OFFICIAL STATEMENT $9,180,000 COUNTY of CUYAHOGA, OHIO Sales Tax Revenue Bonds, Series 2015A (Public Square Project)

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Ratings: Moody's Aa1 Standard & Poor's: AAA NEW ISSUE BOOK ENTRY FORM ONLY See "RATINGS" herein In the opinion of Squire Patton Boggs (US) LLP, Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants and the accuracy of certain representations, interest on the Series 2015A Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations and (ii) interest on, and any profit made on the sale, exchange or other disposition of, the Series 2015A Bonds, are exempt from all Ohio state and local taxation, except the estate tax, the domestic insurance company tax, the dealers in intangibles tax, the tax levied on the basis of the total equity capital of financial institutions, and the net worth base of the corporate franchise tax. Interest on the Series 2015A Bonds may be subject to certain federal taxes imposed only on certain corporations, including the corporate alternative minimum tax on a portion of that interest. (For a more complete discussion of tax aspects, see "TAX MATTERS")

OFFICIAL STATEMENT $9,180,000 COUNTY OF CUYAHOGA, OHIO Sales Tax Revenue Bonds, Series 2015A (Public Square Project)

Dated: Date of Delivery Due: December 1, as shown on the inside cover herein THE SERIES 2015A BONDS ARE SPECIAL OBLIGATIONS OF THE COUNTY SECURED BY THE COUNTY'S SALES TAX AND DO NOT AND SHALL NOT REPRESENT OR CONSTITUTE A GENERAL OBLIGATION, DEBT OR PLEDGE OF THE FAITH AND CREDIT OF THE COUNTY, THE STATE OF OHIO OR ANY POLITICAL SUBDIVISION THEREOF. Terms used herein with initial capitalization where the rules of grammar would not otherwise so require and not defined have the meanings given to them under "DEFINITIONS" or "APPENDIX B – SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE" herein. Principal of the Series 2015A Bonds will be payable at the main office of The Huntington National Bank, Cleveland, Ohio, as trustee, registrar, paying agent and transfer agent (the "Trustee") for the Series 2015A Bonds. Interest thereon will be payable semi-annually on June 1 and December 1 of each year beginning June 1, 2016, to the person whose name appears as the registered holder thereof on the Series 2015A Bond registration records on the record date (15th day of the calendar month next preceding an interest payment date), by check mailed to such registered holder at his address as it appears on such registration records, by such registrar, paying agent and transfer agent without deduction for exchange, collection or service charges. The Series 2015A Bonds will be issuable as fully registered bonds without coupons in the denominations set forth herein. The Series 2015A Bonds will be issuable under a book entry method and registered in the name of The Depository Trust Company ("DTC") or its nominee. There will be no physical delivery of the Series 2015A Bonds to the ultimate purchasers. The Underwriter has satisfied the requirements of DTC for the Series 2015A Bonds to be eligible for its book entry services. See "BOOK ENTRY SYSTEM" herein. The Series 2015A Bonds maturing on and after December 1, 2024 are subject to optional redemption, and the Series 2015A Bonds maturing December 1, 2033 will be subject to mandatory sinking fund redemption prior to stated maturity as set forth herein. See "THE SERIES 2015A BONDS – Redemption Provisions" herein. The Series 2015A Bonds are offered when, as and if issued and received by the Underwriter, subject to prior sale and to withdrawal or modification of the offer without notice. Certain legal matters relating to the issuance of the Series 2015A Bonds are subject to the approving opinion of Squire Patton Boggs (US) LLP, Bond Counsel. Certain legal matters will be passed upon for the Underwriter by its counsel, Calfee, Halter & Griswold LLP. See "LEGAL MATTERS" and "TAX MATTERS" herein. H.J. Umbaugh & Associates has acted as Municipal Advisor to the County in connection with the issuance of the Series 2015A Bonds. (See "MUNICIPAL ADVISOR" herein.) This cover page contains certain information for general reference only. It is not a summary of the provisions of the Series 2015A Bonds. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. This Official Statement has been prepared by the County of Cuyahoga, Ohio in connection with the original offering for sale by it of the Series 2015A Bonds. It is expected that delivery of the Series 2015A Bonds in definitive form will be made through DTC on or about December 14, 2015. The date of this Official Statement is December 4, 2015, and the information herein speaks only as of that date.

$9,180,000 COUNTY OF CUYAHOGA, OHIO Tax Revenue Bonds, Series 2015A (Public Square Project)

Serial Bonds

Maturity Principal Interest Rate Yield Price CUSIP No. Amount

12/1/2018 $460,000 1.50% 0.960% 101.574 232287 BB7 12/1/2019 470,000 4.000 1.170 110.930 232287 BC5 12/1/2020 485,000 2.000 1.390 102.915 232287 BD3 12/1/2021 495,000 2.000 1.560 102.496 232287 BE1 12/1/2022 505,000 2.000 1.730 101.763 232287 BF8 12/1/2023 515,000 2.000 1.900 100.735 232287 BG6 12/1/2024 525,000 4.000 2.050 114.260* 232287 BH4 12/1/2025 550,000 2.500 2.270 101.666* 232287 BJ0 12/1/2026 560,000 4.000 2.370 111.765* 232287 BK7 12/1/2027 585,000 4.000 2.550 110.390* 232287 BL5 12/1/2028 610,000 4.000 2.680 109.408* 232287 BM3 12/1/2029 630,000 4.000 2.830 108.289* 232287 BN1 12/1/2030 655,000 4.000 2.910 107.697* 232287 BP6 12/1/2031 685,000 4.000 2.960 107.329* 232287 BQ4 12/1/2032 145,000 4.000 3.010 106.963* 232287 BR2

$1,305,000 3.125% Term Bond Maturing December 1, 2033@ 98.308 (Yield 3.250%) CUSIP No. 232287 BS0

______* Price to December 1, 2023 call date

$9,180,000 COUNTY OF CUYAHOGA, OHIO Sales Tax Revenue Bonds, Series 2015A (Public Square Project)

County Council

Dan Brady Pernel Jones, Jr. President Vice-President

Shontel Brown Yvonne M. Conwell Michael J. Gallagher Member Member Member

Chuck Germana Dave Greenspan Anthony T. Hairston Member Member Member

Dale Miller Jack Schron Sunny M. Simon Member Member Member

County Administration

Armond Budish County Executive

Dennis G. Kennedy, CPA County Fiscal Officer

Robert J. Triozzi, Esq. Director of Law

Professional Services

Stifel, Nicolaus & Company, Incorporated Underwriter

Squire Patton Boggs (US) LLP Bond Counsel

H.J. Umbaugh & Associates Municipal Advisor

The Huntington National Bank Trustee

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REGARDING THIS OFFICIAL STATEMENT

This Official Statement does not constitute an offering of any security other than the original offering of the Series 2015A Bonds of the County of Cuyahoga, Ohio (the "County") identified on the cover hereof. No person has been authorized by the County to give any information or to make any representations, 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 given or authorized by the County. Statements contained in this Official Statement that involve estimates, forecasts, or matters of opinion, whether or not expressly described herein, are intended solely as such and are not to be construed as representations of facts.

The information set forth herein has been obtained from the County and other sources that are believed to be reliable for purposes of this Official Statement. This Official Statement contains, in part, estimates and matters of opinion that are not intended as statements of fact, and no representation is made as to the correctness of such estimates and opinions or that they will be realized. The information and expressions of opinions 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 since the date hereof.

This Official Statement contains statements that the County believes may be "forward-looking statements." Words such as "plan," "estimate," "project," "budget," "anticipate," "expect," "intend," "believe" and similar terms are intended to identify forward-looking statements. The achievement of results or other expectations expressed or implied by such forward-looking statements involves known and unknown risks, uncertainties and other factors that are difficult to predict, may be beyond the County's control and could cause actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. The County undertakes no obligation, and does not plan, to issue any updates or revisions to such forward-looking statements.

CUSIP data on the inside cover page hereof has been provided by Standard & Poor's CUSIP Service Bureau, a division of the McGraw-Hill Companies, Inc. The CUSIP data is being provided solely for the convenience of the owners of the Series 2015A Bonds only at the time of issuance of the Series 2015A Bonds, and the County does not make any representation with respect to such data or undertake any responsibility for its accuracy now or at any time in the future. The CUSIP data is subject to being changed after the issuance of the Series 2015A Bonds as a result of procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of the Series 2015A Bonds.

Certain information in this Official Statement is attributed to the Ohio Municipal Advisory Council ("OMAC"). OMAC compiles information from official and other sources. OMAC believes the information it compiles is accurate and reliable, but OMAC does not independently confirm or verify the information and does not guarantee its accuracy. OMAC has not reviewed this Official Statement to confirm that the information attributed to it is information provided by OMAC or for any other purpose.

Certain information located at websites referred to herein has been prepared by the respective entities responsible for maintaining such websites. The County takes no responsibility for the continued accuracy of any internet address or the accuracy, completeness, or timeliness of any information posted at any such address. In the absence of an express statement to the contrary, none of such information is incorporated herein by reference.

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The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

UPON ISSUANCE, THE SERIES 2015A BONDS WILL NOT BE REGISTERED BY THE COUNTY UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW OF ANY STATE, AND WILL NOT BE LISTED ON ANY STOCK OR OTHER SECURITIES EXCHANGE. THE SERIES 2015A BONDS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS ANY OTHER FEDERAL, STATE, MUNICIPAL OR OTHER GOVERNMENTAL ENTITY OR AGENCY, EXCEPT THE COUNTY, PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT OR APPROVED THE SERIES 2015A BONDS FOR SALE. THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY, AND THERE SHALL NOT BE ANY SALE OF, THE SERIES 2015A BONDS BY ANY PERSON IN ANY JURISDICTION IN WHICH IT IS UNLAWFUL TO MAKE SUCH OFFER, SOLICITATION OR SALE.

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 2015A BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE SERIES 2015A BONDS TO CERTAIN DEALERS, DEALER BANKS AND BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICE STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICE MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.

INVESTMENT CONSIDERATIONS

General

The Series 2015A Bonds, like all obligations of state and local governments, are subject to changes in value due to changes in the condition of the market for tax-exempt obligations or changes in the financial position of the County.

It is possible under certain market conditions, or if the financial condition of the County should change, that the market price of the Series 2015A Bonds could be adversely affected.

With regard to the risk involved in a loss of the exclusion from gross income for purposes of federal income taxation of interest payable on the Series 2015A Bonds, see "TAX MATTERS" herein. With regard to the risk involved in a downward revision or withdrawal of the rating for the Series 2015A Bonds shown on the cover hereof, see "RATINGS" herein.

Prospective purchasers of the Series 2015A Bonds should consult their own tax advisors prior to any purchase of the Series 2015A Bonds as to the impact of the Internal Revenue Code of 1986, as amended, upon their acquisition, holding or disposition of the Series 2015A Bonds.

BOND ISSUE SUMMARY

The information contained in this Bond Issue Summary is qualified in its entirety by the entire Official Statement, which should be reviewed in its entirety by potential investors.

Issuer: County of Cuyahoga, Ohio Issue: $9,180,000 Sales Tax Revenue Bonds, Series 2015A (Public Square Project) Dated Date: Date of Delivery Interest Payment Dates: Each June 1 and December 1, beginning June 1, 2016 Principal Payment Dates: December 1, 2018 through December 1, 2032, inclusive and December 1, 2033 Redemption: The Series 2015A Bonds maturing on December 1, 2033 are subject to mandatory sinking fund redemption prior to stated maturity. See "THE SERIES 2015A BONDS – Redemption Provisions – Mandatory Sinking Fund Redemption" herein. The Series 2015A Bonds maturing on and after December 1, 2024 are subject to redemption at the option of the County, either in whole or in part, in such order of maturity as the County shall determine, on any date on or after December 1, 2023, at a redemption price equal to 100% of the principal amount redeemed plus, in each case, accrued interest to the date fixed for redemption. See "THE SERIES 2015A BONDS – Redemption Provisions – Optional Redemption" herein. Purpose: The Series 2015A Bonds are being issued for the purpose of (i) constructing, reconstructing, refurbishing, renovating and improving permanent improvements to publicly owned park space known as Public Square, together with all necessary appurtenances and work incidental thereto, (ii) paying capitalized interest on the Series 2015A Bonds and (iii) paying expenses incurred in connection with the issuance of the Series 2015A Bonds. See "THE SERIES 2015A BONDS – Authorization and Purpose" herein. Security: The Series 2015A Bonds will be special obligations of the County secured by a pledge of the County Sales Tax Receipts (as defined herein). Neither the general credit of the County, nor that of the State of Ohio or of any political subdivision thereof, is pledged to the payment of principal of, or premium, if any, or interest on the Series 2015A Bonds. The Series 2015A Bonds are not secured by the full faith and credit of the County or by any revenues of the County other than the proceeds of the sales tax. In addition, the Series 2015A Bonds will be secured by a pledge of the funds on deposit pursuant to the Indenture in the Series 2015A Service Payments Fund and the Series 2015A Public Improvement Fund (which funds shall not secure any other Bonds outstanding under the Indenture). See “SECURITY FOR AND SOURCES OF PAYMENT OF THE SERIES 2015A BONDS.” Credit Rating: The County has applied for a rating on the Series 2015A Bonds from Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a division of The McGraw Hill Companies, Inc., which have rated the Series 2015A Bonds "Aa1" and "AAA", respectively. See "RATINGS" herein.

Tax Matters: In the opinion of Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants and the accuracy of certain representations, interest on the Series 2015A Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations and (ii) interest on, and any profit made on the sale, exchange or other disposition of, the Series 2015A Bonds, are exempt from all Ohio state and local taxation, except the estate tax, the domestic insurance company tax, the dealers in intangibles tax, the tax levied on the basis of the total equity capital of financial institutions, and the net worth base of the corporate franchise tax. Interest on the Series 2015A Bonds may be subject to certain federal taxes imposed only on certain corporations, including the corporate alternative minimum tax on a portion of that interest. See "TAX MATTERS" herein. Bank Qualification: The County has not designated the Series 2015A Bonds as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. Bond Counsel: Squire Patton Boggs (US) LLP Trustee: The Huntington National Bank Underwriter: Stifel, Nicolaus & Company, Incorporated Underwriter's Counsel: Calfee, Halter & Griswold LLP Municipal Advisor: H.J. Umbaugh & Associates Book Entry The Series 2015A Bonds are being issued as fully registered Bonds in book entry form and System: book entry interests therein will be available for purchase in amounts of $5,000 and integral multiples thereof. Owners of book entry interests will not receive physical delivery of Bond certificates. The Depository Trust Company or its nominee will receive all payments with respect to the Series 2015A Bonds from the Bond Registrar. The Depository Trust Company is required by its rules and procedures to remit such payments to its participants for subsequent disbursement to owners of the book entry interests. Delivery and It is expected that delivery of the Series 2015A Bonds in definitive form will be made Payment: through DTC on or about December 14, 2015. The Series 2015A Bonds will be released to the Underwriter against payment in federal funds. County Official: Questions concerning the Official Statement should be directed to Dennis G. Kennedy, County Fiscal Officer, 2079 East 9th St., Cleveland, Ohio 43040. Telephone: (216) 443- 8191.

TABLE OF CONTENTS Page No.

REGARDING THIS OFFICIAL STATEMENT ...... iii INVESTMENT CONSIDERATIONS ...... iv BOND ISSUE SUMMARY ...... v INTRODUCTORY STATEMENT ...... 1 DEFINITIONS ...... 2 THE SERIES 2015A BONDS ...... 4 Authorization and Purpose ...... 4 Form and Terms ...... 4 Redemption Provisions ...... 4 ESTIMATED SOURCES AND USES OF FUNDS ...... 6 SECURITY FOR AND SOURCES OF PAYMENT OF THE SERIES 2015A BONDS ...... 6 County Sales Tax ...... 6 County Sales Tax Bonds ...... 7 Service Payments and Series 2015A Service Payments Fund ...... 8 Public Improvement Fund ...... 8 Application of Revenues; Payment of Bond Service Charges ...... 9 Series 2014 Bonds; Issuance of Additional Bonds ...... 11 UNDERWRITING ...... 11 MUNICIPAL ADVISOR ...... 11 Municipal Advisor Registration ...... 12 Other Financial Industry Activities and Affiliations ...... 12 RATINGS ...... 12 LITIGATION ...... 13 LEGAL MATTERS ...... 13 TAX MATTERS ...... 13 Risk of Future Legislative Changes and/or Court Decisions ...... 15 Original Issue Discount and Original Issue Premium ...... 16 BOOK ENTRY SYSTEM ...... 16 Revision of Book Entry System - Replacement Bonds ...... 18 TRANSCRIPT AND CLOSING DOCUMENTS ...... 19 CONTINUING DISCLOSURE ...... 19 CONCLUDING STATEMENT ...... 20 APPENDIX A SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE ...... A-1 APPENDIX B THE COUNTY OF CUYAHOGA, OHIO ...... B-1 ORGANIZATION AND MAJOR OFFICES ...... B-2 Government Structure Prior to January 1, 2011 ...... B-2 Government Structure Effective January 1, 2011 ...... B-2 County Executive ...... B-3 County Council ...... B-4 County Budget Commission ...... B-4 County Department of Development ...... B-4 County Audit Committee ...... B-4 County Personnel Review Commission ...... B-4 Financial Management ...... B-5 Management of County Facilities ...... B-5 Administration ...... B-5 General Government ...... B-6 Employees ...... B-6

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Pension Obligations ...... B-7 COUNTY SERVICES AND RESPONSIBILITIES ...... B-7 Public Assistance and Social Services ...... B-7 Health ...... B-9 Administration of Justice ...... B-10 Arts and Culture ...... B-11 County Facilities, Utility and Other Enterprises ...... B-12 COUNTY ECONOMIC AND DEMOGRAPHIC INFORMATION ...... B-14 Population ...... B-15 Building Permit Values ...... B-16 Unemployment ...... B-16 Largest Employers ...... B-17 Corporate Headquarters ...... B-18 Personal Income ...... B-18 Home Values and Housing Units ...... B-18 Utilities, Energy and Water Resources ...... B-19 Solid Waste Management ...... B-19 COUNTY TAX BASE ...... B-20 Ad Valorem Taxes and Assessed Valuation ...... B-20 Delinquency Procedures ...... B-21 State Reimbursement of Property Tax Revenues ...... B-22 Tax Rates...... B-23 TAX TABLE A Tax Rates Within the County ...... B-24 TAX TABLE B County Property Tax Rates – Voted and Unvoted ...... B-26 Assessed Valuation ...... B-27 Largest Assessed Values ...... B-28 Collection of Ad Valorem Property Taxes and Special Assessments ...... B-29 Budgeting, Tax Levy and Appropriations Procedure ...... B-30 Investment of Funds ...... B-31 OTHER MAJOR COUNTY GENERAL FUND REVENUE SOURCES ...... B-32 Permissive Taxes ...... B-32 County Sales Tax ...... B-32 Real Property Transfer Tax ...... B-33 Local Government Fund ...... B-33 Nontax Revenues ...... B-33 COUNTY DEBT AND DEBT LIMITATIONS ...... B-34 Statutory Debt Limitations Generally ...... B-34 Bond Anticipation Notes ...... B-37 County General Obligation Debt Currently Outstanding ...... B-37 Other Long Term Obligations of the County ...... B-41 County Administrative Building ...... B-47 Debt Outstanding ...... B-48 Future Financings ...... B-48 FINANCES OF THE COUNTY ...... B-48 General Fund and Financial Outlook ...... B-48 Financial Reports and Audits ...... B-51 CRIMINAL MATTERS REGARDING FORMER COUNTY OFFICIALS...... B-52 APPENDIX C AUDITED BASIC FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED DECEMBER 31, 2014 ...... C-1

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APPENDIX D COMPARATIVE CASH BASIS SUMMARY OF GENERAL FUND RECEIPTS AND EXPENDITURES (UNAUDITED) FOR FISCAL YEARS 2010 THROUGH 2015 (000’s) ...... D-1 APPENDIX E PROPOSED TEXT OF BOND COUNSEL OPINION ...... E-1 APPENDIX F CLOSING CERTIFICATE ...... F-1 APPENDIX G CONTINUING DISCLOSURE CERTIFICATE ...... G-1

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INTRODUCTORY STATEMENT

This Official Statement has been prepared by the County of Cuyahoga, Ohio in connection with the original issuance and sale by the County of the Series 2015A Bonds.

All financial and other information presented herein has been provided by the County from its records, except for information expressly attributed to other sources. The presentation of information, including tables of receipts from taxes and other sources, is intended to show recent historic information, and is not intended to indicate future or continuing trends in the financial position or other affairs of the County. No representation is made that past experience, as might be shown by such financial and other information, will necessarily continue or be repeated in the future.

Certain statements contained in this Official Statement, including, without limitation, statements containing the words "believes," "anticipates," "expects" and words of similar import, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the County to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, general economic conditions, demographic changes, and existing government regulations and changes in, or the failure to comply with, government regulations. Certain of these factors are discussed in more detail elsewhere in this Official Statement. Given these uncertainties, readers of this Official Statement and investors are cautioned not to place undue reliance on such forward-looking statements.

This Official Statement should be considered in its entirety and no subject discussed should be considered less important than any other subject by reason of its location in the text. Reference should be made to laws, reports or documents referred to for more complete information regarding their contents.

As used in this Official Statement, "debt service" means principal of and interest on the Series 2015A Bonds. "State" or "Ohio" means the State of Ohio. "OMAC" means Ohio Municipal Advisory Council, a data clearing organization supported by investment banking firms active in Ohio and the State Information Depository for the State of Ohio as approved by the Ohio General Assembly and the Securities and Exchange Commission.

References herein to provisions of Ohio law, whether codified in the Revised Code or uncodified, the Ohio Constitution, or federal law, are references to such provisions as they presently exist. Provisions of the Ohio law and Constitution and federal law may in the future, and from time to time, be amended, repealed or supplemented.

Additional information relating to the financial condition of the County may be obtained by contacting Dennis G. Kennedy, County Fiscal Officer, 2079 East 9th St., Cleveland, Ohio 43040. Telephone: (216) 443-8191.

DEFINITIONS

The following capitalized terms, as used in this Official Statement and the Appendices attached hereto, have the following meanings unless otherwise indicated:

As used herein, the following terms shall be defined as follows:

"Additional Bonds" means any Bonds issued on a parity with the Series 2015A Bonds upon the terms and conditions set forth in Article II of the Indenture.

"Board" means the Board of County Commissioners of the County, as the predecessor legislative authority to the Council.

"Bond Counsel" means Squire Patton Boggs (US) LLP, Cleveland, Ohio.

"Bond Registrar" means the Trustee.

"Bonds" means the County’s Series 2015A Bonds, the Series 2014 Bonds, and any Additional Bonds or Series of Bonds authorized by legislation adopted by the County and issued pursuant to the Indenture.

"Continuing County Sales Tax" means the one percent (1%) County Sales Tax adopted July 6, 1987, by the Board, as the predecessor legislative authority of the Council, authorizing the levy and County collection of sales and use taxes for the purpose of providing additional general revenues for the County on a continuous basis.

"Council" means County Council, the County's legislative authority.

"County" means the County of Cuyahoga, Ohio.

"County Fiscal Officer" means the Fiscal Officer of the County.

"County Sales Tax" means 1.25% sales and use tax of the County, levied on all retail sales made in the County and on the storage, use, or consumption in the County of tangible personal property, including automobiles.

"County Sales Tax Bond Fund" means the County Sales Tax Bond Fund created by the Indenture.

"County Sales Tax Receipts" means the monies received by the County from the County Sales Tax.

"Cover" means the cover page and the inside cover of this Official Statement.

"Indenture" means the Trust Indenture, as the same may be amended or supplemented, together with Supplemental Trust Indenture No. 1, dated as of December 1, 2014 and Supplemental Trust Indenture No. 2, dated as of December 1, 2015, together with, where the context permits, any additional Supplemental Indentures, between the County and the Trustee.

"MSA" means the Cleveland Metropolitan Statistical Area, as defined by the United States Office of Management and Budget, including Cuyahoga, Geauga, Lake, Lorain and Medina Counties.

"Pledged Funds" means the County Sales Tax Receipts and any additional county sales tax authorized and approved by the Council under Sections 5739.021 and 5741.021 of the Ohio Revised Code

and specifically pledged as Revenues by the Council under the legislation imposing such additional county sales tax. “Pledged Funds” also includes the moneys and investments held by the Trustee in the Series 2015A Service Payments Fund and the Series 2015A Public Improvement Fund.

"Pledged Revenues" means, collectively, (a) the County Sales Tax Receipts and (b) all monies in the Pledged Funds and all income and profit from the investment of those monies.

"Revised Code" means the Ohio Revised Code.

"Series 2014 Bonds" means the County's $137,890,000 Various Purpose Sales Tax Revenue Bonds, Series 2014, dated December 17, 2014.

"Series 2015A Bonds" means the County's $9,180,000 Sales Tax Revenue Bonds, Series 2015A (Public Square Project), dated December 14, 2015.

"State" means the State of Ohio.

"State Auditor" means Auditor of the State.

"Supplemental Indenture" means any indenture supplemental to the Indenture entered into between the County and the Trustee in accordance with Article X of the Indenture.

"Trustee" means The Huntington National Bank.

"Trust Indenture" means the Trust Indenture, dated as of December 1, 2014, between the County and the Trustee.

"Underwriter" means Stifel, Nicolaus & Company, Incorporated.

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THE SERIES 2015A BONDS

Authorization and Purpose

The Series 2015A Bonds are authorized by a resolution adopted by the County Council on May 26, 2015 (the "Bond Legislation"), and Section 133.081 of the Revised Code.

The Series 2015A Bonds are issued in conformity with Chapter 133, Revised Code, and are, therefore, lawful investments for banks, savings and loan associations, credit union share guaranty corporations, trust companies, trustees, fiduciaries, insurance companies, including domestic for life and domestic not for life, trustees or other officers having charge of sinking and bond retirement or other funds of the State, subdivisions and taxing districts of the State, the Commissioners of the Sinking Fund of the State, the Administrator of Workers' Compensation, the State teachers, public employees, and school employees retirement systems, and the police and fire pension fund, and are eligible as security for the repayment of the deposit of public moneys.

The Series 2015A Bonds are issued for the purpose of paying or reimbursing the costs of constructing, maintaining, expanding, renovating, upgrading, improving, furnishing, and equipping the area in Downtown Cleveland known as Public Square and certain other related improvements and facilities operated by the County and paying capitalized interest on the Series 2015A Bonds and paying the costs of issuance in connection therewith.

Form and Terms

The Series 2015A Bonds will be issued in fully registered form and will bear interest from the date of delivery until maturity or earlier redemption, at the rates per annum as set forth on the cover page hereof, payable on June 1 and December 1, commencing June 1, 2016, and will mature on December 1 in the years as indicated on the cover page of this Official Statement. The Series 2015A Bonds will be issued in denominations of $5,000 or any integral multiple thereof, provided that each Series 2015A Bond will be of a single maturity, and will be numbered consecutively from R-1 upward.

Principal of the Series 2015A Bonds will be payable at maturity or subject to sinking fund redemption, in lawful money of the United States of America, at the corporate trust office of Trustee in the City of Cleveland, Ohio, which has been designated as bond registrar, paying agent, and transfer agent for the Series 2015A Bonds (the "Bond Registrar"). Interest on the Series 2015A Bonds will be payable to the person whose name appears as the registered holder thereof on the registration records maintained by the Bond Registrar, on the respective Record Date (15th calendar day of the month next preceding an interest payment date) by check mailed to such registered holder at the address of such registered holder as it appears on the registration records. No deduction shall be made for exchange, collection, or service charges.

Redemption Provisions

Mandatory Sinking Fund Redemption

The Series 2015A Bonds maturing December 1, 2033 (the “Term Bonds”) are subject to mandatory sinking fund redemption at a redemption price of 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption, on December 1, 2032 in the amount of $570,000. The remaining principal amount of the Term Bonds ($735,000) will be paid at stated maturity on December 1, 2033.

Optional Redemption

The Series 2015A Bonds maturing on and after December 1, 2024 are subject to redemption at the option of the County, either in whole or in part, in such order of maturity as the County shall determine, on any date on or after December 1, 2023, at a redemption price equal to 100% of the principal amount redeemed plus, in each case, accrued interest to the date fixed for redemption.

When partial redemption is authorized, the Series 2015A Bonds or portions thereof will be selected by lot within a maturity in such manner in accordance with DTC procedures as the Trustee may determine, provided, however, that the portion of any such Series 2015A Bond so selected will be in the amount of $5,000 or any integral multiple thereof.

The notice of the call for redemption of Series 2015A Bonds shall identify (i) by designation, letters, numbers or other distinguishing marks, such Series 2015A Bonds or portions thereof to be redeemed, (ii) the redemption price to be paid, (iii) the date fixed for redemption, and (iv) the place or places where the amounts due upon redemption are payable. From and after the specified redemption date, interest on such Series 2015A Bonds (or portions thereof) called for redemption shall cease to accrue. Such notice shall be sent by first class mail to each such registered holder at the address shown in the Series 2015A Bond registration records at least 30 days prior to the redemption date. Failure to receive such notice or any defect therein shall not affect the validity of the proceedings for the redemption of any such Series 2015A Bond.

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ESTIMATED SOURCES AND USES OF FUNDS

The proceeds of the Series 2015A Bonds, other than any accrued interest (which will be deposited in the County Sales Tax Bond Fund and used to pay debt service on the Series 2015A Bonds), will be applied as follows:

Sources

Par Value of the Series 2015A Bonds $9,180,000.00 Net Original Issue Premium 506,730.50

Total Sources $9,686,730.50

Uses

Deposit to Series 2015A Project Fund $9,000,000.00 Deposit to Series 2015A Capitalized Interest Subaccount 395,673.32 Cost of Issuance and Underwriter’s Discount* 291,057.18

Total Uses $9,686,730.50

SECURITY FOR AND SOURCES OF PAYMENT OF THE SERIES 2015A BONDS

The Series 2015A Bonds are limited special revenue obligations of the County, payable from the Pledged Revenues as described herein, subject to Chapter 9 of the Federal Bankruptcy Code and other laws affecting creditors' rights. Neither the general credit of the County, nor that of the State of Ohio or of any political subdivision thereof, is pledged to the payment of the principal of, or premium, if any, or interest on the Series 2015A Bonds.

THE SERIES 2015A BONDS ARE NOT GENERAL OBLIGATIONS OF THE COUNTY, THE STATE OF OHIO, OR ANY POLITICAL SUBDIVISION THEREOF, AND ARE NOT SECURED BY THE FULL FAITH AND CREDIT OF THE COUNTY, THE STATE, OR ANY POLITICAL SUBDIVISION THEREOF, AND THE OWNERS AND HOLDERS OF THE SERIES 2015A BONDS DO NOT HAVE THE RIGHT TO HAVE ANY EXCISES OR TAXES, OTHER THAN THE COUNTY SALES TAX, LEVIED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO OR THE TAXING AUTHORITY OF ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE COUNTY, FOR THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2015A BONDS.

County Sales Tax

The County currently levies a 1.25% tax on all retail sales made in the County and on the storage, use, or consumption in the County of tangible personal property, including automobiles. One percent (1.0%) of the County Sales Tax was approved by resolutions adopted by the Board, as the predecessor legislative authority to the Council in 1987, and is in effect for a continuing period of time. The remaining 0.25% of the County Sales Tax was approved by a resolution of the Board adopted in 2007 and is in effect for a period of 20 years ending in 2027. No portion of County Sales Tax is now subject to

* Includes Underwriter's compensation, printing costs, rating fees, Trustee fees, Municipal Advisor fees, legal fees, and certain miscellaneous expenses.

repeal by referendum or initiative. The County Sales Tax is collected by the State and distributed monthly to the County.

Receipts for the County Sales Tax since 2009, rounded to the nearest $1,000, are set forth in the table below.

Historical County Sales Tax Collections County of Cuyahoga, Ohio Year Rate Amount Collected 2009 1.25% $193,275,000 2010 1.25 204,063,000 2011 1.25 216,589,000 2012 1.25 226,787,000 2013 1.25 237,307,000 2014 1.25 246,767,000 2015* 1.25 259,270,000 Source: County Fiscal Office

Under State law, Council has authority to adopt resolutions increasing the County sales and use tax by an additional 0.25% (up to an aggregate maximum of 1.50%) to provide revenue for the County's General Fund or for certain other purposes. Unless adopted as an emergency measure or with voter approval, any resolution increasing the rate would be subject to referendum by the electors for a period of 30 days after its adoption. If adopted as an emergency measure, the resolution increasing the rate would be subject to repeal at a voter-initiated election. If repealed by the electors, the increased rate could not be reimposed pursuant to an emergency measure for one year from the date of the election.

The County currently has no plans to increase the sales tax rate.

County Sales Tax Bonds

Section 133.081 of the Revised Code permits a county that has levied a sales tax pursuant to Chapter 5739 of the Revised Code to issue sales tax-supported bonds in anticipation of the receipt of proceeds of such sales tax for the purpose of financing the cost of permanent improvements and providing for the refunding of bonds, including general obligation bonds, previously issued by the County. Annual debt service charges may not exceed the estimated annual county sales tax receipts, and the board of county commissioners (or the Council, in the case of the County) may not repeal, rescind, or reduce any portion of a county sales tax pledged to the payment of debt charges on sales tax supported bonds while such bonds remain outstanding.

The maximum aggregate amount of sales tax supported bonds that may be outstanding at any time in accordance with their terms shall not exceed an amount which requires or is estimated to require payments from sales tax receipts of debt charges on the sales tax supported bonds in any calendar year in an amount exceeding the county sales tax in anticipation of which the bonds or anticipation notes are issued as estimated by the fiscal officer based on general sales tax receipts averaged for the prior two calendar years prior to the year in which the sales tax supported bonds are issued, and annualized for any increase in the county sales tax which may have been levied in part during such period or levied after such period.

To secure the payment of the Bond Service Charges on the Bonds, the County has pledged in the Indenture the receipts of the Sales Tax (the "Revenues") to the Trustee and has assigned and created a

*Projected

security interest in the Pledged Revenues to and in favor of the Trustee. The Pledged Revenues comprise all money in the Pledged Funds and all income and profit from the investment of that money.

The County has created the County Sales Tax Bond Fund under the Indenture as a Pledged Fund. This Pledged Fund is in the custody of the Trustee. The County has agreed in the Indenture to fund the County Sales Tax Bond Fund on a monthly basis from the Revenues.

Holders of the Bonds do not have a security interest in the Revenues other than the Pledged Revenues and the County is permitted to and may use the Revenues for other lawful purposes in the future. The County is not prohibited from using other lawfully available funds to pay the debt service on the Series 2015A Bonds.

Service Payments and Series 2015A Service Payments Fund

In addition to the Sales Tax Receipts, the Series 2015A Bonds are payable from and secured by the Assigned Service Payments deposited into the Series 2015A Service Payments Revenue Fund. In 2002, the City of Cleveland (the “City”) passed an ordinance (the “TIF Ordinance”) exempting from real property taxation certain real property (the “TIF Property”) located adjacent to the Project. The then- owner of the TIF Property, for itself and its assigns, including the current owner, Higbee Mothership, LLC (the “Owner”), agreed to make service payments in lieu of taxes (the “Service Payments”) in an amount equal to the amount the owner of the TIF Property would have paid as real estate taxes if the TIF Property had not been exempted from taxation. Under an Amended, Restated and Supplemented Cooperative Agreement dated as of December 1, 2015 (the “Cooperative Agreement”) by and among the County, the City, the Owner, the Cleveland-Cuyahoga County Port Authority and the Trustee, the Owner, for itself and its successors and assigns, has confirmed its obligation to make Service Payments and the City has agreed to assign those Service Payments, when received, to the County to be used to pay Bond Service Charges on the Series 2015A Bonds used to finance the Project. The “Assigned Service Payments” are Service Payments actually received by the City from the TIF Property, which amounts are assigned to the County by the City and are further assigned by Supplemental Indenture No. 2 to the Trustee as additional security for the Series 2015A Bonds. The Assigned Service Payments are to be deposited into the Series 2015A Service Payments Fund and are to be used as described below. The County expects that the Assigned Service Payments will be sufficient to pay debt service on the Series 2015A Bonds.

Public Improvement Fund

Supplemental Indenture No. 2 creates the Series 2015A Public Improvement Fund. The Series 2015A Public Improvement Fund will not be funded with proceeds of the Series 2015A Bonds, but instead initially will be funded in part with moneys held under an existing trust agreement related to bonds issued by the Cleveland-Cuyahoga County Port Authority in 2010 and being redeemed. In addition, as Assigned Service Payments are received by the County from the City, the amount of such Assigned Service Payments in excess of 125% of the Bond Service Charges will be deposited in the Series 2015A Public Improvement Fund. Moneys in the Series 2015A Public Improvement Fund will be used to make deposits into the Bond Fund, to the extent that moneys transferred from the Series 2015A Service Payments Fund are insufficient to pay principal of and interest on the Series 2015A Bonds when due. In addition, the Trustee shall disburse funds from the Series 2015A Public Improvement Fund to the County at the County’s request to pay costs of additional improvements to the Series 2015A Project.

Application of Revenues; Payment of Bond Service Charges

Pursuant to the Indenture, the County has directed the Tax Commissioner or other appropriate official of the State to deposit the County Sales Tax Receipts each month into the Revenue Fund. With respect to the Series 2015A Bonds (and not any other Bonds issued pursuant to the Indenture), prior to the use of the County Sales Tax Receipts, the County will cause to be paid to the Trustee for deposit into the Series 2015A Service Payments Fund, the Assigned Service Payments, which shall be applied as follows:

(i) The Trustee shall deposit into the Series 2015A Principal Payment Subaccount and the Series 2015A Interest Payment Subaccount, within one (1) Business Day after receipt thereof by the Trustee, from the Series 2015A Service Payments Fund, an amount equal to the interest to become due on the Series 2015A Bonds on the next succeeding Interest Payment Date and the principal amount due at maturity or upon Mandatory Sinking Fund Redemption of the Series 2015A Bonds on the next succeeding Principal Payment Date; provided that no such payment need be made to the extent that moneys (x) are on hand in the Series 2015A Interest Payment Subaccount or Series 2015A Principal Payment Subaccount, as applicable, or (y) have been transferred to the Series 2015A Interest Payment Subaccount from the Series 2015A Capitalized Interest Subaccount for the purpose of paying interest on the Series 2015A Bonds;

(ii) To the extent sufficient funds are not available to pay the amounts due pursuant to subparagraph (i) above, the Trustee shall deposit into the Series 2015A Interest Payment Subaccount and the Series 2015A Principal Payment Subaccount, from the Series 2015A Public Improvement Fund, the amount required to make up such deficiency;

(iii) The Trustee shall deposit into the Series 2015A Interest Payment Subaccount and the Series 2015A Principal Payment Subaccount, as applicable, within one (1) Business Day after receipt thereof by the Trustee in each of the months December, January, February, March, June, July, August and September, commencing with January 2016, from Revenues, an amount equal to one-fourth (1/4) of the interest to become due on the Series 2015A Bonds on the next succeeding Interest Payment Date and one-tenth (1/10) of the principal to become due on the Series 2015A Bonds on the next succeeding Principal Payment Date; provided, that no such payment need be made to the extent that moneys (x) are on hand in such Subaccounts or, (y) as to interest, have been transferred to the Series 2015A Interest Payment Subaccount from the Series 2015A Capitalized Interest Subaccount for that purpose.

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The table below presents the coverage ratio for debt service on the Bonds based on County Sales Tax Receipts for 2013 and 2014 and debt service on the Series 2015A Bonds: County Sales Tax Revenue Bond Coverage County of Cuyahoga, Ohio

Sales Tax Debt 2014 2015A Service Sales Tax Bonds Sales Tax Bonds 2015A Sales Tax Capitalized Net Sales Tax Sales Tax Coverage Year Debt Service(b) Principal Bonds Interest Interest Debt Service Revenues(a) Ratio(b) 2016 $1,840,699.76 - $285,341.24 $285,341.24 $1,840,699.76 $232,047,000 126.1

2017 1,840,199.76 - 296,031.26 110,332.08 2,025,898.94 232,047,000 114.5

2018 6,507,793.76 $460,000.00 296,031.26 - 7,263,825.02 232,047,000 31.9

2019 6,502,093.76 470,000.00 289,131.26 - 7,261,225.02 232,047,000 32.0

2020 11,941,393.76 485,000.00 270,331.26 - 12,696,725.02 232,047,000 18.3

2021 11,870,643.76 495,000.00 260,631.26 - 12,626,275.02 232,047,000 18.4

2022 11,871,693.76 505,000.00 250,731.26 - 12,627,425.02 232,047,000 18.4

2023 11,876,193.76 515,000.00 240,631.26 - 12,631,825.02 232,047,000 18.4

2024 11,874,943.76 525,000.00 230,331.26 - 12,630,275.02 232,047,000 18.4

2025 4,967,443.76 550,000.00 209,331.26 - 5,726,775.02 232,047,000 40.5

2026 10,768,193.76 560,000.00 195,581.26 - 11,523,775.02 232,047,000 20.1

2027 10,768,193.76 585,000.00 173,181.26 - 11,526,375.02 232,047,000 20.1

2028 10,767,943.76 610,000.00 149,781.26 - 11,527,725.02 185,637,600 16.1

2029 10,766,693.76 630,000.00 125,381.26 - 11,522,075.02 185,637,600 16.1

2030 10,768,693.76 655,000.00 100,181.26 - 11,523,875.02 185,637,600 16.1

2031 10,766,243.76 685,000.00 73,981.26 - 11,525,225.02 185,637,600 16.1

2032 10,767,650.00 715,000.00 46,581.26 - 11,529,231.26 185,637,600 16.1

2033 10,768,900.00 735,000.00 22,968.76 - 11,526,868.76 185,637,600 16.1 2034 10,770,400.00 - - - 10,770,400.00 185,637,600 17.2 2035 10,766,150.00 - - - 10,766,150.00 185,637,600 17.2 2036 10,770,400.00 - - - 10,770,400.00 185,637,600 17.2 2037 10,767,400.00 - - - 10,767,400.00 185,637,600 17.2 2038 10,769,200.00 - - - 10,769,200.00 185,637,600 17.2 Total $222,641,518.19 $9,180,000.00 $3,516,160.16 $395,673.32 $234,942,005.03

(a) Sales Tax Revenues consist of the average of the last two fiscal years (2013-2014) – full 1.25% County Sales Tax through 2027 (when the additional 0.25% levy expires), upon which the 1.00% Continuing County Sales Tax Serves as the basis for coverage. (b) Sales Tax Debt Service is net of Capitalized Interest in years 2016 and 2017.

Series 2014 Bonds; Issuance of Additional Bonds

The County has previously issued the Series 2014 Bonds in the principal amount of $137,890,000. The Indenture authorizes the County to issue Additional Bonds on a parity with the Series 2015A Bonds, for any lawful purpose, which Additional Bonds shall be payable from the County Sales Tax Bond Fund and be secured by a lien upon the Pledged Revenues on a parity with the Series 2014 Bonds and the Series 2015A Bonds.

The Indenture requires that before any such Additional Bonds are issued, the County must certify (i) that reasonably projected Continuing County Sales Tax to be received from and after the date of delivery of such Additional Bonds to the original purchaser thereof are sufficient in time and amount to pay all Bond Service Charges on all Bonds outstanding immediately after delivery of such Additional Bonds when due without regard to any optional redemption and (ii) that one half of the aggregate continuing County Sales Tax Receipts during the twenty-four (24) consecutive calendar months prior to the sale of the additional Bonds is greater than 300% of the amount of Bond Service Charges on all Bonds outstanding immediately after delivery of such Additional Bonds due and payable during any year.

UNDERWRITING

Stifel, Nicolaus & Company, Incorporated, as the underwriter (the "Underwriter"), has agreed, pursuant to the Bond Purchase Agreement (the "Purchase Agreement") with the County dated December 4, 2015, to purchase all, but not less than all, of the Series 2015A Bonds at a purchase price of $9,566,730.50 (the "Purchase Price"), which is equal to the par amount of the Series 2015A Bonds ($9,180,000.00), plus net original issue premium ($506,730.50), less Underwriter's discount ($120,000.00), plus accrued interest if any. The Underwriter shall retain $171,057.18 from the purchase price to pay certain expenses on behalf of the County.

The Underwriter is purchasing the Series 2015A Bonds as originally issued for purpose of resale. The Underwriter reserves the right to join with dealers and other underwriters in offering the Series 2015A Bonds to the public. The Underwriter may offer and sell the Series 2015A Bonds to certain dealers (including dealer banks and dealers depositing the Series 2015A Bonds into unit investment trusts, certain of which may be sponsored or managed by the Underwriter), and others at prices lower than the public offering prices noted on the cover page hereof. The initial offering prices of the Series 2015A Bonds may be changed, from time to time, by the Underwriter.

The obligation of the Underwriter to accept delivery of the Series 2015A Bonds is subject to various conditions of the Purchase Agreement. The Underwriter is obligated to purchase all of the Series 2015A Bonds if any of the Series 2015A Bonds are purchased.

MUNICIPAL ADVISOR

The County has retained H. J. Umbaugh & Associates, Certified Public Accountants, LLP (the “Municipal Advisor”), to provide financial advice in connection with the issuance of the Series 2015A Bonds. The Municipal Advisor’s duties, responsibilities and fees arise solely as Municipal Advisor to the County and it has no secondary obligations or other responsibility. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for accuracy, completeness or fairness of the information contained in this Official Statement. The Municipal Advisor’s fees are expected to be paid from proceeds of the Series 2015A Bonds.

Municipal Advisor Registration

The Municipal Advisor is registered with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board. As such, the Municipal Advisor is providing certain specific municipal advisory services to the County, but is neither a placement agent to the City nor a broker/dealer. The offer and sale of the Series 2015A Bonds shall be made by the County, in the sole discretion of the County, and under its control and supervision. The County agrees that the Municipal Advisor does not undertake to sell or attempt to sell the Series 2015A Bonds, and will take no part in the sale thereof.

Other Financial Industry Activities and Affiliations

Umbaugh Cash Advisory Services, LLC (“UCAS”) is a wholly-owned subsidiary of the Municipal Advisor. UCAS is registered as an investment adviser with the Securities and Exchange Commission under the federal Investment Advisers Act. UCAS provides non-discretionary investment advice with the purpose of helping clients create and maintain a disciplined approach to investing their funds prudently and effectively. UCAS may provide advisory services to the clients of the Municipal Advisor.

UCAS has no other activities or arrangements that are material to its advisory business or its clients with a related person who is a broker-dealer, investment company, other investment adviser or financial planner, bank, law firm or other financial entity.

RATINGS

As noted on the cover page, the County has applied for a rating on the Series 2015A Bonds from Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a division of The McGraw Hill Companies, Inc., which have rated the Series 2015A Bonds “Aa1” and “AAA”, respectively. No application for a rating has been made to any other rating agency.

The ratings reflect only the views of such rating agency. Any explanation of the significance of the rating may only be obtained from Moody's Investors Service, Inc., 7 World Trade Center, New York, New York 10007, telephone (212) 553-0300, website www.moodys.com, and Standard & Poor's Ratings Services, a division of The McGraw Hill Companies, Inc., 55 Water Street, New York, New York 10041, telephone (212) 438-2000, website www.standardandpoors.com.

The County furnished to the rating agencies certain information and materials, some of which may not have been included in this Official Statement, relating to the Series 2015A Bonds and the County. Generally, rating agencies base their ratings on such information and materials, as well as investigation, studies and assumptions by the rating agencies. Such ratings are not recommendations to buy, sell or hold the Series 2015A Bonds.

There can be no assurance that the ratings, as assigned, will continue for any given period of time or that it will not be lowered or withdrawn entirely by the rating agencies if, in its judgment, circumstances so warrant. In addition, the County currently expects to provide to the rating agency (but assumes no obligation to furnish to the Underwriter or the holders from time to time of the Series 2015A Bonds) further information and materials that it or they may request. The County does not, however, obligate itself hereby to furnish such information and materials, and may issue unrated bonds and notes from time to time. Failure by the County to furnish such information and materials, or the issuance of unrated bonds or notes, may result in the suspension or withdrawal of either rating agency's rating on the

Series 2015A Bonds. Any lowering, suspension or withdrawal of such ratings may have an adverse effect on the marketability or market price of the Series 2015A Bonds.

LITIGATION

To the knowledge of the appropriate officials of the County, no litigation or administrative action or proceeding is pending or threatened restraining or enjoining, or seeking to restrain or enjoin, the issuance and delivery of the Series 2015A Bonds, or contesting or questioning the proceedings and authority under which the Series 2015A Bonds are to be authorized and are to be issued, sold, executed or delivered, or the validity of the Series 2015A Bonds. A no-litigation certificate to such effect will be delivered to the Underwriter at the time of original delivery of the Series 2015A Bonds to the Underwriter.

The County is a party to various legal proceedings seeking damages or injunctive relief and generally incidental to its operations. These proceedings are unrelated to the Series 2015A Bonds or the security therefor. The ultimate disposition of such proceedings is not presently determinable, but will not, in the opinion of the County officials, have a material adverse effect on the Series 2015A Bonds or the security therefor.

LEGAL MATTERS

Legal matters incident to the issuance of the Series 2015A Bonds and with regard to the excludability from gross income for federal income tax purposes of the interest thereon (see "TAX MATTERS" herein) are subject to the approving opinion of Squire Patton Boggs (US) LLP, Bond Counsel to the County. A signed copy of that opinion will be delivered to the Underwriter at the time of original delivery, and a copy will be printed on the Series 2015A Bonds. Assuming no change in applicable law prior to the date of delivery of such opinion, the opinion will be substantially in the form attached hereto as APPENDIX D. The opinion will speak only as of its date, and subsequent distribution of it by recirculation of the Official Statement or otherwise shall create no implication that Bond Counsel has reviewed or expresses any opinion concerning any of the matters referred to in the opinion subsequent to the date thereof. Certain legal matters will be passed upon for the Underwriter by its counsel, Calfee, Halter & Griswold LLP.

While Bond Counsel has participated in the preparation of portions of this Official Statement, it has not been engaged to confirm or verify, and expresses and will express no opinion as to the accuracy, completeness or fairness of any of the statements in this Official Statement, including its appendices (other than APPENDIX D), or in any other reports, financial information, offering or disclosure documents or other information pertaining to the County or the Series 2015A Bonds that may be prepared or made available by the County or others to the holders of the Series 2015A Bonds or others.

The County has retained the legal services of Calfee, Halter & Griswold LLP from time to time as bond counsel. Squire Patton Boggs (US) LLP and Calfee, Halter & Griswold LLP also serve and have served as bond counsel for one or more of the political subdivisions that the County territorially overlaps. Both Calfee, Halter & Griswold LLP and Squire Patton Boggs (US) LLP have served as counsel to one or more of the Underwriters in connection with matters that do not relate to the County.

TAX MATTERS In the opinion of Squire Patton Boggs (US) LLP, Bond Counsel, under existing law: (i) interest on the Series 2015A Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; and (ii)

interest on, and any profit made on the sale, exchange or other disposition of, the Series 2015A Bonds are exempt from all Ohio state and local taxation, except the estate tax, the domestic insurance company tax, the dealers in intangibles tax, the tax levied on the basis of the total equity capital of financial institutions, and the net worth base of the corporate franchise tax. Bond Counsel expresses no opinion as to any other tax consequences regarding the Series 2015A Bonds.

The opinion on tax matters will be based on and will assume the accuracy of certain representations and certifications, and continuing compliance with certain covenants, of the County contained in the transcript of proceedings and that are intended to evidence and assure the foregoing, including that the Series 2015A Bonds are and will remain obligations the interest on which is excluded from gross income for federal income tax purposes. Bond Counsel will not independently verify the accuracy of the County’s certifications and representations or the continuing compliance with the County’s covenants.

The opinion of Bond Counsel is based on current legal authority and covers certain matters not directly addressed by such authority. It represents Bond Counsel’s legal judgment as to exclusion of interest on the Series 2015A Bonds from gross income for federal income tax purposes but is not a guaranty of that conclusion. The opinion is not binding on the Internal Revenue Service (“IRS”) or any court. Bond Counsel expresses no opinion about (i) the effect of future changes in the Code and the applicable regulations under the Code or (ii) the interpretation and the enforcement of the Code or those regulations by the IRS.

The Code prescribes a number of qualifications and conditions for the interest on state and local government obligations to be and to remain excluded from gross income for federal income tax purposes, some of which require future or continued compliance after issuance of the obligations. Noncompliance with these requirements by the County may cause loss of such status and result in the interest on the Series 2015A Bonds being included in gross income for federal income tax purposes retroactively to the date of issuance of the Series 2015A Bonds. The County has covenanted to take the actions required of it for the interest on the Series 2015A Bonds to be and to remain excluded from gross income for federal income tax purposes, and not to take any actions that would adversely affect that exclusion. After the date of issuance of the Series 2015A Bonds, Bond Counsel will not undertake to determine (or to so inform any person) whether any actions taken or not taken, or any events occurring or not occurring, or any other matters coming to Bond Counsel’s attention, may adversely affect the exclusion from gross income for federal income tax purposes of interest on the Series 2015A Bonds or the market value of the Series 2015A Bonds.

A portion of the interest on the Series 2015A Bonds earned by certain corporations may be subject to a federal corporate alternative minimum tax. In addition, interest on the Series 2015A Bonds may be subject to a federal branch profits tax imposed on certain foreign corporations doing business in the United States and to a federal tax imposed on excess net passive income of certain S corporations. Under the Code, the exclusion of interest from gross income for federal income tax purposes may have certain adverse federal income tax consequences on items of income, deduction or credit for certain taxpayers, including financial institutions, certain insurance companies, recipients of Social Security and Railroad Retirement benefits, those that are deemed to incur or continue indebtedness to acquire or carry tax-exempt obligations, and individuals otherwise eligible for the earned income tax credit. The applicability and extent of these and other tax consequences will depend upon the particular tax status or other tax items of the owner of the Series 2015A Bonds. Bond Counsel will express no opinion regarding those consequences.

Payments of interest on tax-exempt obligations, including the Series 2015A Bonds, are generally subject to IRS Form 1099-INT information reporting requirements. If a Series 2015A Bond owner is

subject to backup withholding under those requirements, then payments of interest will also be subject to backup withholding. Those requirements do not affect the exclusion of such interest from gross income for federal income tax purposes.

Bond Counsel’s engagement with respect to the Series 2015A Bonds ends with the issuance of the Series 2015A Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the County or the owners of the Series 2015A Bonds regarding the tax status of interest thereon in the event of an audit examination by the IRS. The IRS has a program to audit tax-exempt obligations to determine whether the interest thereon is includible in gross income for federal income tax purposes. If the IRS does audit the Series 2015A Bonds, under current IRS procedures, the IRS will treat the County as the taxpayer and the beneficial owners of the Series 2015A Bonds will have only limited rights, if any, to obtain and participate in judicial review of such audit. Any action of the IRS, including but not limited to selection of the Series 2015A Bonds for audit, or the course or result of such audit, or an audit of other obligations presenting similar tax issues, may affect the market value of the Series 2015A Bonds.

Prospective purchasers of the Series 2015A Bonds upon their original issuance at prices other than the respective prices indicated on the inside cover of this Official Statement, and prospective purchasers of the Series 2015A Bonds at other than their original issuance, should consult their own tax advisers regarding other tax considerations such as the consequences of market discount, as to all of which Bond Counsel expresses no opinion.

Risk of Future Legislative Changes and/or Court Decisions

Legislation affecting tax-exempt obligations is regularly considered by the United States Congress and may also be considered by the State legislature. Court proceedings may also be filed, the outcome of which could modify the tax treatment of obligations such as the Series 2015A Bonds. There can be no assurance that legislation enacted or proposed, or actions by a court, after the date of issuance of the Series 2015A Bonds will not have an adverse effect on the tax status of interest or other income on the Series 2015A Bonds or the market value or marketability of the Series 2015A Bonds. These adverse effects could result, for example, from changes to federal or state income tax rates, changes in the structure of federal or state income taxes (including replacement with another type of tax), or repeal (or reduction in the benefit) of the exclusion of interest on the Series 2015A Bonds from gross income for federal or state income tax purposes for all or certain taxpayers.

For example, recent presidential and legislative proposals would eliminate, reduce or otherwise alter the tax benefits currently provided to certain owners of state and local government bonds, including proposals that would result in additional federal income tax on taxpayers that own tax-exempt obligations if their incomes exceed certain thresholds. Investors in the Series 2015A Bonds should be aware that any such future legislative actions (including federal income tax reform) may retroactively change the treatment of all or a portion of the interest on the Series 2015A Bonds for federal income tax purposes for all or certain taxpayers. In such event, the market value of the Series 2015A Bonds may be adversely affected and the ability of holders to sell their Series 2015A Bonds in the secondary market may be reduced. The Series 2015A Bonds are not subject to special mandatory redemption, and the interest rates on the Series 2015A Bonds are not subject to adjustment in the event of any such change.

Investors should consult their own financial and tax advisers to analyze the importance of these risks.

Original Issue Discount and Original Issue Premium

Certain of the Series 2015A Bonds (“Discount Bonds”) may be offered and sold to the public at an original issue discount (“OID”). OID is the excess of the stated redemption price at maturity (the principal amount) over the “issue price” of a Discount Bond. The issue price of a Discount Bond is the initial offering price to the public (other than to bond houses, brokers or similar persons acting in the capacity of underwriters or wholesalers) at which a substantial amount of the Discount Bonds of the same maturity is sold pursuant to that offering. For federal income tax purposes, OID accrues to the owner of a Discount Bond over the period to maturity based on the constant yield method, compounded semiannually (or over a shorter permitted compounding interval selected by the owner). The portion of OID that accrues during the period of ownership of a Discount Bond (i) is interest excluded from the owner’s gross income for federal income tax purposes to the same extent, and subject to the same considerations discussed above, as other interest on the Series 2015A Bonds, and (ii) is added to the owner’s tax basis for purposes of determining gain or loss on the maturity, redemption, prior sale or other disposition of that Discount Bond. The amount of OID that accrues each year to a corporate owner of a Discount Bond is taken into account in computing the corporation’s liability for federal alternative minimum tax. A purchaser of a Discount Bond in the initial public offering at the price for that Discount Bond stated on the cover of this Official Statement who holds that Discount Bond to maturity will realize no gain or loss upon the retirement of that Discount Bond.

Certain of the Series 2015A Bonds (“Premium Bonds”) may be offered and sold to the public at a price in excess of their stated redemption price at maturity (the principal amount). That excess constitutes bond premium. For federal income tax purposes, bond premium is amortized over the period to maturity of a Premium Bond, based on the yield to maturity of that Premium Bond (or, in the case of a Premium Bond callable prior to its stated maturity, the amortization period and yield may be required to be determined on the basis of an earlier call date that results in the lowest yield on that Premium Bond), compounded semiannually. No portion of that bond premium is deductible by the owner of a Premium Bond. For purposes of determining the owner’s gain or loss on the sale, redemption (including redemption at maturity) or other disposition of a Premium Bond, the owner’s tax basis in the Premium Bond is reduced by the amount of bond premium that is amortized during the period of ownership. As a result, an owner may realize taxable gain for federal income tax purposes from the sale or other disposition of a Premium Bond for an amount equal to or less than the amount paid by the owner for that Premium Bond. A purchaser of a Premium Bond in the initial public offering at the price for that Premium Bond stated on the cover of this Official Statement who holds that Premium Bond to maturity (or, in the case of a callable Premium Bond, to its earlier call date that results in the lowest yield on that Premium Bond) will realize no gain or loss upon the retirement of that Premium Bond.

Owners of Discount Bonds and Premium Bonds should consult their own tax advisers as to the determination for federal income tax purposes of the amount of OID or bond premium properly accruable or amortizable in any period with respect to the Discount Bonds or Premium Bonds and as to other federal tax consequences and the treatment of OID and bond premium for purposes of state and local taxes on, or based on, income.

BOOK ENTRY SYSTEM

The information in this section concerning The Depository Trust Company ("DTC") and DTC's book entry system has been obtained from DTC and the County takes no responsibility for the completeness or accuracy thereof. The County cannot and does not give any assurances that DTC, Direct Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal, or premium, if any, with respect to the Series 2015A Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Series 2015A Bonds, or (c) redemption or other notices

sent to DTC or Cede & Co., its partnership nominee, as the registered owner of the Series 2015A Bonds, or that they will so do on a timely basis or that DTC, Direct Participants or Indirect Participants will act in the manner described in this Official Statement. The current "Rules" applicable to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of DTC to be followed in dealing with DTC Participants are on file with DTC.

DTC will act as securities depository for the Series 2015A Bonds. The Series 2015A Bonds will be issued as fully-registered bonds 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 Series 2015A Bond certificate will be issued for each issue of the Series 2015A Bonds, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.

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 issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC's 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 a rating of AA+ from Standard & Poor's. The DTC rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.

Purchases of Series 2015A Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Series 2015A Bonds on DTC's records. The ownership interest of each actual purchaser of each Series 2015A 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 Series 2015A 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 Series 2015A Bonds, except in the event that use of the book entry system for the Series 2015A Bonds is discontinued.

To facilitate subsequent transfers, all Series 2015A 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 Series 2015A 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 Series 2015A Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 2015A Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect 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 Series 2015A Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Series 2015A Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Series 2015A Bonds. For example, Beneficial Owners of Series 2015A Bonds may wish to ascertain that the nominee holding the Series 2015A 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 Bond 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 Series 2015A Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Series 2015A Bonds unless authorized by a Direct Participant in accordance with DTC's MMI 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 the Series 2015A Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distributions and dividend payments on the Series 2015A 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 County or the Bond Registrar, on 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, the Bond Registrar, or the County, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the County or the Bond Registrar, 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 Direct and Indirect Participants.

Revision of Book Entry System - Replacement Bonds

The Bond Legislation provides for issuance of fully registered Series 2015A Bonds (the "Replacement Bonds") directly to owners other than DTC or its nominee only if DTC determines not to continue to act as security depository of the Series 2015A Bonds. In such event, the County may in its discretion establish a securities depository/book entry relationship with another qualified securities depository. If the County does not or is unable to do so, and after appropriate notice to DTC, the County's Bond Registrar will authenticate and deliver fully registered Replacement Bonds, in the denominations of $5,000 or any multiple thereof, to or at the direction of and, if the event is not the result of County action

or inaction, at the expense (including printing costs) of, any persons requesting such issuance. Replacement Bonds may be transferred, registered and assigned only in the registration books of the County's Bond Registrar.

TRANSCRIPT AND CLOSING DOCUMENTS

A complete transcript of proceedings for the Series 2015A Bonds, including an appropriate no-litigation certificate (described above under "LITIGATION"), will be delivered by the County when the Series 2015A Bonds are delivered by the County to the Underwriter. The County will at that time also provide to the Underwriter certificates of the County Fiscal Officer and Director of Law of the County, in the form attached hereto as APPENDIX E, addressed to the Underwriter relating to the accuracy and completeness of this Official Statement.

CONTINUING DISCLOSURE

The County has agreed for the benefit of the holders and beneficial owners of the Series 2015A Bonds to provide annual financial information and notices of certain events under Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission. Concurrently with the delivery of the Series 2015A Bonds, the County will deliver a certificate of the County Fiscal Officer of the County, in the form attached hereto as APPENDIX F, describing the nature of the information to be provided, the persons and entities to whom such information will be provided and the times at which such information will be provided (the "Continuing Disclosure Certificate"). The County's failure to comply with any undertaking contained in such certificate will not constitute an event of default under the Series 2015A Bonds.

In connection with its prior issuance of obligations, the County entered into agreements to provide certain annual financial information and operating data, audited financial statements and notice of the occurrence of certain events for purposes of the Rule. In the past five years, the County failed to comply with those agreements in 2012 with respect to information regarding Fiscal Year 2011. In 2012, the County failed to timely file the information because certain agreements required the inclusion of the County's audited and unaudited basic financial statements to be filed by the 270th day of 2012, and those financial statements were not completed by that date. The County’s Annual Information Statements filed in the years 2008 to 2011 did not include audited or unaudited financial statements. The County’s 2012 audited financial statements were released by the State Auditor and posted on the State Auditor’s website on February 11, 2014. The County filed these financial statements with the Electronic Municipal Market Access system of the MSRB on May 20, 2014.

It has come to the attention of the County that CUSIP numbers for certain of the County's outstanding bonds, as well as the Development Revenue Bonds, Series 2013 (Administrative Headquarters Project) (Cuyahoga County, Ohio, Lessee) issued by the Cleveland-Cuyahoga County Port Authority for which the County is an "obligated person" within the meaning of the Rule, were not associated with all of the County's prior continuing disclosure filings. The County has rectified the omission (of the association of CUSIP numbers) with its filings for the past five years.

The County’s Annual Information Statement for 2014 was timely filed with the MSRB’s EMMA system using the six-digit CUSIP number for all issues other than the County’s Certificates of Participation, Series 2014 (Convention Center Hotel Project), CUSIP No. 23225P. The Annual Information Statement for 2014 was filed using CUSIP No. 23225P on October 5, 2015, five business days after the due date.

The Disclosure Certificate is being executed by the County to assist the Underwriter in complying with Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission. Specifically, the County agrees to provide the Annual Report to the Municipal Securities Rulemaking Board (the "MSRB") in an electronic format, if required, and to provide notice of the enumerated events to the MSRB in an electronic format, if required.

CONCLUDING STATEMENT

To the extent that any statements made in this Official Statement involve matters of opinion or estimates, whether or not expressly stated to be such, they are made as such and not as representations of fact or certainty, and no representation is made that any of such statements will be realized. Information herein has been derived by the County from official and other sources and is believed by the County to be reliable, but information other than that obtained from official records of the County has not been independently confirmed or verified by the County and its accuracy is not guaranteed.

Neither this Official Statement nor any statement which may have been made orally or in writing is to be construed as or as part of a contract with the original purchasers or holders of the Series 2015A Bonds.

This Official Statement has been duly prepared and delivered by the County by direction of the Council.

COUNTY OF CUYAHOGA, OHIO

By: /s/ Armond Budish Armond Budish, County Executive

By: /s/ Dennis G. Kennedy Dennis G. Kennedy, County Fiscal Officer

APPENDIX A SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE

The following is a summary of certain provisions of the Trust Indenture and Supplemental Indenture No. 2. This summary does not purport to be complete. Reference is made to the complete text of those documents, copies of which are available at the corporate trust office of the Trustee.

Definition of Certain Terms

When used in the Official Statement and in the Appendices thereto, the following terms have the meanings set forth below. Additional terms used herein are more fully defined in the Trust Indenture and Supplemental Indenture No. 2, copies of which are available from the Underwriter upon request.

"Act" means Chapter 133 of the Ohio Revised Code, as enacted or amended from time to time.

"Additional Bonds" means any Bonds issued on a parity with the Series 2015A Bonds upon the terms and conditions set forth in Article II of the Indenture.

"Bond Fund" means the Bond Fund created by Section 5.01 of the Indenture, including the Interest Payment Account, the Principal Payment Account, the Capitalized Interest Account, the Redemption Account and the Defeasance Account therein, and any other accounts or subaccounts created thereon by a Supplemental Indenture.

"Bond Legislation" means when used with reference to the Bonds, any resolution or ordinance adopted by the Legislative Authority providing for the issuance of the Bonds, including without limitation, any Certificate of Award that is required to be executed prior to the issuance of the Bonds by the Bond Legislation, all as amended or supplemented from time to time.

"Bond Reserve Requirement" means the amount, if any, required to be on deposit in the Bond Reserve Fund with respect to a Series of Bonds.

"Bond Service Charges" means for any applicable time period or date, including an Interest Payment Date, the principal (including any Mandatory Sinking Fund Requirements), interest, and redemption premium, if any, required to be paid by the Issuer on the Bonds pursuant to the Indenture. In determining Bond Service Charges accruing for any period or due and payable on any date, Mandatory Sinking Fund Requirements accruing for that period or due on that date shall be included and principal maturities for which, and to the extent, Mandatory Sinking Fund Requirements were imposed in a prior period or for a prior date shall be excluded.

"Bonds" means the Issuer's Series 2015A Bonds, the Series 2014 Bonds, and any Additional Bonds or Series of Bonds authorized by legislation adopted by the Issuer and issued pursuant to the Indenture.

"Book entry form" or "book entry system" means, with respect to the Bonds, a form or system, as applicable, under which (i) the Beneficial Ownership Interests may be transferred only through a book entry and (ii) physical Bond certificates in fully registered form are registered only in the name of a Depository or its nominee as Bondholder, with the physical Bond certificates "immobilized" in the custody of the Depository. The book entry system, maintained by and the responsibility of the Depository and not maintained by or the responsibility of the Issuer or the Trustee, is the record that identifies, and records the transfer of the interests of, the owners of book entry interests in the Bonds.

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"Business Day" means any day of the year other than (i) a Saturday or a Sunday, (ii) a day on which the Trustee is required or is authorized to close or is not prohibited from closing, by law (including without limitation, executive orders) and is closed, (iii) any day on which the Federal Reserve Bank of Cleveland is closed, or (iv) a day on which the Depository is closed.

"Capitalized Interest Account" means the Capitalized Interest Account in the Bond Fund created by Section 5.01 of the Indenture. "Certificate of Award" means a Certificate of Award executed by any Authorized Official or the Fiscal Officer, pursuant to the Bond Legislation, setting forth and determining those terms and other matters pertaining to a series of Bonds and their issuance, sale and delivery as the Bond Legislation authorizing their issuance provides may or shall be set forth or determined therein.

"Clerk" means the Clerk of the Legislative Authority.

"Costs of Issuance Account" means the Costs of Issuance Account in the Revenue Fund created by Section 5.01(b) of the Indenture.

"Council" means the County Council, the Legislative Authority of the Issuer.

"Counsel" means an attorney duly admitted to practice law before the highest court of any state and, without limitation, may include independent or in-house legal counsel for the County or the Trustee.

"County" means the County of Cuyahoga, Ohio.

"County Sales Tax" means the one and one-quarter percent (1.25%) County Sales Tax authorized under Sections 5739.021 and 5741.021 of the Ohio Revised Code pursuant to the County Sales Tax Resolutions.

"County Sales Tax Resolutions" means (i) the resolution authorizing the Continuing County Sales Tax, (ii) the resolution adopted by the Board on July 26, 2007, authorizing an increase in the County sales and use taxes to a rate of one and one-quarter percent (1.25%); and (iii) any renewals or extensions thereof, for the purpose of providing additional general revenues for the County.

"County Sales Tax Receipts" means the monies received by the County from the County Sales Tax.

"Credit Facility" means a letter of credit and may include a confirming letter of credit or similar credit facility issued by a Credit Facility Provider which, by its terms, shall secure the payment of the principal of and interest on the Bonds when due and the Tender Price of tendered Eligible Bonds, to the extent such Tender Price is not paid from proceeds of remarketing such tendered Eligible Bonds, delivered to the Trustee.

"Depository" means any securities depository that is a clearing agency under federal law operating and maintaining, with its participants or otherwise, a book entry system to record ownership of book entry interests in Bonds, and to effect transfers of book entry interests in Bonds in book entry form, and includes and means initially The Depository Trust Company (a limited purpose trust company), New York, New York.

"Eligible Investments" means, to the extent permitted by law:

(a) U.S. Treasury Bills, notes, and bonds.

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(b) Various federal agency securities including issues of the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corp. (FHLMC), Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Student Loan Marketing Association (SLMA), Government National Mortgage Association (GNMA), and other agencies or instrumentalities of the United States. Eligible Investment include securities that may be "called" (by the issuer) prior to the final maturity date. Any Eligible Investment may be purchased at a premium or a discount (all federal agency securities shall be direct issuances of federal government agencies or instrumentalities).

(c) Commercial paper issues of companies incorporated under the laws of the United States or any state, provided that such companies are rated "A" or better by at least one Rating Agency.

(d) Bankers acceptances issued by any bank domiciled in the State of Ohio or bankers acceptances issued by any domestic bank rated in the highest category by at least one Rating Agency.

(e) Money market mutual funds, investing exclusively in the same types of eligible securities as defined above.

(f) Repurchase agreements.

(g) Federal funds.

(h) Certificates of deposit up to a maximum of $100,000 per issuer.

(i) Corporate notes or bonds rated, at the time of purchase, "A" or better by any Rating Agency.

In determining whether the rating assigned by Moody's or S&P to an investment complies with the rating categories provided in this definition, the rating category shall be determined without regard to any numerical or plus or minus modifier, unless otherwise expressly provided in this definition.

"Event of Default" means any of the events described in Section 7.01 of the Indenture.

"Favorable Opinion of Bond Counsel" means an unqualified Opinion of Bond Counsel to the effect that the action proposed to be taken (or failure to take such action) is permitted under the Indenture and will not, in and of itself, adversely affect the validity or enforceability of the Bonds and interest on the Series 2015A Bonds to remain excluded from gross income.

"Fiscal Officer" means the Fiscal Officer of the Issuer, including any acting or interim fiscal officer of the Issuer or any person acting on behalf of the Fiscal Officer by written authorization signed by the Fiscal Officer.

"Fiscal Year" means the twelve month period ending December 31 of each year.

"Flow of Funds" means the Flow of Funds Memorandum delivered to the Issuer and the Trustee at the time and issuance and delivery of the Series 2015A Bonds, as the same may be amended or supplemented in accordance with its terms, as approved by the Issuer.

"Funds" means any of the funds created by or referred to in Section 5.01 of the Indenture.

"Holder" means the Person in whose name a Bond is registered on the Bond Register.

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"Indenture" means the Trust Indenture, as the same may be amended or supplemented, together with Supplemental Indenture No. 1 and Supplemental Indenture No. 2, together with, where the context permits, any additional Supplemental Indentures.

"Interest Payment Account" means the Interest Payment Account in the Bond Fund created by Section 5.01 of the Indenture.

"Interest Payment Date" means (a) as to the Series 2015A Bonds, the first day of each June and December, and (b) as to any other Series of Bonds, any date on which interest is to be paid on the Bonds, or any date defined as an Interest Payment Date in a Supplemental Indenture.

"Issuer" means the County of Cuyahoga, Ohio, a county and political subdivision in and of the State.

"Legal Officer" means the Director of Law.

"Liquidity Facility" means a standby bond purchase agreement, letter or line of credit or similar liquidity facility issued by a Liquidity Facility Provider which, by its terms, provides for the payment of the Tender Price of Bonds tendered and not remarketed, furnished by the Issuer to the Tender Agent, including any Substitute Liquidity Facility, which Liquidity Facility and all agreements relating to the obligation to reimburse the Liquidity Facility Provider for draws thereunder, if any, shall be approved by the Issuer.

"Mandatory Redemption Dates" means the dates specified in the Certificate of Award on which the Bonds are to be redeemed.

"Mandatory Sinking Fund Requirements" means the amounts required by the Certificate of Award or applicable Supplemental Indenture to be deposited in the Bond Fund and credited to the Principal Payment Account in any year for the purpose of retiring principal amounts of Bonds which would have been due and payable, except for such prior mandatory redemption requirements or retirement as provided in the Certificate of Award or applicable Supplemental Indenture, in any subsequent year.

"Maximum Rate" means twenty-five percent (25%) per annum or, with respect to any Bonds in a Fixed Rate Period, the maximum rate set forth in the applicable Bond Legislation.

"Opinion of Bond Counsel" means an Opinion of Counsel, which shall be Bond Counsel, containing the opinion specifically required by the provisions of the Indenture.

"Opinion of Counsel" means a written opinion of Independent Counsel who is not objected to by the Issuer, in form and substance not objected to by the Issuer, the Credit Facility Provider, if any (but only if the Credit Facility Provider is an addressee of such opinion pursuant to the Reimbursement Agreement or the Indenture) or the Liquidity Facility Provider, if any (but only if the Liquidity Facility Provider is an addressee of such opinion pursuant to the Liquidity Facility or the Indenture).

"Original Purchaser" means, as to any series of Bonds, the Person designated as the Original Purchaser in the applicable Bond Legislation, Certificate or Award or Supplemental Indenture.

"Outstanding Bonds," "Bonds outstanding" or "outstanding" as applied to the Bonds mean, as of the applicable time, all Bonds which have been authenticated and delivered, or which are being delivered, by the Trustee under the Indenture, except:

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(a) Bonds canceled upon surrender, exchange or transfer, or canceled because of payment or redemption at or prior to that time;

(b) Bonds, or the portion thereof, for the payment, redemption or purchase for cancellation of which sufficient moneys have been irrevocably deposited with the Trustee or any Paying Agents on or prior to that time for that purpose (whether upon or prior to the maturity or redemption date of those Bonds); provided, that if any of those Bonds are to be redeemed prior to their maturity, either notice of that redemption shall have been given, irrevocable arrangements satisfactory to the Trustee shall have been made for giving notice of that redemption, or waiver by the affected Holders of that notice, satisfactory in form to the Trustee, shall have been filed with the Trustee;

(c) Bonds, or the portion thereof, which are deemed to have been paid and discharged or caused to have been paid and discharged pursuant to the provisions of the Indenture;

(d) Bonds in lieu of which others have been authenticated under the Indenture, other than with respect to lost or wrongfully taken Bonds; and

(e) Bonds deemed tendered pursuant to any Supplemental Indenture.

"Paying Agent" means, as to Bonds and the Trustee, any commercial bank with trust powers or trust companies designated as paying agencies or places of payment for Bonds by or pursuant to the applicable Bond Legislation, and their successors designated pursuant to the Indenture.

"Person" or words importing persons means firms, associations, partnerships, joint ventures, societies, estates, trusts, corporations, public or governmental bodies, other legal entities and natural persons.

"Principal Payment Date" means, (a) as to the Series 2015A Bonds, the first day of each December commencing December 1, 2018, and (b) as to any other Series of Bonds, the date specified in the Bond Legislation or Supplemental Indenture pertaining to such Bonds.

"Principal Payment Account" means the Principal Payment Account established in Section 5.01 of the Indenture.

"Registrar" means, as to the Bonds, the Trustee, until a successor Registrar shall have been named pursuant hereto provided that the Registrar shall be a transfer agent registered in accordance with Section 17A(c) of the Securities Exchange Act of 1934, as amended.

"Revenue Fund" means the Revenue Fund created by Section 5.01(a) of the Indenture, including the Cost of Issuance Account.

"Revenues" means (a) the amount of County Sales Tax Receipts received by the Trustee and any other moneys deposited in the Revenue Fund, (b) the amount of any county sales tax receipts received by the County from any future additional county sales taxes imposed pursuant to under Sections 5739.021 and 5741.021 of the Ohio Revised Code, and (c) all income and profit from the investment of the foregoing moneys.

"Series 2014 Bonds" means the County's $137,890,000 Various Purpose Sales Tax Revenue Bonds, Series 2014, dated December 17, 2014 and issued pursuant to the Trust Indenture and Supplemental Indenture No. 1.

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"Series 2015A Bonds" means the Issuer's $9,180,000 Sales Tax Revenue Bonds, Series 2015A (Public Square Project), dated December 14, 2015 and issued pursuant to the Trust Indenture and Supplemental Indenture No. 2.

"Series 2015A Interest Payment Subaccount" means the Series 2015A Interest Payment Subaccount in the Interest Payment Account of the Bond Fund created by Supplemental Indenture No. 2.

"Series 2015A Public Improvement Fund" means the Series 2015A Public Improvement Fund created by Supplemental Indenture No. 2.

"Series 2015A Principal Payment Subaccount" means the Series 2015A Principal Payment Subaccount in the Principal Payment Account of the Bond Fund created by Supplemental Indenture No. 2.

"Series 2015A Private Improvement Fund" means the Series 2015A Private Improvement Fund created by Supplemental Indenture No. 2.

"Series 2015A Project" means, constructing, reconstructing, refurbishing, renovating and improving permanent improvements to publicly owned park space known as Public Square, together with all necessary appurtenances and work incidental thereto.

"Series 2015A Rebate Account" means the Series 2015A Rebate Account in the Rebate Fund created by Supplemental Indenture No. 2.

"Series 2015A Redemption Subaccount" means the Series 2015A Redemption Subaccount in the Redemption Account of the Bond Fund created by Supplemental Indenture No. 2.

"Series 2015A Service Payments Fund" means the Series 2015A Service Payments Fund created by Supplemental Indenture No. 2.

"Special Funds" means the Revenue Fund and the Bond Fund (including the Accounts therein) and any other funds or accounts established under the Indenture.

"Special Record Date" means, with respect to any Bond, the date established by the Trustee in connection with the payment of overdue interest on that Bond pursuant to Section 3.05 of the Indenture.

"State" means the State of Ohio.

"Supplemental Indenture" means any indenture supplemental to the Indenture entered into between the Issuer and the Trustee in accordance with Article X of the Indenture.

"Supplemental Indenture No. 1" means Supplemental Trust Indenture No. 1, dated as of December 1, 2014, by and between the County and the Trustee and relating to the issuance of the Series 2014 Bonds and any amendment or supplement thereto.

"Supplemental Indenture No. 2" means Supplemental Trust Indenture No. 2, dated as of December 14, 2015, by and between the Issuer and the Trustee and relating to the issuance of the Series 2015A Bonds and any amendment or supplement thereto.

"Trustee" means the Trustee under the Indenture, initially, The Huntington National Bank, and any successor Trustee as determined or designated hereunder or pursuant to the Indenture.

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"Trust Indenture" means the Trust Indenture dated as of December 1, 2014 by and between the County and the Trustee.

Indenture

The following, in addition to information contained above under the heading "THE SERIES 2015A BONDS" and "SECURITY AND SOURCES OF PAYMENTS", summarizes certain provisions of the Indenture to which document reference is made for the detailed provisions thereof.

So long as the Series 2015A Bonds are immobilized in a Book-Entry System with a Depository, that Depository or its nominee is for all purposes of the Indenture considered by the Issuer and the Trustee to be the Holder of those Series 2015A Bonds and the Book Entry Interest Owners of the Series 2015A Bonds will not be considered Holder of the Series 2015A Bonds and have no right as Holders under the Indenture. See "THE SERIES 2015A BONDS - Registration, Payment and Transfer" and "BOOK-ENTRY ONLY SYSTEM."

Security

The Indenture provides for a pledge of the Revenues and the amounts deposited in the Special Funds, and shall be secured only by the Indenture granting a lien upon the Revenues and such amounts in the Special Funds, to the Trustee for the benefit of the Holders of the Series 2015A Bonds. See "SECURITY AND SOURCES OF PAYMENTS."

Funds and Accounts

The Indenture establishes the following funds and accounts to be held by the Trustee and used for specific purposes thereunder:

(a) the Revenue Fund, which includes the "Cost of Issuance Account";

(b) the Bond Fund, which includes the "Interest Payment Account," the "Principal Payment Account," the "Capitalized Interest Account," the "Redemption Account", and the "Defeasance Account";

(d) the Rebate Fund.

Supplemental Indenture No. 2 establishes the following accounts and subaccounts for the Series 2015A Bonds to be held by the Trustee and used for specific purposes thereunder:

(a) The Series 2015A Project Fund designated “Cuyahoga County Sales Tax Series 2015A Project Fund;”

(b) The Series 2015A Service Payments Fund designated “Cuyahoga County Sales Tax Series 2015A Service Payments Fund;”

(c) The Series 2015A Public Improvement Fund designated “Cuyahoga County Sales Tax Series 2015A Public Improvement Fund;”

(d) The Series 2015A Private Improvement Fund designated “Cuyahoga County Sales Tax Series 2015A Private Improvement Fund;”

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(e) in the Principal Payment Account of the Bond Fund, the "Series 2015A Principal Payment Subaccount;"

(f) in the Interest Payment Account of the Bond Fund, the "Series 2015A Interest Payment Subaccount;"

(g) in the Capitalized Interest Account of the Bond Fund, the "Series 2015A Capitalized Interest Subaccount;"

(h) in the Redemption Account of the Bond Fund, the "Series 2015A Redemption Subaccount;"

(i) in the Cost of Issuance Account of the Revenue Fund, the "Series 2015A Cost of Issuance Subaccount;" and

(j) in the Rebate Fund, the "Series 2015A Rebate Account."

Allocation of the Proceeds of the Bonds

The proceeds of the sale of the Series 2015A Bonds shall be allocated and deposited by the Trustee as follows:

(a) to the Series 2015A Capitalized Interest Subaccount, the amount of $395,673.32 to pay Capitalized Interest on the Series 2015A Bonds during the Capitalized Interest Period;

(b) the Underwriter shall retain $171,057.18 to pay costs of issuance; and

Series 2015A Service Payments Fund

From time to time, and in accordance with the terms of the Cooperative Agreement, the Trustee shall receive Assigned Service Payments from the City for deposit in the Series 2015A Service Payments Fund. Upon receipt of the Assigned Service Payments, (1) the Trustee shall calculate the sum of 125% of the amount of interest to become due on the Series 2015A Bonds on the next succeeding Interest Payment Date and 125% of the amount of principal to become due on the Series 2015A Bonds on the next succeeding Principal Payment Date (together, the “Coverage Amount”), and (2) any amount on deposit in the Series 2015A Service Payments Fund in excess of the Coverage Amount, shall be transferred by the Trustee, FIRST, to the County, in the amount necessary to reimburse the County for the payment of any Bond Service Charges on the Series 2015A Bonds from Revenues; SECOND, to the Public Improvement Fund, in an amount necessary to provide that the balance in the Public Improvement Fund is equal to the Adjusted Funding Level; and THIRD, any remaining amount to the Private Improvement Fund.

Amounts on deposit in the Series 2015A Service Payments Fund only secure the Series 2015A Bonds and do not secure any other Bonds issued under the Indenture.

Revenue Fund

The Issuer covenants that it shall, irrevocably, at all times direct the Tax Commissioner or other appropriate official of the State to convey the County Sales Tax by electronic funds transfer directly to the

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Revenue Fund. Notwithstanding any other ordinance, resolution or action to the contrary, all of the County Sales Tax received by or on behalf of the Issuer from and after the date of delivery of the Series 2015A Bonds to the Original Purchaser shall be deposited into the Revenue Fund immediately upon receipt by the Trustee. So long as any Bonds are outstanding, the County Sales Tax shall be appropriated for the purposes set forth in the Indenture, and the Issuer shall take whatever action is required to make, affirm or ratify such appropriation.

Except with respect to the Series 2015A Bonds as provided in Supplemental Indenture No. 2 and described below under Bond Fund, the Trustee shall deposit Revenues and all other moneys received by the Trustee under and pursuant to the provisions of the Indenture to be paid into the Funds and Accounts, as follows: (i) first, to deposit into the Interest Payment Account of the Bond Fund in each December, January, February, March, June, July, August and September, one-fourth (1/4) of the amount, if any, which will be necessary, after all moneys in the Capitalized Interest Account of the Bond Fund have been transferred to the Interest Payment Account of the Bond Fund, to pay interest on the Series 2015A Bonds due on the next succeeding Interest Payment Date, plus the amount of any shortfall of previous deposits; (ii) to deposit into the Principal Payment Account of the Bond Fund in each December, January, February, March, April, May, June, July, August and September, one-tenth (1/10) of the amount, if any, which when added to the amount already within such account, will be sufficient to pay the principal amount due on maturity or upon mandatory sinking fund redemption of the Series 2015A Bonds on the next succeeding Principal Payment Date, plus the amount of any shortfall of previous deposits; (iii) to provide into the Bond Reserve Fund, an amount which, when added to the amount already within such account, will be equal to the Bond Reserve Requirement, if any, for each series of Bonds outstanding; (iv) to provide to the Trustee, an amount equal to the Trustee's fees and expenses under the Indenture then due and payable; and (v) to provide such amount in addition to any of the foregoing allocations as may be necessary, after meeting the requirements of subsections (i), (ii), (iii) and (iv) above to make up any deficiency in any such allocation. Any balance shall be paid monthly to the Issuer.

Upon the written request of the Issuer in accordance with the Flow of Funds Memorandum, the Trustee shall make disbursements from the Costs of Issuance Fund to pay the fees and expenses incurred in connection with the issuance of the Bonds, including without limitation the Trustee's Fee. The money and Eligible Investments held to the credit of the Costs of Issuance Fund shall not constitute part of the Revenues. On the earlier of (a) six months from the date of the Indenture, or (b) the date when all fees, charges and expenses relating to the issuance of the Bonds have been paid or provision for their payment has been made, as certified to the Trustee by the Issuer, the Trustee shall transfer any balance remaining in the Series 2015A Account of the Costs of Issuance Fund to the Revenue Fund and shall close the Series 2015A Account of the Cost of Issuance Fund.

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Bond Fund

The Bond Fund and accounts therein and the moneys and investments therein shall be used solely and exclusively for the payment of Bond Service Charges and the purchase price of Bonds as they become due at stated maturity, by redemption or pursuant to any Mandatory Sinking Fund Requirements or otherwise all as provided in the Indenture; provided, that no part thereof (other than moneys in the Defeasance Account or the Redemption Account) shall be used to redeem any Bonds prior to maturity, except as may be provided otherwise in the Indenture. Amounts in the Interest Payment Account and the Principal Payment Account shall be used to pay principal of and interest on the Bonds, respectively, as such principal and interest become due. All amounts deposited in the Capitalized Interest Account shall be transferred to the Interest Payment Account to make payment of interest on the applicable Bonds as such interest becomes due and payable. All amounts deposited to pay and discharge the Bonds pursuant to Section 9.02 of the Indenture, including amounts necessary to pay any redemption premium, shall be deposited directly into the Defeasance Account, which account shall hold no other moneys. All amounts deposited to pay premiums on the Bonds shall be deposited directly into the Redemption Account, which account shall hold no other moneys. The Issuer shall have no right or interest in the Redemption Account, the Defeasance Account, any special account or subaccount so restricted by the applicable Supplemental Indenture or the moneys and Eligible Investments therein, all of which shall be held in trust by the Trustee for the sole benefit of the Holders.

The Trustee shall establish separate subaccounts within the Redemption Account and the Defeasance Account for each deposit (including any investment income thereon) made into such account of the Bond Fund so that the Trustee may at all times ascertain the date and source of deposit of the funds in such accounts

The Trustee shall transmit to any Paying Agent, from money in the Bond Fund, amounts sufficient to make timely payments of Bond Service Charges to be made by the Paying Agent then due and payable. To the extent that the amount needed by any Paying Agent is not sufficiently predictable, the Trustee may make any credit arrangements with that Paying Agent that will permit those payments to be made.

With respect to the Series 2015A Bonds, all moneys deposited by the Trustee into the Series 2015A Service Payments Fund and into the Revenue Fund shall be applied by the Trustee as follows:

(a) Series 2015A Interest Payment Subaccount: (i) the Trustee shall deposit into the Series 2015A Interest Payment Subaccount, within one (1) Business Day after receipt thereof by the Trustee, from the Series 2015A Service Payments Fund to the extent sufficient, an amount equal to the interest to become due on the Series 2015A Bonds on the next succeeding Interest Payment Date; provided that no such payment need be made to the extent that moneys are on hand in the Series 2015A Interest Payment Subaccount or have been transferred to such Subaccount from the Series 2015A Capitalized Interest Subaccount for that purpose; (ii) to the extent sufficient funds are not available to pay the amount due and payable on the Interest Payment Date, the Trustee shall deposit into the Series 2015A Interest Payment Subaccount, from the Series 2015A Public Improvement Fund, the amount required to make up such deficiency; and (iii) the Trustee shall deposit into the Series 2015A Interest Payment Subaccount, within one (1) Business Day after receipt thereof by the Trustee in each of the months December, January, February, March, June, July, August and September commencing with January 2016, from Revenues, an amount equal to one-fourth (1/4) of the interest to become due on the Series 2015A Bonds on the next succeeding Interest Payment Date thereon; provided that no such payment need be made to the extent that moneys are on hand in the Series 2015A Interest Payment Subaccount or have been transferred to such Subaccount from the Series 2015A Capitalized Interest Subaccount for that purpose.

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Moneys in the Series 2015A Interest Payment Subaccount shall be used to pay interest on the Series 2015A Bonds as it becomes due.

(b) Series 2015A Principal Payment Subaccount: (i) the Trustee shall deposit into the Series 2015A Principal Payment Subaccount, within one (1) Business Day after receipt thereof by the Trustee, from the Series 2015A Service Payments Fund, an amount equal to the principal to become due on the Series 2015A Bonds on the next succeeding Principal Payment Date, whether at maturity or by mandatory sinking fund redemption; provided that no such payment need be made to the extent that moneys are on hand in the Series 2015A Principal Payment Subaccount for that purpose; (ii) to the extent sufficient funds are not available to pay the amount due and payable on the Principal Payment Date, the Trustee shall deposit into the Series 2015A Principal Payment Subaccount, from the Series 2015A Public Improvement Fund, the amount required to make up such deficiency; and (iii) the Trustee shall deposit into the Series 2015A Principal Payment Subaccount, within one (1) Business Day after receipt thereof by the Trustee in each of the months December, January, February, March, April, May, June, July, August and September, commencing with January 2016, from Revenues, an amount equal to one-tenth (1/10) of the principal coming due on the Series 2015A Bonds on the next succeeding Principal Payment Date, whether at maturity or by mandatory sinking fund redemption; provided that no such payment need be made to the extent that moneys are on hand in the Series 2015A Principal Payment Subaccount for that purpose. Moneys in the Series 2015A Principal Payment Subaccount shall be used to pay principal on the Series 2015A Bonds as it becomes due.

Series 2015A Public Improvement Fund

The Trustee shall deposit amounts in the Public Improvement Fund, from time to time, in accordance with the Cooperative Agreement and pursuant to Indenture. The Trustee shall withdraw funds from the Series 2015A Public Improvement Fund to the extent that there are insufficient funds in the Bond Fund to pay principal of and interest on the Series 2015A Bonds when due. The Trustee also shall disburse funds from the Series 2015A Public Improvement Fund upon receipt of a requisition from the County to pay costs of additional improvements to the Series 2015A Project. Upon the payment and discharge of all of the Series 2015A Bonds, the Trustee shall transfer any amounts remaining in the Series 2015A Public Improvement Fund to the City, for deposit in a capital improvement fund dedicated to improvements to Public Square.

Series 2015A Private Improvement Fund

Moneys in the Series 2015A Private Improvement Fund are generally available to be drawn by the Owner, or any affiliate of the Owner that may become an Owner of the TIF Property, to pay the costs of capital improvements to the TIF Property that are constructed after the issuance of the Series 2015A Bonds and prior to the payment and discharge of the Series 2015A Bonds, provided that those improvements are consistent with state and local law and are authorized under the TIF Ordinance. Upon the payment and discharge of all of the Series 2015A Bonds, the Trustee shall transfer any amounts remaining in the Series 2015A Private Improvement Fund to the City, for deposit in a capital improvement fund dedicated to improvements to Public Square.

