriter with respect to the Bonds, and PNC Bank, National Association, its affiliate, has existing credit and other financial relationships with the County.

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RBC Capital Markets, LLC, serving as a member of the underwriting syndicate for the Bonds, and its affiliates are full-service financial institutions engaged in various activities that may include securities trading, commercial and investment banking, municipal advisory, brokerage, and asset management. In the ordinary course of business, RBC Capital Markets, LLC and its affiliates may actively trade debt and, if applicable, equity securities (or related derivative securities) and provide financial instruments (which may include bank loans, credit support or interest rate swaps). RBC Capital Markets, LLC and its affiliates may engage in transactions for their own accounts involving the securities and instruments made the subject of this securities offering or other offering of the County. RBC Capital Markets, LLC and its affiliates may make a market in credit default swaps with respect to municipal securities in the future. RBC Capital Markets, LLC and its affiliates may also communicate independent investment recommendations, market color or trading ideas and publish independent research views in respect of this securities offering or other offerings of the County.

CONCLUDING STATEMENT

All estimates, assumptions, statistical information and other statements contained herein, while taken from sources considered to be reliable, are not guaranteed by the Underwriters. So far as any statement herein includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they are intended merely as such and not as representations of fact.

The information contained herein should not be construed as representing all conditions affecting the County or the Bonds.

The agreements of the County are set forth in such documents, and the information assembled herein is not to be construed as a contract with the owners of the Bonds.

The contents hereof, including the cover page and the appendices hereto, are all part of this Official Statement. The distribution of this Official Statement has been authorized by the County.

COUNTY OF ALLEGHENY

By: William D. McKain, CPA, County Manager

By: Chelsa Wagner, Controller

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APPENDIX A

COUNTY OF ALLEGHENY

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COUNTY OF ALLEGHENY

INTRODUCTION

STRUCTURE OF GOVERNMENT

The County is the second largest county in Pennsylvania and the City of Pittsburgh is the most populous city in the County. Prior to January 3, 2000, the County was governed by a three-person Board of County Commissioners. On January 3, 2000, the governance of the County transitioned, under the provisions of a new Home Rule Charter (the "Charter"), from the Commission form of government to government by an elected Chief Executive (the "Chief Executive"), a fifteen-member County Council (the "County Council") and an appointed professional Manager (the "Manager"). The County’s change to home rule under the Charter was intended to create a more efficient, effective, representative and accountable County government that would improve the delivery of services and promote economic development in the County.

County Executive. The executive and administrative power of the County is vested in the Executive Branch, consisting of the Chief Executive, the Manager, the Law Department and other departments and agencies established in the County’s Administrative Code. The Chief Executive’s powers and duties include, among others: the approval or veto of any ordinance or resolution adopted by County Council; the enforcement of ordinances and resolutions of the County and the provisions of the Charter; negotiating, awarding and signing, or causing to be negotiated, awarded or signed on behalf of the County, all contracts, agreements and other instruments, except as provided in the Charter; controlling and being accountable for the administration of all departments and agencies except those specifically placed under the jurisdiction of any other officer by law or by the Charter; submission of ordinances, resolutions and other related matters to the County Council; and the power to appoint the Manager and County Solicitor, with the approval of the County Council. The Chief Executive also makes appointments, subject to the approval of the County Council, with respect to most of the County’s administrative bodies, but shares such appointive power, in certain cases, with other governmental units.

Rich Fitzgerald, the County’s elected Chief Executive, has both extensive business experience and organizational leadership. Mr. Fitzgerald was sworn into office as Allegheny County's 3rd Chief Executive on January 3, 2012. He first became active in government when his children began school. In 1998, he worked on the campaign to change the form of government in Allegheny County, and in 1999 ran for one of the district council seats on the newly-formed County Council. Mr. Fitzgerald represented District 11 from 2000-2011, and served from 2004-2011 as President of Council.

During his time on County Council, Mr. Fitzgerald worked to reform government and save taxpayers money by eliminating a number of elected row offices. Through his legislation and leadership, Allegheny County now has a Homestead Exemption for property owners and a Human Relations Commission. He also worked to improve the way Allegheny County does business. As a small business owner himself, he has been particularly engaged in the creation of jobs and support of emerging companies in the County.

Mr. Fitzgerald attended Carnegie-Mellon University, where in 1981 he earned a B.S. in Mechanical Engineering with a business minor. In 1982, he started a small business, Aquenef (acronym for "water and energy efficiency"). Three decades later, the company is a leading provider of water treatment equipment and services in the Western Pennsylvania region. With the exception of a brief time spent working and living in Illinois, Mr. Fitzgerald has been a lifelong resident of the City of Pittsburgh and Allegheny County. He and his wife and children live in Squirrel Hill, in the City of Pittsburgh.

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Mr. Fitzgerald's second 4-year term in office began on January 4, 2016.

County Manager. In July 2012, William D. McKain was appointed by Allegheny County Chief Executive Rich Fitzgerald to serve as Allegheny County Manager, the chief operations officer of the County. As Manager, Mr. McKain works to ensure that the day-to-day operations of county government run smoothly and efficiently.

Under the Charter, the Manager serves as the chief administrative officer of the County, responsible to the Chief Executive for the administration of County operations placed in the Manager’s charge by ordinance, by the Chief Executive or by the Charter. The Manager’s duties also include the supervision of all Executive Branch departments and agencies except the Law Department; the preparation and administration of a personnel system, including the authority to hire, discipline and discharge personnel under the jurisdiction of the Manager; and the preparation and administration of the Comprehensive Fiscal Plan (the “CFP”) for the County.

Mr. McKain is a certified public accountant who has worked in government and not-for-profit accounting and finance for over 23 years. He has vast experience in the preparation of multi-million dollar operating and capital budgets and grant compliance reporting requirements for local, state and federal governments.

Prior to this appointment, Mr. McKain served for more than two years as the Assistant to the Superintendent for Finance & Operations for the Baldwin-Whitehall School District. He was also the Finance Director of Mt. Lebanon Township for seven years and has worked in various other capacities including financial statement preparer, internal audit manager and assistant budget director for Allegheny County government.

Mr. McKain has been a frequent presenter at the Government Finance Officers Association state conferences and chapter seminars and at the Pennsylvania Institute of Certified Public Accountants Local Government Conference. In addition, he has participated in numerous seminars as a presenter for the Local Government Academy (LGA) including its Newly Elected Officials Course and is a Budget/Finance team member of the LGA Pillars of Good Government for use in evaluating the value and performance of local government services. Mr. McKain holds bachelor degrees in accounting and management from Robert Morris University. He and his wife and two sons reside in Mt. Lebanon.

County Council. The legislative power of the County is vested in the County Council, which consists of two at-large members and thirteen members elected by district. The County Council has, among others, the power and duty to: adopt, amend and repeal ordinances, resolutions and motions; make appropriations; levy taxes, fees and service charges and incur indebtedness; adopt balanced annual operating and capital budgets; adopt an Administrative Code; conduct investigations of County departments, agencies or functions; and override, by the appropriate vote, any veto by the Chief Executive. The members of the County Council bring a wide variety of public and private sector experiences to County government.

The Charter can only be amended by referendum vote. Voters of the County have the power to propose ordinances by petition for consideration by the County Council (agenda initiative) or by petition for consideration by the voters of the County (voter referendum) for issues that are germane to County government, with the exception of certain tax issues.

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COUNTY FINANCIAL MANAGEMENT, BUDGETING AND CONTROLS

Operating and Capital Budget Process

Section 801.02 of the County’s Administrative Code requires the preparation of the Comprehensive Fiscal Plan (the "CFP") which encompasses the preparation of the annual operating budget. In addition to the annual operating budget, the CFP requires the preparation of a two (2) year operating budget beyond the current year, an annual capital budget used for funding and fiscal control of specific facilities, equipment and construction/rehabilitation projects. The CFP also calls for the preparation of a grant and special revenue budget, an agency fund budget accounting for funds held by the County on behalf of other entities, and a five (5) year capital improvement plan which identifies needed capital projects and the coordination of the financing and timing of expenditures on a long-term basis. Under the Charter, the preparation of the annual operating budget is the responsibility of the County Manager. Internal management reports detailing the status of the current budget are prepared and distributed monthly.

The Charter limits the Chief Executive’s and County Council’s operating budgets to 0.2% and 0.4% of the County’s locally levied tax revenue, respectively. The Charter maintained the previous limits of taxation on real estate, sales and hotel/motel taxes. In the year after a countywide reassessment, real estate tax collections should be revenue neutral (excluding new construction and rehabilitation). A two- thirds majority of Council is required to effect a change in the rate of taxation for real estate. The Chief Executive has line-item veto power, which may be overridden by a two-thirds vote of Council.

The Charter requires passage of balanced annual operating and capital budgets. No budget may be reopened without a two-thirds vote of Council and concurrence of the Chief Executive.

The operating budget must be prepared in accordance with nationally recognized standards and is based on the premise that no appropriation in any given year will automatically continue into subsequent years.

The Chief Executive must present the budget message and submit the CFP to the Council no later than 75 days before the end of each fiscal year. After submission of the proposed operating and capital budgets and at least two weeks before adoption, the Council is required to hold a minimum of two public hearings. Upon completion of the hearings and no later than 25 days before the end of the fiscal year, the Council is required to adopt, by resolution, balanced annual operating and capital budgets for the next fiscal year. Before adoption, the Council may add, delete, increase or decrease any appropriation item.

Financial Reporting and Control Systems

The current Allegheny County financial information system provides timely and accurate accounting and budgetary data. This fully integrated computerized system encompasses the operating, capital and grants budgets, provides timely information to managers and contributes significantly to the County’s financial monitoring program. The system has enhanced "on-line" processing and reporting capabilities which improve the effectiveness of expenditure control efforts by permitting user departments to obtain immediate access to accounting information.

The County’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP) applicable to government bodies. Governmental funds and activities are accounted for and reported on the modified accrual basis. Proprietary funds, including the Risk Management Fund, are reported on the full accrual basis. The County’s Employees’ Retirement Fund has been on the full accrual

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basis since 1981 and general fixed assets have been included in audited financial statements of the County since 1982.

For the thirty-sixth consecutive year, the Controller released independently audited financial statements. The Controller also issues interim financial statements that are reviewed by independent public accountants. These statements provide a reliable and consistent basis for analysis and forecasting to assist in ensuring the financial stability of the County. Monthly reports on operating and capital revenues, expenditures, and cash flow are available within seven days after each month’s end.

In 2002, the County implemented Governmental Accounting Standards Board (GASB) Statement No. 34, “Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments.” This statement, known as the “Reporting Model”, affects the way the County and its component units prepare and present financial information. The basic financial statements consist of both government-wide (full accrual/economic resource basis) and fund financial statements (modified accrual/current financial resource basis). GASB 34 also required the County to provide a Management’s Discussion and Analysis (MD&A) that presents a narrative overview and analysis of the County’s financial performance for the fiscal year. The MD&A is included in Appendix D with the basic financial statements and notes to the financial statements for the year ended December 31, 2015. It is recommended the MD&A and the summaries that follow be read in conjunction with the basic financial statements and notes in order to obtain a thorough understanding of the County’s financial condition.

2011-2015 Schedule of Operations

The following schedule summarizes the results of County operating fund activities for fiscal years 2011 through 2015, presented on a current resource and modified accrual basis of accounting. The information regarding the operating statements for fiscal years 2011 through 2015 was derived from the County’s audited financial statements reported in accordance with GAAP. Only the 2015 audited financial statements are included in Appendix D of this Official Statement.

[Schedule of Operations Follows on Next Page]

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COUNTY OF ALLEGHENY, PENNSYLVANIA SCHEDULE OF OPERATIONS (1) 2011-2015 (000’s) 2011 2012 2013 2014 2015 REVENUES: Taxes (Sales/Property/Alcohol) $ 364,762 $ 417,571 $ 433,038 $ 434,496 $ 447,700 Federal, State and Local (Grants) 285,146 280,396 282,044 284,366 290,303 Charges for Services 66,296 70,873 79,710 78,691 81,672 Miscellaneous 11,189 11,028 10.424 19,430 10,506

TOTAL REVENUES 727,393 779,868 805,216 816,983 830,181

EXPENDITURES:

General Government 169,085 168,402 176,545 182,612 194,141 Public Safety 80,998 87,273 97,703 99,066 103,446 Public Works 31,810 32,426 25,317 26,020 21,764 Transportation 27,669 27,669 29,169 29,169 29,082 Health & Welfare 338,358 339,044 325,505 327,671 335,388 Culture & Recreation 9,309 8,837 9,682 9,924 15,268 Education 19,095 25,850 23,350 23,840 24,314 Economic Development 6,698 7,634 7,375 7,356 7,143 Debt Service: Principal 38,333 29,858 37,450 25,253 34,563 Interest Charges 29,369 34,275 37,575 37,110 37,955 Costs of Issuance 132 370 - 666 -

TOTAL EXPENDITURES 750,856 761,638 769,671 768,687 803,064 Excess (deficiency) of revenues over expenditures (23,463) 18,230 35,545 48,296 27,117

Net operating transfers (out)/in 8,702 (9,748) (11,906) (22,980) (16,664) Issuance of refunding/G.O. bonds 13,895 54,560 3,989 123,925 - Proceeds on sale of bldg. - - - - - Capital lease - - - - - Premium on TRAN 78 1,390 - - - Premium (Discount) on refunding bonds (50) 9,904 - 13,820 - Payment to refund bond escrow agent (13,758) (60,832) - (137,078) -

Net change in fund balances (14,596) 13,504 27,628 25,983 10,453

Total fund balance- Beginning of Year 26,025 11,429 24,933 52,561 78,544

Total fund balance - End of Year $ 11,429 $ 24,933 $ 52,561 $ 78,544 $ 88,997

Fund balances (2): Restricted $ 5,190 $ 11,697 $ 17,435 $ 18,897 $ 18,883 Assigned 514 1,069 7,561 21,325 28,637 Unassigned 5,725 12,167 27,565 38,322 41,477

Total fund balance - End of Year $ 11,429 $ 24,933 $ 52,561 $ 78,544 $ 88,997

(1) This schedule includes the following Governmental Fund types: General, Transportation, Liquid Fuel Tax, and Debt Service. (2) See Note 1(I) of the 2015 audited financial statements (Appendix D) for detailed fund balance information in accordance with GASB 54. Source: Allegheny County Controller’s Office.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATING FUNDS

FISCAL YEAR 2015 COMPARED TO FISCAL YEAR 2014 Revenues

When compared to the previous year, 2015 revenues increased by $13.2 million, or 1.6%. Overall, revenues from real property taxes increased $5.7 million or 1.7% in fiscal year 2015. The property tax increase resulted from the following (in millions):

Current and delinquent taxes increased $ 2.4 Lien taxes increased 0.4 Interest and penalty decreased (0.2) Tax refunds decreased 3.1 Net Change $ 5.7

(i) Current and delinquent taxes increased 2.4% due to higher certified assessed values from 2014 to 2015. The millage rate remained unchanged at 4.73 for 2015. A decrease in tax refunds of $3.1million bolstered this increase. Lien taxes increased $0.4 million and interest and penalty decreased by $0.2 million.

(ii) Sales tax revenues increased 3.1% or $1.4 million as December’s collections indicated an upswing in the economy.

(iii) Alcoholic Beverage/Rental Vehicle tax revenue increased $5.0 million or 11.8% between years. The Alcoholic Beverage tax rose $2.3 million primarily due to more intense collection efforts by the Treasurer’s Office in 2015. Rental Vehicle taxes also increased $1.7 million in 2015 mainly because of a healthy convention and tourist climate in 2015. Alcoholic Beverage and Vehicle Rental Tax Penalty and Interest increased $1.0 million and the increase is primarily due to Hertz Rental paying a large amount in penalties. The tax (Transportation Fund) is restricted for expenditures related to transportation.

(iv) The Hotel tax used to fund Parks operations increased by $1.1 million. In 2014, $2.0 million was transferred for the Parks Operating, but in 2015 there was $3.0 million transferred which is the primary cause for the increase in 2015.

(v) The 2% Gaming local share assessment tax remained unchanged in 2015, as slot machine revenue at the Rivers Casino remained constant.

(vi) Federal revenues decreased by $3.1 million or 2.4% as detailed below (in millions):

• Reimbursement for federal prisoners decrease $ (0.8) • Increase in foster care 0.1 • Decrease in skilled nursing care (1.0) • Increase in Medicare 0.5 • Decrease in Title IV-E Child Placement (7.4) • Increase in TANF 0.5 • Increase in Title IV-E – Adoption 4.9 • Increase in Title IV-E –Independent Living 0.1

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(vii) State revenues increased by $9.0 million for the reasons detailed below (in millions):

• Increased Act 315 Health Department funding $ 0.2 • Decrease in Kane’s Intergovernmental Transfers Program performance bonuses (1.0) • Increase in skilled nursing care 1.6 • Increase in Medicaid Paid Prescriptions 0.9 • Increase in Act 148 Special Grant Incentives 0.3 • Increase in Act 148 CYF services 6.2 • Increase in Juvenile Probation 0.8

(viii) Charges for services increased $3.0 million or 3.8% for the following reasons (in millions):

• Increase in Real Estate commissions, filing fees and copying $ 2.2 • County Indirect Costs decreased (0.1) • Patient Income increased 1.3 • Health Department fees increased 0.2 • Parks Winter fees increased 0.2 • Use of Property and Equipment decreased (0.1) • Private/Commercial insurance at Kane decreased (0.7)

(ix) Fines and forfeitures increased by $1.0 million as District Courts fees increased $0.1 million and miscellaneous fees increased by $0.2 million in 2015.

(x) Miscellaneous revenue decreased $9.2 million due to receipt in 2014 of $5.1 million from the sale of the Health Department Forbes Avenue Building as well as the $2.5 million bonus from Huntley & Huntley. Similar events did not occur in 2015.

Expenditures

Total outlays of funds increased by 3.6% or $28.7 million during 2015 as explained below. The County was given a $10 million health care credit for exclusively using Highmark Blue Cross/Blue Shield. The allocation of the credit to the operating fund resulted in an $8.0 million savings.

General government expenditures increased by $11.5 million or 6.3% between years. A portion of this increase, $2.6 million, occurred in the Department of Facilities Management and was due to the centralization of trades staffing into this department for consistent management of work and new costs associated with energy savings improvements made to county-owned facilities. Other increases include $1.5 million in non-departmental expenditures, and $2.3 million in costs associated with Court of Common Pleas - Family/Juvenile division. During 2015, the Department of Real Estate became a division of the Department of Administrative Services. In 2015, Administrative Services expenditures increased $1.4 million from the 2014 combined total of these two former departments.

Public safety expenditures increased by $4.4 million primarily due to increases from the County Jail of $3.0 million and the County Police of $1.2 million.

Public works expenditures decreased $4.3 million. $3.1 million of this decrease was from the transfer of parks maintenance expenditures to the Parks Department.

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Health and welfare expenditures increased $7.7 million. The most significant increase was an $8.9 million increase in Human Service – Child Welfare expenditures.

Culture and recreation expenditures increased $5.3 million due predominantly to the transfer of parks maintenance activities and costs from Public Works and the creation of a new division of Parks for Park Rangers.

Debt service payments increased $9.4 million in 2015, as principal payments increased $9.3 million and interest payments increased $0.8 million. The cost of issuance decreased $0.7 million. The significant changes in Bond principal (in millions) were as follows:

C-61 & C-73 increased $ 23.6 C-50, C-57, C-63, decreased (14.7) SEA-2005A, C-56, C-59A, C-66, C-68, C-72 increased 0.4

Other financing uses - net were $16.7 million in 2015 for the following reasons (in millions):

• Interdepartmental transfer agreements $ (0.3) • Matching requirement and County Grant deficit funding (3.9) • Matching requirement for Human Service grants (5.8) • Match requirement for Capital (6.7)

2014 net financing uses were $5.7 million greater than 2015.

Summary of Operations, Fiscal Years 2011 through 2015

The County’s real property tax rate for 2015 remained at 4.73, the same as 2014 and 2013. In 2013, that rate decreased from 5.69 in 2012. Prior to 2012, the real property tax rate remained at 4.69 mills from 2002 through 2011. Real property tax revenues for the five years ending December 31, 2015 averaged $325.2 million. Real property tax revenue has increased between 1.4% and 4.3% annually. In 2012, current and delinquent property tax collections increased $53.0 million (20%) due to a one mill tax increase from 4.69 to 5.69 and from new construction. Property taxes comprise on average about 40.6% of operating revenues from 2011 through 2015.

Sales tax collections have averaged $44.6 million a year for the past five years with increases averaging between 2% to 4% annually. Sales tax collections have declined only once in the last 10 years.

During the past five years, the Transportation Fund Alcoholic Beverage and Rental Vehicle Tax has collected revenue of $209 million to fund the Port Authority’s operating subsidy, debt service and capital expenditures incurred by the County. For the past five years Transportation Fund Alcoholic Beverage and Rental Vehicle Tax revenue has averaged $41.8 million a year.

Federal, State and Local revenues accounted for an average of 36% of total revenue over the last five years.

Charges for Services and Facilities based on the last 5 years averaged $75.4 million or 9.5% of total revenue. The 2013 increase from 2012 of 12.5% or $8.8 million is due to an increase in recording fees.

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In 2012, the one mill tax increase reduced the County’s reliance on one-time revenues. In 2013, expenditures increased $8.0 million due to a Debt Service increase of $10.5 million, offset by a $3.0 million decrease in inmate medical care. In 2013, revenues increased $25.3 million due to the property taxes and an increase in charges for services that contributed to increase the year end combined fund balance to $52.6 million. The Assigned Fund balance classification on A-5 includes $7 million in expected property tax refunds due to property assessment appeals for 2013 taxes. Assessment appeals were not fully processed for 2014 or 2015 requiring continued assignments of fund balance of $6.1 million and $2.5 million, respectively.

COUNTY OF ALLEGHENY, PENNSYLVANIA COMBINED OPERATING FUND BALANCES 2011 – 2015

2011 2012 2013 2014 2015 Governmental Funds: General $ 6,239 $ 13,236 $ 35,126 $ 59,647 $ 69,726 Transportation 4,469 7,575 11,786 14,794 16,111 Liquid Fuel 169 460 4 0 12 Debt Service 552 3,662 5,645 4,103 3,148 Total Fund Balance $ 11,429 $ 24,933 $ 52,561 $ 78,544 $ 88,997

Source: Allegheny County, Pennsylvania, Comprehensive Annual Financial Reports, 2011-2015.

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COUNTY OF ALLEGHENY, PENNSYLVANIA BUDGETED STATEMENT OF OPERATIONS 2015 - 2016

Budgeted* 2015 Adopted 2016 Adopted Revenues: Taxes $438,104,600 $443,595,276 Federal, State and Local (Grants) 296,906,320 304,956,150 Department Earnings, Charges, Fees 91,626,861 77,057,543 Other Revenue 6,058,000 24,453,880 Use of Fund Balance** 6,474,219 4,762,151 Total Revenues $839,170,000 $854,825,000

Expenditures: General Government*** $185,354,536 72,217,815 Public Safety 110,249,700 228,791,861 Public Works 40,779,729 44,086,942 Transportation 36,332,188 38,966,183 Health and Welfare 344,870,127 350,648,744 Culture and Recreation 15,985,259 17,706,849 Education 24,314,369 24,797,956 Economic Development 7,955,717 5,635,000 Debt Service: Principal Retirement 34,562,500 34,372,059 Interest Charges 38,765,875 37,601,591 $839,170,000 $854,825,000

* Sources: 2015 Adopted Budget passed by County Council on December 2, 2014; 2016 Adopted Budget passed by County Council on December 1, 2015.

** Use of Fund Balance: 2016 Adopted Budget: $4,762,151 (Transportation Fund Only) 2015 Adopted Budget: $1,894,331 (Debt Service Fund) $4,579,888 (Transportation Fund) $6,474,219 ***Reclassification of the following categories of expenditures from General Government to Public Safety accounts for the majority of change between these categories: Public Defender, Court of Common Pleas, Sheriff and District Attorney.

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SOURCES OF ALLEGHENY COUNTY REVENUE

General

The County derives its revenues from local taxes on real property, the County’s portion of a 1% sales tax, user charges and miscellaneous receipts and from the federal government and the Commonwealth of Pennsylvania. The chart below sets forth the principal sources of County revenues and the relative percentages thereof. A discussion of the County’s principal revenue sources follows:

Audited Audited Audited Audited Budgeted Category 2012 2013 2014 2015 2016

Property Tax 41.5% 40.9% 41.2% 41.3% 40.7% Sales Tax 5.4% 5.6% 5.6% 5.7% 5.5% Drink & Car Rental Tax 4.7% 5.1% 5.2% 5.7% 5.1% State 22.7% 22.7% 22.0% 22.8% 23.1% Federal 10.5% 10.5% 10.4% 9.9% 10.3% Charges for Services 9.0% 9.0% 9.6% 9.8% 8.2% Regional Asset District 2.3% 2.3% 2.3% 2.3% 2.3% Gaming 0.8% 0.8% 0.7% .7% .6% All Other * 3.1% 3.1% 4.0% 1.8% 4.2% Total County 100.0% 100.0% 100.0% 100.0% 100.0%

* Includes Interest Earnings, Licenses and Permits, Fines and Forfeitures, Miscellaneous, Non-Revenue Receipts and Prior Years’ Financing.

Source: 2012-2015, Allegheny County Controller's Annual Financial Reports; 2016, Allegheny County Operating Budget.

PROPERTY TAXES

Property taxes, the single largest source of County revenue, represented 41.3% of total revenue for 2015. Property taxes are projected to provide 40.7% of total revenue for 2016.

Under the provisions of the Charter, County Council may levy on the assessed value of taxable real property for general County purposes, a maximum of 25 mills and an additional five mills to support the Community College of Allegheny County. There is no limitation on the millage levy for debt service. The County levy for 2016 is 4.73 mills, of which 3.8636 mills is allocated for general County purposes and 0.8664 mills is allocated for debt service.

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PROPERTY TAX COLLECTION PROCEDURES

Property tax statements are normally mailed by February 15 of each year. Property taxes which are normally due by April 30 and are considered delinquent on May 1 were extended by one (1) month in 2013 to May 31 and June 1, respectively.

The tax collection schedules for 2014, 2015 and 2016 provided for the normal two percent (2%) discount allowed for statements paid on or prior to March 31, while taxes paid between April 1 and April 30 are paid at full face value. Taxpayers who fail to pay by May 1 are sent a notice of delinquency and charged a five percent (5%) penalty against the delinquent taxes, plus a one percent (1%) interest charge per month for each month the bill remains unpaid. Property taxes are considered liened if they remain unpaid for one year beginning May 1.

ALLEGHENY COUNTY PROPERTY ASSESSMENTS

Following Allegheny County’s implementation of a base year assessment system as allowed by state assessment laws, the Sto-Rox School District and a Franklin Park homeowner filed a lawsuit against the County alleging that the base year assessment system violated the Uniformity Clause of the Pennsylvania Constitution and the Equal Protection Clause of the United States Constitution. The plaintiffs claimed that a base year system is unconstitutional because it fails to take into account that property values are changing at different rates, both increasing and decreasing, in different parts of the County. By failing to take these constantly changing values into account, the base year system forces property owners to pay an unequal and disproportionate share of the tax burden with lower valued properties are alleged to bear a greater amount of the tax burden than higher valued properties.

In June 2007, the Court of Common Pleas of Allegheny County held that the state assessment laws which allowed counties in the Commonwealth of Pennsylvania to utilize a base year in the valuing of property for real estate taxation purposes were facially unconstitutional and ordered the County to perform and implement new countywide reassessments based upon the actual market values of properties within the County for both the 2009 and 2010 Tax Years.

In April, 2009, the Pennsylvania Supreme Court issued a decision holding that the state assessment laws which allow counties to utilize a base year in valuing property for real estate taxation purposes were not unconstitutional on their face. Nevertheless, the Supreme Court held that the base year system, as applied in Allegheny County, violated the Uniformity Clause of the Pennsylvania Constitution because the County’s property assessments, which were based upon 2002 property values, had become stale and less uniform due to the passage of time and the work of market forces. Although the Supreme Court declared that Allegheny County would have to perform a new countywide reassessment, it remanded the case back to the Court of Common Pleas for a determination of the County’s progress in executing a countywide reassessment and to set “a realistic timeframe” for its completion.”

The County completed a new county-wide reassessment for implementation in the 2012 Tax Year as ordered by the Common Pleas Court. The Court, however, delayed the implementation of the county- wide reassessment until Tax Year 2013 to allow taxpayers time to appeal their newly determined property values and to pay property taxes in 2013 based upon the valuation established at the conclusion of the appeals process. The delay also provided local taxing bodies, including the County, with a slightly more accurate basis to set their 2013 millage rates in order to comply with anti-windfall provisions governing property reassessments in Allegheny County.

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Property values determined by the court-ordered county-wide reassessment, and as readjusted by appeals heard in 2012, were implemented in Tax Year 2013.

For the County, the processing of taxpayer appeals remains ongoing. Since March, 2012, almost $6.7 billion in reductions in the assessed valuation have taken place. Since all appeals have not yet been heard, additional reductions going forward are still anticipated. For millage levying purposes in Tax Year 2013, these large reductions were anticipated and provided for in the County’s 2013 Budget. Fund balance assignments for future appeals were made at year end 2013, 2014 and 2015 in the amounts of $7.0 million, $6.1 million and $2.5 million, respectively.

COUNTY OF ALLEGHENY, PENNSYLVANIA CERTIFIED REAL ESTATE ASSESSED VALUATION (VALUES ARE NET OF ABATEMENTS AND HOMESTEAD EXEMPTIONS)

2011-2016 (000's)

Taxable Exempt Provisional All Real Real Real Real Year Estate Estate Estate (1) Estate 2016 $ 76,704,584 $ 23,102,561 $ 90,882 $ 99,898,027 2015 $ 75,214,000 $ 23,052,359 $ 92,332 $ 98,359,690 2014 $ 75,003,468 $ 22,930,311 $ 96,518 $ 98,030,297 2013(2) $ 79,693,847 $ 22,976,269 $ 102,188 $ 102,772,304 2013(3) $ 74,042,485 $ 23,338,177 $ 97,558 $ 97,478,220 2012 $ 59,154,514 $ 16,602,332 $ 187,842 $ 75,944,688 2011 $ 58,918,966 $ 16,338,461 $ 191,105 $ 75,448,532

(1) Provisional exempt real estate includes all property covered by the Public Utility Realty Act, Act of March 10, 1970, P.L. 168 No. 66, under which payment by a public utility of the special taxes imposed upon realty is in lieu of local real estate taxation. The County receives an allocated share of these payments in lieu of taxes each year from the Commonwealth.

(2) Pursuant to the Court Order, dated March 20, 2012, “By December 17, 2012, the Office of Property Assessments shall provide all taxing bodies within Allegheny County with a final and revised assessment roll of the 2012 assessment for use in 2013”. By Court Order of December 10, 2012, which amended the March 20, 2012 order, the Court ordered “The Office of Property Assessments shall provide to all taxing bodies within Allegheny County a final and revised assessment roll of the 2012 assessment for use in 2013 by December 21, 2012. The final and revised assessment roll of the 2012 assessment shall include all information pertaining to disposition of appeals by the Board of Property Assessment, Appeals and Review (BPAAR) up to, and including, those appeals disposed of at BPAAR’s meeting of December 20, 2012.”

(3) The assessed valuation as of December 31, 2013.

Source: County of Allegheny, Department of Administrative Services, Division of Property Assessment.

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COUNTY OF ALLEGHENY, PENNSYLVANIA Real Property Tax Levies and Collections Assessed Value of Taxable Property – Last Five Fiscal Years 2011-2015

Collected within the Taxes Levied Fiscal Year of the Levy Total Net Collections to Date for the Fiscal Fiscal Year Total Percentage of Delinquent Percentage of Year (Original Levy) Adjustments Discounts Adjusted Levy Amount Original Levy Collections Refunds Amount Adjusted Levy 2015 $352,194,851 $ (213,027) $(6,300,050) $345,671,774 $337,212,410 95.75% n/a $2,600,133 $334,612,277 96.80%

2014 354,766,682 (2,446,641) (6,265,519) 346,054,522 335,740,093 94.64 n/a 4,440,052 331,300,041 95.74

2013 368,573,404 (22,571,628) (6,393,206) 339,608,570 337,989,221 91.70 n/a 9,914,813 328,074,408 96.60

2012 333,984,203 (932,369) (6,040,599) 327,011,234 317,908,712 94.84 5,166,309 2,510,049 320,564,972 98.03

2011 273,073,105 (254,942) (4,903,564) 267,914,599 261,035,739 95.59 2,920,729 2,994,493 260,961,975 97.40

Source: Allegheny County, Pennsylvania, Comprehensive Annual Financial Report, 2015.

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ALLEGHENY COUNTY, PENNSYLVANIA TWENTY-FIVE LARGEST REAL PROPERTY TAXPAYERS 2016 PERCENTAGE OF TOTAL RANK OWNER ASSESSMENT ASSESSMENT

1 PNC BANK NATIONAL ASSOCIATION $ 535,790,800 0.651% 2 BUNCHER COMPANY $ 292,984,800 0.356% 3 HOLDINGS ACQUISITION CO LP $ 248,136,300 0.301% 4 600 GS PROP LP $ 233,211,300 0.283% 5 MELLON BANK NA $ 214,000,000 0.260% 6 HRLP FOURTH AVENUE LLC $ 179,400,000 0.218% 7 SOUTH HILLS VILLAGE ASSOCIATES LP $ 165,416,800 0.201% 8 BANK OF NEW YORK MELLON $ 163,003,800 0.198% 9 PITTSBURGH CBD LLC $ 154,000,000 0.187% 10 PITTSBURGH MILLS LTD. PARTNERSHIP $ 153,119,300 0.186% 11 IX LIBERTY CENTER OWNER LP $ 123,500,000 0.150% 12 ROBINSON MALL JCP ASSOCIATES LTD $ 118,942,800 0.144% 13 HUB PROPERTIES TRUST $ 118,232,200 0.144% 14 CBL MONROEVILLE PARTNER LP $ 112,349,400 0.136% 15 M & J/BIG WATERFRONT TOWN CENTER $ 102,539,000 0.125% 16 RIDC OF SW PENNSYLVANIA $ 102,049,000 0.124% 17 PENN ROSS JOINT VENTURE $ 100,578,900 0.122% 18 HERTZ GATEWAY CENTER LP $ 91,750,000 0.111% 19 OMNI PITTSBURGH CORPORATION $ 87,200,000 0.106% 20 LIBERTY AVENUE HOLDINGS LLC $ 79,000,000 0.096% 21 NORTH SHORE DEVELOPERS LP $ 78,000,000 0.095% 22 ONE OLIVER ASSOC LP $ 75,000,800 0.091% 23 BAYER CORPORATION $ 68,913,200 0.084% 24 PARK ASSOCIATES $ 65,090,800 0.079% 25 HORIZON DSG ASSOCIATES LP $ 63,805,324 0.078% $3,726,014,524 4.526%

Source: Allegheny County Division of Property Assessment, Appeals & Review Assessed Values as of May 9, 2016

Sales Taxes

In 1994 the Board of County Commissioners, on implementation of Act 77 of 1993 (“Act 77”) of the Pennsylvania General Assembly, enacted an ordinance imposing a 1% County-wide sales tax (the “1% Sales Tax”), based on the retail sale of tangible personal property or services. The 1% Sales Tax is in addition to the State imposed sales tax of 6%.

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The 1% Sales Tax is collected by the State Treasurer and disbursed, on or before the tenth (10th) day of each month, by the State Treasurer, out of the moneys in the Allegheny Regional Asset District Sales and Use Tax Fund as of the last day of the previous month as follows:

(a) Fifty percent (50%) to the Allegheny Regional Asset District; (b) Twenty-five percent (25%) to qualified municipalities within the County, including the City of Pittsburgh; and (c) Twenty-five percent (25%) to the County.

The Allegheny Regional Asset District (the “ARAD”) was created on March 31, 1994. The ARAD is a special purpose unit of local government created to support and finance regional assets; to engage in the oversight and coordination of regional assets; and to assure the efficient and effective operation and development of regional assets. Under Act 77, a regional asset is defined as a civic, recreational, library, sports or cultural facility or project designated by the ARAD Board as a regional asset.

The ARAD is required to use the funds received by it for payment of administrative expenses and funding of regional assets, subject to the condition that not more than one percent of the monies received by it may be used for payment of administrative expenses. The City of Pittsburgh and the County are required to use the funds received from the 1% Sales Tax for the reduction of local taxes and for gentrification programs. Similarly, other qualified municipalities which receive revenues from the 1% Sales Tax must use the moneys for tax reductions and for gentrification programs, and to assist councils of government.

The ARAD has no power to impose any taxes nor can it pledge the taxing power of the County, the Commonwealth or any political subdivision of the Commonwealth. The Commonwealth and governmental agencies have the power to make grants to the ARAD and to lend credit to the ARAD, but the ARAD cannot compel the making of such grants or the lending of credit. The ARAD can issue bonds and pledge future receipts from the 1 % Sales Tax to pay debt service on those bonds.

The Redevelopment Authority of Allegheny County (the “Authority”) in 1995 issued its Special Tax Development Bonds, Taxable Series of 1995 in the amount of $25,000,000 and in 1999 issued its Special Tax Development Bonds, Taxable Series of 1999 in the amount of $25,000,000 (the “Development Bonds”). The proceeds from Development Bonds were used to fund an economic development fund that is administered through the Authority by the County's Department of Economic Development and used to make loans to and investments in certain projects located within the County.

The County has pledged a portion of its 1% Sales Tax receipts for the payment of debt service on the Development Bonds. Pursuant to intercept agreements with the State Treasurer, the County has irrevocably directed the State Treasurer to deliver a portion of the County’s 1% Sales Tax receipts equal to the debt service on the Development Bonds to the trustee for the Development Bonds.

For budget purposes, the County estimates its portion of the gross 1% Sales Tax receipts as part of its revenues for the year while concurrently setting up an appropriation to pay the debt service on the Development Bonds. This has the same effect as reducing the 1% Sales Tax receipts that are available for general expenditure purposes.

The following table shows, on a cash basis, the County’s portion of the gross 1% Sales Tax receipts with the amounts intercepted to pay the debt service on the Development Bonds and the resulting net 1% Sales Tax receipts for the period 2011 through 2015 (in millions of dollars).

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2011 2012 2013 2014 2015

Gross Sales Tax Receipts $ 41.8 $ 43.7 $ 44.6 $ 46.1 $ 47.6

Intercepted Sales Tax Receipts 4.8 4.8 4.8 4.8 4.8

Net Sales Tax Receipts $ 37.0 $ 38.9 $ 39.8 $ 41.3 $ 42.8

Source: Allegheny County Budget Office.

Federal and State Grants

The County makes certain expenditures for services required by Federal and State mandates which are then wholly or partially reimbursed through Federal and State categorical grants. The County receives Community Development Block Grants, Job Training Partnership Grants, Social Services Block Grants, and State Liquid Fuel Tax allocations. The social services for which the County is reimbursed include a portion of certain costs for programs for the mentally disabled, controlled substance abusers, neglected and abused children, and care for the chronically ill and elderly. All County claims for Federal and State grants are subject to subsequent audit by Federal and State authorities.

Charges for Services

The County receives user fees from recreational and rental facilities, among others, as well as fees charged by court related offices. The charges for services are accounted for among three funds.

General Fund charges make up the second largest component of charges for services revenues. Recording and filing fees from the County’s fee offices generate the most revenue in the General Fund. The County generates fees through rental of groves, shelters, houses and equipment in its nine (9) regional parks. Also, parks generate fees by charging for the use of swimming pools, golf courses, tennis courts, skating rinks, skiing and other recreational activities. Public safety generates revenue through charges for special police and sheriff services. Health services generate revenue through plumbing inspections, clinic fees and laboratory charges. Commissions are generated from the collection of certain state taxes and fees, such as the State Realty Transfer Tax. Revenues are brought into the operating fund from special revenue funds by Indirect Cost Recovery, Child Enforcement Support and service reimbursement contracts. Patient income results from various assets signed over to the John J. Kane Regional Health Centers. There are also many minor charges for service revenues like "Sale of Maps and Publications".

Governmental Fund Capital Expenditures

The County’s principal capital expenditures relate to the reconstruction, rehabilitation and expansion of the County’s infrastructure and physical assets, including County mass transit facilities, sewers, streets, bridges and tunnels, and capital investments that will improve productivity in County operations. Capital projects are funded through grants and the issuance of long-term general obligation debt. The following table compares the County’s long-term debt service to total operating expenditures for the years 2011 to 2015:

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COUNTY OF ALLEGHENY, PENNSYLVANIA COMPARISON OF LONG-TERM DEBT SERVICE TO TOTAL OPERATING EXPENDITURES 2011-2015

Long-Term Debt Total Operating % of Total Year Service(1) Expenditures(2) Expenditures 2015 $ 72,517,283 $ 821,414,775 8.82 2014 $ 63,029,080 $ 791,000,002 7.96 2013 $ 75,024,482 $ 782,721,993 9.59 2012 $ 62,587,074 $ 772,986,386 8.10 2011 $ 67,575,393 $ 765,490,470 8.83

(1) Includes principal and interest payments on long-term debt of the County. Excludes legally and economically defeased debt.

(2) Includes operating transfers out, other than those transfers between the operating funds.

Source: Allegheny County, Pennsylvania, Comprehensive Annual Financial Reports, 2011-2015.

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EMPLOYEES AND LABOR RELATIONS/BENEFITS

Employees

As of April 30, 2016 the County employed 5,254 full-time “operating budget funded” employees, of which 4,146 were covered by collective bargaining agreements. For comparison, the number of full-time operating budget funded employees as of December 31, 1995 was 7,226 or 1,972 more than the current level. This twenty- seven percent (27%) reduction in the workforce has been primarily the end result of four voluntary separation programs coupled with several rounds of layoffs since 1996. The most recent voluntary separation plan and layoff action occurred in December 2007 in which approximately 200 persons left county employment.

“Operating budget funded” employees are those employees whose salaries are paid from the operating budget, and thus, do not include employees on certain grant-funded programs operated by the County. In addition, these figures are also exclusive of employees on workers compensation, indefinite suspension or leave of absence.

Labor Relations

The above union positions funded in the operating budget are represented by twenty four bargaining units include such occupations as laborers, clerks, nurses, health workers, laboratory workers, tradesman, social workers, correctional officers, police, deputy sheriffs, technology workers, and attorneys. Settled contracts are in place through 2016 with sixteen unions representing 3,300 employees. These agreements include wage increases of 2.5% in 2016. In addition, the employee healthcare contribution increased from 2% of base salary in 2013 to 2.5% in 2016. Also, settled contracts are in place through 2017 for three unions representing 304 positions, representing the county detectives, probation officers and probation supervisors, for whom the salary increase for 2016 and 2017 is 3.0%. Further, the scientists, attorneys and police, two unions representing 413 positions, have a contract in place through 2018 with salary increases of 3.0% per year for attorneys and scientists and 3.75% and 4.0% for police. Finally, the correctional officers, sergeants and jail medical, three unions, have contracts representing 610 positions in place through 2019 with annual increases of 2.5%. 2.7% and 2.9%. All employees, union and nonunion, continue to make contributions to the cost of healthcare up to 2.5% of their base salary.

PENSION PLAN

The Allegheny County Retirement System (the "Retirement System") is under the direction of a seven- member Retirement Board, consisting of the Chief Executive, a member appointed by the Chief Executive, a member appointed by County Council, the Controller, the Treasurer and two members selected by the County’s employees and retirees. The Retirement Board’s Executive Director and staff maintain records on all employees, contributions, disbursements and investments. As of December 31, 2015, the management of the retirement fund was handled by 33 investment managers utilizing a balanced mix of management styles, who follow the investment guidelines established by the Retirement Board. The Allegheny County Airport Authority is a component unit of Allegheny County and is a member of the Retirement System.

The Retirement System’s present actuary, Cowden & Associates, in its most recent actuarial valuation report dated January 1, 2015 rolled forward to December 31, 2015, indicated that the net pension liability was $580.5 million which translates to a 56.6% ratio of plan fiduciary net position to total liability. The ratio at December 31, 2014 was 60.3% and net pension liability was $507.3 million. The Airport Authority’s December 31, 2015 net pension obligation was $48.9 million.

The accrued benefit liability exceeded the market value of assets by $372.4 million which translates to an accrued benefit funded ratio of 69.2%. Total cash and investments were $821.4 million and $837.1 million as of December 31, 2015 and December 31, 2014, respectively, representing a decrease of 1.9% during the actuarial

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period. In addition, a comparison of total liabilities to total assets, which includes the market value of existing assets and the present value of future contributions, indicates a ratio of 77.1% based on $1.6634 billion total liabilities and $1.2596 billion total assets as of January 1, 2015.

Significant actuarial assumptions include a return on investments of seven and three quarter percent (7.75%) and projected salary increases of 3.25% to 5.75%. Also general inflation was estimated at 2.75%.

The method used for asset valuation is as follows: in determining the preliminary actuarial value of assets, the preceding year’s market value of assets is increased by contributions and expected interest at the valuation rate and reduced by benefit payments and expenses. This expected value of assets is then compared to the market value of trust assets and 20% of the difference is recognized for that year, 40% for the prior year, 60% for second prior year and 80% for the third prior year to produce the preliminary actuarial value of the assets. If the resulting actuarial value of assets is outside a corridor of 80% to 120% of the market value, the adjustment is made to maintain the actuarial value of assets at the appropriate corridor limit.

The 8% employee contribution rate which had been in effect since January, 2012 was increased to 9% beginning in January, 2015.

Under Pennsylvania law, the Retirement Board has the power to increase the employee contribution rate to more effectively meet the funding changes required by the annual actuarial studies. Changes in the benefits structure require action of the General Assembly of the Commonwealth.

The Retirement System is a single-employer defined benefit, contributory retirement plan covering substantially all employees of the County. Monthly benefit payments are determined for each individual according to the retirement option selected and the age and length of service at retirement. Under normal retirement (attainment of age 50 with 20 years of service for police and firefighters, age 55 with 20 years of service for sheriffs, deputy sheriffs, and jail guards, and age 60 with 20 years of service for non-uniformed employees), the retirement benefit is equal to 50% of final average salary, plus 1% of final average salary for each full year of service between 20 and 40 years. Final average salary is the monthly average of the 24 highest months of compensation in the last 48 months of employment preceding retirement.

Under terms of the Retirement System, employees contributed 9.0% of covered compensation beginning January 1, 2015. Employee contributions are matched equally by the County, as prescribed by the Second Class County Code of the Commonwealth. Employees with at least 24 months of service who terminate prior to satisfying the minimum service requirements for a retirement benefit are entitled to refunds of their contributions plus interest thereon at approximately 0.21% per annum. Employees with less than 24 months of service who terminate prior to satisfying the minimum service requirement for a retirement benefit are entitled to refunds of their contributions with no interest.

Other Post-Employment Benefits

In addition to a defined benefit retirement plan for County employees, the County also provides certain health care and life insurance benefits for County retirees and surviving spouses of retirees. These and similar benefits are commonly referred to as “other post-employment benefits” or “OPEB.” Certain retiree benefits are determined through collective bargaining, while the County’s other retiree benefits are determined by the County.

The County annually appropriates funds to meet its obligation to pay such benefits on a “pay-as-you-go” basis. The County has not established any fund or irrevocable trust for the accumulation of assets with which to pay such benefits in future years. Such expenditures are currently funded through the County’s General Fund. In fiscal year 2015, net County costs for such benefits totaled approximately $1,710,051 with retiree contributions totaling $311,422.

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On June 21, 2004, the Governmental Accounting Standards Board (GASB) released its Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (“Statement No. 45”). Statement No. 45 establishes standards for the measurement, recognition and display in the financial reports of state and local governments of obligations to pay OPEBs when provided separately from a pension plan expense or expenditures and related liabilities. Under Statement No. 45, governments are required to: (i) measure the costs of benefits, and recognize other post-employment benefits expenses, on the accrual basis of accounting in periods that approximate employees’ years of service; (ii) provide information about the actuarial liabilities of promised benefits associated with past services and whether, or to what extent, those benefits have been funded; and (iii) provide information useful in assessing potential demands on the employer’s future cash flows. Statement No. 45 reporting requirements were effective for the County in fiscal year 2007.

The County retained Hawley Consulting Group (“Hawley”), an OPEB consulting firm, to provide actuarial services to the County for GASB Statement No. 45 disclosure. Hawley’s actuarial valuation of the County’s OPEB obligations as of January 1, 2013 enabled the County to determine the following valuations in accordance with Statement No. 45:

1. Estimated actuarial accrued liability for all beneficiaries (“AAL”) as of January 1, 2015: $57,797,000

2. The County’s 2015 OPEB cost, the percentage of annual OPEB cost contributed and the net OPEB obligation were as follows: Annual OPEB Cost (“AOC”) = $4,236,755, Percentage of AOC Contributed = 48.0% and the Net OPEB Obligation = $35,520,421. The AOC for 2015 was computed using the following actuarial assumptions: An actuarial valuation was performed as of January 1, 2015 thus the Net OPEB obligation is an estimate for 2015. The AOC was computed using the following actuarial assumptions: (1) actuarial cost method projected unit credit; (2) mortality RP-2014 table projected using MP-2015; (3) discount rate of 4%; (4) 2.75% inflation rate was assumed: (5) the healthcare cost trend rate for fiscal year 2017 estimated to be 7.0% higher than 2016 and is assumed to decrease .25% each year period beginning 2016 through 2021; (6) due to advancing age the overall healthcare costs will be at a rate of 4% in the 50's and decrease 1% every 10 years through the 80's; (7) withdrawal rates vary by attained age; and (8) its assumed that 100% of eligible participants will participate in the retiree medical program.

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RETIREMENT SYSTEM OF COUNTY OF ALLEGHENY, PENNSYLVANIA HISTORY OF CONTRIBUTIONS & BENEFIT PAYMENTS 2011-2015

Year Employees’ County Total Benefit Ended Dec. 31 Contributions Contributions Contributions Payments

2015 $33,151,939 $32,925,519 $66,077,458 $85,043,469 2014 30,170,618 29,830,945 60,001,563 78,832,991 2013 27,888,016 27,587,089 55,475,105 74,610,381 2012 27,671,598 27,224,149 54,895,747 70,952,238 2011 23,546,922 23,406,380 46,953,302 68,120,680

Source: Allegheny County Retirement Board.

RETIREMENT SYSTEM OF COUNTY OF ALLEGHENY, PENNSYLVANIA FIVE-YEAR SUMMARY OF LEADING INDICATORS1 2011 - 2015

Actuarial Accrued Total Year Liability Benefit Liability Beginning Total Rate of Normal Funding Funding Funding Jan. 1 Contributions Cost (1) Ratio Ratio Ratio

2015 18.0% 9.1% 59.6% 69.2% 77.1% 2014 17.0 8.00 61.4 70.7 81.3 2013 16.0 7.97 59.5 68.4 77.8 2012 16.0 7.86 55.4 63.9 75.0 2011 14.0 8.85 58.7 66.2 74.2

1 Defined as benefits plus expenses as a percentage of compensation. Source: Retirement System 36th Annual Actuarial Report – Valuation Date of January 1, 2015.

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COUNTY OF ALLEGHENY, PENNSYLVANIA STATEMENT OF BORROWING POWER April 30, 2016 Computation of Legal Debt Limit

Total Revenues – 2013 $ 1,035,797,847 Total Revenues – 2014 1,056,981,539 Total Revenues – 2015 1,048,487,067

Total $ 3,141,266,453

Average $ 1,047,088,818

Total revenues for purposes of the debt statement includes all monies received from all sources during the fiscal year, as specified by the Act, including special recurring revenues from federal and state programs for special purposes. These special recurring revenues are not included in the operating budget.

MULTIPLES TO DETERMINE GROSS BORROWING CAPACITY April 30, 2016

Nonelectoral Debt: 300% $ 3,141,266,453

Nonelectoral Debt Plus Lease Rental Debt: 400% $ 4,188,355,271

Source: Allegheny County Controller’s Office.

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COUNTY OF ALLEGHENY, PENNSYLVANIA STATEMENT OF INDEBTEDNESS (1) April 30, 2016

Gross Debt: Bonds Issued and Outstanding: Nonelectoral $ 819,080,000 Gross Lease Rental Debt 3,240,000 Total Nonelectoral and Lease Rental Debt $ 822,320,000

(1) Excludes this issue.

Source: Allegheny County Controller’s Office.

COUNTY OF ALLEGHENY, PENNSYLVANIA AVAILABLE DEBT CAPACITY April 30, 2016

Nonelectoral Nonelectoral Debt Plus Debt Lease Rental Debt

Legal Debt Limit $ 3,141,266,453 $ 4,188,355,271

Less: Total Net Debt Applicable to Debt Limit 819,080,000 822,320,000

Legal Debt Margin $ 2,322,186,453 $ 3,366,035,271

Source: Allegheny County Controller’s Office.

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APPENDIX B

DEMOGRAPHIC AND ECONOMIC INFORMATION

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DEMOGRAPHIC AND ECONOMIC INFORMATION

The following pages contain certain statistical information relating to the County. The County has not independently verified the information presented by the sources identified for the periods indicated.

INTRODUCTION

Allegheny County (the “County”) is located in Southwestern Pennsylvania and encompasses approximately 730 square miles of land. Founded in 1788, the County is the second most populated county in Pennsylvania with over 1.2 million residents. Roughly 25% of the County’s residents live within the City of Pittsburgh. The Allegheny and Monongahela Rivers flow through Allegheny County to form the Ohio River in downtown Pittsburgh.

Economy

The County is the location of seven Fortune 500 corporate headquarters. The County’s 2015 Fortune 500 companies include: U.S. Steel (176), PNC Financial Services Group (192), PPG Industries (198), H.J. Heinz (272), Wesco International, Inc. (360), and Dick's Sporting Goods (393). The County has experienced substantial growth in areas such as technology, tourism and health care. The County is also a strong supporter of its manufacturing industries and has traditionally been one of the major industrial centers of the world with its access to major fields of coal and shipping access to 8,000 miles of navigable rivers. The Port of Pittsburgh is the second largest inland port in the nation. There is annual benefit to the region of over $800 million for the shipping and receiving of over 32 million tons of cargo.

The County has undergone an economic transformation spanning more than three decades with a shift from the manufacturing industry to the service and trade industries. Specifically, the new focus industries have been healthcare and life sciences, advanced manufacturing, energy, information and communications technology and financial and business services. This shift is attributed to the continuing diversification of the employment base.

The region’s health services sector employs nearly 140,000 people and is a robust network that is cultivating lifesaving technologies, regenerative medicine and pharmaceuticals. The University of Pittsburgh Medical Center is a multi-billion global healthcare enterprise and is the region’s top employer and with more than 43,000 employees. Bayer HealthCare, UnitedHealthcare, Allegheny Health Network and Pittsburgh Mercy Health System are also part of this sector.

Top manufacturers such as ACUTRONIC, Alcoa, Covestro, Calgon Carbon, Drager Safety, Eaton Corp., HJ Heinz Company, Industrial Scientific, Koppers, LANXESS, Mitsubishi Electric Power Products, Pennsylvania TRANE, PPG Industries, RTI International Metals and U.S. Steel are either headquartered or have a presence in the greater Allegheny County region. Smaller precision tooling and machining companies meet global demands for custom components.

The County and the surrounding region has become a national leader in energy technology, innovation and supply chain related to production, distribution and efficient usage. The area is home to more than 800 companies in the global energy market, including Alpha Natural Resources, Aquatech, Chevron, Columbia Gas of Pennsylvania, CONSOL Energy Inc., EQT, FirstEnergy Corporation, Peoples Natural Gas, Range Resources and Westinghouse.

Nearly 1,500 technology firms including Google, Ansys and Ariba have a presence within the County and employ some 26,000 people. A tech-savvy talent pipeline flowing from the many area colleges and universities and a robust network of organizations supporting and financing innovation are helping the region’s knowledge-based economy to thrive.

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Global financial institutions with headquarters or major business units within the County include The PNC Financial Services Group, The Bank of New York Mellon, Citizens Bank, Dollar Bank, Federated Investors, First Commonwealth Bank, Huntington National Bank, S&T Bank, TriState Capital, and First Niagara. Two global law firms, K&L Gates and Reed Smith, are based in the City of Pittsburgh, as is Buchanan, Ingersoll & Rooney and Jones Day-Pittsburgh as well as major insurance companies, including Highmark, United Health Care and Cigna.

Higher Education

Adding to Allegheny County's diverse labor and business climate, some of the most prestigious health, educational, and cultural institutions in the country are located here. The County’s colleges and universities include Carnegie Mellon University, Carlow College, Chatham College, Community College of Allegheny County, Duquesne University, La Roche College, Point Park University, Robert Morris University, the Art Institute of Pittsburgh and the University of Pittsburgh. Allegheny County is also home to various Junior and Technical Colleges.

Transportation

The Port Authority of Allegheny County (the “Port Authority”) serves the metropolitan area by operating over 700 buses, over 80 light rail vehicles and the Monongahela Incline. The Port Authority also owns the Duquesne Incline, which it leases to the nonprofit Society for the Preservation of the Duquesne Heights Incline. The Port Authority is the largest operator of mass transit services in Western Pennsylvania and ranks among the nation’s top 20 largest public transportation systems. The Port Authority’s 2,600 employees serve approximately 200,000 daily riders, with a total of nearly 64 million passengers annually.

Pittsburgh International Airport (“PIA”), which offers more than 155 flights per day, is recognized for its state-of-the-art terminals and an Airmall for the over 8 million travelers that pass through PIA each year.

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POPULATION TRENDS

The County’s population trends, along with those of the City of Pittsburgh and the balance of the Metropolitan Statistical Area (“MSA”) (Beaver, Butler, Fayette, Washington and Westmoreland Counties) and the Pittsburgh MSA from 1990 to 2014 are shown in the following table:

2014 % Change % Change 1990 2000 2010 (estimate) 1990-2000 2000-2010 Allegheny 996,570 947,103 917,644 923,127 (5.0%) (3.1%) County (except City of Pittsburgh)

City of 369,879 334,563 305,704 306,045 (9.5%) (8.6%) Pittsburgh

Total 1,366,449 1,281,666 1,223,348 1,229,172 (6.2%) (4.6%) Allegheny County

Balance of 1,058,362 1,077,029 1,063,996 1,129,621 1.8% (1.2%) MSA

Total MSA 2,424,811 2,358,695 2,287,344 2,358,793 (2.7%) (3.0%)

Source: U.S. Census Bureau.

LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT

Labor Force Statistics – Annual Averages, 2011 –2016

2011 2012 2013 2014 2015 2016 (1) Allegheny County Civilian Labor Force(2) 648.2 659.8 657.7 646.2 647.8 646.4 Allegheny County Employment(2) 602.6 614.1 615.3 611.4 616.6 612.0 Allegheny County Unemployment Rate 7.0% 6.9% 6.5% 5.4% 4.8% 5.3% Pittsburgh Metropolitan Statistical Area Unemployment Rate 7.3% 7.2% 6.8% 5.7% 5.1% 5.9% Pennsylvania Unemployment Rate 8.0% 7.9% 7.4% 5.9% 5.1% 5.5% United States Unemployment Rate 8.9% 8.1% 7.4% 6.2% 4.8% (3) 5.1%

(1) As of March, 2016 (2) In thousands (3) As of December, 2015

Source: U.S. Bureau of Labor Statistics and the Pennsylvania Department of Labor and Industry.

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Employment

In 2015, there were a total of 1,161,700 non-farm jobs in the Pittsburgh MSA, representing an increase of approximately 2,100 jobs from the previous year. The top growing industries in 2015 were Social Assistance, Transportation and Warehousing, Food Services, Utilities and Scientific Research and Development.

Source: Pennsylvania Department of Labor and Industry.

Ten Largest County Employers

Number of Rank Name of Business Employees 1 University of Pittsburgh Medical Center 43,000 2 Highmark Health 22,000 3 United States Government 17,347 4 Commonwealth of Pennsylvania 12,822 5 University of Pittsburgh 12,386 6 Giant Eagle Inc. 10,742 7 The Bank of New York Mellon 7,000 8 Allegheny County 6,750 9 Wal-Mart Stores Inc. 6,200 10 Eat’n’Park Hospitality Group 5,614

Source: Pittsburgh Business Times, as of July 30, 2015

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INCOME AND SALES DATA

The estimated median household effective buying income for the Metropolitan Statistical Area (“MSA”) in 2013 is $39,778 which is 96.6% of the Commonwealth median household effective buying income. Effective Buying Income (EBI) is defined as all personal income less personal taxes, non-tax payments (fines, fees, and penalties) and contributions to social insurance. EBI is also commonly referred to as disposable or after tax income.

County and Metro Estimated Households by Effective Buying Income – 2016 Percent of Households by EBI Group

% of Households: by EBI Group Estimated Estimated Average Median Household Household $25,000 to $35,000 to $50,000 EBI in $ EBI in $ $34,999 49,999 and over

Allegheny Co. $62,587 $46,050 11.75% 16.64% 45.77%

Armstrong Co. 49,308 40,148 13.95 18.25 38.02

Beaver Co. 55,880 45,444 12.36 16.97 44.86

Butler Co. 69,040 52,277 9.87 16.73 51.82

Fayette Co. 43,869 35,400 13.03 17.53 32.93

Washington Co. 62,635 48,516 10.99 17.33 48.28

Westmoreland Co. 59,263 45,917 12.16 17.34 45.29

Total Pittsburgh MSA 60,706 45,829 11.75 16.64 45.38

Pennsylvania 61,528 46,134 11.69 17.16 45.57

Source: Nielsen Claritas Site Reports.

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Total Retail Sales – MSA 2013 - 2015

2013 2014 2015

Total Retail Percent Total Retail Percent Total Retail Percent Sales ($000) of MSA Sales ($000) of MSA Sales ($000) of MSA Allegheny County 21,460,996 59.82 21,398,017 59.81 24,648,584 60.70

Armstrong County 445,598 1.27 463,020 1.29 626,152 1.54

Beaver County 1,883,052 5.25 1,878,850 5.25 1,950,091 4.80

Butler County 3,030,178 8.45 3,048,874 8.52 3,227,215 7.95

Fayette County 2,032,762 5.67 1,987,077 5.56 2,255,759 5.56

Washington County 2,919,179 8.14 2,891,416,449 8.08 2,954,165 7.28

Westmoreland County 4,095,428 11.42 4,110,379 11.49 4,942,566 12.17

Total MSA 35,877,196 100.00 35,777,636 100.00 40,604,532 100.00 Pennsylvania 197,914,414 198,215,135 207,887,942

Source: Nielsen Claritas Site Report.

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APPENDIX C

FORM OF OPINION OF BOND COUNSEL

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[The proposed form of legal opinion of Clark Hill PLC, bond counsel, is set forth below. The actual opinion will be delivered on the date of delivery of the bonds referred to therein and may vary from the form to reflect circumstances both factual and legal at the time of delivery. Recirculation of the Official Statement following the date hereof shall create no implication that Clark Hill PLC has reviewed any of the matters set forth in such opinion subsequent to the date of such opinion.]

We have served as Bond Counsel to the County of Allegheny (Pennsylvania) (the "Local Government Unit") and do hereby undertake to advise you in connection with the issuance, sale and delivery of its $______General Obligation Refunding Bonds, Series C-75 and its $______General Obligation Bonds, Series C-76 (collectively, the "Bonds"), issued in fully registered form, dated and bearing interest from their date of delivery, and maturing on various annual dates ending November 1, ______.

In that capacity, we have examined the Constitution of the Commonwealth of Pennsylvania; the Second Class County Code, as amended, together with the Local Government Unit’s Home Rule Charter, effective January 1, 2000; the Local Government Unit Debt Act, as amended (the "Debt Act"); the formal action of the Governing Body of the Local Government Unit authorizing the incurrence of nonelectoral debt evidenced by the Bonds (the "Debt Ordinance"); the corresponding Certificate of Approval of the Department of Community and Economic Development; the Internal Revenue Code of 1986, as amended (the "Tax Code"); the Non-Arbitrage Certificate of an authorized officer; and such other certificates, proceedings and law as we deemed necessary in order to render this opinion. Unless separately noted, we have not independently verified factual certifications made to us by the Local Government Unit, its officers and agents during the course of our engagement.

Both principal of and interest on the Bonds are payable at the designated corporate trust office of U.S. Bank National Association, as Paying Agent for the Local Government Unit; the trust company has additionally been appointed Registrar and Sinking Fund Depository for the Bonds.

Based on the foregoing, we are of the opinion on this date as follows:

1. The Bonds are valid and binding general obligations of the Local Government Unit.

2. The Bonds are secured by a pledge of the full faith, credit and taxing power of the Local Government Unit. The Local Government Unit has effectively covenanted in the Debt Ordinance to include the amount of debt service on the Bonds, in each fiscal year for which such sums are due, in its budget for that year; to appropriate such amount to the payment of such debt service; and to pay or cause to be paid, from time to time as and when due, the principal of the Bonds and the interest thereon on the dates, at the place and in the manner stated in the Bonds.

3. Presently included among the general revenues of the Local Government Unit available for the payment of the Bonds are ad valorem taxes which may be levied, without limitation as to rate or amount, upon all taxable real property situate within the corporate limits of the Local Government Unit.

4. The Bonds are payable and enforceable according to their own terms, those of the Debt Ordinance and all provisions of the Debt Act; however, any such payment and enforcement could be restrained by a court of proper jurisdiction operating under the authority of bankruptcy, receivership and other similar laws of accommodation and adjustment of creditors' rights, as then applicable.

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5. The Bonds are an authorized investment, under the Probate, Estates and Fiduciaries Code, as amended, for fiduciaries and personal representatives (as such terms are therein defined) within the Commonwealth of Pennsylvania.

6. Under the laws, regulations, rulings and judicial decisions in effect as of the date hereof, interest on the Bonds (including, in the case of Bonds sold at an original issue discount, the difference between initial offering price and par) is excludible from gross income for Federal income tax purposes, pursuant to the Tax Code. Furthermore, interest on the Bonds will not be treated as a specific item of tax preference, under Section 57(a)(5) of the Tax Code, in computing the alternative minimum tax for individuals and corporations. In rendering the opinions in this paragraph, we have assumed continuing compliance with certain covenants designed to meet the requirements of Section 103 of the Tax Code. We express no opinion as to any other Federal income tax consequence arising from ownership of the Bonds.

7. The Bonds, and interest income therefrom, are free from taxation for purposes of personal income and corporate net income within the Commonwealth of Pennsylvania.

Except as expressly stated above, we express no opinion regarding any other federal or state income tax consequences of acquiring, carrying, owning or disposing of the Bonds. Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds, which may include, among other things, original issue discount, original issue premium, purchase at a market discount or at a premium, taxation upon sale, redemption or other disposition and various withholding requirements and any pending or proposed federal tax legislation or litigation which may result in tax consequences.

Very truly yours,

CLARK HILL PLC

C-2 APPENDIX D

ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED DECEMBER 31, 2015

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2015 COUNTY OF ALLEGHENY PENNSYLVANIA Comprehensive Annual Financial Report

For the Fiscal Year Ended

December 31, 2015

PREPARED BY CHELSA WAGNER, CONTROLLER [THIS PAGE INTENTIONALLY LEFT BLANK] 2015 County of Allegheny Comprehensive Annual Financial Report

Contents

INTRODUCTORY SECTION

Controller's Letter of Transmittal 1 GFOA Certificate of Achievement 21 Organizational Chart 23 Officials of Allegheny County 25

FINANCIAL SECTION

Independent Auditors' Report 27 Management's Discussion and Analysis 33 Basic Financial Statements 55 Government-wide Financial Statements 57 Statement of Net Position 57 Statement of Activities 60 Governmental Fund Financial Statements 62 Balance Sheet 62 Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Position 67 Statement of Revenues, Expenditures and Changes in Fund Balances 68 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 72 Proprietary Fund Financial Statements 73 Statement of Net Position 73 Statement of Revenues, Expenses and Changes in Net Position 74 Statement of Cash Flows 75 Fiduciary Fund Financial Statements 76 Statement of Ficuciary Net Position 76 Statement of Changes in Fiduciary Net Position 77 Component Unit Financial Statements 78 Statement of Net Position 78 Statement of Activities 84 2015 County of Allegheny Comprehensive Annual Financial Report

Contents

Notes to Financial Statements 87 (1) Summary of Significant Accounting Policies 87 (2) Legal Compliance 114 (3) Cash and Investments 114 (4) Property and Sales Tax Revenue and Receivables 125 (5) Capital Assets 128 (6) Risk Management 134 (7) Short-Term Debt 137 (8) Long-Term Debt 138 (9) Interfund Receivables, Payables and Transfers 157 (10) Retirement Benefits 158 (11) Postemployment Benefits Other Than Pension Benefits 177 (12) Contingencies 183 (13) Related Party Transactions (see Note 1) 187 (14) Derivative Financial Instruments 188 Required Supplementary Information 191 Budgetary Comparison Schedule - General Fund 193 Notes to Required Supplementary Information 194 Schedule of Changes in the County's Net Pension Liability and Related Ratios 195 Schedule of County Contributions 196 Schedule of Changes in the PAT's Net Pension Liability and Related Ratios 199 Schedule of PAT Contributions 200 Schedule of Changes in CCAC's Net Pension Liability and Related Ratios 202 Supplementary Information 203 Combining Other Governmental Funds Financial Statements: 205 Combining Balance Sheet - Other Governmental Funds 207 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Governmental Funds 208 General Fund: 209 A-1 Balance Sheet 211 2015 County of Allegheny Comprehensive Annual Financial Report

Contents

A-2 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 213 A-3 Schedule of Operating Expenditures - Budget and Actual 216 Special Revenue Funds: 243 B-1 Balance Sheet Schedule 245 B-2 Schedule of Revenues, Expenditures and Changes in Fund Balances 247 B-3 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Transportation Fund 248 B-4 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Liquid Fuel Tax Fund 249 B-5 Schedule of Resources and Uses of Federal and State Grant Programs - County Grants Fund 250 B-6 Schedule of Resources and Uses of Federal and State Grant Programs - Human Service Grants Fund 252 Debt Service Fund: 255 C-1 Balance Sheet 257 C-2 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 258 Capital Projects Fund: 259 D-1 Balance Sheet 261 D-2 Statement of Revenues, Expenditures and Changes in Fund Balance 262 Internal Service Fund: 263 E-1 Statement of Net Position 265 E-2 Statement of Revenues, Expenses and Changes in Net Position 266 E-3 Statement of Cash Flows 267 Trust and Agency Funds: 269 F-1 Statement of Net Position - Pension Trust Fund 271 F-2 Statement of Changes in Net Position - Pension Trust Fund 272 F-3 Statement of Assets and Liabilities - Combined Agency Funds 273 F-4 Statement of Changes in Assets and Liabilities - All Agency Funds - By Level of Fiduciary Responsibility 274 Capital Assets Used in the Operation of Governmental Funds: 285 G-1 Schedule of Capital Assets by Function and Activity 287 2015 County of Allegheny Comprehensive Annual Financial Report

Contents

G-2 Schedule of Changes in Capital Assets by Function and Activity 289 G-3 Schedule of Capital Assets by Source 290 Budgetary Comparison: 291 H Budgetary Comparison Schedule for Operating Budget 292 Nonmajor Component Units: 297 I-1 Combining Statement of Net Position 299 I-2 Combining Statement of Changes in Net Position 300 Supporting Schedules for Long-Term Debt: 303 J-1 Schedule of Long-Term Debt 304 J-2 Debt Issued and Retired 309 J-3 Statement of Indebtedness, Borrowing Power and Legal Debt Margin 310

STATISTICAL SECTION

Contents 313 Revenue and Expenditure Overview 315 Financial Trends 327 I - Net Position by Component - Last Four Years 327 II - Net Assets by Component - Last Six Years 328 III - Changes in Net Position - Last Four Years 330 IV - Changes in Net Assets - Last Six Years 332 V - Fund Balances, Governmental Funds - Last Six Years 334 VI - Fund Balances, Governmental Funds - Last Four Years 335 VII - Changes in Fund Balances, Governmental Funds - Last Ten Years 336 VIII - Program Revenues by Function/Program - Last Ten Years 338 Revenue Capacity 339 IX - Tax Revenues by Source, Governmental Funds - Last Ten Years 339 X - Property Tax Levies and Collections - Last Ten Years 340 XI - Principal Taxpayers 341 XII - Assessed Valuation of Taxable Property - Last Ten Years 342 XIII - Property Tax Rates - Direct and Overlapping Governments - Last Ten Years 343 2015 County of Allegheny Comprehensive Annual Financial Report

Contents

Debt Capacity 362 XIV - Ratios of General Obligation Bonds Outstanding and Legal Debt Margin - Last Ten Years 362 XV - Computation of Direct and Overlapping Debt 364 Demographic & Economic Information 365 XVI - Demographic and Economic Statistics - Last Ten Years 366 XVII - Principal Employers - Current Year and Nine Years Ago 368 Operating Information 369 XVIII - Full-Time Equivalent County Government Employees by Function/Program - Last Ten Years 369 XIX - Operating Indicators by Function/Program - Last Ten Years 370 XX - Capital Asset Statistics by Function/Program - Last Ten Years 372 Component Unit (ACAA) Information 373 XXI - Revenue Bond Coverage Airport Authority Revenue Bonds and Notes - Last Ten Years 373 XXII - Pittsburgh International Airport Passenger Volume Trend - Last Ten Years 374 Miscellaneous Information 375 XXIII - Salaries of Principal Officials 375 XXIV - County Council Members' Expenditure Reimbursements 376 XXV - Primary Government Functions 377 Acronyms 382 Allegheny County CAFR Acronyms 383 2015 County of Allegheny Comprehensive Annual Financial Report

Contents 2015 County of Allegheny Comprehensive Annual Financial Report 1

Controller's Letter of Transmittal

COUNTY OF ALLEGHENY

OFFICE OF THE CONTROLLER

104 COURTHOUSE • 436 GRANT STREET PITTSBURGH, PA 15219-2498 PHONE (412) 350-4660 • FAX (412) 350-3006

CHELSA WAGNER CONTROLLER

April 29, 2016

TO THE CITIZENS OF ALLEGHENY COUNTY:

I am pleased to present the 2015 Comprehensive Annual Financial Report (CAFR) for the County of Allegheny County (the County).

The financial information presented herein is accurate in all material respects and is reported in a manner designed to fairly set forth the County’s financial position and the results of its operations for the year ended December 31, 2015. This report contains the government-wide financial statements and fund financial statements of the County, as well as the financial data of the discretely presented component units that are included as part of the County’s reporting entity. Management is responsible for the contents of this report.

This report is intended to provide information to various users, stakeholders and persons interested in the fiscal health of the County, including: the taxpayers of the County, investors, creditors, government officials and the general public. The intent of the CAFR is to describe an accurate portrayal of the County’s financial position and the financial results of its operations as of and for the year ended December 31, 2015.

This CAFR also includes a narrative introduction and an analytical overview of the government’s financial activities in the form of “Management’s Discussion and Analysis” (MD&A). This analysis is similar to the types of information provided in the private sector in an annual report, and information regarding the County’s results of operations, formerly included in this transmittal letter, can now be found in the MD&A.

PROFILE OF THE GOVERNMENT

COUNTY OF ALLEGHENY, PENNSYLVANIA

Founded in 1788, the County of Allegheny is the second most populous county in Pennsylvania and the 28th most populous county in the United States with 1.2 million residents residing in 730.74 square miles encompassing 130 municipalities. The County provides numerous essential services to 2 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

the poor and needy (including operating nursing homes for the indigent elderly), enforces laws, constructs roads and seeks to stimulate economic development to make Allegheny County and its greater region more prosperous and competitive in the 21st century global marketplace.

The County serves as the municipal core and primary economic engine of the seven-county, Southwestern Pennsylvania area known as the Greater Pittsburgh Metropolitan Region (the Region) that also comprises Armstrong, Beaver, Butler, Fayette, Washington and Westmoreland counties.

Effective January 1, 2000, the County began operating under a Home Rule Charter (the Charter). The Charter superseded certain provisions of the Pennsylvania Second Class County Code pertaining to the County’s governing framework. Specifically, the Charter established a 15-member County Council to serve as the legislative branch of government and Chief Executive to perform the executive branch functions. Under the Chief Executive, the Charter requires the appointment of a County Manager to manage the day-to-day affairs of the County in a professional, non-partisan manner. The County Council and Chief Executive replaced the three-member Board of Commissioners that previously performed all legislative and executive functions as set forth in the Second Class County Code.

The Charter also required adoption of an Administrative Code to direct the internal operation of the County. Unless expressly and implicitly modified or repealed by the Charter, all provisions of the Second Class County Code and other applicable state laws still govern the operations of the County.

The Controller is elected to serve as the County’s chief financial officer. The Controller is independent of both the County Council and Chief Executive. The statutory duties and obligations of the Controller derive from the Second Class County Code and were not affected or diminished by the Home Rule Charter. The Treasurer is elected to collect taxes and invest government funds. The other independently elected row officers are the District Attorney and the Sheriff. The Court of Common Pleas of Allegheny County is part of the unified judicial system provided for in the Pennsylvania Constitution, and the ultimate supervision and management of the local court system lies with the Pennsylvania Supreme Court.

REPORTING ENTITY

Statement of Governmental Accounting Standards No. 14, “The Financial Reporting Entity,” and as amended by Statement No. 61 establishes standards for defining and reporting on the financial reporting entity - in this case the County. The core of the financial reporting entity is the “primary government.” The Governmental Accounting Standards Board’s Codification, Section 2100.112, classifies all general-purpose local governments as primary governments. For this report, the County is considered the primary government.

The financial reporting entity includes both the primary government and all of its “component units.” A component unit is a legally separate entity that meets any one of the following criteria:

The primary government appoints a voting majority of the board, and is able to impose its will on the component unit, or is in a relationship of financial benefit or burden with the component unit; The component unit is fiscally accountable to the primary government, or; The financial statements of the primary government and component units are closely related to or integrated with and would be misleading if not included. 2015 County of Allegheny Comprehensive Annual Financial Report 3

Controller's Letter of Transmittal

In conformity with accounting principles generally accepted in the United States, the financial statements of the County’s component units are included in this report because of the significance of their operation or financial relationships with the County. The majority of the board of directors of the component units, except Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc. (Memorial Hall) are appointed by the County’s Chief Executive and confirmed by the County Council.

Individual financial data for the Allegheny County Airport Authority (ACAA), Port Authority of Allegheny County (PAT), Community College of Allegheny County (CCAC), Redevelopment Authority of Allegheny County (RAAC), Allegheny County Industrial Development Authority (ACIDA), and combined data for the Allegheny HealthChoices, Inc. (AHCI), Allegheny County Parks Foundation (Parks Foundation), and Memorial Hall have been included in the County’s government-wide financial statements. They are reported in a separate column to emphasize that they are legally separate from the County.

COUNTY WIDE SERVICES

Reflected in this report are the services provided by the County, including health and social services, education and cultural programs, public safety, operation of a jail, construction, maintenance and repair of infrastructure, judicial services, transportation, economic development, long-term nursing care and rehabilitation of the chronically ill and elderly, treatment, counseling and housing for people with intellectual disabilities or drug and alcohol dependency, shelter for delinquent children, services for abused children and their families, support of a system of county parks for conservation and recreation, and general government administration.

INTERNAL CONTROL

The County’s internal accounting control system is an established comprehensive framework that provides taxpayers and other interested persons and entities with assurances that the assets of the County are reasonably safeguarded against loss from unauthorized use, mismanagement and negligence. These controls are also utilized to compile sufficient reliable information for the preparation of the County’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the County’s internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.

Under provisions of the Second Class County Code, the Controller is responsible for developing and maintaining the accounting system for the County. In addition, the Controller must audit all claims before disbursement, audit accounts of all County offices, file an annual financial report with the Court of Common Pleas and perform many administrative and board functions.

INDEPENDENT AUDIT

For the 36th consecutive year, an independent public accounting firm audited the County’s financial statements. The firm of Zelenkofske Axelrod LLC, Certified Public Accountants, performed the current audit. Such an audit is performed to provide reasonable assurance the financial statements of the County for the year ending December 31, 2015 stood free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The auditor concluded there to be a reasonable basis upon which to render an unqualified opinion that the County’s financial statements for the year ended December 31, 2015, are fairly presented in conformity with GAAP. The independent auditor’s report is presented in the Financial Section of this report. 4 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

BUDGET

As specified in the Home Rule Charter, the Chief Executive must present the annual operating and capital budgets to County Council 75 days before the end of each fiscal year. No later than 25 days before the end of the year, County Council must adopt, by resolution, balanced operating and capital budgets. The annual operating budget contains estimated revenues and expenditures for the following funds: General, Liquid Fuel Tax, Transportation and Debt Service. Budgetary control is maintained at the total budget, fund, department and character levels of expenditures by encumbering the total dollars indicated on purchase requisitions prior to their release to vendors. Encumbrance, as employed in governmental accounting, means a restriction is placed on the budget allowance to control expenditures. Expenditure documents that result in an overrun of available appropriation balances at the various levels of control are not released until appropriation transfers are officially requested and made available pursuant to the County’s Administrative Code. At year-end, open encumbrances in the General Fund are reported as assigned fund balance and re-appropriated at the start of the next fiscal year.

ECONOMIC CONDITION

Our Region is exhibiting many signs of burgeoning growth and a bright future, but this is no time for complacency. It is an opportunity for disruptive innovation. It is an opportunity to foster justice and equality and to tear down the barriers that have allowed certain areas to flourish and others to stagnate. We must not only use information to identify gaps and assets and to study problems. Instead, we must develop a problem-solving vision for building the Region of our dreams – one that is inclusive, focused upon the well-being of all citizens, opportunity-rich, and innovative in how we address our policy challenges.

A century ago, entrepreneurs flocked to the Region for its rivers and minerals – resources that fueled the growth of industry-defining companies known throughout the world. Today, the Region offers numerous enticements to the next generation as its economic base shifts from industry to technology: an abundance of university research, low overhead costs, an established reputation for livability, and an educated, stable workforce. Yet despite these advantages and solid reasons for optimism in terms of economic growth, the Region must face chronic challenges to reinvent itself (and to reinvest in its citizens) after the demise of the heavy manufacturing sector more than three decades ago. Chief among these impediments are a weakened public transportation system, an underutilized airport, an infrastructure system in need of repair (as particularly represented by our sewers), and fiscal and budgetary concerns throughout all levels of local government, which have been exacerbated by paralysis at the state and federal levels. Most significantly, a large percentage of our Region's economic growth has not been shared and realized by the majority of our citizens, causing widening gulfs in inequality sadly exemplified by neighborhoods and cities where basic issues of affordable housing, transportation, jobs and crime severely impact upon growth and achievement. Difficult, decisive and transparent decisions must be made by the County so that our Region can leverage its existing advantages to stimulate economic development and improve quality of life for all of its citizens, which will in turn attract additional businesses and investors to maintain and grow our tax base.

FISCAL CONCERNS

Financial experts and rating agencies recommend maintaining a fund balance of at least 5% of a government’s operating revenues, or about $42 million for Allegheny County today. The General Fund’s unassigned portion of the fund balance of $41.5 million represents 5.7% of General Fund revenue and 5.0% of the County’s Operating Budget. While the County's fund balance has trended upward in recent years, a significant portion of this growth directly correlates to a 2011 increase in 2015 County of Allegheny Comprehensive Annual Financial Report 5

Controller's Letter of Transmittal property tax millage. Additionally, health insurance credits of $8 million were provided in 2014 and 2015 and applied against General Fund expenditures. There is no indication at this time to suggest these credits will occur in the future. Accordingly, the County (along with many municipalities) lacks a long-term solution to maintain fund stability, particularly since continued shortfalls in federal funding and uncertainty of state funding will persist in the future and costs to provide vital services to County residents will continue to increase in order to keep pace with cost of living.

Bond ratings are a key indicator of a government's creditworthiness. Outside analysts have recognized the positive fiscal strides made by the County, as the County has been awarded an investment rating of A1 by Moody's Rating Services with a stable outlook. Many factors contribute to this rating, including the County's strong economic base, as well as the County's renewed efforts to control expenditures and identify additional regularly recurring revenue streams. Standard & Poor's rates the County AA- with a stable outlook for Allegheny County.

The County ended 2015 with its lowest General Obligation Bond debt since 2011, though debt levels remain a drain on County resources, amounting to about $700 for every County resident. Debt service payments increased more than $10 million over 2014.

As previously mentioned, a serious, potentially crippling long-term concern for the County is its underfunded pension liability. This is a difficult problem the County shares with other municipalities in Pennsylvania and throughout the nation. Typically, a healthy pension fund has a funded ratio of at least 80%. Despite increasing contributions in three of the last four years, the County's pension stood at 55.4 percent funded status in 2012, rose to 59.5 percent in 2013, went to 60.3 percent in 2014, and is at 56.6 percent in 2015. Even with the rate increases, a 56.6 percent funded pension still remains lower than the 80 percent funded ratio goal, creating concern for the stability and longevity of the fund.

Although the problems with which the Pension Fund grapples are typical, the County has demonstrated leadership to craft solutions to place its fiscal health in better order. To this end, the County has taken steps to strengthen the future viability of the Fund. In December 2013, the Commonwealth passed Act 125, amending the current pension structure for Allegheny County. Under Act 125, new County employees, as of February 25, 2014, must have 10 to 25 years of service (rather than the previous 8 to 20 years) to qualify for retirement benefits. Additionally, contribution rates on salary calculation will be based on the highest 48 months of the last 8 years of employment rather than the highest 24 months of the last 4 years. Overtime wages are only included in pensionable wages up to 10% of base pay. Contributions of both the employee and the County have increased from 7% in 2011 to the current contribution rate of 9%. All of these changes can eventually lower the County's actuarial accrued liability and could save the County an estimated $338 million. However, speaking candidly, these steps, while appropriate and common sense, serve as "band-aids" over a larger, more systemic funding issue. Indeed, these ameliorative changes provide the County estimated future savings based upon hypothetical future employees. The changes do not improve the immediate outlook of an underfunded pension. Therefore, the County's pension system remains a concern to its financial outlook, and could serve as a hindrance to growth and stability as more tax revenues will need to be earmarked to pay for the County's financial liabilities in the decades ahead.

Other challenges facing the County are exacerbated by rapid cuts in funding of mandated services from higher levels of government. The Federal and State governments have continue to tighten funds for mandated essential services provided by urban-centered municipalities like Allegheny County, and approval of Pennsylvania’s 2015-16 state budget stretched into calendar 2016, with the eventual outcome proving a largely austere one. 6 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

Two of the County's major authorities, the Airport and the Allegheny County Sanitary Authority (ALCOSAN) continue encounter serious challenges that have the potential to detrimentally impede the Region's economic performance.

AIRPORT

The Airport has faced chronic decline for the past decade as it continues to struggle to increase its passenger counts and to attract new, meaningful flights to cities where our Region's citizens do business. In comparison to the investment made in it by the taxpayers, the Airport is a grossly underutilized asset that serves as an impediment to the growth of our Region. When the Airport's new terminal complex opened in 1992, passenger traffic stood at 18.7 million. Five years later, in 1997, its traffic peaked at 20.8 million. Since then, the number of passengers has fallen steadily to 8.1 million in 2015, 43% of what it was in 1992 and a slight 3% ahead of its low point of 7.88 million in 2013. (As recently as 2006, the Airport served 10 million passengers.) Thus, the taxpayers of the Region have a facility that was built for 35 million people that currently accommodates 8 million. Without continued growth, the costs of maintaining such an underutilized facility become exorbitant. Currently, the Airport is the 49th busiest airport in North America in terms of passengers, and the 47th busiest when ranked by cargo.

The decision of US Airways to abandon Pittsburgh as a hub attribute to a large part of the Airport's decline. Another obstacle to the Airport's growth has been the high fees charged to airlines doing business at PIT, driven by the need to pay off a large amount of debt incurred more than 20 years ago. Accordingly in 2012 the terminal fee rate charged to signatory airlines was $130.05 per square foot, comparing unfavorably to Indianapolis ($92.80), Denver ($70.21), Kansas City ($30.09) and Cincinnati ($28.00). On February 28, 2013, the Airport awarded a bid for Marcellus Shale drilling on its property to CNX Gas Company, LLC ("CNX"), seeking to increase revenue and thereby reduce fees. CNX paid an upfront bonus of $42.8 million, which will be accredited on a pro-rata basis over the first five years of the lease. The upfront bonus immediately began to benefit the Airport, as fees were lowed halfway through 2013. The Airport is also receiving monthly royalty revenue payments for mineral production. The terminal fee rate decreased $7.71 the past two years to $132.6 per square foot.