Bond Reserve Fund

If and to the extent provided for in any Supplemental Indenture, a Bond Reserve Fund, with an appropriate designation, shall be created as a special account applicable to the Bonds to which that Supplemental Indenture applies. The Bond Reserve Fund shall, as provided in the Supplemental Indenture, be established in the custody of the Trustee. A Bond Reserve Fund is a trust fund and is pledged to and shall be used, as provided in the Indenture and the applicable Supplemental Indenture,

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solely for the payment of Bond Service Charges on the Bonds to which that Bond Reserve Fund pertains. No Bond Reserve Fund deposit is required for the Series 2015A Bonds.

Rebate Fund

Amounts credited to the Rebate Fund shall be free and clear of any lien under the Indenture. A separate account shall be created in the Rebate Fund for each series of the Bonds and, to the extent required by the Code, any calculations and payments described below shall be made as to each series of Bonds. Moneys and investments in the Rebate Fund are not Revenues and shall be invested pursuant to the procedures and in the manner provided for investment of moneys in the Special Funds.

For the Bonds constituting a separate tax-exempt issue for purposes of the Code, within thirty (30) days after the end of every fifth Bond Year and within thirty (30) days after the payment in full of all outstanding Bonds, the Issuer shall calculate or cause to be calculated the Rebate Amount as of the end of that Bond Year or the date of such payment in full and shall provide copies of such calculation to the Trustee. Upon the occurrence of an Event of Default and at the request of the Trustee, the Issuer shall calculate or cause to be calculated the Rebate Amount as of the date requested by the Trustee and provide such calculation to the Trustee on or before the date so requested. In either event, the Trustee shall notify the Issuer in writing of the amount then on deposit in the applicable account in the Rebate Fund. If the amount then on deposit in the applicable account in the Rebate Fund is in excess of the Rebate Amount (less the Rebate Amounts, if any, previously paid to the United States pursuant to the Indenture), the Trustee shall forthwith pay that excess amount to the Issuer. If the amount then on deposit in the applicable account in the Rebate Fund is less than the Rebate Amount (less the Rebate Amounts, if any, previously paid to the United States pursuant to the Indenture), the Issuer shall, within five (5) days after receipt of the aforesaid notice from the Trustee, pay to the Trustee for deposit in the Rebate Fund an amount sufficient to cause the applicable account in the Rebate Fund to contain an amount equal to the Rebate Amount (less the Rebate Amounts, if any, previously paid to the United States pursuant to the Indenture). Within thirty-five (35) days after the end of the fifth Bond Year and every fifth Bond Year thereafter as to the Special Funds, upon the written direction of the Issuer, the Trustee, acting on behalf of the Issuer, shall pay to the United States in accordance with Section 148(f) of the Code from the moneys then on deposit in the applicable account in the Rebate Fund an amount equal to ninety percent (90%) (or such greater percentage not in excess of one hundred percent (100%) as the Issuer may direct the Trustee to pay) of the Rebate Amount as of the end of such fifth Bond Year (less the Rebate Amounts, if any, previously paid to the United States pursuant to this Section). Within sixty (60) days after the payment in full of all outstanding Bonds, upon the written direction of the Issuer, the Trustee shall pay to the United States in accordance with Section 148 of the Code from the moneys then on deposit in the applicable account in the Rebate Fund an amount equal to one hundred percent (100%) of the Rebate Amount as of the date of such payment (less the Rebate Amounts, if any, previously paid to the United States pursuant to this Section). Any moneys remaining in the applicable account in the Rebate Fund following such payment shall be paid to the Issuer.

Supplemental Trust Indentures

Without the consent of or notice to the Holders, but with the consent of any Person required by an applicable Supplement Indenture, the Issuer and the Trustee may enter into supplemental indentures as shall not be inconsistent with the terms and provisions of the Indenture, for any one or more of the following purposes: (i) to cure any ambiguity, inconsistency or formal defect or omission in the Indenture; (ii) to grant to or confer upon the Trustee for the benefit of the Holders any additional rights, remedies, powers or authority that lawfully may be granted to or conferred upon the Holders or the Trustee; (iii) to pledge or assign additional revenues and/or under the Indenture; (iv) to add to the covenants and agreements of the Issuer under the Indenture other covenants and agreements thereafter to

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be observed for the protection of the Holders, or to surrender or limit any right, power or authority reserved to or conferred upon the Issuer in the Indenture, including without limitation, the limitation of rights of redemption so that in certain instances Bonds of different series will be redeemed in some prescribed relationship to one another for the protection of the Holders of a particular series of Bonds; (v) to evidence any succession to the Issuer and the assumption by the successors of the covenants and agreements of the Issuer in the Bonds and the Indenture; (vi) to permit the use of a book entry system to identify the owner of an interest in a Bond issued by the Issuer under the Indenture, whether that obligation was formerly, or could be, evidenced by a physical security and to facilitate (a) the transfer of Bonds from one Depository to another, (b) the succession of Depositories or (c) the withdrawal of Bonds issued to a Depository for use in a book entry system and the issuance of replacement Bonds in fully registered form to others than a Depository; (vii) to permit the Trustee to comply with any obligations imposed upon it by law; (viii) to specify further the duties and responsibilities of, and to define further the relationship among, the Trustee, the Registrar and any Authenticating Agents or Paying Agents; (ix) to achieve compliance of the Indenture with any applicable federal securities or tax law; (x) to make amendments to the provisions hereof relating to arbitrage matters under Section 148 of the Code, if, in the Opinion of Bond Counsel, those amendments would not cause the interest on Bonds outstanding to become included in gross income of Holders for federal income tax purposes which amendments may, among other things, change the responsibility for making the relevant calculations; (xi) to permit any amendments required by any Rating Service in order to obtain a rating on the Bonds from such Rating Service; (xii) in connection with the issuance of Bonds, including provisions for Bonds in forms other than fully registered Bonds and for amendments of this Indenture relating to Bonds and the rights of the Holders of Bonds issued in those forms not inconsistent with the provisions of this Indenture applying to the rights of owners of fully registered Bonds and other Persons, if in the opinion of nationally recognized bond counsel those provisions would not result in the interest on any of the Bonds outstanding becoming subject to federal income taxation; (xiii) to permit any amendments related to credit enhancement, including but not limited to letters of credit and bond insurance, of the Bonds; and (xiv) to permit any other amendment that, in the judgment of the Trustee, is not to the prejudice of the Trustee or the Holders.

In addition, with the consent of the Holders of not less than a majority in aggregate principal amount of the Bonds then outstanding, evidenced as provided in the Indenture and the prior written consent of any other Person specified by a Supplemental Indenture, the Issuer and the Trustee may sign and deliver Supplemental Indentures adding any provisions to, changing in any manner or eliminating any of the provisions of the Indenture or any Supplemental Indenture or restricting in any manner the rights of the Holders, provided that no Supplemental Indenture may be entered into which provides for:

(a) without the consent of the Holder of each Bond so affected, (i) an extension of the maturity of the principal of or the interest on any Bond; (ii) a reduction in the principal amount of any Bond or the rate of interest or premium thereon; (iii) the creation of a right in the Issuer to call any Bond for redemption prior to its maturity, or the advancement of the time or reduction of the redemption price at which any existing right of the Issuer to call Bonds for redemption may be exercised; (iv) a reduction in the amount or extension of the time of payment of any Mandatory Sinking Fund Redemption Requirements; (v) a decrease in any amounts to be paid, or extension of any time for payments under a Credit Facility or a Liquidity Facility or (vi) a change in the timing of the draws under a Credit Facility or a Liquidity Facility; or

(b) without the consent of the Holders of all Bonds then outstanding, (i) the creation of a privilege or priority of any Bond or Bonds over any other Bond or Bonds, or (ii) a reduction in the aggregate principal amount of the Bonds required for consent to a Supplemental Indenture.

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Where the consent of the Holders is required, procedures are established in the Indenture for notice to the Holders and for execution and filing of the requisite consents. Any consent shall be binding upon the Holder of the Bond giving the consent and upon any subsequent Holder of that Bond and of any Bond issued in exchange therefor, unless such consent is revoked in writing prior to the signing and delivery by the Trustee of the Supplemental Indenture. If the Holders of the required percentage in aggregate principal amount of Bonds outstanding shall have consented to the Supplemental Indenture, as provided in the Indenture, no Holder shall have any right to object to the signing or delivery of the Supplemental Indenture, any of the terms and provisions contained therein, or the operation thereof, to question the propriety of the signing and delivery thereof, or to enjoin or restrain the Trustee or the Issuer from that signing or delivery or from taking any action pursuant to the Indenture.

Events of Default and Remedies

Events of Default. The following events constitute Events of Default under the Indenture:

(a) Non-payment of any interest on any Bond when and as such interest becomes due and payable;

(b) Non-payment of the principal of or any premium on any Bond when and as such principal or premium shall become due and payable, whether at stated maturity, by redemption, pursuant to any Mandatory Sinking Fund Requirements, by acceleration or otherwise;

(c) Failure by the Issuer to observe or perform any other covenant, agreement or obligation on its part to be observed or performed contained in the Indenture or in the Bonds, which failure shall have continued for a period of sixty (60) days after written notice, by registered or certified mail, to the Issuer specifying the failure and requiring that it be remedied, which notice may be given by the Trustee in its discretion and shall be given by the Trustee at the written request of the Holders of not less than twenty-five percent (25%) in aggregate principal amount of Bonds then outstanding; or

(d) The Issuer shall: (i) commence a proceeding under any federal bankruptcy, insolvency, reorganization or similar law or (ii) have a receiver or trustee appointed for it or for the whole or any substantial part of its property.

Notwithstanding the foregoing, if, by reason of Force Majeure, the Issuer is unable to observe or perform any covenant, agreement or obligation that would give rise to an Event of Default under subsection (c) above, the Issuer shall not be deemed in default during the continuance of such inability. The Issuer, however, shall promptly give notice to the Trustee of the existence of an event of Force Majeure. The term "Force Majeure" shall mean, without limitation, the following: acts of God; winds; fires; epidemics; landslides; floods; droughts; famines; impacting space debris; strikes, lockouts or other industrial disturbances; acts or orders of any kind of any governmental authority prohibiting the Issuer from carrying on its business; new outbreak of hostilities directly involving the armed forces of the United States of America or other new national or international calamity or crises, other than such that represents the continuation, deterioration, or escalation or existing hostilities, calamities, or crises; sabotage; riots; civil disturbances; explosions; breakage or accident to transmission pipes or canals; partial or entire failure of utilities; or other similar cause or event not within the control of Issuer creating a material adverse impact on the Issuer's ability in whole or in part to carry out the agreements on Issuer's part herein contained. Issuer shall, however, use its best efforts to remedy with all reasonable dispatch the cause or causes preventing Issuer from carrying out its agreements, provided, that the Issuer shall not in any event be required to settle strikes, lockouts or other industrial disturbances by acceding to the

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demands of the opposing party or parties when such course is, in the judgment of the Issuer, not in the interest of the Issuer.

The declaration of an Event of Default under the Indenture and the exercise of remedies upon any such declaration shall be subject to any applicable limitations of bankruptcy laws affecting or precluding such declaration or exercise during the pendency of or immediately following any insolvency, bankruptcy, liquidation or reorganization proceedings.

Rights and Remedies Upon Default. Except as otherwise provided in any Supplemental Indenture, upon the occurrence of any Event of Default as described in subsections (c) or (d) above, the Trustee shall, upon the written direction of the Holders of at least twenty-five percent (25%) in aggregate principal amount of Bonds then outstanding, declare by a notice in writing delivered to the Issuer, the principal of all Bonds then outstanding (if not then due and payable), together with interest accrued thereon, to be due and payable immediately. Upon the occurrence of an Event of Default as described in subsection (a) or (b) above or specified in a Supplemental Indenture, the Trustee shall declare, by a notice in writing delivered to the Issuer, the principal of all Bonds then outstanding (if not then due and payable), and the interest accrued thereon, to be due and payable immediately. Upon any declaration as described above, the principal and interest on all Bonds then outstanding shall become and be due and payable immediately. Interest on the Bonds shall accrue to the date determined by the Trustee for the tender of payment to the Holders pursuant to that declaration. Any such declaration shall be by notice in writing to the Issuer and any other Person specified by a Supplemental Indenture, and, upon said declaration, principal and interest on all Bonds shall become and be immediately due and payable. The Trustee immediately upon such declaration shall give notice in the same manner as provided with respect to redemption of the Bonds. Such notice shall specify the date on which payment of principal and interest shall be tendered to the Holders of the Bonds.

The provisions of the preceding paragraph are subject, however, to the condition that if, at any time after declaration of acceleration and prior to the entry of a judgment in a court for enforcement under the Indenture (after an opportunity for hearing by the Issuer), (i) all sums payable under the Indenture (except the principal of and interest on Bonds which have not reached their stated maturity dates but which are due and payable solely by reason of that declaration of acceleration), plus interest to the extent permitted by law on any overdue installments of interest at the rate borne by the Bonds in respect of which the default shall have occurred, shall have been duly paid or provision shall have been duly made therefor by deposit with the Trustee or Paying Agents, and (ii) all existing Events of Default shall have been cured, then and in every case, the Trustee shall waive the Event of Default and its consequences and shall rescind and annul that declaration. No waiver or rescission and annulment shall extend to or affect any subsequent Event of Default or shall impair any rights consequent thereon.

Upon the occurrence and continuance of an Event of Default, the Trustee may, as an alternative or in addition to acceleration of the Bonds, pursue any available remedy to enforce the payment of Bond Service Charges or the observance and performance of any other covenant, agreement or obligation under the Indenture. If, upon the occurrence and continuance of an Event of Default, the Trustee is requested so to do by the Holders of at least twenty-five percent (25%) in aggregate principal amount of Bonds then outstanding, the Trustee subject to the provisions of the Indenture and to any direction by the Holders of a majority of the aggregate principal amount of the Bonds then outstanding as to the method and place of conducting proceedings to be taken in connection with the enforcement of the terms and conditions of the Indenture), shall exercise any rights and powers conferred by the Indenture.

No delay in exercising or omission to exercise any remedy, right or power accruing upon any default or Event of Default shall impair that remedy, right or power or shall be construed to be a waiver of any default or Event of Default or acquiescence therein. Every remedy, right and power may be exercised

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from time to time and as often as may be deemed necessary or desirable. No waiver of any default or Event of Default under the Indenture, whether by the Trustee or by the Holders, shall extend to or shall affect any subsequent default or Event of Default or shall impair any remedy, right or power consequent thereon.

All rights of action (including without limitation, the right to file proof of claims) under the Indenture or under any of the Bonds may be enforced by the Trustee without the possession of any of the Bonds or the production thereof in any trial or other proceeding relating thereto. Any suit or proceeding instituted by the Trustee shall be brought in its name as Trustee without the necessity of joining any Holders as plaintiffs or defendants. Any recovery of judgment shall be for the benefit of the Holders of the outstanding Bonds, subject to the provisions of the Indenture.

Right and Remedies of Holders. A Holder shall not have any right to institute any suit, action or proceeding for the enforcement of the Indenture, for the execution of any trust thereof, or for the exercise of any other remedy under the Indenture, unless: (i) there has occurred and is continuing an Event of Default of which the Trustee has been notified or of which it is deemed to have notice under the Indenture; (ii) the Holders of at least twenty-five percent (25%) in aggregate principal amount of Bonds then outstanding shall have made written request to the Trustee and shall have afforded the Trustee reasonable opportunity to proceed to exercise the remedies, rights and powers granted herein or to institute the suit, action or proceeding in its own name, and shall have offered indemnity to the Trustee as provided in the Indenture, and (iii) the Trustee, for sixty (60) days thereafter, shall have failed or refused to exercise the remedies, rights and powers granted herein or to institute the suit, action or proceeding in its own name. At the option of the Trustee, such notification (or notice), request, opportunity and offer of indemnity are conditions precedent in every case, to the institution of any suit, action or proceeding described above.

No one or more Holders of the Bonds shall have any right to affect, disturb or prejudice in any manner whatsoever the security or benefit of the Indenture by its or their action, or to enforce, except in the manner provided, any remedy, right or power under the Indenture. Any suit, action or proceedings shall be instituted, had and maintained for the benefit of the Holders of all Bonds then outstanding.

Nothing in the Indenture shall affect or impair, however, the right of any Holder to enforce the payment of the Bond Service Charges on any Bond owned by that Holder at and after the maturity thereof, at the place, from the sources and in the manner expressed in that Bond.

Application of Money. All moneys received by the Trustee (i) for deposit in the Bond Fund shall be applied in accordance with the Indenture or (ii) for other purposes set forth in a Supplemental Indenture, shall be applied as provided in that Supplemental Indenture. After payment of any costs, expenses, liabilities and advances paid, incurred or made by the Trustee in the collection of moneys pursuant to any right given or action taken under the provisions of the Indenture (including without limitation, reasonable attorneys' fees and expenses, except as limited by law or judicial order or decision entered in any action taken under the Indenture), and provided that no such costs, expenses, liabilities and advances shall be paid from moneys in the Redemption Account or the Defeasance Account, all moneys received by the Trustee, shall be applied as follows, subject to the Indenture:

(a) Unless the principal of all of the Bonds shall have become due and payable, all of that money shall be deposited in the Bond Fund and shall be applied:

First – To the payment to the Holders entitled thereto of all installments of interest then due on the Bonds, in the order of the dates of maturity of the installments of that interest, beginning with the earliest date of maturity and, if the amount available is

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not sufficient to pay in full any particular installment, then to the payment thereof ratably, according to the amounts due on that installment, to the Holders entitled thereto, without any discrimination or privilege, except as to any difference in the respective rates of interest specified in the Bonds; and

Second – To the payment to the Holders entitled thereto of the unpaid principal of any of the Bonds that shall have become due (other than Bonds previously called for redemption for the payment of which money is held pursuant to the provisions of the Indenture), whether at stated maturity, by redemption or pursuant to any Mandatory Sinking Fund Requirements, in the order of their due dates, beginning with the earliest due date, with interest on those Bonds from the respective dates upon which they became due at the rates specified in those Bonds, and if the amount available is not sufficient to pay in full all Bonds due on any particular date, together with that interest, then to the payment thereof ratably, according to the amounts of principal and interest due on that date, to the Holders entitled thereto, without any discrimination or privilege, except as to any difference in the respective rates of interest specified in the Bonds.

(b) If the principal of all of the Bonds shall have become due of shall have been declared to be due and payable pursuant to the Indenture, all of that money shall be deposited into the Bond Fund and shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, without preference or priority of principal over interest, of interest over principal, of any installment of interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and interest, to the Holders entitled thereto, without any discrimination or privilege, except as to any difference in the respective rates of interest specified in the Bonds, and thereafter as provided in any applicable Supplemental Indenture.

(c) If the principal of all of the Bonds shall have been declared to be due and payable pursuant to the Indenture, and if that declaration thereafter shall have been rescinded and annulled under the provisions of the Indenture, subject to the provisions of paragraph (b) above in the event that the principal of all of the Bonds shall become due and payable later, the moneys shall be deposited in the Bond Fund and shall be applied in accordance with the provisions of the Indenture.

(d) Whenever money is to be applied pursuant to the provisions of the Indenture, that money shall be applied at such times, and from time to time, as the Trustee shall determine, having due regard to the amount of money available for application and the likelihood of additional money becoming available for application in the future. Whenever the Trustee shall direct the application of that money, it shall fix the date upon which the application is to be made, and upon that date, interest shall cease to accrue on the amounts of principal, if any, to be paid on that date, provided the money is available therefor. The Trustee shall give notice of the deposit with it of any money and of the fixing of that date, all consistent with the requirements of the Indenture for the establishment of, and for giving notice with respect to, a Special Record Date for the payment of overdue interest. The Trustee shall not be required to make payment of principal of and any premium on a Bond to the Holder thereof, until the Bond shall be presented to the Trustee for appropriate endorsement or for cancellation if it is to be paid fully.

(e) Whenever all Bond Service Charges shall have been paid under the provisions of the Indenture and all expenses and charges of the Trustee, the Registrar, the Authenticating

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Agents and the Paying Agents have been paid, and all reimbursements to the Issuer have been paid, any balance remaining in the Bond Fund shall be paid respectively into the other Funds to make up any deficiency existing in any such Funds under the terms of the Indenture, or if all Bonds shall be deemed to have been paid and discharged under the Indenture, then shall be paid to the Issuer unless other provision is made therefor.

Termination of Proceedings. If the Trustee shall have proceeded to enforce any remedy, right or power under the Indenture in any suit, action or proceedings, and the suit, action or proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then the Issuer, the Trustee and the Holders shall be restored to their former positions and rights under the Indenture, respectively, and all rights, remedies and powers of the Trustee shall continue as if no suit, action or proceedings had been taken.

Waivers of Events of Default

Except as provided in the Indenture or as modified or supplemented by a Supplemental Indenture, the Trustee shall waive any Event of Default under the Indenture and its consequences upon the written request of the Holders of (i) at least a majority in aggregate principal amount of all Bonds then outstanding in respect of which an Event of Default in the payment of Bond Service Charges exists, or (ii) at least twenty-five percent (25%) in aggregate principal amount of all Bonds then outstanding, in the case of any other Event of Default. Such written request shall take priority over other actions requested or authorized by the Holders. The Trustee will not however waive any Event of Default resulting from failure to pay any interest on any Bond when and as such interest becomes due and payable or from the failure to the principal of or any premium on any Bond when and as such principal or premium shall become due and payable, whether at stated maturity, by redemption, pursuant to any Mandatory Sinking Fund Redemption Requirements, by acceleration or otherwise, plus interest to the extent permitted by law on any overdue installments of interest at the rate borne by the Bonds in respect of which the default shall have occurred, shall have been duly paid or provision shall have been duly made therefor by deposit with the Trustee or Paying Agents.

Defeasance

When all Outstanding Bonds and all other sums payable under the Indenture or a Supplemental Indenture have been paid and discharged (or provisions therefore have been made within the meaning of the Indenture), then the Indenture will cease, determine and become null and void (except for those provisions surviving by reason of the Indenture in the event that the Bonds are deemed to be paid and discharged pursuant to the Indenture), and the covenants, agreements and obligations of the Issuer under the Indenture shall be released, discharged and satisfied and the Trustee shall sign and deliver to the Issuer any instruments or documents in writing as shall be requisite to evidence that release and discharge or as reasonably may be requested by the Issuer, and the Trustee and any other Paying Agents shall assign and deliver to the Issuer any property then subject to the lien of the Indenture which then may be in their possession, except amounts in the Bond Fund required (i) to be paid under the Indenture or (ii) to be held by the Trustee and the Paying Agents under the Indenture or otherwise for the payment of Bond Service Charges, and the Trustee shall take any other actions required by a Supplemental Indenture.

Additional Bonds

Upon the execution and delivery of the applicable Supplemental Indenture, the Issuer shall cause the execution of the related series of Bonds and their delivery to the Trustee. Thereupon, the Trustee shall authenticate the Bonds and shall deliver them to, or on the order of, the Original Purchaser, as directed by the Issuer in accordance with the Indenture. The Indenture requires the Issuer to certify (i) that

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reasonably projected Continuing County Sales Tax to be received from and after the date of delivery of such Additional Bonds to the Original Purchaser thereof are sufficient in time and amount to pay all Bond Service Charges on all Bonds outstanding immediately after delivery of such Additional Bonds when due without regard to any optional redemption, and (ii) that one-half of the aggregate Continuing County Sales Tax Receipts during the twenty-four (24) consecutive calendar months prior to the sale of the Additional Bonds is greater than three hundred percent (300%) of the amount of Bond Service Charges on all Bonds outstanding immediately after delivery of such Additional Bonds due and payable during any Bond Year. The Indenture permits Additional Bonds to be issued in a variety of interest rate modes.

The Trustee

Prior to the occurrence of a Default or an Event of Default of which the Trustee has been notified and after the cure or waiver of all Defaults or Events of Default which may have occurred, the Trustee undertakes to perform only those duties which are described specifically in the Indenture, and no duties of the Trustee shall be implied; in the absence of bad faith on its part, the Trustee may rely conclusively, as to the truth of the statements and the accuracy of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and which conform to the requirements of the Indenture. In case a Default or an Event of Default has occurred and is continuing (of which the Trustee has been notified or is deemed to have notice), the Trustee shall exercise those rights, remedies and powers vested in it under the Indenture and shall use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of that person's own affairs.

Nothing in the Indenture relieves the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that this does not affect the limitation of the Trustee's duties and obligations described in the previous paragraph or the Trustee's right to rely on the truth of statements and the correctness of opinions as provided in the previous paragraph. Furthermore, the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of not less than sixty-six and two-thirds percent (66-2/3%) in principal amount of the Bonds then outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under the Indenture. Finally, no provision of the Indenture requires the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties or in the exercise of any of its rights or powers if it will have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

Except for its certificate of authentication on the Bonds, the Trustee shall not be responsible for any recital in the Indenture, in the Bonds, or any other related document, statement or certificate; the validity, priority, recording, rerecording, filing or refiling of the Indenture or any Supplemental Indenture; any financing statements, amendments thereto or continuation statements; the validity of the execution by the Issuer of the Indenture, any Supplemental Indenture or instruments or documents of further assurance; the sufficiency of the security for the Bonds issued under the Indenture or intended to be secured by the Indenture; or the maintenance of the security thereof. The Trustee shall not be bound to ascertain or inquire as to the observance or performance of any covenants, agreements, or obligations on the part of the Issuer, except as set forth in the Indenture; but the Trustee may require of the Issuer full information and advice as to the observance or performance of those covenants, agreements and obligations. The Trustee shall not be accountable for the application by the Issuer of the proceeds of any Bonds authenticated or delivered under the Indenture. The Trustee shall be protected, in the absence of bad faith on its part, in acting upon any notice, request, consent, certificate, order, affidavit, letter, telegram or other paper or document reasonably believed by it to be genuine and correct and to have been signed or sent by the proper Person. Any action taken by the Trustee pursuant to the Indenture upon the request or authority or consent of any Person who is the Holder of any Bonds at the time of making the request or giving the

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authority or consent, shall be conclusive and binding upon all future Holders of the same Bond and of Bonds issued in exchange therefor or in place thereof.

As to the existence or nonexistence of any fact for which the Issuer may be responsible or as to the sufficiency or validity of any instrument, document, report, paper or proceeding, the Trustee, in the absence of bad faith on its part, shall be entitled to rely upon a certificate signed on behalf of the Issuer, as sufficient evidence of the facts recited therein. Prior to the occurrence of a default or Event of Default under the Indenture of which the Trustee has been notified or of which the Trustee is deemed to have notice, the Trustee may accept a similar certificate to the effect that any particular dealing, transaction or action is necessary or expedient; provided that the Trustee in its discretion may require and obtain any further evidence that it deems to be necessary or advisable; and, provided further that the Trustee shall not be bound to secure any further evidence. The Trustee may accept a certificate of the Clerk to the effect that legislation has been enacted by the Council in the form recited in that certificate, as conclusive evidence that the legislation has been duly enacted and is in full force and effect.

The Trustee shall not be required to take notice, and shall not be deemed to have notice, of any default or Event of Default under the Indenture, except Events of Default involving non-payment of interest or Bonds, unless the Trustee shall be notified specifically of the default or Event of Default in a written instrument or document delivered to it by the Issuer, or by the Holders of at least twenty-five percent (25%) of the aggregate principal amount of Bonds then outstanding. In the absence of delivery of a notice satisfying those requirements, the Trustee may assume conclusively that there is no default or Event of Default, except as noted above.

Before taking remedial actions under the Indenture, the Trustee may require that a satisfactory indemnity bond be furnished to it for the reimbursement of all fees and expenses which it may incur and to protect it against all risk and liability by reason of any action so taken, except liability that is adjudicated to have resulted from its negligence or willful default.

Extent of Covenants; No Personal Liability

All covenants, stipulations, obligations and agreements of the Issuer contained in the Indenture are and shall be deemed to be covenants, stipulations, obligations and agreements of the Issuer to the full extent authorized by law and permitted by the Constitution of the State. No covenant, stipulation, obligation or agreement of the Issuer contained in the Indenture shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future member, officer, agent or employee of the Issuer or the Council in other than that person's official capacity. Neither the members of the Council nor any official signing the Bonds, the Indenture or any amendment or supplement hereto or thereto shall be liable personally on the Bonds.

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APPENDIX B THE COUNTY OF CUYAHOGA, OHIO

The County is an independent political subdivision of the State and operates subject to the provisions of the Ohio Constitution, the Charter (defined below) and various sections of the Revised Code. The County is located on the southern shore of Lake Erie in northeastern Ohio. The County covers an area of 458.3 square miles and contains two townships and 57 cities and villages, the largest of which is the City of Cleveland (the "City"), the county seat of the County. The State established the County on February 8, 1808, and the first meeting of the Cuyahoga County Board of County Commissioners was held in June 1810. The County is substantially fully developed and, according to the 2010 census, had a population of 1,280,122, making it the most populous county in the State and the 29th most populous county in the United States. The population estimate for the County in 2014 was 1,259,828.

Census figures for the County, over the last several decades, show the County's trend in population as follows:

Decade Population 1970 1,721,300 1980 1,498,400 1990 1,412,140 2000 1,393,978 2010 1,280,122

The County is served by 31 school districts, including the Cleveland Metropolitan School District, which educates over 38,700 students within the County.

In addition to the services provided by municipalities (and to some extent, townships) and the educational services provided by the various school districts within the County and State, there are other special districts and governmental entities currently performing various public service functions in the County. These include, among others, the Cleveland Metropolitan Park District (park and recreation facilities and programs), the Greater Cleveland Regional Transit Authority (mass transit), the Cleveland- Cuyahoga County Port Authority (lake port facilities and economic development activities), the Cuyahoga Community College District (two-year community college), the Cuyahoga County Library District (library facilities), the Cuyahoga County Solid Waste Management District (solid waste management), the Cuyahoga Metropolitan Housing Authority (low-income housing), the Northeast Ohio Regional Sewer District (wastewater collection and treatment) and Cuyahoga Arts & Culture (support for the arts).

The several cities, villages and townships, together with the various special districts and other governmental entities operating in the County, are responsible for providing many local governmental services and make significant expenditures in providing such services to County residents. The County, nonetheless, has significant responsibilities in the areas of general government, administration of justice, health care, sanitation, and welfare and public assistance.

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ORGANIZATION AND MAJOR OFFICES

Government Structure Prior to January 1, 2011

Prior to January 1, 2011, a three-member Board, elected at large in even-numbered years for four- year overlapping terms, was the primary legislative and executive body of the County.

In addition to the County Commissioners, there were eight other elected administrative officials of the County, each of whom was independent within the limits provided by the State statutes affecting the particular office. Those officials, elected to four-year terms, included the County Auditor, County Treasurer, Clerk of Courts, County Recorder, County Engineer, Sheriff, Prosecuting Attorney and Coroner.

Government Structure Effective January 1, 2011

Under the State Constitution, the electors of a county have authority to adopt a charter that provides an organization for their county government that differs from that under State statutes and, under certain circumstances, for the county government to exercise powers in addition to those vested in counties by statute.

On November 6, 2009, the voters of the County adopted a County Charter (the "Charter") that changed the form of the County's government. The Charter was effective January 1, 2010, with 2010 being a year of transition to the new form of government.

The Charter eliminated the elected positions of County Commissioners, County Auditor, County Treasurer, County Recorder, Clerk of Courts, County Coroner, County Engineer and Sheriff. In place of the previously elected officers, the Charter provides for an elected County Executive, an elected 11- member County Council (the "Council") and an elected Prosecuting Attorney. The County Executive and the Prosecuting Attorney are elected by all the voters of the County, and each member of Council is elected by voters in one of 11 districts established by the Charter. Consistent with the authority and requirements provided in the State Constitution for charter counties, the Charter provides for the County to exercise all powers vested in and perform all duties imposed upon counties and county officers from time to time by the Constitution and laws of the State, but also powers specifically conferred by the Charter or incidental to those specific powers and all other powers that counties are not prohibited to exercise by the Constitution or laws, including powers that may be concurrently exercised by the County and municipalities.

At an election in November 2010, Edward FitzGerald was elected as the first County Executive for a four-year term commencing January 1, 2011. At that same election, 11 members of the new Council were elected, six members to serve four-year terms and five members to serve two-year terms, all also commencing on January 1, 2011. Commencing January 1, 2013, all members were and will be elected to four-year terms. At an election on November 4, 2014, Armond Budish was elected as County Executive for a four-year term commencing January 1, 2015.

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The following is a table of the principal officials of the County. Their duties and responsibilities are outlined below: Principal Officials County of Cuyahoga, Ohio

Date Term Date Tenure Name Office Expires Began Dan Brady Council President 12/31/2018 1/1/2015 Pernel Jones, Jr. Council Vice President 12/31/2018 1/1/2015 Yvonne M. Conwell Council Member 12/31/2018 1/1/2015 Michael J. Gallagher Council Member 12/31/2018 1/1/2015 Chuck Germana Council Member 12/31/2018 1/1/2015 Dave Greenspan Council Member 12/31/2018 1/1/2015 Anthony T. Hairston Council Member 12/31/2016 5/1/2014 Shontel Brown Council Member 12/31/2018 1/1/2015 Dale Miller Council Member 12/31/2016 1/1/2011 Jack Schron Council Member 12/31/2016 1/1/2011 Sunny M. Simon Council Member 12/31/2018 1/1/2015 Armond Budish County Executive 12/31/2018 1/1/2015 Timothy McGinty Prosecuting Attorney 12/31/2016 10/1/2012 Dennis G. Kennedy, CPA County Fiscal Officer Appointed 2/19/15 W. Christopher Murray II County Treasurer Appointed 4/28/15 Jeanne Schmotzer Clerk of Council Appointed 1/25/11 Nailah K. Byrd Clerk of Courts Appointed 1/8/15 Clifford Pinkney Sheriff Appointed 4/4/15 Robert J. Triozzi Director of Law Appointed 2/26/15 Mark Griffin Inspector General Appointed 3/3/15 Thomas P. Gilson, M.D. Medical Examiner Appointed 5/31/11 Valerie Harry, CPA Director of Internal Audit Appointed 3/27/12 Michael W. Dever, M.P.A. Director of Public Works Appointed 3/3/15 Egdilio Morales Interim Director of Human Resources Appointed 10/30/15 Matt Carroll Interim Director of Health and Appointed 1/16/15 Human Services Nathan Kelly Interim Director of Development Appointed 4/13/15 Edward Kraus Director of Regional Cooperation Appointed 1/2/15 Mary Louise Madigan Director of Communications Appointed 9/23/15 Eliza Wing Chief Communications Officer Appointed 8/17/15 Source: Cuyahoga County

County Executive

The County Executive, with the approval of the Council, appoints the following: (i) a County Fiscal Officer who has the duties of an elected county auditor, an elected county recorder and an elected clerk of courts (other than those related to the operations of the County Courts) under State law; (ii) a Medical Examiner who performs the duties of an elected county coroner under State law; (iii) a Clerk of Courts to carry out the duties of an elected clerk of courts related to the operations of the Courts under State law; (iv) a Director of Public Works who performs the duties of an elected county engineer and a sanitary engineer under State law; (v) a Director of Law who serves as the legal advisor and representative to the County Executive and Council; (vi) a County Treasurer who performs the duties of an elected county treasurer under State law; (vii) a Sheriff who performs the duties of an elected county sheriff under State

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law; and (viii) a Director of Human Services who manages the administration of the County's various human service agencies, programs and activities.

The County Executive has powers and duties of an administrative nature, including, but not limited to, overseeing most personnel and collective bargaining matters, executing contracts, conveyances and indebtedness on behalf of the County, introducing ordinances and resolutions for Council's consideration and submitting tax and operating budgets, capital improvement plans, a five-year financial forecast for County operating funds and a related written message annually. The County Executive also has veto power over Council's actions.

County Council

The Council holds the legislative power and is the taxing authority of the County. The Council elects a President, has a Clerk and other assistants, and has authority to establish procedures governing the making and administration of County contracts and public improvements. Council also has authority to adopt the annual tax budget and the County's operating and capital budgets, to make appropriations to provide for the acquisition, construction and maintenance of property, and to establish a procedure for the levying of special assessments. The Council may override a veto of the County Executive if at least eight members of Council vote to approve the vetoed measure. The Council may investigate any financial transaction relating to any matter upon which it is authorized to act, and has investigative as well as legislative powers.

County Budget Commission

The County Budget Commission, consisting of the County Executive, the County Fiscal Officer and the Prosecuting Attorney, exercises all powers and performs all duties performed by a county budget commission under State law.

County Department of Development

A County Department of Development oversees economic development in the County with a Director of Development appointed by the County Executive, subject to confirmation by Council. An appointed Economic Development Commission is required to present a five-year economic development plan in June of each year.

County Audit Committee

The County Audit Committee provides internal auditing to assist the County Executive, Fiscal Officer, the Council, and other county officers and departments, institutions, boards, commissions, authorities, organizations, and agencies of the County government funded in whole or in part by County funds in providing taxpayers of the County with efficient and effective services.

County Personnel Review Commission

County employment practices and the classification of employee positions are monitored by an appointed County Personnel Review Commission.

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Financial Management

The County Executive is responsible for providing and managing the funds used to support various County activities. The Council exercises its legislative powers in budgeting, appropriating money, levying taxes, issuing securities and letting contracts for public works and services.

The County's Office of Budget and Management performs financial analysis and administrative functions for the County Executive. That Office's staff assists the County Executive and County Fiscal Officer in the budget process and monitors the operations of the County departments and independent boards and agencies. Its responsibilities include revenue forecasting, operating budget development and review, policy and legislative analysis, fiscal transaction processing, capital budgeting, systems analysis, federal programs review, cost effectiveness studies and financial consultation services.

Management of County Facilities

The County Executive has responsibility for the management of most County facilities, including various public assistance and social services, court, correctional and administrative facilities, and general County government facilities.

Administration

Independent boards and commissions administer a large variety of services within the County. Those boards and commissions include, among others, the Alcohol, Drug Addiction and Mental Health Services Board, the Veterans Service Commission, the Board of Developmental Disabilities, the County Planning Commission and the Board of County Hospital Trustees.

Some of these boards and commissions are appointed entirely by the County Executive and are subject to complete fiscal control by the County Executive and, through the appropriations process, the Council. Others have no members appointed by the County Executive and may, to varying extents, be independent of fiscal control by the County Executive and the Council. There are also others for which the County Executive does not have appointment powers but does have extensive fiscal responsibilities. For example, the County Executive has extensive financing, funding, budgeting and accounting responsibilities for the Board of Elections and for various courts, but does not appoint the members of the Board of Elections or the judges or employees of the courts.

The County Executive appoints three of ten members of the Board of Trustees of the Greater Cleveland Regional Transit Authority, three of nine members of the Board of Directors of the Cleveland- Cuyahoga County Port Authority, six of nine members of the Board of Trustees of the Cuyahoga Community College District, one of seven members of the Board of Trustees of the Northeast Ohio Regional Sewer District and all three members of the Board of Trustees of Cuyahoga Arts & Culture. Those entities are separate political subdivisions for which the County has no fiscal or administrative responsibilities other than as taxing authority. The County Executive also appoints two of five members, and shares with the City of Cleveland one joint appointment, to the Board of the Gateway Economic Development Corporation of Greater Cleveland, a nonprofit corporation organized for the purpose of developing and maintaining the Gateway Project, which consists of a 42,300-seat outdoor baseball stadium (Progressive Field), a 20,500-seat multipurpose arena (Quicken Loans Arena), a parking garage and related common areas in downtown Cleveland. The County Executive also appoints four of sixteen members of the Board of Directors of Senior Transportation Connection of Cuyahoga County, a nonprofit corporation organized for the purpose of increasing and improving the availability and quality of, and access to, sufficient transportation services for senior citizens in the County (the "STC"). The County Executive currently has no fiscal or administrative responsibilities with respect to the STC.

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General Government

Of the officers that can be grouped under the category of general government, in addition to the County Executive, two, the County Fiscal Officer and the County Treasurer, are of particular pertinence to the financial affairs of the County.

Fiscal Officer

The County Fiscal Officer has assumed the duties performed by elected county auditors and county recorders under the statutory form of county government, as well as certain duties performed by an elected clerk of courts.

The County Fiscal Officer has the responsibility of assessing real property for taxing purposes. Under State law, a complete reappraisal must be conducted every six years (as was last completed in 2012) and updated every three years. The Fiscal Officer is the fiscal officer of the County and, in general, no County contract or obligation (other than contracts and obligations entered into in connection with the operation of The MetroHealth System, the County's public hospital system) may be made without his certification that funds for payment are available or are in the process of collection. In addition, no account may be paid except by his warrant drawn upon the County Treasury. The Fiscal Officer is responsible for preparation and disbursement of the County payroll and has statutory accounting responsibilities. He is a member, and the Secretary, of the County Board of Revision and the County Budget Commission and serves as the chair of the County Audit Committee.

Treasurer

The Treasurer, who is now appointed by the County Executive and reports to the Fiscal Officer, performs the duties of an elected county treasurer under the statutory form of county government. The Treasurer collects certain taxes to distribute to various governmental units. The Treasurer prepares and mails tax bills to real property owners in the County and is the disbursing agent for expenditures authorized by the County Executive and Council. The Treasurer makes daily reports showing receipts, payments and balances to the Fiscal Officer. The Treasurer is also charged with the responsibility of investing County funds. See "COUNTY TAX BASE – Investment of Funds."

Employees

As of December 31, 2014, the County had approximately 7,627 full-time equivalent employees (excluding employees of The MetroHealth System) in various job classifications who were employed by the County Executive, other elected County officials and County-funded boards and commissions.

A statewide public employee collective bargaining law applies to public employee relations and collective bargaining.

As of December 31, 2014, 2,839 County employees under the County Executive were members of and represented by one of 36 individual bargaining units. The balance of full-time County employees are not members of a bargaining unit.

Generally, the terms of the salaries, wages and other economic benefits have been the products of negotiations with representatives of the employees or bargaining units and increases in economic benefits have been provided on an annual basis. The County's most recent contracts with the collective bargaining units for its employees have provided for annual wage and salary increases up to 2% in 2014 and for the employees to participate in the County's health care plans.

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The County's non-bargaining unit employees have not been allocated wage and salary cost of living increases during the period from 2008 through 2012, but did receive a 1% cost of living increase in 2013. In 2014, merit increases ranging from 0.5% to 1.5% were given to non-bargaining employees; there was no cost of living increase.

In the judgment of the County, its employee relations generally have been and are currently considered to be good. Pension Obligations

Employees, present and retired, of the County are covered under a statewide public retirement (including disability retirement) system, the Ohio Public Employees Retirement System ("OPERS"). Teachers employed by the school for Board of Developmental Disabilities ("BODD") are covered under a statewide public retirement system, State Teachers Retirement System of Ohio ("STRS Ohio"). Both plans are cost sharing, multiple-employer plans, created by and operated pursuant to Ohio law. The General Assembly could amend the format of the funds, and revise contribution rates to be made by the County, and revise benefits or benefit levels. Health care coverage is not statutorily guaranteed.

Currently, all of the employees of the County, other than those employed by BODD, are covered by OPERS. These employees contribute at a rate of 10.00% of earnable salary or compensation, and the County contributes 14.00% of the same base, except for uniformed employees of the Sheriff's Department who currently contribute at a rate of 12.10% of earnable salary or compensation, and for whom the County contributes at a rate of 18.1%.

The current employer contributions to OPERS have been and are presently treated as current expenses of the County and included in its operating expenditures. OPERS issues a stand-alone financial report that may be obtained at www.opers.org or in at the OPERS offices, 277 East Town Street, Columbus, Ohio 43215 or by calling (800) 222-7377.

Currently, 76 County employees are covered by STRS Ohio. The employee contribution rate is 10.00% of earnable salary or compensation, and the County contributes 14.00% of the same base.

The current employer contributions to STRS Ohio have been and are presently treated as current expenses of the County and included in its operating expenditures. STRS Ohio issues a stand-alone financial report that may be obtained at www.strsoh.org or at the STRS Ohio offices, 275 East Broad Street, Columbus, Ohio 43215.

Under the Consolidated Omnibus Reconciliation Act of 1985 (P.L. 99-272), public employers including the County are subject to mandatory Medicare (hospital insurance tax or FICA tax) contributions of 1.45% of each covered employee's wage base. Covered employees include all employees (with limited exceptions) hired after March 31, 1986.

COUNTY SERVICES AND RESPONSIBILITIES

The following are descriptions of selected County services and responsibilities.

Public Assistance and Social Services

Public assistance and employment training functions within the County are administered by a unified Department of Health and Human Services. There are four autonomous divisions within the Department – Jobs and Family Services, Children and Family Services, Senior and Adult Services, and Workforce Development. Each division has its own administrator but is supported and overseen by the

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Office of Health and Human Services. The director of each such division reports to the Director of Health and Human Services, who serves as the statutorily-mandated County Director of Jobs and Family Services and is appointed by, and responsible to, the County Executive. The four divisions had 1,733 full-time equivalent employees as of December 31, 2014, and are further described below.

Jobs and Family Services

Jobs and Family Services ("JFS") administers a variety of programs and services providing assistance to working families, older adults and disabled persons. Those programs and services, which include Healthy Start and other Medicaid health insurance programs, child-care assistance, the Ohio Works First ("OWF") program, food benefits, PRC emergency financial help and financial and medical assistance services for the disabled, are primarily funded from federal and State sources. Within JFS, the Cuyahoga Support Enforcement Agency locates absent parents, helps to establish paternity, works with parents in completing requirements for support orders and collects and distributes child support and spousal support funds from divorced parents.

Children and Family Services

Children and Family Services provides child protection activities and support services to strengthen families by investigating allegations of child abuse, neglect and dependency, coordinating child protective services and resources, utilizing foster and adoptive homes or residential treatment facilities as needed, and providing services designed to promote family reunification.

Senior and Adult Services

Senior and Adult Services provides protective and supportive services to consenting elderly and disabled adults to protect them from abuse, neglect or exploitation. These services are designed to keep individuals in their homes or in the least restrictive environment possible. See "COUNTY SERVICES AND RESPONSIBILITIES – Health" herein.

Workforce Development

Workforce Development administers the federal Workforce Investment Act program that provides education services and training programs to prepare adults and youth for the workforce and to assist in meeting the community's workforce needs.

As of December 31, 2014, $126.7 million was expended for the public assistance programs and $294.6 million was expended in total for the social service and employment training programs it administers, with approximately 56.6% of the amount for public assistance programs and social service programs coming from the State and federal governments. Some of the social services are provided directly by Children and Family Services and Senior and Adult Services; other services are provided by Employment and Family Services, Workforce Development and community agencies under contract with these divisions. Cuyahoga Support Enforcement Agency expenditures for Fiscal Year 2014 were $29.0 million, of which approximately 80% is expected to come from the State and Federal governments.

The County's local share of expenditures for the activities and programs of these divisions is currently funded with proceeds from two voted health and human services property tax levies of 3.9 mills and 4.8 mills, expiring on December 31, 2016 and 2018, respectively. Approximately $101.5 million from the health and human services tax levies was directed to these purposes in 2014, utilizing a total of $232.4 million for all health and human services purposes combined.

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The Veterans Service Commission (the "Veterans Commission") and the Board of Developmental Disabilities also operate within the area of health and public assistance but apart from the Department of Health and Human Services.

The Veterans Commission assists veterans and their dependents by providing emergency assistance and securing the materials and information needed to apply for and receive assistance under the various programs administered by the United States Department of Veterans Affairs. The five members of the Veterans Commission are appointed by the Judges of the Common Pleas Court and serve five-year terms. The activities of the Veterans Commission are financed from the County's General Fund. Veteran Services spent $6.4 million from the General Fund for those activities in 2014.

The County's program for the developmentally disabled persons, operated through the Board of Developmental Disabilities, provides various services to developmentally handicapped children and adults, including training classes, workshops and home services. Of the seven members of the Board of Developmental Disabilities, five are appointed by the County Executive and two by the Judges of the Probate Court. In addition to receiving State reimbursement and tuition reimbursement from the boards of education in the County, the Board of Developmental Disabilities is currently funded by a 3.9-mill voted property tax levy which was renewed for a continuing period of time in November 2005. That levy generated $90.2 million in 2014.

Health

The County subsidizes the operation of The MetroHealth System ("MetroHealth"), the public health care system for the County that includes a general, acute-care hospital, outpatient centers, a skilled and intermediate care nursing facility, a rehabilitation facility and a family health center. MetroHealth is governed by a Board of County Hospital Trustees that is appointed by the County Executive and the senior judges of the County's Probate and Common Pleas Courts. The total bed capacity of MetroHealth is 731, and in Fiscal Year 2013 (the most recent year available) the total operating expenditures of MetroHealth were $823.9 million. The County spent $40.1 million from proceeds of the two voted health and human services tax levies, referred to above under “Public Assistance and Social Services” to subsidize System expenditures in Fiscal Year 2014. Requests from the County Hospital Trustees for levy fund subsidies are considered by the County each year and allocations of levy funds for operating expenditures of MetroHealth are made based on System needs and County resources available for this purpose. The County will continue to consider the provision of funds to MetroHealth in subsequent years.

MetroHealth has announced a significant Transformation Plan which would include upgrading and expansion of its physical facilities, including the Critical Care Pavilion which is expected to be completed in the summer of 2016. MetroHealth has requested significant funding for future phases of the Transformation Plan from the County. To date, the County has made no commitment to provide funding, nor has a source of funding been identified.

The Alcohol, Drug Addiction and Mental Health Services Board of Cuyahoga County (the "ADAMHS Board") is responsible for the planning, funding and monitoring of public mental health, and alcohol and other drug addiction treatment services delivered to the residents of the County. The ADAMHS Board does not provide services directly to consumers, but coordinates and evaluates activities at mental health centers and provides counseling and education services for children and adults. Other services for diagnosis, treatment and counseling for substance abuse are contracted out to provider agencies. In Fiscal Year 2014, the County provided approximately $39.4 million of funding to the ADAMHS Board. The County's sources of that funding are the two voted health and human services tax levies referred to above under "Public Assistance and Social Services".

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The County Health District (the "CHD") is a separate political subdivision which is not coterminous with the County. The CHD Board of Health performs various services for villages, cities, townships and school districts contracting with it. Some of the services provided are immunizations, home nursing visits and sanitary inspections. The County provides office space for the CHD Board of Health but has no authority to control the activities of the CHD Board of Health and Council does not appropriate any significant amount of funds for its operations. The CHD Board of Health is supported primarily by the charges it receives from contracting subdivisions.

Administration of Justice

As a part of the administration of the justice system in the County, the County maintains facilities for the Common Pleas Court (the court of general jurisdiction), including the Juvenile Division, the Domestic Relations Division and the Probate Division, and the Eighth District Court of Appeals. The Prosecuting Attorney's office, the Juvenile Justice Center and County Jail facilities are also maintained by the County.

In addition to his responsibilities as a prosecutor of criminal cases, the Prosecuting Attorney is designated by the Charter and Ohio law as the chief legal counsel for all County officers, boards and agencies, including the County Executive, the Council, the Board of Elections, the Fiscal Officer, townships, local school districts and tax-supported public libraries. The Department of Law also provides legal counsel to the County Executive, the Council and all departments under the County Executive.

The Clerk of Courts keeps all official records of the Common Pleas Court and serves as Clerk of Court of the Court of Appeals.

The County Sheriff, the chief law enforcement officer of the County, provides certain specialized services, which include maintaining a special staff of deputies whose duties are to assist local law enforcement officers upon their request and to enforce the law in unincorporated areas of the County. The Sheriff also operates and maintains the County Jail and is responsible for its inmates, including persons detained for trial or transfer to other institutions. As an officer of the County Courts, the Sheriff is in charge of the service of court documents.

Construction of the Cuyahoga County Juvenile Justice Center ("CCJJC") began in 2007 on a 12- acre site in Cleveland. The $160 million project features a 630,000 square foot facility providing for the safety and security of all juveniles housed there and manages their care while awaiting disposition in the Cuyahoga County Juvenile Court for charged criminal violations. Following disposition, the juvenile may be committed to a State Training School, sentenced to the Juvenile Detention Center, placed in a residential treatment center, placed on Probation, or released to parents or guardians. Residents continue their education through the Cleveland Metropolitan School District via on-site classrooms and teachers. The CCJJC facility consolidates all court related and detention activities and replaces the former Cuyahoga County Detention Center. The nine-story tower accommodates the Juvenile Court system for the County. Secured parking is provided for Judges, related staff, other employees of the Center, as well as the public. The CCJJC opened in the first quarter of 2011.

In 2008, the County received a grant in the amount of $10.8 million from the State Department of Rehabilitation and Corrections to construct a Community Based Correctional Facility ("CBCF"). CBCFs are residential sanctioned facilities that provide County Courts of Common Pleas a sentencing alternative to prison. The County's new facility is operated by an outside entity with the Ohio Department of Rehabilitation and Corrections providing an annual operating subsidy for the County's internal cost of administering the facility. A CBCF Governing Board was created at the County to oversee the design,

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siting and construction of the new facility. The County selected a contractor and construction of the facility commenced in early 2010 and was completed on time and under the allotted budget in late 2010. The facility officially opened on January 30, 2011.

Arts and Culture

In November 2006, the voters of the County approved an additional tax on wholesale sales of cigarettes for the purpose of supporting the County's arts and cultural sector. The tax, in the amount of $0.015 per cigarette, became effective February 1, 2007, and is collected by the State. The tax generated $16.6 million for 2013, and generated approximately $16.0 million for 2014. The current tax expires in 2017. On November 3, 2015, the voters of the County approved an extension of the excise tax for an additional ten years. The County Executive has appointed the three-person Board of Trustees of Cuyahoga Arts & Culture that makes decisions about the expenditure of such tax revenues. All prior County support for this sector was funded from General Fund revenue sources.

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County Facilities, Utility and Other Enterprises

The County presently owns the following facilities: Facility Use Square Feet Acreage Estimated Value

Mall/Public Square District Cleveland Convention Center Special Events 946,377 $425,000,000 and Global Center for Health Innovation Courthouse and Huntington Park Garage Courts, Parking Garage 638,792 10.24 38,120,800 Courthouse Square Justice related programs 100,503 0.45 12,557,500 Men’s Homeless Shelter Men’s homeless shelter 29,332 0.92 872,300 Soldiers’ & Sailors’ Monument Monument 2.90 18,961,700 Justice Center Courts Tower Courts (a) (b) (c) Corrections Center Courts/Inmate cells (a) (b) (c) Galleria Court rooms (a) (b) (c) Jail II Corrections Facility Courts/Inmate cells (a) (b) (c) Parking Garage Parking garage (a) (b) (c) East 9th/Erieview District Central Services Building Central Services 51,480 1.20 2,162,200 Lakeside Industry District Virgil E. Brown Building Child Support Enforcement 250,852 1.26 26,893,700 Mid-Town Corridor District Board of Elections Board of Elections 64,149 .72 2,343,700 Jane Edna Hunter Building Children & Family Services 170,640 2.41 6,105,600 University Circle District Coroner Building Medical Examiner’s Office 279,919 3.33 15,737,000 Juvenile Justice Center Juvenile Court & Detention Ctr. 607,500 15.18 141,340,300 Ohio City District Metzenbaum Child Center Family Services 26,896 5.81 2,422,300 Richmond Heights District/County Airport Safety/Service Building Administrative Offices and 86,505 660.00 (d) Hangar Valley View District Sanitary Engineer Sanitary Engineer 44,164 6.03 2,230,200 County Animal Shelter County Kennel 20,360 3.95 2,325,300 County Fairgrounds Exhibitor/County Fair 202,799 105.40 7,802,900 (a) Combined square footage of 1,952,083. (b) These facilities are all located on the same 5.16 acre site. (c) Combined estimated value of $93,376,100. (d) Combined estimated value of $12,762,200. Source: County Fiscal Office.

The County Executive has responsibility for the management of most of these facilities and insures all of the buildings and their contents. The County has recently completed construction of an integrated facility for (a) exhibition space and showrooms for medical devices and equipment and related functions (the Global Center for Health Innovation, previously referred to as the Medical Mart) (the “Global Center”), and (b) exhibition, tradeshow and conference facilities, meeting rooms and related functions (the “Convention Facilities”).

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The Global Center consists of medical showrooms and meeting rooms and serves as an entrance for the Convention Facilities. The Convention Facilities are located on the site of the former City of Cleveland owned convention center that was demolished to its structural foundation. The Convention Facilities consist of an exhibition hall, associated meeting rooms and other amenities, a ballroom, and a newly designed public mall plaza above. The Global Center and the Convention Facilities opened for use in July 2013. The County sold the former Ameritrust properties to GEIS, Inc. for $27 million in a transaction which involved GEIS overseeing the construction of a new County Headquarters at the corner of East 9th and Prospect in Cleveland, Ohio. The Cleveland-Cuyahoga County Port Authority issued $75,465,000 in bonds to build the new headquarters and functions as the landlord for the building. GEIS developed and will manage the new headquarters for 27 years. The County pays base rent to the Port Authority to cover the debt service on the bonds and pays service rent to GEIS to manage the property. Base rent in the amount of $4,007,100 per year commenced in 2016 and will increase 2% each year for 25 years. Service rent in the amount of $1,767,120 commenced in July 2014 and will increase 2% per year. At the end of the management agreement, the County can purchase the new headquarters for $1.00. The purpose of the County Headquarters is to consolidate personnel from several buildings in the County into one central location. The County has sold 8 buildings and is in the process of selling 4 more buildings. The County will terminate the leases on three buildings after the move takes place. Approximately 700 County employees moved into the new County Headquarters in July, 2014. See also “COUNTY DEBT AND DEBT LIMITATIONS -- County Administrative Building” below. The County owns and maintains a network of roads and bridges constituting the County highway system and related roadside drainage facilities and storm or surface water runoff systems. The Director of Public Works, who has assumed the duties previously performed by the elected county engineer and a county sanitary engineer under State law, oversees roads and bridges and serves as the civil engineer for the County and its officials. The Director of Public Works’ primary responsibilities relate to the construction, maintenance and repair of those roads, bridges and storm water drainage facilities. The Director of Public Works takes bids on and awards contracts for the projects recommended and approved by the County Executive. The County also owns and operates certain wastewater collection and treatment facilities, certain water lines, an airport and related facilities and certain off-street parking facilities. The County’s Sanitary Engineer Division has considerable experience in the maintenance of sanitary and storm sewer lines and is often a major source of information and guidance that mayors, municipal engineers and service directors rely on when making infrastructure decisions within their communities. Currently, this operation encompasses over 34 communities and maintains nearly 1,325 miles of sanitary sewers, treats approximately 147 million gallons of wastewater per year and operates 54 sewage pumping stations as well as 3 wastewater treatment plants throughout Cuyahoga County. The Division also has agreements with municipal corporations for the establishment, operation and maintenance of sanitary sewers and facilities. In addition, standards for any system connected to or served by a County-owned improvement are established and enforced. In July 2012, the County entered into an agreement with the City of Shaker Heights (“Shaker”) to maintain Shaker’s sewer system. Under this agreement, the County oversees the maintenance of Shaker’s sanitary sewer system, which has become a district within the County sewer system. Shaker continues to own the sewer lines, and the County collects funds for the maintenance of Shaker’s sewer lines. In the first quarter of 2014, the County entered into an agreement with the City of Euclid (“Euclid”) to operate its jail for $400,000 per year. Also, as part of the agreement, the County has agreed to pay $600,000 for renovations of the jail. The County will be paid back over a period of five years for the refurbishments of the jail by Euclid.

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The Cuyahoga County Airport, Robert D. Shea Field (County Golf Course) is situated on 660 acres of land located in Richmond Heights, Highland Heights and Willoughby Hills. The Cuyahoga County Airport is a reliever airport to Cleveland Hopkins International, and serves the people of eastern Cuyahoga County, and western Lake County and Geauga County. The airport primarily services private and business aircraft, with Cleveland Hopkins International Airport serving as the commercial airport for scheduled airline service in the region. The County’s off-street parking facilities include two public parking facilities in the downtown area of the City and employee-only lots at various County-owned locations. The downtown facilities include a major four-level structure that offers 1,000 parking spaces and a two-level structure that offers 279 spaces, for both daily business activity and special events scheduled in the surrounding area. The County maintains separate funds for each of its sewer districts and parking facilities, and they receive no direct subsidies from the County’s General Fund. COUNTY ECONOMIC AND DEMOGRAPHIC INFORMATION

The County is served by diversified transportation facilities including six U.S. highways and seven interstate highways, CSX, Norfolk Southern and Amtrak railroads, four airports and the Port of Cleveland.

The City is the headquarters for the Fourth District Federal Reserve Bank, which serves Ohio, the western portion of Pennsylvania and portions of Kentucky and West Virginia.

Within driving distance the Cleveland metropolitan area are several public and private two- year and four-year colleges and universities, including, among others, Baldwin Wallace University, Case Western Reserve University, Cleveland State University, Cuyahoga Community College, Hiram College, John Carroll University, Kent State University, Lake Erie College, Lorain County Community College, Notre Dame College, Oberlin College, The University of Akron and Ursuline College.

The area is also noted as the site of many cultural institutions and attractions, including, among others, Severance Hall, The Cleveland Museum of Art, Playhouse Square Center (home of the Great Lakes Theater Festival, the Cleveland Play House and Dance Cleveland), The Cleveland Museum of Natural History, the Botanical Gardens, the Rock and Roll Hall of Fame and Museum, the Great Lakes Science Center, the Western Reserve Historical Society (including the History Museum, the Frederick C. Crawford Auto-Aviation Museum and the Library), The Children's Museum of Cleveland and the NASA Lewis Research Center Visitor Center.

Other performing and visual arts offerings include the Beck Center, Karamu House, Fairmount Theatre of the Deaf, the Cleveland Public Theatre, the Cleveland Center for Contemporary Art and Spaces Art Gallery.

The Cleveland metropolitan area is also served by various recreational facilities. The County's location on Lake Erie and the Cuyahoga River provides a setting for many water recreation facilities and offerings, including the Cleveland Lakefront State Park (five lakeshore locations), many power and sail boat marinas and fishing piers and offshore reefs. The City's North Coast Harbor is the site of the William G. Mather Museum, the Rock and Roll Hall of Fame and Museum, the Great Lakes Science Center and the Cleveland Browns Stadium.

Also available to area residents is the Cleveland Metroparks System, a 21,000-acre, 16 recreational system called the "Emerald Necklace" because it surrounds the City, and the Cuyahoga Valley National Park, a 32,860-acre national park in the County and adjacent Summit County. The

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Cleveland Metroparks Zoo, which features multiple wildlife and educational exhibits, is also located in the City.

The City features the Gateway complex, consisting of Progressive Field (formerly known as Jacobs Field), the home of the Cleveland Indians, Quicken Loans Arena (formerly Gund Arena), the home of the Cleveland Cavaliers and Lake Erie Monsters, and related facilities. First Energy Stadium (formerly Cleveland Brown Stadium) is also located in the City. The City is one of only fifteen cities in the country with three major league sports facilities in its downtown. Original construction of the three professional sports facilities was funded, in part, with the proceeds of a Countywide excise tax on cigarettes, liquor, beer, and wine at wholesale and retail. The tax was first levied for a period of fifteen years, upon approval by voters in the County, in 1990 and was subsequently extended for a period of an additional ten years, through July 31, 2015. On May 6, 2014, voters of the County approved the renewal of the excise tax for a period of an additional twenty years to fund future capital repairs at the three sports facilities.

There are 18 hospitals located in the County, the top ten of which employ approximately 46,469 (as of September 30, 2014) full-time-equivalent employees and have a total capacity of 4,775 staffed beds in the County.

Public mass transit for the area is provided by the Greater Cleveland Regional Transit Authority.

Population

In the 2010 Census classifications, the County was in the Cleveland-Elyria-Mentor Metropolitan Statistical Area (“MSA”), which consists of Cuyahoga, Geauga, Lake, Lorain and Medina Counties. In 2010, the MSA was the 28th most populous MSA in the United States. The County was part of the Cleveland-Lorain-Elyria Primary Metropolitan Statistical Area (“PMSA”) and the Cleveland-Akron Consolidated Metropolitan Statistical Area (“CMSA”) until the U.S. Census Bureau ceased using the PMSA and CMSA distinctions in 2003. Only limited statistics are now available for the new MSA and CSA. The population of the County, the MSA and the CMSA from 1979 to 2014 are: Year County MSA(a) CMSA (c)

1970 1,720,835 2,418,809 3,098,048 1980 1,498,400 2,277,949 2,938,277 1990 1,412,140 2,202,069 2,859,644 2000 1,393,978 2,250,871 2,945,831 2010 1,280,122 2,077,240(b) 3,535,646 2012 1,266,049 2,063,535(b) 3,497,711 2013 1,263,154 2,064,725(b) 3,501,538 2014 1,259,828 2,063,598(b) 3,497,851 (a) Numbers are for the prior PMSA. In 2003, the PMSA was reclassified as an MSA excluding Ashtabula County. Comparable historical Census numbers for the new MSA are not available. (b) 2010, 2012 and 2013 population represents the current MSA. (c) The CMSA was reclassified as the Cleveland-Akron-Elyria Combined Statistical Area (“CSA”). Source: U.S. Census Bureau

 Source: Crain’s Cleveland 2015 Book of Lists.

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Building Permit Values

The County's growth in the past decade is reflected, in part, in the degree of building activity in the County. The following table relating to the issuance of building permits (residential, commercial, industrial and public improvements, both remodeling and new construction) by the County since 2010 is set forth for informational purposes only. Building Permit Values County of Cuyahoga, Ohio

Year No. of Permits Valuation 2010 13,242 730,518,771 2011 12,806 995,071,342 2012 12,599 706,993,843 2013 13,746 922,381,200 2014 13,745 880,938,000 2015* 17,246 283,695,090 Source: County Fiscal Office Unemployment The information set forth below, with respect to the County, Cleveland MSA, and others are presented in this section for informational purposes only. It should not be implied from the inclusion of such data in this Official Statement that the County is representative of Cleveland MSA, State of Ohio, or others, or vice versa.

Area Unemployment Rates Labor Force (annual percentages) (in thousands) Cleveland State of United Year County MSA Ohio States Year County 2009 9.1 8.9 10.2 9.3 2009 630.1 2010 9.2 8.9 10.0 9.6 2010 631.0 2011 8.2 7.9 8.7 8.9 2011 624.2 2012 7.6 7.4 7.4 8.1 2012 620.3 2013 7.7 7.5 7.4 7.4 2013 620.4 2014 7.3 7.0 5.8 6.3 2014 623.2 2015 5.1 4.9 4.3 5.1 2015 626.2 Source: Ohio Department of Job and Family Services, Bureau of Labor Market Information

Notes: (1) Data is not seasonally adjusted. (2) Unemployment rate is as a percentage of the civilian labor force. (3) Data for 2015 is preliminary through September 2015.

*Projected

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Largest Employers

The following table lists the 25 largest employers in the County as of June 30, 2015.

Largest Employers County of Cuyahoga, Ohio Rank Firm Number of Employees Industry 1 Cleveland Clinic Health System 32,269 Health care provider 2 University Hospitals Health System 15,447 Health care provider 3 U.S. Office of Personnel Management 11,536 Federal government 4 Progressive Corp. 8,750 Insurance and financial company 5 Cuyahoga County 7,772 County government 6 Cleveland Metropolitan School District 7,203 Education 7 City of Cleveland 6,666 Municipal government 8 The MetroHealth System 5,839 Health care provider 9 KeyCorp 4,708 Bank holding company 10 Case Western Reserve University 4,443 Higher education 11 U.S. Postal Service 3,941 U.S. postal service 12 Swagelok Co. 3,922 Industrial manufacturer & designer 13 Giant Eagle Inc. 3,555 Multi-format food, fuel & pharmacy retailer 14 Sherwin Williams Co. 3,476 Coatings & related products 15 Lincoln Electric Co. 2,866 Industrial manufacturer & designer 16 Group Management Services, Inc. 2,520 Professional employer organization 17 Greater Cleveland Regional Transit 2,316 Public transportation Authority 18 Nestle USA 2,277 HQ for Nestle USA divisions, business services & culinary business 19 State of Ohio 2,258 State government 20 UPS 2,083 Parcel delivery 21 Rock Gaming 2,075 Horseshoe Casino & ThistleDown Racino 22 ArcelorMittal 1,947 Steel manufacturer 23 American Greetings Corp. 1,806 Creates & manufactures innovative social expression products 24 Southwest General 1,755 Health care provider 25 Medical Mutual of Ohio 1,700 Mutual company providing health and life insurance, dental, vision products, TPA services Source: Crain's Cleveland Business August 24-30, 2015

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Corporate Headquarters

The County is the location of headquarters of twelve corporations that rank among Fortune Magazine’s (2014) 1,000 largest corporations in the United States. The names of those corporations and certain information about them are set forth below. Corporations Headquartered in County Among Fortune’s Top 1000 (a) Within the 1,000 Largest U.S. Corporations Ranked by Revenues

Rank Company Revenues(b) Major Products

157 Progressive $18,171 Insurance 217 Parker Hannifin Corp 13,016 Hydraulic Components 278 The Sherwin Williams Company 10,186 Paints & Chemicals 339 TravelCenters of America 7,963 National Travel Center 445 Cliffs Natural Resources 5,691 ChMining, i Crude Oil 541 KeyCorp 4,567 PdFinancial i Services 569 Aleris International 4,333 Metals 758 Lincoln Electric Holdings 2,853 Industrial Equipment 784 Medical Mutual 2,692 Health Care Insurance 794 Hyster-Yale Materials Handling 2,666 Industrial Machinery 852 Applied Industrial Technologies 2,462 Industrial Components 997 TransDigm Group, Inc. 1,924 Aircraft Components

(a) Source: 2014 Fortune Directory of the Largest U.S. Corporations. (b) In 1,000s of dollars.

Personal Income

According to Census reports, the median household income in the County for the period 2009- 2013 was $43,804, compared to State and national medians of $48,308 and $53,046, respectively. According to the Ohio Department of Taxation, the average federal adjusted gross income for County residents filing Ohio personal income tax returns for calendar year 2013 (the latest year for which the information is available) was $60,226, compared to the averages of $70,871 for all Ohio school districts (for all tax returns filed, the 2013 State average for tax returns that indicated school districts was $56,979). Home Values and Housing Units

The following is Census information concerning housing in the County, with comparative City and State statistics: Housing Units

2010 2014 (est.) % Change

County 621,763 618,803 -0.7% City 207,536 N/A N/A State 5,127,510 5,146,933 0.4 Source: U.S. Census Bureau

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Fiscal Office figures show the following numbers of sales transactions and average sales prices of residential property in the City, the suburbs in the County and the County in recent years.

City Suburbs County Number of Average Sales Number of Average Sales Number of Average Sales Year Sales Price Sales Price Sales Price

2010 1,526 $78,226 6,721 $183,450 8,247 $160,889 2011 1,111 88,364 5,887 181,769 6,998 166,940 2012 2,433 55,800 9,483 153,943 11,916 133,141 2013 2,809 59,737 10,865 162,033 13,674 139,750 2014 3,761 54,548 12,260 153,625 16,021 129,634

Utilities, Energy and Water Resources

Water service in the County is provided primarily by the City’s Division of Water and other municipal water utilities. The County has a Lake Erie shoreline of approximately 30 miles. Lake Erie is the 12th largest lake in the world by surface area. Fresh water is available to the area for all of its foreseeable needs. Sanitary sewer service is provided by the Northeast Ohio Regional Sewer District, municipal sanitary sewer utilities and the County. The County is well served with energy sources. The principal suppliers of electric energy in the County are The Illuminating Company, a subsidiary of FirstEnergy Corporation, and Cleveland Public Power, a municipal utility operated by the City of Cleveland. The principal suppliers of natural gas are Dominion East Ohio Gas Company, Columbia Gas Company of Ohio, Inc. and Shell Energy Services Co. Local telephone service is primarily provided by AT&T (successor by merger to SBC Communications, Inc.) and wireless phone and data and cable television service is available by a number of different providers. Solid Waste Management

The Cuyahoga County Solid Waste District is one of 52 solid waste management districts created by Ohio’s counties following the passage of the Ohio Solid Waste Disposal Act in 1988. The District includes all of the territory in the County as well as a portion of the Village of Hunting Valley in neighboring Geauga County. The Ohio Environmental Protection Agency (“Ohio EPA”) approved a solid waste management plan for the District in 1994 under which the District is responsible for solid waste management activities previously undertaken by the County. An update to that plan, reflecting projected needs and solutions for a 15-year period, was ratified by 96% of the local legislative bodies in the District and approved by the Ohio EPA in 2000. Solid waste collection, disposal and recycling services in the County generally are provided by municipalities and private providers. The Solid Waste Management District provides collections for special waste, including phone books, household hazardous waste, scrap tires, computers and mercury.

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COUNTY TAX BASE

THE FOLLOWING SUMMARY INFORMATION REGARDING THE COUNTY IS PRESENTED FOR GENERAL INFORMATION PURPOSES, AND IT IS NOT THE BASIS ON WHICH THE SERIES 2015A BONDS ARE BEING OFFERED TO INVESTORS. THE SERIES 2015A BONDS ARE PAYABLE SOLELY FROM THE COUNTY SALES TAX RECEIPTS AND NOT ON THE BASIS OF THE FINANCIAL STRENGTH OR PROPERTY TAX BASE OF THE COUNTY.

Ad Valorem Taxes and Assessed Valuation

Overview

For property taxation purposes, assessment of real property is performed on a calendar year basis by the County Fiscal Officer subject to supervision by the State Tax Commissioner (the "Tax Commissioner"), and assessment of public utility property and tangible personal property is performed by the Tax Commissioner. Property taxes are billed and collected by the County Treasurer.

Taxes collected from real property (other than public utility) in one calendar year are levied in the preceding calendar year on assessed values as of June 1 of that preceding year. Taxes collected from tangible personal property (other than public utility) in one calendar year are levied in the same calendar year on assessed values during and at the close of the most recent fiscal year of the taxpayer that ended on or before December 31 of that calendar year, and at the tax rates determined in the preceding year. Public utility real and tangible personal property taxes collected in one calendar year are levied in the preceding calendar year on assessed values determined as of December 31 of that second year preceding the tax collection year.

Real Property

The "assessed valuation" of real property is fixed at 35% of true value and is determined pursuant to rules of the Tax Commissioner, except that real property devoted exclusively to agricultural use is assessed at not more than 35% of its current agricultural use value. Beginning in 2008, certain elderly or disabled resident homeowners may receive a flat $25,000 property tax exemption on the market value of their homestead.

Ohio law requires the County Fiscal Officer, subject to supervision by the Tax Commissioner, to adjust the true value of taxable real property every six years to reflect current fair market values. This "sexennial reappraisal" is done by individual appraisal of properties. In the third year following a sexennial reappraisal, the County Fiscal Officer, again subject to supervision by the Tax Commissioner, performs a "triennial update" to adjust the value of taxable real property to reflect true values. The triennial update is done without individual appraisal of properties, but with reference to a sales- assessment ratio over the three-year period. In 2012 the Fiscal Officer adjusted the true value of all real property in the County to reflect current fair market values as of January 1, 2012. These adjustments were reflected in the 2012 duplicate (collection year 2013) and in the ad valorem taxes distributed to the County in 2013 and thereafter. The Fiscal Officer is required to adjust (but without individual appraisal of properties except in the sexennial reappraisal), and has adjusted, taxable real property value triennially to reflect true values. Such triennial adjustment was made in 2015 and first reflected in the 2015 duplicate (collection year 2016).

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Based on reappraisal, the true value of taxable real property in the County is expected to increase by approximately 0.7% for tax year 2015 (collection year 2016). The County will receive an estimated $2.7 million more in ad valorem property tax revenues in 2015 because of the reappraisal.

Personal Property

In 2005, the State accelerated its phase-out of the tangible personal property tax so that after calendar year 2011, general business tangible personal property is no longer taxed.

The State has been reimbursing municipalities for tax losses resulting from the phase-out of the tangible personal property tax. (See "State Reimbursement of Property Tax Revenues – Public Utility Property and Tangible Personal Property Tax Loss Reimbursement.") Recent legislation reduced and hastened the elimination of existing reimbursement payments beginning with calendar year 2011.

Delinquency Procedures

The following is a general description of property tax delinquency procedures under Ohio law. The implementation of these procedures may vary in practice among Ohio counties. If real estate taxes and special assessments are not paid in the year in which they are due, they are to be certified by the County Fiscal Officer's office as delinquent. A list of current delinquent properties is then to be published in a newspaper of general circulation in the County. If the delinquent taxes and special assessments are not paid within one year after such certification, the properties are then also to be certified as delinquent to the Prosecuting Attorney. Five percent (5%) of all certified delinquent taxes and assessments collected by the County Treasurer is deposited in a special fund to be divided between the County Treasurer and the Prosecuting Attorney to be used solely for the collection of delinquent real property taxes and assessments. If the property owner so requests, a payment plan may be arranged with the County Treasurer. If such a payment plan is not adhered to or none is arranged, foreclosure proceedings may be initiated by the County. Ohio law also provides for notice by publication and mass foreclosure proceedings and sales after two years' delinquency. Proceeds from foreclosure sales of delinquent property become part of the current collection and are distributed as current collections to the taxing or assessing subdivisions in the County.

If personal property taxes are not paid at the time they are due, they are to be certified by the County Fiscal Officer's office as delinquent. Annually on December 1, one copy of the list of delinquent taxes is given to the County Treasurer, who is required to prepare and mail a bill for the taxes to the property owner. A second copy of the list is to be published in a newspaper of general circulation in the County. A third copy of the list is to be provided to the County Recorder, at which time it becomes a notice of lien for the taxes on the real and personal property of the property owner. If the property owner so requests, a payment plan may be arranged with the County Treasurer for delinquent personal property taxes. In collecting the delinquent personal property taxes, the County Treasurer may employ collectors. The County Treasurer may also collect the taxes by civil suit in the county court of common pleas, or may seize property of the taxpayer and, after notice, sell the property at public sale.

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State Reimbursement of Property Tax Revenues

Rollback and Homestead Exemption Reimbursement

The State reimburses taxing districts, including counties, for decreased tax revenues due to (a) the 10% reduction or "rollback" in certain non-commercial property taxes, (b) the 2-1/2% reduction applicable to certain owner-occupied housing, and (c) the flat, $25,000 reduction in taxable value applicable to certain elderly or disabled homeowners. Such reimbursements are subject to repeal or revision by the State.

A phase out of these reductions began in 2013. The 10% reduction for residential and agricultural properties and 2-1/2% additional reduction for owner-occupied residential property do not apply to new levies and replacement levies approved by voters after the August 6, 2013 election. Additionally, starting in the 2014 tax year, the $25,000 reduction in taxable value for certain elderly homeowners and homeowners with disabilities is being grandfathered out, with new reductions limited to property owners with total income less than or equal to $30,000. This figure is adjusted for inflation annually by the Tax Commissioner.

Public Utility Property and Tangible Personal Property Tax Loss Reimbursement

Public utility tangible personal property (with some exceptions) is currently assessed (depending on the type of property) from 25% to 88% of true value. Effective for collection year 2002, the assessed valuation of electric utility production equipment was reduced from 100% and natural gas utility property from 88% of true value, both to 25% of true value. Recent legislation established thresholds for receipt of those payments similar to the thresholds discussed above for compensation for forgone tangible personal property taxes, except that reimbursement payments for debt purposes within the 10-mill limitation would end after 2016. The State’s reimbursement payment to the County in Fiscal Year 2013 was $6.6 million, and the County received approximately $6.6 million from the State in Fiscal Year 2014. Commencing in tax year 2006, the assessment rate for electric utility transmission and distribution equipment was reduced from 88% to 85%, and the assessment rate for all electric company taxable property was reduced from 25% to 24%. As described herein, the General Assembly has from time to time exercised its power to revise the laws applicable to the determination of assessed valuation of taxable property and the amount of receipts to be produced by ad valorem taxes levied on that property, and may continue to make similar revisions. Ohio law grants tax credits to offset increases in taxes resulting from increases in the true value of real property. Legislation classifies real property as between residential and agricultural property and all other real property, and provides for tax reduction factors to be separately computed for and applied to each class. These tax credits apply only to certain voted levies on real property, and do not apply to unvoted levies or voted levies to pay debt charges on general obligation debt. Ohio law authorizes local municipalities, townships and counties to provide direct tax incentives in the form of real personal property tax exemptions to encourage new business investment projects and foster improved competitiveness of Ohio’s businesses that create new and retain existing job opportunities in “enterprise zones.” Twenty-six municipalities have created such areas within the County and require County approval for exemption agreements. The cities of Cleveland and East Cleveland have also created such areas, but do not need prior County approval for their exemption agreements.

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Municipal corporations and counties may create “community reinvestment areas” in which ad valorem tax abatement may be granted for any increased property valuation resulting from improvements to real property in the form of new construction or remodeling of existing structures by the property owner. In such areas, residential, commercial or industrial facilities are eligible for those real property tax incentives. This program is designed to be controlled at the local level by the local legislative body, including control over the size and number of such “community reinvestment areas” as well as the number of years of tax abatement. Currently, there are 42 community reinvestment areas in the County. The County does not believe that the creation of “enterprise zones” and “community reinvestment areas” has had or will have a material adverse effect on the County’s finances. In 2005, the State accelerated its phase-out of the tangible personal property tax so that after calendar year 2011, general business tangible personal property is no longer taxed. The reimbursement of both types of tangible personal property tax revenue losses were scheduled to phase out by calendar year 2018. Instead, recent legislation generally accelerates the phase-out and reduces payments, depending on the type of levy.

For fixed-rate levies, the reimbursement amounts for calendar year 2010 are compared to the "total available resources" of a taxing district. Total available resources includes: tangible personal and public utility property tax reimbursements; the taxing district's share of local government fund revenues for calendar year 2010; the current expense real and public utility taxes charged and payable for tax year 2009; any admissions tax collections in calendar year 2008; income tax collections for calendar year 2008; and its median estate tax distribution for the period 2006 through 2009.

If a taxing district's reimbursement payments are less than the threshold percentage for a year, then no further reimbursement is made; if the reimbursement payments exceed the threshold percentage, then the taxing district receives the amount in excess of the percentage. For calendar year 2011, the threshold percentage is 2%; for 2012, the percentage threshold is 4%, and for 2013 the percentage is 6%. As presently formulated, that reimbursement will continue indefinitely.

For fixed sum and unvoted debt levy losses, amounts will continue to be reimbursed (less the amount attributed to one-half mill) so long as the levy continues to be imposed for fixed-sum levy purposes, and so long as the levy continues to be imposed for debt purposes until 2018, in the case of unvoted debt levies. Fixed rate levies for purposes other than current expenses are reduced by 25% over 2010 reimbursement levels for calendar year 2011; they are reduced 50% for calendar year 2012; and reduced by 75% for calendar year 2013 and thereafter.

For additional information and a chart prepared by the Ohio Department of Taxation illustrating the amount of reimbursements for future years, go to http://tax.ohio.gov/channels/government/phase_out.stm.

Tax Rates

All references to tax rates under this caption are in terms of stated rates in mills per $1.00 of assessed valuation. The following are the rates at which the County and the overlapping taxing subdivisions levied ad valorem property taxes for tax year 2014 (collection year 2015).

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TAX TABLE A Tax Rates Within the County

Effective Real Property Tax Rate Taxing District School District Total Rate(a) Res./Agr.(b) All Other(b)

Bay Village Bay Village 155.14 93.74 101.38 Beachwood Beachwood 113.83 69.25 76.30 Beachwood Warrensville Heights 119.23 91.78 97.05 Bedford Bedford 120.85 89.86 99.32 Bedford Heights Bedford 121.05 90.06 99.52 Bedford Heights Orange 136.43 92.88 99.03 Bentleyville Chagrin Falls 147.63 85.17 95.04 Berea Berea 121.33 83.22 90.68 Berea Olmsted Falls 143.83 94.21 94.37 Bratenahl Cleveland 123.13 95.45 103.94 Brecksville Brecksville 110.64 73.60 77.43 Broadview Heights Brecksville 112.83 73.30 77.53 Broadview Heights North Royalton 101.53 75.20 75.30 Brooklyn Brooklyn 91.93 83.40 80.44 Brooklyn Heights Cuyahoga Heights 65.53 59.74 62.33 Brook Park Berea 109.28 75.19 82.03 Brook Park Cleveland 111.88 84.18 92.62 Chagrin Falls Township Chagrin Falls 139.93 78.85 87.34 Chagrin Falls Village Chagrin Falls 148.43 86.98 95.84 Cleveland Cleveland 119.83 92.15 100.64 Cleveland Heights Cleveland Hts. - Univ. Hts. 194.44 123.96 136.89 Cleveland Heights East Cleveland 135.95 91.28 115.70 Cleveland Berea 117.23 83.16 90.06 Cleveland Shaker Heights 224.46 136.69 164.55 Cuyahoga Heights Cuyahoga Heights 65.53 59.74 62.33 East Cleveland East Cleveland 134.73 90.06 114.48 Euclid Euclid 141.73 109.73 125.53 Fairview Park Fairview Park 134.10 94.45 99.33 Fairview Park Berea 116.33 82.07 89.10 Fairview Park Rocky River 128.38 87.16 102.85 Garfield Heights Garfield Heights 133.69 126.65 122.21 Garfield Heights Cleveland 134.33 106.65 115.14 Gates Mills Mayfield 121.95 83.96 88.85 Glenwillow Solon 108.93 76.40 86.57 Highland Hills Village Warrensville Heights 135.93 105.85 104.06 Highland Heights Mayfield 111.55 74.94 78.45 Hunting Valley Orange 119.63 76.08 82.23 Independence Independence 63.43 61.99 63.36 Lakewood Lakewood 165.06 107.49 121.93 Linndale Brooklyn 109.93 82.25 90.74 Lyndhurst South Euclid – Lyndhurst 142.53 101.90 100.65 Maple Heights Maple Heights 127.13 111.80 109.71 Mayfield Heights Mayfield 117.55 80.94 84.45 Mayfield Village Mayfield 114.85 75.16 79.02 Middleburg Heights Berea 109.98 75.17 82.24 Moreland Hills Chagrin Falls 146.03 84.95 93.44 Moreland Hills Orange 121.83 78.28 84.43 Newburgh Heights Cuyahoga Heights 138.93 111.25 118.58 North Olmsted North Olmsted 136.03 99.81 102.92

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Effective Real Property Tax Rate Taxing District School District Total Rate(a) Res./Agr.(b) All Other(b)

North Olmsted Olmsted Falls 141.33 95.75 95.34 North Randall Warrensville Heights 120.03 92.24 97.71 North Royalton North Royalton 99.33 73.34 73.80 North Royalton Brecksville 110.63 71.44 76.03 Oakwood Bedford 102.95 71.96 81.42 Olmsted Falls Olmsted Falls 141.38 93.04 92.60 Olmsted Falls Berea 117.88 81.06 87.92 Olmsted Township Olmsted Falls 155.53 100.45 101.27 Orange Orange 121.63 78.08 84.23 Orange Warrensville 122.33 94.88 100.15 Parma Parma 106.54 85.64 87.83 Parma Heights Parma 108.94 88.04 90.28 Pepper Pike Orange 124.03 80.48 86.33 Pepper Pike Beachwood 119.33 74.75 81.50 Richmond Heights Richmond Heights 129.43 90.95 90.75 Richmond Heights South Euclid – Lyndhurst 149.13 106.14 104.99 Rocky River Rocky River 127.48 86.45 102.00 Seven Hills Parma 110.14 89.24 91.48 Shaker Heights Shaker Heights 221.66 133.89 161.75 Solon Solon 109.43 76.77 87.03 Solon Orange 118.33 74.66 80.90 South Euclid South Euclid – Lyndhurst 147.38 106.75 105.41 South Euclid Cleveland Heights – Univ. Hts. 196.87 126.39 139.23 Strongsville Strongsville 117.41 75.45 77.49 University Heights Cleveland Hts. - Univ. Hts. 193.72 123.24 136.17 Valley View Cuyahoga Heights 67.83 62.04 64.63 Walton Hills Bedford 99.45 68.46 77.92 Warrensville Heights Warrensville Heights 124.93 94.22 99.93 Warrensville Orange 124.23 77.42 84.01 Westlake Westlake 103.35 70.55 74.00 Woodmere Orange 118.83 75.28 81.43

(a) Includes County-wide levies for the County, the Cleveland Metropolitan Park District, the Cuyahoga Community College District and the Cleveland-Cuyahoga County Port Authority, as well as levies for particular municipalities or townships, school districts, libraries and joint vocational school districts. (See “TAX TABLE B” that follows for a breakdown of the County and County-wide levies.) (b) Effective real property tax rate after application of tax credits described below.

Statutory procedures limit, by the application of tax credits, the amount realized by each taxing subdivision from real property taxation to the amount realized from those taxes in the preceding year plus both:  The proceeds of any new taxes (other than renewals) approved by the electors, calculated to produce an amount equal to the amount that would have been realized if those taxes had been levied in the preceding year.  Amounts realized from new and existing taxes on the assessed valuation of real property added to the tax duplicate since the preceding year. The tax credit provisions do not apply to amounts realized from taxes levied at a rate required to produce a specified amount, such as for debt service on voted general obligation debt, or from taxes levied inside the ten-mill limitation or any applicable charter tax rate limitation. To calculate the reduced amount to be realized, a reduction factor is applied to the stated rates of the tax levies subject to these tax credits. A resulting “effective tax rate” reflects the aggregate of those reductions, and is the rate at which real property taxes are in fact collected. As an example, the total overlapping tax rate of 119.83 mills for

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the 2015 tax collection year for the City of Cleveland-Cleveland Municipal School District is reduced by a reduction factor of 0.230976 or 27.68 mills for both residential and agricultural property and a reduction factor of 0.160145 or 19.19 mills for all other real property, which results in “effective tax rates” of 92.15 mills for residential and agricultural property and 100.64 mills for all other real property. See “TAX TABLE A.” Real property tax amounts are generally further reduced by an additional 10% (12.5% in the case of owner-occupied residential property). The State biennial budget approved in 2005 bill eliminates the 10% “rollback” for certain commercial and industrial real property (while it remains for all other real property), effective for the 2006 tax collection year and thereafter. See “Collections” for a discussion of the reimbursement by the State for this reduction. The following are the rates at which the County levied property taxes for the general categories of purposes in recent years both inside and outside the ten-mill limitation:

TAX TABLE B County Property Tax Rates – Voted and Unvoted(a)

Unvoted Levies Within Voted Levies Outside 10-Mill Limitation 10-Mill Limitation Total County Health and Voted Collection General Bond Unvoted Bond Human Developmental Voted and Year Fund Retirement Total Retirement Services Disabilities Total Unvoted

2010 0.90 0.55 1.45 0.27 7.70 3.90 11.87 13.32 2011 0.58(b) 0.87(b) 1.45 0.27 7.70 3.90 11.87 13.32 2012 0.60 0.85 1.45 0.17 7.70 3.90 11.77 13.22 2013 0.60 0.85 1.45 0.17 7.70 3.90 11.77 13.22 2014 0.60 0.85 1.45 0.00 8.70 3.90 12.60 14.05 2015 0.60 0.85 1.45 0.00 8.70 3.90 12.60 14.05

(a) County-wide property taxes are also levied on behalf of certain major political subdivisions or governmental entities as shown below for tax collection year 2015: Cleveland Metropolitan Park District – 2.75 Cuyahoga Community College District – 4.00 Cleveland-Cuyahoga County Port Authority – 0.13 Cuyahoga County Library – 2.50 (b) Amounts levied reflect, in part, a temporary reduction in debt service levy requirements due to a transfer of unspent bond proceeds to the Bond Retirement Fund and a resulting temporary increase in millage available to the General Fund.

In the budget proposed by the County Executive for the Fiscal Years 2016 and 2017, the levy for the General Fund would be reduced to 0.50 and the levy for the Bond Retirement Fund would be increased to 0.95. See the discussion of the ten-mill limitation, and the priority of claim on that millage for debt service on unvoted general obligation debt, under “COUNTY DEBT AND DEBT LIMITATIONS – Indirect Debt Limitations.” Only cities, villages, school districts, townships and regional transit authorities may, as may the County, levy ad valorem property taxes within the ten-mill limitation (subject to available statutory allocation of the 10 mills).

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Assessed Valuation

The following table classifies the County's assessed valuation of taxable property according to use:

Assessed Valuation County of Cuyahoga, Ohio (2015 Collection Year) Percent of Property Classification Amount Total Assessed Valuation Real Estate1 Residential/Agricultural $18,473,813,110 66.60% Commercial/Industrial/Mineral 8,336,875,110 30.10 Public Utility Real 27,901,090 0.10 Total Real Estate $26,838,589,310 96.80% Personal Property2 General $ 0 0.00% Public Utility Personal 894,863,800 3.20 Total Personal 894,863,800 3.10% Total Assessed Valuation $27,733,453,110 100.00% Source: County Fiscal Office

The assessed valuation of taxable property over the previous six years is set forth below:

Assessed Valuation County of Cuyahoga, Ohio Percentage Increase Tax Over Prior Year Collection Public Utility Total Year Real Estate1 Personal Property2, 3 Assessed Valuation 20104 $28,979,204,900 $654,490,330 $29,633,695,230 -5.92% 2011 29,153,170,350 673,170,690 29,826,341,040 0.65 2012 29,098,596,030 698,069,260 29,796,665,290 -0.10 20135 26,894,042,740 758,430,350 27,652,473,090 -7.20 2014 26,853,970,910 840,870,540 27,694,841,450 0.15 2015 26,838,589,310 894,863,800 27,733,453,110 0.14 Source: County Fiscal Office

1 Real property taxes collected in a calendar year are levied in the preceding calendar year on assessed values as of January 1 of that preceding year. Real property is assessed at 35% of market value and reappraised every six years, with triennial updates every three years. 2 Tangible personal property taxes collected in a calendar year are levied in the same calendar year, on assessed values during and at the close of the most recent fiscal year of the taxpayer (ending on or before March 30 of said calendar year) at tax rates determined in the preceding year. 3 Estimated by the Cuyahoga County Fiscal Office 4 Year of triennial update 5 Year of sexennial reappraisal

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Largest Assessed Values

The following tables list the owners of the real estate and public utility properties with the highest assessed valuation in the County. Percentages of total assessed valuation are based on a total assessed valuation of $27,733,453,110 for collection year 2015. Largest Assessed Values County of Cuyahoga, Ohio (2015 Collection Year)

Real Estate Taxpayers Percent of County's Total Assessed Assessed Name Type of Business Valuation Valuation 1. Cleveland Clinic Foundation Health Care $249,855,260 0.9% 2. County of Cuyahoga Government 154,466,450 0.6 3. City of Cleveland Government 111,535,720 0.4 4. Key Center Properties LLC Hotel & Office Real Estate 80,559,150 0.3 5. Southpark Mall LLC Retail Real Estate 73,292,270 0.3 6. Beachwood Place LTD Retail Real Estate 65,324,350 0.2 7. University Health Systems, Inc. Health Care 62,776,320 0.2 8. Progressive Insurance Insurance 61,008,580 0.2 9. Eaton Corporation Global Technology 53,413,820 0.2 10. PNC Corporation (formerly Banking 47,637,190 0.2 National City Bank) Source: County Fiscal Office

Public Utility Taxpayers Percent of County's Total Assessed Assessed Name Type of Business Valuation Valuation The Illuminating Company Electric Utility $650,623,090 2.3% East Ohio Gas Gas Utility 112,521,960 0.4 American Transmission Electric Utility 94,687,700 0.3 Columbia Gas of Ohio, Inc. Gas Utility 26,240,500 0.1 Source: County Fiscal Office

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The following are the stated rates at which the County levied ad valorem property taxes for the general categories or purposes indicated.

County-Wide Property Tax Levies - Voted and Unvoted (Expressed in Mills per $1.00 of Valuation) Collection Year 2015 County of Cuyahoga, Ohio Rate Levied for Beginning Collection Year Year of Election Year of Final Year Fund 2015 Collection of Collection General 0.60 N/A (Inside) ------Bond Retirement 0.85 N/A (Unvoted) Board of Developmental Disabilities 3.90 2005 2006 Continuing Mental Health & Welfare 4.80 2008 2009 2016 Health Services 3.90 2013 2014 2018 Total 14.05 Source: Ohio Department of Taxation and County Fiscal Office

See the discussion of the ten-mill unvoted tax limitation, and the priority of claim thereon for debt service on unvoted general obligation debt of the County and all overlapping taxing subdivisions, under "COUNTY DEBT AND DEBT LIMITATIONS – Statutory Debt Limitations Generally" herein. See also TAX TABLE B.

Collection of Ad Valorem Property Taxes and Special Assessments

The following are the amounts billed and collected for County ad valorem property taxes for recent tax collection years. “Billed” includes current charges, plus current and delinquent additions and less current and delinquent abatements. “Collected” includes collections of current “Billed” and of current and delinquent additions. “Current % Collected” is the percentage of current charges billed which is collected in the collection year billed. The figures shown include amounts for County property tax levies only, and do not include any County-wide property taxes levied on behalf of other political subdivisions or governmental entities, such as the Cleveland Metropolitan Park District, the Cuyahoga Community College District or the Cleveland-Cuyahoga County Port Authority.

Ad Valorem Property Tax Collections and Delinquencies (Real Estate/Public Utility) County of Cuyahoga, Ohio % of % of Current Current Delinquent Total Total Taxes Collection Current Taxes Taxes Taxes Taxes Taxes Collected to Year* Levied Collected Collected Collected Collected Current Levy 2009 $396,656,766 $366,755,483 92.46% $16,014,399 $382,769,882 96.50% 2010 390,025,025 357,309,084 91.61 16,268,732 374,811,808 96.10 2011 391,054,735 356,161,963 91.07 15,269,151 371,431,114 94.98 2012 389,234,859 351,405,833 90.28 18,625,846 370,031,679 95.07 2013 364,260,628 334,506,534 91.83 15,389,021 349,895,555 96.06 2014 390,158,164 353,768,300 90.67 15,749,553 369,517,852 94.71 Source: County Fiscal Office

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Budgeting, Tax Levy and Appropriations Procedure

The Revised Code contains detailed provisions regarding County budgeting, tax levy and appropriation procedures.

The law generally requires that a subdivision prepare, and then adopt after a public hearing, a tax budget approximately six months before the start of the next Fiscal Year. The tax budget is then presented for review by the County Budget Commission. However, a County Budget Commission may either waive the requirement for a tax budget or permit an alternative form of tax budget with more limited information. In 2002, the Cuyahoga County Budget Commission voted to waive the requirement of preparing and adopting a tax budget for future Fiscal Years and prescribed an alternative form of a tax budget information document that continues to be used by the County and other subdivisions in the County.

Under current requirements, County budgeting for each Fiscal Year formally begins in July with the preparation and submission to the County Budget Commission of tax budget information for the following Fiscal Year. Among other items, the tax budget must show the amounts required for debt service, the estimated receipts for payment from sources other than ad valorem property taxes and the net amount for which an ad valorem property tax levy must be made, and the portions of the levy to be inside and outside the ten-mill limitation. The tax budget then is presented for review by the Budget Commission. The Budget Commission holds a public hearing, reviews the budget and issues the Certificate of Estimated Resources which is the basis for County appropriations and expenditures for the coming fiscal year (which is the calendar year).

Upon approval of the tax budget and issuance of the Certificate of Estimated Resources, the County Budget Commission certifies its actions to the Council together with the approved tax rates. Thereafter, and before October 1 of each year, the Council levies the approved taxes and certifies them to the proper County officials. The approved and certified tax rates are reflected in the tax bills sent to property owners during the collection year. Real property taxes are payable on a calendar year basis in arrears, generally in two installments with the first due usually in January and the second due in June or later.

Under the Charter, the County Executive is to submit a proposed operating budget to County Council prior to the start of the next fiscal year. In accordance with State law, the Council must adopt a permanent appropriation measure for a Fiscal Year by April 1 and may adopt a temporary appropriation measure for the Fiscal Year to provide for expenditures from January 1 until the permanent appropriation measure is adopted. The County has maintained a policy of adopting the budget before the end of the current fiscal year.

The Council adopted an ordinance (O2011-0036) on September 13, 2011, establishing a biennial operating and capital budget process. The first such biennial budget covered the 2012-2013 fiscal period and was adopted by Council on December 16, 2011. The biennial budget process calls for a mid-biennium update of the second year of the budget. The County Council adopted the required update to the biennial for Fiscal Year 2013 in December 2012. The second biennial budget covered the 2014-2015 fiscal period and was adopted by Council on December 10, 2013. The County Executive submitted a recommended budget to County Council for biennial budget year 2016 – 2017. While the budget as submitted to Council will likely not be identical to the County Executive’s recommended budget, the County expects the final biennial budget to be approved by County Council by the end of 2015. Both the biennium budget and the update are final annual appropriation measures. Although called "permanent," the appropriation measure may be, and often is, amended during the Fiscal Year. Annual appropriations may not exceed the County Budget Commission's official estimates of resources, and the County Fiscal Officer is to certify that the County's appropriation measures do not appropriate moneys in excess of the amounts set forth in those estimates.

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Investment of Funds

According to the County Treasurer, all moneys of the County, specifically moneys in the general fund, the bond retirement fund, and all project funds containing proceeds of any debt issuances of the County, are presently or will be deposited and invested in accordance with the requirements of Ohio law, and in particular the Uniform Depository Act. Under Revised Code Section 135.31, the County may deposit active moneys, which are moneys deposited in public depositories and determined to be necessary to meet current demands on the treasury, in (i) a commercial account and withdrawable in whole or in part on demand, (ii) a negotiable order of withdrawal account as authorized in the Consumer Checking Account Equity Act of 1980, and (iii) a money market deposit account as authorized in the Garn-St. Germain Depository Institutions Act of 1982.

The County's investment of inactive moneys, which are moneys in excess of the amount determined to be needed as active moneys, is governed by Revised Code Section 135.35. Pursuant to Section 135.35, a county may deposit or invest any part or all its inactive moneys in (i) United States Treasury bills, notes or bonds issued by the United States treasury, (ii) bonds, notes or debentures issued by any federal government agency or instrumentality, (iii) time certificates of deposit or savings or deposit accounts, (iv) bond or other obligations of the State or political subdivisions of the state, (v) no-load money market mutual funds, (vi) the Ohio subdivision's fund established under Section 135.45 ("STAR Ohio"), (vii) securities lending agreements, (viii) commercial paper, (ix) bankers acceptances, (x) written repurchase agreements, and (xi) certain debt interests. The permitted investments described above are subject to certain restrictions as set forth under Section 135.35. Except in certain circumstances, investments of the County's inactive moneys must mature within five years from the date of investment.

All investments of the County, except for investments in securities in no-load money market mutual funds, and STAR Ohio, must be made through members of the National Association of Securities Dealers, Inc., banks, savings banks, or savings and loan associations regulated by the State superintendent of financial institutions or through institutions regulated by the comptroller of the currency, Federal Deposit Insurance Corporation, or board of governors of the Federal Reserve System.

Certain investment practices remain exclusive to those fiscal officers who have completed additional training and approved by the Auditor of State in accordance with the Uniform Depository Act. Further, counties are required to have a written investment policy on file with the Auditor of State pursuant to Revised Code Section 135.35. Absent such a policy, a county is restricted to investing inactive moneys in (i) time certificates of deposit or savings or deposit accounts, (ii) no-load money market mutual funds, and (iii) STAR Ohio. The County currently has a written investment policy on file with the Auditor of State. Additionally, County Council passed ordinance number 02014-0021 on October 14, 2014 to establish guidelines for the County's investment policy and financial reporting requirements. The ordinance requires the Office of Budget and Management to submit a public presentation to Council on the budget not later than March 31.

As of May 31, 2015, the County's $880.8 million investment portfolio was invested as follows: $108.7 million in STAR Ohio and available on one day's notice; $22.1 million in collateralized or FDIC- guaranteed certificates of deposit; $8.0 million in foreign notes, $470.3 million in noncallable U.S. Agency Obligations maturing in 2015 through 2018; $90.0 million in callable U.S. Agency Obligations maturing in 2017 to 2018; $109.7 million in U.S. Treasury Notes and Bonds; $71.9 million in non-interest-bearing demand deposits. Although the particular components of the portfolio will necessarily change from time to time as investments mature and money is reinvested, the County does not expect those components or the duration of its investment portfolio to vary materially in the foreseeable future.

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OTHER MAJOR COUNTY GENERAL FUND REVENUE SOURCES

Described under this caption are major sources of revenue to the County's General Fund in addition to ad valorem taxes. See the County's Audited Financial Statements for the Fiscal Year ending December 31, 2014 attached hereto as APPENDIX C for further information regarding other sources of revenue for the General Fund and other funds. Permissive Taxes

State law authorizes counties to levy certain permissive taxes (sales and use, real property transfer, motor vehicle license and utilities services) without a vote of the people, subject to repeal by referendum (if the resolution levying the tax is not enacted as an emergency measure) or subject to repeal by initiative (if the resolution is adopted as an emergency measure). Any referendum or initiative is held only if requested by a petition signed by a specified percentage of voters and filed timely and in appropriate form. Council may also submit the question of levying these taxes to a vote of the electors and, if approved at an election, they are not thereafter subject to repeal by voter-initiated action. The County currently has in effect a sales and use tax, which became effective in 1969 and was increased in 1987 and again in 2007, and a real property transfer tax and fee, which became effective in 1985, both of which provide revenues for the County’s General Fund. See “County Sale and Use Tax” below for additional information on sales and use tax. The County also currently has in effect a motor vehicle license tax, in the amount of $15 per vehicle. The proceeds of that tax are required to be used for the construction, maintenance and repair of streets and highways, including bridges. The County has not yet exercised its option to impose a utility service tax. County Sales Tax

The County currently levies a 1.25% sales and use tax, 0.5% of which is imposed pursuant to resolutions adopted by the Board in 1969, 0.5% of which is imposed pursuant to resolutions adopted by the Board in 1987 and 0.25% of which is imposed pursuant to resolutions adopted by the Board in 2007. The 0.5% portions of the sales and use tax authorized in 1969 and 1987 are in effect for a continuing period of time and the 0.25% portion authorized in 2007 is in effect for a period of 20 years ending in 2027. No portion of this sales and use tax is now subject to repeal by referendum or initiative. The tax is collected by the State and distributed monthly to the County. The County’s sales and use tax receipts for the past five Fiscal Years and projected receipts for Fiscal Year 2015, rounded to the nearest $1,000, are shown below: County Sales Tax Revenues County of Cuyahoga, Ohio Year Rate Amount Collected 2010 1.25 $204,063,000 2011 1.25 216,589,000 2012 1.25 226,787,000 2013 1.25 237,307,000 2014 1.25 246,767,000 2015* 1.25 259,270,000 Source: County Fiscal Office

*Projected

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Real Property Transfer Tax

The County currently levies a 3.0 mill real property transfer tax, an unvoted tax that was enacted in 1985 pursuant to a resolution of the Board. That tax is in addition to the 1.0 mill real property transfer fee imposed by State law. The County's real property transfer tax is not subject to repeal or reduction by referendum or initiative. Recent receipts and projected receipts for Fiscal Year 2015 for the Real Property Transfer Tax, rounded to the nearest $1,000, are provided in the table below.

Real Property Transfer Tax Revenues County of Cuyahoga, Ohio Year Amount 2010 $7,376,000 2011 7,042,000 2012 8,816,000 2013 9,573,000 2014 10,488,000 2015* 10,180,000 Source: County Fiscal Office Local Government Fund

The Ohio local government fund was created by statute and is comprised of designated State revenues which are distributed to each county and then allocated among the County and cities, villages and townships in the County on the basis of statutory formulas. The County's portions of local government fund receipts in recent years, and projected receipts for Fiscal Year 2015 rounded to the nearest $1,000, are provided in the table below.

Local Government Fund Revenues County of Cuyahoga, Ohio Year Amount 2010 $33,544,000 2011 38,704,000 2012 22,990,000 2013 17,367,000 2014 17,186,000 2015* 18,664,000 Source: County Fiscal Office

Nontax Revenues

The County has issued obligations to which it has pledged its Nontax Revenues. See “OTHER LONG TERM OBLIGATIONS OF THE COUNTY - Non-Tax Revenue Obligations” below for a further description of such obligations. The Nontax Revenues included all moneys of the County which are not moneys raised by taxation, to the extent available for payment of the debt service on such obligations, including but not limited to the following: (a) charges for services and payments received in reimbursement for services; (b) payments in lieu of taxes now or hereafter authorized by State statute; (c) fines and forfeitures; (d) fees from properly imposed licenses and permits; (e) investment earnings on any funds of the County that are credited to the County’s General Fund; (f) proceeds from the sale of assets; (g) rental income; (h) grants from the United States of America and the State; and (i) gifts and donations. The most significant amounts of Nontax Revenues are derived from charges for services, investment earnings, intergovernmental grants and reimbursements, fines and forfeitures and licenses and permit fees.

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The following table summarizes historical collections for the past five years, and projected collections for Fiscal Year 2015, of certain of the more significant sources of funds identified by the County from its General Fund as Nontax Revenues (rounded to the nearest $1,000).

Charges for Investment Inter- Fines and (b) (c) Year Services(a) Earnings governmental Forfeitures Other Total 2010 $38,126,000 $18,040,000 $9,023,000 $11,073,000 $17,781,00 $94,043,000 2011 36,947,000 12,526,000 8,533,000 9,654,000 10,618,000 78,278,000 2012 44,339,000 6.638.000 9,182,000 9,376,000 5,340,000 74,874,000 2013 47,187,000 - 0 - 7,817,000 9,389,000 7,364,000 71,756,000 2014 50,558,000 447,000 9,218,000 10,634,000 13,510,000 84,368,000 50,031,000 4,101,000 10,045,000 9,672,000 6,336,000 80,205,000 2015*

(a) Includes real property transfer fees of $2,231,000 in 2010, $2,347,464 in 2011, $2,938,745 in 2012, $3,191,000 in 2013, and $3,496,000 in 2014, and $3,393,000 in 2015. (b) Intergovernmental revenue excludes Local Government Fund allocations and State property tax reimbursement revenues. (c) Includes one-time revenue of $9.6 million in 2010 from a legal settlement and a restitution payment of $3.6 million in 2011.:

The table above does not include Nontax Revenues received by the County for specific projects which Nontax Revenues are to be used solely to pay all or a portion of the debt service on specific Nontax Revenues Bonds of the County. See “COUNTY DEBT AND DEBT LIMITATIONS -- Other Long Term Obligations of the County -- Nontax Revenue Obligations” herein.

COUNTY DEBT AND DEBT LIMITATIONS

Statutory Debt Limitations Generally

The County may issue voted general obligation bonds, and notes issued in anticipation thereof, pursuant to a vote of the electors of the County. Ad valorem taxes, without limitation as to amount or rate, assessed to pay debt service on voted bonds are authorized by the electors at the same time they authorize issuance of such voted debt. Such voted debt is subject to the direct debt limitations but is not subject to the indirect debt limitation. (See "Direct Debt Limitations"). Voted obligations may also be issued by certain overlapping subdivisions.

General obligation bonds and notes issued in anticipation thereof, may also be issued by the County (and certain overlapping political subdivisions) without a vote of the electors. Unvoted debt is subject to both the direct and indirect debt limitations. (See "Direct Debt Limitations" and "Indirect Debt Limitation.")

Following are descriptions of the statutory and constitutional debt and ad valorem property tax limitations applying to the County's presently outstanding and projected bond and note indebtedness, and certain other long term financial obligations of the County. Nontax revenue bonds and sales tax supported bonds issued under Revised Code Section 133.081 are exempt from the direct and indirect ("ten-mill") debt limitations (see discussion of exempt debt, below).

Direct Debt Limitations

Section 133.07 of the Revised Code provides that, exclusive of certain "exempt debt" (discussed below), the net principal amount of unvoted debt of a County may not (i) exceed 1.0% of the total value of all property in the County as listed and assessed for taxation. Section 133.07 of the Revised Code also ______*Projected

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provides that the net principal amount of both voted and unvoted general obligation debt of the County, may not exceed a sum equal to 3.0% of the first $100,000,000 of the assessed valuation, plus 1.50% of such valuation in excess of $100,000,000 and not in excess of $300,000,000, plus 2.50% of such valuation in excess of $300,000,000. These two limitations, referred to as "the direct debt limitations," may be amended from time to time by the Ohio General Assembly.

The Revised Code provides that certain county debt is exempt from direct debt limitations ("exempt debt"). Exempt debt includes general obligation debt to the extent that such debt is "self-supporting" (that is, revenues from the facilities financed are sufficient to pay applicable operating and maintenance expenses and related debt service and other requirements); bonds issued in anticipation of the collection of special assessments; bonds issued for the purpose of housing county agencies, to the extent that revenues derived from leasing such facilities, other than that attributable to unvoted county taxes, is sufficient to pay debt service; revenue bonds; bonds supported by receipts of the sales tax (such as the Series 2015A Bonds herein described); bonds issued in anticipation of the collection of current revenues or in anticipation of the proceeds of a specific tax levy; bonds issued for certain emergency purposes; bonds issued to pay final judgments; bonds for acquiring or constructing jail, detention or correctional facilities; and bonds for permanent improvements to the extent that debt service thereon is supported by a pledge, pursuant to Section 133.07(C)(9), Revised Code, of certain moneys to be received by the county. Notes issued in anticipation of "exempt" bonds also are exempt debt. In calculating debt subject to the direct debt limitations, the amount of money in a county's bond retirement fund allocable to the principal amount of non-exempt debt is deducted from gross non-exempt debt.

Without consideration of money in the County's Bond Retirement Fund, and based on the currently applicable assessed valuation of $27,733,453,110:

a) The total voted and unvoted non-exempt debt that the County could issue subject to the 3%, 1-1/2%, 2-1/2% limitation described above, is $691,836,253. The total County non-exempt debt which will be outstanding after delivery of the Series 2015A Bonds is $269,950,000 leaving a borrowing capacity of $421,886,253 within the limitation for combined voted and unvoted non-exempt debt; and

(b) The total unvoted non-exempt debt that the County could issue subject to the 1% limitation is $277,334,501. The total County non-exempt debt subject to such limitation which will be outstanding after delivery of the Series 2015A Bonds is $269,950,000, leaving a borrowing capacity of $7,384,501 within the 1% limitation for unvoted non-exempt debt.

Indirect Debt Limitation

Unvoted general obligation bonds and bond anticipation notes cannot be issued by the County unless the tax required to be imposed on taxable property in the County for the payment of the debt service on (a) such bonds (or the bonds in anticipation of which notes are issued), and (b) all outstanding unvoted general obligation bonds (including bonds in anticipation of which notes are issued) of the combination of overlapping taxing subdivisions in the County resulting in the highest tax rate required for such debt service, in any one year, is ten mills or less per $1.00 of assessed valuation. This indirect debt limitation, the product of which is commonly referred to as the "ten-mill limitation," is imposed by a combination of the provisions of Article XII, Sections 2 and 11 of the Ohio Constitution and Section 5705.02, Revised Code.

The ten-mill limitation is the maximum aggregate millage for all purposes that may be levied on any single piece of property by all overlapping taxing subdivisions without a vote of the electors. The ten

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mills which may be levied without a vote of the electors is in fact levied, collected and allocated among the County and its overlapping taxing subdivisions for general fund purposes pursuant to a statutory formula.

This "inside" millage allocated to each overlapping taxing subdivision is required by present Ohio law to be used first for the payment of debt service on unvoted general obligation debt of the subdivision, unless provision has been made for its payment from other sources. The balance of the millage is available for other purposes of the subdivision. Thus, to the extent this inside millage is required for debt service of a taxing subdivision (which may exceed the formula allocation to that subdivision), the amount that would otherwise be available to that subdivision or to other such overlapping subdivisions for general fund purposes is reduced.

A subdivision's allocation of inside millage can be exceeded only in the event it is required for the payment of debt service on its unvoted general obligation debt and, in that case, the inside millage allocated to the other overlapping subdivisions would be reduced proportionally to bring the aggregate levies of inside millage down to ten mills.

In case of notes issued in anticipation of the issuance of unvoted general obligation bonds, the highest annual debt service estimated for the bonds anticipated by the notes is used to calculate the millage required.

Revenue bonds and notes, such as the Series 2015A Bonds, are not included in debt subject to the ten-mill limitation since they are not general obligations of the County, and neither the general revenue nor the full faith and credit of the County are pledged for their payment.

The ten-mill limitation applies to all unvoted general obligation debt even if debt service on some of such debt is expected to be paid in fact from special assessments, utility earnings or other sources.

In calculating whether or not unvoted debt to be issued by the County is within the ten-mill limitation, it is necessary to determine the total outstanding debt service requirements within the ten-mill limitation of all the taxing subdivisions overlapping the County.

Based upon the maximum debt service required for all general obligation debt of the County (see "General Obligation Debt Service Requirements" herein) (but excluding therefrom debt service requirements for voted debt and any sales tax bonds), the highest debt service requirement in any year for all County debt subject to the ten-mill limitation is estimated to be approximately $29,737,094 in 2016. The payment of that annual debt service would require a levy of approximately 1.0722 mills per $1.00 of assessed valuation based on current assessed valuation of $27,733,450,110. Of this maximum annual debt service requirement, the County expects nearly all to be paid from sources other than ad valorem taxes, such as county sales tax. If those other sources for any reason are not available, the debt service could be met from the amounts produced by the millage currently levied for all purposes by the Issuer within the ten-mill limitation.

In calculating whether or not unvoted debt to be issued by the County is within the ten-mill limitation, it is necessary to determine which combination of overlapping taxing subdivisions within the County (including the County) has the highest outstanding debt service requirements within the ten-mill limitation. There are 57 municipal corporations, two townships and all or portions of 33 school districts (including vocational school districts) in the County. Thus to determine the highest overlapping debt service requirements for unvoted debt, it is necessary to examine the requirements for combinations of such overlapping subdivisions, including municipal corporations, townships and school districts.

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The City of Bedford presently has general obligation debt outstanding theoretically requiring approximately 8.4364 mills, Bedford City School District presently has general obligation debt outstanding theoretically requiring approximately 0.5711 mills, and the Greater Cleveland Regional Transit Authority has general obligation debt outstanding theoretically requiring approximately 0.6831. The millage of these taxing subdivisions, when combined with the 1.0722 of the mills of the County, totals 10.7628 aggregate mills.

Bond Anticipation Notes

Under Ohio law, notes, including renewal notes, issued in anticipation of the issuance of general obligation bonds may be issued and outstanding from time to time up to a maximum period of twenty years from the date of issuance of the original notes, except that the maximum maturity for notes issued in anticipation of general obligation bonds payable from special assessments is approximately five years. Any period in excess of five years must be deducted from the permitted maximum maturity of the notes anticipated, and portions of the principal amount of notes outstanding for more than five years must be retired in amounts at least equal to, and payable not later than, principal maturities that would have been required if bonds had been issued at the expiration of the initial five year period.

None of the County's debt is currently in the form of general obligation bond anticipation notes.

Bond anticipation notes may be retired at maturity from the proceeds of the sale of renewal notes, the proceeds of the sale of bonds anticipated by such notes, from other available funds of the County, or from a combination of these sources.

The ability of the County to retire its outstanding bond anticipation notes from the proceeds of the sale of either renewal notes or bonds will be dependent upon the marketability of such renewal notes or bonds under market conditions then prevailing. Under present Ohio law, there is no ceiling on the annual interest rate permitted on general obligation bonds and notes of counties.

County General Obligation Debt Currently Outstanding

The County has the following general obligation debt issues outstanding:

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Outstanding General Obligation Debt County of Cuyahoga, Ohio

Final Balance Outstanding Issue Dated Date Maturity as of Dec. 2, 2015

Limited Tax General Obligation Bonds 5/1/1993 12/1/2018 $2,400,000 General Obligation Refunding Bonds, Series 2005 4/21/2005 12/1/2020 33,985,000 Various Purpose General Obligation Bonds, Series 2009A 12/22/2009 12/1/2019 20,155,000 Various Purpose General Obligation Bonds, Series 2009B (Taxable) 12/22/2009 12/1/2034 86,195,000 Capital Improvement and Refunding Bonds, Series 2012A 12/13/2012 12/1/2037 92,670,000 Taxable Capital Improvement Refunding Bonds, Series 2012B (Taxable) 12/13/2012 12/1/2024 8,495,000

Total $243,900,000 Source: County Fiscal Office

The following tables list the County's outstanding general obligation debt (before reduction for moneys in the County's Bond Retirement Fund) represented by notes and bonds, together with debt service information (prior to issuance of the Series 2015A Bonds):

Analysis of Outstanding Debt County of Cuyahoga, Ohio (as of December 2, 2015)

A. Total Debt Outstanding: $995,150,000

B. Exempt Debt: Revenue Bonds (MetroHealth System) 230,305,000* Nontax Revenue Bonds & Appropriation 383,120,000 Obligations Sales Tax Revenue Bonds 137,825,000 Port Authority Bonds 2,400,000 Total Exempt Debt $753,650,000

C. Total Non-Exempt Debt: (A minus B) $241,500,000 Source: County Fiscal Office * As of December 31, 2014

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The following schedule presents the County's actual debt service requirements for all general obligation debt as of December 2, 2015:

General Obligation Debt Service Requirements County of Cuyahoga, Ohio

Calendar Total Year Principal Interest Debt Service 2016 $ 17,810,000 $ 11,927,094 $ 29,737,094 2017 18,605,000 11,132,362 29,737,362 2018 19,475,000 10,287,518 29,762,518 2019 19,490,000 9,454,260 28,944,260 2020 14,850,000 8,512,913 23,362,913 2021 7,630,000 7,800,482 15,430,482 2022 7,990,000 7,447,510 15,437,510 2023 6,585,000 7,143,428 13,728,428 2024 6,755,000 6,889,946 13,644,946 2025 9,715,000 6,628,380 16,343,380 2026 9,985,000 6,114,112 16,099,112 2027 10,330,000 5,602,663 15,932,663 2028 10,710,000 5,031,727 15,741,727 2029 11,110,000 4,439,895 15,549,895 2030 11,520,000 3,826,164 15,346,164 2031 11,950,000 3,189,830 15,139,830 2032 12,390,000 2,529,990 14,919,990 2033 12,815,000 1,877,342 14,692,342 2034 13,290,000 1,169,580 14,459,580 2035 3,490,000 435,800 3,925,800 2036 3,630,000 296,200 3,926,200 2037 3,775,000 151,000 3,926,000 Total $243,900,000 $121,888,196 $365,788,196 Source: County Fiscal Office

No bonds have been authorized by the electors that have not yet been issued.

The County is not and has not been in default in the payment of debt service on any of its general obligation bonds or notes.

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The following schedule presents the County's actual debt service requirements for the County’s outstanding Sales Tax Revenue Bonds:

Sales Tax Revenue Bonds Debt Service Requirements County of Cuyahoga, Ohio

Calendar The Series 2015A Bonds Prior Bonds Total Year Principal Interest Principal Interest Debt Service 2016 - $285,341.24 $275,000.00 $6,233,893.76 $6,794,235.00 2017 - 296,031.26 280,000.00 6,228,393.76 6,804,425.02 2018 $460,000.00 296,031.26 285,000.00 6,222,793.76 7,263,825.02 2019 470,000.00 289,131.26 285,000.00 6,217,093.76 7,261,225.02 2020 485,000.00 270,331.26 5,730,000.00 6,211,393.76 12,696,725.02 2021 495,000.00 260,631.26 5,930,000.00 5,940,643.76 12,626,275.02 2022 505,000.00 250,731.26 6,210,000.00 5,661,693.76 12,627,425.02 2023 515,000.00 240,631.26 6,525,000.00 5,351,193.76 12,631,825.02 2024 525,000.00 230,331.26 6,850,000.00 5,024,943.76 12,630,275.02 2025 550,000.00 209,331.26 285,000.00 4,682,443.76 5,726,775.02 2026 560,000.00 195,581.26 6,100,000.00 4,668,193.76 11,523,775.02 2027 585,000.00 173,181.26 6,405,000.00 4,363,193.76 11,526,375.02 2028 610,000.00 149,781.26 6,725,000.00 4,042,943.76 11,527,725.02 2029 630,000.00 125,381.26 7,060,000.00 3,706,693.76 11,522,075.02 2030 655,000.00 100,181.26 7,415,000.00 3,353,693.76 11,523,875.02 2031 685,000.00 73,981.26 7,635,000.00 3,131,243.76 11,525,225.02 2032 715,000.00 46,581.26 7,875,000.00 2,892,650.00 11,529,231.26 2033 735,000.00 22,968.76 8,270,000.00 2,498,900.00 11,526,868.76 2034 - - 8,685,000.00 2,085,400.00 10,770,400.00 2035 - - 9,115,000.00 1,651,150.00 10,766,150.00 2036 - - 9,575,000.00 1,195,400.00 10,770,400.00 2037 - - 9,955,000.00 812,400.00 10,767,400.00 2038 - - 10,355,000.00 414,200.00 10,769,200.00 Total $9,180,000.00 $3,516,160.16 $137,825,000.00 $92,590,550.16 $243,111,710.32

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Other Long Term Obligations of the County

A. Leases

The County has entered into several lease agreements for acquiring land, buildings and equipment for various purposes. The table sets forth the anticipated lease payments due through 2029. See also “COUNTY ADMINISTRATIVE BUILDING” below.

Year Amount Due 2015 $42,517,524 2016 42,368,564 2017 41,390,309 2018 40,370,896 2019 40,314,265 2020-2024 202,871,922 2025-2029 124,288,610 2030-2034 27,790,387 2035-2039 30,682,833 2040 3,222,584 Total $597,757,888 Less amount representing interest ($172,014,914) Present Value of Net Minimum Lease Payments $425,742,974

Included in these lease payments are payments for group homes ($9.0 million) at the Board of Developmental Disabilities, the Global Center for Health Innovation ($341 million) and the new County Administrative Building ($75.5 million).

B. Hospital Revenue Bonds

The Board of Hospital Trustees of MetroHealth has issued a number of series of hospital revenue bonds on behalf of the County. Those bonds, issued pursuant to a master bond indenture agreement between the County, acting by and through the Board, and a corporate trustee are special obligations, payable solely from the net revenues derived from the operation of MetroHealth and other money available to the Board of Hospital Trustees. While the County provides certain subsidies to MetroHealth, the hospital revenue bonds do not represent or constitute a general obligation debt or pledge of the faith and credit of the County, and the County is not required to use or apply to the payment of debt charges on those obligations any funds or revenues from any source other than the net revenues of MetroHealth. In addition, MetroHealth has entered into certain interest rate swaps and has certain other long-term obligations under lease purchase and loan agreements and for compensated absences. For additional information concerning the obligations of MetroHealth as they relate to the County, see "COUNTY SERVICES AND RESPONSIBILITIES – Health" herein and "Note 29-28 – The MetroHealth System” to the County’s Audited Financial Statements for the Fiscal Year ending December 31, 2014 attached hereto as APPENDIX C.

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C. Nontax Revenue Obligations

The County has issued obligations to which it has pledged its Nontax Revenues. See "OTHER MAJOR COUNTY GENERAL FUND REVENUE SOURCES – Nontax Revenues" for the receipts of the County's Nontax Revenues in recent fiscal years.

The County has the following nontax revenue debt outstanding:

Outstanding Nontax Revenue Debt County of Cuyahoga, Ohio

Final Balance Outstanding Issue Dated Date Maturity as of Dec. 2, 2015

Taxable Economic Development Revenue Bonds, Series 1992A (Gateway Arena Project) 9/15/1992 6/1/2022 $24,500,000 Taxable Economic Development Revenue Bonds, Series 2010A (Brownfield) 9/3/2010 6/1/2030 14,085,000 Taxable Economic Development Revenue Bonds, Series 2010B (Commercial 9/3/2010 6/1/2030 9,105,000 Redevelopment) Taxable Economic Development Revenue Refunding Bonds, Series 2010C (Gateway) 9/3/2010 6/1/2023 29,230,000 Taxable Economic Development Revenue Refunding Bonds, Series 2010D (Shaker 9/3/2010 12/1/2030 2,410,000 Square) Recovery Zone Facility Economic Development Revenue Bonds, Series 2010F 12/16/2010 12/1/2027 200,235,000 (Medical Mart/Convention Center) Taxable Economic Development Revenue Bonds, Series 2010G (Medical 12/16/2010 12/1/2019 50,890,000 Mart/Convention Center) Taxable Economic Development Revenue Bonds, Series 2013A (Steelyard Commons) 10/30/2013 12/1/2037 3,990,000 Taxable Economic Development Revenue Bonds, Series 2013B (Westin Hotel) 12/30/2013 12/1/2042 5,685,000 Taxable Economic Development Revenue 12/17/2014 12/1/2027 22,185,000 Bonds, Series 2014B (Western Reserve Fund) Tax-Exempt Economic Development 12/17/2014 12/1/2027 20,805,000 Refunding Bonds, Series 2014C (Medical Mart/Convention Center) Total $383,120,000 Source: County Fiscal Office

There is a priority and parity pledge of the Nontax Revenues for the payment of ten of the outstanding bond issues of the County listed above. There is a subordinate pledge of Nontax Revenues for the payment of the County's Taxable Economic Development Revenue Refunding Bonds, Series 2010D (Shaker Square Project) (the “Shaker Square Bonds”), currently outstanding in the principal

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amount of $2,410,000. The Shaker Square Bonds were issued to refinance amounts originally borrowed in 2000 for the purpose of making a loan to pay a portion of the cost of improvements to the Shaker Square Complex, a commercial shopping district. The County paid $129,751 of the debt service on the Shaker Square Bonds from its Nontax Revenues in 2013 and paid $126,918 in 2014. The final maturity of the Shaker Square Bonds is December 1, 2030.

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The debt service schedule for those eight categories of obligations is shown in the following table:

Medical Mart / Commercial Steelyard Brownfield Convention Westin Hotel Western Fiscal Redevelopment Gateway Bonds Shaker Square Commons Bonds Center Bonds Bonds Reserve Total Year Bonds (1992 & 2010C) (2010D) Bonds (2010A) (2010F, 2010G, (2013B) (2014B) (2010B) (2013A) 2014C)

12/1/2016 $1,377,990 $890,535 $8,832,634 $173,131 $32,100,210 $285,981 $284,453 $784,480 $44,729,414

12/1/2017 1,374,687 890,430 8,802,009 166,538 27,418,906 289,659 404,453 784,480 40,131,161

12/1/2018 1,373,214 893,157 8,774,760 164,750 27,419,856 287,679 402,233 784,480 40,100,129

12/1/2019 1,383,006 893,506 8,737,745 296,875 27,412,806 285,219 399,533 784,480 40,193,170

12/1/2020 1,374,566 891,795 8,700,621 290,813 31,286,256 287,279 401,233 784,480 44,017,041

12/1/2021 1,373,220 893,060 8,662,042 323,125 31,264,306 288,779 402,358 784,480 43,991,369

12/1/2022 1,373,493 892,095 8,623,980 316,125 31,269,856 289,684 402,808 784,480 43,952,520

12/1/2023 1,380,083 888,943 6,561,088 318,625 31,289,006 285,026 402,678 2,784,480 43,909,928

12/1/2024 1,373,065 888,533 - 320,375 31,273,156 285,031 402,078 9,219,480 43,761,718

12/1/2025 1,382,280 890,681 - 321,500 31,276,056 289,431 401,096 9,326,230 43,887,275

12/1/2026 1,394,129 888,475 - 109,697 31,275,556 288,431 399,646 2,890,830 37,246,764

12/1/2027 1,388,888 891,809 - 115,881 31,287,400 287,038 402,671 - 34,373,688

12/1/2028 1,384,940 892,475 - 106,756 - 285,238 400,040 - 3,069,449

12/1/2029 1,381,989 890,472 - 117,734 - 287,813 401,540 - 3,079,548

12/1/2030 1,379,738 890,652 - 108,197 - 289,938 402,540 - 3,071,064

12/1/2031 - - - - - 286,150 403,040 - 689,190

12/1/2032 - - - - - 286,650 402,940 - 689,590

12/1/2033 - - - - - 286,650 402,125 - 688,775

12/1/2034 - - - - - 286,150 400,575 - 686,725

12/1/2035 - - - - - 289,600 402,925 - 692,525

12/1/2036 - - - - - 287,263 399,450 - 686,713

12/1/2037 - - - - - 589,400 400,425 - 989,825

12/1/2038 ------400,575 - 400,575

12/1/2039 ------404,188 - 404,188

12/1/2040 ------401,650 - 401,650

12/1/2041 ------403,250 - 403,250

12/1/2042 ------803,700 - 803,700

Total $20,695,287 $13,366,618 67,694,878 3,250,122 364,573,373 6,624,086 11,134,199 $29,712,380 $517,050,942

D. Economic Development Guaranty Bonds

In April 2014, the County was the issuer of $17,000,000 Taxable Economic Development Revenue Bonds, Series 2014A (Flats East Development LLC Project) (the "Series 2014A Flats Bonds"), funding, in part, development costs of a mixed-use residential, office, and retail project on the banks of

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the Cuyahoga River adjacent to Cleveland's central business district. The project is being completed in two phases, with the first of the two phases already complete. The total development cost of both phases is approximately $425 million. The Series 2014A Flats Bonds debt service costs are secured and funded by project revenues, but subordinate to private commercial loans. The County has agreed to provide a guaranty of debt service payments to bondholders, subject to annual appropriation. A debt service reserve fund, a mortgage (also subordinate to the private commercial loans) and individual guarantees from the principals of the project developer are available to the County and/or bondholders as additional security for the Series 2014A Flats Bonds.

E. Ohio Public Works Commission Loans

The County has six outstanding loans to the Ohio Public Works Commission ("OPWC") pursuant to which the OPWC provided funds to the County for the construction of sewage collection facilities and sewer lines. The current outstanding loans (as of July 1, 2015) are as follows:

Balance Final Loan Name Loan Amount Outstanding Maturity North County Trunk Sewer $ 453,918.72 $ 90,783.68 7/1/2019 Metro Health Sanitary Sewer 130,654.41 19,598.17 7/1/2018 Schaaf Rd. Bridge 1,251,250.00 719,468.75 1/1/2027 Sanitary Sewer Improvements 236,209.60 188,967.68 7/1/2031 Maple Hts. Sanitary Sewer Improvements 76,605.00 76,605.00 7/1/2031 Barton, Bronson & Cook Sanitary Sewer 1,000,000.00 1,000,000.00 1/1/2036 Totals $3,148,637.73 $2,095,423.28

Source: Ohio Public Works Commission

All of the County's loans through the OPWC carry a 0.00% interest rate.

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F. Ohio Water Development Authority Loans

The County has 18 outstanding loans from the Ohio Water Development Authority ("OWDA") pursuant to which the OWDA provided funds to the County for the construction of various water and sewer improvements. The current outstanding loans are as follows:

Interest Balance Final Loan Name Loan Amount Rate Outstanding Maturity Cuyahoga County Lab $1,487,337.98 4.18% $54,101.93 1/1/2016 Interceptor Sewer Construction 270,473.78 4.16 19,444.48 7/1/2016 Trunk Sewer Construction 1,935,140.91 4.04 459,086.41 1/1/2019 Scottish Highlands Sewer 1,225,007.35 4.04 211,693.55 1/1/2018 CSO Improvements 305,878.64 3.35 178,113.36 7/1/2025 Suffolk Estates Pump Station 199,179.50 3.25 119,039.16 7/1/2026 Woods Pump Station 574,900.27 3.25 388,111.09 7/1/2027 CSO Imprmts/E. 38th & 40th St. 764,988.00 3.25 516,437.96 7/1/2027 Fitch Rd. Sewer 1,531,654.45 3.25 1,034,009.03 7/1/2027 Echo Hills WWTP Elimination 1,674,119.73 3.36 1,209,850.77 7/1/2028 Stearns & Cook Rds. San. Sewer 490,430.91 3.53 397,903.99 7/1/2030 Cook Mackenzie Sanitary Sewer 610,392.42 3.52 469,571.79 7/1/2029 Thornapple Pump Station 851,927.30 3.70 658,169.63 7/1/2029 Sewer Repairs 2,196,265.41 3.25 1,847,872.06 7/1/2032 Fernhill Sewer Replacement 1,579,534.78 2.66 1,329,104.61 7/1/2032 N. Granger Sewer Replacement 486,347.05 2.62 287,327.93 7/1/2031 Dewey Rd. Pump Station 2,671,858.09 3.28 1,941,043.83 7/1/2032 Jefferson Dr. Sewer Lining 378,483.00 2.66 209,839.27 7/1/2032 Totals $19,338,064.52 $12,007,809.10

G. Certificates of Participation

In May 2014, the County entered into a lease-purchase agreement (the "Hotel Lease") with the Cleveland-Cuyahoga County Port Authority (the "CCPA") to fund a portion of the costs of the construction of an approximately 600-room convention headquarters hotel adjacent to the Cleveland Convention Center and Global Center for Health Innovation (the "Hotel"). Under the Hotel Lease, the County is leasing the Hotel from the CCPA. The Hotel Lease consists of one initial term running from May 29, 2014 through December 31, 2014, and 30 renewable one-year lease terms which run from 2015 through 2044, and expire annually at the end of the County's fiscal year.

The annual base rent that the County must pay to the CCPA under the Hotel Lease was securitized as $230,885,000 Certificates of Participation (the "2014 Hotel Certificates") and sold to investors. The County is not a party to the 2014 Hotel Certificates. In addition, the 2014 Hotel Certificates, the Hotel Lease and the obligation to make base rent payments under the Hotel Lease are subject to annual appropriation by the County and do not represent or constitute bonded indebtedness, a debt of, or a general obligation of the County. Neither the full faith and credit nor the taxing power of the County is pledged to secure the 2014 Hotel Certificates. Furthermore, because the Hotel Lease consists of 30 renewable one-year lease terms that expire at the end of each fiscal year, the 2014 Hotel Certificates are not considered lease-purchase debt under Ohio law. Accordingly, the 2014 Hotel Certificates have been excluded from the County's debt presentation.

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As of January 1, 2015, the outstanding balance on the 2014 Hotel Certificates is $230,885,000.

The following table sets forth the annual base rent payments under the Hotel Lease.

2014 Certificates of Participation Calendar Capitalized Debt Year Principal Interest Interest Service 2016 $11,008,344 $7,238,527 $3,769,817 2017 $9,300,000 11,008,344 - 20,308,344 2018 10,200,000 10,543,344 - 20,743,344 2019 10,700,000 10,033,344 - 20,733,344 2020 11,250,000 9,498,344 - 20,748,344 2021 11,800,000 8,935,844 - 20,735,844 2022 12,400,000 8,345,844 - 20,745,844 2023 13,015,000 7,725,844 - 20,740,844 2024 13,675,000 7,075,094 - 20,750,094 2025 14,350,000 6,391,344 - 20,741,344 2026 15,075,000 5,673,844 - 20,748,844 2027 15,825,000 4,920,094 - 20,745,094 2028 16,600,000 4,128,844 - 20,728,844 2029 3,300,000 3,298,844 - 6,598,844 2030 3,450,000 3,133,844 - 6,583,844 2031 3,575,000 3,004,469 - 6,579,469 2032 3,720,000 2,870,406 - 6,590,406 2033 3,875,000 2,708,906 - 6,583,906 2034 4,025,000 2,553,906 - 6,578,906 2035 4,200,000 2,392,906 - 6,592,906 2036 4,575,000 2,210,406 - 6,785,406 2037 4,775,000 2,011,406 - 6,786,406 2038 4,975,000 1,802,500 - 6,777,500 2039 5,200,000 1,584,844 - 6,784,844 2040 5,650,000 1,357,344 - 7,007,344 2041 5,900,000 1,110,156 - 7,010,156 2042 6,150,000 852,031 - 7,002,031 2043 6,425,000 582,969 - 7,007,969 2044 6,900,000 301,875 - 7,201,875 Total $230,885,000 $137,065,282 $360,711,755

County Administrative Building

Effective February 1, 2013, the County entered into an agreement of lease (the "Administrative Building Lease") with Geis Property Management, LLC to lease a built-to-suit County headquarters building (the "Administrative Building"). The Administrative Lease, which contains an option to purchase the property at the end of the Lease for $1.00, was assumed by CCPA in April 2013 as part of the Port Authority's financing for the project. The Administrative Building Lease consists of a single term, which runs through July 15, 2040.

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The annual base rent that the County must pay to the CCPA under the Administrative Building Lease was securitized as $75,465,000 Development Lease Revenue Bonds, Series 2013 (Administrative Headquarters Project) (Cuyahoga County, Ohio, Lessee) (the "2014 Administrative Building Certificates") and sold to investors. The County is not the issuer of the 2014 Certificates. In addition, the 2014 Administrative Building Certificates, the Administrative Building Lease and the obligation to make base rent payments under the Administrative Building Lease are subject to annual appropriation by the County and do not represent or constitute bonded indebtedness, a debt of, or a general obligation of the County. Neither the full faith and credit nor the taxing power of the County is pledged to secure the 2014 Administrative Building Certificates. The Administrative Lease is subject to annual appropriations, the 2014 Administrative Building Certificates are not considered lease-purchase debt under Ohio law. Accordingly, the 2014 Administrative Building Certificates have been excluded from the County's debt presentation.

Debt Outstanding

The Debt Tables attached list the County’s outstanding debt represented by bonds and provide information with respect to County and overlapping general obligation debt allocations and debt service requirements on the County’s outstanding general obligation debt and on County obligations payable only from non-tax revenues. The County is not and has not been, in the last 50 years, in default in the payment of debt service on any of its bonds or notes or in a condition of default under the financing documents relating to any of its issues of revenue bonds; however, the County makes no representation as to the existence of a condition of default resulting from a default by any private entity under any financing documents relating to its industrial development or hospital improvement revenue bonds. Future Financings

The County anticipates an issuance of Additional Bonds during the first half of 2016 to fund costs of renovating and otherwise improving the 1,200-space County-owned Huntington Park Garage, including the provision of ancillary improvements, in downtown Cleveland. The amount of the Additional Bonds has not been determined. The County anticipates issuing approximately $60,000,000 of Excise Tax Revenue Bonds contemporaneously with the Series 2015A Bonds. The Excise Tax Revenue Bonds will be payable solely from the County Excise Tax on spirituous liquor, beer, wine and other beverages and cigarettes sold in the County for the purpose of paying the cost of constructing, renovating, improving or repairing professional sports facilities. From time to time, the County may consider additional financing opportunities. FINANCES OF THE COUNTY

General Fund and Financial Outlook

The General Fund is the County’s main operating fund, from which most expenditures for County administrative, justice system and public safety purposes and certain expenditures for County economic development purposes are paid and into which most revenues received by the County for those purposes are deposited. The County also expends General Fund money to supplement other amounts available for certain social services and health and safety purposes. The General Fund receives money from many sources, but primarily from sales and use taxes and ad valorem property taxes levied by the County, local government assistance funds from the State and certain charges for services, fines and forfeitures, investment earnings and other miscellaneous non-tax revenues.

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County officials, including the Fiscal Office and its Office of Budget and Management, closely monitor County revenues and spending. As most local governments, the County is affected by economic conditions (i.e. unemployment, inflation, etc.) and changes in revenues received from the State and federal governments for programs for which the County is responsible. As described in detail below, the County’s General Fund receipts over the past five Fiscal Years have reflected the difficult economic conditions experienced nationally and some significant changes in State assistance, and County officials have adjusted General Fund expenditures over time in reaction to those conditions and changes. As a result, the County has maintained and expects to continue to maintain strong General Fund cash balances in excess of 25% of annual operating expenditures. Sales and use tax receipts, the largest source of County General Fund revenues, typically account for over 66% of General Fund revenues. The level of such receipts varies significantly based on economic conditions. Collections were relatively stable between Fiscal Years 2005 and 2007, during which period the average annual rate of nominal growth was approximately 1.6% (including the impact of an expansion in the base that started in 2005). In Fiscal Year 2008, the County began receiving collections from an additional 0.25% sales tax levy approved by the Board. With the additional 0.25% levy, sales and use tax receipts increased to $215.8 million in that Fiscal Year. At the end of Fiscal Year 2008 and into Fiscal Year 2009, total sales and use tax receipts dropped severely as local, regional and national economic conditions worsened. Overall, in Fiscal Year 2009 the County’s sales and use tax receipts fell by 10.4% (to $193.3 million). In Fiscal Year 2010, sales and use tax receipts climbed by 5.6% (to $204.1 million), with most of the increase being attributable to an expansion of the sales tax base (managed Medicaid care organizations) by the State that became effective in October of 2009. As the regional economy started to rebound in Fiscal Year 2011, receipts grew by 6.1% in 2011 (to $216.6 million) and increased again by 4.9% in 2012 to $226.8 million. In 2013, sales tax grew 4.6% to $237.3 million. In Fiscal Year 2012 monthly collections started to exceed the inflation-adjusted average for the first time since before the economic downturn began, signaling growth attributable to economic activity. Sales tax receipts in Fiscal Year 2013 were $237.3 million, a 4.6% increase from the Fiscal Year 2012 level, and in Fiscal Year 2014, increased by 4.0% to $246,767,000. Projected sales and use tax revenues for Fiscal Year 2015 are $259.3 million, an anticipated increase of 4.0% over the prior Fiscal Year. See “OTHER MAJOR GENERAL FUND REVENUE SOURCES – County Sales and Use Tax.” Ad valorem property tax receipts in the General Fund have remained relatively steady since Fiscal Year 2008. Those property tax receipts were $19.3 million in Fiscal Year 2008 and dropped slightly in Fiscal Year 2009 ($18.9 million). The decreases in both those years were due primarily to a change in the State homestead exemption law that decreased the amount of property taxes paid by certain senior citizens, but increased the amount of reimbursements received from the State to make up for the exemption. In Fiscal Year 2010, the County changed the allocation of its unvoted property tax (inside millage) between the General Fund and its Debt Retirement Fund, and General Fund property tax receipts increased to $22.1 million. A triennial adjustment in assessed valuations in 2009 (first effective for collection year 2010), and a shift of property tax dollars to the Debt Retirement Fund decreased the property tax revenue available to the General Fund to $14.2 million in Fiscal Year 2011, $14.8 million in Fiscal Year 2012, $13.9 million in fiscal year 2013 and $14.0 million in 2014. The Fiscal Officer undertook a reappraisal of real property in the County in 2012, which resulted in a 7.2% decrease in its assessed valuation for tax year 2012 (collection year 2013) that will decrease the revenue derived from unvoted property tax collections available to the General Fund. See “AD VALOREM PROPERTY TAXES.” County General Fund receipts from the State Local Government Fund (“LGF”) distributions in Fiscal Years 2011 and 2012 were $38.7 million and $22.9 million, respectively. Fiscal Year 2012 was the first year a 50% reduction in State revenue allocations began to take effect. The County’s LGF receipts in Fiscal Year 2013 were reduced by the full 50% State imposed cut and totaled approximately $17.4 million. In Fiscal Year 2014, LGF receipts were further reduced to $17.2 million and are projected to total

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approximately $18.7 million for Fiscal Year 2015. See “OTHER MAJOR GENERAL FUND REVENUE SOURCES – Local Government Assistance Funds.” The County’s nontax revenues were $94.0 million in Fiscal Year 2010, but decreased to $78.3 million in Fiscal Year 2011 and increased slightly to $74.9 million in Fiscal Year 2012. Nontax revenues were $71.8 million in Fiscal Year 2013 and $84.4 million in Fiscal Year 2014. Projected 2015 nontax revenue will be $80.2 million. The decrease in nontax revenue in the aggregate has been significantly impacted by the reduction in investment income in recent years. Investment income in the General Fund totaled $18.0 million in fiscal year 2010 and was recorded as $447,000 for fiscal year 2014. Historically low interest rates as well as the amortization of purchase premiums at the sale of certain securities in the County investment portfolio have contributed to the decline. Beginning in 2013, the County Treasurer has instituted a policy whereby investments may not be purchased at a premium. Increases in revenue from charges for services ($47.2 million in Fiscal Year 2013 and $60.6 million in Fiscal Year 2014) and declines in fees derived from sales of real property contributed to the decline in nontax revenues from Fiscal Year 2010. The County expects total nontax revenue to recover incrementally as collection trends and investment earnings recover. In Fiscal Year 2009, County officials, responding to projected budget shortfalls resulting from anticipated declines in General Fund receipts from several sources, adopted a budget plan that imposed across-the-board cuts ranging from 8% to 11.5% and a freeze on hiring and wage increases and thereafter implemented a number of programmatic cuts and further expenditure reductions and instituted a mandatory three-day furlough for employees. These actions resulted in a 9.1% ($37.3 million) decrease in General Fund expenditures in Fiscal Year 2009 to $323.5 million. The County also instituted an early retirement incentive program in 2009, resulting in over 850 employees retiring from the County by the beginning of 2010. The County achieved significant cost savings ($30 million on an all funds basis) net of the payments to OPERS from that program, and those savings were carried over into subsequent budgets. As a result of the early retirement incentive program, layoffs and attrition, the County’s General Fund staffing expenditures were $133.6 million in Fiscal Year 2010 or 7.6% lower than in Fiscal Year 2009. However, expenditures in Fiscal Year 2010 were $454.0 million, including $366.1 million for ongoing operations and $117.9 million that were transferred from the General Fund from the proceeds of new General Fund revenue instituted in 2007 and 2010 for the Global Center project. In light of the slow economic recovery and anticipated cuts in State revenue, the County implemented a Fiscal Year 2011 operating budget that incorporated budget cuts of over $15 million across programs funded through the General Fund. The savings were achieved by implementing a mandatory five-day furlough for County employees and requiring reductions in General Fund program budgets ranging from 1.5% to 7.5%. As a result, cash basis expenditures for ongoing operations decreased by approximately 24.4% in Fiscal Year 2011 to $327.4 million (non-GAAP basis). The reductions in General Fund program expenditures were primarily attributable to staffing reductions and other organizational realignments implemented by the County Executive. The net result of operations for the General Fund resulted in an increase of $22.2 million in the County’s carryover General Fund cash balance at year end. The County adopted a biennial operating budget for the first time for Fiscal Years 2012-2013. The adopted budget balanced estimated resources with expenditure levels and included funding for some new initiatives for economic development and investment in information technology. Operating expenditures and uses totaled $354.1 million in 2013. Spending in the core areas of County government remained flat and the General Fund ended the year with a $4.0 million operating surplus (non-GAAP budgetary basis) . General Fund expenditures were $380.0 million in Fiscal Year 2014, including transfers to fund required operating payments for the Global Center project.

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The County’s cash basis General Fund balance at the end of Fiscal Year 2014 was $200.1 million compared to $187.4 million at the end of Fiscal Year 2013, $183.4 million at the end of Fiscal Year 2012, $178.5 million in Fiscal Year 2011, and $131.2 million at the end of Fiscal Year 2010. The ending cash balance in Fiscal Year 2010 was net of a transfer of General Fund resources accumulated since 2008 to fund the construction of the Global Center project. The County implemented GASB Statement No. 54 in 2011. The implementation of this protocol for reporting fund balances resulted in a restatement of the 2011 ending year cash balance in the General Fund. The net result on this restatement was an increase in ending balance in 2011 of $25.1 million in the General Fund. Financial Reports and Audits

The County's fiscal year is the calendar year. The County maintains its accounts, appropriations and other fiscal records in accordance with the procedures established and prescribed by the Auditor of the State of Ohio (the "State Auditor"). The State Auditor is charged by Ohio law with the responsibility of auditing the accounts and records of each taxing subdivision and most agencies and public institutions.

A financial report for each fiscal year is required to be filed with the State Auditor pursuant to Sections 319.11 and 117.38 of the Revised Code. Such reports are required to be submitted to the County Fiscal Officer within 150 days of the close of each fiscal year. The State Auditor audits the County's financial examinations of financial transactions.

The Audited Basic Financial Statements for the Year Ended December 31, 2014 are attached hereto as APPENDIX C. The most recent audit by the State Auditor of the County's financial statements, was completed through the fiscal year ending December 31, 2014. No findings for recovery were required. Certain deficiencies in internal control, noncompliance findings and recommendations were made in letters to the County on August 21, 2015 and October 26, 2015. The County has corrected certain of the deficiencies, noncompliance findings and recommendations and the remaining deficiencies, noncompliance findings and recommendations will be reviewed for further corrective actions.

Except for audits by, or by certified public accountants at the direction of, the State Auditor pursuant to Ohio law and audits under federal program requirements, no independent audit of the Council's financial records is made.

The County prepares its annual financial reports on the basis of generally accepted accounting principles ("GAAP"). The Governmental Accounting Standards Board and Financial Accounting Standards Board are the principal sources used to determine the accounting principles employed. These principles, among other things, provide for the government-wide statements presented on the full accrual basis of accounting for governmental funds, for agency funds, and for certain fiduciary funds; and for a full accrual basis of accounting for proprietary funds and for certain fiduciary funds. The principles further provide for the government-wide statement of net assets and statement of activities as well as the preparation of balance sheets for each fund, and statement of revenues, expenditures, and changes in fund balances (governmental funds) or statement of revenues, expenses and changes in retained earnings/equity (proprietary funds).

The County issued a Comprehensive Annual Financial Report (“CAFR”), including General Purpose Financial Statements/Basic Financial Statements, for its Fiscal Years 2012 through 2014. Each such CAFR was submitted to the Government Finance Officers Association (“GFOA”) for consideration for a Certificate of Achievement for Excellence in Financial Reporting, which is awarded to those governmental reporting agencies that comply with the reporting standards of the GFOA. The County was awarded a Certificate for its CAFRs for each Fiscal Year 2012 through 2013, and the GFOA is currently reviewing the CAFR for Fiscal Year 2014.

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The County has submitted its budget plan for review in all but four years during the period from 1988 through 2014. For each year it submitted its budget plan to GFOA, including the biennial period of Fiscal Years 2012 and 2013, the County has received the Distinguished Budget Presentation Award from the GFOA. The GFOA established the Distinguished Budget Presentation Award in 1984 to encourage and assist state and local governments to prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and local Budgeting and the GFOA’s recommended practices on budgeting and then to recognize individual governments that succeed in achieving that goal. Information regarding the County’s Revenues and Expenditures is included as Appendix D. County Insurance The County maintains comprehensive insurance coverage with serve private insurance companies in several areas including real property, building contents, professional liability, and directors and officer liability. See "Note 23 – Risk Management" to the County's Audited Financial Statements for the Fiscal Year ending December 31, 2014 attached hereto as APPENDIX C. Pursuant to statutes enacted in 1985 and 2003, the liability of political subdivisions in Ohio, including counties, has been significantly reduced. As a general rule, Ohio law provides that political subdivisions such as the County have immunity from liability in damages for injury, death, or loss to persons or property allegedly caused by an act or omission of such political subdivisions or their employees in connection with governmental and proprietary functions, as defined in the Ohio statutes. The statutes have no effect on any liability imposed by federal law or other federal cause of action. Pursuant to Ohio law, there are, however, five areas in which a political subdivision may be held liable for such loss. These include the negligent operation of a motor vehicle by employees engaged within the scope of their employment and authority; negligent performance of proprietary functions; negligent failure to keep public roads, highways, streets, avenues, alleys and bridges in repair, and other negligent failure to remove obstructions from public roads; negligence of employees due to physical defects within or upon the grounds of buildings used in the performance of governmental functions, excluding jails, juvenile detention workhouses and other detention facilities; and liability specifically imposed by statute. Ohio law also imposes a two-year statute of limitations and puts limits on the damages that may be recovered from such political subdivisions. No punitive or exemplary damages can be recovered, and any insurance benefits are deducted from any award against a political subdivision. Although there is no limitation with respect to compensatory damages representing a person's economic loss, there is a $250,000 per person ceiling on the compensatory damage that represents a person's non-economic loss in cases other than wrongful death, in which case there is no maximum limitation.

CRIMINAL MATTERS REGARDING FORMER COUNTY OFFICIALS

Since 2008, 16 former County officials and employees have been charged in United States District Court with violations of federal law, including bribery. The charges have stemmed from an FBI investigation into public corruption within the County. Of those charged, 11, including the former County Auditor, have pleaded guilty. In addition, three former government officials, including a former County Commissioner and one former employee, have been convicted of public corruption charges after trials. Finally, two former County employees have been charged and have pleaded guilty in the State criminal justice system. One former County employee has pleaded not guilty and is awaiting trial.

In connection with the foregoing charges, the County has received approximately $3,611,803 in forfeitures paid by the defendants in the various aforementioned criminal cases. In addition, the County received a total of $2,532,157 in restitution payments made directly to the County by individuals convicted in such cases.

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The County does not believe that the investigation, or any criminal charges or convictions resulting from the investigation, will have a material effect on the future financial position of the County.

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DEBT TABLE A

Principal Amounts of Outstanding Debt; Leeway for Additional Debt Within Direct Debt Limitations (as of December 2, 2015)

A. Total outstanding debt: $ 995,150,000

B. Exempt debt: Outstanding Principal Category Amount

Revenue bonds issued for hospital improvements 230,305,000*

Revenue bonds issued under Revised Code Chapter 165 payable from nontax revenues 383,120,000

General obligation bonds issued for the acquisition, construction and equipping of a port authority educational and cultural facility 2,400,000

Sales tax supported bonds 137,825,000

Total exempt debt: 753,650,000

C. Total nonexempt debt (A minus B): $ 241,500,000

D. 1% of assessed valuation (unvoted nonexempt debt limitation): 277,334,531

E. Total unvoted nonexempt debt outstanding: 241,500,000

F. Debt leeway within 1% unvoted debt limitation (but subject to indirect debt limitation) (D minus E): 35,834,531

G. 3%, 1½% and 2½% of assessed valuation (3% of 1st $100,000,000, 1½% of next $200,000,000, and 2½% of amount in excess of $300,000,000 of assessed valuation) (voted and unvoted nonexempt debt limitation): 691,836,328

H. Total nonexempt debt outstanding: 241,500,000

I. Debt leeway within 3%, 1½% and 2½% debt 450,336,328 limitation (G minus H): *As of December 31, 2014

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DEBT TABLE B

Various County and Overlapping General Obligation (GO) Debt Allocations (Principal Amounts)

Portion of Debt Borne by Percentage Properties Within Outstanding Allocable to the County Political Subdivision Indebtedness(a)(b) County(c)

The County $ 194,222,000 100.00% $ 194,222,000 All Cities wholly within the County 380,861,540 100.00% 380,861,540 All Villages wholly within the County 26,386,117 100.00% 25,783,942 All Townships wholly within the County 1,810,000 100.00% 1,810,000 All School Districts (S.D.) wholly within the County 828,981,751 100.00% 828,263,420 Greater Cleveland Regional Transit Authority 172,765,000 100.00% 172,765,000 Independence City S.D. 13,474,992 100.00% 13,474,992 Chagrin Falls Exempted Village S.D. 19,489,521 62.89% 12,256,960

(a) General obligation debt as of December 31, 2014. (b) General obligation debt exempt from statutory debt limitations is nevertheless included in this table. (c) Determined, on a percentage basis, by dividing the amount of the assessed valuation of that territory of the political subdivision which is within the boundaries of the County by the total assessed valuation of the political subdivision.

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DEBT TABLE C

Outstanding Metro Health System Revenue Bonds (as of December 31, 2014)

Obligation Purpose Initial Outstanding Interest Final Amount Amount Rate Maturity

Hospital Improvement and Refunding Revenue To refund Series 1989 Bonds, to pay costs of $70,000,000 $17,600,000 4.6%- 2027 Bonds, Series 1997 (The MetroHealth System constructions of various improvements and 5.6% Project additions to the MetroHealth Medical Center and to pay costs of issuance

Hospital Improvement and Refunding Variable Rate To pay costs of constructing, renovating, $74,535,000 $71,280,000 Variable 2035 Demand Revenue Bonds, Series 2005 (The furnishing, equipping and otherwise MetroHealth System Project) improving a long-term care and skilled nursing facility and refunding certain prior

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Hospital Revenue Bonds, Taxable Series 2009B (The To pay costs of hospital facilities, including $75,000,000 $75,000,000 8.223% 2040 MetroHealth System) (Build America Bonds - Direct three helicopters, multi-specialty ambulatory Payment) centers, equipment and renovations

Hospital Revenue Bonds, Series 2011 (The Refunding certain prior bonds issued in 1997 $67,455,000 $43,315,000 3.16% 2019 MetroHealth System) and 2009

Hospital Refunding Revenue Bonds, Series 2012 Refunding certain prior bonds issued in 2003 $24,710,000 $23,110,000 Variable 2033

APPENDIX C AUDITED BASIC FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED DECEMBER 31, 2014

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IE jal Financial Report De^ynber 31, 2014

About the Cover

Pictured on the cover is Cuyahoga County Administrative Headquarters.

The Cuyahoga County Administrative Headquarters, built in 2014, was conceived and designed to meet the needs of the residents of Cuyahoga County. The Silver LEED certified headquarters is in a convenient, centralized location for the public to conduct business. The Administrative Headquarters is one of many County-funded projects that contributed to re-energizing a once dormant part of downtown Cleveland. It is the catalyst for exciting new businesses in the East Ninth area including Metropolitan at the Nine hotel and apartments, Heinen’s, and Geiger’s Clothing. Surrounded by the Playhouse Square district, the Headquarters was a major component of the County’s Real Estate Property Consolidation Project which will save taxpayers millions over 20 years.

Cuyahoga County, Ohio Comprehensive Annual Financial Report For the Year Ended December 31, 2014

Dennis G. Kennedy, CPA Cuyahoga County Fiscal Officer

Prepared by The Cuyahoga County Fiscal Department: Amy Himmelein, CPA Controller Introductory Section Cuyahoga County, Ohio Comprehensive Annual Financial Report For the Year Ended December 31, 2014 Table of Contents

Page I. Introductory Section

Table of Contents ...... i Letter of Transmittal ...... v List of Principal Officials ...... xiv Organizational Chart...... xvi GFOA Certificate of Achievement ...... xvii

II. Financial Section

Independent Auditor’s Report ...... 1

Management’s Discussion and Analysis ...... 5

Basic Financial Statements

Government-wide Financial Statements:

Statement of Net Position ...... 15

Statement of Activities ...... 16

Fund Financial Statements:

Balance Sheet – Governmental Funds ...... 18

Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities ...... 20

Statement of Revenues, Expenditures and Changes In Fund Balances – Governmental Funds ...... 22

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...... 24

Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Budget Basis) – General ...... 25 Human Services ...... 26 Health and Human Services Levy ...... 27 County Board of Developmental Disabilities ...... 28 Children Services ...... 29

Statement of Fund Net Position – Proprietary Funds ...... 30

Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ...... 31 - i -

Cuyahoga County, Ohio Comprehensive Annual Financial Report For the Year Ended December 31, 2014 Table of Contents (continued)

Page

Statement of Cash Flows – Proprietary Funds ...... 32

Statement of Fiduciary Assets and Liabilities – Agency Funds ...... 34

Notes to the Basic Financial Statements ...... 35

Combining and Individual Fund Statements and Schedules

Combining Statements – Nonmajor Governmental Funds:

Fund Descriptions ...... 124

Combining Balance Sheet – Nonmajor Governmental Funds ...... 126

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ...... 127

Combining Balance Sheet – Nonmajor Special Revenue Funds ...... 128

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds ...... 132

Combining Balance Sheet – Nonmajor Capital Projects Funds ...... 136

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Capital Projects Funds ...... 137

Combining Statements – Nonmajor Enterprise Funds:

Fund Descriptions ...... 138

Combining Statement of Fund Net Position – Nonmajor Enterprise Funds ...... 139

Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Enterprise Funds ...... 140

Combining Statement of Cash Flows – Nonmajor Enterprise Funds ...... 141

Combining Statements – Internal Service Funds:

Fund Descriptions ...... 143

Combining Statement of Fund Net Position – Internal Service Funds ...... 144

Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds ...... 146 - ii -

Cuyahoga County, Ohio Comprehensive Annual Financial Report For the Year Ended December 31, 2014 Table of Contents (continued)

Page

Combining Statement of Cash Flows – Internal Service Funds ...... 148

Combining Statement – Agency Funds:

Fund Descriptions ...... 150

Combining Statement of Changes in Assets and Liabilities – Agency Funds ...... 151

Individual Fund Schedules of Revenues, Expenditures/Expenses and Changes in Fund Balance/Fund Equity – Budget and Actual (Budget Basis)

Major Funds General ...... 154 Human Services ...... 166 Health and Human Services Levy ...... 172 County Board of Developmental Disabilities ...... 174 Children Services ...... 175 Convention Center Hotel Construction ...... 176 Sanitary Engineer ...... 177

Nonmajor Funds Motor Vehicle Gas Tax ...... 178 Real Estate Assessment ...... 180 Alcohol, Drug and Mental Health Board ...... 181 Cuyahoga Support Enforcement ...... 182 Delinquent Real Estate Assessment ...... 183 County Land Reutilization ...... 184 Court……… ...... 185 Solid Waste...... 187 Community Development ...... 188 Other Community Development ...... 194 Treatment Alternatives for Safer Communities ...... 196 Victim Assistance ...... 198 Youth Services ...... 200 Other Judicial...... 201 Other Legislative and Executive...... 208 Other Health and Safety ...... 209 Other Public Works ...... 213 Other Social Services ...... 214 Litter Prevention and Recycling ...... 217 Alcohol, Drug and Mental Health Board Grants ...... 218 Debt Service ...... 219 Capital Projects ...... 221 Road Capital Projects ...... 223 County Airport ...... 225

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Cuyahoga County, Ohio Comprehensive Annual Financial Report For the Year Ended December 31, 2014 Table of Contents (continued)

Page

County Parking Garage ...... 226 Cuyahoga County Information Systems ...... 227 Central Custodial Services ...... 228 Maintenance ...... 229 Data Processing ...... 230 Printing……...... 231 Postage……...... 232 Health Insurance ...... 233 Workers’ Compensation ...... 234

III. Statistical Section

Statistical Section Description ...... S-1

Net Position by Component – Last Ten Years ...... S-2

Changes in Net Position – Last Ten Years ...... S-4

Fund Balances, Governmental Funds – Last Ten Years ...... S-8

Changes in Fund Balances, Governmental Funds – Last Ten Years ...... S-10

Assessed and Estimated Actual Value of Taxable Property – Last Ten Years ...... S-12

Property Tax Rates – Direct and Overlapping Governments – Last Four Years ...... S-14

Property Tax Levies and Collections – Last Five Years Real and Public Utility Taxes ...... S-22

Principal Real Property Taxpayers – 2014 and 2012 ...... S-24

Ratio of General Bonded Debt to Estimated True Values of Taxable Property and Bonded Debt per Capita – Last Ten Years ...... S-25

Ratio of Outstanding Debt to Total Personal Income and Debt per Capita – Last Ten Years ...... S-26

Computation of Legal Debt Margin – Last Five Years ...... S-28

Computation of Direct and Overlapping Governmental Activities Debt ...... S-30

Demographic Statistics – Last Ten Years ...... S-32

Ten Largest Employers – Current Year and Nine Years Ago ...... S-34

County Government Employees – Last Four Years ...... S-35

Capital Asset Statistics by Function/Program – Last Three Years ...... S-37

Operating Indicators by Function/Program – Last Five Years ...... S-38

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CUYAHOGA COUNTY OFFICE OF THE FISCAL OFFICER Dennis G. Kennedy, CPA – Fiscal Officer

August 21, 2015

TO THE HONORABLE CUYAHOGA COUNTY EXECUTIVE, COUNCIL MEMBERS, AND THE CITIZENS OF CUYAHOGA COUNTY:

As Fiscal Officer of Cuyahoga County, I am pleased to present the Cuyahoga County Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2014. This report enables the County to comply with Ohio Administrative Code Section 117-2-03(B), which requires reporting on a GAAP (Generally Accepted Accounting Principles) basis, and Ohio Revised Code Section 117.38 which requires the counties reporting on a GAAP basis to file an annual report with the Auditor of State.

Ohio law requires independent audits to be performed on all financial operations of the County either by the Auditor of the State of Ohio or an independent public accounting firm, if permitted by the Auditor of State. The Auditor of State rendered an opinion on the County’s financial statements as of December 31, 2014, and the Independent Auditor’s Report on the basic financial statements is included in the financial section of this report.

Included in this CAFR is the unmodified (“clean”) opinion on the County’s financial statements for the year ended December 31, 2014 issued by the Auditor of the State of Ohio. The Single Audit, which meets not only Circular A-133 requirements but also those of the American Recovery and Reinvestment Act, is published under separate cover and can be obtained by sending a written request to the Cuyahoga County Fiscal Department, 2079 East Ninth Street, 3rd Floor, Cleveland, Ohio 44115.

U.S. Office of Management and Budget Circular A-133 require an independent audit to be conducted annually. The audit, which includes procedures to fulfill Federal Single Audit requirements, serves to maintain and strengthen the integrity of the County’s accounting and budgetary controls. The independent audit involves 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; evaluating the overall financial statement presentation.

This report contains the financial statements and other financial and statistical data which ensure complete and full disclosure of all material financial aspects for Cuyahoga County in 2014. The County Fiscal Department, and in particular, the Financial Reporting Division, is responsible for the completeness, accuracy and fairness of this report. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. The objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements because the cost of internal control should not exceed anticipated benefits.

The Management Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A is included to complement this letter of transmittal and should be read in conjunction with it.

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PROFILE OF CUYAHOGA COUNTY

General Information The County is located on the southern shore of Lake Erie in northeastern Ohio. It covers an area of 458.3 square miles containing 57 cities and villages, the largest of which is the City of Cleveland, the County seat, as well as two townships. The State established Cuyahoga County on February 8, 1808, and the first meeting of the Cuyahoga County Board of County Commissioners was held in June of 1810. Based on the 2010 census, the County’s population is 1,280,122, making it the most populous and substantially developed county in the State and 29th most populous county in the United States. Cuyahoga County is also the most populous county in the State. The chart below shows estimated population data since the 2010 census as well as historical census data.

Cuyahoga County Population

2014 Est 1,259,828 2013 Est 1,263,837 2012 Est 1,265,889 2011 Est 1,269,839 2010 1,280,122 2000 1,393,978 1990 1,412,140 1980 1,498,400 1970 1,721,300 1960 1,647,895 1950 1,389,532

As described below, cities, villages, and townships in the County, together with the various special districts and other governmental entities operating in the County, are responsible for many local governmental services and make significant expenditures to provide such services to County residents. The County, nonetheless, has significant responsibilities in the areas of general government, administration of justice, road and bridge maintenance, health care, sanitation, as well as public assistance and social services. The County also operates wastewater collection and treatment facilities, water lines, parking facilities, an airport, and a law enforcement records management system.

Cities and villages in the County provide various services pursuant to statutory authorizations and to the constitutional “home rule” grant of “all powers of local self-government.” Among the services provided and powers generally exercised by cities and villages within the State are the following: public safety, including police and fire functions; construction, maintenance and repair of streets and sidewalks; certain sanitation and health activities; recreation, including parks, playgrounds and swimming pools; certain public service enterprises such as collection, recycling and disposal of solid wastes and operation of sewer and water systems, airports and hospitals; and certain planning and zoning functions. Some of these services and powers may also be provided and exercised by counties, regional water and sewer districts and solid waste management districts.

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In addition to the services provided by municipalities (and to some extent, townships) and the educational services provided by the various school districts within the County and State, there are other special districts and governmental entities currently performing various public service functions in the County. These include, among others, the Cleveland Metropolitan Park District (park and recreation facilities and programs), the Greater Cleveland Regional Transit Authority (mass transit), the Cleveland-Cuyahoga County Port Authority (lake port facilities and economic development activities), the Cuyahoga County Community College District (two-year community college), the Cuyahoga County Library District (library facilities), the Cuyahoga County Solid Waste Management District (solid waste management), the Cuyahoga Metropolitan Housing Authority (low-income housing), the Northeast Ohio Regional Sewer District (wastewater collection and treatment) and the Cuyahoga Arts & Culture (support for the arts).

COUNTY GOVERNMENT STRUCTURE

Government Structure Effective January 1, 2011 Under the State Constitution, the electors of a county have the authority to adopt a charter that provides an organization for their county government that differs from that under State statutes and, under certain circumstances, for the county government to exercise powers in addition to those vested in counties by statute.

On November 6, 2009, the voters of the County adopted a County Charter that changed the form of County government. The Charter eliminated the elected positions of County Commissioners, County Auditor, County Treasurer, County Recorder, Clerk of Courts, County Coroner, County Engineer and Sheriff. In place of the previously elected officers, the Charter provides for an elected County Executive, an elected 11-member County Council (Council) and an elected Prosecuting Attorney. The County Executive and the Prosecuting Attorney are elected by all the voters of the County, and each member of Council is elected by voters in one of 11 districts established by the Charter. Consistent with the authority and requirements provided in the Constitution for charter counties, the Charter provides for the County to exercise all powers vested in and perform all duties imposed upon counties and county officers from time to time by the Constitution and laws of the State, but also powers specifically conferred by the Charter or incidental to those specific powers and all other powers that counties are not prohibited to exercise by the Constitution or laws of the State, including powers that may be concurrently exercised by the County and municipalities.

In the November 2010 General Election, the first County Executive and 11 member County Council were elected. Their terms commenced January 1, 2011, with the County Executive and six members of Council serving a four-year term and five members serving a two-year term. In 2013, the five Council seats whose terms had expired were then elected to a four-year term, staggered with the other six members of Council.

The County Executive, with the approval of Council, appoints the following: a Fiscal Officer whose duties include those of an elected county auditor, an elected county recorder and an elected clerk of courts (other than those duties related to the operations of the County Courts) under State law; a Medical Examiner who performs the duties of an elected county coroner under State law; a Clerk of Courts to carry out the duties of an elected clerk of courts related to the operations of the Courts under State law; a Director of Public Works who performs the duties an elected county engineer and a sanitary engineer under State law; a Director of Law who serves as the legal advisor to the County Executive and Council; a Treasurer who performs the duties of an elected county treasurer under State law; a Sheriff who performs the duties of an elected county sheriff under State law; and a Director of Health and Human Services who manages the administration of the County’s various human service agencies, programs and activities.

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The County Executive has powers and duties of an executive and administrative nature, including, but not limited to, overseeing most personnel and collective bargaining matters, executing contracts, conveyances and indebtedness on behalf of the County, introducing ordinances and resolutions for Council’s consideration and submitting tax and operating budgets, capital improvement plans, a five-year financial forecast for County operating funds and a related written message annually. The County Executive also has veto power over Council’s actions.

The County Council holds the legislative power and is the taxing authority of the County. The Council elects a President, has a Clerk and other assistants. Council has authority to establish procedures governing the making and administration of County contracts and public improvements. Council also has authority to adopt the annual tax budget and the County’s operating and capital budgets, to make appropriations to provide for the acquisition, construction and maintenance of property and to establish a procedure for the levying of special assessments. The Council may override a veto of the County Executive if at least eight members of Council vote to approve the vetoed measure. Council may investigate any financial transaction relating to any matter upon which it is authorized to act, and has investigative as well as legislative powers.

The County Budget Commission, consisting of the County Executive, the Fiscal Officer and the Prosecuting Attorney, exercises all powers and performs all duties performed by a county budget commission under State law.

The Department of Development oversees economic development in the County with a Director of Development appointed by the County Executive, subject to confirmation by Council. An appointed Economic Development Commission is required to present a 5-year economic development plan in June of each year. The County Audit Committee appoints a Director of Internal Audit to provide internal auditing and review County programs for efficiency and effectiveness. County employment practices and the classification of employee positions are monitored by an appointed County Personnel Review Commission.

ECONOMIC OUTLOOK AND CONDITIONS

General Market Demographics The County is served by diversified transportation facilities including six U.S. highways and seven interstate highways, CSX, Norfolk Southern and Amtrak railroads, four airports and the Port of Cleveland. The City of Cleveland is the headquarters for the Fourth District Federal Reserve Bank, which serves Ohio, the western portion of Pennsylvania and portions of Kentucky and West Virginia. Within the Cleveland metropolitan area are several public and private two-year and four-year colleges and universities, including, among others, Baldwin Wallace University, Case Western Reserve University, Cleveland State University, Cuyahoga Community College, Hiram College, John Carroll University, Kent State University, Lake Erie College, Lorain County Community College, Notre Dame College, Oberlin College, The University of Akron and Ursuline College.

The area is also noted as a site with many cultural institutions and attractions, including, among others, Severance Hall and Blossom Music Center (winter and summer season homes of The Cleveland Orchestra), Cleveland Museum of Art, Playhouse Square Center (home of the Great Lakes Theater Festival, the Cleveland Play House and Dance Cleveland), Cleveland Museum of Natural History, the Rock and Roll Hall of Fame and Museum, Great Lakes Science Center, Western Reserve Historical Society (including the History Museum, Frederick C. Crawford Auto-Aviation Museum and the Library), Children’s Museum of Cleveland and NASA Glenn Research Center. Other performing and visual arts offerings include the Beck Center, Karamu House, Fairmount Theatre of the Deaf, Cleveland Public Theatre, Cleveland Center for Contemporary Art and Spaces Art Gallery. The Cleveland metropolitan area is also served by various recreational facilities. Cleveland Metroparks, a 23,000-acre, 18 reservation - viii - system called the “Emerald Necklace,” because it surrounds the City, and the Cuyahoga Valley National Park, a 32,860-acre national park in the County and adjacent Summit County. The County’s location on Lake Erie and the Cuyahoga River provides a setting for many water recreation facilities and offerings, including the Cleveland Metroparks Lakefront Reservation (five lakeshore locations), as well as many power and sail boat marinas and fishing piers and offshore reefs. The City’s North Coast Harbor is the site of the William G. Mather Museum, the Rock and Roll Hall of Fame and Museum, the Great Lakes Science Center and the First Energy Stadium (home of the Cleveland Browns).

The City of Cleveland features the Gateway complex, consisting of Progressive Field (formerly known as Jacobs Field), the home of the Cleveland Indians, Quicken Loans Arena (formerly Gund Arena), the home of the Cleveland Cavaliers and Lake Erie Monsters, and related facilities. The Cleveland Metroparks Zoo, which features multiple wildlife and educational exhibits, is also located in the City. First Energy Stadium (formerly Cleveland Browns Stadium), home of the Cleveland Browns, was completed and opened in 1999. That project was financed in part with proceeds from an extended excise tax which has been levied by the County since 2005 pursuant to voter approval obtained in November 1995. That excise tax is to expire in August of 2015. On May 6, 2014, the voters passed an Extension of the Alcohol and Cigarette Sales Tax extending the excise tax for 20 years beginning August 1, 2015. Public mass transit for the area is provided by the Greater Cleveland Regional Transit Authority.

Regional Economic Conditions The Cleveland-Elyria-Mentor metropolitan area, on the coast of Lake Erie in northeast Ohio, includes Cuyahoga, Geauga, Lake, Lorain, and Medina Counties. According to United States Census Bureau estimates as of July 1, 2014, the Cleveland-Elyria-Mentor metropolitan area population is 2,063,598. The principal city, Cleveland, is home to the Rock and Roll Hall of Fame and Museum, Inc., and Playhouse

Square Center, the largest theater district in the United States outside of New York City. The metropolitan area is moving from a manufacturing hub to a center for education and health services. There are 18 hospitals which employ 52,396 full-time-equivalent employees and have a total capacity of 4,282 staffed beds in the County. According to Crain’s Cleveland Business, the largest employers are the Cleveland Clinic Health System and University Hospitals, with 30,979 and 12,719 employees, respectively, as of June 30, 2014. In 2013 (the most recent data available), Cleveland Clinic reported an economic impact of $12.6 billion in the northeast Ohio region, $5.9 billion in wages and earnings, and directly or indirectly supporting more than 93,000 jobs.

Economic conditions in the Cleveland-Elyria-Mentor metropolitan area are improving and began to stabilize after nonfarm payrolls declined from 2007 through 2010. During 2014, nonfarm payrolls increased by 1,000 jobs, or 0.1 percent, to 1,044,800 jobs. Goods producing industries gained 2,400 jobs in manufacturing (+200) and mining, logging, and construction (+2,200). Private service-providing employment increased 27,800 over the year with losses in information (-100), and gains in professional and business services (+6,100), leisure and hospitality (+10,600), other services (+1,900), and financial activities (+700). Employment gains were also posted in educational and health services (+4,000) and trade, transportation, and utilities (+4,600). Overall government (federal, state, and local) employment increased 3,700 over the year.

The Horseshoe Casino, Cleveland, a $400 million project, opened in May 2012, adding 750 employees. The Global Center for Health Innovation and Convention Center (GCHI), formerly known as, the Cleveland Medical Mart and Convention Center, a $465 million development on a 1-million-square-foot campus in downtown Cleveland, opened in June 2013. The GHCI features single-vendor showrooms with an emphasis on technology-based products for contemporary healthcare delivery. The Convention Center hosted 228 events in 2014 with an estimated 177,000 attendees and has already booked 82 events thus far for 2015 with an estimated 175,000 attendees. For 2016 and beyond there are already 73 events booked estimated to bring in more than 300,000 attendees. In total, the Convention Center attendees occupied more than 220,000 hotel rooms and brought in an estimated $181 million since it opened. - ix -

Cleveland has been selected to host the 2016 Republican National Convention (RNC). The 2012 RNC held in Tampa, FL. drew approximately 50,000 visitors which had more than a $200 million direct economic impact for the City of Tampa and State of Florida. The Cleveland Cavaliers posted the NBA’s second highest home attendance rate for the 2014-2015 season averaging 20,562 for 41 regular season and 3 postseason playoff series. Overall, these factors led to a general resurgence for the City of Cleveland, particularly downtown. In addition, downtown Cleveland’s residential population reached an all-time high of 12,500 people during the Second Quarter of 2014; and residential unit occupancy rate hit an all-time high of 98.3 percent.

According to the United States Department, Bureau of Labor Statistics, the unemployment rate in 2014 was 5.3 percent, down from 7.2 percent in 2013.

Housing The selling price of residential property in the County has continued to rise. In June of 2014, the average sale price in the County reached $158,000, which was the highest level reached in 6 years (since July 2008), up 30 percent since 2008. All the key indicators show that 2014 was a year of continued market recovery.

Average Sales Price

The number of residential properties sold in 2014 was down slightly by 411, or 3.5 percent overall (versus 2013), but June 2014 had the highest monthly sales in 5 years. The sales of non-distress residential property (non-short sale/REO) were up dramatically. In a review of property sales (without short sales), the non-distress home sales were up 27.5 percent over 2013. The non-short sale inventory also increased 24.5 percent with prices remaining neutral.

LONG-TERM FINANCIAL PLAN

With the implementation of the new government and the new administration, the County now has a three part approach to long-term financial planning. First, the County developed a five year economic development plan that defined development priorities and strategies. The plan is in accordance with County Charter Section 7.05 and was codified in Ordinance Number O2012-0018 and set forth a new model and charge for making strategic investments across the County that will foster strong, economically sound communities, drive business growth and create jobs and opportunity for residents.

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The second part of the long-term financial plan is the Capital Improvement Plan. The fiscal health of the region over the past several years makes the process of completing a capital plan challenging. Every organization requires a plan to make the most efficient use of limited resources. Capital projects typically fall into five categories: maintenance, rehabilitation/reconstruction, expansion/new construction, health and safety equipment, and energy management.

The third part of long-term planning is the creation of a five year budget forecast. The Office of Budget and Management confirms project estimates from departments and produces a five year plan model with the identified funding sources.

RELEVANT FINANCIAL POLICIES

Accounting System and Budgetary Control The County utilizes an automated accounting system, which provides the capability to prepare financial information based on accounting principles generally accepted in the United States of America ( GAAP) for governments. Financial Accounting and Management Information System, known by the acronym FAMIS, is the enabling technology used for the County's accounting and budgetary controls. All operations of the County use FAMIS. Adequate internal accounting controls are an integral part of this system and are designed to achieve the fundamental objectives of safeguarding assets and providing reasonable assurance that financial transactions are properly recorded.

The County's day-to-day accounting and budgetary records are maintained on a basis other than GAAP. For financial reporting purposes, the accounting records are converted to the modified accrual basis for all governmental funds for the governmental fund financial statements and the accrual basis for the government-wide financial statements and the proprietary and fiduciary funds. A further discussion of the two bases of accounting and their reconciliation can be found in Note 2 of the notes to the financial statements.

All funds, except agency funds are legally required to be budgeted and appropriated. The major documents prepared are the tax budget, the certificate of estimated resources, and the appropriations resolution, all of which are prepared on the budgetary basis of accounting. The tax budget demonstrates a need for existing or increased tax rates. The certificate of estimated resources establishes a limit on the amount the County may appropriate. The appropriations resolution is Council’s authorization to spend resources and sets annual limits on expenditures plus encumbrances at the level of control selected by Council. The legal level of control is at the character level (personnel, other expenses, and capital) within a department and fund. Any budgetary modifications at this level may only be made by resolution of County Council.

Casino Revenue Investment Plan As a County hosting one of four casinos in Ohio, Cuyahoga County receives a portion of annual State casino tax revenue. In October 2012, County Council agreed to dedicate all casino revenue to downtown development through at least June 2016 to help maintain the momentum building in our urban core through recent seminal developments, including the new Horseshoe Casino, the Global Center for Health Innovation and Cleveland Convention Center, and the rising tide of businesses and residents settling in the area.

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Internal Audit The Department of Internal Audit was established by the citizens of Cuyahoga County such that financial and performance audits of County offices, departments, and agencies might be conducted in cooperation with federal and generally accepted auditing procedures. Section XI of the County Charter places the department under jurisdiction of the County Audit Committee, comprised of the County Fiscal Officer, County Executive, President of the County Council, and two residents of Cuyahoga County.

MAJOR INITIATIVES

Integrity One of the County Executive’s priorities is to operate with integrity. The following initiatives were put in place: (1) instituted comprehensive Ethics and Personnel Policies to govern employees; (2) created an Inspector General to investigate ethics violations; (3) created standing boards to publicly vet all contracts and purchases; (4) began posting all contracts online for public scrutiny; and (5) required all County hiring to be competitive and public.

Efficiency Creation of a nimble and responsive administration by unifying scattered agencies, rationalizing operations, and saving money. For example: (1) centralizing Human Resources allowed the County to review every position and reduce the workforce by nearly 500 full-time employees in just two years; (2) the consolidated Fiscal Department conducted the six-year property reappraisal for $10 million less than in 2006; (3) the unified Department of Information Technology saves $2.3 million annually by revisiting contracts and improving print management; and (4) the comprehensive property inventory conducted by the Department of Public Works culminated in a centralized County administrative headquarters that will save $139 million over 25 years. The County employees moved into the new building in July/August of 2014.

Investment Resources freed up by reforms were redirected into the improvement and expansion of County services, enabling the County to improve the accessibility of County government by streamlining the tax appeal process and mailing absentee ballot applications to all citizens while making transformational investments in Cuyahoga County’s future. For example: (1) increased preventative maintenance on County-managed infrastructure including our roads, bridges, buildings, and sewers; (2) created the $100 million Western Reserve Fund to widen and deepen our local economic base, without raising taxes and (3) spearheaded the adoption of modern and emerging technology in every area, from data processing and routine operations to law enforcement to cloud computing to Next Generation 9-1-1.

Regional Collaboration County resources are also helping local governments cope as unprecedented State and federal budget cuts exacerbate the financial impact of the Great Recession. Every County department continues to work with the Department of Regional Collaboration to identify opportunities where our resources and efficiencies of scale can help avert cuts to local services and promote shared services, such as sewer maintenance, web development, pooled health benefits, and the Community Policing Impact Unit. We also united all 59 communities in the County behind the Business Attraction and Anti-Poaching Protocol, an unprecedented effort to improve responsiveness to business and halt mutually destructive poaching.

Other Initiatives In 2014, the County finished construction of a new facility at the northeast corner of Prospect Avenue and East 9th Street in downtown Cleveland. The new complex consolidated employees from the Executive Office, County Council, Fiscal, Human Resources, Development, Inspector General, Planning Commission, Procurement and Diversity, Internal Audit, Information Technology, Public Works, and - xii -

Public Safety and Justice Services. The new building was designed to be a conveniently centralized location for the public to conduct business and achieved a Silver LEED certification, with a rooftop garden and numerous improvements to energy efficiency.

The new County building is part of a development to restore a long dormant corner of downtown Cleveland to life. The developer is committed to redeveloping the entire block-long complex formerly known as the Ameritrust complex: the iconic rotunda houses a Heinen’s grocery store; the Swetland building includes a mixture of apartments, office, and retail; and the Ameritrust tower has been renovated into a hotel and luxury apartments.

Vacating the old administration building freed land for construction of a 600-plus room Convention Center Hotel – a necessity for the Cleveland Convention Center to play host to a national political convention or an event on the scale of the Great Lakes Expo. As all the results of this move reach fruition in 2014-2016, Cuyahoga County will have been able to transform its straightforward need for a modern space into another step in the rebirth of Greater Cleveland.

AWARDS AND ACKNOWLEDGMENTS

The Government Finance Officers Association (GFOA) awarded the County the Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2013. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. To earn the Certificate of Achievement, the County published a readable and efficiently organized CAFR whose contents conformed to program standards and satisfied GAAP and applicable legal requirements. The Certificate of Achievement is valid for a period of one year. We believe our current CAFR conforms to the Certificate of Achievement program requirements and we are submitting it to the GFOA.