While it is not realistic to believe the Airport can return to its former status as an airline hub, the Airport should focus upon becoming a strong origin and destination market to meet the needs of the community. To this end, it is important for the Airport to add nonstop destinations in Europe, additional service to the West Coast, and improved coverage on the Northeast Corridor. Recently, positive incremental developments have occurred. Passenger traffic increased 1.6% in 2015 compared to the prior year. Also, the Airport has gained four new airlines over the past year which have added direct routes from the Airport: Porter Airlines (service to Toronto, Canada); OneJet (service to Milwaukee, Indianapolis and Nashville), Frontier (service to Denver and Las Vegas), and Allegiant Air (service to New Orleans, Florida cities, Raleigh and Savannah). Another positive development for the Airport has been that Southwest Airlines, a growing carrier, has a significant presence, moving 1.3 million passengers last year.

ALCOSAN

One of our Region's most significant fiscal concerns and obstacles through 2015 and into 2016 and beyond will be its response to a U.S. Environmental Protection Agency (“EPA”) Consent Decree mandating the revamping of its aged storm sewer system. ALCOSAN, the County's sanitation authority, as well as the entire Region, are faced with the challenge of replacing aging infrastructure and protecting the quality of its rivers and streams, while complying with environmental regulations. Even 2015 County of Allegheny Comprehensive Annual Financial Report 7

Controller's Letter of Transmittal modest rainfall causes untreated sewage from a 4,000 mile network of aging lines to overflow into the Allegheny, Monongahela and Ohio rivers. To address these major issues and meet the Consent Decree mandates, ALCOSAN has created a Wet Weather Plan ("WWP") that identifies $2.8 billion in sewer infrastructure improvements, and includes a series of underground storage tunnels below the rivers that would temporarily hold the excess runoff during storms. This traditional "grey" infrastructure plan was scheduled to be completed by 2026. However, recently, the EPA indicated by letter that it was amendable to extending the deadline to approximately 2032 to allow ALCOSAN to attempt to implement "green infrastructure" solutions. The effectiveness of those measures would then determine whether the deadline would be extended to add for already described grey infrastructure projects, e.g., the tunnels.

Within the immediate time period of this project, sewage rates will double, with an estimated increase of 60% over the next four years. ALCOSAN raised rates 17% in 2015 and will do so by 11% in 2016, 2017 and 2018. By 2017, the average ALCOSAN customer will pay $417.51 per year, up from $260.92 in 2013. Out of the 83 communities served by ALCOSAN, 80 will be faced with paying these charges in addition to whatever rate or fee increases local water and sewer authorities enact. Overall, sewer rates in the Region have more than doubled over the past decade. Indeed, if trends continue, most citizens could see their bills top $1,200 by 2021. For many citizens of the Region, this is a cost that cannot be easily absorbed into their budget, and is made all the more onerous by the absence, at present, of any program to alleviate or excuse rates for the impoverished, the elderly or persons on fixed income. Not only are creative solutions needed for the infrastructure projects themselves, but also on how we as a Region can protect our citizens from making a choice between their sewage bills and medicine, food or other necessities. Immediate action must be taken to assist people on fixed incomes with their water and sewer bills.

As with many of the challenges to our Region, one of the difficulties underlying our sewer infrastructure is the fragmentation surrounding the entities which must implement these projects. Allegheny County has more than 40 authorities handling water treatment, and the Region has over 200 authorities that operate separate or shared systems. Indeed, few areas of the United States have as many disparate local governments as our Region – approximately 900 in total – which is a level of fragmentation that invites inefficiencies and complicates broad collaboration.

Public confidence in this monumental undertaking is also likely to be impacted by the fact that it will be managed by an institution wanting in public transparency and accountability. News accounts have already detailed instances of non-competitive contracting with regard to the Wet Weather Plan, and ALCOSAN has gone to court to prevent performance audits of its operations. If the bulk of this project is approached with this same mindset, the risk of inflated costs to the public is significant.

Simply put, the costs upon our region to improve its sewer infrastructure will be enormous, and go beyond the projects mandated to be performed by ALCOSAN. All told, in Western Pennsylvania, upgrades, expansions, repairs and compliance will cost more than $3 billion dollars. This increased financial stress of a major County authority will impose an extremely high burden on the average citizen, which could affect the overall economy in Allegheny County. Our Region must come together and insist on thoroughly considered solutions to this very serious and potentially crippling problem. 8 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

REASONS FOR OPTIMISM

The County and the Region have realized meaningful achievements in 2015. While the population remained relatively stagnant for the year, jobs grew by a non-seasonably adjusted 1.4% percent in the Region from 2014. Jobs increased by 15,500 from 2014. The Region has been able to leverage its world-class education sector led by the University of Pittsburgh and Carnegie Mellon University. For example, spurred by a spinoff from Carnegie Mellon University, Oxford Development Company and Robert Bosch, LLC – a leading global supplier of technology and services – announced that Bosch will locate its 51,667-square foot Research and Technology Center in the 3 Crossings development of Pittsburgh's Strip District, which, together with other areas of the City of Pittsburgh, is increasingly becoming a hub for emerging tech and innovation-focused companies as well as companies in the business of manufacturing. Indeed, the Region has shined as a beacon of opportunity for tech firms, with technology-related companies making a combined $25 billion in 2015, or 35% of the Region's business proceeds. Other positive developments in the Region in 2015 included as follows:

--Pilot Air Freight Corridor expanded into a new 45,000 square foot facility in Findlay Township in the Airport Corridor;

-- CSX Corp. broke ground on a new $60 million Pittsburgh Intermodal Rail Terminal in McKees Rocks and Stowe, which is expected to be completed in 2017;

--After spending more than 10 years to buy, remediate and prepared 168 acres of land along the Monongahela River, Allegheny County opened its flyover ramp from the Rankin Bridge to the riverfront, signaling readiness for the next stage of redevelopment in the Mon Valley.

While jobs continue to flourish in our Region, the unemployment rate continues to decrease. Allegheny County registered a 3.8% unemployment rate as of December 2015, a decrease of .7% over the course of the year. The year 2014 showed a record high number of 1,141,400 people employed in the Region. This number continued to grow in 2015, as 302 economic development deals were announced, retaining 1,669 jobs and creating an estimated 6,983 in the coming years.

The performance of County government in certain respects serves as a basis for some optimism. Moody’s Investor Service, upgraded the County's negative outlook to stable on the County’s debt. As previously noted, the County received a rating of AA- from Standard & Poor’s, maintaining a stable outlook. This directly illustrates the County’s efforts in 2015 to improve its finances. Other factors directly correlating to the County’s high bond rating are its strong economy with diverse employment opportunities in the health and education sector, the relatively high income levels and moderate per capita debt burden.

Allegheny County and the City continue to see significant advantages to using the Oracle software-based JD Edwards Financial Management System (JDE). For decades, civic leaders in the County, City and region have looked for innovative, achievable ways to consolidate services to save taxpayers money, improve accountability and reduce redundancy. From these efforts, an Intergovernmental Agreement was executed by the County and the City agreeing, among other things, for the County Controller’s JDE Service Center to support services for all users of JDE in both the County and the City. Additionally, the County and City use software called OnBase, a document management and imaging software, to reduce reliance on paper and improve efficiency. The Controller’s Office has worked in conjunction with the County’s Administrative Services Division of Computer Services and other County departments to convert many daily operations into paperless processes, and have saved the County and taxpayers money. Use of internal resources such as those in the JDE Service Center reduces costs to $30 to $50 per hour versus use of technology consultants at a rate of $150 to $250 per hour. 2015 County of Allegheny Comprehensive Annual Financial Report 9

Controller's Letter of Transmittal

Currently, the County processes all accounting procedures through JDE and the City processes its general ledger and employee and retiree payroll through it. These efforts are helping to make County government more efficient, while bringing government up to date with modern technology. The service center has incredible potential to not only serve more communities but be a national model for innovation and cost-savings.

Public transportation under the auspices of the Port Authority of Allegheny County (“PAAC”) remains vital to the County’s commuters as well as many other residents in meeting their daily needs. The Port Authority served more than 214,000 riders on an average weekday during fiscal year 2015 on its fleet of more than 700 buses, more than 80 light rail vehicles, and two inclines. Total rides totaled almost 64 million.

The 2015 “Make My Trip Count Survey,” funded by the Pittsburgh Foundation and sponsored by a dozen partnering organizations, illustrates the travel patterns of more than 20,700 commuters in the Pittsburgh region. The survey showed that 46.7% of respondents drive alone on their daily commute, while 25.7% ride a bus, 5.4% ride the ‘T’, 5.3% carpool, 4.3% walk, and 4.2% ride a bike. When combining bus and ‘T’ riders, more commuters to Downtown Pittsburgh (41%) use transit than drive alone (38.3%).

Data reported to the American Public Transportation Association (APTA) shows an increase in PAAC ridership in the first three quarters of 2015 over the prior year. This follows reported decreases the prior two years. New commercial and residential development in transit-heavy urban corridors likely accounts for this reversal, as well as investment in transportation resources such as the intermodal East Liberty Transit Center on the Martin Luther King Jr. East Busway at the connection of Shadyside and East Liberty.

The transit center project – which required nearly 20 funding sources to complete and built upon six acres of disused public and private land – includes a reconstructed transit station, 3,000 square feet of mixed commercial space, 360 units of market-rate housing, a 554-space shared-use parking facility, a new street connection, a new pedestrian bridge, a 120-space bike garage, lighting, streetscape improvements, landscaping and plaza facilities that connect Penn Avenue transit users to the East Busway facilities. This project is at the center of the East Liberty Transit Revitalization Investment District – or TRID – which is the first implementation of such a district in the state.

However, residents of areas outside the urban core continue to advocate to no avail for the restoration of service eliminated during the budget crises of earlier this decade. As escalating housing prices in areas most accessible to transit continue to push residents of modest means to outlying areas, these needs are sure to grow. Modest efforts by non-profit service providers are unlikely to be sufficient to filling gaps in service long-term, and access of residents of low-income communities outside of transit-rich corridors to employment must be facilitated.

While Pennsylvania’s 2013 comprehensive transportation legislation has for the moment ended the cycle of dire fiscal threats to PAAC, it is unclear that the status quo can meet the needs of a revitalizing urban core reinvigorated with residents who desire access to transit, along with those without discretionary access to other modes of transportation who require public transit for their daily needs. Locally-based fiscal support for transit improvement and expansion must be explored. 10 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

2015 LOCAL CONDITIONS AND INITIATIVES

DEMOGRAPHIC TRENDS

While our region is experiencing an influx of younger residents driven by the academic and technology sectors, among others, we need to remain cognizant that we continue to have a growing population of elderly residents that will increase demand for government services and assistance in the near future, and we have an obligation to plan accordingly.

The Region's demographic landscape is once again changing in profound ways. According to the most recent U.S. Census Bureau population data available, the region experienced seven consecutive years of population growth through 2014, with a decrease of approximately 2,500 occurring between 2014 and 2015. While these estimated data are inexact, they may speak to a stark dichotomy taking shape between the urban core and the surrounding region. The same data suggests that as many as 7-in-10 of the newcomers are young adults, who are disproportionately drawn to the “eds and meds,” technology, and cultural center in the City of Pittsburgh, while the outlying region continues to age and decline economically.

Few places have been affected by economic misfortune as severely as this Region in the 1980s, when the collapse of heavy industry triggered a catastrophic loss of jobs and the flight of large numbers of residents under the age of 39. With them, the Region also lost their families and future children. By 1995, seniors accounted for 18% of the population of Allegheny County, keeping it near the top of the list of oldest U.S. counties until the proportion of residents aged 65 or older began to slowly drop, bottoming out at 16.8% in 2010. Now, seniors account for a larger share of the local and national population. Forecast models suggest that by 2040, some 21% of the Region's population will be 65 or older – and more than 1,000 Allegheny County seniors are expected to celebrate their 100th birthday, according to a report on aging published last year by the University of Pittsburgh Center for Social & Urban Research. Due to this expanding elderly population, forecasts indicate a rapidly shrinking pool of younger family members and others whose help is critical in caring for a surging elderly population. In Allegheny County, data suggest that by 2050 the ratio of people available to provide care versus those who need it will shrink from 6:1 (caregivers for every person in need) to 3:6.

While these developments represent a profound challenge, they may also present an opportunity as a source of employment for residents lacking the means for extensive education. To make these opportunities worthwhile, however, the Region must embrace the growing national movement to ensure that service employment is sufficiently remunerative to support families and communities and that these workers are treated with dignity. Such efforts must include consideration of an appropriate minimum wage and adequate reimbursements from public welfare programs for such services.

DIVERSITY

We must assure, first, that people of all racial and ethnic communities participate in the benefits of living and working in a thriving place. The Region is poised for tremendous growth. But who will benefit? Too many of our citizens are wondering if all of this growth and development will mean anything for them. The challenge is whether our Region will grow in a way that is inclusive -- across races, across neighborhoods – or whether it will grow in a way that exacerbates gaps between the haves and the have-nots.

In order to be truly vibrant, our Region needs to embrace diversity. The absence of diversity threatens the supply of workers ready to fill jobs vacated by retiring baby boomers and segregates the benefits of gainful employment to only certain areas. It diminishes the Region's appeal to companies looking 2015 County of Allegheny Comprehensive Annual Financial Report 11

Controller's Letter of Transmittal to relocate or expand. And it makes it more difficult to convince talent of all races and ethnicities to consider the Region as a locale of promise worth considering for relocation. In a word, diversity begets diversity. National employment data reveals that our Region struggles mightily to enable racial and ethnic minorities to claim a greater share of the jobs, careers and wealth the Region's economy has to offer. When you see the potential for occupational segregation or clustering into lower-wage jobs that do not have a career trajectory, then it follows that there will be little growth in income and wealth for minority populations – thereby contributing to the yawning inequality gap in our Region.

African-American, Asian and Hispanic workers hold 11% of the jobs in the Region according to recent census data. The rate is more than double in Cleveland, where they hold 24%. The local pool of minority jobholders is even shallower by comparison than those the data suggest. It is much smaller than the average among benchmark regions, across which minorities hold 25% of the jobs. In nearby Baltimore, they claim 37% of the jobs. And they hold 44% of the jobs in Atlanta.

Our Region's problems are exacerbated by a concentration of minorities in certain industries where they are likely to earn below-average incomes. Minorities, for example, hold 20% of the jobs in the administrative and support services sector, making that sector the most diverse in the Region. Unfortunately, minority workers in that sector have an average monthly income of $2,761 – one of the lowest in all employment sectors. Indeed, minority workers in our Region are exceedingly unlikely to work in many of the highest-paying industries. Minority workers as a group comprise only 5% of the mining and oil and gas industries, where their incomes average more than $8,300 per month. They hold only 8% of the utility jobs that afford them an average income of more than $7,200 a month.

Our lack of diversity directly contributes to inequality: it promotes an intergenerational cycle of clustering into certain types of low wage types of jobs, which leads to impoverished families and neighborhoods with little hope of enjoying our Region's economic recovery.

Nowhere is the racial divide in our Region more apparent than in household income and the ability to make ends meet. More African-Americans report earnings in the lower income brackets than other races. The reasons for our shortcomings on diversity are numerous. Chief among them is whether levels of educational attainment and skills align with requirements of available jobs. Another is minorities' awareness of available jobs and career paths. Finally, our Region has struggled to provide minority and underprivileged populations with reliable public transportation, particularly as these groups have been moved outside of the urban corridor because of skyrocketing property values and so-called urban "redevelopment."

TRANSPORTATION

Our diverse local economy – including financial and businesses services, manufacturing, energy, healthcare and life sciences and communications and technology – has positioned well as a Region, and our Region's institutions of higher learning will continue to be catalysts for innovation and economic growth. But to realize our full potential, we need to develop our local workforce and attract and retain talent. Therefore, we need to address public transportation and infrastructure issues that continue to silo off certain areas and populations from enjoying the prosperity of our recent economic development.

The Federal Highway Administration reports that 25% of Pennsylvania's bridges are structurally deficient – the highest rate in the nation. The Region is no exception, with nearly one in five bridges deemed structurally deficient. And nearly all of the roads in the Region are in mediocre or poor condition, according to federal data. Our infrastructure shortcomings prove costly to the Region's 12 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

motorists, who spend an estimated $432 a year in repairs and maintenance due to poor road conditions. A $5 per vehicle registration fee taking effect in 2016 should represent a step toward ameliorating these conditions.

Of course, one of the chief ways to preserve our crumbling infrastructure is to encourage our citizens to utilize public transit. As mentioned previously, PAT continues to recover from a devastating financial crisis dating back to the year of 2007. Even with the latest funding from the State to put PAT ahead, the challenge remains to restore the vitality and appeal of its system, re-establishing consistent ridership. One approach currently under consideration by the City as well as the County, is to create a new on-street Bus Rapid Transit (BRT) service linking Downtown Pittsburgh to Oakland and possibly other East End neighborhoods. BRT is described as a high-quality bus service that offers the limited stops and faster service of rail, but with the flexibility and lower capital costs associated with buses. One feature to the system is having exclusive lanes dedicated to buses only, allowing them to bypass traffic and reduce delays. Other features that would appeal to daily riders are enhanced stations, off-vehicle fare collection to help eliminate delays, and real-time information provided on when the next bus will arrive. In Pittsburgh, implementation of BRT could result in better access to Forbes/Fifth corridor and Uptown neighborhoods. This system is said to provide easier access to Pittsburgh’s hospitals, universities, and the Downtown business district. However, the development of the BRT system still presents some concerns. Needed funding is projected to be at $200 million, which may come from a mix of federal, state and local financing options but have yet to be secured. It is also alarming – and contrary to the purpose of having a mass transit system – that many individuals who need public transit often are required to depend on one bus route with extended wait times. In this vein, it is troubling that leaders in the County have advocated spending millions of dollars for “bus rapid transit” development in primarily the Downtown-Oakland corridor. One is naturally skeptical as to why scarce capital funding should be earmarked for one of the Region’s most heavily served transit corridors in which individuals already enjoy “rapid” service, while other neighborhoods and areas – some very close to the proposed corridor – remain woefully underserved. Further, it would appear in the better interest of our Region to nurture and develop modern transit technologies such as high-speed rail or expansion of our current rail system through our eastern corridor and suburbs.

GENDER EQUALITY

In Pennsylvania, the average woman holding a full-time job is paid 76 cents for every dollar paid to a man. The wage gap adds up to about $11,916, the 12th largest in the United States according to the National Partnership for Women and Families. Women in the Region lose more than $21 billion every year due to the wage gap, a trend seen across the nation. However, as this issue finally has the attention of many, women are making strides to tackle gender inequalities one step at a time. According to a recent study performed by the American Express OPEN State of Women-Owned Business Report, women-owned businesses have grown 19% and have seen an increase in sales of 18% since 2002. As 2014 began, 52,800 women-owned businesses in the Region have been reported. Another example of progress for gender equality can be seen by looking at labor force participation numbers in Western Pennsylvania. According to the University of Pittsburgh’s Economic Quarterly issued in December of 2013, women contributed 61.2% to the total civilian labor force participation for the year, higher than the 58.6% for the nation. However, the Quarterly Issue also revealed that men are still at an advantage over women in participation at 75.9%, reflecting the historically engraved issue that continues to be present in today’s society. While the State and the Region continue to see progress in gender equality in the workplace, many challenges still remain and will continue to remain until serious measures are taken. 2015 County of Allegheny Comprehensive Annual Financial Report 13

Controller's Letter of Transmittal

GROWTH IN ECONOMY

The future of our Region will be predicated on population growth and our ability to incentivize business development by capitalizing on the considerable strength of our Region, including its favorable cost of living, its outstanding assets in medicine and education, and its vibrant cultural, arts and sports institutions. However, we must focus our collective attention and energy around the critical investments in the Region's infrastructure that are necessary to support and strengthen these vital resources for generations to come.

Allegheny County and the Region continue to be places where people can live an enjoyable and affordable life – with the challenge continuing to be to ensure the spread of that prosperity to all citizens. Over the past five years, Pittsburgh has consistently seen increases from 3.2 to 3.5% in average weekly wages. According to the Bureau of Labor statistics, the Region continues to see a similar trend, as it saw an increase in the third quarter of 2015, 1.7% over the same quarter in 2014 and .7% above the benchmark average. The Cost of Living Index for 2015 shows Pittsburgh ranked third-lowest after Cincinnati and Indianapolis, well below the average benchmark. The market in and surrounding the Pittsburgh area continues to attract new investors as well as families looking to find permanent homes. Taking the long view, the Region's housing market shines. Prices have risen 23.7% in the Region over the last 10 years. That is 2.5 times higher than the national rate of 9.1%. Homeownership is another trademark of the Region. Nearly 7-in-10 residents own their own home. However, the housing stock of the Region is the oldest among its comparable benchmarks, and the rate of vacant housing is higher than all other benchmark regions except for Indianapolis, Cleveland and Detroit.

Another sign of strong growth in the local economy can be seen as the Region’s tourist trade continues to soar. According to data provided by STR Global, the Region was ranked first in average daily rate and revenue per available hotel room with a year-to-date rate at $112.59 – up 2.9% compared to same time last year. It is also second in overall year-to-date occupancy among its benchmark regions. Part of this growth can be attributed to natural gas drilling operations, which has already consumed much of the available hotel and motel rooms in the suburbs, driving customers closer to the City where prices start to rise. The number of rooms available in the Region has seen a slight increase in 2015 at 24,444. This number still lacks capacity to attract larger events and conventions to the area.

Overall, the Region is in solid economic shape entering 2016. Employment is at an all-time high and the Region's unemployment rate has fallen to a historic low of 3.8%. The mix of recent Regional industrial growth lends credence to an optimistic 2016 outlook. The broad professional and business services industry, our Region's largest field of employment, has provided a steady flow of new jobs since the recovery began in 2010. The education and health services industry ended 2015 as the strongest of our pillars at 1% job growth. Natural resources development (Marcellus Shale drilling and related activities) remains a small but fast-growing industry in the Region, with positive longer-term projections outweighing near-term weakness caused by the plunge in natural gas prices.

Service industry employers are carrying the load by a wide margin in terms of supporting hiring across the Region. Education & Healthcare is the largest segment across the Region's service sector, and arguably it's most iconic with the demise of manufacturing. Job growth in the Region finished 2015 at a year-over-year pace as strong as any since 2001. This pace is a clear improvement versus 2013 and 2014 job growth results. Also ending 2015 on a positive note were Professional & Business Services and Financial Activities. Both indicate economic sustainability, as they include intermediate activities that allow companies to do business. When these industries are growing, one can be confident that broader business expansion is at hand. Instilling less optimism, however, is the state 14 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

of our heavy industry sector. The Manufacturing, Transportation & Warehousing and Construction sectors all saw flat to lower payrolls than a year ago. The weakness in these relatively high-paying sectors will limit income gains, and therefore the potential for consumer spending to accelerate from its current healthy trend.

Our Region's long-term trend of population decline is in the early stages of a turnaround. With new industrial development, housing market stability, and broad urban development ongoing, our Region should retain and attract young workers and families for years to come. Reliable education, health care and financial industry employers are firmly entrenched and will support workforce development for the foreseeable future. The Region is well positioned to benefit from Marcellus gas drilling activity over the longer term and the technology and educational and healthcare industries in the shorter-term. Skilled workers in this industry will find our low living costs attractive, and, as a result, migration trends are likely to see a boost over the coming decade.

EPIDEMIC OF HOMICIDE AND GUN VIOLENCE

Gun violence in our neighborhood is a serious public health issue and must be treated as such. There is no denying the Region has made significant economic strides in recent years in certain sectors and certain neighborhoods and areas. The Region should be rightly applaud itself for its wherewithal to weather the demise of its industrial base over the past thirty years, as well as, in recent times, the Great Recession. That said, the Region must be cognizant that development and economic rewards have been disproportionately distributed - with many of our Region's citizens being no better off financially than they were a decade ago. Emblematic of this inequality - or, as some have termed it "the two Pittsburghs" of our Region - is the chronic gun violence that has ravaged primarily impoverished, African-American neighborhoods. From 2010 through 2015, the Pittsburgh Bureau of Police investigated 311 homicides. Only 163 of those have been cleared with an arrest or other explanation for the death. Sixteen cases did not end in a conviction. In other words, more than half the murders have gone unsolved. During that same time frame, 85% of City of Pittsburgh's murders had an African-American victim. Of those cases, remaining unsolved, 97% had an African-American victim. Community violence, particularly violence that is isolated only in certain parts of our Region, has a dramatically adverse effect on mortality rates for African-Americans. What we are witnessing is a public health crisis, and a crisis of confidence in our most vulnerable areas. As a Region, we must devote our law enforcement, public health and human services resources to successfully surmount this serious problem. Two years ago, Allegheny County convened a Public Health Commission tasked with "preventing violence and promoting community mental health." While that Commission issued many laudable goals, it is difficult to discern any tangible achievements in stemming the tide of violence.

PUBLIC HEALTH: WATER, AIR, PEOPLE

The annual “County Health Rankings & Roadmaps” report, funded by the Robert Wood Johnson Foundation and researched by the University of Wisconsin Population Health Institute, showed Allegheny County has improved from 49th out of 67 counties in Pennsylvania in 2010 to 26th this year in health outcomes. However, in that Allegheny is the 6th ranking County in median household income according to U.S. Census data, and is home to globally recognized centers of medicine when much of the Commonwealth is remote from top quality health care, these results remain underwhelming and of concern.

Smoking remains a major health issue in the Region, despite its well-documented relationship to cancer, heart disease and other serious illness. Some 22% of residents in the Region are smokers - far higher than the national average. And in only four other benchmark regions is there a greater 2015 County of Allegheny Comprehensive Annual Financial Report 15

Controller's Letter of Transmittal percentage of smokers. Additionally, the Region has the highest of any benchmark regions for persons who are overweight, which puts them at greater risk for diabetes and other diseases. Nearly 11% of the Region's population has diabetes. Weight is a particular problem among people aged 65 and older. About 3 in 4 of our Region's seniors are either obese or overweight as measured by their body mass index. There continue to be persisting racial disparities in health as well.

As the Pittsburgh region finally begins to break free of its long association in the public mind with heavy industry and its attendant pollution, and begins to be recognized for its education, technology, cultural, culinary, and other sectors, the County’s actions on remediating the remaining vestiges of large-scale pollution and its harmful public health effects must begin to match the rhetoric of regional boosters.

The use of negotiated settlements in seeking air quality compliance from large industrial polluters has—rather than compelling significant reductions in emissions—allowed these facilities to pay agreed-upon penalties while they continue to pollute at non-compliant levels.

In 2014, the Shenango, Inc. Coke Plant on Neville Island was fined $600,000. for 330 air pollution violations and ordered to fix the problems that led to them. It was a familiar pattern in the Region in which pollution violations are detected and fines negotiated - without any fixes being ordered. Air quality in the Region has improved gradually due to tighter regulations, technological advances, industry investment and grass-roots advocacy. The U.S. Environmental Protection Agency's three-year monitoring period from 2012 to 2014 shows much of the Region at or below the 12 micrograms-per-cubic meter annual federal limit for fine particulate pollution known as PM2.5. In the Region's worst air pollution pocket downwind of the U.S. Steel Clairton Plant, it has fallen from 23 micrograms per cubic centimeter to 13.4. Still, PM 2.5 levels in that hot spot remain above the three-year federal limits for the pollutant created from industry, power plants, vehicle and other emissions. And the Region also fails to meet the latest standards for ground-level ozone, or smog. As a result, the Region finds itself on the wrong end of the air quality rankings of U.S. cities and regions - a competitive disadvantage in attracting talent and businesses and a signal of greater local health risks. Health studies increasingly report stronger evidence tying lower levels of air pollutants to serious health problems, including respiratory ailments, cancer and cardiovascular disease.

The number of families in the Region who turn to food pantries continues to rise after the last recession. About 1-in-7 U.S. households are "food insecure," meaning they routinely skip meals or do not know where the next meal is coming from, according to a recent U.S. Department of Agriculture report. The demand for food from such households has steadily increased in the Region. The Greater Pittsburgh Community Food Bank distributes food to 359,800 people annually. That is only a third of the people in the region who are eligible for assistance, according to local data reported in "Hunger in America," a 2015 report on food distribution. Hunger cuts across demographic groups and affects many working citizens in our Region. Indeed, 1-in-3 households who use the Greater Pittsburgh Food Bank have someone working full time. Among those served, at least 21% are children under age 18, and 26% are seniors, most of whom live on a fixed income. Feeding the hungry has grown more challenging in recent years. Food banks have seen a steady decline in government support (such as the $5 billion cut in the federal Supplemental Nutrition Assistance Program in 2013) they relied upon for years. As a result, they have had to turn to raising money through private donations to maintain funding levels and feed the growing number of people in need. Moreover, food banks are also dealing with changes in the food industry that deeply cut into the amount of food companies donate. Such donations were a major source of the food they distributed. But industry practices, such as just-in-time inventory, have resulted in increased efficiency, fewer product overruns and labeling errors, and less surplus food to donate. 16 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

According to a 2015 Southern Education Foundation study, in 2013, six school districts in Pennsylvania had a poverty rate greater than 40%. Four of these—Clairton City (47.9), Duquesne City (46), Sto-Rox (44.7) and Wilkinsburg (43.2)—are located in Allegheny County. This is a stark illustration that growth, development, and prosperity in some areas is not extending into all of our communities. In fact, as some thrive, others become magnets for the poor who are priced out of our bastions of growth. Increased efforts must be made to toward mitigating poverty in these areas, as well as to supporting individuals struggling to remain in their longstanding communities that are changing around them.

2016 OUTLOOK

With the continual movement of development of the tech industry throughout Western Pennsylvania, and the constant improvements being made to advance public transportation, health care and opportunities for minorities, the Region will most likely see steady growth into 2016. PNC’s Market Outlook predicts that the Region’s unemployment rate will continue to fall through 2016 and may be under 5% percent by the end of the year.

Although wage growth stalled over the past year despite a healthy labor market, low gasoline and energy prices will support consumer spending in 2016. Employment is under no threat of apparent decline, which should allow consumer spending trends to continue under an umbrella of consumer confidence, supporting economic growth and modest expansion overall.

Looking forward into 2016, the highly regarded universities and hospitals continue to support healthy and stable income trends as well as a steady base for employment. As one considers the longer term condition of the Region’s economy, influence of Marcellus Shale drilling operations will continue to serve as a basis for a growth pace significantly greater than seen over the past few decades, even if the industry suffers stasis in the short term due to low oil prices. Indeed, our Region has shown remarkable growth since the early 1980s. However, in order to continue that improvement and secure a strong future for our Region, we continually need to strive to ensure responsible citizens and more skilled workforce; establish an improved business climate to encourage more manufacturing job creation; invest in transportation including rail, air and public transportation, and strive to, where possible, consolidate government services to improve regional efficiency.

LONG-TERM FINANCIAL PLANNING

FIVE-YEAR CAPITAL IMPROVEMENT PLAN

The Five-Year Capital Improvement Plan (CIP) for Allegheny County is a strategic planning instrument utilized by the County to identify, and plan for, capital projects. It is also used to coordinate the financing of capital projects in order to maximize the benefits to the public. The CIP is a guide for expenditure decisions and not necessarily a firm commitment, as priorities and needs may change from year to year. This document has been prepared based on the priority of identified projects and the funding available. The mix of projects in the CIP is evaluated annually. Projects are added or subtracted based on priority and available funding. Some of the 2016 and 2017 planned projects include $16.5 million for the continued rehabilitation of the 10th Street Bridge in the City of Pittsburgh repairing suspension cables, as well as, the superstructure support steel, drainage and concrete repairs, $15.5 for the rehabilitation of the 7th Street Bridge in Pittsburgh including structural steel repairs, concrete repairs, deck replacement and cleaning and painting and $4 million for the continued construction of the Homeville Viaduct in West Mifflin. Planned projects to begin in 2016 or 2017 include $9.4 million for rehabilitation of the Dooker's Hollow Bridge in North Braddock Borough including deck replacement, expansion dam replacement, deteriorated concrete repair, structural steel repair 2015 County of Allegheny Comprehensive Annual Financial Report 17

Controller's Letter of Transmittal and painting, $2.0 million for a master plan making North Park Swimming Pool a state-of-the-art unique facility, $1.0 million for renovations to South Park Ice Rink, and $1.3 million for structural and mechanical improvements at the City-County Building, County Office Building and Courthouse.

FUTURE COUNTY OPERATING BUDGETS

The Home Rule Charter requires the County to project revenues and expenditures for two subsequent years. The County's 2016 budget is $854.8 million. The 2017 and 2018 budgets were forecasted at $866.6 million and $878.3 million, respectively.

RELEVANT FINANCIAL POLICIES

It is the County’s goal to ensure current year operating revenues are sufficient to fund current year expenditures without using non-recurring and/or unbudgeted revenues. However, non-recurring and unbudgeted revenues used to finance 2015 expenditures are as follows (in millions):

Healthcare bonus - Highmark, Inc. $ 8.0 Act 13 Marcellus Shale fees used for Parks 1.2 Total $ 9.2

As described in the Notes to the Financial Statements, the County has a pay-as-you-go policy for the following:

Self-insured Workers’ Compensation and Dental Care Accrued Sick Time Net Pension Liability Postemployment Benefits Other than Pension Benefits Termination Payments

AWARDS AND ACKNOWLEDGMENTS

CERTIFICATE OF ACHIEVEMENT FOR CAFR

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the County of Allegheny, Pennsylvania, for its CAFR for the fiscal year ended December 31, 2014. This was the 33rd consecutive year that the County Controller’s Office has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. 18 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

INTERNAL AUDIT PEER REVIEW

The Association of Local Government Auditors (ALGA) conducted an external quality control review on the Controller's Audit Division in 2013. The objectives of the peer review were to ensure the Audit Division’s internal quality control system was suitably designed, operating effectively and in compliance with Government Auditing Standards issued by the Comptroller General of the United States. Organizations meeting ALGA’s standards receive full compliance, permitting them to issue audits in accordance with Generally Accepted Government Auditing Standards. The Audit Division received full compliance, which is the best score possible. The peer review is valid for a period of three years. This was the second time that the County Controller's Office has requested a peer review and received full compliance.

INTERNAL AUDIT

The Controller's Audit Division routinely conducts financial and compliance audits of County departments, agencies, row offices and federal and State grants to ensure that County government is efficient, effective and compliant. Management and performance reviews are performed when the need arises. The division issued 57 financial and compliance audits, reviews and special reports to the County Manager, County Council and the general public during the 2015 calendar year to inform County taxpayers and protect their financial interests.

ACKNOWLEDGMENTS

In closing, I am very proud of all of my employees in the Controller's Office who contributed to the 2015 Comprehensive Annual Financial Report. The Controller's Office will continue to monitor and report wasteful spending, identify ways to reduce costs and remain a forthright advocate for the taxpayer to encourage government to become more innovative, transparent and efficient in all that it does.

Respectfully submitted,

Controller 2015 County of Allegheny Comprehensive Annual Financial Report 19

Controller's Letter of Transmittal

The Controller’s Office would like to dedicate this 2015 CAFR to Sal Caito, Manager of Accounting. After 38 years of providing leadership, guidance and loyalty to the Controller’s Office, Sal will be retiring this year. We would like to express our appreciation and wish him all the best on a well-deserved retirement. 20 2015 County of Allegheny Comprehensive Annual Financial Report

Controller's Letter of Transmittal

2015 County of Allegheny Comprehensive Annual Financial Report 21

GFOA Certificate of Achievement 22 2015 County of Allegheny Comprehensive Annual Financial Report

GFOA Certificate of Achievement

ALLEGHENY COUNTY ORGANIZATIONAL CHART

ELECTORATE

DISTRICT CONTROLLER SHERIFF TREASURER ATTORNEY

COURTS COUNTY EXECUTIVE COUNTY COUNCIL

SOLICITOR COUNTY MANAGER BOARDS &AUT HORITIES

BUDGET & FINANCE ECONOMIC DEVELOPMENT HUMAN RESOURCES HEALTH

SHUMAN DETENTION CENTER KANE REGIONAL CENTERS M/W/DBE PUBLIC DEFENDER

COURT RECORDS FACILITIES MANAGEMENT POLICE BUREAU JAIL MEDICAL EXAMINER

CIVIL/FAMILY POLICE ACADEMY

CRIMINAL

WILLS/ORPHANS' COURT

ADMINISTRATIVE SERVICES HUMAN SERVICES PARKS,RECREATION& CONSERVATION EMERGENCY SERVICES PUBLIC WORKS PROPERTY ASSESSMENT AGING SPECIAL EVENTS 911 ADMINISTRATION ENGINEERING & CONSTRUCTION DIVISION

PURCHASING & SUPPLIES CHILDREN, YOUTH & FAMILIES FIRE MARSHAL MAINTENANCE

MANAGEMENT INFORMATION SERVICES COMMUNITY SERVICES FIRE TRAINING ACADEMY FLEET MANAGEMENT

ELECTIONS INTELLECTUAL DISABILITIES/DRUG & ALCOHOL/

VETERANS' SERVICES BEHAVIORAL HEALTH TELECOMMUNICATIONS

RECORDS MANAGEMENT

GRAPHICS

MAILROOM

WEIGHTS AND MEASURES

REAL ESTATE

24 2015 County of Allegheny Comprehensive Annual Financial Report

Organizational Chart

2015 County of Allegheny Comprehensive Annual Financial Report 25

Officials of Allegheny County

COUNTY OF ALLEGHENY, PENNSYLVANIA Officials of Allegheny County December 31, 2015

CHIEF EXECUTIVE Rich Fitzgerald

COUNTY COUNCIL COUNCIL DISTRICT AT LARGE #1 COUNCIL DISTRICT AT LARGE #2 John P. DeFazio Heather S. Heidelbaugh

COUNCIL DISTRICT #1 COUNCIL DISTRICT #5 COUNCIL DISTRICT #10 Matt Drozd Sue Means William R. Robinson

COUNCIL DISTRICT #2 COUNCIL DISTRICT #6 COUNCIL DISTRICT #11 Jan Rea John Palmiere Barbara Daly Danko

COUNCIL DISTRICT #3 COUNCIL DISTRICT #7 COUNCIL DISTRICT #12 James R. Burn, Jr. Nicholas Futules** James Ellenbogen

COUNCIL DISTRICT #4 COUNCIL DISTRICT #8 COUNCIL DISTRICT #13 Michael J. Finnerty Charles J. Martoni, PhD.* Amanda Green Hawkins

COUNCIL DISTRICT #9 Robert J. Macey

ROW OFFICERS CONTROLLER DISTRICT ATTORNEY Chelsa Wagner Stephen A. Zappala, Jr.

TREASURER SHERIFF John K. Weinstein William P. Mullen, Jr.

DIRECTOR OF COUNTY MANAGER BUDGET AND FINANCE SOLICITOR William D. McKain, CPA Warren Finkel Andrew F. Szefi, Esquire

*President of Council **Vice President of Council 26 2015 County of Allegheny Comprehensive Annual Financial Report

Officials of Allegheny County

2015 County of Allegheny Comprehensive Annual Financial Report 27

Independent Auditors' Report

INDEPENDENT AUDITORS' REPORT 28 2015 County of Allegheny Comprehensive Annual Financial Report

Independent Auditors' Report

INDEPENDENT AUDITORS’ REPORT

To the Allegheny County Chief Executive, Controller, and County Council

Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of ALLEGHENY COUNTY, PENNSYLVANIA (County), as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the component unit financial statements of the Allegheny County Airport Authority, Port Authority of Allegheny County, Community College of Allegheny County, Redevelopment Authority of Allegheny County, Allegheny County Industrial Development Authority, Allegheny HealthChoices, Inc., Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc. and Allegheny County Parks Foundation, which represent 100% of the assets, net position, and revenues of the aggregate discretely presented component units. We also did not audit the pension trust financial statements, which in total comprise 91.63% of the assets, 97.71% of net position/fund balances, and 41.69% of revenues of the aggregate remaining fund information. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the above component units and the pension trust fund, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Harrisburg Philadelphia Pittsburgh Greensburg 830 Sir Thomas Court, Suite 100 2370 York Road, Suite A-5 3800 McKnight E. Drive, Suite 3805 210 Tollgate Hill Road Harrisburg, PA 17109 Jamison, Pa 18929 Pittsburgh, PA 15237 Greensburg, PA 15601 717.561.9200 Fax 717.561.9202 215.918.2277 Fax 215.918.2302 412.367.7102 Fax 412.367.7103 724-834-2151 Fax 724-834-5969 To the Allegheny County Chief Executive, Controller, and County Council Page 2

Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of December 31, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Adoption of GASB Statements As described in Note 1 to the financial statements, in 2015 the component units of the County adopted the provisions of Governmental Accounting Standards Board Statement No. 68, “Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27” and Statement No. 71 “Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68”. Our opinion is not modified in respect to this matter.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information (as listed in the table of contents as required supplementary information) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The introductory section, supplementary information in the financial section, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

To the Allegheny County Chief Executive, Controller, and County Council Page 3

The supplementary information in the financial section is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information in the financial section is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.

Zelenkofske Axelrod, LLC

April 29, 2016 Pittsburgh, Pennsylvania

32 2015 County of Allegheny Comprehensive Annual Financial Report

Independent Auditors' Report

2015 County of Allegheny Comprehensive Annual Financial Report 33

Management's Discussion and Analysis

MANAGEMENT'S DISCUSSION AND ANALYSIS 34 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

2015 County of Allegheny Comprehensive Annual Financial Report 35

Management's Discussion and Analysis

INTRODUCTION

This section of the County’s CAFR presents a narrative overview and analysis of the County’s financial performance for the year ended December 31, 2015. It is recommended that it be read in conjunction with the accompanying basic financial statements and notes to the financial statements in order to obtain a thorough understanding of the County’s financial condition at December 31, 2015.

RESULTS IN BRIEF

Government-wide net position increased $40.2 million in 2015.

Government-wide unrestricted net deficit at December 31, 2015 was $590.5 million.

The County’s real property tax rate remained at 4.73 mills.

The County’s investment bond rating from Standard & Poor’s is AA-. Moody’s Investor Service rating for the County is A1. Both ratings include stable outlooks for the County.

At December 31, 2015, the County had $857.1 million of bond debt outstanding. This represents a decrease of $46.9 million from the previous year.

The General Fund’s total fund balance increased $10.1 million in 2015 to $69.7 million from $59.6 million in 2014. The unassigned portion of the fund balance was $41.5 million, which is 5.7% of revenues in the General Fund for fiscal year 2015. The unassigned fund balance increased $3.2 million, or 8.2% between years. The County has assigned $28.2 million of fund balance to pay appeals in litigation from reassessments, future healthcare cost, IRS settlement and purchases on order.

OVERVIEW OF THE FINANCIAL STATEMENTS

The discussion and analysis provided here are intended to serve as an introduction to the County's basic financial statements. The basic financial statements consist of three parts: government-wide financial statements, fund financial statements and the notes to the financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. The basic financial statements present two different views of the County through the use of government-wide statements and fund financial statements. 36 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

The following diagram shows how the required components of this comprehensive annual financial report are arranged and relate to one another.

REQUIRED COMPONENTS OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT

Management's Basic Financial Discussion and Statements Analysis

Government- Fund Notes to Wide Financial Financial Financial Statements Statements Statements

Summary Detail

The first two statements (pages 57-61) are government-wide financial statements that provide information about the primary government's overall financial status, as well as the financial status of the County’s component units (pages 78-85). The remaining statements (pages 62 -77) are fund financial statements that focus on individual parts of County government, reporting the County’s operations in more detail than the government-wide statements. The fund financial statements include:

Governmental funds statements (pages 62-72) which explain how services such as public safety were financed in the short term, as well as what remains for future spending. A budgetary comparison statement is provided to demonstrate compliance.

Proprietary fund statements (pages 73-75) which offer financial information about the activities the County operates like a business.

Fiduciary funds statements (pages 76-77) which reflect activities involving resources that are held by the County as a trustee or agent for individuals, private organizations, or other government units. Fiduciary funds are not reflected in the government-wide statements because the resources cannot be used to support the County's programs.

The financial statements also include notes that provide additional information essential to a full understanding of the financial data provided in the government-wide and fund financial statements (pages 87-190) as well as required required supplementary information including the County’s budget and pension as well as the component units pension (pages 193 -202).

In addition to these required elements, a section is included with combining and detailed individual comparative statements, capital assets and debt schedules, and schedules that provide specifics about major and nonmajor funds (pages 207-311).

The remainder of this overview explains the structure and contents of the government-wide and fund financial statements. 2015 County of Allegheny Comprehensive Annual Financial Report 37

Management's Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL STATEMENTS

The government-wide financial statements report information about the County as a whole using accounting methods similar to those used by private-sector companies. The primary features are reflected in the following diagram.

Government-wide Financial Statements

Governmental Activities and Component Units

Measurement Focus: Economic Resources Accounting Basis: Accrual

Statement of Net Position Statement of Activities

Assets + Deferred Outflows of Resources Net Program (Expense) Revenue - Liabilities - General Revenues - Deferred Inflows of Resources = Change in Net Position = Net Position

The statement of net position includes all of the County's assets, deferred outflows of resources, liabilities, and deferred inflows of resources except fiduciary funds, with the difference reported as net position. This statement serves a purpose similar to that of the balance sheet of a private-sector business. The statement of activities focuses on how the County's net position changed during the year. Because it separates program revenue (revenue generated by specific programs through charges for services, grants and contributions) from general revenue (revenue provided by taxes and others sources not tied to a particular program), it shows to what extent each program has to rely on taxes for funding. All changes in net position are reported using the accrual method of accounting, which requires that revenues be reported when they are earned and expenses be reported when the goods and/or services are received, regardless of when cash is received or paid. Net position is one way to measure the County's financial condition. Over time, increases or decreases in the County's net position are one indicator of whether the County's financial condition is improving or deteriorating. However, other non-financial factors such as changes in the County's real property tax base and general economic conditions must be considered to assess whether overall the County is improving or deteriorating.

The County’s government-wide financial statements are divided into two categories:

Governmental activities – include the County’s basic services such as public safety, public works, health and welfare, and general government, funded through program based charges for services and intergovernmental operating and capital grants, as well as general revenues such as property taxes, sales taxes and other revenues.

Component units – reflecting the activities of legally separate entities for which the County is financially accountable. 38 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

FUND FINANCIAL STATEMENTS

The fund financial statements provide more detailed information about the County’s most significant funds, not the County as a whole. Funds are accounting groups that the County uses to keep track of specific sources of funding and spending for particular purposes. Some funds are required by state law. Other funds are established to control and manage resources designated for specific purposes. The following diagram presents the major features of the fund financial statements, including the types of information contained therein.

Fund Financial Statements

Fiduciary Funds (excluding Governmental Funds Proprietary Funds Agency Funds)

Measurement Focus: Current Measurement Focus: Economic Measurement Focus: Economic Resources Resources Resources Accounting Basis: Modified Accounting Basis: Accrual Accounting Basis: Accrual Accrual

Balance Sheet Statement of Net Position Statement of Net Position

Assets Assets - Liabilities Assets - Liabilities = Liabilities + Fund Balance = Net Position = Net Position

Statement of Revenues, Statement of Revenues, Statement of Changes Expenditures, and Changes Expenses, and Changes in Net Position in Fund Balance in Net Position

Revenues - Expenditures Operating Income + (-) + (-) Other Financing Non-Operating Revenues Additions - Deductions Sources (Uses) (Expenses) = Change in Net Position = Net Change in + Capital Contributions Fund Balance = Change in Net Position

Statement of Cash Flows 2015 County of Allegheny Comprehensive Annual Financial Report 39

Management's Discussion and Analysis

The County has three kinds of funds, in addition to its component units:

Governmental funds – Most of the County’s basic services are included in governmental funds, which focus on: (1) the flow in and out of cash and other financial assets that can readily be converted into cash, and; (2) the balances left at year-end that are available for spending. These funds are reported using the modified accrual accounting basis and a current financial resources measurement focus. Consequently, the governmental funds statements provide a detailed short-term view that helps determine the financial resources available in the near future to finance County programs. The relationship between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is described in a reconciliation that follows the governmental fund financial statements. The County adopts an annual budget for the General Fund, Transportation and Liquid Fuel Tax Funds and Debt Service Fund, as required by the Home Rule Charter. Because it is considered one of the County’s major funds, a budgetary comparison schedule is presented for the General Fund, reflecting the following: (1) the original budget; (2) the final amended budget; (3) actual revenues and expenditures, and; (4) the variance between the final budget and actual revenues and expenditures.

Proprietary funds – Used to report activities that provide services for the County’s other programs and activities. These internal service activities predominantly benefit governmental rather than business-type activities; therefore, they have been included with governmental activities in the government-wide financial statements.

Fiduciary funds – The County is the trustee, or fiduciary, for the Employees’ Retirement System. In addition, the County is also responsible for certain agency funds, which are clearing accounts for assets held by the County in its role as custodian until the funds are allocated to the private parties, organizations or government agencies to which they belong. The County is responsible for ensuring that the assets reported in these funds are used for their intended purposes. This fiduciary activity is reported in a separate Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. These funds are excluded from the County’s government-wide financial statements because the County cannot use these assets to finance its operations. 40 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

FINANCIAL ANALYSIS OF THE COUNTY AS A WHOLE

The County is presenting its financial statements as required by the Government Accounting Standards Board (GASB) Statement No. 34, “Basic Financial Statements – and MD&A – for State and Local Governments.” The Statement of Net Position and the Statement of Activities report information about the County as a whole and about its activities to measure the results of the year’s activities.

GOVERNMENT-WIDE FINANCIAL STATEMENTS:

The County’s net position at December 31, 2015 and 2014 are presented below:

Summary of Statement of Net Position December 31, 2015 With Comparative Totals for December 31, 2014 (rounded in millions)

Governmental Activities

2015 2014

Current and other assets $ 604.3 502.8 Capital assets 760.0 752.4 Total assets 1,364.3 1,255.2

Deferred outflows of resources 64.8 27.7 Total deferred outflows 64.8 27.7

Current and other liabilities 367.1 258.4 Non-current liabilities 1,463.3 1,434.3 Total liabilities 1,830.4 1,692.7

Deferred inflows of resources 134.7 166.4 Total deferred inflows 134.7 166.4

Net position: Net investment in capital assets 6.7 (11.8) Restricted 47.8 45.8 Unrestricted (590.5) (610.2) Total net position $ (536.0) (576.2) 2015 County of Allegheny Comprehensive Annual Financial Report 41

Management's Discussion and Analysis

NET POSITION:

For 2015, net position of governmental activities increased $40.2 million to ($536.0) million from ($576.2) million in 2014. Net position consists of a $6.7 million in net investment in capital assets, $47.8 million restricted for various grant related purposes; and an unrestricted net deficit of $590.5 million. Unfunded long-term liabilities for compensated absences ($8.7 million), workers' compensation ($3.2 million), pension ($580.5 million), and Other Post Employment Benefits (OPEB) ($35.5 million) are responsible for the County's unrestricted net deficit.

The following table presents the County’s change in net position for the years ended December 31, 2015 and 2014:

Change in Net Position Year Ended December 31, 2015 With Comparative Amounts for December 31, 2014 (rounded in millions)

Governmental Activities 2015 2014 Variance Revenues Program revenues: Fees, fines and charges for services $ 130.2 124.0 6.2 Operating grants and contributions 962.8 955.8 7.0 Capital grants and contributions 17.6 45.6 (28.0) General revenues: Property taxes 344.3 338.6 5.7 Sales and use taxes 47.6 46.1 1.5 Gaming local share assessment 5.5 5.5 - Hotel Tax 4.2 3.2 1.0 Other 3.2 6.2 (3.0) Total revenues 1,515.4 1,525.0 (9.6) Program expenses General government 249.3 229.8 19.5 Public safety 140.3 137.8 2.5 Public works 34.1 55.1 (21.0) Transportation 39.1 38.1 1.0 Health and welfare 879.2 888.7 (9.5) Culture and recreation 17.6 12.2 5.4 Education 24.6 24.2 0.4 Economic development 37.2 32.4 4.8 Economic opportunity 15.8 13.7 2.1 Interest on long-term debt 38.0 38.4 (0.4) Total expenses 1,475.2 1,470.4 4.8 Change in net position 40.2 54.6 (14.4) Net position – beginning (576.2) (630.8) Net position – ending $ (536.0) (576.2) 42 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

CHANGE IN NET POSITION:

In 2015, the change in net position was an increase of $40.2 million compared to a $54.6 million, a $14.4 million decrease over 2014. Revenue decreased $9.6 million over 2014 due to a $28.0 million decrease in Capital grants funds, as bonds are issued bi-annually. Offsetting the decrease were increases of $5.7 million in property taxes, $6.2 million for charges for services and $7.0 million of grant revenues. A brief summary of the $4.8 million increase in program expenses follows.

General Government Expenses increased $19.5 million due to increases in Sheriff Office ($.3 million), Non Departmental ($1.5 million), District Attorney Office ($.6 million), Administrative Services - MIS ($.5 million), Medical Examiner ($.4 million), Real Estate ($.8 million) and Juvenile Family ($2.3 million). In addition, pension allocation expenditures were $10 million higher.

Public Safety expenses increased $2.5 million, as Jail expenses for healthcare for Inmates rose.

Public Works expenses decreased by $21.0 million. Capital outlays decreased and Parks assumed maintenance costs.

Transportation expense rose $1.0 million.

Health and Welfare expenses decreased $9.5 million as funding from State and Federal governments were reduced.

Culture and Recreation expenses increased $5.4 million, as Parks assumed the maintenance costs.

Economic Development expenses increased $4.8 million, as more projects were funded including the Home grant.

Economic Opportunity expenses rose $2.1 million, as Head Start Service Area Plan funding increased by $2 million.

All programs benefited by a $10 million credit in healthcare from Highmark, Inc. 2015 County of Allegheny Comprehensive Annual Financial Report 43

Management's Discussion and Analysis

SOURCES OF REVENUES:

The following chart graphically depicts the government-wide sources of revenues for the Year Ended December 31, 2015:

Sources of Revenues Total revenues: $1.5 billion Program revenue Operating Grants 63.5%

Program revenue Capital Grants 1.2% General revenue other 0.2%

Program revenue fees, fines General revenue hotel tax and charges 0.3% 8.6%

General revenue property General revenue gaming LSA General revenue sales and taxes 0.4% use taxes 22.7% 3.1%

Total government-wide revenues of $1.5 billion were derived primarily from program based operating grants and contributions, representing 63.5% of the total. Property taxes made up the second largest source of revenue at 22.7%, followed by program fees, fines and charges at 8.6%, sales and use tax at 3.1%, program based capital grants and contributions at 1.2%, gaming taxes at 0.4%, hotel tax general revenue at 0.3% and other general revenue at 0.2%. 44 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

PROGRAM EXPENSES:

The following chart graphically depicts the government-wide program expenses for the year ended December 31, 2015:

Program Expenses Total expenses: $1.5 billion Health and welfare 59.6%

Interest on long-term debt Transportation 2.6% 2.6% Public Works 2.3% Economic opportunity 1.1% Economic Development 2.5% Education 1.7% Public Safety General government 9.5% 16.9% Culture and recreation 1.2%

Total expenses for all programs in 2015 were $1.5 billion. The expenses cover a range of services, with the largest being health and welfare (health, behavioral health, intellectual disability, drug and alcohol program, children, youth and family services, area agency on aging, regional nursing centers) at 59.6%. The second largest program area was general government (central management, facilities management, administrative services, row offices and courts) at 16.9%, followed by public safety (jail, police, emergency management) at 9.5%, interest payments on long-term debt at 2.6%, transportation expenses (contributions to the Port Authority of Allegheny County) at 2.6%, economic development (community development) at 2.5%, public works (maintenance and engineering) at 2.3%, education (contributions to the Community College of Allegheny County) at 1.7%, culture and recreation (parks) at 1.2% and economic opportunity (community service, employment and training) at 1.1%. 2015 County of Allegheny Comprehensive Annual Financial Report 45

Management's Discussion and Analysis

NET PROGRAM EXPENSES/REVENUES:

Net program expenses/revenues indicates the amount of support required from taxes and other general revenues for the year. The following chart graphically depicts the net program expenses/revenues by function/program for the year ended December 31, 2015: Net Program Expenses/Revenues (in millions)

$50.0

$0.0

-$50.0

-$100.0

-$150.0

-$200.0 Education Public safety Public Works Transportation Health and welfare Health and General government Economic Opportunity Culture and Recreation Economic Development Interest on long-term Debt

General government expenses required the most general revenue for support, needing $161.7 million or 64.9% of the $249.3 million in 2015 expenses. Public safety required $92.5 million (65.9%) in general revenue support for $140.3 million of total expenses, while health and welfare required $41.2 million (4.7%) of $879.3 million of expenses; education programs required $24.3 million (98.8%) of $24.6 million of expenses, interest payments of long-term debt required $37.6 million (99.2%) of the $38.0 million of interest expenses, economic development required $6.8 million (18.3%) of the $37.2 million of expenses, public works required $10.0 million (29.3%) of the $34.2 million of expenses, economic opportunity required $0.3 million (1.8%) of the $15.8 million of expenses. Culture and recreation has an excess of $1.4 million in revenue of $17.6 million of expenses and transportation had an excess of $8.5 million on expenses of $39.1 million. 46 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS

As noted earlier, Allegheny County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

GOVERNMENTAL FUNDS:

The General, County Grants, Human Service Grants and Capital Projects make up the County’s major governmental funds. The Liquid Fuel Tax, Transportation and Debt Service Funds, are considered non-major (other governmental) funds. The focus of the governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unassigned General Fund balance may serve as a useful measure of the County’s net resources available for spending at the end of the fiscal year.

NORMAL IMPACTS:

There are nine basic impacts on revenues and expenditures, as outlined below:

Revenues:

Economic conditions – which can reflect a growing, stable or declining economic environment, and have a substantial impact on tax revenues as well as public spending habits for permits and other elective user fees and taxable consumed spending.

Changing patterns in intergovernmental and grant revenue (both recurring and non-recurring) – certain recurring revenues (formula grants, etc.) may experience significant changes periodically while non-recurring or one-time revenues (project grants, direct payments for specified use, etc.) are less predictable and often distorting in their impact on year-to-year comparisons.

Increase in assessed valuations of real property – the County derives a substantial amount of its revenues from property taxes, which are based on the market value of real property. The County’s Home Rule Charter limits property tax revenue from a countywide reassessment to an amount of real estate tax revenue received in the preceding year, excluding new construction or improvements made to existing structures.

Increase/decrease in County Council approved rates – while the County’s sales tax is fixed at one percent, County Council has the authority to periodically increase or decrease various other rates (property taxes, alcoholic beverage and rental vehicle taxes, recording and filing fees, recreation fees, etc.).

Market impacts on investments – market conditions can cause income on the County’s investmentportfoliotofluctuateyear-to-year. 2015 County of Allegheny Comprehensive Annual Financial Report 47

Management's Discussion and Analysis

Expenditures:

Introduction of new programs – within the functional expense categories (public safety, public works, health and welfare, etc.) individual programs may be added or deleted based upon the changing needs of the community.

Increase/decrease in personnel – changes in service demand may cause an increase or decrease in staffing costs (salaries and fringe benefits), which represent a significant expense to the County.

Salary increases (cost of living, merit and market adjustment and collective bargaining agreements) – the ability to attract and retain human resources requires the County to strive to approach a competitive salary range position in the marketplace.

Inflation – while overall inflation appears to be modest, the various health related programs and services the County provides have increased significantly. This sector of the economy has in recent years experienced above average increases in costs. In addition, the County is a consumer of various commodities which may experience unusual commodity specific increases.

Governmental fund revenues, expenditures and net changes at fiscal year ended December 31, 2015 and 2014 were:

Governmental Fund Revenues, Expenditures, Other Financing and Net Change in Fund Balance (rounded in millions) Net Change in Fund 2015 Balances Net Other Fund Revenues Expenditures Financing 2015 2014

General $ 722.3 697.4 (14.8) 10.1 24.5 County Grants 128.3 117.6 3.9 14.6 1.7 Human Service Grants 535.6 541.6 5.8 (0.2) 0.2 Capital Projects 19.9 62.4 6.9 (35.6) 44.7 Other 107.9 105.7 (1.8) 0.4 1.5

Total Change $ 1,514.0 1,524.7 - (10.7) 72.6

At December 31, 2015, the County's government funds reported a combined fund balance of $239.7 million, a decrease of $10.7 million compared to the previous year's increase of $72.6 million. 48 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

The General Fund net change in fund balance was an increase of $10.1 million compared to a $24.5 million increase in 2014. General Fund revenues increased $10.1 million, net other financing uses increased $0.5 million; and expenditures were $25.0 million higher than the previous year.

The following is an analysis of the increase in General Fund revenue of $10.1 million and decrease in net other financing uses of ($.5) million.

The major factor for the $7.5 million increase in General Fund taxes was an increase in the millage distribution and a resulting decrease in Debt Service Fund allocation and the $2.5 million decrease in tax refunds.

Sales tax revenues increased 3.1% or $1.4 million as collections indicated an upswing in the economy.

Hotel rental tax usage increased $1.1 million.

Federal revenues decreased by $3.1 million or 3.7% as detailed below (in millions):

Decrease in reimbursement for federal prisoners $ (0.8) Increase in funding for foster care 0.1 Decrease in skilled nursing care (1.0) Increase in Medicare Part A 0.3 Increase in Medicare Part B 0.2 Decrease in Title IV-E - Child Placement (7.4) Increase in Temporary Assistance for Needy Families (TANF) 0.5 Increase in Title IV-E-Adoption 4.9 Increase in Title IV-E Independent Living 0.1

State revenues increased by $9.0 million for the reasons detailed below (in millions):

Increase in Act 315 Health Department funding $0.2 Decrease in Kane's Intergovernmental Transfers Program performance (1.0) bonuses Increase in skilled nursing care 1.6 Increase in Medicaid Paid Prescriptions 0.9 Increase in Act 148 Special Grant Incentives 0.3 Increase in Act 148 CYF services 6.2 Increase in Juvenile Probation 0.8 2015 County of Allegheny Comprehensive Annual Financial Report 49

Management's Discussion and Analysis

Local units revenues increased $0.1 million.

Charges for services increased $3.0 million for the following reasons (in millions):

Increase in Real Estate commissions, filing fees and copying $2.2 County indirect costs decreased (0.1) Patient income increased 1.3 Health department fees increased 0.2 Parks winter fees increased 0.2 Use of Property and equipment decreased (0.1) Private/Commercial insurance at Kane decreased (0.7)

Other financing uses - net totaled ($14.8) million in 2015 for the following reasons (in millions):

Interdepartmental transfer agreements $1.1 Matching requirement and County Grant deficit funding (6.5) Matching requirement for Human Service grants (4.5) Transfer to Debt Service Fund (5.4) Transfer of capital projects portion of fixed asset expenditures 0.5

The following is an analysis of the General Fund expenditures increase of $25.0 million.

General government expenditures increased by $11.5 million or 6.3% between years. Most of the increase is attributed Department of Facilities Management Building Maintenance Trades ($2.4 million). Other increases were incurred by the Courts - Juvenile Family ($2.3 million) and DA Office ($0.6 million).

Public safety expenditures increased by $4.4 million as follows: the Jail ($3 million), the County Police ($1.2 million) and Emergency Management ($.2 million).

Public works expenditures decreased $4.2 million due to personnel transfers to the Parks Maintenance division.

CCAC's appropriation was increased by $0.5 million in 2015.

Health and welfare expenditures increased $7.7 million, $6.1 million in Children, Youth and Families and $1.6 million in the Kane facilities.

Culture and recreation expenditures increased $5.3 million due to the addition of the Parks Maintenace division ($4.6 million) and the new Park Rangers division ($.2 million).

The Human Service Grants Fund had no significant change in net fund balances in 2015. This occurs because grants are generally expenditure driven and capped at mandated spending levels. The County Grants Fund's $14.6 million increase in fund balance is attributed to a transfer in of $12.2 million from Trust and Agency funds. It should be noted the County received Human Services Grants Fund intergovernmental revenues of $534.5 million and County Grants Fund revenue of $84.9 million in 2015. Human Service revenues decreased $18.1 million compared to last year and County Grants revenues increased $23.8 million.

The Capital Projects decrease in fund balance was $36.6 million in 2015 opposed to a $44.7 increase in 2014. The difference is that there were no bonds issued in 2015 and bond proceeds in 2014 were $70.4 million. 50 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

Other governmental fund balances increased by $0.4 million. Of the $18.5 million excess of revenues over expenditures in the Transportation Fund, $17.2 million was transferred to pay PAT debt service ($9.9 million) and Capital Project Fund expenditures ($7.3 million). Debt Service's fund balance decreased $1.0 million to meet required 2015 payments. It should be noted healthcare expenditures were decreased by a $10 million credit issued by Highmark, Inc.

The following chart graphically depicts the total revenues received and expenditures incurred by fund for the year ended December 31, 2015:

Governmental Fund Revenues and Expenditures at December 31, 2015 (in millions)

Revenues Expenditures Other Financing Sources

$700.0

$600.0

$500.0

$400.0

$300.0

$200.0

$100.0

$0.0

-$100.0 General Fund County Grants Human Service Capital Projects Other Fund Grants Fund Fund Governmental Funds 2015 County of Allegheny Comprehensive Annual Financial Report 51

Management's Discussion and Analysis

The following table presents the County’s previously analyzed change in governmental fund balances for the year ended December 31, 2015:

Change in Governmental Fund Balances Year Ended December 31, 2015 (rounded in millions)

Human County Service Capital Other Fund Balance General Grants Grants Projects Governmental Beginning 1/1/15 $ Net Change 10.1 14.6 (0.2) (35.6) 0.4 Ending 12/31/15 $ 10.1 14.6 (0.2) (35.6) 0.4

The following chart illustrates the Governmental Fund fund balances at December 31, 2015:

Governmental Fund Balances at December 31, 2015 (in millions) Restricted Committed Assigned Unassigned

$120.0

$100.0

$80.0

$60.0

$40.0

$20.0

$0.0 General Fund County Grants Human Service Capital Projects Other Fund Grants Fund Fund Governmental Funds

The General Fund is the chief operating fund of the County. At December 31, 2015, the total fund balance in the General Fund was $69.7 million. The unassigned fund balance was $41.5 million, which is 5.7% of 2015 General Fund revenues. The unassigned fund balance increased $3.2 million, or 8.2% between years. The County has assigned $2.5 million of fund balance to pay appeals for litigation from reassessment, $24.0 million for future healthcare costs, $0.5 million for IRS settlement and $1.2 million for purchases on order. These assignments should not affect the availability of fund resources for future use. 52 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

2015 GENERAL FUND BUDGET

The difference between the 2015 adopted and the 2015 final (includes financing uses) General Fund budget of $725.6 million, net of $1.7 million in reappropriated 2014 encumbrances, was an increase of $16.7 million. Numerous budget transfers were approved by County Council throughout the year to increase some and reduce other departments’ appropriations to arrive at the final budget. The major transfers to provide appropriations were $2.3 million to Juvenile Court, $0.9 million to Facilities Managements, $.9 million to the Jail and $0.7 million to Administrative Services' Management Information Systems.

The variance between actual revenues to final budget was a $1.6 million unfavorable variance. Tax refunds were $1.1 million more than budget. Federal revenues were $5.1 million under budget. Hotel tax collections were $1.1 over estimated. The variance between actual expenditures and budget was a $18.4 million favorable variance. The decreases in expenditures are attributed to Health and Welfare programs being $9.4 million under budget and a $10 million Highmark, Inc. healthcare credit.

2016 OPERATING BUDGET

On December 1, 2015, Allegheny County Council adopted a 2016 operating budget of $854.8 million, that is $15.7 million or 1.87% higher than 2015's budget. This also marks the fourth consecutive year that the Comprehensive Fiscal Plan is presented without the use of one-time revenue sources to balance the county’s Operating Budget. Some highlights:

The budget was prepared with the help of new software, PowerPlan, which is made specifically for budgeting. This software helped to streamline the processes of collecting requests from each budget area, analyzing the data presented, applying global changes as needed and creating consolidated reports as presented in this comprehensive fiscal plan. Implementation of additional enhancements will continue in 2016.

Thanks to action by the General Assembly earlier this year, a new 9-1-1 state funding law is in place which will provide additional revenues to the county during a transition period, as well as under a new funding formula. Accordingly, the appropriation for the Department of Emergency Services includes a reduction of cash match. A state 9-1-1 Board, which includes representation from Allegheny County, will establish the final distribution formula. Once complete, we expect to receive full funding for these services, enabling us to maintain the integrity of the current system and the level of public safety for our citizens.

With the implementation of the $5 vehicle registration fee specific to our county, a new Infrastructure Support Fund is now part of our operating budget. This new fee will enable us to expand the number of roads being repaired and repaved, as well as fund our match requirements on bridge projects.

The creation of a second, 45-bed Geriatric Behavioral Health Unit at the Glen Hazel Kane Regional Center is planned to fill an existing need and reduce the current waiting list for this service. This addition will have a positive impact on the county’s budget. The Kane Regional Centers will also be implementing an electronic medical records system in 2016 which will be a key tool for improving patient care.

This year’s budget incorporates the costs associated with the County’s management of medical services at the Jail. 2015 County of Allegheny Comprehensive Annual Financial Report 53

Management's Discussion and Analysis

CAPITAL ASSET AND DEBT ADMINISTRATION

CAPITAL ASSETS:

The County’s investment in capital assets at December 31, 2015, net of accumulated depreciation, amounted to $761.1 million. Capital assets consist primarily of land, land improvements, construction in progress, buildings, equipment and infrastructure. The following is a summary of capital assets at December 31, 2015 and 2014:

Summary of Capital Assets

Balance at Balance at Increase December 31, 2015 December 31, 2014 (Decrease) Land $ 24,604,502 24,376,590 227,912 Land improvements 8,192,901 8,192,901 - Construction in progress 26,579,165 65,890,713 (39,311,548) Buildings 446,206,312 443,364,132 2,842,180 Infrastructure 587,790,958 522,765,579 65,025,379 Furniture & other equipment 101,209,462 102,609,892 (1,400,430) Total capital assets 1,194,583,300 1,167,199,807 27,383,493

Less accumulated depreciation for: Land improvements 7,340,147 7,051,708 288,439 Buildings 199,974,527 191,782,387 8,192,140 Infrastructure 190,001,742 178,808,584 11,193,158 Furniture & other equipment 37,211,834 37,078,683 133,151 Total accumulated depreciation 434,528,250 414,721,362 19,806,888 Total $ 760,055,050 752,478,445 7,576,605

The increase in total capital assets of $27.3 million is due to increases in land, buildings, and infrastructure of $0.2 million, $2.8 million, and $65.0 million, respectively, offset by the decreases in construction in progress and furniture and other equipment of $39.3 million and $1.4 million, respectively. The total capital assets increase of $27.43 million was offset by the increase in accumulated depreciation of $19.8 million, resulting in a net increase in capital assets of $7.5 million.

Major capital events during the current fiscal year included the following:

The Mansfield Bridge rehabilitation was completed in the Spring of 2015 and $33.7 million was moved from Construction in progress to Infrastructure. Construction on the Greensburg Pike Bridge was completed and increased Infrastructure by $20.3 million. Construction on the 16th Street Bridge was completed and increased Infrastructure by $10.5 million. Bower Hill Road reconstruction was completed and increased Infrastructure by $2.0 million. In 2015, management decided to remove from capital assets all Furniture and other equipment with a value less than $500, except for items in the Department of DHS. This resulted in a $1.4 million decrease in Furniture and other equipment.

Additional information on the County’s capital assets can be found in Note 5 of this report.

LONG-TERM DEBT:

At December 31, 2015, the County had $857.1 million of bond debt outstanding. This was an decrease of $46.9 million, or 5.2%, from the previous year. The following chart details activity related to general obligation bonds during 2015: 54 2015 County of Allegheny Comprehensive Annual Financial Report

Management's Discussion and Analysis

Summary of General Obligation Bond Activity

Beginning Balance at 1/1/2015 $ 904,042,704 Adjustment for Component Unit 22,135

Less: Principal Payments (34,562,500) General Obligation Bonds/Notes 869,502,339 Less: Amortization of Premium/Discount (12,353,410) Ending Balance at 12/31/2015 $ 857,148,929

Additional information on the County’s long-term debt can be found in Note 8 of this report.

BOND RATING:

The County continued to maintain investment grade bond ratings from two major rating agencies on its outstanding debt. Those ratings are: AA- from Standard & Poor’s with a stable outlook and A1 from Moody’s Investor Service, with a stable outlook. More detailed information about the County’s long-term liabilities can be found in Note 8 of the Notes to the Financial Statements.

CONTACTING THE COUNTY’S FINANCIAL MANAGEMENT

This financial report is designed to provide citizens, taxpayers, customers, investors and creditors with a general overview of the County’s finances and to demonstrate the County’s accountability. Questions concerning this report or requests for additional information should be directed to:

Office of the Controller County of Allegheny, Pennsylvania Room 104 Courthouse 436 Grant Street Pittsburgh, PA 15219-2498 2015 County of Allegheny Comprehensive Annual Financial Report 55

Basic Financial Statements

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS GOVERNMENTAL FUND FINANCIAL STATEMENTS PROPRIETARY FUND FINANCIAL STATEMENTS FIDUCIARY FUND FINANCIAL STATEMENTS COMPONENT UNIT FINANCIAL STATEMENTS NOTES TO BASIC FINANCIAL STATEMENTS 56 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

2015 County of Allegheny Comprehensive Annual Financial Report 57

Basic Financial Statements

Exhibit 1 (Page 1 of 3)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Net Position December 31 or June 30, 2015

Governmental Component Activities Units

Assets

Cash and short-term investments (note 3) $ 160,753,769 244,265,088 Time deposits and other investments (note 3) - 8,534,165 Restricted/noncurrent cash and short-term investments (note 3) 50,084,550 227,060,774 Delinquent property taxes receivable, net (note 4) 9,988,618 - Liened property taxes receivable, net (note 4) 27,411,103 - Sales tax receivable (note 4) 9,152,545 - Due from other governments, net (note 4) 320,849,854 31,227,617 Due from component units (note 9) 4,074,199 - Due from primary government (note 9) - 1,296,855 Loans receivable (note 4) - 22,892,618 Alcoholic beverage tax receivable 3,020,901 - Rental vehicle tax receivable 569,167 - Accounts receivable (note 4): Trade - 8,704,760 Other 15,267,567 21,864,182 Accrued penalty and interest receivable 155,788 - Accrued interest and dividends receivable 72,454 3,188 Derivative instruments - forward delivery agreements - 1,408,617 Inventory - 21,135,564 Other assets 2,851,818 4,479,369 Prepaid bond insurance costs - 351,217 Land (note 5) 24,604,502 202,074,029 Land improvements, net of accumulated depreciation (note 5) 852,754 - Construction in progress (note 5) 26,579,165 64,612,067 Infrastructure, net of accumulated depreciation (note 5) 397,789,216 - Buildings and equipment, net of accumulated depreciation (note 5) 310,229,413 1,851,113,162

Total assets 1,364,307,383 2,711,023,272

Deferred Outflows of Resources

Deferred loss on refunding debt - 15,109,071 Accumulated decrease in fair value of hedging derivative (note 14) 6,465,713 - Net difference between projected and actual earnings on pension plan investments 51,308,915 11,713,191 Difference between expected and actual experience - 7,546 Change of assumptions - net pension liability 7,100,496 598,367 Change in proportion - net pension liability - 2,300,058 Contributions subsequent to the measurement date - 11,179,498

Total deferred outflows of resources 64,875,124 40,907,731 58 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Exhibit 1 (Page 2 of 3)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Net Position December 31 or June 30, 2015

Governmental Component Activities Units

Liabilities

Vouchers payable 101,692,281 45,876,115 Accrued interest payable 4,492,326 217,382 Accrued payroll 6,432,503 21,126,289 Payroll withholdings 1,780,850 - Due to component units (note 9) 1,296,855 - Due to primary government (note 9) - 4,074,199 Due to other governments 372,292 1,121,738 Amount due airlines - 2,128,776 Accrued liabilities 94,097,924 10,118,086 Retainage payable 337,819 - Tax refunds payable 1,103,879 - Unearned revenue Current 115,959,050 103,394,766 Non-current - 13,148,785 Unearned tuition and student deposits - 2,085,499 Accrued unemployment compensation 191,622 - Matured bonds payable 113,868 - Other liabilities Current - 7,401,008 Non-current (note 6) - 2,544,306 Other post employment benefits (note 11) Non-current 35,520,421 314,801,109 Accrued pension costs Current contributions 1,128,266 - Non-current net pension liability (note 10) 580,456,675 330,884,158 Accrued workers' compensation (notes 6 and 8) Current 3,479,671 - Non-current 3,197,784 - Compensated absences (notes 1 and 8) Current 558,369 2,979,296 Non-current 8,665,705 - General obligation/revenue bonds/notes/ leases (notes 8 and 14) Current 34,091,717 77,027,055 Non-current 828,399,237 480,100,565 Reserve for claims and settlements (note 6) Current - 18,347,808 Non-current 634,205 5,472,398 Derivative instrument - rate swap 6,465,713 -

Total liabilities 1,830,469,032 1,442,849,338

Deferred Inflows of Resources

Changes in fair values of forward delivery agreements - 1,408,617 Changes in pension plan assumptions 131,423,598 10,469,622 Net difference between projectd and actual earnings on pension plan investments - 190,000 Changes in proportions 2,300,058 436,582 Net difference between expected and actual experience 959,746 80,879 Difference between employer contributions and proportionate share of total contributions - 2,840

Total deferred inflows of resources 134,683,402 12,588,540 2015 County of Allegheny Comprehensive Annual Financial Report 59

Basic Financial Statements

Exhibit 1 (Page 3 of 3)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Net Position December 31 or June 30, 2015

Governmental Component Activities Units

Net Position

Net position (deficit): (note 1) Net investment in capital assets 6,661,257 1,709,473,134 Restricted for: County grants 28,975,859 - Human service grants 2 - Capital projects - 77,407,310 Debt service 2,760,294 19,978,735 Liquid fuel 11,731 - Transportation 16,111,213 - Scholarship and tuition funds - 224,234 Other student funds - 941,098 Other projects - 58,475,884 Permanently - 3,891,073 Unrestricted net position (deficit) (590,490,283) (573,898,343)

Total net position $ (535,969,927) 1,296,493,125

See accompanying notes to financial statements. 60 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Activities Year Ended December 31 or June 30, 2015

Charges for Functions/Programs Expenses Services

Primary government: General government $ 249,258,742 56,745,064 Public safety 140,330,089 16,308,687 Public works 34,175,109 899,622 Transportation 39,082,188 - Health and welfare 879,250,681 48,391,153 Culture and recreation 17,591,356 4,931,242 Education 24,604,197 - Economic development 37,218,144 2,939,164 Economic opportunity 15,780,881 - Interest on long-term debt 37,950,148 - Total primary government $ 1,475,241,535 130,214,932

Component units: Allegheny County Airport Authority $ 166,345,773 137,226,972 Port Authority of Allegheny County 519,633,661 107,445,263 Community College of Allegheny County 123,280,197 32,620,103 Redevelopment Authority of Allegheny County 39,871,263 2,045,927 Allegheny County Industrial Development Authority 257,491 278,764 Nonmajor Component Units 9,835,654 1,843,049 Total component units $ 859,224,039 281,460,078

General Revenues: Property taxes, levied for general purpose Property taxes, levied for debt service Sales taxes Hotel rental tax Gaming local share assessment Payment from Allegheny County Interest and investment earnings Gain on sale of assets Gaming Act revenue Gas drilling revenue Unrealized gain on investment Miscellaneous Total general revenues Change in net position Net position - beginning of year (as restated) Net position - end of year

See accompanying notes to financial statements. 2015 County of Allegheny Comprehensive Annual Financial Report 61

Basic Financial Statements

Exhibit 2

Net (Expense) Revenue Program Revenues and Changes in Net Position Operating Capital Grants Grants and and Primary Government Contributions Contributions Total Component Units

30,773,222 50,144 (161,690,312) - 31,487,143 - (92,534,259) - 7,235,353 16,010,031 (10,030,103) - 47,597,341 - 8,515,153 - 789,653,834 - (41,205,694) - 12,739,001 1,282,769 1,361,656 - 303,510 - (24,300,687) - 27,477,513 - (6,801,467) - 15,503,571 - (277,310) - - 300,361 (37,649,787) - 962,770,488 17,643,305 (364,612,810) -

5,030,877 30,616,221 - 6,528,297 229,373,917 80,806,445 - (102,008,036) 74,527,639 1,145,158 - (14,987,297) 36,306,499 - - (1,518,837) - - - 21,273 6,396,300 1,076,868 - (519,437) 351,635,232 113,644,692 - (112,484,037)

$ 288,304,498 - 56,035,012 - 47,559,039 - 4,225,196 - 5,494,366 - - 61,116,934 1,178,189 920,816 - 39,551 - 12,400,000 - 10,192,316 - 35,676 2,014,403 1,929,109 404,810,703 86,634,402 40,197,893 (25,849,635) (576,167,820) 1,322,342,760 $ (535,969,927) 1,296,493,125 62 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

COUNTY OF ALLEGHENY, PENNSYLVANIA Balance Sheet Governmental Funds December 31, 2015

County Grants Human Services General Fund Grants Fund Assets Cash and short-term investments (note 3) $ - 46,255,946 7,067,611 Restricted cash and short-term investments (notes 3) - 1,408,830 45,532,348 Delinquent property taxes receivable, net (note 4) 8,352,432 - - Liened property taxes receivable, net (note 4) 21,305,587 - - Sales tax receivable (note 4) 9,152,545 - - Due from other funds (note 9) 18,300,896 1,328,493 3,410,718 Due from other governments, net of $1,589,554 allowance for doubtful accounts in the General Fund 152,649,062 23,315,456 129,852,718 Due from component units (note 9) 1,259,053 237,670 2,549,163 Alcoholic beverage tax receivable - - - Rental vehicle tax receivable - - - Accounts receivable: Other, net of $3,220,046 allowance for doubtful accounts in the General Fund 11,212,963 890,848 3,077,298 Accrued penalty and interest receivable 127,252 - - Accrued interest and dividends receivable 21,675 5,441 14,406

Total assets $ 222,381,465 73,442,684 191,504,262

Liabilities Vouchers payable $ 49,737,416 7,229,739 41,963,510 Accrued payroll 5,337,724 790,241 304,538 Payroll withholdings 1,780,850 - - Due to other funds (note 9) 22,306,570 4,818,271 7,030,606 Tax refunds payable 923,058 - - Accrued liabilities 36,421,012 2,047,855 43,403,303 Accrued interest payable - - - Due to component units (note 9) - 1,184,489 109,992 Retainage payable - 61 - Due to other governments 359,150 13,142 - Unearned revenue 5,078,176 12,243,133 98,637,741 Accrued pension costs 950,694 129,044 48,528 Accrued workers' compensation (note 6) 406,405 1,431 2,334 Accrued unemployment compensation 169,461 18,453 3,708 Matured bonds payable - - -

Total liabilities 123,470,516 28,475,859 191,504,260 2015 County of Allegheny Comprehensive Annual Financial Report 63

Basic Financial Statements

Exhibit 3 (Page 1 of 2)

Other Total Capital Governmental Governmental Projects Funds Funds

94,131,682 12,521,145 159,976,384 - 3,143,372 50,084,550 - 1,636,186 9,988,618 - 6,105,516 27,411,103 - - 9,152,545 17,516,066 178,365 40,734,538

14,911,302 121,316 320,849,854 28,313 - 4,074,199 - 3,020,901 3,020,901 - 569,167 569,167

86,458 - 15,267,567 - 28,536 155,788 29,811 1,121 72,454

126,703,632 27,325,625 641,357,668

2,645,650 482 101,576,797 - - 6,432,503 - - 1,780,850 6,449,895 136,839 40,742,181 - 180,821 1,103,879 11,556,210 - 93,428,380 - 1,759 1,759 2,374 - 1,296,855 337,758 - 337,819 - - 372,292 - - 115,959,050 - - 1,128,266 - - 410,170 - - 191,622 - 113,868 113,868

20,991,887 433,769 364,876,291 64 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

COUNTY OF ALLEGHENY, PENNSYLVANIA Balance Sheet Governmental Funds December 31, 2015

County Grants Human Services General Fund Grants Fund

Deferred Inflows of Resources Unavailable revenue - property taxes 29,184,598 - -

Fund Balances (note 1I) Restricted for: Special projects - 5,704,646 - Community redevelopment - 2,350,484 - Law enforcement - 4,733,320 - Transit system - - - Health and welfare - - 2 Parks' system - - - Emergency services - 1,501,986 - Health services - 8,278,408 - Technology projects - 1,771,421 - Debtserviceonenergybonds - - - Roads - - - Various projects - - - Judicial services - 4,512,507 - Recreation events - 123,087 - Committed to: Community redevelopment - 27,633 - Law enforcement - 491,519 - Emergency services - 169,229 - Health services - 14,708,799 - Judicial services - 460,254 - Recreation events - 17,107 - Assigned to: Purchases on order 1,206,670 - - 2013 Board of Viewers tax appeals 1,020,968 - - 2014 Board of Viewers tax appeals 1,521,754 - - Future healthcare cost 24,000,000 - - IRS settlement 500,000 - - Special projects - 13,681 - Debt service - - - Judicial services - 26,279 - Recreation events - 53,772 - Public maintenance - 22,693 - Unassigned 41,476,959 - -

Total fund balances 69,726,351 44,966,825 2

Total liabilities, deferred inflows of resources, and fund balances $ 222,381,465 73,442,684 191,504,262

See accompanying notes to financial statements. 2015 County of Allegheny Comprehensive Annual Financial Report 65

Basic Financial Statements

Exhibit 3 (Page 2 of 2)

Other Total Capital Governmental Governmental Projects Funds Funds

- 7,620,612 36,805,210

- - 5,704,646 - - 2,350,484 - - 4,733,320 - 16,111,213 16,111,213 - - 2 1,525,358 - 1,525,358 - - 1,501,986 - - 8,278,408 - - 1,771,421 - 2,760,294 2,760,294 401,966 11,731 413,697 103,784,421 - 103,784,421 - - 4,512,507 - - 123,087

- - 27,633 - - 491,519 - - 169,229 - - 14,708,799 - - 460,254 - - 17,107

- - 1,206,670 - - 1,020,968 - - 1,521,754 - - 24,000,000 - - 500,000 - - 13,681 - 388,006 388,006 - - 26,279 - - 53,772 - - 22,693 - - 41,476,959

105,711,745 19,271,244 239,676,167

126,703,632 27,325,625 641,357,668 66 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

2015 County of Allegheny Comprehensive Annual Financial Report 67

Basic Financial Statements

Exhibit 3-A

COUNTY OF ALLEGHENY, PENNSYLVANIA Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position December 31, 2015

Total Fund Balance - Governmental Funds $ 239,676,167

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets, including infrastructure and construction in progress, used in governmental activities are not current financial resources and therefore, are not reported as assets in governmental funds. 760,055,050

Property taxes receivable will be collected in the future, but are not available to pay for the current period's expenditures and therefore, are deferred in the fund statements. 36,805,210

Governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. 2,851,818

Net pension obligation and other post employment benefits are reflected on the Statement of Net Position, but are not considered a current expenditure for the fund statements. (692,251,087)

Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore, are not reported as liabilities in the funds. Long-term liabilities at year end consist of:

Accrued workers' compensation $ (6,267,285) Compensated absences (9,224,074) GO Bonds/Revenue Bonds/Notes/Leases (862,490,954) Accrued interest on bonds (4,490,567) Claims and settlements (634,205) (883,107,085)

Total Net Position - Governmental Activities $ (535,969,927)

See accompanying notes to financial statements. 68 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended December 31, 2015

County Grants Human Services General Fund Grants Fund

Revenues: Property taxes (notes 1 and 4) $ 287,031,512 - - Sales and use tax (note 4) 47,559,039 - - Alcoholic beverage tax - - - Rental vehicle tax - - - Hotel tax 4,225,196 - - Gaming local share assessment 5,494,366 - - Licenses and permits 2,774,956 - - Federal revenues 81,771,508 50,591,484 66,955,004 State revenues 184,844,858 34,336,056 467,530,446 Local governmental units revenues 19,233,120 - - Charges for services and facilities 81,671,674 36,692,978 - Fines and forfeitures 4,085,661 - - Interest earnings 475,033 100,851 14,724 Miscellaneous 3,110,401 6,596,463 1,055,244

Total revenues 722,277,324 128,317,832 535,555,418

Expenditures: Current: General government 194,140,820 39,243,864 - Public safety 103,445,492 30,137,816 - Public works 17,717,368 397,161 - Transportation - - - Health and welfare 335,388,486 16,757,433 525,839,853 Culture and recreation 15,268,098 679,220 - Education 24,314,369 289,828 - Economic development 7,142,838 30,074,402 - Economic opportunity - - 15,780,881 Capital projects - - - Debt Service (note 8): Principal - - - Interest - - -

Total expenditures 697,417,471 117,579,724 541,620,734

Excess (deficiency) of revenue over expenditures 24,859,853 10,738,108 (6,065,316) 2015 County of Allegheny Comprehensive Annual Financial Report 69

Basic Financial Statements

Exhibit 4 (Page 1 of 2)

Other Total Capital Governmental Governmental Projects Funds Funds

- 55,792,852 342,824,364 - - 47,559,039 - 37,860,000 37,860,000 - 9,737,341 9,737,341 - - 4,225,196 - - 5,494,366 - - 2,774,956 7,274,574 299,681 206,892,251 8,600,946 4,138,225 699,450,531 1,467,424 15,606 20,716,150 - - 118,364,652 - - 4,085,661 527,936 59,646 1,178,190 2,014,403 - 12,776,511

19,885,283 107,903,351 1,513,939,208

- - 233,384,684 - - 133,583,308 - 4,046,946 22,161,475 - 29,082,188 29,082,188 - - 877,985,772 - - 15,947,318 - - 24,604,197 - - 37,217,240 - - 15,780,881 62,423,688 - 62,423,688

- 34,562,500 34,562,500 - 37,954,783 37,954,783

62,423,688 105,646,417 1,524,688,034

(42,538,405) 2,256,934 (10,748,826) 70 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended December 31, 2015

County Grants Human Services General Fund Grants Fund

Other financing sources (uses): Transfers in (note 9) 1,687,644 12,788,669 5,815,317 Transfers out (note 9) (16,468,017) (8,883,687) -

Total other financing sources (uses) (14,780,373) 3,904,982 5,815,317

Net change in fund balances 10,079,480 14,643,090 (249,999)

Fund balances at beginning of year 59,646,871 30,323,735 250,001

Fund balances at end of year $ 69,726,351 44,966,825 2

See accompanying notes to financial statements. 2015 County of Allegheny Comprehensive Annual Financial Report 71

Basic Financial Statements

Exhibit 4 (Page 2 of 2)

Other Total Capital Governmental Governmental Projects Funds Funds

7,450,000 15,315,448 43,057,078 (507,056) (17,198,318) (43,057,078)

6,942,944 (1,882,870) -

(35,595,461) 374,064 (10,748,826)

141,307,206 18,897,180 250,424,993

105,711,745 19,271,244 239,676,167 72 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Exhibit 4-A

COUNTY OF ALLEGHENY, PENNSYLVANIA Reconciliation of the Statement of Revenues, Expenditures And Changes in Fund Balances of Governmental Funds To the Statement of Activities Year Ended December 31, 2015

Net Change in Fund Balance - Governmental Funds $ (10,748,826)

Amounts reported for governmental activities in the statement of net position are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of net position, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount, net of deletions, by which capital outlays exceeded depreciation in the current period:

Capital outlays $ 32,922,819 Less: Depreciation expense (25,346,214) 7,576,605

Some taxes will not be collected for several months after the County's year end, they are not considered as "available" revenues in the governmental fund statements. Unavailable revenue - property taxes increased by this amount during the year. 1,522,355

The issuance of long-term obligations (e.g. bonds, leases, loans) provides current financial resources to governmental funds, while the repayment of the principal of long-term obligations consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term obligations and related items. 46,476,135

Net pension obligation and other post employment benefits are reflected on the statement of net position, but are not considered a current expenditure for the fund statements. (5,235,921)

In the statement of net position, long term obligations due to component units are included, wheareas these amounts are not current financial liablities and are not reported on the government funds. 250,000

Interest on long-term obligations in the statement of net position differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of net position, interest expense is recognized as the interest accrues, regardless of when it is due. The difference between the interest accrued in the statement of net position and the amount due is shown here. 153,462

In the statement of net position, certain operating expenses - accumulated employee benefits (workers' compensation, sick days and voluntary separation, claims and settlements) are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used. This amount represents the difference between the amount earned versus the amount used. 204,083

Change in Net Position of Governmental Activities $ 40,197,893

See accompanying notes to financial statements. 2015 County of Allegheny Comprehensive Annual Financial Report 73

Basic Financial Statements

Exhibit 5

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Net Position Proprietary Fund December 31, 2015

Governmental Activities Risk Management Fund

Assets

Current assets: Cash and cash equivalents $ 777,385 Due from other funds: General fund 110,286

Total assets 887,671

Liabilities

Current liabilities: Vouchers payable 115,484 Due to other funds: General Fund 102,643 Accrued liabilities 669,544

Total liabilities 887,671

Net Position

Net position: Unrestricted net position $ -

See accompanying notes to financial statements. 74 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Exhibit 6

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Revenues, Expenses and Changes in Net Position Proprietary Fund Year Ended December 31, 2015

Governmental Activities Risk Management Fund

Operating revenues: Contribution - employee $ 218,762 Contribution - employer 1,289,394 Total operating revenues 1,508,156

Operating expenses: Insurance claims expense 1,508,156 Total operating expenses 1,508,156

Operating income -

Non-operating expenses: Transfers in -

Change in net position -

Net position at beginning of year -

Net position at end of year $ -

See accompanying notes to financial statements. 2015 County of Allegheny Comprehensive Annual Financial Report 75

Basic Financial Statements

Exhibit 7

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Cash Flows Proprietary Fund Year Ended December 31, 2015

Governmental Activities Risk Management Fund

Cash flows from operating activities: Receipts from customers $ 1,544,911 Payments to suppliers (1,436,356) Net cash provided by operating activities 108,555

Balance - beginning of year 668,830

Balance - end of year $ 777,385

Reconciliation of operating income to net cash provided by operating activities Operating income $ -

Adjustments to reconcile operating income to net cash provided by operating activities:

Decrease in accounts receivable $ 7,149 Decrease in due from other funds 29,606 Decrease in due to other funds (11,841) Increase in vouchers payable 115,484 Decrease in accrued liabilities (31,843) Total adjustments 108,555

Net cash provided by operating activities $ 108,555

See accompanying notes to financial statements. 76 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Exhibit 8

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Fiduciary Net Position Fiduciary Funds December 31, 2015

Pension Combined Trust Agency Assets Fund Funds

Cash and short-term investments (note 3) $ 14,563,576 42,571,810 Investments (at fair value): (note 3) Equity: U.S. common and preferred stock 89,073,003 - American Depositary Receipts (ADRs) 1,036,580 - S&P 500 index fund 71,721,915 - Non-U.S. stock and equity mutual fund 128,906,545 - Bonds and Notes: Corporate certificates of deposit 3,838,745 - U.S. government and related agency debt 17,828,917 - Fannie Mae and Freddie Mac debt 7,698,991 - Fixed income mutual funds 130,694,926 - U.S. corporate debt instruments 57,451,339 - Non-U.S. government and corporate debt 14,220,467 - Other Investments: Hedge funds 127,428 - Real estate 103,516,797 - Commodities fund 14,221,684 - Venture capital / private equity 166,457,212 -

806,794,549 -

Amount due from brokers 197,688 - Accrued interest and dividends receivable 1,361,366 371 Accrued employer contributions receivable 600,291 - Accrued employee contributions receivable 601,948 - Other assets 2,896 5,371,981

Total assets 824,122,314 47,944,162

Liabilities

Accrued payroll 3,448 - Vouchers payable 9,686 1,293,841 Payroll withholdings 2,459 - Accrued liabilities 2,209,736 - Due to other governments - 7,559,570 Due to litigants - 8,798,487 Collections held in trust - 15,827,868 Amount due to brokers 433,009 - Other liabilities 15,321 14,464,396

Total liabilities 2,673,659 47,944,162

Net position: Restricted for Pensions $ 821,448,655

See accompanying notes to financial statements. 2015 County of Allegheny Comprehensive Annual Financial Report 77

Basic Financial Statements

Exhibit 9

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Fiduciary Net Position Pension Trust Fund Year Ended December 31, 2015

Pension Trust Fund

Additions: Contributions: Employee $ 33,151,939 Employer 32,925,519

Total contributions 66,077,458

Investment income: Net depreciation in fair value of investments (4,242,909) Interest 5,099,530 Dividends 6,996,850 Stock loan income 134,761 Partnership income 6,140,666 14,128,898 Less: Investment management fees 3,157,341

Total investment income - net 10,971,557

Miscellaneous income 110,310

Total additions - net 77,159,325

Deductions: Benefit payments 85,043,469 Refunds of employee contributions 6,424,892 Salaries, wages and related expenses 295,784 Administrative and miscellaneous expenses 1,029,638

Total deductions 92,793,783

Change in net position (15,634,458)

Net position - beginning of year 837,083,113

Netposition-endofyear $ 821,448,655

See accompanying notes to financial statements. 78 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Net Position Component Units December 31 or June 30, 2015

Allegheny County Port Authority Airport Authority of Allegheny County as of December 31 as of June 30 Assets

Cash and short-term investments (note 3) $ 72,192,730 107,174,473 Time deposits and other investments (note 3) - - Restricted cash and short-term investments (note 3) 129,379,991 32,264,229 Due from other governments (note 4) 6,789,323 8,345,534 Due from primary government (note 9) - - Accounts receivable (note 4): Trade, net of allowance for doubtful accounts 4,039,470 - Other 1,891,363 18,062,333 Accrued interest and dividends receivable 3,188 - Inventory 1,659,069 12,230,853 Other assets 673,482 1,007,297 Loans receivable, net of allowance for loan losses (note 4) - - Derivative instruments - forward delivery agreements 1,408,617 - Prepaid bond insurance costs 351,217 - Land (note 5) 91,354,480 105,162,502 Construction in progress (note 5) 20,013,586 25,882,160 Buildings and equipment net of accumulated depreciation (note 5) 516,139,103 1,213,239,617

Total assets 845,895,619 1,523,368,998

Deferred Outflows of Resources

Loss on refunding debt 3,982,639 10,796,101 Net difference between projectd and actual earnings on pension plan investments 4,428,606 7,244,424 Difference between expected and actual experience - - Change of assumptions - net pension liability 598,367 - Change in proportion - net pension liability 2,300,058 - Contributions subsequent to the measurement date - 10,881,130

Total deferred outflows of resources 11,309,670 28,921,655 2015 County of Allegheny Comprehensive Annual Financial Report 79

Basic Financial Statements

Exhibit 10 (Page 1 of 3)

Redevelopment Allegheny County Nonmajor Community College Authority Industrial Development Component Units of Allegheny County of Allegheny County Authority as of as of June 30 as of December 31 as of December 31 December 31 Total

36,658,332 18,036,658 3,026,098 7,176,797 244,265,088 8,534,165 - - - 8,534,165 34,884,497 17,508,876 1,172 13,022,009 227,060,774 271,172 14,998,476 823,112 - 31,227,617 - 1,184,489 - 112,366 1,296,855

4,379,723 - 7,840 277,727 8,704,760 1,320,356 94,978 - 495,152 21,864,182 - - - - 3,188 - 7,234,200 - 11,442 21,135,564 1,037,053 1,589,995 - 171,542 4,479,369 - 21,164,093 1,728,525 - 22,892,618 - - - - 1,408,617 - - - - 351,217 4,028,747 1,528,300 - - 202,074,029 18,716,321 - - - 64,612,067 115,446,765 2,398,299 - 3,889,378 1,851,113,162

225,277,131 85,738,364 5,586,747 25,156,413 2,711,023,272

330,331 - - - 15,109,071

40,161 - - - 11,713,191 7,546 - - - 7,546 - - - - 598,367 - - - - 2,300,058 298,368 - - - 11,179,498

676,406 - - - 40,907,731 80 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Net Position Component Units December 31 or June 30, 2015

Allegheny County Port Authority Airport Authority of Allegheny County as of December 31 as of June 30 Liabilities

Vouchers payable $ 9,267,252 20,487,416 Accrued interest payable - - Accrued payroll - 17,470,201 Due to primary government (note 9) 1,259,053 - Due to other governments - - Amount due airlines 2,128,776 - Accrued liabilities 6,490,753 - Unearned tuition and student deposits - - Other liabilities: Current 2,151,005 3,870,001 Non-current 133,796 - Unearned revenue: Current 15,399,678 82,889,427 Non-current (note 8) 13,148,785 - Reserve for claims and settlements: Current - 7,224,088 Non-current - 5,472,398 Compensated absences: Current - - General obligation/revenue bonds/notes/ leases (notes 8 and 14): Current 55,504,167 15,232,343 Non-current 181,910,131 212,907,967 Accrued pension costs Non-current net pension liability 48,915,429 277,926,735 Accrued OPEB liability Non-current - 314,801,109

Total liabilities 336,308,825 958,281,685

Deferred Inflows of Resources

Forward delivery agreements 1,408,617 - Net difference between projected and actual earnings on pension plan investments - - Changes in proportions - - Net difference between expected and actural experience 80,879 Difference between employer contributions and proportionate share of total contributions - - Changes in pension plan assumptions 10,469,622

Total deferred inflows of resources 11,959,118 - 2015 County of Allegheny Comprehensive Annual Financial Report 81

Basic Financial Statements

Exhibit 10 (Page 2 of 3)

Redevelopment Allegheny County Nonmajor Community College Authority Industrial Development Component Units of Allegheny County of Allegheny County Authority as of as of June 30 as of December 31 as of December 31 December 31 Total

12,344,648 3,644,456 71,380 60,963 45,876,115 - 217,382 - - 217,382 3,656,088 - - - 21,126,289 - 265,983 - 2,549,163 4,074,199 419,849 701,889 - - 1,121,738 - - - - 2,128,776 3,148,846 - - 478,487 10,118,086 2,085,499 - - - 2,085,499

1,205,256 9 - 174,737 7,401,008 2,410,510 - - - 2,544,306

- 3,486,073 - 1,619,588 103,394,766 - - - - 13,148,785

- - - 11,123,720 18,347,808 - - - - 5,472,398

2,973,218 - - 6,078 2,979,296

3,972,371 2,318,174 - - 77,027,055 71,478,315 13,804,152 - - 480,100,565

4,041,994 - - - 330,884,158

- - - - 314,801,109

107,736,594 24,438,118 71,380 16,012,736 1,442,849,338

- - - - 1,408,617

190,000 - - - 190,000 436,582 - - - 436,582 80,879

2,840 - - - 2,840 10,469,622

629,422 - - - 12,588,540 82 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Net Position Component Units December 31 or June 30, 2015

Allegheny County Port Authority Airport Authority of Allegheny County as of December 31 as of June 30 Net Position

Net investment in capital assets 453,272,524 1,188,563,671 Restricted for: Capital projects 45,164,846 - Debt service 19,978,735 - Scholarship and tuition funds - - Other student funds - - Other projects - - Permanently - - Unrestricted (deficit) (9,478,759) (594,554,703)

Total net position $ 508,937,346 594,008,968

See accompanying notes to financial statements. 2015 County of Allegheny Comprehensive Annual Financial Report 83

Basic Financial Statements

Exhibit 10 (Page 3 of 3)

Redevelopment Allegheny County Nonmajor Community College Authority Industrial Development Component Units of Allegheny County of Allegheny County Authority as of as of June 30 as of December 31 as of December 31 December 31 Total

62,832,746 967,273 - 3,836,920 1,709,473,134

30,046,055 - - 2,196,409 77,407,310 - - - - 19,978,735 224,234 - - - 224,234 941,098 - - - 941,098 952,737 52,220,175 5,302,972 - 58,475,884 3,891,073 - - - 3,891,073 18,699,578 8,112,798 212,395 3,110,348 (573,898,343)

117,587,521 61,300,246 5,515,367 9,143,677 1,296,493,125 84 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Activities Component Units Year Ended December 31, 2015 or June 30, 2015

Program Revenues

Operating Charges for Grants and Capital Grants & Expenses Services Contributions Contributions

Allegheny County Airport Authority $ 166,345,773 137,226,972 5,030,877 30,616,221

Port Authority of Allegheny County 519,633,661 107,445,263 229,373,917 80,806,445

Community College of Allegheny County Education 121,161,872 31,609,017 74,106,563 - Auxiliary enterprise - Bookstore 74,796 774,649 - - Educational Foundation 2,043,529 236,437 421,076 1,145,158 Total Community College 123,280,197 32,620,103 74,527,639 1,145,158

Redevelopment Authority of Allegheny County General government 1,163,688 - - - Community development 36,446,541 536,509 36,306,499 - Lending 1,126,180 466,171 - - Rental Activity 1,134,854 1,043,247 - - Total Redevelopment Authority 39,871,263 2,045,927 36,306,499 -

Allegheny County Industrial Development Authority Economic opportunity 606 86,299 - - Administrative fund 256,885 192,465 - - Total Industrial Development Authority 257,491 278,764 - -

Nonmajor Component Units 9,835,654 1,843,049 6,396,300 1,076,868

Total Component Units $ 859,224,039 281,460,078 351,635,232 113,644,692

General Revenues: Payment from County Interest and investment earnings Gain on the sale of assets Gaming Act revenue Gas drilling revenue Net increase in the fair value of investments Miscellaneous income Total general revenues Change in net position Net Position beginning of year - restated Net Position end of year

See accompanying notes to financial statements. 2015 County of Allegheny Comprehensive Annual Financial Report 85

Basic Financial Statements

Exhibit 11

Net Revenue (Expense) and Changes in Net Position

Allegheny County Redevelopment Allegheny County Airport Authority Port Authority of Community College Authority of Allegheny Industrial Develop Nonmajor Component Year Ended Allegheny County of Allegheny County County Year Ended Authority Year Ended Units Year Ended December 31 Year Ended June 30 Year Ended June 30 December 31 December 31 December 31 Total

6,528,297 - - - - - 6,528,297

- (102,008,036) - - - - (102,008,036)

- - (15,446,292) - - - (15,446,292) - - 699,853 - - - 699,853 - - (240,858) - - - (240,858) - - (14,987,297) - - - (14,987,297)

- - - (1,163,688) - - (1,163,688) - - - 396,467 - - 396,467 - - - (660,009) - - (660,009) - - - (91,607) - - (91,607) - - - (1,518,837) - - (1,518,837)

- - - - 85,693 - 85,693 - - - - (64,420) - (64,420) - - - - 21,273 - 21,273

- - - - - (519,437) (519,437)

6,528,297 (102,008,036) (14,987,297) (1,518,837) 21,273 (519,437) (112,484,037)

$ - 31,867,438 23,705,264 4,908,253 - 635,979 61,116,934 559,527 16,178 280,658 46,145 1,787 16,521 920,816 39,551 - - - - - 39,551 12,400,000 - - - - - 12,400,000 10,192,316 - - - - - 10,192,316 35,676 - - - - - 35,676 599,277 - 647,141 600,610 - 82,081 1,929,109 23,826,347 31,883,616 24,633,063 5,555,008 1,787 734,581 86,634,402 30,354,644 (70,124,420) 9,645,766 4,036,171 23,060 215,144 (25,849,635) 478,582,702 664,133,388 107,941,755 57,264,075 5,492,307 8,928,533 1,322,342,760 $ 508,937,346 594,008,968 117,587,521 61,300,246 5,515,367 9,143,677 1,296,493,125 86 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

2015 County of Allegheny Comprehensive Annual Financial Report 87

Basic Financial Statements

(1) Summary of Significant Accounting Policies

(A) Organization and Reporting Entity

The organization of the County and the basis of the reporting entity are presented below to assist the reader in evaluating the financial statements and the accompanying notes. The County follows Statement of Governmental Accounting Standards No. 61, "The Financial Reporting Entity: Omnibus - an amendment of GASB Statements No. 14 and No. 34." As noted below, this statement has required the inclusion of component units in the accompanying financial statements, as well as disclosures concerning other related entities. The reporting period for the County is for the year ended December 31, 2015.

The County provides public safety, public works, health and welfare, economic development, education, economic opportunity, cultural, recreation and transportation services.

The County was organized in 1788. Until January 1, 2000, the County operated under the Second Class County Code, adopted by the Commonwealth of Pennsylvania State Legislature in 1953. A three-member Board of County Commissioners, elected County-wide for four-year terms, performed the executive and legislative functions.

In accordance with the Constitution and laws of the Commonwealth of Pennsylvania, the electorate of Allegheny County approved adoption of the Charter, to supersede certain provisions of the Second Class County Code pertaining to the governing framework of the County. The effective date of the Charter was January 1, 2000.

The Charter transferred substantial authority and responsibility to act in local affairs from State law to the County’s electorate through their locally elected officials. With regard to County governance, the Charter replaced the three-commissioner form of government with an elected Chief Executive, an elected, 15-member, part-time County Council and an appointed professional County Manager. It also required adoption of an Administrative Code to detail the County’s administration and operation. The Administrative Code was enacted June 30, 2000.

Unless expressly or implicitly modified or repealed by the Charter, the provisions of the Second Class County Code and other applicable laws still govern the operations of the County.

In June 1999, GASB issued Statement No. 34, “Basic Financial Statement – and Management’s Discussion and Analysis – for State and Local Governments.” This statement, known as the “Reporting Model” statement, affects the way the County and its component units prepare and present financial information. State and local governments traditionally have used a financial reporting model substantially different from the one used to prepare private-sector financial reports. GASB Statement No. 35, “Basic Financial Statement and Management’s Discussion and Analysis - For Public Colleges and Universities” establishes accounting and financial reporting standards for public colleges within the financial reporting guidelines of GASB 34.

GASB Statement Nos. 34 and 35 established requirements and a reporting model for the annual financial reports of state and local governments and colleges. The Statements were developed to make annual reports easier to understand and more useful to the people who use governmental financial information to make decisions and includes: 88 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Management’s Discussion and Analysis – Requires that financial statements be accompanied by a narrative introduction and analytical overview of the government’s financial activities in the form of MD&A. This analysis is similar to analysis the private sector provides in their annual reports.

Government-wide Financial Statements – The reporting model includes financial statements prepared using full accrual accounting for all of the government’s activities. This approach includes not just current assets and liabilities (such as cash and accounts payable) but also capital assets and long-term liabilities (such as buildings and infrastructure, including bridges and roads, and general obligation debt). Accrual accounting also reports all of the revenues and cost of providing services each year, not just those received or paid in the current year or soon thereafter.

Statement of Net Position – The Statement of Net Position is designed to display all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and the net financial position of the primary government (governmental activities) and its discretely presented component units. Governments report all debt and long-term liabilities as well as, capital assets, including infrastructure, in the government-wide Statement of Net Position and report depreciation expense – the cost of “using up” capital assets – in the Statement of Activities. The net position of a government will be broken down into three components - 1) net investment in capital assets; 2) restricted; and 3) unrestricted.

Statement of Activities – The government-wide statement of activities reports expenses and revenues in a format that focuses on the cost of each of the government’s functions. The expense of individual functions is compared to the revenues generated directly by the function (for instance, through user charges or intergovernmental grants).

Budgetary Comparison Schedules – Demonstrating compliance with the adopted budget is an important component of a government’s accountability to the public. Many citizens participate in the process of establishing the annual operating budgets of state and local governments, and have a keen interest in following the actual financial progress of their governments over the course of the year. The County and many other governments revise their original budgets over the course of the year for a variety of reasons. Under the new reporting model, governments will continue to provide budgetary comparison information in their annual report and are required to add the government’s original budget to the current comparison of final budget and actual results.

As required by the accounting principles generally accepted in the United States, these financial statements present the primary government and its component units. A component unit is a legally separate entity that the primary government is financially accountable based on the following criteria: 1) the primary government appoints the voting majority of the board, and is able to impose its will on the component unit, or there is the potential the component unit could provide a specific financial benefit or burden on the primary government; 2) the component unit is fiscally dependent on the primary government, and there is potential the component unit could provide a specific financial benefit or burden on the primary government; or; 3) managements professional judgment concludes the reporting entity's financial statements would be misleading without the component unit. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government. The County has no component units that meet the requirements for blending. The discretely presented component units, on the other hand, are reported in a separate column in the government-wide statements to emphasize they are legally separate from the primary government. The discretely presented component units have various fiscal year-ends. 2015 County of Allegheny Comprehensive Annual Financial Report 89

Basic Financial Statements

Component Units

The following entities are included in the financial statements because of the significance of their operations or financial relationships with the County. The majority of the board of directors of the component units, except Memorial Hall are appointed by the County’s Chief Executive and confirmed by the County Council. The component units’ column of the applicable government-wide statements include financial data for the Allegheny County Airport Authority (ACAA); the Port Authority of Allegheny County (PAT); the Community College of Allegheny County (CCAC); the Redevelopment Authority of Allegheny County (RAAC), and Allegheny County Industrial Development Authority (ACIDA). These entities are considered major component units of the County. Allegheny HealthChoices, Inc. (AHCI), Allegheny County Parks Foundation (Parks Foundation) and Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc. (Memorial Hall) are nonmajor component units. They are included with the major component units in the Statement of Net Position in the nonmajor component units’ column of the Statement of Net Position – Component Units and Statement of Activities – Component Units.

ACAA was established in 1999 to manage and operate Pittsburgh International Airport (PIA) and the Allegheny County Airport (collectively, the Airport System). On November 15, 1999, pursuant to an Airport Operation, Management and Transfer Agreement and Lease between the County and ACAA, as amended (the Transfer Agreement), the County leased and transferred the Airport System to ACAA for a term of 25 years with two 25-year extension options exercisable at ACAA’s option.

In connection with the Transfer Agreement, the County leased to ACAA all land, buildings, fixtures, improvements, structures, aviation easements, rights of access and appurtenances pertaining thereto and all of the listed properties. In addition, the County transferred all of its rights, title and interest in fixtures, equipment, materials and furnishings utilized by the County in connection with the Airport System. Also, all contractual rights and obligations and liabilities pertaining to the Airport System, including revenue and general obligation bonds issued by the County to finance construction and development of PIA, were transferred to ACAA by the County. In addition to appointing the majority of the board, the County has the ability to impose its will on ACAA.

PAT was established under the Second Class County Port Authority Act of 1956 to provide mass transit services to the citizens of Allegheny County and portions of adjacent counties. The County provides significant annual operating and capital subsidies to PAT.

As discussed in Note 13, PAT contracts with Transdev Services, Inc. for professional services to coordinate ACCESS, a paratransit system. ACCESS financial statements have not been included in the reporting entity because PAT has neither control, financial responsibility, nor accountability for ACCESS.

CCAC was established under the Community College Act of 1963 to provide two-year post-secondary and college-parallel education programs, as well as education programs for out-of-school youths and adults within Allegheny County. The County, as sponsor, advances its funding based on its budget allocation that is on a calendar year basis. Included in the advance is the County’s required one-half share of capital expenditures.

The Educational Foundation of CCAC (the “Foundation”) is a legally separate, tax-exempt component unit of CCAC that acts primarily as a fund-raising organization to supplement the resources that are available to CCAC. The Foundation operates under an independent Board of Trustees and management. In carrying out its responsibilities, the Board of Trustees of the Foundation forms policy and maintains fiscal accountability over funds administered by the Foundation. The majority of 90 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

resources, or income thereon, are restricted to the activities of CCAC by the donors. Accordingly, the financial statements of the Foundation have been included in the basic financial statements with CCAC.

RAAC was incorporated in the Commonwealth of Pennsylvania in 1950 as a redevelopment authority under the provisions of the Urban Redevelopment Law, Act No. 385. RAAC was established with the power to undertake programs for the voluntary repair, rehabilitation and conservation of residential housing and to stimulate residential, office, retail, commercial, industrial and other development. The County allocates a portion of its sales tax receipts from the Allegheny Regional Asset District to RAAC for the purpose of meeting the debt service obligations of bonds issued by RAAC to provide loans related to economic development projects.

RAAC has entered into an agreement whereby the County agreed to provide administrative services on behalf of RAAC at a cost of $650,240 for 2015.

ACIDA was established under the Economic Development Financing Law to aid in alleviating unemployment and to maintain levels of existing employment by promoting the construction of industrial, manufacturing and research and development facilities within the County.

ACIDA has entered into an agreement with the County to provide administrative services on its behalf. As compensation for these services, ACIDA has agreed to transfer to the County the amount of “surplus revenue” remaining at the end of each fiscal year to cover the costs of County personnel responsible for the administration and operation of ACIDA. Surplus revenue is essentially the amount of Administrative Fund unrestricted cash and cash equivalents exceeding $50,000 at the end of each year. ACIDA was required to pay $200,000 for administrative services for 2015.

AHCI was incorporated in 1998 as a private, non-profit corporation for the purpose of monitoring the County’s behavioral health services of the HealthChoices program. AHCI has been determined to be exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code as “other than a private foundation.” The County provides the bulk of AHCI’s funding through medical assistance capitation revenue received from the Commonwealth of Pennsylvania.

The Parks Foundation was established in 2007 to facilitate public investment in the Allegheny County parks system, the county riverfront trail system and other greenway initiatives. The Parks Foundation has been determined to be exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. The County has provided a significant subsidy to the Parks Foundation’s operations and is committed to match funds, dollar for dollar, raised by the Parks Foundation in the amount of $10,000,000 for approved capital projects.

Memorial Hall separated from the County on January 1, 2000 and became an independent non-profit corporation. Prior to 2000, it was an operating division of the County. Memorial Hall’s goal is to preserve a lasting tribute to those who served their country during the wars spanning the period from the Civil to Gulf II. The County annually appropriates a material subsidy and has assigned certain receipts from the adjacent parking lot to Memorial Hall. In addition, management of the County believe it would be misleading to exclude SSMH.

The reporting periods for ACAA, RAAC, ACIDA, AHCI, Parks Foundation and Memorial Hall are for the year ended December 31, 2015. The reporting periods for PAT and CCAC are for the year ended June 30, 2015. Complete and more detailed financial statements for all of the individual component units can be obtained from their respective administrative offices. 2015 County of Allegheny Comprehensive Annual Financial Report 91

Basic Financial Statements

Administrative Offices

Allegheny County Airport Authority Pittsburgh International Airport Landside Terminal, Suite 4000 Pittsburgh, PA 15231-0370

Port Authority of Allegheny County 345 Sixth Avenue, 3rd Floor Pittsburgh, PA 15222-2527

Community College of Allegheny County 800 Allegheny Avenue Pittsburgh, PA 15233-1895

Redevelopment Authority of Allegheny County One Chatham Center, Suite 900 112 Washington Place Pittsburgh, PA 15219

Allegheny County Industrial Development Authority One Chatham Center, Suite 900 112 Washington Place Pittsburgh, PA 15219

Allegheny HealthChoices, Inc. 444 Liberty Avenue, Suite 240 Pittsburgh, PA 15222

Allegheny County Parks Foundation 675 Old Frankstown Road Pittsburgh, PA 15239

Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc. 4141 Fifth Avenue Pittsburgh, PA 15213

Related Organizations

The Chief Executive was also responsible for appointing, and the County Council was responsible for confirming, the members of the boards of other organizations, but the County's accountability for these organizations does not extend beyond making the appointments. These organizations include:

Allegheny County Residential Finance Authority Authority for Improvements in Municipalities Allegheny County Hospital Development Authority Allegheny County Higher Education Building Authority Allegheny County Housing Authority

The financial statements for these organizations are not included herein. 92 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Joint Ventures

The Sports and Exhibition Authority of Pittsburgh and Allegheny County was incorporated under the Public Auditorium Authorities Act of 1953 as a joint authority organized by the City of Pittsburgh (the City) and the County to provide space for educational, cultural, physical, civic and social events of benefit to the general public. The County's only access to the Sports and Exhibition Authority's resources would be a residual interest in the net position in the event of dissolution.

The City and the County are equally responsible for funding certain debt service requirements of the Sports and Exhibition Authority. At December 31, 2015 the County's outstanding portion of this debt, payable through December 2018, totals $490,000 and is reflected in the government-wide Statement of Net Position. Additionally, in accordance with the fiduciary responsibilities of the Hotel Room Rental Tax Act of 1990, the County collects a 7% hotel room tax and distributes the funds to designated agencies, including the Sports and Exhibition Authority. Complete and more detailed financial statements for the Sports and Exhibition Authority of Pittsburgh and Allegheny County can be obtained from the Sports and Exhibition Authority's administrative office:

Sports and Exhibition Authority of Pittsburgh and Allegheny County 171 10th Street, 2nd Floor Pittsburgh, PA 15222

Jointly Governed Organization

The Allegheny County Sanitary Authority (ALCOSAN) was organized under the Municipality Authorities Act of 1945 to collect, transport and treat wastewater for the City and 83 other Allegheny County municipalities. ALCOSAN's board has seven members; three are appointed by the County, three are appointed by the City and one is appointed jointly by the County and City. The County has no ongoing financial accountability for ALCOSAN.

(B) Government-wide and Fund Financial Statements

The basic financial statements include both government-wide (based on the County as a whole) and fund financial statements. While the previous reporting model emphasized fund types (the total of all funds of a particular type), in the new reporting model, the focus is either on the County as a whole (which includes component units) or major individual funds within the fund financial statements.

Both the government-wide and fund financial statements (within the basic financial statements) categorize primary activities as governmental. In the government-wide statement of net position, governmental activities are presented on a consolidated basis, and are reflected on a full accrual, economic resource basis, which incorporates long-term assets and receivables as well as long-term debt and obligations. For the most part, the effect of interfund activity has been eliminated from these statements. Activity between component units and the primary government is generally reported as external transactions and not operating transfers. Internal service account balances are reported as governmental activities on the statements of net position and activities.

The government-wide statement of activities reflects both the gross and net cost per functional category (public safety, public works, health and welfare, etc.) that are otherwise being supported by general government revenues (property, sales and use taxes, interest earnings and certain other general revenues). The statement of activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants, and contributions. The program revenues must be directly associated with the function (public safety, public works, health and welfare, etc). 2015 County of Allegheny Comprehensive Annual Financial Report 93

Basic Financial Statements

Program revenues include 1) charges (including fines) to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operation or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. The County does not allocate indirect expenses. The operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants.

In the fund financial statements, financial transactions and accounts of the County are organized on the basis of funds. The operation of each fund is considered to be an independent fiscal and separate accounting entity, with a self-balancing set of accounts recording cash and/or other financial resources together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The governmental fund statements are presented on a current financial resource and modified accrual basis of accounting. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements’ governmental activities, a reconciliation is presented which briefly explains the adjustments necessary to reconcile the fund financial statements to the governmental column of the government-wide financial statements.

The County’s fiduciary funds are presented in the fund financial statements by type (pension and agency). Since by definition these assets are being held for the benefit of a third party (other local governments, litigants, pension participants, etc.) and cannot be used to address activities or obligations of the government, these funds are not incorporated into the government-wide statements. The following is a brief description of the specific funds used by the County in the current year.

Governmental Funds

Governmental funds are those through which most governmental functions of the County are financed. The County's expendable, available financial resources and the related liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds wherein the measurement focus is on changes in financial position, rather than on net income. Following are descriptions of the County's governmental funds:

General Fund - Accounts for all financial resources except those accounted for in another fund. Operating activities reflected in the General Fund include County administrative, planning and service departments, the County's Court of Common Pleas and the elected County row officers, as well as the operations of the Kane Regional Health Centers, a series of four regional, long-term healthcare facilities for the chronically ill and elderly who have limited financial resources. The Centers are operated as a general welfare benefit for these people and are partially supported by property tax revenues. Other activities accounted for in the General Fund include child welfare services, social services for the elderly and the Shuman Juvenile Detention Center. The General Fund is always considered a major fund for government-wide reporting purposes.

Special Revenue Funds - Account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The Special Revenue Funds consist of the following: Transportation Fund, Liquid Fuel Tax Fund, County Grants Fund and Human Services Grants Fund. Operating activities in the Human Services Grants Fund include Behavior Health/Intellectual Disability/Drug & Alcohol (BH/ID/DA), Aging, Community, 94 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

and Children, Youth and Family services to eligible citizens. The County Grants Fund operating activities mainly consist of public safety, health and welfare, economic development and general government services.

The County Grants Fund and Human Services Grants Fund are considered major funds for government-wide reporting purposes. While both of these major funds receive federal and State revenue, the County Grants Fund receives a large portion of its revenue from federal grants such as Community Development Block Grant, Child Support Enforcement Program, and Home Investment Program, and some revenue from State grants such as 911 Emergency communications, and Community Infrastructure. Also, County Grant Funds receive fees related to the services provided. Human Services Grant Fund receives the larger portion of its revenue from of State grants such as Behavioral Health Managed Care, and Human Services Block Grant with a lesser portion from federal grants such as the Headstart Program, HUD, and the Aging Block Grant. The County Grants Fund predominantly uses its revenues for general government expenditures, while the Human Services Grants Fund revenues are used mostly for health and welfare expenditures.

Capital Projects Fund - Accounts for financial resources that are restricted, committed, or assigned to expenditures for capital outlays including acquisition or construction of capital facilities and other capital assets. The Capital Projects Fund is considered a major fund for government-wide reporting purposes.

Debt Service Fund - Accounts for and reports financial resources that are restricted, committed, or assigned to expenditures for principal and interest.

Proprietary Fund

Proprietary fund accounts for the County's ongoing activities that are similar to those found in the private sector. The measurement focus is on determination of net income. Following is a description of the County's proprietary fund:

Internal Service Fund - Accounts for and finances services furnished exclusively to user offices, departments and other agencies and funds of the County on a cost reimbursement basis. The principal services provided include a self-insurance program for health and dental coverage and risk management. Operating revenues are from charges for services and employer/employee contribution and claims expense. All other revenues and expenses are recorded as non-operating. The Internal Service Fund (after eliminations) is included in governmental activities for government-wide reporting purposes.

Fiduciary Funds

Fiduciary funds account for assets held by the County as the agent for individuals, private organizations and other governmental units or funds. Following is a description of the County's fiduciary funds:

Trust and Agency Funds - Include the Pension Trust, which accounts for the activities of the Allegheny County Employees' Retirement System, and the Agency Fund, which accounts for funds held by the County on behalf of others. The Pension Trust is accounted for in a manner similar to a proprietary fund. The County has over 30 agency funds that are custodial in nature (assets equal liabilities) and do not involve the measurement or results of operations. Fiduciary funds are not included in the government-wide statements. 2015 County of Allegheny Comprehensive Annual Financial Report 95

Basic Financial Statements

(C) Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet in the funds statements. Long-term assets and long-term liabilities are included in the government-wide statements. Operating statements of the governmental funds present increases (i.e. revenues and other financial sources) and decreases (i.e. expenditures and other financing uses) in net fund balance. Note 9 discloses interfund transactions and their accounting treatment on the government-wide statement of activities.

The government-wide statements of net position and statements of activities, the proprietary fund, and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these activities are either included on the statement of net position or on the statement of fiduciary net position.

The statements of net position, statements of activities and the financial statements of the Internal Service Fund and Fiduciary Funds are presented on the accrual basis of accounting. Under this method, revenues are recognized when earned and expenses are recorded when liabilities are incurred without regard to receipt or disbursement of cash.

The fund financial statements of the Governmental Funds are maintained and reported on the modified accrual basis of accounting using the current financial resources measurement focus. Under this method of accounting, revenues are recognized in the period in which they become measurable and available. Revenues are considered to be available when they are collectible within the current period or soon thereafter to pay liabilities of the current period. With respect to real property tax revenue and sales taxes, the term “available” is limited to collection within 60 days of the year-end. Property taxes of $36,805,210 is the portion of the County's deferred inflows of resources recorded because it is not available. Interest income is recorded as earned. Federal and State reimbursement-type grants are recorded as revenue when related eligible expenditures are incurred. Expenditures, other than accrued interest on long-term debt, as well as the long-term expenditures related to compensated absences, workers compensation, settlements and other postemployment benefits, are recorded when the fund liability is incurred. Agency Funds do not have a measurement focus.

(D) Allowance for Uncollectible Accounts

The County calculates its allowance for uncollectible accounts using historical collection data and, in certain cases, specific account analysis. The allowance at December 31, 2015, is composed of the following:

General Fund Other Governmental Funds Total Taxes receivable: Property taxes: Delinquent $ 1,160,213 227,278 1,387,491 Liened 6,205,534 2,115,812 8,321,346 Total taxes 7,365,747 2,343,090 9,708,837 Due from other governments 1,589,554 - 1,589,554 Other accounts receivable 3,220,046 - 3,220,046

Total allowance $ 12,175,347 2,343,090 14,518,437

There were no allowances for: sales tax receivable; loans receivable; accounts receivable trade; and accrued interest and dividends receivable. 96 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Component Units - Allowance for Uncollectible Accounts

All Component Units

The allowance at the component unit’s respective year-end is composed of the following:

ACAA CCAC RAAC ACIDA Trade receivable $ 115,102 7,763,467 - - Other receivable - 70,000 - - Loans receivable - - 1,565,953 200,000 Liens receivable - - 1,700,000 -

Total allowance $ 115,102 7,833,467 3,265,953 200,000

(E) Cash, Cash Equivalents and Investments

For purposes of the accompanying Statement of Cash Flows, the County considers all highly liquid investments with an original maturity of three months or less when acquired to be cash equivalents.

The County follows GASB Statement No. 31, “Accounting and Financial Reporting for Certain Investments and for External Investment Pools” and reports investments at fair value. Additionally, the Pension Trust Fund’s short-term investments are reported at cost, which approximates fair value.

Securities traded on a national exchange are valued at the last reported sales price. Other investments not regularly traded on a national exchange are valued based on the last reported sales price or mean of the latest bid and ask price.

The County allocates income to the various funds based upon their average monthly investment balances .

(F) Capital Assets

Capital outlays are recorded as expenditures of the Governmental Funds and as assets in the government-wide financial statements to the extent the County’s capitalization threshold of $5,000 is met and a useful life of greater than three years. To the extent the County’s capitalization threshold of $5,000 is met, capital outlays are recorded as capital assets and depreciated over their estimated useful lives on the government-wide statements, using the straight-line method and the following estimated useful lives:

Years Buildings 50 Buildings - Leasehold Improvements 20 Furniture and Other Equipment 3-20 Infrastructure 7-40

All capital assets are valued at historical cost or estimated historical cost if actual cost was not available. Donated capital assets are valued at their estimated fair market value on the date donated. The County maintains many artifacts, books, art objects and buildings of historical significance that are held for educational, research, and curatorial purposes. Each of the items is cataloged, preserved, cared for, and activities verifying their existence and assessing their condition are performed 2015 County of Allegheny Comprehensive Annual Financial Report 97

Basic Financial Statements periodically. The County has a policy that requires that the proceeds from the sale of historical treasures or works of art be used to acquire other items for the collection. The County does not capitalize historic treasures or works of art.

Maintenance, repairs, and minor equipment are charged to operations when incurred. Expenses that materially change capacities or extend useful lives are capitalized. Upon sale or retirement of land, buildings, and equipment, the cost and related accumulated depreciation, if applicable, are eliminated from the respective accounts and any resulting gain or loss is included in the results of operations.

(G) Compensated Absences

Certain union employees of the District Attorney's Office, Court Records, the Public Defenders Office and the Medical Examiner's Office may carryover five days of vacation to be used in the following year. The liability for such benefits is recorded in the governmental statements at current rates of compensation; amounts currently payable are not material.

The County’s vacation policy for all other union and nonunion employees provides that such employees are to take vacation within the year it is earned, with no carry forward provisions.

Certain County police, jail guards, probation officers and deputy sheriffs earn vested sick benefits that are paid at termination or retirement based on current rates of compensation. The liability for such benefits is recorded in the government-wide statements at current rates of compensation (see Note 8); amounts currently payable are not material.

Personnel of all other County departments generally may accumulate up to 120 days of sick leave. These future benefits do not vest and, accordingly, have not been recognized in the accompanying financial statement.

(H) Pension Trust Fund

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to Pension Trust Fund, and retirement deductions, information about the fiduciary net position of the Pension Trust Fund and additions to/deductions from the Pension Trust Fund fiduciary net position have been determined on the same basis as they are reported by the Retirement System. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

(I) Fund Balances/Net Position

Classification of Fund Balance

As of December 31, 2015 the County had $1,206,670 of encumbrances in operating funds which rolled over into the next fiscal year. Capital Projects had $15,652,346 of encumbrances at December 31, 2015. For more details on Capital Projects encumbrances, see Note 5.

GASB Statement No. 54 establishes accounting and financial standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions as follows:

Nonspendable -- This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally required to be maintained intact. The County has no amount to report in this classification. 98 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Restricted -- This classification consists of amounts that are restricted to specific purposes. The County’s restricted fund balances consist of external enabling legislation for the state, federal or local government grants.

Committed -- This classification consists of amounts used for specific purposes imposed by Ordinance of the County’s highest level of decision-making authority (Council). The removal or modification of the use of committed funds can only be accomplished by formal action (Ordinance) prior to fiscal year-end by the County’s highest level of authority.

Assigned -- This classification consists of amounts constrained by the County's intent to be used for specific purposes that are neither restricted nor committed. The policy is for the Chief Executive to assign amounts to be used for specific purposes for Controller review before issuance of audited financial statements.

Unassigned -- This classification consists of amounts that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance.

It is the County’s policy, when more than one classification of fund balance is available for a particular purpose, to first apply expenditures against the restricted fund followed by committed, assigned, and then unassigned fund balance.

Classification of Net Position

GASB Statement No. 63 requires the classification of net position into three components – Net Investment in capital assets; restricted; and unrestricted. These classifications are defined as follows:

Net Investment in capital assets -- This component of net position consists of capital assets net of accumulated depreciation, reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of these assets.

Restricted -- This component of net position consists of constraints placed on net position use through external restrictions, such as, constitutional provisions or enabling legislation reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted -- This component of net position consists of net amount not included in the determination of the net investment in capital assets or the restricted component of net position.

The County’s policy is to apply expenses against restricted and then unrestricted net position.

(J) Pending Governmental Accounting Standards Board Pronouncements

GASB issued Statement No. 72 "Fair Value Measurement and Application", effective for periods beginning after June 15, 2015. This statement is to address accounting and financial reporting issues related to fair value measurements and to provide guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The effect of implementation of this statement has not yet been determined.

GASB Statement No. 73, “Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB 68, and Amendments to Certain Provisions of GASB Statements 67 and 68,” effective for period beginning after June 15, 2015. This statement establishes requirements 2015 County of Allegheny Comprehensive Annual Financial Report 99

Basic Financial Statements for those pensions and pension plans that are not administered through a trust meeting specified criteria (those not covered by Statements No. 67 and 68). The effect of implementation of this statement has not yet been determined.

GASB Statement No. 74, “Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans,” effective for periods beginning after June 15, 2016. This statement addresses reporting by OPEB plans that administer benefits on behalf of governments. This statement replaces Statement No. 43. The effect of implementation of this statement has not yet been determined.

GASB Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions,” effective for periods beginning after June 15, 2017. This statement addresses reporting by governments that provide OPEB to their employees and for governments that finance OPEB for employees of other governments. This statement replaces the requirements of Statement No. 45. The effect of implementation of this statement has not yet been determined.

GASB Statement No. 76, “Hierarchy of Generally Accepted Accounting Principles for State and Local Governments,” effective for periods beginning after June 15, 2015. This statement identifies the hierarchy of generally accepted accounting principles (GAAP), reduces this hierarchy to two categories of authoritative GAAP, and addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified within a source of authoritative GAAP. This statement supersedes Statement No. 55. The effect of implementation of this statement has not yet been determined.

GASB Statement No. 77, "Tax Abatement Disclosures," effective for periods beginning after December 15, 2015. This statement provides guidance for reporting tax abatements granted by state and local governments that reduces the tax revenue the the governments would have received.

GASB Statement No. 78, "Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans," effective for periods beginning after December 15, 2015. This statement amends the scope and applicability of Statement 68 to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension plan. The effect of implementation of this statement has not yet been determined.

GASB Statement No. 79, "Certain External Investment Pools and Pool Participants," effective for periods beginning after June 15, 2015, except for certain provisions that are effective for periods beginning after December 15, 2015. This statement addresses accounting and financial reporting for certain external investment pools and pool participants. The effect of implementation of this statement has not yet been determined.

GASB Statement No. 80, "Blending Requirements for Certain Component Units," effective for periods beginning after June 15, 2016. This statement amends the blending requirements for the financial statement presentation of component units. The effect of implementation of this statement has not yet been determined.

GASB Statement No. 81, "Irrevocable Split-Interest Agreements," effective for periods beginning after December 15, 2016. This statement is to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. The effect of implementation of this statement has not yet been determined. 100 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

GASB Statement No. 82, "Pension Issues," effective for periods beginning after June 15, 2016. This statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The effect of implementation of this statement has not yet been determined.

(K) Reclassification of Prior Year Statements

Certain previously reported items in the financial statements have been reclassified to conform with the current year's classifications.

Component Units - Summary of Significant Accounting Policies

Significant accounting policies for the component units included in the accompanying financial statements are described below:

Allegheny County Airport Authority

Basis of Accounting

ACAA's financial statements are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when the related obligations are incurred.

Recognition of Revenue, Receivables and Deferred Revenue

Airport Operating Agreement (AOA) - Landing fees and terminal building lease rental revenues include amounts computed in accordance with the AOA, between the County, as sponsor of ACAA, and those airlines that sign this agreement serving PIA. The term of which will expire no earlier than May 8, 2018, or when all of the debt service requirements have been funded. Such revenues are also realized from certain fixed fees for nonscheduled airlines and private users of Allegheny County Airport (AGC).

American Airlines, who completed its merger with US Airways in 2015, together with its affiliated commuter airlines, accounted for approximately 33% of total enplaned passengers at PIA in 2015. The American Airlines revenue represents 32% of operating revenue in 2015. No other airline represents more than 10% operating revenue.

The AOA provides that the aggregate of airline fees and charges together with other revenues, including nonairline revenues, for each fiscal year should be sufficient to pay the operating expenses of the cost centers included in the AOA and to make all deposits and payments under bond ordinances and indentures issued for capital projects for ACAA.

Concession and rental car revenues - Concession and rental car fees are generally based on a fixed percentage of tenant revenues subject to certain minimum monthly fees. Concessions are operated under a Master Lease Development and Concession Agreement (Master Lease). During 2002, the Master Lease was extended through December 31, 2017. In return for the extension, the concessionaire agreed to provide a non-refundable up-front payment of $6,666,667, which has be recorded as unearned revenue and is being amortized to operating revenues over the initial extended term of the Master Lease.

Parking Revenues - Parking fees are based on a fixed percentage of net revenues of a third-party operator, as defined in the associated management agreement. 2015 County of Allegheny Comprehensive Annual Financial Report 101

Basic Financial Statements

Gas drilling revenues - In February 2013, a lease was executed with CNX Gas Company LLC for the exploration, drilling and production of minerals, namely Marcellus Shale natural gas, on the properties of ACAA. The contract includes an approximate $46.3 million non-refundable bonus amount of which approximately $3.5 million is held in escrow until certain property deed mineral rights issues are resolved. The initial bonus payment received of $42.8 million has been recognized as unearned revenue and is being amortized to nonoperating revenues over the five-year initial term of the lease based upon straight-line methodology. Any amounts received from the escrow will be recognized over the remaining term of the initial lease period. In 2015, escrow funds of approximately $2.7 million were released with the remaining balance expected to be released in future years. In addition to these initial payments, ACAA will receive monthly royalty revenue payments once mineral production begins. During 2015, ACAA began to receive surface and ground rents for the completed oil pads that are to be amortized over the remaining life of the contract. The total rent payments received during 2015 approximated $278,000. ACAA will continue to receive additional funds for surface and ground rents as the oil pads are completed.

Passenger Facility Charges (PFC) - On October 1, 2001, the airlines began collection PFCs. PFC are classified as non-operating and are imposed on enplaning passengers by airports to finance eligible airport-related projects that preserve or enhance safety, capacity, or security; fund noise mitigation; enhance competition between air carriers or debt service. Both the fee and intended uses must be reviewed and approved by the Federal Aviation Administration (FAA).

Customer Facility Charges (CFC) - CFC were instituted on June 1, 2011. CFC revenues are classified as non-operating as the amounts are restricted for operating and maintenance expense, capital improvements, and debt services related to the rental car operation at ACAA.

Federal and State grants - Grants from governmental agencies for eligible construction projects are recognized as non-operating revenue as the related expenditures are made.

Tenant financed improvements - Unearned revenues also include amounts funded by tenant of ACAA for certain capital assets. These unearned revenue amounts are being amortized to contribution revenue using the straight-line method over the depreciable lives of the related assets through credits to current rents payable.

Cash and Cash Equivalents

The ACAA considers money market mutual funds and U.S. Government-sponsored enterprise security to be cash equivalents.

Investments

Investments are carried at fair value, based on quoted market prices, and changes in the fair value of investments are reported as nonoperating revenues.

Inventories

Inventories are stated at the lower of cost or market (net realizable value). Cost is determined using the weighted average method of accounting. Inventories are comprised of construction related materials and parts used for maintenance of the facilities and equipment. 102 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Capital Assets

Land, buildings, and equipment are stated at historical cost. ACAA's capitalization threshold for capital assets is $5,000. Cost incurred for major improvements are carried in construction in progress until the assets are placed in service or are available for use. Depreciation is computed using the straight-line method over the estimated economic lives of the respective assets.

The estimated useful lives are as follows:

Years Terminal buildings 10-30 Runways and taxiways 20 Site development 30-50 Parking Garage/Lots/Etc. 15-40 Hangars 5-30 Other Structures 10-30 Roadways 10-20 Mobile and Other Equipment 10-20 Computer/Security Equip & Systems 5-20 Utilities 10-40 Other Assets 10-30

Capitalized Interest

Interest incurred during construction periods is capitalized and included in the cost of property and equipment. Interest capitalized on projects funded by internally generated funds is based on the weighted average borrowing rate and actual expenditures during the period of construction. Interest capitalized on projects funded from bond proceeds is based on the interest cost of the specific borrowing, less interest earned on unspent construction-related bond proceeds.

Vested Sick Benefits

Certain firefighters employed by ACAA earn vested sick benefits that are paid at termination or retirement based upon current rates of compensation. Liabilities for such benefits are accrued at current rates of compensation plus appropriate taxes.

Net Position

The following schedule summarizes the effect of restating certain items on the net position at the beginning of the year due to GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment to GASB Statement No. 27:

Net position at end of year as previously reported $ 530,269,549 Adjustment due to GASB 68 (51,686,847) Net position at beginning of year as restated $ 478,582,702 2015 County of Allegheny Comprehensive Annual Financial Report 103

Basic Financial Statements

Port Authority of Allegheny County

Basis of Accounting

The financial statements of PAT have been prepared in conformity with accounting principles generally accepted in the United States of America as applicable to governments as previously summarized. PAT applies all GASB pronouncements. Accounting records covering both transit operations and capital grant projects are maintained on the accrual basis of accounting, whereby revenues and expenses are recognized in the period earned or incurred. All transactions are accounted for in a single enterprise fund.

PAT’s policy is to first apply expenses incurred to restricted net position to the extent such are available and then to unrestricted net position.

Cash and Cash Equivalents

Cash and cash equivalents include amounts in demand deposits, as well as short-term investments with a maturity date within three months of the date acquired.

Recognition of Revenue, Receivables and Unearned Revenue

Passenger fares are recorded as revenue at the time services are performed. Monthly "flash" passes are sold on a consignment basis to vendors who maintain the right of return on unsold passes. The automated fare collection system (AFCS) will eventually eliminate the consignment system through use of a Smart Card.

Grants and contributions are recorded as revenue when all applicable eligibility requirements are met. The Federal Transit Administration (FTA), the Pennsylvania Department of Transportation and the County provide financial assistance and make grants directly to PAT for operations, acquisitions of property and equipment and other capital related expenditures.

In fiscal year 2008, Act 44 was enacted by the Commonwealth of Pennsylvania. The Act created a dedicated source of funding called the Public Transportation Trust Fund (PTTF) which provides both operating and capital assistance to PAT as well as all other transit agencies in the State. The PTTF includes several existing sources of state funding as well as some new sources. Also, it eliminates the filing of separate applications to receive those funds.

The sources of revenue available to the State to fund PTTF are: A percentage from sales tax (4.4%), lottery funds for the Free Transit for Senior Citizens Program, State bond funding for capital projects, the remainder of Public Transportation Assistance Fund (PTAF) after funding payments on existing debt, and annual payments from the Turnpike Commission.

Five program accounts have been created within the new trust fund: Transit Operating Assistance, Asset Improvement Program, Capital Improvements Program, New Initiatives, and Programs of Statewide Significance. Local matching funds are required to receive assistance under most programs.

PAT received $212.4 million in State operating assistance during fiscal 2015. This funding required local matching funds of $31.9 million. Allegheny County provided $28.9 million in local match with an additional $3 million provided by the Regional Asset District (RAD).

Because of existing debt agreements, PAT obtained capital funding under PTAF totaling $28.9 million to use for debt service. Local matching share required for this funding was provided by the County. 104 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

PAT also received $106.4 million in capital funding under Act 44. PAT utilized $8.2 million of this capital funding in its operating budget, $4.7 million was used to match federal grants for other state of good repair capital projects and $3.5 million was utilized to support the bus and Railcar overhaul program.

PAT was awarded a total of $10 million in capital funding from the County, which is used to match federal and state capital grants.

Unearned revenue at June 30, 2015, included: $67.9 million of State operating assistance carryover, $4.7 million of County funds to be used for capital grant matching and $7 million of State PTAF funds to be used for 2016 debt service.

Capital Assets

Transit operating property and equipment are recorded at cost and include certain property acquired from predecessor private mass transportation companies. Transit operating property and equipment also include certain capitalized labor and overhead expenses incurred to ready such property and equipment for use. Interest incurred during the construction phase of capital assets is included as part of the capitalized value of the assets constructed. During the current year, no interest expense was capitalized.

Depreciation is recorded using the straight-line method based on estimated useful lives that generally range from 4 to 30 years.

Construction in progress primarily consist of the communication and computer upgrades that will allow for real-time tracking of buses, as well as various building improvements.

Compensated Absences

PAT accrues vacation benefits earned by its employees.

Net Position

The following schedule summarizes the effect of restating certain items on the net position at the beginning of the year due to GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment to GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date:

Net position at end of year as previously reported $ 932,288,022 Less: Adjustment due to GASB 68 & 71 268,154,634 Net position at beginning of year as restated $ 664,133,388

Refunding Transactions

In accordance with applicable guidance, the excess of the reacquisition price over the net carrying amount of refunded debt is recorded as a deferred outflow of resources on the statement of net position and amortized as a component of interest expense over the shorter of the term of the refunding issue or refunded bonds. 2015 County of Allegheny Comprehensive Annual Financial Report 105

Basic Financial Statements

Community College of Allegheny County

Basis of Accounting

The financial statements of CCAC have been prepared in accordance with the accounting principles generally accepted in the United States of America, using the economic resources measurement focus and the accrual basis of accounting. CCAC follows accounting principles issued by the GASB.

CCAC has determined that it functions as a business type activity, as defined by GASB. The effect of interfund activity has been eliminated from these financial statements, and they have been prepared on the accrual basis of accounting with a flow of economic measurement focus. Revenues are recognized when earned and expenses are recognized when incurred.

CCAC has not adopted a formal policy regarding whether to apply restricted resources or unrestricted resources when an expense is incurred for purposes that both restricted and unrestricted net position are available. Generally CCAC attempts to utilize restricted net position first when practicable.

The Foundation is a private non-profit organization that reports under FASB standards, including FASB No. 117, Financial Reporting for Not-for-Profit Organizations. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. No modifications have been made to the Foundation’s financial information in CCAC’s financial reporting entity for these differences.

Of the total net position of CCAC as of June 30, 2015, the following constraints upon their use have been imposed, either externally or internally by action of the CCAC Board of Trustees or the Foundation’s Board of Directors, as follows:

Restricted Net Position: Scholarship and tuition funds $ 224,234 Student development funds 941,098 Capital outlay 30,046,055 Restricted Foundation Net Position: Other projects 952,737 Permanently 3,891,073

Total restricted net position $ 36,055,197

Unrestricted Net Position: Board-designated Net Position: Campus building projects $ 2,294,220 Reserve for facilities, emergency and other compelling needs 2,537,197 915 Ridge property 533,032 Future operations 9,115,197 Foundation Unrestricted Net Position 4,219,932

Total unrestricted net position $ 18,699,578

Restricted Net Position:

Scholarships and Development -- Scholarship, tuition and student development funds that have been generated from student related sources, the principal source of which is student fees. As such, the funds must be used specifically for the benefit of students. The Board of Trustees determines the allocation of scholarships and development. 106 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Capital Outlay Reserve -- Funds may be reserved or restricted by the Board of Trustees or debt related restrictions. Current restrictions include the terms of appropriations, interest earned on bond proceeds, and unspent bond proceeds, which are restricted for the use of capital purchases. As of June 30, 2015, funds restricted amounted to $30,046,055.

Restricted Foundation Net Position:

Temporarily Restricted -- Temporarily restricted assets whose use is limited by stipulations imposed by contributors or grantors until those stipulations are fulfilled and removed by the Foundation’s actions.

Permanently Restricted -- The use of principal is restricted indefinitely by stipulations imposed by contributors or donors. Income earned on permanently restricted assets is used for scholarships of students and other needs of the Foundation, as directed by the donor.

Board-Designated Net Position:

Campus Building Projects and West Hill Renovation Project – At the October 1997 meeting, the Board of Trustees authorized an increase in Campus building projects reserve from a balance of $1,470,613 to $5,000,000 to provide the CCAC share of funds for renovation and construction of science labs at the campuses. The science labs project total was estimated at that time at $10,000,000 and consisted of a new science building at Allegheny Campus, major improvements to the South Campus labs, and less extensive updating costs to the Boyce and North Campuses. In 1998, after discussions with the architect the estimate was increased to $12,000,000. Accordingly, at the October 1998 meeting, the Board allocated an additional $1,000,000 to the reserve from that fiscal year’s interest income. The reserve then amounted to $6,000,000. In May 2006 the Board approved the 2006–2008 Capital Outlay Plan, which included the transfer of this $6,000,000 to a new reserve called the “West Hills Renovation Project Reserve.” At its November 2007 meeting, the Board authorized an addition of $1,000,000 to the Campus Building Projects Reserve from unrestricted net position as of June 30, 2007, bringing the total in this reserve as of June 30, 2007 to $3,000,000. During fiscal year 2008, $569,435 was spent from that reserve for CCAC’s one-half share of the fiscal 2008 debt service on the portion of the new 2008 bond issue attributable to the Science Center construction project. At its November 2008 meeting, the Board authorized an addition of $3,000,000 from unrestricted net position as of June 30, 2008, bringing the total of the Campus Building Projects Reserve as of June 30, 2008 to $5,430,565. Payments during 2008-2009 for CCAC’s one-half share amounted to $567,386, further reducing the Reserve to $4,863,179. Payments made during fiscal 2010 for CCAC’s one-half share were $567,586. The Board designated an additional $1,704,407, bringing the reserve total to $6,000,000. Payments made during fiscal 2011 for CCAC's one-half share were $565,661, reducing the reserve to $5,434,339. For fiscal year 2011, an additional $3,565,361 was added, bringing the reserve total to $9,000,000, which is the projected amount required to complete the Science Center project as of June 30, 2011. For fiscal year 2012, expenses of $1,172,984 were incurred for the Science Center reducing the reserve to $7,827,016 as of June 30, 2012. For fiscal year 2013, expenses of $5,708,963 were incurred for the Science Center, reducing the reserve to $2,118,053 as of June 30, 2013. For fiscal year 2014, expenses of $506,852 were incurred for the Science Center, reducing the reserve to $1,611,200 as of June 30, 2014. For the fiscal year 2015, operating transfers-in and revenues exceeded expenses by $683,020, increasing the reserve to $2,294,220 as of June 30, 2015.

Reserve for Board-Designated Facilities Emergency and Other Compelling Needs - At the November 2008 meeting of the CCAC Board, annual operating budget policy was revised to call for an administrative process that annually sets aside a portion of projected revenues and existing unrestricted net position to create a reserve for future years for ongoing facilities maintenance, renovations, 2015 County of Allegheny Comprehensive Annual Financial Report 107

Basic Financial Statements construction, and other emergencies or compelling needs, including but not limited to legal, technological, safety/risk management, academic, or other financial imperatives. After revenues to fund current operating needs and strategic goals for the budget year have been identified, it is the goal to generate excess revenues to provide for an ongoing net position at the level equal to at least fifteen percent of the annual current fund budget, with the target of achieving the goal in five to ten years. During fiscal year 2008, a $4,000,000 reserve was established. In fiscal year 2009, the reserve was increased by an additional $2,000,000. For fiscal 2010, the reserve was increased by another $295,593, resulting in a total of $6,295,593. For fiscal 2011, the reserve was decreased by $368,690 for maintenance projects, resulting in a total of $5,926,903. The reserve was further reduced by $2,776,903, which was transferred to Campus Building Projects Reserve for the completion of the Science Center building, leaving a balance of $3,150,000 as of June 30, 2011. For fiscal 2012, expenses of $25,314 were incurred for maintenance projects and $968,000 was transferred to the Reserve for Future Operations, reducing the reserve to $2,156,686 as of June 30, 2012. For fiscal 2013, there were no expenses incurred that were charged to the reserve. For fiscal 2014, expenses of $192,590 were incurred for maintenance projects, reducing the reserve to $1,964,096 as of June 30, 2014. For fiscal 2015, revenues and operating transfers-in to fund maintenance projects and ITS infrastructure improvements exceeded expenses by $573,101 increasing the reserve to $2,537,197 as of June 30, 2015, which has been designated for the following capital projects: Communications Equip. Connectivity to State Network-Kinber $275,000, Deferred Maintenance - College-wide $1,842,472, Allegheny parking lots $130,035, Information technology services infrastructure upgrades $18,237, Facilities condition assessment upgrade (to Aramark Study) $256,921, and Other Projects $14,532.

915 Ridge Property -- Rental income in excess of rental expenses are designated for future improvements or renovations to 915 Ridge property. During fiscal 2015, expenses exceeded revenues by $18,420, thereby reducing the designated net position.

Reserve for Future Operations and Auxiliary -- Funds that have not been designated by the Board, for future operations.

Unrestricted Net Position -- Unrestricted and board-designated resources, which are not subject to restrictions imposed by contributors or grantors.

Recognition of Revenue

Revenue resulting form exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. Non-exchange transactions, in which CCAC receives value without directly giving equal value in return, include grants, entitlements and donations. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted; matching requirements, in which CCAC must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to CCAC on a reimbursement basis. Reimbursements for operating expenditures from the County and the State are recorded as revenue when earned.

Unearned revenue arises when cash is received before revenue recognition criteria has been satisfied. Unearned revenues are composed of deferred grant revenue and student tuition revenue and deposits. Unearned grant revenue represents monies received on approved grants in advance of incurring the corresponding expenses. Student deposits and tuition received at June 30, and applicable to subsequent summer and fall terms, have been deferred and are included in revenue in the succeeding year. 108 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Capital Assets

Land, buildings and equipment are recorded at cost at the date of acquisition, or fair value at the date of donation. Building improvements and improvements other than buildings are recorded at the aggregate cost of the construction of the improvement. Expenditures for construction in progress are capitalized as incurred. Repair and maintenance costs are expensed as incurred; renovations and improvements, which extend the physical or economic life of an asset, are capitalized.

Interest expense is capitalized on qualifying assets during the period necessary to ready the assets for its intended use. Interest capitalized is net of interest earnings, if any, on qualifying assets. For fiscal year 2015, the total interest incurred amounted to $2,657,395, of which $65,399 was capitalized.

Depreciation and amortization of leased and owned assets are computed on the straight-line method over the estimated useful lives of the leased and owned property and equipment.

The estimated useful lives are as follows:

Years Buildings 50 Leasehold improvements 25 Infrastructures 25 Land improvements 15 Furniture and fixtures 10 Library books 10 Vehicles 7 Computer equipment 5 Computer software 3 All other equipment 7

Operating Revenues and Expenses

All revenues from tuition, auxiliary enterprises and programmatic sources are considered to be operating revenues. Operating expenses include educational costs, auxiliary enterprises, administrative expenses and depreciation of capital assets. All revenues and expenses not meeting this definition, including State appropriations, investment income and interest on capital asset-related debt, are reported as non-operating revenues and expenses.

Scholarship Allowances

Scholarship allowances represent the difference between the stated charge for services provided by CCAC and the amount that is paid by the student or third parties making payments on behalf of the student. Accordingly, some types of student financial aid, such as Pell grants and scholarships awarded by CCAC, are considered to be scholarship allowances. The allowances are netted against tuition and fee revenues in the statement of activities.

Foundation Endowment

The Foundation’s endowment was established for a variety of purposes, including for scholarships, facilities, or unrestricted operating purposes. Its endowment includes both donor-restricted endowment funds and unrestricted funds designated by the Board of Directors to function as endowments. Net 2015 County of Allegheny Comprehensive Annual Financial Report 109

Basic Financial Statements assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions.

The Foundation has interpreted Pennsylvania State Act 141 of 1998 (Act) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Foundation classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund and investment income in excess of amounts designated for current operations and losses up to the extent of accumulated gains.

Endowment net position composition by type of fund at June 30, 2015 and changes in endowment net assets for the fiscal year ended June 30, 2015, are as follows:

Unrestricted Permanently Board Designated Restricted Total

Endowment Net Position, Beginning of Year $ 1,825,610 3,799,916 5,625,526

Investment income 32,903 - 32,903 Net appreciation (realized and unrealized) 30,080 64,318 94,398

Total investment 62,983 64,318 127,301

Contributions - 91,157 91,157

Other changes: Withdrawals (72,677) - (72,677) Transfers out - (64,318) (64,318) Miscellaneous expense (8,395) - (8,395)

Endowment Net Position, End of Year $ 1,807,521 3,891,073 5,698,594

Redevelopment Authority of Allegheny County

Basis of Accounting

The financial statements of RAAC have been prepared using the accrual basis of accounting, and accordingly reflect all receivables, payables, and other liabilities in conformity with accounting principles generally accepted in the United States as applicable to governments as previously summarized for the County.

Intergovernmental Revenue

Intergovernmental revenue is recognized when the related expenditure is incurred. Deferred revenues arise when RAAC receives resources prior to incurring qualifying expenditures. Any amounts not collected, for which related expenditures have been incurred prior to December 31, 2015, are reflected as due from other governments. 110 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Loans Receivable

Loans receivable are recognized when the loan is established. Loans receivable are recorded at their principal balance due, less an allowance for uncollectible loans. Interest income on loans is recognized at the loans’ stated interest rates.

RAAC has residential rehabilitation loans, which are presented at a net zero value, as they are only repayable out of available sales proceeds. These loans are fully reserved at the time of issue. The reserve is reversed and income is recognized when the loans are repaid, or when the amount of repayment is determinable and reasonably assured.

Included in RAAC are Economic Development Fund receivables consisting of 33 loans (between $100,000 and $2,500,000) with rates ranging from 0% to 5.5% and with terms ranging from 10 years to 20 years.

It is RAAC’s policy to provide for future losses on loans based on an evaluation that, in RAAC's judgment, require consideration in estimating loan losses of the various programs.

Liens Receivable

As of year-end, the liens are fully reserved, as management determined the receivable to be uncollectable.

Capital Assets

Real estate acquired in conjunction with RAAC's various programs are recognized as expenditures when purchased and are not capitalized because: (1) the property is not used in RAAC’s operations, and; (2) the ultimate amount to be realized upon disposition of the property does not generally accrue to RAAC's benefit. Land inventory is recorded as an asset at the lower of cost or market value until released to a developer for development program activities.

Capital assets, which include land, buildings, and building improvements, are reported in the applicable business-type activities. Capital assets are defined by RAAC as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. The cost of normal maintenance and repairs that does not add to the value of the asset or materially extend assets’ lives is not capitalized.

Buildings and building improvements are depreciated using the straight line method. Buildings are assigned a useful life of 30 years and tenant improvements are amortized over the life of the lease.

Allegheny County Industrial Development Authority

Basis of Accounting

ACIDA has various programs that are reported as separate Enterprise Funds. The ACIDA accounts for its programs on the accrual basis of accounting. Accordingly, revenues are recorded when earned and expenses are recorded when incurred.

Cash and Cash Equivalents

For purposes of presentation, the ACIDA considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. 2015 County of Allegheny Comprehensive Annual Financial Report 111

Basic Financial Statements

Allowance for Uncollectible Accounts

ACIDA uses the allowance method in providing for loan losses. Accordingly, potential loan losses are recorded to the allowance and provided for as bad debt expense when the collection is doubtful. Conversely, when management is of the opinion that previously reserved loans are collectible, the current year's provision is reduced.

Administrative Fees

The ACIDA charges those entities on whose behalf debt is issued a closing fee at the inception of each issue and annual fees due on each anniversary of the issue for as long as the issue is outstanding. Beginning in 2003, new loans issued must pay the first annual fee at closing and then on each anniversary of the issue for as long as the issue is outstanding. Administrative fees are non-refundable and are recognized as revenue at the time they are due as management believes this approach best matches revenues with related expenses.

Allegheny HealthChoices, Inc.

Basis of Accounting

The financial statements of AHCI have been prepared using the accrual basis of accounting, and accordingly reflect all significant receivables, payables, and other liabilities.

Capital Assets

Prior to 2001, capital assets purchased with Allegheny County BH/ID base funds, as well as, certain capital assets purchased with Allegheny HealthChoices funds were expensed as opposed to being capitalized and depreciated as Allegheny County retains title to these assets. These amounts are reported as capital assets with offset costs applied to the program.

In 2008, the threshold for capitalization was raised to $3,000. During 2011, the capitalization threshold was raised to $5,000 for new purchases. Furniture and equipment are carried at cost or, if donated, at the approximate fair value at the date of donation. Depreciation was computed using the straight-line method over the estimated useful lives of the capital assets.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, in banks, as well as, all short-term highly liquid investments with maturities from date of purchase of three months or less.

Recognition of Revenue and Unearned Revenue

Effective January 1, 2014, AHCI entered into a amended contract with the County’s Human Services – Division of Behavioral Health. This agreement is for the period January 1, 2014 through December 31, 2015. Under this agreement, AHCI will be paid 2.75% of the capitation payments made by the Pennsylvania Department of Public Welfare to Allegheny County. Total grant revenue for the year ended December 31, 2015 is $5,973,471. This amount is comprised of gross capitation revenues received of $7,553,923, plus interest earned of $0, less the amount to be repaid to the County of $1,565,462 related to 2015, and the change in the amount of capitation revenue unearned. The change in the unearned balance from December 31, 2014, of $14,989 is reflected as a decrease in the payable to the County. 112 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

The contract permitted AHCI to defer an amount equal to approximately two months' revenue as of December 31, 2015 for cash flow purposes. The total unearned amount is $1,258,987 at December 31, 2015.

Concentrations

AHCI receives a substantial amount of its support from various government sources. A significant reduction in the level of this support, if this were to occur, could have an effect on the programs and activities of AHCI.

Allegheny County Parks Foundation

Basis of Accounting

The financial statements of the Parks Foundation have been prepared using the accrual basis of accounting. Net position, revenues and support are classified based on the existence or absence of donor-imposed stipulations. Accordingly, the net position of Parks Foundation and the changes therein are classified and reported as either unrestricted net position—not subject to donor-imposed stipulations and temporarily restricted net position—subject to donor-imposed stipulation that may or will be met, either by action of the Parks Foundation and/or the passage of time. When a restriction expires, temporarily restricted net position is reclassified to unrestricted net position.

Capital Assets

Property and equipment in excess of $500 are capitalized and are valued at cost for purchased assets and fair value for contributed assets. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets, which range from 3 or more years. Maintenance and repairs are expensed as incurred.

Net position restricted for projects as of December 31, 2015, subject exclusively to purpose restrictions by donors, are as follows:

North Park Multi-Use Trail $ 970,953 Volunteer Mobilization 512,236 Chimney Swift Towers 195,604 Community Awareness 191,072 Operations 97,185 Children's Project 43,000 Boyce Eco Plan 35,660 Communications and Marketing 28,091 Bench Program 20,653 Youth Park Stewardship 5,000 Signage - Interpretive 4,927 Round Hill Shade Structures 4,534 South Park Outdoor Classroom 3,614 Eagle Scout Program 2,123 Settler's Cabins Trails 1,566 South Park Oval Project 1,123 South Park Connector Trail 1,050 Hartwood mansion Restoration 597 Friends of Deer Lake 100 $ 2,119,088 2015 County of Allegheny Comprehensive Annual Financial Report 113

Basic Financial Statements

Contributions Receivable

Unconditional promises to give that are expected to be collected within one year are recorded at net realizable value. At December 31, 2015, the entire contributions receivable is to be received within one year. Decisions to charge off receivables are based on management's judgment after consideration of facts and circumstances surrounding potential uncollectible accounts. As of December 31, 2015 there is no allowance for doubtful accounts.

Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc.

Basis of Accounting

The financial statements of Memorial Hall have been prepared using the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred.

Cash and Cash Equivalents

For presentation purposes, Memorial Hall considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents.

Contributions

Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net position are reclassified to unrestricted net position and reported in the statement of activities as net position released from restrictions.

Contributed services (in-kind contributions) for the year ending December 31, 2015 do not meet the criteria for inclusion in the accompanying financial statements. Memorial Hall receives donation of services of immeasurable benefit to the organization from many individuals.

During 2015, Memorial Hall deaccessioned several collection items. A total of $8,532 was received for the sale of the deaccessioned items. During 2015, Memorial Hall used accumulated proceeds to cover the costs of the display material for the exhibits as well as other curatorial costs.

Capital Assets

Capital assets are recorded at cost. Depreciation of capital assets and leasehold improvements are calculated on a straight-line basis over the estimated service lives. Capital purchases greater than $1,000 and with a life greater than one year are capitalized.

The County transferred ownership of the artifacts and collections held to Memorial Hall. The collections are not recognized as assets on the statement of net position. Purchases of collection items are recorded as decreases in unrestricted net position in the year in which the items are acquired or as decreases in temporarily restricted net position if the assets used to purchase the items are restricted by donors. Contributed collection items are not reflected on the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net position classes. 114 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

(2) Legal Compliance

To comply with no windfall legislation, County management has assigned $1.0 million for 2013 real estate taxes and $1.5 million for 2014 real estate taxes at December 31, 2015 to pay pending Board of Viewer's settlements.

(3) Cash and Investments

GASB Statement No. 40, “Deposit and Investment Risk Disclosures,” requires disclosures related to the following deposit and investment risks: credit risk, custodial credit risk, concentration of credit risk, interest rate risk, and foreign currency risk. The following is a description of the County’s deposit and investment risks:

Deposits and Investments

Pennsylvania statutes provide for investment of governmental funds into certain authorized investments. The statutes also allow pooling of governmental funds for investment purposes. The County Investment Board has adopted an investment policy that adheres to State statutes and further limits permitted investment types and procedures. This policy was last revised January 9, 2013. The primary objectives, in priority order, of the Board’s investment activities are safety of principal, liquidity, and return on investment.

As of December 31, 2015 the book value of County cash and short-term investments (excluding Trust and Agency funds which will be described separately) was $210,838,319. Of this book value of County cash, are restricted funds of $50,084,550 for debt service, liquid fuel, managed care, aging and economic development.

The bank balance of deposits and fair value of short-term investments was as follows:

Cash on hand $ 80,839 Checking and savings accounts 14,456,569 Money market checking/savings accounts 204,378,238 Pennsylvania INVEST 2,937 Other investments 2,776,200 Total $ 221,694,783

The following is a description of the risks related to the cash deposits:

Deposits

Custodial Credit Risk – The risk that, in the event of a bank failure, the County’s deposits may not be returned to it. The County’s investment policy mitigates custodial credit risk by requiring collateralization of uninsured balances of certain investments, including certificates of deposit, savings accounts, time deposits, checking with interest accounts, and repurchase agreements. The County’s investment policy limits collateral to U.S. Treasury Obligations and U.S. Government Agency investments. The policy requires a collateralization level of 102% of the market value of principal and accrued interest and that collateralization be pledged in accordance with Act 72 of the Pennsylvania State Legislature, Section 3836-1 through Section 3836-6. 2015 County of Allegheny Comprehensive Annual Financial Report 115

Basic Financial Statements

As of December 31, 2015, $2,002,450 of the County’s bank balance was insured by the Federal Depository Insurance Corporation. The remaining bank balance of $219,692,333 is uninsured, exposed to custodial credit risk but is collateralized in accordance with Act 72, which requires the institution to pool collateral for all governmental deposits and have the collateral held by an approved custodian in the institution's name.

Investments

As of December 31, 2015, the County’s short term investments are considered to be cash equivalents for presentation on the Statement of Net Position and Governmental Fund Balance Sheet.

The following is a description of the risks related to the County’s investments:

Credit Risk - The risk that an issuer or other counterparty to an investment will not fulfill its obligations is called credit risk. Since the highest priority of the investment program is safety of principal, the County’s investment policy minimizes credit risk by permitting only certain types of investments and establishing minimum quality levels for the riskier investments.

The County Treasurer is authorized by the County Board of Investment to invest in U.S. Treasury Obligations, directly issued U.S. Federal Agency securities, repurchase agreements, deposit accounts, obligations of the Commonwealth of Pennsylvania, shares of investment companies (mutual funds), certificates of deposit, commercial paper, Pennsylvania Local Government Investment Trust (PLGIT), and INVEST. INVEST is a government pool established by the State Treasurer exclusively for investment by Pennsylvania municipalities.

Repurchase agreements may only be established with a primary government securities dealer or a depository institution doing business in Pennsylvania. All agreements must be collateralized at 102% of the market value of principal and accrued interest by U.S. Treasury or U.S. Government Agency securities with AAA ratings and maturities of 30 years. In addition, the agreements must include a definite termination date.

Shares of Investment Companies must be rated AAA. The Investment Company’s holdings may only be in the investments listed in the previous paragraph. In addition, the Companies must be in compliance with Section 2a-7 of the SEC rules.

Commercial Paper must be rated A-1 / P-1 (by Moody’s and S&P respectively) or better. Maturities of commercial paper must not exceed 270 days. All transactions must be made from a registered broker or dealer.

At December 31, 2015, the Pennsylvania INVEST Daily (investment pool) was rated AAAm by S&P.

Custodial Credit Risk – For an investment, custodial credit risk is the risk that in the event of the failure of the counterparty, the County will not be able to recover the value of its investments or collateral securities that are in the possession of an outside entity. The County’s safekeeping and custody policy minimally requires that all security transactions be conducted within the confines of Act 72. Direct security transactions must be on a delivery-versus payment basis. All securities are to be held in the Treasurer’s name. If a counterparty is used, the counterparty must send written confirmation of the transaction to the Treasurer.

Concentration of Credit Risk – According to the County’s investment policy, diversification will prevent over concentration in a sector and minimize the opportunity for risky investments. With the exception of U.S. Treasury securities, no more than 65% of Allegheny County’s total investment portfolio will 116 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

be invested in a single security type or with a single financial institution. As of December 31, 2015, there were no investments over 65% in a single security type or with a single financial institution, therefore the Treasurer's Office was in compliance with this policy.

Interest Rate Risk – Unless matching reserve funds to a specific cash flow, the County’s investment policy limits investment maturities to a maximum of 13 months from the date of purchase. An exception to this rule regards repurchase agreements which should be collateralized with maturities of thirty years. Reserve funds may be invested in securities exceeding five years if the maturity of such investments reasonably coincides with the expected use of the funds.

Agency Fund Deposits and Investments

The County maintains bank accounts for the various Trust & Agency funds. The Office of the County Treasurer is responsible for investing a portion of these deposits. All the policies described above which govern investment of the County’s other funds also govern the Trust & Agency deposits the County Treasurer manages. The other County departments manage the rest of the deposits in accordance with various legislation. The amount of deposits held in investments by departments other than the Treasurer’s Office is very minimal. Most funds are held in FDIC insured checking, savings, or certificates of deposit.

All investments are considered cash equivalents for presentation on the Statement of Fiduciary Net Position. The maturity dates of all investments are less than one year. As of December 31, 2015 the total book balance for cash and investments was $42,571,810. The bank balance of deposits and fair value of short-term investments were as follows:

Cash on hand $ 65,704 Checking and savings accounts 36,612,079 Certificates of deposit 2,391,023 Money market checking/savings accounts 3,766,648 $ 42,835,454

As of December 31, 2015, $1,261,865 of the bank balance was insured by the Federal Depository Insurance Corporation. The remaining bank balance of $41,573,589 was uninsured, exposed to custodial credit risk, but is collateralized in accordance with Act 72 of the Pennsylvania State Legislature which requires the institution to pool collateral for all governmental deposits and have the collateral held by an approved custodian in the institution's name.

Pension Trust Fund Deposits and Investments

The Pension Trust Fund’s investments are held separately from those of other County funds. Investments in the pension trust fund are stated at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued based on the last reported sale price. Bonds and notes not regularly traded on a national exchange are valued based on the last reported sale price. Other investments consist of ownership interests in various private equity funds. These interests are recorded at the latest available book value of the Pension Trust Fund’s ownership interest, generally being December 31, 2015. The book value for the investments approximates fair value due to the requirement for these funds to follow the guidance of accounting standards. 2015 County of Allegheny Comprehensive Annual Financial Report 117

Basic Financial Statements

The Retirement Board has adopted investment guidelines that summarize the investment philosophy of the Board and set forth investment targets and performance objectives for the Pension Fund. In 2013 the Retirement Board approved changes to the target allocations for investments. The investment guidelines, adopted June 16, 2011, were last revised February 21, 2013. The target allocations are included in the revised investment guidelines and are included in these notes.

As of December 31, 2015 the Retirement Board had the following cash and investments in its Pension Trust Fund:

Effective Investment Maturities from December 31, 2015 More than 20 Cash or Investment Type Fair Value Less than 1 year 1-10 Years 10-20 Years years U.S. government & related agency debt $ 17,828,917 588,713 13,901,939 53,088 3,285,177 FNMA & FHLMC 7,698,991 7 333,583 2,273,616 5,091,785 Certificates of deposit 3,838,745 - 3,838,745 - - Corporate debt 57,451,339 687,048 48,551,709 1,661,530 6,551,052 Non-U.S. government and corporate debt 14,220,467 1,141,813 12,723,617 88,480 266,557

Total debt securities 101,038,459 2,417,581 79,349,593 4,076,714 15,194,571 Cash and cash equivalents 14,563,576 Fixed income mutual funds 130,694,926 U.S. common and preferred stock 89,073,003 ADR's 1,036,580 Index funds 71,721,915 Non-U.S. stocks and equity mutual funds 128,906,545 Hedge funds 127,428 Real estate investment trusts 103,516,797 Commodities fund 14,221,684 Private equity/venture capital 166,457,212

Total cash and other investments 720,319,666

Total cash and investments reported on Pension Trust Fund Statement of Net Position $ 821,358,125

Following is a description of the Pension Trust Fund’s deposit and investment risks:

Credit Risk - The risk that an issuer or other counterparty to an investment will not fulfill its obligations is called credit risk. The Pension Fund’s Fixed-Income Investment Managers are authorized by the Retirement Board to invest in marketable debt issues of the U.S. Treasury, U.S. Agencies, U.S. corporations, U.S. banks or other financial institutions, mortgage or asset backed securities, Yankee bonds, and cash equivalents. Domestic bonds in the core-fixed income portfolios must be rated Baa/BBB or better by either Moody’s or Standard & Poor’s.

The investment guidelines allow for two different classifications of fixed-income managers – core fixed income or high-yield fixed income. Core-fixed income portfolios should normally maintain an average market-weighted quality of Aa/AA. High-yield fixed income securities are bonds that are typically below investment grade bonds. These high-yield income securities do carry credit ratings below BBB by definition.

The Retirement Board has passed a “Statement of Investment Policy” which gives the High Yield Fixed Income asset class a target asset allocation of 12% of total fund assets. Within the High Yield Fixed Income class, the policy allows 60% of this class to be invested in Defensive High Yield investments and 40% to be invested in Opportunistic High Yield Investments. The Policy further defines the Opportunistic High Yield investments as “may include CCC and below rated securities”, and Defensive High Yield investments “only generally excluding CCC and below securities”. 118 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

The Pension Trust Fund’s December 31, 2015 fixed income investments have received the following ratings:

Investment Type Corporate Other Non-U.S. Standard & Poor's Corporate Certificates FNMA & Government Gov't & Corporate Rating Bonds of Deposit FHLMC Securities Debt AAA $ 1,506,248 - - - 419,289 AA 3,934,095 - 7,698,991 17,828,917 874,514 A 9,497,236 - - - 1,435,737 BBB 11,549,861 - - - 1,283,546 BB 8,018,216 - - - 920,880 B 14,323,532 - - - 2,004,513 CCC 4,358,523 - - - 198,338 CC 118,680 - - - - D 130,650 - Not Rated 4,014,298 3,838,745 - - 7,083,650 Totals $ 57,451,339 3,838,745 7,698,991 17,828,917 14,220,467

Corporate Other Non-U.S. Moody's Corporate Certificates FNMA & Government Gov't & Corporate Rating Bonds of Deposit FHLMC Securities Debt Aaa $ 1,952,776 7,698,991 17,828,917 364,790 Aa 2,830,848 - - - 959,018 A 10,619,932 - - - 1,281,140 Baa 11,193,764 - - - 1,434,149 Ba 6,980,916 - - - 334,769 B 14,560,395 - - - 2,219,363 Caa 5,777,684 - - - 198,338 Ca 130,650 - - - - Not Rated 3,404,374 3,838,745 - - 7,428,900 Totals $ 57,451,339 3,838,745 7,698,991 17,828,917 14,220,467

The credit ratings for the Pension Fund’s mutual fund investments are unknown.