The GFOA presented an award of Distinguished Budget Presentation to the County for its biennial budget beginning January 1, 2014 as well. This was the tenth consecutive year, and twelfth year that the County has received this prestigious award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communication device. This award is valid for a period of one year only.

Acknowledgments Preparation of this report could not have been accomplished without the dedicated work of the County Controller, Amy Himmelein, CPA, and the entire financial reporting staff of the County Fiscal Office. I would like to express appreciation to each member of the financial reporting staff, the staffs of the Budget Commission, the County Treasurer, the Information Technology Center and the Office of Budget and Management. I would also like to thank the County's other elected officials and managers for their assistance in this project.

Finally, I wish to thank the citizens of the Cuyahoga County for this opportunity to continue to serve and improve the professionalism of financial reporting for the County.

Sincerely,

Dennis G. Kennedy, CPA Cuyahoga County Fiscal Officer

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Cuyahoga County, Ohio Principal Officials December 31, 2014

Elected Officials

County Council

President, District 3 ...... Dan Brady Vice-President, District 8 ...... Pernel Jones, Jr. District 1 ...... Dave Greenspan District 2 ...... Dale Miller District 4 ...... Charles M. Germana District 5 ...... Michael J. Gallagher District 6 ...... Jack Schron District 7 ...... Yvonne M. Conwell District 9 ...... Shontel M. Brown District 10 ...... Anthony T. Hairston District 11 ...... Sunny M. Simon

Other Elected Officials

County Executive ...... Edward FitzGerald (1) County Prosecutor ...... Timothy McGinty

Court Elected Officials

Eighth District Court of Appeals ...... Judge Melody J. Stewart, Administrative (2) Judge Patricia Ann Blackmon Judge Mary J. Boyle Judge Frank D. Celebrezze Judge Eileen A. Gallagher Judge Eileen T. Gallagher Judge Sean C. Gallagher Judge Larry A Jones, Sr Judge Kathleen Ann Keough Judge Mary Eileen Kilbane Judge Tim McCormack Judge Kenneth A. Rocco

Court of Common Pleas ...... Judge Nancy A. Fuerst, Administrative and Presiding (3) Judge Dick Ambrose Judge Michael Astrab Judge Pamela A. Barker Judge Janet R. Burnside Judge Deena R. Calabrese Judge Maureen E. Clancy Judge Brian J. Corrigan Judge Peter J. Corrigan Judge Michael P. Donnelly Judge Carolyn B. Friedland Judge Stuart A. Friedman Judge Steven E. Gall Judge Hollie L. Gallagher Judge Daniel Gaul Judge Michael E. Jackson Judge Lance T. Mason Judge Davis T. Matia Judge Robert C. McClelland Judge Timothy P. McCormick Judge Nancy McDonnell Judge Richard J. McMonagle (1) Judge John P. O’Donnell Judge John J. Russo Judge Joseph D. Russo Judge Michae J. Russo Judge Nancy M. Russo Judge Shirley S. Saffold Judge Brendan Sheehan Judge John D. Sutula Judge Kathleen Ann Sutula Judge Joan Synenberg Judge José A.Villanueva Judge Cassandra Collier-Williams

(continued) - xiv -

Cuyahoga County, Ohio Principal Officials December 31, 2014 (continued)

Domestic Relations ...... Diane M. Palos, Administrative Judge Judge Leslie Ann Celebrezze Judge Janet Rath Colaluca (5) Judge Rosemary Grdina Gold Judge Cheryl S. Karner

Probate Court ...... Anthony J. Russo, Presiding Judge Judge Laura J. Gallagher

Juvenile Court ...... Thomas F. O’Malley, Administrative Judge (6) Judge Patrick F. Corrigan Judge Alison L. Floyd Judge Denise N Rini Judge Michael J. Ryan Judge Kristen W. Sweeney

Appointed Charter Officials

Clerk of Courts ...... Andrea Rocco (7) County Treasurer ...... William Sheehan (Interim) (8) Director of Development ...... Larry Benders Director of Internal Audit ...... Valerie Harry Director of Law ...... Majeed Makhlouf (9) Director of Health and Human Services ...... Rick Werner Director of Public Works ...... Bonnie Teeuwen (10) Fiscal Officer ...... Mark A. Parks, Jr., CPA (11) Medical Examiner ...... Dr. Thomas Gilson Sheriff ...... Frank Bova (12)

(1) Replaced by Armond Budish in January 2015 (2) Replaced by Judge Frank D. Celebrezze in January 2015 (3) Replaced by Judge John T. Russo in January 2015 (4) Replaced by Judge Shannon M. Gallagher in January 2015 (5) Replaced by Judge Francine Goldberg in January 2015 (6) Replaced by Judge Kristin W. Sweeney in January 2015 (7) Replaced by Nailah Byrd in January 2015 (8) Replaced by W. Christopher Murray, Jr. in March 2015 (9) Replaced by Robert J. Triozzi in February 2015 (10) Replaced by Michael Dever in February 2015 (11) Replaced by Dennis Kennedy in March 2015 (12) Replaced by Deputy Clifford Pinkney in February 2015

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Chief Works4 Officer Resources Information County Officer Director reasurer* Director T Operations Operations Fiscai Courts Public Deputy Human I Chief P of Agency Services and Eamily Health County Adult Services* Support ty Prosecutor* and Chief of Services Services/ ^nd an muni Human uinan 1 & 1 County Emplaynient Family Enforcement ServiMS Senior Servioea Initifltiww Cuyahoga Children Com Deptfty Hum Director ¦ » + ? and V Health [ Staff of I Cuyahoga EKecutive* Chief of County of of Chief Development Director Regional Oireotoj- Development Collabor^ticin Deputy Development* I Citizens Economic Council* Countv ] Law" Chief, of Courts* Office Exallnine^, of General Jtistice lustice Auditor* Sheriff Offiti.iJs Staff Deputy Clerl? Directoi Medical I Executive Charter Internal Inspector

- xvi -

(ft

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting

Presented to

Cuyahoga County

Ohio

For its Comprehensive Annual Financial Report for the Fiscal Year Ended

December 31, 2013

Executive Director/CEO

- xvuxvii - Financial Section

INDEPENDENT AUDITOR’S REPORT

Cuyahoga County 2079 East Ninth Street Cleveland, Ohio 44115

To the Members of Council:

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of Cuyahoga County (the County), Ohio, as of and for the year ended December 31, 2014, 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 preparing and fairly presenting these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes designing, implementing, and maintaining internal control relevant to preparing and fairly presenting financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to opine on these financial statements based on our audit. We did not audit the financial statements of the discretely presented component unit, the MetroHealth System, which represent 72.4 percent, 98.7.3 percent, and 98.2 percent, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amount included for MetroHealth System, is based solely on the report of other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States’ Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement.

An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the County's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the County's internal control. Accordingly, we express no opinion. An audit also includes evaluating the appropriateness of management’s accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation.

We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinions.

Lausche Building, 615 Superior Ave., NW, Twelfth Floor, Cleveland, Ohio 44113-1801 Phone: 216-787-3665 or 800-626-2297 Fax: 216-787-3361

www.ohioauditor.gov 1 Cuyahoga County Independent Auditor’s Report Page 2

Opinions

In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Cuyahoga County, Ohio, as December 31, 2014, and the respective changes in financial position and where applicable, cash flows, thereof and the respective budgetary comparisons for the General Fund, Human Services Fund, Health and Human Services Levy Fund, County Board of Developmental Disabilities Fund and Children Services Fund thereof for the year then ended in accordance with the accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require this presentation to include Management’s discussion and analysis listed in the table of contents, to supplement the basic financial statements. Although this information is not part of the basic financial statements, the Governmental Accounting Standards Board considers it essential for placing the basic financial statements in an appropriate operational, economic, or historical context. We and the other auditors applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, consisting of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, to the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not opine or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to opine or provide any other assurance.

Supplementary and Other Information

Our audit was conducted to opine on the County’s basic financial statements taken as a whole.

The introductory section, the financial section’s combining statements, individual fund statements and schedules, and the statistical section information present additional analysis and are not a required part of the basic financial statements.

The statements and schedules are management’s responsibility, and derive from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. We subjected this information to the auditing procedures we applied to the basic financial statements. We also applied certain additional procedures, including comparing and reconciling this information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves in accordance with auditing standards generally accepted in the United States of America. In our opinion, this information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

We did not subject the introductory section and statistical section information to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or any other assurance on them.

Cuyahoga County Independent Auditor’s Report Page 3

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated August 21, 2015, on our consideration of the County’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report describes the scope of our internal control testing over financial reporting and compliance, and the results of that testing, and does not opine on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance.

Dave Yost Auditor of State Columbus, Ohio

August 21, 2015

(This Page Intentionally Left Blank)

- 4 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

As management of Cuyahoga County (the County), we offer the readers of the County’s financial statements the following discussion and analysis of the financial performance as well as an overall review of the County’s financial activities for the fiscal year ended December 31, 2014. The intent of this discussion and analysis is to look at the County’s financial performance as a whole. Readers should also review the financial statements and notes to those respective statements to enhance their understanding of the County’s financial performance.

Financial Highlights

Key Financial Highlights for 2014 are as follows:

o Construction completed on the County’s new administrative headquarters which is leased by the County. The building allows departments that were formerly in separate buildings to be consolidated into one building providing better service to the citizens of the County.

o The Cuyahoga County Convention Facilities Development Corporation (the “Corporation”) is presented as a component unit of the County. In December 2013, the County terminated its agreement with Merchandise Mart Properties, Inc. to operate the Cleveland Convention Center and Global Center for Health Innovation. As a result the Corporation became the new operator and assumed the lease and operation of the facilities.

o In furtherance of its economic development mission, the County issued certificates of participation to fund the construction of a convention center hotel which began major construction in 2014.

Using this Financial Report

This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the readers can understand Cuyahoga County as a financial whole, an entire operating entity. The statements then proceed to provide an increasingly detailed look at specific financial activities.

The Statement of Net Position and Statement of Activities provide information about the activities of the whole County, presenting both an aggregate view of the County’s financial condition and a longer-term view of those finances. Fund financial statements provide the next level of detail. For governmental funds, these statements tell how services were financed in the short-term as well as what remains for future spending. The fund financial statements also look at the County’s most significant funds with all other non-major funds presented in total in one column.

Reporting on the County as a Whole

Statement of Net Position and the Statement of Activities

While these documents include the various funds used by the County to provide programs and activities, the view of the County as a whole looks at all financial transactions and asks the question, “How did we do financially during 2014?” The Statement of Net Position and the Statement of Activities answers this question. These statements include all non-fiduciary assets and deferred outflows of resources and liabilities

- 5 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

and deferred inflows of resources using the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year’s revenues and expenses regardless of when cash is received or paid.

These two statements report the County’s net position and changes in net position. This change in net position is important because it tells the reader that, for the County as a whole, the financial position of the County has improved or diminished. The causes of this change may be the result of many factors, some financial, some not. Non-financial factors include the change in value in the County's tax base, current property tax laws in Ohio restricting revenue growth, and other factors.

In the Statement of Net Position and the Statement of Activities, the County is divided into three distinct kinds of activities:

Governmental Activities – Most of the County’s programs and services are reported here including health and safety, social services, justice, community development, public works and general government. These services are funded primarily by taxes and intergovernmental revenues including federal and state grants and other shared revenues.

Business-Type Activities – These services are provided on a charge for goods or services basis intended to recover all of the expenses or costs of the goods or services provided.

Component Units – The County includes financial data of the MetroHealth System (the “System”) and the Cuyahoga County Convention Facilities Development Corporation (the “Corporation”).

The System is a legally separate, non-profit organization, which provides health care and hospitalization to the general public and care for the County’s indigents. Under Ohio Revised Code 339.06, the County appoints the majority of the Hospital’s Board of Trustees who has certain powers and duties. The Hospital is included in the County’s reporting entity because of its financial benefit/burden relation with the County. Cuyahoga County provides financial support for the general operations of the Hospital; during 2014 this support amounted to $40,024,000. The component unit is separate and may buy, sell, lease and mortgage property in their own name and can sue or be sued in their own name.

The Corporation is a legally separate, non-profit organization, which oversees the operations of the Cleveland Convention Center and Global Center for Health Innovation. The County appoints the majority of the Corporation’s Directors who has certain powers and duties. Because the County appoints a voting majority of the Board of Directors, the County is able to impose its will on the operation of the Corporation. Cuyahoga County provides financial support to the Corporation. The component unit is separate and may buy, sell, lease and mortgage property in their own name and can sue or be sued in their own name.

Reporting the County’s Most Significant Funds

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities. The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements and designates funds into the following three categories: governmental funds, proprietary funds and fiduciary funds.

- 6 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

Fund financial statements provide a summary of the County’s financial position and activity and focus on short-term flow of financial resources. The statements focus on the following significant governmental funds: the general fund, human services, health and human services levy fund, County Board of Developmental Disabilities and children services special revenue funds and Global Center for Health Innovation (GCHI) and convention center hotel construction capital projects funds.

Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of expendable resources, as well as on balances of expendable resources available at the end of the year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The County maintains a multitude of individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental statement of revenues, expenditures, and changes in fund balances for the major funds, which were identified earlier. Data from the other governmental funds are combined into a single, aggregated presentation.

Proprietary Funds The County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses several enterprise funds to account for various operations. The County’s major enterprise fund is the sanitary engineer fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the County’s various functions.

Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the County. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The County’s fiduciary funds are agency.

Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

- 7 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

The County as a Whole

You may recall that the Statement of Net Position provides the perspective of the County as a whole. Table 1 provides a summary of the County’s net position for 2014 compared to 2013:

(Table 1) Net Position (in thousands)

Governmental Activites Business-Type Activites Total

2014 2013 2014 2013 2014 2013

Assets Current and Other Assets $1,951,180 $1,675,824 $80,572 $75,790 $2,031,752 $1,751,614 Capital Assets, Net 1,191,192 1,070,121 43,760 42,487 1,234,952 1,112,608 Total Assets 3,142,372 2,745,945 124,332 118,277 3,266,704 2,864,222

Deferred Outflows of Resources 2,261 260 0 0 2,261 260

Liabilities Current Liabilities 114,188 95,714 2,492 1,706 116,680 97,420 Long-term Liabilities Due within one Year 72,447 72,077 626 719 73,073 72,796 Due in More than one Year 1,501,964 1,100,563 12,337 16,266 1,514,301 1,116,829 Total Liabilities 1,688,599 1,268,354 15,455 18,691 1,704,054 1,287,045

Deferred Inflows of Resources 332,030 331,240 0 0 332,030 331,240

Net Position Net Investment in Capital Assets 401,197 396,133 31,333 26,008 432,530 422,141 Restricted 480,345 530,407 0 0 480,345 530,407 Unrestricted 242,462 220,071 77,544 73,578 320,006 293,649 Total Net Position $1,124,004 $1,146,611 $108,877 $99,586 $1,232,881 $1,246,197

The issuance of revenue bonds and certificates of participation during 2014 is the largest contributing factor to the decrease in net position. The revenue bonds were issued to refund bonds and to fund new initiatives. The certificates were issued to fund the construction of a convention center hotel. These debt issuances position the County for future economic growth and prosperity.

In order to further understand what makes up the changes in net position for the current year, the following table gives readers further details regarding the results of activities for 2014 and 2013:

- 8 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

(Table 2) Changes in Net Position (In Thousands) Governmental Activities Business-Type Total 2014 2013 2014 2013 2014 2013 Program Revenues Charges for Services and Operating Assessments $125,417 $131,125 $32,188 $43,106 $157,605 $174,231 Operating Grants, Contributions and Interest 429,951 408,423 0 0 429,951 408,423 Capital Grants and Contributions 46,279 50,367 446 168 46,725 50,535 Total Program Revenues 601,647 589,915 32,634 43,274 634,281 633,189

General Revenues Property Taxes 339,032 295,301 0 0 339,032 295,301 Sales Taxes 251,893 238,595 0 0 251,893 238,595 Hotel/Lodging Taxes 10,488 8,612 0 0 10,488 8,612 Excise Tax 10,798 0 0 0 10,798 0 Payments in Lieu of Taxes 5,763 2,757 0 0 5,763 2,757 Grants and Entitlements 30,712 35,562 0 0 30,712 35,562 Unrestricted Contributions 0 0 0 0 0 0 Gain on Sale of Capital Assets 0 9,933 0 0 0 9,933 Interest 5,481 5,660 0 0 5,481 5,660 Other 16,297 36,570 67 59 16,364 36,629 Total General Revenues 670,464 632,990 67 59 670,531 633,049 Total Revenues 1,272,111 1,222,905 32,701 43,333 1,304,812 1,266,238 Program Expenses General Government: Legislative and Executive 135,953 100,601 0 0 135,953 100,601 Judicial 352,836 326,345 0 0 352,836 326,345 Public Works 73,150 79,162 0 0 73,150 79,162 Health and Safety 117,150 119,626 0 0 117,150 119,626 Social Services 478,627 461,481 0 0 478,627 461,481 Community Development 72,727 49,699 0 0 72,727 49,699 Interest and Fiscal Charges 59,655 47,542 0 0 59,655 47,542 Sanitary Engineer 0 0 22,349 20,581 22,349 20,581 Airport 0 0 1,600 1,457 1,600 1,457 Parking Garage 0 0 3,124 13,335 3,124 13,335 Information Systems 0 0 957 1,920 957 1,920 Total Program Expenses 1,290,098 1,184,456 28,030 37,293 1,318,128 1,221,749 Increase (Decrease) in Net Position before Transfers (17,987) 38,449 4,671 6,040 (13,316) 44,489 Transfers (4,620) (3,289) 4,620 3,289 0 0 Change in Net Position (22,607) 35,160 9,291 9,329 (13,316) 44,489 Net Position Beginning of Year 1,146,611 1,111,451 99,586 90,257 1,246,197 1,201,708 Net Position End of Year $1,124,004 $1,146,611 $108,877 $99,586 $1,232,881 $1,246,197

- 9 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

An increase in Medicaid reimbursements due to the Affordable Care Act contributed significantly to the increase in operating grants, contributions and interest. Property tax revenue increased due to a health and human services levy passed by the voters in November 2013. Increased sales in the County also gave sales tax revenue a healthy increase.

Expenses in 2014 increased over 2013 due to several factors related to capital assets and debt. 2014 was the first year to accrue depreciation expense for the Cleveland Convention Center and Global Center for Health Innovation and the new administrative headquarters. Debt proceeds for economic development were also disbursed for Steelyard Commons and Westin Hotel.

Graph 1 Governmental Revenues and Expenses (In Millions) 2014 2013 Revenues $1,272.1 $1,222.9 Expenses 1,290.1 1,184.5

$1,600.0

$1,500.0

$1,400.0 Revenues $1,300.0 Expenses $1,200.0

$1,100.0

$1,000.0 2014 2013

Charges for services in the business-type activities experienced a smaller percentage increase in special assessments receivable for 2014 than it did in 2013. Expenses in the Parking Garage decreased because the County did not have to report a loss on the sale of assets in 2014.

Component Unit – MetroHealth System

The MetroHealth System is the more significant of the County’s component units. It is the public health care system for the County and is organized and operated by its Board of County Hospital Trustees pursuant to Chapter 339 of the Ohio Revised Code. Financial and operating highlights for 2014:

o Outpatient visits increased 7.1 percent. o Hospital patient days increased 0.8 percent. o Inpatient and outpatient surgical volumes increased 6.2 percent. o Emergency room visits decreased 0.7 percent. o Total net position increased by $32,789 million for the year.

- 10 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

Financial Analysis of the County’s Funds

As noted earlier, the County uses fund accounting to demonstrate fiscal accountability and assume financial resources were raised and expended in compliance with budgetary and other legal provisions.

Governmental Funds The focus of the County’s governmental funds is to provide information on near-term inflows, outflows and balances of expendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the County’s net resources available for spending at the end of the year.

As of the end of the current year, the County’s governmental funds reported combined ending fund balances of $1,323,723,706. $226,209,087 of this amount constitutes unassigned fund balance, which is available for appropriation at the County’s discretion within certain legal constraints and purpose restrictions. The remainder of the fund balance is non-spendable, restricted, committed or assigned to indicate that it is not available for new spending.

General Fund revenues exceeded expenditures primarily due to an increase in sales tax revenue which is a result of better than expected sales within the County. The excise tax increased because the County fulfilled its obligation to the Cleveland Browns during 2014.

The Human Services Fund and the Health and Human Services Levy Fund had an increase in fund balance due to the passage of a levy in November 2013 which began collection in 2014. The Human Services Fund also had an increase in intergovernmental revenues from Medicaid.

The Board of Developmental Disabilities Fund had an increase in intergovernmental revenue due to increased Medicaid reimbursements.

Children Services Fund balance decreased because revenue was received during 2014 that is due to the Human Services Fund. This revenue is therefore reflected as an interfund payable and interfund receivable.

The Global Center for Health Innovation Fund had a decrease in fund balance as major construction of the facility was completed during 2014.

The Convention Center Hotel Construction Fund issued certificates of participation in 2014 and also began major construction during the year.

Proprietary Funds Proprietary fund reporting focuses on the determination of operating income, changes in net position, financial position and cash flows. The increase in the sanitary engineer fund net position can be attributed to the increase in special assessments receivable. However, special assessments receivable did not increase by the same percentage in 2014 as it did in 2013 resulting in a decrease from 2013 in charges for services revenue.

- 11 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

General Fund Budgeting Highlights

Provisions for budgeting are prescribed by Ohio Revised Code Chapter 5705. Essentially, the budget is the County’s appropriations which are restricted by the amounts of anticipated revenues certified by the Budget Commission in accordance with the Revised Code. During 2014, the County amended its general fund budget as necessary to allow for increases and decreases in contractual agreements, reductions in staff, and changes in the anticipated uses of approved funding. Actual revenues received were $7,529,143 higher than certification primarily due to higher than expected sales tax revenue and charges for services revenue. Actual expenditures were $11,503,282 less than appropriations due mainly to the diligence of management to control expenses.

Capital Assets and Debt Administration

Capital Assets

Table 3 shows 2014 values compared to 2013.

(Table 3) Capital Assets at December 31 (Net of Accumulated Depreciation) (in thousands) Governmental Activities Business-Type Activities Total 2014 2013 2014 2013 2014 2013 Land $87,885 $86,246 $6,505 $6,505 $94,390 $92,751 Construction in Progress 103,294 27,079 0 0 103,294 27,079 Land Improvements 5,195 5,732 5,037 4,070 10,232 9,802 Utility Plant 0 0 26,691 27,918 26,691 27,918 Buildings, Structures and Improvements 884,991 839,183 3,155 2,689 888,146 841,872 Furniture, Fixtures and Equipment 19,843 23,587 1,634 391 21,477 23,978 Vehicles 1,448 1,918 738 914 2,186 2,832 Right to Use Community Center 1,660 1,812 0 0 1,660 1,812 Infrastructure 86,876 84,564 0 0 86,876 84,564 Total Capital Assets $1,191,192 $1,070,121 $43,760 $42,487 $1,234,952 $1,112,608

The governmental activities increase of $121 million was the result of the addition of the new County administration headquarters and construction on the new Convention Center Hotel. The business-type activities increase of $1 million is due to additions to land improvements at the airport and the purchase of engineer equipment. Additional information on the County’s capital assets can be found in Note 14 of this report.

- 12 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

Debt

Table 4 below summarizes the County’s long-term obligations outstanding.

(Table 4) Outstanding Long-term Obligations at Year End (in thousands) Governmental Activities Business Type Activities Total 2014 2013 2014 2013 2014 2013 General Obligation Bonds $282,490 $335,242 $0 $0 $282,490 $335,242 Self-Supported Bonds 0 0 210 3,515 210 3,515 Revenue Bonds 576,029 427,435 0 0 576,029 427,435 Certificates of Participation 256,864 0 0 0 256,864 0 ODOD Loans 1,000 1,500 0 0 1,000 1,500 OPWC Loans 751 813 320 398 1,071 1,211 ODOT Loans 3,109 3,745 0 0 3,109 3,745 OWDA Loans 0 0 11,898 12,566 11,898 12,566 Bond Anticipation Notes 2,000 5,100 0 0 2,000 5,100 Capital Leases 425,743 372,102 0 0 425,743 372,102 Compensated Absences 26,424 26,703 535 506 26,959 27,209 Total $1,574,410 $1,172,640 $12,963 $16,985 $1,587,373 $1,189,625

Revenue bonds increased due to the issuance of sales tax and economic development revenue bonds. General obligation bonds decreased because part of the sales tax revenue bonds refunded general obligation bonds. Certificates of participation increased due to a new issuance to fund the Convention Center hotel.

Cuyahoga County received an “AA,” “AAA” and “AA-” rating from Standard & Poor’s and an “Aa1,” “Aa1” and “Aa3” rating from Moody’s Investors Service for its general obligation debt, revenue bonds and certificates of participation, respectively. Moody’s and Standard & Poor’s completed a review of the County’s bond ratings in 2014 and both ratings were affirmed with a stable outlook.

The County’s overall legal debt margin was $582.0 million at December 31, 2014. This is the additional amount of debt the County could issue. The County continues to monitor its outstanding debt. Information relative to debt is identified in Note 22 to the basic financial statements.

Current Issues

The County has continued to maintain the highest standards of services to our communities while diligently managing expenses, to stay within the County’s revenues. As with all counties in the State of Ohio, State funding issues are constantly monitored to determine the impact on the County. As the preceding information shows, the County, like most counties in Ohio, is heavily reliant on sales tax and local property taxpayers. Additional revenues must not be treated as a windfall to expand programs but as an opportunity to extend the time horizon of the life of the various social and health and human services levies and provide future flexibility for the general fund. All of the County’s financial abilities will be needed to meet the challenges of the future.

- 13 - Cuyahoga County, Ohio Management’s Discussion and Analysis For the Year Ended December 31, 2014 (Unaudited)

In conclusion, the County is in a period posing both significant challenges and opportunities. Management is committed to working with all stakeholders to craft solutions that will most effectively use the available resources to continue to provide excellent services to the residents of the County.

Contacting the County’s Financial Management

This financial report is designed to provide a general overview of the County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the Cuyahoga County Fiscal Department, 2079 East Ninth Street, 3rd Floor, Cleveland, Ohio 44115.

- 14 - Cuyahoga County, Ohio Statement of Net Position December 31, 2014

Primary Government Component Units

Cuyahoga County Convention Facilities Governmental Business-Type MetroHealth Development Activities Activities Total System (1) Corporation

Assets Equity in Pooled Cash and Cash Equivalents $744,398,919 $39,551,460 $783,950,379 $8,532,000 $6,942,360 Cash and Cash Equivalents: In Segregated Accounts 7,772,050 0 7,772,050 0 0 With Fiscal Agents 232,767,202 0 232,767,202 0 0 Investments 0 0 0 423,685,000 0 Materials and Supplies Inventory 0 25,996 25,996 11,013,000 0 Accrued Interest Receivable 719,406 11 719,417 0 0 Accounts Receivable 9,502,977 193,700 9,696,677 118,967,000 361,996 Other Receivable 0 0 0 53,936,000 0 Internal Balances (232,235) 232,235 0 0 0 Intergovernmental Receivable 72,961,959 674,164 73,636,123 0 762,500 Lease Receivable from Primary Government 0000341,404,335 Prepaid Items 0 0 0 3,638,000 88,135 Sales Taxes Receivable 67,309,576 0 67,309,576 0 0 Property Taxes Receivable 415,313,101 0 415,313,101 0 0 Special Assessments Receivable 0 39,867,716 39,867,716 0 0 Loans Receivable 59,263,523 26,132 59,289,655 0 0 Loans Receivable from Component Unit 341,404,335 0 341,404,335 0 0 Other Assets 0 0 0 9,779,000 0 Nondepreciable Capital Assets 191,178,879 6,504,595 197,683,474 34,023,000 0 Depreciable Capital Assets, Net 1,000,012,825 37,255,722 1,037,268,547 255,437,000 0

Total Assets 3,142,372,517 124,331,731 3,266,704,248 919,010,000 349,559,326

Deferred Outlfows of Resources Deferred Amount on Refunding 2,261,330 0 2,261,330 6,055,000 0

Liabilities Accounts Payable 44,098,066 1,292,326 45,390,392 39,109,000 870,141 Accrued Wages 18,952,247 345,559 19,297,806 29,483,000 297,059 Contracts Payable 14,595,486 0 14,595,486 0 0 Other Liabilities 0 0 0 14,765,000 0 Intergovernmental Payable 13,896,432 853,574 14,750,006 6,126,000 244,772 Retainage Payable 3,150,955 0 3,150,955 0 0 Accrued Interest Payable 4,010,801 700 4,011,501 3,380,000 0 Claims Payable 15,484,303 0 15,484,303 0 0 Unearned Revenue 0000777,981 Long-Term Liabilities: Due Within One Year 72,447,037 626,254 73,073,291 107,858,000 19,807,718 Due In More Than One Year 1,501,963,751 12,336,604 1,514,300,355 281,173,000 321,596,617

Total Liabilities 1,688,599,078 15,455,017 1,704,054,095 481,894,000 343,594,288

Deferred Inflows of Resources Property Taxes 332,030,678 0 332,030,678 0 0

Net Position Net Investment in Capital Assets 401,197,110 31,332,672 432,529,782 84,201,000 0 Restricted for: Capital Projects 40,503,928 0 40,503,928 0 0 Health and Human Services 52,919,168 0 52,919,168 0 0 Motor Vehicle 56,259,935 0 56,259,935 0 0 Developmental Disabilities 142,145,385 0 142,145,385 0 0 Community Development Programs 3,490,433 0 3,490,433 0 0 Children's Services 46,503,969 0 46,503,969 0 0 Alcohol and Drug Preventative Services 23,136,980 0 23,136,980 0 0 Health and Safety Services 11,766,574 0 11,766,574 0 0 Land Reutilization 1,325,533 0 1,325,533 0 0 Tax Assessment Operations 23,257,582 0 23,257,582 0 0 Judicial Services 24,330,885 0 24,330,885 0 0 Infrastructure System Operations 1,038,642 0 1,038,642 0 0 Other Purposes 53,666,272 0 53,666,272 0 0 MetroHealth System Expendable 0 0 0 57,303,000 0 Nonexpendable 0 0 0 12,071,000 0 Unrestricted 242,461,695 77,544,042 320,005,737 289,596,000 5,965,038 Total Net Position $1,124,004,091 $108,876,714 $1,232,880,805 $443,171,000 $5,965,038

(1) Dollars rounded to the nearest thousands

See accompanying notes to the basic financial statements - 15 - Cuyahoga County, Ohio Statement of Activities For the Year Ended December 31, 2014

Program Revenues

Charges for Services and Operating Operating Grants Capital Grants Expenses Assessments and Contributions and Contributions Primary Government Governmental Activities: General Government: Legislative and Executive $135,953,017 $35,036,951 $4,954,400 $2,238,052 Judicial 352,836,602 75,709,580 57,817,150 0 Public Works 73,150,390 2,405,613 29,033,486 26,662,104 Health and Safety 117,149,663 2,224,802 43,769,536 0 Social Services 478,626,687 7,920,707 262,496,669 0 Community Development 72,726,759 2,120,234 31,880,239 17,379,070 Interest and Fiscal Charges 59,655,039000

Total Governmental Activities 1,290,098,157 125,417,887 429,951,480 46,279,226

Business-Type Activities: Sanitary Engineer 22,348,922 26,432,472 0 445,479 Airport 1,600,628 841,038 0 0 Parking Garage 3,124,035 3,332,600 0 0 Information Systems 957,350 1,582,361 0 0

Total Business-Type Activities 28,030,935 32,188,471 0 445,479

Total - Primary Government $1,318,129,092 $157,606,358 $429,951,480 $46,724,705

Component Units MetroHealth System (1) $880,005,000 $793,345,000 $51,474,000 $310,000 Cuyahoga County Convention Facilities Development Corporation 26,528,906 5,221,417 9,212,651 926,986

Totals - Component Units $906,533,906 $798,566,417 $60,686,651 $1,236,986

General Revenues Property Taxes Levied for: General Purposes General Obligation Bond Retirement Health and Human Services Children's Services Developmental Disabilities Sales Taxes Levied for General Purposes Hotel/Lodging Taxes Excise Tax Payments in Lieu of Taxes Grants and Entitlements not Restricted to Specific Programs Interest Other

Total General Revenues

Transfers

Total General Revenues, Special Items and Transfers

Change in Net Position

Net Position Beginning of Year - Restated (See Note 3)

Net Position End of Year

(1) Dollars rounded to the nearest thousands

See accompanying notes to the basic financial statements - 16 - Net (Expense) Revenue and Changes in Net Position

Primary Government Component Units

Cuyahoga County Convention Facilities Governmental Business-Type MetroHealth Development Activities Activities Total System (1) Corporation

($93,723,614) $0 ($93,723,614) $0 $0 (219,309,872) 0 (219,309,872) 0 0 (15,049,187) 0 (15,049,187) 0 0 (71,155,325) 0 (71,155,325) 0 0 (208,209,311) 0 (208,209,311) 0 0 (21,347,216) 0 (21,347,216) 0 0 (59,655,039) 0 (59,655,039) 0 0

(688,449,564) 0 (688,449,564) 0 0

0 4,529,029 4,529,029 0 0 0 (759,590) (759,590) 0 0 0 208,565 208,565 0 0 0 625,011 625,011 0 0

0 4,603,015 4,603,015 0 0

(688,449,564) 4,603,015 (683,846,549) 0 0

0 0 0 (34,876,000) 0

0000(11,167,852)

0 0 0 (34,876,000) (11,167,852)

13,958,416 0 13,958,416 0 0 18,753,293 0 18,753,293 0 0 181,798,759 0 181,798,759 0 0 34,461,468 0 34,461,468 0 0 90,060,449 0 90,060,449 0 0 251,892,766 0 251,892,766 0 0 10,487,082 0 10,487,082 0 0 10,797,827 0 10,797,827 0 0 5,762,828 0 5,762,828 0 0 30,712,035 0 30,712,035 0 0 5,481,224 48 5,481,272 (3,525,000) 17,132,180 16,297,403 66,806 16,364,209 71,190,000 710

670,463,550 66,854 670,530,404 67,665,000 17,132,890

(4,620,470) 4,620,470000

665,843,080 4,687,324 670,530,404 67,665,000 17,132,890

(22,606,484) 9,290,339 (13,316,145) 32,789,000 5,965,038

1,146,610,575 99,586,375 1,246,196,950 410,382,000 0

$1,124,004,091 $108,876,714 $1,232,880,805 $443,171,000 $5,965,038

- 17 - Cuyahoga County, Ohio Balance Sheet Governmental Funds December 31, 2014

County Health Board of Human and Human Developmental General Services Services Levy Disabilities

Assets Equity in Pooled Cash and Cash Equivalents $213,629,421 $4,305,118 $39,294,611 $120,169,266 Cash and Cash Equivalents In Segregated Accounts 3,277,755 0 0 40,660 Accrued Interest Receivable 352,995 0 0 0 Accounts Receivable 4,797,324 811,166 9,837 0 Interfund Receivable 4,653,754 5,006,996 0 0 Intergovernmental Receivable 14,979,397 15,388,099 2,734,440 9,874,745 Sales Taxes Receivable 67,309,576 0 0 0 Property Taxes Receivable 17,755,845 92,370,942 70,761,041 114,940,133 Loans Receivable 500,000 0 0 0 Restricted Assets: Equity in Pooled Cash and Cash Equivalents 10,605,525 0 0 0 Equity in Pooled Cash and Cash Equivalents with Fiscal Agent 0 0 0 0

Total Assets $337,861,592 $117,882,321 $112,799,929 $245,024,804

Liabilities Accounts Payable $6,119,835 $7,064,154 $2,719,077 $2,469,324 Accrued Wages 8,312,534 4,055,260 261,256 3,175,850 Contracts Payable 0000 Intergovernmental Payable 1,826,702 1,918,260 233,009 1,367,214 Retainage Payable 0000 Interfund Payable 2,556,054 1,065,357 111,045 592,807

Total Liabilities 18,815,125 14,103,031 3,324,387 7,605,195

Deferred Inflows of Resources Property Taxes 14,191,584 73,828,274 56,556,374 91,954,848 Unavailable Revenue 37,439,191 33,732,927 16,939,107 29,533,048

Total Deferred Inflows of Resources 51,630,775 107,561,201 73,495,481 121,487,896

Fund Balances Nonspendable 10,855,525 0 0 0 Restricted 0 0 35,980,061 115,931,713 Assigned 24,832,959 0 0 0 Unassigned (Deficit) 231,727,208 (3,781,911) 0 0

Total Fund Balances (Deficit) 267,415,692 (3,781,911) 35,980,061 115,931,713

Total Liabilities, Deferred Inflows of Resources and Fund Balances $337,861,592 $117,882,321 $112,799,929 $245,024,804

See accompanying notes to the basic financial statements

- 18 - Global Convention Center for Center Other Total Children Health Hotel Governmental Governmental Services Innovation Construction Funds Funds

$45,402,352 $0 $0 $256,128,471 $678,929,239

0 0 0 4,453,635 7,772,050 0 0 0 366,411 719,406 0 0 0 3,537,694 9,156,021 0 762,500 0 0 10,423,250 1,838,239 235,117 0 26,162,010 71,212,047 0 0 0 0 67,309,576 46,971,397 0 0 72,513,743 415,313,101 0 341,404,335 0 58,763,523 400,667,858

0 0 0 0 10,605,525

0 29,233,800 162,458,213 41,075,189 232,767,202

$94,211,988 $371,635,752 $162,458,213 $463,000,676 $1,904,875,275

$4,954,096 $0 $0 $17,678,831 $41,005,317 0 0 0 2,100,731 17,905,631 0 0 8,479,943 6,115,543 14,595,486 204,632 762,500 0 2,144,427 8,456,744 0 0 3,150,955 0 3,150,955 5,006,996 0 46,709 1,246,873 10,625,841

10,165,724 762,500 11,677,607 29,286,405 95,739,974

37,542,295 0 0 57,957,303 332,030,678 11,260,241 0 0 24,476,403 153,380,917

48,802,536 0 0 82,433,706 485,411,595

0 0 0 0 10,855,525 35,243,728 370,873,252 150,780,606 353,016,775 1,061,826,135 0 0 0 0 24,832,959 0 0 0 (1,736,210) 226,209,087

35,243,728 370,873,252 150,780,606 351,280,565 1,323,723,706

$94,211,988 $371,635,752 $162,458,213 $463,000,676 $1,904,875,275

- 19 - Cuyahoga County, Ohio Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities December 31, 2014

Total Governmental Fund Balances $1,323,723,706

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

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 1,191,191,704

Other long-term assets are not available to pay for current-period expenditures and therefore are reported as unavailable revenue in the funds: Delinquent Property Taxes 83,282,423 Sales Taxes 25,823,528 Intergovernmental 43,815,834 Charges for Services 174,887 Other 284,245 Total 153,380,917

Internal service funds are used by management to charge costs to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Net Position 31,558,280 Internal Balances (422,197) Capital Assets (401,063) Compensated Absences 1,133,003 Total 31,868,023

In the statement of activities, interest is accrued on outstanding bonds and notes, whereas in governmental funds, an interest expenditure is reported when due. (4,010,801)

Deferred outflows of resources represent deferred amount on refundings which are not reported in funds. 2,261,330

Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Unvoted General Obligation Bonds (282,490,306) Certificates of Participation (256,864,058) Revenue Bonds (576,029,491) Loans Payable (4,859,876) Capital Lease Payable (425,742,974) Notes Payable (2,000,000) Compensated Absences (26,424,083) Total (1,574,410,788)

Net Position of Governmental Activities $1,124,004,091

See accompanying notes to the basic financial statements

- 20 - (This Page Intentionally Left Blank)

- 21 - Cuyahoga County, Ohio Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2014

County Health Board of Human and Human Developmental General Services Services Levy Disabilities

Revenues Property Taxes $13,996,437 $72,458,264 $58,472,545 $90,245,397 Sales Tax 249,521,238000 Hotel/Lodging Taxes 4,723,652000 Excise Tax 10,797,827000 Payments in Lieu of Taxes 0000 Charges for Services 71,921,409 922,844 145 4,199,286 Licenses and Permits 88,881000 Fines and Forfeitures 11,775,750000 Intergovernmental 40,431,195 130,045,506 8,113,667 95,180,773 Interest 2,526,066000 Contributions and Donations 0 241,500 0 26,483 Other 6,049,690 2,756,288 260,743 1,198,719

Total Revenues 411,832,145 206,424,402 66,847,100 190,850,658

Expenditures Current: General Government: Legislative and Executive 75,831,903000 Judicial 241,685,657 0 20,997,837 0 Public Works 0000 Health and Safety 334,098 0 39,906,752 0 Social Services 10,002,676 194,250,872 6,253,296 195,473,346 Community Development 16,862,280000 Capital Outlay 75,545,977000 Debt Service: Principal Retirement 500,000 3,037,141 0 0 Interest and Fiscal Charges 0 1,463,028 0 0 Issuance Costs 0000

Total Expenditures 420,762,591 198,751,041 67,157,885 195,473,346

Excess of Revenues Over (Under) Expenditures (8,930,446) 7,673,361 (310,785) (4,622,688)

Other Financing Sources (Uses) Sale of Capital Assets 289 0 0 33,129 Revenue Bonds Issued 0000 Revenue Refunding Bonds Issued 0000 Premium on Revenue Bonds 0000 Discount on Revenue Bonds 0000 Certificates of Participation Issued 0000 Premium on Certificates of Participation 0000 Discounts on Certificates of Participation 0000 Payment to Refunded Bond Escrow Agent 0000 Inception of Capital Lease 75,545,977000 Transfers In 5,063,919 201,000 1,000,000 0 Transfers Out (64,916,563) 0 0 0

Total Other Financing Sources (Uses) 15,693,622 201,000 1,000,000 33,129

Net Change in Fund Balances 6,763,176 7,874,361 689,215 (4,589,559)

Fund Balances (Deficit) Beginning of Year - Restated (See Note 3) 260,652,516 (11,656,272) 35,290,846 120,521,272

Fund Balances (Deficit) End of Year $267,415,692 ($3,781,911) $35,980,061 $115,931,713

See accompanying notes to the basic financial statements

- 22 - Global Convention Center for Center Other Total Children Health Hotel Governmental Governmental Services Innovation Construction Funds Funds

$32,888,291 $0 $0 $66,632,817 $334,693,751 0000249,521,238 0 0 0 5,763,430 10,487,082 000010,797,827 0 0 0 5,762,828 5,762,828 0 0 0 31,841,427 108,885,111 0 0 0 1,513,779 1,602,660 0 0 0 2,979,479 14,755,229 25,981,053 235,117 0 181,165,207 481,152,518 0 17,143,953 31,070 2,924,088 22,625,177 0 0 0 649,271 917,254 395,830 0 0 4,816,809 15,478,079

59,265,174 17,379,070 31,070 304,049,135 1,256,678,754

0 0 0 22,146,671 97,978,574 0 0 0 70,278,076 332,961,570 0 0 0 31,227,458 31,227,458 0 0 0 76,278,640 116,519,490 65,321,821 0 0 2,447,760 473,749,771 0 5,737,773 264,270 46,121,765 68,986,088 0 0 74,771,207 77,881,399 228,198,583

0 18,867,820 0 51,233,704 73,638,665 0 17,132,180 0 41,741,123 60,336,331 0 0 2,084,486 1,426,092 3,510,578

65,321,821 41,737,773 77,119,963 420,782,688 1,487,107,108

(6,056,647) (24,358,703) (77,088,893) (116,733,553) (230,428,354)

000033,418 0 0 0 125,631,885 125,631,885 0 0 0 55,333,115 55,333,115 0 0 0 18,679,044 18,679,044 0 0 0 (548,989) (548,989) 0 0 230,885,000 0 230,885,000 0 0 2,617,983 23,812,200 26,430,183 0 0 (451,125) 0 (451,125) 0 0 0 (59,420,509) (59,420,509) 000075,545,977 0 2,339,416 0 85,804,748 94,409,083 0 0 (4,750,000) (22,412,852) (92,079,415)

0 2,339,416 228,301,858 226,878,642 474,447,667

(6,056,647) (22,019,287) 151,212,965 110,145,089 244,019,313

41,300,375 392,892,539 (432,359) 241,135,476 1,079,704,393

$35,243,728 $370,873,252 $150,780,606 $351,280,565 $1,323,723,706

- 23 - Cuyahoga County, Ohio Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2014

Net Change in Fund Balances - Total Governmental Funds $244,019,313

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

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeds depreciation in the current period: Capital Outlays 172,353,734 Depreciation (44,909,558) Total 127,444,176

Governmental funds only report the disposal of capital assets to the extent proceeds are received from the sale. In the statement of activities, a gain or loss is reported for each disposal. (6,372,939)

Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the funds: Delinquent Property Taxes 4,338,634 Sales Taxes 2,371,528 Intergovernmental 7,729,016 Charges for Services 174,887 Other 284,245 Total 14,898,310

Repayment of long-term obligations is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal Retirement 73,638,665 Payment to Refunded Bond Escrow Agent 59,420,509 Total 133,059,174

The transfer for the assumption of enterprise debt increases the long-term liabilities on the statement of net position. (3,040,000)

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Accrued Interest on Bonds (756,136) Amortization of Premium 1,716,203 Amortization of Discount (1,380) Deferred Charge on Refunding Amortization (277,395) Total 681,292

Some expenses reported in the statement of activities, such as compensated absences, do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. 278,849

Internal service funds used to charge costs to individual funds are not reported in the County-wide statement of activities. Governmental fund expenditures and related internal service funds revenues are eliminated. The net revenue (expense) of the internal service funds are allocated among the governmental and business-type activities. Change in Net Position (6,612,210) Change in Internal Balance 97,470 Change in Capital Assets 4,521,516 Change in Compensated Absences (76,345) Total (2,069,569)

Other financing sources in the governmental funds increase long-term liabilities in the statement of net position. Certificates of Participation Issued (230,885,000) Premium on Certificates of Participation (26,430,183) Discount on Certificates of Participation 451,125 Revenue Bonds Issued (125,631,885) Revenue Refunding Bonds Issued (55,333,115) Premium on Revenue Bonds (18,679,044) Discount on Revenue Bonds 548,989 Inception of Capital Lease (75,545,977) Total (531,505,090)

Change in Net Position of Governmental Activities ($22,606,484)

See accompanying notes to the basic financial statements

- 24 - Cuyahoga County, Ohio Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $13,265,401 $13,747,781 $13,996,437 $248,656 Sales Tax 233,878,198 242,382,885 246,766,868 4,383,983 Hotel/Lodging Taxes 4,200,842 4,353,600 4,432,344 78,744 Excise Tax 10,233,855 10,605,996 10,797,827 191,831 Charges for Services 69,211,055 71,560,531 72,809,567 1,249,036 Licenses and Permits 84,239 87,302 88,881 1,579 Fines and Forfeitures 11,540,360 11,960,011 12,176,332 216,321 Intergovernmental 38,350,919 38,815,495 39,482,726 667,231 Interest 423,864 439,277 447,222 7,945 Other 5,276,904 5,551,585 6,035,402 483,817

Total Revenues 386,465,637 399,504,463 407,033,606 7,529,143

Expenditures Current: General Government: Legislative and Executive 84,460,695 86,576,916 84,074,188 2,502,728 Judicial 247,288,469 254,649,331 250,037,288 4,612,043 Public Works 594,721 594,721 0 594,721 Health and Safety 488,003 508,446 471,142 37,304 Social Services 10,816,984 10,741,584 10,431,529 310,055 Community Development 18,542,817 22,775,467 19,079,036 3,696,431 Debt Service: Principal Retirement 250,000 250,000 500,000 (250,000)

Total Expenditures 362,441,689 376,096,465 364,593,183 11,503,282

Excess of Revenues Over (Under) Expenditures 24,023,948 23,407,998 42,440,423 19,032,425

Other Financing Sources (Uses) Sale of Capital Assets 274 284 289 5 Transfers In 4,717,835 4,946,072 5,063,919 117,847 Transfers Out (47,689,649) (63,893,239) (62,577,147) 1,316,092

Total Other Financing Sources (Uses) (42,971,540) (58,946,883) (57,512,939) 1,433,944

Net Change in Fund Balance (18,947,592) (35,538,885) (15,072,516) 20,466,369

Fund Balance Beginning of Year 197,179,390 197,179,390 197,179,390 0 Prior Year Encumbrances Appropriated 22,948,938 22,948,938 22,948,938 0

Fund Balance End of Year $201,180,736 $184,589,443 $205,055,812 $20,466,369

See accompanying notes to the basic financial statements

- 25 - Cuyahoga County, Ohio Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Human Services Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $70,424,500 $86,701,070 $72,458,264 ($14,242,806) Charges for Services 896,942 1,104,244 922,844 (181,400) Intergovernmental 126,050,119 155,182,931 129,690,277 (25,492,654) Contributions and Donations 181,764 223,773 187,013 (36,760) Other 2,443,162 3,007,828 2,513,718 (494,110)

Total Revenues 199,996,487 246,219,846 205,772,116 (40,447,730)

Expenditures Current: Social Services 243,773,403 243,133,186 238,439,879 4,693,307

Excess of Revenues Over (Under) Expenditures (43,776,916) 3,086,660 (32,667,763) (35,754,423)

Other Financing Sources (Uses) Transfers In 195,359 240,509 201,000 (39,509)

Net Change in Fund Balance (43,581,557) 3,327,169 (32,466,763) (35,793,932)

Fund Deficit Beginning of Year (42,794,475) (42,794,475) (42,794,475) 0 Prior Year Encumbrances Appropriated 39,487,222 39,487,222 39,487,222 0

Fund Balance (Deficit) End of Year ($46,888,810) $19,916 ($35,774,016) ($35,793,932)

See accompanying notes to the basic financial statements

- 26 - Cuyahoga County, Ohio Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Health and Human Services Levy Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $70,576,742 $59,959,983 $58,472,545 ($1,487,438) Charges for Services 153 146 145 (1) Intergovernmental 9,336,236 8,287,653 8,140,743 (146,910) Other 265,579 252,709 250,906 (1,803)

Total Revenues 80,178,710 68,500,491 66,864,339 (1,636,152)

Expenditures Current: General Government: Judicial 27,142,591 27,612,828 27,188,835 423,993 Health and Safety 40,080,000 40,080,000 40,080,000 0 Social Services 8,602,564 7,591,667 7,475,949 115,718

Total Expenditures 75,825,155 75,284,495 74,744,784 539,711

Excess of Revenues Over (Under) Expenditures 4,353,555 (6,784,004) (7,880,445) (1,096,441)

Other Financing Sources (Uses) Transfers In 2,902,146 1,233,747 1,000,000 (233,747) Transfers Out (2,903,157) (6,803,151) 0 6,803,151

Total Other Financing Sources (Uses) (1,011) (5,569,404) 1,000,000 6,569,404

Net Change in Fund Balance 4,352,544 (12,353,408) (6,880,445) 5,472,963

Fund Balance Beginning of Year 29,494,742 29,494,742 29,494,742 0 Prior Year Encumbrances Appropriated 8,535,420 8,535,420 8,535,420 0

Fund Balance End of Year $42,382,706 $25,676,754 $31,149,717 $5,472,963

See accompanying notes to the basic financial statements

- 27 - Cuyahoga County, Ohio Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual County Board of Developmental Disabilities Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $95,267,223 $89,569,701 $90,245,397 $675,696 Charges for Services 4,401,673 4,138,428 4,169,647 31,219 Intergovernmental 99,189,693 93,257,584 93,961,101 703,517 Contributions and Donations 26,483 26,483 26,483 0 Other 1,266,897 1,189,545 1,198,719 9,174

Total Revenues 200,151,969 188,181,741 189,601,347 1,419,606

Expenditures Current: Social Services 209,404,627 209,404,627 200,703,718 8,700,909

Excess of Revenues Over (Under) Expenditures (9,252,658) (21,222,886) (11,102,371) 10,120,515

Other Financing Sources (Uses) Sale of Capital Assets 34,972 32,881 33,129 248

Net Change in Fund Balance (9,217,686) (21,190,005) (11,069,242) 10,120,763

Fund Balance Beginning of Year 118,380,722 118,380,722 118,380,722 0 Prior Year Encumbrances Appropriated 7,071,589 7,071,589 7,071,589 0

Fund Balance End of Year $116,234,625 $104,262,306 $114,383,069 $10,120,763

See accompanying notes to the basic financial statements

- 28 - Cuyahoga County, Ohio Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Children Services Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $33,885,966 $29,933,505 $32,888,291 $2,954,786 Intergovernmental 33,747,650 29,811,320 32,754,046 2,942,726 Other 407,837 360,268 395,830 35,562

Total Revenues 68,041,453 60,105,093 66,038,167 5,933,074

Expenditures Current: Social Services 87,774,927 84,896,488 84,994,692 (98,204)

Net Change in Fund Balance (19,733,474) (24,791,395) (18,956,525) 5,834,870

Fund Balance Beginning of Year 29,611,562 29,611,562 29,611,562 0 Prior Year Encumbrances Appropriated 14,730,303 14,730,303 14,730,303 0

Fund Balance End of Year $24,608,391 $19,550,470 $25,385,340 $5,834,870

See accompanying notes to the basic financial statements

- 29 - Cuyahoga County, Ohio Statement of Fund Net Position Proprietary Funds December 31, 2014

Enterprise Funds

All Other Sanitary Enterprise Internal Engineer Funds Total Service

Assets Current Assets: Equity in Pooled Cash and Cash Equivalents $35,654,446 $3,897,014 $39,551,460 $54,864,155 Materials and Supplies Inventory 0 25,996 25,996 0 Accrued Interest Receivable 11 0 11 0 Intergovernmental Receivable 460,590 213,574 674,164 1,749,912 Accounts Receivable 8,700 185,000 193,700 346,956 Special Assessments Receivable 39,867,716 0 39,867,716 0 Loans Receivable 26,132 0 26,132 0 Interfund Receivable 0 102,182 102,182 5,762,893

Total Current Assets 76,017,595 4,423,766 80,441,361 62,723,916

Noncurrent Assets: Capital Assets: Nondepreciable Capital Assets 447,617 6,056,978 6,504,595 0 Depreciable Capital Assets, Net 29,497,589 7,758,133 37,255,722 401,063

Total Noncurrent Assets 29,945,206 13,815,111 43,760,317 401,063

Total Assets 105,962,801 18,238,877 124,201,678 63,124,979

Liabilities Current Liabilities: Accounts Payable 944,340 347,986 1,292,326 3,092,749 Accrued Wages 303,613 41,946 345,559 1,046,616 Intergovernmental Payable 757,665 95,909 853,574 5,439,688 Interfund Payable 254,087 38,057 292,144 5,370,340 Compensated Absences Payable 20,776 25,566 46,342 126,560 Accrued Interest Payable 700 0 700 0 General Obligation Bonds Payable 210,000 0 210,000 0 OWDA Loans Payable 328,872 0 328,872 0 OPWC Loans Payable 41,040 0 41,040 0 Claims Payable 0 0 0 15,484,303

Total Current Liabilities 2,861,093 549,464 3,410,557 30,560,256

Long-Term Liabilities (net of current portion): Compensated Absences Payable 451,129 37,742 488,871 1,006,443 OWDA Loans Payable 11,568,900 0 11,568,900 0 OPWC Loans Payable 278,833 0 278,833 0

Total Long-Term Liabilities 12,298,862 37,742 12,336,604 1,006,443

Total Liabilities 15,159,955 587,206 15,747,161 31,566,699

Net Position Net Investment in Capital Assets 17,517,561 13,815,111 31,332,672 401,063 Unrestricted 73,285,285 3,836,560 77,121,845 31,157,217

Total Net Position $90,802,846 $17,651,671 108,454,517 $31,558,280

Net position reported for business-type activities in the statement of net position are different because they include accumulated overpayments to the internal service funds: 422,197

Net position of business-type activities $108,876,714

See accompanying notes to the basic financial statements - 30 - Cuyahoga County, Ohio Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended December 31, 2014

Enterprise Funds

All Other Sanitary Enterprise Internal Engineer Funds Total Service

Operating Revenues Charges for Services $25,882,217 $5,755,999 $31,638,216 $153,531,231 Tap-In Fees 550,255 0 550,255 0 Other 30,454 36,352 66,806 535,079

Total Operating Revenues 26,462,926 5,792,351 32,255,277 154,066,310

Operating Expenses Personal Services 9,221,490 1,273,626 10,495,116 28,754,228 Materials and Supplies 1,719,661 198,038 1,917,699 15,030,132 Contractual Services 8,623,959 2,206,991 10,830,950 35,712,015 Claims 0 0 0 73,534,482 Depreciation 2,045,817 655,662 2,701,479 195,982 Other 245,038 1,195,864 1,440,902 1,548,679

Total Operating Expenses 21,855,965 5,530,181 27,386,146 154,775,518

Operating Income (Loss) 4,606,961 262,170 4,869,131 (709,208)

Non-Operating Revenues (Expenses) Interest 48 0 48 0 Interest and Fiscal Charges (544,495) 0 (544,495) 0 Loss on Disposal of Capital Assets 0 (2,824) (2,824) 0

Total Non-Operating Revenues (Expenses) (544,447) (2,824) (547,271) 0

Income (Loss) before Capital Contributions Transfers and Special Items 4,062,514 259,346 4,321,860 (709,208)

Capital Contributions 3,485,479 2,332,670 5,818,149 0 Transfers In 0 314,523 314,523 2,619,650 Transfers Out 0 (1,066,723) (1,066,723) (4,197,118) Special Item - Data Processing 0 0 0 (4,325,534)

Change in Net Position 7,547,993 1,839,816 9,387,809 (6,612,210)

Net Position Beginning of Year 83,254,853 15,811,855 38,170,490

Net Position End of Year $90,802,846 $17,651,671 $31,558,280

Some amounts reported for business-type activities in the statement of activities are different because a portion of the net expense of the internal service funds is reported with business-type activities. (97,470)

Change in net position of business-type activities $9,290,339

See accompanying notes to the basic financial statements - 31 - Cuyahoga County, Ohio Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2014

Enterprise Funds

All Other Sanitary Enterprise Internal Engineer Funds Total Service

Increases (Decreases) in Cash and Cash Equivalents

Cash Flows from Operating Activities Cash Received from Customers $22,087,296 $5,599,094 $27,686,390 $0 Cash Received from Interfund Transactions 0 0 0 151,691,660 Other Cash Receipts 40,252 36,352 76,604 542,665 Cash Payments to Employees for Services (9,067,305) (1,292,382) (10,359,687) (28,589,560) Cash Payments for Goods and Services (9,700,587) (2,375,610) (12,076,197) (53,236,639) Cash Payments for Claims 0 0 0 (73,765,707) Other Cash Payments (233,612) (1,132,149) (1,365,761) (1,546,028)

Net Cash Provided by (Used for) Operating Activities 3,126,044 835,305 3,961,349 (4,903,609)

Cash Flows from Noncapital Financing Activities Advances In 0 0 0 3,435,268 Advances Out 0 0 0 (99,551) Transfers In 0 314,523 314,523 2,619,650 Transfers Out 0 (1,066,723) (1,066,723) (4,197,118)

Net Cash Provided by (Used for) Noncapital Financing Activities 0 (752,200) (752,200) 1,758,249

Cash Flows from Capital and Related Financing Activities Capital Grants 167,938 0 167,938 0 Proceeds from OWDA Loans 400,455 0 400,455 0 Principal Paid on General Obligation Bonds (265,000) 0 (265,000) 0 Interest Paid on General Obligation Bonds (147,998) 0 (147,998) 0 Principal Paid on OPWC Loans (78,378) 0 (78,378) 0 Principal Paid on OWDA Loans (791,267) 0 (791,267) 0 Interest Paid on OWDA Loans (408,130) 0 (408,130) 0 Payments for Capital Acquisitions (1,634,669) (10,073) (1,644,742) 0

Net Cash Provided by (Used in) Capital and and Related Financing Activities (2,757,049) (10,073) (2,767,122) 0

Cash Flows from Investing Activities Interest on Investments 37 0 37 0

Net Increase (Decrease) in Cash and Cash Equivalents 369,032 73,032 442,064 (3,145,360)

Cash and Cash Equivalents Beginning of Year 35,285,414 3,823,982 39,109,396 58,009,515

Cash and Cash Equivalents End of Year $35,654,446 $3,897,014 $39,551,460 $54,864,155

(continued)

- 32 - Cuyahoga County, Ohio Statement of Cash Flows Proprietary Funds (continued) For the Year Ended December 31, 2014

Enterprise Funds

All Other Sanitary Enterprise Internal Engineer Funds Total Service

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities

Operating Income (Loss) $4,606,961 $262,170 $4,869,131 ($709,208)

Adjustments: Depreciation 2,045,817 655,662 2,701,479 195,982 (Increase) Decrease in Assets: Materials and Supplies Inventory 0 (149) (149) 0 Intergovernmental Receivable (460,590) (203,974) (664,564) (987,274) Accounts Receivable (8,700) 149,251 140,551 (194,145) Special Assessments Receivable (3,875,886) 0 (3,875,886) 0 Loans Receivable 9,798 0 9,798 0 Interfund Receivable 0 (102,182) (102,182) (650,566) Increase (Decrease) in Liabilities: Accounts Payable (56,894) 4,541 (52,353) (2,663,008) Accrued Wages 57,277 (14,109) 43,168 104,219 Intergovernmental Payable 719,906 87,317 807,223 245,356 Interfund Payable 40,553 15,273 55,826 62,605 Compensated Absences Payable 47,802 (18,495) 29,307 (76,345) Claims Payable 0 0 0 (231,225)

Total Adjustments (1,480,917) 573,135 (907,782) (4,194,401)

Net Cash Provided by (Used for) Operating Activities $3,126,044 $835,305 $3,961,349 ($4,903,609)

Noncash Capital Financing Activities During 2014, OWDA forgave $277,541 in principal payments for the Sanitary Sewer enterprise fund. These amounts are included in capital contributions.

During 2014, the Sanitary Sewer enterprise fund transferred $425,000 of the 2000 Sewer Improvement Bonds and $2,615,000 of the 2005 Sewer Improvement Bonds to governmental activities.

During 2014, the capital projects fund donated $1,139,440 in runway renovations to the County Airport enterprise fund. These amounts are included in capital contributions.

During 2014, the capital projects fund donated $1,193,230 in building improvements to the Parking Garage enterprise fund. These amounts are included in capital contributions.

See accompanying notes to the basic financial statements

- 33 - Cuyahoga County, Ohio Statement of Fiduciary Assets and Liabilities Agency Funds December 31, 2014

Assets Equity in Pooled Cash and Cash Equivalents $253,234,086 Cash and Cash Equivalents in Segregated Accounts 45,307,870 Property Taxes Receivable 3,012,729,887 Special Assessments Receivable 108,314,469

Total Assets $3,419,586,312

Liabilities Undistributed Monies $3,365,509,905 Deposits Held and Due to Others 54,076,407

Total Liabilities $3,419,586,312

See accompanying notes to the basic financial statements

- 34 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 1 - Description of Cuyahoga County and Reporting Entity

Cuyahoga County (the County) operates as a political subdivision of the State of Ohio. The County was formed by an act of the Ohio General Assembly in 1810. On November 3, 2009, the voters of the County-at- large adopted a Charter form of government. The new Charter replaced the Commissioners with an elected County Executive and eleven-member Council. The elected offices of Auditor, Treasurer, Recorder, Clerk of Courts, Engineer, Sheriff and Coroner were replaced by non-elected appointees of the County Executive with approval by Council. The charter provided for the separation of administrative and legislative powers. The effective date of the charter was January 1, 2010. In addition, the new County Executive has created the Office of Inspector General which is responsible for investigation of any allegations of wrongdoing. To read the entire charter, please refer to http://council.cuyahogacounty.us/en-US/charter-cuyahogacounty.aspx.

The Prosecutor and the County Judges remain elected positions. There are thirty-four Common Pleas Court Judges, five Domestic Relations Court Judges, six Juvenile Court Judges, two Probate Court Judges and twelve Court of Appeals Judges elected on a County-wide basis to oversee the County's justice system. Although these elected officials manage the internal operations of their respective departments, the County Council authorizes expenditures as well as serves as the budget and taxing authority, contracting body, and the chief administrators of public services for the County, including each of these departments.

Reporting Entity

A reporting entity is composed of the primary government, component units and other organizations that are included to ensure that the financial statements are not misleading. The primary government consists of all funds, departments, boards and agencies that are not legally separate from the County. For Cuyahoga County, this includes the Family and Children First Council, the Board of Developmental Disabilities, the Alcohol, Drug Addiction and Mental Health Services Board and all departments and activities that are directly operated by the elected County officials.

Component units are legally separate organizations for which the County is financially accountable. The County is financially accountable for an organization if the County appoints a voting majority of the organization's governing board and (1) the County is able to significantly influence the programs or services performed or provided by the organization; or (2) the County is legally entitled to or can otherwise access the organization's resources; the County is legally obligated or has otherwise assumed the responsibility to finance the deficits of or provide financial support to, the organization; or the County is obligated for the debt of the organization. Component units may also include organizations that are fiscally dependent on the County in that the County approves the budget, the issuance of debt, or the levying of taxes, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the County.

The component unit columns in the financial statements identify the financial data of the County’s discretely presented component units, MetroHealth System and Cuyahoga County Convention Facilities Development Corporation. They are discretely reported to emphasize that they are legally separate from the County.

MetroHealth System (the Hospital) – MetroHealth System is a legally separate, non-profit organization, which provides health care and hospitalization to the general public and care for the County’s indigents. The County appoints the majority of the Hospital’s Board of Trustees. The Hospital is included in the County’s reporting entity because of its financial benefit/burden relation with the County. Cuyahoga County provides financial support for the general operations of the Hospital; during 2014 this support amounted to $40,024,000. MetroHealth Systems operates on a year ending December 31. Furthermore, the MetroHealth Foundation (the foundation) and the MHS - 35 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Holdings LLC (LLC), which are component units of the Hospital, are included in the Hospital’s financial statements. The Foundation is a not-for-profit organization supporting the Hospital that acts primarily as a fundraising organization to supplement the resources that are available to the Hospital in support of its programs. Although the Hospital does not control the timing or the amount of receipts from the Foundation, the majority of resources, or incomes thereon, which they hold and invest, are restricted to support the activities of the Hospital. Separately issued financial statements can be obtained from the MetroHealth System, 2500 MetroHealth Drive, Cleveland, Ohio, 44109.

Cuyahoga County Convention Facilities Development Corporation (the Corporation) – Cuyahoga County Convention Facilities Development Corporation is a legally separate, non-profit organization, which promotes the common good and welfare of the residents of Cuyahoga County by promoting revitalization, enhancing creation of new employment opportunities, and supporting economic growth for Greater Cleveland and Cuyahoga County. The County appoints the majority of the Corporation’s Board of Directors. Because the County appoints a voting majority of the Board of Directors, the County is able to impose its will on the operation of the Corporation. As a result, the Corporation will be reported as a discretely presented component unit of Cuyahoga County in accordance with Governmental Accounting Standards Board (GASB) Statement No. 14 as amended by GASB Statement No. 39. Cuyahoga County provides financial support to the Corporation. Separately issued financial statements can be obtained from the Cuyahoga County Convention Facilities Corporation, 2079 East Ninth Street, Cleveland, Ohio, 44115.

The County participates in the following related organizations and jointly governed organizations. These organizations are presented in Notes 25 and 26 to the Basic Financial Statements and are excluded from the accompanying financial statements.

Related Organizations Jointly Governed Organizations

Cuyahoga County Public Library Northeast Ohio Areawide Coordinating Agency Cleveland Metropolitan Park District North East Ohio Network Cuyahoga County Arts and Culture District Gateway Economic Development Corporation Cuyahoga County Land Bank of Greater Cleveland Cuyahoga Community College Western Reserve Area Agency on Aging Cleveland-Cuyahoga County Port Authority Greater Cleveland Regional Transit Authority Northeast Ohio Regional Sewer District

As the custodian of public funds, the County Treasurer invests all public moneys held on deposit in the County Treasury. In the case of the legally separate agencies, boards and commissions listed below, the County Fiscal Officer serves as fiscal agent but the organizations are not considered a part of Cuyahoga County. Accordingly the activity of the following districts is presented as agency funds within Cuyahoga County's financial statements:

Cuyahoga County Health District Cuyahoga County Soil and Water Conservation District

Information in the following notes to the basic financial statements is applicable to the primary government. Information for the component units are presented in Notes 29 and 30.

- 36 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 2 - Summary of Significant Accounting Policies

The financial statements of Cuyahoga County have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the County's accounting policies are described below.

Basis of Presentation

The County’s basic financial statements consist of government-wide statements, including a statement of net position and a statement of activities, and fund financial statements, which provide a more detailed level of financial information.

Government-wide Financial Statements The statement of net position and the statement of activities display information about the County as a whole. These statements include the financial activities of the primary government, except for fiduciary funds. The activity of the internal service funds is eliminated to avoid “doubling up” revenues and expenses. The statements distinguish between those activities of the County that are governmental and those that are considered business-type activities.

The statement of net position presents the financial condition of the governmental and business-type activities of the County at year-end. The statement of activities presents a comparison between direct expenses and program revenues for each program or function of the County’s governmental activities and for the business-type activities of the County. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operational or capital requirements of a particular program and interest earned on grants that is required to be used to support a particular program. Revenues which are not classified as program revenues are presented as general revenues of the County, with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each business segment or governmental function is self-financing or draws from the general revenues of the County.

Fund Financial Statements During the year, the County segregates transactions related to certain County functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the County at this more detailed level. The focus of governmental and enterprise fund financial statements is on major funds. Each major fund is presented in a separate column. Nonmajor funds are aggregated and presented in a single column. The internal service funds are presented in a single column on the face of the proprietary fund statements. Fiduciary funds are reported by type.

Fund Accounting

The County uses funds to maintain its financial records during the year. A fund is a fiscal and accounting entity with a self-balancing set of accounts. There are three categories of funds: governmental, proprietary, and fiduciary.

Governmental Fund Types Governmental funds are those through which most governmental functions are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Current liabilities are assigned to the fund from which they will be paid. - 37 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The difference between governmental fund assets and deferred outflows of resources and liabilities and deferred inflows of resources is reported as fund balance. The following are the County's major governmental funds:

General This fund accounts for and reports all financial resources except those required to be accounted for and reported in another fund. The general fund balance is available to the County for any purpose provided it is expended or transferred according to the charter of Cuyahoga County and/or the general laws of Ohio.

Human Services This fund accounts for and reports property taxes from human services levies as well as revenue from Federal, State and County governments restricted to provide entitlement services, senior and adult programs, children and family services and employment services to eligible County residents.

Health and Human Services Levy This fund accounts for and reports restricted property taxes from health and human services levies to provide public assistance to general relief recipients and certain public social services.

County Board of Developmental Disabilities This fund accounts for and reports State grants and property taxes from the special developmental disability levy restricted for the developmentally disabled.

Children Services This fund accounts for and reports a County-wide property tax levy and State grants restricted to the support and placement of children.

Global Center for Health Innovation (GCHI) This fund accounts for and reports debt proceeds restricted for the construction of the GCHI facility.

Convention Center Hotel Construction This fund accounts for and reports debt proceeds restricted for the construction of the convention center hotel.

The other governmental funds of the County account for grants and other resources whose use is restricted, committed or assigned to a particular purpose.

Proprietary Funds Proprietary fund reporting focuses on the determination of operating income, changes in net position, financial position and cash flows. Proprietary funds are classified as either enterprise or internal service.

Enterprise Funds Enterprise funds may be used to account for any activity for which a fee is charged to external users for goods or services. The following is the County’s major enterprise fund:

Sanitary Engineer This fund is used to account for the operations of County sewer lines. The office also enforces compliance of County sanitary regulations.

Internal Service Funds Internal service funds account for the financing of services provided by one department or agency to other departments or agencies of the County on a cost-reimbursement basis. The County’s internal service funds report on central custodial services, maintenance garage, data processing, general printing reproduction and supplies, postage and on self-insurance programs for employee medical benefits and workers’ compensation.

- 38 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Fiduciary Fund Types Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into the following four classifications: pension trust funds, investment trust funds, private-purpose trust funds and agency funds. Trust funds are used to account for assets held by the County under a trust agreement for individuals, private organizations, or other governments and are therefore not available to support the County’s own programs. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.

The County’s fiduciary funds are agency funds. Agency funds are used to account for assets held by the County as agent for the Board of Health and other districts and entities and for various taxes, assessments, and State shared resources collected on behalf of and distributed to other local governments.

Measurement Focus

Government-wide Financial Statements The government-wide financial statements are prepared using the economic resources measurement focus. All assets and deferred outflows of resources and all liabilities and deferred inflows of resources associated with the operation of the County are included on the Statement of Net Position. The Statement of Activities presents increases (e.g., revenues) and decreases (e.g., expenses) in total net position.

Fund Financial Statements All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and deferred outflows of resources and current liabilities and deferred inflows of resources, generally, are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconciliation with brief explanations to better identify the relationship between the government- wide statements and the statements for governmental funds.

Like the government-wide statements, all proprietary funds are accounted for on a flow of economic resources measurement focus. All assets and deferred outflows of resources and all liabilities and deferred inflows of resources associated with the operation of these funds are included on the statement of fund net position. The statement of changes in fund net position presents increases (i.e., revenues) and decreases (i.e., expenses) in net total position. The statement of cash flows provides information about how the County finances and meets the cash flow needs of its proprietary activities.

Basis of Accounting

Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting. Proprietary and fiduciary funds also use the accrual basis of accounting. Differences in the accrual and the modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred outflows/inflows of resources, and in the presentation of expenses versus expenditures.

Revenues - Exchange and Non-exchange Transactions Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Available means that the resources will be collected within the current year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current year. - 39 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

For the County, available means expected to be received within ninety days of year-end for all revenues except for property taxes which have an available period of sixty days. Nonexchange transactions, in which the County receives value without directly giving equal value in return, include sales taxes, property taxes, grants, entitlements and donations. On an accrual basis, revenue from sales taxes is recognized in the period in which the sale occurred. Revenue from property taxes is recognized in the year for which the taxes are levied (See Note 12). 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 the County must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the County on a reimbursement basis. On a modified accrual basis, revenue from nonexchange transactions must also be available before it can be recognized.

Under the modified accrual basis, the following revenue sources are considered to be both measurable and available at year-end: sales tax (see Note 15), interest, federal and state grants and subsidies, state-levied locally shared taxes (including motor vehicle license fees and gasoline taxes), fees and rentals.

Deferred Outflows/Inflows of Resources In addition to assets, the statements of financial position will sometimes report a separate section for deferred outflows of resources. Deferred outflows of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. For the County, deferred outflows of resources include the deferred charges on refunding’s reported in the government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

In addition to liabilities, the statements of financial position report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. For the County, deferred inflows of resources include property taxes and unavailable revenue. Property taxes represent amounts for which there is an enforceable legal claim as of December 31, 2014, but which were levied to finance year 2015 operations. The amounts have been recorded as deferred inflow on both the government- wide statement of net position and the government fund financial statements. Unavailable revenue is reported only on the governmental funds balance sheet, and represents receivables which will not be collected within the available period. For the County, unavailable revenue includes delinquent property taxes, sales taxes, charges for services, grants and entitlements and other revenue. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available.

Expenses/Expenditures On the accrual basis of accounting, expenses are recognized at the time they are incurred. The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation and amortization, are not recognized in governmental funds.

Cash and Cash Equivalents

To improve cash management, cash received by the County is pooled in a central bank account. Monies for all funds are maintained in this account or are temporarily used to purchase short term investments. Individual fund integrity is maintained through the County's records. Interest in the pool is presented as "Equity in Pooled Cash and Cash Equivalents." - 40 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The County utilizes a financial institution to service bonded debt as principal and interest payments come due. The balances in these accounts are presented on the statement of fund net position as "Cash and Cash Equivalents with Fiscal Agents."

Various departments within the County have segregated bank accounts for monies held separate from the County's central bank account. These accounts are presented as "cash and cash equivalents in segregated accounts" since they are not required to be deposited with the County Treasurer.

The County utilizes a financial institution to service various GCHI and Convention Center hotel payments as prescribed by the lease agreements when they come due. The balances in these accounts are presented on the statement of fund net position as "Cash and Cash Equivalents with Fiscal Agents."

During 2014, investments were limited to the federal farm credit banks bonds, federal home loan bank bonds, federal home loan mortgage corporation bank bonds, federal national mortgage association bonds, State of Israel notes, treasury coupon securities and STAR Ohio. Investments are reported at fair value which is based on quoted market prices, with the exception of certificates of deposit, which are reported at cost.

STAR Ohio is an investment pool managed by the State Treasurer’s Office which allows governments within the State to pool their funds for investment purposes. STAR Ohio is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in STAR Ohio are valued at STAR Ohio’s net asset value per share which is the price the investment could be sold at December 31, 2014.

Investment procedures are restricted by the provisions of the Ohio Revised Code. County policy requires interest earned on investments to be credited to the general fund except where there is a legal requirement or there are bond proceeds for capital improvements. Interest revenue credited to the general fund during 2014 amounted to $2,526,066 which includes $743,586 assigned from other County funds.

Investments with an original maturity of three months or less at the time of purchase and investments of the cash management pool are presented on the financial statements as cash equivalents.

Inventory

Inventories are presented at cost on a first-in, first-out basis and are expended/expensed when used. Inventory consists of expendable supplies held for consumption.

Restricted Assets

Assets are reported as restricted when limitations on their use change in nature or normal understanding of the availability of the asset. Such constraints are either externally imposed by creditors, contributors, grantors, or laws of other governments or imposed by law through constitutional provisions. Restricted assets in the general fund represent money set aside for unclaimed monies. Restricted assets in the community development special revenue fund and debt service fund represent money set aside for bond principal and interest payments. Restricted assets in the GCHI capital projects fund represent money set aside for the construction of the Global Center for Health Innovation facility and for bond principal and interest payments. Restricted assets in the convention center hotel capital projects fund represent money set aside for the construction of the hotel and for bond principal and interest payments.

- 41 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Capital Assets

General capital assets are capital assets which are associated with and generally arise from governmental activities. They generally result from expenditures in the governmental funds. General capital assets are reported in the governmental activities column of the government-wide statement of net position but are not reported in the fund financial statements. Capital assets utilized by the enterprise funds are reported both in the business-type activities column of the government-wide statement of net position and in the respective funds.

All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. The County was able to estimate the historical cost for the initial reporting of infrastructure by back-trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). Donated capital assets are recorded at their fair market values as of the date received. The County maintains a capitalization threshold of nine thousand dollars with the exception of land as land is listed regardless of cost. Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are not. Interest incurred during the construction of proprietary fund capital assets is also capitalized.

All capital assets are depreciated or amortized except for land and construction in progress. Improvements are depreciated or amortized over the remaining useful lives of the related capital assets. Depreciation and amortization is computed using the straight-line method over the following useful lives:

Governmental Business Type Activities Activities Description Estimated Lives Estimated Lives Land Improvements 5 - 20 Years 5 - 20 Years Utility Plant N/A 20 - 50 Years Buildings, Structures and Improvements 5 - 40 Years 5 - 40 Years Furniture, Fixtures and Equipment 3 - 22 Years 3 - 22 Years Vehicles 4 - 9 Years 4 - 9 Years Infrastructure 20 - 69 Years N/A

The County’s infrastructure consists of roads and bridges and includes infrastructure acquired prior to 1980.

During 2012, the County acquired an intangible asset through the agreement with the Village of Highland Hills for the right to use the Community Learning Center with a value of $1,975,312. At December 31, 2014, the carrying amount of the asset is $1,660,772. Amortization is computed using the straight-line method over the term of the agreement, which has 11 years remaining.

Compensated Absences

Vacation and compensatory time benefits are accrued as a liability as the benefits are earned if the employees' rights to receive compensation are attributable to services already rendered and it is probable that the County will compensate the employees for the benefits through paid time off or some other means. The County records a liability for all accumulated unused vacation and compensatory time when earned for all employees.

- 42 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Sick leave benefits are accrued as a liability using the termination method. An accrual for earned sick leave is made to the extent that it is probable that benefits will result in termination payments. The liability is an estimate based on the County's past experience of making termination payments.

Bond Premiums and Discounts

On the government-wide financial statements, bond premiums and discounts are deferred and amortized over the term of the bonds using the effective-interest method. Bond premiums are presented as an increase of the face amount of the general obligation bonds payable. On fund financial statements, bond premiums are receipted in the year the bonds are issued. On the government-wide financial statements, bond discounts are presented as a decrease of the face amount of the general obligation bonds payable. On fund financial statements, bond discounts are expended in the year the bonds are issued.

Deferred Charge on Refunding

On the government-wide financial statements, the difference between the reacquisition price (funds required to refund the old debt) and the net carrying amount of the old debt, the gain/loss on the refunding, is being amortized as a component of interest expense. This deferred amount is amortized over the life of the old or new debt, whichever is shorter, using the effective interest method and is presented as deferred outflows of resources on the statement of net position.

Accrued Liabilities and Long-Term Obligations

All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements, and all payables, accrued liabilities and long-term obligations payable from proprietary funds are reported in the proprietary fund financial statements.

In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources are reported as obligations of the funds. However, claims and judgments and compensated absences that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are due for payment during the current year. Bonds, capital leases and long-term loans are recognized as a liability in the fund financial statements when due.

Fund Balance

Fund balance is divided into five classifications based primarily on the extent to which the County is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows:

Nonspendable The nonspendable fund balance category includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash. It also includes the long-term amount of loans receivable, unless the use of the proceeds from the collection of those receivables is restricted, committed, or assigned.

Restricted Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions.

- 43 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Committed The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by a formal action (resolution or ordinance as both are equally legally binding) of County Council. Those committed amounts cannot be used for any other purpose unless County Council removes or changes the specified use by taking the same type of action (resolution or ordinance) it employed to previously commit those amounts. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned Amounts in the assigned fund balance classification are intended to be used by the County for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. These amounts are assigned by the County Council. In the general fund, assigned amounts represent intended uses established by County Council or a County official delegated that authority by County Charter or ordinance, or by State Statute. State statute authorizes the County Fiscal Officer to assign fund balance for purchases on order provided amounts have been lawfully appropriated. County Council assigned fund balance for the Coroner’s lab and downtown development in the City of Cleveland.

Unassigned Unassigned fund balance is the residual classification for the general fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance.

The County applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Interfund Balances

On the fund financial statements, outstanding interfund loans and unpaid amounts for interfund services are reported as “interfund receivables/payables”. Interfund balance amounts are eliminated in the statement of net position, except for any net residual amounts due between governmental and business-type activities, which are presented as internal balances.

Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Internal Activity

Transfers between governmental and business-type activities on the government-wide statements are reported in the same manner as general revenues. Transfers between governmental activities are eliminated on the government wide financial statements. Internal allocations of overhead expenses from one function to another or within the same function are eliminated on the Statement of Activities. Interfund payments for services provided and used are not eliminated.

- 44 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds and after non-operating revenues/expenses in proprietary funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements.

Budgetary Process

All funds, except agency funds are legally required to be budgeted and appropriated. For reporting purposes, various agency funds, utilized for internal control purposes, have been combined with the general fund and community development special revenue fund. These agency funds are not required to be budgeted and appropriated and therefore are not included in the Accountability and Compliance note (Note 7). Budgetary information for convention center hotel special revenue and GCHI capital projects funds are not reported because it is not included in the entity for which the “appropriated budget” is adopted. The major documents prepared are the tax budget, the certificate of estimated resources, and the appropriations resolution, all of which are prepared on the budgetary basis of accounting. The tax budget demonstrates a need for existing or increased tax rates. The certificate of estimated resources establishes a limit on the amount the County may appropriate. The appropriations resolution is Council’s authorization to spend resources and sets annual limits on expenditures plus encumbrances at the level of control selected by Council. The legal level of control is at the personnel, capital purchases and other object level within a department and fund. Any budgetary modifications at this level may only be made by resolution of County Council.

The certificate of estimated resources may be amended during the year if projected increases or decreases in revenue are identified by the Fiscal Officer. The amounts reported as the original and final budgeted amounts on the budgetary statements reflect the amounts on the original and final amended certificate of estimated resources in place when original and final appropriations were passed by Council.

The appropriation resolution is subject to amendment throughout the year with the restriction that appropriations cannot exceed estimated resources. The amounts reported as the original budgeted amounts reflect the first appropriation resolution for that fund that covered the entire year, including amounts automatically carried forward from prior years. The amounts reported as the final budgeted amounts represent the final appropriation amounts passed by Council during the year.

Net Position

Net position represents the difference between all other elements in a statement of financial position. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Net position restricted for other purposes include the judicial services, legislative and executive operations, County Bureau of Support and Care and custody of delinquent juveniles.

The County applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available.

- 45 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Operating Revenues and Expenses

Operating revenues are those revenues that are generated directly from the primary activity of the proprietary funds. For the County, these revenues are charges for services for the sanitary engineer, the County airport, the County parking garage, the County information systems, central custodial services, the maintenance garage, data processing, printing, reproduction and supplies, postage, workers’ compensation and health insurance. Operating expenses are necessary costs that have been incurred in order to provide the good or service that is the primary activity of the fund. Any revenues and expenses not meeting the definitions of operating are reported as non-operating.

Extraordinary and Special Items

Extraordinary items are transactions or events that are both unusual in nature and infrequent in occurrence. Special items are transactions or events that are within the control of the County and that are either unusual in nature or infrequent in occurrence. During 2014, the County transferred the data processing internal service fund’s operation including capital assts to governmental activities.

Contributions of Capital

Contributions of capital in proprietary fund financial statements arise from contributions of capital assets from the capital projects governmental fund and from outside contributions of resources restricted to capital acquisition and construction.

Note 3 – Change in Accounting Principle and Restatement of Prior Year Fund Balances and Net Position

Change in Accounting Principle

For 2014, the County has implemented Governmental Accounting Standard Board (GASB) Statement No. 69, “Government Combinations and Disposals of Government Operations” and Statement No. 70, “Nonexchange Financial Guarantees.”

GASB Statement No. 69 established accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this Statement, the term government combinations include a variety of transactions referred to as mergers, acquisitions, and transfers of operations. The implementation of the statement did not result in any change in the County’s financial statements.

GASB Statement No. 70 enhances the information required to be disclosed by governments that extend and receive financial guarantees as a result of nonexchange transactions. These disclosures were incorporated into the County’s 2014 financial statements; however, there was no effect on beginning net position/fund balances.

Restatement of Fund Balances and Net Position

During 2014, the County transferred the data processing department to the general fund which resulted in a restatement of intergovernmental receivable. During 2014, it was also determined that cash with fiscal agent and loans receivable were understated in the debt service fund and loans receivable was understated in the sanitary engineer enterprise fund. These restatements had the following effect on fund balance and net position as they were previously reported. - 46 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Health and County Human Board of Human Services Developmental General Services Levies Disabilities Fund Balance, December 31, 2013 $260,627,309 ($11,656,272) $35,290,846 $120,521,272 Cash with Fiscal Agent0000 Loans Receivable0000 Intergovernmental Receivable 25,207000 Adjusted Fund Balance, December 31, 2013 $260,652,516 ($11,656,272) $35,290,846 $120,521,272

Global Center for Convention Total Children Health Center Hotel Other Governmental Services Innovations Construction Governmental Funds Fund Balance, December 31, 2013 $41,300,375 $392,892,539 ($432,359) $219,166,669 $1,057,710,379 Cash with Fiscal Agent 0 0 0 545,991 545,991 Loans Receivable 0 0 0 21,422,816 21,422,816 Intergovernmental Receivable 0 0 0 0 25,207 Adjusted Fund Balance, December 31, 2013 $41,300,375 $392,892,539 ($432,359) $241,135,476 $1,079,704,393

Other Total Sanitary Enterprise Enterprise Internal Engineer Funds Funds Service Net Position, December 31, 2013 $83,218,923 $15,811,855 $99,030,778 $38,195,697 Loans Receivable 35,930 0 35,930 0 Intergovernmental Receivable 0 0 0 (25,207) Adjusted Net Position, December 31, 2013 $83,254,853 $15,811,855 $99,066,708 $38,170,490

These restatements in addition to overstated capital assets had the following effect on net position as they were previously reported.

Governmental Business-Type Activities Activities Net Position, December 31, 2013 $1,144,043,990 $99,550,445 Cash with Fiscal Agent 545,991 0 Loans Receivable 21,422,816 35,930 Capital Assets (19,402,222) 0 Adjusted Net Position, December 31, 2013 $1,146,610,575 $99,586,375

- 47 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 4 – Global Center for Health Innovation

During 2009, the County entered into an agreement with Merchandise Mart Properties, Inc. (MMPI), MMPI Cleveland Development LLC (Developer) and Cleveland MMCC LLC (Operator) for the development and operation of the Global Center for Health Innovation (Facility). Global Center for Health Innovation is an integrated facility for a permanent exhibition hall for medical devices and equipment as well as a temporary exhibition, tradeshow and conference facility and back of house functions.

During 2010 the County purchased land for the GCHI site. The County subsequently leased the purchased land to the Developer for $1 annually. This lease meets the definition of an operating lease under GASB 62 “Codification of Accounting and Financial Report Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.” At December 31, 2014, the carrying value of the land is $37,912,642.

The County entered into a project funding agreement with the Developer to provide funds, through a loan from the County, for the planning, designing, financing and constructing the Facility. The total project budget of $465,000,000 includes sources of $343,350,000 in Economic Development Revenue Bond proceeds and a contribution of non-bond proceeds from the County. Under the terms of this agreement, the County will reimburse, advance or directly pay the construction costs of the Facility. The Developer will make monthly payments of $3,000,000 through 2027.

The County entered into a lease agreement with the Developer for the Facility. This lease meets the definition of a capital lease under GASB 62. The County will make monthly lease payments of $3,333,333 through 2027. As of December 31, 2014, the book value of the capitalized leased assets was $435,249,910.

While the Facility was under construction, the County subleased the Facility to the Operator in exchange for the Operator maintaining the asset in lieu of rental payments. The Operator is to operate the Facility solely as a convention center and medical merchandise showroom, including setting the rates. This operating lease expires in 2027.

During 2013, the County determined that it is in its best interest to terminate its relationship with the MMPI Parties and to transition operation and management of the Global Center for Health Innovation and the Cleveland Convention Center to a new operator. On December 27, 2013, the County entered into a sublease and operation agreement with the Cuyahoga County Convention Facilities and Development Corporation (the Corporation) a descretely presented component unit of the County. The Corporation is to operate the Facility solely as a convention center and medical or health industry showroom/office/educational facility and any legally permitted activities that are reasonably associated therewith, including without limitation trade and consumer shows, including setting the rates. This operating lease expires in 2027.

During 2014, the Corporation assumed the loans payable and lease receivable from Merchandise Mart Properties, Inc. The Corporation paid $19,821,470 during 2014 leaving a remaining balance of $341,404,335 as of December 31, 2014.

- 48 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 5 – Convention Center Hotel

During 2014, the County entered into an agreement with the Port Authority, City of Cleveland and Hilton to construct a 600 room convention headquarters hotel to be known as the Hilton Cleveland Downtown (the Hotel). Under the terms of the agreement, the City of Cleveland facilitated a tax increment financing agreement on the project. The County issued Certificates of Participation. Please see Note 22 for more information about the Certificates of Participation.

Note 6 – Community Learning Center

On December 1, 2012, the County entered into a cooperative agreement for the use of the Community Learning Center (the Center) with the Village of Highland Hills (the Village). The initial term of this agreement commenced on the date of the agreement and terminates on December 31, 2025. The Village will have priority use of the Center. The County will have use of the Center at such times to meet the governmental and civic needs of the County. In each calendar year during the term of this Agreement, the County shall have the right of use of the Community Center as follows: (i) County Council Meeting (as the site of one regular or special meeting of the County Council), (ii) County Council District 9 Meetings (as the site of not more than four public meeting of County Council District 9), (iii) Local Permit and License Sales (for the purpose of the local sale of County permits and licenses, on not more than two calendar days), and (iv) County Community Events

The Village is and shall remain the record owner of the Center. The County will report its right to use the Center as an intangible asset.

On December 1, 2012, the County issued $1,725,000 in general obligations bonds as part of 2012A Various Purpose Bonds (County Bonds) to provide for the defeasance of the Village Bonds and, as its contribution to the cooperative venture between the County and the Village with respect to the Community Center. The Village covenants to contribute and transfer to the County in each year from 2013 through 2025 or until the County Bonds (or any bonds issued by the County to refund the County Bonds) are fully paid, whichever shall come first, an amount equal to debt charges due on the County Bonds in that calendar year.

- 49 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 7 – Accountability and Compliance

Accountability

The following funds had deficit fund balances as of December 31, 2014:

Special Revenue Funds Human Services $3,781,911 Cuyahoga Support Enforcement 1,639,419 Victim Assistance 96,791

Internal Service Funds Central Custodial Services 6,112,692 Printing 305,506 Postage 114,994

The special revenue and the capital projects funds have deficits caused by the recognition of expenditures on a modified accrual basis of accounting which are substantially greater than the expenditures recognized on a cash basis. The general fund is liable for any deficit in the funds and provides transfers when cash is required, not when accruals occur.

Management is currently analyzing the internal service operations to determine appropriate steps to alleviate the deficits.

Compliance

The County had negative cash fund balances indicating that revenue from other sources were used to pay obligations of these funds contrary to Ohio Revised Code Section 5705.10(H).

Capital Projects Fund Convention Center Hotel Construction $46,709 Internal Service Funds Central Custodial Services 4,085,332 Printing 442,476 Postage 79,237

The convention center hotel construction capital projects fund’s deficit is the result of the County financing capital projects utilizing general fund cash balance. Once the project nears completion, bonds are issued and the deficits will be eliminated.

Management has indicated that cash will be closely monitored in the special revenue and internal service funds to prevent future violations.