Custodial Credit Risk – Cash and Cash equivalents - For deposits custodial credit risk is the risk that, in the event of bank failure, the fund’s deposits may not be returned to it. As of December 31, 2015, the book value of the Pension Trust Fund's cash and deposits was $4,943,792 and the bank balance was $5,199,619. Of the $5,199,619 bank balance, $500,000 is covered by federal depository insurance. $4,699,619 is uninsured and subject to custodial credit risk and is collateralized in accordance with Act 72. An additional $9,619,784 in cash equivalents was held by the fund’s investment managers in temporary investment vehicles. The investment guidelines state cash equivalent investments may be U.S. Treasury Bills, U.S. Government repurchase agreements (with a minimum of 102% collateral), money market funds, or commercial paper. If commercial paper is usedforshort-terminvestments,itmustberatedatleastA-1orAbyMoody’sorStandard&Poor’s.

Custodial Credit Risk - Investments - For investments, custodial credit risk is the risk that in the event of the failure of the counterparty, the Fund will not be able to recover the value of its investments or collateral securities that are in the possession of an outside entity. To mitigate custodial credit risk, the Board’s investment guidelines set target asset allocations for all investments. 2015 County of Allegheny Comprehensive Annual Financial Report 119

Basic Financial Statements

The 2015 approved target allocations are as follows:

Asset Allocation Target Diversified Equity 35% Fixed-income 27% Real Estate 10% Venture Capital/Private Equity 20% Commodities 8% Total 100%

Concentration of Credit Risk - The Retirement Board’s investment guidelines do not set total fund diversification guidelines. However they do attempt to minimize the impact of substantial loss in any specific industry or issue by establishing specific limits for the portfolios of each of the investment managers. For equity investment managers, no more than 5% of each manager’s equity portfolio may be invested in any one company (valued at cost), and no more than 10% of each manager’s equity portfolio may be invested in any one company (valued at market). In addition, equity investments may not exceed the benchmark index by 20% of the GICS economic sector allocation.

For the core fixed-income managers - Except for U.S. Treasury and Agency obligations, each manager’s fixed-income portfolio may not contain more than 10% (valued at market) of a given domestic issuer; no more than 10% of each portfolio’s market value may be in Yankee bonds. If an investment manager chooses to invest in SEC Rule 144A securities without registration rights, such securities may not consist of more than 10% of the portfolio.

Interest Rate Risk - Limiting investment maturities is a means of managing exposure to fair value losses arising from rising interest rates. The Retirement Board’s investment guidelines require the effective duration of each fixed-income manager’s portfolio to comply with the following schedule:

Fixed-Income Class Index Duration Limitation Short-term Merrill Lynch One-Three-Year Gov't +20% Government/Credit Lehman Brothers Gov't/Credit +20% Core Lehman Brothers Aggregate +20%

Foreign Currency Risk – For cash and investments, foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment. At December 31, 2015 the Pension Trust Fund held $32,272 in foreign cash; $32,910,989 in common stock investments and $14,220,467 in fixed income investments, all in various non-U.S. dollar denominations.

Component Units - Cash and Investments

Allegheny County Airport Authority

Commonwealth of Pennsylvania law requires that ACAA's deposits be placed in savings accounts, time deposits, or share accounts of institutions insured by the FDIC, the Federal Savings and Loan Insurance Corporation or the National Credit Union Insurance Fund. To the extent that such accounts are so insured, and for any amounts above the insured maximum, the approved collateral as provided by law shall be pledged by the depository. 120 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

ACAA's cash deposits are insured up to $250,000 at financial institutions insured by the FDIC. Any cash deposits in excess of the FDIC limits are uninsured and collateralized by financial institutions via single collateral pool arrangements as permitted by Act 72 of the Pennsylvania State Legislature.

As of December 31, 2015, ACAA had the following cash and cash equivalents and investments in mutual funds:

Moody's %of Standard Investor Cash Equivalents: Amount Investment Maturity & Poor's Service Money Market Mutual Funds BNY Mellon: Blackrock Federal Trust Fund $ 5,015,818 4.8% <90 days AAAm Aaa-mf Wells Fargo Investments: Wells Fargo Advantage Government Fund 59,672,944 56.7% <90 days AAAm Aaa-mf Mellon Investments: Morgan Stanley Government Inst #8302 32,166,592 30.5% <90 days AAAm Aaa-mf

Total money market mutual funds 96,855,354 92.0%

US Government-sponsored enterprise securities (GSEs) Federal Home Loan Bank 4,250,932 4.0% 05-25-2016 AA+ Aaa Federal Home Mortgage Corporation 4,225,812 4.0% 04-15-2016 AA+ Aaa

Total GSEs 8,476,744 8.0%

Total investments $ 105,332,098 100.0%

Interest Rate Risk - The risk that changes in interest rates of debt securities will adversely affect the value of an investment. ACAA does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk - The risk that the issuer or other counterparty to an investment will not fulfill its obligations. The Act provides for investment of governmental funds into certain authorized investment types. Statutes do not prescribe regulations related to demand deposits; however, they do allow pooling of governmental funds for investment. ACAA has no investment policy that would further limit its investment choices.

Custodial Credit Risk: The risk that, in the event of the failure of the counterparty, ACAA will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At December 31, 2015 ACAA's investments were not exposed to custodial credit risk. ACAA's investments in U.S. Government-sponsored enterprise securities are held by the pledging financial institution's trust department or agent in ACAA's name. ACAA's open-end money market mutual funds are not subject to custodial credit risk at December 31, 2015 as their existence is not evidenced by securities that exist in physical or book form. ACAA's investment policy does not address how investment securities and securities underlying repurchase agreements are to be held.

Concentration of Credit Risk - ACAA places no limit on the amount ACAA may invest in any one issuer. ACAA has no current concentration of credit risk. 2015 County of Allegheny Comprehensive Annual Financial Report 121

Basic Financial Statements

Cash, cash equivalents, and investment securities included in the net position are classified as follows:

Cash and cash equivalents: Current - unrestricted $ 70,202,448 Current - restricted 120,903,247 Noncurrent - unrestricted 1,990,282 Total cash and cash equivalents 193,095,977 Investment securities Restricted investments 8,476,744 Total investment securities 8,476,744

$ 201,572,721

Port Authority of Allegheny County

PAT's unrestricted cash and investments are available for general operating purposes, and restricted cash and investments are available for acquisition of assets under capital projects and scheduled payments of the Special Revenue Transportation Bonds (see Note 8).

Cash equivalents, which consist primarily of money market accounts and repurchase agreements, are stated at fair value, which approximates market.

The investment and deposit policy of PAT funds is governed by the by-laws of PAT and the Second Class County Port Authority Act. In accordance with these regulations, PAT has established investment procedures that require that monies be deposited with FDIC-insured banks in demand deposit accounts or certificates of deposit (which are required to be 100% collateralized by separately identified U. S. obligations, if not covered by FDIC insurance). Investments are limited to U. S. obligations and repurchase agreements. Repurchase agreements must be purchased from banks located within the State and the underlying collateral securities must have a market value of at least 100% of the cost of the related repurchase agreement.

PAT's investment procedures do not require the delivery of the underlying securities to PAT; however, it is the obligation of the bank to deposit the pledged obligations with either the Federal Reserve Bank, the trust department of the financial institution issuing the repurchase agreement or another bank, trust company or depository satisfactory to PAT. There were no deposits or investment transactions during the year ended June 30, 2015 that were in violation of either State statutes or the policies of PAT.

PAT does not have a formal investment policy for custodial credit risk, interest rate risk, credit risk, or concentration of credit risk.

The following is a description of PAT's deposit and investment risks:

Custodial Credit Risk - Custodial credit risk is that in the event of a bank failure, PAT’s deposits may not be returned to it. As of June 30, 2015, $24,274,072 of PAT’s bank balance of $24,774,072 was exposed to custodial credit risk, which is collateralized in accordance with Act 72 of the Pennsylvania State Legislature which requires the institution to pool collateral for all governmental deposits and have the collateral held by an approved custodian in the institution’s name. These deposits have a carrying amount of $25,090,998 as of June 30, 2015. 122 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

In addition to the deposits noted above, included in cash and cash equivalents on the statements of net position is the following short-term investment: $82,083,475 invested in the external investment Pool (INVEST) at June 30, 2015.

At June 30, 2015, included in restricted assets for capital additions and related debt on the statements of net position is $21,221,191 invested in the external investment Pool (INVEST) and $11,043,038 in a money market account.

Fair Value Money Market $ 11,043,038

The fair value of PATs investments is the same as their carrying amount. The fair value of PATs investments in the external investment pool (INVEST) is the same as the value of the pool shares.

Interest Rate Risk - Interest rate risk is the risk that changes in interest rates will adversely affect the fair market value of PAT’s investments. The investments noted above have maturities of less than one year.

Credit Risk - Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. As of June 30, 2015, PAT’s investments in the state investment pool (INVEST) and money markets were rated AAA by Standard & Poor’s.

Community College of Allegheny County

By policy of the Board, CCAC is permitted to invest funds consistent with sound business practices in the following types of investments: U.S. Treasury Bills, obligations of the United States of America and related agencies, and the Commonwealth of Pennsylvania, A-1, P-1 rated commercial paper, or equivalent instruments, fully collateralized, per Act 72, time deposits, certificates of deposit, and repurchase agreements of financial institutions which have a short-term rating by Moody’s (or equivalent) of “P-1” or better and whose long-term senior debt rating is “A2” or better, and which have a combined capital surplus and undivided profits of not less than $1,000,000, money market mutual fund/investment companies that are AAA-rated by Moody’s (or equivalent), managed to a $1.00 NAV, and are in compliance with Section 2A-7 of SEC rules, and which restrict their investment to instruments described above.

Custodial Credit Risk - Custodial credit risk is the risk that in the event of a financial institution failure, CCAC will be unable to recover the value of deposits or collateral securities that are in the possession of an outside party. CCAC policy for deposits requires any balance not covered by depository insurance to be collateralized by the financial institution with eligible pledged securities. As of June 30, 2015, bank balance of $69,892,460 and $1,840,491 were covered by federal depository insurance and $63,042,038 was covered by pledged securities held by the financial institution's trust department or in the name of CCAC. The remaining bank balances as of June 30, 2015 of $5,009,931 was not covered by depository insurance or collateralized by the financial institution with eligible pledged securities.

Interest Rate Risk - Interest rate risk is the risk that changes in interest rates will adversely affect the fair market value of CCAC’s investments. By policy of the Board, CCAC is not permitted to invest more than $5 million of cash reserves in instruments with maturities of more than one year and in no event may any investment have a maturity of more than five years. CCAC had no investments as of June 30, 2015. 2015 County of Allegheny Comprehensive Annual Financial Report 123

Basic Financial Statements

Credit Risk - Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. CCAC’s Board policy minimizes credit risk by permitting only certain types of investments and establishing minimum quality levels.

Redevelopment Authority of Allegheny County

RAAC's cash and cash equivalents consist of demand deposits as well as short-term certificates of deposit with a maturity date within three months of the date acquired. Certain cash and cash equivalents are classified as restricted assets because their use is limited by applicable project contracts.

The following is a description of RAAC’s deposit and investment risks:

Deposits - Custodial Credit Risk - Custodial credit risk is the risk that in the event of a bank failure, RAAC’s deposits may not be returned to it. RAAC does not have a formal deposit policy for custodial credit risk. As of December 31, 2015, $30,426,569 of RAAC’s bank balance of $31,426,569 was exposed to custodial credit risk, which is collateralized in accordance with Act 72 of the Pennsylvania State Legislature, which requires the institution to pool collateral for all governmental deposits and have the collateral held by an approved custodian in the institutions name. As of December 31, 2015, the carrying amounts of RAAC’s deposits were $30,648,428.

Investments - In addition to the deposits noted above, RAAC holds short-term investments of mutual funds of $4,897,106.

Interest Rate Risk - RAAC does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. All of RAAC’s investments have a maturity of less than one year.

Credit Risk - RAAC does not have a formal investment policy that would limit its investment choices based on credit ratings by nationally recognized statistical rating organizations. As of December 31, 2015, RAAC had investments of $4,897,106 in various mutual funds; US Bank, First American Fund, Standard & Poors rating AAAm, Moody's rating and BNY Mellon, Dryfus Treasury, Standard & Poor's rating Aaa-mf.

Allegheny County Industrial Development Authority

The following is a description of ACIDA’s deposit and investment risks:

Deposits - Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, ACIDA’s deposits may not be returned to it. ACIDA does not have a formal deposit policy for custodial credit risk. As of December 31, 2015, approximately $1.9 million of ACIDA’s bank balance was exposed to custodial credit risk, which is collateralized in accordance with Act 72 of the Pennsylvania State Legislature which requires the institution to pool collateral for all governmental deposits and have the collateral held by an approved custodian in the institutions name. As of December 31, 2015, the carrying amount of ACIDA’s deposits was approximately $2.4 million.

Investments - ACIDA is authorized to make investments of the following types: (1) United States Treasury bills, (2) short-term obligation of the United States government or its agencies or instrumentalities, (3) deposits in saving accounts or time deposits or share accounts of institutions which are insured, (4) obligations of the Commonwealth of Pennsylvania or any of its agencies or instrumentalities of any political subdivision thereof, and (5) shares of an investment company 124 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

registered under the Investment Company Act of 1940, whose shares are registered under the Securities Act of 1933, provided that the investments of that company meet the criteria in (1) through (4) above.

As of December 31, 2015, ACIDA investments were held in the PLGIT. All investments in the external investment pool, which are not SEC registered, are subject to the oversight by the Commonwealth of Pennsylvania. ACIDA has approximately $3.0 million of cash and cash equivalents, of which approximately $600,000 was held in PLGIT at December 31, 2015.

Interest Rate Risk - ACIDA does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates; however, the investments in PLGIT described above all have maturities of less than one year.

Credit Risk - ACIDA does not have a formal investment policy that would limit its investment choices based on credit ratings by nationally recognized statistical rating organizations. As of December 31, 2015 ACIDA’s investments in PLGIT were rated AAA by Standard & Poor’s.

The PLGIT investments are recorded on as cash and cash equivalents or restricted cash and cash equivalents as these are investments with original maturities less than three months.

Allegheny HealthChoices, Inc.

In accordance with the AHCI contract, separate cash accounts are maintained for claims funding. AHCI holds the funds on behalf of Allegheny County, therefore; a corresponding liability is reflected on the Statement of Net Position.

The following is a description of AHCI’s deposit and investment risks:

Custodial Credit Risk - Custodial credit risk is that in the event of a bank failure, AHCI deposits may not be returned to it. AHCI does not have a formal deposit policy for custodial credit risk. As of December 31, 2015, $15,286,766 of AHCI’s bank balance of $15,536,766 was exposed to custodial credit risk, which is collateralized in accordance with Act 72. As of December 31, 2015, the carrying amount of AHCI’s deposits was $15,462,343. At December 31, 2015, the investment balance was $1,537,738 and included investments in money market funds, long term certificates of deposit, fixed income bonds, and annuity contracts. The carrying amount of the money market funds, long term certificates of deposit, and fixed income bonds was a fair value $1,405,074. At December 31, 2015 the annuities are valued at $132,664. Annuities are valued at the net asset value of shares held by the 457(B) deferred compensation plan. These investments are valued based on the underlying market value of investments are valued as of the close of trading.

Allegheny County Parks Foundation

Custodial Credit Risk - Custodial credit risk is that in the event of a bank failure, Parks Foundation deposits may not be returned to it. The Parks Foundation does not have a formal investment policy. Cash and cash equivalents are held in a bank which carries FDIC insurance. At December 31, 2015, book balance and bank balance of all deposits totaled $1,934,011. $250,000 of the $1,934,011 bank balance was FDIC insured. 2015 County of Allegheny Comprehensive Annual Financial Report 125

Basic Financial Statements

Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc.

Cash and cash equivalents are held in a bank which carries FDIC insurance. At December 31, 2015, book balance and bank balance of all deposits totaled $1,264,714 and $1,279,499, respectively. $355,205 of the $1,279,499 bank balance was FDIC insured.

(4) Property and Sales Tax Revenue and Receivables

Receivables at December 31, 2015 consist of the following:

Due from Other Governmental Activities Property Taxes Receivable Sales Tax Other Accounts Delinquent Lien Receivable Governments Receivable

General Fund $ 9,512,645 27,511,121 9,152,545 154,238,616 14,433,009 County Grants Fund - - - 23,315,456 890,848 Human Service Grant Fund - - - 129,852,718 3,077,298 Capital Projects Fund - - - 14,911,302 86,458 Other Governmental Funds 1,863,464 8,221,328 - 121,316 - Total Governmental Receivables 11,376,109 35,732,449 9,152,545 322,439,408 18,487,613

Less: allowances (Note 1D) 1,387,491 8,321,346 - 1,589,554 3,220,046

Net Governmental Receivables $ 9,988,618 27,411,103 9,152,545 320,849,854 15,267,567

The reconciliations (Exhibits 3A and 4A) of Governmental Funds to the government-wide statements contain information related to revenue recognition.

Property and Sales Taxes

The County's real property tax is levied by ordinance of the County Council on real property located in the County. In 2001, the County changed its predetermined ratio, which is the ratio of assessed value to market value uniformly applied in determining assessed value in any year. Prior to 2001, the assessed value of real property equaled 25% of market value. Beginning in 2001, the assessed value equaled 100% of market value. The last revaluation of real property was completed for the property list of January 1, 2013. The total estimated assessed and market value of taxable real estate at January 1, 2015 was $75,214,999,504.

The tax rate to finance general governmental services, other than debt service requirements, for the year ended December 31, 2015 was $.39552 per $100. The tax rate to finance debt service requirements for the year ended December 31, 2015 was $.07748 per $100.

Real property taxes levied are recorded as receivables, net of amounts estimated to be uncollectible. At December 31, 2015, the allowances for uncollectible delinquent and liened property taxes aggregated $1,387,491 and $8,321,346, respectively.

Real property taxes for 2015 were levied on January 1, 2015, with a final due date of April 30, 2015. A 2% discount was granted on remittances through March 31, 2015. In 2015, tax liens were filed for taxes due April 30, 2014.

Effective July 1, 1994, under authority granted by the Commonwealth of Pennsylvania, the Board of Commissioners adopted an ordinance imposing a 1% sales, use and hotel occupancy excise tax within the County. One-half of the annual revenue generated by the sales tax was dedicated to funding 126 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

regional assets throughout the County. One-quarter of the annual revenue generated was used for municipal tax reform, and the remaining one-quarter was used for County tax reform. Accordingly, the County eliminated the personal property tax in 1995 and reduced real property taxes. The County’s sales tax revenue for 2015 was $47,559,039.

Component Units – Receivables

All Component Units

Receivables at the component unit’s respective year ends consisted of following:

Due from Due from Component Other Primary Trade Other Interest & Loans Unit Governments Government Receivable Receivable Dividends Receivable ACAA $ 6,789,323 4,154,572 1,891,363 3,188 - PAT 8,345,534 - - 18,062,333 - - CCAC 271,172 - 12,143,190 1,390,356 - - RAAC 14,998,476 1,184,489 - 1,794,978 - 22,730,046 ACIDA 823,112 - 7,840 - - 1,928,525 AHCI - 109,992 242,456 - - Parks Foundation - 2,374 - 412,685 - - SSMH - - 35,271 82,467 - - 31,227,617 1,296,855 16,583,329 23,634,182 3,188 24,658,571 Less: allowances - - 7,878,569 1,770,000 - 1,765,953 Total $ 31,227,617 1,296,855 8,704,760 21,864,182 3,188 22,892,618

Redevelopment Authority of Allegheny County

RAAC makes loans through the Economic Development Fund (EDF) which is a revolving loan fund and the Allegheny County Home Improvement Loan Program (AHILP). The purpose of the EDF is to positively impact the regional economy by promoting economic development and improved employment opportunities in the County. The AHILP issues loans to finance the rehabilitation of residential housing for persons and families of low to middle income throughout the County.

The Section 108 Loan fund has six loans outstanding to a single borrower. These loans earn variable rate interest of 3 month LIBOR plus 50 basis points. As of December 31, 2015, 3 month LIBOR was .61%.

The General Fund loan is to carry out cleanup activities at brownfield sites in Allegheny County. The loan was given to a single borrower in 2010. The original amount of the loan was $1 million bearing an interest rate of 2.109%. 2015 County of Allegheny Comprehensive Annual Financial Report 127

Basic Financial Statements

The following is a summary loans receivable outstanding at December 31, 2015:

Allowance Net Receivable for Loan Receivable Balance Losses Balance

Economic Development Fund (EDF) $ 13,282,224 1,460,609 11,821,615 Home Improvement Loan Program (AHILP) 3,248,730 105,344 3,143,386 Section 108 Loan Fund* 4,908,000 - 4,908,000 General Fund Loan 854,052 - 854,052 Other loan programs 437,040 - 437,040

$ 22,730,046 1,565,953 21,164,093

* See Note 8 for more information.

Allegheny County Industrial Development Authority

The due from other governments of $823,112 is due from RAAC. It is the amount ACIDA expects to receive as repayment from a revolving loan agreement with RAAC to assist small businesses adversely affected by Hurricane Ivan in 2004 and the communities surrounding Pittsburgh.

ACIDA administers certain programs on behalf of other entities. Under this arrangement, ACIDA collects certain loans from third parties. These loans receivable are recorded in the various Proprietary Funds.

The following is a summary of commercial loans outstanding, not including deferred loans that are recorded at a net zero value, at December 31, 2015:

Allowance Net Receivable for Loan Receivable Program Balance Losses Balance

Small Business Distressed Communities $ 392,992 - 392,992 Development Action Assistance Program 947,139 200,000 747,139 Allegheny County EDA Program 485,740 - 485,740 UPARC 102,654 - 102,654

$ 1,928,525 200,000 1,728,525

The above loans bear interest at rates ranging from 2.375% to 9% per annum. These loans range in amounts from $1,000 to $500,000 and mature through 2021. 128 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

(5) Capital Assets

The following is a summary of the changes in capital assets for the year ended December 31, 2015:

Balance Balance January 1, 2015 Increases Decreases December 31, 2015 Capital Assets, not being depreciated:

Land $ 24,376,590 227,912 - 24,604,502 Construction in progress 65,890,713 27,652,144 66,963,692 26,579,165 Total capital assets, not being depreciated 90,267,303 27,880,056 66,963,692 51,183,667

Capital Assets, being depreciated:

Land Improvements 8,192,901 - - 8,192,901 Buildings 415,100,533 2,842,180 - 417,942,713 Buildings - Capital Lease 7,678,839 - - 7,678,839 Buildings - Leasehold Improvements 20,584,760 - - 20,584,760 Infrastructure 522,765,579 65,025,379 - 587,790,958 Furniture and Other Equipment 102,609,892 4,138,896 5,539,326 101,209,462

Total capital assets, being depreciated 1,076,932,504 72,006,455 5,539,326 1,143,399,633

Less accumulated depreciation for:

Land Improvements 7,051,708 288,439 - 7,340,147 Buildings 191,782,387 8,192,140 - 199,974,527 Infrastructure 178,808,584 11,193,158 - 190,001,742 Furniture and Other Equipment 37,078,683 5,672,477 5,539,326 37,211,834

Total accumulated depreciation 414,721,362 25,346,214 5,539,326 434,528,250

Net depreciated assets 662,211,142 46,660,241 - 708,871,383

Net capital assets $ 752,478,445 74,540,297 66,963,692 760,055,050

Governmental Activities

No events or changes in circumstances affected a capital asset that may indicate impairment. 2015 County of Allegheny Comprehensive Annual Financial Report 129

Basic Financial Statements

Depreciation was charged to governmental functions as follows:

General government $ 3,144,604 Public safety 4,651,091 Public works 14,182,092 Health and welfare 1,865,430 Culture and recreation 1,498,385 Economic development 4,612 Total $ 25,346,214

The County has active construction projects as of December 31, 2015. The projects include bridge design and bridge constructions, road improvements and reconstruction, purchases of equipment, building improvements, repairs and renovations. At year end, the County’s encumbrances with contractors for major capital projects are as follows:

Project Encumbrance

Lateral Support & Reconstruction for County Roads $ 3,881,998 South 10th Street Bridge Repairs 2,343,856 Miscellaneous Bridge Design 804,161 Homeville Viaduct Bridge 684,104 Campbells Run Road 648,402 Waterworks Road Lateral Support 559,682 Annual Road & Facilities Improvement 266,103 Mt Troy Road Lateral Support 261,455 Open End Roadway & Traffic Engineering 242,501

This year's encumbrances were bridge and road projects. They are being financed through capital fund general obligation bond, with the subsequent costs to be reimbursed by federal and State funding. All other funds encumbrances are insignificant. 130 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Component Units - Capital Assets

Allegheny County Airport Authority

Capital asset activity for the year ended December 31, 2015 is as follows:

Balance Balance January 1, 2015 Increases Decreases Transfers December 31, 2015

Capital assets, not being depreciated:

Land and site development $ 90,923,010 252,564 - 178,906 91,354,480 Construction in progress 22,193,728 32,793,072 - (34,973,214) 20,013,586

Total capital assets, not being depreciated 113,116,738 33,045,636 - (34,794,308) 111,368,066

Capital assets, being depreciated:

Terminal buildings 733,482,725 558,175 - 22,820,672 756,861,572 Runways & taxiways 525,810,034 338,691 1,771,357 7,235,004 531,612,372 Site development 81,493,578 - - - 81,493,578 Parking Garage / Lots / Etc. 116,032,404 91,371 - 339,507 116,463,282 Hangars 44,299,125 - - 150,690 44,449,815 Other Structures 162,332,399 806,944 - 526,317 163,665,660 Roadways 68,068,138 43,130 - 668,631 68,779,899 Mobile and Other Equipment 54,831,149 - 380,209 845,344 55,296,284 Computer/Security Equip & Systems 53,690,610 - - 401,270 54,091,880 Utilities 48,292,770 - - 27,091 48,319,861 Other Assets 18,420,765 - - 1,779,782 20,200,547

Total capital assets, being depreciated 1,906,753,697 1,838,311 2,151,566 34,794,308 1,941,234,750

Less accumulated depreciation for:

Terminal buildings 586,508,801 17,251,809 - - 603,760,610 Runways & taxiways 358,410,639 18,377,253 1,771,357 - 375,016,535 Site development 41,655,774 1,761,942 - - 43,417,716 Parking Garage / Lots / Etc. 61,176,359 4,976,613 - - 66,152,972 Hangars 38,235,890 799,752 - - 39,035,642 Other Structures 101,279,770 5,719,540 - - 106,999,310 Roadways 59,432,011 606,236 - - 60,038,247 Mobile and Other Equipment 46,329,265 1,587,089 330,262 - 47,586,092 Computer/Security Equip & Systems 28,508,767 3,028,030 - - 31,536,797 Utilities 36,782,900 1,546,550 - - 38,329,450 Other Assets 12,094,673 1,127,603 - - 13,222,276

Total accumulated depreciation 1,370,414,849 56,782,417 2,101,619 - 1,425,095,647

Net depreciated assets 536,338,848 (54,944,106) 49,947 34,794,308 516,139,103

Net capital assets $ 649,455,586 (21,898,470) 49,947 - 627,507,169

ACAA maintains various collections of inexhaustible assets to which no value can be determined. Such collections could include contributed works of art, historical treasures, literature, etc. that are held for exhibition and public service. These collections are neither disposed of for financial gain nor encumbered in any means. Accordingly, such collections are not capitalized or recognized for financial statement purposes.

As of December 31, 2015, ACAA had equipment purchase and construction commitments of approximately $38.6 million. 2015 County of Allegheny Comprehensive Annual Financial Report 131

Basic Financial Statements

Port Authority of Allegheny County

The following is a summary of changes in capital assets for the year ended June 30, 2015:

Balance Balance July 1, 2014 Increases Decreases June 30, 2015

Capital assets, not being depreciated:

Land $ 105,162,502 - - 105,162,502 Construction in progress 25,326,236 555,924 - 25,882,160

Total capital assets, not being depreciated 130,488,738 555,924 - 131,044,662

Capital assets, being depreciated:

Buildings 356,804,576 9,027,378 - 365,831,954 Transportation equipment 655,761,332 27,842,757 2,468,306 681,135,783 Track, roadway, and subway stations 1,639,032,138 3,230,158 230,526 1,642,031,770 Other property, equipment, and assets 160,786,595 11,346,364 273,854 171,859,105

Total capital assets, being depreciated 2,812,384,641 51,446,657 2,972,686 2,860,858,612

Less accumulated depreciation for:

Buildings 161,375,262 10,852,982 - 172,228,244 Transportation equipment 422,896,618 33,377,470 2,468,306 453,805,782 Track, roadway, and subway stations 866,174,441 49,771,516 230,526 915,715,431 Other property, equipment, and assets 94,981,403 11,161,989 273,854 105,869,538

Total accumulated depreciation 1,545,427,724 105,163,957 2,972,686 1,647,618,995

Net depreciated assets 1,266,956,917 (53,717,300) - 1,213,239,617

Net capital assets $ 1,397,445,655 (53,161,376) - 1,344,284,279 132 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Community College of Allegheny County

The following is a summary of changes in capital assets for the year ended June 30, 2015:

Balance Balance July 1, 2014 Increases Decreases* June 30, 2015

Capital assets, not being depreciated:

Construction in progress $ 4,199,066 17,618,524 3,101,269 18,716,321 Land 4,028,747 - - 4,028,747 8,227,813 17,618,524 3,101,269 22,745,068

Capital assets, being depreciated:

Buildings 184,672,910 2,694,794 - 187,367,704 Land improvements 7,016,884 337,743 - 7,354,627 Infrastructures 3,854,657 46,240 - 3,900,897 Leasehold improvements 38,857 - - 38,857 Equipment & A.V. equipment 10,560,251 1,070,791 71,610 11,559,432 Grant related equipment 5,857,409 221,165 14,173 6,064,401 Furniture & fixtures 2,251,299 220,570 4,408 2,467,461 Computer equipment 14,279,378 2,200,323 - 16,479,701 Computer software 3,993,317 276,043 - 4,269,360 Library books 4,878,197 212,838 - 5,091,035

Total capital assets, being depreciated 237,403,159 7,280,507 90,191 244,593,475

Less accumulated depreciation for:

Buildings 85,613,915 3,720,406 - 89,334,321 Land improvements 5,190,146 226,657 - 5,416,803 Infrastructures 1,264,302 148,319 - 1,412,621 Leasehold improvements 15,441 1,554 - 16,995 Equipment & A.V. equipment 7,152,361 736,292 67,047 7,821,606 Grant related equipment 3,545,937 514,308 14,173 4,046,072 Furniture & fixtures 1,697,232 142,744 4,408 1,835,568 Computer equipment 9,970,404 1,375,281 - 11,345,685 Computer software 3,727,957 156,150 - 3,884,107 Library books 3,858,075 174,857 - 4,032,932

Total accumulated depreciated 122,035,770 7,196,568 85,628 129,146,710

Net depreciated assets 115,367,389 83,939 4,563 115,446,765

Net capital assets 123,595,202 138,191,833

Foundation assets, being depreciated:

Property and equipment 25,531 - - 25,531

Less: accumulated depreciation 24,284 1,247 - 25,531

Net depreciated assets 1,247 1,247 - -

Net capital assets with foundation assets $ 123,596,449 138,191,833

* Included within retirement is the transfer of assets capitalized from within the construction in progress category to the various depreciable asset categories. 2015 County of Allegheny Comprehensive Annual Financial Report 133

Basic Financial Statements

Redevelopment Authority of Allegheny County

The following is a summary of changes in capital assets for the year ended December 31, 2015:

Balance Balance January 1, 2015 Increases Decreases December 31, 2015

Capital Assets, not being depreciated:

Land $ 1,528,300 - - 1,528,300

Capital Assets, being depreciated:

Buildings and tenant improvements 5,489,223 - - 5,489,223

Less: accumulated depreciation 2,755,464 335,460 - 3,090,924

Net depreciated assets 2,733,759 (335,460) - 2,398,299

Net capital assets $ 4,262,059 (335,460) - 3,926,599

Allegheny HealthChoices, Inc.

The following is a summary of changes in capital assets for the year ended December 31, 2015:

Balance Balance January 1, 2015 Increases Decreases December 31, 2015

Capital Assets, being depreciated:

Furniture & Equipment $ 1,099,130 31,497 69,231 1,061,396 Leasehold Improvements 21,927 - - 21,927 1,121,057 31,497 69,231 1,083,323 Less: accumulated depreciation 1,062,962 38,366 69,231 1,032,097

Net depreciated assets $ 58,095 (6,869) - 51,226

Under provisions of the Contract with the County, furniture and equipment acquired with BH/ID/DA funds remain the property of the funding agency. If the contractual relationship is terminated, the funding agency may, at its discretion, take possession of such assets. The total cost of furniture and equipment acquired with BH/ID/DA funds, including capital assets donated by the County and retained by AHCI at December 31, 2015 is $85,875. 134 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Allegheny County Parks Foundation

The following is a summary of changes in capital assets for the year ended December 31, 2015:

Balance Balance January 1, 2015 Increases Decreases December 31, 2015

Capital Assets, being depreciated: Furniture & Equipment $ 20,059 - - 20,059

Less accumulated depreciation for: Furniture & Equipment 16,870 1,957 - 18,827

Net depreciated assets $ 3,189 (1,957) - 1,232

Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc.

The following is a summary of changes in capital assets for the year ended December 31, 2015:

Balance Decreases/ Balance January 1, 2015 Increases Transfers December 31, 2015

Capital Assets, not being depreciated: Leasehold improvements in progress $ - 52,180 - 52,180 Capital Assets, being depreciated: Equipment 298,930 1,401 - 300,331 Leasehold improvements 6,774,064 22,850 - 6,796,914

Total capital assets, being depreciated 7,072,994 24,251 - 7,097,245

Less accumulated depreciation for: Equipment 280,941 6,014 - 286,955 Leasehold improvements 2,747,111 278,439 - 3,025,550

Total accumulated depreciation 3,028,052 284,453 - 3,312,505

Net depreciated assets 4,044,942 (260,202) - 3,784,740

Net capital assets $ 4,044,942 (208,022) - 3,836,920

The building (Hall) is owned by Allegheny County and leased to Memorial Hall for $1 per year until December 31, 2025, with options to renew. No financial statement value has been assigned to this donated space, as its fair value is not susceptible to reasonable estimation. Memorial Hall is required to maintain the property in good working order. In 2000, Memorial Hall began undergoing significant projects to renovate its facility. These projects are reflected in the financial statements as leasehold improvements.

(6) Risk Management

The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets; errors and omissions; employee injuries and occupational diseases; residential care facility operations; and natural disasters. The Risk Management Fund is used to account for the risks associated with the self-insured dental program and settlements. The General Fund accounts for all other risks. 2015 County of Allegheny Comprehensive Annual Financial Report 135

Basic Financial Statements

The County has changed from being self-insured for healthcare to obtaining third-party insurance for the majority of its employees. The County has retained its self-insured dental program. The Risk Management Fund provides coverage for up to a maximum of $1,000 per year for dental coverage, and between $100,000 and $250,000 for individual medical claims.

Payments are made to the Risk Management Fund from the various County funds based on appropriations required to pay prior and current year claims.

The dental, workers’ compensation settlements, workers’ compensation claims and general, automobile and public official liability balance at December 31, 2015 of $7,981,204 is based on the requirements of GASB Statement No. 10, as amended by GASB Statement No. 30, which requires that a liability for claims be reported if information prior to the issuance of financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.

The claim liability is provided to the County by the various healthcare third-party administrators and the workers’ compensation third-party administrator and other third-party advisors. Any adjustments made to previously recorded estimated liabilities are reflected in current operating results.

The County is self-insured for workers' compensation and claims are paid from the General Fund. As required by the Commonwealth of Pennsylvania, commercial insurance is purchased with a retention of $1,250,000 for each accident and each employee. The County contracts with a program administrator to operate the program.

Changes in the various claims liability for the years ended December 31, 2015 and 2014 were:

Current Year Claims Liability Balance Liability Balance as and Changes as of of January 1 in Estimates Claim Payments December 31

Risk Management fund (Dental and Settlements)

2015 $ 701,387 1,380,761 1,412,604 669,544 2014 626,389 1,862,953 1,787,955 701,387

Government-wide Financial Statement (General, Automobile, and Public Officials Liability)

2015 $ 206,066 555,624 127,485 634,205 2014 88,705 290,536 173,175 206,066

Government-wide Financial Statement (Worker's Compensation Claims)

2015 $ 7,783,011 2,303,394 3,408,950 6,677,455 2014 7,696,569 3,920,013 3,833,571 7,783,011

Total all Funds and government-wide financial statement (Dental and Settlements, Workers' Compensation, General, Automobile and Public Officials Liabilities)

2015 $ 8,690,464 4,239,778 4,949,038 7,981,204 2014 8,411,663 6,073,503 5,794,702 8,690,464 136 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

The non-current portion of unpaid workers’ compensation claims amounted to $3,197,784 as of December 31, 2015, and is reflected in the government-wide statements. The government-wide financial statements record one year as current claims. The liability in the General Fund is the amount that is due and payable at the end of the year. Liabilities are reported when it is probable that losses have occurred and the amounts of the losses can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported to date. Liabilities are determined using a combination of actual claims experience and actuarially determined amounts and include incremental claim adjustment expense and estimated recoveries.

There have been no significant changes in insurance coverage since the prior year. Settled claims from risks have not exceeded commercial insurance coverage for the past three years.

Component Units – Risk Management

Allegheny County Airport Authority

ACAA is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions or injuries to employees and natural disasters. ACAA carries commercial insurance to cover these risks of loss. The commercial insurance coverage is on a guaranteed cost basis covering any expense of the ACAA. Claims on this coverage have not exceeded commercial premiums.

Port Authority of Allegheny County

PAT has a self-insurance program for public liability, property damage, and workers’ compensation claims. Estimated costs for these self-insurance programs are accrued in the year the expenses are incurred, based upon the estimates of the claim liabilities made by management and legal counsel. Estimates of claim liabilities are accrued based on projected settlement for claims and include estimates for claims incurred but not reported. Any adjustments made to previously recorded reserves are reflected in current operating results.

The Supreme Court of Pennsylvania has held PAT to be a Commonwealth Agency as defined in the Political Subdivision Tort Claims Act. As such, PAT is immune from certain claims and its liability is limited to $1,000,000 per occurrence and $250,000 per plaintiff claim arising out of an occurrence. As the result of this holding, it has not been necessary for PAT to purchase excess public liability insurance and is self-insured for public liability claims.

PAT is self-insured for its compensation and occupational disease liability in accordance with the provisions of Article III, Section 305 of the Pennsylvania Workers’ Compensation Act. On a yearly basis, PAT carries excess workers' compensation insurance in the amount of $5,000,000 over its self-insurance retention of $1,000,000 per occurrence to further ensure that it can meet its obligation under the Workers' Compensation Act. PAT maintains an estimate of its potential liability related to claims that have been filed as of June 30, 2015. The reserve balance is approximately $12.7 million at June 30, 2015.

Changes in the claims liability for the years ended June 30, 2015 and 2014 were:

Liability Balance Current Year Claims and Liability Balance as as of July 1 Changes In Estimates Claim Payments of June 30

2015 $ 12,706,937 2,140,865 2,151,316 12,696,486 2014 14,631,799 1,259,752 3,184,614 12,706,937 2015 County of Allegheny Comprehensive Annual Financial Report 137

Basic Financial Statements

Community College of Allegheny County

The nature of the educational industry is such that, from time to time, CCAC is exposed to various risks of loss related to torts; alleged negligence; acts of discrimination; breach of contract; disagreements arising from the interpretation of laws or regulations; theft of; damage to; and destruction of assets; errors and omissions; injuries to employees and natural disasters.

While some of these claims may be for substantial amounts, they are not unusual in the ordinary course of providing education services in a higher education system. In addition, CCAC’s liability associated with some claims may be negated or substantially reduced by the governmental or sovereign immunity afforded to it through the Torts Claims Act.

CCAC has not reduced any of its insurance coverage from the prior year and settled claims have not significantly exceeded CCAC’s coverage in any of the past three years. CCAC does not participate in any public entity risk pools, and does not retain risk related to any aforementioned exposure, except for those amounts incurred relative to policy deductibles that are not significant.

Redevelopment Authority of Allegheny County

RAAC relies on grants from governmental agencies to fund a significant portion of the operations of RAAC's Governmental Funds. During 2015, grants represented $36,306,499 or 96% of total revenues in the Governmental Funds. If these grants were to cease RAAC would not be able to sustain its current level of operations.

Industrial Development Authority of Allegheny County

ACIDA receives significant financial assistance from governmental agencies in the form of contracts, grants, and other entitlements. The disbursement of funds received under such programs generally requires compliance with terms and conditions specified in the contract/grant agreements and are subject to audit by grantor agencies. Any disallowed costs resulting from such audits could become a liability of ACIDA. The amount, if any, of expenditure that may be disallowed by the granting agencies cannot be determined at this time. Management expects such amount, if any, to be immaterial.

Parks Foundation

For the year ended December 31, 2015, the Parks Foundation received contributions from two sources representing approximately 63% of the Parks Foundation's revenue and support, and had contributions receivable from the County for approximately 67% of total receivable.

(7) Short-Term Debt

Component Units - Short-Term Debt

Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc.

Memorial Hall established two $100,000 lines of credit, renewed annually, for short-term operating cash flow purposes. The rates of interest are 3.5% and 4.5% at December 31, 2015. There was no activity during the year and no outstanding balance under theses lines of credit at December 31, 2015. 138 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

(8) Long-Term Debt

General obligation bonds payable at December 31, 2015, are summarized as follows:

Final Bond Issue Maturity Amount Series Interest Rate Dates Dates Issued Outstanding

C-50 Variable (1) 2000 2027 $ 37,345,000 37,275,000 C-51 Variable (1) 2000 2027 14,455,000 14,455,000 C-56 1.25 - 5.00 2003 2016 104,435,000 2,550,000 SEA 1.95 - 5.00 2005 2018 4,172,500 490,000 C-59A 3.68 - 3.89 2007 2016 28,730,000 3,495,000 C-59B Indexed (2) 2007 2026 43,945,000 43,945,000 C-60 3.66 - 4.19 2007 2032 56,625,000 56,585,000 C-61 3.00 - 5.00 2008 2033 49,220,000 47,455,000 C-62 2.50 - 5.00 2009 2029 80,000,000 79,970,000 C-64 6.25 2010 2027 9,385,000 9,385,000 C-65 1.50 - 5.375 2011 2031 76,155,000 76,130,000 C-66 1.50 - 5.375 2011 2020 13,895,000 6,530,000 C-67 1.00 - 5.00 2011 2031 39,510,000 39,490,000 C-68 1.00 - 5.00 2011 2028 35,715,000 31,125,000 C-69 2.00 - 5.00 2012 2032 54,560,000 54,540,000 C-70 2.00 - 5.00 2012 2037 112,600,000 112,585,000 C-72 2.00 - 5.25 2013 2024 37,950,000 37,945,000 C-73 3.00 - 5.00 2014 2020 123,925,000 102,050,000 C-74 3.00 - 5.00 2014 2034 63,570,000 63,570,000

General obligation (G.O.) bonds $ 986,192,500 819,570,000 Premium on issues 38,145,662 Discount on issues (566,733)

Total long-term debt 857,148,929

Less: current maturities 33,820,000

$ 823,328,929

(1) At December 31, 2015, the rate was .01%; the maximum for this issue is 10%. (2) The 4.1355% synthetic fixed rate achieved through a pay-fixed, receive variable interest rate swap contract (Note 14). 2015 County of Allegheny Comprehensive Annual Financial Report 139

Basic Financial Statements

The following is a summary of the changes in general obligation bonds payable of the County during 2015:

Governmental Funds

G.O. Bonds payable at January 1, 2015 $ 904,042,704

Additions: Adjustment for Component Unit 22,135 22,135

Deletions: Retirements 34,562,500 Amortization of premium and adjustments 12,353,410 Total deductions 46,915,910

G.O. Bonds payable at December 31, 2015 857,148,929

Less: Current maturities 33,820,000

$ 823,328,929

On August 5, 2014 the County issued General Obligation Bonds, Series C-74 in the amount of $63,570,000. The proceeds of the Series C-74 Bonds were used to: (1) fund various projects of the County’s Capital Budget and (2) pay certain costs related to the issuance of Series C-74 Bonds.

On August 5, 2014 the County issued General Obligation Refunding Bonds, Series C-73 in the amount of $123,925,000. The proceeds of the Series C-73 Bonds were used to: (1) refund portions of the County's General Obligation Notes, Series C-57 and (2) pay certain costs related to the issuance of Series C-73 Bonds.

As noted above, in 2014 the County General Obligation Notes, Series C-57 was partially refunded, thereby decreasing the County’s total debt service payments over the next 10 years by approximately $17,353,310 representing an economic gain (the difference between the present valve of the old and new debt service payments) to the County of $16,050,553.

On October 23, 2013 the County issued General Obligation Bonds, Series C-72 in the amount of $37,950,000. The proceeds of the Series C-72 Bonds were used to: (1) fund various projects of the County’s Capital Budget (2) provide capitalized interest on the Bonds and (3) pay certain costs related to the issuance of Series C-72 Bonds.

On October 11, 2012 the County issued General Obligation Bonds, Series C-70 in the amount of $112,600,000. The proceeds of the Series C-70 Bonds were used to: (1) fund various projects of the County’s Capital Budget (2) provide capitalized interest on the Bonds and (3) pay certain costs related to the issuance of Series C-70 Bonds.

On October 11, 2012, the County issued General Obligation Refunding Bonds, Series C-69 in the amount of $54,560,000. The proceeds of the Series C-69 Bonds were used to: (1) refund portions of the County’s General Obligation Bonds, Series C-55, and all of the Allegheny County Industrial 140 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Development Authority Guaranteed Revenue Bonds, Series 2002A and Series 2002B and the County’s Adjustable Rate Demand General Obligation Bonds, Series 58A and (2) pay certain costs related to the issuance of the Series C-69 Bonds.

As noted above, in 2012 the County General Obligation Bonds, Series C-55 was partially refunded, the Allegheny County Industrial Development Authority Guaranteed Revenue Bonds Series 2002A and Series 2002B and the Allegheny County Adjustable Demand General Obligation Bonds Series 58A were fully refunded thereby increasing the County’s total debt service payments over the next 20 years by approximately $22,592,862 representing an economic gain (the difference between the present valve of the old and new debt service payments) to the County of $1,948,704.

On September 7, 2011, the County issued General Obligation Bonds, Series C-68 in the amount of $35,715,000. The proceeds of the Series C-68 Bonds were used to: (1) reacquire the unencumbered title to the County’s Juvenile and Family Court Facility (2) acquire ownership of certain improvements to the Juvenile and Family Court Facility and (3) pay certain costs related to the issuance of the Series C-68 Bonds.

On September 7, 2011 the County issued General Obligation Bonds, Series C-67 in the amount of $39,510,000. The proceeds of the Series C-67 Bonds were used to: (1) fund various projects of the County’s Capital Budget (2) provide capitalized interest on the Bonds and (3) pay certain costs related to the issuance of Series C-67 Bonds.

On March 1, 2011, the County issued General Obligation Current Refunding Bonds, Series C-66 in the amount of $13,895,000. The proceeds of the Series C-66 Bonds were used to: (1) refund the County’s General Obligation Bonds, Series C-53 and (2) pay certain costs related to the issuance of the Series C-66 Bonds.

As noted above, in 2011 the County General Obligation Bonds, Series C-53 was refunded thereby decreasing the County’s total debt service payments over the next 10 years by approximately $1,285,283 representing an economic gain (the difference between the present valve of the old and new debt service payments) to the County of $1,003,949.

On March 1, 2011 the County issued General Obligation Bonds, Series C-65 in the amount of $76,155,000. The proceeds of the Series C-65 Bonds were used to: (1) fund various projects of the County’s Capital Budget (2) provide capitalized interest on the Bonds and (3) pay certain costs related to the issuance of Series C-65 Bonds.

On November 30, 2010 the County issued Taxable General Obligation Energy Conservation Bonds, Series C-64 in the amount of $9,385,000. The proceeds of the Series C-64 Bonds were used to fund various energy conservation projects of the County’s Capital Budget.

On August 12, 2009 the County issued General Obligation Bonds, Series C-62 in the amount of $80,000,000. The proceeds of the Series C-62 Bonds were used to fund various projects of the County’s Capital Budget.

On June 19, 2008 the County issued General Obligation Bonds, Series C-61 in the amount of $49,220,000. The proceeds of the Series C-61 Bonds were used to: (1) finance various capital projects of the County’s capital improvement program (2) refund, on a current refunding basis, a portion of the County’s outstanding Adjustable Rate Demand General Obligation Bond, Series C-58A and (3) provide capitalized interest on the Bonds. 2015 County of Allegheny Comprehensive Annual Financial Report 141

Basic Financial Statements

On March 14, 2007, the County issued General Obligation Notes, Series C-60 in the amount of $56,625,000. The proceeds of the Series C-60 Notes were used to fund various projects of the County’s Capital Budget.

On March 14, 2007, the County issued General Obligation Refunding Notes, Series C-59A (Fixed Rate), in the amount of $28,730,000 and General Obligation Refunding Notes, Series C-59B (Index Rate) in the amount of $43,945,000, totaling an aggregate principal amount of $72,675,000. The proceeds of the Series C-59 A & B Notes were to: (1) refund certain of the Allegheny County Industrial Development Authority series 2002A and 2002B Bonds; and (2) refund the County’s General Obligation Bond Series C-45. To achieve a synthetic fixed rate for the C-59B interest payments, the County entered into an interest rate swap contract. See Note 14, Derivative Financial Instruments, for more detail on this contract.

As noted above, in 2007 the Allegheny County Industrial Development Authority Series 2002A and 2002B Bonds were partially refunded and the County’s General Obligation Bonds Series C-45 were refunded, thereby decreasing the County’s total debt service payments over the next 23 years by approximately $2,357,648 representing an economic gain (the difference between the present value of the old and new debt service payments) to the County of $2,825,825. The deferred refunding loss on this issue was $1,431,781.

On September 29, 2005, pursuant to a supporting agreement with the Sports and Exhibition Authority of Pittsburgh and Allegheny County, the County agreed along with City of Pittsburgh to each pay one-half of the principal and interest on the Sports and Exhibition Authority Auditorium Bonds, Refunding Series A 2005, in the amount of $8,345,000 (County’s share $4,172,500). This issue was used to: (1) refund the Sports and Exhibition Authority Auditorium Bonds Series 1999; (2) pay interest on outstanding indebtedness of the Authority; and (3) to fund certain expenses of the Convention Center. The County and the City shared equally the debt service payments for the Series 1999 Bonds.

As noted above, in 2005 the Sports and Exhibition Authority Bonds Series 1999 were fully refunded, thereby decreasing the County’s share of total debt service payments over the next 14 years by approximately $118,169, representing an economic loss (difference between present value of the old and new debt service payments) to the County of $5,776.

On August 15, 2003, the County issued General Obligation Refunding Bonds, Series C-56, in the amount of $104,435,000. Of this total $338,949 is the obligation of the ACAA. The proceeds of the Series C-56 Bonds were used to: (1) refund certain of the County’s outstanding Institution District Series 14 and General Obligation Bonds Series C-40; and (2) defease certain of the County’s General Obligation Bonds, Series C-42, C-44 and C-46.

As noted above, in 2003 the County’s Institution District Series 14 and General Obligation Bonds Series C-40 were refunded, General Obligation Bonds Series C-42, C-44 and C-46 were partially refunded, thereby decreasing the County’s total debt service payments over the next 13 years by approximately $7,614,317 representing an economic gain (the difference between the present value of the old and new debt service payments) to the County of $7,134,829.

During August the Allegheny County Adjustable Rate Demand General Obligation Bonds, Series C-50 was restructured. Principal amounts for the years 2015 to 2020 totaling $18,675,000 were combined with principal amounts maturing from 2020 through 2023. The term of the debt and the total outstanding principal were unchanged. 142 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

In prior years the County has defeased various general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the accompanying government-wide financial statements. At December 31, 2015, no bonds and other long-term debt obligations outstanding are considered defeased.

The annual debt service requirements to amortize all general obligation bonds outstanding as of December 31, 2015, are as follows:

Year Ending December 31 Principal Interest Total

2016 $ 33,820,000 36,766,463 70,586,463 2017 35,062,500 35,397,405 70,459,905 2018 36,552,500 33,896,459 70,448,959 2019 38,180,000 32,144,305 70,324,305 2020 36,795,000 30,327,425 67,122,425 2021-2025 190,710,000 130,525,123 321,235,123 2026-2030 231,320,000 87,084,033 318,404,033 2031-2035 167,185,000 35,442,725 202,627,725 2036-2040 49,945,000 3,776,250 53,721,250 819,570,000 425,360,188 1,244,930,188

Premium on issues 58,888,024 - 58,888,024 Amortization (20,742,362) - (20,742,362) Discount on issue (883,464) - (883,464) Amortization 316,731 - 316,731

$ 857,148,929 425,360,188 1,282,509,117

Capital Leases – In 2006 the County entered into a capital lease agreement to renovate a building for the Medical Examiner’s laboratory and office space. The terms of the lease arrangement are 20 years and provide an option for the County to purchase the building at the end of the lease term in 2026. The present value amount of the capital lease obligation was $7,678,839. The lease obligation is at a 4.0% interest rate, and is payable in monthly installments of $34,174 through June 2026. Also included in the obligation amount is a bargain purchase option of $4,125,000, payable at the end of the lease. The balance due as of December 31, 2015 is $5,342,025.

Future minimum payments required under the capital lease obligations are as follows:

Year Ending December 31 Principal Interest Total 2016 $ 271,717 138,376 410,093 2017 282,585 127,508 410,093 2018 293,888 116,205 410,093 2019 305,644 104,449 410,093 2020 317,869 92,224 410,093 2021-2025 1,790,553 259,912 2,050,465 2026 2,079,769 2,250,278 4,330,047 $ 5,342,025 3,088,952 8,430,977 2015 County of Allegheny Comprehensive Annual Financial Report 143

Basic Financial Statements

Operating Lease - The County has entered into a operating lease for the Department of Human services office space. Rental expenditures for this operating lease were approximately $2,053,750 for the year ended December 31, 2015.

The following minimum rental payments are required under the lease for annual periods beyond December 31, 2015:

Year Ending December 31 Lease 2016 $ 2,116,025 2017 2,116,025 2018 2,116,025 2019 2,178,300 2020 2,178,300 2021-2025 11,224,075 2026-2029 9,388,950 $ 31,317,700

The County has entered into an operating lease with Noresco, LLC and PNC Equipment Finance, LLC to lease energy savings equipment. Rental expenditures for this operating lease were approximately $1,152,365 for the year ended December 31, 2015.

The following minimum rental payments are required under the lease for annual periods beyond December 31, 2015:

Year Ending December 31 Lease 2016 $ 1,230,347 2017 1,286,804 2018 1,345,898 2019 1,407,753 2020 1,472,501 2021-2025 8,694,913 2026-2028 3,722,426 $ 19,160,642

The following is a summary of changes in all general obligation/notes/leases long-term liabilities for the year ended December 31, 2015:

Balance at Balance at Current January 1, 2015 Increase Decrease December 31, 2015 Portion

General Obligation Bonds $ 904,042,704 22,135 46,915,910 857,148,929 33,820,000 Capital Leases 5,603,291 - 261,266 5,342,025 271,717 GO Bonds/notes/leases $ 909,645,995 22,135 47,177,176 862,490,954 34,091,717 144 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Workers' compensation and claims as well as compensated absences for sick benefits are paid from the General Fund. The following is a summary of changes in all other long-term liabilities for the year ended December 31, 2015:

Balance at Balance at Current January 1, 2015 Increase Decrease December 31, 2015 Portion

Accrued sick benefits (Note 1G) $ 8,757,316 1,061,652 (594,894) 9,224,074 558,369 Accrued workers' compensation 7,783,011 2,303,394 (3,408,950) 6,677,455 3,479,671

Total $ 16,540,327 3,365,046 (4,003,844) 15,901,529 4,038,040

At December 31, 2015, the County had no arbitrage liability included in the General Fund's accrued liability balance. 2015 County of Allegheny Comprehensive Annual Financial Report 145

Basic Financial Statements

Component Units - Long-Term Debt

Allegheny County Airport Authority

General obligation and revenue bonds payable at December 31, 2015, are as follows:

Amount Outstanding Airport Revenue Bonds: Subordinate Lien Series A 2001, interest rate of 5.50%, due through 2017 $ 1,910,000 Airport Revenue Refunding Bonds: Series 2012 A-1 (AMT), interest rate of 4.0% to 5.0%, due through 2028 21,130,000 Series 2012 A-2 (AMT), interest rate of 2.05%, due through 2020 8,455,000 Series 2012 B (non-AMT), interest rate of 4.0%, due through 2032 13,900,000 Series 2010A, interest rate of 3.0% to 5.00%, due through 2018 8,120,000 Series 2007B, interest rate of 5.00%, due through 2019 96,625,000 Series 2002B, interest rate of 4.50% to 5.00%, due through 2023 37,155,000 Series B 2001, interest rate of 5.00%, due through 2022 39,955,000

227,250,000

Commonwealth of Pa Department of Transportation Infrastructure Bank Aviation Loan, interest rate 4.125%, due through 2017 215,430 Hangar loan, variable interest rate, due through 2018 780,000 Industry Drive loan, interest rate of 4.7%, due through 2028 1,010,120 Business in our sites program loan, interest rate of 3%, due through 2027 1,606,572 Ewing Road loan, interest rate of 4%, due through 2021 625,020 Energy savings equipment lease purchase loan, interest rate of 3.101%, due through 2018 3,225,137

7,462,279

Total debt 234,712,279 Plus: net unamortized premium 2,702,019

237,414,298

Less: current maturities (55,504,167)

Total long term debt $ 181,910,131 146 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

On July 1, 2001, ACAA issued Subordinate Lien Airport Revenue Bonds, Series 2001A (PIA Energy System Project) in the amount of $2,445,000. The proceeds were used to acquire the equipment constituting the Energy Service Facility (the Facility) located at PIA. The Bonds are subordinated and limited obligations of ACAA, secured by a pledge of net revenues that is subordinate to the pledge of net revenues made to support the ACAA's other outstanding revenue bond debt.

On October 1, 2001, ACAA issued Airport Revenue Refunding Bonds, Series 2001B in the amount of $52,575,000. The proceeds of the Bonds were used to pay a portion of the costs of refunding the 1999 Revenue Notes, Series A outstanding under the Trust Indenture dated December 1, 1999 by and between ACAA and National City Bank of Pennsylvania, as trustee, and the concomitant refunding of the 1992 Revenue Bonds, Series A and B, outstanding under the Certain Resolution of the County of Allegheny dated July 22, 1988, as supplemented and amended.

On October 3, 2007, ACAA issued Airport Revenue Bonds, Refunding Series B of 2007 in the amount of $100,375,000. The proceeds of the Bonds together with investment income were used to refund the County of Allegheny Airport Revenue Bonds Series 1997A-1 (AMT) ($54,130,000) and 1997 Series B ($103,045,000).

On September 15, 2010 the ACAA issued Airport Revenue Bonds, Refunding Series A of 2010, in the amount of $30,310,000 (the 2010 Refunding Bonds). The proceeds of the 2010 Refunding Bonds together with investment income were used to refund the County of Allegheny Airport Revenue Bonds Series 1999 (the Refunded Bonds).

On May 8, 2012, ACAA issued Airport Revenue bonds: Series 2012 A-1 (AMT), 2012 A-2 (AMT), and Series 2012B (Non-AMT) (the 2012 Bonds) in the amounts of $21,130,000, $14,365,000 and $13,900,000, respectively. The proceeds of the 2012 bonds were used to pay a portion of the costs of certain projects under the ACAA's long term capital improvement plan.

Industry Drive Loan - On March 26, 2003, ACAA entered into an agreement with the RAAC in which RAAC provides funding for the construction of an extension of the existing public road known as Industry Drive to permit further development of the undeveloped land lying mostly north of the Industry Drive Extension right-of–way between the right-of-way and the Pennsylvania Route 60 by-pass. RAAC has agreed to lend $4,000,000 at an annual interest rate of 4.7% to ACAA for this project and ACAA has agreed to contribute $2,800,000. The repayment terms are $9,652 per month on a twenty year term expiring in 2027.

Commonwealth of Pennsylvania Department of Transportation Loan -- On September 12, 2007, ACAA entered into a loan agreement with the Commonwealth of Pennsylvania, Department of Transportation, to provide a portion of funding necessary to complete ACAA’s South Ramp Taxi lanes Relocation and Hangar Redevelopment Project at the Allegheny County Airport. The estimated project cost is $4,100,000 of which the Department of Transportation agreed to loan ACAA $1,000,000 at an annual interest rate of 4.125%. The term of the loan is 120 months and requires monthly payments of $10,184. The remaining project costs are to be funded through ACAA funds, FAA grants, Pennsylvania Department of Transportation grants and an additional $1,300,000 10-year term loan. The ACAA has the ability to prepay this loan, in $1,000 increments, without penalty.

Commonwealth Financing Authority Business in Our Sites Program (BIOS) -- On January 18, 2007, the ACAA entered into a loan agreement with the Commonwealth Finance Authority to provide a $2,000,000 loan for the purpose of completing the Cherrington Parkway Extension. Terms of this loan are 20 years with a 3% interest rate. Per the agreement, all principal and interest payments were initially deferred; however, monthly payments began in August 2012. 2015 County of Allegheny Comprehensive Annual Financial Report 147

Basic Financial Statements

Allegheny County Airport (AGC) Hangar Loan -- On January 11, 2008, the ACAA entered into a loan agreement with Citizens Bank to a provide $1,300,000 loan for the purpose of constructing 18 new T-hangars and certain taxi lane improvements. Terms of this loan are 40 equal consecutive quarterly payments of $16,250, which commenced in April 2008, and one final payment of all outstanding balances of principal and interest accrued. The ACAA does not have the option to refinance the loan at maturity in 2018. Interest rate is variable and is based on the one-month LIBOR +1.5%. The LIBOR interest rate at December 31, 2015 is 0.43%.

Ewing Road Loan -- On March 13, 2009, ACAA entered into a loan agreement with RAAC to provide a $1,003,000 loan for the construction of roadway improvements at the intersection of Ewing Road and Hookstown Grade Road and Business Route I-376 to promote the development of US Airways Operations Control Center and the further development of the Cherrington office complex, both located in Moon Township. While the loan document was executed in 2009, the proceeds were not distributed and the repayment schedule did not begin until September 2011. The term of the loan is 10 years and the interest rate is 4%.

Energy Savings Equipment Lease Purchase Agreement -- On July 12, 2011, ACAA entered into a lease purchase agreement with Grant Capital Management to provide a $7 million loan for energy savings projects at PIA. Grant Capital Management assigned this lease purchase agreement to Capital One Public Funding on July 14, 2011. Deutsche Bank National Trust Company was named as the servicing agent on behalf of Capital One. Terms of the loan include an interest rate of 3.101% with repayment schedule beginning January 1, 2012 through December 1, 2018. Capital One Public Funding has a secured interest in the equipment purchased under this agreement with no revenues pledged as security. The loan is collateralized by the unexpended loan proceeds and capital assets with a net book value of approximately $9,503,000, as of December 31, 2015.

The annual debt service requirements of long-term debt for the years subsequent to December 31, 2015 assuming the current interest rates remain the same for the term of the debt are as follows:

Year Ended December 31 Principal* Interest Total

2016 $ 55,504,167 11,144,671 66,648,838 2017 53,751,960 8,446,240 62,198,200 2018 52,242,649 5,889,092 58,131,741 2019 12,176,152 3,391,918 15,568,070 2020 12,668,637 2,851,244 15,519,881 2021-2025 28,134,979 7,179,526 35,314,505 2026-2030 16,573,735 2,803,855 19,377,590 2031-2032 3,660,000 146,400 3,806,400

$ 234,712,279 41,852,946 276,565,225

* Principal includes the Bonds due January 1 of the succeeding years, as the ACAA has paid January 1, 2016, in December 2015 and plans to continue that practice. 148 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

The following is a summary of changes in long-term liabilities for ACAA for the year ended December 31, 2015:

Balance at Balance at Current January 1, 2015 Additions Reductions December 31, 2015 Portion Bonds payable: Revenue bonds payable $ 282,405,082 - 52,453,063 229,952,019 53,990,000 Industry Drive Loan 1,071,330 - 61,210 1,010,120 70,119 PA Department of Transportation loan 317,197 - 101,767 215,430 115,489 Business in Our Sites Program Loan 1,725,920 - 119,348 1,606,572 122,977 Hangar Loan 845,000 - 65,000 780,000 65,000 Ewing Road loan 719,812 - 94,792 625,020 98,653 Capital One loan 4,235,292 - 1,010,155 3,225,137 1,041,929 Subtotal 291,319,633 - 53,905,335 237,414,298 55,504,167 Net pension liability 40,088,306 11,292,783 2,465,660 48,915,429 Other long-term liability 144,816 - 11,020 133,796 Unearned revenue 36,189,064 3,134,172 10,774,773 28,548,463 15,399,678 Accrued post employment benefits - -

Total $ 367,741,819 14,426,955 67,156,788 315,011,986

ACAA has two purchase commitments: (1) Natural Gas -- ACAA has entered into a contract with a natural gas provider for the purchase of approximately 246,000 dth of natural gas each year. A Blend and Extend Agreement was executed in December 2011 reducing the rate to $.0373 per dth beginning January 1, 2012 through December 31, 2017. ACAA subsequently executed a Blend and Extend Agreement in February 2014 that reduced the rate to $.20 per dth effective March 1, 2014 thought December 31, 2018. ACAA is responsible for the nominations under the contract and can adjust the monthly nominations of the natural gas purchases up to 20% each year. ACAA anticipates using the full amount of the commitment, and (2) Electricity -- ACAA has entered into a contract with an electricity provider for the purchase of electricity for specific meters at rate of $0.0568/kWh through December 26, 2017. ACAA subsequently executed another contract for the period December 29, 2015 through December 31, 2015 that further reduced rates to $0.0539/kWh. The commitment includes all of ACAA forecasted electricity usage.

Pledge of Revenues - On November 1, 2005, ACAA entered into an agreement with RAAC in which RAAC provides TIF for the development and financing of the Clinton Industrial Park Project that includes certain substantial public on-site and off-site improvements. RAAC has issued a series of TIF Notes in an aggregate principal of $5,000,000 to fund public improvements relating to Phase I of the Clinton Industrial Park Project with another $500,000 unissued notes.

On May 1, 2008, ACAA entered into an agreement with RAAC for a second TIF for the development of the Northfield site located on the north side of the airfield. The TIF proceeds will fund certain on-site and off-site public infrastructure and improvements. RAAC issued a TIF note in the amount of $5,000,000 to fund the improvements related to the Northfield site. The source of repayment of the TIF is the tax revenues and lease rental income generated by the project. Repayment terms are through April 1, 2028, at 6.0% interest rate. 2015 County of Allegheny Comprehensive Annual Financial Report 149

Basic Financial Statements

On December 15, 2015, the ACAA entered into a agreements with RAAC for the third TIF for the continued development of Clinton Industrial Park Project. RAAC issued a TIF not in the amount of $5,700,000 to fund the development of certain public infrastructure and improvements. Repayment terms are through December 1, 2025 at 5.0% interest rate.

The TIF Notes are limited obligation of RAAC and are generally payable from the positive tax increments realized from the associated tax increment districts and 75% of the gross revenues received by ACAA from leasing the land in the Clinton Industrial Park and Northfield Site Projects. As additional security and credit enhancement, the Commonwealth Financing Authority has agreed to guarantee payment of the Notes. While ACAA has pledged to assign certain of its revenues to the trustee for the Notes, ACAA is not a party to the respective trust indentures and is under no obligation to repay the Notes; therefore, the Notes are not reflected as liabilities of ACAA in the financial statements.

Port Authority of Allegheny County

Long-term obligations of PAT consist of the following at June 30, 2015:

Special Revenue Transportation Bonds Unpaid principal $ 220,280,951 Unamortized bond discount 7,859,359 Total long-term debt 228,140,310 Less current maturities: Bonds 10,820,000 Master Financing Agreement 4,412,343

$ 212,907,967

On March 1, 2011, PAT issued $252,845,000 of the Special Revenue Transportation Bonds, Refunding Series of 2011 (the 2011 bonds). The proceeds from the sale of the 2011 bonds together with the amount on deposit in the 2001 debt service reserve fund were used to provide funds required for 1) refunding the 2001 bonds and 2) terminating the Swap Agreement.

Interest on the 2011 Bonds is payable semiannually on each March 1 and September 1, commencing September 1, 2011. Interest rates range from 2% to 5.25% throughout the term of the 2011 Bonds. The 2011 Bonds were issued at a premium of $10.3 million, which is being amortized over the life of the 2011 Bonds.

The 2011 Bonds are subject to optional redemption prior to maturity by PAT on any date on or after March 1, 2021 and also include $59.4 million of term bonds due March 1, 2029 that are subject to mandatory redemption prior to maturity beginning March 1, 2027.

The 2011 Bonds are secured by funds distributed to PAT by the State pursuant to Section 1310 of the Public Transportation Assistance Law, specifically including all monies distributed from PTAF.

During fiscal year 2003, PAT entered into a Master Financing Agreement (Agreement) for the purchase of capital assets, primarily buses. PAT had incurred $131,631,500 of debt related to this financing. This debt is secured by an equity interest in the purchased assets. 150 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Interest on the debt is payable semiannually on each March 1 and September 1, commencing September 1, 2003. Interest rates are set at the time of the draw down, most recent draws outstanding bear interest at 5.25%. The debt was issued at a premium of $6 million, which is being amortized over the term of the Agreement. The debt matures in 2017.

The following is a summary of PAT’s changes in bond transactions for the year ended June 30, 2015:

Amortization/ Balance at Payments and Balance at June 30, 2014 Issuance Retirements June 30, 2015

Series of 2011 Bonds $ 224,025,000 - 10,305,000 213,720,000 Master Financing Agreement 13,753,811 - 7,192,860 6,560,951 237,778,811 - 17,497,860 220,280,951

Unamortized net bond premium 8,490,486 - 631,127 7,859,359

Net outstanding $ 246,269,297 - 18,128,987 228,140,310

Less current amounts: Series of 2011 Bonds 10,820,000 Master Financing Agreement 4,412,343

Total current portion of long-term debt 15,232,343

Total long term debt - net $ 212,907,967

The annual debt service requirements related to the bonds are as follows:

Year Ending June 30 Principal Interest Total

2016 $ 15,232,343 11,544,294 26,776,637 2017 13,508,608 10,789,094 24,297,702 2018 11,925,000 10,161,098 22,086,098 2019 12,520,000 9,566,538 22,086,538 2020 13,140,000 8,943,088 22,083,088 2021-2025 76,780,000 33,645,563 110,425,563 2026-2029 77,175,000 11,157,950 88,332,950

Total $ 220,280,951 95,807,625 316,088,576

Restricted assets include approximately $11 million of cash invested in a debt service reserve fund restricted for debt service on the above bonds. 2015 County of Allegheny Comprehensive Annual Financial Report 151

Basic Financial Statements

Community College of Allegheny County

Long-term obligations of CCAC consist of the following at June 30, 2015:

Installment Final Maturity Long-Term Interest Rate Due Date Obligation

Bonds payable - SPSBA:

3.3 - 4.4% 2008 June 15 2027 $ 10,510,000 2.0 - 3.7% 2011 July 15 2025 3,750,000 2.0 - 4.0% 2011 Series A July 15 2025 13,590,000 2.0 - 5.0% 2012 July 15 2034 39,165,000 1.07 - 4.0% 2015 Nov 15 2035 4,000,000 Net Premium 2,155,805 Total bonds payable 73,170,805

Loans payable:

2.0%, $20,332 paid monthly 2016 235,644 Total bonds payable 235,644

Capitalized lease obligations:

1.57%, $22,035 paid monthly 2017 520,082 1.54%, $35,693 paid monthly 20198 1,524,155 Total capitalized leases 2,044,237

Total obligations 75,450,686 Less: current portion 3,972,371 Total long-term debt $ 71,478,315

Series of 2008 State Public School Building Authority (SPSBA) Bonds -- In June 2008, CCAC, through the SPSBA, accomplished a new $22,040,000 bond issue (Series of 2008). Bond proceeds pertaining to the construction of a Science Center Facility on Allegheny Campus totaled $15,950,000 and the remaining $6,090,000 was for funding renovation projects to upgrade infrastructure at all four campuses. The final payments for the bonds are scheduled for June 15, 2027. Principal payments on the bonds are due annually in June, while interest is due semi-annually on June and December 15th.

Series of 2011 SPSBA Bonds Refinancing Debt Service Bonds -- In August 2011, CCAC, through the SPSBA, refunded the Series of 2005 Bonds. The $4,445,000 issue became the Series of 2011 Bonds. The issuance total $4,505,112 and included the $4,330,000 retirement of the 2005 bonds. The refunding resulted in $182,226 in saving to be recognized. Principal payments on the bonds are due annually in July, while interest is due semiannually on January and July 15. Interest rates for the Series of 2011 Bonds range from 2% to 3.8%. The final payment on the bonds is scheduled for July 15, 2025. 152 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Series A of 2011 SPSBA Bonds Refinancing Debt Service Bonds -- In September 2011, CCAC, through the SPSBA, refunded the second Series of 2004 Bonds. The $15,800,000 issue became the Series A of 2011 Bonds. The issuance total $16,382,827 and included the $15,515,000 retirement of the second Series 2004 bonds. The refunding resulted in $936,014 in saving to be recognized. Principal payments on the bonds are due annually in July, while interest is due semiannually on January and July 15. Interest rates for the Series A of 2011 Bonds range from 2% to 4%. The final payment on the bonds is scheduled for July 15, 2025.

Series of 2012 SPSBA Bonds -- In June 2012, CCAC, through the SPSBA, accomplished a new $40,000,000 bond issue (Series of 2012). Bond proceeds to finance renovation and improvement projects and ITS infrastructure improvements. The final payment for the bonds is scheduled for July 15, 2034. Principal payments on the bonds are due annually in July, while interest is due semiannually in January and July on the 15th.

Series of 2015 SPSBA Bonds -- In June 2015, CCAC, through the SPSBA, accomplished a new $4,000,000 bond issue (Series of 2015). Bond proceeds to finance the acquisition and installation of energy-saving facilities, equipment, retro-commissioning and other energy related upgrades to South Campus. The final payment for the bonds is scheduled for May 15, 2035. Principal payments on the bonds are due annually in May, while interest is due semiannually in November and May on the 15th.

Loan Payable -- In 2013, CCAC entered into a loan for microcomputer systems, laptops and workstations in the amount of $946,006. The loan is at a 2.0% interest rate, payable in monthly installments of $40,663 through June 30, 2013 and then monthly installments of $20,332 though June 15, 2016. The balance as of June 30, 2015 is $235,644.

Capital Leases -- In 2014, CCAC entered into a capitalized lease obligation for desktops, monitors, laptops and tablets in the amount of $1,031,150. The lease obligation is at 1.57%, and is payable in monthly installments of $22,025 through June 2017. The balance due as of June 30, 2015 is $520,082.

In 2015, CCAC entered into a capitalized lease obligation for desktops, monitors, laptops and tablets in the amount of $1,660,537. The lease obligation is at 1.54%, and is payable in monthly installments of $35,693 through February 2019. The balance due as of June 30, 2015 is $1,524,155.

The capitalized equipment leases are collateralized by the equipment.

State Appropriation Audits - Effective with the 2006 fiscal year, CCAC is no longer subject to audit by the State. All audits have been completed and resolved with the State. The Pennsylvania Department of Education (PDE) and CCAC had reached negotiated settlement. In fiscal 2005, CCAC recognized a liability with a corresponding reduction of revenue for fiscal year 2003 audit findings in the amount of $1,145,088. Final settlement for this fiscal year was reached with the State during 2010-2011. The State waived $553,005 of the original audit finding with final amount of $592,083 due the State. Thirty quarterly payments of $19,736 started in fiscal year 2010-11 with the second, third and fourth quarterly payment. The remaining liability at June 30, 2015 is $217,096.

Operating Leases - CCAC leases various other facilities throughout the County that are separate from the main campuses and involve commitments that extend into future years. The facilities are used for educational purposes only. The following schedule of future minimum payments lists these obligations as “operating leases.” 2015 County of Allegheny Comprehensive Annual Financial Report 153

Basic Financial Statements

Future minimum payments required under long-term debt and lease obligations existing at June 30, 2015, are as follows:

Year Ending Capitalized Operating June 30 SPSBA Bonds Loans Leases Leases Total

2016 $ 5,597,853 238,159 692,622 260,015 6,788,649 2017 5,598,751 - 692,622 192,650 6,484,023 2018 5,603,019 - 428,318 179,862 6,211,199 2019 5,611,034 - 285,545 180,860 6,077,439 2020 5,616,594 - - 181,859 5,798,453 2021-2025 28,054,361 - - 28,448 28,082,809 2026-2030 22,542,536 - - - 22,542,536 2031-2035 20,462,713 - - - 20,462,713 Total 99,086,861 238,159 2,099,107 1,023,694 102,447,821

Less: Portion representing interest 28,071,861 2,515 54,870 - 28,129,246 $ 71,015,000 235,644 2,044,237 1,023,694 74,318,575

Long-term liability changes are summarized below for the year ended June 30, 2015:

Beginning Ending Balance at Balance at Current July 1, 2014 Additions Reductions June 30, 2015 Portion

Long-term obligations $ 73,521,256 5,660,534 3,731,104 75,450,686 3,972,371

Advances from Federal sponsors 33,823 - 33,823 -

Retirement Incentive plan 6,953,538 - 3,337,772 3,615,766 1,205,256

Compensated absences 2,980,926 - 7,708 2,973,218 2,973,218

Due to the Commonwealth of PA 518,499 - 98,650 419,849 281,697

Net pension liability - 4,373,191 331,197 4,041,994 -

Total long-term liabilities $ 84,008,042 10,033,725 7,540,254 86,501,513 154 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

The composition of the compensated absences liability was as follows as of June 30, 2015:

Accrued vacation leave $ 1,836,530 Banked credits 1,136,688

$ 2,973,218

Redevelopment Authority of Allegheny County

The annual debt service requirements related to bonds and mortgage are as follows:

Maturity Principal Interest Total

2016 $ 2,318,174 988,420 3,306,594 2017 2,493,738 817,838 3,311,576 2018 2,681,077 633,820 3,314,897 2019 2,886,345 435,420 3,321,765 2020 645,734 221,269 867,003 2021-2025 5,097,258 547,183 5,644,441

Total $ 16,122,326 3,643,950 19,766,276

Long-term debt was comprised of bonds payable which were issued by RAAC as Special Tax Development Bonds, Taxable Series of 1995 for $25 million and Series 1999 for $25 million.

The Special Tax Development Bonds constitute limited obligations of RAAC payable solely from a portion of the Allegheny Regional Asset District tax (the RAD tax) paid to RAAC or its trustee and certain funds held under a trust indenture and the earnings thereon. The RAD tax consists of a portion of the County's allocation of the 1% sales, use and hotel excise tax. The County has pledged the assigned receipts to RAAC, which has in turn pledged and assigned the same to the trustee to pay principal of and interest on the Special Tax Development Bonds. The assigned receipts and the bond insurance are the sole security for repayment of the Special Tax Development Bonds.

On September 1, 2005, RAAC issued $18,655,000 of Special Tax Development Refunding Bonds (2005 Bonds). The proceeds of the 2005 Bonds were used to provide funds for the current refunding of the 1995 Bond Series.

The 2005 bonds are not subject to optional redemption. 2015 County of Allegheny Comprehensive Annual Financial Report 155

Basic Financial Statements

The Series 1999 and 2005 Bonds are issued by a municipal bond insurance policy, Assured Guaranty Municipal Corporation. As of December 31, 2015, Standard & Poor's credit rating of Assured Guaranty Municipal Corporation was AA, with a credit watch of stable.

During 2007, RAAC assumed a mortgage in relation to the purchase of a building. The original mortgage was executed in 1999 in the amount of $5,000,000. As of December 31, 2015, the interest rate is 8.31% and the outstanding principal balance is $2,959,326.

The following is a summary of changes in long-term debt for RAAC during 2015:

Beginning Ending Balance at Balance at Current January 1, 2015 Additions Reductions December 31, 2015 Portion

G. O. Bonds $ 12,250,000 - 3,995,000 8,255,000 1,835,000

Mortgage Payable 3,179,656 - 220,330 2,959,326 238,174

Section 108 Loan 5,144,000 - 236,000 4,908,000 245,000

Total long-term liabilities $ 20,573,656 - 4,451,330 16,122,326 2,318,174

Current portion (2,318,174)

Long-term debt at year-end $ 13,804,152

As of December 31, 2015, RAAC had outstanding commitments of approximately $4 million related to loans which have not yet been fully drawn upon. This amount includes commitments to related parties as further discussed in Note 13.

RAAC issued Tax Increment Financing Bonds (TIF Bonds) to provide funds to finance infrastructure improvements within Allegheny County. The outstanding balance of the TIF Bonds at December 31, 2015 was approximately $60.2 million. The TIF Bonds are a limited obligation of RAAC payable solely from the tax increment revenues from the taxing bodies within the TIF District. RAAC is not obligated to pay the principal of, premium, interest, or other costs associated with the TIF Bonds. Accordingly, RAAC is substantively a conduit facilitator and the TIF Bonds are not included in RAAC's financial statements.

RAAC and the County entered into an agreement in fiscal year 2005 with the US Department of Housing and Urban Development (HUD) to receive a Section 108 loan for $6 million. These funds were to be made available for loans to RIDC for specific economic development projects. As of December 31, 2015, $4,908,000 of loans remain outstanding.

RIDC is currently required to make interest payments on the outstanding loan balance at a rate of 3 month LIBOR plus 50 basis points. As of year end, 3 month LIBOR was .61%. RAAC is permitted to retain 30 basis points as income along with the $60,000 origination fee paid by the borrower. RIDC began making principal payments in 2012 to correspond with RAAC’s obligation to HUD. The required principal payments schedule was established by HUD and includes a final balloon payment of $2,314,000 due on August 1, 2025. 156 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Along with the Section 108 loan, RAAC also received a $2 million Brownfield Economic Development Improvement (BEDI) Grant from HUD. The proceeds of the grant are to be drawn down by RAAC and granted to the same RIDC as with the Section 108 loan funds. Grant funds of $538,249 were retained by RAAC to reimburse the General Fund for debt service payments made before RIDC began making payments. Grant funds are to be disbursed in a ratio not less than $1 of grant funds for every $3 of loan funds disbursed.

Allegheny County Industrial Development Authority

ACIDA issues tax-exempt and taxable limited-obligation debt through various lending and financial institutions to provide below-market interest rate financing to private-sector entities for eligible projects. The debt is secured by the property financed and is payable solely from the payments received on the underlying loans. Neither ACIDA, the Commonwealth of Pennsylvania, nor any political subdivision thereof, is obligated in any manner for the repayment of the debt. Accordingly, the debt is not reported as a liability in the financial statements.

The principal amount outstanding for the debt issued as of December 31, 2015, is approximately $582.0 million.

Allegheny HealthChoices, Inc.

AHCI has entered into an operating lease for program facility space and office equipment. Rental expenses for this operating lease were approximately $239,000 for the year ended December 31, 2015.

The following minimum rental payments are required under the lease for annual periods beyond December 31, 2015:

Year Ending December 31 Total

2016 $ 252,954 2017 258,472 2018 263,824 2019 137,384 2020 6,410

$ 919,044 2015 County of Allegheny Comprehensive Annual Financial Report 157

Basic Financial Statements

(9) Interfund Receivables, Payables and Transfers

Interfund receivables, payables and transfers at December 31, 2015 were comprised of the following amounts on an individual fund basis:

Due from Due to Transfers Fund Other Funds Other Funds In Out Major: General $ 18,300,896 22,306,570 1,687,644 (16,468,017) County Grants 1,328,493 4,818,271 12,788,669 (8,883,687) Human Service Grants 3,410,718 7,030,606 5,815,317 - Capital Projects 17,516,066 6,449,895 7,450,000 (507,056) Non-Major: Debt Service 178,365 136,839 15,315,448 - Transportation - - - (17,198,318) Other: Internal Service 110,286 102,643 - -

$ 40,844,824 40,844,824 43,057,078 (43,057,078)

Transfers and interfund receivables are eliminated in the government-wide statement of activities.

Usually the majority of interfund receivable and payable balances represent adjustments to reimburse the General Fund for cash disbursements made on behalf of the other funds.

In 2015, $7.3 was transferred to Capital Projects to fund a portion of capital obligation due to PAT and $9.9 million was transferred to Debt Service to pay bond costs associated with PAT projects.

The General Fund Transfer Out represents transfers to cover deficits and County matches in the County Grant Funds ($6.5 million), $5.4 million to cover payments in the Debt Service fund and $44.9 million match for the Human Services Grant Fund.

The Grants Fund Transfer Out represents interfund interdepartmental contract payments to the General Fund ($1.2 million), Capital Projects of ($0.2 million) and the Human Services Grant Fund ($1.3 million). 158 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Component Unit – Transactions

Due from/to component units and due to/from primary government balances were:

Due from Due to Component Unit Primary Government

ACAA $ 1,259,053 1,259,053 AHCI 2,549,163 2,549,163 RAAC 265,983 265,983

Due to Due from Component Unit Primary Government

RAAC $ 1,184,489 1,184,489 AHCI 109,992 109,992 Parks Foundation 2,374 2,374

(10) Retirement Benefits

General Information about the Pension Plan

Plan Description. The County sponsors the Retirement System and the Retirement System Board (Board) administers the Retirement System. The Board consists of the following seven members: the County Executive, the County Controller, the County Treasurer, two members elected by the County employees and retirees, one member appointed by the County Executive, and one member appointed by County Council.

The Retirement System is a single-employer (includes ACAA's component unit employees), defined benefit, contributory retirement benefit plan covering substantially all employees of the County. Benefit and contribution provisions for the Retirement System are determined under the statutes enacted by the General Assembly of the Commonwealth of Pennsylvania. The Board pursuant to express statutory authority, has the right to increase the employee contributions in the event it is actuarially determined that a contribution increase is required in order for the Board to meet its funding requirements. Any increase in employee contributions imposes a statutory requirement upon the County to match the employee contributions. Also, the obligation of the Fund to pay retirement benefits is further secured by statutory obligation imposed upon the County to utilize its taxing authority to meet the Board's obligation to make monthly benefit payments to retirees.

Benefits Provided. Monthly benefit payments are determined for each individual according to the retirement option and the age and length of service at retirement. Additionally, the Board, at its discretion, can provide for cost of living allowances to retirees based on meeting certain actuarial funding levels as more fully described in the House Bill 869 of the General Assembly of the Commonwealth of Pennsylvania. Under normal retirement employees hired prior to February 21, 2014 (attainment of age 50 with 20 years of service for police and firefighters; age 55 with 20 years of service for deputy sheriffs, jail guards, and probation officers; age 60 with 20 years of service for non-uniformed employees), the retirement benefit is equal to 50% of the final average salary, plus 1% thereon for each full year of service between 20 and 40 years. Final average salary is the monthly average of the 24 highest months of compensation in the last 48 months of employment preceding retirement. 2015 County of Allegheny Comprehensive Annual Financial Report 159

Basic Financial Statements

Act 125 was passed in December, 2013 and applies to County employees hired or re-hired on or after February 21, 2014. It changed vesting from 8 to 10 years and the service requirement from 20 to 25 years. For the purpose of calculating final average salary, final average salary was changed from the highest 24 months out of the final 4 years to the highest 48 months out of the final 8 years and overtime compensation is limited to 10% of base pay.

Employees covered by benefit terms. At January 1, 2015, the Retirement System plan membership consisted of:

Inactive plan members or beneficiaries currently receiving benefits 4,555 Inactive plan members entitled to but yet but not yet receiving benefits 199 Active plan members 7,016 11,770

Contributions. Employees are required to contribute 9.0% of covered compensation in 2015. Employee contributions are matched equally by the County, as prescribed by the Second Class County Code of the Commonwealth of Pennsylvania. Employees with at least 24 months of service who terminate prior to satisfying the minimum service requirements for a retirement benefit are entitled to refunds of their contributions plus interest thereon, approximately 0.21% in 2015. Employees with less than 24 months of service who terminate prior to satisfying the minimum service requirements for a retirement benefit are entitled to refunds of their contributions only.