- 50 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The following accounts had expenditures plus encumbrances in excess of appropriations, contrary to Ohio Revised Code Section 5705.41. Appropriations Plus Prior Year Expenditures Plus Fund Encumbrances Encumbrances Excess

Human Services Social Services: Information Services: Personal Services $1,138,542 $1,160,098 ($21,556) Veteran Employment Building: Personal Services 18,490,609 18,518,952 (28,343)

Children Services Social Services: Client Support Services: Other 9,460,352 9,522,469 (62,117) Foster Care: Other 2,273,324 2,372,374 (99,050)

Cuyahoga Support Enforcement General Government - Judicial: Cuyahoga Support Enforcement Agency: Personal Services 18,924,426 18,950,169 (25,743)

Community Development Community Development: 2008 Neighborhood Stabilization: Other 36,560 37,173 (613)

Youth Services General Government - Judicial: Youth Services Subsidy 2014-15: Other 5,212,242 5,224,073 (11,831)

Other Judicial General Government - Judicial: Administration Title IV-E Juvenile Court: Personal Services 250,819 262,926 (12,107) Juvenile Justice Administration: Personal Services 46,377 47,425 (1,048)

- 51 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Appropriations Plus Prior Year Expenditures Plus Fund Encumbrances Encumbrances Excess

Other Health and Safety Health and Safety: Northeast Ohio Regional Fusion Center 2009: Other $91,820 $102,385 ($10,565)

Alcohol, Drug and Mental Health Board Grants Health and Safety: Statewide Pathways: Other 1,033,142 1,079,029 (45,887) Capital Projects Capital Outlay: Capital Project Future Debt Service: Capital Outlay 51,726,412 56,246,410 (4,519,998)

Data Processing Transfers Out 0 4,197,118 (4,197,118)

The following funds had original appropriations in excess of original estimated resources plus carryover balances as reported on the Official Certificate of Estimated Resources at December 31, 2014:

Original Estimated Resources Plus Available Original Fund Balances Appropriations Excess

Human Services $196,884,593 $243,773,403 ($46,888,810) Convention Center Hotel Constrution 11,275,981 21,109,405 (9,833,424) Cuyahoga Support Enforcement 30,370,436 33,252,732 (2,882,296) County Land Reutilization 8,454,695 8,506,898 (52,203) Community Development 11,474,418 34,214,233 (22,739,815) Victim Assistance 1,921,397 2,397,254 (475,857) Other Judicial 21,172,987 27,343,456 (6,170,469) Central Custodial Services 44,932,324 48,701,070 (3,768,746) Printing 3,490,255 5,113,443 (1,623,188) Postage 1,674,651 1,830,972 (156,321)

The following funds had final appropriations in excess of final estimated resources plus carryover balances as reported on the Official Certificate of Estimated Resources at December 31, 2014:

Final Estimated Resources Plus Fund Available Balances Final Appropriations Excess Convention Center Hotel Constrution $11,275,981 $21,109,405 ($9,833,424) County Land Reutilization 8,454,695 8,506,898 (52,203)

- 52 - Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Management has indicated that appropriations will be closely monitored and amended timely to minimize future violations.

Note 8 – Fund Balances

Fund balance is classified as nonspendable, restricted, committed, assigned and/or unassigned based primarily on the extent to which the County is bound to observe constraints imposed upon the use of the resources in the government funds. The constraints placed on fund balance for the major governmental funds and all other governmental funds are presented below:

Health and Human County Board of Human Services Developmental Children Fund Balances General Services Levy Disabilities Services Nonspendable Unclaimed Monies $10,605,525 $0 $0 $0 $0 Loans Receivable 250,000 0 0 0 0 Total Nonspendable 10,855,525 0 0 0 0 Restricted for Health and Human Services 0 0 35,980,061 0 0 Developmental Disabilities 0 0 0 115,931,713 0 Community Revitalization 0 0 0 0 0 Substance Addictions and Mental Health Services 0 0 0 0 0 Real Property Appraisal 0 0 0 0 0 Children Services 0 0 0 0 35,243,728 Judicial Services 0 0 0 0 0 Solid Waste Removal Activities 0 0 0 0 0 Health and Safety 0 0 0 0 0 Social Services 0 0 0 0 0 Infrastructure System Operations 0 0 0 0 0 Other Purposes 0 0 0 0 0 Debt Service 0 0 0 0 0 Capital Projects 0 0 0 0 0 Total Restricted 0 0 35,980,061 115,931,713 35,243,728 Assigned to Downtown Cleveland Development 11,541,444 0 0 0 0 Coroner's Lab 1,395,747 0 0 0 0 Purchases on Order 11,895,768 0 0 0 0 Total Assigned 24,832,959 0 0 0 0 Unassigned (Deficit) 231,727,208 (3,781,911) 0 0 0 Total Fund Balances (Deficit) $267,415,692 ($3,781,911) $35,980,061 $115,931,713 $35,243,728

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Global Center Convention Other for Health Center Hotel Governmental Fund Balances Innovation Construction Funds Total Nonspendable Unclaimed Monies $0 $0 $0 $10,605,525 Loans Receivable 0 0 0 250,000 Total Nonspendable 0 0 0 10,855,525 Restricted for Health and Human Services 0 0 0 35,980,061 Developmental Disabilities 0 0 0 115,931,713 Community Revitalization 0 0 61,264,521 61,264,521 Substance Addictions and Mental Health Services 0 13,186,886 13,186,886 Real Property Appraisal 0 0 23,257,582 23,257,582 Children Services 0 0 0 35,243,728 Judicial Services 0 0 29,321,542 29,321,542 Solid Waste Removal Activities 0 0 3,570,157 3,570,157 Health and Safety 0 0 11,592,377 11,592,377 Social Services 0 0 2,482,816 2,482,816 Infrastructure System Operations 0 0 52,943,907 52,943,907 Other Purposes 0 0 9,016,027 9,016,027 Debt Service 0 0 71,865,953 71,865,953 Capital Projects 370,873,252 150,780,606 74,515,007 596,168,865 Total Restricted 370,873,252 150,780,606 353,016,775 1,061,826,135 Assigned to Downtown Cleveland Development 0 0 0 11,541,444 Coroner's Lab 0 0 0 1,395,747 Purchases on Order 0 0 0 11,895,768 Total Assigned 0 0 0 24,832,959 Unassigned (Deficit) 0 0 (1,736,210) 226,209,087 Total Fund Balances (Deficit) $370,873,252 $150,780,606 $351,280,565 $1,323,723,706

Note 9 – Budgetary Basis of Accounting

While the County’s reporting financial position, results of operations and changes in fund balance on the basis of generally accepted accounting principles (GAAP), the budgetary basis as provided by law is based upon accounting for certain transactions on a basis of cash receipts, disbursements and encumbrances. The Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual are presented in the basic financial statements for the general fund and major special revenue funds. The major differences between the budget basis and the GAAP basis are:

1. Revenues are recorded when received in cash (budget) as opposed to when susceptible to accrual (GAAP).

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

2. Expenditures are recorded when paid in cash (budget) as opposed to when the liability is incurred (GAAP).

3. Encumbrances are treated as expenditures for all funds (budget) rather than restricted, committed, or assigned fund balance (GAAP).

4. Unrecorded cash represents amounts received but not reported by the County on the operating statements (budget), but which is reported on the GAAP basis operating statements.

5. Investments are reported at cost (budget) rather than at fair value (GAAP).

The following table summarizes the adjustments necessary to reconcile the GAAP basis statements to the budgetary basis statements for the general and major special revenue funds:

Net Change in Fund Balances Health and County Board Human Human of Developmental Children General Services Services Levy Disabilities Services GAAP Basis $6,763,176 $7,874,361 $689,215 ($4,589,559) ($6,056,647) Net Adjustment for Revenue Accruals (6,099,005) (807,230) 18,401 (1,249,311) 6,772,993 Beginning Fair Value Adjustment for Investments 1,882,566 0 0 0 0 Ending Fair Value Adjustment for Investments (755,093) 0 0 0 0 Beginning Unrecorded Cash 159,300 0 0 0 0 Ending Unrecorded Cash 13,693 154,944 (1,162) 0 0 Expenditure Accrual 5,870,008 545,240 556,833 555,825 344,141 Encumbrances (22,907,161) (40,234,078) (8,143,732) (5,786,197) (20,017,012)

Budget Basis ($15,072,516) ($32,466,763) ($6,880,445) ($11,069,242) ($18,956,525)

Note 10 – Contingent Liabilities

Grants

The County has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies or their designee. These audits could lead to a request for reimbursement to the grantor agency for expenditures disallowed under terms of the grant. Based on prior experience, the County Council believe such disallowances, if any, will be immaterial.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Litigation

The County is party to various legal proceedings seeking damages or injunctive or other relief and generally incidental to its operations. These proceedings are unrelated to any outstanding County debt or the security for any outstanding County debt. The ultimate disposition of these proceedings is not now determinable, but will not, in the opinion of the County Prosecuting Attorney, have a material adverse effect on any outstanding County debt or the security for any outstanding County debt or the operating revenues of the County.

Since 2008, seventeen former County officials and employees have been charged in United States District Court with violations of federal law, including bribery. The charges have stemmed from an FBI investigation into public corruption within the County. Of those charged, twelve, including the former County Auditor, have pleaded guilty. In addition, five (Greco, Dimora, Gabor, Judge Terry, Judge McCafferty) former government officials, including a former County Commissioner and one former employee have been convicted of public corruption charges after trials. Two of the convictions (Dimora and Gabor) were affirmed by the United States Court of Appeals for the Sixth Circuit on April 30, 2014. Finally, two former County employees have been charged and have pleaded guilty in the State criminal justice system. One former County employee has pleaded not guilty and is awaiting trial.

In connection with the foregoing charges, the County received a total of $4.36 million in restitution payments through July 7, 2015 (not including forfeiture amounts) made directly to the County by individuals convicted in such cases.

In 2009, the County engaged independent counsel to investigate the effect of the investigation and the criminal charges on the County’s financial position. That independent counsel issued an initial report in 2009 and an updated report in 2011. Based on the findings of independent counsel set forth in those reports and a review by representatives of the County Prosecutors office, as of the date of this report, the County does not believe that the investigation, or any criminal charges or convictions resulting from the investigation, will have a material effect on the future financial position of the County

Note 11 – Deposits and Investments

Monies held by the County are classified by State Statute into two categories, active and inactive. Active monies are public commercial accounts payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts, or in money market deposit accounts.

Protection of the County’s deposits is provided by the Federal Deposit Insurance Corporation, by eligible securities pledged by the financial institution as security for repayment, by surety company bonds deposited with the treasurer by the financial institution or by a single collateral pool established by the financial institution to secure the repayment of all public monies deposited with the institution.

Monies held by the County, which are not considered active, are classified as inactive. Inactive monies may be deposited or invested in the following securities provided a written investment policy has been filed with the Ohio Auditor of State:

1. United States Treasury Bills, Notes, Bonds, or any other obligation or security issued by the United States Treasury or any other obligation guaranteed as to principal and interest by the United States; or any book entry, zero-coupon United States treasury security that is a direct obligation of the United States; - 56 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

2. Bonds, notes, debentures, or any other obligations or securities issued by any federal government agency or instrumentality, including but not limited to, Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, Government National Mortgage Association, and Student Loan Marketing Association. All federal agency securities shall be direct issuances of federal government agencies or instrumentalities;

3. Written repurchase agreements in securities listed above provided that the market value of the securities subject to the repurchase agreement must exceed the principal value of the agreement by at least two percent and be marked to market daily, and that the term of the agreement must not exceed thirty days;

4. Bonds and other obligations of the State of Ohio or its political subdivisions, provided that such political subdivisions are located wholly or partly within the County;

5. Time certificates of deposit or savings or deposit accounts, including, but not limited to, passbook accounts;

6. No-load money market mutual funds consisting exclusively of obligations described in (1) or (2) above and repurchase agreements secured by such obligations, provided that these investments are made only through eligible institutions;

7. The State Treasurer's investment pool (STAR Ohio);

8. Securities lending agreements in which the County lends securities and the eligible institution agrees to simultaneously exchange similar securities or cash, equal value for equal value;

9. Up to twenty-five percent of the County’s average portfolio in either of the following:

a. Commercial paper notes in entities incorporated under the laws of Ohio, or any other State, that have assets exceeding five hundred million dollars, which are rated in the highest classification established by two nationally recognized standard rating services, which do not exceed ten percent of the value of the outstanding commercial paper of the issuing corporation and which mature within 270 days after purchase;

b. Banker’s acceptances eligible for purchase by the Federal Reserve System and which mature within 180 days after purchase;

10. Fifteen percent of the County’s average portfolio in notes issued by U.S. corporations or by depository institutions that are doing business under authority granted by the U.S. provided that the notes are rated in the second highest or higher category by at least two nationally recognized standard rating services at the time of purchase and the notes mature within two years from the date of purchase;

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

11. No-load money market mutual fund rated in the highest category at the time of purchase by at least one nationally recognized standard rating service consisting exclusively of obligations guaranteed by the United States, securities issued by a federal government agency of instrumentality, and/or highly rate commercial paper;

12. One percent of the County’s average portfolio in debt interest rated at the time of purchase in the three categories by two nationally recognized standard rating services and issued by foreign nations diplomatically recognized by the United States government.

Reverse repurchase agreements, investments in derivatives, and investments in stripped principal or interest obligations that are not issued or guaranteed by the United States are prohibited. The issuance of taxable notes for the purpose of arbitrage, the use of leverage and short selling are also prohibited. Other than corporate notes, commercial paper, and bankers acceptances, an investment must mature within five years from the date of settlement unless matched to a specific obligation or debt of the County. Investments must be purchased with the expectation that they will be held to maturity. Investments may only be made through specified dealers and institutions. Payments for investments may be made only upon delivery of the securities representing the investments to the treasurer or qualified trustee or, if the securities are not represented by a certificate, upon receipt of confirmation of transfer from the custodian.

Deposits

Custodial credit risk for deposits is the risk that in the event of bank failure, the County will not be able to recover deposits or collateral securities that are in the possession of an outside party. At year-end, $124,263,813 of the County’s bank balance of $125,513,813 was uninsured and uncollateralized. Although the securities were held by the pledging financial institutions' trust department in the County's name and all State statutory requirements for the deposit of money had been followed, non-compliance with federal requirements could potentially subject the County to a successful claim by the FDIC.

The County has no deposit policy for custodial risk beyond the requirements of State statute. Ohio law requires that deposits be either insured or be protected by eligible securities pledged to and deposited either with the County or a qualified trustee by the financial institution as security for repayment, or by a collateral pool of eligible securities deposited with a qualified trustee and pledged to secure the repayment of all public monies deposited in the financial institution whose market value at all times shall be at least one hundred five percent of the deposits being secured.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Investments

Investments are reported at fair value. As of December 31, 2014, the County had the following investments:

Moody Percent of Total Fair Value Maturity Rating Investments Federal Farm Credit Bank Bonds $40,024,200 Less than One Year Aaa N/A Federal Farm Credit Bank Bonds 30,010,100 More than One Year Aaa N/A Federal Home Loan Bank Bonds 30,009,900 Less than One Year Aaa N/A Federal Home Loan Bank Bonds 29,921,300 More than One Year Aaa N/A Federal Home Loan Bank Bonds 9,994,400 More than Two Years Aaa N/A Federal Home Loan Mortgage Corporation Bank Bonds 70,077,500 Less than One Year Aaa 7.54% Federal Home Loan Mortgage Corporation Bank Bonds 20,040,800 More than One Year Aaa N/A Federal Home Loan Mortgage Corporation Bank Bonds 70,132,900 More than Two Years Aaa 7.54% Federal Home Loan Mortgage Corporation Bank Bonds 9,879,500 More than Three Years Aaa N/A Federal National Mortgage Association Bonds 30,013,200 Less than One Year Aaa N/A Federal National Mortgage Association Bonds 20,057,100 More than One Year Aaa N/A Federal National Mortgage Association Bonds 49,891,900 More than Two Years Aaa 5.37% Federal National Mortgage Association Bonds 29,668,800 More than Three Years Aaa N/A State of Israel Notes 2,000,000 More than One Year A1 N/A State of Israel Notes 3,000,000 More than Two Years A1 N/A Treasury Coupon Securities 70,124,200 More than One Year Aaa 7.54% Treasury Coupon Securities 39,716,400 More than Two Years Aaa N/A STAR Ohio 375,054,819 Average 50.1 Days N/A N/A Total Portfolio $929,617,019

Interest Rate Risk As a means of limiting its exposure to fair value losses caused by rising interest rates, the County’s investment policy requires that operating funds be invested primarily in short-term investments maturing within five years from the date of purchase and that the County’s investment portfolio be structured so that securities mature to meet cash requirements for ongoing operations and/or long-term debt payments. The stated intent of the policy is to avoid the need to sell securities prior to maturity. The purchase of any security with a maturity of greater than 5 years must be approved in advance by the Investment Advisory Committee.

Credit Risk The Moody’s ratings of the County’s investments are listed in the table above. STAR Ohio carries a rating of AAAm by Standard & Poor’s. Ohio law requires that STAR Ohio maintain the highest rating provided by at least one nationally recognized standard rating service. The County investment policy does not address credit risk.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Concentration of Credit Risk Credit risk is defined as having five percent or more of the County’s investments invested in the securities of a single issuer. The County’s policy specifies that the portfolio be structured to diversify investments to reduce the risk of loss resulting from over-concentration of assets in a specific maturity, a specific issuer or a specific type of investment. Each investment type is limited to a maximum percentage of the total average portfolio.

Foreign Currency Risk Foreign Currency Risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The County’s investment policy states foreign notes must be rated at the time of purchase in one of the three highest categories by two nationally recognized standard rating services. All interest and principal shall be denominated and payable in United States dollars. The notes must be backed by the full faith and credit of the foreign nation and there can be no prior history of default. The maturity of foreign notes cannot exceed five years from purchase and in total, they cannot exceed one percent of the County’s total average portfolio. The County’s exposure to foreign currency risk is as follows:

Fair Value Investment Currency Maturity (in US dollars) State of Israel Notes Israeli New Sheqel 6/1/2016 $2,000,000 State of Israel Notes Israeli New Sheqel 2/1/2017 $3,000,000

Note 12 – Property Taxes

Property taxes include amounts levied against all real and public utility property located in the County. Property tax revenue received during 2014 for real and public utility property taxes represents collections of 2013 taxes.

2014 real property taxes are levied after October 1, 2014, on the assessed value as of January 1, 2014, the lien date. Assessed values are established by State law at 35 percent of appraised market value. 2014 real property taxes are collected in and intended to finance 2015.

Real property taxes are payable annually or semi-annually. If paid annually, payment is due December 31; if paid semi-annually, the first payment is due December 31, with the remainder payable by June 20. Under certain circumstances, State statutes permits later payment dates to be established.

Public utility tangible personal property currently is assessed at varying percentages of true value; public utility real property is assessed at 35 percent of true value. 2014 public utility property taxes which became a lien December 31, 2013, are levied after October 1, 2014, and are collected in 2015 with real property taxes.

The full tax rate for all County operations for the year ended December 31, 2014, was $14.05 per $1,000 of assessed value. The assessed values of real and public utility tangible property upon which 2014 property tax receipts were based are as follows:

Real Property $26,853,970,910 Public Utility Personal Property 840,870,540 Total Assessed Value $27,694,841,450

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The County Fiscal Officer collects property tax on behalf of all taxing districts in the County. The County Fiscal Officer periodically remits to the taxing districts their portions of the taxes collected. The collection and distribution of taxes for all subdivisions within the County, excluding the County itself, is accounted for through agency funds. The amount of the County’s tax collections is accounted for within the applicable funds. Property taxes receivable represents real and public utility taxes and outstanding delinquencies which are measurable as of December 31, 2014, and for which there is an enforceable legal claim. In governmental funds, the portion of the receivable not levied to finance 2014 is offset to deferred inflows of resources – property taxes. On the accrual basis, collectible delinquent property taxes have been recorded as a receivable and revenue while on the modified accrual basis the revenue has been reported as deferred inflows of resources – unavailable revenue.

Note 13 – Receivables

Receivables at December 31, 2014, consisted of property taxes, accounts (billings for user charged services, including unbilled utility services), special assessments, accrued interest, loans (community development block grant monies loaned to local businesses), interfund, sales tax, and intergovernmental receivables arising from grants and entitlements. All receivables are considered fully collectible, including accounts receivable which, if delinquent may be certified and collected as a special assessment, subject to foreclosure for nonpayment. All receivables except for loans, debt service intergovernmental receivable, and delinquent property taxes are expected to be collected within one year.

The County and Gateway Economic Development Corporation of Greater Cleveland (Gateway), entered into a revolving loan agreement in 1992. As part of this agreement, the County issued taxable Economic Development Revenue Bonds of $75 million on September 24, 1992, and $45 million on February 1, 1994. In February 2004, the County refinanced the 1992 variable rate Gateway Economic Development Bonds. In 2010, the County refinanced the 1994 Gateway Economic Development Bonds and the variable rate 2004B Gateway Arena Project Series Refunding Bonds. Loans expected to be collected in more than one year amount to $20,219,566 in the debt service fund.

During 1997, the County entered into a project funding agreement with the City of Cleveland (the City) and the Gateway Economic Development Corporation of Greater Cleveland (Gateway), to provide funds, through a loan from the Ohio Department of Development, for the construction of a sports facility. The City agreed to provide to the County a payment equal to 50 percent of the annual loan payment. Loans expected to be collected in more than one year amount to $250,000 in the general fund. At December 31, 2014, there were no delinquent loans.

The loans receivable at December 31, 2014, reported in the community development special revenue fund, represent revolving loans made to private enterprises under the United States Department of Housing and Urban Development Community Development Block Grant Program, Section 17 and Home Affordability Act programs. The notes are due on various dates with a large portion not due until the related property is sold or the debtor becomes deceased. Generally the loans are collateralized by the property that is improved with the proceeds of the notes; however, the County’s security interest is usually subordinate to that of another creditor. Many notes are non-interest bearing while other notes bear interest at various rates. Loans expected to be collected in more than one year amount to $33,518,510 in the community development special revenue fund.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The County entered into a project funding agreement with Cuyahoga County Convention Facilities Corporation (the Corporation) to provide funds, through a loan from the County, for the planning, designing, financing and constructing the Global Center for Health Innovation facility. As of December 31, 2014, the Corporation has drawn down the full balance of available funds. As of December 31, 2014, the outstanding balance was $341,404,335. Loans expected to be collected in more than one year amount to $321,596,617 in the GCHI capital projects fund. At December 31, 2014, there were no delinquent loans. See Note 4 for additional information.

A summary of the governmental loans receivable follows and includes the allowances for uncollectibles:

Loans Allowances for Net Loans Loan Receivable Uncollectibles Receivable City of Cleveland Gateway Loan $500,000 $0 $500,000 The Corporation Loan 341,404,335 0 341,404,335 Community Development Loans 38,364,743 422,411 37,942,332 Gateway Loans 193,216,617 172,395,426 20,821,191 Total $573,485,695 $172,817,837 $400,667,858

The County entered into a project funding agreement with the MetroHealth System to provide funds, through a loan from the Ohio Public Works Commission, for the Metrohealth Sanitary Sewer Replacement project. The Metrohealth System agreed to provide to the County a payment equal to the annual loan payment. Loans expected to be collected in more than one year amount to $19,598.

The County entered into a cooperative agreement with the Village of Highland Hills (the Village) to provide funds, through a loan from the County, for the defeasance of Village bonds. The Village agreed to repay the County in each year from 2013 through 2025 or until the County Bonds (or any bonds issued by the County to refund the County Bonds) are fully paid, whichever shall come first, an amount equal to debt charges due on the County Bonds in that calendar year. Intergovernmental receivables expected to be collected in more than one year amount to $1,355,000 in the debt service fund. At December 31, 2014, there were no delinquent receivables. See Note 6 for additional information.

Property taxes, although ultimately collectible, include some portion of delinquencies that will not be collected within one year.

A summary of the principal items of intergovernmental receivables follows:

Amount General Fund Local Government and Revenue Assistance $8,528,426 Miscellaneous 5,572,408 Property Tax Rollbacks and Exemptions 878,563 Total General Fund $14,979,397

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Amount Special Revenue Funds Human Services $15,388,099 Health and Human Services Levy 2,734,440 County Board of Developmental Disabilities 9,874,745 Children Sevices 1,838,239 Motor Vehicle Gas Tax 10,283,091 Alcohol, Drug and Mental Health Board 2,580,772 Cuyahoga Support Enforcement 217,010 Community Development 1,998,383 Other Community Development 43,385 Treatment Alternatives for Safer Communities 157,681 Victim Assistance 87,249 Other Judicial 5,113,282 Other Health and Safety 249,099 Total Special Revenue Funds 50,565,475 Debt Service Fund Debt Service 3,702,650 Capital Projects Funds Global Center for Health Innovation 235,117 Capital Projects 134,968 Road Capital Projects 1,594,440 Total Capital Projects Funds 1,964,525 Total Governmental Activities $71,212,047 Enterprise Funds Sanitary Engineer $460,590 Cuyahoga County Information Systems 213,574 Total Enterprise Funds $674,164 Internal Service Fund Central Custodial Services $1,749,912

Receivables and payables are recorded to the extent that the amounts are determined to be material and substantiated not only by supporting documentation, but also by a reasonable, systematic method of determining their existence, completeness, valuation, and in the case of receivables, collectability.

Using this criteria, the County has elected not to record child support arrearages within the special revenue and agency fund types. These amounts, while potentially significant, are not considered measurable, and because collections are often significantly in arrears, the County is unable to determine a reasonable value.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 14 – Capital Assets

Capital asset activity for the year ended December 31, 2014, was as follows:

Balance Balance 12/31/13 Additions Reductions 12/31/14 Business-Type Activities: Nondepreciable Capital Assets Land $6,504,595 $0 $0 $6,504,595 Depreciable Capital Assets Land Improvements 14,449,116 1,139,440 0 15,588,556 Utility Plant 61,804,755 0 0 61,804,755 Buildings, Structures and Improvements 17,312,647 1,193,230 0 18,505,877 Furniture, Fixtures and Equipment 1,837,368 1,380,009 (185,488) 3,031,889 Vehicles 7,205,929 264,733 0 7,470,662 Total Depreciable Capital Assets 102,609,815 3,977,412 (185,488) 106,401,739 Less Accumulated Depreciation Land Improvements (10,378,966) (171,599) 0 (10,550,565) Utility Plant (33,887,000) (1,227,285) 0 (35,114,285) Buildings, Structures and Improvements (14,624,161) (727,145) 0 (15,351,306) Furniture, Fixtures and Equipment (1,445,595) (134,454) 182,664 (1,397,385) Vehicles (6,291,480) (440,996) 0 (6,732,476) Total Accumulated Depreciation (66,627,202) (2,701,479) 182,664 (69,146,017) Total Depreciable Capital Assets, Net 35,982,613 1,275,933 (2,824) 37,255,722 Business-Type Activities Capital Assets, Net $42,487,208 $1,275,933 ($2,824) $43,760,317

Depreciation expense was charged to business-type activities as follows:

Sanitary Engineer $2,045,817 County Airport 193,328 County Parking Garage 459,255 Cuyahoga County Information Systems 3,079 Total $2,701,479

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Balance Balance 12/31/13 Additions Reductions 12/31/14 Government Activities: Nondepreciable Capital Assets Land $86,246,279 $7,911,735 ($6,273,000) $87,885,014 Construction in Progress 27,079,138 111,111,005 (34,896,278) 103,293,865 Total Nondepreciable Capital Assets 113,325,417 119,022,740 (41,169,278) 191,178,879 Depreciable Capital Assets Land Improvements 11,346,019 0 0 11,346,019 Buildings, Structures and Improvements 1,215,082,612 79,228,160 (14,811,099) 1,279,499,673 Furniture, Fixtures and Equipment 70,552,864 719,922 (816,028) 70,456,758 Vehicles 13,107,454 352,393 0 13,459,847 Right to Use Community Center 1,975,312 0 0 1,975,312 Infrastructure 183,585,109 7,926,797 (27,090) 191,484,816 Total Depreciable Capital Assets 1,495,649,370 88,227,272 (15,654,217) 1,568,222,425 Less Accumulated Depreciation and Amortization Land Improvements (5,613,970) (537,243) 0 (6,151,213) Buildings, Structures and Improvements (375,900,119) (33,353,999) 14,745,482 (394,508,636) Furniture, Fixtures and Equipment (46,965,804) (4,457,396) 808,796 (50,614,404) Vehicles (11,189,069) (823,128) 0 (12,012,197) Right to Use Community Center (163,561) (150,979) 0 (314,540) Infrastructure (99,021,797) (5,586,813) 0 (104,608,610) Total Accumulated Depreciation and Amortization (538,854,320) (44,909,558) 15,554,278 (568,209,600) Total Depreciable Capital Assets, Net 956,795,050 43,317,714 (99,939) 1,000,012,825 Governmental Activities Capital Assets, Net $1,070,120,467 $162,340,454 ($41,269,217) $1,191,191,704

Depreciation and amortization expense was charged to governmental activities as follows:

General Government: Legislative and Executive $17,420,202 Judicial 15,752,913 Public Works 5,574,075 Health and Safety 368,612 Social Services 5,773,281 Community Development 20,475 Total $44,909,558

During 2012, the County issued general obligation bonds in order to provide Highland Hills Village the proceeds to refinance outstanding Village debt. The Village in turn agreed to pay the County the principal and interest on the County's bonds and provide the use of the Village's Community Center for County uses. The value of the intangible asset is the amount that was provided to the Village to be placed in escrow.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The amortization schedule is as follows:

Governmental Activities 2015 $150,979 2016 150,979 2017 150,979 2018 150,979 2019 150,979 2020-2024 754,897 2025 150,980 $1,660,772

For additional information see Note 6.

Note 15 – Permissive Sales and Use Tax

In 1969, the County Commissioners by resolution imposed a one-half percent tax on all retail sales made in the County and on the storage, use, or consumption in the County of tangible personal property, including automobiles, not subject to the sales tax for a continuing period of time. In 1987, the County Commissioners by resolution imposed an additional one-half percent tax for a continuing period of time. In 2007, the County Commissioners by resolution imposed an additional one-quarter percent tax for twenty years.

Vendor collections of the tax are paid to the State Treasurer by the twenty-third day of the month following collection. The State Tax Commissioner certifies to the State Auditor the amount of the tax to be returned to the County. The State Tax Commissioner's certification must be made within forty-five days after the end of the month. The Office of Budget and Management then has five days in which to draw a warrant payable to the County.

Proceeds of the tax are credited to the general fund. A receivable is recognized at year-end for amounts that will be received from sales which occurred during the prior year. On a full accrual basis, the full amount of the receivable is recognized as revenue. On a modified accrual basis, the amount of the receivable that will be received outside of the available period is unavailable revenue.

Note 16 – Related Party Transactions

During 2014, Cuyahoga County provided $40,024,000 for the general operations of The MetroHealth System, a discretely presented component unit of Cuyahoga County.

During 2014, the County paid $36,000,000 in capital lease payment and $9,377,137 as required by various lease agreements to the Cuyahoga County Convention Facilities Development Corporation, a discretely presented component unit of Cuyahoga County.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 17 – Interfund Transfers and Balances

Interfund Transfers

Interfund transfers for the year ended December 31, 2014, consisted of the following:

Transfers From Convention Other Center Hotel Governmental Transfers To General Construction Funds General $0 $0 $446,801 Human Services 0 0 201,000 Health and Human Services Levy 1,000,000 0 0 Global Center for Health Innovation 2,339,416 0 0 Other Governmental Funds 58,642,974 4,750,000 21,765,051 Other Enterprise Funds 314,523 0 0 Internal Service Funds 2,619,650 0 0 Total Transfers $64,916,563 $4,750,000 $22,412,852

Transfers From Internal Other Service Enterprise Transfers To Funds Funds Totals General $4,197,118 $420,000 $5,063,919 Human Services 0 0 201,000 Health and Human Services Levy 0 0 1,000,000 Global Center for Health Innovation 0 0 2,339,416 Other Governmental Funds 0 646,723 85,804,748 Other Enterprise Funds 0 0 314,523 Internal Service Funds 0 0 2,619,650 Total Transfers $4,197,118 $1,066,723 $97,343,256

The general fund transfer to the Global Center for Health Innovation was made to account for the County’s portion of construction costs. The transfer from the internal service fund was made to close the data processing internal service fund. The remaining transfers were made to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them; to move unrestricted balances to finance various programs accounted for in other funds in accordance with budgetary authorizations; to provide additional resources for current operations or debt service; to segregate money for anticipated capital projects; and to return money to the fund from which it was originally provided once a project is completed.

The entity wide statements reflect additional transfers between governmental activities and business type activities for the transfers of capital assets ($2,332,670) and the transfer related to debt ($3,040,000).

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Interfund Balances

Interfund balances at December 31, 2014, consisted of the following amounts and represent charges for services or reimbursable expenses. These remaining balances resulted from the time lag between the dates that (1) interfund goods or services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting records, and (3) payments between funds are made. All are expected to be paid within one year.

Interfund Receivable Global Center Human for Health Interfund Payable General Services Innovation General $0$0$0 Human Services 0 0 0 Health and Human Services Levy 0 0 0 County Board of Developmental Disabilities 0 0 0 Children Services 0 5,006,996 0 Convention Center Hotel Construction 46,709 0 0 Other Governmental Funds 0 0 762,500 Sanitary Engineer 0 0 0 Other Enterprise Funds 0 0 0 Internal Service Funds 4,607,045 0 0 Total $4,653,754 $5,006,996 $762,500

Interfund Receivable Other Internal Enterprise Service Interfund Payable Funds Funds Totals General $102,182 $2,453,872 $2,556,054 Human Services 0 1,065,357 1,065,357 Health and Human Services Levy 0 111,045 111,045 County Board of Developmental Disabilities 0 592,807 592,807 Children Services 0 0 5,006,996 Convention Center Hotel Construction 0 0 46,709 Other Governmental Funds 0 484,373 1,246,873 Sanitary Engineer 0 254,087 254,087 Other Enterprise Funds 0 38,057 38,057 Internal Service Funds 0 763,295 5,370,340 Total $102,182 $5,762,893 $16,288,325

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 18 – Employee Retirement Systems

Ohio Public Employees Retirement System (OPERS)

Plan Description – The County participates in the Ohio Public Employees Retirement System (OPERS). OPERS administers three separate pension plans. The Traditional Pension Plan is a cost-sharing, multiple employer defined benefit pension plan. The Member-Directed Plan is a defined contribution plan in which the member invests both member and employer contributions (employer contributions vest over five years at 20 percent per year). Under the Member-Directed Plan, members accumulate retirement assets equal to the value of the member and vested employer contributions plus any investment earnings. The Combined Plan is a cost-sharing, multiple-employer defined benefit pension plan. Under the Combined Plan, OPERS invests employer contributions to provide a formula retirement benefit similar in nature to, but less than, the Traditional Pension Plan benefit. Member contributions, the investment of which is self-directed by the members, accumulate retirement assets in a manner similar to the Member-Directed Plan.

OPERS provides retirement, disability, survivor and death benefits, and annual cost-of-living adjustments to members of the Traditional Pension and Combined plans. Members of the Member-Directed Plan do not qualify for ancillary benefits. Authority to establish and amend benefits is provided by Chapter 145 of the Ohio Revised Code. OPERS issues a stand-alone financial report. Interested parties may obtain a copy by visiting https://www.opers.org/investments/cafr.shtml, by writing to the Ohio Public Employees Retirement System, 277 East Town Street, Columbus, Ohio 43215-4642, or by calling 614-222-5601 or 800-222-7377.

Funding Policy – The Ohio Revised Code provides statutory authority for member and employer contributions and currently limits the employer contribution to a rate not to exceed 14 percent of covered payroll for state and local employer units and 18.1 percent of covered payroll for public safety and law enforcement employer units. Member contribution rates, as set in the Ohio Revised Code, are not to exceed 10 percent of covered payroll for members in State and local divisions. The Ohio Revised Code authorizes OPERS to calculate employee contributions rates for public safety employees and limits the law enforcement rate to the public safety rate plus an additional percentage not to exceed 2 percent. For the year ended December 31, 2014, members in State and local divisions contributed 10 percent of covered payroll while public safety and law enforcement members contributed 12 percent and 13 percent, respectively. While members in the state and local divisions may participate in all three plans, public safety and law enforcement classifications exist only within the Traditional Pension Plan. For 2014, member and employer contribution rates were consistent across all three plans.

The County’s 2014 contribution rate was 14 percent, except for those plan members in public safety or law enforcement, for whom the County’s contribution was 18.1 percent of covered payroll. The portion of employer contributions used to fund pension benefits is net of post-employment health care benefits. For 2014, the portion of the employer contribution allocated to health care was 2 percent for members in the Traditional Plan and the Combined Plan. Effective January 1, 2015, the portion of the employer contribution allocated to health care remains at 2 percent. Employer contribution rates are actuarially determined.

The County’s required contributions for pension obligations to the Traditional Pension and Combined Plans for the years ended December 31, 2014, 2013 and 2012 were $44,928,275, $47,706,684 and $35,615,072, respectively. For 2014, 95.05 percent has been contributed with the balance being reported as an intergovernmental payable. The full amount has been contributed for 2013 and 2012. Contributions to the Member-Directed Plan for 2014 were $1,136,927 made by the County and $812,093 made by plan members.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

State Teachers Retirement System (STRS)

Plan Description – The County participates in the State Teachers Retirement System of Ohio (STRS Ohio), a cost-sharing multiple-employer public employee retirement system. STRS Ohio provides retirement and disability benefits to members and death and survivor benefits to beneficiaries. STRS Ohio issues a standalone financial report that can be obtained by writing to STRS Ohio, 275 E. Broad St., Columbus, OH 43215-3771, by calling 888-227-7877, or by visiting the STRS Ohio web site at www.strsoh.org.

New members have a choice of three retirement plans: a Defined Benefit (DB) Plan, a Defined Contribution (DC) Plan and a Combined Plan. The DB plan offers an annual retirement allowance based on final average salary multiplied by a percentage that varies based on years of service, or an allowance based on a member’s lifetime contributions and earned interest matched by STRS Ohio funds divided by an actuarially determined annuity factor. The DC Plan allows members to place all their member contributions and employer contributions equal to 9.5 percent of earned compensation into an investment account. Investment decisions are made by the member. A member is eligible to receive a retirement benefit at age 50 and termination of employment. The member may elect to receive a lifetime monthly annuity or a lump sum withdrawal. The Combined Plan offers features of both the DB Plan and the DC Plan. In the Combined Plan, member contributions are invested by the member, and employer contributions are used to fund the defined benefit payment at a reduced level from the regular DB Plan. The DB portion of the Combined Plan payment is payable to a member on or after age 60; the DC portion of the account may be taken as a lump sum payment or converted to a lifetime monthly annuity at age 50. Benefits are established by Ohio Revised Code Chapter 3307.

A DB or Combined Plan member with five or more years of credited service who becomes disabled may qualify for a disability benefit. Eligible spouses and dependents of these active members who die before retirement may qualify for survivor benefits. Members in the DC Plan who become disabled are entitled only to their account balance. If a member of the DC Plan dies before retirement benefits begin, the member’s designated beneficiary is entitled to receive the member’s account balance.

Funding Policy – Chapter 3307 of the Ohio Revised Code provides statutory authority for member and employer contributions. Contribution rates are established by the State Teachers Retirement Board, upon the recommendation of its consulting actuary, not to exceed statutory maximum rates of 11 percent for members and 14 percent for employers. The statutory maximum employee contribution rate was increased one percent July 1, 2013, and will be increased one percent each year until it reaches 14 percent on July 1, 2016. For the fiscal year ended December 31, 2014, plan members were required to contribute 11 percent of their annual covered salary from January 1, 2014 until June 30, 2014, and 12 percent from July 1, 2014 until December 31, 2014. The County was required to contribute 14 percent, 13 percent was the portion used to fund pension obligations from January 1, 2014 until June 30, 2014 and 14 percent from July 1, 2014 until December 31, 2014.

The County’s required contributions to STRS Ohio for the years ended December 31, 2014, 2013 and 2012 were $828,045, $1,270,358 and $1,227,072, respectively. The full amount has been contributed for 2014, 2013 and 2012. Contributions made to STRS Ohio for the DC and the defined contribution portion of the Combined Plans for 2014 were $54,430 made by the County and $42,767 made by the plan members.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 19 – Postemployment Benefits

Ohio Public Employees Retirement System (OPERS)

Plan Description – Ohio Public Employees Retirement System (OPERS) administers three separate pension plans: the Traditional Pension Plan, a cost-sharing, multiple-employer defined benefit pension plan; the Member-Directed Plan, a defined contribution plan; and the Combined Plan, a cost-sharing, multiple- employer defined benefit pension plan that has elements of both a defined benefit and defined contribution plan.

OPERS maintains a cost-sharing multiple-employer defined benefit post-employment health care plan for qualifying members of both the Traditional Pension and the Combined Plans. Members of the Member- Directed Plan do not qualify for ancillary benefits, including post-employment health care coverage. The plan includes a medical plan, prescription drug program and Medicare Part B premium reimbursement.

In order to qualify for post-employment health care coverage, age-and-service retirees under the Traditional Pension and Combined Plans must have 10 or more years of qualifying Ohio service credit. Health care coverage for disability benefit recipients and qualified survivor benefit recipients is available. The Ohio Revised Code permits, but does not mandate, OPERS to provide health care benefits to its eligible members and beneficiaries. Authority to establish and amend benefits is provided in Chapter 145 of the Ohio Revised Code.

Disclosures for the health care plan are presented separately in the OPERS financial report which may be obtained by visiting https://www.opers.org/investments/cafr.shtml, by writing to the Ohio Public Employees Retirement System, 277 East Town Street, Columbus, Ohio 43215-4642, or by calling 614-222-5601 or 800- 222-7377.

Funding Policy – The post-employment health care plan was established under, and is administrated in accordance with, Internal Revenue Code 401(h). The Ohio Revised Code provides the statutory authority requiring public employers to fund post-retirement health care through contributions to OPERS. A portion of each employer’s contribution to OPERS is set aside for the funding of post-employment health care.

Employer contribution rates are expressed as a percentage of the covered payroll of active members. In 2014, state and local employers contributed 14 percent of covered payroll, and public safety and law enforcement employers contributed 18.1 percent. These are the maximum employer contribution rates permitted by the Ohio Revised Code.

Each year, the OPERS Retirement Board determines the portion of the employer contribution rate that will be set aside for funding post-employment health care benefits. For 2014, the portion of employer contributions allocated to health care for members in the Traditional Plan and the Combined Plan was 2 percent. Effective January 1, 2015, the portion of the employer contribution allocated to health care remains at 2 percent for both plans as recommended by the OPERS actuary.

The OPERS Retirement Board is also authorized to establish rules for the payment of a portion of the health care benefits provided by the retiree or their surviving beneficiaries. Payment amounts vary depending on the number of covered dependents and the coverage selected. Active members do not make contributions to the post-employment health care plan.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The County’s contributions allocated to fund post-employment health care benefits for the years ended December 31, 2014, 2013 and 2012 were $7,411,139, $3,635,984 and $14,079,756, respectively. For 2014, 97.04 percent has been contributed with the balance being reported as an intergovernmental payable. The full amount has been contributed for 2013 and 2012.

Changes to the health care plan were adopted by the OPERS Board of Trustees on September 9, 2012, with a transition plan commencing January 1, 2014. With the passage of pension legislation under SB 343 and the approved health care changes, OPERS expects to be able to consistently allocate 4 percent of the employer contributions toward the health care fund after the end of the transition period.

State Teachers Retirement System (STRS)

Plan Description – The County participates in the cost-sharing multiple-employer defined benefit Health Plan administered by the State Teachers Retirement System of Ohio (STRS Ohio) for eligible retirees who participated in the defined benefit or combined pension plans offered by STRS Ohio. Ohio law authorizes STRS to offer this plan. Benefits include hospitalization, physicians’ fees, prescription drugs and reimbursement of monthly Medicare Part B premiums. The Plan is included in the report of STRS Ohio which can be obtained by visiting www.strsoh.org or by calling 888-227-7877.

Funding Policy – Ohio Revised Code Chapter 3307 authorizes STRS Ohio to offer the Plan and gives the Retirement Board authority over how much, if any, of the health care costs will be absorbed by STRS Ohio. Active employee members do not contribute to the Health Care Plan. All benefit recipients, for the most recent year, pay a monthly premium. Under Ohio law, funding for post-employment health care may be deducted from employer contributions. From January 1, 2014 until June 30, 2014, STRS Ohio allocated employer contributions equal to one percent of covered payroll to post-employment health care. From July 1, 2014 until December 30, 2014, STRS Ohio did not allocate employer contributions to post-employment health care. The County’s contributions for health care for the years ended December 31, 2014, 2013 and 2012 were $30,668, $97,720 and $94,390, respectively. The full amount has been contributed for 2014, 2013 and 2012.

Note 20 – Other Employee Benefits

Compensated Absences

County employees become eligible to receive one-fourth of their accumulated unpaid sick leave up to a maximum of thirty days upon retirement with a minimum of ten years of service. Certain agencies may have policies that vary with regard to payment of accrued sick leave upon retirement.

Employees with a minimum of one year of service become vested in accumulated unpaid vacation time. Vacation time may not be accumulated for more than three years. Unused vacation time is payable upon termination of employment.

Compensatory time (Comp time) and exchange time are accrued for actual time worked. Comp time is granted to non-exempt employees and exchange time is granted to exempt employees. Comp time is earned at 1.5 hours for every hour worked. Exchange time is earned on an hour-for-hour basis. Comp time must be used within 180 days or it will be paid out. Exchange time must be used within six months or it expires. Exchange time is not paid out.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

All sick, vacation, compensatory and overtime payments are made at the employee’s current wage rate. Balances for compensated absences are kept at various department levels, therefore, the data is only combined annually for reporting purposes.

Health Care Benefits

Some County departments provide life and accidental death insurance to their employees through various life insurance companies. During 2014, the County contracted with several insurance companies for employee medical, prescription, dental and vision benefits as follows:

Company Benefit Provided Healthspan Medical and Prescription Drugs United Healthcare Medical Medical Mutual of Ohio Medical MetroHealth Medical and Prescription Drugs CVS Caremark Prescription Drugs Guardian Life Insurance Company Dental Union Eye Care Vision Northwest Group Services Flexible Spending Accounts Ceridian COBRA Services

Note 21 – Conduit Debt Obligations

Periodically, the County has issued Industrial Development, Hospital Revenue, and Mortgage Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial, commercial, and hospital facilities deemed to be in the public interest. These bonds are secured by the property financed and are payable solely from payment received on the underlying mortgage loans. The bonds do not constitute a debt or pledge of the full faith and credit of the County, and, therefore, are not reported in the financial statements. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond insurance.

As of December 31, 2014, the aggregate principal amounts outstanding for Industrial Development, Hospital Revenue, and Mortgage Revenue Bonds were approximately $524 million, $1.4 billion, and $164 million, respectively.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 22 – Long-Term Debt

The original issue date, interest rate and original issuance amount for each of the County’s bonds are as follows: Original Issue Original Year of Debt Issue DateInterest Rate Issue Maturity Governmental Activities General Obligation Bonds - Unvoted: 1993 Rock and Roll Hall of Fame Bonds 1993 2.75 - 5.65% $12,000,000 2018 2004 Capital Improvement Bonds 2004 2.50 - 5.25 84,490,000 2024 2005 General Obligation Refunding Bonds 2005 3.00 - 5.00 73,970,000 2020 2009 Capital Improvements Bonds 2009 1.62 - 6.03 163,825,000 2034 2012A Various Purpose Bonds 2012 1.50 - 5.00 65,728,000 2037 2012B Various Purpose Refunding Bonds 2012 1.50 - 5.00 45,577,000 2024 Revenue Bonds 1992 Gateway Economic Development 1992 8.63 35,000,000 2022 2000 Sewer Improvement 2000 4.55 - 5.55 1,040,000 2020 2004 Brownfield Redevelopment Refunding Bonds 2004 1.50 - 5.10 12,880,000 2018 2005 Sewer Improvement 2005 2.00 - 3.55 4,445,000 2025 2010 Brownfield Redevelopment Bonds 2010 1.04 - 5.93 17,160,000 2030 2010 Commercial Redevelopment Bonds 2010 1.04 - 5.93 11,105,000 2030 2010 Gateway Arena Refunding Bonds 2010 1.04 - 5.03 42,070,000 2030 2010 Shaker Square Refunding Bonds 2010 1.00 - 4.12 2,800,000 2030 2010 Economic Development - GCHI 2010 1.55 - 6.20 343,350,000 2027 2013A Economic Development - Steelyard Commons 2013 0.60 - 5.25 4,205,000 2037 2013B Economic Development - Westin Hotel 2013 1.85 - 5.75 5,685,000 2042 2014A Various Purpose Sales Tax Revenue Bonds 2014 2.00 - 5.00 137,890,000 2038 2014B Western Reserve Bonds 2014 3.25 - 3.80 22,185,000 2026 2014C Medical Mart/Convention Center Refunding Bonds 2014 3.00 20,890,000 2027 Certificate of Participation 2014 Convention Center Hotel 2014 3.75 - 5.00 230,885,000 2044 Loans Payable 1997 Ohio Department of Development - Gateway 1997 0.00 10,000,000 2016 2006 Ohio Public Works Commission - Schaaf Bridge 2006 0.00 1,251,250 2027 2009 Ohio Department of Transportation - Crocker 2009 3.00 5,257,016 2019 Bond Anticipation Notes 2011 Rock and Roll 2011 1.94 10,320,000 2015

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Original Original Year of Debt Issue Issue Date Interest Rate Issue Maturity

Business-Type Activities Self-Supporting Bonds Payable 2000 Sewer Improvement 2000 4.55 - 5.55% $1,040,000 2020 2005 Sewer Improvement 2005 2.00 - 3.55 4,445,000 2025 OWDA Loans Cuyahoga County Lab 2002 4.18 1,487,338 2016 Interceptor Sewer Construction 2002 4.18 270,471 2016 Trunk Sewer Construction 1999 4.04 1,935,141 2019 Scottish Highlands Sewer 1998 4.04 1,225,007 2018 CSO Improvements 2006 3.35 333,668 2025 Suffolk Estates Pump Station 2007 3.25 231,368 2026 Woods Pump Station 2008 3.25 612,192 2027 CSO Improvements/E 38th 40th St 2008 3.25 807,805 2027 Fitch Road Sanitary Sewer 2008 3.25 1,558,386 2027 Echo Hills WWTP Elimination 2009 3.36 1,937,877 2028 Stearns & Cook Roads Sanitary Sewer 2010 3.53 513,754 2030 Cook Mackenzie Sanitary Sewer 2010 3.52 683,099 2029 Thornapple Pump Station 2010 3.70 956,072 2029 Sewer Repairs 2011 3.25 2,144,266 2032 Fernhill Sewer Replacement 2011 2.66 1,562,868 2032 North Granger Sewer Replacement 2011 2.62 486,347 2031 Dewey Road Pump Station 2011 3.28 2,642,665 2032 Jefferson Drive Sewer Lining 2013 2.66 378,483 2032 Broadview Drill Drop & Sanitary Sewer 2014 3.37 339,138 2034 OPWC Loans Sanitary Sewerage Facilities Rehab 1995 0.00 746,824 2015 North County Trunk Sewer Improvement 1999 0.00 453,919 2019 MetroHealth Sanitary Sewer 1997 0.00 130,654 2018 Sanitary Sewer System Improvement 2010 0.00 236,210 2031

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Changes in the County's long-term obligations during the year ended December 31, 2014, consist of the following:

Outstanding Outstanding Amounts Due in 12/31/13 Additions Reductions 12/31/14 One Year

Governmental Activities General Obligation Bonds - Unvoted: 1993 Rock and Roll Hall of Fame Serial Bonds $3,795,000 $0 $680,000 $3,115,000 $715,000 2004 Capital Improvement Serial Bonds 3,805,000 0 3,805,000 0 0 2005 General Obligation Refunding Bonds 47,325,000 0 6,520,000 40,805,000 6,820,000 Unamortized Premium 3,871,302 0 533,352 3,337,950 0 2009 Capital Improvement Bonds Serial Bonds 60,225,000 0 35,475,000 24,750,000 4,595,000 Building America Bonds - Serial 8,080,000 0 50,000 8,030,000 50,000 Building America Bonds - Term 35,740,000 0 0 35,740,000 0 Recovery Zone Economic Development Bonds - Serial 7,835,000 0 50,000 7,785,000 50,000 Recovery Zone Economic Development Bonds - Term 34,740,000 0 0 34,740,000 0 Unamortized Premium 5,768,226 0 3,287,213 2,481,013 0 2012A Various Purpose Bonds Serial Bonds 46,371,000 0 1,861,000 44,510,000 1,910,000 Term Bonds 17,465,000 0 0 17,465,000 0 Unamortized Premium 7,961,913 0 232,112 7,729,801 0 2012B Various Purpose Refunding Bonds Serial Bonds 45,349,000 0 224,000 45,125,000 4,025,000 Unamortized Premium 6,910,677 0 34,135 6,876,542 0

Total General Obligation Bonds - Unvoted 335,242,118 0 52,751,812 282,490,306 18,165,000

Revenue Bonds 1992 Gateway Economic Development 31,500,000 0 3,500,000 28,000,000 3,500,000 2000 Sewer Improvement Bonds 0 425,000 425,000 0 0 2004 Brownfield Redevelopment Refunding Bonds 5,510,000 0 5,510,000 0 0 2005 Sewer Improvement Bonds 0 2,615,000 2,615,000 0 0 2010 Brownfield Redevelopment Bonds Serial Bonds 9,355,000 0 625,000 8,730,000 645,000 Term Bonds 6,000,000 0 0 6,000,000 0 2010 Commercial Redevelopment Bonds Serial Bonds 6,075,000 0 400,000 5,675,000 425,000 Term Bonds 3,855,000 0 0 3,855,000 0 2010 Gateway Arena Refunding Bonds 32,805,000 0 1,770,000 31,035,000 1,805,000 2010 Shaker Square Refunding Bonds Serial Bonds 735,000 0 65,000 670,000 70,000 Term Bonds 1,810,000 0 0 1,810,000 0 Unamortized Premium 114,304 0 2,919 111,385 0 2010 Economic Development - GCHI Taxable GCHI Revenue Bonds Serial Bonds 55,210,000 0 17,795,000 37,415,000 18,370,000 Term Bonds 31,845,000 0 0 31,845,000 0 Tax Exempt GCHI Revenue Bonds Recovery Zone Economic Development Bonds - Serial 20,000,000 0 20,000,000 0 0 Recovery Zone Facility Bonds - Serial 174,235,000 0 0 174,235,000 0 Recovery Zone Facility Bonds - Term 26,000,000 0 0 26,000,000 0 Unamortized Premium 12,666,354 0 733,502 11,932,852 0 2013A Steelyard Commons Taxable Economic Development Bonds Serial Bonds 2,945,000 0 100,000 2,845,000 115,000 Term Bonds 1,260,000 0 0 1,260,000 0 Unamortized Discount (58,024) 0 (1,380) (56,644) 0

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Outstanding Outstanding Amounts Due in 12/31/13 Additions Reductions 12/31/14 One Year Revenue Bonds (continued) 2013B Westin Hotel Taxable Economic Development Bonds Serial Bonds $2,675,000 $0 $0 $2,675,000 $0 Term Bonds 3,010,000 0 0 3,010,000 0 Unamortized Discount (113,157) 0 0 (113,157) 0 2014A Various Purpose Sales Tax Revenue Bonds Serial Bonds 0 131,505,000 0 131,505,000 65,000 Term Bonds 0 6,385,000 0 6,385,000 0 Unamortized Premium 0 18,679,044 0 18,679,044 0 2014B Western Reserve Bonds Taxable Economic Development Bonds Serial Bonds 0 22,185,000 0 22,185,000 0 2014C Medical Mart/Convention Center Refunding Bonds Tax-Exempt Economic Development Term Bonds 0 20,890,000 0 20,890,000 85,000 Unamortized Discount 0 (548,989) 0 (548,989) 0

Total Revenue Bonds 427,434,477 202,135,055 53,540,041 576,029,491 25,080,000

Certificates of Participation 2014 Convention Hotel Certificate of Participation Serial Bonds 0 158,760,000 0 158,760,000 0 Term Bonds 0 72,125,000 0 72,125,000 0 Unamortized Premium 0 26,430,183 0 26,430,183 0 Unamortized Discount 0 (451,125) 0 (451,125) 0

Total Certificates of Participation 0 256,864,058 0 256,864,058 0

Loans Payable Ohio Department of Development - Gateway 1,500,000 0 500,000 1,000,000 500,000 Ohio Public Works Commission - Schaaf Bridge 813,314 0 62,562 750,752 62,563 Ohio Department of Transportation - Crocker 3,745,266 0 636,142 3,109,124 655,369

Total Loans Payable 6,058,580 0 1,198,704 4,859,876 1,217,932

Other Long-Term Obligations: Bond Anticipation Notes - 2011 Rock and Roll 5,100,000 0 3,100,000 2,000,000 2,000,000 Compensated Absences 26,702,932 2,674,353 2,953,202 26,424,083 2,278,271 Capital Lease 11,829,803 75,545,977 3,037,141 84,338,639 3,898,116 Capital Lease to Component Unit 360,272,155 0 18,867,820 341,404,335 19,807,718

Total Other Long-Term Obligations 403,904,890 78,220,330 27,958,163 454,167,057 27,984,105

Total Governmental Activities $1,172,640,065 $537,219,443 $135,448,720 $1,574,410,788 $72,447,037

Outstanding Outstanding Amounts Due in 12/31/13 Additions Reductions 12/31/14 One Year Business Type Activities Self-Supported Bonds Payable 2000 Sewer Improvement - Spec. Assessments $485,000 $0 $485,000 $0 $0 2005 Sewer Improvement 3,030,000 0 2,820,000 210,000 210,000 Total Self-Supported Bonds Payable 3,515,000 0 3,305,000 210,000 210,000 Other Long-Term Obligations OWDA Loans Cuyahoga County Lab 209,852 0 102,756 107,096 107,096 Interceptor Sewer Construction 47,150 0 18,280 28,870 19,048 Trunk Sewer Construction 636,996 0 117,417 519,579 122,209 Scottish Highlands Sewer 328,913 0 77,362 251,551 80,519 CSO Improvements 190,474 0 14,851 175,623 0

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Outstanding Outstanding Amounts Due in 12/31/13 Additions Reductions 12/31/14 One Year OWDA Loans (continued) Suffolk Estates Pump Station $129,294 $0 $12,440 $116,854 $0 Woods Pump Station 417,298 0 16,049 401,249 0 CSO Improvements/East 38th 40th Street 557,029 0 23,108 533,921 0 Fitch Road Sanitary Sewer 1,130,466 0 61,454 1,069,012 0 Echo Hills Wastewater Treatment Plant Elimination 1,262,643 0 88,967 1,173,676 0 Stearns and Cook Roads Sanitary Sewer 424,382 0 16,480 407,902 0 Cook Mackenzie Sanitary Sewer 495,341 0 25,678 469,663 0 Thornapple Pump Station 693,407 0 36,991 656,416 0 Sewer Repairs 1,973,992 0 83,400 1,890,592 0 Fernhill Sewer Replacement 1,424,524 0 63,192 1,361,332 0 North Granger Sewer Replacement 317,586 0 20,040 297,546 0 Dewey Road Pump Station 2,094,075 0 101,189 1,992,886 0 HSTS Repair/Replacement Program 0 161,894 161,894 0 0 Jefferson Drive Sewer Lining 232,703 0 15,142 217,561 0 Broadview Drill Drop & Sanitary Sewer 0 238,561 12,118 226,443 0 Total OWDA Loans 12,566,125 400,455 1,068,808 11,897,772 328,872 OPWC Loans Sanitary Sewerage Facilities Rehab 37,340 0 37,340 0 0 North County Trunk Sewer Improvement 124,827 0 22,696 102,131 22,696 MetroHealth Sanitary Sewer 29,399 0 6,532 22,867 6,533 Sanitary Sewer System Improvement 206,685 0 11,810 194,875 11,811 Total OPWC Loans 398,251 0 78,378 319,873 41,040 Other Long-Term Obligations Compensated Absences 505,906 89,585 60,278 535,213 46,342 Total Business-Type Activities $16,985,282 $490,040 $4,512,464 $12,962,858 $626,254

The self-supported bonds payable will be paid from charges for services revenue in the enterprise funds. The business-type activities’ OWDA and OPWC loans will be paid from charges for services revenue in the enterprise funds. Self-supporting bonds are secured by an unvoted property tax levy; however, each bond indenture provides for principal and interest to also be paid from user charges.

The general obligation and revenue bonds will be paid with property taxes in the debt service fund. The certificates of participation will be paid with payment in lieu of taxes in the debt service fund. The Gateway Ohio Department of Development loan will be paid with non-tax revenue in the general fund. The OPWC loan for Schaaf Bridge will be paid with property taxes in the debt service fund. The Ohio Department of Transportation loans will be paid with motor vehicle license tax in the debt service fund. The Rock and Roll bond anticipation notes will be paid with 1.50 percent lodging tax in the debt service fund.

Compensated absences will be paid from the fund from which the employee is paid. These funds include the general, alcohol, drug and mental health, community development, County board of developmental disabilities, court, human services, motor vehicle and gas tax, other health and safety, other judicial, County airport, Cuyahoga County information systems, sanitary engineer, County parking garage, maintenance garage, printing, postage, central custodial services and workers’ compensation funds. Capital Leases will be paid from the general, human services and GCHI funds.

In March 2006, the County Commissioners authorized by resolution a loan in the amount of $8.25 million from ODOT of which $3.6 million was borrowed in 2009, and another $1.6 million was borrowed in 2010. The loans are provided through the State Infrastructure Bank fund, which are federal funds, to be used for road and bridge improvements. Both loans carry a 0 percent interest rate for the first 12 months and a 3

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

percent rate thereafter, for 10 years. In August 2005, the County Commissioners by resolution accepted a grant/loan from the Ohio Public Works Commission (Issue I) in the amount of $2.5 million split evenly between a grant and a loan. This loan carries a 0 percent interest rate for 20 years. The County pledged its motor vehicle license tax as the source of repayment for all loans. In the event that the motor vehicle license tax would fail to pay the loans, payment would be made by any general tax revenues collected in the general fund.

During 2009, the County issued $163,825,000 in Capital Improvement Bonds. The issue consisted of tax exempt serial bonds, Build America Bonds (BABs) and Recovery Zone Economic Development Bonds (RZEDBs). As part of the American Recovery and Reinvestment Act of 2009, Congress added Sections 54AA and 6431 to the Code, which permit state or local governments to obtain certain tax advantages when they issue BABs and RZEDBs. Under Section 6431 of the Code, the County may elect to receive payments directly from the Secretary of the United States Treasury equal to 35 percent of the corresponding interest payable on this issue. The County refunded a portion of the tax exempt serial bonds in 2014.

The term bonds maturing on December 1, 2034, are subject to mandatory sinking fund redemption at a redemption price of 100 percent of the principal amount to be redeemed, plus accrued interest to the date of redemption as follows:

2009 Capital Improvement Bonds Year $35,740,000 $34,740,000 2027 $3,930,000 $3,825,000 2028 4,075,000 3,960,000 2029 4,220,000 4,105,000 2030 4,380,000 4,250,000 2031 4,535,000 4,405,000 2032 4,695,000 4,565,000 2033 4,865,000 4,730,000 2034 5,040,000 4,900,000 Total $35,740,000 $34,740,000 Stated Maturity 12/1/2034 12/1/2034

In May 2010, the County issued $10,150,000 in one year limited tax general obligation bond anticipation notes with an interest rate of 1.5 percent due May 2011. The notes were issued for use by the Rock and Roll Hall of Fame for its Library and Archives project. The notes were to be repaid from the existing 1.5 percent bed tax once the 1993 County Rock and Roll Hall of Fame bonds had been reimbursed from the same tax. In May 2011, the net proceeds from the Rock and Roll Hall of Fame and Museum Project notes, Series 2011 were used to redeem the Series 2010 notes. The new notes were issued amounting to $10,320,000 at an interest rate of 1.94 percent with maturity on December 1, 2015. The notes will be repaid from the debt service fund.

In September 2010, the County issued $73,135,000 in revenue bonds. This bond issuance is composed of Brownfield and Commercial Redevelopment loan funds amounting to $17,160,000 and $11,105,000, respectively, both taxable at the true interest cost of 5.2 percent. The second issuance was to refund outstanding debt for the Gateway Arena and Shaker Square projects at $42,070,000 taxable and $2,800,000 tax-exempt, at a true interest cost of 4.4 percent and 3.9 percent, respectively. The bonds are being repaid in the community development special revenue and debt service funds.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The term bonds maturing on June 1, 2025 and 2030 are subject to mandatory sinking fund redemption at a redemption price of 100 percent of the principal amount to be redeemed, plus accrued interest to the date of redemption, on June 1 in the years and in the respective principal amounts as follows:

Brownfield Commercial Redevelopment Redevelopment Bonds Bonds Shaker Square Refunding Bonds Year $6,000,000 $3,855,000 $1,310,000 $500,000

2021 $0 $0 $240,000 $0 2022 0 0 245,000 0 2023 0 0 260,000 0 2024 0 0 275,000 0 2026 1,070,000 680,000 0 90,000 2027 1,130,000 725,000 0 100,000 2028 1,195,000 770,000 0 95,000 2029 1,265,000 815,000 0 110,000 Total $4,660,000 $2,990,000 $1,020,000 $395,000 Stated Maturity 6/1/2030 6/1/2030 6/1/2025 6/1/2030

The remaining principal amount of the term bonds ($1,340,000, $865,000, $290,000, and $105,000) will mature at the stated maturity.

In December 2010, the County issued Series 2010 (Global Center for Health Innovation/Convention Center Project) Bonds in three series as follows: $20,000,000 Recovery Zone Economic Development Revenue Bond Series 2010E, $200,235,000 Tax-Exempt Recovery Zone Facility Economic Development Revenue Bonds, Series 2010F and $123,115,000 Taxable Economic Development Revenue Bonds, Series 2010G. The bonds are being repaid in the GCHI capital projects fund.

The 2010 Economic Development – GCHI Taxable Revenue term bonds maturing on December 1, 2019, are subject to mandatory sinking fund redemption at a redemption price of 100 percent of the principal amount to be redeemed, plus accrued interest to the date of redemption, on December 1 in the years and in the respective principal amounts as follows:

Year $31,845,000

2017 $15,145,000 2018 15,905,000 Total $31,050,000 Stated Maturity 12/1/2019

The remaining principal amount of the term bonds ($795,000) will mature at the stated maturity. The 2010 Economic Development – GCHI bonds are not subject to optional redemption prior to maturity.

Optional Redemption The $20,000,000 2010 Economic Development – GCHI Revenue Bonds Recovery Zone Economic Development Bonds are subject to redemption, by and at the option of the County, either in whole or in part on any date, on and after December 1, 2020, in the amount of $5,000 or any integral multiple thereof at par, plus interest accrued to the redemption date.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Extraordinary Optional Redemption The 2010 Economic Development – GCHI Revenue Bonds Recovery Zone Economic Development Bonds are subject extraordinary optional redemption prior to maturity, by and at the sole option of the County, in whole or in part on any date, in the amount of $5,000 or any integral multiple thereof, at par (plus accrued interest to the redemption date) in the event that the government of the United States of America evidences in the sole judgment of the County Administrator by action or failure to act that it will not provide for Direct Payments to be made to the County in an amount greater than or equal to 45 percent of the interest payable on those Bonds on any interest payment date.

The 2010 Economic Development – GCHI Recovery Zone Facility term bonds maturing on December 1, 2027, shall be subject to mandatory sinking fund redemption at a redemption price of 100 percent of the principal amount redeemed plus accrued interest to the redemption date on December l, 2026, in the amount of $15,900,000. The remaining $10,100,000 principal amount of Series 2010F Bonds maturing on December 1, 2027, will be retired at their maturity (if not previously purchased for cancellation or otherwise redeemed).

Optional Redemption The 2010 Economic Development – GCHI Recovery Zone Facility bonds maturing on and after December 1, 2021, are subject to redemption by and at the option of the County, either in whole or in part on any date, on and after December 1, 2020, in the amount of $5,000 or any integral multiple thereof at par, plus interest accrued to the redemption date

In November 2012, the County issued general obligation bonds in the amount of $65,728,000 for constructing County buildings, purchasing equipment, updating the County Airport’s runway and for the right to use the Village of Highland Hills Community Center. The bonds were issued with interest rates varying from 1.5 to 5 percent. The bonds were issued for a twenty-five year period with final maturity during 2037. The bonds will be retired through the debt service fund.

In November 2012, the County issued general obligation bonds in the amount of $45,577,000 to refund bonds previously issued in fiscal year 2004 for various purposes. The bonds were issued with interest rates varying from 1.5 to 5 percent. The bonds were issued for a twenty-five year period with final maturity during 2037. The bonds will be retired through the debt service fund.

In October 2013, the County issued $4,205,000 in Taxable Economic Development Revenue Bonds for the Steelyard Commons Project. The revenue bonds included serial and term bonds in the amounts of $2,945,000 and $1,260,000. The bonds were issued for a twenty-four year period with a final maturity at December 1, 2037. The bonds are being repaid in the debt service fund.

The term bond maturing on December 1, 2037, is subject to mandatory sinking fund redemption at a redemption price of 100 percent of the principal amount to be redeemed, plus accrued interest to the date of redemption, on December 1 in the years and in the respective principal amounts as follows:

Year $1,260,000

2034 $220,000 2035 235,000 2036 245,000 Total $700,000 Stated Maturity 12/1/2037

The remaining principal amount of the term bonds ($560,000) will mature at the stated maturity.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

In December 2013, the County issued $5,685,000 in Taxable Economic Development Revenue bonds for the Westin Cleveland Hotel Project. The revenue bonds include serial and term bonds in the amounts of $2,675,000 and $3,010,000. The bonds were issued for a twenty-nine year period with a final maturity at December 1, 2042. The bonds are being repaid in the debt service fund.

The term bonds maturing on December 1, 2037, 2039 and 2042 are subject to mandatory sinking fund redemption at a redemption price of 100 percent of the principal amount to be redeemed, plus accrued interest to the date of redemption, on December 1 in the years and in the respective principal amounts as follows:

Year $1,000,000 $590,000 $1,420,000

2034 $230,000 $0 $0 2035 245,000 0 0 2036 255,000 0 0 2038 0 285,000 0 2040 0 0 320,000 2041 0 0 340,000 Total $730,000 $285,000 $660,000 Stated Maturity 12/1/2037 12/1/2039 12/1/2042

The remaining principal amount of the term bonds ($270,000, $305,000 and $760,000) will mature at the stated maturity.

During 2014, the County transferred $425,000 of the 2000 Sewer Improvement Bonds and $2,615,000 of the 2005 Sewer Improvement Bonds to governmental activities. On December 17, 2014, the County issued $137,890,000 in Various Purpose Sales Tax Revenue bonds for construction and improvements of various County buildings, to refund bonds previously issued in fiscal year 2009 for capital improvements and 2000 and 2005 for sewer improvements and to pay costs of issuance and capitalized interest on the Series 2014 bonds. The revenue bonds include serial and term bonds in the amounts of $131,505,000 and $6,385,000. The bonds were issued with interest rates varying from 2 to 5 percent. The bonds were sold at a premium of $18,679,044. The bonds were issued for a twenty-four year period with final maturity during 2038. The bonds will be retired through the debt service fund.

2009 Capital 2000 Sewer 2005 Sewer Improvement Improvement Improvement Serial Bonds Bonds Bonds Total Bonds

Outstanding at December 31, 2013 $60,225,000 $485,000 $3,030,000 $63,740,000 Amount Refunded (30,995,000) (425,000) (2,615,000) (34,035,000) Principal Payment on Non-Refunded Portion (4,480,000) (60,000) (205,000) (4,745,000) Outstanding at December 31, 2014 $24,750,000 $0 $210,000 $24,960,000

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Net proceeds of $39,324,064 were deposited in an irrevocable trust with an escrow agent to partially refund the 2009 capital improvement bonds, 2000 sewer improvement bonds and 2005 sewer improvement bonds. As a result, $34,035,000 of these bonds was considered defeased and the liability for the refunded bonds has been removed from the County’s financial statements. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the County’s financial statements. On December 31, 2014, $33,610,000 of the defeased bonds are still outstanding.

2009 Capital Improvement Serial Bonds Serial Bonds $55,745,000 Premium on Bonds 3,107,030 Total 2009 Capital Improvement Serial Bonds 58,852,030 2000 Sewer Improvement Bonds 425,000 2005 Sewer Improvement Bonds 2,825,000 Total Bonds 62,102,030 Non-refunded Portion of Bonds (24,960,000) Payment to Refunded Bond Escrow Agent - Other Financing Use (39,324,064) 2014A Various Purpose Sales Tax Accounting Loss ($2,182,034)

Although the refunding will result in the recognition of an accounting loss of $2,182,034, the County in effect decreased its aggregated debt service payments by $2,074,437 over the next ten years and obtained an economic gain (difference between the present values of the old and new debt service payments) of $1,740,491.

The term bond maturing on December 1, 2026, is subject to mandatory sinking fund redemption at a redemption price of 100 percent of the principal amount to be redeemed, plus accrued interest to the date of redemption, on December 1 in the years and in the respective principal amounts as follows:

Year $6,385,000 2026 $285,000 Total $285,000 Stated Maturity 12/1/2026

The remaining principal amount of the term bonds ($6,100,000) will mature at the stated maturity.

On December 17, 2014, the County issued $22,185,000 in Taxable Economic Development Revenue bonds for the Western Reserve Fund Project. The bonds were issued with interest rates varying from 3.25 to 3.8 percent. The bonds were issued for a twelve year period with final maturity during 2026. The bonds will be retired through the debt service fund.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

On December 17, 2014 the County issued $20,890,000 in Tax-Exempt Economic Development Refunding Revenue bonds to refund the Medical Mart Revenue bonds. The bonds were issued at an interest rate of 3 percent. The bonds were issued for a thirteen year period with final maturity during 2027. The bonds will be retired through the debt service fund.

2010 Recovery Zone Economic Development Bonds - Serial Outstanding at December 31, 2013 $20,000,000 Amount Refunded (20,000,000) Outstanding at December 31, 2014 $0

Net proceeds of $20,096,445 (including a $548,989 discount and after payment of $244,566 in issuance costs) were deposited in an irrevocable trust with an escrow agent to provide for all future debt payments on the refunded 2010 medical mart revenue bonds. As a result, $20,000,000 of these bonds was considered defeased and the liability for the refunded bonds has been removed from the County’s financial statements. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the County’s financial statements.

2010 Economic Development - Medical Mart Recovery Zone Economic Development Bonds - Serial $20,000,000 Payment to Refunded Bond Escrow Agent (20,096,445) 2010 Economic Development - Medical Mart Accounting Loss ($96,445)

Although the refunding will result in the recognition of an accounting loss of $96,445, the County in effect decreased its aggregated debt service payments by $540,945 over the next ten years and obtained an economic gain (difference between the present values of the old and new debt service payments) of $454,190.

The term bond maturing on December 1, 2027, is subject to mandatory sinking fund redemption at a redemption price of 100 percent of the principal amount to be redeemed, plus accrued interest to the date of redemption, on December 1 in the years and in the respective principal amounts as follows:

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Year $20,890,000 2015 $85,000 2016 55,000 2017 60,000 2018 60,000 2019 60,000 2020 65,000 2021 65,000 2022 70,000 2023 70,000 2024 70,000 2025 75,000 2026 75,000 Total $810,000 Stated Maturity 12/1/2027

The remaining principal amount of the term bonds ($20,080,000) will mature at the stated maturity.

On May 29, 2014, the County issued $230,885,000 in Certificates of Participation (COPS) to fund a portion of the costs of the Convention Center Hotel project, which included $158,760,000 in serial bonds and $72,125,000 in term bonds. The COPs were sold at a premium of $26,430,183 and discount of $451,125. The Certificates were issued for a thirty year period with final maturity in year 2044. The certificates will be retired through the debt service fund. The COPs were issued through a series of lease agreements and trust indentures in accordance with Section 3313.375 of the Ohio Revised Code. The COPs have designated to be “qualified tax exempt obligations” within the meaning of 265(b)(3) of the Ohio Revised Code. In accordance with the lease terms, the project assets are leased to the Cleveland-Cuyahoga County Port Authority, and then subleased back to the County.

The term bonds maturing on December 1, 2031, 2034, 2036 and 2044 are subject to mandatory sinking fund redemption at a redemption price of 100 percent of the principal amount to be redeemed, plus accrued interest to the date of redemption, on December 1 in the years and in the respective principal amounts as follows:

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Year $7,025,000 $10,350,000 $3,050,000 $5,725,000 $45,975,000 2030 $3,450,000 $0 $0 $0 $0 2032 0 2,450,000 0 0 0 2033 0 3,875,000 0 0 0 2035 0 0 1,450,000 2,750,000 0 2037 0 0 0 0 4,775,000 2038 0 0 0 0 4,975,000 2039 0 0 0 0 5,200,000 2040 0 0 0 0 5,650,000 2041 0 0 0 0 5,900,000 2042 0 0 0 0 6,150,000 2043 0 0 0 0 6,425,000 Total $3,450,000 $6,325,000 $1,450,000 $2,750,000 $39,075,000 Stated Maturity 12/1/2031 12/1/2034 12/1/2036 12/1/2036 12/1/2044

The remaining principal amount of the term bonds ($3,575,000, $4,025,000, $1,600,000, $2,975,000 and $6,900,000) will mature at the stated maturity.

The County has entered into a contractual agreement for construction loans from the Ohio Water Development Authority (OWDA). Under the terms of this agreement, OWDA will reimburse, advance or directly pay the construction costs of the approved projects. OWDA will capitalize administrative costs and construction interest and then add them to the total amounts of the final loans. These loans will not have an accurate repayment schedule until the loans are finalized and, therefore, are not included in the schedule of future annual debt service requirements. The County is currently making payments based upon estimates. The balances of the loans are as follows:

Outstanding 12/31/14 CSO Improvements $175,623 Suffolk Estates Pump Station 116,854 Woods Pump Station 401,249 CSO Improvements/East 38th 40th Street 533,921 Fitch Road Sanitary Sewer 1,069,012 Echo Hills Wastewater Treatment Plant Elimination 1,173,676 Stearns and Cook Roads Sanitary Sewer 407,902 Cook Mackenzie Sanitary Sewer 469,663 Thornapple Pump Station 656,416 Sewer Repairs 1,890,592 Fernhill Sewer Replacement 1,361,332 North Granger Sewer Replacement 297,546 Dewey Road Pump Station 1,992,886 Jefferson Drive Sewer 217,561 Broadview Drill Drop & Sanitary Sewer 226,443 Totals $10,990,676

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

On April 3, 2014 the County issued conduit debt that was guaranteed by the County. The $17,000,000 in taxable economic development revenue bonds was issued by the County and the proceeds were loaned to Flats East Development LLC (the “Borrower”), a legally separate organization within the County. The bonds were issued pursuant to Chapter 165 Ohio Revised Code. The proceeds were loaned to finance a portion of the costs of the acquisition, construction, reconstruction, enlargement, improvement, furnishing and equipping of a project consisting of approximately 61,000 square feet of ground level retail and restaurant space, and related parking and infrastructure located on the banks of the Cuyahoga River in the downtown area of the City of Cleveland.

The amount of debt outstanding for principal and interest as of December 31, 2014, is $32,239,175. The issuance consists of three separate term bonds that mature in October 2024, October 2033 and April 2038. The stated interest rate ranges from 4.5 percent to 6.0 percent.

The guarantee of the County secures the payment of scheduled bond principal and interest payments. The guarantee is subject to annual appropriation by the County. If the County does not appropriate the funds for any given year the County’s guaranty is considered terminated. The County has appropriated funds for 2014 and 2015 that meet the requirements for the issuer guaranty. As consideration for the County’s guaranty, two additional guarantees were issued (the Wolstein Issuer Guaranty and the Wolstein Trustee Guaranty). If the County is required to exercise its guaranty and certain debt funding levels are not met with the Trustee, the County may collect payment via the Wolstein Issuer Guaranty and/or the Wolstein Trustee Guaranty agreements.

The Ohio Revised Code provides that the net general obligation debt of the County, exclusive of certain exempt debt, issued without a vote of the electors shall never exceed one percent of the total assessed valuation of the County. The Code further provides that the total voted and unvoted net debt of the County less the same exempt debt shall never exceed a sum equal to 3 percent of the first $100,000,000 of the assessed valuation, plus 1 1/2 percent of such valuation in excess of $100,000,000 and not in excess of $300,000,000, plus 2 1/2 percent of such valuation in excess of $300,000,000. The effects of the debt limitations described above at December 31, 2014, are an overall debt margin of $582,012,113; and an unvoted debt margin of $168,089,492.

Principal and interest requirements to retire the County’s long-term obligations outstanding at December 31, 2014, are as follows:

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Governmental Activities

Taxable Economic Development General Obligation Bonds Revenue Bonds Revenue Bonds Serial and Term Serial and Term Serial and Term Principal Interest Principal Interest Principal Interest 2015 $18,065,000 $7,523,792 $24,880,000 $13,914,017 $115,000 $1,206,026 2016 17,710,000 6,825,544 26,085,000 13,120,088 115,000 1,239,913 2017 18,505,000 6,034,634 22,570,000 11,909,308 240,000 1,238,592 2018 19,375,000 5,194,183 23,755,000 10,698,676 240,000 1,234,390 2019 19,385,000 4,365,518 9,230,000 9,417,977 240,000 1,229,232 2020-2024 43,285,000 12,425,630 105,215,000 36,220,516 11,840,000 5,964,350 2025-2029 12,950,000 6,756,500 42,190,000 23,641,177 13,310,000 2,350,004 2030-2034 15,600,000 4,002,300 39,000,000 14,030,475 2,055,000 1,391,758 2035-2039 10,895,000 883,000 0 4,073,150 2,400,000 773,826 2040-2042 0 0 0 0 1,420,000 188,600 Total $175,770,000 $54,011,101 $292,925,000 $137,025,384 $31,975,000 $16,816,691

Recovery Zone Facility Bonds Serial and Term Loans Notes Principal Interest Principal Interest Principal Interest 2015 $0 $9,999,156 $1,217,932 $88,395 $2,000,000 $38,800 2016 0 9,999,156 1,237,741 68,586 0 0 2017 0 9,999,156 758,147 48,180 0 0 2018 0 9,999,156 779,170 27,155 0 0 2019 15,900,000 9,999,156 428,947 5,496 0 0 2020-2024 118,200,000 34,777,030 312,813 0 0 0 2025-2027 66,135,000 5,660,062 125,126 0 0 0 Total $200,235,000 $90,432,872 $4,859,876 $237,812 $2,000,000 $38,800

Recovery Zone Economic Development Bonds (RZEDBs) Build America Bonds (BABs) Serial and Term Serial and Term Principal Interest Principal Interest Subsidy Total 2015 $50,000 $2,552,415 $50,000 $2,552,415 ($2,038,254) $3,166,576 2016 50,000 2,550,774 50,000 2,550,774 (2,036,940) 3,164,608 2017 50,000 2,548,863 50,000 2,548,863 (2,035,412) 3,162,314 2018 50,000 2,546,667 50,000 2,546,667 (2,033,656) 3,159,678 2019 50,000 2,544,371 55,000 2,544,371 (2,031,818) 3,161,924 2020-2024 255,000 12,684,325 270,000 12,684,325 (10,129,202) 15,764,448 2025-2029 19,170,000 10,530,138 19,730,000 10,530,138 (8,409,091) 51,551,185 2030-2034 22,850,000 4,295,303 23,515,000 4,295,303 (3,430,148) 51,525,458 Total $42,525,000 $40,252,856 $43,770,000 $40,252,856 ($32,144,521) $134,656,191

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Tax-Exempt Economic Development Revenue Bonds Certificates of Participation Serial and Term Serial and Term Principal Interest Principal Interest 2015 $85,000 $598,847 $0 $11,008,344 2016 55,000 624,150 0 11,008,344 2017 60,000 622,500 9,300,000 11,008,344 2018 60,000 620,700 10,200,000 10,543,344 2019 60,000 618,900 10,700,000 10,033,344 2020-2024 340,000 3,065,550 62,140,000 41,580,970 2025-2029 20,230,000 1,813,950 65,150,000 24,412,970 2030-2034 0 0 18,645,000 14,271,532 2035-2039 0 0 23,725,000 10,002,062 2040-2044 0 0 31,025,000 4,204,375 Total $20,890,000 $7,964,597 $230,885,000 $148,073,629

Business-Type Activities

General Obligation Bonds OWDA Loans OPWC Principal Interest Principal Interest Loan 2015 $210,000 $8,400 $328,872 $33,500 $41,040 2016 0 0 220,823 21,058 41,039 2017 0 0 219,613 12,241 41,041 2018 0 0 137,788 4,189 37,773 2019 0 0 0 0 23,158 2020-2024 0 0 0 0 59,052 2025-2029 0 0 0 0 59,054 2030-2031 0 0 0 0 17,716 Total $210,000 $8,400 $907,096 $70,988 $319,873

Note 23 – Risk Management

Health Insurance

The County has elected to provide medical benefits (with respect to three of its medical plans) and its prescription drug plan through a self insured program. The maintenance of these benefits is accounted for in the self-funded health insurance internal service fund. The County purchased excess coverage insurance (stop loss) policy with Voya Employee Benefits. Incurred but not reported claims of $5,592,351 have been accrued as a liability based on a review of January through March 2015 billings provided by the County Fiscal Officer’s Office. The claims liability is based on the requirements of Governmental Accounting Standards Board Statement No. 30 which requires that a liability for unpaid claims costs, including estimates of costs relating to incurred but not reported claims, be reported. The estimate was not affected by incremental claim adjustment expenses and does not include other allocated or unallocated claims adjustment expenses. Management’s expectation is the claims liability will be paid within one year. Changes in the fund’s claims liability amounts for 2013 and 2014 were as follows:

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Balance at Beginning Current Year Claim Balance at of Year Claims Payments End of Year 2013 $4,820,283 $30,897,183 $30,015,303 $5,702,163 2014 5,702,163 71,195,788 71,305,600 5,592,351

Property and Liability

The County is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. During 2014, the County contracted with several insurance companies for insurance coverage as follows:

Company/Type of Insurance Coverage Fireman's Fund Insurance Company Property Insurance $1,000,000,000 Travelers Casualty & Surety Company of America 1,000,000 Darwin National Assurance Workforce Investment Board Directors and Officers 1,000,000 Lloyd's London Force-Placed Builder's Risk Liability 1,000,000 Property 100,000 Darwin National Assurance Company Community Based Correctional Facility Governing Board E&O/EPL Professional Liability 1,000,000 Atain Specialty Insurance Company Board of Elections Liability 1,000,000 ACE USA International Excess Alliance LLC Sheriff's Inland Marine 500,000 Travelers Property Casualty Company of America Prosecutor's Sex Crime Van 150,000 Lexington Insurance Company Condemnation Insurance for Corporate Headquarters 69,240,800 Fireman's Fund Insurance Company Property Insurance 423,000,000 AIG Property Casualty Insurance Agency, Inc. Pollution Insurance for Cleveland Convention Center Hotel 5,000,000 Zurich Steadfast Insurance OPPI Insurance for Cleveland Convention Center Hotel 15,000,000 Hartford Insurance Company Builder's Risk Insurnace for Cleveland Convention Center Hotel 214,300,000 Commerce and Industry/Chartis Aviation Insurance 5,000,000 Markel Evanston Jail Medical Insurance - per occurrence 3,000,000 Aggregate 5,000,000

Settled claims have not exceeded coverage in any of the last three years and there was no significant reduction in coverage from the prior year.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Workers’ Compensation

The County participates in the State Workers’ Compensation retrospective rating and payment system. Once the County receives notice of the 2014 claims paid by the Bureau of Workers’ Compensation, the County will reimburse the State for claims paid on the County’s behalf. The payable is reclassified from claims payable to intergovernmental payable. This plan involves the payment of a minimum premium for administrative services and stop-loss coverage in addition to the actual claim costs for employees injured in 2014. The maintenance of these benefits is accounted for in the Workers’ Compensation internal service fund.

Incurred but not reported claims and premium of $9,891,952 have been accrued as a liability at December 31, 2014, based on an estimate by the County Fiscal Officer’s Office and the Bureau of Workers’ Compensation. The claims liability reported in the workers’ compensation internal service fund at December 31, 2014, is based on the requirements of Governmental Accounting Standards Board Statement No. 30 which requires that a liability for unpaid claims costs, including estimates of costs relating to incurred but not reported claims, be reported. The estimate was not affected by incremental claim adjustment expenses and does not include other allocated or unallocated claims adjustment expenses. Management’s expectation is the claims liability will be paid within one year. Changes in the fund’s claims liability amounts for 2013 and 2014 were as follows:

Balance at Beginning Current Year Claim Balance at of Year Claims Payments End of Year 2012 $9,663,761 $3,335,762 $2,986,158 $10,013,365 2013 10,013,365 2,338,694 2,460,107 9,891,952

Note 24 – Leases

Operating Leases

The County is the lessee in 39 operating lease agreements for various purposes. The aggregate annual rental payments under those agreements for 2014 totaled $6,672,947. The terms of all of these agreements are for ten years or less.

The following is a schedule by years of minimum future rentals on the operating leases as of December 31, 2014:

Internal Governmental Service Enterprise Year Ending December 31, Funds Funds Funds Total

2015 $4,691,162 $58,008 $100,000 $4,849,170 2016 2,747,397 58,008 100,000 2,905,405 2017 1,697,487 53,174 100,000 1,850,661 2018 1,611,188 0 100,000 1,711,188 2019 1,360,298 0 100,000 1,460,298 2020 260,086 0 100,000 360,086 Total minimum lease payments $12,367,618 $169,190 $600,000 $13,136,808

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Capital Leases

The County has entered into several lease agreements for various purposes. These lease obligations meet the criteria of a capital lease and have been recorded on the government-wide statements. The leases have been capitalized in the amount of $588,297,950, the present value of the minimum lease payments at the inception of the lease in governmental activities.

The assets acquired through capital leases are as follows:

Governmental Funds Land $51,251,307 Building 564,452,065 Equipment 213,078 Total Original Cost 615,916,450 Less: Accumulated Depreciation (27,618,500) Total Book Value as of December 31, 2014 $588,297,950

The following is a schedule of the future long-term minimum lease payments required under the capital lease and present value of the minimum lease payments is as follows:

Governmental Year Ending December 31, Funds 2015 $42,517,524 2016 44,368,564 2017 41,390,309 2018 40,370,890 2019 40,314,265 2020-2024 202,871,922 2025-2029 124,228,610 2030-2034 27,790,387 2035-2039 30,682,833 2040 3,222,584 Total 597,757,888 Less: Amount Representing Interest (172,014,914) Present Value of Net Minimum Lease Payments $425,742,974

Capital lease payments have been reclassified and are reflected as debt service in the fund financial statements for the general fund, the human services special revenue fund and the GCHI capital projects fund. These expenditures are reflected as program expenditures on a budgetary basis.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 25 – Related Organizations

Cuyahoga County Public Library (the Library)

The Cuyahoga County Executive and the Common Pleas Judges appoints the seven member Board of Trustees for the Library. Appointments are for seven year terms and members serve without compensation. The Library determines and operates its own budget. Control and management of the Library is governed by sections 3375.33 to 3375.39 of the Ohio Revised Code. The Library provides no financial benefit to or burden on the County.

Cleveland Metropolitan Park District (the District)

The County Probate Court appoints the three member Board of Park Commissioners for the District. Appointments are for three year terms. The District is dedicated to the conservation of natural resources and wildlife, while providing various recreational facilities and services. These activities are directly controlled by the Board of Park Commissioners through the budgetary process. The District provides no financial benefit to or burden on the County.

Cuyahoga County Arts and Culture District (the District)

The District receives its funding from a voted thirty-cent tax upon a pack of cigarettes. The tax was approved in November 2006 and was effective February 2007 for period of ten years. The District is responsible for granting the tax proceeds to support the operating or capital expenses of arts or cultural organizations. The District is a legally separate organization that began operating in 2007. The County does appoint the voting majority of the Board of the District but is not able to impose its will. The District provides no financial benefit to or burden on the County.

Cuyahoga County Land Bank (the Land Bank)

The Land Bank receives its funding from interest and penalty on current delinquent property taxes which is used for its operations and to pay for principal and interest on debt issued by the Land Bank. The Land Bank also receives grant monies to operate. The Land Bank was created to demolish condemned structures and maintain the property on abandoned parcels. The land is held until it can be used for productive purposes. The Land Bank is a legally separate nonprofit corporation that began operating in 2009. While the County can appoint a voting majority of the Board, certain members are subject to approval of the majority of the chief executive officers of all municipal corporations. The County is therefore not able to impose its will, and the Land Bank provides no financial benefit to or burden on the County.

Cuyahoga Community College (the College)

The Cuyahoga County Executive appoints the majority of the nine member Board (six Trustees with the remaining three being appointed by the Governor). The College is an institution of higher education and is legally separate and fiscally independent of other State and local governments. The College has no financial benefit/burden relationship with the County.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 26 – Jointly Governed Organizations

Northeast Ohio Areawide Coordinating Agency

Northeast Ohio Areawide Coordinating Agency (NOACA) was created by the County Commissioners of Cuyahoga, Lake, Lorain and Medina Counties and is responsible for transportation and environmental planning in the five county region. NOACA is controlled by 44 members including the following 4 members from Cuyahoga County: the County Executive, the Director of Public Works, a County Executive Appointee, and a County Council Member. The board exercises total control over the operation of the corporation including budgeting, appropriating, contracting and designating management. Each participant's degree of control is limited to its representation on the board. In 2014, the County contributed $165,637.

North East Ohio Network (N.E.O.N.)

N.E.O.N. is a council of governments formed to provide a regional effort in administering, managing and operating programs for certain individuals with developmental disabilities. Participating counties include Cuyahoga, Ashtabula, Columbiana, Geauga, Lorain, Lake, Mahoning, Medina, Portage, Richland, Stark, Summit, Trumbull and Wayne Counties. N.E.O.N.’s operation is controlled by their board, which is composed of the superintendents of the Board of Developmental Disabilities of each participating county. Each participant’s degree of control is limited to its representation on the Board. N.E.O.N. adopts its own budget, authorizes expenditures, and hires and fires its own staff. During 2014, N.E.O.N. received funds from various sources and generates additional revenue from providing services such as MUI investigative services, provider compliance reviews, independent provider training, satisfaction survey mailings, service and support administration and family support program administration. The board exercises total control over the operation of the corporation including budgeting, appropriating, contracting and designating management. Each participant's degree of control is limited to its representation on the board. In 2014, the County contributed $2,819,213.

Gateway Economic Development Corporation of Greater Cleveland (Gateway)

In 1990, the County, the City of Cleveland and Gateway Economic Development Corporation of Greater Cleveland (Gateway) entered into a three party agreement which authorized Gateway to construct, own and provide for the operation of a sports facility which included a baseball stadium, an arena and a joint development site. Gateway was incorporated on May 31, 1990, and is a not-for-profit corporation legally separate from any other entity. The five-member board consists of two members appointed by the City, two members appointed by the County Executive and one member appointed by the President of the County Council with concurrence of the Mayor of the City of Cleveland. Each participant’s degree of control is limited to its representation on the Board. Gateway adopts its own budget, authorizes expenditures, and hires and fires its own staff. In 2014, the County did not make a contribution.

The County and Gateway also entered into a revolving loan agreement whereby the County agreed to issue bonds and loan the bond proceeds to Gateway to pay arena construction costs. As part of this agreement, the County issued taxable Economic Development Revenue Bonds of $75 million on September 24, 1992, and $45 million on February 1, 1994. In February 2004, the County refinanced the 1992 variable rate Gateway Economic Development Bonds. In 2010, the County refinanced the 1994 Gateway Economic Development Bonds and the variable rate 2004B Gateway Arena Project Series Refunding Bonds.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The County, Gateway and Destination Cleveland (formerly the Convention and Visitors Bureau of Greater Cleveland) entered into a cooperative agreement on September 15, 1992, which included a provision that allowed a credit to be given to Gateway for the incremental amount Destination Cleveland receives from the County Transient Occupancy Tax to use as payment to the County for the bonds issued. This agreement was amended on December 22, 1998, to redefine the annual incremental credit and to provide for the deposit by Destination Cleveland for the years 1994 through 1998. The County received $1 million from this agreement during the year ended December 31, 1999. The County received $.2 million during each subsequent year, until 2008 when it increased to $1.4 million, subject to certain adjustments.

Western Reserve Area Agency on Aging (Area Agency)

Area Agency is responsible for planning, coordinating and administering State and federal funded programs and services for older adults. It is one of twelve regional area agencies on aging designated by the Ohio Department of Aging as authorized by the federal Older Americans Act. The eighteen-member board consists of four members appointed by Cuyahoga County, one member apiece appointed by the Counties of Geauga, Medina, Lake and Lorain and ten at large appointees. The board exercises total control over the operation of the corporation including budgeting, appropriating, contracting and designating management. Each participant's degree of control is limited to its representation on the board. In 2014, the County did not make a contribution.

Cleveland-Cuyahoga County Port Authority (Port Authority)

The Port Authority was created under the Ohio Revised Code. The Port Authority conducts port operations and economic development activities. The nine-member Board of Directors consists of three appointed by the Cuyahoga County Executive and six appointed by the City of Cleveland. The board exercises total control over the operation of the corporation including budgeting, appropriating, contracting and designating management. Each participant's degree of control is limited to its representation on the board. In 2014, the County contributed $95,182.

Greater Cleveland Regional Transit Authority (Authority)

The Authority is an independent, special purpose political subdivision of the State of Ohio with powers derived from Sections 306.30 through 306.71 of the Ohio Revised Code. The Authority has territorial boundaries and jurisdiction coextensive with the territorial boundaries of Cuyahoga County. The Authority was created on December 30, 1974, by ordinance of the Council of the City of Cleveland and by resolution of the Board of County Commissioners of Cuyahoga County, and became operational on September 5, 1975. Under Ohio law, the Authority is authorized to levy a sales and use tax for transit purposes, including both capital improvement and operating expenses upon approval by a majority of the electorate residing within the territorial boundaries of the Authority. On July 22, 1975, the voters of the County approved a 1 percent sales and use tax with no limit on its duration. The Authority is managed by a ten-member Board of Trustees and provides directly, or under contract, virtually all mass transportation within the County. Of its ten-member board, four of the members are appointed by the Mayor of the City of Cleveland with the consent of City Council; three members, one of whom must reside in the City of Cleveland, are appointed by the County Executive; the remaining three members are elected by an association of suburban mayors, city managers, and township trustees. None of the participating governments appoints a majority of the Authority’s board and none has an ongoing financial interest or responsibility. None of the participating governments provided any significant financial transactions with the Authority during 2014. Each participant's degree of control is limited to its representation on the board. The board exercises total control over the operation of the corporation including budgeting, appropriating, contracting and designating management.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Northeast Ohio Regional Sewer District (District)

The District, a political subdivision of the State of Ohio, was created by Order of the Cuyahoga County Court of Common Pleas and commenced operations on July 18, 1972, under statutory provisions of the Ohio Revised Code. The District provides wastewater treatment and interceptor sewer facilities for the region composed of the City of Cleveland and 61 suburban communities. The District is governed by its Board of Trustees. The Board consists of seven members - each of whom serves a five-year term - who are appointed as follows: (i) two by the Mayor of the City of Cleveland; (ii) two by council of governments (the "Suburban Council") composed of representatives of all the suburban communities served by the system; (iii) one by the Cuyahoga County Executive; (iv) one by the appointing authority of the sub-district with the greatest sewage flow (currently the Mayor of the City of Cleveland); (v) and one by the appointing authority of the sub- district with the greatest population (currently the Suburban Council). Accordingly, the Mayor of the City of Cleveland and Suburban Council each currently appoint three members of the Board. The annual budget is submitted to Cuyahoga County for informational purposes only and does not require its approval. Each participant's degree of control is limited to its representation on the board. The board exercises total control over the operation of the District including budgeting, appropriating, contracting and designating management. In 2014, the County did not make a contribution.

Note 27 – Significant Commitments

Encumbrances

Encumbrances are commitments related to unperformed contracts for goods or services. Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At year end the amount of encumbrances expected to be honored upon performance by the vendor in the next year were as follows:

Governmental Funds: General $22,907,161 Human Services 40,234,078 Health and Human Services Levy 8,143,732 County Board of Developmental Disabilities 5,786,197 Children Services 20,017,012 Convention Center Hotel Construction 9,786,714 Other Governmental Funds 117,690,100 Total Governmental Funds 224,564,994 Proprietary Funds: Sanitary Sewer 7,567,180 Other Enterprise Funds 490,578 Internal Service Funds 13,628,484 Total Proprietary Funds 21,686,242 Total $246,251,236

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Contractual Commitments

At December 31, 2014, the County’s significant contractual commitments consisted of the following:

Contract Amount Remaining Project Amount Paid on Contract

Road and Bridge Projects Bellair Road Bridge #24 $2,279,945 $98,704 $2,181,241 Belvoir Boulevard 3,614,497 3,047,424 567,073 Columbus Lift Bridge 30,323,619 29,691,921 631,698 East 105th and MLK Boulevard 6,957,015 6,301,821 655,194 Highland Road 2,769,416 2,410,113 359,303 Ridge Road 8,309,354 6,163,389 2,145,965 Rockside Road 3,936,910 3,784,350 152,560 Snow Road 5,191,490 4,929,864 261,626 VanAken and Warrensville Center Road 8,372,654 3,235,573 5,137,081 Total Road and Bridge Projects 71,754,900 59,663,159 12,091,741

Sanitary Sewer Projects East 105th and MLK Boulevard 2,744,045 2,743,639 406 Broadview Drill Drop 322,989 251,481 71,508 Emergency Repairs 3,090,235 2,086,137 1,004,098 Jetting and TV 1,670,690 169,305 1,501,385 Noble Road 2,430,452 989,687 1,440,765 Total Sanitary Sewer Projects 10,258,411 6,240,249 4,018,162 Convention Center Hotel Project 228,891,823 51,573,635 177,318,188 Total Contractual Commitments $310,905,134 $117,477,043 $193,428,091

$16,612,499 of the remaining commitment amounts were encumbered at year end.

Note 28 – Subsequent Events

Loan Issuances

On April 14, 2015, Council passed Resolution R2015-0061, authorizing a loan application to Ohio Environmental Protection Agency Water Pollution Control Loan Fund in the amount of $1,875,000 for a new sanitary sewer structure located in Olmsted Township.

On May 12, 2015, Council passed Resolution R2015-0081, authorizing an Economic Development Fund Accelerated Growth Loan in the amount not-to-exceed $905,000 to 3550 West Market St., LLC for assistance to purchase property located at 9200 Noble Park Drive, Brecksville.

On June 9, 2015, Council passed Ordinance O2015-0008 which repealed the Cuyahoga County Savings Account program and required an orderly winding down of the program for program participants.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Note 29 – The MetroHealth System (Dollars in Thousands)

The component unit financial data report in the financial statements includes MetroHealth System and all of its component units. Certain of the following MetroHealth System note disclosures do not include the MetroHealth System’s component unit information.

Significant Accounting Policies

Reporting Entity The MetroHealth System (the System) is the public health care system for Cuyahoga County, Ohio (the County). The financial statements include the MetroHealth Medical Center, a short-term acute care and long-term rehabilitation facility; MetroHealth Centers for Skilled Nursing Care, consisting of the Elisabeth Severance Prentiss Center for Skilled Nursing Care, and several urban and suburban primary care health sites.

The System is organized and operated by its board of county hospital trustees (the Board) pursuant to Chapter 339 of the Ohio Revised Code. Until 2010, members of the Board were jointly appointed by the Board of County Commissioners of the County, and the senior judges of the probate and Common Pleas Courts of the County. Effective January 2011, the County voters established a new form of government by charter (the Charter). Under the Charter, future members of the Board are appointed by the County Executive together with the senior judges of the Probate and Common Pleas Courts of the County, subject to confirmation by the County Council. In order to support the general operations of the System, the County approved funding of $40,024 for 2014. The County has also approved an appropriation of approximately $40,000 for 2015. The System is exempt from federal income taxes as a governmental entity.

Discretely Presented Component Unit The component unit column in the entity-wide financial statements includes the financial data of the System’s component unit, the Metrohealth Foundation, Inc. (Foundation).

Metrohealth Foundation, Inc. The Metrohealth Foundation, Inc. (the “Foundation”) is a legally separate entity. The Foundation is a not-for-profit organization supporting the System. The Foundation acts primarily as a fundraising organization to supplement the resources that are available to the System in support of its programs. Although the System does not control the timing or the amount of receipts from the Foundation, the majority of resources, or income thereon, which the Foundation holds and invests, is restricted to support the activities of the System. Because these restricted resources held by the Foundation can only be used by, or for the benefit of the System, it is considered a component unit of the System. Complete financial statements of the Foundation can be obtained by writing to the MetroHealth Foundation, 2500 MetroHealth Drive, Cleveland, Ohio 44109.

In addition, MHS Holdings LLC and MHS Purchasing LLC are presented as a blended entity component unit whose financial activity is included with the activities of the System. The System owns 99 percent of MHS Holdings LLC and is the sole member of MHS Purchasing LLC. Although these entities are legally separate from the System, they are reported as if they were part of the System because their sole purpose is to acquire and own investment interests for the System.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Basis of Accounting The System reports only business-type activities, which require the following financial statements and management discussion and analysis:

 Management’s discussion and analysis

 Basic financial statements including a statement of net position, statement of activities and statement of cash flows, for the System as a whole

 Notes to the Financial Statements

The System is accounted for as a proprietary fund (enterprise fund) using the flow of economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and deferred outflows of resources and all liabilities and deferred inflows of resources associated with the System’s operations are included on the statement of net position. Revenue is recognized in the period in which it is earned and expenses are recognized in the period in which incurred.

The System’s fiscal year is the calendar year. Pursuant to Ohio law, the System submits a budget to the County for approval by November 1 of each year. The fundamental purpose of the budget is to plan for an expected level of operations and to provide management with a toll to control deviation from such a plan. The budget is prepared on an accrual basis.

Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and deferred outflows of resources and all liabilities and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Statement of Activities The System recognizes as operating revenues those transactions that are major or central to the provision of health care services. Operating revenues include those revenues received for direct patient care, grants received from organizations as reimbursement for patient care, and other incidental revenue associated with patient care. Operating expenses include those costs associated with providing patient care including costs of professional care, operating the hospital facilities, administrative expenses, and depreciation and amortization. Nonoperating revenues include County funding, investment income and special purpose grants and donations, primarily research. Nonoperating expenses include interest expense and expenses from special purpose funds for research-related activities.

Net Patient Service Revenue Net patient service revenue is reported at the estimated net realizable amounts from patients, third-party payors, and others for services rendered, including estimated retroactive adjustments under reimbursement agreements with third-party payors, estimated allowances for uncollectible accounts and uncompensated care allowances. Retroactive adjustments are accrued on an estimated basis in the period the related services are rendered and adjusted in future periods as final settlements are determined. Net patient service revenue is reported net of the provision for uncollectible accounts of $41,439 in 2014.

The System has agreements with third-party payors that provide for payment at amounts different from established charge rates. A summary of the basis of payment by major third-party payors follows:

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Medicare and Medicaid Inpatient acute care, behavioral medicine, rehabilitation, skilled nursing and outpatient services rendered to Medicare and Medicaid program beneficiaries are paid at prospectively determined rates. These rates vary according to a patient classification system that is based on clinical, diagnostic and other factors. The medical center also receives reimbursement for direct and indirect medical education costs, disproportionate share and unreimbursed Medicare bad debts.

The System is reimbursed at tentative rates with final settlement determined after submission of annual cost reports by the System and audits thereof by the Medicare and Medicaid fiscal intermediaries. The System’s classification of patients under the Medicare and Medicaid programs and the appropriateness of their admission are subject to an independent review. Differences between the estimated amounts accrued at interim and final settlements are reported in the statement of activities in the year of settlement. The System recorded favorable adjustments to net patient revenue of $8,091 in 2014 due to prior year retroactive adjustments to amounts previously estimated and changes in estimates.

Net revenue from the Medicare and Medicaid programs accounted for approximately 28 percent and 38 percent, respectively, of the System’s net patient service revenue for the year ended December 31, 2014. Medicaid revenue in 2013 included revenue from the MetroHealth Care Plus (MHCP) program (see discussion below). Laws and regulations governing the Medicare and Medicaid programs are complex and subject to interpretation. Compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties and exclusion from the Medicare and Medicaid programs. As a result, there is at least a reasonable possibility that recorded estimates could change by a material amount in the near term. Management believes that adequate provision has been made in the financial statements for any adjustments that may result from final settlements.

Effective February 5, 2013, the System was notified by the Ohio Department of Medicaid that it was approved as a subgrantee of the 1115 Medicaid Waiver program called MetroHealth Care Plus (MHCP). MHCP was a pilot program that essentially served as an early expansion of Medicaid in Cuyahoga County. MHCP was the only 1115 Waiver program in the State of Ohio. Services provided under MHCP were reimbursed on a cost basis and recognized as net patient service revenue and services provided by entities outside of MetroHealth were recognized as purchased services in the statement of activities.

Enrollment in the MHCP program was capped at 30,000 patients and as of December 31, 2013, the enrollment in the program was 28,260. The System recognized approximately $70,000 in Federal Medicaid dollars related to MHCP as net patient service revenue in 2013. MHCP was terminated in April 2014 and all participants meeting Medicaid eligibility were retroactively converted to Medicaid with an effective date of January 1, 2014. The System recognized net patient service revenue of approximately $970 in 2014 for the remaining MHCP participants converted to Medicaid. At the end of 2014, the System had an amount payable of $1,326 related to the program that is included in estimated amounts due to third-party payors in the statement of net position.

Other Payors The System has also entered into payment agreements with certain commercial insurance carriers, health maintenance organizations and preferred provider organizations. The basis for payment under these agreements includes prospectively-determined rates-per-discharge, discounts from established charges and prospectively-determine per diem rates.

Upper Payment Limit In September 2001, the State of Ohio Supplemental Upper Payment Limit program for Public Systems (UPL) was approved by the Centers for Medicare and Medicaid Services (CMS). This program provides access to available federal funding up to 100 percent of the Medicare upper payment limits

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

for inpatient hospital services rendered by Ohio Public Hospitals to Ohio Medicaid consumers. At December 31, 2014, $15,829 was due to the System and recorded on the statement of net position in other receivables. The amount recorded in net patient service revenue for UPL by the System was $41,476 in 2014. The State of Ohio discontinued the Program’s required contributing match for participants as of June 30, 2009. Effective July 1, 2009, the State began assessing a franchise fee to hospitals to fund healthcare programs, including the UPL program. The System incurred a franchise fee expense of $11,087 in 2014 and recorded the amount as an operating expense in the other expenses category in the statement of revenues, expenses, and change in net position. The System’s franchise fee liability payable to the State of Ohio at December 31, 2014, was $5,856 and is recorded on the statement of net position in other current liabilities.

Disproportionate Share As a public health care provider, the System renders services to residents of the County and others regardless of ability to pay. The System is classified as a disproportionate share provider by the Medicare and Medicaid programs due to the volume of low-income patients it serves. Accordingly, the System receives additional payments from these programs as a result of this status totaling $27,414 in 2014. These amounts are included in net patient services revenue and Hospital Care Assurance (HCAP) revenue of $24,140 in 2014, reduced by HCAP assessments paid by the System of $4,032 in 2014. At December 31, 2014, the System had a receivable of $24,140 and a payable amount of $3,864. The receivable and payable are included in other receivables and other current liabilities, respectively, in the statement of net position.

Charity Care Throughout the admission, billing and collection processes, certain patients are identified by the System as qualifying for charity care. The System provides care to these patients without charge or at amounts less than its established rates. The charges foregone for charity care provided by the System, totaling $126,439, which represents 4.9 percent of gross charges in 2014, are not reported as revenue. The System accepts certain indigent Ohio residents and all residents from the County regardless of their ability to pay. The decrease in charges foregone for charity in 2014 is due primarily to changes in Ohio’s Medicaid program in 2014, where additional residents now meet eligibility requirements.

Medicare and Medicaid Electronic Health Records (EHR) Incentive Programs The American Recovery and Reinvestment Act of 2009 provides for Medicare and Medicaid Incentive Programs beginning in Federal fiscal year 2011 for eligible hospitals and professionals that are meaningful users of certified EHR technology, as defined by the Federal Register. The System has implemented certified EHR technology that has enabled it to demonstrate its meaningful use and to qualify for the incentive programs. Incentive payments received for both the Medicare and Medicaid EHR incentive programs are estimates based upon data from prior year’s cost reports. Final settlements are determined after the submission of the current annual cost reports and subsequent audits by the fiscal intermediary. Incentive payments received for the professional programs are set by CMS. The hospital EHR Incentive Programs will continue through 2015, while the professional incentive programs continue through 2021. Beginning in 2015, hospitals and professionals that are not meaningful users or certified users of EHR technology will be subject to reduced Medicare and Medicaid payments. The System accounts for EHR incentive funds using the grant accounting model. Under this model, the System records EHR incentive revenue when it is reasonably assured that it will meet the meaningful use criteria for the required reporting period and that the grant will be received. EHR Incentive funds are included in other revenue in the accompanying statement of activities and related receivables and payables are included in other receivables and in estimated amounts due to third-party payors, respectively, the accompanying statement of net position.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The System successfully registered for the hospital Medicare EHR Incentive Program and first completed the attestation process on September 6, 2012, after demonstrating the ninety days of continuous use as a meaningful user. For the year ended December 31, 2014, the System recorded Medicare EHR revenue of $1,085. At December 31, 2014, the related receivable is $1,085.

The System successfully registered for the hospital Ohio Medicaid EHR Incentive Program and first completed the attestation process in July, 2011. For the year ended December 31, 2014, the System has recorded $255 for Medicaid EHR incentive. At December 31, 2014, the related receivable is $0. At December 31, 2014, the related payable is $619.

The System successfully registered its professionals, on an individual basis, for the professional Ohio Medicare EHR Incentive Program and completed the first attestation process at various points during 2012. During the year ended Decemer 31, 2014, the System recorded Medicare EHR revenue of $46. At December 31, 2014, the related receivable for Medicare EHR is $128.

The System successfully registered its professionals, on an individual basis, for the professional Ohio Medicaid EHR Incentive Program and completed the first attestation process at various points during 2011. During the year ended December 31, 2014, the System recorded $5,349 for Medicaid EHR incentive. At December 31, 2014, the related receivable for Medicaid EHR is $866.

Grants The System receives financial assistance from federal and state agencies in the United States in the form of grants. The expenditure of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies.

Other such audits could be undertaken by federal and state granting agencies and result in the disallowance of claims and expenditures; however, in the opinion of management, any such disallowed claims or expenditures will not have a material effect on the overall financial position of the System.

Pooled Cash and Cash Equivalents The System considers cash in its commercial checking accounts to be “equity in pooled cash and cash equivalents.”

Supplies Medical and pharmaceutical supplies are stated at the lower of cost or market value on a first-in first-out basis.

Investments The System generally records its investments at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Unrealized gains and losses on investments are included in net investment income in the statement of activities.

The net realized loss on investments of $758 in 2014 is the difference between the proceeds received and the amortized cost of investments sold and is included in net investment income in the statement of activities.

Restricted Assets Restricted assets are cash and cash equivalents and investments whose use is limited by legal requirements. Investments under bond indenture agreements represent amounts required by debt instruments to pay bond principal and interest and approved projects. Restricted cash and cash equivalents and special purpose investments represent monies received from donors or grantors to be used for specific purposes, primarily research. The System has elected to use restricted assets before unrestricted assets when an expense is incurred for a purpose for which both resources are available.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Fundraising Revenues Gifts, grants and program income result from fundraising activities of the Foundation. Though donations are solicited for the Foundation, donors occasionally make their gifts directly to the System.

Contributions The Foundation recognizes contributions as revenue in the period in which the pledge (promise to give) is received. The Foundation recognizes donated services as contributions if the services (a) create or enhance non-financial assets or (b) require specialized skills, are performed by people with those skills, and would otherwise be purchased by the Foundation.

Annuity Payment Obligations The Foundation has entered into gift annuity agreements which include provisions requiring the Foundation to pay periodic fixed payments to beneficiaries during their lifetimes. Charitable gift annuities differ from other charitable giving options in that the annuity is a general obligation of the Foundation. Accordingly, if the assets of the gift are exhausted as a result of required payments to beneficiaries, unrestricted assets of the Foundation will be utilized to fund future payments.

Income Taxes The Foundation is an Ohio nonprofit corporation and was granted tax-exempt status under Section 501(c)(3) of the Internal Revenue Code and is exempt from income tax on related income pursuant to Section 501(a) of the Code. The Foundation is required to pay taxes on unrelated business income earned by the Foundation.

Capital Assets Capital assets are stated at cost and contributed capital assets are stated at their fair value at the date of contribution. Expenditures for equipment must exceed $2.5 per unit and expenditures for renovations must exceed $10 in order from them to be capitalized. Expenditures that substantially increase the useful lives of existing assets are capitalized. Routine maintenance and repairs are expensed as incurred. Depreciation and amortization of assets recorded under capital lease (straight-line method) are provided in amounts sufficient to amortize the cost of the related assets over their estimated useful lives. The following are the most commonly used estimated useful lives:

Buildings 25 - 40 Years Building Improvements 5 - 20 Years Equipment 3 - 15 Years Land Improvements 5 - 15 Years Vehicles 4 Years

The asset and accumulated depreciation are removed from the related accounts when the asset is disposed. Any income or loss resulting from this disposal is recorded in the statement of activities.

Net Position The System classifies its net position into three categories as follows:

Net Investment in Capital Assets – consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds, other debt, and deferred inflows and outflows of resources that are attributable to the acquisition, construction or improvement of those assets.

Restricted Net Position – results when constraints placed on use of the net position are either externally imposed by creditors, grantors, or contributors, or imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position – consists of the remaining net position that does not meet the criteria above. - 103 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Bond Discounts Amortization expense related to bond discounts was $18 in 2014. These amounts are included in interest expense in the statement of activities. Accounting guidance requires amounts to be amortized utilizing the effective interest method. The difference between the two amortization methods is immaterial to the financial statements.

Cost of Borrowing Interest costs incurred on debt during the construction or acquisition of assets are capitalized as a component of the cost of acquiring those assets. Capitalized interest of $884 was recorded in construction in progress as opposed to interest expense for 2014. Construction in progress is transferred to capital assets when assets are substantially completed and amortization of capitalized interest is accounted for in the same manner as other components of assets cost and included in depreciation expense.

The System has entered into various interest-rate swap agreements. The interest-rate swap agreements are carried at fair value in the statement of net position. These derivative instruments are not effective hedging instruments; therefore, gains and losses are recognized in the statement of activities during the period of change as adjustments to investment income on the related debt.

Concentrations of Credit Risk Financial instruments that potentially subject the System to concentrations of credit risk consist principally of cash and cash equivalents, patient accounts receivable and investments.

The System places its cash and cash equivalents with high credit quality financial institutions. The System’s investments include money market funds, U.S. Treasury bills and notes, U.S. agency obligations, commercial paper and corporate bonds.

Concentration of credit risk relating to patient accounts receivable is limited to some extent by the diversity and number of the System’s patients and payors. Patient accounts receivable consist of amounts due from government programs, commercial insurance companies, private pay patients and other group insurance programs. Excluding governmental programs, no payor source represents more than 10 percent of the System’s patient accounts receivable. The System maintains a provision for uncollectible accounts based on the expected collectability of patient accounts receivable.

Reclassifications Certain reclassifications of 2013 amounts have been made to conform to the 2014 presentation.

In addition, the Foundation had a policy whereby unrealized gains and losses from endowed investments were maintained as permanently restricted unless the fair value of permanently restricted net position fell below corpus. Based upon the provisions of the Uniform Prudent Management of Institutional Funds Acts (UPMIFA), management made a determination that the cumulative unrealized gains reflected within permanently restricted net position should be reclassified from permanently restricted to temporarily restricted net position. As result, $386 and $1,540 in unrealized gains were reclassified from permanently restricted to temporarily restricted net position as of January 1, 2013, and December 31, 2013, respectively.

In addition, $38 in contributions were reclassified from temporarily restricted to permanently restricted gifts for the year ended December 31, 2013, due to new information received by management.

Deposits and Investments

Deposits All monies are deposited with the System’s banks or trust companies designated by the Board of Trustees. Funds not needed for immediate expenditure may be deposited in interest bearing or non-interest bearing accounts.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Custodial Credit Risk Custodial credit risk is the risk that, in the event of bank failure, the System’s deposits might not be recovered. The FDIC insurance through December 31, 2014, for funds held in interest bearing accounts is $250 per depositor per category of legal ownership. Ohio Revised Code requires that deposits in excess of FDIC insured amounts are collateralized. The System’s investment policy does not address custodial credit risk.

The System’s bank deposits at December 31, 2014, totaled $60,071 and were subject to the following categories of custodial risk: 2014 Uncollateralized $59,529 Collateralized with securities held by the pledging institution's trust department, but not in the System's name 42 Total amount subject to custodial risk 59,571 Amount insured 500 Total bank balances $60,071

Investments The System’s investment policy authorizes the System to invest in the following investments:

 Securities and obligations of the US Treasury and other federal agencies or instrumentalities.

 Time certificates of deposit or savings accounts and deposit accounts.

 Municipal and state bonds

 No-loan money market mutual funds investing in items listed above.

 Commercial paper that constitutes unsecured short-term debt on an entity defined in Division (D) of Section 1705.01 of the Ohio Revised Code and matures no later than 270 days from purchase date, the aggregate value of the commercial paper does not exceed 10 percent of the aggregate value of the outstanding paper of the entity, the paper is rated by at least two nationally recognized standard rating services (NRSRS) and is rated in the highest classification and the entity has assets exceeding five hundred million dollars, and total combined investments in commercial paper and bankers acceptances does not exceed 25 percent of the System’s average aggregate investment portfolio.

 Bankers acceptances that mature no later than 180 days from purchase, the obligations are eligible for purchase by the Federal Reserve System, the issuer has a minimum “AA” long-term debt rating by a majority of NRSRS agencies and any single obligation will not exceed 5 percent of the System’s total average portfolio, and the total combined investments in bankers acceptances and commercial paper does not exceed 25 percent of the System’s average aggregate investment portfolio.

 Notes issued by corporations incorporated in the United States and operating in the United States and the notes are rated in the second highest or higher category by at least two NRSRS at the time of purchase, mature in two years or less from the date of purchase and cannot exceed 15 percent of the System’s total average portfolio.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

 No load money market mutual funds rated in the highest category at the time of purchase by at least one NRSRS and consisting exclusively of obligations in the US Treasury and other federal agencies or instrumentalities and commercial paper listed above.

Derivative instruments In previous periods, the System entered into two separate and distinct interest rate swap agreements (Swaps) with two counter-parties. The Swaps have notional amounts, maturity schedules and other features that match the System’s two series of underlying variable rate bonds. The Swaps obligate the System to make fixed rate payments to the counter-parties and obligate the counter-parties to make variable-rate payments to the System. The Swaps are accounted for as “investments” on the System’s financial statements pursuant to GASB 53. However, the Swaps were intended, and in fact function, as risk management instruments for current obligations of the System. Consequently, the System does not consider them to be subject to the requirements of the System’s investment policy.

As of December 31, 2014, the fair values of the System’s investments and their ratings by Standard & Poor’s were as follows: Investment Maturities Less than 2014 1 Year 1 - 5 Years Rating U.S. Government Agencies $272,074 $53,894 $218,180 AA+ Federal National Mortgage Association and Federal Home Loan Mortgage Corporation (Federal Pools) 19 0 19 AA+ Commercial Paper 35,984 35,984 0 A-1 Corporate Bonds 19,355 19,355 0 AAA Total Investments $327,432 $109,233 $218,199

Deposits totaling $55,513 are included in investments on the statement of net position at December 31, 2014.

The System’s carrying amounts of deposits and investments at December 31, 2014, are as follows:

2014 Deposits $60,176 Investments 327,432 Totals $387,608

The difference between the bank balances and financial statement carrying amounts represent outstanding checks payable and normal reconciling items.

Interest Rate Risk The System’s investment policies limit investment portfolios to maturities of five years or less. All of the System’s investments at December 2014 have effective maturity dates of less than five years.

Credit Risk The federal mortgage pools are investments that were made according to policy at the time.

Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the System will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The System’s investment policy does not address custodial credit risk. The System is not exposed to custodial credit risk as it relates to its investment portfolio.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Concentration of Credit Risk Concentration of credit risk is the risk of loss attributable to the magnitude of investments in any single issuer. The System holds 37 percent of its portfolio in Federal National Mortgage Association (Fannie Mae) issues, 21 percent in Federal Home Loan Mortgage Corporation (Freddie Mac) issues, 6 percent in Federal Farm Credit Bank issues and 5 percent in US Bank commercial paper.

The Foundation As of December 31, 2014, the fair values of the Foundation’s investments were as follows:

2014 Exchange Traded Funds $3,126 Money Market Funds 2,762 Pooled Investment Fund 1,839 Mutual Funds 31,656 Common Stock 24 Limited Partnership Interest 1,333 Total Investments $40,740

The Foundation’s net investment income for the year ended December 31, 2014, consisted of the following:

2014 Interest and Dividends $1,252 Net Realized Gains 739 Net Change in Unrealized Gains 86 Less Investment Management Fees (83) Net Investment Income $1,994

The Foundation’s investments had cumulative unrealized gains of $6,464 and cumulative unrealized losses of $131 at December 31, 2014.

Capital Assets

The following table summarizes changes in the capital assets of the System for the years ended December 31, 2014:

Balance Balance 12/31/13 Additions Reductions 12/31/14

Nondepreciable Capital Assets Land $10,499 $64 $0 $10,563 Construction in Progress 17,276 41,409 (35,225) 23,460 Total Nondepreciable Capital Assets $27,775 $41,473 ($35,225) $34,023

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Balance Balance 12/31/13 Additions Reductions 12/31/14

Depreciable Capital Assets Land Improvements $12,898 $0 $0 $12,898 Buildings and Fixed Equipment 566,526 7,120 (20) 573,626 Equipment 340,115 26,945 (881) 366,179 Total Depreciable Capital Assets 919,539 34,065 (901) 952,703 Total Capital Assets 947,314 75,538 (36,126) 986,726

Less Accumulated Depreciation Land Improvements (8,242) (541) 0 (8,783) Buildings and Fixed Equipment (391,983) (15,965) 20 (407,928) Equipment (261,030) (20,341) 816 (280,555) Total Accumulated Depreciation (661,255) (36,847) 836 (697,266) Total Depreciable Capital Assets, Net 258,284 (2,782) (65) 255,437 Capital Assets, Net $286,059 $38,691 ($35,290) $289,460

Total depreciation and amortization expense related to capital assets for 2014 was $36,847.

Long-term Debt

Original issue amounts and interest rates of the County’s debt issues were as follows:

Original Year of Debt Issue Issue Interest Rate Maturity 1997 Hospital Improvement and Refunding Revenue Bonds $70,000 4.6 - 5.6 % 2027 2005 Hospital Improvement and Revenue Bonds 74,535 Variable 2035 2009B Hospital Facilities Revenue Bonds 75,000 8.2 2040 2011 Hospital Refunding Revenue Bonds 67,455 3.2 2019 2012 Hospital Refunding Revenue Bonds 24,710 Variable 2033

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Changes in the System's long-term obligations during the year ended December 31, 2014, consist of the following:

Amounts Outstanding Outstanding Due in 12/31/13 Additions Reductions 12/31/14 One Year Revenue Bonds 1997 Hospital Improvement and Refunding $17,600 $0 $0 $17,600 $0 2005 Hospital Improvement 71,705 0 425 71,280 71,280 2009B Hospital Facilities 75,000 0 0 75,000 0 2011 Hospital Refunding 51,190 0 7,875 43,315 8,125 2012 Hospital Refunding 23,925 0 815 23,110 845 Unamortized discount (235) 0 (18) (217) 0 Total Revenue Bonds 239,185 0 9,097 230,088 80,250 Other Long-Term Obligations Loan Obligation - Cuyahoga County Sanitary Engineering 29 0 5 24 6 Capital Leases 6,288 1,577 1,128 6,737 1,195 Total Other Long-Term Obligations 6,317 1,577 1,133 6,761 1,201 Total $245,502 $1,577 $10,230 $236,849 $81,451

Effective February 1, 1997, Cuyahoga County, acting by and through the Board of Trustees of The MetroHealth System, issued $70,000 of System Improvement and Refunding Revenue Bonds Series 1997 (The MetroHealth System Project) (Series 1997). The proceeds of the Series 1997 Bonds were used to refund $20,900 of Series 1989 Bonds; to finance the construction of various improvements and additions to The MetroHealth Medical Center; and to pay costs of issuance of the Series 1997 Bonds. On November 22, 2011, the entire principal amounts of the Series 1997 Bonds maturing in years 2012 through 2019 were refunded with proceeds from the County’s Series 2011 Hospital Refunding Revenue Bonds. The refunding totaled $11,440.

Effective July 1, 2005, Cuyahoga County, acting by and through the Board of Trustees of The MetroHealth System, issued $74,535 of Hospital Improvement and Refunding Variable Rate Demand Revenue Bonds, Series 2005 (The MetroHealth System Project) (Series 2005 Bonds). Proceeds from the 2005 Series Bonds were used to advance refund $56,995 of the outstanding Series 1999 Bonds to pay costs of constructing, renovating, furnishing, equipping, and improving the Old Brooklyn Campus long-term care and skilled nursing facility; and to pay certain costs of issuance of the Series 2005 Bonds. The bonds bear interest at a variable rate (not to exceed 10.0 percent) determined weekly as established by the Remarketing Agent based on current market values for similar bond offerings and are due at various dates until 2035. The interest rate at December 31, 2014, was 0.03 percent.

In connection with the issuance of the Series 2005 Bonds, the System entered into a Reimbursement Agreement with a bank. Under the terms of the Reimbursement Agreement, the System entered into an Irrevocable Letter of Credit issued by a local bank that expired on July 16, 2010. Effective June 1, 2010, the System entered into a new letter of credit reimbursement agreement ("2005 Letter of Credit") that was due to expire on July 16, 2013, with PNC bank (as Administrative Agent) and JPMorgan Chase Bank (collectively referred to as the “Banks”), and PNC Capital Markets as Lead Arranger and Book Runner. Effective December 20, 2012, this agreement was extended and JPMorgan Chase Bank was effectively replaced by Fifth Third Bank. This extension is scheduled to expire on December 16, 2015. The System - 109 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

intends to refinance this debt prior to the expiration of the letter of credit and therefore the related debt, while classified as current at December 31, 2014, is not expected to be paid during 2015.

In the event there is a remarketing drawing on the letter of credit and the tendered bonds have not been remarketed by the 367th day from the Remarketing Drawing, the System has the option to convert the obligation to a term loan in the amount of the unpaid portion of the remarketing drawing. The term loan is payable in twelve equal quarterly installments accruing interest at the base rate plus 2 percent. The base rate is defined as the highest of the Prime Rate, the sum of the Federal Funds Open rate plus .50 percent, the sum of the daily Libor Rate plus 1 percent, or 5 percent per annum. In the event of default, the term loan will be due immediately upon demand by the Banks.

Commencing with the extension dated December 20, 2012, the System is required to pay the Banks a letter of credit fee payable in quarterly installments at variable rates ranging from 70 basis points to 140 basis points depending on the debt rating in effect as of the date the rating report is released. In addition, the System paid to the Lead Arranger an arrangement fee of 7.5 basis points (and an additional $10 administration fee to the Agent Bank). As of December 31, 2014, the letter of credit fee was 95 basis points. There were no amounts outstanding on the letter of credit as of December 31, 2014.

The 2005 Letter of Credit is subject to various financial covenants for debt service coverage, long-term debt to capitalization, cash to debt and days cash on hand.

The July 28, 2005, bond refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $5,179. The unamortized difference ($3,104 at December 31, 2014), reported in the accompanying financial statements as a deferred outflow of resources, is being amortized as an increase to interest expense through the year 2029.

Effective January 28, 2010, Cuyahoga County, acting by and through the Board of Trustees of The MetroHealth System, issued $75,000 of Hospital Revenue Bonds, Taxable Series 2009B, (The MetroHealth System), (Build America Bonds – Direct Payment). Proceeds from the Series 2009B have been and will be used to pay for costs of hospital facilities, including three medical helicopters, the acquisition, construction and equipping of additional multi-specialty ambulatory centers in strategic locations, and additional scheduled equipment purchases and facilities renovations; funding the Bond Reserve Fund for the Series 2009B Bonds; and certain bond issuance costs. The Bonds bear interest at a fixed rate of 8.223 percent per annum and mature at various dates through 2040. As a qualified Build America Bond Issue, per terms of the federal government’s American Recovery and Reinvestment Act of 2009, the System will apply to receive direct payments semiannually from the Secretary of the United States Treasury in the amount of 35 percent of the corresponding bond interest paid. Payments received from the Treasury are recorded in other non-operating revenue.

Effective November 8, 2011, Cuyahoga County, acting by and through the Board of Trustees of The MetroHealth System, issued $67,455 of Hospital Refunding Revenue Bonds, Series 2011, (The MetroHealth System), (Taxable Bonds). Proceeds from the Series 2011 Bonds were used to currently refund the entire principal amount of the Series 1997 Bonds maturing on February 15, 2012, through February 15, 2019; currently refund the outstanding principal amount of the Series 1997A Bonds maturing on and after February 15, 2013; advance refund the principal amount of the Series 1997A Bonds maturing February 15, 2012; currently refund all the outstanding Series 2009A Bonds; and pay certain costs of issuance of the Series 2011 Bonds. The Bonds bear interest at a fixed rate of 3.16 percent per annum and mature at various dates through 2019.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The November 8, 2011, bond refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $5,187. The unamortized difference ($2,951 at December 31, 2014) is reported in the accompanying financial statements as a deferred outflow of resources, and is being amortized as an increase to interest expense through the year 2019.

Effective December 20, 2012, Cuyahoga County, acting by and through the Board of Trustees of The MetroHealth System, issued $24,710 of Hospital Refunding Revenue Bonds, Series 2012, (The MetroHealth System), (Series 2012 Bonds). Proceeds from the Series 2012 Bonds were used to refund the entire principal amount of the Series 2003 Bonds maturing on March 1, 2013, through March 1, 2033. The debt service payments required for the Series 2012 do not differ from the debt service payments that were required under the Series 2003 Bonds. The Bonds bear variable rate interest determined monthly by the Bank Rate as noted in the Continuing Covenants Agreement (the Tax Factor multiplied by the sum of One-Month LIBOR plus the Credit Spread). The interest rate at December 31, 2014, was 1.05 percent. The bonds mature at various dates through 2033, however, the agreement that governs the Series 2012 Bonds contains a mandatory put effective November 30, 2017. The System intends to refinance this debt prior to the mandatory put and therefore the related debt is expected to be paid based on the original 2012 payment schedule.

The Series 1997, 2005, 2009B, 2011 and 2012 Bonds were issued pursuant to a master trust bond indenture agreement between the County, acting by and through the System’s Board of Trustees, and the bond trustee. The Series 1997, 2005, 2009B, 2011 and 2012 Bonds are special obligations issued by the County payable solely from the revenue derived from the operation of the System and other monies available to the System’s Board of Trustees. Accordingly, the bond proceeds and indebtedness have been recorded as assets and liabilities of the System.

The terms of the master trust bond indenture agreement provide for the establishment of a depreciation reserve fund and maintenance of certain special funds, which are maintained under the control of the bond trustee, and are used for payment of principal and interest on the bonds when due.

The revenue bonds and lease obligation payment requirements for fiscal years subsequent to December 31, 2014, are as follows:

Capital Lease & Loan Revenue Bonds Principal Interest Principal Interest 2015 $1,201 $189 $80,250 $10,607 2016 1,256 155 9,265 10,277 2017 1,295 116 9,570 9,973 2018 1,335 75 9,875 9,652 2019 1,064 35 10,205 9,322 2020-2024 610 13 15,630 42,682 2025-2029 0 0 15,755 35,889 2030-2034 0 0 24,700 28,088 2035-2039 0 0 44,100 14,446 2040 0 0 10,955 450 Total $6,761 $583 $230,305 $171,386

The cost value of Hospital Revenue Bonds was $230,088 at December 31, 2014.

There are no amounts remaining to be paid to bond holders related to defeased debt at December 31, 2014. - 111 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Other Long-Term Liabilities

Other long-term liabilities consist of the following at December 31, 2014:

Balance at Balance at Due within 12/31/13 Additions Deletions 12/31/14 One Year Amounts due to third-party payors $16,270 $22,025 ($7,149) $31,146 $5,627 Accrued vacation and sick leave 46,215 48,827 (43,795) 51,247 5,401 Derivative instruments - rate swaps 4,738 8,230 0 12,968 0 Totals $67,223 $79,082 ($50,944) $95,361 $11,028

Amounts Due to Third-Party Payors The System has agreements with third-party payors that provide for payment of amounts different from established rates. Retroactive adjustments are considered in the recognition of revenue on an estimated basis in the period the related services are rendered and are adjusted in future periods, as final settlements are determined. See net patient service revenue for additional information. As of December 31, 2014, the total liability for amounts due to third-party payors was $31,146.

Accrued Vacation and Sick Leave System employees earn vacation and sick leave at varying rates depending on job classification and years of service. Employees can accumulate up to three years of their earned vacation leave. All accumulated, unused vacation time is paid upon separation if the employee has at least one year of service with the System. There is no limit on the amount of sick time earned. Upon retirement, employees with a minimum of 10 years of service have sick leave balances paid out at 50 percent of eligible hours at their current rate of pay. The maximum payout is 800 hours. As of December 31, 2014, the total liability for accrued vacation and sick leave was $51,247.

Derivative Instruments The System’s objectives of its derivative instruments include managing the risk of increased debt service resulting from rising market interest rates, the risk of decreased surplus returns resulting from falling interest rates, and the risk of an increase in the fair value of outstanding fixed rate obligations resulting from declining market interest rates. Consistent with its interest rate risk management objectives, the System entered into various interest rate swap agreements with a total outstanding notional amount of $94,390 at December 31, 2014.

The System’s swap agreements do not meet the criteria for hedging and are reported as investment derivative instruments. The fair value of the swap agreements based on current settlement prices at December 31, 2014, was ($12,968) and is included within the liabilities section of the statement of net position. The fair value decrease of $8,230 in 2014 is included in net investment income (loss) in the statement of activities. As a result of the agreements, net settlements increased the System’s interest expense by $2,069 in 2014.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The following table describes the terms of the System’s two interest rate swap agreements:

July 28, 2005 March 13, 2003 Swap Agreement Swap Agreement Notional Amount $71,280 $23,110 Effective Date July 28, 2005 March 13, 2003 Termination Date February 1, 2035 March 1, 2033 Early Termination Option the System the System The System Pays Fixed 3.3% Fixed 3.5% Counterparty Pays* 64.2% 68.9% * of ISDA 5 Year Swap Rate

On July 28, 2005, the System entered into a swap agreement (the original agreement) with an initial amortizing notional amount of $74,535. The notional amount is based on the Series 2005 Bond principal repayment schedule that ends in 2035. Per the terms of an amended agreement effective June 1, 2006, the System pays a fixed rate of 3.3 percent and the counterparty pays 64.2 percent of the International Swaps and Derivatives Association, Inc. (ISDA) USD 5-year swap rate. The original agreement previously required the counterparty to pay 70 percent of the 3-month USD LIBOR. In 2014, ISDA 5-year interest rates ranged between 1.5 percent and 1.9 percent. The net amount is exchanged monthly between the two parties. The System has an early termination option.

On March 13, 2003, the System entered into a swap agreement (the original agreement) with an amortizing notional amount of $30,545. The amortizing notional amount is based on the Series 2003 Bond principal repayment schedule ending on March 1, 2033. On December 20, 2012, the Series 2003 Bonds were advance refunded with proceeds from the issuance of the Series 2012 Bonds, which maintain an identical repayment schedule. Per terms of an amended agreement effective June 1, 2006, the System pays a fixed rate of 3.5 percent and the counterparty pays 68.9 percent of the ISDA USD 5-year swap rate. The original agreement previously required the counterparty to pay 75 percent of the 3-month USD LIBOR rate. Net settlement amounts are exchanged monthly. The System has an early termination option.

Interest Rate Risk The System is exposed to interest rate risk on its interest rate swaps. On the pay-fixed receive variable swaps, as the ISDA Swap index decreases, the System’s net payment on the swaps increase.

Risk Management The System is exposed to various risks of loss related to torts; theft of or destruction of assets; errors and omissions; injuries to employees; and natural disasters. The System is self-insured for employee health, workers’ compensation and professional liability but maintains commercial insurance policies for property and casualty, automobile, and aircraft (helicopter and fixed wing) as well as excess coverage for professional liability and employee health claims. For professional liability and workers’ compensation, professional actuarial consultants have been retained to determine funding requirements. Amounts funded for professional liability have been placed in an irrevocable self-insurance trust account, which is being administered by a trustee. For the employee health claims, a historical analysis has been performed of incurred but not reported claims to determine the liability at December 31, 2014. Settled claims for workers’ compensation and professional liability have not exceeded insurance coverage in any of the past three years.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

During the normal course of its operations, the System has become a defendant in various legal actions. In the opinion of legal counsel and the System administration, the disposition of the pending cases will not have a material adverse effect of the financial condition or operations of the System. However, depending on the amount and timing of such resolution, an unfavorable resolution of some or all of these matters could materially affect the System’s future results of operations or cash flows in a particular year.

Losses from asserted claims and from unasserted claims identified under the System’s incident reporting systems are accrued based on estimates that incorporate the Systems’ past experience as well as other considerations including the nature of each claim or incident and relevant trend factors. The liability for estimated self-insured claims includes estimates of the ultimate costs for both reported claims and claims incurred but not report for 2014 and 2013 as follows:

Workers’ Compensation

Beginning Claims Claims Ending Due Within Balance Incurred Paid Balance One Year 2013 $9,295 $2,349 ($2,241) $9,403 $2,438 2014 9,403 1,566 (1,813) 9,156 2,013

Self-Insurance

Beginning Claims Claims Ending Due Within Balance Incurred Paid Balance One Year 2013 $42,368 $13,685 ($11,942) $44,111 $13,553 2014 44,111 11,874 (8,320) 47,665 13,366

Employee Health Insurance

Beginning Claims Claims Ending Due Within Balance Incurred Paid Balance One Year 2013 $1,834 $21,263 ($20,609) $2,488 $2,488 2014 2,488 21,902 (22,643) 1,747 1,747

The current portion of employee health insurance liabilities is included in other current liabilities.

The liabilities recorded for workers’ compensation and self-insurance at December 31, 2014, are discounted liabilities. The discount rate used was 1.5 percent. The undiscounted liabilities are approximately $941 and $2,504 higher for workers’ compensation and self-insurance, respectively.

Operating Leases

The System has entered into operating lease agreements for medical and office space, which expire through 2025. Contract terms range between one and fifteen years and contain rent escalation clauses and renewal options for additional periods ranging from one to five years. Rent expense totaled $2,519 in 2014.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Minimum rental commitments under operating leases extending beyond one year at December 31, 2014, are as follows:

2015 $2,233 2016 2,234 2017 2,183 2018 1,841 2019 1,486 2020-2025 1,923 Total $11,900

Benefit Plans

Pension Like the primary government, the System participates in the Ohio Public Employees Retirement System (OPERS). See Note 18 for additional information on OPERS.

Employee contributions to OPERS for the years ended December 31, 2014, 2013 and 2012 were $42,151, $39,208 and $38,717, respectively, equal to the required contributions for each year. The System’s required contributions to OPERS for the years ended December 31, 2014, 2013 and 2012 were $59,012, $54,891 and $54,202, respectively, equal to the required contributions for each year.

Postemployment Benefits The System’s required contributions to OPERS for 2014, 2013 and 20112 used to fund postemployment healthcare benefits were $8,430, $3,921 and $15,485, respectively, which are included in the System’s contractually required contribution of $59,012, $54,891 and $54,202 for the years ended December 31, 2014, 2013, and 2012, respectively. See Note 19 for additional information on OPERS postemployment benefits.

Restricted Net Position, Expendable and Nonexpendable

The System has a restricted expendable net position that is restricted by the master trust bond indenture and donors to a specific purpose. The Foundation has restricted expendable net position that is restricted by the donors or grantors to a specific time or purpose. These net positions are designated for the following purposes at December 31:

System Foundation Total Restricted, Debt Service Payments $25,981 $0 $25,981 Restricted, Capital Asset Use 3,400 0 3,400 Programmatic Activities of The MetroHealth System 0 27,141 27,141 Time Restrictions 0 781 781 Total $29,381 $27,922 $57,303

The Foundation has restricted, nonexpendable net position in the amount of $12,071 at December 31, 2014, that is restricted in perpetuity, the income from which is expendable to support the programmatic activities of The MetroHealth System.

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Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Related Transactions

The System received support from the Foundation in the amount of $3,956 in 2014 which is recorded as grant revenue on the System’s statement of activities. The outstanding receivable from the Foundation was $1,577 at December 31, 2014, which is included in other receivables on the System’s statement of net position. The System provided the Foundation in-kind support totaling $1,662 in 2014. This support covered the direct expenses of the Development Department and indirect expenses for the use of space and support departments such as information services and environmental services.

The System has established restricted funds to differentiate resources, the use of which is restricted by donors or grantors, from resources of general funds on which donors place no restrictions or that arise as a result of the operations of the System. A review of these restricted funds is performed annually to determine that funds, related to completed clinical trials and certain donated money, should be transferred to the Foundation. The amount transferred in 2014 was $87.

Investment in Blended Component Unit

MHS Holdings LLC (LLC) was formed to acquire and own interests in certain health care businesses. The System is the 99 percent member of the LLC. During 2011, the System’s 40 percent equity interest in CCF/MHS Renal Care Company, LTD., a joint venture with The Cleveland Clinic Foundation, which provides renal care (dialysis), was transferred to the LLC. Because the LLC is considered to be a blended equity component unit of the System, its financial activity is reflected within the financial activity of the System on these financial statements. At December 31, 2014, the LLC had a balance of $7,778 that is included in other assets on the statement of net position, which essentially represents the LLC’s interest in CCF/MHS Renal Care Company LTD. In 2014, the LLC recorded other income of $1,346 that are included in the statement of activities. The LLC holds no other assets, liabilities, equity, revenue or expenses as of and for the year ended December 31, 2014. The LLC received distributions of $2,940 in 2014.

MHS Purchasing LLC (MHS) was formed during 2012 to own an interest in Premier Purchasing Partners, L.P. (Premier). Premier is a group purchasing organization that provides the group greater bargaining power for cost of materials. Because MHS is considered to be a blended component unit of the System, its financial activity is reflected within the financial activity of the System on these financial statements. Prior to 2012, this ownership interest was held by the Foundation. At December 31, 2014, MHS had a balance of $1,398 that is included in other assets in the System’s statement of net position, which essentially represents MHS’s interest in Premier. MHS held no other assets, liabilities, equity, revenue or expenses as of and for the year ended December 31, 2014.

Effective October 1, 2013, Premier reorganized to convert to a public company. From this reorganization, MHS received proceeds of $1,221 and Class B unites that vest over a seven-year period. As a result of this conversion, MHS recognized a gain of $1,221, a loss on original investment of ($643) and a reduction in medical supplies expense of $306 related to vesting in Class B units. In 2014, MHS recorded a reduction to medical supplies expense of $1,092, related to vesting of the Class B units, which is included in the System’s statement of activities.

Conditional Promises to Give

The Foundation received a conditional pledge in the form of a 4-year challenge grant totaling $1,000 commencing in May 2014. The initial payment of $250 was received by the Foundation in December 2014. As it relates to this pledge, these financial statements reflect revenue of $46 and a refundable advance of - 116 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

$204 which represents the portion of the pledge whose conditions had not been met at December 31, 2014. The outstanding pledge balance of $750 at December 31, 2014, is not included as a pledge receivable within these financial statements because the conditions surrounding the pledge had not been met.

Commitments and Contingencies

CMS Recovery Audit Contractor Program Congress passed the Medicare Modernization Act in 2003, which among other things established a three-year demonstration of the Medicare Recovery Audit Contractor (RAC) program. The RAC’s identified and corrected a significant amount of improper overpayments to providers. In 2006, Congress passed the Tax Relief and Health Care Act of 2006 which authorized the expansion of the RAC program to all 50 states by 2010. The Centers for Medicare and Medicaid Services (CMS) has rolled out this program nationally.

Purchase Commitments As of December 31, 2014, the System had contractual commitments for various projects totaling approximately $24,210. Projects with large contractual commitments include $11,190 for campus transformation startup activities, $1,800 for real estate development costs for the new Brecksville satellite location, $1,170 for pharmacy renovations, $1,145 for automated breast ultrasound units, $789 for an information technology network project, $677 for a Middleburg Heights emergency generator, and $652 for cardiac/telemetry monitor upgrades. These projects are being funded with operating funds and bond project funds.

Regulatory Environment Including Fraud and Abuse Matters The health care industry is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, governmental health care program participation requirements, reimbursements for patient services, and Medicare and Medicaid fraud and abuse. Government activity continues with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by health care providers. Violations of these laws and regulations could result in expulsion from government health care programs together with the imposition of significant fines and penalties, as well as significant repayments for patient services previously billed. Management believes that the System is in compliance with fraud and abuse, as well as other applicable government laws and regulations. While no regulatory inquires have been made, compliance with such laws and regulations can be subject to future government review and interpretation, as well as regulatory actions unknown or asserted at this time.

Note 30 – Cuyahoga County Convention Facilities Development Corporation

The component unit financial data report in the financial statements includes

Description of the Entity

The Cuyahoga County Convention Facilities Development Corporation, (the Corporation) is a body corporate and politic established to exercise the rights and privileges conveyed to it by the constitution and laws of the State of Ohio. The Corporation was formed on December 12, 2013 pursuant to Chapters 343 and 3734 of the Ohio Revised Code. The Corporation is directed by a three-member Board of Directors comprised of one individual appointed by the Cuyahoga County Executive, an individual appointed by the President of the Cuyahoga County Council, and an individual appointed by the joint selection of Destination Cleveland and the Greater Cleveland Partnership. The Corporation promotes the common good and general welfare of residents of Cuyahoga County by enhancing the creation of new employment opportunities and supporting economic growth by overseeing the management of the Cleveland Convention Center and Global Center for Health Innovation. - 117 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The Corporation is a discretely presented component unit of Cuyahoga County’s Comprehensive Annual Financial Report, in accordance with the provisions of Governmental Accounting Standards Board Statement No. 14. The Corporation’s management believes the accompanying financial statements include all activities over which the Corporation is financially accountable.

Summary of Significant Accounting Policies

The financial statements of the Corporation have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Corporation’s accounting policies are described below.

Basis of Presentation The Corporation’s basic financial statements consist of a statement of net position, a statement of revenues, expenses and changes in net position, and a statement of cash flows.

The Corporation uses enterprise accounting to maintain its financial records during the year. Enterprise accounting focuses on the determination of operating income, change in net position, financial position, and cash flows. Enterprise accounting may be used to account for any activity for which a fee is charged to external users for goods or services.

The Corporation uses a single enterprise fund to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts.

Measurement Focus The enterprise fund is accounted for on a flow of economic resources measurement focus. All assets and all liabilities associated with the operation of the Corporation are included on the statement of net position. The statement of changes in net position presents increases (i.e., revenues) and decreases (i.e., expenses) in total net position. The statement of cash flows provides information about how the Corporation finances and meets the cash flow needs of its enterprise activity.

Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. The Corporation’s financial statements are prepared using the accrual basis of accounting. On the accrual basis, revenue is recorded on exchange transactions when the exchange takes place. Nonexchange transactions, in which the Corporation receives value without directly giving equal value in return, include capital contributions. Expenses are recognized at the time they are incurred.

Unearned Revenue Unearned revenue represents amounts under the accrual basis of accounting for which asset recognition criteria have been met, but for which revenue recognition criteria have not yet been met because such amounts have not yet been earned. For the Corporation, revenue received as of December 31, 2014, for 2015 services, has been recorded as unearned.

Cash and Cash Equivalents To improve cash management, cash received by the Corporation is pooled. Individual fund integrity is maintained through the Corporation’s records. The Corporation had no investments during the year or at the end of the year.

Investments with an original maturity of three months or less at the time of purchase are presented on the financial statements as cash equivalents.

- 118 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Prepaids Payments made to vendors for services that will benefit periods beyond the current year, are recorded as prepaid items using the consumption method by recording a current asset for the period amount at the time of purchase and reflecting the expenditure/expense in the year in which the services are consumed.

Accrued Liabilities and Long-Term Obligations All payables, accrued liabilities and long-term obligations are reported in the financial statements.

Operating Revenues and Expenses Operating revenues are those revenues that are generated directly from the primary activity of the proprietary fund. For the Corporation, these revenues are for event income and operating grants from Cuyahoga County. Operating expenses are necessary costs incurred to provide the goods or services that are the primary activity of the Corporation. All revenues and expenses not meeting these definitions are reported as non-operating.

Contributions of Capital Contributions of capital in the financial statements arise from outside contributions of capital assets and contributions of resources restricted to capital acquisition.

Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Net Position Net position represents the difference between assets and liabilities. Net position is reported as restricted when there are limitations imposed on its use or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The Corporation applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available.

Deposits

Custodial Credit Risk Custodial credit risk for deposits is the risk that in the event of bank failure, the Corporation will not be able to recover deposits or collateral securities that are in the possession of an outside party. At December 31, 2014, $6,741,080 of the Corporation’s bank balance of $6,991,080 was uncollateralized and uninsured. Although the securities were held by the pledging financial institutions’ trust departments and all statutory requirements for the deposit of money had been followed, noncompliance with the Federal requirements could potentially subject the Corporation to a successful claim by the FDIC

The Corporation has no deposit policy for custodial risk beyond the requirements of State statute. Ohio law requires that deposits be either insured or be protected by eligible securities pledged to and deposited either with the Corporation or a qualified trustee by the financial institution as security for repayment, or by a collateral pool of eligible securities deposited with a qualified trustee and pledged to secure the repayment of all public monies deposited in the financial institution whose market value at all times shall be at least one hundred five percent of the deposits being secured.

- 119 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Receivables

Receivables at December 31, 2014, consisted of accounts (special event rental space) and intergovernmental and a lease receivable from Cuyahoga County. All receivables, except the lease receivable, are expected to be collected within one year. A portion of the accounts receivable includes an amount the Corporation will not collect within one year. During 2014, the Corporation assumed the loans payable and lease receivable from Merchandise Mart Properties, Inc.

Accounts Estimated Net Receivable Uncollectible Receivable Allowance for Doubtful Accounts $368,824 $3,414 $365,410

The County entered into a lease agreement with the Corporation for the Facility. During 2014, the Corporation assumed the lease receivable in the amount $360,272,155 from Merchandise Mart Properties, Inc. This lease meets the definition of a capital lease under GASB 62. The County will make monthly lease payments of $3,000,000 through 2027.

The annual lease payments for the loan receivable are as follows:

Year Principal Interest 2015 $19,807,718 $16,192,282 2016 20,794,437 15,205,563 2017 21,830,309 14,169,691 2018 22,917,783 13,082,217 2019 24,059,430 11,940,570 2020-2024 139,514,497 40,485,503 2025-2027 92,480,161 6,519,839 Total $341,404,335 $117,595,665

Long-term Obligations

During 2014, the Corporation assumed the loans payable in the amount of $360,272,155 from Merchandise Mart Properties, Inc.

Outstanding Outstanding Amount Due in 12/31/2013 Addtions Reductions 12/31/2014 One Year Loan Payable $360,272,155 $0 $18,867,820 $341,404,335 $19,807,718

- 120 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

The annual requirements to retire the loan payable are as follows:

Benefit and Postemployment Plan

The employees of the Corporation are eligible to participate in the management company’s 401(k) Plan, under which employees can make elective deferrals as provided for under Internal Revenue Code section 401k. The management company may make a discretionary matching contribution for each employee participating in the plan.

Operating Lease Obligations

The Corporation has non-cancellable operating leases for office equipment and elevator maintenance. The future minimum required lease payments are as follows:

Office Elevator Year Ending December 31, Equipment Maintenance 2015 $6,020 $60,765 2016 6,020 0 2017 6,020 0 2018 3,010 0 Total $21,070 $60,765

Net rental expense for the year ended December 31, 2014 was $13,382.

On December 27, 2013, the County entered into a sublease and operation agreement with the Cuyahoga County Convention Facilities and Development Corporation (the Corporation). The Corporation is to operate the Facility solely as a convention center and medical or health industry showroom/office/educational facility and any legally permitted activities that are reasonably associated therewith, including without limitation trade and consumer shows, including setting the rates. This operating lease expires in 2027.

- 121 -

Cuyahoga County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2014

Risk Management

Workers’ compensation coverage is provided by the State of Ohio. The Corporation pays the State Workers’ Compensation System a premium based on a rate per $100 of salaries. This rate is calculated based on accident history and administrative costs.

During the year, the Corporation contracted with various vendors for the following types of insurance:

Type of Coverage Coverage Deductible General Liability: Each Occurrence $1,000,000 - Personal Injury 1,000,000 - General Aggregate 3,000,000 - Employer Liability: Each Accident 1,000,000 - Each Employee 1,000,000 - Policy Limit 1,000,000 - Rented Equipment 100,000 - Automobile Liability 1,000,000 1,000 Umbrella Liability 25,000,000 - Liquor Liability 1,000,000 - Crime 5,000,000 - Employment Practices 3,000,000 - Professional Liability 2,000,000 150,000

- 122 -

Combining and Individual Fund Statements and Schedules

- 123 - Combining Statements – Nonmajor Governmental Funds

Nonmajor Special Revenue Funds

Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Following is a description of the County's nonmajor special revenue funds:

Motor Vehicle Gas Tax – To account for and report revenue derived from the motor vehicle gasoline taxes. Expenditures in this special revenue fund are restricted by State law to County road and bridge maintenance and construction.

Real Estate Assessment – To account for and report State mandated County-wide real estate reappraisals funded by charges to the political subdivisions located within the County.

Alcohol, Drug and Mental Health Board – To account for and report a Countywide property tax levy as well as grants from Federal, State and County governments restricted for various mental health programs and aid to individuals seeking alcohol and drug services through effective oversight, coordination and planning activities.

Cuyahoga Support Enforcement – To account for and report restricted Federal, State, and local revenues restricted to administering the County Bureau of Support.

Delinquent Real Estate Assessment – To account for and report five percent of all certified delinquent real estate taxes and assessments restricted to collecting on delinquent accounts.

County Land Reutilization – To account for and report delinquent property tax penalties received under Ohio Revised Code Section 321.263 restricted to purchasing and revitalizing abandoned and condemned homes.

Court – To account for and report court costs restricted to special court projects, specific supplies, and to the rehabilitation of juvenile convicted offenders.

Solid Waste – To account for and report user fees restricted to financial operations of the County’s solid waste removal activities within the County.

Community Development – To account for and report federal grant revenues which are restricted to the administration of the Community Development Block Grant program and for initial loans made by the County to local businesses and the subsequent repayment of these loans.

Other Community Development – To account for and report smaller projects operated by the County which are restricted for community improvement purposes and subsidized in part by local, state and federal monies, as well as miscellaneous sources.

Treatment Alternatives for Safer Communities – To account for and report restricted grant monies received to be used for adult treatment services.

Victim Assistance – To account for and report grant monies which are restricted to the assistance of crime victims and which provides awareness of help that is available to the victims and their families.

Youth Services – To account for and report restricted grant monies received from the State Department of Youth Services and used for placement of children, a juvenile delinquency diversion program, juvenile delinquency prevention and other related activities.

(continued)

- 124 - Combining Statements – Nonmajor Governmental Funds (continued)

Nonmajor Special Revenue Funds – continued

Other Judicial – To account for and report grant monies which are restricted to various judicial services. These services include the Forensic Science Lab, the Law Library Board, the Felony Drug Court, and The Internet Crimes against Children Program.

Other Legislative and Executive – To account for and report various revenue which are restricted for various legislative and executive services. The Tax Certificate Administration, Mortgage Foreclosure Prevention, and Polling Place Accessibility programs are some of the services provided.

Other Health and Safety – To account for and report grant monies which are restricted for various health and safety programs. These projects include the Dog and Kennel program, Ohio Fatherhood Initiative Grant, State Homeland Security program, Ryan White program, and the Regional Collaboration Project

Other Public Works – To account for and report grant monies which are restricted to various public works. Projects include the Great Lakes Restoration, River Habitat Restoration, and the Towpath-ODNR project.

Other Social Services – To account for and report property taxes and grant monies which are restricted to various social service programs. Included are such projects as the Invest in Children Initiatives, United Way of Greater Cleveland, and the Adoption Opportunities Grant.

Litter Prevention and Recycling – To account for and report grant monies restricted for the County-wide Litter Control and Recycling Program prescribed by the State of Ohio Department of Natural Resources

Convention Center Hotel – To account for and report debt monies restricted for the operation of the convention center hotel. This fund did not have any budgetary activity in 2014, therefore, budgetary information is not provided.

Alcohol, Drug and Mental Health Board Grants – To account for and report grants from Federal and State governments restricted for various mental health programs and aid to individuals seeking alcohol and drug services through effective oversight, coordination and planning activities. This fund is combined with the Alcohol, Drug and Mental Health Board special revenue fund for GAAP reporting purposes.

Nonmajor Debt Service Fund

Debt Service – To account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest.

Nonmajor Capital Projects Funds

Capital Projects Funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of major capital facilities and other capital assets, other than those financed by proprietary funds. Following is a description of the County's nonmajor capital projects funds:

Capital Projects – To account for and report grant monies restricted for major capital improvement expenditures.

Road Capital Projects – To account for and report grant monies restricted to constructing or improving County roads and bridges.

- 125 - Cuyahoga County, Ohio Combining Balance Sheet Nonmajor Governmental Funds December 31, 2014

Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Fund Funds Funds

Assets Equity in Pooled Cash and Cash Equivalents $162,835,723 $13,838,141 $79,454,607 $256,128,471 Cash and Cash Equivalents In Segregated Accounts 4,453,635 0 0 4,453,635 Accrued Interest Receivable 335,633 0 30,778 366,411 Accounts Receivable 3,066,443 462,076 9,175 3,537,694 Intergovernmental Receivable 20,729,952 3,702,650 1,729,408 26,162,010 Property Taxes Receivable 47,359,803 25,153,940 0 72,513,743 Loans Receivable 37,942,332 20,821,191 0 58,763,523 Restricted Assets: Equity in Pooled Cash and Cash Equivalents with Fiscal Agent 5,048,144 36,027,045 0 41,075,189

Total Assets $281,771,665 $100,005,043 $81,223,968 $463,000,676

Liabilities Accounts Payable $17,461,656 $0 $217,175 $17,678,831 Accrued Wages 2,100,731 0 0 2,100,731 Contracts Payable 0 0 6,115,543 6,115,543 Intergovernmental Payable 2,144,427 0 0 2,144,427 Interfund Payable 484,373 762,500 0 1,246,873

Total Liabilities 22,191,187 762,500 6,332,718 29,286,405

Deferred Inflows of Resources Property Taxes 37,852,732 20,104,571 0 57,957,303 Unavailable Revenue 16,828,141 7,272,019 376,243 24,476,403

Total Deferred Inflows of Resources 54,680,873 27,376,590 376,243 82,433,706

Fund Balances Restricted 206,635,815 71,865,953 74,515,007 353,016,775 Unassigned (Deficit) (1,736,210) 0 0 (1,736,210)

Total Fund Balances 204,899,605 71,865,953 74,515,007 351,280,565

Total Liabilities, Deferred Inflows of Resources and Fund Balances $281,771,665 $100,005,043 $81,223,968 $463,000,676

- 126 - Cuyahoga County, Ohio Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2014

Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Fund Funds Funds

Revenues Property Taxes $46,805,016 $19,827,801 $0 $66,632,817 Hotel/Lodging Taxes 0 5,763,430 0 5,763,430 Payment in Lieu of Taxes 0 5,762,828 0 5,762,828 Charges for Services 31,747,991 93,436 0 31,841,427 Licenses and Permits 1,513,779 0 0 1,513,779 Fines and Forfeitures 2,979,479 0 0 2,979,479 Intergovernmental 146,294,330 4,467,105 30,403,772 181,165,207 Interest 1,545,552 1,237,115 141,421 2,924,088 Contributions and Donations 649,271 0 0 649,271 Other 3,322,059 1,466,017 28,733 4,816,809

Total Revenues 234,857,477 38,617,732 30,573,926 304,049,135

Expenditures Current: General Government: Legislative and Executive 17,503,461 4,643,210 0 22,146,671 Judicial 70,278,076 0 0 70,278,076 Public Works 31,227,458 0 0 31,227,458 Health and Safety 76,278,640 0 0 76,278,640 Social Services 2,447,760 0 0 2,447,760 Community Development 46,121,765 0 0 46,121,765 Capital Outlay 0 0 77,881,399 77,881,399 Debt Service: Principal Retirement 7,233,704 44,000,000 0 51,233,704 Interest and Fiscal Charges 1,591,367 40,149,756 0 41,741,123 Issuance Costs 182,954 240,369 1,002,769 1,426,092

Total Expenditures 252,865,185 89,033,335 78,884,168 420,782,688

Excess of Revenues Over (Under) Expenditures (18,007,708) (50,415,603) (48,310,242) (116,733,553)

Other Financing Sources (Uses) Revenue Bonds Issued 22,189,197 0 103,442,688 125,631,885 Revenue Refunding Bonds Issued 0 55,333,115 0 55,333,115 Premium on Revenue Bonds 0 18,679,044 0 18,679,044 Discount on Revenue Bonds 0 (548,989) 0 (548,989) Premium on Certificates of Participation 0 23,812,200 0 23,812,200 Payment to Refunded Bond Escrow Agent 0 (59,420,509) 0 (59,420,509) Transfers In 26,323,965 37,982,156 21,498,627 85,804,748 Transfers Out (15,090,098) 0 (7,322,754) (22,412,852)

Total Other Financing Sources (Uses) 33,423,064 75,837,017 117,618,561 226,878,642

Net Change in Fund Balances 15,415,356 25,421,414 69,308,319 110,145,089

Fund Balances Beginning of Year 189,484,249 46,444,539 5,206,688 241,135,476

Fund Balances End of Year $204,899,605 $71,865,953 $74,515,007 $351,280,565 - 127 - Cuyahoga County, Ohio Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2014

Alcohol, Drug Cuyahoga Motor Vehicle Real Estate and Mental Support Gas Tax Assessment Health Board Enforcement

Assets Equity in Pooled Cash and Cash Equivalents $49,602,330 $14,498,258 $19,440,243 $255,248 Cash and Cash Equivalents In Segregated Accounts 0000 Accrued Interest Receivable 214,743 0 0 0 Accounts Receivable 174,887 0 0 643,850 Intergovernmental Receivable 10,283,091 0 2,580,772 217,010 Property Taxes Receivable 0 0 42,952,639 3,319,579 Loans Receivable 0000 Restricted Assets: Equity in Pooled Cash and Cash Equivalents with Fiscal Agent 0000

Total Assets $60,275,051 $14,498,258 $64,973,654 $4,435,687

Liabilities Accounts Payable $1,259,887 $5,312 $6,550,666 $2,509,148 Accrued Wages 369,525 202,855 142,915 0 Intergovernmental Payable 1,094,586 31,111 469,864 0 Interfund Payable 173,492 56,327 10,852 118,100

Total Liabilities 2,897,490 295,605 7,174,297 2,627,248

Deferred Inflows of Resources Property Taxes 0 0 34,330,268 2,653,202 Unavailable Revenue 5,490,931 0 10,282,203 794,656

Total Deferred Inflows of Resources 5,490,931 0 44,612,471 3,447,858

Fund Balances Restricted 51,886,630 14,202,653 13,186,886 0 Unassigned (Deficit) 0 0 0 (1,639,419)

Total Fund Balances (Deficit) 51,886,630 14,202,653 13,186,886 (1,639,419)

Total Liabilities, Deferred Inflows of Resources and Fund Balances $60,275,051 $14,498,258 $64,973,654 $4,435,687

- 128 - Treatment Delinquent County Other Alternatives Real Estate Land Solid Community Community for Safer Assessment Reutilization Court Waste Development Development Communities

$8,979,678 $1,050,094 $8,865,756 $3,602,111 $13,260,895 $949,391 $841,010

00004,453,635 0 0 00005,334 0 0 525,824 275,439 174,109 95,071 643,133 4,034 31,963 00001,998,383 43,385 157,681 0000000 000037,942,332 0 0

0000297,418 0 0

$9,505,502 $1,325,533 $9,039,865 $3,697,182 $58,601,130 $996,810 $1,030,654

$363,117 $0 $8,920 $99,800 $2,882,967 $129,814 $6,723 68,944 0 66,685 0 58,950 0 49,504 10,574 0 10,227 26,108 9,041 0 7,592 7,938 0 4,063 1,117 2,847 526 2,297

450,573 0 89,895 127,025 2,953,805 130,340 66,116

0000000 0000000

0000000

9,054,929 1,325,533 8,949,970 3,570,157 55,647,325 866,470 964,538 0000000

9,054,929 1,325,533 8,949,970 3,570,157 55,647,325 866,470 964,538

$9,505,502 $1,325,533 $9,039,865 $3,697,182 $58,601,130 $996,810 $1,030,654

(continued)

- 129 - Cuyahoga County, Ohio Combining Balance Sheet Nonmajor Special Revenue Funds (continued) December 31, 2014

Other Victim Youth Other Legislative Assistance Services Judicial and Executive

Assets Equity in Pooled Cash and Cash Equivalents $82,661 $4,216,047 $12,374,981 $8,424,793 Cash and Cash Equivalents In Segregated Accounts 0000 Accrued Interest Receivable 0 0 0 110,308 Accounts Receivable 0 40,762 253,412 55,593 Intergovernmental Receivable 87,249 0 5,113,282 0 Property Taxes Receivable 0000 Loans Receivable 0000 Restricted Assets: Equity in Pooled Cash and Cash Equivalents with Fiscal Agent 0000

Total Assets $169,910 $4,256,809 $17,741,675 $8,590,694

Liabilities Accounts Payable $161,196 $784,123 $1,251,093 $13,332 Accrued Wages 35,410 92,578 179,593 750,304 Intergovernmental Payable 60,624 14,198 199,048 136,186 Interfund Payable 9,471 40,146 30,671 378

Total Liabilities 266,701 931,045 1,660,405 900,200

Deferred Inflows of Resources Property Taxes 0000 Unavailable Revenue 0000

Total Deferred Inflows of Resources 0000

Fund Balances Restricted 0 3,325,764 16,081,270 7,690,494 Unassigned (Deficit) (96,791) 0 0 0

Total Fund Balances (Deficit) (96,791) 3,325,764 16,081,270 7,690,494

Total Liabilities, Deferred Inflows of Resources and Fund Balances $169,910 $4,256,809 $17,741,675 $8,590,694

- 130 - Total Other Other Other Litter Convention Nonmajor Health and Public Social Prevention and Center Special Safety Works Services Recycling Hotel Revenue Funds

$12,159,284 $1,033,394 $3,180,914 $18,635 $0 $162,835,723

000004,453,635 0 5,248 0 0 0 335,633 134,309 0 14,057 0 0 3,066,443 249,099 000020,729,952 1,087,585 000047,359,803 0000037,942,332

00004,750,726 5,048,144

$13,630,277 $1,038,642 $3,194,971 $18,635 $4,750,726 $281,771,665

$785,870 $0 $649,688 $0 $0 $17,461,656 83,468 00002,100,731 12,801 0 62,467 0 0 2,144,427 26,148 0000484,373

908,287 0 712,155 0 0 22,191,187

869,262 000037,852,732 260,351 000016,828,141

1,129,613 000054,680,873

11,592,377 1,038,642 2,482,816 18,635 4,750,726 206,635,815 00000(1,736,210)

11,592,377 1,038,642 2,482,816 18,635 4,750,726 204,899,605

$13,630,277 $1,038,642 $3,194,971 $18,635 $4,750,726 $281,771,665

- 131 - Cuyahoga County, Ohio Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended December 31, 2014

Alcohol, Drug Cuyahoga Motor Vehicle Real Estate and Mental Support Gas Tax Assessment Health Board Enforcement

Revenues Property Taxes $0 $0 $35,446,972 $1,337,760 Charges for Services 230 14,495,871 20,057 4,441,742 Licenses and Permits 0000 Fines and Forfeitures 336,140 0 0 0 Intergovernmental 29,093,500 437,801 31,241,934 23,252,158 Interest 1,005,518 0 0 0 Contributions and Donations 0000 Other 168,886 93,981 354,478 58,610

Total Revenues 30,604,274 15,027,653 67,063,441 29,090,270

Expenditures Current: General Government: Legislative and Executive 0 7,499,757 0 0 Judicial 0 0 0 29,470,507 Public Works 29,267,994 0 0 0 Health and Safety 0 0 61,062,151 0 Social Services 0000 Community Development 0000 Debt Service: Principal Retirement 698,704 0 0 0 Interest and Fiscal Charges 107,623 0 0 0 Bond Issuance Costs 0000

Total Expenditures 30,074,321 7,499,757 61,062,151 29,470,507

Excess of Revenues Over (Under) Expenditures 529,953 7,527,896 6,001,290 (380,237)

Other Financing Sources (Uses) Revenue Bonds Issued 0000 Transfers In 8,013,541 0 0 0 Transfers Out (9,986,109) (1,385,310) 0 0

Total Other Financing Sources (Uses) (1,972,568) (1,385,310) 0 0

Net Change in Fund Balances (1,442,615) 6,142,586 6,001,290 (380,237)

Fund Balances (Deficit) Beginning of Year 53,329,245 8,060,067 7,185,596 (1,259,182)

Fund Balances (Deficit) End of Year $51,886,630 $14,202,653 $13,186,886 ($1,639,419)

- 132 - Treatment Delinquent County Other Alternatives Real Estate Land Solid Community Community For Safer Assessment Reutilization Court Waste Development Development Communities

$0 $7,348,849 $0 $0 $0 $0 $0 6,757,006 275,439 771,597 1,894,356 322,648 42,750 0 243,677 000000 0 0 1,002,947 0000 0 0 2,665 98,731 20,196,429 263,356 1,148,752 000025,458 0 0 000001,750 0 40,505 753,448 77,880 60,740 1,145,540 50 242,049

7,041,188 8,377,736 1,855,089 2,053,827 21,690,075 307,906 1,390,801

1,063,009 8,506,898 00000 2,911,186 0 2,564,228 0 0 0 1,372,286 0 0 0 1,916,937 0 0 0 0000000 0000000 000036,752,131 9,369,634 0

00006,535,000 0 0 00001,483,744 0 0 0000182,954 0 0

3,974,195 8,506,898 2,564,228 1,916,937 44,953,829 9,369,634 1,372,286

3,066,993 (129,162) (709,139) 136,890 (23,263,754) (9,061,728) 18,515

000022,189,197 0 0 00006,563,223 694,523 30,792 0 0 (234,617) (6,444) 0 0 (17,334)

0 0 (234,617) (6,444) 28,752,420 694,523 13,458

3,066,993 (129,162) (943,756) 130,446 5,488,666 (8,367,205) 31,973

5,987,936 1,454,695 9,893,726 3,439,711 50,158,659 9,233,675 932,565

$9,054,929 $1,325,533 $8,949,970 $3,570,157 $55,647,325 $866,470 $964,538

(continued)

- 133 - Cuyahoga County, Ohio Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds (continued) For the Year Ended December 31, 2014

Other Victim Youth Other Legislative and Assistance Services Judicial Executive

Revenues Property Taxes $0 $0 $0 $0 Charges for Services 0 0 1,895,318 713,700 Licenses and Permits 0000 Fines and Forfeitures 0 0 671,255 0 Intergovernmental 597,459 5,092,355 25,696,118 0 Interest 0 0 43 489,857 Contributions and Donations 0 0 20,000 0 Other 0 38,027 146,081 3,433

Total Revenues 597,459 5,130,382 28,428,815 1,206,990

Expenditures Current: General Government: Legislative and Executive 0 0 0 433,797 Judicial 2,278,928 5,572,542 26,108,399 0 Public Works 0000 Health and Safety 0000 Social Services 0000 Community Development 0000 Debt Service: Principal Retirement 0000 Interest and Fiscal Charges 0000 Bond Issuance Costs 0000

Total Expenditures 2,278,928 5,572,542 26,108,399 433,797

Excess of Revenues Over (Under) Expenditures (1,681,469) (442,160) 2,320,416 773,193

Other Financing Sources (Uses) Revenue Bonds Issued 0000 Transfers In 1,626,556 0 3,613,809 0 Transfers Out (47,100) 0 (403,184) 0

Total Other Financing Sources (Uses) 1,579,456 0 3,210,625 0

Net Change in Fund Balances (102,013) (442,160) 5,531,041 773,193

Fund Balances (Deficit) Beginning of Year 5,222 3,767,924 10,550,229 6,917,301

Fund Balances (Deficit) End of Year ($96,791) $3,325,764 $16,081,270 $7,690,494

- 134 - Total Other Other Other Litter Convention Nonmajor Health and Public Social Prevention and Center Special Safety Works Services Recycling Hotel Revenue Funds

$942,878 $0 $1,728,557 $0 $0 $46,805,016 117,277 000031,747,991 1,152,666 0 117,436 0 0 1,513,779 853,888 0 115,249 0 0 2,979,479 8,816,882 30,000 326,190 0 0 146,294,330 0 23,950 0 0 726 1,545,552 80,021 0 547,500 0 0 649,271 138,351 00003,322,059

12,101,963 53,950 2,834,932 0 726 234,857,477

0000017,503,461 0000070,278,076 0 42,527 0 0 0 31,227,458 15,216,489 000076,278,640 0 0 2,447,760 0 0 2,447,760 0000046,121,765

000007,233,704 000001,591,367 00000182,954

15,216,489 42,527 2,447,760 0 0 252,865,185

(3,114,526) 11,423 387,172 0 726 (18,007,708)

0000022,189,197 789,654 0 241,867 0 4,750,000 26,323,965 (3,000,000) 0 (10,000) 0 0 (15,090,098)

(2,210,346) 0 231,867 0 4,750,000 33,423,064

(5,324,872) 11,423 619,039 0 4,750,726 15,415,356

16,917,249 1,027,219 1,863,777 18,635 0 189,484,249

$11,592,377 $1,038,642 $2,482,816 $18,635 $4,750,726 $204,899,605

- 135 - Cuyahoga County, Ohio Combining Balance Sheet Nonmajor Capital Projects Funds December 31, 2014

Road Total Nonmajor Capital Capital Capital Projects Projects Projects Funds

Assets Equity in Pooled Cash and Cash Equivalents $77,172,057 $2,282,550 $79,454,607 Accrued Interest Receivable 30,778 0 30,778 Accounts Receivable 9,175 0 9,175 Intergovernmental Receivable 134,968 1,594,440 1,729,408

Total Assets $77,346,978 $3,876,990 $81,223,968

Liabilities Accounts Payable $217,175 $0 $217,175 Contracts Payable 4,555,516 1,560,027 6,115,543

Total Liabilities 4,772,691 1,560,027 6,332,718

Deferred Inflows of Resources Unavailable Revenue 0 376,243 376,243

Fund Balances Restricted 72,574,287 1,940,720 74,515,007

Total Liabilities and Fund Balances $77,346,978 $3,876,990 $81,223,968

- 136 - Cuyahoga County, Ohio Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended December 31, 2014

Road Total Nonmajor Capital Capital Capital Projects Projects Projects Funds

Revenues Intergovernmental $2,238,052 $28,165,720 $30,403,772 Interest 141,421 0 141,421 Other 26,688 2,045 28,733

Total Revenues 2,406,161 28,167,765 30,573,926

Expenditures Capital Outlay 40,545,274 37,336,125 77,881,399 Debt Service: Issuance Costs 1,002,769 0 1,002,769

Total Expenditures 41,548,043 37,336,125 78,884,168

Excess of Revenues Over (Under) Expenditures (39,141,882) (9,168,360) (48,310,242)

Other Financing Sources (Uses) Revenue Bonds Issued 103,442,688 0 103,442,688 Transfers In 11,512,518 9,986,109 21,498,627 Transfers Out 0 (7,322,754) (7,322,754)

Total Other Financing Sources (Uses) 114,955,206 2,663,355 117,618,561

Net Change in Fund Balances 75,813,324 (6,505,005) 69,308,319

Fund Balances (Deficit) Beginning of Year (3,239,037) 8,445,725 5,206,688

Fund Balances End of Year $72,574,287 $1,940,720 $74,515,007

- 137 - Combining Statements – Nonmajor Enterprise Funds

Enterprise funds are used to account for the financing of activity for which a fee is charged to external users for goods or services provided by the County. The intent is that the cost of providing goods or services to the general public be financed or recovered through user charges.

County Airport – To account for and report revenues and expenses associated with the operation of the County airport.

County Parking Garage – To account for and report revenues and expenses associated with the operation of the County-owned parking garage. The facility serves both County employees and the general public.

Cuyahoga County Information Systems – To account for and report revenues and expenses associated with the operation of the County’s Regional Enterprise Data Sharing System (REDSS).

- 138 - Cuyahoga County, Ohio Combining Statement of Fund Net Position Nonmajor Enterprise Funds December 31, 2014

Cuyahoga Total County County Nonmajor County Parking Information Enterprise Airport Garage Systems Funds

Assets Current Assets: Equity in Pooled Cash and Cash Equivalents $405,463 $2,847,777 $643,774 $3,897,014 Materials and Supplies Inventory 25,996 0 0 25,996 Intergovernmental Receivable 0 0 213,574 213,574 Accounts Receivable 185,000 0 0 185,000 Interfund Receivable 0 0 102,182 102,182

Total Current Assets 616,459 2,847,777 959,530 4,423,766

Noncurrent Assets: Capital Assets: Nondepreciable Capital Assets 6,056,978 0 0 6,056,978 Depreciable Capital Assets, Net 5,250,459 2,507,674 0 7,758,133

Total Noncurrent Assets 11,307,437 2,507,674 0 13,815,111

Total Assets 11,923,896 5,355,451 959,530 18,238,877

Liabilities Current Liabilities: Accounts Payable 126,546 84,523 136,917 347,986 Accrued Wages 10,796 23,880 7,270 41,946 Intergovernmental Payable 59,454 26,571 9,884 95,909 Interfund Payable 19,899 16,880 1,278 38,057 Compensated Absences Payable 18,088 1,738 5,740 25,566

Total Current Liabilities 234,783 153,592 161,089 549,464

Long-Term Liabilities (net of current portion): Compensated Absences Payable 0 37,742 0 37,742

Total Liabilities 234,783 191,334 161,089 587,206

Net Position Net Investment in Capital Assets 11,307,437 2,507,674 0 13,815,111 Unrestricted 381,676 2,656,443 798,441 3,836,560

Total Net Position $11,689,113 $5,164,117 $798,441 $17,651,671

- 139 - Cuyahoga County, Ohio Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds For the Year Ended December 31, 2014

Cuyahoga Total County County Nonmajor County Parking Information Enterprise Airport Garage Systems Funds

Operating Revenues Charges for Services $841,038 $3,332,600 $1,582,361 $5,755,999 Other 27,848 8,457 47 36,352

Total Operating Revenues 868,886 3,341,057 1,582,408 5,792,351

Operating Expenses Personal Services 536,225 597,504 139,897 1,273,626 Materials and Supplies 182,329 13,695 2,014 198,038 Contractual Services 467,091 929,422 810,478 2,206,991 Depreciation 193,328 459,255 3,079 655,662 Other 202,746 988,728 4,390 1,195,864

Total Operating Expenses 1,581,719 2,988,604 959,858 5,530,181

Operating Income (Loss) (712,833) 352,453 622,550 262,170

Non-Operating Revenues (Expenses) Loss on Disposal of Capital Assets 0 0 (2,824) (2,824) . Income (Loss) before Capital Contributions and Transfers (712,833) 352,453 619,726 259,346

Capital Contributions 1,139,440 1,193,230 0 2,332,670 Transfers In 0 0 314,523 314,523 Transfers Out 0 (646,723) (420,000) (1,066,723)

Change in Net Position 426,607 898,960 514,249 1,839,816

Net Position Beginning of Year 11,262,506 4,265,157 284,192 15,811,855

Net Position End of Year $11,689,113 $5,164,117 $798,441 $17,651,671

- 140 - Cuyahoga County, Ohio Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended December 31, 2014

Cuyahoga Total County County Nonmajor County Parking Information Enterprise Airport Garage Systems Funds

Increases (Decreases) in Cash and Cash Equivalents

Cash Flows from Operating Activities Cash Received from Customers $983,110 $3,339,779 $1,276,205 $5,599,094 Other Cash Receipts 27,848 8,457 47 36,352 Cash Payments to Employees for Services (547,234) (587,452) (157,696) (1,292,382) Cash Payments for Goods and Services (662,316) (963,937) (749,357) (2,375,610) Other Cash Payments (144,870) (982,889) (4,390) (1,132,149)

Net Cash Provided by (Used in) Operating Activities (343,462) 813,958 364,809 835,305

Cash Flows from Noncapital Financing Activities Transfers In 0 0 314,523 314,523 Transfers Out 0 (646,723) (420,000) (1,066,723)

Net Cash Provided by (Used in) Noncapital Financing Activities 0 (646,723) (105,477) (752,200)

Cash Flows from Capital and Related Financing Activities Payments for Capital Acquisitions (10,073) 0 0 (10,073)

Net Increase (Decrease) in Cash and Cash Equivalents (353,535) 167,235 259,332 73,032

Cash and Cash Equivalents Beginning of Year 758,998 2,680,542 384,442 3,823,982

Cash and Cash Equivalents End of Year $405,463 $2,847,777 $643,774 $3,897,014

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities

Operating Income (Loss) ($712,833) $352,453 $622,550 $262,170

Adjustments: Depreciation 193,328 459,255 3,079 655,662 (Increase) Decrease in Assets: Materials and Supplies Inventory (149) 0 0 (149) Intergovernmental Receivable 0 0 (203,974) (203,974) Accounts Receivable 142,072 7,179 0 149,251 Interfund Receivable 0 0 (102,182) (102,182) Increase (Decrease) in Liabilities: Accounts Payable (12,607) (37,113) 54,261 4,541 Accrued Wages (6,191) 4,955 (12,873) (14,109) Intergovernmental Payable 56,850 23,670 6,797 87,317 Interfund Payable 18,208 (4,109) 1,174 15,273 Compensated Absences Payable (22,140) 7,668 (4,023) (18,495)

Total Adjustments 369,371 461,505 (257,741) 573,135

Net Cash Provided by (Used in) Operating Activities ($343,462) $813,958 $364,809 $835,305

Noncash Capital Financing Activities During 2014, the capital projects fund donated $1,139,440 in runway renovations to the County Airport enterprise fund. These amounts are included in capital contributions.

During 2014, the capital projects fund donated $1,193,230 in building improvements to the Parking Garage enterprise fund. These amounts are included in capital contributions.

- 141 - (This Page Intentionally Left Blank)

- 142 - Combining Statements – Internal Service Funds

Internal service funds are used to account for the financing of services provided by one department or agency to other departments or agencies of the County on a cost-reimbursement basis.

Central Custodial Services – To account for and report the costs associated with custodial services to various County departments and agencies. Users are billed for costs incurred.

Maintenance – To account for and report the costs associated with maintenance services to various County departments and agencies. Users are billed for costs incurred.

Data Processing – To account for and report the costs associated with providing centralized data processing services to various County departments and agencies. Users are billed for costs incurred.

Printing – To account for and report the costs associated with providing printing and reproduction services to various County departments and agencies. Users are billed for costs incurred.

Postage – To account for and report the costs associated with providing postal services for various County departments and agencies. Users are billed for costs incurred.

Health Insurance – To account for and report claims and administration of the health care program for covered County employees and eligible dependents and various external districts including municipalities, and the accumulation and allocation of costs associated with health care.

Workers’ Compensation – To account for and report revenues and costs associated with providing workers’ compensation benefits to employees.