Historical employee contribution rates are as follows:

Years Rate

2015 9.0% 2014 8.5% 2013-2012 8.0% 2011 7.0% 2010-2003 6.0% 2002 5.0% 2000-2001 3.8% 1998-1999 6.0%

Net Pension Liability

Net Pension Liability. The County's net pension liability was measured as of December 31, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation date of January 1, 2015, rolled forward to December 31, 2015.

Actuarial Assumptions. The total pension liability in the January 1, 2015 actuarial valuation was determined, using the following actuarial assumptions, applied to all periods included in the measurement: 160 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Projected salary increases 5.75% for age <25 5.25% for age 25-29 4.25% for age 30-34 3.75% for age 35-39 3.25% for age >40

Investment rate of return 7.75% General inflation 2.75% Contribution rate 9.0% of salary Future employer and employee contribution rates were assumed to remain at the 2015 level of 9.0% of covered payroll.

Mortality rates were based on the RP-2000 Combined Healthy Annuitants Mortality Table (Base Year-2010), with blue-collar adjustments and adjustments for mortality improvements based on Scale AA and the RP-2000 Disabled Retirees Mortality Table, with no future mortality improvement.

The actuarial assumptions used in the December 31, 2015 valuation were based on the results of an actuarial valuation as of January 1, 2015 with update procedures used to roll forward the Total Pension Liability (TPL) to a measurement date of December 31, 2015. There is no recent experience study.

The long-term expected rate of return on the Pension Trust Fund investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the pension plan's target asset allocation as of December 31, 2015 are summarized in the following table:

Long-Term Expected Asset Class Target Allocation Real Rate of Return

U. S. Equity 16% 4.55% Non-U. S. Equity 19% 4.75% Private Equity 20% 7.10% Core Fixed Income 10% 1.65% High Yield 12% 3.45% Real Estate 10% 4.00% TIPS 5% 1.20% Commodities 8% 2.00%

Total 100%

Discount Rate. The discount rate used to measure the total pension liability was 7.75%. A projection of Plan Net Fiduciary Position was performed in order to determine if a depletion date was reached. Benefit payments were projected from the January 1, 2015 valuation date for the closed group of plan participants on that date. Administrative expenses were assumed to increase at 2.75%. Future employer and employee contribution rates are assumed to remain at the 2015 level of 9.0% of covered payroll. Future new entrants are included in the projection of future contributions only to the extent that contributions in excess of their service costs are considered. Open Group Analysis: Asset projections include future new entrants to the plan. The demographic composition of the new entrant group is similar to the recent group of new participants to the plan. Projections assume that the 2015 County of Allegheny Comprehensive Annual Financial Report 161

Basic Financial Statements active head count is to remain at the January 1, 2015 level. Based on those assumptions, the Pension Trust Fund's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Pension Trust Fund investments was applied to all periods of projected benefit payments to determine the total pension liability.

Changes in the Net Pension Liability Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a)-(b) Balances at 1/1/15 $ 1,389,200,839 837,083,113 $ 552,117,726 Changes for the year: Service cost 30,573,729 - 30,573,729 Interest 106,192,763 - 106,192,763 Differences between expected and actual experience (1,277,131) - (1,277,131) Changes in benefit terms 8,150,316 - 8,150,316 Changes in assumptions 9,448,604 - 9,448,604 Contributions - employer - 32,925,519 (32,925,519) Contributions - employee - 33,151,939 (33,151,939) Net investment income - 11,081,867 (11,081,867) Benefit payments, included refunds of employee contributions (91,468,361) (91,468,361) - Administrative expense - (1,325,422) 1,325,422 Net changes 61,619,920 (15,634,458) 77,254,378 Balances at 12/31/15 $ 1,450,820,759 821,448,655 $ 629,372,104

Split of Net Pension Liability ACAA $ 112,759,240 63,843,811 $ 48,915,429 County of Allegheny 1,338,061,519 757,604,844 580,456,675 $ 1,450,820,759 821,448,655 $ 629,372,104

Changes of assumptions. Assumption change at December 31, 2015 - Retirement Rates and Termination Rates were changed based upon recent plan experience. Period (number of years) of projected benefit payments; Discounted at LTRR: All years (i.e., no depletion date); Discounted at MBR: none.

Benefit changes. For employees hired or re-hired on or after February 21, 2014 the vesting changed from 8 to 10 years, the service requirement from 20 to 25 years and the final average salary is the monthly average of the highest 48 months of compensation of the last eight years of service and overtime compensation is limited to 10% of base pay.

Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability of the County using the discount rate of 7.75%, as well as what the County's net pension liability would be if it were calculated using a discount rate that is 1% point lower (6.75%) or 1% point higher (8.75%) than the current rate:

Current Sensitivity of the Net Pension Liability to changes in 1% Discount 1% Decrease Rate Increase Discount Rate (6.75%) (7.75%) (8.75%)

Net pension liability 786,599,800 629,372,104 495,561,405 162 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued financial Retirement System report. A copy of the report may be obtained by writing to:

Allegheny County Retirement Board 106 County Office Building 542 Forbes Avenue Pittsburgh, PA 15219

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

For the year ended December 31, 2015, the County recognized pension expense of $27,609,348.

Split of Pension Expense ACAA $ 3,000,681 County of Allegheny 27,609,348 Pension Expense $ 30,610,029

At December 31, 2015, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of Resources of Resources

Differences between expected and actual experience $ $- 1,040,625 Changes of assumptions 7,698,863 141,893,220 Net difference between projected and actual earnings on pension plan investments 55,737,521 - Change in proportion 2,300,058 2,300,058 Total $ 65,736,442 $ 145,233,903

Split of Deferred Outflows and Inflows ACAA $ 7,327,031 $ 10,550,501 County of Allegheny 58,409,111 134,683,402 $ 65,736,442 $ 145,233,903

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ended December 31: ACAA County Total 2016 $ (839,792) (18,771,178) (19,610,970) 2017 (839,792) (18,771,178) (19,610,970) 2018 (839,792) (18,771,179) (19,610,971) 2019 (960,236) (20,309,607) (21,269,843) 2020 256,142 349,151 605,293 Thereafter - - -

Payable to the Pension Plan

At December 31, 2015, the County reported a payable of $1,128,266 for the outstanding amount of contributions to the pension plan required for the year ended December 31, 2015. 2015 County of Allegheny Comprehensive Annual Financial Report 163

Basic Financial Statements

Component Units - Retirement Benefits

Allegheny County Airport Authority

Employees of ACAA are members of the County’s Retirement System, and as such, all required disclosures are the same.

Port Authority of Allegheny County

A. Plan Description

General Information About the Pension Plans. PAT offers three single-employer defined benefit retirement and disability plans for eligible employees. The three plans are as follows: Plan for Employees Represented by Local 85 of the Amalgamated Transit Union (ATU Plan), Plan for Employees Represented by Local Union 29 of the International Brotherhood of Electrical Workers (IBEW Plan), and Plan for Employees who are Not Represented by a Union (NonRep Plan). The IBEW and NonRep Plans are closed to new participation.

Under each of the three plans, employees’ eligibility for normal benefits begins at age 65, at which time the individual is entitled to an annual retirement benefit, payable monthly for life. This benefit is equal to 2.25% of the average annual compensation for the last 16 quarters of employment times the years and months of continuous service or the average of the highest four of the last eight years immediately preceding the date of retirement, whichever is highest.

Early retirement is available to all participants who have reached the age of 55 and have at least 10 years of service or who meet certain continuous service requirements. Early retirement with full pension benefits is available after 25 years of continuous service for all plans. Early retirement with full pension benefits is also available after age 55 to those participants meeting certain service requirements. Individuals not meeting these requirements who retire after age 55 but prior to the date for normal benefits receive reduced benefits. The cost sharing of health care benefits is provided from PATs operating revenues for ATU and IBEW employees. Health care benefits for retirees in the NonRep Plan were eliminated for those retiring on or after July 1, 2007.

For new hires, the plans have been amended to replace the eligibility requirement for unreduced early retirement benefits from 25 years of service without regard to age, to 25 years of service and age 55. These amendments were effective as of December 1, 2005 for the ATU and NonRep Plans and May 1, 2006 for the IBEW Plan.

No new employees are permitted to start participation in the NonRep and IBEW Plans effective September 2011 and January 2012, respectively. Current participants in the Plans have the option to continue participation in the Plan or to exit the Plan and roll their current accumulated contributions to a Section 457 deferred compensation plan. New employees are required to participate in the newly offered Section 457 deferred compensation plan.

Benefit provisions for the ATU and IBEW Plans are established and amended by the Retirement and Disability Allowance Committees for each plan, as stated in written agreements. 164 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Employees Covered by Benefit Terms. As of the most recent actuarial valuations, the following employees were covered by the benefit terms:

ATU IBEW NonRep Total

Inactive plan members or beneficiaries currently receiving benefits 2,891 145 406 3,442 Inactive plan members entitled to but not yet receiving benefits 6 8 2 8 101 197 Active plan members 2,106 5 0 181 2,337 Total plan members 5,065 223 688 5,976

Contributions. Participants in the NonRep and ATU Plan contribute 10.5% and participants in the IBEW Plan contribute 5.0% of earnings to their respective plans. PAT’s contributions to the plans are based on actuarially determined rates.

Net Pension Liability. PAT’s net pension liability was measured as of December 31, 2014, and the total pension liability used to calculate the net pension liability was determined by actuarial valuations as of January 1, 2014. There were no plan changes between the January 1, 2014 valuation date and the December 31, 2014 liability measurement date. Standard actuarial techniques were used to roll forward the total pension liability from the valuation date to the measurement date.

Actuarial Assumptions. The total pension liability in the January 1, 2014 actuarial valuations were determined using the following actuarial assumptions, applied to all periods included in the measurement: (1) actuarial cost method Individual entry age normal; (2) actuarial assumptions - Investment rate of return 7.25%, underlying inflation rate 2.50%, salary projection 3.50% (with exceptions for years covered by the ATU collective bargaining agreement); (3) for healthy lives, mortality is in accordance with the RP-2000 Combined Mortality Table adjusted for white collar employees and with fully –generational projected mortality improvement under Scale AA. For disabled lives, mortality is in accordance with the disabled mortality table specified in IRS Revenue Ruling 96-7 for disabilities occurring prior to 1995.

Actuarial assumptions based on actuarial experience study for the period January 1, 2013 to December 31, 2013.

Long-Term Expected Rate of Return. The long-term expected rate of return on plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. 2015 County of Allegheny Comprehensive Annual Financial Report 165

Basic Financial Statements

The following was the asset allocation policy and best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation as of December 31, 2015:

Long-Term Long-Term Target Expected Target Expected Asset Class Allocation Real Rate of Return Allocation Real Rate of Return

U. S. equity 43.0% 6.7% 27.5% 6.7% International equity 18.0% 8.2% 20.0% 8.2% Marketable alternatives 0.0% 0.0% 10.0% 3.8% Private real estate 3.0% 3.8% 0.0% 0.0% REITs 3.0% 6.2% 10.0% 4.8% Commodities 0.0% 0.0% 5.0% 2.5% Fixed income 33.0% 0.7% 27.5% 0.7% Total 100% 100%

Discount Rate. The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that PAT’s contributions will be made based on the actuarially determined contribution. Based on those assumptions, the fiduciary net position of each plan was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Changes in Net Pension Liability. Changes in PAT’s net pension liability are as follows:

Changes in the Net Pension Liability Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a)-(b) Balances at 6/30/14 $ 1,046,171,042 772,796,314 $ 273,374,728 Changes for the year: Service cost 15,731,584 - 15,731,584 Interest 74,121,243 - 74,121,243 Employer Contributions - 26,176,245 (26,176,245) Member Contributions - 14,329,767 (14,329,767) Net investment income - 45,546,595 (45,546,595) Benefit payments, included refunds of employee contributions (75,029,231) (75,029,231) - Employer reimbursement for healthcare expenses 2,031,076 2,031,076 - Administrative expense - (751,787) 751,787 Net changes 16,854,672 12,302,665 4,552,007 Balances at 6/30/15 $ 1,063,025,714 785,098,979 $ 277,926,735

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued ATU, IBEW, and NonRep financial reports that can be obtained from PAT’s Finance Department.

Sensitivity of the Net Pension Liability to Changes in Discount Rate. The following presents the net pension liability of PAT, calculated using the discount rate of 7.25%, as well as what PAT’s net pension liability would be if it were calculated using a discount rate that is 1% lower (6.25%) or 1% higher (8.25%) than the current rate: 166 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

1% Current 1% Decrease Discount Increase (6.25%) Rate (7.25%) (8.25%)

ATU $ 321,401,237 226,938,671 145,929,864 IBEW 9,325,106 6,585,625 4,273,789 NonRep 57,205,731 44,402,439 33,584,754 $ 387,932,074 277,926,735 183,788,407

Pension Expense and Deferred Outflows of Resources Related to Pensions. For the year ended June 30, 2015, PAT recognized pension expense of $23,483,828. At June 30, 2015, PAT reported deferred outflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Net differences between expected and actual earnings on pension plan investments $ 7,244,424 Contributions made subsequent to the measurement date 10,881,130 Total $ 18,125,554

Deferred outflows of resources of $10,881,130 related to PAT's pension contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources related to pension will be recognized in pension expense as follows:

Pension Expense

Year ended December 31:

2016 $ 1,811,106 2017 1,811,106 2018 1,811,106 2019 1,811,106 $ 7,244,424

Community College of Allegheny County

Substantially all full-time employees of CCAC are covered under either the Pennsylvania Public School Employees' Retirement System (PSERS), the Pennsylvania State Employees' Retirement System (SERS), the Teachers Insurance and Annuity Association - College Retirement and Equity Fund (TIAA-CREF), the Fidelity investment Retirement Plan or Lincoln Financial Retirement Plan. Prior to July 1, 2014, CCAC recognized annual pension expense equal to its contractually required contributions to the plans, and continues to for the TIAA-CREF, Fidelity and Lincoln Financial Plans through June 30, 2015.

About 96.4% of eligible employees participate in TIAA-CREF, Fidelity or Lincoln Financial plans, which are cost-sharing, multiple-employer defined contribution plans. Employer and employee contribution rates are established by collective bargaining agreements with the American Federation of Teachers and the Service Employees International Union (SEIU). The agreements require contributions by active members and CCAC. Active members contribute at a rate of 5% of qualifying compensation and CCAC contributes at a rate of 5% of the first $6,000 and 10% of the remaining qualifying compensation. SEIU members have an alternate option to contribute at a rate of 1% of the qualifying compensation instead of the 5% rate, and CCAC would contribute at the rate of 1%. The contributions 2015 County of Allegheny Comprehensive Annual Financial Report 167

Basic Financial Statements to TIAA-CREF, Fidelity and Lincoln Financial plans for the year ended June 30, 2015, were $4,135,973 from CCAC and $2,188,166 from employees. Employees are vested immediately in all of their contributions and CCAC's contributions.

PSERS is a governmental, cost-sharing, multiple-employer defined benefit public employee retirement system in which about 3.0% of eligible employees participate. It provides retirement and disability benefits, legislatively mandated ad-hoc cost-of-living adjustments, and healthcare insurance premium assistance to qualifying annuitants. PSERS issues a comprehensive annual financial report that includes financial statements and required supplementary information for the plan. A copy of the report may be obtained by writing to Office of Financial Management, Public School Employees’ Retirement System, 5 N 5th Street, Harrisburg, PA 17108-1905.

Article II of the State’s Constitution assigns the authority to establish and amend the benefit provisions of the plan to the General Assembly. The contribution policy for PSERS is established in the Public School Employees’ Retirement Code and requires contributions by active members, CCAC, and the State. The contribution rate for CCAC and the State is an actuarially determined rate. The current rate at June 30, 2015, is 20.5% of annual covered payroll for each.

CCAC and the State’s contributions to PSERS for the year ending June 30, 2015, was $192,681 and equal to the required contractual contribution.

SERS is a governmental, cost-sharing, multi-employer defined benefit public employee retirement plan in which less than 1% of eligible employees participate. It provides retirement, death and disability benefits, and legislatively mandated ad-hoc cost-of-living adjustments. Article II of the State’s Constitution assigns the authority to establish and amend the benefit provisions of the plan to the General Assembly. SERS issues an annual financial report that includes financial statements and required supplementary information for the plan. A copy of the report may be obtained by writing to Pennsylvania State Employees' Retirement System, 30 North 3rd Street, Suite 150, Harrisburg, PA 17108-1147.

The contribution policy for SERS, as established by SERS’ Board, requires contributions by active members, CCAC and the State. Active members contribute at a rate of 6.25% or 9.3% of their qualifying compensation. The contribution rate for both CCAC and the State, is an actuarially determined rate, which which varies by class of employee at June 30, 2015, was 19.92% or 13.77% of annual covered payroll for each, respectively. CCAC contributions to SERS for the years ending June 30, 2015, was $105,687, equal to the required contractual contribution.

Retirement Incentive Plan

CCAC offered voluntary Retirement Incentive Plan (RIP) approved by the Board for a limited time from March 6, 2014 to June 2, 2014 to realize budgetary savings in 2014-15 and subsequent years by reducing salary and benefit expenses. Through the RIP, CCAC offered retirement incentive to eligible employees. Eighty-six employees elected to participate in the RIP. An employee was eligible to receive retirement incentive benefits if the employee meets each of the following conditions:

The employee has completed at least 20 years of service with CCAC as of June 30, 2014; The employee is at least 60 years old as of June 30, 2014; The effective date of the employee's retirement is no earlier than June 30, 2014 and no later than August 1, 2014; 168 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

The employee completes, signs and returns a retirement election and general release form to the Human Resources office on or before the close of business June 2, 2014; and The employee does not revoke the retirement election and general release form in writing within seven calendar days after signing it.

Employees who retire and meet the eligibility criteria above shall receive the following, in addition to their normal retirement benefits:

A cash severance payment equal to one week of the eligible employee's earnings multiplies by the employee's total years of service. The employee may choose a lump sum payment, paid by September 2, 2014, or elect to receive the severance payment in five equal annual installments according to the following schedule: Installment #1 - September 2, 2014, Installment #2 - September 1, 2015, Installment #3 - September 1, 2016, Installment #4 - September 1, 2017, and Installment #5 - September 1, 2018. A supplemental severance payment equal to $6,500 per year for a period of five years following the effective date of retirement. The supplemental severance benefit will be paid in installments, according to the schedule above. Eligible employees may elect to remain enrolled in CCAC's group health, dental and vision insurance plans, provided that the employee pays the full monthly premiums for such coverage. Eligible employees may enroll in CCAC's credit or state-reimbursable non-credit classes, on a space available basis, following retirement and without payment of applicable tuition. Eligible employees who enroll on a tuition-free basis will be required to pay appropriate fees associated with enrolled courses or programs. No liability existed for this benefit as of June 30, 2014. CCAC will expense the cost of this benefit in the period it is incurred.

Employees will not be eligible for the benefits if any of the following apply:

The employee is a former employee of CCAC who retired or resigned effective as of a date prior to June 30, 2014; The employee's employment with CCAC is involuntarily terminated for cause, as determined in the sole discretion of CCAC; or The employee's employment with CCAC is terminated as a result of the employee's death or disability.

As of June 30, 2015, CCAC has a total liability of $3,615,766 relative to existing Plan agreement with CCAC's employees covered by PSERS, SERS and TIAA-CREF.

The liability as of June 30, 2015 can be broken into the required payments as shown at current costs:

Planned Severance Year Payments

2016 $ 1,205,256 2017 1,205,255 2018 1,205,255

Total $ 3,615,766 2015 County of Allegheny Comprehensive Annual Financial Report 169

Basic Financial Statements

SERS AND PSERS DEFINED BENEFIT PLANS

A. Plan Description

SERS - is the administrator of a cost-sharing multiple-employer defined benefit pension plan established by the Commonwealth of Pennsylvania (Commonwealth) to provide pension benefits for employees of state government and certain independent agencies. SERS is a component unit of the Commonwealth and is included in the Commonwealth’s financial report as a pension trust fund.

Membership in SERS is mandatory for most state employees. Members and employees of the Pennsylvania General Assembly, certain elected or appointed officials in the executive branch, department heads and certain employees in the field of education are not required, but are given the option to participate.

Section 5507 of the State Employees’ Retirement Code (SERC) (71 Pa. C.S. §5507) requires the Commonwealth and other employers whose employees are SERS members to make contributions to the fund on behalf of all active members and annuitants necessary to fund the liabilities and provide the annuity reserves required to pay benefits. SERS funding policy, as set by the SERS board, provides for periodic active member contributions at statutory rates. The SERS funding policy also provides for periodic employer contributions at actuarially determined rates based on SERS funding valuation, expressed as a percentage of annual retirement covered payroll, such that they, along with employee contributions and an actuarially determined rate of investment return, are adequate to accumulate assets to pay benefits when due. However, Act 2010-120 imposes rate increase collars (limits on annual rate increases) on employer contributions. The collar for Commonwealth’s fiscal year 2014 was 4.5% and will remain at that rate until no longer needed.

PSERS - Public School Employees’ Retirement System (PSERS) is a governmental cost-sharing multi-employer defined benefit pension plan that provides retirement benefits to public school employees of the Commonwealth of Pennsylvania. The members eligible to participate in PSERS include full-time public school employees, part-time hourly public school employees who render at least 500 hours of service in the school year, and part-time per diem public school employees who render at least 80 days of service in the school year in any of the reporting entities in Pennsylvania. Public School Employees' Retirement Board (Board) is established by state law as an independent administrative board of the Commonwealth. The Board exercises control and management of PSERS, including the investment of its assets. Changes in benefit and contribution provisions for the retirement plan must be made by legislation.

B. Benefits Provided

SERS - provides retirement, disability and death benefits. Article II of the Commonwealth’s constitution assigns the authority to establish and amend the benefit provision of the plan to the Pennsylvania General Assembly. Member retirement benefits are determined by taking years of credited service, multiplied by final average salary, multiplied by 2.5% or 2.0%, depending on the membership class, multiplied by years of service multiplier. According to the SERC, all obligations of SERS will be assumed by the Commonwealth should SERS terminate.

Members are eligible for monthly retirement benefits upon the membership class information noted below. Membership Class A-3 (Class A-3) includes all eligible employees hired after December 31, 2010, except members of the judiciary. Certain groups have effective dates after December 31, 2010 that are tied to the expiration of collective bargaining agreements. Membership Class A-4 (Class A-4) is the same as Class A-3 except that this class is for members who elect to pay a higher member contribution amount and receive a higher benefit. Membership Class AA includes all employees hired 170 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

after June 30, 2001 but prior to January 1, 2011, except State police officers, members of the judiciary and legislators, and employees hired before July 1, 2001, who elected Class AA by December 31, 2001. To qualify for normal retirement, Class A-3 and Class A-4 members must work until age 65 with a minimum of three years of service or attain a total combination of age and service that is equal to or greater than 92 with a minimum of 35 years of service. Benefits for Class AA and Class A-4 are equal to 2.5% of the high three-year final average salary (FAS) of the member multiplied by the number of years and fractions of credited service. To qualify for normal retirement, Class AA and Class A members must work until age 60 with a minimum of three years of service or attain a total combination of age and service that is equal to or greater than 92 with a minimum of 35 years of service. Benefits for Class A and Class A-3 are equal to 2% of the high 3 year FAS of the member multiplied by the years and fractions of credited service. Members who have 41 or more years of combined Class A-3, A-4, A and AA service are entitled to a supplemental benefit ranging from 2% of the applicable single life annuity for members with 41 years of service to 10% of the applicable single life annuity for members with 45 or more years of service. The benefit for a member who works past age 70 is at least equal to a benefit that is the actuarial equivalent of the prior year’s benefit. All Class A-3 and A-4 members have a vested entitlement after 10 years of credited service. All other classes are vested after five years of credited service.

The disability benefit is equal to the benefit calculated as of normal retirement age, based on years of credited service at disability, if the result is greater than or equal to 33 1/3% of FAS at time of disability. If the benefit so calculated is less than 33 1/3% of FAS, the disability benefit is equal to the smaller of: The benefit calculated as of normal retirement age based on service projected to retirement date; or 33 1/3% of FAS at time of disability.

For service-connected disabilities, the disability benefit payable will be increased, as needed, so that the sum of the plan benefit and the benefits paid or payable under the Workers’ Compensation Act, The Pennsylvania Occupational Disease Act and the Social Security Act equals 70% of FAS.

A member is eligible for death benefits prior to retirement if the member is under the age of 60 and has five years of credited service for those in Class A and AA and under the age of 65 and has 10 years of credited service for those in Class A-3 and A-4 or has reached the age of 60 for members in Class A and AA (or age 65 for members in Class A-3 and A-4) with three years of credited state service. A member who elects the maximum single life annuity is entitled to a refund of the unpaid balance of the accumulated member contributions and interest at the time of retirement. A member may elect one of several optional reduced pensions in lieu of the maximum single life annuity to provide additional death benefit protection. The optional forms of benefit are actuarially equivalent to the maximum single life annuity benefit using 4.0% interest per annum, compounded annually, and several actuarial equivalence factors.

PSERS - provides retirement, disability and death benefits. Members are eligible for monthly retirement benefits upon reaching (a) age 62 with at least one year of credited service; (b) age 60 with 30 or more years of credited service; or (c) 35 or more years of service regardless of age. Act 120 of 2010 (ACT 120) preserves the benefits of existing members and introduced benefit reductions for individuals who become new members on or after July 1, 2011. Act 120 created two new membership classes, Membership Class T-E (Class T-E) and Membership Class T-F (Class T-F). To qualify for normal retirement, Class T-E and Class T-F members must work until age 65 with a minimum of three years of service or attain a total combination of age and service that is equal to or greater than 92 with a minimum of 35 years of service. Benefits are generally equal to 2% or 2.5%, depending upon the membership class, of the member’s final average salary (as defined by Code) multiplied by the number of years of credited service. For members whose membership started prior to July 1, 2011, after 2015 County of Allegheny Comprehensive Annual Financial Report 171

Basic Financial Statements completion of five years of service, a member’s right to the defined benefits is vested and early retirement benefits may be elected. For Class T-E and Class T-F members, the right to benefits is vested after ten years of service.

Participants are eligible for disability retirement benefits after completion of five years of credited service. Such benefits are generally equal to 2% or 2.5%, depending upon the membership class of the member’s final average salary (as defined in the Code) multiplied by the number of years of credited service, but not less than one-third of such salary nor greater than the benefit the member would have had at normal retirement age. Members over normal retirement age may apply for disability benefits.

Death benefits are payable upon the death of an active member who has reached 62 with at least one year of credited service (age 65 with at least three years of credited service for Class T-E and Class T-F members) or who has at least five years of credited service (ten years for Class T-E and Class T-F members). Such benefits are actuarially equivalent to the benefit that would have been effective if the member had retired on the day before death.

C. Contributions

SERS Member Contributions

Regular member contributions for Class A-3 and Class AA are equal to 6.25% of total compensation, for Class A-4 contributions are equal to 9.30% of total compensation and Class A contributions are equal to 5.00% of total compensation.

Any member who elects the Social Security Integration Credit pays 5.00% of any salary in excess of the amount of salary covered by social Security during the year for which contributions are being made. A member electing to end additional contributions is ineligible to make future contributions or accrue future benefits. Class A and AA members may elect to waive future contributions on an annual basis if their maximum single life annuity exceeds 110% of their highest calendar year compensation.

PSERS Member Contributions

Active members who joined the System prior to July 22, 1983, contribute at 5.25% (Membership Class T-C) or at 6.5% (Membership Class T-D) of the member’s qualifying compensation.

Members who joined the System on or after July 22, 1983, and who were active or inactive as of July 1, 2001, contribute at 6.25% (Membership Class T-C) or at 7.5% (Membership Class T-D) of the member’s qualifying compensation. Members who joined the System after June 30, 2001 and before July 1, 2011, contribute at 7.5% (automatic Membership Class T-D). For all new hires and for members who elected Class T-D membership, the higher contribution rates began with service rendered on or after January 1, 2002.

Members who joined the System after June 30, 2011, automatically contribute at the Membership Class T-E rate of 7.5% (base rate) of the member’s qualifying compensation. All new hires after June 30, 2011 who elect Class T-F membership contribute at 10.3% (base rate) of the member’s qualifying compensation. Membership Class T-E and Class T-F are affected by a “shared risk” provision in Act 120 of 2010 that in future fiscal years could cause the Membership Class T-E contribution rate to fluctuate between 7.5% and 9.5% and Membership Class T-F contribution rate to fluctuate between 10.3% and 12.3%. 172 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

D. Employer Contributions

SERS - The employers contractually required contribution rates for SERS for fiscal year ended December 31, 2014 were as follows:

Employer Contribution Class/Description Category Description Rate

A3/A4 Effective 1/1/2001 All others with age 65 retirement 17.18% A All others with retirement age of 60 19.89% AA All others with retirement age of 60 24.86%

The percentages above were actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year with an additional amount to finance any unfunded accrued liability. The College’s contributions to SERS for the years ended June 30, 2015, 2014 and 2013 were $105,687, $92,510 and $69,042, respectively, equal to the required contractual contributions.

PSERS - The employer’s contractually required contribution rate for PSERS fiscal year ended June 30, 2015 was 20.5% of covered payroll, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year with an additional amount to finance any unfunded accrued liability. Per section 8327 of the PSERS Retirement Code, the Commonwealth is required to contribute 50% of the above-stated contribution rate directly to PSERS on behalf of the employer. The College’s contributions to PSERS for the years ended June 30, 2015, 2014 and 2013 were $192,681, $145,378 and $155,021, respectively, equal to the required contractual contributions.

SERS AND PSERS - At June 30, 2015, the College reported a liability for its proportionate share of the net pension liability of SERS and PSERS. The amount recognized by the College as its proportionate share was as follows:

Measurement Net Pension Liability Proportionate Share Plan Date 2015 2014 2015 2014

SERS December 31 $ 1,389,994 1,649,081 0.00936% 0.01207% PSERS June 30 2,652,000 2,907,000 0.00670% 0.00710%

The Commonwealth of Pennsylvania (Pennsylvania) is required to contribute 50% of the College’s contribution directly to PSERS on behalf of the College. The total of the collective net pension liability relative to PSERS that is associated with the College as of the respective measurement date of June 30, 2014 and 2013 is as follows:

2014 2013

CCAC $ 2,652,000 2,907,000 Pennsylvania 2,652,000 2,907,000 Total $ 5,304,000 5,814,000

The net pension liability relative to SERS was measured as of December 31, 2014 and the total pension liability used to calculate the net pension liability was determined by rolling forward the System’s total pension liability as of December 31, 2013 to December 31, 2014. The employer’s portion of the net pension liability was calculated utilizing the employer’s one-year reported covered payroll as it relates 2015 County of Allegheny Comprehensive Annual Financial Report 173

Basic Financial Statements to the total one-year reported covered payroll. At December 31, 2014, the employer’s proportion share of the net pension liability was .009356%, which was a decrease of 0.0027% from the proportion measured as of December 31, 2013.

PSERS - At June 30, 2015, the College reported a liability for its proportionate share of the net pension liability that reflected a reduction for Commonwealth pension support provided to the College. The amount recognized by the College as its proportionate share of the net pension liability, the related Commonwealth support, and the total portion of the net pension liability that was associated with the College are in the table above.

The net pension liability relative to PSERS was measured as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by rolling forward the System’s total pension liability as of June 30, 3013 to June 30, 2014. The College’s portion of the net pension liability was calculated utilizing the College’s one-year reported covered payroll as it relates to the total one-year reported covered payroll. As of the measurement date of June 30, 2014, the College’s proportionate share of the net pension liability was .0067%, which was a decrease of 0.0004% from the proportion measured as of June 30, 2013. The College’s proportionate share of the net pension liability at June 30, 2015 was $2,652,000, and was recognized by the College in its June 30, 2015 statement of net position.

SERS and PSERS - For the year ended June 30, 2015, the College recognized pension expense of $230,740. At June 30, 2015, employer contributions payable was $18,882 for SERS and $11,229 for PSERS. These amounts were for the legally required contributions of the plans. At June 30, 2015, the College reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of Resources of Resources

Difference between expected and actual experience $ 7,546 - Changes in assumptions - - Net differences between Projected and actual investment earnings 40,161 190,000 Changes in proportions - 436,582 Difference between employer contributions and proportionate share of total contributions - 2,840 Contributions made subsequent to the measurement date 298,368 - Total $ 346,075 629,422

$298,368 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016.

SERS - The components of deferred outflows of resources and deferred inflows of resources, other than the difference between the projected and actual investment earnings on investments, are amortized into pension expenses over a 5.6-year closed period, which reflects the weighted average remaining service life of all SERS members, beginning the year in which the deferred amount occurs (current year). The annual difference between the projected and actual earnings on SERS investments is amortized over a five-year closed period beginning the year in which the difference occurs (current year). 174 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

PSERS - The components of deferred outflows of resources and deferred inflows of resources, other than the difference between the projected and actual investment earnings on investments, are amortized into pension expenses over 5.15 years, which is the average expected remaining service lives of active and inactive members. The annual difference between the projected and actual earnings on PSERS investments is amortized over a five-year period.

The amounts of deferred outflows of resources and deferred inflows of resources related to the above items that will be recognized in pension expense in future periods are as follows:

Pension Expense SERS PSERS Fiscal Deferred Deferred Deferred Year Inflows Outflows Inflows 2016 $ 66,832 11,680 79,000 2017 66,832 11,680 79,000 2018 66,832 11,680 79,000 2019 66,832 11,680 79,000 2020 41,094 984 5,000 $ 308,422 47,704 321,000

E. Actuarial Assumptions

SERS - The total pension liability as of December 31, 2014 was determined by rolling forward the SERS’s total pension liability as of the December 31, 2013 actuarial valuation to the December 31, 2014 valuation using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial cost method - entry age; Investment return - 7.50% net of expenses including inflation of 2.75%; Salary increases - Average of 6.10%, with range of 4.30% to 11.05%, including inflation; Mortality rates were based on the RP-2000 Combined Healthy Annuitant Tables (male and female) with age set back three years for both males and females. For disabled annuitants the RP-2000 Combined Disabled Tables (male and female) with age set back seven years for males and three years for females; Amortization method - Used straight-line amortization of investments over a five year period, and amortized assumption changes and noninvestment gains/losses over the average expected remaining service lives of all employees that are provided benefits; Asset valuation method - Fair market value; and Cost-of-Living Adjustments (COLA) - Provided ad hoc at the discretion of the General Assembly, none were provided during 2013 and 2014.

The actuarial assumptions used in the December 31, 2014 and 2013 valuation were based on the experience study that was performed for the five-year period ended December 31, 2010. The recommended assumption changes based on this experience study were adopted by the SERS Board at its January 2011 Board meeting. The SERS Board approved the recommendations of the actuary, and the new assumptions were first used in the December 31, 2010 actuarial valuation.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of December 31, 2014 are summarizedinthefollowingtable: 2015 County of Allegheny Comprehensive Annual Financial Report 175

Basic Financial Statements

Target Long-Term Expected Asset Class Allocation Real Rate of Return

Alternate investments 15% 8.50% Global public equity 40% 5.40% Real assets 17% 4.95% Diversifying assets 10% 5.00% Fixed income 15% 1.50% Liquidity reserve 3% 0.00% Total 100%

PSERS - The total pension liability as of June 30, 2014 was determined by rolling forward the PSERS’s total pension liability as of the June 30, 2013 actuarial valuation to June 30, 2014 using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial cost method - Entry Age Normal - level % of pay; Investment return - 7.50% includes inflation at 3.00%; Salary increases - Effective average of 5.5%, which reflects an allowance for inflation of 3.00%, real wage growth of 1%, and merit or seniority increases of 1.5%; Mortality rates were based on the RP-2000 Combined Healthy Annuitant Tables (male and female) with age set back three years for both males and females. For disabled annuitants the RP-2000 Combined Disabled Tables (male and female) with age set back seven years for males and three years for females; Amortization method - Level dollar, open; Asset valuation method - 10-year smoothed market; and COLA - provided from the annuity reserve account, none were provided during 2013 and 2014.

The actuarial assumptions used in the June 30, 2013 valuation were based on the experience study that was performed for the five-year period ended June 30, 2010. The recommended assumption changes based on this experience study were adopted by the PSERS Board at its March 11, 2011 Board meeting, and were effective beginning with the June 30, 2011 actuarial valuation.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

The pensions plan’s policy in regard to the allocation of invested plan assets is established and may be amended by the PSERS Board. Plan assets are managed with a long-term objective of achieving and maintain a fully funded status for the benefits provided through the pension. 176 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Target Long-Term Expected Asset Class Allocation Real Rate of Return

Public markets global equity 19% 5.0% Private markets (equity) 21% 6.5% Private real estate 13% 4.7% Global fixed income 8% 2.0% U.S. long treasuries 3% 1.4% TIPS 12% 1.2% High yield bonds 6% 1.7% Cash 3% 0.9% Absolute return 10% 4.8% Risk parity 5% 3.9% MLPs/Infrastructure 3% 5.3% Commodities 6% 3.3% Financing (LiBOR) -9% 1.1% Total 100%

The above was the PSERS Board’s adopted asset allocation policy and best estimate of geometric real rates of return for each major asset class as of June 30, 2014.

F. Discount Rate

The discount rate used to measure the total pension liability for SERS and PSERS was 7.50%. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the rates applicable for each member and that employer contributions will be made based on rates determined by the actuary. Based on those assumptions, fiduciary net position was projected to be available to make all projected future benefit payments of current active and non-active members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefit payments to determine the total pension liability.

G. Sensitivity of the College’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability, calculated using the discount rate of 7.5%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.5%) or one percentage point higher (8.5%) than the current rate:

1% Current 1% Decrease Discount Increase (6.5%) Rate (7.5%) (8.55%)

2015 SERS proportionate share share of the net pension liability $ 1,779,159 1,389,994 1,055,375 2015 PSERS proportionate share share of the net pension liability 3,308,000 2,652,000 2,092,000 $ 5,087,159 4,041,994 3,147,375 2015 County of Allegheny Comprehensive Annual Financial Report 177

Basic Financial Statements

H. Pension Plan Fiduciary Net Position

Detailed information about SERS’s fiduciary net positon, plan’s basis of accounting and information about the substance and magnitude of significant changes that have occurred is available in SERS Comprehensive Annual Financial Report which can be found on the System’s website at www.sers.pa.gov

Detailed information about PSERS’s fiduciary net position, plan’s basis of accounting and information about the substance and magnitude of significant changes that have occurred is available in PSERS Comprehensive Annual Financial Report which can be found on the System’s website at www.psers.state.pa.us

Allegheny County HealthChoices, Inc.

AHCI's employees are eligible to participate in a 401(k) Retirement Safe Harbor Plan. Each participant may contribute a percentage of their compensation up to the maximum percentage allowed by the Internal Revenue Service. AHCI will match 100% of the first 3% of the employee contribution, plus 50% of the employee contribution over 3% but not greater than 5%. In addition, AHCI may make an additional matching contribution as of each December 31 of up to 1% to ensure compliance with contribution limits mandated by the Safe Harbor regulations. To be eligible, an employee must be an active member of the plan at any time during the plan year. Amounts forfeited by nonvested terminated participants are used to offset the amount required to be contributed by AHCI. The net contribution (expense) to the plan for December 31, 2015 was $102,905.

AHCI established a 457(b) Deferred Compensation Plan for its Chief Executive Officer and three other key employees. All contributions to the plan are made by AHCI. AHCI contributed a total of $5,329 for December 31, 2015. As the plan document specifies that the investments of the plan are assets of AHCI and are not protected from AHCI's creditors, related assets have been recorded as an investment on the statements, with an offsetting liability recorded in accrued expenses related to the anticipation of future payouts related to the plan.

(11) Postemployment Benefits Other Than Pension Benefits

A. Plan Description

In addition to the pension benefits, previously described, the County provides post-retirement life insurance benefits to all retirees, and healthcare coverage and major medical insurance to certain retirees through a single employer defined benefit plan. The benefit, limits and employee and employer contributions are established through union contracts and past practices. The plan is not accounted for as a trust fund, an irrevocable trust has not been established, the plan does not issue a separate report and activity of the plan is reported in the County’s General and Internal Service Funds.

B. Benefits Provided

Life Insurance Benefits

The County provides postemployment life insurance benefits to active retirees. Current retirees receive County-paid retiree life insurance in varying amounts falling within a range of $4,000 to $10,000 depending on a retirees’ bargaining unit/employee group. Future retirees will be receiving a blended rate of $4,000. Currently, 4,034 retirees meet those eligibility requirements. The County's General Fund expenditures for all postemployment life insurance benefits were $854,167 ($939,267 net of retiree contributions of $85,100) in 2015. 178 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

HealthCare Coverage

The County provides postemployment healthcare coverage benefits to certain retirees in accordance with agreements between the County and the respective unions. At December 31, 2015, 55 retired police officers are covered by health insurance. The County’s expenditures for health insurance benefits were $481,474 ($630,760, net of retiree contributions of $149,286) in 2015. The costs associated with this benefit are paid by the County’s General Fund and are not prefunded.

At December 31, 2015, 54 correctional officers who retired are eligible to receive up to $500 per month towards the cost of health insurance for the correctional officer and spouse for up to 5 years. Beginning July 1, 2015, three correctional officers who retired are eligible to receive up to $600 per month towards the cost of health insurance for seven years or until Medicare eligibility, if earlier. The County's expenses for health insurance benefits were $201,496 in 2015. The costs associated with this benefit are paid by the County's General Fund and are not prefunded.

At December 31, 2015, 17 sheriffs who retired are eligible to receive up to $500 per month towards the cost of health insurance for the sheriff and spouse for up to 5 years. The County's expenses for health insurance benefits were $61,579 in 2015. The costs associated with this benefit are paid by the County's General Fund and are not prefunded.

Major Medical Insurance

The County provides postemployment major medical insurance benefits to certain retirees who retired prior to January 1, 1994. The coverage entitles retirees to benefits for medical services rendered that are in excess of their individual plans. Currently, 75 retirees are enrolled in the major medical insurance program. The County's expenses for major medical insurance benefits were $109,970 ($188,371, net of retiree contributions of $78,401) in 2015.

C. Funding Policy

These OPEBs are expensed when incurred and are financed on pay-as-you-go basis. For 2015, the County incurred $1,710,051 for post employment benefits other than pension benefits. Retiree's receiving benefits contributed $311,422 through their deductions. The County of Allegheny has the authority to establish or amend required contribution rates.

Eligible police retirees contribute 20% of the medical monthly premium rate.

The closed group of retired and disabled employees participating in the retiree major medical insurance contribute $78.10 monthly for individual coverage and $139.87 monthly for family coverage. These required monthly contributions will not increase in the future. Surviving spouse may continue coverage by making required contribution.

The County’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (of funding excess) over a closed period not to exceed 30 years. 2015 County of Allegheny Comprehensive Annual Financial Report 179

Basic Financial Statements

The following table shows the component of the County’s annual OPEB cost (AOC), the amount actually contributed, and changes in the County’s net OPEB obligation:

Annual required contribution $ 4,825,012 Interest on net OPEB obligation 1,319,694 Adjustment to annual required contribution (1,907,951) Annual OPEB cost 4,236,755 Contributions made (1,708,686) Increase in net OPEB obligation 2,528,069 Net OPEB obligation – beginning of year 32,992,352 NetOPEBobligation–endofyear $ 35,520,421

The County’s annual OPEB cost, the percentage of annual OPEB cost contributed and the net OPEB obligation were as follows:

Annual OPEB Cost Percentage of AOC NetOPEBObligation Fiscal Year Ending (AOC) Contributed (Asset)

December 31, 2015 $ 4,236,755 48.0% 35,520,421 December 31, 2014 4,044,228 42.5 32,992,352 December 31, 2013 4,091,503 35.2 30,668,507

An actuarial valuation was performed as of January 1, 2015 thus the Net OPEB obligation is an estimate for 2015. The ARC was computed using the following actuarial assumptions: (1) actuarial cost method projected unit credit; (2) mortality RP-2014 table projected using MP-2015; (3) discount rate of 4%; (4) 2.75% inflation rate was assumed: (5) the healthcare cost trend rate for fiscal year 2017 estimated to be 7.0% higher than 2016 and is assumed to decrease .25% each year period beginning 2016 through 2021; (6) due to advancing age the overall healthcare costs will be at a rate of 4% in the 50's and decrease 1% every 10 years through the 80's; (7) withdrawal rates vary by attained age; and (8) its assumed that 100% of eligible participants will participate in the retiree medical program.

Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future.

The schedule of funding progress (in thousands) presented below shows multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability benefits for the postemployment medical and life insurance benefits as follows:

Actuarial Actuarial Accrued Unfunded UAAL as a Value of Liability Actuarial Accrued Funded Covered Percentage of Actuarial Assets (AAL)-PUC Liability (UAAL) Ratio Payroll Covered Payroll Valuation Date (a) (b) (b)-(a) (a)/(b) (c) [(b)-(a)]/(c)

January 1, 2015 $ 0 57,797 57,797 0.00% 334,741 17.30% January 1, 2013 0 57,411 57,411 0.00 326,104 17.61 January 1, 2011 0 82,131 82,131 0.00 316,355 25.96 180 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

The calculations are based on the types of benefits provided under the terms of the substantive plan at the time of the valuation and on the pattern of cost sharing between the employer and plan members. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future.

The actuarial assumptions used in this valuation reflect a long-term perspective. To the extent possible, the actuarial assumptions and methods used attempt to reduce the short-term volatility in the actuarial accrued liabilities.

Identification of the actuarial methods and significant assumptions used to determine the ARC for the current period are: (1) actuarial cost method projected unit credit; (2) the method used to determine the actuarial value of assets in not applicable since there are no plan assets: (3) the assumptions with respect to inflation rate, investment return, projected salary increases and healthcare cost trend are mentioned above; (4) the amortization method used is the level dollar method. The amortization period for the most recent actuarial valuation is 30 years. The period is open.

Port Authority of Allegheny County

Plan Descriptions: In addition to the pension benefits PAT provides certain post-retirement healthcare benefits to its retirees. In accordance with the Retirement and Disability Allowance Plans for union and non-union employees, post-retirement benefits are provided to those who become entitled to receive a pension allowance or a disability allowance. Post-retirement benefits consisting of medical, hospital, prescription, dental and vision insurance coverage, and Medicare Part B premium reimbursement is provided for the retiree.

Benefit provisions for the ATU and IBEW Plans are established and amended though negotiations between PAT and the respective unions. For the NonRep Plan, that authority rests with the PAT’s Board of Directors. The Plans do not issue publicly available financial reports.

On August 8, 2012, PAT reached a new collective bargaining agreement with the ATU. The agreement included the elimination of lifetime retiree healthcare. New hires are eligible for only three years of healthcare coverage at full retirement.

Funding Policy: PAT's contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2015, PAT contributed $29.8 million (excluding the implicit rate subsidy) to the plans. Plan members receiving benefits contributed $2 million through their contributions as required by the cost sharing provisions of the Plans. Under these provisions, retirees receiving benefits pay a certain percentage of any cost increases after the base year, as determined by the respective plans. Retiree cost sharing percentages for the ATU, IBEW, and NonRep plans are based on the particular healthcare coverage that is selected by the retiree, the number of family members covered and the age of the retiree and each covered family member, and when retirement became effective.

Annual OPEB Cost: PAT’s annual OPEB cost (expense) for each plan is calculated based on the ARC of the employer, an amount actuarially determined in accordance with the parameters of applicable guidance. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined 2015 County of Allegheny Comprehensive Annual Financial Report 181

Basic Financial Statements regarding the funded status of the plan and the ARC of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

The net OPEB obligation were computed as of January 1, 2013 used the following assumptions: (1) actuarial cost method projected unit credit; (2) amortization method level dollar; (3) an open amortization period of 30 years; (4) investment rate of return 4%; (5) projected salary increases 3.5%; (6) mortality RP-2000 table, with collar adjustments, and projected to 2018; and (7) inflation rate in medical 9.0% in 2013, grading to 4.0% in 2082, dental 4.0%, and vision 2% per year.

The January 1, 2013 valuation included various changes in actuarial assumptions. These changes resulted in an overall increase of $3.4 million to the annual OPEB cost and a $75.7 million increase to the unfunded accrued liability. These changes include the mortality improvement has been changed from a fixed year to fully-generational, which is based on each participant's year of birth, 100% participation is assumed for ATU and IBEW employees at retirement (previously, 95% were assumed) and 25% of NonRep employees were assumed to elect retiree healthcare coverage (previously, 0% was assumed), the ultimate assumed medical trend rates have been extended and the ultimate trend rate has been reduced from 4.5% to 4.0%, medical claim costs were expected to increase by over 16% but actual experience included no increase in Medicare Advantage coverage and a 5.7% increase in premiums for under-65 coverage. Additionally, the number of active participants who could potentially receive retiree medical benefits decreased from 2,665 to 2,378 since the prior valuation and the Patient Protection and Affordable Care Act (ACA) contains a provision effective in 2018 that imposes a 40% excise tax on high-cost plans. The tax is charged on premium amounts that exceed certain thresholds. The excise tax provision is expected to apply to all employers, including governmental units. Reflecting the assumptions used for the January 1, 2013 valuation, the actuarial accrued liability has increased by 4.9% due to the inclusion of the projected value of the excise tax.

Three year trend information:

ATU Plan Annual OPEB Cost Percentage of AOC NetOPEBObligation Fiscal Year Ending (AOC) Contributed (Asset)

June 30, 2015 $ 68,830,879 48% 301,306,019 June 30, 2014 67,811,055 47 265,771,914 June 30, 2013 64,719,215 43 230,047,302

IBEW Plan Annual OPEB Cost Percentage of AOC NetOPEBObligation Fiscal Year Ending (AOC) Contributed (Asset)

June 30, 2015 $ 1,979,720 43% 10,484,517 June 30, 2014 1,943,325 42 9,356,794 June 30, 2013 1,877,705 40 8,238,928

NonRep Plan Annual OPEB Cost Percentage of AOC NetOPEBObligation Fiscal Year Ending (AOC) Contributed (Asset)

June 30, 2015 $ 4,667,380 96% 3,010,573 June 30, 2014 4,732,001 91 2,834,834 June 30, 2013 4,461,764 84 2,425,831 182 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Individual schedules of funding progress for the three plans are as follows:

ATU Plan (Amounts in thousands)

(3) (4) (7) (2) Actuarial Unfunded (5) Unfunded Actuarial (1) Actuarial Accrued Actuarial Funded (6) Accrued Liability (4) as a Actuarial Value of Projected Accrued Ratio Covered Percentage of Covered Valuation Date Assets Unit Credit Liability (2/3) Payroll Payroll [4/6]

January 1, 2013 -$* 872,249 872,249 0.0% 125,566 694.7% January 1, 2013** - 847,994 847,994 0.0 125,566 675.3.8 January 1, 2011*** - 788,881 788,881 0.0 138,441 569.8

IBEW Plan (Amounts in thousands)

(3) (4) (7) (2) Actuarial Unfunded (5) Unfunded Actuarial (1) Actuarial Accrued Actuarial Funded (6) Accrued Liability (4) as a Actuarial Value of Projected Accrued Ratio Covered Percentage of Covered Valuation Date Assets Unit Credit Liability (2/3) Payroll Payroll [4/6]

January 1, 2013 -$* 24,476 24,476 0.0% 2,440 1003.1% January 1, 2013** - 23,638 23,638 0.0 2,440 968.8 January 1, 2011*** - 23,540 23,540 0.0 2,991 787.0

NonRep Plan (Amounts in thousands)

(3) (4) (7) (2) Actuarial Unfunded (5) Unfunded Actuarial (1) Actuarial Accrued Actuarial Funded (6) Accrued Liability (4) as a Actuarial Value of Projected Accrued Ratio Covered Percentage of Covered Valuation Date Assets Unit Credit Liability (2/3) Payroll Payroll [4/6]

January 1, 2013 -$* 78,083 78,083 0.0% 15,290 510.7% January 1, 2013** - 79,153 79,153 0.0 12,590 627.7 January 1, 2011*** - 78,841 78,841 0.0 18,274 431.4

* Projected forward to 1/1/15 ** Projected forward to 1/1/14 *** Projected forward to 1/1/13 2015 County of Allegheny Comprehensive Annual Financial Report 183

Basic Financial Statements

The following table shows the PAT’s annual OPEB cost, the amount actually contributed, and changes in the net OPEB for the three plans.

ATU Plan IBEW Plan NonRep Plan Total Annual required contribution $ 72,978,479 2,125,741 4,711,620 79,815,840 Interest on net OPEB obligation 10,630,877 374,272 113,393 11,118,542 Adjustment to annual required contribution (14,778,477) (520,293) (157,633) (15,456,403)

Annual OPEB cost 68,830,879 1,979,720 4,667,380 75,477,979 Contributions made* 33,296,774 851,997 4,491,641 38,640,412

Increase (decrease) in net OPEB obligation 35,534,105 1,127,723 175,739 36,837,567 Net OPEB obligation (asset) beginning of year 265,771,914 9,356,794 2,834,834 277,963,542

Net OPEB obligation (asset) end of year $ 301,306,019 10,484,517 3,010,573 314,801,109

* Expected claims cost including implicit rate subsidy, net of expected retiree contributions.

(12) Contingencies

The County is subject to certain regulatory and contractual requirements and is party to various litigation and claims, the more significant of which are described below. No amounts have been accrued for these cases unless otherwise stated.

A. The County receives significant financial assistance from federal and Commonwealth of Pennsylvania governmental agencies in the form of grants and other entitlements. The receipt of funds under such programs generally requires compliance with terms and conditions specified in the grant agreements, and is subject to audit by grantor agencies. Any disallowed costs resulting from such audits could become a liability of the County's General Fund or other applicable funds. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. County management expects such additional amounts, if any, to be immaterial.

B. In the ordinary course of the County's operations, there are 15 various legal proceedings initiated by citizens, job applicants, subcontractor’s employees, former or current County employees for alleged violations of civil and constitutional rights violations, such as, violations of ADA, ADEA, FMLA or whistle blower statutes, wrongful terminations, political affiliation, race, gender, and equal pay brought against the County. Management is of the opinion that these matters will not have a materially adverse effect on the County's financial position.

C. The County is a defendant in approximately 24 actions associated with former or current inmates for deaths, injuries, unwanted sexual contact, constitutional and/or civil rights violations. Discovery continues in four cases, two answers were filed, seven await judicial determination, five claims are being reviewed by counsel, two filed appeals, one matter is being actively monitored by counsel, one failed to comply with a court order, one will schedule a conference in the near future and one is scheduled for trail in May. It is premature at this time to state with any degree of certainty the likelihood of favorable or unfavorable outcomes in any of these cases.

D. The County is a defendant in three cases filed by the administrators of a decedent’s estate for constitutional or civil rights violations. Two are in the discovery phase and one reached a verdict in favor of the County, but the Plantiff filed a post trial motion. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome. 184 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

E. The County is a defendant or has received notice of 10 potential claims for deaths/personal injury and/or property damage from incidents on County roadways or properties. Five cases are in discovery, two await judicial determination, one answer was filed, one is being reviewed regarding the issue of governmental immunity in matters involving work based exposure to asbestos and one the County voluntarily dismissed itself from the case without prejudice. It is premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome.

F. The County is a defendant in a condemnation case involved in taking on the South 10th Street Bridge Rehab Project. It is anticipated that the condemnee will have a claim for additional compensation. It is premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome.

G. Several real property tax assessments appeals are pending before the Court of Common Pleas. In aggregate these appeals represent amounts that may be considered material, but separately the amounts under consideration are generally minimal. The County has assigned $2.5 million of its fund balance to pay the refunds associated with 2013 appeals. It is premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome.

H. The County is a defendant in a case with tort claims that alleges former employee interfered with a contract to distribute funds pursuant to loan agreement. The court granted the County's motion for summary judgment and the Plaintiff appealed to the Commonwealth Court. It is premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome.

I. The U.S. Internal Revenue Service completed an employment tax audit of Allegheny County for the years 2009 through 2011. Upon completion of the audit, the IRS made adjustments to the County’s filings for these years based upon an alleged failure to properly withhold applicable taxes in the following instances: employer-provided clothing; employer-provided vehicles; and for payments made to certain contractors and other individuals, most notably constables. As a result of these adjustments, the IRS is asserting a claim against the County for additional income and employment taxes of $1.9 million of which $1.6 is based upon the IRS’ contention that constables are employees of the County and subject to withholding taxes. The County, however, vigorously disputes the adjustments; in particular, the IRS’ assertion that the constables are County employees and that the County is obligated to withhold and pay taxes based upon fees paid to constables. The County has retained special tax counsel and filed an administrative appeal concerning the IRS’ claim for additional taxes and is currently negotiating a settlement. It remains premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome.

Component Units - Contingencies

Allegheny County Airport Authority

A. ACAA revenue bond obligations (the Revenue Bonds) total $227,250,000 at December 31, 2015. The principal, interest and redemption premiums, if any, related to the Revenue Bonds are payable by ACAA only out of "net revenues" as defined and from such other monies as may be available for such purpose. Certain bonds are subject to various optional and mandatory sinking fund redemption requirements. The Revenue Bonds do not constitute a legal or equitable pledge, charge, lien or encumbrance upon any of ACAA's properties, including PIA, or upon any of its income, receipts or revenues except as noted above in Note 8. The holders of the Revenue Bonds have no claim upon the taxing power or tax revenues of the County. 2015 County of Allegheny Comprehensive Annual Financial Report 185

Basic Financial Statements

ACAA's ability to derive net revenues from its operation of PIA depends upon various factors, many of which are not within the control of ACAA. The primary source of net revenues is the AOA (see Note 1) between ACAA and the signatory airlines. The AOA provides for the landing fees, terminal rentals and ramp fees to be charged the airlines. In addition, the signatory airlines are also obligated to pay costs associated with aircraft support systems and tenant improvements.

At any point in time, the U.S. economy, excess airline capacity and industry-wide competition through airfare discounting constitute significant constraints on the operations of the airlines. Due to these factors, the financial results of PIA are largely dependent upon conditions in the national economy and the U.S. airline industry, and the financial condition of carriers serving PIT.

The scheduled payments of principal and interest on the Revenue Bonds when due are guaranteed by various third-party insurers and guarantors. Payment of the principal and interest on the Series 2001 Bonds is insured by MBIA. Payment of the principal and interest on the Series 2002 Refunding Bonds is insured by Financial Guaranty Insurance Company. Payments of the principal and interest on the Series 2007 and 2010 Bonds is insured by AGM. The ultimate ability of such insurers and guarantors to meet their obligations with respect to the Revenue Bonds will be predicated on their future financial condition.

B. The Pennsylvania Department of Environmental Protection (DEP) issued an Administrative Order dated January 26, 1998, to the County, which alleges violations of a January 1994 Consent Order and Adjudication and violations of the Pennsylvania Clean Streams Law at PIA. The Administrative Order cited several violations, all of which have been resolved, except for the deicing. ACAA has withdrawn a previous appeal without prejudice and continues to negotiate with DEP to reach a resolution of the matter. ACAA continues to address the deicing issues and has spent and continues to budget for, significant capital funds in the near future to attempt to resolve the deicing issue.

C. In the ordinary course of ACAA’s operations, there have been various legal proceedings brought against ACAA. ACAA management is of the opinion that these matters will not have a materially adverse effect on ACAA's financial position and results of operations.

Port Authority of Allegheny County

A. In the ordinary course of PAT's operations and capital grant projects, there have been various legal proceedings brought against PAT. Based on an evaluation which included consultation with outside legal counsel concerning the legal and factual issues involved, PAT management is of the opinion that these matters will not result in materially adverse effect on PAT's operations and financial position.

B. PAT is subject to State and federal audits by grantor agencies. These laws and regulations are complex and subject to interpretation. PAT management is not aware of any pending audit involving prior or current years; however, compliance with such laws and regulations can be subject to future reviews and interpretation, which could result in disallowed costs.

Community College of Allegheny County

A. During the normal course of operations, CCAC has been named as a defendant in certain legal actions and claims. CCAC management is of the opinion that the disposition of these legal actions and claims will not have a material adverse effect on the financial condition of CCAC. CCAC purchases commercial insurance to cover certain potential losses. The amount of settlement has not exceeded insurance coverage in fiscal year ended June 30, 2015. 186 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

B. CCAC received financial assistance from Federal and State agencies in the form of grants. The expenditures of funds received under theses programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audits by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of CCAC. However, in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of CCAC at June 30, 2015.

C. In accordance with GASB Statement No. 49, "Accounting and Financial Reporting of Pollution Remediation Obligations", CCAC is required to recognize and disclose estimated costs for cleanup of pollution that CCAC might have an obligation to remediate. Pursuant to this accounting pronouncement, CCAC does not have any known remediation obligations. The pollution remediation liability is estimated by reviewing the current status of known polluted sites and developing estimates of cleanup costs. These estimates are subject to change due to improvements in technology, inflation, changes in the scope of work and the pursuit of reimbursement from other responsible parties. Accordingly, no recoded liability exist as of June 30, 2015.

Redevelopment Authority of Allegheny County

RAAC is exposed to various risks of loss related to torts; theft or damage to, and destruction of assets; errors and omissions; breach of contract; and natural disasters, for which the RAAC carries commercial insurance. There have been no claims resulting from these risks in the current year.

RAAC receives significant financial assistance from federal and state governmental agencies in the form of grants. The disbursement of such funds generally requires compliance with contract requirements and is subject to audit. Any disallowed costs resulting from such audits could become a liability of RAAC. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. RAAC management expects such amounts, if any, to be immaterial.

Allegheny HealthChoices, Inc.

AHCI’s financial and program records are subject to examination by appropriate government authorities in accordance with terms of the various grant awards and contracts. The government authorities are authorized to review actual expenditures and to make necessary adjustments in subsequent reimbursements or request refunds of grant amounts, if warranted.

Soldiers' and Sailors' Memorial Hall and Museum Trust, Inc.

Memorial Hall is potentially liable for all expenses that may be disallowed pursuant to the terms of grant programs. Management is not aware of any material items of noncompliance that would result in the disallowance of program expenditures.

Certain grants require the fulfillment of conditions as set forth in the instrument of the grant, and failure to fulfill the conditions could result in the return of the funds to the grantor. The grant terms generally coincide with the objectives of Memorial Hall and, therefore, do not place any unusual restriction of the operations of Memorial Hall. Memorial Hall, by accepting the grants and their terms, intends to fulfill the required terms and provisions of the grants. 2015 County of Allegheny Comprehensive Annual Financial Report 187

Basic Financial Statements

(13) Related Party Transactions (see Note 1)

The County provides various administrative support services to the following related organizations:

Allegheny County Residential Finance Authority Authority for Improvements in Municipalities Allegheny County Hospital Development Authority Allegheny County Higher Education Building Authority

The costs of services provided to these organizations are fully recovered through contractual arrangements.

The County also enters into agreements with the Allegheny County Housing Authority. These agreements are for services performed for the County by the Housing Authority related to federal and state grant projects.

Component Unit – Related Party Transactions

Port Authority of Allegheny County

PAT has a contract with Transdev Services, Inc. which provides professional services to coordinate the paratransit system, ACCESS, which provides transit services within the County for elderly and handicapped individuals. Expenses under this contract amounted to $26.3 million in fiscal 2015. PAT currently receives partial reimbursement for these services from the State in the form of a grant. The amount is based on ridership and average fare statistics. Revenue under this program totaled $12.8 million in fiscal 2015.

Redevelopment Authority of Allegheny County

RAAC entered into an agreement with C.B. Richard Ellis (who employs a RAAC board member) to provide management services for a property owned by RAAC. During fiscal year 2015, RAAC paid $22,003 in management, engineering, and maintenance fees to C.B. Richard Ellis.

RAAC has entered into an agreement to provide funding through CDBG funds and an EDF loan to the ACAA for costs related to the design, engineering, and construction of the Industry Drive Extension. Total CDBG funds committed are not to exceed $2.25 million. As of December 31, 2015, the loan has an outstanding balance of $1,010,120. The Executive Director of RAAC was a board member of ACAA until January 2015.

In fiscal year 2008, RAAC approved the issuance of an additional EDF loan to the ACAA. The loan bear an annual interest rate of 4%. As of December 31, 2015, the loan has an outstanding balance of $625,020.

RAAC has entered into an agreement with RIDC (who employs a RAAC Board member) to provide certain loan and grant funds. This agreement was entered into prior to the Board member being employed by RIDC. 188 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

(14) Derivative Financial Instruments

During fiscal year 2007, the County entered into a pay-fixed, receive-variable interest rate swap contract. The interest rate swap was effective March 14, 2007. Per the swap agreement the County makes semi-annual interest payments on the first of each May and November through November 1, 2026. The counterparty makes quarterly interest payments on the first of each May, August, November and February through November 1, 2026.

The intention of the swap is to effectively change the County’s variable interest rate on the $43,945,000 General Obligation Refunding Notes, Series C-59B (Index Rate), (C-59B Notes), to a synthetic fixed rate of 4.1355%.

The Series C-59B Notes will accrue interest at a weekly rate that is determined by a remarketing agent on each effective rate date. Per the interest rate swap agreement, the County will receive 67% of 3 month LIBOR plus 0.55% while paying a fixed rate of 4.1355%. The counterparty’s interest rate may not exceed a maximum of 15%. 3 month LIBOR at 12/31/2015 was 0.61270%.

The interest payments on the interest rate swap are calculated based on a notional amount of $43,945,000, which reduces beginning on November 1, 2017, so that the notional amount approximates the principal outstanding on the Series C-59B Notes. The interest rate swap expires on November 1, 2026, consistent with the final maturity of the Series C-59B Notes.

During 2015, the County paid $1,816,497 and received $320,113 related to the swap.

As of December 31, 2015 and 2014, the swap had a fair value of ($6,465,713) and ($7,011,832), respectively. The current period change in market value of $546,119 for the interest rate swap accounted for as a hedge is recorded on the statement of net assets as a deferred outflow. The fair market value of the interest rate swap of December 31, 2015 is reported on the statement of net assets as a swap liability. The mark to market value is an estimated net present value of the expected cash flows calculated using relevant mid-market data inputs and based on the assumption of no unusual market conditions or forced liquidation.

The County has the ability to early terminate the swap and to cash settle the transaction on any business day by providing at least two business days written notice to the counterparty. Evidence that the County has sufficient funds available to pay any amount payable to the counterparty must be provided at the time notice is given. At early termination, the County will be required to pay or receive a settlement amount which is comprised of the market value of the terminated transaction based on market quotations and any amounts accrued under the contract.

Through the use of derivative instruments such as this interest rate swap, the County is exposed to a variety of risks, including credit risk, interest rate risk, termination risk, market-access risk, and basis risk.

Credit risk is the risk that a counterparty will not fulfill its obligations. The interest rate swap counterparty is rated A- by Standard and Poor’s, a nationally recognized statistical rating organization. If the counterparty failed to perform according to the terms of the interest rate swap agreement, there is some risk of loss to the County, up to the fair market value of the swap. Performance of the counterparty as it relates to this transaction is guaranteed by the counterparty’s parent company. 2015 County of Allegheny Comprehensive Annual Financial Report 189

Basic Financial Statements

Because the interest rate swap has a negative fair market value, there is no current credit risk to the County. This risk includes the potential for the counterparty to fail to make periodic variable rate payments to the County and the counterparty to fail to make termination payments to the County, if the swaps are terminated and a termination payment is due from the counterparty.

The County has not entered into a master netting arrangement with its counterparty, as there is only one transaction outstanding.

The County does not have an agreement with the counterparty that requires the counterparty to post collateral if certain circumstances exist related to the swap transaction. During the year, no collateral was posted by the counterparty nor had an event of termination occurred.

Interest rate risk is the risk that changes in interest rates will adversely affect the fair values of the County’s financial instruments or the County’s cash flows. The County could be exposed to interest rate risk if long-term interest rates are less than 4.1355%.

Termination risk is the risk that a derivative’s unscheduled end will affect the County’s asset/liability strategy or will present the County with potentially significant unscheduled termination payments to the counterparty. The counterparty to the transaction does not have the ability to voluntarily terminate the interest rate swap; however, the County is exposed to termination risk in the event that the counterparty defaults. The transaction would be considered to be terminated in the event that the counterparty’s credit rating on their long-term unsecured, unenhanced senior debt (not taking into account the guarantee of the parent) is withdrawn, suspended or falls below Baa3 (Moody’s) or BBB- (S&P).

Basis risk is the risk that arises when variable interest rates on a derivative and an associated bond or other interest-paying financial instrument are based on different indexes. The County is not subject to basis risk as the interest index on the variable rate arm of the swap is based on the same index (67% 3-month LIBOR plus 0.55%) as the variable interest rate on the Series C-59B Notes.

Rollover risk is the risk that a derivative associated with the County’s debt does not extend to the maturity of that debt. When the derivative terminates, the associated debt will no longer have the benefit of the derivative. The County is not exposed to rollover risk as the swap agreement terminates on November 1, 2026 which is the same day as the last payment is due on the Series C-59B Notes.

Allegheny County Airport Authority

ACAA is a party to two forward delivery agreements. The agreements require the counterparties to deposit securities in certain ACAA's debt service and debt service reserve trust accounts and provide ACAA with a guaranteed rate of return. The securities that are deposited into these accounts are timed to mature prior to scheduled debt service payment dates on the associated revenue bonds.

The agreements allow ACAA to earn a guaranteed fix rate of return over the life of the investments, in excess of a rate that would otherwise be feasible by investing in securities with a shorter term.

The general terms of each agreement are set forth below: 190 2015 County of Allegheny Comprehensive Annual Financial Report

Basic Financial Statements

Effective Fair Value Date of Termination Scheduled Guaranteed at Series Agreement Date Amount Rate 12-31-2015

2001 Debit Service Reserve Account 10-04-2001 07-01-2022 $ 8,329,078 4.7200% $ 1,246,061 2010 Bond Account 09-01-2000 01-01-2018 453,611 5.6869% 162,556 $ 1,408,617

The fair values of the Agreements are based on the value of the future discounted cash flows expected to be received over the life of the agreement relative to an estimate of discounted cash flows that could be received over the same term based on current market conditions. As the agreements are effective hedging instruments, the offsetting balances are reflected as deferred inflows. The fair value of the agreements increased $197,925 for the year ended December 31, 2015.

Credit risk - ACAA is either holding cash or an approved security within certain debt service reserve funds. None of the of the principal amount of an investment is at risk to the credit of the counterparty. Should the counterparty default, ACAA maximum exposure is the positive termination value, if any, related to these agreements.

Interest Rate Risk - The fair market value of the agreements is expected to fluctuate over the life of the agreements in response to changes in interest rates. ACAA does not have a formally adopted policy related to interest rate risk on the agreements.

Termination Risk - ACAA or the counterparties may terminate the agreements if the other party fails to perform under the terms of the contract. If the agreements have a negative fair value at the time of termination, ACAA would be liable to the counterparty for a payment equivalent to the fair market value of the instrument at the time of termination. 2015 County of Allegheny Comprehensive Annual Financial Report 191

Required Supplementary Information

REQUIRED SUPPLEMENTARY INFORMATION

In accordance with Governmental Accounting Standards Board Statement No. 34, the following Budgetary Comparison Schedule for the General Fund's legally adopted annual budget is presented as required supplementary information. 192 2015 County of Allegheny Comprehensive Annual Financial Report

Required Supplementary Information 2015 County of Allegheny Comprehensive Annual Financial Report 193

Required Supplementary Information

Exhibit 12

COUNTY OF ALLEGHENY, PENNSYLVANIA Budgetary Comparison Schedule General Fund Year Ended December 31, 2015

Budget Variance to Original Final Final Budget Budget Actual Budget

Revenues: Property taxes $ 283,687,000 283,687,000 287,031,512 3,344,512 Sales and use tax 46,373,000 46,373,000 47,559,039 1,186,039 Hotel tax 5,290,000 5,290,000 4,225,196 (1,064,804) Gaming local share assessment 5,630,000 5,630,000 5,494,366 (135,634) Licenses and permits 2,885,800 2,885,800 2,774,956 (110,844) Federal revenues 86,872,239 86,872,239 81,771,508 (5,100,731) State revenues 184,892,697 184,892,697 184,844,858 (47,839) Local government units revenues 19,232,800 19,232,800 19,233,120 320 Charges for services and facilities 80,626,000 80,626,000 81,671,674 1,045,674 Fines and forfeitures 4,670,000 4,670,000 4,085,661 (584,339) Interest earnings 259,940 259,940 475,033 215,093 Miscellaneous 3,448,961 3,448,961 3,110,401 (338,560)

Total revenues 723,868,437 723,868,437 722,277,324 (1,591,113)

Expenditures: Current: General government 199,113,848 200,427,048 194,140,820 (6,286,228) Public safety 104,471,200 104,283,244 103,445,492 (837,752) Public works 18,269,364 18,337,766 17,717,368 (620,398) Health and welfare 344,860,627 344,755,812 335,388,486 (9,367,326) Culture and recreation 15,273,804 15,910,240 15,268,098 (642,142) Education 24,314,369 24,314,369 24,314,369 - Economic development 7,755,717 7,755,717 7,142,838 (612,879)

Total expenditures 714,058,929 715,784,196 697,417,471 (18,366,725)

Excess of revenues over expenditures 9,809,508 8,084,241 24,859,853 16,775,612

Other financing sources (uses): Transfers in 1,750,000 1,750,000 1,687,644 (62,356) Transfers out (11,559,508) (11,559,508) (16,468,017) (4,908,509)

Total other financing uses (9,809,508) (9,809,508) (14,780,373) (4,970,865)

Net change in fund balances - (1,725,267) 10,079,480 11,804,747

Fund balances at beginning of year 59,646,871 59,646,871 59,646,871 -

Fund balances at end of year $ 59,646,871 57,921,604 69,726,351 11,804,747

See notes to required supplementary information. 194 2015 County of Allegheny Comprehensive Annual Financial Report

Required Supplementary Information

Notes to the Required Supplementary Information

(1) Budgetary Data

The County’s 2015 comprehensive fiscal plan, which includes the annual appropriated budgets reflected in the supplemental financial statements, was adopted for the primary government as outlined below based upon provisions of the County’s Home Rule Charter.

The County Manager prepared the 2015 comprehensive fiscal plan, consisting of the 2015 operating budget and capital budget, a two-year projected operating budget, a five-year capital improvement plan, a grants and special revenues budget, a trust and agency budget and a budget message. The operating budget included proposed expenditures and estimated revenues for the General Fund, the Liquid Fuel and Transportation Tax Fund (Special Revenue Funds) and the Debt Service Fund. The budgets for the capital, other special revenue (Human Service and County Grant Funds) and trust and agency funds were adopted on a project basis that covers the life of the project.

No later than 75 days before the end of the year, the Chief Executive must appear before County Council to present the budget message and to submit the fiscal plan. County Council must hold a minimum of two public hearings on the proposal to obtain taxpayers' comments.

No later than 25 days before the end of the fiscal year, the Council must adopt, by resolution, a balanced operating and capital budget for the fiscal year 2016 and established a property tax millage rate for the coming fiscal year. Before adoption, Council is able to add, delete, increase or decrease any appropriation item.

Budgeted appropriations can be amended to the extent that additional, expendable financial resources become available. Only the appropriations for the operating budget lapse at year-end. Previous year encumbrances for all budgets are reappropriated.

The Chief Executive is able to transfer up to 20% of any unencumbered operating appropriation balance within the same department during the last four months of the year, upon notification of County Council. Upon the recommendation of the Chief Executive, County Council, by resolution, could make transfers within and between departments and agencies or to any new account at any time.

Bill No. 8628-14 established 2015’s Operating Budget at $839,170,000, of which $725,618,437 is for the General Fund, including other financing uses of $11,559,508.

The 2015 operating budget was adopted using the modified accrual basis of accounting, and revenues and expenditures are presented in accordance with the accounting principles generally accepted in the United States. Legal control over expenditures was exercised by total budget, by fund, by department and by character of expenditure.

(2) Legal Compliance

Adopted Budget

In 2015, no Department incurred expenditures that exceeded budget. 2015 County of Allegheny Comprehensive Annual Financial Report 195

Required Supplementary Information

Exhibit 13

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Changes in the County's Net Pension Liability And Related Ratios December 31, 2015

2015 2014

Total pension liability Service cost $ 30,573,729 34,628,592 Interest 106,192,763 98,256,438 Changes of benefit terms 8,150,316 - Differences between expected and actual experience (1,277,131) - Changes of assumptions 9,448,604 (218,138,548) Benefit payments, including refunds of employee contributions (91,468,361) (83,481,880) Net change in total pension liability 61,619,920 (168,735,398) Total pension liability - beginning 1,389,200,839 1,557,936,237 Total pension liability - ending (a) $ 1,450,820,759 1,389,200,839

Plan fiduciary net position Contributions - employer $ 32,925,519 29,830,945 Contributions - employee 33,151,939 30,170,618 Net investment income 11,081,867 35,993,408 Benefit payments, including refunds of employee contributions (91,468,361) (83,481,880) Administrative expense (1,325,422) (1,274,058) Net change in plan fiduciary net position (15,634,458) 11,239,033

Plan fiduciary net position - beginning 837,083,113 825,844,080 Plan fiduciary net position - ending (b) $ 821,448,655 837,083,113

County's net pension liability - ending (a) - (b) $ 629,372,104 552,117,726

Split of Net Pension Liability ACAA $ 48,915,429 51,686,847 County of Allegheny 580,456,675 500,430,879 $ 629,372,104 552,117,726

Plan fiduciary net position as a percentage of the total pension liability 56.62% 60.26%

Covered-employee payroll $ 350,743,858 337,015,597 County's net pension liability as a percentage of covered- employee payroll 179.44% 163.83%

Notes to Schedule:

Changes of assumptions 2015. Assumption change at December 31, 2015 - The beginning of period Total Pension Liability (TPL) was based on a discount rate of 7.75%. Retirement Rates and Termination Rates were changed based upon recent plan experience. Period (number of years) of projected benefit payments: Discounted at LTRR: All years (i.e., no depletion date) Discounted at MBR: None

Benefit changes. For employees hired or re-hired on or after February 21, 2014 the vesting changed from 8 to 10 years, the service requirement from 20 to 25 years and the final average salary is the monthly average of the highest 48 months of compensation of the last eight years of service and overtime compensation is limited to 10% of base pay. The Retirement board changed the combined employee/employer contribution rate (adopted November 2014) from 17% to 18%, so at December 31, 2014 there is no projected depletion date and the discount rate is equal to the LTRR (=7.75%).

* Reporting and Measurement date is December 31, 2015.

Note: This schedule is being prepared prospectively with GASB 68. 196 2015 County of Allegheny Comprehensive Annual Financial Report

Required Supplementary Information

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of County Contributions Last Ten Years

2015 2014 2013 2012

Statutory required contribution $ 32,925,519 29,830,945 27,587,089 27,224,149 Contributions in relation to the actuarially determined contribution 32,925,519 29,830,945 27,587,089 27,224,149 Contribution deficiency (excess) $ - - - -

Covered-employee payroll* $ 350,743,858 337,015,597 339,905,490 340,880,866 Contributions as a percentage of covered- employee payroll 9.39% 8.85% 8.12% 7.99%

Annual Money-Weighted Rate of Return, Net of Investment 4.40%

Notes to Schedule * Prospective estimate of payroll as of the respective January 1 actuarial valuation date. Valuation date: January 1, 2015 Methods and assumptions used to determine contribution rates: Interest Rates Discount Rate 7.75%, net of investment expenses Plan Funding 7.75%, net of investment expenses Mortality RP-2000 Combined Table (Base Year = 2010), with blue-collar adjustments and with Healthy generational projections for future improvements by scale AA. Disabled RP-2000 Disabled Mortality Table. No future mortality improvement. General Inflation 2.75% per annum Turnover Non-uniformed 2003 SOA Pension Plan Termination and Retirement Study, unisex, select and ultimate Uniformed 70% of the non-uniformed rates Salary Scale Salaries are assumed to increase by age categories. This assumption includes GSA as well as merits, grade and promotion-related adjustments ranging from 3.25% to 5.75%. See Note 10. Asset Valuation Market value Actuarial cost method Entry age normal Amortization Method /Period Straight-line amortization over a closed period equal to the average of the expected remaining service lives, 5.9 years Discount Rate 7.75%, net of investment expenses

Other information: Benefit changes. For employees hired or re-hired on or after February 21, 2014 the vesting changed from 8 to 10 years, the service requirement from 20 to 25 years and the final average salary is the monthly average of the highest 48 months of compensation of the last eight years of service and overtime compensation is limited to 10% of base pay. 2015 County of Allegheny Comprehensive Annual Financial Report 197

Required Supplementary Information

Exhibit 14 COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of County Contributions Last Ten Years

2011 2010 2009 2008 2007 2006

23,406,380 20,115,911 19,256,793 18,577,232 18,415,555 17,610,617

23,406,380 20,115,911 19,256,793 18,577,232 18,415,555 17,610,617 ------

357,290,379 340,878,581 326,803,000 317,380,000 291,731,000 277,004,000

6.55% 5.90% 5.89% 5.85% 6.31% 6.36% 198 2015 County of Allegheny Comprehensive Annual Financial Report

Required Supplementary Information

2015 County of Allegheny Comprehensive Annual Financial Report 199

Required Supplementary Information

Exhibit 15

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Changes in the PAT's Net Pension Liability and Related Ratios December 31, 2015

Total pension liability Service cost $ 15,731,584 Interest 74,121,243 Benefit payments, including refunds of employee contributions and certain healthcare expenses (75,029,231) 2,031,076 Net change in total pension liability 16,854,672 Total pension liability - beginning 1,046,171,042 Total pension liability - ending (a) $ 1,063,025,714

Plan fiduciary net position Plan member contributions $ 14,329,767 Employer actuarially recommended contributions 26,176,245 Net investment income 45,546,595 Benefit payments, including refunds of employee contributions and certain healthcare expenses (75,029,231) Employer reimbursement for healthcare expenses 2,031,076 Administrative expense (751,787) Net change in plan fiduciary net position 12,302,665

Plan fiduciary net position - beginning 772,796,314 Plan fiduciary net position - ending (b) $ 785,098,979

County's net pension liability - ending (a) - (b) $ 277,926,735

Plan fiduciary net position as a percentage of the total pension liability 73.86%

Covered-employee payroll* $ 136,492,015 County's net pension liability as a percentage of covered- employee payroll 203.62%

Note: This schedule is being prepared prospectively with GASB 68. 200 2015 County of Allegheny Comprehensive Annual Financial Report

Required Supplementary Information

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of PAT Contributions Last Ten Years

2015 2014 2013 2012 Actuarially determined contribution: ATU $ 20,047,266 17,602,620 13,984,742 23,546,814 IBEW 815,889 848,189 774,765 653,215 NonRep 5,313,090 6,100,903 4,675,158 5,254,033 26,176,245 24,551,712 19,434,665 29,454,062

Contributions in relation to the actuarially determined contribution ATU 20,047,266 17,602,620 13,984,742 23,546,814 IBEW 815,889 848,189 774,765 653,215 NonRep 5,313,090 6,100,903 4,675,158 5,254,033 26,176,245 24,551,712 19,434,665 29,454,062 Contribution deficiency (excess) $ - - - -

Covered-employee payroll: ATU $ 123,363,442 120,440,624 121,432,288 122,817,450 IBEW 2,130,900 2,267,698 2,404,723 2,775,982 NonRep 10,997,673 11,821,211 14,030,280 16,665,376 $ 136,492,015 134,529,533 137,867,291 142,258,808

Contributions as a percentage of covered- employee payroll 19.18% 18.25% 14.10% 20.70%

Notes to Schedule Valuation date: Actuarial calculations are performed each year as of January 1. Contributions noted above are as of each pension plan's calendar year ending December 31 using actuarially determined contribution rates calculated as of January 1, one year prior to the end of the calendar year in which contributions are reported.

Methods and assumptions used to determine contribution rates: Actuarial cost method Individual Entry Age Normal Amortization method Level-dollar monthly payments Remaining amortization period 15 years Asset valuation method Smoothed market value (with phase-in) Inflation 2.50% Salary increases 3.5% (with exception for years coved by the ATU collective bargaining agreement) Investment rate of return 7.25% IBEW and NonRep (8.00% for 2013 and prior) 8.00% ATU (8.50% for 2008 and prior) Mortality For healthy lives, mortality is in accordance with the RP-2000 Combined Mortality Table adjusted for white collar employees with fully-generational projected mortality improvement under Scale AA. For disabled lives, mortality is in accordance with the disabled mortality table specified in IRS Revenue Ruling 96-7 for disabilities occurring prior to 1995.

The NonRep plan was closed to new participants effective September 1, 2011. The IBEW plan was closed to new participants effective January 1, 2012. 2015 County of Allegheny Comprehensive Annual Financial Report 201

Required Supplementary Information

Exhibit 16 COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of PAT Contributions Last Ten Years

2011 2010 2009 2008 2007 2006

17,480,911 23,346,064 9,908,915 12,622,026 10,145,028 7,905,842 477,378 679,059 381,249 1,092,732 519,027 345,650 4,734,816 5,037,719 3,687,745 4,471,985 3,767,772 not available 22,693,105 29,062,842 13,977,909 18,186,743 14,431,827 8,251,492

17,480,911 23,346,064 9,908,915 12,622,026 10,145,028 7,905,842 477,378 679,059 381,249 1,092,732 519,027 345,650 4,734,816 5,037,719 3,687,745 4,471,985 3,767,772 not available 22,693,105 29,062,842 13,977,909 18,186,743 14,431,827 8,251,492 ------

128,613,838 125,199,519 124,938,277 123,451,501 123,273,413 121,566,144 2,902,075 2,850,839 2,815,850 2,978,603 3,222,452 3,128,439 17,976,884 17,457,219 16,330,872 16,057,672 16,907,131 not available 149,492,797 145,507,577 144,084,999 142,487,776 143,402,996 124,694,583

15.18% 19.97% 9.70% 12.76% 10.06% 6.62% 202 2015 County of Allegheny Comprehensive Annual Financial Report

Required Supplementary Information

Exhibit 17 COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Changes in the CCAC's Net Pension Liabilities and Related Ratios Last 2 Years

Schedule of CCAC's Proportionate Share of the Net Pension Liability Pennsylvania State Employees' Retirement System Pension Plan 2015 2014

CCAC's proportion of the net pension liability (asset) 0.00935556% 0.01206935% CCAC's proportionate share of the net pension liability (asset) $ 1,389,994 1,649,081 CCAC's covered-employee payroll 584,094 425,448 CCAC's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll 237.97% 387.61% Plan fiduciary net position as a percentage of the total pension liability 64.8% 66.7%

Schedule of CCAC SERS Contributions

Contractually required contribution $ 105,687 92,510 Contributions in relation to the contractually required contribution 105,687 92,510 CCAC's covered-employee payroll 584,094 425,448 Contributions as a percentage of covered-employee payroll 18.09% 21.74%

Schedule of CCAC's Proportionate Share of the Net Pension Liability Public School Employees' Retirement System 2015 2014

CCAC's proportion of the net pension liability (asset) 0.0067% 0.0071% CCAC's proportionate share of the net pension liability (asset) $ 2,652,000 2,907,000 Commonwealth of Pennsylvania's proportionate share of the net pension liability (asset) 2,652,000 2,907,000 Total proportionate share of the net pension liability (asset) $ 5,304,000 5,814,000

CCAC's covered-employee payroll 858,059 908,725 CCAC's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll 309.07% 319.90% Plan fiduciary net position as a percentage of the total pension liability 57.24% 54.50%

Schedule of CCAC PSERS Contributions

Contractually required contribution $ 145,378 155,021 Contributions in relation to the contractually required contribution 145,378 155,021 CCAC's covered-employee payroll 858,059 908,725 Contributions as a percentage of covered-employee payroll 16.92% 17.06%

Notes to Schedule:

Information prior to 2014 is not readily available.

Changes of benefit terms. There were no changes in benefit terms affecting SERS and PSERS plans for the plan years ended December 31, 2014 and June 30,2014, respectively. Changes of assumptions. There were no changes in assumptions or plan amendments affecting SERS and PSERS plans for the plan years ended December 31, 2014 and June 30,2014, respectively.

Note: This schedule is being prepared prospectively with GASB 68. 2015 County of Allegheny Comprehensive Annual Financial Report 203

Supplementary Information

SUPPLEMENTARY INFORMATION 204 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information 2015 County of Allegheny Comprehensive Annual Financial Report 205

Supplementary Information

COMBINING OTHER GOVERNMENTAL FUNDS FINANCIAL STATEMENTS

Combines the County's Liquid Fuel Tax Special Revenue Fund, Transportation Special Revenue Fund and Debt Service Fund. 206 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information 2015 County of Allegheny Comprehensive Annual Financial Report 207

Supplementary Information

Exhibit 18

COUNTY OF ALLEGHENY, PENNSYLVANIA Combining Balance Sheet Other Governmental Funds December 31, 2015

Transportation Liquid Fuel Debt Service Fund Tax Fund Fund Totals Assets Cash and short-term investments $ 12,521,145 - - 12,521,145 Restricted cash and short-term investments - 11,377 3,131,995 3,143,372 Delinquent property taxes receivable, net - - 1,636,186 1,636,186 Liened property taxes receivable, net - - 6,105,516 6,105,516 Due from other funds - - 178,365 178,365 Due from other governments - - 121,316 121,316 Alcoholic beverage tax receivable 3,020,901 - - 3,020,901 Rental vehicle tax receivable 569,167 - - 569,167 Accrued penalty and interest receivable - - 28,536 28,536 Accrued interest receivable - 354 767 1,121

Total assets $ 16,111,213 11,731 11,202,681 27,325,625

Liabilities Vouchers payable $ - - 482 482 Accrued interest payable - - 1,759 1,759 Due to other funds - - 136,839 136,839 Tax refunds payable - - 180,821 180,821 Matured bonds payable - - 113,868 113,868

Total liabilities - - 433,769 433,769

Deferred Inflows of Resources Unavailable revenue - property taxes - - 7,620,612 7,620,612

Fund balances Restricted for: Debt Service on energy bonds - - 2,760,294 2,760,294 Road maintenance expenditures - 11,731 - 11,731 Transit system 16,111,213 - - 16,111,213 Assigned to: Debt Service - - 388,006 388,006

Total fund balances 16,111,213 11,731 3,148,300 19,271,244

Total liabilities, deferred inflows of resources, and fund balances $ 16,111,213 11,731 11,202,681 27,325,625 208 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit 19

COUNTY OF ALLEGHENY, PENNSYLVANIA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds Year Ended December 31, 2015

Transportation Liquid Fuel Debt Service Fund Tax Fund Fund Totals

Revenues: Property taxes $ - - 55,792,852 55,792,852 Alcoholic beverage tax 37,860,000 - - 37,860,000 Rental vehicle tax 9,737,341 - - 9,737,341 Federal revenues - - 299,681 299,681 State revenues - 4,056,556 81,669 4,138,225 Local governmental units revenues - - 15,606 15,606 Interest earnings - 1,885 57,761 59,646

Total revenues 47,597,341 4,058,441 56,247,569 107,903,351

Expenditures: Transportation 29,082,188 - - 29,082,188 Public works - 4,046,946 - 4,046,946 Debt service: Principal - - 34,562,500 34,562,500 Interest - - 37,954,783 37,954,783

Total expenditures 29,082,188 4,046,946 72,517,283 105,646,417

Excess (deficiency) of revenues over expenditures 18,515,153 11,495 (16,269,714) 2,256,934

Other financing sources (uses): Transfer in - - 15,315,448 15,315,448 Transfer out (17,198,318) - - (17,198,318)

Total other financing sources (uses) (17,198,318) - 15,315,448 (1,882,870)

Net change in fund balances 1,316,835 11,495 (954,266) 374,064

Fund balances at beginning of year 14,794,378 236 4,102,566 18,897,180

Fund balances at end of year $ 16,111,213 11,731 3,148,300 19,271,244 2015 County of Allegheny Comprehensive Annual Financial Report 209

Supplementary Information

GENERAL FUND

The General Fund is the primary operating fund of the County. It is used to account for all financial resources except those accounted for in other funds. 210 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information 2015 County of Allegheny Comprehensive Annual Financial Report 211

Supplementary Information

Exhibit A-1 (Page 1 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Balance Sheet General Fund December 31, 2015 With Comparative Totals for December 31, 2014

2015 2014 Assets Cash and short-term investments $ - 26,093,278 Delinquent property taxes receivable, net of $1,160,213 allowance for uncollectible property taxes in 2015 and $1,086,574 in 2014 8,352,432 8,696,959 Liened property taxes receivable, net of $6,205,534 allowance for uncollectible property taxes in 2015 and $6,445,880 in 2014 21,305,587 19,189,533 Sales tax receivable 9,152,545 8,191,342 Due from other funds: Liquid Fuel Tax Fund - 79,591 Debt Service Fund 136,839 1,777,685 Risk Management Fund 102,643 114,484 County Capital Projects Fund 6,449,895 6,378,863 Human Services Grants Fund 6,985,606 6,379,644 County Grants Fund 4,625,913 2,142,988 18,300,896 16,873,255 Due from other governments: Federal 59,160,021 52,957,201 State 95,078,595 22,786,499 154,238,616 75,743,700 Less: allowance for doubtful accounts (1,589,554) (1,467,914) 152,649,062 74,275,786 Other accounts receivable 14,433,009 15,175,209 Less: allowance for doubtful accounts (3,220,046) (2,795,343) 11,212,963 12,379,866 Due from component units 1,259,053 1,766,150 Accrued penalty and interest receivable 127,252 402,309 Accrued interest receivable 21,675 26,984

Total assets $ 222,381,465 167,895,462 212 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit A-1 (Page 2 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Balance Sheet General Fund December 31, 2015 With Comparative Totals for December 31, 2014

2015 2014

Liabilities Vouchers payable $ 49,737,416 3,351,388 Accrued payroll 5,337,724 13,537,340 Payroll withholdings 1,780,850 1,743,841 Due to other funds: Liquid Fuel Tax Fund - 77,796 Debt Service Fund 178,365 197,451 Risk Management Fund 110,286 139,892 County Capital Projects Fund 17,516,066 5,901,412 Human Services Grants Fund 3,218,360 5,336,737 County Grants Fund 1,283,493 3,336,637 22,306,570 14,989,925 Tax refunds payable 923,058 604,802 Accrued liabilities 36,421,012 38,827,777 Due to other governments: State 238,858 219,803 Local Government Unit 120,292 259,496 Unearned revenue 5,078,176 4,032,148 Accrued pension costs 950,694 2,220,092 Accrued workers' compensation 406,405 410,506 Accrued unemployment compensation 169,461 164,980

Total liabilities 123,470,516 80,362,098

Deferred Inflows of Resources Unavailable revenue - property taxes 29,184,598 27,886,493

Fund balance Assigned to: Purchases on order 1,206,670 1,725,267 2013 Board of Viewer tax appeals 1,020,968 2,500,000 2014 Board of Viewer tax appeals 1,521,754 3,600,000 Future healthcare cost 24,000,000 13,000,000 IRS settlement 500,000 500,000 Unassigned 41,476,959 38,321,604

Total fund balance 69,726,351 59,646,871

Total liabilities, deferred inflows of resources, and fund balances $ 222,381,465 167,895,462 2015 County of Allegheny Comprehensive Annual Financial Report 213

Supplementary Information

Exhibit A-2 (Page 1 of 3)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015 2014 Final Budget Actual Variance Actual Revenues: Property taxes: Current $ 268,872,000 273,841,428 4,969,428 270,345,150 Delinquent 13,646,000 12,237,422 (1,408,578) 10,946,284 Liened 3,106,000 3,937,279 831,279 3,579,554 Interest and penalty 2,409,000 2,311,011 (97,989) 2,476,158 Payment in lieu of taxes 450,000 458,886 8,886 486,582 Tax refunds (4,796,000) (5,754,514) (958,514) (8,293,525) 283,687,000 287,031,512 3,344,512 279,540,203 Sales and use tax 46,373,000 47,559,039 1,186,039 46,110,625 Hotel rental tax 5,290,000 4,225,196 (1,064,804) 3,129,767 Gaming local share assessment 5,630,000 5,494,366 (135,634) 5,538,735 340,980,000 344,310,113 3,330,113 334,319,330 Licenses and permits: Firearm licenses 352,900 372,777 19,877 332,925 Hunting, fishing and dog licenses 178,000 261,762 83,762 174,623 Road opening permits 210,000 99,309 (110,691) 108,572 Pole & Wire Privilege - 21,207 21,207 21,207 Health licenses and permits - food 1,660,000 1,613,998 (46,002) 1,681,092 Health licenses and permits - housing 275,000 230,949 (44,051) 230,729 Flammable liquid permits 102,000 18,440 (83,560) 20,475 Small games of chance permits 75,000 85,925 10,925 84,845 Bingo permits 17,000 15,075 (1,925) 15,815 Other licenses and permits 15,900 55,514 39,614 28,285 2,885,800 2,774,956 (110,844) 2,698,568 Federal revenues: Maintenance of prisoners 2,000,000 1,505,954 (494,046) 2,273,622 Skilled and intermediate nursing care 32,438,839 29,094,320 (3,344,519) 30,119,691 Medicare 6,625,000 5,537,216 (1,087,784) 5,052,552 Title XX - Social Services 1,181,700 1,181,711 11 1,182,110 Title IV - Foster Care 150,000 275,791 125,791 134,021 Title IV-B - Adoption Services 874,100 874,096 (4) 874,330 Title IV-E - Child Placement 21,163,600 21,141,505 (22,095) 28,534,501 Title IV-E - Adoption Assistance 13,381,700 13,187,567 (194,133) 8,259,254 Title IV-E - Independent Living 444,600 444,578 (22) 350,026 Temporary assistance to needy families 7,373,900 7,425,923 52,023 6,956,626 Juvenile Court reimbursement 935,000 931,901 (3,099) 932,125 Miscellaneous 303,800 170,946 (132,854) 221,795 86,872,239 81,771,508 (5,100,731) 84,890,653 State revenues: Court operations 2,955,800 2,953,498 (2,302) 2,953,498 Juvenile probation 2,169,600 1,764,123 (405,477) 991,825 Adult probation 420,000 405,319 (14,681) 419,680 214 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit A-2 (Page 2 of 3)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Final Budget Actual Variance 2014 Actual

Lunch reimbursement 100,000 97,784 (2,216) 66,483 Public utility tax 430,500 416,905 (13,595) 446,346 Health department 8,742,800 7,853,566 (889,234) 7,614,220 Jurors fees reimbursement 85,000 47,890 (37,110) 56,455 Skilled and intermediate nursing care 26,540,869 26,270,704 (270,165) 24,643,384 Medical assistance paid prescriptions 5,900,000 6,138,655 238,655 5,192,537 Act 148 - Children, Youth and Family Services 120,570,736 123,833,222 3,262,486 117,665,576 Act 148 - Special Grant Initiative 13,343,600 12,212,839 (1,130,761) 11,919,383 Miscellaneous 3,633,792 2,850,353 (783,439) 3,846,854 184,892,697 184,844,858 (47,839) 175,816,241 Local governmental units revenues: Regional Asset District contractual revenue 19,232,800 19,233,120 320 18,855,700 Miscellaneous - - - 266,548 19,232,800 19,233,120 320 19,122,248 Charges for services and facilities: General government 35,915,200 35,993,190 77,990 31,915,811 Public safety 11,254,000 10,122,810 (1,131,190) 10,011,403 Health 3,018,800 3,210,427 191,627 3,031,102 Recreation 3,511,700 3,614,900 103,200 3,457,467 Real estate - - - 1,843,545 Election 8,000 12,656 4,656 1,874 Use of property and equipment 2,031,600 2,075,883 44,283 2,147,941 Patient income 7,580,000 8,743,411 1,163,411 7,463,580 Collection from parents and guardians 1,226,900 725,206 (501,694) 873,967 Administrative fees 1,099,800 1,091,584 (8,216) 1,044,849 Private insurance 2,200,000 5,085,486 2,885,486 4,841,812 Commercial insurance 12,500,000 10,920,665 (1,579,335) 11,857,500 Miscellaneous 280,000 75,456 (204,544) 200,058 80,626,000 81,671,674 1,045,674 78,690,909 Fines and forfeitures: District courts 4,500,000 3,835,699 (664,301) 3,947,444 Miscellaneous 170,000 249,962 79,962 78,366 4,670,000 4,085,661 (584,339) 4,025,810 Interest earnings 259,940 475,033 215,093 355,268 Miscellaneous revenues: Other receipts 3,448,961 3,110,401 (338,560) 12,290,270 3,448,961 3,110,401 (338,560) 12,290,270

Total revenues 723,868,437 722,277,324 (1,591,113) 712,209,297 2015 County of Allegheny Comprehensive Annual Financial Report 215

Supplementary Information

Exhibit A-2 (Page 3 of 3)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Final Budget Actual Variance 2014 Actual

Expenditures: Current: General government 200,427,048 194,140,820 (6,286,228) 182,611,629 Public safety 104,283,244 103,445,492 (837,752) 99,065,885 Public works 18,337,766 17,717,368 (620,398) 21,911,263 Health and welfare 344,755,812 335,388,486 (9,367,326) 327,671,030 Culture and recreation 15,910,240 15,268,098 (642,142) 9,923,512 Education 24,314,369 24,314,369 - 23,840,264 Economic development 7,755,717 7,142,838 (612,879) 7,355,818 715,784,196 697,417,471 (18,366,725) 672,379,401

Total expenditures 715,784,196 697,417,471 (18,366,725) 672,379,401

Excess of revenue over expenditures 8,084,241 24,859,853 16,775,612 39,829,896

Other financing sources (uses): Operating transfers in 1,750,000 1,687,644 (62,356) 3,242,185 Operating transfers out (11,559,508) (16,468,017) (4,908,509) (18,550,965)

Total other financing uses (9,809,508) (14,780,373) (4,970,865) (15,308,780)

Net change in fund balance (1,725,267) 10,079,480 11,804,747 24,521,116

Fund balance at beginning of year 59,646,871 59,646,871 - 35,125,755

Fund balance at end of year $ 57,921,604 69,726,351 11,804,747 59,646,871 216 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 1 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final 2014 Budget Reappropriations Amendments/Transfers Budget Actual Variance Actual

General Government:

County Executive: Personnel $ 291,828 - - 291,828 258,925 (32,903) 254,565 Fringe Benefits 106,706 - - 106,706 91,366 (15,340) 88,214 Services 16,540 - - 16,540 13,059 (3,481) 16,676 Supplies 2,100 258 - 2,358 2,106 (252) 3,179 Materials 88 - - 88 - (88) - Repairs and Maintenance 400 - - 400 - (400) - Minor Equipment 1,000 - - 1,000 - (1,000) 458 Expenditure Recovery (3,630) - - (3,630) (13,819) (10,189) (5,016) 415,032 258 - 415,290 351,637 (63,653) 358,076

County Council: Personnel 711,134 - - 711,134 628,282 (82,852) 578,699 Fringe Benefits 201,146 - - 201,146 156,516 (44,630) 151,356 Services 225,325 - (30,000) 195,325 107,096 (88,229) 101,933 Supplies 21,600 1,299 10,000 32,899 18,794 (14,105) 19,714 Materials 500 - - 500 - (500) - Repairs and Maintenance 1,750 - - 1,750 - (1,750) 210 Minor Equipment 20,000 - 20,000 40,000 13,364 (26,636) 3,278 Expenditure Recovery (8,000) - - (8,000) (4,018) 3,982 (8,971) 1,173,455 1,299 - 1,174,754 920,034 (254,720) 846,219

County Manager: Personnel 848,050 - (40,000) 808,050 743,257 (64,793) 792,792 Fringe Benefits 281,037 - - 281,037 216,818 (64,219) 244,332 Services 34,400 - (99) 34,301 31,806 (2,495) 16,028 Supplies 5,200 704 1,699 7,603 7,596 (7) 3,311 Minor Equipment 1,000 - 38,400 39,400 26,487 (12,913) - Expenditure Recovery (17,000) - - (17,000) (30,569) (13,569) (11,479) 1,152,687 704 - 1,153,391 995,395 (157,996) 1,044,984 Exhibit A-3 (Page 2 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Budget & Finance: Personnel 707,600 - - 707,600 598,362 (109,238) 651,546 Fringe Benefits 218,217 - - 218,217 170,929 (47,288) 184,143 Services 53,708 - 300 54,008 53,973 (35) 51,567 Supplies 4,000 93 - 4,093 3,935 (158) 3,440 Materials 400 - - 400 - (400) -

Repairs and Maintenance 1,700 - - 1,700 228 (1,472) 1,071 Report Financial Annual Comprehensive Allegheny of County 2015 Minor Equipment 3,000 - (300) 2,700 - (2,700) - Expenditure Recovery (9,000) - - (9,000) (11,116) (2,116) (8,006) 979,625 93 - 979,718 816,311 (163,407) 883,761

County Solicitor: Personnel 1,420,163 - 723,558 2,143,721 2,105,800 (37,921) 1,356,751 Fringe Benefits 590,894 - 267,100 857,994 748,599 (109,395) 432,843 Services 409,040 - 33,500 442,540 442,201 (339) 381,171 Supplies 71,100 1,909 (2,500) 70,509 65,409 (5,100) 65,448 Materials 200 - - 200 - (200) -

Repairs and Maintenance 700 - - 700 - (700) - Information Supplementary Minor Equipment 13,600 - (10,000) 3,600 1,453 (2,147) 3,909 Expenditure Recovery (361,357) - (1,011,658) (1,373,015) (1,559,876) (186,861) (371,323) 2,144,340 1,909 - 2,146,249 1,803,586 (342,663) 1,868,799

Law Department Duquesne University Law Library: Services 495,000 - - 495,000 495,000 - 485,000

Public Defender: Personnel 6,398,957 - - 6,398,957 6,347,536 (51,421) 6,102,767 Fringe Benefits 2,566,869 - - 2,566,869 2,294,843 (272,026) 2,222,206 Services 432,300 - - 432,300 403,826 (28,474) 414,340 Supplies 48,000 7,975 - 55,975 43,367 (12,608) 45,593 Repairs and Maintenance 2,000 - - 2,000 535 (1,465) 360 Minor Equipment 2,300 - - 2,300 2,262 (38) 1,706 9,450,426 7,975 - 9,458,401 9,092,369 (366,032) 8,786,972 217 218 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 3 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Minority/Women's Business Enterprise: Personnel 313,366 - 14,000 327,366 327,034 (332) 308,326 Fringe Benefits 112,485 - - 112,485 105,278 (7,207) 99,741 Services 193,754 - (14,000) 179,754 152,215 (27,539) 142,365 Supplies 7,725 - - 7,725 7,024 (701) 7,692 Repairs and Maintenance 2,350 - - 2,350 854 (1,496) 409 Minor Equipment 750 - - 750 58 (692) 1,073 630,430 - - 630,430 592,463 (37,967) 559,606

Human Resources: Personnel 1,005,994 - - 1,005,994 942,650 (63,344) 848,122 Fringe Benefits 373,373 - 30,000 403,373 396,531 (6,842) 338,642 Services 323,215 - (30,000) 293,215 270,047 (23,168) 202,320 Supplies 5,500 26 - 5,526 4,660 (866) 4,493 Minor Equipment 3,000 - - 3,000 362 (2,638) 885 Expenditure Recovery - - - - (46,214) (46,214) (8,585) 1,711,082 26 - 1,711,108 1,568,036 (143,072) 1,385,877

Administrative Services- Administration: Personnel 1,169,734 - (90,750) 1,078,984 1,071,534 (7,450) 1,063,537 Fringe Benefits 484,930 - (5,000) 479,930 410,977 (68,953) 406,968 Services 2,775,827 3,752 (59,700) 2,719,879 2,604,398 (115,481) 2,596,554 Supplies 105,192 20,660 (8,000) 117,852 104,974 (12,878) 96,726 Materials 2,000 - - 2,000 - (2,000) - Repairs and Maintenance 191,350 - 7,500 198,850 193,173 (5,677) 174,041 Minor Equipment 30,500 - (12,000) 18,500 13,520 (4,980) 34,215 Expenditure Recovery (2,610,000) - 1,300 (2,608,700) (2,391,284) 217,416 (2,470,866) 2,149,533 24,412 (166,650) 2,007,295 2,007,292 (3) 1,901,175 Exhibit A-3 (Page 4 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Administrative Services- Property Assessment: Personnel 3,116,550 - (210,300) 2,906,250 2,904,148 (2,102) 2,869,123 Fringe Benefits 1,562,595 - (260,000) 1,302,595 1,302,400 (195) 1,276,973 Services 1,215,265 - (289,000) 926,265 926,115 (150) 1,030,499 Supplies 47,800 1,397 (10,100) 39,097 38,725 (372) 38,354

Materials 1,700 - - 1,700 1,125 (575) - Report Financial Annual Comprehensive Allegheny of County 2015 Repairs and Maintenance 2,500 - - 2,500 2,475 (25) 2,475 Minor Equipment 14,100 - (8,000) 6,100 4,988 (1,112) 8,182 5,960,510 1,397 (777,400) 5,184,507 5,179,976 (4,531) 5,225,606

Administrative Services- Management Information Systems: Personnel 4,328,298 - (103,250) 4,225,048 4,177,799 (47,249) 3,872,227 Fringe Benefits 1,531,613 - (30,000) 1,501,613 1,444,923 (56,690) 1,303,333 Services 1,942,793 10,773 639,600 2,593,166 2,553,858 (39,308) 2,432,733 Supplies 30,000 11,839 (10,000) 31,839 23,702 (8,137) 21,109

Materials ------1,625 Information Supplementary Repairs and Maintenance 440,408 - (140,000) 300,408 272,157 (28,251) 364,225 Minor Equipment 47,000 6,485 (30,000) 23,485 20,506 (2,979) 83,346 Expenditure Recovery (1,912,850) - 404,000 (1,508,850) (1,327,165) 181,685 (1,418,864) 6,407,262 29,097 730,350 7,166,709 7,165,780 (929) 6,659,734

Administrative Services- Purchasing and Supplies: Personnel 402,307 - 16,577 418,884 418,800 (84) 331,265 Fringe Benefits 177,856 - 10,532 188,388 174,787 (13,601) 136,297 Services 102,284 1,375 (65,609) 38,050 24,918 (13,132) 72,588 Supplies 5,400 628 - 6,028 2,078 (3,950) 2,093 Materials 200 - - 200 - (200) - Repairs and Maintenance 300 - - 300 - (300) - Minor Equipment 2,250 - 15,000 17,250 13,458 (3,792) 2,101 690,597 2,003 (23,500) 669,100 634,041 (35,059) 544,344 219 220 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 5 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Administrative Services- Elections: Personnel 1,449,217 - (51,000) 1,398,217 1,372,382 (25,835) 1,398,564 Fringe Benefits 751,054 - (12,000) 739,054 637,870 (101,184) 642,835 Services 2,968,042 - 240,000 3,208,042 3,207,678 (364) 3,156,554 Supplies 43,000 1,881 (3,800) 41,081 40,073 (1,008) 47,715 Materials 1,000 - (1,000) - - - - Repairs and Maintenance 3,000 - - 3,000 2,734 (266) 1,807 Minor Equipment 1,000 - 5,000 6,000 5,250 (750) 821 5,216,313 1,881 177,200 5,395,394 5,265,987 (129,407) 5,248,296

Administrative Services- Marketing and Special Events Personnel 183,510 - - 183,510 170,202 (13,308) - Fringe Benefits 60,595 - - 60,595 48,045 (12,550) - Supplies 460,600 - 90,500 551,100 550,982 (118) - Materials 5,000 1,582 500 7,082 6,762 (320) - Repairs and Maintenance 250 - - 250 - (250) - Minor Equipment 1,500 - (1,000) 500 423 (77) - 711,455 1,582 90,000 803,037 776,414 (26,623) -

Administrative Services- Real Estate Personnel 1,707,987 - - 1,707,987 1,665,528 (42,459) 1,665,763 Fringe Benefits 828,820 - - 828,820 689,935 (138,885) 708,058 Services 129,162 - - 129,162 117,392 (11,770) 118,402 Supplies 19,500 10,064 - 29,564 19,003 (10,561) 16,132 Materials 500 - - 500 - (500) - Repairs and Maintenance 5,000 - - 5,000 4,195 (805) 1,995 Minor Equipment 3,475 - - 3,475 2,686 (789) 2,191 2,694,444 10,064 - 2,704,508 2,498,739 (205,769) 2,512,541 Exhibit A-3 (Page 6 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Non-departmental Operating Expenditures Personnel 800 - 27,000 27,800 27,385 (415) 650 Fringe Benefits 2,206,600 - 345,000 2,551,600 2,549,749 (1,851) 890,200 Services 6,881,699 - (373,800) 6,507,899 5,943,064 (564,835) 6,159,388 Contingency 25,000 - - 25,000 24,150 (850) 23,825

9,114,099 - (1,800) 9,112,299 8,544,348 (567,951) 7,074,063 Report Financial Annual Comprehensive Allegheny of County 2015

Controller: Personnel 4,498,366 - 35,000 4,533,366 4,467,383 (65,983) 4,209,983 Fringe Benefits 1,774,509 - - 1,774,509 1,541,586 (232,923) 1,453,767 Services 429,490 15,846 - 445,336 401,263 (44,073) 471,330 Supplies 42,350 2,416 (10,000) 34,766 28,062 (6,704) 32,959 Materials 1,220 - - 1,220 - (1,220) 44 Repairs and Maintenance 25,080 - - 25,080 12,903 (12,177) 14,420 Minor Equipment 50,500 - (25,000) 25,500 22,562 (2,938) 79,892

Expenditure Recovery (343,600) - - (343,600) (485,628) (142,028) (498,814) Information Supplementary 6,477,915 18,262 - 6,496,177 5,988,131 (508,046) 5,763,581

Medical Examiner: Personnel 5,665,686 - (79,000) 5,586,686 5,538,999 (47,687) 5,264,863 Fringe Benefits 2,095,614 - (50,500) 2,045,114 1,860,969 (184,145) 1,785,031 Services 695,130 - 54,700 749,830 749,805 (25) 753,538 Supplies 492,618 7,614 30,800 531,032 489,108 (41,924) 483,183 Materials 300 - - 300 191 (109) 199 Repairs and Maintenance 195,700 - 44,000 239,700 239,245 (455) 204,241 Minor Equipment 5,500 - - 5,500 4,886 (614) 5,976 9,150,548 7,614 - 9,158,162 8,883,203 (274,959) 8,497,031 221 222 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 7 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

District Attorney: Personnel 11,411,215 - - 11,411,215 11,320,382 (90,833) 10,955,272 Fringe Benefits 4,206,252 - - 4,206,252 3,783,744 (422,508) 3,664,522 Services 1,316,132 7,779 7,100 1,331,011 1,229,615 (101,396) 1,065,364 Supplies 169,000 16,680 (7,100) 178,580 174,177 (4,403) 67,655 Repairs and Maintenance 10,000 - - 10,000 5,485 (4,515) 4,522 Minor Equipment 6,750 96 - 6,846 297 (6,549) 114,902 17,119,349 24,555 - 17,143,904 16,513,700 (630,204) 15,872,237

Court Records- Administration: Personnel 396,732 - 26,000 422,732 422,174 (558) 335,125 Fringe Benefits 101,378 - 24,500 125,878 125,378 (500) 81,506 Services 396,000 - (29,300) 366,700 338,944 (27,756) 338,104 Supplies 64,000 23,578 (24,500) 63,078 58,905 (4,173) 57,073 Materials 1,000 - (360) 640 - (640) 807 Repairs and Maintenance 14,000 - (9,660) 4,340 2,085 (2,255) 10,680 Minor Equipment 1,000 - 13,320 14,320 12,664 (1,656) 430 974,110 23,578 - 997,688 960,150 (37,538) 823,725

Court Records- Civil: Personnel 2,199,198 - - 2,199,198 1,983,590 (215,608) 1,934,995 Fringe Benefits 964,713 - - 964,713 782,342 (182,371) 724,338 3,163,911 - - 3,163,911 2,765,932 (397,979) 2,659,333 Exhibit A-3 (Page 8 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Court Records- Wills/Orphan's Court: Personnel 1,219,339 - - 1,219,339 1,178,766 (40,573) 1,039,272 Fringe Benefits 561,753 - - 561,753 464,336 (97,417) 438,358 1,781,092 - - 1,781,092 1,643,102 (137,990) 1,477,630

Court Records- Report Financial Annual Comprehensive Allegheny of County 2015 Criminal: Personnel 1,482,190 - - 1,482,190 1,380,174 (102,016) 1,375,329 Fringe Benefits 757,311 - - 757,311 587,524 (169,787) 594,022 2,239,501 - - 2,239,501 1,967,698 (271,803) 1,969,351

Treasurer: Personnel 3,264,726 - - 3,264,726 3,068,804 (195,922) 3,005,943 Fringe Benefits 1,461,120 - - 1,461,120 1,249,657 (211,463) 1,246,635 Services 1,979,700 53,329 - 2,033,029 1,842,069 (190,960) 1,756,781 Supplies 33,550 2,398 - 35,948 26,981 (8,967) 34,766

Materials 800 - - 800 640 (160) - Information Supplementary Repairs and Maintenance 46,200 - - 46,200 29,348 (16,852) 36,751 Minor Equipment 55,000 - - 55,000 24,323 (30,677) 13,844 6,841,096 55,727 - 6,896,823 6,241,822 (655,001) 6,094,720 223 224 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 9 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Sheriff: Personnel 12,052,654 - 463,500 12,516,154 12,516,012 (142) 12,402,759 Fringe Benefits 4,555,059 - (333,000) 4,222,059 4,221,961 (98) 4,076,036 Services 510,600 3,419 (107,000) 407,019 404,150 (2,869) 411,048 Supplies 97,000 17,744 (7,300) 107,444 107,383 (61) 103,482 Materials 4,000 - (3,900) 100 52 (48) 171 Repairs and Maintenance 72,200 - (10,500) 61,700 61,401 (299) 52,849 Minor Equipment 10,000 - - 10,000 9,363 (637) 603 17,301,513 21,163 1,800 17,324,476 17,320,322 (4,154) 17,046,948

Court of Common Pleas- Judicial Support: Personnel 9,250,224 - 214,200 9,464,424 9,464,345 (79) 9,023,443 Fringe Benefits 4,316,691 - (484,200) 3,832,491 3,784,836 (47,655) 3,728,705 Services 1,686,835 5,222 (96,335) 1,595,722 1,595,709 (13) 1,555,011 Supplies 194,500 7,356 50,000 251,856 216,957 (34,899) 183,403 Materials 11,000 - - 11,000 1,954 (9,046) 5,430 Repairs and Maintenance 786,500 - 8,835 795,335 768,224 (27,111) 775,611 Minor Equipment 22,000 - - 22,000 21,517 (483) 10,974 16,267,750 12,578 (307,500) 15,972,828 15,853,542 (119,286) 15,282,577

Court of Common Pleas- Jury Management: Personnel 505,781 - - 505,781 494,012 (11,769) 475,407 Fringe Benefits 225,200 - - 225,200 203,727 (21,473) 194,397 Services 90,500 - 600 91,100 91,062 (38) 92,148 Supplies 34,250 - (600) 33,650 31,529 (2,121) - Repairs and Maintenance - - 250 250 180 (70) - Minor Equipment 1,500 - (250) 1,250 - (1,250) 804 857,231 - - 857,231 820,510 (36,721) 762,756 Exhibit A-3 (Page 10 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Court of Common Pleas- Criminal Division: Personnel 2,192,654 - 6,100 2,198,754 2,198,734 (20) 2,137,574 Fringe Benefits 908,857 - - 908,857 876,370 (32,487) 854,403 Services 1,997,000 - 21,400 2,018,400 1,966,340 (52,060) 2,029,753 Supplies 125,500 5,287 (27,500) 103,287 75,498 (27,789) 108,910

Materials 1,500 - - 1,500 (186) (1,686) 1,400 Report Financial Annual Comprehensive Allegheny of County 2015 Repairs and Maintenance 4,500 - - 4,500 819 (3,681) 2,285 Minor Equipment 2,000 - - 2,000 1,689 (311) 765 5,232,011 5,287 - 5,237,298 5,119,264 (118,034) 5,135,090

Court of Common Pleas- Adult Probation: Personnel 4,719,310 - 246,000 4,965,310 4,964,844 (466) 4,904,463 Fringe Benefits 2,033,781 - (38,000) 1,995,781 1,914,794 (80,987) 1,819,535 Services 794,150 - 149,500 943,650 943,248 (402) 820,972 Supplies 20,800 490 - 21,290 17,937 (3,353) 13,722

Materials ------175 Information Supplementary Repairs and Maintenance 6,000 - - 6,000 156 (5,844) 4,517 Minor Equipment 3,000 - - 3,000 2,872 (128) - 7,577,041 490 357,500 7,935,031 7,843,851 (91,180) 7,563,384

Court of Common Pleas- Pre-Trial Service: Personnel 782,786 - 95,000 877,786 877,683 (103) 850,370 Fringe Benefits 326,784 - 10,000 336,784 336,221 (563) 310,331 Services 384,000 9,360 - 393,360 372,246 (21,114) 365,998 Supplies 12,500 116 - 12,616 4,974 (7,642) 10,168 Repairs and Maintenance 1,500 - - 1,500 - (1,500) - Minor Equipment 9,000 - - 9,000 3,610 (5,390) 2,929 1,516,570 9,476 105,000 1,631,046 1,594,734 (36,312) 1,539,796 225 226 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 11 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Court of Common Pleas- Civil Division: Personnel 1,311,369 - - 1,311,369 1,296,498 (14,871) 1,324,563 Fringe Benefits 548,803 - (11,000) 537,803 479,324 (58,479) 499,320 Services 462,100 - 11,000 473,100 472,448 (652) 475,886 Supplies 106,000 932 - 106,932 101,487 (5,445) 119,282 Repairs and Maintenance 4,000 - - 4,000 1,017 (2,983) 1,769 Minor Equipment 2,500 - - 2,500 463 (2,037) 604 2,434,772 932 - 2,435,704 2,351,237 (84,467) 2,421,424

Court of Common Pleas- Family - Adult: Personnel 907,563 - 34,800 942,363 942,311 (52) 948,143 Fringe Benefits 380,183 - - 380,183 358,809 (21,374) 347,612 Services 116,240 - (31,000) 85,240 84,257 (983) 52,949 Supplies 21,300 2,175 (3,800) 19,675 18,802 (873) 15,926 Repairs and Maintenance 5,600 - - 5,600 5,536 (64) 5,474 Minor Equipment 5,600 - - 5,600 743 (4,857) 1,944 1,436,486 2,175 - 1,438,661 1,410,458 (28,203) 1,372,048

Court of Common Pleas- Family - Juvenile: Personnel 8,598,498 - 465,000 9,063,498 9,063,097 (401) 7,395,299 Fringe Benefits 3,476,031 - (224,000) 3,252,031 3,251,743 (288) 2,632,425 Services 1,030,800 - (48,000) 982,800 982,215 (585) 991,635 Supplies 99,500 22,755 (61,000) 61,255 60,808 (447) 62,293 Repairs and Maintenance 28,000 - 8,000 36,000 35,795 (205) 34,986 Minor Equipment 4,500 - (2,000) 2,500 2,126 (374) 664 13,237,329 22,755 138,000 13,398,084 13,395,784 (2,300) 11,117,302 Exhibit A-3 (Page 12 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Court of Common Pleas- Orphans' Court: Personnel 801,139 - 130,500 931,639 931,284 (355) 872,663 Fringe Benefits 268,049 - 27,500 295,549 295,239 (310) 258,232 Services 560,200 - - 560,200 513,440 (46,760) 504,345 Supplies 39,600 407 - 40,007 35,254 (4,753) 32,700

Repairs and Maintenance 1,000 - - 1,000 399 (601) 240 Report Financial Annual Comprehensive Allegheny of County 2015 Minor Equipment 5,000 - - 5,000 2,567 (2,433) 5,794 1,674,988 407 158,000 1,833,395 1,778,183 (55,212) 1,673,974

Court of Common Pleas- Minor Judiciary: Personnel 7,298,580 - 95,000 7,393,580 7,392,866 (714) 7,200,924 Fringe Benefits 3,660,201 - (391,000) 3,269,201 3,253,570 (15,631) 3,218,893 Services 2,850,200 5,424 (105,000) 2,750,624 2,651,796 (98,828) 2,692,234 Supplies 295,500 42,118 (50,000) 287,618 202,737 (84,881) 247,111 Repairs and Maintenance 12,000 - - 12,000 7,949 (4,051) 5,607

Minor Equipment 9,500 - - 9,500 5,923 (3,577) 9,712 Information Supplementary 14,125,981 47,542 (451,000) 13,722,523 13,514,841 (207,682) 13,374,481

Vacant Property Review Board: Other operating 300,000 - - 300,000 297,335 (2,665) 200,000

Facilities Management - Administration: Personnel 1,020,314 - 18,200 1,038,514 1,038,483 (31) 810,463 Fringe Benefits 358,563 - 27,500 386,063 385,886 (177) 307,030 Services 199,550 - 145,500 345,050 344,537 (513) 306,559 Supplies 12,500 4,079 (5,000) 11,579 5,214 (6,365) 6,805 Repairs and Maintenance 5,300 - - 5,300 813 (4,487) 2,214 Minor Equipment 3,000 - 1,000 4,000 3,672 (328) 3,551 1,599,227 4,079 187,200 1,790,506 1,778,605 (11,901) 1,436,622 227 228 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 13 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Facilities Management - Building Maintenance Trades: Personnel 6,286,818 - 175,500 6,462,318 6,462,075 (243) 5,379,647 Fringe Benefits 2,868,793 - 123,000 2,991,793 2,991,507 (286) 2,388,359 Fringe Benefits - Cost Recovery (215,000) - 104,000 (111,000) (109,555) 1,445 (194,187) Services 894,000 20,351 339,000 1,253,351 1,252,835 (516) 686,737 Supplies 52,700 326 2,500 55,526 55,368 (158) 34,437 Materials 194,000 2,702 (27,000) 169,702 169,550 (152) 143,597 Repairs and Maintenance 27,000 - (25,000) 2,000 1,864 (136) 31,462 Minor Equipment 25,500 - - 25,500 25,333 (167) 26,838 10,133,811 23,379 692,000 10,849,190 10,848,977 (213) 8,496,890

Facilities Management - Custodial Maintenance: Personnel 1,653,121 - - 1,653,121 1,602,847 (50,274) 1,557,573 Fringe Benefits 881,656 - (148,700) 732,956 730,498 (2,458) 736,107 Services 3,838,000 - 155,000 3,993,000 3,992,432 (568) 4,168,452 Supplies 94,500 - 10,000 104,500 98,697 (5,803) 74,051 Materials 5,800 - - 5,800 5,254 (546) 9,469 Repairs and Maintenance 100,750 - 13,000 113,750 101,678 (12,072) 92,811 Minor Equipment 1,500 - 12,000 13,500 10,625 (2,875) 7,213 6,575,327 - 41,300 6,616,627 6,542,031 (74,596) 6,645,676

Total General Government 199,113,849 362,699 950,500 200,427,048 194,140,820 (6,286,228) 182,611,629 Exhibit A-3 (Page 14 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Public Safety:

Emergency Services: Personnel 1,083,446 - 80,000 1,163,446 1,154,589 (8,857) 1,064,278 Fringe Benefits 446,766 - 10,000 456,766 428,723 (28,043) 401,012 Services 1,275,387 4,650 (420,300) 859,737 859,693 (44) 811,235

Supplies 131,315 9,919 (19,900) 121,334 99,492 (21,842) 125,307 Report Financial Annual Comprehensive Allegheny of County 2015 Materials 8,850 - - 8,850 4,856 (3,994) 5,946 Repairs and Maintenance 67,100 - - 67,100 39,879 (27,221) 51,208 Minor Equipment 62,000 13,950 9,000 84,950 84,434 (516) 26,546 3,074,864 28,519 (341,200) 2,762,183 2,671,666 (90,517) 2,485,532

Jail: Personnel 34,893,684 - 2,658,000 37,551,684 37,550,812 (872) 33,563,507 Fringe Benefits 13,786,787 - (1,072,535) 12,714,252 12,713,833 (419) 11,803,980 Services 22,350,587 - (1,705,665) 20,644,922 20,644,830 (92) 23,013,903 Supplies 1,241,000 56,115 943,000 2,240,115 2,239,299 (816) 1,217,991

Materials 174,000 635 79,000 253,635 253,621 (14) 155,328 Information Supplementary Repairs and Maintenance 208,000 740 39,000 247,740 247,302 (438) 167,566 Minor Equipment 85,000 - (3,500) 81,500 81,057 (443) 65,000 Expenditure Recovery (740,000) - 9,700 (730,300) (727,263) 3,037 - 71,999,058 57,490 947,000 73,003,548 73,003,491 (57) 69,987,275

County Police- Police: Personnel 15,422,669 - (140,000) 15,282,669 15,275,175 (7,494) 14,394,157 Fringe Benefits 4,252,518 - (94,300) 4,158,218 4,053,839 (104,379) 3,800,695 Services 724,257 - (30,000) 694,257 678,273 (15,984) 669,840 Supplies 134,084 31,263 - 165,347 148,754 (16,593) 93,835 Repairs and Maintenance 95,500 - 30,000 125,500 113,627 (11,873) 95,973 Minor Equipment 30,000 - - 30,000 25,408 (4,592) 2,265 Expenditure Recovery - - - - (496,624) (496,624) (559,668) 20,659,028 31,263 (234,300) 20,455,991 19,798,452 (657,539) 18,497,097 229 230 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 15 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

County Police- Building Guard: Personnel 1,278,685 - 9,500 1,288,185 1,288,031 (154) 1,214,076 Fringe Benefits 685,380 - (117,500) 567,880 567,089 (791) 520,709 Services 5,600 - - 5,600 2,471 (3,129) 3,141 Supplies 12,750 - - 12,750 187 (12,563) - Repairs and Maintenance 35,000 - - 35,000 32,026 (2,974) 28,953 Minor Equipment 21,000 - - 21,000 - (21,000) 20,370 2,038,415 - (108,000) 1,930,415 1,889,804 (40,611) 1,787,249

County Police- Police Academy: Personnel 424,177 - 86,000 510,177 509,928 (249) 533,925 Fringe Benefits 171,625 - (50,000) 121,625 119,650 (1,975) 114,293 Services 212,300 - (30,000) 182,300 176,923 (5,377) 172,664 Supplies 67,200 25,528 (6,000) 86,728 58,280 (28,448) 66,128 Materials 8,850 - - 8,850 4,655 (4,195) 5,095 Repairs and Maintenance 19,300 744 - 20,044 15,333 (4,711) 19,545 Minor Equipment 6,600 - - 6,600 2,967 (3,633) 4,040 910,052 26,272 - 936,324 887,736 (48,588) 915,690

County Police- Parks: Personnel 4,561,646 - (450,000) 4,111,646 4,111,437 (209) 4,257,042 Fringe Benefits 1,228,137 - (145,000) 1,083,137 1,082,906 (231) 1,136,000 5,789,783 - (595,000) 5,194,783 5,194,343 (440) 5,393,042

Total Public Safety 104,471,200 143,544 (331,500) 104,283,244 103,445,492 (837,752) 99,065,885 Exhibit A-3 (Page 16 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Public Works:

Public Works- Administration: Personnel 1,102,737 - (93,000) 1,009,737 960,847 (48,890) 1,067,058 Fringe Benefits 445,699 - - 445,699 402,044 (43,655) 410,920

Services 476,000 - (55,500) 420,500 420,364 (136) 690,871 Report Financial Annual Comprehensive Allegheny of County 2015 Supplies 16,000 4,332 - 20,332 10,950 (9,382) 14,261 Materials 2,000 - 13,000 15,000 11,447 (3,553) 9 Repairs and Maintenance 13,100 - (13,000) 100 - (100) - Minor Equipment 25,000 7,843 (14,500) 18,343 15,823 (2,520) 15,409 2,080,536 12,175 (163,000) 1,929,711 1,821,475 (108,236) 2,198,528

Public Works- Engineering: Personnel 864,134 - - 864,134 779,425 (84,709) 785,883 Fringe Benefits 258,387 - - 258,387 237,168 (21,219) 240,358

1,122,521 - - 1,122,521 1,016,593 (105,928) 1,026,241 Information Supplementary

Public Works- Maintenance: Personnel 4,374,206 - (100,000) 4,274,206 4,268,139 (6,067) 4,764,462 Fringe Benefits 2,217,877 - (72,730) 2,145,147 1,942,723 (202,424) 2,170,206 Services 1,275,300 - (530,860) 744,440 744,439 (1) 1,082,991 Supplies 40,000 - 55,000 95,000 83,214 (11,786) 56,628 Materials 1,407,000 - 727,860 2,134,860 2,017,930 (116,930) 1,552,407 Repairs and Maintenance 105,000 - 63,000 168,000 167,830 (170) 68,974 Minor Equipment 17,000 - 24,000 41,000 33,460 (7,540) 6,260 9,436,383 - 166,270 9,602,653 9,257,735 (344,918) 9,701,928

Public Works- Parks Maint: Personnel 974,000 - 336,000 1,310,000 1,309,303 (697) 3,508,810 Fringe Benefits 479,000 - 182,730 661,730 661,730 - 1,605,725 1,453,000 - 518,730 1,971,730 1,971,033 (697) 5,114,535 231 232 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 17 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Public Works- Fleet Management: Personnel 143,025 - (54,500) 88,525 81,031 (7,494) 114,735 Fringe Benefits 47,199 - - 47,199 19,624 (27,575) 38,157 Services 2,457,200 56,227 93,000 2,606,427 2,605,586 (841) 2,334,703 Supplies 1,505,000 - (560,500) 944,500 944,041 (459) 1,376,140 Materials 4,000 - - 4,000 - (4,000) 301 Repairs and Maintenance 12,500 - - 12,500 250 (12,250) 1,720 Minor Equipment 8,000 - - 8,000 - (8,000) 4,275 4,176,924 56,227 (522,000) 3,711,151 3,650,532 (60,619) 3,870,031

Total Public Works 18,269,364 68,402 - 18,337,766 17,717,368 (620,398) 21,911,263

Health and Welfare:

Administrative Services- Veterans Services: Personnel 135,938 - - 135,938 134,280 (1,658) 130,954 Fringe Benefits 46,000 - - 46,000 42,786 (3,214) 41,119 Services 382,675 - (30,000) 352,675 323,493 (29,182) 305,953 Supplies 5,625 944 - 6,569 2,612 (3,957) 1,501 Materials 144,000 - - 144,000 141,180 (2,820) 143,230 Repairs and Maintenance 1,000 - - 1,000 705 (295) 695 Minor Equipment 1,000 - - 1,000 - (1,000) 514 716,238 944 (30,000) 687,182 645,056 (42,126) 623,966 Exhibit A-3 (Page 18 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Health- Administration: Personnel 1,899,962 - (170,000) 1,729,962 1,727,314 (2,648) 1,989,484 Fringe Benefits 917,895 - - 917,895 687,744 (230,151) 864,640 Services 705,674 - (172,500) 533,174 528,186 (4,988) 587,882 Supplies 57,025 1,746 - 58,771 57,977 (794) 56,289

Materials 28,725 80 - 28,805 7,275 (21,530) 17,249 Report Financial Annual Comprehensive Allegheny of County 2015 Repairs and Maintenance 35,175 - 3,000 38,175 22,408 (15,767) 22,655 Minor Equipment 53,350 23,996 - 77,346 53,352 (23,994) 17,294 3,697,806 25,822 (339,500) 3,384,128 3,084,256 (299,872) 3,555,493

Health- Medical Services: Personnel 2,352,631 - (192,000) 2,160,631 1,984,849 (175,782) 1,950,571 Fringe Benefits 958,583 - - 958,583 707,457 (251,126) 770,123 Services 663,650 23 - 663,673 287,799 (375,874) 560,780 Supplies 121,702 6,736 - 128,438 125,989 (2,449) 113,791

Materials 4,700 - - 4,700 836 (3,864) 2,478 Information Supplementary Repairs and Maintenance 11,300 - 24,000 35,300 31,313 (3,987) 11,940 Minor Equipment 17,650 - - 17,650 16,301 (1,349) 11,979 4,130,216 6,759 (168,000) 3,968,975 3,154,544 (814,431) 3,421,662

Health- Environmental Health Services: Personnel 4,729,884 - - 4,729,884 4,618,737 (111,147) 4,507,391 Fringe Benefits 2,108,220 - (165,500) 1,942,720 1,872,788 (69,932) 1,806,441 Services 832,850 15,907 165,500 1,014,257 979,840 (34,417) 918,513 Supplies 78,450 5,413 - 83,863 51,285 (32,578) 49,420 Materials 13,100 - - 13,100 6,518 (6,582) 2,584 Repairs and Maintenance 8,000 - 5,000 13,000 5,818 (7,182) 8,712 Minor Equipment 64,200 31,500 - 95,700 49,338 (46,362) 25,764 7,834,704 52,820 5,000 7,892,524 7,584,324 (308,200) 7,318,825 233 234 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 19 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Health- Laboratories: Personnel 733,027 - - 733,027 698,353 (34,674) 674,052 Fringe Benefits 290,787 - - 290,787 264,660 (26,127) 247,284 Services 133,650 5,000 - 138,650 114,188 (24,462) 99,685 Supplies 185,500 9,623 9,500 204,623 185,849 (18,774) 160,742 Materials 4,650 - - 4,650 3,819 (831) 1,964 Repairs and Maintenance 21,950 946 8,000 30,896 22,352 (8,544) 17,743 Minor Equipment 24,050 - (9,500) 14,550 6,541 (8,009) 13,515 1,393,614 15,569 8,000 1,417,183 1,295,762 (121,421) 1,214,985

Health- Epidemiology: Personnel 337,358 - - 337,358 295,956 (41,402) - Fringe Benefits 122,599 - - 122,599 99,492 (23,107) - Services 47,850 - 9,500 57,350 41,994 (15,356) - Supplies 3,475 - - 3,475 1,475 (2,000) - Repairs and Maintenance 2,325 - - 2,325 181 (2,144) - Minor Equipment 2,275 - - 2,275 1,367 (908) - 515,882 - 9,500 525,382 440,465 (84,917) -

Human Services- Behavioral Health/Mental Retardation Drug and Alcohol - Administration: Services 1,770,000 - - 1,770,000 *- (1,770,000) - 1,770,000 - - 1,770,000 - (1,770,000) -

Human Services- Children, Youth and Family Services: Personnel 26,723,152 - (940,900) 25,782,252 25,185,353 (596,899) 24,142,213 Fringe Benefits 11,304,377 - - 11,304,377 9,804,608 (1,499,769) 9,375,822 Services 132,250,413 26,067 (3,100,000) 129,176,480 128,990,218 (186,262) 126,136,233 Supplies 427,100 14,270 1,600,000 2,041,370 1,751,720 (289,650) 1,243,636 Materials 5,000 - - 5,000 166 (4,834) - Repairs and Maintenance 19,500 - 4,000 23,500 23,172 (328) 24,378 Minor Equipment 605,000 10,916 - 615,916 416,887 (199,029) 340,827 Expenditure Recovery (57,759,031) - 936,000 (56,823,031) (54,021,710) 2,801,321 (51,116,529) Contributed Services 66,459,031 - 139,800 66,598,831 66,574,148 (24,683) 62,476,543 180,034,542 51,253 (1,361,100) 178,724,695 178,724,562 (133) 172,623,123

* Expenditures in 2015 of $4,105,583 were reclassified as other financing uses. Exhibit A-3 (Page 20 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Human Services- Area Agency on Aging: Services 450,000 - - 450,000 - ** (450,000) - 450,000 - - 450,000 - (450,000) -

John J. Kane Regional Health Centers-

Glen-Hazel: Report Financial Annual Comprehensive Allegheny of County 2015 Personnel 9,150,071 - (212,000) 8,938,071 8,834,831 (103,240) 8,752,075 Fringe Benefits 3,989,297 - (244,000) 3,745,297 3,517,013 (228,284) 3,366,552 Services 3,193,034 1,545 206,000 3,400,579 3,400,467 (112) 3,524,168 Supplies 963,250 9,521 - 972,771 953,911 (18,860) 875,368 Materials 89,950 283 25,000 115,233 114,023 (1,210) 145,402 Repairs and Maintenance 164,500 1,108 (1,000) 164,608 164,554 (54) 151,598 Minor Equipment 57,500 2,850 6,000 66,350 64,248 (2,102) 45,405 17,607,602 15,307 (220,000) 17,402,909 17,049,047 (353,862) 16,860,568

John J. Kane Regional Health Centers-

Scott: Information Supplementary Personnel 11,359,417 - - 11,359,417 11,097,967 (261,450) 10,395,258 Fringe Benefits 5,019,256 - (120,000) 4,899,256 4,806,675 (92,581) 4,382,523 Services 4,550,559 836 (17,500) 4,533,895 4,529,090 (4,805) 4,502,239 Supplies 1,310,700 34,197 - 1,344,897 1,190,105 (154,792) 620,424 Materials 86,600 328 15,000 101,928 93,294 (8,634) 282,947 Repairs and Maintenance 145,000 - (17,500) 127,500 118,617 (8,883) 152,050 Minor Equipment 57,500 - 20,000 77,500 77,199 (301) 120,586 22,529,032 35,361 (120,000) 22,444,393 21,912,947 (531,446) 20,456,027

** Expenditures in 2015 of $351,278 were reclassified as other financing uses. 235 236 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 21 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

John J. Kane Regional Health Centers- McKeesport: Personnel 14,110,949 - (427,400) 13,683,549 12,420,891 (1,262,658) 13,736,891 Fringe Benefits 6,460,036 - (400,000) 6,060,036 5,461,085 (598,951) 5,858,118 Services 5,417,584 4,188 373,000 5,794,772 5,794,463 (309) 5,205,097 Supplies 1,481,700 12,540 - 1,494,240 1,422,345 (71,895) 1,317,956 Materials 110,600 374 50,000 160,974 142,364 (18,610) 213,016 Repairs and Maintenance 135,400 1,500 4,300 141,200 141,184 (16) 106,230 Minor Equipment 57,500 - 100 57,600 57,568 (32) 55,107 27,773,769 18,602 (400,000) 27,392,371 25,439,900 (1,952,471) 26,492,415

John J. Kane Regional Health Centers- Ross: Personnel 10,432,117 - (324,000) 10,108,117 10,062,649 (45,468) 10,177,342 Fringe Benefits 4,826,053 - (220,000) 4,606,053 4,460,266 (145,787) 4,244,475 Services 3,393,497 1,273 324,000 3,718,770 3,717,784 (986) 3,474,317 Supplies 972,350 15,570 30,000 1,017,920 972,492 (45,428) 755,509 Materials 97,400 1,260 15,000 113,660 106,184 (7,476) 180,139 Repairs and Maintenance 159,600 1,588 (35,000) 126,188 113,025 (13,163) 142,558 Minor Equipment 57,500 3,545 5,000 66,045 62,427 (3,618) 96,947 19,938,517 23,236 (205,000) 19,756,753 19,494,827 (261,926) 19,071,287

John J. Kane Regional Health Centers- Central Services: Personnel 3,582,739 - - 3,582,739 3,338,095 (244,644) 4,095,769 Fringe Benefits 1,901,271 - - 1,901,271 1,543,400 (357,871) 1,763,573 Services 3,017,000 - - 3,017,000 2,865,658 (151,342) 1,926,305 Supplies 5,331,500 65,760 1,660,000 7,057,260 6,801,348 (255,912) 5,434,389 Materials 16,000 - (10,000) 6,000 935 (5,065) 370 Repairs and Maintenance 78,000 - - 78,000 46,572 (31,428) (3,785) Minor Equipment 100,000 - (5,000) 95,000 55,114 (39,886) 48,913 Expenditure Recovery - - (700,000) (700,000) (849,845) (149,845) - 14,026,510 65,760 945,000 15,037,270 13,801,277 (1,235,993) 13,265,534 Exhibit A-3 (Page 22 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Shuman Juvenile Detention Center: Personnel 6,303,952 - (500,000) 5,803,952 5,792,799 (11,153) 6,012,626 Fringe Benefits 3,025,462 - (436,000) 2,589,462 2,556,801 (32,661) 2,549,475 Services 1,410,930 450 (50,000) 1,361,380 1,245,769 (115,611) 1,442,938 Supplies 187,500 19,553 - 207,053 160,298 (46,755) 179,428 Materials 74,000 1,082 - 75,082 24,904 (50,178) 64,996

Repairs and Maintenance 39,150 - 50,000 89,150 73,256 (15,894) 31,043 Report Financial Annual Comprehensive Allegheny of County 2015 Minor Equipment 42,750 - - 42,750 28,662 (14,088) 24,109 11,083,744 21,085 (936,000) 10,168,829 9,882,489 (286,340) 10,304,615

Community Intensive Supervision Program: Personnel 3,369,784 - - 3,369,784 3,275,676 (94,108) 3,146,120 Fringe Benefits 1,486,455 - - 1,486,455 1,268,441 (218,014) 1,312,876 Services 737,750 - - 737,750 700,102 (37,648) 721,975 Supplies 381,500 68,504 - 450,004 361,855 (88,149) 358,499 Materials 11,400 - - 11,400 276 (11,124) 311 Repairs and Maintenance 61,900 - - 61,900 49,924 (11,976) 22,654

Minor Equipment 37,000 - - 37,000 856 (36,144) 30,223 Information Supplementary 6,085,789 68,504 - 6,154,293 5,657,130 (497,163) 5,592,658

Home Detention/Electronic Monitoring: Personnel 635,713 - - 635,713 622,615 (13,098) 634,146 Fringe Benefits 283,005 - - 283,005 241,505 (41,500) 247,498 Services 273,750 - 100,000 373,750 302,822 (70,928) 297,769 Supplies 11,750 7,334 - 19,084 7,115 (11,969) 2,994 Repairs and Maintenance 3,500 - - 3,500 - (3,500) 797 Minor Equipment 17,500 - - 17,500 - (17,500) 5,917 1,225,218 7,334 100,000 1,332,552 1,174,057 (158,495) 1,189,121 237 238 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 23 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Institutional Care: Personnel 262,724 - - 262,724 204,479 (58,245) 236,457 Fringe Benefits 128,369 - - 128,369 90,705 (37,664) 108,862 Services 23,495,350 - 2,196,100 25,691,450 25,691,445 (5) 25,258,726 Supplies 151,500 1,830 1,000 154,330 61,214 (93,116) 74,798 Repairs and Maintenance 500 - - 500 - (500) - Minor Equipment 9,000 - - 9,000 - (9,000) 1,908 Expenditure Recovery (1,169,793) - - (1,169,793) (1,012,549) 157,244 (1,076,316) Contributed Services 1,169,793 - - 1,169,793 1,012,549 (157,244) 1,076,316 24,047,443 1,830 2,197,100 26,246,373 26,047,843 (198,530) 25,680,751

Total Health and Welfare 344,860,626 410,186 (515,000) 344,755,812 335,388,486 (9,367,326) 327,671,030

Culture and Recreation:

Parks: Personnel 3,062,986 - - 3,062,986 2,955,779 (107,207) 2,994,733 Fringe Benefits 714,870 - 45,000 759,870 759,413 (457) 743,254 Services 4,003,750 703,196 (254,000) 4,452,946 4,375,925 (77,021) 3,551,724 Supplies 615,000 10,787 (60,000) 565,787 543,337 (22,450) 535,075 Materials 475,000 18,621 130,500 624,121 623,296 (825) 440,403 Repairs and Maintenance 148,500 - (8,000) 140,500 140,148 (352) 173,494 Minor Equipment 175,000 5,714 91,797 272,511 177,167 (95,344) 75,202 9,195,106 738,318 (54,703) 9,878,721 9,575,065 (303,656) 8,513,885

Cooperative Extensions: Personnel 74,402 - 500 74,902 74,732 (170) 72,880 Fringe Benefits 40,200 - - 40,200 35,239 (4,961) 33,995 Services 191,160 - (22,500) 168,660 157,075 (11,585) 167,810 Supplies 6,500 2,118 - 8,618 6,292 (2,326) 5,494 Repairs and Maintenance 1,500 - - 1,500 219 (1,281) 402 Minor Equipment 2,750 - 16,000 18,750 15,472 (3,278) 8,696 316,512 2,118 (6,000) 312,630 289,029 (23,601) 289,277 Exhibit A-3 (Page 24 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Final Budget Prior Reappropriations Budget Amendments/Transfers Budget Actual Variance 2014 Actual

Park Rangers: Personnel 206,417 - (800) 205,617 74,068 (131,549) - Fringe Benefits 69,584 - - 69,584 26,867 (42,717) - Services 22,575 - (13,947) 8,628 8,550 (78) - Supplies 24,000 - 6,700 30,700 27,999 (2,701) - Materials 4,000 - 7,500 11,500 5,212 (6,288) - Repairs and Maintenance 15,000 - (15,000) - - - - Minor Equipment 58,424 - (33,750) 24,674 24,673 (1) - 400,000 - (49,297) 350,703 167,369 (183,334) - 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Special Events: *** Personnel ------83,841 Fringe Benefits ------29,627 Services ------388,377 Supplies ------6,810 Materials ------508,655

Parks Maintenance: Personnel 3,079,547 - 140,000 3,219,547 3,218,879 (668) - Fringe Benefits 1,652,639 - (140,000) 1,512,639 1,381,777 (130,862) -

4,732,186 - - 4,732,186 4,600,656 (131,530) - Information Supplementary

Memorial Hall: Other Operating 630,000 - 6,000 636,000 635,979 (21) 611,695

Total Culture and Recreation 15,273,804 740,436 (104,000) 15,910,240 15,268,098 (642,142) 9,923,512

Education

Community College of Allegheny County (CCAC): Other operating 24,179,369 - - 24,179,369 24,179,369 - 23,705,264

Allegheny County Library Association: Other operating 35,000 - - 35,000 35,000 - 35,000

Local Government Academy: Other operating 100,000 - - 100,000 100,000 - 100,000

Total Education 24,314,369 - - 24,314,369 24,314,369 - 23,840,264

*** Special Events was transferred to Administrative Services in 2015 239 240 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 25 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Economic Development:

Alcoa - North Shore Other operating ------149,981

Allegheny League of Municipalities: Other operating 125,000 - - 125,000 125,000 - 125,000

Bakery Square Other operating 149,593 - - 149,593 132,311 (17,282) 132,311

Brentwood Towne Square Other operating 76,322 - - 76,322 67,505 (8,817) 67,505

Broadhead Fording Other operating 35,032 - - 35,032 30,985 (4,047) 30,985

Clinton Other operating 109,244 - - 109,244 96,623 (12,621) 96,817

Council of Government: Other operating 60,000 - - 60,000 60,000 - 60,000

East Liberty Gateway Other operating 57,068 - - 57,068 50,475 (6,593) 50,475

Federal North Other operating 165,440 - - 165,440 146,327 (19,113) 146,327

Fifth and Market Other operating 274,105 - - 274,105 242,438 (31,667) 242,438

Frazer Mills Other operating 959,628 - - 959,628 848,764 (110,864) 861,045 Exhibit A-3 (Page 26 of 27) COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Fulton Building Other operating 120,215 - - 120,215 106,327 (13,888) 106,327

Gardens at Market Other operating 3,826 - - 3,826 3,384 (442) 3,372

Home Depot

Other operating 27,003 - - 27,003 23,883 (3,120) 23,883 Report Financial Annual Comprehensive Allegheny of County 2015

Mellon Client Service Center Other operating 288,259 - - 288,259 254,957 (33,302) 256,567

Moon Township Trans. Authority Other operating 118,602 - - 118,602 104,900 (13,702) 65,313

Mt Nebo Point Other operating 110,203 - - 110,203 97,471 (12,732) 103,539

Negley Centre upeetr Information Supplementary Other operating 50,579 - - 50,579 44,736 (5,843) 38,723

North Shore East/River Avenue Other operating 30,918 - - 30,918 27,346 (3,572) 24,378

Panther Hollow Other operating 84,558 - - 84,558 74,789 (9,769) 74,789

Penn Liberty Plaza Other operating 70,067 - - 70,067 61,972 (8,095) 61,972

Pittsburgh Technology Other operating 63,306 - - 63,306 55,992 (7,314) 50,318

PNC Firstside Center Other operating 294,327 - - 294,327 260,324 (34,003) 211,186 241 242 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit A-3 (Page 27 of 27) Information Supplementary COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Operating Expenditures - Budget and Actual General Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

Adopted Prior Budget Final Budget Reappropriations Amendments/Transfers Budget Actual Variance 2014 Actual

Potato Garden Run Other operating 80,324 - - 80,324 71,044 (9,280) 78,505

Robinson Mall Other operating 534,210 - - 534,210 472,493 (61,717) 509,220

Redevelopment Authority of Allegheny County- Economic Development Fund: Other operating 2,265,717 - - 2,265,717 2,265,717 - 2,276,836

South Side Works Other operating 790,083 - - 790,083 698,806 (91,277) 752,596

Station Square Other operating 98,727 - - 98,727 87,321 (11,406) 87,321

Summerset @ Frick Park Other operating ------42,163

The Waterfront Other operating 702,131 - - 702,131 621,015 (81,116) 625,926

Westport Other operating 11,230 - - 11,230 9,933 (1,297) -

Total Economic Development 7,755,717 - - 7,755,717 7,142,838 (612,879) 7,355,818

Total Expenditures $ 714,058,929 1,725,267 - 715,784,196 697,417,471 (18,366,725) 672,379,401 2015 County of Allegheny Comprehensive Annual Financial Report 243

Supplementary Information

SPECIAL REVENUE FUNDS

The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. 244 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

The Special Revenue Funds consist of:

LIQUID FUEL TAX FUND -- Accounts for monies received to finance the improvement of roads and bridges. COUNTY GRANTS FUND -- Accounts for all Non-Human Service grants received. HUMAN SERVICE GRANTS FUND -- Accounts for all Human Service grants received. TRANSPORTATION FUND -- Accounts for alcoholic beverage and rental vehicle tax monies received to subsidize the Port Authority. 2015 County of Allegheny Comprehensive Annual Financial Report 245

Supplementary Information

Exhibit B-1 (Page 1 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Special Revenue Funds Balance Sheet Schedule December 31, 2015 With Comparative Totals for December 31, 2014

Totals County Human Transportation Liquid Fuel Grants Services Fund Tax Fund Fund Grants Fund 2015 2014

Assets

Cash and short-term investments $ 12,521,145 - 46,255,946 7,067,611 65,844,702 66,491,693 Restricted cash and short-term investments - 11,377 1,408,830 45,532,348 46,952,555 52,975,045 Due from other funds: General Fund - - 1,283,493 3,218,360 4,501,853 8,751,170 Human Services Grants Fund - - 45,000 - 45,000 - County Grants Funds - - - 192,358 192,358 316,337 - - 1,328,493 3,410,718 4,739,211 9,067,507 Due from other governments: Federal - - 14,138,991 31,468,558 45,607,549 20,939,039 State - - 9,161,995 98,384,160 107,546,155 28,734,396 Other - - 14,470 - 14,470 21,381 - - 23,315,456 129,852,718 153,168,174 49,694,816 Due from component units - - 237,670 2,549,163 2,786,833 2,524,663 Alcoholic beverage tax receivable 3,020,901 - - - 3,020,901 2,782,444 Rental vehicle tax receivable 569,167 - - - 569,167 567,363 Other accounts receivable - - 890,848 3,077,298 3,968,146 4,002,362 Accrued interest receivable - 354 5,441 14,406 20,201 13,600

Total assets $ 16,111,213 11,731 73,442,684 191,504,262 281,069,890 188,119,493

Liabilities and Fund Balances

Liabilities: Vouchers payable $ - - 7,229,739 41,963,510 49,193,249 883,728 Accrued payroll - - 790,241 304,538 1,094,779 3,181,347 Due To Other Funds: General Fund - - 4,625,913 6,985,606 11,611,519 8,602,223 Debt Service Fund - - - - - 312,958 Human Services Grants Fund - - 192,358 - 192,358 316,337 County Grants Funds - - - 45,000 45,000 - - - 4,818,271 7,030,606 11,848,877 9,231,518 246 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit B-1 (Page 2 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Balance Sheet Schedule Special Revenue Funds December 31, 2015 With Comparative Totals for December 31, 2014

Totals County Human Transportation Liquid Fuel Tax Grants Services Fund Fund Fund Grants Fund 2015 2014

Accrued liabilities - - 2,047,855 43,403,303 45,451,158 23,260,186 Due to component units - - 1,184,489 109,992 1,294,481 365,789 Retainage Payable - - 61 - 61 61 Due to other governments: Other - - 13,142 - 13,142 - Unearned revenues - - 12,243,133 98,637,741 110,880,874 105,240,746 Accrued pension costs - - 129,044 48,528 177,572 556,058 Accrued workers' compensation - - 1,431 2,334 3,765 6,240 Accrued unemployment compensation - - 18,453 3,708 22,161 25,470

Total liabilities - - 28,475,859 191,504,260 219,980,119 142,751,143

Fund balances: Restricted for: Special projects - - 5,704,646 - 5,704,646 4,397,312 Community redevelopment - - 2,350,484 - 2,350,484 2,051,067 Law enforcement - - 4,733,320 - 4,733,320 3,930,568 Transit system 16,111,213 - - - 16,111,213 14,794,378 Health and welfare - - - 2 2 250,001 Emergency services - - 1,501,986 - 1,501,986 1,649,085 Health services - - 8,278,408 - 8,278,408 9,337,186 Technology projects - - 1,771,421 - 1,771,421 1,401,068 Road maintenance - 11,731 - - 11,731 236 Judicial services - - 4,512,507 - 4,512,507 3,871,242 Recreational events - - 123,087 - 123,087 27,033 Committed to: Community redevelopment - - 27,633 - 27,633 95,201 Law enforcement - - 491,519 - 491,519 559,538 Emergency services - - 169,229 - 169,229 146,632 Health services - - 14,708,799 - 14,708,799 2,338,991 Judicial services - - 460,254 - 460,254 327,463 Recreational events - - 17,107 - 17,107 107,301 Assigned to: Special projects - - 13,681 - 13,681 - Judicial services - - 26,279 - 26,279 26,279 Recreational events - - 53,772 - 53,772 50,425 Public maintenance - - 22,693 - 22,693 7,344

Total fund balances 16,111,213 11,731 44,966,825 2 61,089,771 45,368,350

Total liabilities and fund balances $ 16,111,213 11,731 73,442,684 191,504,262 281,069,890 188,119,493

Note: This schedule is informational to display a total for all Special Revenue Funds. It is not a combining statement. 2015 County of Allegheny Comprehensive Annual Financial Report 247

Supplementary Information

Exhibit B-2

COUNTY OF ALLEGHENY, PENNSYLVANIA Special Revenue Funds Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2015 With Comparative Totals for Year Ended December 31, 2014

Totals County Human Transportation Liquid Fuel Grants Services Fund Tax Fund Fund Grants Fund 2015 2014

Revenues: Federal revenues $ - - 50,591,484 66,955,004 117,546,488 112,887,877 State revenues - 4,056,556 34,336,056 467,530,446 505,923,058 505,767,843 Alcoholic beverage tax 37,728,522 - - - 37,728,522 35,419,606 Rental vehicle tax 8,750,285 - - - 8,750,285 7,015,665 Fees - - 36,692,978 - 36,692,978 27,771,393 Interest earnings - 1,885 100,851 14,724 117,460 99,006 Penalty and Interest 1,118,534 - - - 1,118,534 147,985 Miscellaneous revenues - - 6,596,463 1,055,244 7,651,707 15,733,891

Total revenues 47,597,341 4,058,441 128,317,832 535,555,418 715,529,032 704,843,266

Expenditures: General government - - 39,243,864 - 39,243,864 40,930,298 Public safety - - 30,137,816 - 30,137,816 31,684,133 Public works - 4,046,946 397,161 - 4,444,107 4,569,277 Health and welfare - - 16,757,433 525,839,853 542,597,286 561,395,527 Culture and recreation - - 679,220 - 679,220 81,977 Education - - 289,828 - 289,828 319,111 Economic development - - 30,074,402 - 30,074,402 25,038,609 Economic opportunity - - - 15,780,881 15,780,881 13,737,072 Transportation 29,082,188 - - - 29,082,188 29,168,699

Total expenditures 29,082,188 4,046,946 117,579,724 541,620,734 692,329,592 706,924,703

Excess (deficiency) of revenues over expenditures 18,515,153 11,495 10,738,108 (6,065,316) 23,199,440 (2,081,437)

Other financing sources (uses): Transfers in - - 12,788,669 5,815,317 18,603,986 23,492,219 Transfers out (17,198,318) - (8,883,687) - (26,082,005) (16,525,933)

Total other financing sources (uses) (17,198,318) - 3,904,982 5,815,317 (7,478,019) 6,966,286

Net change in fund balance 1,316,835 11,495 14,643,090 (249,999) 15,721,421 4,884,849

Fund balances at beginning of year 14,794,378 236 30,323,735 250,001 45,368,350 40,483,501

Fund balances at end of year $ 16,111,213 11,731 44,966,825 2 61,089,771 45,368,350

Note: This schedule is informational to display a total for all Special Revenue Funds. It is not a combining statement. 248 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit B-3

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Transportation Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

2014 Budget Actual Variance Actual

Revenues: Taxes: Alcoholic beverage tax $ 34,989,000 37,728,522 2,739,522 35,419,606 Rental vehicle tax 6,717,100 8,750,285 2,033,185 7,015,665 Penalty and interest 150,500 1,118,534 968,034 147,985

Total revenues 41,856,600 47,597,341 5,740,741 42,583,256

Expenditures:

Transportation 29,082,188 29,082,188 - 29,168,699

Total expenditures 29,082,188 29,082,188 - 29,168,699

Excess of revenues over expenditures 12,774,412 18,515,153 5,740,741 13,414,557

Other financing uses:

Transfers out - Debt Service Fund (10,104,300) (9,948,318) 155,982 (10,406,648) Transfers out - County Capital Projects Fund (7,250,000) (7,250,000) - -

Total other financing uses (17,354,300) (17,198,318) 155,982 (10,406,648)

Net change in fund balance (4,579,888) 1,316,835 5,896,723 3,007,909

Fund balance at beginning of year 14,794,378 14,794,378 - 11,786,469

Fund balance at end of year $ 10,214,490 16,111,213 5,896,723 14,794,378 2015 County of Allegheny Comprehensive Annual Financial Report 249

Supplementary Information

Exhibit B-4

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Liquid Fuel Tax Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015

2014 Budget Actual Variance Actual

Revenues: State revenues: State liquid fuel tax $ 4,200,000 4,056,556 (143,444) 4,102,709 Interest earnings 2,000 1,885 (115) 2,392

Total revenues 4,202,000 4,058,441 (143,559) 4,105,101

Expenditures: Public works: Road maintenance: Personnel 4,202,000 4,046,946 (155,054) 4,108,986

Excess (deficiency) of revenues over expenditures - 11,495 11,495 (3,885)

Fund balance at beginning of year 236 236 - 4,121

Fund balance at end of year $ 236 11,731 11,495 236 250 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit B-5 (Page 1 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Resources and Uses of Federal and State Grant Programs County Grants Fund Year Ended December 31, 2015

Resources Uses

Federal Other and Operating State Personnel Expenditures Total

Federal Programs: Juvenile Accountability Incentive Block Grant $ 19,256 - 19,256 19,256 Community Development Block Grant 15,606,985 3,005,782 12,784,833 15,790,615 AMERICORP 161,669 70,985 61,576 132,561 Child Support Enforcement Program 12,071,235 9,662,140 1,896,845 11,558,985 Improvement Program 2,807,608 2,702,952 104,657 2,807,609 Emergency Shelter Grant 1,087,068 62,878 1,004,190 1,067,068 Home Investment Program 3,645,131 318,547 3,549,337 3,867,884 Lead Hazard Awareness 65,065 - 75,294 75,294 Metro Medical Response System - - 103,500 103,500 Justice Assistance Grant 231,808 83,703 177,109 260,812 Immunization Program 998,127 886,677 111,450 998,127 AIDS Program 120,704 4,097 91,803 95,900 Nurse-Family Partnership 827,832 724,843 128,305 853,148 Traffic Safety 102,652 78,633 24,019 102,652 Maternal & Child Health 1,112,763 967,937 134,538 1,102,475 Women, Infants and Children Program 2,809,425 2,409,073 400,351 2,809,424 County Police Forfeiture 178,176 38,903 323,519 362,422 Civil Service Agreement 260,784 237,253 218 237,471 PM 2.5 Air Monitoring 375,680 89,995 291,102 381,097 Urban Area Security Initiative 2,451,384 17,849 2,433,549 2,451,398 State Homeland Security 1,556,317 34,871 1,537,454 1,572,325 Tuberculosis Control 24,204 24,438 4,294 28,732 Sexually Transmitted Diseases 577,465 272,804 306,299 579,103 Backlog Reduction 396,563 12,848 383,714 396,562 Sheriff Federal Asset Sharing 86,937 18,838 53,588 72,426 DA Federal Asset Sharing Fund 126,152 - 127,644 127,644 PA Commission on Crime and Delinquency 214,447 36,089 243,851 279,940 Day Reporting Center - 504,298 184,473 688,771 Air Pollution 1,105,182 1,831,401 1,820,320 3,651,721 Public Works 315,580 214,534 544,894 759,428 Second Chance Re-entry Initiative 2,346 - 2,346 2,346 Public Health Preparedness & Response for Bioterrorism 819,539 583,078 236,460 819,538 Hazard Mitigation Grant Program 134,484 - 173,932 173,932 Miscellaneous Revenue 298,916 71,831 219,642 291,473

Total federal programs 50,591,484 24,967,277 29,554,362 54,521,639 2015 County of Allegheny Comprehensive Annual Financial Report 251

Supplementary Information

Exhibit B-5 (Page 2 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Resources and Uses of Federal and State Grant Programs County Grants Funds Year Ended December 31, 2015

Resources Uses

Federal Other and Operating State Personnel Expenditures Total State Programs: 911 Emergency Communications 6,458,983 6,153,144 314,518 6,467,662 Act 24 Grant 24,251 - 43,013 43,013 Insurance Fraud Prevention Grant 420,088 397,510 22,747 420,257 Radiation Emergency Response 11,456 - 11,465 11,465 Hazardous Material Emergency Response 48,477 48,523 - 48,523 Department of Education Title I 233,583 - 233,583 233,583 Maternal and Child Health 848 9,777 1,358 11,135 Act 13 Marcellus Shell 1,556,705 - 1,556,705 1,556,705 Intermediate Punishment 945,745 1,305,446 13,443 1,318,889 Drug Court/Restrictive Intermediate Punishment 1,962,385 1,357,247 100,164 1,457,411 AIDS Program 12,230 405 9,079 9,484 Auto Theft Task Force 246,711 235,683 11,663 247,346 Sexually Transmitted Diseases 494,947 232,388 559,366 791,754 West Nile Virus 161,768 95,048 66,260 161,308 Tuberculosis Control 55,607 43,445 7,633 51,078 County Offender Supervision 1,429,324 84,048 2,758,050 2,842,098 Community Infrastructure 6,600,000 - 6,600,000 6,600,000 Vital Statistics Improvement 204,123 - 204,123 204,123 Hazard Mitigation Grant Program 39,449 - 173,932 173,932 911 Act 12 12,875,011 8,339,659 1,482,998 9,822,657 Greenways, Trails, and Recreation Programs 189,927 - 227,912 227,912 Miscellaneous Revenue 364,438 737,192 302,671 1,039,863

Total state programs 34,336,056 19,039,515 14,700,683 33,740,198

Total federal and state programs 84,927,540 44,006,792 44,255,045 88,261,837

Non-federal/state programs 43,390,292 21,177,296 8,140,591 29,317,887

Grand total $ 128,317,832 65,184,088 52,395,636 117,579,724 252 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit B-6 (Page 1 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Resources and Uses of Federal and State Grant Programs Human Service Grants Fund Year Ended December 31, 2015

Resources Uses

Federal Other and Operating State Personnel Expenditures Total Federal Programs: Behavioral Health - Operations $ 416,523 - 416,523 416,523 Drug and Alcohol - Operations 1,265,627 - 1,265,627 1,265,627 Early Intervention - Operations 894,156 - 894,156 894,156 Senior Companion Program 340,084 - 311,804 311,804 Aging Block Grant 6,786,284 - 6,786,284 6,786,284 CSW Title V 536,242 - 536,242 536,242 Nursing Home Transition 15,949 - - - HUD Grant 15,232,296 - 15,232,296 15,232,296 Family Center Initiative 1,208,571 - 1,208,571 1,208,571 Medicaid Waiver 613,388 - 613,388 613,388 Farmers Market Nutrition Program 21,973 - 21,973 21,973 Community Services Block Grant 1,182,659 - 1,182,659 1,182,659 Headstart Program 11,810,666 - 11,810,666 11,810,666 Workforce Investment Act 350,314 - 350,314 350,314 Medical Assistance Transportation Program 4,210,352 - 4,210,352 4,210,352 Employment, Advancement and Retention Network 3,312,527 - 3,312,527 3,312,527 Summer Food Program 502,076 - 502,076 502,076 Human Service Block Grant 9,418,522 - 9,418,522 9,418,522 Child & Adult Care Food Program 1,048,418 - 1,048,418 1,048,418 AMERICORP 1,391,026 - 1,391,026 1,391,026 Employment and Community Conservation 442,244 - 442,244 442,244 Emergency Food Assistance Program 1,402,244 - 1,402,244 1,402,244 Second Chance Act 554,292 - 554,292 554,292 Municipal CIT Expansion 15,676 - 15,676 15,676 Title XIX 2,519,800 - 2,519,800 2,519,800 Miscellaneous Federal 361 - (3) (3) Community Transition Program 885,201 - 885,201 885,201 Diligent Recruitment 362,538 - 362,538 362,538 Gateway Community Based Care Transition Program 37,817 - 37,817 37,817 Caseworker Visitation 56,104 - - - BJA-Coordinated Housing Grant 121,074 - 121,074 121,074

Total federal programs 66,955,004 - 66,854,307 66,854,307 2015 County of Allegheny Comprehensive Annual Financial Report 253

Supplementary Information

Exhibit B-6 (Page 2 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Resources and Uses of Federal and State Grant Programs Human Service Grants Fund Year Ended December 31, 2015

Resources Uses

Federal Other and Operating State Personnel Expenditures Total State Programs: Behavioral Health - Operations (460,615) - (671,165) (671,165) Mental Retardation - Operations (21,615) - (21,615) (21,615) Drug and Alcohol - Operations 6,161,921 - 6,161,921 6,161,921 Early Intervention - Operations 7,534,076 - 7,534,076 7,534,076 Aging Block Grant 28,715,015 - 28,715,015 28,715,015 Nursing Home Transition 108,607 - 108,607 108,607 Behavioral Health Managed Care 301,331,116 - 296,475,296 296,475,296 Family Center Initiative 962,707 - 962,707 962,707 Medicaid Waiver 616,387 - 616,387 616,387 Medical Assistance Transportation Program 4,728,818 - 4,728,818 4,728,818 Miscellaneous State 250,000 - (1,800) (1,800) Title XIX 2,446,207 - 2,446,207 2,446,207 HeadStart Program 2,611,792 - 2,611,792 2,611,792 Human Service Block Grant 112,440,255 - 112,440,255 112,440,255 Gateway Community Care Transition 37,817 - 37,817 37,817 Adult Protective Services 5,461 - 5,461 5,461 Mental Health & Justice Housing 62,497 - 62,497 62,497

Total state programs 467,530,446 - 462,212,276 462,212,276

Total federal and state programs 534,485,450 - 529,066,583 529,066,583

Non-federal/state programs 1,069,968 - 12,554,151 12,554,151

Grand total $ 535,555,418 - 541,620,734 541,620,734 254 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

2015 County of Allegheny Comprehensive Annual Financial Report 255

Supplementary Information

DEBT SERVICE FUND

The Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned to expenditures for principal and interest. 256 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information 2015 County of Allegheny Comprehensive Annual Financial Report 257

Supplementary Information

Exhibit C-1

COUNTY OF ALLEGHENY, PENNSYLVANIA Balance Sheet Debt Service Fund December 31, 2015 With Comparative Totals for December 31, 2014

2015 2014 Assets Restricted cash and short-term investments $ 3,131,995 5,567,805 Delinquent property taxes receivable, net of $227,278 allowance for uncollectible property taxes in 2015 and $226,062 in 2014 1,636,186 1,809,406 Liened property taxes receivable, net of $2,115,812 allowance for uncollectible property taxes in 2015 and $2,170,139 in 2014 6,105,516 5,586,956 Due from other funds: General Fund 178,365 197,451 Transportation Fund - 312,958 Due from federal government 121,316 - Accrued penalty and interest receivable 28,536 83,701 Accrued interest receivable 767 1,194

Total assets $ 11,202,681 13,559,471

Liabilities Vouchers payable $ 482 1,404 Accrued interest payable 1,759 1,759 Due to other funds: General Fund 136,839 1,777,685 Tax refunds payable 180,821 125,829 Matured bonds payable 113,868 153,866

Total liabilities 433,769 2,060,543

Deferred Inflows of Resources Unavailable revenue - property taxes 7,620,612 7,396,362

Fund balance Restricted for: Debt service payments for energy bonds 2,760,294 2,208,235 Capitalized interest for debt service payments - 1,894,331 Assigned to: Debt service 388,006 -

Total fund balance 3,148,300 4,102,566

Total liabilities, deferred inflows of resources, and fund balances $ 11,202,681 13,559,471 258 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit C-2

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Debt Service Fund Year Ended December 31, 2015 With Comparative Actual Amounts for Year Ended December 31, 2014

2015 Final Budget Actual Variance 2014

Revenues: Property taxes: Current $ 57,744,000 53,270,924 (4,473,076) 55,736,981 Delinquent 2,672,000 2,414,669 (257,331) 2,301,992 Liened 608,000 772,958 164,958 744,727 Interest and penalty 473,000 452,554 (20,446) 515,005 Tax refunds (939,000) (1,118,253) (179,253) (1,705,141)

60,558,000 55,792,852 (4,765,148) 57,593,564

Federal revenues 328,184 299,681 (28,503) 324,498 State revenues 84,000 81,669 (2,331) 92,862 Local government units revenues 2,500 15,606 13,106 17,170 Interest earnings 46,060 57,761 11,701 53,167 Miscellaneous revenues - - - 3,998

Total revenues 61,018,744 56,247,569 (4,771,175) 58,085,259

Expenditures: Debt service: Principal retirement 34,562,500 34,562,500 - 25,252,500 Interest charges 38,454,875 37,954,783 (500,092) 37,110,261 Costs of issuance - - - 666,319

Total expenditures 73,017,375 72,517,283 (500,092) 63,029,080

Excess (Deficiency) of revenues over expenditures (11,998,631) (16,269,714) (4,271,083) (4,943,821)

Other financing sources (uses): Issuance of general obligation refunding bonds - - - 123,925,000 Premium on refunding bonds - - - 13,819,538 Payment to refunded bond escrow agent - - - (137,078,219) Transfers in 10,104,300 15,315,448 5,211,148 4,512,958 Transfers out - - - (1,777,685)

Total other financing sources 10,104,300 15,315,448 5,211,148 3,401,592

Net change in fund balance (1,894,331) (954,266) 940,065 (1,542,229)

Fund balance at beginning of year 4,102,566 4,102,566 - 5,644,795

Fund balance at end of year $ 2,208,235 3,148,300 940,065 4,102,566 2015 County of Allegheny Comprehensive Annual Financial Report 259

Supplementary Information

CAPITAL PROJECTS FUND

The Capital Projects Fund accounts for financial resources that are restricted, committed, or assigned for capital outlays, including acquisition or construction of capital facilities and other capital assets (other than those financed by Proprietary Funds). 260 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information 2015 County of Allegheny Comprehensive Annual Financial Report 261

Supplementary Information

Exhibit D-1

COUNTY OF ALLEGHENY, PENNSYLVANIA Balance Sheet Capital Projects Fund December 31, 2015 With Comparative Totals for December 31, 2014

2015 2014 Assets

Cash and short-term investments $ 94,131,682 136,830,935 Due from other funds: General Fund 17,516,066 5,901,412 17,516,066 5,901,412 Due from other governments: Federal 7,300,482 13,890,483 State 7,610,820 5,125,675 14,911,302 19,016,158

Due from component units 28,313 149,090 Accounts receivable - other 86,458 470,751 Accrued interest receivable 29,811 45,515

Total assets $ 126,703,632 162,413,861

Liabilities and Fund Balances

Liabilities: Vouchers payable $ 2,645,650 1,177,190 Due to other funds: General Fund 6,449,895 6,378,863 6,449,895 6,378,863

Accrued liabilities 11,556,210 12,883,649 Due to component units 2,374 52,740 Retainage payable 337,758 614,213

Total liabilities 20,991,887 21,106,655

Fund balances: Restricted for: Bridges - 4,841,524 Roads 401,966 3,650,988 Parks' system 1,525,358 - Feasibility studies - 320,633 Various projects 103,784,421 132,494,061

Total fund balances 105,711,745 141,307,206

Total liabilities and fund balances $ 126,703,632 162,413,861 262 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit D-2

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Revenues, Expenditures and Changes in Fund Balances Capital Projects Fund Year Ended December 31, 2015 With Comparative Totals for Year Ended December 31, 2014

2015 2014 Revenues: Federal revenues $ 7,274,574 28,088,448 State revenues 8,600,946 13,911,712 Local governmental units revenues 1,467,424 3,305,245 Interest Income 527,936 290,820 Miscellaneous 2,014,403 2,803,905