- 143 - Cuyahoga County, Ohio Combining Statement of Fund Net Position Internal Service Funds December 31, 2014

Central Custodial Services Maintenance Printing Postage

Assets Current Assets: Equity in Pooled Cash and Cash Equivalents $0 $894,767 $0 $0 Intergovernmental Receivable 1,749,912 0 0 0 Accounts Receivable 8,810 169,277 105,790 63,079 Interfund Receivable 0 174,469 347,485 0

Total Current Assets 1,758,722 1,238,513 453,275 63,079

Noncurrent Assets: Depreciable Capital Assets, Net 123,382 152,503 113,791 11,387

Total Assets 1,882,104 1,391,016 567,066 74,466

Liabilities Current Liabilities: Accounts Payable 954,361 73,670 350,760 0 Accrued Wages 981,665 12,386 20,527 15,361 Intergovernmental Payable 268,569 1,900 3,148 2,356 Interfund Payable 4,798,618 11,996 461,790 97,121 Compensated Absences Payable 116,236 1,286 4,879 3,285 Claims Payable 0 0 0 0

Total Current Liabilities 7,119,449 101,238 841,104 118,123

Long-Term Liabilities (net of current portion): Compensated Absences Payable 875,347 27,918 31,468 71,337

Total Liabilities 7,994,796 129,156 872,572 189,460

Net Position Investment in Capital Assets 123,382 152,503 113,791 11,387 Unrestricted (Deficit) (6,236,074) 1,109,357 (419,297) (126,381)

Total Net Position (Deficit) ($6,112,692) $1,261,860 ($305,506) ($114,994)

- 144 - Health Workers' Insurance Compensation Total

$20,489,918 $33,479,470 $54,864,155 0 0 1,749,912 0 0 346,956 0 5,240,939 5,762,893

20,489,918 38,720,409 62,723,916

0 0 401,063

20,489,918 38,720,409 63,124,979

1,684,792 29,166 3,092,749 14,892 1,785 1,046,616 2,284 5,161,431 5,439,688 815 0 5,370,340 0 874 126,560 5,592,351 9,891,952 15,484,303

7,295,134 15,085,208 30,560,256

0 373 1,006,443

7,295,134 15,085,581 31,566,699

0 0 401,063 13,194,784 23,634,828 31,157,217

$13,194,784 $23,634,828 $31,558,280

- 145 - Cuyahoga County, Ohio Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Year Ended December 31, 2014

Central Custodial Data Services Maintenance Processing Printing

Operating Revenues Charges for Services $41,207,683 $1,265,919 $0 $3,251,694 Other 241,991 24,530 0 401

Total Operating Revenues 41,449,674 1,290,449 0 3,252,095

Operating Expenses Personal Services 26,704,427 346,348 0 595,577 Materials and Supplies 12,400,209 906,907 0 1,722,874 Contractual Services 6,413,822 0 0 1,029,490 Claims 0000 Depreciation 21,978 78,260 0 77,891 Other 428,323 315,940 0 7,070

Total Operating Expenses 45,968,759 1,647,455 0 3,432,902

Income (Loss) before Transfers and and Special Items (4,519,085) (357,006) 0 (180,807)

Transfers In 2,000,000 380,000 0 239,650 Transfers Out 0 0 (4,197,118) 0 Special Item - Data Processing 0 0 (4,325,534) 0

Change in Net Position (2,519,085) 22,994 (8,522,652) 58,843

Net Position (Deficit) Beginning of Year (3,593,607) 1,238,866 8,522,652 (364,349)

Net Position (Deficit) End of Year ($6,112,692) $1,261,860 $0 ($305,506)

- 146 - Health Workers' Postage Insurance Compensation Total

$1,495,874 $101,828,111 $4,481,950 $153,531,231 4,060 42,031 222,066 535,079

1,499,934 101,870,142 4,704,016 154,066,310

481,252 500,185 126,439 28,754,228 142 0 0 15,030,132 270,338 27,646,856 351,509 35,712,015 0 71,195,788 2,338,694 73,534,482 17,853 0 0 195,982 797,346 0 0 1,548,679

1,566,931 99,342,829 2,816,642 154,775,518

(66,997) 2,527,313 1,887,374 (709,208)

0 0 0 2,619,650 0 0 0 (4,197,118) 0 0 0 (4,325,534)

(66,997) 2,527,313 1,887,374 (6,612,210)

(47,997) 10,667,471 21,747,454 38,170,490

($114,994) $13,194,784 $23,634,828 $31,558,280

- 147 - Cuyahoga County, Ohio Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2014

Central Custodial Data Services Maintenance Processing Printing

Increases (Decreases) in Cash and Cash Equivalents

Cash Flows from Operating Activities Cash Received from Interfund Transactions $40,211,599 $1,098,594 $0 $3,098,538 Other Cash Receipts 249,577 24,530 0 401 Cash Payments to Employees for Services (26,569,951) (318,770) 0 (595,586) Cash Payments for Goods and Services (18,893,115) (853,064) 0 (2,636,382) Cash Payments for Claims 0000 Other Cash Payments (425,672) (315,940) 0 (7,070)

Net Cash Provided by (Used in) Operating Activities (5,427,562) (364,650) 0 (140,099)

Cash Flows from Noncapital Financing Activities Advances In 3,427,562 0 0 0 Advances Out 0 0 0 (99,551) Transfers In 2,000,000 380,000 0 239,650 Transfers Out 0 0 (4,197,118) 0

Net Cash Provided by (Used in) Noncapital Financing Activities 5,427,562 380,000 (4,197,118) 140,099

Net Increase (Decrease) in Cash and Cash Equivalents 0 15,350 (4,197,118) 0

Cash and Cash Equivalents Beginning of Year 0 879,417 4,197,118 0

Cash and Cash Equivalents End of Year $0 $894,767 $0 $0

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities

Operating Income (Loss) ($4,519,085) ($357,006) $0 ($180,807)

Adjustments: Depreciation 21,978 78,260 0 77,891 (Increase) Decrease in Assets: Intergovernmental Receivable (987,274) 0 0 0 Accounts Receivable (1,224) (82,558) 0 (91,302) Interfund Receivable 0 (84,767) 0 (61,854) Increase (Decrease) in Liabilities: Accounts Payable (154,706) 73,670 0 116,604 Accrued Wages 104,715 (236) 0 2,088 Intergovernmental Payable 134,148 (35) 0 322 Interfund Payable 58,588 2,836 0 (282) Compensated Absences Payable (84,702) 5,186 0 (2,759) Claims Payable 0000

Total Adjustments (908,477) (7,644) 0 40,708

Net Cash Provided by (Used in) Operating Activities ($5,427,562) ($364,650) $0 ($140,099)

- 148 - Health Workers' Postage Insurance Compensation Total

$1,526,956 $101,828,111 $3,927,862 $151,691,660 4,060 42,031 222,066 542,665 (471,992) (507,900) (125,361) (28,589,560) (269,384) (28,260,226) (2,324,468) (53,236,639) 0 (71,305,600) (2,460,107) (73,765,707) (797,346) 0 0 (1,546,028)

(7,706) 1,796,416 (760,008) (4,903,609)

7,706 0 0 3,435,268 0 0 0 (99,551) 0 0 0 2,619,650 0 0 0 (4,197,118)

7,706 0 0 1,758,249

0 1,796,416 (760,008) (3,145,360)

0 18,693,502 34,239,478 58,009,515

$0 $20,489,918 $33,479,470 $54,864,155

($66,997) $2,527,313 $1,887,374 ($709,208)

17,853 0 0 195,982

0 0 0 (987,274) (19,061) 0 0 (194,145) 50,143 0 (554,088) (650,566)

0 (619,266) (2,079,310) (2,663,008) 1,380 (1,241) (2,487) 104,219 213 (189) 110,897 245,356 1,852 (389) 0 62,605 6,911 0 (981) (76,345) 0 (109,812) (121,413) (231,225)

59,291 (730,897) (2,647,382) (4,194,401)

($7,706) $1,796,416 ($760,008) ($4,903,609)

- 149 -

Combining Statements – Fiduciary Funds

Fiduciary Funds

Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into four classifications: pension trust funds, investment trust funds, private purpose trust funds and agency funds. Agency Funds are purely custodial (assets equal liabilities) and thus do not involve the measurement of results of operations.

Agency Funds

Payroll – To account for and report the collection of gross payroll for respective funds and disbursements of net pay to employees and withholding to proper vendors.

Undivided Taxes – To account for and report the collection and distribution of various taxes including property, motor vehicle, and estate taxes.

Other Agency – To account for and report the revenues and expenditures associated with various other agency funds. Among these are the collection and distribution of local government taxes levied and collected by the State of Ohio. Also included are the collection and distribution of monies held by County agencies in outside bank accounts, monies held outside of the County treasury by the courts, and all funds that are not part of the County’s reporting entity, but for whom the County serves as fiscal agent.

Board of Health – To account for and report the revenues and expenditures for the Board of Health for which the County serves as fiscal agent.

United States Treasury – To account for and report interest earned on investments and allocated to the various funds.

College Savings Program – To account for and report County and citizen deposits towards a program that provides a savings vehicle for student’s post-secondary education.

- 150 - Cuyahoga County, Ohio Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Year Ended December 31, 2014

Beginning Ending Balance Balance 12/31/2013 Additions Deletions 12/31/2014

Payroll Assets Equity in Pooled Cash and Cash Equivalents $5,412,287 $555,811,540 $555,706,869 $5,516,958

Liabilities Undistributed Monies $5,412,287 $555,811,540 $555,706,869 $5,516,958

Undivided Taxes Assets Equity in Pooled Cash and Cash Equivalents $168,794,605 $2,765,097,966 $2,694,943,980 $238,948,591 Property Taxes Receivable 2,902,056,088 3,012,729,887 2,902,056,088 3,012,729,887 Special Assessments Receivable 98,104,579 108,314,469 98,104,579 108,314,469

Total Assets $3,168,955,272 $5,886,142,322 $5,695,104,647 $3,359,992,947

Liabilities Undistributed Monies $3,168,955,272 $5,886,142,322 $5,695,104,647 $3,359,992,947

Other Agency Assets Equity in Pooled Cash and Cash Equivalents $1,063,129 $3,584,292 $3,488,292 $1,159,129 Cash and Cash Equivalents in Segregated Accounts 261,699,581 400,605,498 619,005,009 43,300,070

Total Assets $262,762,710 $404,189,790 $622,493,301 $44,459,199

Liabilities Deposits Held and Due to Others $262,762,710 $404,189,790 $622,493,301 $44,459,199

Board of Health Assets Equity in Pooled Cash and Cash Equivalents $7,476,687 $21,498,337 $21,365,616 $7,609,408

Liabilities Deposits Held and Due to Others $7,476,687 $21,498,337 $21,365,616 $7,609,408

(continued)

- 151 - Cuyahoga County, Ohio Combining Statement of Changes in Assets and Liabilities All Agency Funds (continued) For the Year Ended December 31, 2014

Beginning Ending Balance Balance 12/31/2013 Additions Deletions 12/31/2014

United States Treasury Assets Equity in Pooled Cash and Cash Equivalents $0 $5,234,162 $5,234,162 $0

Liabilities Deposits Held and Due to Others $0 $5,234,162 $5,234,162 $0

College Savings Program Assets Cash and Cash Equivalents In Segregated Accounts $0 $3,050,000 $1,042,200 $2,007,800

Liabilities Deposits Held and Due to Others $0 $3,050,000 $1,042,200 $2,007,800

All Agency Funds Assets Equity in Pooled Cash and Cash Equivalents $182,746,708 $3,351,226,297 $3,280,738,919 $253,234,086 Cash and Cash Equivalents In Segregated Accounts 261,699,581 403,655,498 620,047,209 45,307,870 Property Taxes Receivable 2,902,056,088 3,012,729,887 2,902,056,088 3,012,729,887 Special Assessments Receivable 98,104,579 108,314,469 98,104,579 108,314,469

Total Assets $3,444,606,956 $6,875,926,151 $6,900,946,795 $3,419,586,312

Liabilities Undistributed Monies $3,174,367,559 $6,441,953,862 $6,250,811,516 $3,365,509,905 Deposits Held and Due to Others 270,239,397 433,972,289 650,135,279 54,076,407

Total Liabilities $3,444,606,956 $6,875,926,151 $6,900,946,795 $3,419,586,312

- 152 -

Individual Fund Schedules of Revenues, Expenditures/Expenses and Changes in Fund Balance/Fund Equity – Budget and Actual

- 153 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General Budget Basis For the Year Ended December 31, 2014

Total Revenues 386,465,637 399,504,463 407,033,606 7,529,143

Expenditures Current: General Government - Legislative and Executive: Vital Statistics: Other 10,976 10,976 10,234 742

Administration: Personal Services 6,397,255 6,397,255 6,011,300 385,955 Other 2,098,408 2,098,408 1,104,977 993,431 Capital Outlay 160,000 160,000 154,807 5,193

Total Administration 8,655,663 8,655,663 7,271,084 1,384,579

Primary Election: Personal Services 678,918 678,918 516,091 162,827 Other 2,730,427 2,730,427 2,062,033 668,394

Total Primary Election 3,409,345 3,409,345 2,578,124 831,221

General Election: Personal Services 854,251 854,251 744,733 109,518 Other 3,417,915 3,417,915 2,437,963 979,952

Total General Election 4,272,166 4,272,166 3,182,696 1,089,470

Special Election: Personal Services 10,000 10,000 0 10,000 Other 205,977 205,977 76,889 129,088

Total Special Election 215,977 215,977 76,889 139,088

Electronic Voting Consultation: Other 668,552 668,552 548,496 120,056 Capital Outlay 31,892 31,892 24,018 7,874

Total Electronic Voting Consultation $700,444 $700,444 $572,514 $127,930

(continued) - 154 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) County Administrator: Other $24,800 $0 $0 $0

County Council: Personal Services 1,510,078 1,510,078 1,422,078 88,000 Other 308,004 348,849 265,998 82,851 Capital Outlay 23,000 23,000 21,554 1,446

Total County Council 1,841,082 1,881,927 1,709,630 172,297

Property Management: Personal Services 142,638 87,638 86,417 1,221 Other 2,279,768 1,773,543 1,688,136 85,407

Total Property Management 2,422,406 1,861,181 1,774,553 86,628

Archives: Personal Services 252,643 329,893 290,801 39,092 Other 103,779 310,298 266,152 44,146

Total Archives 356,422 640,191 556,953 83,238

Communications: Personal Services 436,698 436,698 403,555 33,143 Other 27,553 27,553 10,750 16,803 Capital Outlay 7,088 7,088 3,927 3,161

Total Communications 471,339 471,339 418,232 53,107

Debarment Review Board: Personal Services 0 3,000 0 3,000

County Executive: Personal Services 1,140,384 1,140,384 1,023,425 116,959 Other 582,456 582,456 429,456 153,000

Total County Executive 1,722,840 1,722,840 1,452,881 269,959

County Executive Transition: Personal Services 0 135,000 135,000 0 Other 0 115,000 115,000 0

Total County Executive Transition 0 250,000 250,000 0

Administration-Fiscal Services: Personal Services 777,831 1,023,802 778,920 244,882 Other 236,923 236,923 165,293 71,630 Capital Outlay 788 788 788 0

Total Administration-Fiscal Services $1,015,542 $1,261,513 $945,001 $316,512

(continued) - 155 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Office of Budget and Management - Fiscal Services: Personal Services $1,000,190 $1,000,190 $710,871 $289,319 Other 2,098,754 2,096,454 2,044,253 52,201

Total Office of Budget and Management - Fiscal Services 3,098,944 3,096,644 2,755,124 341,520

Financial Reporting: Personal Services 2,059,893 1,855,034 1,849,824 5,210 Other 1,481,149 1,372,934 1,163,476 209,458

Total Financial Reporting 3,541,042 3,227,968 3,013,300 214,668

Property Valuations: Personal Services 4,941,180 4,941,180 4,445,390 495,790 Other 1,988,044 1,988,044 1,821,211 166,833 Capital Outlay 81,728 81,728 81,703 25

Total Property Valuations 7,010,952 7,010,952 6,348,304 662,648

Treasury Management: Personal Services 1,338,938 1,414,338 1,275,182 139,156 Other 1,326,273 1,326,273 879,382 446,891 Capital Outlay 788 788 0 788

Total Treasury Management 2,665,999 2,741,399 2,154,564 586,835

Office of Procurement and Diversity - Fiscal Services: Personal Services 1,390,716 1,334,293 1,204,896 129,397 Other 401,419 401,419 257,878 143,541

Total Office of Procurement and Diversity - Fiscal Services 1,792,135 1,735,712 1,462,774 272,938

General (Consumer Affairs): Personal Services 718,839 680,339 485,514 194,825 Other 30,823 29,366 12,137 17,229 Capital Outlay 0 39,957 39,957 0

Total General (Consumer Affairs) 749,662 749,662 537,608 212,054

Human Resources Commission: Personal Services 460,475 461,809 392,045 69,764 Other 192,176 192,176 190,017 2,159 Capital Outlay 4,867 29,867 3,111 26,756

Total Human Resources Commission $657,518 $683,852 $585,173 $98,679

(continued)

- 156 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Human Resources Administration: Personal Services $3,496,987 $3,326,987 $3,285,615 $41,372 Other 504,609 344,609 290,897 53,712 Capital Outlay 788 150,788 143,359 7,429

Total Human Resources Administration 4,002,384 3,822,384 3,719,871 102,513

Employee Benefits: Other 0 180,000 0 180,000

Internal Audit: Personal Services 457,458 454,758 330,136 124,622 Other 90,416 90,416 38,406 52,010 Capital Outlay 0 2,700 2,668 32

Total Internal Audit 547,874 547,874 371,210 176,664

Inspector General: Personal Services 699,152 699,152 679,929 19,223 Other 310,613 310,613 203,985 106,628 Capital Outlay 2,087 2,087 2,087 0

Total Inspector General 1,011,852 1,011,852 886,001 125,851

Information Technology Administration: Personal Services 1,598,614 1,629,771 1,591,921 37,850 Other 1,560,276 1,553,276 1,386,124 167,152 Capital Outlay 670 7,670 4,808 2,862

Total Information Technology Administration 3,159,560 3,190,717 2,982,853 207,864

Web and Multi-Media Development: Personal Services 1,962,109 1,925,009 1,915,910 9,099 Other 2,548,244 2,035,746 1,789,021 246,725 Capital Outlay 3,700 16,198 10,498 5,700

Total Web and Multi-Media Development 4,514,053 3,976,953 3,715,429 261,524

Security and Disaster Recovery: Personal Services 143,842 143,842 140,096 3,746 Other 63,291 73,745 73,450 295 Capital Outlay 0 143,135 131,930 11,205

Total Security and Disaster Recovery 207,133 360,722 345,476 15,246

Engineering Services: Personal Services 1,865,648 2,064,148 2,009,717 54,431 Other 1,571,848 1,202,364 1,202,364 0 Capital Outlay 34,415 95,915 92,827 3,088

Total Engineering Services $3,471,911 $3,362,427 $3,304,908 $57,519

(continued) - 157 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Mainframe Operation Services: Personal Services $1,090,861 $1,090,861 $1,061,223 $29,638 Other 1,321,774 1,365,678 1,264,514 101,164 Capital Outlay 575 5,575 4,835 740

Total Mainframe Operation Services 2,413,210 2,462,114 2,330,572 131,542

User Supply: Other 471,371 471,371 465,458 5,913

WAN Services: Personal Services 557,813 557,813 555,048 2,765 Other 2,572,958 2,610,392 2,587,910 22,482 Capital Outlay 1,538 461,538 458,862 2,676

Total WAN Services 3,132,309 3,629,743 3,601,820 27,923

Communication Services: Personal Services 723,856 668,856 628,164 40,692 Other 1,739,831 1,582,784 1,526,134 56,650 Capital Outlay 0 3,458 3,458 0

Total Communication Services 2,463,687 2,255,098 2,157,756 97,342

IT Reg. Enterprise Data Sharing Sys: Personal Services 0 465,223 464,518 705

Information Technology: Other 948,466 841,466 641,632 199,834 Capital Outlay 642,560 642,560 458,312 184,248

Total Information Technology 1,591,026 1,484,026 1,099,944 384,082

General Fund Reserve and Contingencies: Other 5,570,000 5,570,000 0 5,570,000

Fiscal Certificate of Title Administration - Records and Licenses: Personal Services 3,106,825 3,106,825 2,867,726 239,099 Other 1,318,790 1,314,674 1,107,630 207,044 Capital Outlay 48,499 54,915 52,615 2,300

Total Fiscal Certificate of Title Administration - Records and Licenses 4,474,114 4,476,414 4,027,971 448,443

Recorders Housing Trust - General Office: Other 0 0 4,849,036 (4,849,036)

Agricultural Society: Other $3,300 $3,300 $0 $3,300

(continued) - 158 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Memorial Day: Other $67,772 $67,772 $60,196 $7,576

Soldiers and Sailors Monument: Personal Services 151,094 162,094 159,212 2,882 Other 58,602 88,602 66,338 22,264

Total Soldiers and Sailors Monument 209,696 250,696 225,550 25,146

Refunds: Other 1,049,548 1,467,004 1,467,004 0

Self Insurance: Other 385,943 735,942 735,942 0

Miscellaneous: Other 1,078,698 2,182,533 2,182,425 108

2011 Surplus in Trust: Other 0 0 270 (270) . 2012 Surplus in Trust: Other 0 0 5,752,687 (5,752,687)

Unclaimed Monies: Other 0 0 1,161,487 (1,161,487)

Unclaimed Cancelled Aged Warrants: Other 0 0 510,166 (510,166)

Total Legislative and Executive 84,460,695 86,576,916 84,074,188 2,502,728

Judicial: Board and Care of Prisoners: Other 1,003,601 1,320,268 1,320,148 120

Court of Appeals: Other 620,988 750,988 666,195 84,793 Capital Outlay 366,000 236,000 225,937 10,063

Total Court of Appeals 986,988 986,988 892,132 94,856

Clerk of Courts: Personal Services 5,648,498 5,548,498 5,447,759 100,739 Other 4,628,400 4,728,399 4,697,487 30,912 Capital Outlay 144,447 144,448 144,447 1

Total Clerk of Courts $10,421,345 $10,421,345 $10,289,693 $131,652

(continued)

- 159 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Judicial General: Personal Services $7,774,141 $7,999,141 $7,823,220 $175,921 Other 16,622,778 15,861,278 14,417,621 1,443,657 Capital Outlay 679,193 876,193 872,306 3,887

Total Judicial General 25,076,112 24,736,612 23,113,147 1,623,465

Arbitration: Personal Services 1,224,039 1,244,039 1,185,604 58,435 Other 177,733 103,233 65,681 37,552

Total Arbitration 1,401,772 1,347,272 1,251,285 95,987

Central Scheduling: Personal Services 7,159,666 6,774,666 6,666,987 107,679 Other 772,017 867,017 773,921 93,096 Capital Outlay 7,439 7,439 7,439 0

Total Central Scheduling 7,939,122 7,649,122 7,448,347 200,775

Probation: Personal Services 11,202,010 11,803,091 11,601,289 201,802 Other 2,098,681 2,148,681 1,927,590 221,091 Capital Outlay 12,000 12,000 12,000 0

Total Probation 13,312,691 13,963,772 13,540,879 422,893

Medical Examiner Operations: Personal Services 4,088,792 4,031,292 3,894,484 136,808 Other 2,445,437 1,970,437 1,844,796 125,641 Capital Outlay 117 7,617 923 6,694

Total Medical Examiner Operations 6,534,346 6,009,346 5,740,203 269,143

Domestic Relations: Personal Services 2,485,798 2,682,198 2,677,562 4,636 Other 1,277,864 1,167,864 1,114,588 53,276 Capital Outlay 23,995 50,995 50,994 1

Total Domestic Relations 3,787,657 3,901,057 3,843,144 57,913

Bureau of Support: Personal Services 3,118,037 3,270,637 3,255,850 14,787 Other 896,207 880,207 822,355 57,852 Capital Outlay 22,819 45,819 45,735 84

Total Bureau of Support $4,037,063 $4,196,663 $4,123,940 $72,723

(continued)

- 160 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Justice Affairs Administration: Personal Services $997,629 $997,629 $811,715 $185,914 Other 571,861 531,018 215,016 316,002 Capital Outlay 1,879 22,279 18,425 3,854

Total Justice Affairs Administration 1,571,369 1,550,926 1,045,156 505,770

Public Safety Grants Administration: Personal Services 268,066 268,066 198,289 69,777 Other 747,332 747,332 746,349 983 Capital Outlay 25,048 25,048 25,048 0

Total Public Safety Grants Administration 1,040,446 1,040,446 969,686 70,760

Fusion Center: Personal Services 100,947 100,947 50,435 50,512 Other 112,100 112,100 74,061 38,039 Capital Outlay 5,000 5,000 1,704 3,296

Total Fusion Center 218,047 218,047 126,200 91,847

Juvenile Court Administration: Personal Services 1,662,020 1,691,327 1,690,034 1,293 Other 5,240,922 4,002,617 3,992,839 9,778

Total Juvenile Court Administration 6,902,942 5,693,944 5,682,873 11,071

Juvenile Court Legal: Personal Services 7,205,095 7,628,256 7,628,116 140 Other 4,092,079 3,517,297 3,507,677 9,620 Capital Outlay 3,076 5,176 4,511 665

Total Juvenile Court Legal 11,300,250 11,150,729 11,140,304 10,425

Juvenile Court Child Support: Personal Services 3,332,474 3,576,474 3,573,547 2,927 Other 781,417 672,417 671,063 1,354

Total Juvenile Court Child Support 4,113,891 4,248,891 4,244,610 4,281

Juvenile Court Detention Home: Personal Services 9,096,329 10,268,680 10,268,514 166 Other 3,597,039 3,586,033 3,583,498 2,535

Total Juvenile Court Detention Home 12,693,368 13,854,713 13,852,012 2,701

Law Department: Personal Services 1,650,961 1,677,696 1,672,895 4,801 Other 207,766 324,766 324,754 12 Capital Outlay 43,668 6,933 6,931 2

Total Law Department $1,902,395 $2,009,395 $2,004,580 $4,815

- 161 - (continued) Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Municipal Judicial Cost: Personal Services $107,416 $461,116 $424,690 $36,426 Other 2,709,495 2,933,835 2,933,314 521

Total Municipal Judicial Cost 2,816,911 3,394,951 3,358,004 36,947

Village and Township Costs: Other 0 5,000 3,564 1,436

Probate Court: Personal Services 4,627,328 4,627,328 4,521,581 105,747 Other 1,370,447 1,250,447 1,004,786 245,661

Total Probate Court 5,997,775 5,877,775 5,526,367 351,408

Public Defender: Personal Services 7,226,820 7,361,955 6,995,125 366,830 Other 1,880,906 1,848,906 1,836,497 12,409

Total Public Defender 9,107,726 9,210,861 8,831,622 379,239

General Office: Personal Services 19,515,923 19,265,923 19,114,432 151,491 Other 4,035,745 3,788,618 3,779,877 8,741 Capital Outlay 228,737 584,737 362,758 221,979

Total General Office 23,780,405 23,639,278 23,257,067 382,211

Child Support: Personal Services 3,185,018 3,165,018 2,911,113 253,905 Other 377,688 539,815 423,590 116,225 Capital Outlay 1,000 0 0 0

Total Child Support 3,563,706 3,704,833 3,334,703 370,130

Children and Family Services: Personal Services 2,236,205 2,236,205 2,075,703 160,502 Other 98,470 48,470 32,980 15,490 Capital Outlay 1,000 1,000 0 1,000

Total Children and Family Services 2,335,675 2,285,675 2,108,683 176,992

Law Enforcement Sheriff: Personal Services 16,049,022 14,945,322 14,817,369 127,953 Other 1,204,956 1,086,956 1,073,651 13,305 Capital Outlay 287,277 244,277 243,879 398

Total Law Enforcement Sheriff $17,541,255 $16,276,555 $16,134,899 $141,656

(continued)

- 162 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Jail Operations - Sheriff: Personal Services $44,168,269 $47,256,392 $46,855,051 $401,341 Other 15,322,261 19,081,324 19,018,220 63,104 Capital Outlay 0 1,817,633 1,817,633 0

Total Jail Operations - Sheriff 59,490,530 68,155,349 67,690,904 464,445

Sheriff Operations: Personal Services 5,194,810 5,044,810 5,016,032 28,778 Other 1,265,841 667,278 660,683 6,595 Capital Outlay 6,024 6,024 6,024 0

Total Sheriff Operations 6,466,675 5,718,112 5,682,739 35,373

Impact Unit Community Policing: Personal Services 920,356 905,356 887,618 17,738 Other 76,859 38,859 36,639 2,220

Total Impact Unit Community Policing 997,215 944,215 924,257 19,958

Coroner's Lab: Personal Services 250,398 250,398 194,248 56,150 Other 148,326 238,326 184,482 53,844 Capital Outlay 477,552 577,552 550,200 27,352

Total Coroner's Lab 876,276 1,066,276 928,930 137,346

Custody Mediation Subsidy: Other 70,915 70,915 0 70,915

ORC Court Fines: Other 0 0 1,627,210 (1,627,210)

Total Judicial 247,288,469 254,649,331 250,037,288 4,612,043

Total General Government 331,749,164 341,226,247 334,111,476 7,114,771

Public Works: County Airport: Other 594,721 594,721 0 594,721

Health and Safety: Cuyahoga County Emergency Communications System: Personal Services 190,014 133,414 125,079 8,335 Other 297,989 369,032 341,908 27,124 Capital Outlay 0 6,000 4,155 1,845

Total Health and Safety $488,003 $508,446 $471,142 $37,304

(continued)

- 163 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Social Services: Veteran's Service Commission: Personal Services $2,462,378 $2,462,378 $2,427,777 $34,601 Other 4,473,566 4,403,566 4,383,439 20,127 Capital Outlay 51,000 121,000 120,985 15

Total Veteran's Service Commission 6,986,944 6,986,944 6,932,201 54,743

Cooperative Extension: Other 247,000 247,000 247,000 0

Ombudsman Program: Other 500 500 0 500

College Savings Program: Personal Services 75,400 0 0 0 Other 3,507,140 3,507,140 3,252,328 254,812

Total College Savings Program 3,582,540 3,507,140 3,252,328 254,812

Total Social Services 10,816,984 10,741,584 10,431,529 310,055

Community Development: Economic Development: Personal Services 1,165,589 1,165,589 1,084,133 81,456 Other 2,523,392 2,523,392 2,320,709 202,683

Total Economic Development 3,688,981 3,688,981 3,404,842 284,139

Regional Collaboration: Personal Services 222,499 222,499 148,031 74,468 Other 29,644 29,644 27,752 1,892

Total Regional Collaboration 252,143 252,143 175,783 76,360

NOACA: Other 174,259 174,259 165,637 8,622

Western Reserve Fund Subsidy: Other 750,000 750,000 0 750,000

Casino Tax Fund: Other 3,000,000 6,684,650 5,184,650 1,500,000

County Planning Commission Administration: Personal Services 1,292,226 1,292,226 1,173,313 118,913 Other 233,761 233,761 212,864 20,897 Capital Outlay 1,447 1,447 1,447 0

Total County Planning Commission Administration $1,527,434 $1,527,434 $1,387,624 $139,810

(continued) - 164 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual General (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Medical Mart: Other $9,150,000 $9,698,000 $8,760,500 $937,500

Total Community Development 18,542,817 22,775,467 19,079,036 3,696,431

Debt Service: Gateway: Principal Retirement 250,000 250,000 500,000 (250,000)

Total Expenditures 362,441,689 376,096,465 364,593,183 11,503,282

Excess of Revenues Over (Under) Expenditures 24,023,948 23,407,998 42,440,423 19,032,425

Other Financing Sources (Uses) Sale of Capital Assets 274 284 289 5 Transfers In 4,717,835 4,946,072 5,063,919 117,847 Transfers Out (47,689,649) (63,893,239) (62,577,147) 1,316,092

Total Other Financing Sources (Uses) (42,971,540) (58,946,883) (57,512,939) 1,433,944

Net Change in Fund Balance (18,947,592) (35,538,885) (15,072,516) 20,466,369

Fund Balance Beginning of Year 197,179,390 197,179,390 197,179,390 0 Prior Year Encumbrances Appropriated 22,948,938 22,948,938 22,948,938 0

Fund Balance End of Year $201,180,736 $184,589,443 $205,055,812 $20,466,369

- 165 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Human Services Budget Basis For the Year Ended December 31, 2014

Total Revenues 199,996,487 246,219,846 205,772,116 (40,447,730)

Expenditures Current: Social Services: Office of the Director - Children and Family Services: Personal Services 5,033,021 4,797,021 4,794,280 2,741 Other 10,148,338 11,184,238 11,025,177 159,061 Capital Outlay 725,235 707,235 656,464 50,771

Total Office of the Director - Children and Family Services 15,906,594 16,688,494 16,475,921 212,573

Training: Personal Services 738,037 452,037 450,706 1,331 Other 117,495 134,495 85,958 48,537

Total Training 855,532 586,532 536,664 49,868

Information Services: Personal Services 1,358,542 1,138,542 1,160,098 (21,556) Other 1,332,940 1,775,465 1,570,021 205,444

Total Information Services 2,691,482 2,914,007 2,730,119 183,888

Direct Services: Personal Services 36,564,666 34,177,666 34,120,825 56,841 Other 1,498,622 1,407,622 1,382,604 25,018

Total Direct Services 38,063,288 35,585,288 35,503,429 81,859

Supportive Services: Personal Services 2,462,049 2,515,049 2,501,408 13,641 Other 2,252,718 2,556,718 2,537,009 19,709

Total Supportive Services $4,714,767 $5,071,767 $5,038,417 $33,350

(continued)

- 166 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Human Services (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Foster and Adoptive Parents: Personal Services $332,384 $361,384 $316,903 $44,481 Other 289,386 289,386 257,635 31,751

Total Foster and Adoptive Parents 621,770 650,770 574,538 76,232

Visitation: Personal Services 788,290 854,290 821,020 33,270 Other 208,851 215,851 213,344 2,507

Total Visitation 997,141 1,070,141 1,034,364 35,777

Contracted Placements: Personal Services 1,475,130 1,550,130 1,539,119 11,011 Other 18,003 21,103 18,415 2,688

Total Contracted Placements 1,493,133 1,571,233 1,557,534 13,699

Foster Homes: Personal Services 3,483,589 3,325,589 3,321,731 3,858 Other 219,884 248,884 224,585 24,299

Total Foster Homes 3,703,473 3,574,473 3,546,316 28,157

Permanent Custody Adoptions: Personal Services 4,214,985 4,208,985 4,193,611 15,374 Other 163,022 221,022 212,518 8,504

Total Permanent Custody Adoptions 4,378,007 4,430,007 4,406,129 23,878

Office of the Director - Senior and Adult Services: Personal Services 1,125,970 883,814 882,338 1,476 Other 1,513,353 1,617,353 1,331,598 285,755 Capital Outlay 13,259 13,259 13,259 0

Total Office of the Director - Senior and Adult Services 2,652,582 2,514,426 2,227,195 287,231

Human Resources: Personal Services $698,794 $698,794 $645,981 $52,813

(continued)

- 167 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Human Services (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Information Services - Human Services: Personal Services $3,517,688 $3,517,688 $3,457,107 $60,581 Other 0 1,330,569 1,321,288 9,281 Capital Outlay 0 428,469 428,469 0

Total Information Services - Human Services 3,517,688 5,276,726 5,206,864 69,862

Tapestry System of Care - Children and Family Services: Personal Services 393,177 419,177 413,423 5,754 Other 7,826,607 6,750,915 6,734,881 16,034

Total Tapestry System of Care - Children and Family Services 8,219,784 7,170,092 7,148,304 21,788

Administrative Services - General Manager: Personal Services 1,697,905 1,647,905 1,635,856 12,049 Other 8,781,058 7,741,058 7,436,745 304,313 Capital Outlay 77,753 77,753 61,322 16,431

Total Administrative Services - General Manager 10,556,716 9,466,716 9,133,923 332,793

Information Services: Personal Services 457,881 0 0 0 Other 833,138 277,569 277,544 25 Capital Outlay 1,078,469 0 0 0

Total Information Services 2,369,488 277,569 277,544 25

Work First Services: Personal Services 1,436,498 1,516,498 1,493,326 23,172 Other 18,218,042 19,427,189 18,687,337 739,852

Total Work First Services 19,654,540 20,943,687 20,180,663 763,024

Southgate: Personal Services 4,112,211 4,757,211 4,755,762 1,449 Other 783,883 773,883 771,895 1,988

Total Southgate 4,896,094 5,531,094 5,527,657 3,437

Ohio City: Personal Services 3,637,329 4,285,329 4,274,088 11,241 Other 1,489,164 1,489,164 1,485,106 4,058

Total Ohio City $5,126,493 $5,774,493 $5,759,194 $15,299

(continued) - 168 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Human Services (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Quincy Place: Personal Services $4,644,020 $5,557,020 $5,551,416 $5,604 Other 1,819,581 1,626,581 1,620,512 6,069

Total Quincy Place 6,463,601 7,183,601 7,171,928 11,673

Veteran Employment Building: Personal Services 19,946,728 18,490,609 18,518,952 (28,343) Other 1,298,543 1,211,643 1,204,028 7,615

Total Veteran Employment Building 21,245,271 19,702,252 19,722,980 (20,728)

West Shore: Personal Services 4,254,672 4,748,672 4,742,747 5,925 Other 1,515,701 1,520,201 1,516,358 3,843

Total West Shore 5,770,373 6,268,873 6,259,105 9,768

Client Support Services: Personal Services 5,929,127 6,154,127 6,114,589 39,538 Other 6,563,381 6,828,381 6,787,566 40,815

Total Client Support Services 12,492,508 12,982,508 12,902,155 80,353

Children with Medical Handicaps: Other 1,405,732 2,089,732 1,869,462 220,270

Office of the Director: Personal Services 614,425 604,706 599,227 5,479 Other 1,703,903 1,975,653 1,917,241 58,412 Capital Outlay 1,115,325 1,117,825 1,089,369 28,456

Total Office of the Director 3,433,653 3,698,184 3,605,837 92,347

Management Services: Personal Services 892,465 965,664 965,664 0 Other 24,188 28,588 22,919 5,669

Total Management Services 916,653 994,252 988,583 5,669

Community Programs: Other $1,737,198 $1,507,818 $1,498,807 $9,011

(continued)

- 169 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Human Services (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Home Support: Personal Services $1,440,598 $1,378,598 $1,372,326 $6,272 Other 208,715 218,715 204,452 14,263

Total Home Support 1,649,313 1,597,313 1,576,778 20,535

Protective Services: Personal Services 2,665,292 2,638,892 2,632,950 5,942 Other 769,739 803,539 790,349 13,190

Total Protective Services 3,435,031 3,442,431 3,423,299 19,132

Information and Outreach Services: Personal Services 601,474 590,974 590,873 101 Other 27,257 36,201 31,071 5,130

Total Information and Outreach Services 628,731 627,175 621,944 5,231

Home Care Skill Services: Other 7,603 0 0 0

Home Based Services: Personal Services 2,844,575 2,533,575 2,527,185 6,390 Other 203,003 218,606 208,577 10,029

Total Home Based Services 3,047,578 2,752,181 2,735,762 16,419

Resource and Training: Personal Services 507,841 498,691 498,433 258 Other 13,748 13,954 9,562 4,392

Total Resource and Training 521,589 512,645 507,995 4,650

Options Program: Personal Services 1,533,546 1,390,546 1,390,252 294 Other 3,697,890 3,554,770 3,535,017 19,753

Total Options Program 5,231,436 4,945,316 4,925,269 20,047

Administrative Services: Personal Services 650,732 661,732 661,068 664 Other 238,573 393,573 393,213 360

Total Administrative Services 889,305 1,055,305 1,054,281 1,024

Early Start: Other $3,043,066 $2,740,066 $2,739,751 $315

(continued) - 170 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Human Services (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Health and Safety: Other $342,770 $342,770 $342,737 $33

Quality Child Care: Other 13,836,297 13,698,497 13,664,328 34,169

Family and Children First: Personal Services 653,257 643,280 641,813 1,467 Other 7,876,671 7,777,371 7,776,529 842 Capital Outlay 0 5,000 4,308 692

Total Family and Children First 8,529,928 8,425,651 8,422,650 3,001

Workforce Investment Act Stimulus: Other 125,484 0 0 0

Executive and Financial Operations: Personal Services 531,492 456,492 451,414 5,078 Other 15,368,283 16,310,673 15,558,364 752,309 Capital Outlay 3,142 3,142 3,142 0

Total Executive and Financial Operations 15,902,917 16,770,307 16,012,920 757,387

Executive and Financial Operations: Personal Services 400,000 430,000 414,364 15,636 Other 1,600,000 1,570,000 468,188 1,101,812

Total Executive and Financial Operations 2,000,000 2,000,000 882,552 1,117,448

Total Expenditures 243,773,403 243,133,186 238,439,879 4,693,307

Excess of Revenues Over (Under) Expenditures (43,776,916) 3,086,660 (32,667,763) (35,754,423)

Other Financing Sources (Uses) Transfers In 195,359 240,509 201,000 (39,509)

Net Change in Fund Balance (43,581,557) 3,327,169 (32,466,763) (35,793,932)

Fund Deficit Beginning of Year (42,794,475) (42,794,475) (42,794,475) 0 Prior Year Encumbrances Appropriated 39,487,222 39,487,222 39,487,222 0

Fund Balance (Deficit) End of Year ($46,888,810) $19,916 ($35,774,016) ($35,793,932)

- 171 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Health and Human Services Levy Budget Basis For the Year Ended December 31, 2014

Total Revenues 80,178,710 68,500,491 66,864,339 (1,636,152)

Expenditures Current: General Government - Judicial: Office of Reentry: Personal Services 471,201 471,201 434,969 36,232 Other 2,479,256 2,479,256 2,346,836 132,420

Total Office of Reentry 2,950,457 2,950,457 2,781,805 168,652

Adult Reentry Court: Personal Services 0 65,088 0 65,088 Other 0 1,912 0 1,912

Total Adult Reentry Court 0 67,000 0 67,000

Criminal Justice Intervention: Other 250,000 250,000 250,000 0

Legal Services: Personal Services 112,592 172,149 170,024 2,125 Other 3,485,056 2,732,974 2,612,731 120,243

Total Legal Services 3,597,648 2,905,123 2,782,755 122,368

Community Social Services: Personal Services 5,190,666 5,575,074 5,562,275 12,799 Other 5,330,783 6,895,802 6,895,674 128

Total Community Social Services 10,521,449 12,470,876 12,457,949 12,927

Detention Home: Personal Services 632,413 396,522 395,376 1,146 Other 3,751,764 4,179,990 4,179,339 651

Total Detention Home 4,384,177 4,576,512 4,574,715 1,797

Youth and Family: Personal Services 976,294 783,294 779,998 3,296 Other 4,212,566 3,184,566 3,159,107 25,459

Total Youth and Family $5,188,860 $3,967,860 $3,939,105 $28,755

(continued) - 172 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Health and Human Services Levy (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Family Justice Center: Personal Services $80,201 $80,201 $77,506 $2,695 Other 169,799 344,799 325,000 19,799

Total Family Justice Center 250,000 425,000 402,506 22,494

Total General Government - Judicial 27,142,591 27,612,828 27,188,835 423,993

Health and Safety: Hospital Operations - Levy 2: Other 20,040,000 20,040,000 20,040,000 0

Hospital Operations - Levy 4: Other 20,040,000 20,040,000 20,040,000 0

Total Health and Safety 40,080,000 40,080,000 40,080,000 0

Social Services: Homeless Services: Personal Services 317,346 390,199 389,188 1,011 Other 6,954,443 5,868,889 5,867,847 1,042 Capital Outlay 0 1,804 1,804 0

Total Homeless Services 7,271,789 6,260,892 6,258,839 2,053

Educational Assistance: Other 1,330,775 1,330,775 1,217,110 113,665

Total Social Services 8,602,564 7,591,667 7,475,949 115,718

Total Expenditures 75,825,155 75,284,495 74,744,784 539,711

Excess of Revenues Over (Under) Expenditures 4,353,555 (6,784,004) (7,880,445) (1,096,441)

Other Financing Sources (Uses) Transfers In 2,902,146 1,233,747 1,000,000 (233,747) Transfers Out (2,903,157) (6,803,151) 0 6,803,151

Total Other Financing Sources (Uses) (1,011) (5,569,404) 1,000,000 6,569,404

Net Change in Fund Balance 4,352,544 (12,353,408) (6,880,445) 5,472,963

Fund Balance Beginning of Year 29,494,742 29,494,742 29,494,742 0 Prior Year Encumbrances Appropriated 8,535,420 8,535,420 8,535,420 0

Fund Balance End of Year $42,382,706 $25,676,754 $31,149,717 $5,472,963

- 173 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual County Board of Developmental Disabilities Budget Basis For the Year Ended December 31, 2014

Total Revenues 200,151,969 188,181,741 189,601,347 1,419,606

Expenditures Current: Social Services: Board of Developmental Disabilities: Personal Services 87,010,736 87,010,736 84,179,992 2,830,744 Other 118,340,662 118,340,662 113,427,862 4,912,800 Capital Outlay 4,053,229 4,053,229 3,095,864 957,365

Total Expenditures 209,404,627 209,404,627 200,703,718 8,700,909

Excess of Revenues Over (Under) Expenditures (9,252,658) (21,222,886) (11,102,371) 10,120,515

Other Financing Sources (Uses) Sale of Capital Assets 34,972 32,881 33,129 248

Net Change in Fund Balance (9,217,686) (21,190,005) (11,069,242) 10,120,763

Fund Balance Beginning of Year 118,380,722 118,380,722 118,380,722 0 Prior Year Encumbrances Appropriated 7,071,589 7,071,589 7,071,589 0

Fund Balance End of Year $116,234,625 $104,262,306 $114,383,069 $10,120,763

- 174 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Children Services Budget Basis For the Year Ended December 31, 2014

Total Revenues 68,041,453 60,105,093 66,038,167 5,933,074

Expenditures Current: Social Services: Client Support Services: Other 9,655,352 9,460,352 9,522,469 (62,117)

Foster Care: Other 2,846,324 2,273,324 2,372,374 (99,050)

Purchased Congregate and Foster Care: Other 66,011,687 65,643,051 65,607,990 35,061

Adoption Services: Other 9,261,564 7,519,761 7,491,859 27,902

Total Expenditures 87,774,927 84,896,488 84,994,692 (98,204)

Net Change in Fund Balance (19,733,474) (24,791,395) (18,956,525) 5,834,870

Fund Balance Beginning of Year 29,611,562 29,611,562 29,611,562 0 Prior Year Encumbrances Appropriated 14,730,303 14,730,303 14,730,303 0

Fund Balance End of Year $24,608,391 $19,550,470 $25,385,340 $5,834,870

- 175 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Convention Center Hotel Construction Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

Revenues $0 $0 $0 $0

Expenditures Capital Outlay: Capital Project Future Debt Service Other 21,109,405 21,109,405 21,109,404 1

Excess of Revenues Over (Under) Expenditures (21,109,405) (21,109,405) (21,109,404) 1

Other Financing Sources (Uses) Certificates of Participation Issued 11,708,340 11,708,340 11,708,340 0

Net Change in Fund Balance (9,401,065) (9,401,065) (9,401,064) 1

Fund Deficit Beginning of Year (15,445,271) (15,445,271) (15,445,271) 0 Prior Year Encumbrances Appropriated 15,012,912 15,012,912 15,012,912 0

Fund Deficit End of Year ($9,833,424) ($9,833,424) ($9,833,423) $1

- 176 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual Sanitary Engineer Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $16,998,153 $104,580,760 $21,537,041 ($83,043,719) Interest 9 58 12 (46) Tap-in Fees 433,910 2,678,905 550,255 (2,128,650) OWDA Loan Proceeds 400,455 400,455 400,455 0 Other 16,880 381,124 40,252 (340,872) Intergovernmental 47,758 2,366,755 167,938 (2,198,817)

Total Revenues 17,897,165 110,408,057 22,695,953 (87,712,104)

Expenses Personal Services 10,093,647 9,493,647 9,067,305 426,342 Other 9,413,343 31,660,315 15,937,609 15,722,706 Capital Outlay (4,474,650) 3,625,350 3,198,439 426,911 Principal Retirement 1,134,645 1,134,645 1,134,645 0 Interest and Fiscal Charges 556,128 556,128 556,128 0

Total Expenses 16,723,113 46,470,085 29,894,126 16,575,959

Net Change in Fund Equity 1,174,052 63,937,972 (7,198,173) (71,136,145)

Fund Equity Beginning of Year 26,638,651 26,638,651 26,638,651 0 Prior Year Encumbrances Appropriated 8,646,763 8,646,763 8,646,763 0

Fund Equity End of Year $36,459,466 $99,223,386 $28,087,241 ($71,136,145)

- 177 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Motor Vehicle Gas Tax Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $204 $239 $230 ($9) Fines and Forfeitures 297,873 349,624 336,140 (13,484) Intergovernmental 25,338,713 29,740,951 28,593,953 (1,146,998) Interest 255,592 299,998 288,428 (11,570) Other 149,659 175,661 168,886 (6,775)

Total Revenues 26,042,041 30,566,473 29,387,637 (1,178,836)

Expenditures Current: Public Works: Construction Engineer and Test Lab: Personal Services 4,948,961 4,948,961 3,499,741 1,449,220 Other 1,320,328 1,320,328 624,271 696,057 Capital Outlay 114,313 114,313 30,654 83,659

Total Construction Engineer and Test Lab 6,383,602 6,383,602 4,154,666 2,228,936

Maintenance Engineer: Personal Services 4,980,071 4,980,071 3,384,798 1,595,273 Other 2,134,706 2,134,706 1,619,039 515,667 Capital Outlay 1,162,540 1,162,540 1,158,602 3,938

Total Maintenance Engineer 8,277,317 8,277,317 6,162,439 2,114,878

Road Capital Improvements: Other 3,308,675 6,808,675 0 6,808,675 Capital Outlay 7,140,787 14,140,787 11,194,939 2,945,848

Total Road Capital Improvements 10,449,462 20,949,462 11,194,939 9,754,523

Road and Bridge Registration Tax: Other 0 2,168,051 0 2,168,051 Capital Outlay 13,741,527 22,241,527 16,159,152 6,082,375

Total Road and Bridge Registration Tax 13,741,527 24,409,578 16,159,152 8,250,426

Total Public Works $38,851,908 $60,019,959 $37,671,196 $22,348,763

(continued)

- 178 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Motor Vehicle Gas Tax (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Debt Service: Principal Retirement $194,430 $698,704 $698,704 $0 Interest and Fiscal Charges 29,948 107,623 107,623 0

Total Debt Service 224,378 806,327 806,327 0

Total Expenditures 39,076,286 60,826,286 38,477,523 22,348,763

Excess of Revenues Over (Under) Expenditures (13,034,245) (30,259,813) (9,089,886) 21,169,927

Other Financing Sources (Uses) Transfers In 4,597,925 8,976,803 8,013,541 (963,262) Transfers Out (5,286,109) (9,986,109) (9,986,109) 0

Total Other Financing Sources (Uses) (688,184) (1,009,306) (1,972,568) (963,262)

Net Change in Fund Balance (13,722,429) (31,269,119) (11,062,454) 20,206,665

Fund Balance Beginning of Year 38,909,254 38,909,254 38,909,254 0 Prior Year Encumbrances Appropriated 12,137,128 12,137,128 12,137,128 0

Fund Balance End of Year $37,323,953 $19,777,263 $39,983,928 $20,206,665

- 179 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Real Estate Assessment Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $14,160,939 $15,084,242 $14,495,871 ($588,371) Intergovernmental 427,685 455,571 437,801 (17,770) Other 91,810 97,795 93,981 (3,814)

Total Revenues 14,680,434 15,637,608 15,027,653 (609,955)

Expenditures Current: General Government - Legislative and Executive: Board of Revision: Personal Services 3,145,907 2,945,907 2,652,220 293,687 Other 1,387,027 2,351,564 2,155,815 195,749

Total Board of Revision 4,532,934 5,297,471 4,808,035 489,436

Tax Assessment Contractual Services: Personal Services 3,401,056 3,728,573 3,726,055 2,518 Other 3,611,129 2,518,008 347,768 2,170,240 Capital Outlay 2,709 3,776 2,676 1,100

Total Tax Assessment Contractual Services 7,014,894 6,250,357 4,076,499 2,173,858

Total Expenditures 11,547,828 11,547,828 8,884,534 2,663,294

Excess of Revenues Over (Under) Expenditures 3,132,606 4,089,780 6,143,119 2,053,339

Other Financing Sources (Uses) Transfers Out (1,385,310) (1,385,310) (1,385,310) 0

Net Change in Fund Balance 1,747,296 2,704,470 4,757,809 2,053,339

Fund Balance Beginning of Year 8,202,089 8,202,089 8,202,089 0 Prior Year Encumbrances Appropriated 148,270 148,270 148,270 0

Fund Balance End of Year $10,097,655 $11,054,829 $13,108,168 $2,053,339

- 180 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Alcohol, Drug and Mental Health Board Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $37,251,375 $37,251,375 $35,446,972 ($1,804,403) Charges for Services 214,432 214,432 205,033 (9,399) Intergovernmental 32,167,138 32,167,138 30,928,916 (1,238,222)

Total Revenues 69,632,945 69,632,945 66,580,921 (3,052,024)

Expenditures Current: Health and Safety: Administrative Expenses: Personal Services 3,880,046 3,880,046 3,549,653 330,393 Contractual Services 1,475,750 1,475,750 1,207,567 268,183 Other 75,349,873 75,349,873 53,811,058 21,538,815 Capital Outlay 125,000 125,000 89,558 35,442

Total Expenditures 80,830,669 80,830,669 58,657,836 22,172,833

Net Change in Fund Balance (11,197,724) (11,197,724) 7,923,085 19,120,809

Fund Balance Beginning of Year 12,432,698 12,432,698 12,432,698 0 Prior Year Encumbrances Appropriated 2,698 2,698 2,698 0

Fund Balance End of Year $1,237,672 $1,237,672 $20,358,481 $19,120,809

- 181 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Cuyahoga Support Enforcement Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $1,388,357 $1,499,863 $1,337,760 ($162,103) Charges for Services 4,630,175 5,002,046 4,461,434 (540,612) Intergovernmental 24,116,122 26,052,998 23,237,238 (2,815,760) Other 60,311 65,154 58,113 (7,041)

Total Revenues 30,194,965 32,620,061 29,094,545 (3,525,516)

Expenditures Current: General Government - Judicial: Cuyahoga Support Enforcement Agency: Personal Services 19,360,626 18,924,426 18,950,169 (25,743) Other 13,874,036 13,203,036 13,156,302 46,734 Capital Outlay 4,000 664,000 654,304 9,696

Total General Government - Judicial 33,238,662 32,791,462 32,760,775 30,687

Social Services: Operations: Other 14,070 4,070 0 4,070

Total Expenditures 33,252,732 32,795,532 32,760,775 34,757

Net Change in Fund Balance (3,057,767) (175,471) (3,666,230) (3,490,759)

Fund Deficit Beginning of Year (2,882,296) (2,882,296) (2,882,296) 0 Prior Year Encumbrances Appropriated 3,057,767 3,057,767 3,057,767 0

Fund Deficit End of Year ($2,882,296) $0 ($3,490,759) ($3,490,759)

- 182 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Delinquent Real Estate Assessment Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $6,032,960 $6,333,031 $6,579,714 $246,683 Other 30,989 32,530 33,797 1,267

Total Revenues 6,063,949 6,365,561 6,613,511 247,950

Expenditures Current: General Government - Legislative and Executive: Tax Collections: Personal Services 1,024,491 1,024,491 878,259 146,232 Other 1,192,165 1,192,165 1,110,702 81,463

Total Legislative and Executive 2,216,656 2,216,656 1,988,961 227,695

Judicial: Delinquent Real Estate Tax Assessment: Personal Services 1,366,682 1,466,682 1,398,139 68,543 Other 1,594,934 3,994,934 3,562,520 432,414 Capital Outlay 1,000 1,000 0 1,000

Total Judicial 2,962,616 5,462,616 4,960,659 501,957

Total Expenditures 5,179,272 7,679,272 6,949,620 729,652

Net Change in Fund Balance 884,677 (1,313,711) (336,109) 977,602

Fund Balance Beginning of Year 5,981,743 5,981,743 5,981,743 0 Prior Year Encumbrances Appropriated 10,811 10,811 10,811 0

Fund Balance End of Year $6,877,231 $4,678,843 $5,656,445 $977,602

- 183 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual County Land Reutilization Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $6,349,057 $6,349,057 $7,348,849 $999,792 Other 650,943 650,943 753,448 102,505

Total Revenues 7,000,000 7,000,000 8,102,297 1,102,297

Expenditures Current: General Government - Legislative and Executive: County Land Reutilization: Other 8,506,898 8,506,898 8,506,898 0

Net Change in Fund Balance (1,506,898) (1,506,898) (404,601) 1,102,297

Fund Balance Beginning of Year 1,454,695 1,454,695 1,454,695 0

Fund Balance (Deficit) End of Year ($52,203) ($52,203) $1,050,094 $1,102,297

- 184 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Court Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $1,449,396 $1,178,335 $1,176,215 ($2,120) Fines and Forfeitures 1,225,096 995,983 994,191 (1,792) Intergovernmental 3,284 2,670 2,665 (5) Other 95,968 78,021 77,880 (141)

Total Revenues 2,773,744 2,255,009 2,250,951 (4,058)

Expenditures Current: General Government - Judicial: Juvenile Court Alternative Dispute Resolution Program: Other 53,040 60,740 58,966 1,774

Juvenile Court Incentives: Other 0 3,500 113 3,387

Probate Court Computer: Other 381,368 381,368 275,628 105,740 Capital Outlay 82,500 82,500 26,655 55,845

Total Probate Court Computer 463,868 463,868 302,283 161,585

Probate Court Dispute Resolution Program: Other 4,296 4,296 3,386 910

Probate Court Conduct of Business: Other 0 5,000 551 4,449

Clerk of Courts Computerization: Other 1,070,136 1,070,136 813,292 256,844 Capital Outlay 51,394 51,394 14,312 37,082

Total Clerk of Courts Computerization $1,121,530 $1,121,530 $827,604 $293,926

(continued)

- 185 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Court (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Court of Appeals Special Projects: Capital Outlay $69,339 $69,339 $69,339 $0

Clerk of Courts: Personal Services 428,181 428,181 370,581 57,600 Other 4,598 4,598 0 4,598

Total Clerk of Courts 432,779 432,779 370,581 62,198

General Judicial: Personal Services 1,356,014 1,491,014 1,407,708 83,306 Other 415,323 415,323 212,585 202,738

Total General Judicial 1,771,337 1,906,337 1,620,293 286,044

Sheriff: Personal Services 174,047 174,047 94,281 79,766

Total Expenditures 4,090,236 4,241,436 3,347,397 894,039

Excess of Revenues Over (Under) Expenditures (1,316,492) (1,986,427) (1,096,446) 889,981

Other Financing Sources (Uses) Transfers Out (236,617) (290,617) (234,617) 56,000

Net Change in Fund Balance (1,553,109) (2,277,044) (1,331,063) 945,981

Fund Balance Beginning of Year 8,483,225 8,483,225 8,483,225 0 Prior Year Encumbrances Appropriated 939,777 939,777 939,777 0

Fund Balance End of Year $7,869,893 $7,145,958 $8,091,939 $945,981

- 186 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Solid Waste Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $1,947,404 $2,221,431 $1,799,285 ($422,146) Intergovernmental 150,338 171,492 138,903 (32,589) Other 65,740 74,991 60,740 (14,251)

Total Revenues 2,163,482 2,467,914 1,998,928 (468,986)

Expenditures Current: Public Works: District Administration: Personal Services 481,115 519,115 518,526 589 Other 780,696 762,696 481,763 280,933 Capital Outlay 32,500 32,500 23,001 9,499

Total District Administration 1,294,311 1,314,311 1,023,290 291,021

District Board of Health: Other 301,250 301,250 301,250 0

Convenience Center: Other 667,125 667,125 662,279 4,846

Plan Update: Other 22,382 33,582 27,324 6,258

Municipal Grants: Other 200,000 200,000 142,100 57,900

Total Expenditures 2,485,068 2,516,268 2,156,243 360,025

Excess of Revenues Over (Under) Expenditures (321,586) (48,354) (157,315) (108,961)

Other Financing Sources (Uses) Transfers Out (6,444) (6,444) (6,444) 0

Net Change in Fund Balance (328,030) (54,798) (163,759) (108,961)

Fund Balance Beginning of Year 2,880,464 2,880,464 2,880,464 0 Prior Year Encumbrances Appropriated 586,519 586,519 586,519 0

Fund Balance End of Year $3,138,953 $3,412,185 $3,303,224 ($108,961)

- 187 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Community Development Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $19,534 $117,451 $30,113 ($87,338) Intergovernmental 12,854,645 77,289,517 19,816,034 (57,473,483) Interest 3,924 23,593 6,049 (17,544) Other 2,722,662 16,370,209 4,197,110 (12,173,099)

Total Revenues 15,600,765 93,800,770 24,049,306 (69,751,464)

Expenditures Current: Community Development: Development Revolving Loan: Other 1,145,966 4,161,966 3,474,987 686,979

Brownfield Revolving Loan: Other 155,314 433,703 351,974 81,729

Economic Development: Other 14,261,980 14,793,747 7,194,953 7,598,794

2008 Neighborhood Stabilization: Personal Services 3,289 3,289 3,289 0 Other 36,560 36,560 37,173 (613)

Total 2008 Neighborhood Stabilization 39,849 39,849 40,462 (613)

Shelter and Care Renewal: Other 3,597,688 13,946,656 13,946,656 0

2011 Lead Hazard Reduction Grant: Personal Services 217,204 217,204 217,204 0 Other 776,924 782,221 782,221 0 Capital Outlay 0 8,061 8,061 0

Total 2011 Lead Hazard Reduction Grant 994,128 1,007,486 1,007,486 0

2011 NSP 3 Administration: Personal Services 978 978 978 0 Other 62,604 114,925 114,925 0

Total 2011 NSP 3 Administration 63,582 115,903 115,903 0

Lead Hazard Reduction Grant: Personal Services 128,402 128,402 128,402 0 Other 2,119 2,119 2,119 0

Total Lead Hazard Reduction Grant $130,521 $130,521 $130,521 $0

(continued) - 188 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Community Development (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Home 2011: Personal Services $91,943 $91,943 $91,943 $0 Other 396,957 396,957 396,957 0

Total Home 2011 488,900 488,900 488,900 0

CDBG Year 37 2011: Other 128,588 84,592 84,592 0

Pass Transitional: Other 426,719 426,719 426,719 0

Homeless Crisis Response Program: Other 73,518 73,518 73,518 0

Shelter and Care Unit: Other 219,439 219,439 219,439 0

Emergency Solutions Grant: Other 310,740 717,833 717,832 1

Home Weatherization Assistance 2011: Other 375 375 375 0

Home Weatherization Assistance: Personal Services 99,307 99,305 99,305 0 Other 16,770 16,770 16,770 0

Total Home Weatherization Assistance 116,077 116,075 116,075 0

Buckeye PSH: Other 0 171,308 171,308 0

Shelter and Care 2012 Renewal: Other 174,295 174,295 174,294 1

Shelter and Care Home Program: Other 23,351 173,351 173,351 0

Shelter and Care 2009: Other 706,781 706,781 706,781 0

CDBG Year 36 2010: Personal Services 516000 Other 129,673 0 0 0

Total CDBG Year 36 2010 $130,189 $0 $0 $0

(continued)

- 189 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Community Development (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Shelter and Care Renewal: Other $765,842 $765,842 $765,842 $0

Shelter and Care Renewal 2010: Other 2,536 2,536 2,536 0

CDBG Year 38 2012: Personal Services 8,058 0 0 0 Other 1,692,949 586,183 586,182 1

Total CDBG Year 38 2012 1,701,007 586,183 586,182 1

Emergency Shelter Grant 2010: Other 1,034 1,034 1,034 0

Home 2010: Other 522,711 522,711 522,711 0

Home 2012: Personal Services 28,082 28,082 28,082 0 Other 838,055 838,055 838,055 0

Total Home 2012 866,137 866,137 866,137 0

Shelter and Care - Pass Supportive: Other 173,294 173,294 173,294 0

Shelter and Care 2008: Other 272,189 585,437 585,437 0

Shelter and Care 2004: Other 334,846 712,786 712,786 0

Shelter and Care 2005 SRA: Other 122,652 122,652 122,652 0

Shelter and Care 2005 TRA: Other 26,873 26,873 26,873 0

Shelter and Care 2006: Other 79,615 79,615 79,615 0

Domestic Violence Center: Other $52,504 $52,504 $52,504 $0

(continued)

- 190 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Community Development (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Shelter and Care 2007: Other $17,964 $17,964 $17,964 $0

EPA 2008 Brownfield Revolving Loan: Other 0 600,000 38,799 561,201

CDBG Year 35 2009: Other 14,207 0 0 0 Capital Outlay 1,067 0 0 0

Total CDBG Year 35 2009 15,274 0 0 0

Emergency Shelter Grant 2009: Other 2,281 2,281 2,281 0

Home 2009: Other 5,310 5,310 5,310 0

EPA Brownfields: Other 164000

Home 2005: Other 11,973 11,973 11,973 0

CDBG Year 39 2013: Personal Services 220,019 183,623 183,623 0 Other 299,754 672,151 672,151 0 Capital Outlay 69 69 69 0

Total CDBG Year 39 2013 519,842 855,843 855,843 0

CDBG Year 40 2014: Personal Services 611,344 611,344 611,344 0 Other 1,138,335 1,138,335 1,138,335 0

Total CDBG Year 40 2014 1,749,679 1,749,679 1,749,679 0

Home 2013: Personal Services 81,125 21,755 21,755 0 Other 517,455 576,825 576,825 0

Total Home 2013 598,580 598,580 598,580 0

Home 2014: Personal Services 287 287 287 0 Other 1,661 1,661 1,661 0

Total Home 2014 $1,948 $1,948 $1,948 $0

(continued) - 191 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Community Development (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Emergency Solutions Grant 2013: Personal Services $1,990 $1,990 $1,990 $0 Other 206,144 206,144 206,143 1

Total Emergency Solutions Grant 2013 208,134 208,134 208,133 1

Emergency Solutions Grant 2014: Personal Services 1,771 1,771 1,771 0 Other 103,960 103,960 103,960 0

Total Emergency Solutions Grant 2014 105,731 105,731 105,731 0

EPA 2008: Other 5,360 0 0 0 Capital Outlay 754000

Total EPA 2008 6,114 0 0 0

Emergency Solutions State 2013: Other 0 1,675,000 1,675,000 0

Clean Ohio Program: Other 1,913,500 26,951 26,951 0

CDBG Year 34 2008: Other 72,099 0 0 0

Home 2008: Other 5,180 5,180 5,179 1

Emergency Solutions Grant 2012: Other 1,410 1,410 1,410 0

2010 Neighborhood Stabilization: Personal Services 5,041 5,041 5,041 0 Other 299,639 299,639 299,639 0

Total 2010 Neighborhood Stabilization 304,680 304,680 304,680 0

ARRA HUD Home Program: Other 4,769 4,769 4,769 0

Cuyahoga County Community Development: Other $0 $0 $117,252 ($117,252)

(continued)

- 192 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Community Development (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Community Development No. 8: Other $0 $0 $938,912 ($938,912)

Total Expenditures 33,653,872 48,656,054 40,784,123 8,928,095

Excess of Revenues Over (Under) Expenditures (18,053,107) 45,144,716 (16,734,817) (60,823,369)

Other Financing Sources (Uses) Revenue Bonds Issued 0 22,006,243 22,006,243 0 Transfers Out (560,361) (560,361) 0 560,361

Total Other Financing Sources (Uses) (560,361) 21,445,882 22,006,243 560,361

Net Change in Fund Balance (18,613,468) 66,590,598 5,271,426 (60,263,008)

Fund Deficit Beginning of Year (17,268,555) (17,268,555) (17,268,555) 0 Prior Year Encumbrances Appropriated 13,142,208 13,142,208 13,142,208 0

Fund Balance (Deficit) End of Year ($22,739,815) $62,464,251 $1,145,079 ($61,319,172)

- 193 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Community Development Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $50,650 $178,609 $42,750 ($135,859) Intergovernmental 296,396 1,045,189 250,166 (795,023) Contributions and Donations 2,073 7,311 1,750 (5,561) Other 60 209 50 (159)

Total Revenues 349,179 1,231,318 294,716 (936,602)

Expenditures Current: Community Development: Geographical Information System: Personal Services 333,264 352,614 316,111 36,503 Other 720,021 700,671 619,566 81,105

Total Geographical Information System 1,053,285 1,053,285 935,677 117,608

Senior Transportation Consultation: Other 6660

2009 Lakefront Connector Bridge: Other 828 828 828 0

Renewable Energy Task Force: Personal Services 18 18 18 0 Other 34,897 34,897 34,897 0

Total Renewable Energy Task Force 34,915 34,915 34,915 0

Cuyahoga Valley Initiative Organization: Other 25,000 25,000 25,000 0

Cuyahoga River Environmental: Other 120,861 120,861 120,861 0

Cuyahoga Bicentennial Grant: Other 2,600 2,600 2,600 0

Steelyard Commons Wire Transfers: Other 0 0 3,989,812 (3,989,812)

Westin Hotel Wire Transfers: Other 0 0 4,399,394 (4,399,394)

Total Expenditures $1,237,495 $1,237,495 $9,509,093 ($8,271,598)

(continued) - 194 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Community Development (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

Excess of Revenues Over (Under) Expenditures ($888,316) ($6,177) ($9,214,377) ($9,208,200)

Other Financing Sources (Uses) Transfers In 822,868 2,901,703 694,523 (2,207,180)

Net Change in Fund Balance (65,448) 2,895,526 (8,519,854) (11,415,380)

Fund Balance Beginning of Year 9,154,013 9,154,013 9,154,013 0 Prior Year Encumbrances Appropriated 152,166 152,166 152,166 0

Fund Balance End of Year $9,240,731 $12,201,705 $786,325 ($11,415,380)

- 195 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Treatment Alternatives for Safer Communities Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $572,493 $2,087,090 $1,202,410 ($884,680) Other 135,599 494,342 284,799 (209,543)

Total Revenues 708,092 2,581,432 1,487,209 (1,094,223)

Expenditures Current: General Government - Judicial: Medicaid Fund: Personal Services 6,094 6,094 0 6,094 Other 101,490 101,490 47,810 53,680

Total Medicaid Fund 107,584 107,584 47,810 59,774

Health and Human Services: Personal Services 178,994 161,660 143,245 18,415 Other 425,416 418,749 0 418,749 Capital Outlay 0 24,000 24,000 0

Total Health and Human Services 604,410 604,409 167,245 437,164

Substance Abuse and Mental Health Services: Personal Services 31,676 31,676 31,676 0

Prisoner Referrals - TASC: Personal Services 14,266 14,266 14,266 0

Specialized Docket: Personal Services 10,693 10,693 10,693 0

Treatment Alternative Street Crime: Personal Services 98,912 582,761 582,761 0 Other 16,630 16,630 16,630 0

Total Treatment Alternative Street Crime $115,542 $599,391 $599,391 $0

(continued)

- 196 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Treatment Alternatives for Safer Communities (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Adult Drug Court Project: Personal Services $41,188 $200,800 $200,800 $0

Treatment Capacity Expansion: Personal Services 74 168,178 168,178 0

TASC Drug Court: Personal Services 192,111 192,111 192,111 0 Other 2,073 7,972 7,972 0

Total TASC Drug Court 194,184 200,083 200,083 0

Total Expenditures 1,119,617 1,937,080 1,440,142 496,938

Excess of Revenues Over (Under) Expenditures (411,525) 644,352 47,067 (597,285)

Other Financing Sources (Uses) Transfers In 14,661 53,447 30,792 (22,655) Transfers Out (17,334) (17,334) (17,334) 0

Total Other Financing Sources (Uses) (2,673) 36,113 13,458 (22,655)

Net Change in Fund Balance (414,198) 680,465 60,525 (619,940)

Fund Balance Beginning of Year 708,206 708,206 708,206 0 Prior Year Encumbrances Appropriated 42,700 42,700 42,700 0

Fund Balance End of Year $336,708 $1,431,371 $811,431 ($619,940)

- 197 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Victim Assistance Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $547,217 $839,551 $651,909 ($187,642)

Expenditures Current: General Government - Judicial: Witness Victim Health and Human Services: Personal Services 1,159,858 1,095,505 950,219 145,286 Other 803,329 787,329 767,237 20,092 Capital Outlay 0 94,353 90,865 3,488

Total Witness Victim Health and Human Services 1,963,187 1,977,187 1,808,321 168,866

Victim Safety Enhancement: Personal Services 69,481 69,481 69,481 0 Other 22,491 22,491 22,491 0

Total Victim Safety Enhancement 91,972 91,972 91,972 0

Violence Against Women Act Block Grant: Other 142,204 566,430 566,430 0

Violence Against Women Act Administration Grant: Personal Services 2,873 21,761 21,761 0 Other 1,688 1,608 1,608 0

Total Violence Against Women Act Administration Grant 4,561 23,369 23,369 0

Juvenile Court Victim Advocate: Personal Services $15,030 $15,030 $15,030 $0

(continued)

- 198 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Victim Assistance (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Recovery Act Stop Violence Against Women Act 2009: Other $133,200 $133,200 $133,200 $0

Total Expenditures 2,350,154 2,807,188 2,638,322 168,866

Excess of Revenues Over (Under) Expenditures (1,802,937) (1,967,637) (1,986,413) (18,776)

Other Financing Sources (Uses) Transfers In 1,365,333 2,094,753 1,626,556 (468,197) Transfers Out (47,100) (47,100) (47,100) 0

Total Other Financing Sources (Uses) 1,318,233 2,047,653 1,579,456 (468,197)

Net Change in Fund Balance (484,704) 80,016 (406,957) (486,973)

Fund Deficit Beginning of Year (355,653) (355,653) (355,653) 0 Prior Year Encumbrances Appropriated 364,500 364,500 364,500 0

Fund Balance (Deficit) End of Year ($475,857) $88,863 ($398,110) ($486,973)

- 199 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Youth Services Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $22,140,654 $22,140,654 $5,092,355 ($17,048,299) Other 165,335 165,335 38,027 (127,308)

Total Revenues 22,305,989 22,305,989 5,130,382 (17,175,607)

Expenditures Current: General Government - Judicial: Community Youth Sanction Program: Other 6,212 6,212 6,212 0

Youth Services Subsidy 2014/15: Personal Services 2,682,490 2,682,490 2,682,490 0 Other 5,212,242 5,212,242 5,224,073 (11,831) Capital Outlay 63,630 63,630 63,630 0

Total Youth Services Subsidy 2014/15 7,958,362 7,958,362 7,970,193 (11,831)

Total Expenditures 7,964,574 7,964,574 7,976,405 (11,831)

Net Change in Fund Balance 14,341,415 14,341,415 (2,846,023) (17,187,438)

Fund Balance Beginning of Year 2,028,029 2,028,029 2,028,029 0 Prior Year Encumbrances Appropriated 2,135,007 2,135,007 2,135,007 0

Fund Balance End of Year $18,504,451 $18,504,451 $1,317,013 ($17,187,438)

- 200 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Judicial Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $788,762 $3,425,887 $2,092,030 ($1,333,857) Fines and Forfeitures 240,103 1,042,855 636,823 (406,032) Intergovernmental 7,952,077 34,538,835 21,091,264 (13,447,571) Contributions and Donations 7,541 32,752 20,000 (12,752) Other 55,077 239,220 146,081 (93,139)

Total Revenues 9,043,560 39,279,549 23,986,198 (15,293,351)

Expenditures Current: General Government - Judicial: Law Enforcement CPT: Other 0 2,461 280 2,181

Forensic Science Lab: Personal Services 2,658,260 2,728,260 2,717,176 11,084 Other 690,507 620,507 440,281 180,226

Total Forensic Science Lab 3,348,767 3,348,767 3,157,457 191,310

Law Library Board: Personal Services 241,678 241,678 240,954 724 Other 342,607 382,607 373,490 9,117 Capital Outlay 5,000 5,000 0 5,000

Total Law Library Board 589,285 629,285 614,444 14,841

Indigent Guardianship: Other 37,327 37,327 33,980 3,347

Domestic Relations - Legal Research: Other 4,429 6,929 6,226 703

Probation Supervision Fees: Other 297,110 697,110 416,691 280,419 Capital Outlay 0 250,000 242,584 7,416

Total Probation Supervision Fees 297,110 947,110 659,275 287,835

Inspector General Vendor Fees: Personal Services 0 4,440 0 4,440 Other 0 15,100 0 15,100

Total Inspector General Vendor Fees $0 $19,540 $0 $19,540 (continued) - 201 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Judicial (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Legal Computerization: Other $18,800 $5,800 $4,716 $1,084 Capital Outlay 0 18,850 18,825 25

Total Supportive Services 18,800 24,650 23,541 1,109

Legal Research and Computerization: Other 61,571 61,571 53,951 7,620

Computerized Legal Research: Other 0 1,118 1,114 4

Home Detention Fees: Capital Outlay 103,090 537,090 509,708 27,382

Residential Title IV-E Juvenile Court: Personal Services 0 0 0 0 Other 1,251,919 2,597,927 1,505,558 1,092,369

Total Residential Title IV-E Juvenile Court 1,251,919 2,597,927 1,505,558 1,092,369

Administration Title IV-E Juvenile Court: Personal Services 63,831 250,819 262,926 (12,107) Other 2,009,109 1,922,859 880,045 1,042,814

Total Administration Title IV-E Juvenile Court 2,072,940 2,173,678 1,142,971 1,030,707 Urinalysis Testing: Other 114,347 114,347 45,216 69,131

Operation and Maintenance of Detention Facility: Other 44,023 44,023 35,939 8,084

Public Defender - Cleveland Municipality: Personal Services 1,631,453 1,794,503 1,774,531 19,972 Other 20,033 280,033 272,380 7,653

Total Public Defender - Cleveland Municipality 1,651,486 2,074,536 2,046,911 27,625

Carrying Concealed Weapon Application: Personal Services 95,505 95,505 95,505 0 Other 126,817 126,817 80,466 46,351

Total Carrying Concealed Weapon Application $222,322 $222,322 $175,971 $46,351

(continued)

- 202 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Judicial (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) State Criminal Alien Assistance Program: Personal Services $51,590 $51,590 $51,590 $0 Other 43,721 43,721 0 43,721

Total State Criminal Alien Assistance Program 95,311 95,311 51,590 43,721

Custody Mediation: Personal Services 578,200 507,417 497,100 10,317 Other 94,715 165,498 143,508 21,990

Total Custody Mediation 672,915 672,915 640,608 32,307

Euclid Jail: Personal Services 0 517,244 517,244 0 Other 0 45,000 44,997 3

Total Euclid Jail 0 562,244 562,241 3

High Visibility Enforcement: Personal Services 49,147 49,147 49,147 0 Other 2,177 2,177 2,177 0

Total High Visibility Enforcement 51,324 51,324 51,324 0

Smart Ohio Pilot: Other 75,000 75,000 75,000 0

Family Justice Center St. Luke's: Other 5,073 5,073 5,073 0

Family Justice Center Program: Personal Services 289,077 3,013 2,993 20 Other 80,445 366,509 366,508 1

Total Family Justice Center Program 369,522 369,522 369,501 21

Child Sexual Predator Grant Program: Capital Outlay 21,025 21,025 21,025 0

Felony Drug Court: Other 243,706 243,706 243,706 0

JJDP Subgrant: Other $0 $48,150 $48,150 $0

(continued)

- 203 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Judicial (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) COPS Hiring Program: Personal Services $220,514 $220,514 $220,514 $0

Environmental Crimes Task Force: Other 10,301 10,301 10,301 0

2011 Second Chance Act Adult Offender: Other 6,854 6,854 6,854 0

Port Security Grant Program: Personal Services 18,862 18,862 18,862 0

Second Chance Adult Reentry: Other 162,639 662,639 662,638 1

Adult Drug Court Opiate: Personal Services 23,802 44,725 44,725 0 Other 154,218 386,610 386,610 0

Total Adult Drug Court Opiate 178,020 431,335 431,335 0

Child Exposed to Violence: Other 1,082,620 1,082,620 1,082,620 0

Drug Court Opiate: Personal Services 9,522 105,309 105,309 0 Other 105,721 9,934 9,933 1

Total Drug Court Opiate 115,243 115,243 115,242 1

Deputy Rehire Project: Personal Services 51,943 51,943 51,943 0

ISP Apprehension Unit: Personal Services 53,637 147,137 147,137 0

Probation Improvement Incentive: Other 1,199,945 1,199,945 1,199,945 0

Project Restore Program: Personal Services 42,588 42,588 42,588 0 Other 60,903 60,903 60,903 0

Total Project Restore Program $103,491 $103,491 $103,491 $0

(continued)

- 204 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Judicial (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Internet Crimes Against Children: Personal Services $189,004 $821,459 $821,459 $0 Other 98,386 98,386 98,386 0 Capital Outlay 19,004 19,004 19,004 0

Total Internet Crimes Against Children 306,394 938,849 938,849 0

Felony Coordinator Project: Personal Services 175,197 175,197 175,197 0

CCA 408 Jail Misdemeanant: Personal Services 1,250,344 1,250,344 1,250,344 0 Other 275,449 814,660 814,660 0

Total CCA 408 Jail Misdemeanant 1,525,793 2,065,004 2,065,004 0

CCA 407 Felony Program: Personal Services 2,001,110 2,001,110 2,001,110 0 Other 195,835 1,193,880 1,193,880 0

Total CCA 407 Felony Program 2,196,945 3,194,990 3,194,990 0

JAIBG Block Grant: Personal Services 1,194 3,856 3,856 0 Other 95,628 167,104 167,104 0

Total JAIBG Block Grant 96,822 170,960 170,960 0

Safe and Sound Project: Other 44,365 101,865 101,865 0

Community Corrections Act Grant: Personal Services 57,576 57,576 57,576 0

JJDP Block Grant: Other 266,998 323,414 323,414 0

Juvenile Justice Administration: Personal Services 38,143 46,377 47,425 (1,048) Other 0 1,386 0 1,386

Total Juvenile Justice Administration 38,143 47,763 47,425 338

OCJS JAG / PSI Grant: Personal Services $19,960 $89,294 $89,294 $0

(continued)

- 205 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Judicial (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Prosecutor's Office Efficiency Study: Other $7 $7 $7 $0

2010 Law Enforcement: Other 0 20,067 20,067 0 Capital Outlay 11,785 11,785 11,785 0

Total 2010 Law Enforcement 11,785 31,852 31,852 0

2011 Law Enforcement: Personal Services 0 10,738 10,738 0 Other 0 19,262 19,262 0

Total 2011 Law Enforcement 0 30,000 30,000 0

Operation Stonegarden: Personal Services 15,330 15,331 15,331 0 Other 23,588 23,587 23,587 0

Total Operation Stonegarden 38,918 38,918 38,918 0

Bulletproof Vest Partnership: Other 0 5,840 5,840 0

Grant Admin Staaffing: Personal Services 37,381 0 0 0

DNA Backlog Reduction Program: Personal Services 68,027 15,440 15,440 0 Other 302,867 302,866 302,866 0

Total DNA Backlog Reduction Program 370,894 318,306 318,306 0

Safe Haven Visitation and Exchange: Other 22,782 22,783 22,783 0

Cuyahoga County Mental Health Behavior Board: Personal Services 401,677 401,677 401,677 0

Professional Continuing Education Other 29,397 55,806 55,806 0

Domestic Violence Homicide Prevention Other $98,786 $98,786 $98,786 $0

(continued)

- 206 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Judicial (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Psychiatric Services: Personal Services $21,949 $21,949 $21,949 $0 Other 6,099 6,099 6,099 0

Total Psychiatric Services 28,048 28,048 28,048 0

Sexual Assault Victim Advocacy Initiative: Personal Services 28,687 28,687 28,686 1

Operation Child Protect Program: Other 1,248 1,248 1,248 0

Community Based Correctional Facility Operating Account: Other 5,646,625 5,646,625 5,646,625 0

Recovery Act Task Force: Personal Services 938,374 938,374 938,374 0 Other 1,029 1,029 1,029 0

Total Recovery Act Task Force 939,403 939,403 939,403 0

ARRA Justice Reform Initiative: Capital Outlay 2 2 2 0

ARRA JAG Grant: Other 5,219 44,646 44,646 0

Total Expenditures 26,944,413 33,895,381 30,988,849 2,906,532

Excess of Revenues Over (Under) Expenditures (17,900,853) 5,384,168 (7,002,651) (12,386,819)

Other Financing Sources (Uses) Transfers In 1,206,778 6,077,334 3,613,809 (2,463,525) Transfers Out (399,043) (403,184) (403,184) 0

Total Other Financing Sources (Uses) 807,735 5,674,150 3,210,625 (2,463,525)

Net Change in Fund Balance (17,093,118) 11,058,318 (3,792,026) (14,850,344)

Fund Balance Beginning of Year 7,052,252 7,052,252 7,052,252 0 Prior Year Encumbrances Appropriated 3,870,397 3,870,397 3,870,397 0

Fund Balance (Deficit) End of Year ($6,170,469) $21,980,967 $7,130,623 ($14,850,344)

- 207 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Legislative and Executive Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $1,371,528 $1,135,585 $713,700 ($421,885) Interest 232,746 192,707 121,114 (71,593) Other 22,263 18,434 11,585 (6,849)

Total Revenues 1,626,537 1,346,726 846,399 (500,327)

Expenditures Current: General Government - Legislative and Executive: Tax Prepayment Special Interest: Personal Services 174,271 174,271 105,496 68,775 Other 274,609 274,609 73,681 200,928

Total Tax Prepayment Special Interest 448,880 448,880 179,177 269,703

Tax Certificate Administration: Personal Services 134,156 134,156 107,031 27,125 Other 59,184 59,184 28,601 30,583

Total Tax Certificate Administration 193,340 193,340 135,632 57,708

County Wellness Fund: Other 88,192 88,192 87,393 799

GIS Enterprise Feasibility Study: Other 100,000 100,000 100,000 0

Total Expenditures 830,412 830,412 502,202 328,210

Net Change in Fund Balance 796,125 516,314 344,197 (172,117)

Fund Balance Beginning of Year 7,644,441 7,644,441 7,644,441 0 Prior Year Encumbrances Appropriated 65,531 65,531 65,531 0

Fund Balance End of Year $8,506,097 $8,226,286 $8,054,169 ($172,117)

- 208 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Health and Safety Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $942,878 $942,878 $942,878 $0 Charges for Services 57,050 162,939 98,412 (64,527) Licenses and Permits 990,808 2,829,846 1,709,168 (1,120,678) Fines and Forfeitures 495,000 1,413,770 853,888 (559,882) Intergovernmental 5,394,449 14,953,521 9,128,389 (5,825,132) Contributions and Donations 46,362 132,415 79,976 (52,439) Other 18,752 313,751 133,983 (179,768)

Total Revenues 7,945,299 20,749,120 12,946,694 (7,802,426)

Expenditures Current: Health and Safety: Special Project II: Other 14,839 264,839 59,918 204,921 Capital Outlay 206,658 794,741 787,869 6,872

Total Special Project II 221,497 1,059,580 847,787 211,793

Dog and Kennel: Personal Services 1,076,704 1,076,704 949,795 126,909 Other 946,918 1,046,918 1,042,091 4,827 Capital Outlay 68,671 68,671 63,671 5,000

Total Dog and Kennel 2,092,293 2,192,293 2,055,557 136,736

Emergency Management: Personal Services 718,847 693,847 651,695 42,152 Other 564,728 845,728 791,192 54,536 Capital Outlay 6,481 6,481 5,427 1,054

Total Emergency Management 1,290,056 1,546,056 1,448,314 97,742

Fatherhood Initiative: Personal Services 133,950 136,150 135,394 756 Other 1,463,069 1,486,569 1,482,089 4,480

Total Fatherhood Initiative 1,597,019 1,622,719 1,617,483 5,236

Wireless 911 Government Assistance: Personal Services 1,324,551 1,324,551 1,146,752 177,799 Other 2,221,284 5,161,284 4,916,026 245,258 Capital Outlay 12,978 72,978 29,281 43,697

Total Wireless 911 Government Assistance $3,558,813 $6,558,813 $6,092,059 $466,754

(continued) - 209 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Health and Safety (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Consolidation Shared Service: Other $2,860,000 $2,860,000 $2,860,000 $0

TB Control Program - Metrohealth: Other 0 187,015 187,015 0

Ohio Fatherhood Initiative Grant: Other 300 300 300 0

Health Care 95: Other 1110

State Homeland Security Program Law Enforcement: Personal Services 14,480 21,977 21,977 0 Other 238,324 537,944 537,944 0 Capital Outlay 83,389 34,881 34,881 0

Total State Homeland Security Program Law Enforcement 336,193 594,802 594,802 0

Northeast Ohio Regional Fusion Center Urban Area Security Initiative: Personal Services 132,616 117,553 117,553 0 Other 71,821 0 0 0

Total Northeast Ohio Regional Fusion Center Urban Area Security Initiative 204,437 117,553 117,553 0

Northeast Ohio Regional Fusion Center 2009: Personal Services 19,424 78,771 78,770 1 Other 42,656 91,820 102,385 (10,565) Capital Outlay 11 0 0 0

Total Northeast Ohio Regional Fusion Center 2009 62,091 170,591 181,155 (10,564)

Urban Area Security Initiative: Personal Services 444,240 63,595 63,595 0 Other 2,491,455 2,323,069 2,305,070 17,999 Capital Outlay 913,934 516,547 516,547 0

Total Urban Area Security Initiative $3,849,629 $2,903,211 $2,885,212 $17,999

(continued)

- 210 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Health and Safety (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Ryan White, Title I HIV/AIDS: Other $49 $49 $49 $0

Citizens Corps Council Grant: Capital Outlay 2,260 2,260 2,260 0

Port Security Grant: Personal Services 47,894 47,894 47,894 0 Other 633,709 534,544 534,544 0

Total Port Security Grant 681,603 582,438 582,438 0

Northern Border Initiative: Other 431 431 431 0

Incident Management System: Personal Services 39,016 0 0 0

State Homeland Security Program 04: Other 20 20 20 0

Dick Goddard Best Friend Fund: Other 10,536 42,392 42,392 0

State Homeland Security: Personal Services 38,253 38,253 38,253 0 Other 40,225 472,966 472,966 0 Capital Outlay 546,097 698,115 698,115 0

Total State Homeland Security 624,575 1,209,334 1,209,334 0

Emergency Communication Center: Capital Outlay 32,644 32,644 32,644 0

Regional Collaboration Project: Personal Services 72,337 62,970 62,970 0 Other 48,950 2,317 2,317 0 Capital Outlay 0 56,000 56,000 0

Total Regional Collaboration Project 121,287 121,287 121,287 0

Total Expenditures 17,584,750 21,803,789 20,878,093 925,696

Excess of Revenues Over (Under) Expenditures ($9,639,451) ($1,054,669) ($7,931,399) ($6,876,730)

(continued)

- 211 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Health and Safety (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Other Financing Sources (Uses) Transfers In $82,909 $2,085,734 $789,654 ($1,296,080) Transfers Out (3,000,000) (3,000,000) (3,000,000) 0

Total Other Financing Sources (Uses) (2,917,091) (914,266) (2,210,346) (1,296,080)

Net Change in Fund Balance (12,556,542) (1,968,935) (10,141,745) (8,172,810)

Fund Balance Beginning of Year 6,561,695 6,561,695 6,561,695 0 Prior Year Encumbrances Appropriated 9,849,235 9,849,235 9,849,235 0

Fund Balance End of Year $3,854,388 $14,441,995 $6,269,185 ($8,172,810)

- 212 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Public Works Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $2,683,026 $2,683,026 $269,147 ($2,413,879) Interest 64,298 64,298 6,450 (57,848)

Total Revenues 2,747,324 2,747,324 275,597 (2,471,727)

Expenditures Current: Public Works: Great Lakes Restoration: Capital Outlay 44,821 44,821 44,821 0

Towpath - ODNR: Capital Outlay 32,473 32,473 32,473 0

Total Expenditures 77,294 77,294 77,294 0

Net Change in Fund Balance 2,670,030 2,670,030 198,303 (2,471,727)

Fund Balance Beginning of Year 751,600 751,600 751,600 0 Prior Year Encumbrances Appropriated 62,125 62,125 62,125 0

Fund Balance End of Year $3,483,755 $3,483,755 $1,012,028 ($2,471,727)

- 213 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Social Services Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $828,057 $1,728,557 $1,728,557 $0 Licenses and Permits 27,220 188,089 117,164 (70,925) Fines and Forfeitures 25,069 173,229 107,907 (65,322) Intergovernmental 156,127 637,602 469,194 (168,408) Contributions and Donations 127,197 878,929 547,500 (331,429)

Total Revenues 1,163,670 3,606,406 2,970,322 (636,084)

Expenditures Current: Social Services: Veterans Service: Other 232,500 464,367 464,367 0

Social Impact Financing: Other 0 1,000,000 1,000,000 0

Domestic Violence: Other 229,376 229,376 227,926 1,450

Invest in Children Program Administration: Other 115,780 115,780 115,780 0

Invest in Children Mental Health: Other 1,218,886 1,158,886 1,158,797 89

The What to Expect Foundation: Other 30,000 30,000 30,000 0

Sisters of Charity Foundation: Other 75,000 25,000 25,000 0

O'Neil Invest in Children and Mom Initiative: Personal Services 0 2,937 2,937 0 Other 188,242 185,306 185,306 0

Total O'Neil Invest in Children and Mom Initiative: 188,242 188,243 188,243 0

Cleveland Foundation Invest in Children UPK Program: Other $25,401 $25,401 $25,401 $0

(continued) - 214 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Social Services (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) United Way of Greater Cleveland: Other $0 $300,000 $300,000 $0

Saint Luke's Foundation: Other 0 75,000 0 75,000

Title VI-B School Age: Personal Services 139,159 139,159 139,159 0 Other 66,529 66,529 66,529 0

Total Title VI-B School Age 205,688 205,688 205,688 0

Program Evaluation and Maintenance of Child Data: Other 175,000 175,000 175,000 0

George Gund Foundation Invest in Children: Other 292,269 292,269 292,269 0

Network for Success Program: Other 14,835 14,835 14,835 0

Healthy Marriage Demonstration: Other 882 882 882 0

Dole Manufacturing Access to Growth: Other 331,697 331,697 331,697 0

Annie Casey Grant: Other 40,000 0 0 0

Helping Ohio Parent Effectively: Other 820 820 820 0

Adoption Opportunities Grant: Other 125,011 125,011 125,011 0

Total Expenditures 3,301,387 4,758,255 4,681,716 76,539

Excess of Revenues Over (Under) Expenditures ($2,137,717) ($1,151,849) ($1,711,394) ($559,545)

(continued)

- 215 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Other Social Services (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Other Financing Sources (Uses) Transfers In $0 $1,550,282 $241,867 ($1,308,415) Transfers Out 0 (10,000) (10,000) 0

Total Other Financing Sources (Uses) 0 1,540,282 231,867 (1,308,415)

Net Change in Fund Balance (2,137,717) 388,433 (1,479,527) (1,867,960)

Fund Balance Beginning of Year 493,575 493,575 493,575 0 Prior Year Encumbrances Appropriated 1,769,196 1,769,196 1,769,196 0

Fund Balance End of Year $125,054 $2,651,204 $783,244 ($1,867,960)

- 216 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Litter Prevention and Recycling Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $244,701 $244,701 $0 ($244,701)