Total revenues 19,885,283 48,400,130

Expenditures: Bridges 12,817,539 27,729,974 Roads 21,232,057 15,762,395 Transit system 10,000,000 8,972,523 Parks' system 4,464,409 5,839,916 Buildings 6,876,543 12,246,771 Equipment 5,978,033 8,651,470 Feasibility studies 1,055,107 117,577 Cost of issuance - 334,621

Total expenditures 62,423,688 79,655,247

Deficiency of revenues over expenditures (42,538,405) (31,255,117)

Other financing sources (uses): Issuance of general obligation bonds - 63,570,000 Premium on bonds - 6,788,265 Transfers in 7,450,000 5,893,690 Transfers out (507,056) (286,469)

Total other financing sources 6,942,944 75,965,486

Net change in fund balances (35,595,461) 44,710,369

Fund balances at beginning of year 141,307,206 96,596,837

Fund balances at end of period $ 105,711,745 141,307,206 2015 County of Allegheny Comprehensive Annual Financial Report 263

Supplementary Information

INTERNAL SERVICE FUND

The Internal Service Fund is used to account for Risk Management costs for the Medical/Dental and Automobile, General and Public Official self-insurance liabilities of the County. 264 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information 2015 County of Allegheny Comprehensive Annual Financial Report 265

Supplementary Information

Exhibit E-1

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Net Position Internal Service Fund December 31, 2015 With Comparative Totals for December 31, 2014

Risk Management Fund

2015 2014

Assets

Current assets: Cash and short-term investments $ 777,385 668,830 Due from other funds: General Fund 110,286 139,892 Accounts receivable - 7,149

Total assets 887,671 815,871

Liabilities

Current liabilities: Vouchers payable 115,484 - Due to other funds: General Fund 102,643 114,484

Accrued liabilities 669,544 701,387

Total liabilities 887,671 815,871

Net Position

Net Position:

Unrestricted net position $ - - 266 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit E-2

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Revenues, Expenses and Changes in Net Position Internal Service Fund Year Ended December 31, 2015 With Comparative Totals for December 31, 2014

Risk Management Fund

2015 2014

Operating revenues: Contribution - employee $ 218,762 229,717 Contribution - employer 1,289,394 1,327,046 Total operating revenues 1,508,156 1,556,763

Operating expenses: Insurance claims expense 1,508,156 1,556,763 Total operating expenses 1,508,156 1,556,763

Operating loss - -

Non-operating expenses: Transfers In - -

Change in net position - -

Net position at beginning of year - -

Netpositionatendofyear $ - - 2015 County of Allegheny Comprehensive Annual Financial Report 267

Supplementary Information

Exhibit E-3

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Cash Flows Internal Service Fund Year Ended December 31, 2015

Risk Management Fund

Cash flows from operating activities Receipts from customers $ 1,544,911 Payments to suppliers (1,436,356) Net cash provided by operating activities 108,555

Balance - beginning of year 668,830

Balance - end of year $ 777,385

Adjustments to reconcile operating income to net cash provided by operating activities:

Decrease in accounts receivable $ 7,149 Decrease in due from other funds 29,606 Decrease in due to other funds (11,841) Increase in vouchers payable 115,484 Decrease in accrued liabilities (31,843) Total adjustments 108,555

Net cash provided by operating activities $ 108,555 268 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

2015 County of Allegheny Comprehensive Annual Financial Report 269

Supplementary Information

TRUST AND AGENCY FUNDS

The Trust and Agency Funds are used to account for assets held by the County in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. 270 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

The County's Trust and Agency Funds consist of:

PENSION TRUST FUND -- Accounts for the County's and the employees' retirement pension plan contributions and benefit disbursements. AGENCY FUND -- Accounts for amounts collected by the County for fees, fines, taxes and other miscellaneous items which are held by the County as agent for others. 2015 County of Allegheny Comprehensive Annual Financial Report 271

Supplementary Information

Exhibit F-1

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Net Position Pension Trust Fund December 31, 2015 With Comparative Totals for December 31, 2014

2015 2014

Assets

Cash and short-term investments $ 14,563,576 25,904,524 Investments (at fair value): Equity: U.S. common and preferred stock 89,073,003 84,130,836 American Depositary Receipts (ADRs) 1,036,580 1,246,784 S&P 500 index fund 71,721,915 79,859,287 Non-U.S. stocks and equity mutual fund 128,906,545 161,515,591 Bonds and Notes: Corporate certificates of deposit 3,838,745 5,720,089 U.S. government and related agency debt 17,828,917 16,946,039 Fannie Mae and Freddie Mac debt 7,698,991 6,775,673 Fixed income mutual funds 130,694,926 111,094,601 U.S. corporate debt instruments 57,451,339 66,445,606 Non-U.S. government and corporate debt 14,220,467 14,244,636 Other Investments: Hedge funds 127,428 167,041 Real estate 103,516,797 85,359,542 Commodities fund 14,221,684 19,183,852 Venture capital / private equity 166,457,212 155,931,421 Amount due from brokers 197,688 431,869 Accrued interest and dividends receivable 1,361,366 1,382,718 Accrued employer contributions receivable 600,291 1,593,533 Accrued employee contributions receivable 601,948 1,508,102 Other assets 2,896 7,232

Total assets 824,122,314 839,448,976

Liabilities

Accrued payroll 3,448 10,881 Vouchers payable 9,686 18,755 Payroll withholdings 2,459 4,713 Accrued liabilities 2,209,736 1,593,820 Amount due to brokers 433,009 728,972 Other liabilities 15,321 8,722

Total liabilities 2,673,659 2,365,863

Net Position

Restricted for Pensions $ 821,448,655 837,083,113 272 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit F-2

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Net Position Pension Trust Fund Year Ended December 31, 2015 With Comparative Totals for Year Ended December 31, 2014

2015 2014 Additions: Contributions: Employee $ 33,151,939 30,170,618 Employer 32,925,519 29,830,945 Total contributions 66,077,458 60,001,563

Investment income: Net appreciation (depreciation) in fair value of investments (4,242,909) 23,119,259 Interest 5,099,530 5,641,503 Dividends 6,996,850 7,365,304 Stock loan income 134,761 119,215 Partnership income 6,140,666 3,001,465 14,128,898 39,246,746 Less: Investment management fees 3,157,341 3,424,119

Total investment gain - net 10,971,557 35,822,627

Miscellaneous income 110,310 170,782

Total additions - net 77,159,325 95,994,972

Deductions: Benefit payments 85,043,469 78,832,991 Refunds of employee contributions 6,424,892 4,648,889 Salaries, wages and related expenses 295,784 281,725 Administrative and miscellaneous expenses 1,029,638 992,334

Total deductions 92,793,783 84,755,939

Change in net position (15,634,458) 11,239,033

Net position - beginning of year 837,083,113 825,844,080

Net position - end of year $ 821,448,655 837,083,113 2015 County of Allegheny Comprehensive Annual Financial Report 273

Supplementary Information

Exhibit F-3

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Assets and Liabilities Combined Agency Funds December 31, 2015 With Comparative Totals for December 31, 2014

2015 2014 Assets

Cash and short-term investments $ 42,571,810 49,793,235 Accrued interest and dividends receivable 371 2,962 Other assets 5,371,981 6,373,729

Total assets $ 47,944,162 56,169,926

Liabilities

Vouchers payable $ 1,293,841 1,153,957 Due to other governments 7,559,570 7,638,186 Due to litigants 8,798,487 7,418,038 Collections held in trust 15,827,868 26,391,469 Other liabilities 14,464,396 13,568,276

Total liabilities $ 47,944,162 56,169,926 274 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit F-4 (Page 1 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

SHERIFF'S OFFICE

ASSETS Cash $ 760,160 2,430,993 2,897,698 293,455

LIABILITIES Due to litigants $ 760,160 2,430,993 2,897,698 293,455

COURT RECORDS-CRIMINAL DIVISION

ASSETS Cash $ 1,424,280 18,367,367 18,208,387 1,583,260

LIABILITIES Due to other governments 342,332 - 17,769 324,563 Due to other funds - 700,370 700,370 - Due to litigants 1,067,111 343,164 166,415 1,243,860 Other liabilities 14,837 - - 14,837 $ 1,424,280 1,043,534 884,554 1,583,260

COURT RECORDS-WILLS/ORPHANS DIVISION

ASSETS Cash $ 1,404,399 5,279,499 5,259,330 1,424,568

LIABILITIES Due to other governments 22,176 331,940 332,415 21,701 Other liabilities 1,382,223 4,947,560 4,926,916 1,402,867 $ 1,404,399 5,279,500 5,259,331 1,424,568

COURT RECORDS-CIVIL DIVISION

ASSETS Cash $ 4,898,159 18,324,569 16,684,185 6,538,543 Other assets 782,214 802,523 782,215 802,522 5,680,373 19,127,092 17,466,400 7,341,065 LIABILITIES Due to other governments 89,606 79,893 89,606 79,893 Due to litigants 5,590,767 19,047,198 17,376,793 7,261,172 $ 5,680,373 19,127,091 17,466,399 7,341,065 2015 County of Allegheny Comprehensive Annual Financial Report 275

Supplementary Information

Exhibit F-4 (Page 2 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

REAL ESTATE DEPARTMENT

ASSETS Cash $ 6,882,140 154,629,187 155,154,506 6,356,821 Other assets 489,612 652,423 489,612 652,423 7,371,752 155,281,610 155,644,118 7,009,244 LIABILITIES Due to other governments 7,034,986 132,181,423 132,215,923 7,000,486 Due to other funds - 22,131,767 22,131,767 - Other liabilities 336,766 6,987 334,995 8,758 $ 7,371,752 154,320,177 154,682,685 7,009,244

MISCELLANEOUS AGENCIES

ASSETS Cash $ 1,035,864 7,271,023 7,311,345 995,542

LIABILITIES Due to other funds - 61,046 61,046 - Other liabilities 1,035,864 7,209,976 7,250,298 995,542 $ 1,035,864 7,271,022 7,311,344 995,542 CYF CLIENT INCOME

ASSETS Cash $ 1,178,708 1,445,728 1,376,906 1,247,530

LIABILITIES Due to other funds - 1,707,327 1,707,327 - Vouchers payable 914 41,124 39,438 2,600 Other liabilities 1,177,794 678,111 610,975 1,244,930 $ 1,178,708 2,426,562 2,357,740 1,247,530 TAX REFUNDS

ASSETS Cash $ 403,339 288,466 316,275 375,530 Due from other funds - 409,014 409,014 - 403,339 697,480 725,289 375,530

LIABILITIES Vouchers payable 403,339 92,739 120,548 375,530 Other liabilities - 195,727 195,727 - $ 403,339 288,466 316,275 375,530 276 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit F-4 (Page 3 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

GUARDIAN ACCOUNT

ASSETS Cash $ 197,532 139,539 185,748 151,323

LIABILITIES Vouchers payable 86,306 149,615 188,109 47,812 Due to other funds - 208,700 208,700 - Due to other governments 2,279 - 2,279 - Other liabilities 108,947 88,499 93,935 103,511 $ 197,532 446,814 493,023 151,323

SOLICITOR'S PROPERTY FUND

ASSETS Cash $ 155,633 100,086 102,083 153,636 Due from other funds - 95,000 95,000 - 155,633 195,086 197,083 153,636

LIABILITIES Other liabilities $ 155,633 - 1,997 153,636

RENTAL LEASE MAINTENANCE

ASSETS Cash $ 162,226 51,188 - 213,414

LIABILITIES Other liabilities $ 162,226 51,188 - 213,414

ESCROW TAXES UNDER $1

ASSETS Cash $ 60,378 - 2,000 58,378

LIABILITIES Other liabilities $ 60,378 - 2,000 58,378 2015 County of Allegheny Comprehensive Annual Financial Report 277

Supplementary Information

Exhibit F-4 (Page 4 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

UNCLAIMED CORONER FUNDS

ASSETS Cash $ 6,419 13,668 13,668 6,419

LIABILITIES Other liabilities $ 6,419 - - 6,419

AIR POLLUTION - CLEAN AIR

ASSETS Cash $ 12,152,326 - 12,152,326 - Accrued interest 2,668 2,668 Other assets 1,184,505 - 1,184,505 - 13,339,499 - 13,339,499 -

LIABILITIES Other liabilities 13,339,499 - 13,339,499 - $ 13,339,499 - 13,339,499 -

HOTEL TAX, CONVENTION CENTER PROJECT

ASSETS Cash $ 1,265,197 13,780,000 13,765,000 1,280,197 Due from other funds - 26,396,667 26,396,667 - 1,265,197 40,176,667 40,161,667 1,280,197

LIABILITIES Collections held in trust 1,265,197 13,780,000 13,765,000 1,280,197 $ 1,265,197 13,780,000 13,765,000 1,280,197

HOTEL ROOM RENTAL TAX

ASSETS

Cash $ 38,486 34,525,363 34,525,363 38,486

LIABILITIES Due to other funds - 30,966,307 30,966,307 - Other liabilities 38,486 - - 38,486 $ 38,486 30,966,307 30,966,307 38,486 278 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit F-4 (Page 5 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

PGH CONVENTION AND VISITORS BUREAU ROOM TAX

ASSETS Cash $ 1,569,742 9,801,689 10,529,267 842,164 Due from other funds - 18,787,757 18,787,757 - 1,569,742 28,589,446 29,317,024 842,164

LIABILITIES Other liabilities $ 1,569,742 9,801,569 10,529,147 842,164

EMPLOYEE ACTIVITIES

ASSETS Cash $ 5,401 - - 5,401

LIABILITIES Other liabilities $ 5,401 - - 5,401

KANE - PATIENTS' MONEY

ASSETS Cash $ 1,052,218 8,974,246 8,424,330 1,602,134 Accrued interest 294 647 570 371 1,052,512 8,974,893 8,424,900 1,602,505

LIABILITIES Vouchers payable 44,958 8,370,689 8,337,129 78,518 Due to other funds - 3,530,374 3,530,374 - Other liabilities 1,007,554 8,822,123 8,305,690 1,523,987 $ 1,052,512 20,723,186 20,173,193 1,602,505

MCKEESPORT CRAWFORD ESTATE GIFT KANE FUND

ASSETS Cash $ 5,987 - 1,260 4,727 Other assets 21,437 - - 21,437 27,424 - 1,260 26,164

LIABILITIES Vouchers payable 105 - - 105 Other liabilities 27,319 - 1,260 26,059 $ 27,424 - 1,260 26,164 2015 County of Allegheny Comprehensive Annual Financial Report 279

Supplementary Information

Exhibit F-4 (Page 6 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

BOROUGH OF MONROEVILLE HOTEL TAX

ASSETS Cash $ 112,659 597,105 603,799 105,965 Due from other funds - 1,094,119 1,094,119 - 112,659 1,691,224 1,697,918 105,965

LIABILITIES Other liabilities $ 112,659 596,695 603,389 105,965

DAVID L. LAWRENCE CONVENTION CENTER - HOTEL ROOM TAX

ASSETS Cash $ 4,548,952 8,902,033 6,150,000 7,300,985 Due from other funds - 10,994,738 10,994,738 - Other assets 3,540,000 - - 3,540,000 8,088,952 19,896,771 17,144,738 10,840,985

LIABILITIES Collections held in trust $ 8,088,952 8,902,033 6,150,000 10,840,985

MEMORIAL HALL LIBRARY AND MUSEUM

ASSETS Other assets $ 29,281 - - 29,281

LIABILITIES Other liabilities $ 29,281 - - 29,281 280 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit F-4 (Page 7 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

DA - FORFEITURE ACCOUNT

ASSETS Cash $ 818,749 954,455 761,037 1,012,167 (1)

LIABILITIES Vouchers payable 10 - 10 - Due to other funds - 703,721 703,721 - Other liabilities 818,739 1,066,620 873,192 1,012,167 $ 818,749 1,770,341 1,576,923 1,012,167

DA - DANET GRANT

ASSETS Cash $ - 563,312 553,979 9,333 (2)

LIABILITIES Other liabilities $ - 563,312 553,979 9,333

KEEP "THE COMMANDMENTS"

ASSETS Cash $ 1,688 - - 1,688

LIABILITIES Other liabilities $ 1,688 - - 1,688

(1) Of this balance, $33,971 is maintained separately by the District Attorney. (2) Cash from the DANET Grant is maintained separately by the District Attorney. 2015 County of Allegheny Comprehensive Annual Financial Report 281

Supplementary Information

Exhibit F-4 (Page 8 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

PARKS - FACILITY CHANGE FUNDS

ASSETS Cash $ - 77,550 73,280 4,270 Due from other funds - 20,780 20,780 - - 98,330 94,060 4,270

LIABILITIES Due to other funds - 23,000 23,000 - Other liabilities - 6,500 2,230 4,270 $ - 29,500 25,230 4,270

ENVIRONMENTAL HEALTH

ASSETS Cash $ 555,157 148,887 55,260 648,784 Due from other funds - 53,535 53,535 - Other assets 183,398 - - 183,398 738,555 202,422 108,795 832,182

LIABILITIES Other liabilities $ 738,555 146,127 52,500 832,182

PA LICENSES HUNTING/ FISHING/DOGS/BOATS

ASSETS

Cash $ 147,794 1,274,871 1,040,276 382,389

LIABILITIES Vouchers payable 987 1,287,047 1,038,572 249,462 Due to other governments 146,807 1,271,413 1,285,293 132,927 $ 147,794 2,558,460 2,323,865 382,389 282 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit F-4 (Page 9 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

PRISONER WELFARE FUND

ASSETS Cash $ 1,823,019 1,857,592 1,537,783 2,142,828 Other assets 143,282 5,805 6,167 142,920 1,966,301 1,863,397 1,543,950 2,285,748

LIABILITIES Vouchers payable 12,434 1,490,335 1,490,662 12,107 Due to other funds - 1,539,838 1,539,838 - Other liabilities 1,953,867 1,963,545 1,643,771 2,273,641 $ 1,966,301 4,993,718 4,674,271 2,285,748

PROPERTY ASSESSMENT - CHANGE FUND

ASSETS Cash $ - 20 20 -

LIABILITIES Due to other funds $ - 20 20 -

CHILDREN, YOUTH & FAMILY - DONATIONS

ASSETS Cash $ 251,619 34,163 238,958 46,824

LIABILITIES Vouchers payable - 65 - 65 Other liabilities $ 251,619 - 204,860 46,759 $ 251,619 65 204,860 46,824

CUSTODY PSYCHOLOGICAL EVALUATIONS

ASSETS Cash $ 169,763 451,550 429,293 192,020

LIABILITIES Vouchers payable 4,086 432,320 431,333 5,073 Other liabilities 165,677 398,070 376,800 186,947 $ 169,763 830,390 808,133 192,020 2015 County of Allegheny Comprehensive Annual Financial Report 283

Supplementary Information

Exhibit F-4 (Page 10 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

ESCROW FOR TAXPAYER REFUNDS

ASSETS Cash $ 305,277 11,609,241 11,547,409 367,109

LIABILITIES Vouchers payable 305,277 8,754,163 8,692,331 367,109 Due to other funds - 18,092,114 18,092,114 - Other liabilities - 7,938,146 7,938,146 - $ 305,277 34,784,423 34,722,591 367,109

CUSTODY MEDIATION PROGRAM

ASSETS Cash $ 350,131 200 1,300 349,031

LIABILITIES Vouchers payable 12,220 200 1,300 11,120 Other liabilities 337,911 - - 337,911 $ 350,131 200 1,300 349,031

LANDFILL TRUST

ASSETS Cash $ 3,697,821 10,238 1,373 3,706,686 Due from other funds - 6,658 6,658 - 3,697,821 16,896 8,031 3,706,686

LIABILITIES Collections held in trust $ 3,697,821 8,865 - 3,706,686

RENT WITHHOLDING

ASSETS Cash $ 14,149 4,350 6,450 12,049

LIABILITIES Other liabilities $ 14,149 4,350 6,450 12,049 284 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit F-4 (Page 11 of 11)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Changes in Assets and Liabilities All Agency Funds By Level of Fiduciary Responsibility Year Ended December 31, 2015

Balance Balance January 1, 2015 Additions Deductions December 31, 2015

SHERIFF SALE ESCROW

ASSETS Cash $ 2,276,610 20,787,712 19,989,968 3,074,354 Due from other funds - 20,315,848 20,315,848 - 2,276,610 41,103,560 40,305,816 3,074,354

LIABILITIES Vouchers payable 283,321 19,890,691 20,035,326 138,686 Other liabilities 1,993,289 20,404,931 19,462,552 2,935,668 $ 2,276,610 40,295,622 39,497,878 3,074,354

XPAND TAX SALE COLLECTIONS

ASSETS Cash $ 8,823 219,878 226,220 2,481

LIABILITIES Vouchers Payable - 228,701 226,220 2,481 Other Liabilities 8,823 219,878 228,701 - $ 8,823 448,579 454,921 2,481

NORTH PARK LAKE ESCROW

ASSETS Cash $ 20,000 - - 20,000

LIABILITIES Other liabilities $ 20,000 - - 20,000

WORKERS' COMP TRUST FUND

ASSETS Cash $ 18,146 - - 18,146

LIABILITIES Other liabilities $ 18,146 - - 18,146

TOWER TAX AR SALE COLLECT FUND

ASSETS Cash $ 14,284 326,036 337,147 3,173

LIABILITIES Vouchers payable - 340,320 337,147 3,173 Other liabilities 14,284 326,036 340,320 - $ 14,284 666,356 677,467 3,173 2015 County of Allegheny Comprehensive Annual Financial Report 285

Supplementary Information

CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 286 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit G-1 (Page 1 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Capital Assets Used In the Operation of Governmental Funds Schedule of Capital Assets By Function and Activity December 31, 2015

Furniture, Fixtures Land And Function and Activity Total Land Improvements Buildings Infrastructure Equipment

General government: Controller $ 737,235 - - - - 737,235 Medical Examiner 4,472,586 - - - - 4,472,586

District Attorney 914,028 - - - - 914,028 Report Financial Annual Comprehensive Allegheny of County 2015 Sheriff 817,968 - - - - 817,968 Treasurer 309,605 - - - - 309,605 Chief Executive/County Manager 34,814 - - - - 34,814 County Council 43,061 - - - - 43,061 Court of Common Pleas 4,232,262 - - - - 4,232,262 Administrative Services: Property Assessment 306,677 - - - - 306,677 Elections 12,738,366 - - - - 12,738,366

Property and Supplies 532,735 - - - - 532,735 Information Supplementary Management Information Services 4,911,872 - - - - 4,911,872 Property Management 33,417 - - - - 33,417 Veterans' Services 3,986 - - - - 3,986 Human Resources 2,810 - - - - 2,810 Law 42,328 - - - - 42,328 Public Defender 22,046 - - - - 22,046 Court Records 868,653 - - - - 868,653 Real Estate 124,264 - - - - 124,264 Facilities Management 152,292 - - - - 152,292 General government land and buildings 92,191,170 1,639,586 - 90,551,584 - -

Total general government 123,492,175 1,639,586 - 90,551,584 - 31,301,005 287 288 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Exhibit G-1 (Page 2 of 2) Information Supplementary

COUNTY OF ALLEGHENY, PENNSYLVANIA Capital Assets Used In the Operation of Governmental Funds Schedule of Capital Assets By Function and Activity December 31, 2015

Furniture, Fixtures Land And Function and Activity Total Land Improvements Buildings Infrastructure Equipment

Culture and recreation 86,556,467 6,629,173 3,944,622 49,605,034 21,706,828 4,670,810 Economic development 146,558 - - - - 146,558 Health and welfare 120,879,003 3,679,837 - 103,031,282 - 14,167,884 Public safety 198,810,575 4,077,783 351,399 167,515,999 - 26,865,394 Public works 638,119,357 8,578,123 3,896,880 35,502,413 566,084,130 24,057,811

Total governmental funds capital assets 1,168,004,135 24,604,502 8,192,901 446,206,312 587,790,958 101,209,462

Less: Accumulated depreciation (434,528,250) - (7,340,147) (199,974,527) (190,001,742) (37,211,834)

Total 733,475,885 24,604,502 852,754 246,231,785 397,789,216 63,997,628

Construction in progress 26,579,165

Net governmental funds capital assets $ 760,055,050 2015 County of Allegheny Comprehensive Annual Financial Report 289

Supplementary Information

Exhibit G-2

COUNTY OF ALLEGHENY, PENNSYLVANIA Capital Assets Used in the Operation of Governmental Funds Schedule of Changes in Capital Assets by Function and Activity Year Ended December 31, 2015

Governmental Governmental Funds Funds Capital Assets Capital Assets Function and Activity 01/01/2015 Additions Deductions 12/31/2015

General government: Controller $ 795,671 - 58,436 737,235 Medical Examiner 4,533,743 101,030 162,187 4,472,586 District Attorney 903,844 64,496 54,312 914,028 Sheriff 959,897 9,500 151,429 817,968 Treasurer 337,996 - 28,391 309,605 Chief Executive/County Manager 38,937 - 4,123 34,814 County Council 48,308 - 5,247 43,061 Court of Common Pleas 4,453,175 136,654 357,567 4,232,262 Administrative Services: Property Assessment 417,200 - 110,523 306,677 Elections 12,747,994 - 9,628 12,738,366 Property and Supplies 545,137 - 12,402 532,735 Management Information Services 5,596,654 16,013 700,795 4,911,872 Property Management 41,846 - 8,429 33,417 Veterans' Services 3,986 - - 3,986 Human Resources 2,810 - - 2,810 Law 58,068 - 15,740 42,328 Public Defender 24,946 - 2,900 22,046 Court Records 943,428 - 74,775 868,653 Real Estate 128,809 - 4,545 124,264 Facilities Management 8,762 143,530 - 152,292 General government land and buildings 92,095,198 95,972 - 92,191,170

Total general government 124,686,409 567,195 1,761,429 123,492,175

Culture and recreation 82,448,252 4,108,215 - 86,556,467 Economic development 127,310 32,885 13,637 146,558 Health and welfare 121,651,767 1,504,510 2,277,274 120,879,003 Public safety 198,763,312 1,023,442 976,179 198,810,575 Public works 573,632,044 64,998,120 510,807 638,119,357

Total governmental fund capital assets 1,101,309,094 72,234,367 5,539,326 1,168,004,135

Construction in progress 65,890,713 27,652,144 66,963,692 26,579,165 Total 1,167,199,807 99,886,511 72,503,018 1,194,583,300

Less: Accumulated depreciation (414,721,362) (25,346,214) (5,539,326) (434,528,250)

Net governmental funds capital assets $ 752,478,445 74,540,297 66,963,692 760,055,050 290 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit G-3

COUNTY OF ALLEGHENY, PENNSYLVANIA Capital Assets Used in the Operation of Governmental Funds Schedule of Capital Assets by Source December 31, 2015

Governmental funds capital assets: Land $ 24,604,502 Land Improvements 8,192,901 Buildings 417,942,713 Buildings - Capital Lease 7,678,839 Buildings - Leasehold Improvements 20,584,760 Infrastructure 587,790,958 Construction in progress 26,579,165 Furniture, fixtures and equipment 101,209,462

Total governmental funds capital assets 1,194,583,300

Less: Accumulated depreciation (434,528,250)

Net governmental funds capital assets $ 760,055,050

Investment in governmental funds capital assets by source: Capital Projects Fund $ 1,140,834,324 General Fund 27,847,364 Special Revenue Fund 22,377,772 Human Service Grants Fund 3,224,338 Agency Funds 277,168 Contributions 22,334

Total governmental funds capital assets 1,194,583,300

Less: Accumulated depreciation (434,528,250)

Net governmental funds capital assets $ 760,055,050 2015 County of Allegheny Comprehensive Annual Financial Report 291

Supplementary Information

BUDGETARY COMPARISON SCHEDULE FOR OPERATING BUDGET

This schedule combines the General Fund, Debt Service Fund, Transportation Fund and Liquid Fuel Tax Special Revenue Fund to demonstrate the County's compliance with its Operating Budget. 292 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

COUNTY OF ALLEGHENY, PENNSYLVANIA Budgetary Comparison Schedule For Operating Budget Year Ended December 31, 2015

Budget ------

Original Final General Budget Budget Fund Revenues: Property taxes $ 344,245,000 344,245,000 287,031,512 Sales and use tax 46,373,000 46,373,000 47,559,039 Alcoholic beverage and rental vehicle taxes 41,856,600 41,856,600 - Hotel tax 5,290,000 5,290,000 4,225,196 Gaming local share assessment 5,630,000 5,630,000 5,494,366 Licenses and permits 2,885,800 2,885,800 2,774,956 Federal revenues 87,200,423 87,200,423 81,771,508 State revenues 189,176,697 189,176,697 184,844,858 Local government units revenues 19,235,300 19,235,300 19,233,120 Charges for services and facilities 80,626,000 80,626,000 81,671,674 Fines and forfeitures 4,670,000 4,670,000 4,085,661 Interest earnings 308,000 308,000 475,033 Miscellaneous 3,448,961 3,448,961 3,110,401

Total revenues 830,945,781 830,945,781 722,277,324

Expenditures: Current: General government 199,113,848 200,427,048 194,140,820 Public safety 104,471,200 104,283,244 103,445,492 Public works 22,471,364 22,539,766 17,717,368 Transportation 29,082,188 29,082,188 - Health and welfare 344,860,627 344,755,812 335,388,486 Culture and recreation 15,273,804 15,910,240 15,268,098 Education 24,314,369 24,314,369 24,314,369 Economic development 7,755,717 7,755,717 7,142,838 Debt service: Principal retirement 34,562,500 34,562,500 - Interest charges 38,454,875 38,454,875 -

Total expenditures 820,360,492 822,085,759 697,417,471

Excess (deficiency) of revenues over expenditures 10,585,289 8,860,022 24,859,853

Other financing sources (uses): Transfers in 11,854,300 11,854,300 1,687,644 Transfers out (28,913,808) (28,913,808) (16,468,017)

Total other financing sources (uses) (17,059,508) (17,059,508) (14,780,373) 2015 County of Allegheny Comprehensive Annual Financial Report 293

Supplementary Information

Exhibit H (Page 1 of 2)

------Actual ------

Debt Transportation Liquid Interfund Variance to Service Fund Fuel Transfer Eliminations Total Final Budget

55,792,852 - - - 342,824,364 (1,420,636) - - - - 47,559,039 1,186,039 - 47,597,341 - - 47,597,341 5,740,741 - - - - 4,225,196 (1,064,804) - - - - 5,494,366 (135,634) - - - - 2,774,956 (110,844) 299,681 - - - 82,071,189 (5,129,234) 81,669 - 4,056,556 - 188,983,083 (193,614) 15,606 - - - 19,248,726 13,426 - - - - 81,671,674 1,045,674 - - - - 4,085,661 (584,339) 57,761 - 1,885 - 534,679 226,679 - - - - 3,110,401 (338,560)

56,247,569 47,597,341 4,058,441 - 830,180,675 (765,106)

- - - - 194,140,820 (6,286,228) - - - - 103,445,492 (837,752) - - 4,046,946 - 21,764,314 (775,452) - 29,082,188 - - 29,082,188 - - - - - 335,388,486 (9,367,326) - - - - 15,268,098 (642,142) - - - - 24,314,369 - - - - - 7,142,838 (612,879)

34,562,500 - - - 34,562,500 - 37,954,783 - - - 37,954,783 (500,092)

72,517,283 29,082,188 4,046,946 - 803,063,888 (19,021,871)

(16,269,714) 18,515,153 11,495 - 27,116,787 18,256,765

15,315,448 - - (15,315,448) 1,687,644 (10,166,656) - (17,198,318) - 15,315,448 (18,350,887) 10,562,921

15,315,448 (17,198,318) - - (16,663,243) 396,265 294 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

COUNTY OF ALLEGHENY, PENNSYLVANIA Budgetary Comparison Schedule For Operating Budget Year Ended December 31, 2015

Budget ------

Original Final General Budget Budget Fund

Net change in fund balances (6,474,219) (8,199,486) 10,079,480

Fund balances at beginning of year 78,544,051 78,544,051 59,646,871

Fund balances at end of year $ 72,069,832 70,344,565 69,726,351 2015 County of Allegheny Comprehensive Annual Financial Report 295

Supplementary Information

Exhibit H (Page 2 of 2)

------Actual ------

Debt Transportation Liquid Interfund Variance to Service Fund Fuel Transfer Eliminations Total Final Budget

(954,266) 1,316,835 11,495 - 10,453,544 18,653,030

4,102,566 14,794,378 236 - 78,544,051 -

3,148,300 16,111,213 11,731 - 88,997,595 18,653,030 296 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

2015 County of Allegheny Comprehensive Annual Financial Report 297

Supplementary Information

NONMAJOR COMPONENT UNITS

The County's Nonmajor Component Units are: Allegheny HealthChoices, Inc. Allegheny County Parks Foundation Soldiers' and Sailors' Memorial Hall 298 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information 2015 County of Allegheny Comprehensive Annual Financial Report 299

Supplementary Information

Exhibit I-1

COUNTY OF ALLEGHENY, PENNSYLVANIA Combining Statement of Net Position Nonmajor Component Units December 31, 2015

Nonmajor Component Units

Allegheny County Soldiers' and Allegheny Parks Sailors' Memorial HealthChoices, Inc. Foundation Hall Total

Assets

Cash and short-term investments $ 5,856,998 55,085 1,264,714 7,176,797 Restricted cash and short-term investments 11,143,083 1,878,926 - 13,022,009 Due from primary government 109,992 2,374 - 112,366 Accounts Receivable 242,456 - 35,271 277,727 Other Receivable - 412,685 82,467 495,152 Inventory - - 11,442 11,442 Other assets 152,859 1,338 17,345 171,542 Buildings and equipment, net of accumulated depreciation 51,226 1,232 3,836,920 3,889,378 Total assets 17,556,614 2,351,640 5,248,159 25,156,413

Liabilities

Liabilities: Vouchers payable - 16,861 44,102 60,963 Due to primary government 2,549,163 - - 2,549,163 Accrued liabilities 478,487 - - 478,487 Other liabilities 19,734 - 155,003 174,737 Unearned revenue 1,619,588 - - 1,619,588 Reserve for claims 11,123,720 - - 11,123,720 Current compensated absences - - 6,078 6,078 Total liabilities 15,790,692 16,861 205,183 16,012,736

Net Position

Net position: Invested in capital assets - - 3,836,920 3,836,920 Restricted for projects - 2,119,088 77,321 2,196,409 Unrestricted net assets 1,765,922 215,691 1,128,735 3,110,348 Total net position $ 1,765,922 2,334,779 5,042,976 9,143,677 300 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

COUNTY OF ALLEGHENY, PENNSYLVANIA Combining Statement of Changes in Net Position Nonmajor Component Units Year Ended December 31, 2015

------Program Revenues ------

Charges for Operating Grants Capital Grants & Expenses services & Contributions Contributions

Allegheny HealthChoices $ 6,913,082 1,043,384 5,984,829 -

Allegheny County Parks Foundation 1,066,041 - 53,317 1,048,410

Soldiers' and Sailors' Memorial Hall 1,856,531 799,665 358,154 28,458

Total Nonmajor Component Units $ 9,835,654 1,843,049 6,396,300 1,076,868

General Revenues:

Payment from County

Interest and Investment Earnings

Miscellaneous

Total General Revenues

Change in Net Position

Net Position Beginning of Year - Restated

Net Position End of Year 2015 County of Allegheny Comprehensive Annual Financial Report 301

Supplementary Information

Exhibit I-2

Net (Expense) Revenue and Changes in Net Position

Allegheny Allegheny County Soldiers' and Sailors' HealthChoices,Inc. Parks Foundation Memorial Hall Totals

115,131 - - 115,131

- 35,686 - 35,686

- - (670,254) (670,254)

115,131 35,686 (670,254) (519,437)

$ - - 635,979 635,979

16,420 101 - 16,521

- - 82,081 82,081

16,420 101 718,060 734,581

131,551 35,787 47,806 215,144

1,634,371 2,298,992 4,995,170 8,928,533

$ 1,765,922 2,334,779 5,042,976 9,143,677 302 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

2015 County of Allegheny Comprehensive Annual Financial Report 303

Supplementary Information

SUPPORTING SCHEDULES FOR LONG-TERM DEBT 304 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit J-1 (Page 1 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Long-Term Debt December 31, 2015

Rate Date of Amount of Interest Issue Maturity Issued Outstanding

Nonelectoral Long-Term Debt:

General Obligation Bonds:

Bridges Variable (1) 2-1-00 $5-1-27 2,589,419 2,584,561 Variable (2) 12-20-00 5-1-27 9,074,930 9,074,930 1.25 - 5.000 8-15-03 10-1-16 9,788,315 239,002 3.75 - 5.000 3-14-07 11-1-16 404,930 49,257 4.1355 (3) 3-14-07 11-1-26 619,376 619,376 1.50 - 4.125 3-1-11 5-1-20 2,582,817 1,511,213 2.00 - 5.000 10-11-12 12-1-32 16,876,995 16,870,808 3.00 - 5.000 08-05-14 12-1-20 5,738,929 4,725,904 47,675,711 35,675,051

Roads Variable (1) 2-1-00 5-1-27 1,860,379 1,856,893 Variable (2) 12-20-00 5-1-27 2,032,100 2,032,100 1.25 - 5.000 8-15-03 10-1-16 21,459,365 523,975 3.75 - 5.000 3-14-07 11-1-16 1,919,044 233,451 4.1355 (3) 3-14-07 11-1-26 2,935,343 2,935,343 1.50 - 4.125 3-1-11 5-1-20 1,855,636 1,085,739 2.00 - 5.000 10-11-12 12-1-32 8,958,221 8,954,937 3.00 - 5.000 08-05-14 12-1-20 13,098,449 10,786,336 54,118,537 28,408,774

(1) At December 31, 2015, the rate was 0.01%; the maximum for this issue is 10%. (2) At December 31, 2015, the rate was 0.01%; the maximum for this issue is 10%. (3) The 4.1355% is a synthetic fixed rate achieved through a pay-fixed, receive variable interest rate swap contract. 2015 County of Allegheny Comprehensive Annual Financial Report 305

Supplementary Information

Exhibit J-1 (Page 2 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Long-Term Debt December 31, 2015

Rate Date of Amount of Interest Issue Maturity Issued Outstanding

Airport Variable (1) 2-1-00 5-1-27 6,552,722 6,540,444 1.25 - 5.000 8-15-03 10-1-16 1,414,825 34,549 3.75 - 5.000 3-14-07 11-1-16 17,652 2,149 4.1355 (3) 3-14-07 11-1-26 26,999 26,999 1.50-4.125 3-1-11 5-1-20 6,536,013 3,824,238 2.00-5.000 10-11-12 12-1-32 10,886,747 10,882,756 3.00-5.000 08-05-14 12-1-20 4,210,257 3,467,071 29,645,215 24,778,206

Parks Variable (1) 2-1-00 5-1-27 500,050 499,112 1.25-5.000 8-15-03 10-1-16 4,053,171 98,967 3.75-5.000 3-14-07 11-1-16 427,502 52,005 4.1355 (3) 3-14-07 11-1-26 653,902 653,902 1.50-4.125 3-1-11 5-1-20 498,775 291,833 2.00-5.000 10-11-12 12-1-32 1,408,030 1,407,514 3.00-5.000 08-05-14 12-1-20 2,532,931 2,085,823 10,074,361 5,089,156

Transportation Variable (2) 12-20-00 5-1-27 3,347,970 3,347,970 1.25-5.000 8-15-03 10-1-16 4,727,771 115,438 3.75-5.000 3-14-07 11-1-16 616,019 74,938 4.1355 (3) 3-14-07 11-1-26 942,254 942,254 2.00-5.000 10-11-12 12-1-32 698,453 698,197 3.00-5.000 08-05-14 12-1-20 4,127,903 3,399,254 14,460,370 8,578,051 306 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit J-1 (Page 3 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Long-Term Debt December 31, 2015

Rate Date of Amount of Interest Issue Maturity Issued Outstanding

Municipal Improvements Variable (1) 2-1-00 5-1-27 151,118 150,838 1.25 - 5.000 8-15-03 10-1-16 939,090 22,930 3.75 - 5.000 3-14-07 11-1-16 121,056 14,727 4.1355 (3) 3-14-07 11-1-26 185,165 185,165 1.50 - 4.125 3-1-11 5-1-20 150,733 88,194 2.00-5.000 10-11-12 12-1-32 353,684 353,554 3.00-5.000 08-05-14 12-1-20 306,843 252,680 2,207,689 1,068,088

Communications 2.00 - 5.000 10-11-12 12-1-32 240,819 240,731 3.00-5.000 08-05-14 12-1-20 5,597,260 4,609,242 5,838,079 4,849,973

Public Buildings Variable (1) 2-1-00 5-1-27 1,357,446 1,354,898 1.25 - 5.000 8-15-03 10-1-16 46,371,806 1,132,265 3.75 - 5.000 3-14-07 11-1-16 3,583,299 435,908 3.75 - 5.000 3-14-07 11-1-16 1,091,065 132,729 4.1355 (3) 3-14-07 11-1-26 5,480,963 5,480,963 4.1355 (3) 3-14-07 11-1-26 1,668,877 1,668,877 1.50 - 4.125 3-1-11 5-1-20 1,353,984 792,219 1.00 - 5.000 9-7-11 11-1-28 35,715,000 29,525,000 2.00 - 5.000 10-11-12 12-1-32 4,273,806 4,272,238 3.00 - 5.000 08-05-14 12-1-20 13,586,369 11,188,130 114,482,615 55,983,227

Science Center 1.25 - 5.000 8-15-03 10-1-16 362,886 8,861 3.75 - 5.000 3-14-07 11-1-16 36,590 4,450 4.1355 (3) 3-14-07 11-1-26 55,967 55,967 2.00 - 5.000 10-11-12 12-1-32 34,803 34,791 490,246 104,069

Flood Control 1.25 - 5.000 8-15-03 10-1-16 272,163 6,645 3.75 - 5.000 3-14-07 11-1-16 27,442 3,337 4.1355 (3) 3-14-07 11-1-26 41,976 41,976 2.00 - 5.000 10-11-12 12-1-32 26,102 26,093 367,683 78,051 2015 County of Allegheny Comprehensive Annual Financial Report 307

Supplementary Information

Exhibit J-1 (Page 4 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Long-Term Debt December 31, 2015

Rate Date of Amount of Interest Issue Maturity Issued Outstanding

Equipment Variable (1) 2-1-00 5-1-27 788,816 787,332 1.25 - 5.000 8-15-03 10-1-16 10,556,722 257,764 3.75 - 5.000 3-14-07 11-1-16 1,182,858 143,895 4.1355 (3) 3-14-07 11-1-26 1,809,282 1,809,282 1.50 - 4.125 3-1-11 5-1-20 786,804 460,362 2.00 - 5.000 10-11-12 12-1-32 2,625,947 2,624,985 3.00 - 5.000 08-05-14 12-1-20 10,003,135 8,237,401 27,753,564 14,321,021

Feasibility Studies Variable (1) 2-1-00 5-1-27 130,570 130,332 1.25 - 5.000 8-15-03 10-1-16 4,216,019 102,943 3.75 - 5.000 3-14-07 11-1-16 384,152 46,731 4.1355 (3) 3-14-07 11-1-26 587,594 587,594 1.50 - 4.125 3-1-11 5-1-20 130,238 76,202 2.00 - 5.000 10-11-12 12-1-32 545,362 545,162 3.00 - 5.000 08-05-14 12-1-20 1,007,982 830,055 7,001,917 2,319,019

Geographic Information System 3.75 - 5.000 3-14-07 11-1-16 97,015 11,802 4.1355 (3) 3-14-07 11-1-26 148,393 148,393 2.00 - 5.000 10-11-12 12-1-32 99,076 99,040 3.00 - 5.000 08-05-14 12-1-20 580,123 477,721 924,607 736,956

Economic Development 3.75 - 5.000 3-14-07 11-1-16 182,910 22,251 4.1355 (3) 3-14-07 11-1-26 279,776 279,776 2.00 - 5.000 10-11-12 12-1-32 173,258 173,195 3.00 - 5.000 08-05-14 12-1-20 547,053 450,488 1,182,997 925,710 308 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit J-1 (Page 5 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Schedule of Long-Term Debt December 31, 2015

Rate Date of Amount of Interest Issue Maturity Issued Outstanding

Hospital Buildings and Equipment Variable (1) 2-1-00 5-1-27 23,414,480 23,370,590 1.25 - 5.000 8-15-03 10-1-16 272,867 6,662 2.00 - 5.000 10-11-12 12-1-32 113,553 113,511 3.00 - 5.000 08-05-14 12-1-20 3,195,319 2,631,287 26,996,219 26,122,050

Capital Projects 3.75 - 5.000 3-14-07 11-1-16 18,638,466 2,267,369 4.1355 (3) 3-14-07 11-1-26 28,509,133 28,509,133 3.75 - 5.000 3-14-07 11-1-32 56,625,000 56,585,000 3.00 - 5.000 6-19-08 12-1-33 49,220,000 47,455,000 2.50 - 5.000 8-12-09 11-1-29 80,000,000 79,970,000 6.250 11-30-10 11-1-27 9,385,000 9,385,000 1.50 - 5.375 3-1-11 5-1-31 76,155,000 76,130,000 1.00 - 5.000 9-7-11 11-1-31 39,510,000 39,490,000 2.00 - 5.000 10-11-12 12-1-32 7,245,144 7,242,488 2.00 - 5.000 10-11-12 12-1-37 112,600,000 112,585,000 2.00 - 5.250 10-23-13 12-1-24 37,950,000 37,945,000 3.00 - 5.000 08-05-14 12-1-20 59,392,447 48,908,608 3.00 - 5.000 8-05-14 12-1-34 63,570,000 63,570,000 638,800,190 610,042,598

Total Bonds 982,020,000 819,080,000

Other Long-Term Debt:

Other Long-Term Obligations 3.050-4.000 9-29-05 12-15-18 4,172,500 490,000

Total Other Long-Term Debt 4,172,500 490,000

Total Nonelectoral Long-Term Debt $ 986,192,500 819,570,000

Premium, discount and other adjustments 37,578,929 Total Long-Term Debt $ 857,148,929 2015 County of Allegheny Comprehensive Annual Financial Report 309

Supplementary Information

Exhibit J-2

COUNTY OF ALLEGHENY, PENNSYLVANIA Debt Issued and Retired Year Ended December 31, 2015

Nonelectoral Debt: Balance Balance General Obligation Bonds: December 31, 2014 Issued Transfers Retired Accretion December 31, 2015

Bridges $ 37,405,791 - - 1,730,740 - 35,675,051 Roads 32,016,518 - - 3,607,744 - 28,408,774 Airport 26,262,008 - - 1,483,802 - 24,778,206 Parks 5,803,981 - - 714,825 - 5,089,156 Transportation 9,572,111 - - 994,060 - 8,578,051 Municipal Improvements 1,190,512 - - 122,424 - 1,068,088 Communications 5,838,013 - - 988,040 - 4,849,973 Public Buildings 62,565,324 - - 6,582,097 - 55,983,227 Equipment 16,738,784 - - 2,417,763 - 14,321,021 Feasibility Studies 2,727,847 - - 408,828 - 2,319,019 Flood Control 92,391 - - 14,340 - 78,051 Science Center 123,189 - - 19,120 - 104,069 Geographic Information System 850,713 - - 113,757 - 736,956 Economic Development 1,043,683 - - 117,973 - 925,710 Hospital Buildings and Equipment 26,697,249 - - 575,199 - 26,122,050 Capital Projects 624,476,886 - - 14,434,288 - 610,042,598

Total Bonds Outstanding 853,405,000 - - 34,325,000 - 819,080,000

Other Long-Term Debt:

Other Long-Term Obligations 727,500 - - 237,500 - 490,000

727,500 - - 237,500 - 490,000

Total Nonelectoral Debt $ 854,132,500 - - 34,562,500 - 819,570,000

Premium, discount and other adjustments 37,578,929 $ 857,148,929 310 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

Exhibit J-3 (Page 1 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Indebtedness, Borrowing Power and Legal Debt Margin Year Ended December 31, 2015

Computation of Legal Debt Limit

* Gross Revenue - 2012 1,005,353,549 * Gross Revenue - 2013 1,035,797,847 * Gross Revenue - 2014 1,059,447,393

Total $ 3,100,598,789

Average $ 1,033,532,930

*Gross revenue for purposes of the debt statement includes all monies received from all sources during the fiscal year, as defined by Act 1978-52 amended by Act 1981-19 and Act 1996-177, including special recurring revenues from state and federal programs for special purposes. These special recurring revenues are not included in the operating budget.

Multiples to Determine Gross Borrowing Capacity

For Counties: 300% of average $ 3,100,598,789

For Counties with Lease Rental Debt: 400% of average $ 4,134,131,720

Statement of Indebtedness

Gross Debt: Bonds Issued and Outstanding: Nonelectoral $ 819,080,000 Lease Rental 490,000

Total Nonelectoral and Lease Rental Debt $ 819,570,000 2015 County of Allegheny Comprehensive Annual Financial Report 311

Supplementary Information

Exhibit J-3 (Page 2 of 2)

COUNTY OF ALLEGHENY, PENNSYLVANIA Statement of Indebtedness, Borrowing Power and Legal Debt Margin Year Ended December 31, 2015

Legal Debt Margin

Legal Debt Limit $ 3,100,598,789

Less: Total Net Debt Applicable to Debt Limit 819,080,000

Legal Debt Margin $ 2,281,518,789

Legal Debt Margin Including Lease Rental Debt Less Self Liquidating Debt

Legal Debt Limit $ 4,134,131,720

Less: Total Net Debt Applicable to Debt Limit 819,570,000

Legal Debt Margin $ 3,314,561,720 312 2015 County of Allegheny Comprehensive Annual Financial Report

Supplementary Information

2015 County of Allegheny Comprehensive Annual Financial Report 313

Contents

Statistical Section

This part of the County of Allegheny's comprehensive annual report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the County's overall financial health.

Contents Page

Revenue and Expenditure Overview 315 - 326 These comments and schedules contain information to help the reader assess the County's operating revenue and expenditures.

Financial Trends 327 - 338 These schedules contain trend information to help the reader understand how the County's financial performance and well-being have changed over time.

Revenue Capacity 339 - 361 These schedules contain information to help the reader assess the County's most significant local revenue source, the property tax.

Debt Capacity 362 - 364 These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future.

Demographic and Economic Information 366 - 368 These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place.

Operating Information 369 - 372 These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs.

Component Unit (ACAA) Information 373 - 374 These schedules present information to help the reader assess the debt coverage requirements of the ACAA's Revenue Bonds and passenger volume trends.

Miscellaneous Information 375 - 381 These schedules contain the principal officials and their salaries, County Council members and their expenditure reimbursements as well as a description of the primary governments functions.

Acronyms 383 - 384 This listing assists the reader in identifying the myriad of initials and abbreviations used in this report. 314 2015 County of Allegheny Comprehensive Annual Financial Report

Contents

2015 County of Allegheny Comprehensive Annual Financial Report 315

Revenue and Expenditure Overview

REVENUE AND EXPENDITURE OVERVIEW

This overview relates to the operating funds of the primary government (Allegheny County).

REVENUES:

Operating revenues net of financing uses for governmental functions, General, Debt Service, Liquid Fuels and Transportation Funds, totaled $830.2 million in 2015, which represents an increase of 1.6% compared to revenues for 2014. Revenues are classified into the following general types:

Property Taxes - real property taxes levied by the County.

Sales and Use Taxes - the 1% local sales tax adopted by the County.

Alcoholic Beverage/Rental Vehicle Taxes - the 7% Alcoholic Beverage and $2/day Rental Vehicle tax adopted by the County.

Hotel Tax - residual taxes, after required distributions, is available to support the County's Regional Parks system and to fund Sports and Exhibition Authority deficit.

Non-Profit Contributions - voluntary payments made by tax-exempt institutions to defray the cost of providing County services in lieu of property taxes.

Gaming Local Share Assessment - 2% assessment on gross slot machine revenue.

Licenses and Permits - charges for the issuances of licenses and permits.

Federal - monies received from the federal government such as grants, entitlements and reimbursements.

State - grants, entitlements, shared revenues and reimbursements provided by the Commonwealth of Pennsylvania.

Local Units - revenues provided by the Allegheny Regional Asset District, as well as revenues received from local municipalities and school districts.

Charges for Services - fees and charges for services rendered to a taxpayer, third-party or to another County fund.

Fines and Forfeitures - charges levied by the Court of Common Pleas or District Justices.

Interest Earnings - monies received from investments and management of idle cash.

Miscellaneous - revenues from sources not otherwise provided for in other classifications.

Net Other Financing Sources (Uses) - monies received from capital projects and grants less other financing uses. For presentation of these schedules, all operating intrafund activity has been eliminated. 316 2015 County of Allegheny Comprehensive Annual Financial Report

Revenue and Expenditure Overview

Revenues for 2015 and 2014 which support general governmental functions, and the changes between years, are shown in the following table:

CHANGES IN OPERATING REVENUES BY SOURCE

2015 2014 REVENUE SOURCES VARIANCE PERCENTAGE ACTUAL ACTUAL

TAXES – PROPERTY $ 342,824,364 337,133,767 5,690,597 1.7

TAXES – SALES AND USE 47,559,039 46,110,625 1,448,414 3.1

DRINK/VEHICLE TAX 47,597,341 42,583,256 5,014,085 11.8

HOTEL TAX 4,225,196 3,129,767 1,095,429 35.0

2% GAMING LSA 5,494,366 5,538,735 (44,369) (0.8)

LICENSES AND PERMITS 2,774,956 2,698,568 76,388 2.8

FEDERAL REVENUES 82,071,189 85,215,151 (3,143,962) (3.7)

STATE REVENUES 188,983,083 180,011,812 8,971,271 5.0

LOCAL UNITS REVENUES 19,248,726 19,139,418 109,308 0.6

CHARGES FOR SERVICES 81,671,674 78,690,909 2,980,765 3.8

FINES AND FORFEITURES 4,085,661 4,025,810 59,851 1.5

INTEREST EARNINGS 534,679 410,827 123,852 30.1

MISCELLANEOUS 3,110,401 12,294,268 (9,183,867) (74.7)

TOTALS $ 830,180,675 816,982,913 13,197,762 1.6

When compared to the previous year, 2015 revenues increased by $13.2 million, or 1.6%. Overall, revenues from real property taxes increased $5.7 million or 1.7% in fiscal year 2015. The property tax increase resulted from the following (in millions):

Current and delinquent taxes increased $ 2.4 Lien taxes increased 0.4 Interest and penalty decreased (0.2) Tax refunds decreased 3.1 Net Change $ 5.7 2015 County of Allegheny Comprehensive Annual Financial Report 317

Revenue and Expenditure Overview

Current and delinquent taxes increased $2.4 million due to higher certified assessed values from 2014 to 2015. The millage rate remained unchanged at 4.73 for 2015. This increase was bolstered by less refunds of $3.1 million. Lien taxes increased $0.4 million and interest and penalty decreased $0.2 million.

Sales tax revenues increased 3.1% or $1.4 million as December’s collections indicated an upswing in the economy.

Alcoholic Beverage/Rental Vehicle tax revenue increased $5.0 million or 11.8% between years. The Alcoholic Beverage tax rose $2.3 million primarily due to more intense collection efforts by the Treasurer's office in 2015. Rental Vehicle taxes also increased $1.7 million in 2015 mainly because of a healthy convention and tourist climate in 2015. Alcoholic Beverage and Vehicle Rental Tax Penalty and Interest increased $1.0 million and the increase is primarily due to Hertz Rental paying a large amount in penalties. The tax (Transportation Fund) is restricted for expenditures related to the PAT.

The Hotel tax used to fund Park's operations increased by $1.1 million. In 2014, $2.0 million was transferred for the Parks Operating, but in 2015 there was $3.0 million which is the primary cause for the increase in 2015.

The 2% Gaming local share assessment tax remained unchanged in 2015, as slot machine usage at the Rivers Casino remained constant.

Federal revenues decreased by $3.1 million as detailed below (in millions):

Reimbursement for federal prisoners decrease $ (0.8) Increase for foster care 0.1 Decreased in skilled nursing care (1.0) Increase in Medicare 0.5 Decrease in Title IV-E - Child Placement (7.4) Increase in TANF 0.5 Increase in Title IV-E - Adoption 4.9 Increase in Title IV-E Independent Living 0.1

State revenues increased by $9.0 million for the reasons detailed below (in millions):

Increased Act 315 Health Department funding $0.2 Decrease in Kane’s Intergovernmental Transfers Program performance bonuses (1.0) Increase in skilled nursing care 1.6 Increase in Medicaid Paid Prescriptions 0.9 Increase in Act 148 Special Grant Incentives 0.3 Increase in Act 148 CYF services 6.2 Increase in Juvenile Probation 0.8

Local units revenues increased $0.1 million due to the 2015 adopted budget increasing from $18.8 million in 2014 to $19.2 million for the RAD allocation. 318 2015 County of Allegheny Comprehensive Annual Financial Report

Revenue and Expenditure Overview

Charges for services increased $3.0 million or 3.8% for the following reasons (in millions):

Increase in Real Estate Commissions, Filing Fees and Copying $2.2 County Indirect Costs decreased (0.1) Patient Income increased 1.3 Health Department fees increase 0.2 Parks Winter fees increase 0.2 Use of Property and Equipment decreased (0.1) Private/Commercial insurance at Kane decreased (0.7)

Fines and forfeitures increased by $0.1 million as District Courts fees decreased $0.1 million and miscellaneous fees increased by $0.2 million in 2015.

Miscellaneous revenue decreased $9.2 million due to 2014 proceeds of $5.1 million from the sale of the Health Department Forbes Avenue Building and notch, parcel as well as the $2.5 million bonus from Huntley & Huntley. The above events did not occur in 2015.

The following table details the variances between budgeted and actual revenues for general governmental functions, as well as the ratio of actual to budget for 2015.

COMPARISON OF BUDGETED TO ACTUAL OPERATING REVENUES BY SOURCE 2015 2015 REVENUE SOURCES FINAL VARIANCE PERCENTAGE ACTUAL BUDGET TAXES – PROPERTY $ 344,245,000 342,824,364 (1,420,636) (0.4) TAXES – SALES AND USE 46,373,000 47,559,039 1,186,039 2.6 TAXES – DRINK/VEHICLE 41,856,600 47,597,341 5,740,741 13.7 TAXES - HOTEL 5,290,000 4,225,196 (1,064,804) (20.1) 2% GAMING LSA 5,630,000 5,494,366 (135,634) (2.4) LICENSES AND PERMITS 2,885,800 2,774,956 (110,844) (3.8) FEDERAL REVENUES 87,200,423 82,071,189 (5,129,234) (5.9) STATE REVENUES 189,176,697 188,983,083 (193,614) (0.1) LOCAL UNITS REVENUES 19,235,300 19,248,726 13,426 0.1 CHARGES FOR SERVICES 80,626,000 81,671,674 1,045,674 1.3 FINES AND FORFEITURES 4,670,000 4,085,661 (584,339) (12.5) INTEREST EARNINGS 308,000 534,679 226,679 73.6 MISCELLANEOUS 3,448,961 3,110,401 (338,560) (9.8) USE OF FUND BALANCE 8,224,219 n/a (8,224,219) (100.0) TOTAL $ 839,170,000 830,180,675 (8,989,325) (1.1) 2015 County of Allegheny Comprehensive Annual Financial Report 319

Revenue and Expenditure Overview

The final revenue budget exclusive of net financing uses for 2015 was $839,170,000, while actual revenues were $830,180,675. Revenues were $9.0 million lower than projected. The Alcoholic Beverage tax exceeded projections as the economy continues to recover, but federal revenues were less than anticipated. Actual to budget comparison of Property Taxes (in millions) disclosed the following:

Refunds were over budget $ (1.1) Current and delinquent taxes were under budget (1.2) Lien taxes were over budget 1.0 Interest and Penalty were under budget (0.1) Variance $ (1.4)

An underestimate of Private Insurance and Patient Income along with an overestimate of Commercial Insurance and Public Safety services lead to a $1.0 million favorable variance in Charges for Services.

Over estimates of non-departmental workers' compensation and healthcare reimbursement produced the $0.3 million unfavorable variance in Miscellaneous Revenue.

Projections of use of table games resulted in $0.1 million less than actual gambling revenue. The short fall in State ($0.2 million) and federal ($5.1 million) revenues are dictated by program expenditures and number of clients.

Allocations of the real property tax levy for 2015 and the preceding two years were as follows (amount per $100 assessed value):

PURPOSE 2015 2014 2013

GENERAL FUND $ 0.39552 0.39154 0.38194 DEBT SERVICE FUND 0.07748 0.08146 0.09106 TOTAL TAX RATE 0.47300 0.47300 0.47300 320 2015 County of Allegheny Comprehensive Annual Financial Report

Revenue and Expenditure Overview

EXPENDITURES:

Expenditures and net financing uses totaled $819.7 in 2015, which represents an increase of 3.6% from the previous year. Expenditures fall into ten general classifications:

General Government - represents services provided by the administrative, elected row offices and judicial branches of government.

Public Safety - includes such services as emergency management, the jail and law enforcement departments involved in the protection of County residents.

Public Works - accounts for those expenditures that provide for physical infrastructure essential to the County, including roads, bridges and parks.

Transportation - includes contributions to the PAT.

Health & Welfare - includes expenditures to address the needs of older adults, abused and neglected children, infirm adults and intellectually challenged residents.

Culture & Recreation - accounts for the various recreational and cultural events, programs and facilities, including the extensive County-wide park system.

Education - includes expenditures to provide formal and informal learning opportunities to county residents, through the CCAC.

Economic Development - represents various development and promotional programs designed to attract new companies to the region.

Debt Service - reflects scheduled payments for long-term debt.

Net Other Financing Uses - includes payments to capital projects and grants less other financing sources which include the refunding of long-term debt. For presentation of these schedules, all operating intrafund activity has been eliminated. 2015 County of Allegheny Comprehensive Annual Financial Report 321

Revenue and Expenditure Overview

Expenditures by classification for 2015 and 2014, and the changes between years, are shown in the following table:

CHANGES IN OPERATING EXPENDITURES BY FUNCTION

2015 2014 EXPENDITURE FUNCTION VARIANCE PERCENTAGE ACTUAL ACTUAL

GENERAL GOVERNMENT $ 194,140,820 182,611,629 11,529,191 6.3

PUBLIC SAFETY 103,445,492 99,065,885 4,379,607 4.4

PUBLIC WORKS 21,764,314 26,020,249 (4,255,935) (16.4)

TRANSPORTATION 29,082,188 29,168,699 (86,511) (0.3)

HEALTH AND WELFARE 335,388,486 327,671,030 7,717,456 2.4

CULTURE AND RECREATION 15,268,098 9,923,512 5,344,586 53.9

EDUCATION 24,314,369 23,840,264 474,105 2.0

ECONOMIC DEVELOPMENT 7,142,838 7,355,818 (212,980) (2.9)

DEBT SERVICE:

PRINCIPAL RETIREMENT 34,562,500 25,252,500 9,310,000 36.9

INTEREST CHARGES 37,954,783 37,110,261 844,522 2.3

COST OF ISSUANCE - 666,319 (666,319) 100.0

TOTAL EXPENDITURES 803,063,888 768,686,166 34,377,722 4.5

OTHER FINANCING (USES) 16,663,243 22,313,836 (5,650,593) (25.3) SOURCES-NET

TOTAL $ 819,727,131 791,000,002 28,727,129 3.6

As previously indicated, total outlays increased by 3.6%, or $28.7 million, during 2015. General government expenditures increased by $11.5 million, public safety expenditures increased by $4.4 million, public works expenditures decreased by $4.3 million, health and welfare expenditures increased by $7.7 million, culture and recreation expenditures increased by $5.3 million, education expenditures increased by $0.5 million, economic development expenditures decreased $0.2 million and debt service principal and interest increased by $9.5 million. 322 2015 County of Allegheny Comprehensive Annual Financial Report

Revenue and Expenditure Overview

The increase in expenditures of $28.7 million from $791.0 million in 2014 to $819.7 million in 2015, is explained below. The County was given a $10 million health care credit for exclusively using Highmark Blue Cross/Blue Shield. The allocation of the credit to the operating fund resulted in an $8.0 million savings.

General government expenditures increased by $11.5 million or 6.3% between years. Most of the increase is attributed to the department of facilities management ($2.6 million), non-departmental ($1.5 million), and the court of common pleas - family/juvenile ($2.3 million). During 2015, the department of real estate – registry and deeds became a division of the department of administrative services. 2015 administrative services expenditures increased $1.4 million from 2014 administrative services and real estate – registry and deeds expenditures.

Public safety expenditures increased by $4.4 million primarily due to increases from the County Jail ($3.0 million) and the County Police ($1.2 million).

Public works expenditures decreased $4.3 million. Significant decreases include the transfer to Parks ($3.1 million), the public works - administrative division ($0.4 million), and the public works - maintenance division ($0.4 million).

Health and welfare expenditures increased $7.7 million. The most significant increase was a $8.9 million increase in human service - child welfare expenditures.

Culture and recreation expenditures increased $5.3 million due predominantly to the transfer to Parks of expenditures formally housed in Public Works.

Debt service payments increased $9.5 million in 2015, as principal payments increased $9.3 million and interest payments increased $0.8 million. The cost of issuance decreased $0.7 million. The significant changes in Bond principal (in millions) were as follows:

C-61 & C-73 increased $ 23.6 C-50, C-57, C-63, decreased (14.7) SEA-2005A, C-56, C-59A, C-66, C-68, C-72 increased 0.4 2015 County of Allegheny Comprehensive Annual Financial Report 323

Revenue and Expenditure Overview

The following table shows expenditures by function as compared to the final budget, as amended, for 2015. The budget figure of $840,895,267 includes reappropriations for open encumbrances at the end of 2014 of $1,725,267.

The Health and Welfare expenditures variance of $9.4 million is directly related to the cuts in State and Federal grants. The General Government unfavorable budget variance included a $2.0 million fund balance enhancement and $5.6 million less than budget expenditures for services in non-departmental because of fringe benefit cost recovery related to the $10.0 million Highmark healthcare credit. The Health and Welfare unfavorable budget variance can be attributed to Kane's unfavorable budget variance of $4.3 million due to salaries and fringe benefits being $4.3 million under budget and a $6.1 million unfavorable budget variance for the department of human services operating expenditures.

COMPARISON OF BUDGETED TO ACTUAL OPERATING EXPENDITURES BY FUNCTION

2015 2015 EXPENDITURE FUNCTION FINAL VARIANCE PERCENTAGE ACTUAL BUDGET

GENERAL GOVERNMENT $ 200,427,048 194,140,820 (6,286,228) (3.1)

PUBLIC SAFETY 104,283,244 103,445,492 (837,752) (0.8)

PUBLIC WORKS 22,539,766 21,764,314 (775,452) (3.4)

TRANSPORTATION 29,082,188 29,082,188 - -

HEALTH AND WELFARE 344,755,812 335,388,486 (9,367,326) (2.7)

CULTURE AND RECREATION 15,910,240 15,268,098 (642,142) (4.0)

EDUCATION 24,314,369 24,314,369 - -

ECONOMIC DEVELOPMENT 7,755,717 7,142,838 (612,879) (7.9)

DEBT SERVICE:

PRINCIPAL RETIREMENT 34,562,500 34,562,500 - -

INTEREST CHARGES 38,454,875 37,954,783 (500,092) (1.3)

MISCELLANEOUS 1,750,000 - (1,750,000) (100.0)

NET FINANCING USES 17,059,508 16,663,243 (396,265) (2.3)

TOTALS 840,895,267 819,727,131 (21,168,136) (2.5)

LESS: REAPPROPRIATIONS (1,725,267) - (1,725,267) -

TOTALS $ 839,170,000 819,727,131 (19,442,869) (2.3) 324 2015 County of Allegheny Comprehensive Annual Financial Report

Revenue and Expenditure Overview

The following two tables pertain only to the County’s General Fund. Please refer to Exhibit A-3 in the financial section for a more complete analysis. Departmental expenditures for the year 2015 were as follows:

SUMMARY OF GENERAL FUND EXPENDITURES 2015 ADOPTED 2015 2015 2015 BUDGET BUDGET DEPARTMENT FINAL ACTUAL VARIANCE INCLUDING AMENDMENTS/ BUDGET EXPENDITURES REAPPRO- TRANSFERS PRIATIONS COUNTY ADMINISTRATION: Chief Executive $ 415,290 - 415,290 351,637 (63,653) County Manager 1,153,391 - 1,153,391 995,395 (157,996) Budget and Finance 979,718 - 979,718 816,311 (163,407) Solicitor 2,146,249 - 2,146,249 1,803,586 (342,663) 4,694,648 - 4,694,648 3,966,929 (727,719) Human Resources 1,711,108 - 1,711,108 1,568,036 (143,072) M/W/DBE 630,430 - 630,430 592,463 (37,967) Public Defender 9,458,401 - 9,458,401 9,092,369 (366,032) ADMINISTRATIVE SERVICES: Administration 2,173,945 (166,650) 2,007,295 2,007,292 (3) MIS 6,436,359 730,350 7,166,709 7,165,780 (929) Purchasing & Supplies 692,600 (23,500) 669,100 634,041 (35,059) Elections 5,218,194 177,200 5,395,394 5,265,987 (129,407) Veterans’ Affairs 717,182 (30,000) 687,182 645,056 (42,126) Marketing and Special Events 713,037 90,000 803,037 776,414 (26,623) Property Assessment 5,961,907 (777,400) 5,184,507 5,179,976 (4,531) 21,913,224 - 21,913,224 21,674,546 (238,678) Medical Examiner 9,158,162 - 9,158,162 8,883,203 (274,959) Jail 72,056,548 947,000 73,003,548 73,003,491 (57) County Police 29,454,813 (937,300) 28,517,513 27,770,335 (747,178) Emergency Management 3,103,383 (341,200) 2,762,183 2,671,666 (90,517) Public Works 18,337,766 - 18,337,766 17,717,368 (620,398) Parks 15,384,240 (110,000) 15,274,240 14,632,119 (642,121) Facilities Management 18,335,823 920,500 19,256,323 19,169,613 (86,710) HUMAN SERVICES: Aging 450,000 - 450,000 - (450,000) Children, Youth and Families 180,085,795 (1,361,100) 178,724,695 178,724,562 (133) Behavioral Health and Intellectual Disability 1,770,000 - 1,770,000 - (1,770,000) 182,305,795 (1,361,100) 180,944,695 178,724,562 (2,220,133) Health Department 17,673,192 (485,000) 17,188,192 15,559,351 (1,628,841) 2015 County of Allegheny Comprehensive Annual Financial Report 325

Revenue and Expenditure Overview

SUMMARY OF GENERAL FUND EXPENDITURES – continued 2015 ADOPTED 2015 2015 2015 BUDGET BUDGET DEPARTMENT FINAL ACTUAL VARIANCE INCLUDING AMENDMENTS/ BUDGET EXPENDITURES REAPPRO- TRANSFERS PRIATIONS Court Records-Administration 997,688 - 997,688 960,150 (37,538) Court Records-Criminal 2,239,501 - 2,239,501 1,967,698 (271,803) Court Records - Civil 3,163,911 - 3,163,911 2,765,932 (397,979) Court Records - Wills/Orphans 1,781,092 - 1,781,092 1,643,102 (137,990) Real Estate 2,704,508 - 2,704,508 2,498,739 (205,769) Shuman Juvenile Detention 11,104,829 (936,000) 10,168,829 9,882,489 (286,340) Kane Regional Centers 102,033,696 - 102,033,696 97,697,998 (4,335,698) Institutional Care/C.I.S.P./ Home Detention 31,436,118 2,297,100 33,733,218 32,879,030 (854,188) Miscellaneous Grant Agencies 28,190,086 6,000 28,196,086 28,193,400 (2,686) Non-departmental Operating Expenditures 14,419,099 (1,800) 14,417,299 13,236,469 (1,180,830) TOTAL ADMINISTRATION 602,288,061 (1,800) 602,286,261 586,751,058 (15,535,203) County Council 1,174,754 - 1,174,754 920,034 (254,720) ROW OFFICES: Controller 6,496,177 - 6,496,177 5,988,131 (508,046) District Attorney 17,143,904 - 17,143,904 16,513,700 (630,204) Sheriff 17,322,676 1,800 17,324,476 17,320,322 (4,154) Treasurer 6,896,823 - 6,896,823 6,241,822 (655,001) 47,859,580 1,800 47,861,380 46,063,975 (1,797,405) Court of Common Pleas 64,461,801 - 64,461,801 63,682,404 (779,397)

TOTALS 715,784,196 - 715,784,196 697,417,471 (18,366,725) LESS: REAPPROPRIATIONS (1,725,267) TOTAL ADOPTED BUDGET $ 714,058,929 326 2015 County of Allegheny Comprehensive Annual Financial Report

Revenue and Expenditure Overview

The following chart details the changes in fund balances in the General Fund for the year 2015:

CHANGES IN FUND BALANCES – GENERAL FUND UNRESTRICTED TOTAL FUND DESCRIPTION RESTRICTED ASSIGNED UNASSIGNED TOTAL BALANCES

Audited Fund Balances as of 1/1/2015 -$ 21,325,267 38,321,604 59,646,871 59,646,871

2015 Operating Activity and Use of Fund Balance:

Liquidation of 2014 Encumbrance Balance - (1,725,267) 1,725,267 - - Reclass 2015 Encumbrances to Assigned - 1,206,670 (1,206,670) - - Liquidation of Assigned 2013 Appeals - (1,479,032) 1,479,032 - - 2014 Board of Viewers tax appeals - (2,078,246) 2,078,246 - - Future healthcare cost - 11,000,000 (11,000,000) - - Budget Variance - - 8,084,241 8,084,241 8,084,241 Actual to Budget Variance - - 8,775,612 8,775,612 8,775,612 Net Operating Activity or (Use of Fund Balance) - 6,924,125 9,935,728 16,859,853 16,859,853

Transfers/Adjustments:

Transfers from: Capital Projects Fund - - 507,056 507,056 507,056 Transfers to: Debt Service Fund - - (5,367,130) (5,367,130) (5,367,130) Human Service Grants Fund - - (4,499,613) (4,499,613) (4,499,613) County Grants Fund - - (6,601,274) (6,601,274) (6,601,274) One Time Adjustments: Healthcare Credit - - 8,000,000 8,000,000 8,000,000 Marcellus Shale Impact Fees - - 1,180,588 1,180,588 1,180,588

- - (6,780,373) (6,780,373) (6,780,373)

Audited Fund Balances as of 12/31/2015 $ - 28,249,392 41,476,959 69,726,351 69,726,351

Net operating activity increased unassigned fund balance by $9.9 million. The increase is indicative of the County's progress in generating operating revenues to pay operating expenditures. Net other operating sources of $6.8 million including one-time revenues of $8.0 million Healthcare credit and $1.2 million of Marcellus Shale impact fees used for Parks. Offsetting these increases, the General Fund also covered increased deficits of $5.4 million Debt services for bond principle and interest expenditures, $6.5 million for the 911 program, and $4.5 million to cover Human Service grant expenditures. Table I COUNTY OF ALLEGHENY, PENNSYLVANIA Net Position by Component Last Four Years (accrual basis of accounting)

2015 2014 2013 2012 (Restated)

Governmental activities

Net Investment in Capital Assets $ 6,661,257 (11,817,076) (19,649,247) (35,253,457)

Restricted 47,859,099 45,811,742 42,244,049 32,514,328

Unrestricted (590,490,283) (610,162,486) (653,456,517) (1) (186,852,614) 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Total primary government net position $ (535,969,927) (576,167,820) (630,861,715) (189,591,743)

(1) Increase is the result of implementing GASB 68.

Note: This schedule is being prepared prospectively in accordance with GASB 63. The next schedule has been included to provide unrestated prior years' information as it was presented in the prior years' reports. iaca Trends Financial 327 328 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table II Trends Financial COUNTY OF ALLEGHENY, PENNSYLVANIA Net Assets by Component Last Six Years (accrual basis of accounting)

Year 2011 2010 2009 2008 2007 2006

Governmental activities

Invested in capital assets, net of related debt $ (8,943,446) 28,662,998 19,424,481 12,573,557 15,310,218 (20,764,154) (1)

Restricted 28,939,763 34,498,072 30,845,228 33,661,957 22,448,499 57,845,131

Unrestricted (186,316,144) (143,897,663) (79,033,969) (30,661,372) (5,959,012) 18,224,316

Total primary government net assets $ (166,319,827) (80,736,593) (28,764,260) 15,574,142 31,799,705 55,305,293

(1) Beginning in 2006 the County has recorded infrastructure on a retroactive basis.

Note: This schedule is being included to provide prior years' information as it was presented in prior years' reports. 2015 County of Allegheny Comprehensive Annual Financial Report 329

Financial Trends

330 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table III (Page 1 of 2) Trends Financial COUNTY OF ALLEGHENY, PENNSYLVANIA Changes in Net Position Last Four Years (accrual basis of accounting)

2015 2014 2013 2012 (Restated) Program Revenues Governmental activities: Charges for services: General government $ 56,745,064 59,067,390 58,573,448 46,100,203 Public safety 16,308,687 21,040,505 19,862,308 20,073,422 Public works 899,622 424,654 352,177 195,459 Health and welfare 48,391,153 35,826,026 32,118,060 33,753,720 Culture and recreation 4,931,242 4,807,461 4,141,492 4,652,832 Economic development 2,939,164 2,847,470 2,978,356 2,888,938 Operating grants and contributions 962,770,488 955,816,251 968,409,179 965,157,024 Capital grants and contributions 17,643,305 45,647,073 39,155,086 33,791,235

Total primary government program revenues 1,110,628,725 1,125,476,830 1,125,590,106 1,106,612,833

Expenses Governmental activities: General government 249,258,742 229,801,667 238,731,436 260,249,445 Public safety 140,330,089 137,782,756 152,273,542 127,046,804 Public works 34,175,109 55,082,381 45,107,334 67,663,042 Transportation 39,082,188 38,141,222 37,968,699 36,566,700 Health and welfare 879,250,681 888,654,149 875,135,890 883,496,826 Culture and recreation 17,591,356 12,193,436 14,152,773 12,572,870 Education 24,604,197 24,159,375 23,647,347 26,175,277 Economic development 37,218,144 32,399,740 32,898,560 51,364,241 Economic opportunity 15,780,881 13,737,072 15,354,245 19,686,799 Interest on long-term debt 37,950,148 38,370,587 37,597,140 35,095,777

Total primary government expenses 1,475,241,535 1,470,322,385 1,472,866,966 1,519,917,781

Net (Expense)/Revenue Governmental activities (364,612,810) (344,845,555) (347,276,860) (413,304,948)

Total primary government net expense (364,612,810) (344,845,555) (347,276,860) (413,304,948) Table III (Page 2 of 2) COUNTY OF ALLEGHENY, PENNSYLVANIA Changes in Net Position (continued) Last Four Years (accrual basis of accounting)

2015 2014 2013 2012 (Restated) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property and other local taxes levied for: General purposes 288,304,498 280,763,933 276,331,777 265,326,605 Debt service 56,035,012 57,848,162 65,153,761 65,123,043 Sales tax 47,559,039 46,110,625 44,550,065 43,709,103 Hotel rental tax 4,225,196 3,129,767 5,077,825 5,841,772 Gaming local share assessment 5,494,366 5,538,735 5,238,938 6,089,312 Interest and investment earnings 1,178,189 798,261 899,922 627,465 Gas drilling revenue - 2,542,064 - - Miscellaneous 2,014,403 2,807,903 305,553 3,315,732 Report Financial Annual Comprehensive Allegheny of County 2015

Total primary government 404,810,703 399,539,450 397,557,841 390,033,032

Change in Net Position Governmental activities 40,197,893 54,693,895 50,280,981 (23,271,916)

Total primary government change in net position $ 40,197,893 54,693,895 50,280,981 (23,271,916)

Note: This schedule is being prepared prospectively in accordance with GASB 63. The next schedule has been included to provide unrestated prior years' information as it was presented in the prior years' reports. iaca Trends Financial 331 332 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table IV (Page 1 of 2) Trends Financial COUNTY OF ALLEGHENY, PENNSYLVANIA Changes in Net Assets Last Six Years (accrual basis of accounting)

Year 2011 2010 2009 2008 2007 2006

Program Revenues Governmental activities: Charges for services: General government $ 44,198,578 46,725,554 47,993,725 45,167,925 42,962,561 46,656,215 Public safety 17,379,159 17,521,407 17,445,708 17,276,529 16,916,065 7,996,256 Public works 292,003 343,400 1,149,994 136,536 88,904 139,535 Health and welfare 32,720,782 32,979,556 32,392,534 29,652,780 28,878,192 27,106,110 Culture and recreation 4,298,367 4,774,538 5,103,099 5,312,417 4,947,218 4,230,989 Economic development 2,502,584 2,364,980 1,142,995 82,940 849,983 1,460,762 Operating grants and contributions 968,415,753 979,847,878 1,064,758,872 1,149,756,664 1,067,475,009 1,005,012,937 Capital grants and contributions 20,551,548 39,983,676 28,611,935 18,284,746 22,297,167 39,524,411

Total primary government program revenues 1,090,358,774 1,124,540,989 1,198,598,862 1,265,670,537 1,184,415,099 1,132,127,215

Expenses Governmental activities: General government 281,099,079 256,858,694 235,125,122 240,796,592 220,612,402 208,895,665 Public safety 121,151,432 121,367,760 115,519,420 118,028,180 96,763,905 92,101,560 Public works 56,228,909 66,509,806 84,735,917 44,554,071 38,480,324 52,379,755 Transportation 36,502,199 36,283,608 37,579,478 32,713,060 29,543,500 19,408,500 Health and welfare 866,644,634 856,172,605 960,062,647 1,027,498,783 987,661,898 932,813,727 Culture and recreation 12,953,901 19,871,911 12,652,579 10,218,233 16,246,863 10,799,488 Education 19,380,309 22,603,860 22,133,800 21,718,462 21,651,655 21,714,305 Economic development 53,511,280 45,699,609 29,792,079 38,800,500 35,672,864 22,641,206 Economic opportunity 31,881,378 38,243,840 37,277,998 34,537,949 41,310,739 41,777,503 Interest on long-term debt 31,996,208 29,076,616 27,929,366 29,387,834 29,346,447 27,638,096

Total primary government expenses 1,511,349,329 1,492,688,309 1,562,808,406 1,598,253,664 1,517,290,597 1,430,169,805

Net (Expense)/Revenue Governmental activities $ (420,990,555) (368,147,320) (364,209,544) (332,583,127) (332,875,498) (298,042,590)

Total primary government net expense $ (420,990,555) (368,147,320) (364,209,544) (332,583,127) (332,875,498) (298,042,590) Table IV (Page 2 of 2) COUNTY OF ALLEGHENY, PENNSYLVANIA Changes in Net Assets (continued) Last Six Years (accrual basis of accounting)

Year 2011 2010 2009 2008 2007 2006

General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Property and other local taxes levied for: General purposes $ 213,752,930 205,723,613 231,312,634 208,179,128 203,087,574 218,467,780 Debt service 57,224,239 62,028,968 35,077,512 52,036,511 47,887,423 52,171,627 Sales tax 42,260,699 40,904,309 39,172,875 40,351,848 40,220,736 38,788,808 Hotel rental tax 5,990,531 - - - - - Report Financial Annual Comprehensive Allegheny of County 2015 Gaming local share assessment 5,512,986 4,839,223 1,575,008 - - - Interest and investment earnings 947,672 710,231 4,161,339 10,435,929 10,794,629 8,309,545 Gain on sale of capital assets - - 3,979,041 - - - Miscellaneous 9,718,264 1,968,643 4,592,733 5,354,148 7,379,548 8,185,931

Total primary government 335,407,321 316,174,987 319,871,142 316,357,564 309,369,910 325,923,691

Change in Net Assets Governmental activities (85,583,234) (51,972,333) (44,338,402) (16,225,563) (23,505,588) 27,881,101

Total primary government change in net assets $ (85,583,234) (51,972,333) (44,338,402) (16,225,563) (23,505,588) 27,881,101

Note: This schedule is being included to provide prior years' information as it was presented in prior years' reports. iaca Trends Financial 333 334 2015 County of Allegheny Comprehensive Annual Financial Report

Financial Trends

Table V

COUNTY OF ALLEGHENY, PENNSYLVANIA Fund Balances, Governmental Funds Last Six Years (modified accrual basis of accounting)

2015 2014 2013 2012 2011 2010

General Fund Assigned $ 28,249,392 21,325,267 7,561,308 1,069,175 514,483 912,842 Unassigned 41,476,959 38,321,604 27,564,447 12,167,138 5,724,930 19,476,722 Total general fund 69,726,351 59,646,871 35,125,755 13,236,313 6,239,413 20,389,564

All Other Governmental Funds Restricted: County Grants Fund 28,975,859 26,664,561 24,733,323 20,817,434 23,742,242 27,105,088 Human Services Grants Fund 2 250,001 75,341 - 7,684 310,924 Capital Projects 105,711,745 141,307,206 27,227,829 14,493,799 26,675,610 7,309,286 Debt Service 2,760,294 4,102,566 5,644,795 3,662,209 552,059 - Transportation Fund 16,111,213 14,794,378 11,786,469 7,575,124 4,469,306 5,158,730 Liquid Fuel Fund 11,731 236 4,121 459,561 168,472 476,077 Committed: County Grants 15,874,541 3,575,126 3,562,051 3,536,984 3,256,756 1,112,369 Assigned: County Grants 116,425 84,048 322,196 132,635 301,854 334,884 Capital Projects - - 69,369,008 89,561,229 - - Debt Service 388,006 - - - - Unassigned: County Grants - - - - (174,211) (38,915) Capital Projects - - - - - (24,626,208)

Total all other governmental funds 169,949,816 190,778,122 142,725,133 140,238,975 58,999,772 17,142,235

Total governmental funds $ 239,676,167 250,424,993 177,850,888 153,475,288 65,239,185 37,531,799

Note: This schedule is being prepared prospectively. The next schedule has been included to provide prior years' information as it was presented in the prior years' reports.

Unassigned General Funds 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 General Fund Unassigned 15,000,000 10,000,000 5,000,000 - 2015 2014 2013 2012 2011 2010

2015 County of Allegheny Comprehensive Annual Financial Report 335

Financial Trends

Table VI

COUNTY OF ALLEGHENY, PENNSYLVANIA Fund Balances, Governmental Funds Last Four Years (modified accrual basis of accounting)

Year 2009 2008 2007 2006

General Fund Reserved $ 686,266 985,974 1,029,005 832,676 Unreserved 19,464,842 18,505,390 26,327,036 17,391,640

Total general fund 20,151,108 19,491,364 27,356,041 (1) 18,224,316

All Other Governmental Funds Reserved 94,574,439 58,335,197 82,050,551 68,886,275 Unreserved: Designated, reported in: Transportation - 12,000,000 - - Debt Service 1,923,659 2,237,138 - - Undesignated, reported in: Special revenue funds: Human service grants 329 68,779 269,786 85,145 County grants - - (6,008,680) - Liquid fuel - 146,899 374,010 5,580 Transportation - 430,496 - -

Total all other governmental funds 96,498,427 73,218,509 76,685,667 68,977,000

Total governmental funds $ 116,649,535 92,709,873 104,041,708 87,201,316

(1) The increase can be attributed to the sale of tax receivables and state gaming revenue to reimburse the County for its public investment in the Airport.

Note: This schedule is being included to provide prior years' information as it was presented in prior years' reports.

Unreserved General Fund Balance 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2009 2008 2007 2006

336 2015 County of Allegheny Comprehensive Annual Financial Report

Financial Trends

COUNTY OF ALLEGHENY, PENNSYLVANIA Changes in Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting)

Year 2015 2014 2013 2012 2011 2010

Revenues Property taxes $ 342,824,364 337,133,767 336,159,600 322,063,944 (5) 273,919,488 (1) 264,893,858 Sales and use tax 47,559,039 46,110,625 44,550,065 43,709,103 42,260,699 40,904,309 Alcoholic beverage, hotel and rental vehicle taxes 51,822,537 45,713,023 47,089,203 45,708,790 43,519,106 32,796,256 Gaming local share assessment 5,494,366 5,538,735 5,238,938 6,089,312 5,512,986 4,839,223 Licenses and permits 2,774,956 2,698,568 2,061,720 1,921,316 2,022,195 1,919,316 Federal revenues 206,892,251 226,191,476 247,304,296 242,997,365 250,509,567 (3) 283,689,849 State revenues 699,450,531 695,588,658 681,226,030 687,288,915 669,745,308 668,128,684 Local governmental units revenues 20,716,150 22,444,663 19,713,694 19,309,401 21,433,539 23,339,455 Charges for services and facilities 118,364,652 106,462,302 105,457,693 95,839,806 90,544,713 91,699,952 Fines and forfeitures 4,085,661 4,025,810 4,339,683 4,822,217 4,593,618 4,787,652 Interest earnings 1,178,190 798,261 899,922 627,465 947,672 710,231 Miscellaneous 12,776,511 30,832,064 23,781,165 17,882,526 17,113,914 20,148,468

Total revenues 1,513,939,208 1,523,537,952 1,517,822,009 1,488,260,160 1,422,122,805 1,437,857,253

Expenditures Current: General government 233,384,684 223,541,927 220,774,769 212,596,287 215,107,151 210,868,288 Public safety 133,583,308 130,750,018 145,292,621 121,341,861 115,217,701 114,993,307 Public works 22,161,475 26,480,540 25,366,941 32,707,139 34,986,006 32,835,821 Transportation 29,082,188 29,168,699 29,168,699 27,668,700 27,668,699 27,668,700 Health and welfare 877,985,772 889,066,557 873,600,594 881,908,361 865,244,300 866,137,793 Culture and recreation 15,947,318 10,005,489 9,711,077 9,584,424 10,388,768 10,968,163 Education 24,604,197 24,159,375 23,647,347 26,175,277 19,380,309 22,603,860 Economic development 37,217,240 32,394,427 32,891,584 51,358,888 53,500,940 45,685,082 Economic opportunity 15,780,881 13,737,072 15,354,245 19,686,799 (6) 31,881,378 38,243,840

Capital projects 62,423,688 79,320,626 81,171,092 77,143,219 114,679,751 (4) 86,214,329 Debt service: Principal 34,562,500 25,252,500 37,450,000 29,857,500 38,332,500 41,387,500 Interest 37,954,783 37,110,261 37,574,482 34,274,920 29,369,282 28,528,970 Cost of issuance - 1,000,940 279,034 971,916 1,074,148 224,336

Total expenditures 1,524,688,034 1,521,988,431 1,532,282,485 1,525,275,291 1,556,830,933 1,526,359,989

Excess of revenues over (under) expenditures (10,748,826) 1,549,521 (14,460,476) (37,015,131) (134,708,128) (88,502,736)

Other Financing Sources (Uses) Issuance of general obligation bonds - 63,570,000 37,950,000 112,600,000 157,965,609 9,385,000 Proceeds of general obligation refunding bonds - 123,925,000 - 54,560,000 13,895,000 - Payment to escrow refunding agent - (137,078,219) - (60,831,894) (13,758,214) - Premium on bond issuance - 20,607,803 886,076 18,923,128 4,363,243 - Discount on bond Issuance - - - - (50,124) - Premium on refunding bonds ------Capital lease ------Transfers in 43,057,078 37,141,052 26,526,866 37,105,922 74,906,699 105,072,729 Transfers out (43,057,078) (37,141,052) (26,526,866) (37,105,922) (74,906,699) (105,072,729) Proceeds of sale of building ------

Total other financing sources - 71,024,584 38,836,076 125,251,234 162,415,514 9,385,000

Net change in fund balances $ (10,748,826) 72,574,105 24,375,600 88,236,103 27,707,386 (79,117,736)

Debt service as a percentage of noncapital expenditures 4.9% 4.3% 5.1% 4.4% 4.6% 4.8%

(1) Property tax revenue increased due to sales of tax receivables in 2007 and 2011. (2) Includes $27.9 million of RAAC bond proceeds not reclassified as other financing sources in 2006. (3) Received less capital project reimbursements and Community Service grants. (4) Includes $32 million building. (5) Tax rate increased one mill. (6) WIA, EARN and HSDF programs were given less funding. 2015 County of Allegheny Comprehensive Annual Financial Report 337

Financial Trends

Table VII

COUNTY OF ALLEGHENY, PENNSYLVANIA Changes in Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting)

Year 2009 2008 2007 2006

261,131,265 254,991,590 273,781,207 (1) 261,706,231 39,172,875 40,351,848 40,220,736 38,788,808 32,714,434 42,869,521 - - 1,575,008 - - - 1,904,569 1,754,750 1,834,096 1,892,227 308,912,948 341,309,161 339,976,306 346,663,975 726,036,806 760,222,230 725,022,327 673,692,647 18,034,580 18,476,488 15,736,417 47,230,509 (2) 91,614,877 85,145,408 86,136,799 75,794,785 3,401,106 6,709,309 4,578,532 4,535,001 4,161,339 10,435,929 10,794,629 8,309,545 20,572,275 14,537,818 18,510,170 18,059,632

1,509,232,082 1,576,804,052 1,516,591,219 1,476,673,360

212,055,686 198,296,528 190,182,567 186,647,940 111,510,274 110,130,385 94,312,966 93,317,264 30,069,070 28,765,818 29,619,137 27,319,081 27,668,699 27,453,060 24,358,500 15,858,500 965,405,256 1,027,909,167 987,309,779 935,844,903 9,945,524 9,591,707 9,460,986 8,504,443 22,133,800 21,718,462 21,651,655 21,714,305 29,733,782 38,655,220 35,500,311 30,522,308 37,277,998 34,537,949 41,310,739 41,777,503

74,376,734 78,494,417 67,462,449 67,428,429

38,232,500 33,205,000 32,085,000 31,470,000 24,612,032 28,643,232 26,518,778 26,558,663 692,398 604,591 1,056,687 -

1,583,713,753 1,638,005,536 1,560,829,554 1,486,963,339

(74,481,671) (61,201,484) (44,238,335) (10,289,979)

80,000,000 49,220,000 - - 27,500,000 - 129,300,000 30,000,000 (29,110,423) - (72,636,459) - - 649,649 - - (833,340) - - - 1,766,257 - 4,415,186 - 7,678,839 - - - 52,633,826 56,146,568 37,227,857 31,967,009 (52,633,826) (56,146,568) (37,227,857) (31,967,009) 11,420,000 - - -

98,421,333 49,869,649 61,078,727 30,000,000

23,939,662 (11,331,835) 16,840,392 19,710,021

4.1% 3.9% 3.9% 4.1%

Net Change in Fund Balance, Governmental Funds 100,000,000 50,000,000 0 (50,000,000) (100,000,000) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

338 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table VIII Trends Financial COUNTY OF ALLEGHENY, PENNSYLVANIA Program Revenues by Program/Function Last Ten Years (accrual basis of accounting)

Year 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Function/Program

Governmental activities:

General government $ 87,568,430 91,214,011 94,990,681 79,841,123 79,540,479 90,992,391 95,257,597 80,795,648 73,877,476 100,322,237

Public safety 47,795,830 44,851,772 64,328,401 49,551,751 45,690,241 50,591,466 52,223,177 55,211,505 37,528,174 33,214,008

Public works 24,145,006 52,638,517 48,782,708 45,032,854 32,044,182 51,235,168 30,518,883 21,761,550 32,139,063 24,663,352

Transportation 47,597,341 42,583,256 42,011,378 39,867,018 37,078,575 32,862,922 32,714,434 42,869,521 - 2,699,822

Health and welfare 838,044,987 838,680,414 821,495,873 816,473,113 801,637,274 807,363,818 904,409,586 973,350,413 940,905,006 894,926,699

Culture and recreation 18,953,012 15,872,136 12,949,901 12,032,341 15,287,849 12,049,884 14,852,964 13,372,409 10,878,682 10,131,476

Education 303,510 191,410 296,892 324,822 285,549 106,198 123,800 69,019 83,968 124,305

Economic development 30,416,677 25,729,719 25,309,300 43,779,769 46,963,586 40,997,493 22,900,330 30,890,221 27,571,326 23,954,692

Economic opportunity 15,503,571 13,373,927 15,088,578 19,337,246 31,485,273 38,297,208 36,919,706 34,853,648 41,459,021 42,023,181

Interest on long-term debt 300,361 341,668 336,394 372,796 345,766 44,441 10,253,393 12,496,603 19,972,383 67,443

Total primary government $1,110,628,725 1,125,476,830 1,125,590,106 1,106,612,833 1,090,358,774 1,124,540,989 1,200,173,870 1,265,670,537 1,184,415,099 1,132,127,215 2015 County of Allegheny Comprehensive Annual Financial Report 339

Revenue Capacity

Table IX

COUNTY OF ALLEGHENY, PENNSYLVANIA Tax Revenues by Source, Governmental Funds Last Ten Years (modified accrual basis of accounting)

Year Property Taxes Sales and Use Taxes Total

2015 $ 342,824,364 47,559,039 390,383,403

2014 337,133,767 46,110,625 383,244,392

2013 336,159,600 (4) 44,550,065 380,709,665

2012 322,063,944 (3) 43,709,103 365,773,047

2011 273,919,487 (1) 42,260,699 316,180,186

2010 264,893,858 40,904,309 305,798,167

2009 261,131,265 39,172,875 300,304,140

2008 254,991,590 40,351,848 295,343,438

2007 273,781,207 (2) 40,220,736 314,001,943

2006 261,706,231 38,788,808 300,495,039

Change 2006-2015 31.00% 22.61% 29.91%

(1) Includes a tax receivable sale of $6.0 million. (2) Includes a tax receivable sale of $14.4 million. (3) Includes a one mill tax increase. (4) Includes a County-wide reassessment. 340

Table X Report Financial Annual Comprehensive Allegheny of County 2015 eeu Capacity Revenue COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Levies and Collections Last Ten Fiscal Years

Taxes Levied Collected within the for the Fiscal Year of the Levy Total Net Collections to Date Fiscal Fiscal Year Total Percentage of Delinquent Percentage of Year (Original Levy) Adjustments (1) Discounts Adjusted Levy Amount Original Levy Collections Refunds Amount Adjusted Levy

2015 $ 352,184,851 (213,027) (6,300,050) 345,671,774 337,212,410 95.75% n/a 2,600,133 334,612,277 96.80%

2014 354,766,682 (4,484,799) (6,265,519) 344,016,364 335,740,093 94.64 5,046,567 6,513,441 334,273,219 97.17

2013 368,573,404 (31,119,457)(2) (6,393,206) 331,060,741 337,989,221 91.70 6,776,207 15,858,880 (2) 328,906,548 99.35

2012 333,984,203 (1,954,283) (6,040,599) 325,989,321 317,908,712 95.19 7,785,039 3,358,509 322,335,242 98.88

2011 273,073,105 (2,099,546) (4,903,564) 266,069,995 261,035,739 95.59 3,564,563 3,086,311 261,513,991 98.29

2010 272,080,809 (2,085,218) (4,920,286) 265,075,305 251,657,283 92.49 13,091,132 3,187,378 261,561,037 98.67

2009 269,375,834 (1,678,723) (4,802,758) 262,894,353 248,684,071 92.32 14,756,536 4,186,757 259,253,850 98.62

2008 266,952,614 (460,275) (4,780,233) 261,712,106 248,322,353 93.02 14,103,677 2,961,483 259,464,547 99.14

2007 267,392,280 (3,815,852) (4,756,258) 258,820,170 245,093,452 91.66 15,520,387 5,315,431 255,298,408 98.64

2006 264,165,345 (2,436,182) (4,687,600) 257,041,563 242,885,132 91.94 14,631,523 5,239,357 252,277,298 98.15

The above schedule cannot be traced to the financial statements.

(1) Included in adjustments are assessment additions/exonerations. (2) All properties were reassessed resulting in many appeals and refunds. The Homestead Exemption was also increased to $18,000 from $15,000 for each residential property. Table XI COUNTY OF ALLEGHENY, PENNSYLVANIA Principal Taxpayers December 31, 2015 and December 31, 2006

December 31, 2015 December 31, 2006 Real Property Percentage of Total Real Property Percentage of Total Taxpayer Assessed Valuation (1) Rank Assessed Valuation Assessed Valuation (1) Rank Assessed Valuation

Holdings Acquisition CO, Limited Partnership $ 242,078,500 1 0.33%

600 Grant Street Properties, Limited Partnership 233,211,300 2 0.31 160,000,000 3 0.28

500 Grant Street Associates & Mellon N.A. 214,000,000 3 0.29 285,824,400 1 0.51

HRLP Fourth Avenue LLC 179,400,000 4 0.24

Oxford Development Company 154,000,000 5 0.21 112,000,000 6 0.20

Pittsburgh Mills Limited Partnership 138,361,100 6 0.19 127,969,200 4 0.23 Report Financial Annual Comprehensive Allegheny of County 2015

IX Liberty Center Owner, Limited Partnership 123,500,000 7 0.17

Robinson Mall JCP Associates Limited 108,000,000 8 0.15 104,742,900 9 0.19

CBL Monroeville Partner, Limited Partnership 105,000,000 9 0.14

Mellon Bank N.A. 93,422,700 10 0.13

Market Associates, Limited Partnership - - 185,000,000 2 0.33

Donald Soffer - - 120,776,200 5 0.21

Century III Associates - - 112,000,000 7 0.20

Grant Liberty Development Group Associates & Liberty Center Venture - - 110,000,000 8 0.20

Mellon Bank N. A. - - 104,309,700 10 0.18 eeu Capacity Revenue 1,590,973,600 2.16% 1,422,622,400 2.53%

Year End Total Taxable Assessed Valuation $ 74,412,648,641 56,404,299,088

Source: Allegheny County Board of Property Assessment, Appeals, Review and Registry

(1) Assessed valuation based on the valuation of property for taxes collected in 2015 and 2006 respectively, and a review of the 10 largest taxpayers for the County. Note: Assessed valuation for real property for 2015 through 2001 is based upon 100% of market value (estimated actual value) as set by County appraisal. 341 342 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XII Capacity Revenue

COUNTY OF ALLEGHENY, PENNSYLVANIA Assessed Valuation of Taxable Property Last Ten Years

Beginning of Year End of Year Total Taxable Taxable Total Residential Commercial Tax-Exempt Assessed Assessed Assessed Direct Year Real Property Real Property Property Value Valuation Valuation Tax Rate

2015 $ 52,177,497,583 23,037,501,921 23,144,690,943 98,359,690,447 75,214,999,504 74,412,648,641 0.473

2014 51,399,160,421 23,604,308,549 23,026,829,639 98,030,298,609 75,003,468,970 73,690,269,797 0.473

2013 52,382,246,089 26,389,272,047 23,102,427,975 101,873,946,111 78,771,518,136 73,150,422,595 0.473

2012 40,968,251,581 18,186,262,832 16,790,174,575 75,944,688,988 59,154,514,413 58,648,167,586 0.569(1)

2011 40,850,731,999 18,068,233,522 16,529,566,165 75,448,531,686 58,918,965,521 58,091,994,762 0.469

2010 40,594,872,067 18,115,514,721 16,000,204,611 74,710,591,399 58,710,386,788 57,823,817,677 0.469

2009 40,337,045,876 17,857,634,828 15,987,458,790 74,182,139,494 58,194,680,704 57,185,917,361 0.469

2008 39,954,741,953 17,697,455,014 15,597,356,909 73,249,553,876 57,652,196,967 56,887,676,094 0.469

2007 39,907,854,345 17,866,687,947 15,429,699,227 73,204,241,519 57,774,542,292 56,361,190,356 0.469

2006 39,506,158,622 17,609,207,089 14,779,725,725 71,895,091,436 57,115,365,711 56,404,299,088 0.469

Source: Yearly County Certification Report

(1) On December 6, 2011 Council passed an ordinance increasing the tax millage to .569 for 2012.

Note: The Second Class County Code permits the County to levy taxes up to $2.50 per $100 of assessed valuation for general governmental services and in unlimited amounts for debt service. The Adminitrative Code prohibits the County from deriving windfall benefits from the annual property reassessments or from changes in the predetermined ratio of assessed valuation to market value. The total real estate tax revenue received by reason of reassessment or change in the ratio shall not exceed the total amount of real estate tax revenue received in the preceding year. If necessary, the County shall reduce the real estate tax rate to comply with this revenue limitation. Table XIII (Page 1 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Real Estate Rate (Mills) Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

ALLEGHENY COUNTY

General Fund 3.9552 3.9154 3.8194 4.5593 3.6852 3.5806 4.0700 3.7616 3.7882 3.7788 Debt Service 0.7748 0.8146 0.9106 1.1307 1.0048 1.1094 0.6200 0.9284 0.9018 0.9112

Total tax rate (mills) 4.73 4.73 4.73 5.69 4.69 4.69 4.69 4.69 4.69 4.69 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015 Aleppo Township Municipal 3.5 3.5 4.0 5.0 5.0 5.0 5.0 5.0 5.5 5.5 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.70 19.75 19.75 19.35 18.85

Aspinwall Borough Municipal 4.86 4.86 4.86 6.25 6.25 6.25 5.25 5.25 5.25 4.25 Fox Chapel Area S.D. 18.6283 18.6283 18.4475 21.5576 21.558 21.26 20.78 20.3 19.71 19.07

Avalon Borough Municipal 9.83 7.83 6.83 9.01 9.01 9.01 9.01 7.25 7.25 6.7 Northgate S.D. 24.7867 24.7867 23.7071 28.6 28.6 27.6 24.5 24.5 24.5 24.5

Baldwin Borough Municipal 5.95 5.41 5.41 6.61 6.61 6.61 6.61 6.61 6.61 6.616 Baldwin-Whitehall S.D. 18.42 17.61 19.61 23.4 23.4 23.4 23.5 23.61 24.61 24.61

Baldwin Township Capacity Revenue Municipal 7.8 7.8 7.8 9.5 9.5 9.5 9.5 8.5 8.5 8.5 Baldwin-Whitehall S.D. 18.42 17.61 19.61 23.4 23.4 23.4 23.5 23.61 24.61 24.61

Bell Acres Borough Municipal 4.32 4.12 4.12 5.0 5.0 4.5 4.5 4.5 4.5 4.0 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85

Bellevue Borough Municipal 4.89 4.89 4.89 7.0 7.0 7.0 7.0 7.0 6.0 5.7 Northgate S.D. 24.7867 24.7867 23.7071 28.6 28.6 27.6 24.5 24.5 24.5 24.5 343 344 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XIII (Page 2 of 19) Capacity Revenue COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Real Estate Rate (Mills) Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Ben Avon Borough Municipal 4.38 4.39 4.28 5.60 5.61 5.69 5.69 5.72 5.67 5.64 Avonworth S.D. 18.67 18.67 17.7 20.9 20.0 20.0 19.3 18.8 18.8 18.2

Ben Avon Heights Borough Municipal 7.95 5.75 5.75 6.5 6.5 6.5 6.5 6.5 1.5 1.5 Avonworth S.D. 18.67 18.67 17.7 20.9 20.0 20.0 19.3 18.8 18.8 18.2

Bethel Park Borough Municipal 2.32 2.32 1.98 2.43 2.18 2.18 2.18 1.93 1.93 1.93 Bethel Park S.D. 22.8763 22.4276 21.8593 25.49 24.97 24.56 23.73 23.18 22.75 22.75

Blawnox Borough Municipal 9.85 9.35 8.895 9.74 9.74 9.74 9.74 9.74 9.74 9.74 Fox Chapel Area S.D. 18.6283 18.6283 18.4475 21.5576 21.558 21.26 20.78 20.3 19.71 19.07

Brackenridge Borough Municipal 5.77 5.77 5.77 5.77 5.77 5.77 5.77 5.77 5.49 5.49 Highlands S.D. 23.8 23.8 23.8 26.41 24.41 24.41 23.71 23.71 23.71 23.71

Braddock Borough Municipal 11.65 11.65 11.15 13.7 11.7 11.7 10.7 10.7 10.7 10.7 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9

Braddock Hills Borough Municipal 6.205 6.205 6.205 7.0 7.0 7.0 7.0 7.0 7.0 7.0 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9 Table XIII (Page 3 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Bradford Woods Borough Municipal 2.483 1.803 1.803 2.225 2.225 2.225 2.225 2.225 1.725 1.725 North Allegheny S.D. 18.0011 17.4039 17.4039 20.923 20.26 19.74 18.99 18.99 19.34 19.722

Brentwood Borough Municipal 8.75 8.75 7.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 Brentwood S.D. 28.1907 26.8259 24.8044 28.27 28.27 28.27 28.27 28.27 28.27 28.27 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015 Bridgeville Borough Municipal 5.5 5.5 5.5 6.75 6.75 6.75 4.75 4.75 4.75 4.75 Chartiers Valley S.D. 16.2175 16.2175 16.2175 19.88 19.88 19.88 19.32 19.32 19.32 19.32

Carnegie Borough Municipal 6.63 6.63 6.23 7.2 7.2 7.2 7.2 7.4 7.7 6.2 Carlynton S.D. 20.584 19.604 19.089 23.15 24.15 24.15 24.15 24.15 24.15 24.15

Castle Shannon Borough Municipal 8.385 8.385 7.328 9.4 9.4 7.9 7.9 7.9 7.9 7.9 Keystone Oaks S.D. 18.63 18.63 18.63 22.03 22.03 22.03 21.31 21.31 21.31 21.31

Chalfant Borough Municipal 6.9 6.9 6.9 6.9 6.9 7.9 6.9 6.9 6.9 6.9 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9

Cheswick Borough Capacity Revenue Municipal 5.93 5.68 5.68 6.82 6.5 6.5 5.25 5.0 5.0 5.0 Allegheny Valley S.D. 20.3494 20.3494 19.9494 23.46 23.46 23.46 23.46 23.208 22.23 21.5 345 346 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XIII (Page 4 of 19) Capacity Revenue

COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Churchill Borough Municipal 5.48 5.48 4.23 5.75 5.75 5.75 4.75 4.0 4.0 4.0 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9

Clairton City Municipal: Land 33.0 33.0 33.0 33.0 28.0 28.0 28.0 28.0 28.0 28.0 Buildings 3.5 3.5 3.5 2.22 2.22 2.22 2.22 2.22 1.22 1.22 Clairton S.D. Land 75.0 75.0 75.0 80.0 87.0 87.0 75.0 75.0 75.0 75.0 Buildings 7.0 7.0 7.0 7.5 3.5 3.9 3.1 3.1 3.1 3.1

Collier Township Municipal 2.73 2.73 2.73 3.5 3.5 3.5 3.5 3.5 3.5 3.5 Chartiers Valley S.D. 16.2175 16.2175 16.2175 19.88 19.88 19.88 19.32 19.32 19.32 19.32

Coraopolis Borough Municipal 12.5 12.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 Cornell S.D. 23.314 22.746 22.746 26.552 25.955 24.11 22.93 22.93 21.74 20.89

Crafton Borough Municipal 7.09 7.09 7.09 8.75 8.75 8.75 8.75 7.25 5.5 5.5 Carlynton S.D. 20.584 19.604 19.089 23.15 24.15 24.15 24.15 24.15 24.15 24.15

Crescent Township Municipal 6.4 6.4 6.4 6.5 6.5 6.5 6.5 6.5 6.5 6.5 Moon Area S.D. 18.8461 18.8461 18.1167 21.3 21.3 21.3 21.3 20.47 19.61 19.11

Dormont Borough Municipal 8.97 8.97 8.97 14.0 14.0 14.0 14.0 14.0 14.0 14.0 Keystone Oaks S.D. 18.63 18.63 18.63 22.03 22.03 22.03 21.31 21.31 21.31 21.31 Table XIII (Page 5 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Dravosburg Borough Municipal 7.55 7.8 7.03 7.315 5.315 5.315 5.315 5.315 5.315 5.315 McKeesport Area S.D. 16.15 15.7 15.22 17.49 17.05 16.71 16.71 17.71 17.71 17.71

Duquesne City Municipal: Land 18.5 18.5 18.5 19.0 19.0 19.0 19.0 19.0 19.0 19.0

Buildings 11.5 11.5 11.5 13.47 13.47 13.47 13.47 11.47 11.47 11.47 Report Financial Annual Comprehensive Allegheny of County 2015 Duquesne S.D. 17.5 17.5 17.5 21.1 21.1 21.1 21.1 21.1 21.1 21.1

East Deer Township Municipal 4.9673 5.0175 4.5 6.0 6.0 5.5 4.5 4.5 3.9 3.9 Deer Lakes S.D. 21.953 21.953 21.953 26.69 26.69 26.25 26.25 25.323 24.035 23.0

East McKeesport Borough Municipal 7.4 7.4 7.9 8.1 8.1 6.1 6.1 6.1 6.1 6.1 East Allegheny S.D. 25.8 27.54 27.54 27.54 27.54 27.54 26.54 26.54 26.54 25.54

East Pittsburgh Borough Municipal 13.65 13.65 11.89 15.15 15.15 15.15 15.15 12.15 12.15 12.15 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9

Edgewood Borough Municipal 7.15 5.9 5.65 8.161 8.161 8.161 6.661 6.661 6.661 6.661 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9 Capacity Revenue

Edgeworth Borough Municipal 4.15 4.15 4.15 5.4 5.4 5.4 5.4 5.4 5.4 5.4 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85 347 348 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XIII (Page 6 of 19) Capacity Revenue COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Elizabeth Borough Municipal 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 Elizabeth-Forward S.D. 20.6052 20.6052 20.6052 25.0118 25.012 23.76 23.51 22.66 21.36 21.36

Elizabeth Township Municipal (4) 3.926 3.926 3.926 4.429 4.429 4.429 4.429 4.429 4.429 4.429 Elizabeth-Forward S.D. 20.6052 20.6052 20.6052 25.0118 25.012 23.76 23.51 22.66 21.36 21.36

Emsworth Borough Municipal 3.955 3.955 3.955 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Avonworth S.D. 18.67 18.67 17.7 20.9 20.0 20.0 19.3 18.8 18.8 18.2

Etna Borough Municipal 8.25 8.25 8.25 9.0 9.0 9.0 9.0 9.0 6.5 6.5 Shaler Area S.D. 21.87 21.34 20.76 25.63 25.63 25.63 24.7 24.7 24.7 24.25

Fawn Township Municipal 3.04 3.04 3.04 3.5 3.5 3.5 3.5 3.5 3.5 3.0 Highlands S.D. 23.8 23.8 23.8 26.41 24.41 24.41 23.71 23.71 23.71 23.71

Findlay Township Municipal 1.6 1.6 1.6 1.95 1.95 1.95 1.95 1.95 1.95 1.95 West Allegheny S.D. 18.51 18.51 18.51 22.0 22.0 22.0 22.0 22.0 21.5 21.5

Forest Hills Borough Municipal 8.0 8.0 8.0 8.35 8.35 8.35 8.35 8.35 8.35 7.35 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9 Table XIII (Page 7 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Forward Township Municipal 1.95 2.05 2.95 2.95 2.95 2.95 2.95 2.95 2.95 2.95 Elizabeth-Forward S.D. 20.6052 20.6052 20.6052 25.01 25.012 23.76 23.51 22.66 21.36 21.36

Fox Chapel Borough Municipal 2.5 2.3 2.16 2.4 2.4 2.3 2.0 2.0 2.0 1.7 Fox Chapel Area S.D. 18.6283 18.6283 18.4475 21.5576 21.558 21.26 20.78 20.3 19.71 19.07 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015 Franklin Park Borough Municipal 1.077 1.077 1.077 1.283 1.283 1.283 1.283 1.283 1.283 1.283 North Allegheny S.D. 18.0011 17.4039 17.4039 20.923 20.26 19.74 18.99 18.99 19.34 19.722

Frazer Township Municipal 1.42 1.42 1.42 1.55 1.55 1.55 1.55 1.55 1.55 1.55 Deer Lakes S.D. 21.953 21.953 21.953 26.69 26.69 26.25 26.25 25.323 24.035 23.0

Glassport Borough Municipal 11.99 8.99 8.99 8.99 8.99 8.99 8.99 8.99 7.6 7.6 South Allegheny S.D. 17.24 17.24 17.24 18.49 18.49 18.11 18.11 18.11 18.11 18.21

Glenfield Borough Municipal 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85

Green Tree Borough Capacity Revenue Municipal 3.61 3.61 3.61 4.35 4.35 4.35 4.35 4.35 4.35 4.35 Keystone Oaks S.D. 18.63 18.63 18.63 22.03 22.03 22.03 21.31 21.31 21.31 21.31 349 350 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XIII (Page 8 of 19) Capacity Revenue COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Hampton Township Municipal 2.4026 2.4026 2.4026 2.5045 2.5045 2.5045 2.5045 2.2805 2.1665 2.1665 Hampton S.D. 18.12 17.85 17.59 21.35 21.35 20.88 20.88 20.53 20.53 20.53

Harmar Township Municipal 3.7 3.7 3.7 5.0 5.0 5.0 5.0 3.26 3.26 3.26 Allegheny Valley S.D. 20.3494 20.3494 19.9494 23.46 23.46 23.46 23.46 23.208 22.23 21.5

Harrison Township Municipal 5.106 4.341 4.341 5.25 5.25 5.25 5.25 5.25 5.5 5.25 Highlands S.D. 23.8 23.8 23.8 26.41 24.41 24.41 23.71 23.71 23.71 23.71

Haysville Borough Municipal 4.8 4.18 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85

Heidelberg Borough Municipal 6.95 6.95 6.95 8.5 8.5 8.5 8.5 8.5 8.5 8.5 Chartiers Valley S.D. 16.2175 16.2175 16.2175 19.88 19.88 19.88 19.32 19.32 19.32 19.32

Homestead Borough Municipal 13.33 13.33 13.0 13.0 13.0 10.0 10.0 10.0 10.0 10.5 Steel Valley S.D. 21.31 21.31 21.31 24.169 24.169 24.07 21.21 21.21 21.21 18.92

Indiana Township Municipal 2.95 2.95 2.71 3.2 3.0 3.0 3.0 3.0 2.75 2.75 Fox Chapel Area S.D. 18.6283 18.6283 18.4475 21.5576 21.558 21.26 20.78 20.3 19.71 19.07 Table XIII (Page 9 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Ingram Borough Municipal 6.1 6.1 6.1 7.5 7.5 7.5 7.5 7.5 7.5 7.5 Montour S.D. 17.2211 16.9 16.9 18.9 18.9 18.9 18.9 18.9 18.9 18.3

Jefferson Hills Borough Municipal 5.66 4.66 4.66 5.63 5.63 5.63 5.63 5.63 5.63 5.63 West Jefferson Hills S.D. 19.038 18.592 18.104 21.08 21.08 21.08 21.08 21.08 19.99 19.99 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015 Kennedy Township Municipal 2.0 2.0 1.67 1.95 1.95 1.95 1.95 1.95 1.35 1.35 Montour S.D. 17.2211 16.9 16.9 18.9 18.9 18.9 18.9 18.9 18.9 18.3

Kilbuck Township Municipal 5.226 5.226 5.226 6.5 6.5 6.5 7.0 7.0 5.5 5.5 Avonworth S.D. 18.67 18.67 17.7 20.9 20.0 20.0 19.3 18.8 18.8 18.2

Leet Township Municipal 6.7 5.3 5.3 7.0 7.0 7.0 7.0 6.5 6.5 6.5 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85

Leetsdale Borough Municipal 10.0 10.0 8.0 10.0 10.0 10.0 9.6 9.6 8.6 8.6 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85

Liberty Borough Capacity Revenue Municipal 4.5 4.5 4.5 5.0 4.0 4.1 4.2 4.3 4.3 4.35 South Allegheny S.D. 17.24 17.24 17.24 18.49 18.49 18.11 18.11 18.11 18.11 18.21 351 352 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XIII (Page 10 of 19) Capacity Revenue COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Lincoln Borough Municipal 6.5 6.5 7.5 8.5 6.8 6.8 6.3 6.3 6.3 6.3 South Allegheny S.D. 17.24 17.24 17.24 18.49 18.49 18.11 18.11 18.11 18.11 18.21

Marshall Township Municipal 1.42 1.42 1.42 1.7 1.7 1.7 1.7 1.7 1.7 1.7 North Allegheny S.D. 18.0011 17.4039 17.4039 20.923 20.26 19.74 18.99 18.99 19.34 19.722

McCandless Township Municipal 1.296 1.296 1.296 1.5 1.5 1.5 1.5 1.5 1.5 1.5 North Allegheny S.D. 18.0011 17.4039 17.4039 20.923 20.26 19.74 18.99 18.99 19.34 19.722

McDonald Borough (Part) Municipal 40.75 40.75 40.75 40.75 40.75 40.75 40.75 39.25 38.75 36.5 Fort Cherry S.D. 126.5875 123.5 121.0 118.5 118.5 118.5 118.5 118.5 118.5 118.5 (Washington County)

McKeesport City Municipal: Land 16.5 16.5 16.5 16.5 16.5 16.5 16.5 16.5 16.5 19.0 Buildings 4.26 4.26 4.26 4.26 4.26 4.26 4.26 4.26 4.26 4.26 McKeesport Area S.D. 16.15 15.7 15.22 17.49 17.05 16.71 16.71 17.71 17.71 17.71

McKees Rocks Borough Municipal 8.9 6.9 6.9 8.0 8.0 8.0 8.0 8.0 8.0 8.0 Sto-Rox S.D. 23.19 23.19 23.19 25.0 25.0 25.0 25.0 25.0 25.0 25.0

Millvale Borough Municipal 9.0 8.5 8.5 9.0 9.0 9.0 9.0 9.0 7.5 7.5 Shaler Area S.D. 21.87 21.34 20.76 25.63 25.63 25.63 24.7 24.7 24.7 24.25 Table XIII (Page 11 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Monroeville Borough Municipal 4.0 4.0 2.431 2.2 2.2 2.2 2.2 2.2 2.2 2.2 Gateway S.D. 19.3264 18.8919 18.8919 21.85 21.02 21.02 19.41 19.41 19.41 19.41

Moon Township Municipal 2.74 2.74 2.48 3.28 3.28 3.28 3.28 3.28 3.28 3.28 Moon Area S.D. 18.8461 18.8461 18.1167 21.3 21.3 21.3 21.3 20.47 19.61 19.11 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015 Mount Lebanon Township Municipal 4.51 4.51 4.51 5.43 4.76 4.89 4.89 4.97 4.97 4.79 Mount Lebanon S.D. 23.55 23.15 22.61 27.13 26.63 26.63 24.11 23.81 23.56 23.56

Mount Oliver Borough Municipal 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 Pittsburgh S.D. 9.84 9.84 9.65 13.92 13.92 13.92 13.92 13.92 13.92 13.92

Munhall Borough Municipal 10.75 10.75 10.75 10.75 10.75 10.75 10.25 9.25 7.75 7.75 Steel Valley S.D. 21.31 21.31 21.31 24.169 24.169 24.07 21.21 21.21 21.21 18.92

Neville Township Municipal 4.95 4.45 4.45 4.75 4.75 4.75 4.75 4.75 4.75 7.25 Cornell S.D. 23.314 22.746 22.746 26.552 25.955 24.11 22.93 22.93 21.74 20.89

North Braddock Borough Capacity Revenue Municipal 11.0 11.0 11.0 11.0 11.0 11.0 11.0 9.0 9.0 9.0 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9 353 354 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XIII (Page 12 of 19) Capacity Revenue COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

North Fayette Township Municipal 3.29 3.29 3.29 3.9 3.9 3.9 3.2 2.9 2.9 2.9 West Allegheny S.D. 18.51 18.51 18.51 22.0 22.0 22.0 22.0 22.0 21.5 21.5

North Versailles Township Municipal 7.75 7.75 7.75 8.0 8.0 8.0 7.5 6.0 5.5 5.0 East Allegheny S.D. 25.8 27.54 27.54 27.54 27.54 27.54 26.54 26.54 26.54 25.54

Oakdale Borough Municipal 2.99 2.99 2.99 4.0 4.0 4.0 3.0 3.0 3.0 3.0 West Allegheny S.D. 18.51 18.51 18.51 22.0 22.0 22.0 22.0 22.0 21.5 21.5

Oakmont Borough Municipal 3.4 3.4 3.4 4.5 4.5 4.5 4.5 3.92 3.92 3.92 Riverview S.D. 22.4462 22.4462 21.18 25.355 24.786 24.05 23.26 23.11 23.36 22.74

O'Hara Township Municipal 1.725 1.725 1.725 2.2 2.2 2.2 2.2 2.2 2.2 2.2 Fox Chapel Area S.D. 18.6283 18.6283 18.4475 21.5576 21.558 21.26 20.78 20.3 19.71 19.07

Ohio Township Municipal 2.29 2.29 2.29 2.75 2.75 2.75 2.75 2.75 2.75 2.75 Avonworth S.D. 18.67 18.67 17.7 20.9 20.0 20.0 19.3 18.8 18.8 18.2

Osborne Borough Municipal 4.6 4.6 5.1 6.0 6.0 6.0 6.0 6.1 5.1 4.9 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85 Table XIII (Page 13 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Penn Hills Township Municipal 5.444 5.444 5.444 5.6 5.35 5.1 4.6 4.6 4.6 4.6 Penn Hills S.D. 24.8061 24.15 23.47 24.81 24.81 24.81 24.81 24.81 23.39 23.39

Pennsbury Village Borough Municipal 4.6 4.38 4.19 5.9 5.9 5.9 5.9 5.9 5.9 5.9 Montour S.D. 17.2211 16.9 16.9 18.9 18.9 18.9 18.9 18.9 18.9 18.3 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015 Pine Township Municipal 0.998 0.998 0.998 1.2 1.2 1.2 1.2 1.2 1.2 1.2 Pine-Richland S.D. 19.2083 19.2083 19.2083 22.815 21.9084 21.9084 20.2 20.2 20.2 20.2

Pitcairn Borough Municipal 8.75 7.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 Gateway S.D. 19.3264 18.8919 18.8919 21.85 21.02 21.02 19.41 19.41 19.41 19.41

Pittsburgh City Municipal 8.06 7.56 7.56 10.8 10.8 10.8 10.8 10.8 10.8 10.8 Pittsburgh S.D. 9.84 9.84 9.65 13.92 13.92 13.92 13.92 13.92 13.92 13.92

Pleasant Hills Borough Municipal 6.75 5.75 5.322 6.607 6.607 6.607 6.607 6.607 6.607 6.607 West Jefferson Hills S.D. 19.038 18.592 18.104 21.08 21.08 21.08 21.08 21.08 19.99 19.99

Plum Borough Capacity Revenue Municipal 3.78 3.78 4.3 4.3 4.3 4.3 4.3 4.3 3.3 3.3 Plum S.D. 18.758 18.758 18.758 22.2 22.2 22.2 22.2 22.2 22.2 22.2 355 356 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XIII (Page 14 of 19) Capacity Revenue COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Port Vue Borough Municipal 7.4 7.4 7.86 7.86 7.86 6.86 5.11 5.11 5.11 5.11 South Allegheny S.D. 17.24 17.24 17.24 18.49 18.49 18.11 18.11 18.11 18.11 18.21

Rankin Borough Municipal 9.6928 9.6928 9.6928 13.8 13.8 13.8 13.8 13.8 13.8 13.8 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9

Reserve Township Municipal 4.47 4.47 4.47 5.24 5.24 5.24 3.99 3.99 3.99 3.99 Shaler Area S.D. 21.87 21.34 20.76 25.63 25.63 25.63 24.7 24.7 24.7 24.25

Richland Township Municipal 2.2 2.2 2.2 2.75 2.75 2.75 2.75 2.75 2.75 2.75 Pine-Richland S.D. 19.2083 19.2083 19.2083 22.815 21.9084 21.9084 20.2 20.2 20.2 20.2

Robinson Township Municipal 2.6 2.6 2.6 3.05 3.05 3.05 3.05 3.05 2.65 2.65 Montour S.D. 17.2211 16.9 16.9 18.9 18.9 18.9 18.9 18.9 18.9 18.3

Ross Township Municipal 2.7 2.7 2.7 3.0 3.0 1.967 1.967 1.967 1.967 1.967 North Hills S.D. 17.4 17.26 17.06 21.26 20.91 19.91 19.35 19.6 19.1 18.5

Rosslyn Farms Borough Municipal 8.0 6.88 6.88 9.975 9.5 9.5 10.5 10.5 10.5 5.75 Carlynton S.D. 20.584 19.604 19.089 23.15 24.15 24.15 24.15 24.15 24.15 24.15 Table XIII (Page 15 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Scott Township Municipal 5.330 4.330 4.457 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Chartiers Valley S.D. 16.2175 16.2175 16.2175 19.88 19.88 19.88 19.32 19.32 19.32 19.32

Sewickley Borough Municipal 6.5 5.95 6.5 7.3 7.3 6.8 6.8 6.8 6.8 5.8 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015 Sewickley Heights Borough Municipal 4.0 4.0 2.901 3.75 3.75 3.75 3.75 3.75 3.75 3.75 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85

Sewickley Hills Borough Municipal 2.84 2.84 2.37 3.0 3.0 3.0 3.0 3.0 1.35 1.35 Quaker Valley S.D. 17.3232 17.1548 16.93 21.25 20.95 20.7 19.75 19.75 19.35 18.85

Shaler Township Municipal 2.49 2.49 2.49 3.05 3.05 3.05 3.05 2.8 2.8 2.8 Shaler Area S.D. 21.87 21.34 20.76 25.63 25.63 25.63 24.7 24.7 24.7 24.25

Sharpsburg Borough Municipal 7.15 6.62 6.47 8.5 8.0 8.0 8.0 7.0 7.0 7.0 Fox Chapel Area S.D. 18.6283 18.6283 18.4475 21.5576 21.558 21.26 20.78 20.3 19.71 19.07

South Fayette Township Capacity Revenue Municipal 3.48 3.48 3.48 3.84 3.84 3.84 3.84 3.84 4.0 4.0 South Fayette S.D. 26.1168 25.2126 24.7126 28.824 27.83 24.88 24.04 24.04 23.14 21.19 357 358 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XIII (Page 16 of 19) Capacity Revenue COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

South Park Township Municipal 3.062 3.062 3.062 3.6 3.6 3.6 3.6 3.6 3.6 3.6 South Park S.D. 23.06 22.48 21.85 25.99 25.99 25.99 25.99 25.99 24.7 24.7

South Versailles Township Municipal 2.9 2.9 2.9 4.2 4.2 4.2 4.2 4.2 4.2 4.2 McKeesport Area S.D. 16.15 15.7 15.22 17.49 17.05 16.71 16.71 17.71 17.71 17.71

Springdale Borough Municipal 6.75 6.5 4.5 6.5 6.5 5.5 5.5 5.5 5.5 5.5 Allegheny Valley S.D. 20.3494 20.3494 19.9494 23.46 23.46 23.46 23.46 23.208 22.23 21.5

Springdale Township Municipal 6.5 5.5 5.0 5.5 5.0 5.0 4.7 4.7 4.7 4.5 Allegheny Valley S.D. 20.3494 20.3494 19.9494 23.46 23.46 23.46 23.46 23.208 22.23 21.5

Stowe Township Municipal 10.48 10.48 10.48 11.25 11.25 8.25 7.75 7.5 7.25 7.0 Sto-Rox S.D. 23.19 23.19 23.19 25.0 25.0 25.0 25.0 25.0 25.0 25.0

Swissvale Borough Municipal 8.0 7.04 7.04 10.1 10.1 9.1 9.1 9.1 9.1 9.1 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9

Tarentum Borough Municipal 5.48 5.48 5.48 5.48 5.48 5.48 5.48 5.48 5.48 4.48 Highlands S.D. 23.8 23.8 23.8 26.41 24.41 24.41 23.71 23.71 23.71 23.71 Table XIII (Page 17 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Thornburg Borough Municipal 5.6 5.6 5.6 6.5 5.0 5.0 5.0 5.5 5.5 6.0 Montour S.D. 17.2211 16.9 16.9 18.9 18.9 18.9 18.9 18.9 18.9 18.3

Trafford Borough (Part) Municipal (2) 28.5 28.5 28.5 28.5 28.5 22.5 22.75 23.0 23.0 23.0 Penn-Trafford S.D. 15.55 16.36 14.43 14.43 14.15 14.27 13.14 13.66 71.25 71.25

(Westmoreland County) Report Financial Annual Comprehensive Allegheny of County 2015

Turtle Creek Borough Municipal 8.0 8.0 7.75 8.5 8.5 8.5 8.5 7.5 7.5 7.5 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9

Upper St. Clair Township Municipal 3.83 3.83 3.83 4.6 4.6 4.6 3.4 2.6 2.6 2.6 Upper St. Clair S.D. 23.0355 22.1957 21.413 25.718 24.1 23.77 23.37 22.45 22.45 22.45

Verona Borough Municipal 8.0 8.0 8.0 8.0 8.0 8.0 8.0 6.45 6.45 6.45 Riverview S.D. 22.4462 22.4462 21.18 25.355 24.786 24.05 23.26 23.11 23.36 22.74

Versailles Borough Municipal 7.0 7.0 7.0 8.0 8.0 8.0 6.0 6.0 6.0 6.0 McKeesport Area S.D. 16.15 15.7 15.22 17.49 17.05 16.71 16.71 17.71 17.71 17.71 eeu Capacity Revenue

Wall Borough Municipal 7.22 7.22 7.22 8.0 8.0 6.0 6.0 6.0 6.0 6.0 East Allegheny S.D. 25.8 27.54 27.54 27.54 27.54 27.54 26.54 26.54 26.54 25.54 359 360 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015

Table XIII (Page 18 of 19) Capacity Revenue COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

West Deer Township Municipal 1.99 1.99 1.99 2.35 2.35 1.71 1.71 1.71 1.71 1.71 Deer Lakes S.D. 21.953 21.953 21.953 26.69 26.69 26.25 26.25 25.323 24.035 23.0

West Elizabeth Borough Municipal 3.93 3.93 6.0 6.0 6.0 6.0 6.0 6.0 6.0 5.0 West Jefferson Hills S.D. 19.038 18.592 18.104 21.08 21.08 21.08 21.08 21.08 19.99 19.99

West Homestead Borough Municipal 8.8 7.38 7.05 9.31 9.31 9.31 9.31 9.31 9.31 9.31 Steel Valley S.D. 21.31 21.31 21.31 24.169 24.169 24.07 21.21 21.21 21.21 18.92

West Mifflin Borough Municipal 7.55 7.55 8.02 7.27 7.27 7.27 7.27 7.27 6.27 6.27 West Mifflin Area S.D. 24.4965 24.4965 20.346 22.992 22.992 22.992 22.992 22.292 21.092 21.092

West View Borough Municipal 5.4 5.4 5.4 6.68 6.68 6.68 5.68 5.68 5.68 5.68 North Hills S.D. 17.4 17.26 17.06 21.26 20.91 19.91 19.35 19.6 19.1 18.5

Whitaker Borough Municipal 10.0038 9.0038 9.0038 9.58 9.43 9.43 9.43 9.43 8.43 8.43 West Mifflin Area S.D. 24.4965 24.4965 20.346 22.992 22.992 22.992 22.992 22.292 21.092 21.092

Whitehall Borough Municipal 4.42 4.66 4.32 5.5 5.5 5.5 5.5 5.5 5.5 5.5 Baldwin-Whitehall S.D. 18.42 17.61 19.61 23.4 23.4 23.4 23.5 23.61 24.61 24.61 Table XIII (Page 19 of 19) COUNTY OF ALLEGHENY, PENNSYLVANIA Property Tax Rates - Direct and Overlapping Governments Last Ten Years (1)

Municipality and School District (3) 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

White Oak Borough Municipal 4.66 4.65 4.66 5.66 5.6 4.16 4.16 4.16 4.16 4.16 McKeesport Area S.D. 16.15 15.7 15.22 17.49 17.05 16.71 16.71 17.71 17.71 17.71

Wilkins Township Municipal 5.674 5.674 4.674 5.513 4.513 4.513 4.513 4.513 3.513 3.513 Woodland Hills S.D. 22.4 22.4 22.4 26.21 25.65 25.65 25.65 24.65 24.65 23.9 05Cut fAlgeyCmrhnieAna iaca Report Financial Annual Comprehensive Allegheny of County 2015 Wilkinsburg Borough Municipal 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.0 14.0 Wilkinsburg S.D. 32.63 32.63 32.63 36.7 35.0 35.0 35.0 35.0 35.0 35.0

Wilmerding Borough Municipal 10.0 8.0 8.0 8.0 8.0 8.0 6.05 6.05 5.8 5.8 East Allegheny S.D. 25.8 27.54 27.54 27.54 27.54 27.54 26.54 26.54 26.54 25.54

(1) Source: Allegheny County Treasurer's Office provided the millage rates.

(2) Trafford Borough, 100% valuation historically.

(3) The school fiscal year reflects the period from July 1st through June 30th rather than the calendar year.

(4) The municipal millage for Elizabeth Township includes 0.5 mills for fire services. eeu Capacity Revenue 361 362 2015 County of Allegheny Comprehensive Annual Financial Report

Debt Capacity

COUNTY OF ALLEGHENY, PENNSYLVANIA Ratios of General Obligation Bonds Outstanding and Legal Debt Margin Last Ten Years

2015 2014 2013 2012 General obligation bonds outstanding: Net nonelectoral debt $ 862,490,954 895,557,427 858,574,858 860,127,217 Net lease rental debt 490,000 727,500 960,000 1,185,000

Total general bond debt 862,980,954 896,284,927 859,534,858 861,312,217 Less: Sinking Fund 2,760,294 4,102,566 5,644,795 3,662,209

Total net general bond debt 860,220,660 892,182,361 853,890,063 857,650,008

End of year actual taxable assessed valuation 74,412,648,641 73,690,269,797 73,150,422,595 58,648,167,586

Percentage of net debt to actual assessed valuation 1.16% 1.22% 1.18% 1.47%

Population 1,230,459 (1) 1,231,255 (2) 1,231,527 1,229,338

Net bonded debt per capita 699 725 693 698

Net bonded debt as a percentage of personal income n/a 2.26% 2.27% 2.27%

Total net debt applicable to debt limit 862,490,954 895,557,427 858,574,858 860,127,217

Legal debt limit 300% of average gross revenue 3,100,598,789 3,003,632,375 2,927,612,169 2,994,625,248

Legal debt margin within limitations $ 2,238,107,835 2,108,074,948 2,069,037,311 2,134,498,031

Legal debt margin as a percentage of the debt limit 72.18% 70.18% 70.67% 71.28%

Legal debt limit - For counties with lease rental debt 400% of average gross revenue $ 4,134,131,720 4,004,843,168 3,903,482,892 3,992,833,664

Total net debt applicable to debt limit 862,980,954 896,284,927 859,534,858 861,312,217

Legal debt margin within limitations $ 3,271,150,766 3,108,558,241 3,043,948,034 3,131,521,447

Legal debt margin as a percentage of the debt limit 79.13% 77.62% 77.98% 78.43%

(1) Source: Allegheny County Quick Facts from the U. S. Census Bureau (July 1, 2015 estimates) (2) Source: Allegheny County Quick Facts from the U. S. Census Bureau (July 1, 2014 estimates)

n/a: Information not available

Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements and Schedule J-'s. See J-3 for the calculation of the County's legal debt margin for the current year. 2015 County of Allegheny Comprehensive Annual Financial Report 363

Debt Capacity

Table XIV

COUNTY OF ALLEGHENY, PENNSYLVANIA Ratios of General Obligation Bonds Outstanding and Legal Debt Margin Last Ten Years

2011 2010 2009 2008 2007 2006

762,313,919 644,434,866 675,742,822 632,999,547 615,230,709 536,316,591 9,327,500 11,390,000 13,382,500 15,305,000 17,175,000 64,815,000

771,641,419 655,824,866 689,125,322 648,304,547 632,405,709 601,131,591 552,059 - - - - -

771,089,360 655,824,866 689,125,322 648,304,547 632,405,709 601,131,591

58,091,994,762 57,823,817,677 57,185,917,361 56,887,676,094 56,361,190,356 56,404,299,088

1.33% 1.13% 1.21% 1.14% 1.12% 1.07%

1,227,066 1,223,348 1,218,494 1,215,103 1,219,210 1,223,411

628 536 566 534 519 491

2.21% 1.87% 2.00% 1.79% 1.80% 1.90%

762,313,919 644,434,866 675,742,822 632,999,547 615,230,709 536,316,591

3,173,644,626 3,318,411,507 3,271,642,257 3,229,362,843 3,163,766,427 3,082,180,564

2,411,330,707 2,673,976,641 2,595,899,435 2,596,363,296 2,548,535,718 2,545,863,973

75.98% 80.58% 79.35% 80.40% 80.55% 82.60%

4,231,526,168 4,424,548,676 4,362,189,676 4,305,817,124 4,218,355,236 4,109,574,085

771,641,419 655,824,866 689,125,322 648,304,547 632,405,709 601,131,591

3,459,884,749 3,768,723,810 3,673,064,354 3,657,512,577 3,585,949,527 3,508,442,494

81.76% 85.18% 84.20% 84.94% 85.01% 85.37% 364 2015 County of Allegheny Comprehensive Annual Financial Report

Debt Capacity

Table XV

COUNTY OF ALLEGHENY, PENNSYLVANIA Computation of Direct and Overlapping Debt December 31, 2015

Estimated Total Percentage Share of Debt Applicable Overlapping Jurisdiction Outstanding to County Debt

Overlapping Various school districts and school district authorities $ 2,844,945,365 (1) 100.00% 2,844,945,365

Various cities 592,249,074 (1) 100.00% 592,249,074

Various townships and boroughs 622,704,697 (1) 100.00% 622,704,697

Community College of Allegheny County 75,450,686 (2) 100.00% 75,450,686

Subtotal of overlapping debt 4,135,349,822

Direct County of Allegheny 862,490,954 (3)

Total direct and overlapping debt 4,997,840,776

RATIO OF TOTAL DIRECT AND OVERLAPPING DEBT: Total assessed value 6.72% Per capita $4,061.77

(1) Source: Digital Assurance Certification, LLC (DAC; dacbond.com)

(2) As of June 30, 2015. Source: Community College of Allegheny County.

(3) From Exhibit 1 and Note 8

Note: Overlapping governments are those that coincide with the geographic boundaries of the County. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Allegheny County. This process recognizes that, when considering the County's ability to repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the County's boundaries and dividing it by each unit's total taxable assessed value. 2015 County of Allegheny Comprehensive Annual Financial Report 365

Demographic & Economic Information

366 2015 County of Allegheny Comprehensive Annual Financial Report

Demographic & Economic Information

COUNTY OF ALLEGHENY, PENNSYLVANIA Demographic and Economic Statistics Last Ten Years

Educational Attainment: Bachelor's Total Per Capita Median Degree Population Personal Personal Household Median or Higher Year (1)(2)(6) Income (2) Income (2) Income (2) Age (2) (2)

2015 1,230,459 6 n/a n/a n/a n/a n/a

2014 1,231,255 6 39,497,459,900 32,378 52,390 2 41 2 37 2

2013 1,231,527 2 37,894,906,500 2 31,593 2 51,366 2 41 2 39 2

2012 1,229,338 2 38,000,189,700 2 31,653 2 50,884 2 41 2 37 2

2011 1,227,066 2 34,969,460,400 2 29,436 2 49,759 2 41 2 35 2

2010 1,223,348 1 35,152,671,300 2 29,549 2 47,505 2 42 2 34 2

2009 1,218,494 2 34,436,361,000 2 28,825 2 46,641 2 41 2 28 2

2008 1,215,103 2 36,286,405,600 2 29,863 2 48,798 2 40 2 28 2

2007 1,219,210 2 35,138,455,400 2 28,821 2 46,401 2 40 2 28 2

2006 1,223,411 2 31,607,095,100 2 26,544 2 43,691 2 40 2 28 2

(1) Source: U. S. Census, Census of population 2010 Federal Census (2) Source: U. S. Census Bureau, American FactFinder (3) Source: Pennsylvania Department of Education (4) Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information & Analysis (5) Source: Yearly Certification Report (6) Source: Allegheny County Quick Facts from the U. S. Census Bureau Estimates

n/a: Information not available 2015 County of Allegheny Comprehensive Annual Financial Report 367

Demographic & Economic Information

Table XVI

COUNTY OF ALLEGHENY, PENNSYLVANIA Demographic and Economic Statistics Last Ten Years

School Unemployment Total Assessed Enrollment (3) Rate (4) Property Value (5)

173,560 3.8% 98,359,690,447

172,522 4.1 98,030,298,609

178,117 5.2 101,873,946,111

179,568 6.8 75,944,688,988

182,329 6.2 75,448,531,686

185,313 7.1 74,710,591,399

181,830 4.9 74,182,139,494

184,001 4.9 73,249,553,876

189,608 4.3 73,204,241,519

192,659 4.6 71,895,091,436

Total Assessed Property Value

120,000,000,000 100,000,000,000 80,000,000,000 60,000,000,000 40,000,000,000 20,000,000,000

368 2015 County of Allegheny Comprehensive Annual Financial Report

Demographic & Economic Information

Table XVII

COUNTY OF ALLEGHENY, PENNSYLVANIA Principal Employers Current Year and Nine Years Ago

2015 (1)

Percentage of Total County Employer Employees Employment

University of Pittsburgh Medical Center 43,000 6.29% Highmark Health 22,000 3.22 United States Government 17,347 2.54 Commonwealth of Pennsylvania 12,822 1.88 University of Pittsburgh 12,386 1.81 Giant Eagle Inc. 10,742 1.57 BNY Mellon 7,000 1.02 Allegheny County 6,750 0.99 Wal-Mart Stores Inc. 6,200 0.91 Eat'n Park Hospitality Group 5,614 0.82

Total 143,861 21.05%

Total Employees in County 683,149 (3)

2006 (2)

Percentage of Total County Employer Employees Employment

University of Pittsburgh Medical Center 30,957 5.13% United States Government 19,224 3.19 Commonwealth of Pennsylvania 14,023 2.33 Giant Eagle Inc. 12,220 2.03 West Penn Allegheny Health System 11,462 1.90 University of Pittsburgh 10,714 1.78 Wal-Mart Stores Inc. 9,705 1.61 Allegheny County 6,607 1.10 PNC Financial Services Group, Inc. 6,568 1.09 Mellon Financial Corp. 6,300 1.04

Total 127,780 21.20%

Total Employees in County 603,000 (3)

Source: (1) Pittsburgh Business Times, "2016 Book of Lists" (2) Pittsburgh Business Times, "2007 Book of Lists" (3) Pennsylvania Department of Labor and Industry; Center for Workforce Information & Analysis 2015 County of Allegheny Comprehensive Annual Financial Report 369

Operating Information

Table XVIII

COUNTY OF ALLEGHENY, PENNSYLVANIA Full-Time Equivalent Government Employees by Function/Program Last Ten Years

2015 2014 2013 2012 2011 2010 2009 * 2008 2007 2006 Function/Program

General Government: Chief Executive 3 3 3 3 3 3 4 4 4 3.5 County Council 24.5 25 22 23 19 22 22 23 22 22 County Manager 14.5 13 13 13 14.5 14 14 12 13 13 Budget and Finance 7 9 8 7 6 7 6.5 8 8 8 Law Department 55 57 56 55 54 58 55 56 51 52 Public Defender 120 121.5 121.5 126.5 125 132 132 133 130 131.5 M/W/DBE 6 6 6 6 6 6 7 7 6 6.5 Human Resources 18 19 14 16 17 18 18 17 21 19 Administrative Services 220.5 228 221 261 280 278.5 276.5 271.5 293 322.5 Facilities Management (6) 195 170 167 n/a n/a n/a n/a n/a n/a n/a Controller 87.5 88 84.5 85 93.5 93.5 92 91.5 84.5 87 Medical Examiner 90 91 89 88 95 98 93 94 101 102.5 Court Records (2) (4) (5) 136 135.5 139 141 146 149.5 146 153 n/a n/a Clerk of Courts (2) n/a n/a n/a n/a n/a n/a n/a n/a 57 60 Register of Wills (4) n/a n/a n/a n/a n/a n/a n/a n/a 48.5 49.5 Prothonotary (5) n/a n/a n/a n/a n/a n/a n/a n/a 75 77 District Attorney 213.5 218 220.5 207.5 205 208 203 204 203.5 208.5 Jury Commissioners (1) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Recorder of Deeds (3) n/a n/a n/a n/a n/a n/a n/a n/a 46 46 Real Estate (3) 44.5 42 53 56.5 57.5 61 62 54 n/a n/a Sheriff 191.0 200.5 203.5 188.5 188.5 186 192 189 191 186 Treasurer 72.5 73.5 75 77 79 76.5 78 77 70 68 Court of Common Pleas 1,151.5 1,145.5 1,140 1,156 1,152 1,164 1,161 1,155 1,148 1,128.5 Public Safety: Emergency Management/911 & Fire Academy 305.5 291 274.5 274 276.5 281.5 265.5 262.5 248 246 Jail 633 578 582 544.5 549.5 556.5 606.5 558 530 511 County Police 266 262 251 262 258 265 256 255 282 286 Public Works 208 309 308 413 419 427 424 418 431 447 Health and Welfare: Health 348 349 357 348 356 376 366.5 358 362 357 Human Services: Administration 100.5 103 103 82.5 87 86 89 90.5 92 53 BH/ID/DA 59 59 62 64 62 72 75 70 73 96 Children, Youth and Family Services 537 552 550 543 537 539 499 512 525 538 Office of Community Services/Federal Programs 30 32 33 39 46 48 51 53 54 55 Area Agency on Aging 175.5 180 183 207 204 209 197.5 201 187 194.5 Kane Regional Centers 995.5 1,077.5 1,107.5 1,087.5 1,127.5 1,153 1,174 1,113 1,179.5 1,192 Shuman Juvenile Detention Center 119.5 130.5 139.5 145.5 151 155 146.5 155.5 154.5 151.5 Community Intensive Supervision Program 72.5 73.5 77.5 79 78.5 65 64.5 65.5 64 62.5 Home Detention/Electronic Monitoring 12 12 12 12 12 12 12 12.5 12 13 Institutional Care 2 2 3 3 3 3 3 3 3 3 Culture and Recreation: Parks 242.5 147.5 121.5 107.5 121.5 105.5 74.5 74 73.5 68 Cooperative Extension 2 2 2 2 2 3 3 3 2 3 Economic Development 73 77 77 76 83 85 76 74 73 73 Totals 6,831.5 6,882.5 6,879.5 6,799.5 6,914.5 7,016.5 6,945.5 6,827.5 6,917.5 6,940.5

Source: County payroll records Method: Using 1.0 for each full-time employee, and 0.50 for each part-time and seasonal employee * Equivalents have been reduced for employees not receiving a pay check for the pay period ending 1/2/10.

(1) Jury Commisioners was eliminated as of 12/31/05. (2) The Clerk of Courts was eliminated as of 12/31/07 and became the office of Court Records. (3) Recorder of Deeds was eliminated as of 12/31/07 and became Real Estate. (4) Register of Wills was eliminated as of 12/31/07 and became Court Records. (5) The Prothonotary was eliminated as of 12/31/07 and became Court Records. (6) Facilities Management was established as of 1/1/13. n/a: Information not available 370 2015 County of Allegheny Comprehensive Annual Financial Report

Operating Information

COUNTY OF ALLEGHENY, PENNSYLVANIA Operating Indicators by Function/Program Last Ten Years

Function/program 2015 2014 2013 2012

General Government Autopsies performed (1) 1,450 1,207 1,179 1,170 Cases reported to Medical Examiner (1) 10,078 9,496 9,371 9,087 Deeds recorded (2) 40,430 37,179 37,038 38,231 Mortgages recorded (2) 97,605 92,068 122,338 158,328 Warrants cleared by Sheriff (3) 8,480 8,811 8,142 8,563 Arrears due on non-support warrants cleared (3) $ 9,476,624 12,441,880 13,540,132 13,169,366 Firearm permits issued (3) 18,688 17,082 20,708 15,797 Writs served (3 ) 34,597 33,559 35,236 38,205 Public Safety Inmates housed at the Jail (4) 2,410 2,515 3,009 2,549 Homicide cases investigated (1) 113 113 91 96 Public Works (8) Road maintenance (man hours) 136,282 184,530 96,674 88,239 Asphalt (hot/cold) purchased in road maintenance (tons) (9) 39,264 51,972 23,453 38,460 Winter road maintenance all activities (man hours) 22,280 46,132 26,657 22,749 Number snow/ice agreements w/munis for roads within their limits 30 30 29 29 Miles on snow/ice agreements for roads within other muni limits 95 95 120 117 Cost of snow/ice agreements for County roads within their limits$ 256,293 248,828 309,099 302,135 Tons of snow melting salt purchased 27,635 28,413 18,475 12,493 Cost of snow melting salt purchased $ 1,804,144 1,610,014 1,006,924 686,684 Health and Welfare Annual residents days (5) 359,885 352,292 348,980 358,458 Occupancy percentage (5) 91 86 86 88 Juvenile delinquents housed (average daily population) (6) 56 63 71 80 Culture and Recreation (7) Senior golf permits sold 973 1,040 1,351 1,406 Average daily golf revenue (June through September) $ 7,883 8,196 8,614 8,845 Average daily swimming revenue (June through September) $ 9,249 7,986 6,931 10,318 Average daily park pavilion revenue (June through September) $ 3,214 2,563 2,453 2,408

Sources:(1) Allegheny County Medical Examiner's Office (6) Allegheny County Shuman Center (7) Allegheny County Parks, Recreation and (2) Allegheny County Department of Real Estate Conservation (3) Allegheny County Sheriff (8) Allegheny County Department of Public Works (4) Allegheny County Jail (9) Only asphalt purchased in tons is included. (5) Allegheny County Kane Regional Centers

n/a: Information not available 2015 County of Allegheny Comprehensive Annual Financial Report 371

Operating Information

Table XIX

COUNTY OF ALLEGHENY, PENNSYLVANIA Operating Indicators by Function/Program Last Ten Years

2011 2010 2009 2008 2007 2006

1,188 1,162 1,174 1,130 1,198 1,280 9,013 8,647 8,095 8,074 7,383 6,711 37,318 34,807 35,205 36,904 40,987 43,251 60,117 50,935 54,537 50,891 64,435 71,453 11,257 10,694 12,222 11,499 11,536 12,262 25,517,961 22,467,885 31,380,309 34,086,237 41,798,705 36,810,930 11,558 11,323 14,509 13,093 11,127 7,804 40,936 50,648 53,588 59,595 56,772 52,837

2,588 2,732 2,568 2,598 2,626 2,584 75 109 87 122 100 95

127,289 202,454 205,155 201,619 141,506 208,454 42,433 38,560 34,795 25,235 21,006 49,732 298,031 374,954 128,285 31,852 29,088 21,645 28 28 27 27 28 28 116 119 115 114 117 117 290,395 288,941 274,522 265,286 264,528 224,094 19,562 26,819 18,845 20,663 15,042 6,922 972,510 1,546,830 974,340 639,029 625,921 285,410

371,843 367,454 357,947 364,250 396,074 410,866 91 90 87 89 90 84 95 101 n/a 123 133 130

1,498 1,581 1,765 1,895 1,957 1,906 8,527 9,097 9,880 9,960 10,213 8,893 8,263 8,677 8,244 7,058 6,680 8,531 2,362 2,266 2,311 2,411 2,194 2,277 372 2015 County of Allegheny Comprehensive Annual Financial Report

Operating Information

Table XX

COUNTY OF ALLEGHENY, PENNSYLVANIA Capital Asset Statistics by Function/Program Last Ten Years

Function/program 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

General Government Buildings 5 5 5 5 5 5 5 5 5 5 Square footage (1) 695,832 695,832 695,832 695,832 695,832 695,832 695,832 695,832 695,832 695,832 Sheriff vehicles (2) 66 61 62 68 65 64 63 68 64 65 Medical Examiner vehicles (2) 10 12 9 9 9 11 9 8 10 8 Facilities Management vehicles (7) 46 n/a n/a n/a n/a n/a n/a n/a n/a n/a Other departmental vehicles (2) 174 207 233 200 197 202 203 189 202 167 Public Safety Jails 1 1 1 1 1 1 1 1 1 1 Square footage of Jail (1) 988,000 988,000 988,000 988,000 988,000 988,000 990,000 990,000 990,000 990,000 Number of beds at Jail (5) 3,164 3,164 3,156 3,156 3,156 2,850 2,850 2,850 2,850 2,850 Emergency Management vehicles (2) 92 96 46 26 26 26 25 25 27 24 Police vehicles (2) 105 98 93 91 88 93 93 92 91 94 Public Works (1) Maintenance garages 7 7 7 7 7 8 8 8 8 8 Parking garage* 0 0 0 1 1 1 1 1 1 1 Square footage of garage (1) 0 0 0 150,000 150,000 150,000 150,000 150,000 150,000 150,000 Water storage facility 1 0 0 0 1 1 1 1 1 1 Streets paved (miles) 379 380 380 380 395 395 395 395 395 395 Streets unpaved (miles) 0 0 0 0 10 10 10 10 10 10 Lane miles 812 780 780 780 818 818 818 818 818 818 Bridges (Less than 8 ft in length) 189 187 187 181 181 181 181 181 181 181 Bridges (Between 8 ft. and 20 ft.) 135 135 135 149 149 149 149 149 149 149 Bridges (20 ft. and over) 177 181 181 192 192 192 192 192 192 192 Trail Bridges 47 47 47 n/a n/a n/a n/a n/a n/a n/a Pedestrian Bridges 9 8 8 n/a n/a n/a n/a n/a n/a n/a Vehicles (2) 175 249 170 164 130 129 126 120 131 128 Heavy Equipment (2) 338 464 443 424 430 430 425 432 380 367 Health and Welfare Buildings (2) 9 9 9 9 9 9 9 9 9 9 Square footage (1) 106,891 106,891 106,891 128,119 128,119 128,119 128,119 128,119 128,119 128,119 Number of nursing homes (3) 4 4 4 4 4 4 4 4 4 4 Square footage of nursing homes (1) 728,000 728,000 728,000 728,000 728,000 728,198 728,198 728,198 728,198 728,198 Number of beds (3) 1,344 1,124 1,124 1,344 1,344 1,344 1,344 1,344 1,344 1,344 Square footage of Shuman Center (1) 112,928 112,928 112,928 112,928 112,928 112,928 112,928 112,928 112,928 112,928 Number of beds 130 130 130 130 130 130 130 130 130 130 Culture and Recreation (4) Memorial Hall 1 1 1 1 1 1 1 1 1 1 Amphitheater 1 1 1 1 1 1 1 1 1 1 Hartwood Acres 1 1 1 1 1 1 1 1 1 1 Number of parks 9 9 9 9 9 9 9 9 9 9 Number of acres 12,044 12,014 12,014 12,014 12,014 12,014 12,014 12,014 11,928 11,928 Number of tennis courts 40 41 41 41 41 41 41 41 41 41 Number of golf courses 2 3 3 3 3 3 3 3 3 3 Number of swimming pools 4 4 4 4 4 4 4 4 4 4 Number of ice skating rinks 2 2 2 2 2 2 2 2 2 2 Number of ball fields 41 41 41 41 41 41 41 41 41 41 Number of ski facilities 1 1 1 1 1 1 1 1 1 1 Number of shelters 210 220 248 248 248 248 248 248 248 248 Number of groves** 0 0 0 30 30 30 30 30 30 30 Number of rental buildings 24 26 26 26 27 27 27 27 27 27 Number of vehicles (6) 71 n/a n/a n/a n/a n/a n/a n/a n/a n/a Number of non-sheltered groves** 0 56 56 32 32 32 32 32 32 32

Sources: (1) Allegheny County Department of Facilities Management (*The parking garage is being demolished.) (2) Allegheny County Controller's Office (3) Allegheny County Kane Regional Centers (4) Allegheny County Department of Parks (** All groves are referred to as shelters) (5) Allegheny County Jail (6) Staring 2015, separate Parks vehicles out of Public works (7) Staring 2015, separate Facilities Management vehicles out of Other Departmental n/a: Information not available 2015 County of Allegheny Comprehensive Annual Financial Report 373

Component Unit (ACAA) Information

Table XXI

COUNTY OF ALLEGHENY, PENNSYLVANIA Revenue Bond Coverage Airport Authority Revenue Bonds and Notes Last Ten Years

Debt Requirements Net Revenues Fiscal Gross/Pledged Operating Available for Debt Year Revenues Expenses Debt Service Service Prefunding Total Coverage

2015 $168,253,476 92,689,139 75,564,337 64,571,081 300,916 64,871,997 1.2

2014 166,536,540 90,140,578 76,395,962 65,636,518 10,759,444 76,395,962 0.9

2013 163,669,670 87,394,719 76,274,951 66,004,233 10,270,718 76,274,951 0.9

2012 157,615,266 84,903,379 72,711,887 62,094,167 165,054 62,259,221 1.2

2011 154,787,749 83,275,363 71,512,386 62,125,185 410,224 62,535,409 1.1

2010 153,363,122 83,291,562 70,071,560 61,116,900 339,160 61,456,060 1.1

2009 152,042,522 81,135,552 70,906,970 62,621,553 (41,077) 62,580,476 1.1

2008 145,446,089 81,692,639 63,753,450 55,218,134 (150,094) 55,068,040 1.2

2007 156,555,081 88,972,828 67,582,253 59,725,354 301,911 60,027,265 1.1 (1)

2006 143,082,409 73,073,636 70,008,773 61,509,363 811,656 62,321,019 1.1 (2)

(1) On October 3, 2007, Airport Revenue Bonds were issued in the amount of $153,820,000. The bonds consist of Series A and B refunding bonds, with maturity dates ranging thru 2016 and 2019. The proceeds were used to refund the 1997 bonds and pay the bond issuance costs.

(2) On November 30, 2006, the 2001 and 2002 Refunding Bonds were remarketed for the purpose of changing the nature of the bonds from variable rate to fixed rate. 374 2015 County of Allegheny Comprehensive Annual Financial Report

Component Unit (ACAA) Information

Table XXII

COUNTY OF ALLEGHENY, PENNSYLVANIA Pittsburgh International Airport Passenger Volume Trend Last Ten Years

Percentage Passenger Increase/(Decrease) Year Volume (1) Over Prior Year

2015 ...... 8,128,187 1.6

2014 ...... 7,998,970 1.5

2013 ...... 7,884,170 (2.0)

2012 ...... 8,041,357 (3.1)

2011 ...... 8,300,310 1.3

2010 ...... 8,195,359 2.0

2009 ...... 8,031,175 (7.8)

2008 ...... 8,710,291 (11.3)

2007 ...... 9,822,588 (1.6)

2006 ...... 9,987,310 (4.7)

Source: Allegheny County Airport Authority

(1) Includes both on and off passenger volume. 2015 County of Allegheny Comprehensive Annual Financial Report 375

Miscellaneous Information

Table XXIII

COUNTY OF ALLEGHENY, PENNSYLVANIA Salaries of Principal Officials December 31, 2015

Salary

CHIEF EXECUTIVE

Rich Fitzgerald $ 90,000

CONTROLLER

Chelsa Wagner 99,237

TREASURER

John K. Weinstein 99,237

DISTRICT ATTORNEY

Stephen A. Zappala, Jr. 175,572

SHERIFF

William P. Mullen, Jr. 99,237

County Manager - William D. McKain, CPA 146,997 County Solicitor - Andrew F. Szefi 116,134 Director, Budget & Finance - Mary Soroka 112,161 Director, Human Services - Marc K. Cherna 168,599 Director, Public Works - Stephen G. Shanley 106,974 Director, Administrative Services - Jerry Tyskiewicz 106,974 Superintendent, County Police - Charles W. Moffatt 113,090 Director, Dept of Economic Development - Robert D. Hurley 132,600 Executive Director, Kane Regional Centers - Dennis R. Biondo 104,876 Director, Human Resources - Laura Zaspel 106,974 Director, Shuman Center - Earl F. Hill 106,974 Public Defender - Elliot C. Howsie 106,974 Director, Department of Parks - Andrew G. Baechle 106,974 Medical Examiner - Karl E. Williams, MD 196,065 Director, MWDBE - Ruth Byrd-Smith 106,974 Director, Facilities Management - Douglas A. Nolfi 106,974 Director, Health - Karen A. Hacker 213,178 Warden, Jail - Orlando Harper 106,974 Deputy Director, Court Records - Michael J. MCGeever 88,867 376 2015 County of Allegheny Comprehensive Annual Financial Report

Miscellaneous Information

Table XXIV

COUNTY OF ALLEGHENY, PENNSYLVANIA County Council Members' Expenditure Reimbursements December 31, 2015

Expenditure Council District Council Member Reimbursements (1)

Council District at Large #1 John P. DeFazio $ 2,111

Council District #1 Thomas Baker 1,132

Council District #2 Jan Rea 764

Council District #3 Edward Kress 2,840

Council District #4 Michael J. Finnerty 3,000

Council District #5 Sue Means 1,526

Council District #6 John F. Palmiere 3,000

Council District #7 Nicholas Futules 2,977

Council District #8 Charles J. Martoni, Ph.D. 2,830

Council District #9 Robert J. Macey 2,776

Council District #10 William R. Robinson 2,931

Council District #11 Terri Klein* 25

Council District #12 James Ellenbogen 2,400

Council District #13 Amanda Green Hawkins 700

Total $ 29,012

(1) Per the Charter, County Council members are allowed a maximum of $3,000 per year in reimbursable expenditures.

* Appointed to fill vacancy created by the death of Barbara Daly Danko. 2015 County of Allegheny Comprehensive Annual Financial Report 377

Miscellaneous Information

Table XXV (Page 1 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Primary Government Functions December 31, 2015

Chief Executive Exercises all the powers and performs all of the duties enumerated in the Home Rule Charter and the Administrative Code.

County Manager: Maintains management control of daily operations as chief operating officer of the County. Oversees cluster departments and all other Executive departments and divisions. Provides the recordation function of the Chief Clerk.

Communications/Information Center Serves as the center for information and services for County employees and the public.

Budget and Finance Responsible for the preparation, analysis and administration of the County's annual operating, special revenue, agency fund and capital budgets in addition to the issuance of all debt within legal limits. Monitors revenues and expenditures. Provides budget data and analysis for the County Manager.

County Solicitor: The County Solicitor is the chief legal officer for the County and oversees all in-house and outside legal services.

Law Provides legal opinions to the Chief Executive and legal advices to all County departments and agencies.

Law Library Monitors law library activities at Duquesne University to ensure compliance with terms of the management service agreement.

Human Resources Develops and administers centralized personnel policies and procedures under the direction of the County Manager. Includes fair process for recruiting, hiring and promoting County police officers, deputy sheriffs, corrections officers and other civil service positions.

Minority/Women and Disadvantaged Monitors County bid documents, contracts and leases for adherence Business Enterprise to affirmative action regulations and identifies opportunities for job creation and entrepreneurial development within the minority population of the County.

Public Defender Provides legal counsel for indigent defendants and for respondents in civil and mental health commitment cases.

Administrative Services Department: Provides necessary, cost-effective services to all County employees, departments, row offices and Courts as well as to the public and external organizations in order to facilitate the operations of the County government. 378 2015 County of Allegheny Comprehensive Annual Financial Report

Miscellaneous Information

Table XXV (Page 2 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Primary Government Functions December 31, 2015

Management Information Services Provides computer programming, data processing and telephone services to County departments, row offices and related agencies. Assists in the design and implementation of management information systems.

Purchasing & Supplies Responsible for the procurement of materials, commodities and supplies required by all of the County agencies.

Elections Conducts elections for all governmental levels and provides information for voters and candidates. Maintains and updates the records of registered County voters.

Veterans' Services Provides information on veterans' benefits and administers County, State and federal laws that relate to the burial of deceased service personnel and their spouses.

Property Assessments Assesses real property for County, local and school taxation, hears assessment appeals from taxpayers, updates and maintains the County real estate property files and maps and prepares tax blotters for each municipality and all school districts.

Internal Services Division This division's responsibility includes the mailroom, graphics and print shop services provided to County departments.

Weights and Measures Inspects and monitors gas pumps, scales, meters and scanners.

Real Estate Commissioned by statute to record and preserve documents. The office is the repository of all recordable documents. Collects deed transfer taxes and filing fees.

Jail Detains and supervises persons awaiting trial, accused of violation of probation or parole, or serving given sentences.

Police Bureau: Provides security at all County facilities and offers assistance to municipal police departments and housing authorities.

Police Academy Trains local police and security guards.

Emergency Services: Controls emergency management services throughout Allegheny County and responds in the time of natural or man-made disasters.

Fire Academy Assists municipalities with training of firefighters.

911 Administration Oversees the countywide 911 network.

Fire Marshal Investigates all fires of suspicious origin to determine cause. 2015 County of Allegheny Comprehensive Annual Financial Report 379

Miscellaneous Information

Table XXV (Page 3 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Primary Government Functions December 31, 2015

Public Works Department: Designs, constructs, rehabilitates and maintains safe accessible roads, bridges, parks and buildings. Also serves as custodian of all County infrastructure.

Engineering Division Coordinates the design, construction and inspection of County buildings, roads, bridges and parks. Provides engineering and technical services related to construction projects.

Maintenance Repairs and maintains County roads and bridges. Also provides special services and resources to other County departments, municipalities and agencies to ensure the health, safety and welfare of all citizens.

Fleet Management Oversees transportation services to all areas of County government.

Parks, Recreation & Conservation: Operates and maintains the County's approximately 12,000 acre park system, including golf courses, swimming pools, skating rinks, tennis courts and other recreational activities.

Special Events Coordinates special events for the public.

Human Services Department: Coordinates the delivery of human services in Allegheny County to maximize the receipt of State and federal funds while providing seamless services to consumers and client families.

Aging Functions as the local Area Agency on Aging. Provides a coordinated system of social services to the elderly of Allegheny County, including senior citizens' centers, housing assistance, legal assistance and the Meals on Wheels Program.

Children, Youth and Family Services Provides services for abused and dependent children and their families through counseling, emergency shelters, foster homes, group homes and institutions.

Community Services Provides a coordinated system of employment and training services for unemployed and disadvantaged County residents. Administers programs providing direct and indirect services to individuals and citizen groups through two principal programs - Community Action and Head Start.

Behavioral Health/Intellectual Administers an integrated, community-based service delivery system Disability/Drug & Alcohol that provides treatment, counseling and housing to County residents with mental disabilities or drug and alcohol addiction. 380 2015 County of Allegheny Comprehensive Annual Financial Report

Miscellaneous Information

Table XXV (Page 4 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Primary Government Functions December 31, 2015

Health Department Protects and improves public health through a variety of programs which include pollution monitoring, food poison prevention, rodent control, water testing, dental clinics, solid waste management, recycling, health education, and maternal and infant care.

Medical Examiner Investigates the circumstance, cause and manner of sudden and unexpected, medically unattended, suspicious and violent deaths. Also provides laboratory services, technical assistance and consultation to local and County police departments, municipal officials, Health Department and other County agencies.

Shuman Detention Center Provides secure, temporary shelter to delinquent youths awaiting final case disposition.

Kane Regional Health Centers Offers skilled nursing, long-term care and rehabilitation to the chronically ill and elderly who have limited financial resources.

Economic Development Department Integrates and coordinates County resources with other local governments and private and voluntary agencies to stimulate and influence municipal and economic development within the County and region.

Court Records: Maintains various courts records.

Criminal Officer of the Court of Common Pleas, is responsible for the records, books and dockets of the Criminal Division of the Court of Common Pleas. This office also collects fines and costs owed to Allegheny County, the Commonwealth of Pennsylvania or local municipalities.

Civil/Family Acts as the repository for court records concerning the Civil, and Family (Adult and Juvenile) Divisions of the Court of Common Pleas. Also maintains various indices and tax lien assessments.

Wills/Orphans' Court Charged with probating wills and filing all documents necessary to complete the administration of a descendant's estate. The Orphans' Court issues marriage licenses, maintains all marriage records and records all Orphans' Court cases, civil commitments and adoption records.

Facilities Management Its purpose is to develop and manage a comprehensive plan for County buildings and facilities. The department will maintain and upgrade County buildings and provide services to the parks. 2015 County of Allegheny Comprehensive Annual Financial Report 381

Miscellaneous Information

Table XXV (Page 5 of 5)

COUNTY OF ALLEGHENY, PENNSYLVANIA Primary Government Functions December 31, 2015

County Council Consists of 15 independently elected members vested with the legislative power of the County. Council approves and amends legislation proposed by the Chief Executive. Also responsible for the levy of taxes, fees and service charges; and the passage of balanced annual budgets.

Controller The chief elected fiscal officer of Allegheny County. Provides general supervision and control of the County's fiscal activities. Oversees the accounting, auditing, and payroll operations. Operates the JDE Service Center for County and City departments.

District Attorney Responsible for the prosecution of all Allegheny County criminal cases and the ancillary services necessary to insure effective, just prosecution.

Sheriff Authorized as the chief law enforcement officer of the Courts. Serves all writs and injunctions issued by the Courts. Provides transportation of prisoners to and from the Court and place of confinement.

Treasurer Responsible for all receipts and disbursements of County monies, including property taxes. This independently elected official is the principal investment officer for the County.

Court of Common Pleas Is a court of general and unlimited jurisdiction. The Orphans' Court, the Civil and Criminal Divisions and the Family Division comprise the Court of Common Pleas. The Orphans' Court has jurisdiction over the estates of deceased persons, minors and others involved in trusts. It also acts on adoptions, incompetency matters and Mental Health Procedures Act commitments. The Civil Division presides over all noncriminal cases dealing with law and equity. The Criminal Division presides over all criminal cases committed in Allegheny County. The Family Division has jurisdiction in family cases involving divorce, nonsupport and custody matters. It also has jurisdiction in cases involving delinquent, dependent and neglected children under 18 years of age. In addition to these divisions, the Court has a Minor Judiciary Section, an Adult Probation Office, a Bail Bond Agency, a Behavior Clinic, Jury Management and a Board of Viewers. 382 2015 County of Allegheny Comprehensive Annual Financial Report

Acronyms

2015 County of Allegheny Comprehensive Annual Financial Report 383

Acronyms

Allegheny County CAFR Acronyms

County Acronyms can be confusing so we've provided a listing of acronyms used in the CAFR. This list is ordered alphabetically by acronym.

AAL - Actuarial Accrued Liability ACA - Affordable Care Act ACAA - Allegheny County Airport Authority ACIDA - Allegheny County Industrial Development Authority Act - Pennsylvania State Act 141 of 1998 ACTA - Airport Corridor Transportation Association AGC - Allegheny County Airport Agreement - Master Financing Agreement AHCI - Allegheny HealthChoices Inc. ALCOSAN - Allegheny County Sanitary Authority ALGA - Association of Local Government Auditors AOA - Airport Operating Agreement AOC - Annual OPEB Cost ARC - Annual required contribution ATU - Amalgamated Transit Union BEDI - Brownfield Economic Development Improvement BH/ID/DA - Behavior Health/Intellectual Disability/Drug & Alcohol BIOS - Business in our Sites Program BRT - Bus Rapid Transit CIP - Capital Improvement Plan C.I.S.P. - Community Intensive Supervision Program City, the - City of Pittsburgh CAFR - Comprehensive Annual Financial Report CCAC - Community College of Allegheny County CFC - Customer Facility Charges Charter, the - Home Rule charter CIP - Capital Improvement Plan CNX - CNX Gas Company, LLC County, the - County of Allegheny DEP - Pennsylvania Department of Environmental Protection EDF - Economic Development Fund EPA - Environmental Protection Agency FAA - Federal Aviation Administration FDA - Forward Delivery Agreements “Foundation”, the - Educational Foundation of CCAC FTA - Federal Transit Administration GAAP - Generally Accepted Accounting Principles GASB - Government Accounting Standards Board GFOA - Government Finance Officers Association of the United States and Canada AHILP - Allegheny County Home Improvement Loan Program HCI - Heritage Community Initiatives HUD - US Department of Housing and Urban Development IBEW Plan - International Brotherhood of Electrical Workers JDE - JD Edwards Fiancial Management System 384 2015 County of Allegheny Comprehensive Annual Financial Report

Acronyms

LSA, gaming - gaming local share assessment M/W/DBE - Minority/Women/Disadvantaged Business Enterprise MD&A - Management’s Discussion and Analysis Memorial Hall - Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc. OPEB - Other Post Employment Benefits other governmental funds - Transportation, Liquid Fuel and Debt Service PAFR - Popular Annual Financial Report Parks Foundation - Allegheny County Parks Foundation PAT - Port Authority of Allegheny County PDE - Pennsylvania Department of Education PFC - Passenger Facility Charges PIT - Pittsburgh International Airport PLGIT - Pennsylvania Local Government Investment Trust PSERS - Pennsylvania Public School Employees' Retirement System PTAF - Pennsylvania Public Transportation Assistance Fund PTTF - Public Transportation Trust Fund PUC - Paid Up Contributions RAAC - Redevelopment Authority of Allegheny County RAD tax, the - Allegheny Regional Asset District Tax Region, the - seven-county area including Allegheny, Armstrong, Beaver, Butler, Fayette, Washington, and Westmoreland Counties Retirement System - Allegheny County Retirement System Revenue Bonds, the - ACAA revenue bond obligations Revolving Loan - Revolving Credit Loan Agreement SEIU - Service Employees International Union SERS - Pennsylvania State Employees' Retirement System SPSBA - State Public School Building Authority TANF - Temporary Assistance to Needy Families TIAA-CREF - Teachers Insurance and Annuity Association – College Retirement and Equity Fund TIF - Tax Increment Financing TIF Bonds - Tax Increment Financing Bonds UAAL - Unfunded Actuarial Accrued Liability NOTES [THIS PAGE INTENTIONALLY LEFT BLANK]

COUNTY OF ALLEGHENY PENNSYLVANIA • GENERAL OBLIGATION REFUNDING BONDS, SERIES C-75 AND GENERAL OBLIGATION BONDS, SERIES C-76