Expenditures Current: Public Works: Recycle Ohio 95: Other 8,774 8,774 8,774 0

Recycling Market Development: Other 63,750 63,750 63,750 0

Total Expenditures 72,524 72,524 72,524 0

Net Change in Fund Balance 172,177 172,177 (72,524) (244,701)

Fund Deficit Beginning of Year (53,887) (53,887) (53,887) 0 Prior Year Encumbrances Appropriated 72,524 72,524 72,524 0

Fund Balance (Deficit) End of Year $190,814 $190,814 ($53,887) ($244,701)

- 217 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Alcohol, Drug and Mental Health Board Grants Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $6,101,582 $6,101,582 $899,352 ($5,202,230) Other 171,497 171,497 25,278 (146,219)

Total Revenues 6,273,079 6,273,079 924,630 (5,348,449)

Expenditures Current: Health and Safety: Statewide Pathways: Other 1,033,142 1,033,142 1,079,029 (45,887)

2nd Chance Reentry Program: Other 202,550 202,550 202,550 0

Total Expenditures 1,235,692 1,235,692 1,281,579 (45,887)

Net Change in Fund Balance 5,037,387 5,037,387 (356,949) (5,394,336)

Fund Balance Beginning of Year 46,017 46,017 46,017 0

Fund Balance (Deficit) End of Year $5,083,404 $5,083,404 ($310,932) ($5,394,336)

- 218 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property Taxes $19,829,623 $21,239,642 $19,827,801 ($1,411,841) Hotel/Lodging Taxes 5,321,841 5,700,260 5,321,352 (378,908) Payments in Lieu of Taxes 287,444 307,884 287,418 (20,466) Charges for Services 443,400 474,928 443,359 (31,569) Intergovernmental 4,734,412 5,156,761 4,733,866 (422,895) Interest 1,205,243 1,205,243 1,205,243 0 Other 32,667 34,990 32,664 (2,326)

Total Revenues 31,854,630 34,119,708 31,851,703 (2,268,005)

Expenditures Debt Service: Principal Retirement: Bond Retirement - Various General Obligation Bonds 16,990,000 16,990,000 16,990,000 0 Gateway Arena 1,575,842 1,575,842 1,575,842 0 Brownfield Debt Service 928,311 4,743,912 4,743,912 0 Shaker Square Series 2000A 65,000 65,000 65,000 0 Community Redevelopment 484,361 484,361 484,361 0 Rock-N-Roll Bonds 3,780,000 3,780,000 3,780,000 0 Medical Mart 17,795,000 17,795,000 17,795,000 0 2013 Economic Development. Revenue Bonds 100,000 100,000 100,000 0

Total Principal Retirement 41,718,514 45,534,115 45,534,115 0

Interest and Fiscal Charges: Bond Retirement - Various General Obligation Bonds 15,292,601 15,292,601 14,711,631 580,970 Gateway Arena 4,224,158 4,071,271 3,942,997 128,274 Brownfield Debt Service 195,544 999,283 999,282 1 Shaker Square Series 2000A 58,325 61,918 61,918 0 Community Redevelopment 409,239 409,239 335,668 73,571 Rock-N-Roll Bonds 294,148 294,148 294,148 0 Medical Mart 14,814,692 14,863,239 14,863,239 0 2013 Economic Development. Revenue Bonds 640,000 640,000 448,956 191,044

Total Interest and Fiscal Charges 35,928,707 36,631,699 35,657,839 973,860

Total Expenditures 77,647,221 82,165,814 81,191,954 973,860

Excess of Revenues Over (Under) Expenditures ($45,792,591) ($48,046,106) ($49,340,251) ($1,294,145)

(continued)

- 219 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Other Financing Sources (Uses) Transfers In $44,549,471 $47,717,239 $44,545,379 ($3,171,860)

Net Change in Fund Balance (1,243,120) (328,867) (4,794,872) (4,466,005)

Fund Balance Beginning of Year 18,627,828 18,627,828 18,627,828 0

Fund Balance End of Year $17,384,708 $18,298,961 $13,832,956 ($4,466,005)

- 220 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Capital Projects Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $3,046,831 $3,046,831 $2,308,959 ($737,872) Interest 51,344 51,344 38,910 (12,434) Other 5,612 5,612 4,253 (1,359)

Total Revenues 3,103,787 3,103,787 2,352,122 (751,665)

Expenditures Capital Outlay: Forensic Science Lab Capital: Other 1,717 1,717 1,717 0 Capital Outlay 298,790 298,790 298,790 0

Total Forensic Science Lab Capital 300,507 300,507 300,507 0

Orange Village Capital Improvement: Other 46,909 46,909 46,909 0

93 Jail 2 Bond Issue Proceeds: Personal Services 13,859 13,859 13,859 0 Capital Outlay 14,345 14,345 14,345 0

Total 93 Jail 2 Bond Issue Proceeds 28,204 28,204 28,204 0

Emergency Operations Center: Personal Services 2,403 2,403 2,403 0 Other 544,715 544,715 544,715 0

Total Emergency Operations Center 547,118 547,118 547,118 0

Capital Project Future Debt Service: Personal Services 739,222 739,222 739,222 0 Other 13,778,597 13,778,597 5,602,891 8,175,706 Capital Outlay 51,726,412 51,726,412 56,246,410 (4,519,998)

Total Capital Project Future Debt Service 66,244,231 66,244,231 62,588,523 3,655,708

Cleveland Capital Projects: Personal Services 201 201 201 0 Other 8,349 8,349 8,349 0

Total Cleveland Capital Projects $8,550 $8,550 $8,550 $0

(continued)

- 221 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Capital Projects (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Judicial Information Systems: Other $6,465 $6,465 $6,465 $0 Capital Outlay 4,231 4,231 4,231 0

Total Judicial Information Systems 10,696 10,696 10,696 0

Maintenance Projects: Personal Services 770,662 770,662 770,662 0 Other 1,120,272 1,120,272 1,120,272 0 Capital Outlay 132,466 132,466 132,466 0

Total Maintenance Projects 2,023,400 2,023,400 2,023,400 0

Countywide Maintenance Program: Capital Outlay 1,747,300 1,747,300 1,747,300 0

FEMA Storm Damage: Personal Services 45,054 45,054 45,054 0 Capital Outlay 445,875 445,875 445,875 0

Total FEMA Storm Damage 490,929 490,929 490,929 0

Total Expenditures 71,447,844 71,447,844 67,792,136 3,655,708

Excess of Revenues Over (Under) Expenditures (68,344,057) (68,344,057) (65,440,014) 2,904,043

Other Financing Sources (Uses) Revenue Bonds Issued 135,176,553 135,176,553 102,439,919 (32,736,634) Transfers In 15,191,563 15,191,563 11,512,518 (3,679,045)

Total Other Financing Sources (Uses) 150,368,116 150,368,116 113,952,437 (36,415,679)

Net Change in Fund Balance 82,024,059 82,024,059 48,512,423 (33,511,636)

Fund Deficit Beginning of Year (18,378,956) (18,378,956) (18,378,956) 0 Prior Year Encumbrances Appropriated 18,751,562 18,751,562 18,751,562 0

Fund Balance End of Year $82,396,665 $82,396,665 $48,885,029 ($33,511,636)

- 222 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Road Capital Projects Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $164,737,842 $164,737,842 $36,621,203 ($128,116,639) Other 9,199 9,199 2,045 (7,154)

Total Revenues 164,747,041 164,747,041 36,623,248 (128,123,793)

Expenditures Current: Public Works: Ohio Department of Public Works Integrating: Personal Services 4,465 4,465 4,465 0 Other 1,000,000 1,000,000 0 1,000,000 Capital Outlay 330,387 330,387 330,387 0

Total Ohio Department of Public Works Integrating 1,334,852 1,334,852 334,852 1,000,000

Ohio Department of Transportation - Local Public Agencies: Personal Services 1,906,615 1,906,615 1,906,615 0 Other 5,585,468 5,585,468 85,468 5,500,000 Capital Outlay 72,400,490 72,400,490 72,400,490 0

Total Ohio Department of Transportation - Local Public Agencies 79,892,573 79,892,573 74,392,573 5,500,000

Total Public Works 81,227,425 81,227,425 74,727,425 6,500,000

Capital Outlay: Ohio Department of Public Works Integrating: Capital Outlay 295,659 295,659 295,659 0

Ohio Department of Transportation - Local Public Agencies: Capital Outlay 3,580,579 3,580,579 3,580,579 0

Total Capital Outlay 3,876,238 3,876,238 3,876,238 0

Total Expenditures 85,103,663 85,103,663 78,603,663 6,500,000

Excess of Revenues Over (Under) Expenditures $79,643,378 $79,643,378 ($41,980,415) ($121,623,793)

(continued)

- 223 - Cuyahoga County, Ohio Schedule of Revenues, Expenditures and Changes Changes in Fund Balance - Budget and Actual Road Capital Projects (continued) Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Other Financing Sources (Uses) Transfers In $44,921,792 $44,921,792 $9,986,109 ($34,935,683) Transfers Out (7,322,754) (7,322,754) (7,322,754) 0

Total Other Financing Sources (Uses) 37,599,038 37,599,038 2,663,355 (34,935,683)

Net Change in Fund Balance 117,242,416 117,242,416 (39,317,060) (156,559,476)

Fund Deficit Beginning of Year (23,331,426) (23,331,426) (23,331,426) 0 Prior Year Encumbrances Appropriated 23,304,549 23,304,549 23,304,549 0

Fund Balance (Deficit) End of Year $117,215,539 $117,215,539 ($39,343,937) ($156,559,476)

- 224 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual County Airport Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $1,410,581 $1,911,965 $983,110 ($928,855) Other 39,957 54,159 27,848 (26,311)

Total Revenues 1,450,538 1,966,124 1,010,958 (955,166)

Expenses Personal Services 728,550 703,550 547,234 156,316 Other 880,367 952,672 886,243 66,429 Capital Outlay 0 23,778 21,529 2,249

Total Expenses 1,608,917 1,680,000 1,455,006 224,994

Net Change in Fund Equity (158,379) 286,124 (444,048) (730,172)

Fund Equity Beginning of Year 600,619 600,619 600,619 0 Prior Year Encumbrances Appropriated 158,379 158,379 158,379 0

Fund Equity End of Year $600,619 $1,045,122 $314,950 ($730,172)

- 225 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual County Parking Garage Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $3,855,766 $3,097,530 $3,340,775 $243,245 Other 9,761 7,841 8,457 616

Total Revenues 3,865,527 3,105,371 3,349,232 243,861

Expenses Personal Services 725,633 725,633 587,452 138,181 Other 1,810,680 2,110,680 1,995,219 115,461

Total Expenses 2,536,313 2,836,313 2,582,671 253,642

Excess of Revenues Over (Under) Expenses Before Transfers 1,329,214 269,058 766,561 497,503

Transfers Out (646,723) (646,723) (646,723) 0

Net Change in Fund Equity 682,491 (377,665) 119,838 497,503

Fund Equity Beginning of Year 2,576,959 2,576,959 2,576,959 0 Prior Year Encumbrances Appropriated 96,405 96,405 96,405 0

Fund Equity End of Year $3,355,855 $2,295,699 $2,793,202 $497,503

- 226 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual Cuyahoga County Information Systems Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $1,424,724 $1,455,023 $1,274,105 ($180,918) Other 53 54 47 (7)

Total Revenues 1,424,777 1,455,077 1,274,152 (180,925)

Expenses Personal Services 784,389 212,189 157,696 54,493 Other 719,507 1,289,507 1,104,094 185,413 Capital Outlay 0 2,200 1,325 875

Total Expenses 1,503,896 1,503,896 1,263,115 240,781

Excess of Revenues Over (Under) Expenses Before Transfers (79,119) (48,819) 11,037 59,856

Transfers In 351,704 359,184 314,523 (44,661) Transfers Out (420,000) (420,000) (420,000) 0

Net Change in Fund Equity (147,415) (109,635) (94,440) 15,195

Fund Equity Beginning of Year 237,027 237,027 237,027 0 Prior Year Encumbrances Appropriated 147,415 147,415 147,415 0

Fund Equity End of Year $237,027 $274,807 $290,002 $15,195

- 227 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual Central Custodial Services Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $43,012,474 $49,695,314 $40,211,599 ($9,483,715) Other 430,242 861,302 249,577 (611,725)

Total Revenues 43,442,716 50,556,616 40,461,176 (10,095,440)

Expenses Personal Services 27,059,003 27,259,003 26,569,951 689,052 Other 21,574,363 24,134,363 23,527,878 606,485 Capital Outlay 67,704 67,704 60,464 7,240

Total Expenses 48,701,070 51,461,070 50,158,293 1,302,777

Excess of Revenues Over (Under) Expenses Before Transfers (5,258,354) (904,454) (9,697,117) (8,792,663)

Transfers In 2,147,378 2,499,019 2,000,000 (499,019)

Net Change in Fund Equity (3,110,976) 1,594,565 (7,697,117) (9,291,682)

Fund Deficit Beginning of Year (4,766,558) (4,766,558) (4,766,558) 0 Prior Year Encumbrances Appropriated 4,108,788 4,108,788 4,108,788 0

Fund Equity (Deficit) End of Year ($3,768,746) $936,795 ($8,354,887) ($9,291,682)

- 228 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual Maintenance Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $1,060,009 $1,194,758 $1,098,594 ($96,164) Other 22,241 30,236 24,530 (5,706)

Total Revenues 1,082,250 1,224,994 1,123,124 (101,870)

Expenses Personal Services 346,721 346,721 318,770 27,951 Other 1,275,734 1,175,734 1,159,724 16,010 Capital Outlay 338,007 718,007 718,007 0

Total Expenses 1,960,462 2,240,462 2,196,501 43,961

Excess of Revenues Over (Under) Expenses Before Transfers (878,212) (1,015,468) (1,073,377) (145,831)

Transfers In 366,170 414,467 380,000 (34,467)

Net Change in Fund Equity (512,042) (601,001) (693,377) (180,298)

Fund Equity Beginning of Year 120,049 120,049 120,049 0 Prior Year Encumbrances Appropriated 759,368 759,368 759,368 0

Fund Equity End of Year $367,375 $278,416 $186,040 ($180,298)

- 229 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual Data Processing Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

Revenues $0 $0 $0 $0

Expenses 0000

Excess of Revenues Over (Under) Expenses Before Transfers 0000

Transfers Out 0 0 (4,197,118) (4,197,118)

Net Change in Fund Equity 0 0 (4,197,118) (4,197,118)

Fund Equity Beginning of Year 4,197,118 4,197,118 4,197,118 0

Fund Equity End of Year $4,197,118 $4,197,118 $0 ($4,197,118)

- 230 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual Printing Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $3,735,338 $5,203,538 $3,098,538 ($2,105,000) Other 7,499 23,864 401 (23,463)

Total Revenues 3,742,837 5,227,402 3,098,939 (2,128,463)

Expenses Personal Services 533,730 663,730 595,586 68,144 Other 4,579,713 4,425,892 4,260,486 165,406

Total Expenses 5,113,443 5,089,622 4,856,072 233,550

Excess of Revenues Over (Under) Expenses Before Transfers (1,370,606) 137,780 (1,757,133) (1,894,913)

Transfers In 289,445 404,250 239,650 (164,600)

Net Change in Fund Equity (1,081,161) 542,030 (1,517,483) (2,059,513)

Fund Deficit Beginning of Year (2,395,195) (2,395,195) (2,395,195) 0 Prior Year Encumbrances Appropriated 1,853,168 1,853,168 1,853,168 0

Fund Equity (Deficit) End of Year ($1,623,188) $3 ($2,059,510) ($2,059,513)

- 231 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual Postage Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $1,741,551 $1,797,724 $1,526,956 ($270,768) Other 4,631 4,780 4,060 (720)

Total Revenues 1,746,182 1,802,504 1,531,016 (271,488)

Expenses Personal Services 532,540 532,540 471,992 60,548 Other 1,298,432 1,198,432 1,162,737 35,695

Total Expenses 1,830,972 1,730,972 1,634,729 96,243

Net Change in Fund Equity (84,790) 71,532 (103,713) (175,245)

Fund Deficit Beginning of Year (150,267) (150,267) (150,267) 0 Prior Year Encumbrances Appropriated 78,736 78,736 78,736 0

Fund Equity (Deficit) End of Year ($156,321) $1 ($175,244) ($175,245)

- 232 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual Health Insurance Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $50,392,434 $62,301,132 $101,344,627 $39,043,495 Other 43,241,380 53,460,149 42,031 (53,418,118)

Total Revenues 93,633,814 115,761,281 101,386,658 (14,374,623)

Expenses Personal Services 514,911 514,911 507,900 7,011 Other 35,439,312 45,483,112 35,692,972 9,790,140 Claims 71,305,600 71,305,600 71,305,600 0

Total Expenses 107,259,823 117,303,623 107,506,472 9,797,151

Net Change in Fund Equity (13,626,009) (1,542,342) (6,119,814) (4,577,472)

Fund Deficit Beginning of Year (3,024,394) (3,024,394) (3,024,394) 0 Prior Year Encumbrances Appropriated 21,717,896 21,717,896 21,717,896 0

Fund Equity End of Year $5,067,493 $17,151,160 $12,573,688 ($4,577,472)

- 233 - Cuyahoga County, Ohio Schedule of Revenues, Expenses and Changes in Fund Equity - Budget and Actual Workers' Compensation Budget Basis For the Year Ended December 31, 2014

Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for Services $1,292,218 $1,004,923 $3,927,862 $2,922,939 Other 73,057 56,815 222,066 165,251

Total Revenues 1,365,275 1,061,738 4,149,928 3,088,190

Expenses Personal Services 207,186 207,186 125,361 81,825 Other 1,807,676 2,447,635 2,415,201 32,434 Claims 2,460,107 2,460,107 2,460,107 0

Total Expenses 4,474,969 5,114,928 5,000,669 114,259

Net Change in Fund Equity (3,109,694) (4,053,190) (850,741) 3,202,449

Fund Equity Beginning of Year 34,128,585 34,128,585 34,128,585 0 Prior Year Encumbrances Appropriated 110,893 110,893 110,893 0

Fund Equity End of Year $31,129,784 $30,186,288 $33,388,737 $3,202,449

- 234 - Statistical Section Statistical Section

This part of the Cuyahoga County, Ohio’s Comprehensive Annual Financial 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 Pages(s)

Financial Trends...... S-2 – S-11 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...... S-12 – S-24 These schedules contain information to help the reader assess the County’s most significant local revenue, the property tax.

Debt Capacity ...... S-25 – S-30 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.

Economic and Demographic Information ...... S-32 – S-34 These schedules offer economic and demographic indicators to help the reader understand the environment within which the County’s financial activities take place.

Operating Information...... S-35 – S-39 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.

Sources: Unless otherwise noted, the information in these schedules is derived from the Basic Financial Statements for the relevant year.

S-1 Cuyahoga County, Ohio Net Position by Component Last Ten Years (accrual basis of accounting)

2014 2013 2012 2011 Governmental Activities Net Investment in Capital Assets $401,197,110 $396,133,373 $371,056,972 $434,718,805 Restricted for: Capital Projects 40,503,928 73,978,601 77,231,951 63,865,390 Debt Service 0000 Health and Human Services 52,919,168 52,857,834 71,929,825 78,253,766 Motor Vehicle 56,259,935 56,648,810 61,408,838 49,807,125 Developmental Disabilities 142,145,385 146,928,842 156,223,090 152,278,099 Community Development Programs 3,490,433 59,340,177 50,044,024 64,551,876 Children's Services 46,503,969 51,500,638 49,299,918 50,598,715 Alcohol and Drug Preventative Services 23,136,980 16,111,180 16,701,806 0 Health and Safety Services 11,766,574 16,864,598 13,783,701 0 Land Reutilization 1,325,533 1,454,695 595,660 30,071 Tax Assessment Operations 23,257,582 14,048,003 9,812,925 15,733,644 Judicial Services 24,330,885 27,879,249 19,482,242 14,235,431 Infrastructure System Operations 1,038,642 10,485,507 1,034,371 995,422 Other Purposes (1) 53,666,272 2,309,086 16,079,212 34,935,728 Unrestricted 242,461,695 220,069,982 196,765,817 88,929,535

Total Governmental Activities Net Position 1,124,004,091 1,146,610,575 1,111,450,352 1,048,933,607

Business-Type Activities Net Investment in Capital Assets 31,332,672 26,007,832 36,430,874 39,027,092 Unrestricted 77,544,042 73,578,543 53,825,794 57,261,906

Total Business-Type Activities Net Position 108,876,714 99,586,375 90,256,668 96,288,998

Primary Government Net Investment in Capital Assets 432,529,782 422,141,205 407,487,846 473,745,897 Restricted 480,345,286 530,407,220 543,627,563 525,285,267 Unrestricted 320,005,737 293,648,525 250,591,611 146,191,441

Total Primary Government Net Position $1,232,880,805 $1,246,196,950 $1,201,707,020 $1,145,222,605

(1) Net position restricted for other purposes was shown in total for 2005-2010.

Note: 2010 - 2005 Dollars rounded to the nearest thousands.

S-2 2010 2009 2008 2007 2006 2005

$331,270,000 $290,217,000 $410,193,000 $408,215,000 $402,928,000 $386,234,000

000000 56,548,000 36,133,000 26,309,000 22,658,000 0 0 000000 000000 000000 000000 000000 000000 000000 000000 000000 000000 000000 24,336,000 29,488,000 37,851,111 29,841,000 40,768,000 35,678,000 466,517,000 382,944,000 392,944,000 358,906,000 282,516,000 268,514,000

878,671,000 738,782,000 867,297,111 819,620,000 726,212,000 690,426,000

34,298,000 34,664,000 35,210,000 34,075,000 39,860,000 38,866,000 58,970,000 58,206,000 24,212,000 25,009,000 13,695,000 9,836,000

93,268,000 92,870,000 59,422,000 59,084,000 53,555,000 48,702,000

365,568,000 324,881,000 445,403,000 442,290,000 442,788,000 425,100,000 80,884,000 65,621,000 64,160,111 52,499,000 40,768,000 35,678,000 525,487,000 441,150,000 417,156,000 383,915,000 296,211,000 278,350,000

$971,939,000 $831,652,000 $926,719,111 $878,704,000 $779,767,000 $739,128,000

S-3 Cuyahoga County, Ohio Changes in Net Position Last Ten Years (accrual basis of accounting)

2014 2013 2012 2011 Program Revenues Governmental Activities: Charges for Services: General Government: Legislative and Executive $35,036,951 $42,647,539 $42,723,302 $33,815,890 Judicial 75,709,580 75,906,392 75,207,833 64,496,402 Public Works 2,405,613 2,235,246 2,605,169 2,308,754 Health and Safety Services 2,224,802 3,142,379 2,333,912 1,809,165 Social Services 7,920,266 5,267,314 5,551,526 5,947,689 Community Development 2,120,234 1,926,917 3,768,678 1,098,295 Operating Grants and Contributions 429,951,480 408,422,923 519,347,833 574,708,379 Capital Grants and Contributions 46,279,226 50,366,729 41,394,337 59,349,794

Total Governmental Activities Program Revenues 601,648,152 589,915,439 692,932,590 743,534,368

Business-Type Activities: Charges for Services Sanitary Engineer 26,432,472 37,264,526 11,936,751 22,809,722 Airport 841,038 978,042 932,291 685,068 Parking Garage 3,332,600 3,417,780 4,925,431 4,039,055 Information Systems 1,582,361 1,445,380 1,560,083 1,497,294 Operating Grants and Contributions 0 0 0 0 Capital Grants and Contributions 445,479 167,890 257,362 144,048

Total Business-Type Activities Program Revenues 32,633,950 43,273,618 19,611,918 29,175,187

Total Primary Government Program Revenues 634,282,102 633,189,057 712,544,508 772,709,555

Expenses Governmental Activities: General Government: Legislative and Executive 135,953,017 100,601,577 96,929,193 91,462,479 Judicial 352,836,602 326,344,670 335,831,744 323,452,320 Public Works 73,150,390 79,161,964 31,405,346 35,665,079 Health and Safety Services 117,149,663 119,626,042 174,875,093 230,988,876 Social Services 478,626,687 461,481,133 484,785,593 482,461,722 Community Development 72,726,759 49,698,772 53,852,311 48,417,824 Interest and Fiscal Charges 59,655,039 47,541,834 55,001,073 59,301,229

Total Governmental Activities Expenses 1,290,098,157 1,184,455,992 1,232,680,353 1,271,749,529

Business-Type Activities: Sanitary Engineer 22,348,922 20,581,112 19,863,604 20,949,553 Airport 1,600,628 1,457,170 1,922,598 1,758,577 Parking Garage 3,124,035 13,335,095 3,541,875 3,592,320 Information Systems 957,350 1,919,313 1,669,099 1,749,095

Total Business-Type Activities Expenses 28,030,935 37,292,690 26,997,176 28,049,545

Total Primary Government Expenses $1,318,129,092 $1,221,748,682 $1,259,677,529 $1,299,799,074

S-4 2010 2009 2008 2007 2006 2005

$40,832,000 $43,465,000 $54,920,000 $58,119,000 $67,948,000 $67,738,000 39,149,000 34,719,000 37,879,000 40,401,000 23,345,000 20,831,000 2,444,000 2,312,000 2,686,000 2,723,000 2,164,000 2,216,000 1,798,000 1,786,000 1,492,000 1,623,000 1,394,000 1,688,000 5,439,000 6,820,000 6,534,000 7,204,000 8,619,000 4,160,000 142,000 133,000 204,000 147,000 176,000 204,000 523,303,000 602,090,000 613,967,000 642,761,000 621,751,000 622,402,000 36,712,000 25,574,000 31,810,000 30,382,000 32,478,000 36,289,000

649,819,000 716,899,000 749,492,000 783,360,000 757,875,000 755,528,000

18,786,000 20,069,000 15,953,000 14,678,000 13,207,000 12,480,000 712,000 876,000 713,000 940,000 818,000 945,000 3,544,000 3,763,000 3,916,000 3,947,000 3,742,000 2,368,000 1,547,000 1,663,000 1,562,000 1,106,000 1,314,000 1,184,000 00000308,000 0 189,000 109,000 5,618,000 2,495,000 6,160,000

24,589,000 26,560,000 22,253,000 26,289,000 21,576,000 23,445,000

674,408,000 743,459,000 771,745,000 809,649,000 779,451,000 778,973,000

80,598,000 91,649,000 97,316,000 78,421,000 86,604,000 81,196,000 322,180,000 351,593,000 351,738,000 352,464,000 328,559,000 297,292,000 40,461,000 46,541,000 54,458,000 64,106,000 60,346,000 64,765,000 217,531,000 223,498,000 220,733,000 207,536,000 234,383,000 207,386,000 512,291,000 664,149,000 662,870,000 651,916,000 625,508,000 580,962,000 49,604,000 51,011,000 39,974,000 42,232,000 31,210,000 31,653,000 23,686,000 16,724,000 15,589,000 15,208,000 16,627,000 15,932,000

1,246,351,000 1,445,165,000 1,442,678,000 1,411,883,000 1,383,237,000 1,279,186,000

17,056,000 14,637,000 12,776,000 13,100,000 11,319,000 11,293,000 2,026,000 2,126,000 2,004,000 1,953,000 2,212,000 1,697,000 3,697,000 3,557,000 5,203,000 4,539,000 2,997,000 2,299,000 1,916,000 2,328,000 2,319,000 2,507,000 1,973,000 2,478,000

24,695,000 22,648,000 22,302,000 22,099,000 18,501,000 17,767,000

$1,271,046,000 $1,467,813,000 $1,464,980,000 $1,433,982,000 $1,401,738,000 $1,296,953,000

(continued)

S-5 Cuyahoga County, Ohio Changes in Net Position (continued) Last Ten Years (accrual basis of accounting)

2014 2013 2012 2011 Net (Expense)/Revenue Governmental Activities ($688,450,005) ($594,540,553) ($539,747,763) ($528,215,161) Business-Type Activities 4,603,015 5,980,928 (7,385,258) 1,125,642

Total Primary Government Net (Expense)/Revenue (683,846,990) (588,559,625) (547,133,021) (527,089,519)

General Revenues and Other Changes in Net Position Governmental Activities: Property Taxes Levied for:(1) General Purposes 13,958,416 13,436,996 15,196,538 17,787,526 General Obligation Bond Retirement 18,753,293 22,841,711 24,854,487 34,936,330 Health and Human Services 181,798,759 139,285,180 162,099,791 198,634,513 Children's Services 34,461,468 32,828,932 36,839,333 37,180,322 Developmental Disabilities 90,060,449 86,907,739 95,204,864 115,373,742 Sales Taxes Levied for General Purposes 251,892,766 238,594,945 228,305,905 242,076,865 Hotel/Lodging Taxes 10,487,523 8,612,366 7,954,045 12,391,398 Excise Tax 10,797,827 0 0 0 Other Local Taxes (2) 0 0 0 0 Payments in Lieu of Taxes 5,762,828 2,757,572 4,608,770 4,987,506 Grants and Entitlements not Restricted to Specific Programs 30,712,035 35,561,623 42,469,462 65,890,384 Unrestricted Contributions 0 0 648,478 0 Gain on Sale fo Capital Assets 0 9,933,464 0 0 Interest 5,481,224 5,660,374 4,937,745 12,812,138 Other 16,297,403 36,569,129 20,027,272 27,404,518 Transfers (4,620,470) (3,289,255) (1,145,835) (252,071)

Total Governmental Activities 665,843,521 629,700,776 642,000,855 769,223,171

Business-Type Activities: Interest 48 11 66,868 14,729 Other 66,806 59,513 104,295 234,593 Transfers 4,620,470 3,289,255 1,145,835 252,071

Total Business-Type Activities 4,687,324 3,348,779 1,316,998 501,393

Total Primary Government 670,530,845 633,049,555 643,317,853 769,724,564

Change in Net Position Governmental Activities (22,606,484) 35,160,223 102,253,092 241,008,010 Business-Type Activities 9,290,339 9,329,707 (6,068,260) 1,627,035

Total Primary Government Change in Net Position ($13,316,145) $44,489,930 $96,184,832 $242,635,045

(1) Property Taxes broken out in 2011-2014 (2) Other Local Taxes detailed in 2011-2014

Note: 2010 - 2005 Dollars rounded to the nearest thousands.

S-6 2010 2009 2008 2007 2006 2005

($596,532,000) ($728,266,000) ($693,186,000) ($628,523,000) ($625,362,000) ($523,658,000) (106,000) 3,912,000 (49,000) 4,190,000 3,075,000 5,678,000

(596,638,000) (724,354,000) (693,235,000) (624,333,000) (622,287,000) (517,980,000)

346,331,000 358,218,000 344,518,000 361,148,000 337,783,000 313,675,000 000000 000000 000000 000000 206,418,000 193,692,000 209,997,000 186,288,000 170,509,000 167,125,000 000000 000000 31,370,000 33,385,000 27,955,000 28,502,000 27,774,000 27,362,000 000000

116,900,000 111,259,000 106,740,000 85,214,000 80,620,000 79,969,000 000000 000000 8,234,000 12,198,000 41,206,000 48,967,000 35,534,000 17,147,000 27,619,000 2,540,000 11,582,000 12,211,000 10,644,000 13,823,000 (451,000) (1,338,000) (235,000) (1,299,000) (1,716,000) (662,000)

736,421,000 709,954,000 741,763,000 721,031,000 661,148,000 618,439,000

0 1,000 13,000 13,000 13,000 18,000 53,000 142,000 139,000 27,000 49,000 25,000 451,000 1,338,000 235,000 1,299,000 1,716,000 662,000

504,000 1,481,000 387,000 1,339,000 1,778,000 705,000

736,925,000 711,435,000 742,150,000 722,370,000 662,926,000 619,144,000

139,889,000 (18,312,000) 48,577,000 92,508,000 35,786,000 94,781,000 398,000 5,393,000 338,000 5,529,000 4,853,000 6,383,000

$140,287,000 ($12,919,000) $48,915,000 $98,037,000 $40,639,000 $101,164,000

S-7 Cuyahoga County, Ohio Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting)

2014 2013 2012 2011 General Fund Nonspendable $10,855,525 $18,188,845 $9,617,166 $8,924,464 Committed 0 1,132,418 0 0 Assigned 24,832,959 23,741,261 9,012,927 6,929,678 Unassigned 231,727,208 217,589,992 211,933,355 215,689,432 Reserved 0 0 0 0 Unreserved 0 0 0 0

Total General Fund 267,415,692 260,652,516 230,563,448 231,543,574

All Other Governmental Funds Restricted 1,061,826,135 835,655,986 812,998,055 792,791,146 Unassigned (Deficit) (5,518,121) (16,604,109) (14,882,099) (87,225,306) Reserved 0 0 0 0 Unreserved, Undesigned, Reported in: Special Revenue Funds 0 0 0 0 Capital Projects Funds (Deficit) 0 0 0 0

Total All Other Governmental Funds 1,056,308,014 819,051,877 798,115,956 705,565,840

Total Governmental Funds $1,323,723,706 $1,079,704,393 $1,028,679,404 $937,109,414

Note: The County implemented GASB 54 in 2011.

Note: 2010 - 2005 Dollars rounded to the nearest thousands.

S-8 2010 2009 2008 2007 2006 2005

$0 $0 $0 $0 $0 $0 000000 000000 000000 83,947,000 44,086,000 52,164,000 43,136,000 39,237,000 36,236,000 122,844,000 211,971,000 195,073,000 171,324,000 123,657,000 133,973,000

206,791,000 256,057,000 247,237,000 214,460,000 162,894,000 170,209,000

000000 000000 238,188,000 70,901,000 56,270,000 40,399,000 34,085,000 24,682,000

190,776,000 251,272,000 232,291,000 258,927,000 218,333,000 216,651,000 292,164,000 (31,541,000) (125,426,000) (68,444,000) (24,422,000) (8,242,000)

721,128,000 290,632,000 163,135,000 230,882,000 227,996,000 233,091,000

$927,919,000 $546,689,000 $410,372,000 $445,342,000 $390,890,000 $403,300,000

S-9 Cuyahoga County, Ohio Changes in Fund Balances, Governmental Funds Last Ten Years (Modified Accrual Basis of Accounting)

2014 2013 2012 2011 Revenues Property Taxes $334,693,751 $312,260,678 $329,167,797 $338,271,734 Sales Tax 249,521,238 239,081,320 227,706,506 218,737,889 Hotel/Lodging Taxes 10,487,523 8,612,366 7,954,045 12,391,398 Excise Tax 10,797,827 0 0 0 Other Local Taxes (1) 0 0 0 0 Permissive Motor Vehicle License Tax 0 0 0 0 Payments in Lieu of Taxes 5,762,828 2,757,572 4,608,770 4,987,506 Charges for Services 108,884,670 108,133,821 106,408,921 80,549,139 Licenses and Permits 1,602,660 2,041,488 1,651,798 1,832,243 Fines and Forfeitures 14,755,229 13,844,892 14,546,298 13,243,565 Intergovernmental 481,152,518 477,551,950 594,184,125 628,185,248 Interest 22,625,177 21,932,657 22,063,571 30,743,212 Contributions/Donations 917,254 1,981,349 2,405,074 2,064,929 Other 15,478,079 36,290,469 20,662,831 25,438,525

Total Revenues 1,256,678,754 1,224,488,562 1,331,359,736 1,356,445,388

Expenditures General Government: Legislative and Executive 97,978,574 97,208,989 103,068,583 82,945,251 Judicial 332,961,570 315,262,410 323,059,469 312,244,646 Public Works 31,227,458 29,769,541 20,316,415 22,868,635 Health and Safety 116,519,490 115,075,368 169,619,764 225,659,046 Social Services 473,749,771 458,561,257 475,802,024 476,089,758 Community Development 68,986,088 42,408,134 53,944,394 48,423,547 Capital Outlay 228,198,583 129,505,924 242,545,944 196,629,037 Debt Service: Principal Retirement 73,638,665 71,162,958 65,247,509 63,797,006 Interest and Fiscal Charges 60,336,331 48,262,822 50,544,960 58,834,277 Capital Appreciation Bonds Interest 0 5,249,354 5,201,803 5,156,894 Issuance Costs 3,510,578 379,232 830,264 0

Total Expenditures 1,487,107,108 1,312,845,989 1,510,181,129 1,492,648,097

Excess of Revenues Over (Under) Expenditures (230,428,354) (88,357,427) (178,821,393) (136,202,709)

Other Financing Sources (Uses) Sale of Capital Assets 33,418 29,042,798 0 0 ODOT Loans Issued 0 0 0 76,865 Revenue Bonds Issued 125,631,885 9,890,000 0 0 Revenue Refunding Bonds Issued 55,333,115 0 0 0 Premium on Revenue Bonds 18,679,044 0 0 0 Discount on Revenue Bonds (548,989) (171,181) 0 0 Certificates of Participation Issued 230,885,000 0 0 0 Premium on Certificates of Participation 26,430,183 0 0 0 Discounts on Certificates of Participation (451,125) 0 0 0 General Obligation Bonds Issued 0 0 65,728,000 0 Premium on General Obligation Bonds Issued 0 0 8,197,892 0 General Obligation Refunding Bonds Issued 0 0 45,577,000 0 Payment to Refunded Bond Escrow Agent (59,420,509) 0 (52,178,789) 0 Premium on General Obligation Refunding Bonds 0 0 6,945,422 0 General Obligation Notes Issued 0 0 0 10,320,000 Inception of Capital Lease 75,545,977 79,027,670 220,031,600 122,066,783 Transfers In 94,409,083 69,255,309 95,333,189 87,369,530 Transfers Out (92,079,415) (69,656,194) (97,215,091) (83,676,839)

Total Other Financing Sources (Uses) 474,447,667 117,388,402 292,419,223 136,156,339

Net Change in Fund Balances $244,019,313 $29,030,975 $113,597,830 ($46,370)

Debt Service as a Percentage of Noncapital Expenditures 10.19% 10.12% 9.37% 9.83%

(1) Other Local Taxes was further detailed in 2011-2014

Note: 2010 - 2005 Dollars rounded to the nearest thousands.

S-10 2010 2009 2008 2007 2006 2005

$343,549,000 $358,218,000 $344,518,000 $361,148,000 $337,783,000 $313,675,000 205,212,000 194,026,000 212,712,000 179,932,000 169,300,000 167,156,000 000000 000000 30,502,000 33,661,000 28,039,000 28,587,000 28,615,000 28,683,000 34,070,000 32,422,000 37,406,000 36,942,000 38,563,000 38,548,000 000000 74,168,000 75,102,000 88,504,000 94,170,000 91,527,000 86,912,000 1,894,000 1,844,000 1,570,000 1,715,000 1,500,000 1,815,000 13,867,000 12,388,000 13,747,000 14,427,000 10,885,000 8,149,000 643,117,000 710,280,000 713,885,000 720,348,000 695,878,000 703,236,000 8,558,000 12,288,000 41,432,000 49,451,000 36,236,000 17,859,000 000000 28,531,000 22,105,000 11,527,000 20,379,000 10,384,000 13,849,000

1,383,468,000 1,452,334,000 1,493,340,000 1,507,099,000 1,420,671,000 1,379,882,000

82,025,000 82,661,000 97,160,000 71,902,000 84,610,000 84,122,000 317,018,000 322,038,000 348,986,000 333,442,000 324,794,000 293,777,000 49,489,000 48,258,000 43,766,000 54,572,000 58,174,000 58,381,000 219,660,000 222,875,000 219,532,000 214,081,000 234,874,000 207,379,000 518,710,000 642,763,000 670,037,000 652,739,000 642,445,000 587,823,000 49,704,000 50,676,000 40,096,000 42,300,000 32,046,000 32,308,000 123,286,000 76,145,000 75,278,000 46,554,000 24,262,000 38,981,000

26,061,000 23,550,000 23,166,000 26,041,000 22,455,000 22,851,000 21,897,000 16,119,000 15,086,000 13,581,000 17,002,000 16,475,000 000000 000000

1,407,850,000 1,485,085,000 1,533,107,000 1,455,212,000 1,440,662,000 1,342,097,000

(24,382,000) (32,751,000) (39,767,000) 51,887,000 (19,991,000) 37,785,000

000000 000000 000000 000000 000000 000000 000000 000000 000000 381,765,000 163,825,00000080,020,000 14,354,000 6,445,0000000 44,870,00000000 (44,996,000) 0000(80,020,000) 000000 000000 455,000 0 1,753,000 1,825,000 7,342,000 0 320,212,000 234,102,000 238,347,000 209,114,000 192,263,000 167,903,000 (318,742,000) (235,304,000) (235,303,000) (208,374,000) (192,024,000) (166,526,000)

397,918,000 169,068,000 4,797,000 2,565,000 7,581,000 1,377,000

$373,536,000 $136,317,000 ($34,970,000) $54,452,000 ($12,410,000) $39,162,000

3.41% 2.67% 2.50% 2.81% 2.79% 3.02%

S-11 Cuyahoga County, Ohio Assessed and Estimated Actual Value of Taxable Property Last Ten Years

Real Property Tangible Personal Property

Assessed Value General Business Public Utility Property Estimated Estimated Estimated Collection Residential/ Commercial/ Actual Assessed Actual Assessed Actual Year Agricultural Industrial/PU Value (1) Value Value (1) Value Value (1)

2014 $18,485,315,020 $8,368,655,890 $76,725,631,171 $0 $0 $840,870,540 $955,534,705

2013 18,501,990,940 8,392,051,800 76,840,122,114 0 0 758,430,350 861,852,670

2012 20,303,526,670 8,795,069,360 83,138,845,800 0 0 698,069,260 793,260,523

2011 20,388,242,460 8,764,927,890 83,294,772,429 0 0 673,170,690 764,966,693

2010 20,379,862,990 8,599,341,910 82,797,728,286 0 0 654,490,330 743,739,011

2009 22,070,872,480 8,427,517,630 87,138,257,457 383,269,519 6,132,312,304 615,400,890 699,319,193

2008 21,973,357,040 8,441,851,130 86,900,594,771 728,222,334 5,825,778,672 588,833,160 669,128,591

2007 21,868,198,750 8,524,013,570 86,834,892,343 1,923,151,550 10,256,808,267 842,683,110 957,594,443

2006 19,556,454,950 7,841,892,830 78,280,993,657 2,390,326,714 9,561,306,856 857,330,780 974,239,523

2005 19,386,378,350 7,931,779,820 78,051,880,486 2,384,696,811 9,538,787,244 944,717,180 1,073,542,250

(1) Real Property is reappraised every six years with a State mandated update of the current market value in the third year following each reappraisal.

The assessed value of real property (including public utility real property) is 35 percent of estimated true value. The assessed value of public utility personal property ranges from 25 percent of a true value for railroad property to 88 percent for electric transmission and distribution property. General business tangible personal property was assessed in previous years at 25 percent for machinery and equipment and 23 percent for inventories. General business tangible personal property tax was phased out beginning in tax year 2007. Both types of general business tangible personal property were assessed at 12.5 for 2007, 6.25 percent for 2008 and zero for 2009. Beginning in 2007, House Bill 66 switched telephone companies from being public utilities to general business taxpayers and began a four year phase out of tangible personal property tax on local and inter-exchange telephone companies. No tangible personal property taxes were levied or in 2009 from general business taxpayers (except telephone companies whose last year to pay tangible personal property tax was in 2011 for tax year 2010)

The tangible personal property values associated with each year are the values that, when mulitplied by the applicable rates, generated the property tax revenue billed in that year. For real property, the amounts generated by mulitplying the assessed values by the applicable rates would be reduced by the 10 percent, 2 1/2 percent, and homestead exemptions before being billed. Beginning in the 2006 collection year, the 10% rollback for commercial/industrial property has been eliminated.

(2) Information is not available.

(3) Weighted average tax rate is adjusted to account for overall percentage of total assessed valuation.

Source: Cuyahoga County Fiscal Office

S-12 Effective Tax Rate

Tangible Personal Weighted Totals Real Property Property Average Estimated Tax Rate (3) Assessed Actual Residential/ Commercial/ General (per $1000 of Value Value (2) Ratio Agricultural Industrial/PU Business/PU Assessed Value)

$27,694,841,450 $77,681,165,876 35.7% $14.050000 $14.019471 $14.050000 $14.040775

27,652,473,090 77,701,974,785 35.6 13.220000 12.996763 13.220000 13.152251

29,796,665,290 83,932,106,323 35.5 13.118225 12.784542 13.220000 13.022116

29,826,341,040 84,059,739,122 35.5 13.186619 12.841251 13.320000 13.088138

29,633,695,230 83,541,467,297 35.5 11.458886 11.125700 13.320000 11.403304

31,497,060,519 93,969,888,954 33.5 10.940733 11.095297 13.320000 10.895444

31,732,263,664 93,395,502,034 34.0 10.148870 10.733559 13.420000 10.132211

33,158,046,980 98,049,295,053 33.8 10.145486 10.774099 13.420000 9.801870

30,646,005,274 88,816,540,036 34.5 10.002743 10.856262 13.520000 9.539349

30,647,572,161 88,664,209,980 34.6 9.255356 10.264634 13.520000 8.927860

S-13 Cuyahoga County, Ohio Property Tax Rates - Direct and Overlapping Governments (Per $1,000 Assessed Value) Last Four Years (1)

2014 2013 Gross Effective Gross Effective Rate Rate (2) Rate Rate (2)

Unvoted Millage Operating $0.600000 $0.600000 $0.600000 $0.600000 Bond Retirement 0.850000 0.850000 0.850000 0.850000 Total Unvoted Millage 1.450000 1.450000 1.450000 1.450000

Voted Millage - by levy 1976 - Bond Retirement 0.000000 0.000000 0.170000 0.170000

2005 - Mental Health Residential/Agricultural Real 3.900000 3.900000 3.900000 3.900000 Commercial/Industrial and Public Utility Real 3.900000 3.869471 3.900000 3.771966 Public Utility Tangible Personal Property 3.900000 3.900000 3.900000 3.900000

2006 - Health and Human Services Residential/Agricultural Real 0.000000 0.000000 2.900000 2.900000 Commercial/Industrial and Public Utility Real 0.000000 0.000000 2.900000 2.804795 Public Utility Tangible Personal Property 0.000000 0.000000 2.900000 2.900000

2008 - Health and Welfare Residential/Agricultural Real 4.800000 4.800000 4.800000 4.800000 Commercial/Industrial and Public Utility Real 4.800000 4.800000 4.800000 4.800000 Public Utility Tangible Personal Property 4.800000 4.800000 4.800000 4.800000

2014 - Health and Human Services Residential/Agricultural Real 3.900000 3.900000 0.000000 0.000000 Commercial/Industrial and Public Utility Real 3.900000 3.900000 0.000000 0.000000 Public Utility Tangible Personal Property 3.900000 3.900000 0.000000 0.000000

Total Voted Millage by type of Property Residential/Agricultural Real $12.600000 $12.600000 $11.770000 $11.770000 Commercial/Industrial and Public Utility Real 12.600000 12.569471 11.770000 11.546761 General Business and Public Utility Personal 12.600000 12.600000 11.770000 11.770000

Total Millage by type of Property Residential/Agricultural Real $14.050000 $14.050000 $13.220000 $13.220000 Commercial/Industrial and Public Utility Real 14.050000 14.019471 13.220000 12.996761 General Business and Public Utility Personal 14.050000 14.050000 13.220000 13.220000

Total Weighted Average Tax Rate $14.040775 $13.152251

S-14 2012 2011 Gross Effective Gross Effective Rate Rate (2) Rate Rate (2)

$0.600000 $0.600000 $0.580000 $0.580000 0.850000 0.850000 0.870000 0.870000 1.450000 1.450000 1.450000 1.450000

0.170000 0.170000 0.270000 0.270000

3.900000 3.841629 3.900000 3.823502 3.900000 3.650252 3.900000 3.626489 3.900000 3.900000 3.900000 3.900000

2.900000 2.856596 2.900000 2.843117 2.900000 2.714290 2.900000 2.696620 2.900000 2.900000 2.900000 2.900000

4.800000 4.800000 4.800000 4.800000 4.800000 4.800000 4.800000 4.798142 4.800000 4.800000 4.800000 4.800000

0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000

$11.770000 $11.668225 $11.870000 $11.736619 11.770000 11.334542 11.870000 11.391251 11.770000 11.770000 11.870000 11.870000

$13.220000 $13.118225 $13.320000 $13.186619 13.220000 12.784542 13.320000 12.841251 13.220000 13.220000 13.320000 13.320000

$13.022116 $13.088138

(continued)

S-15 Cuyahoga County, Ohio Property Tax Rates - Direct and Overlapping Governments (continued) (Per $1,000 Assessed Value) Last Four Years (1)

2014 2013 Gross Effective Gross Effective Rate Rate (2) Rate Rate (2)

Overlapping Rates by Taxing District Cities and Villages Bay Village $14.900000 $14.900000 $14.900000 $14.900000 Beachwood 8.000000 8.000000 4.000000 4.000000 Bedford 21.700000 21.700000 21.700000 21.700000 Bedford Heights 43.800000 43.800000 21.900000 21.900000 Bentleyville 8.900000 7.520600 8.900000 7.503000 Berea 32.600000 24.521800 16.800000 12.759000 Bratenahl 16.000000 16.000000 16.000000 16.000000 Brecksville 8.210000 8.210000 8.210000 8.210000 Broadview Heights 20.800000 15.816600 10.400000 7.327000 Brook Park 9.500000 9.463000 5.900000 5.900000 Brooklyn 5.900000 5.900000 4.400000 4.400000 Brooklyn Heights 4.400000 4.400000 4.750000 4.731000 Chagrin Falls 9.300000 8.922100 9.500000 9.122000 Cleveland 38.100000 38.100000 12.700000 12.700000 Cleveland Heights 27.840000 27.840000 12.900000 12.900000 Cuyahoga Heights 4.400000 4.400000 4.400000 4.400000 East Cleveland 12.700000 12.700000 12.700000 12.700000 Euclid 13.600000 7.310200 13.600000 7.281000 Fairview Park 35.400000 34.834500 11.800000 11.611000 Garfield Heights 54.400000 54.400000 27.000000 27.000000 Gates Mills 14.400000 13.021900 14.400000 12.997000 Glenwillow 3.300000 3.300000 3.300000 3.300000 Highland Hills 20.700000 18.063700 20.700000 18.012000 Highland Heights 4.000000 4.000000 4.000000 4.000000 Hunting Valley 5.100000 5.100000 5.100000 5.100000 Independence 2.200000 2.200000 2.200000 2.200000 Lakewood 17.400000 17.400000 17.400000 17.400000 Linndale 2.800000 2.800000 2.800000 2.800000 Lyndhurst 11.500000 11.500000 11.500000 11.500000 Maple Heights 15.500000 15.500000 15.500000 15.500000 Mayfield 7.300000 4.220800 7.300000 4.219000 Mayfield Heights 10.000000 10.000000 10.000000 10.000000 Middleburg Heights 5.450000 4.706800 5.450000 4.706000 Moreland Hills 14.600000 14.600000 7.300000 7.300000 Newburg Heights 31.800000 31.800000 31.800000 31.800000 North Olmsted 26.600000 26.600000 13.300000 13.300000 North Randall 4.800000 4.461600 4.800000 4.458000 North Royalton 16.400000 12.103600 8.200000 6.049000 Oakwood 3.800000 3.800000 3.800000 3.800000 Olmsted Falls 26.700000 21.196600 13.350000 10.597000 Orange 14.200000 14.200000 7.100000 7.100000 Parma 7.600000 7.600000 7.100000 6.784000

S-16 2012 2011 Gross Effective Gross Effective Rate Rate (2) Rate Rate (2)

$14.900000 $14.900000 $14.900000 $14.900000 4.000000 4.000000 4.000000 4.000000 21.700000 21.700000 21.700000 21.700000 21.900000 21.900000 21.900000 21.900000 8.900000 7.193844 8.900000 6.915900 16.800000 12.756954 33.400000 13.135000 16.100000 15.203527 16.000000 15.486400 8.210000 8.210000 8.210000 8.210000 10.400000 7.325470 10.400000 6.316400 4.750000 4.668061 4.750000 4.668061 5.900000 5.900000 5.900000 5.900000 4.400000 4.400000 4.400000 4.400000 9.500000 9.109577 11.200000 11.184700 12.700000 12.700000 12.700000 12.700000 13.000000 13.000000 13.000000 12.900000 4.400000 4.400000 4.400000 4.400000 12.700000 12.700000 12.700000 12.700000 13.600000 7.259468 13.600000 6.374900 11.800000 11.609160 11.800000 11.577000 27.000000 27.000000 24.300000 24.300000 14.400000 12.955452 14.400000 12.763600 3.300000 3.300000 3.300000 3.300000 20.700000 10.977435 20.700000 11.820500 4.000000 4.000000 4.000000 4.000000 5.100000 5.100000 5.100000 5.100000 2.200000 2.200000 2.200000 2.200000 17.400000 17.400000 17.400000 17.400000 2.800000 2.800000 2.800000 2.800000 11.500000 11.500000 11.500000 11.500000 15.500000 15.500000 15.500000 15.500000 7.300000 4.219093 7.300000 4.167800 10.000000 10.000000 10.000000 10.000000 5.450000 4.706242 5.450000 4.688100 7.300000 7.300000 7.300000 7.300000 23.100000 21.847377 23.100000 22.724800 13.300000 13.300000 13.300000 13.300000 4.800000 4.457654 4.800000 4.223000 8.200000 6.045118 8.200000 5.917500 3.800000 3.800000 3.800000 3.800000 14.450000 11.341713 14.450000 11.158500 7.100000 7.100000 7.100000 7.100000 7.100000 6.781943 7.100000 6.628700

(continued)

S-17 Cuyahoga County, Ohio Property Tax Rates - Direct and Overlapping Governments (continued) (Per $1,000 Assessed Value) Last Four Years (1)

2014 2013 Gross Effective Gross Effective Rate Rate (2) Rate Rate (2)

Parma Heights $10.000000 $10.000000 $10.000000 $10.000000 Pepper Pike 19.000000 19.000000 9.500000 9.473000 Richmond Heights 36.200000 31.491400 18.100000 15.740000 Rocky River 10.900000 10.900000 10.900000 10.900000 Seven Hills 11.200000 11.200000 11.200000 11.200000 Shaker Heights 9.900000 9.900000 9.900000 9.900000 Solon 7.600000 7.344400 3.800000 3.672000 South Euclid 32.700000 32.700000 16.350000 16.350000 Strongsville 9.800000 7.779000 9.800000 7.783000 University Heights 13.200000 13.200000 13.200000 13.200000 Valleyview 6.700000 6.700000 6.700000 6.700000 Walton Hills 0.300000 0.300000 0.300000 0.300000 Warrensville Heights 19.400000 12.866000 9.700000 6.421000 Westlake 9.520000 9.520000 9.520000 9.520000 Woodmere 4.300000 4.300000 4.300000 4.300000

Townships Chagrin Falls Township 0.800000 0.800000 0.400000 0.400000 Olmsted Township 27.500000 18.008100 23.500000 14.048140

School Districts Bay Village City 116.810000 55.430200 116.810000 55.370000 Beachwood City 172.800000 83.680400 86.400000 41.770000 Bedford City 302.880000 178.986000 70.820000 39.760000 Berea City 472.200000 268.281000 78.800000 44.770000 Brecksville-Broadview Heights City 231.000000 119.917500 77.200000 40.120000 Brooklyn City 60.200000 51.753100 60.100000 51.600000 Chagrin Falls Exempted Village 461.200000 216.955200 115.600000 54.450000 Cleveland Heights-University Heights City 448.770000 242.854200 149.590000 80.380000 Cleveland Municipal 476.400000 313.199400 79.800000 52.430000 Cuyahoga Heights Local 107.100000 89.787900 35.700000 29.910000 Cuyahoga Valley Joint Vocational 20.000000 20.000000 2.000000 2.000000 East Cleveland City 188.200000 99.137800 94.100000 49.120000 Euclid City 101.600000 75.907500 100.700000 74.750000 Fairview Park City 96.470000 57.091900 96.470000 57.060000 Garfield Heights City 81.060000 74.031500 78.260000 71.010000 Independence Local 35.800000 34.375300 36.000000 34.560000 Lakewood City 123.230000 66.650200 123.230000 66.540000 Maple Heights City 88.200000 72.887600 81.200000 65.600000 Mayfield City 336.480000 190.096800 84.220000 47.580000 North Olmsted City 96.900000 60.760600 91.400000 55.240000 North Royalton City 131.400000 83.752400 65.700000 41.870000 Olmsted Falls City 408.800000 226.799600 102.200000 56.740000 Orange City 728.800000 380.555200 91.100000 47.270000

S-18 2012 2011 Gross Effective Gross Effective Rate Rate (2) Rate Rate (2)

$10.000000 $10.000000 $10.000000 $10.000000 9.500000 9.397424 9.500000 9.493300 18.100000 15.713005 18.100000 15.544400 10.900000 10.900000 10.900000 10.900000 9.700000 9.644266 9.500000 9.206300 9.900000 9.900000 9.900000 9.900000 3.800000 3.670488 3.800000 3.658000 13.100000 13.100000 13.100000 13.100000 9.900000 7.479414 9.900000 7.408900 13.200000 13.200000 13.200000 13.200000 6.700000 6.700000 6.700000 6.700000 0.300000 0.300000 0.300000 0.300000 9.700000 6.419261 9.700000 5.631400 9.520000 9.520000 9.600000 9.600000 4.300000 4.300000 4.300000 4.300000

0.400000 0.400000 0.400000 0.400000 23.500000 14.038212 23.500000 13.823500

116.810000 55.286249 114.850000 52.973400 86.400000 41.738640 86.400000 41.162100 71.300000 40.121077 71.300000 37.582300 78.900000 44.830151 78.900000 38.702700 77.200000 40.065695 77.200000 39.191100 48.700000 37.463923 47.200000 34.355000 115.600000 54.265225 115.600000 47.570800 143.700000 74.304939 143.700000 71.722000 79.800000 52.116544 64.800000 31.674200 35.700000 29.875333 27.800000 21.486100 2.000000 2.000000 2.000000 2.000000 94.100000 48.879625 93.000000 40.193200 98.400000 72.259290 88.400000 53.314800 97.700000 58.226447 97.600000 56.825600 74.260000 61.651591 56.860000 42.997700 35.200000 33.702823 34.900000 32.939300 115.400000 58.550776 115.400000 56.689300 78.800000 59.539249 74.200000 49.899700 84.220000 47.521880 78.320000 40.187500 91.400000 55.226639 91.400000 52.597500 65.700000 41.509896 65.700000 41.027700 102.200000 56.455233 101.600000 54.189900 91.100000 47.199004 91.100000 47.016400

(continued)

S-19 Cuyahoga County, Ohio Property Tax Rates - Direct and Overlapping Governments (continued) (Per $1,000 Assessed Value) Last Four Years (1)

2014 2013 Gross Effective Gross Effective Rate Rate (2) Rate Rate (2)

Parma City $226.530000 $163.881900 $75.700000 $54.780000 Polaris Joint Vocational 33.600000 32.646600 2.400000 2.330000 Richmond Heights Local 87.900000 51.794200 87.900000 51.660000 Rocky River City 179.100000 99.091400 89.550000 49.510000 Shaker Heights City 373.660000 198.147000 179.930000 91.730000 Solon City 164.400000 99.366600 82.200000 49.610000 South Euclid-Lyndhurst City 322.800000 200.946600 107.400000 66.550000 Strongsville City 81.780000 41.922700 81.680000 41.850000 Warrensville Heights City 459.000000 321.845500 91.800000 64.190000 Westlake City 70.100000 37.316300 70.100000 37.310000

Special Districts Chagrin Falls Township Fire District 0.800000 0.800000 0.800000 0.800000 Cleveland Heights Library 30.000000 24.516600 7.800000 5.923000 Cleveland Library 40.800000 38.028000 6.800000 6.335000 Cleveland Metroparks 220.000000 220.000000 2.750000 2.750000 Cleveland-Cuyahoga Port Authority 10.400000 9.144000 0.130000 0.114000 Cuyahoga Community College 320.000000 320.000000 3.100000 3.100000 Cuyahoga County Library 155.000000 155.000000 2.500000 2.500000 East Cleveland Library 14.000000 13.759800 7.000000 6.870000 Euclid Library 5.600000 5.600000 4.000000 4.000000 Lakewood Library 3.500000 2.523100 3.500000 2.516000 Rocky River Library 12.200000 10.184600 6.100000 5.085000 Shaker Heights Library 8.000000 8.000000 4.000000 4.000000 Westlake Library 2.800000 2.800000 2.800000 2.800000

(1) Information prior to 2011 is not available.

(2) Based on the lower of Residential/Agricultural or Commercial/Industrial effective tax rates.

Note: The rates presented for a particular calendar year are the rates that, when applied to the assessed values presented in the Assessed Value Table, generated the property tax revenue billed in that year. By statute, voted rates applied to real property valuations decrease as assessments increase.

The County's basic property tax rate may be increased only by a majority vote of the County's residents.

Overlapping rates are those of local and county governments that apply to property owners within the County.

Debt Service levies are designed to raise a fixed amount of revenue each year. A rate is set each year so that when it is applied to the total assessed value, the fixed amount is generated.

Sources: Cuyahoga County Fiscal Office

S-20 2012 2011 Gross Effective Gross Effective Rate Rate (2) Rate Rate (2)

$74.100000 $53.140341 $73.000000 $49.383900 2.400000 2.131439 2.400000 2.041300 87.900000 50.761636 82.600000 41.503500 89.450000 49.332115 84.350000 44.129600 180.130000 91.800936 180.130000 86.453600 82.200000 49.516875 82.200000 48.334500 107.400000 63.709511 101.500000 55.420900 81.680000 41.838769 80.980000 40.077600 89.100000 61.447102 89.000000 50.783700 70.100000 37.258425 70.100000 36.769100

0.800000 0.800000 0.800000 0.800000 7.800000 5.907156 7.800000 5.710800 6.800000 6.328350 6.800000 6.221000 1.850000 1.791705 1.850000 1.735400 0.130000 0.109828 0.130000 0.103300 3.100000 3.060605 3.100000 3.023200 2.500000 2.500000 2.500000 2.500000 7.000000 6.864371 7.000000 6.428300 4.000000 4.000000 4.000000 4.000000 3.500000 2.504421 3.500000 2.375100 6.100000 5.071419 6.100000 5.052600 4.000000 4.000000 4.000000 4.000000 2.800000 2.800000 2.800000 2.800000

S-21 Cuyahoga County, Ohio Property Tax Levies and Collections Last Five Years (1) Real and Public Utility Taxes

Delinquent Current Tax Current Tax Percent Taxes Total Tax Year Levy (2) Collections Collected Collected (3) Collected

2014 $390,158,164 $353,768,300 91% $15,749,553 $369,517,853

2013 364,260,628 334,506,534 92 15,389,021 349,895,555

2012 389,234,859 351,405,833 90 18,625,846 370,031,679

2011 391,054,735 356,161,963 91 15,269,151 371,431,114

2010 390,631,875 358,543,076 92 16,268,732 374,811,808

(1) Information prior to 2010 is not available. Does not include special district levies that are not part of the County entity for reporting purposes.

(2) Does not include State reimbursements for homestead and rollback exemptions.

(3) The County does not identify delinquent collections by the year for which the tax was levied.

(4) This amount cannot be calculated based on other information in this statistical table because of retroactive additions and deletions which are brought on in one lump sum. Penalties and interest are included, since by Ohio Law they become part of the tax obligation.

Note: The County's current reporting system does not track delinquent tax collections by tax year. Outstanding delinquencies are tracked in total by the date the parcel is first certified delinquent. Penalties and interest are applied to the total outstanding delinquent balance.

Source: Cuyahoga County Budget Commission

S-22 Percent of Percent of Outstanding Total Collections Outstanding Delinquent to Current Delinquent Taxes to Tax Levy Tax (4) Current Tax Levy

95% $83,282,424 21.3%

96 78,943,788 21.7

95 88,798,324 22.8

95 83,771,107 21.4

96 76,616,374 19.6

S-23 Cuyahoga County, Ohio Principal Real Property Taxpayers 2014 and 2012 (1)

2014

Real Property Percentage of Real Taxpayer Assessed Valuation Assessed Valuation

City of Cleveland (3) $112,297,620 0.42% Key Center Properties 89,956,240 0.33 Cuyahoga County 81,381,930 0.30 Southpark Mall, LLC 75,587,220 0.28 Beachwood Place, LTD 65,324,350 0.24 Progressive Casualty, Inc. 62,112,390 0.23 Optima 55, 925, 1300, 1375, LLC 56,016,670 0.21 Eaton Corporation 53,413,820 0.20 Great Northern Partnership 52,774,730 0.20 Cleveland Financial Associates 51,485,990 0.19

Totals $700,350,960 2.61%

Total Real Property Assessed Valuation $26,853,970,910

2012

Real Property Percentage of Real Taxpayer Assessed Valuation Assessed Valuation

City of Cleveland (3) $127,007,170 0.44% Key Center Properties 83,619,320 0.29 Southpark Mall, LLC 65,745,660 0.23 Progressive Casualty, Inc. 63,628,920 0.22 Beachwood Place, LTD 57,858,580 0.20 Optima 55, 925, 1300, 1375, LLC 52,289,190 0.18 National City Center 45,452,780 0.16 Legacy Village Investors, LLC 39,497,510 0.13 Hub North Point Properties 39,026,300 0.13 Toledo-Lucas County Port Authority 38,973,900 0.13

Totals $613,099,330 2.11%

Total Real Property Assessed Valuation $29,098,596,030

(1) Information prior to 2012 is not available.

(2) County records show The Cleveland Clinic Foundation to have real property assessed valuation of $408,436,105 and University Hospital to have real property assessed valuation of $85,220,420. These taxpayers have applied for property tax exemptions relative to a significant portion of the assessed valuation. With the outcome of the exemption applications unknown, and with current tax collections from these taxpayers not reflective of the current assessed valuation, these taxpayers are not shown in the above table.

(3) Includes, among other things, the following properties which are subject to ad valorem taxation: land comprising the site of Cleveland Browns Stadium, various municipal parking logs and areas of Cleveland Hopkins International Airport and Burke Lakefront Airport that are leased to third parties.

Source: Cuyahoga County Fiscal Office S-24 Cuyahoga County, Ohio Ratio of General Bonded Debt to Estimated True Values of Taxable Property And Bonded Debt Per Capita Last Ten Years

Estimated True Gross Ratio of Bonded Bonded Values of Taxable Bonded Debt to Estimated Debt Year Population (1) Property Debt (2)(3) True Values Per Capita

2014 1,280,122 $77,681,165,876 $282,490,306 0.3637% $220.67

2013 1,280,122 77,701,974,785 335,242,118 0.4314 261.88

2012 1,280,122 83,932,106,323 360,321,785 0.4293 281.47

2011 1,280,122 84,059,739,122 308,739,556 0.3673 241.18

2010 1,280,122 83,541,467,297 313,981,182 0.3758 245.27

2009 1,393,978 93,969,888,954 321,458,000 0.3421 230.60

2008 1,393,978 93,395,502,034 173,500,000 0.1858 124.46

2007 1,393,978 98,049,295,053 188,814,000 0.1926 135.45

2006 1,393,978 88,816,540,036 208,194,000 0.2344 149.35

2005 1,393,978 88,664,209,980 224,861,000 0.2536 161.31

(1) 2010-2014 U.S. Bureau of Census, 2010 Census of Population 2005-2009 U.S. Bureau of Census, 2000 Census of Population

(2) Includes only General Obligation Bonded Debt payable from property tax.

(3) Although the debt service fund is restricted for debt service, it is not specifically restricted to the payment of principal. Therefore, these resouces are not shown as a deduction from general obligation bonded debt.

Source: Cuyahoga County Fiscal Office

S-25 Cuyahoga County, Ohio Ratio of Outstanding Debt to Total Personal Income and Debt per Capita Last Ten Years

Governmental Activities General Obligation Revenue Certificates of Capital OPWC Loans Year Bonds Bonds Participation Notes Leases Loans Payable

2014 $282,490,306 $576,029,491 $256,864,058 $2,000,000 $425,742,974 $750,752 $4,109,124

2013 335,242,118 427,434,477 0 5,100,000 372,101,958 813,314 5,245,266

2012 360,321,785 441,559,586 0 7,200,000 318,365,278 907,157 6,362,745

2011 308,739,556 464,266,354 0 9,300,000 120,082,346 938,438 7,462,108

2010 313,981,182 475,635,567 0 10,150,000 20,850,538 1,001,000 8,808,359

2009 321,458,000 93,025,000 0 10,000,000 24,490,000 1,065,000 6,740,000

2008 173,500,000 97,575,000 0 70,000,000 30,034,000 1,127,000 4,135,000

2007 188,814,000 101,905,000 0 0 33,114,000 1,189,000 5,595,000

2006 208,194,000 106,016,000 0 0 35,512,000 1,251,000 6,323,000

2005 224,861,000 109,950,000 0 0 31,911,000 0 5,752,000

(1) Personal income and population are located on S32.

Source: Cuyahoga County Fiscal Office

S-26 Business-Type ActivitiesTotal Debt Self Primary Percentage of Debt Supporting OPWC OWDA Government Personal Per Bonds Loans Loans Debt Income (1) Capita (1)

$210,000 $319,873 $11,897,772 $1,560,414,350 2.91 % $1,219

3,515,000 398,251 12,566,125 1,162,416,509 2.17 908

3,765,000 476,631 13,140,331 1,152,098,513 2.15 900

4,195,000 580,557 12,467,416 928,031,775 1.73 725

4,610,000 685,755 8,186,373 843,908,774 1.57 659

5,015,000 9,575,000 0 471,368,000 1.02 338

5,400,000 8,545,000 0 390,316,000 0.85 280

5,780,000 6,991,000 0 343,388,000 0.74 246

6,145,000 4,590,000 0 368,031,000 0.80 264

6,505,000 4,694,000 0 383,673,000 0.83 275

S-27 Cuyahoga County, Ohio Computation of Legal Debt Margin Last Five Years (1)

2014 2013 Total Debt Total Unvoted Total Debt Total Unvoted Limit (2) Debt Limit (3) Limit (2) Debt Limit (3)

Assessed Value of County $27,694,841,450 $27,694,841,450 $27,652,473,090 $27,652,473,090

Debt Limitation $690,871,036 $276,948,415 $689,811,827 $276,524,731

Total Outstanding Debt: General Obligation Bonds 262,065,000 262,065,000 310,730,000 310,730,000 Revenue Bonds 546,025,000 546,025,000 414,825,000 414,825,000 Certificates of Participation 230,885,000 230,885,000 0 0 Bond Anticipation Notes 0 0 5,100,000 5,100,000 Loans Payable 4,859,876 4,859,876 6,058,580 6,058,580 Self Supporting Bonds 210,000 210,000 3,515,000 3,515,000 OPWC Enterprise Loans 319,873 319,873 398,251 398,251 OWDA Loans 11,897,772 11,897,772 12,566,125 12,566,125

Total 1,056,262,521 1,056,262,521 753,192,956 753,192,956

Exemptions: Jail Facilities General Obligation Bonds 82,483,000 82,483,000 84,148,000 84,148,000 Rock Hall General Obligation Bonds 3,115,000 3,115,000 3,795,000 3,795,000 Sewer General Obligation Bonds 602,000 602,000 604,000 604,000 Revenue Bonds 546,025,000 546,025,000 414,825,000 414,825,000 Certificates of Participation 230,885,000 230,885,000 0 0 Bond Anticipation Notes 0 0 5,100,000 5,100,000 Self Supporting Bonds 210,000 210,000 3,515,000 3,515,000 OPWC Enterprise Loans 319,873 319,873 398,251 398,251 OWDA Loans 11,897,772 11,897,772 12,566,125 12,566,125 Debt Service Fund Balance 71,865,953 71,865,953 24,475,732 24,475,732

Total 947,403,598 947,403,598 549,427,108 549,427,108

Net Debt 108,858,923 108,858,923 203,765,848 203,765,848

Total Legal Debt Margin $582,012,113 $168,089,492 $486,045,979 $72,758,883

Legal Debt Margin as a Percentage of the Debt Limit 84.24% 70.46%

(1) Information prior to 2010 is not available. (2) The Debt Limitation is calculated as follows: 3% of first $100,000,000 of assessed value $3,000,000 $3,000,000 1 1/2% of next $200,000,000 of assessed value 3,000,000 3,000,000 2 1/2% of amount of assessed value in excess of $300,000,000 684,871,036 683,811,827 $690,871,036 $689,811,827 (3) The Debt Limitation equals 1% of assessed value.

Source: Cuyahoga County Office of Budget and Management

S-28 2012 2011 2010 Total Debt Total Unvoted Total Debt Total Unvoted Total Debt Total Unvoted Limit (2) Debt Limit (3) Limit (2) Debt Limit (3) Limit (2) Debt Limit (3)

$29,796,665,290 $29,796,665,290 $29,826,341,040 $29,826,341,040 $29,633,695,230 $29,633,695,230

$743,416,632 $297,966,653 $744,158,526 $298,263,410 $739,342,381 $296,336,952

330,105,646 330,105,646 284,613,843 284,613,843 301,781,949 301,781,949 428,120,000 428,120,000 450,180,000 450,180,000 461,360,000 461,360,000 000000 7,200,000 7,200,000 9,300,000 9,300,000 10,150,000 10,150,000 7,269,902 7,269,902 8,400,546 8,400,546 9,809,359 9,809,359 3,765,000 3,765,000 4,195,000 4,195,000 4,610,000 4,610,000 476,631 476,631 580,557 580,557 685,755 685,755 13,140,331 13,140,331 12,467,416 12,467,416 8,186,373 8,186,373

790,077,510 790,077,510 769,737,362 769,737,362 796,583,436 796,583,436

87,188,646 87,188,646 67,513,813 67,513,813 70,244,437 70,244,437 4,440,000 4,440,000 5,050,000 5,050,000 5,625,000 5,625,000 606,000 606,000 365,000 365,000 540,000 540,000 428,120,000 428,120,000 450,180,000 450,180,000 461,360,000 461,360,000 000000 7,200,000 7,200,000 9,300,000 9,300,000 10,150,000 10,150,000 3,765,000 3,765,000 4,195,000 4,195,000 4,610,000 4,610,000 476,631 476,631 580,557 580,557 685,755 685,755 13,140,331 13,140,331 12,467,416 12,467,416 8,186,373 8,186,373 26,423,801 26,423,801 21,830,269 21,830,269 20,487,187 20,487,187

571,360,409 571,360,409 571,482,055 571,482,055 581,888,752 581,888,752

218,717,101 218,717,101 198,255,307 198,255,307 214,694,684 214,694,684

$524,699,531 $79,249,552 $545,903,219 $100,008,103 $524,647,697 $81,642,268

70.58% 73.36% 70.96%

$3,000,000 $3,000,000 $3,000,000 3,000,000 3,000,000 3,000,000 737,416,632 738,158,526 733,342,381 $743,416,632 $744,158,526 $739,342,381

S-29 Cuyahoga County, Ohio Computation of Direct and Overlapping Governmental Activities Debt December 31, 2014

Governmental Percent Amount Activities Applicable To Applicable To Political Subdivision Debt County (1) Cuyahoga County

The County General Obligation Bonds $282,490,306 100.00 % $282,490,306 Revenue Bonds 576,029,491 100.00 576,029,491 Certificates of Participation 256,864,058 100.00 256,864,058 Loans 4,859,876 100.00 4,859,876 Bond Anticipation Notes 2,000,000 100.00 2,000,000 Capital Leases 425,742,974 100.00 425,742,974

Total County 1,547,986,705 1,547,986,705

Overlapping All Cities wholly within County 903,623,170 100.00 903,623,170 All Villages wholly within County 29,481,699 100.00 29,481,699 All Townships wholly within County 1,810,000 100.00 1,810,000 All School Districts (S.D.) wholly within County 886,833,789 100.00 886,833,789 Regional Transit Authority (RTA) 102,840,000 100.00 102,840,000 Strongsville, City S.D. 78,324,223 99.79 78,159,742 Olmstead Falls City S.D. 15,796,829 96.53 15,248,679 Chagrin Falls Exempted Village S.D. 19,489,521 63.01 12,280,347

Total Overlapping 2,038,199,231 2,030,277,426

Total Applicable to Cuyahoga County $3,586,185,936 $3,578,264,131

(1) Percentages were determined by dividing the assessed valuation of the political subdivision located within the boundaries of the County by the total assessed valuation of the political subdivision. The valuations used were for the 2014 tax year, 2015 collection.

Source: Cuyahoga County Fiscal Office

S-30 (This Page Intentionally Left Blank)

S-31 Cuyahoga County, Ohio Demographic Statistics Last Ten Years

Personal Population Total Personal Income Density Year Population (1) Income (2) Per Capita (Persons/Sq Mi.)

2014 1,280,122 $53,648,632,898 $41,909 2,793.2

2013 1,280,122 53,648,632,898 41,909 2,793.2

2012 1,280,122 53,648,632,898 41,909 2,793.2

2011 1,280,122 53,648,632,898 41,909 3,168.6

2010 1,280,122 53,648,632,898 41,909 3,168.6

2009 1,393,978 46,129,519,976 33,092 3,450.4

2008 1,393,978 46,129,519,976 33,092 3,450.4

2007 1,393,978 46,129,519,976 33,092 3,450.4

2006 1,393,978 46,129,519,976 33,092 3,450.4

2005 1,393,978 46,129,519,976 33,092 3,450.4

(1) 2010-2014 U.S. Bureau of Census, 2010 Census of Population 2005-2009 U.S. Bureau of Census, 2010 Census of Population (2) Computation of per capita personal income multiplied by population (3) Ohio Job & Family Services, Office of Workforce Development

Sources: Cuyahoga County Fiscal Office

S-32 Average Unemployment Rates (3)

Cuyahoga Ohio US

5.3% 5.7% 6.2%

7.2 6.6 6.5

6.6 7.2 8.1

8.0 8.6 8.9

8.6 9.6 9.4

9.0 10.2 9.3

7.1 6.5 5.8

6.1 5.6 4.6

5.5 5.4 4.6

5.9 5.9 5.1

S-33 Cuyahoga County, Ohio Ten Largest Employers Current Year and Nine Years Ago

2014

Number of Percent of Employer Nature of Business Employees County

Cleveland Clinic Health System Health care provider 30,979 5.03% University Hospitals Health System Health care provider 12,719 2.06 U.S. Office of Personnel Management Federal government 11,939 1.94 Progressive Corporation Insurance and financial company 7,805 1.27 Cuyahoga County County government 7,544 1.22 City of Cleveland Municipal government 6,825 1.11 Metro Health System Health care provider 5,396 0.88 KeyCorp Bank holding company 4,955 0.81 Group Management Services, Inc. Professional employer organization 4,659 0.76 Cleveland Metropolitan School District Public school district 3,875 0.63

Total 96,696 15.71%

Total County Civilian Workforce (1) 615,500

2005

Number of Percent of Employer Nature of Business Employees County

Cleveland Clinic Health System Health care provider 27,755 4.23% University Hospitals Health System Health care provider 16,611 2.53 U.S. Office of Personnel Management Federal government 9,916 1.51 Cuyahoga County County government 9,142 1.39 Progressive Corporation Insurance and financial company 9,017 1.38 City of Cleveland Municipal government 8,136 1.24 Cleveland Metropolitan School District Public school district 7,472 1.14 KeyCorp Financial services 6,397 0.98 National City Corporation Financial services 6,051 0.92 MetroHealth System Health care provider 5,503 0.85

Total 106,000 16.17%

Total County Civilian Workforce (1) 655,600

(1) Ohio Job & Family Services, Office of Workforce Development

Source: Crain's Cleveland Business Book of Lists 2014

S-34 Cuyahoga County, Ohio County Government Employees Last Four Years (1)

2014 2013 2012 2011

General Government Office of the County Executive 91013 13 Communications Office 740 0 Human Resources 43 41 34 24 County Administrative Divisions 000 3 Fiscal Office 297 301 312 321 Information Technology 106 88 95 89 Public Works Facilities Management 270 286 268 302 County Sheriff 151 160 177 175 College Savings Account Program 000 0 Employee Health and Wellness 766 6 County Council 19 19 19 16 Inspector General 886 2 Internal Audit 341 0 Personnel Review Commission 432 0 Board of Elections 148 128 170 125 Board of Revision 35 47 40 20

Justice and Public Safety Law Department 19 15 10 3 Fiscal Office 00273 County Sheriff 1,014 1,023 994 995 Public Safety and Justice Services 38 42 40 48 Clerk of Courts 116 114 143 157 County Medical Examiner 79 78 74 82 Cuyahoga Support Enforcement Agency 313 302 319 341 Health and Human Services Office of Reentry 556 2 County Prosecutor 347 319 339 328 Court of Common Pleas 464 458 461 448 Domestic Relations Court 80 76 71 69 Juvenile Court 505 478 485 468 Probate Court 74 74 74 72 8th District Court of Appeals 002 6 County Law Library Resource Board 333 3 Public Defender 99 94 97 97

Development Development 10 10 9 9 Regional Collaboration 222 1 Information Technology 543 2 Office of Homeless Services 000 2 County Planning Commission 16 15 16 17 Soil and Water Conservation 899 8

Social Services Human Resources 12 11 11 10 Information Technology 38 35 0 0 Office of Health and Human Services 91112 20 Children and Family Services 779 793 788 819 Senior and Adult Services 163 158 166 208 Employment and Family Services 779 709 735 722 Cuyahoga Support Enforcement Agency 222 0 Early Childhood Invest in Children 878 8 Family and Children First Council 99910 Office of Homeless Services 554 2 Workforce Development 12 13 14 15 County Board of Developmental Disabilities 1,147 1,139 1,210 1,242 Veterans Service Commission 30 31 31 34

(continued)

S-35 Cuyahoga County, Ohio County Government Employees (continued) Last Four Years (1)

2014 2013 2012 2011

Health and Safety Public Works Facilities Management 16 11 12 13 Public Safety and Justice Services 38 42 43 38

Public Works Facilities Management 16 11 15 18 County Road and Bridge 126 129 141 161 Sanitary Engineer 117 112 114 108 County Airport 671012 Solid Waste Management District 666 6

Miscellaneous Workers Compensation Retrospective 222 2 Soldiers' and Sailors' Monument 323 3

TOTALS 7,627 7,471 7,638 7,778

Note: Employees (full and part-time) are presented at Full-time Equivalency (FTE) as of December 31. 1.0 FTE equals 2,080 hours.

(1) Information prior to 2011 is not available.

Source: Cuyahoga County Office of Budget and Management

S-36 Cuyahoga County, Ohio Capital Asset Statistics by Function/Program Last Three Years (1)

2014 2013 2012 Government Activities General Government Legislative and Executive Vehicles 10 7 7 Square footage utilization 307,573 494,381 494,381 Board of Elections voting machines 1,836 1,847 1,849 Judicial Vehicles 139 128 123 Square footage utilization 3,319,341 3,346,047 3,346,047 Public Works Number of Bridges 207 196 194 Miles of Roads 22.10 22.00 22.03 Vehicles 119 129 132 Square footage utilization 104,297 117,459 117,459 Health and Safety Vehicles 11 11 11 Square footage utilization 32,948 33,247 33,247 Social Services Vehicles 12 12 12 Square footage utilization 649,132 587,283 587,283 Community Development Vehicles 033 Square footage utilization 49,560 49,127 49,127

Business-Type Activities Sanitary Engineer Miles of sewer line operated 1,180 1,240 1,180 Force main miles operated 24 21 16 Wastewater treatment plants operated 224 Pump stations 56 51 47 Vehicles 81 74 73 Square footage utilization 55,588 55,330 55,330 County Airport Vehicles 10 9 9 Square footage utilization 250,104 250,000 250,000 Number of Hangars 75 75 94 Huntington Garage Square footage utilization 468,000 468,000 468,000

(1) Information prior to 2012 is not available.

Source: Public Works

S-37 Cuyahoga County, Ohio Operating Indicators by Function/Program Last Five Years (1)

2014 (2)2013 2012 2011 2010 Government Activities Legislative and Executive Fiscal Office Number of Dog License Registrations 69,037 71,089 77,024 78,843 N/A Number of Tax Foreclosures 1,571 1,571 1,956 2,414 2,372 Board of Elections General Election Ballots Cast on Election Day 217,203 167,333 356,093 241,632 214,994 General Election Absentee Ballots Cast 133,331 89,566 263,829 130,413 199,945 Judicial Juvenile Court Number of Youth Supervised 1,700 1,367 1,550 1,716 1,856 Average Daily Population in Secure Detention 155 144 116 129 125 Clerk of Courts Number of Civil and Domestic Cases Filed 26,000 29,038 30,734 32,769 35,523 Number of Criminal Cases Filed 11,000 12,374 12,209 13,404 14,571 Court of Common Pleas Number of Civil Cases Disposed 29,040 29,040 33,323 36,945 36,521 Number of Criminal Dispositions 13,178 13,178 14,856 15,435 16,486 Medical Examiner Number of Investigations 2,250 2,258 2,442 2,673 3,274 Probate Court Number of New Filings 12,809 12,809 13,161 11,302 11,340 Public Defender Number of Municipal Intake Cases 38,269 37,130 37,320 43,657 46,962 Prosecutor Number of Dispositions 12,000 11,533 13,020 14,099 15,003 Sheriff Average Daily Population in County Jail 2,050 2,030 2,090 2,097 2,080 Public Works Solid Waste Management District Number of Solid Waste Facility Inspections 500 568 776 1,085 1,045 Dog Warden Number of Animals Adopted 1,285 1,071 1,294 1,275 1,205 Health and Safety Dog and Kennel Alcohol Drug Addiction and Mental Health Services Number of Individuals Served 19,000 17,624 52,462 43,045 46,954 Public Safety and Justice Services Number of 9-1-1 calls received by CECOMS 760,000 758,962 756,952 800,000 795,608 Social Services Children and Family Services Adoptive Finalizations 140 132 141 159 169 Number of Children in Agency Foster Homes 218 235 726 337 380 Number of Adoption Application Submitted 118 107 108 140 450 Senior and Adult Services Number of Service Unit Hours 335,000 329,166 277,342 264,743 281,529 Veterans Service Commission Number of Veteran Families Applying for Assistance 1,020 9,785 8,816 8,643 7,543 Number of Approvals for Financial Assistance 7,275 8,095 7,865 7,361 5,963 Employment and Family Services Number of Earned Income Tax Credits Filed 4,500 8,095 7,865 7,361 5,963 Community Development Investment in Economic Development Projects $15,000,000 $13,800,982 $10,696,000 $17,520,106 $12,729,300

(continued)

S-38 Cuyahoga County, Ohio Operating Indicators by Function/Program (continued) Last Five Years (1)

2014 (2) 2013 2012 2011 2010 Business-Type Activities Sanitary Engineer Number of Feet of Sewer Lines Televised 1,750,000 1,489,817 1,676,811 1,093,915 799,000 Number of Feet of Sewer Lines Cleaned 1,780,000 1,690,945 1,688,372 1,302,340 1,745,180 Airport Number of Takeoffs and Landings 33,000 33,421 34,476 34,642 43,104

(1) Information prior to 2010 is not available. (2) Information for 2014 consists of estimates from the Cuyahoga County, Ohio 2014-2015 Budget Plan Report.

Sources: Various Cuyahoga County Departments

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APPENDIX D COMPARATIVE CASH BASIS SUMMARY OF GENERAL FUND RECEIPTS AND EXPENDITURES (UNAUDITED) FOR FISCAL YEARS 2010 THROUGH 2015 (000’s)

2010 2011 2012 2013 2014 2015*

Cash balance at January 1 212,609 149,382 178,522 183,385 187,413 200,113

Encumbrances and Preencumbrances Other (15,654) -- (8,145) cash adjustments 3,867 Total adjusted cash balance 200,822 149,382 170,377 183,385 187,413 200,113

Receipts (by source) Property taxes (a) 22,413 14,184 14,818 13,923 13,996 14,191 Sales and use tax (b) 204,063 216,589 226,787 237,307 246,767 259,352 Other tax (c) 5 2,472 3,235 3,842 15,230 14,674 State local government assistance funds (d) 33,544 33,704 22,990 17,367 17,186 18,307 Licenses and permits 89 55 55 92 75 57 Charges for services (e) 45,502 43,989 53,155 56,760 61,047 59,136 Fines and forfeitures 10,984 9,598 9,320 9,297 10,559 10,111 Investment Earnings (f) 18,040 12,526 6,638 -- 447 4,090 Other intergovernmental 17,164 12,788 13,448 12,160 13,854 14,933 Miscellaneous (g) 17,781 10,618 5,340 7,364 13,510 7,972

Total Receipts 369,585 356,523 355,786 358,112 392,671 402,823

Expenditures (by program) General Government (h) 57,768 42,017 47,749 55,761 54,608 67,128 Justice & Public Safety (i) 230,272 219,893 233,355 223,480 236,186 263,140 Development (l) 3,570 3,380 3,699 3,648 2,734 3,443 Social Services 6,294 6,263 7,067 6,883 9,972 6,926 Home & Safety 352 158 752 562 378 584 Miscellaneous (j) 128,558 29,338 15,068 12,860 20,467 10,086

Total Expenditures (k) 426,814 301,049 307,690 303,194 324,346 351,307

Excess of Revenues Over Expenditures (57,229) 55,474 48,096 54,918 68,325 51,516

Other Financing Sources (Uses) Operating transfers in Other financing uses (5,998) (26,334) (43,233) (50,890) (55,625) (56,772) Total Other Sources (Uses) (1) (5,998) (26,334) (43,233) (50,890) (55,625) (56,772)

Cash Balance at December 31 149,382 178,522 183,385 187,413 200,113 194,857

Net change in Fund Balance (63,227) 29,140 4,863 4,028 12,700 (5,256)

Adjusted Cash Balance Encumbrances and preencumbrances (m) (40,738) (8,145) (12,203) (11,365) (22,391) (10,213) Other cash adjustment (1,560) ------Total adjusted cash balance (n) 107,084 170,377 171,182 176,048 177,722 184,644

(a) Receipts from property taxes within the ten-mill limitation levied for the General Fund. The rates levied for this purpose were 0.90 in 2010, 0.58 in 2011, and 0.60 in each of 2012, 2013 and 2014. (b) Sales Tax includes collections from additional 0.25% increase that was effective October 1, 2007. Collections were $40,666,195 in 2010, $43,192,730 in 2011, $45,352,598 in 2012, $47,437,063 in 2013 and $49,343,489 in 2014. (c) Other taxes include the collections from a 1% bed tax levied to support operations of the Global Center. Collections on a 1% tax on lodging that was enacted in November of 2010 total $2,215,716 in 2011, $3,234,851 in 2012, $3,770,325 in 2013 and $4,386,205 in 2014. 2014 includes Gateway excise taxes of $10.8 million. (d) Local Government >Fund allocation was reduced by 50% as enacted by the State 2012-2013 biennial budget (HB153).

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(e) Includes all receipts (4 mills) from the County’s real property transfer tax and fee as well as other charges for services collected by County. (f) Investment earnings are impacted by historically low interest rates and, in 2013, were recorded as zero due to the full amortization of purchase premium at the time of disposition of certain investments. (g) 2010 revenue included one-time sources of $9.6 million from legal settlement and restitution payments related to federal corruption investigation prosecutions. (h) Increase in 2013 General Government expenditures is attributable to the consolidation of the County’s Information Technology budget to the General Fund. (i) 2010 Development expenditures and other uses include the transfer of cash reserves to fund the Global Center project in December 2010. The General Fund contribution to fund the annual debt service and operating payments for the project are included in the 2011 and 2012 other uses and Development expenditures. (j) 2010 includes one-time transfers of approximately $117.9 million to project fund for the Global Center. (k) The decrease in total expenditures in 2011 is due to lower than average contract payment activity and from the impact of various cost saving measures implemented in the approved 2011 operating budget. The 2013 total expenditures include the one-time utilization of cash reserves for planned investments ($5.5 million) and the addition of Health and Human Services Justice program budgets to the General Fund ($4.1 million). (l) Other sources include General Fund subsidies to other County operating funds and the General Fund contribution to debt service for nontax revenue bonds. (m) The following amounts were reserved for encumbrances as of December 31 in each of the years enumerated: $15,654,200 in 2009; $40,738,000 in 2010; $8,145,000 in 2011; $12,203,000 in 2012; $11,365,000 in 2013 and $29,391,000 in 2014 were reserved for encumbrances and reserves as of December 31, 2014. (n) Adjusted cash balance incorporates adjustments included in the Schedule of Revenues, Expenditures and Changes in Fund Balances -- Budget Actual General Fund (Non GAAP Basis) included in the Basic Financial Statements of the County. In 2011 beginning cash balance was restated to include reserves from other County funds t hat are classified as General Fund pursuant to GASB Statement No. 54.

*Projected

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APPENDIX E PROPOSED TEXT OF BOND COUNSEL OPINION

We have served as bond counsel to our client the County of Cuyahoga, Ohio (the “County”), and not as counsel to any other person in connection with the issuance by the County of its $______Sales Tax Revenue Bonds, Series 2015A (Public Square Project) (the “Series 2015A Bonds”), dated the date of this letter. The Series 2015A Bonds are issued pursuant to the Trust Indenture dated as of December 1, 2014 (the “Trust Indenture”) by and between the County and The Huntington National Bank, as trustee (the “Trustee”), as supplemented by Supplemental Trust Indenture No. 2, dated as of ______, 2015, by and between the Issuer and the Trustee (“Supplemental Indenture No. 2”, and together with the Trust Indenture, the “Indenture”).

In our capacity as bond counsel, we have examined the transcript of proceedings relating to the issuance of the Series 2015A Bonds, a copy of the signed and authenticated Series 2015A Bond of the first maturity, the Indenture and such other documents, matters and law as we deem necessary to render the opinions set forth in this letter.

Based on that examination and subject to the limitations stated below, we are of the opinion that under existing law:

1. The Series 2015A Bonds and the Indenture are valid and binding obligations of the County enforceable in accordance with their respective terms.

2. The Series 2015A Bonds constitute special obligations of the County, and the principal of and interest (collectively, “debt service”) on the Series 2015A Bonds, together with debt service on the bonds of each other series issued and outstanding, from time to time, under the Trust Indenture (collectively, the “Bonds”), are payable solely from the Pledged Revenues and the Pledged Funds established under the Trust Indenture, all as defined and described in the Trust Indenture. The Bonds are secured by a pledge of and a lien on the Pledged Revenues (as defined in the Trust Indenture) and by the Indenture. The Bonds and the payment of debt service on the Bonds are not secured by an obligation or pledge of any money raised by taxation, and the Bonds do not represent or constitute a general obligation debt of the County or a pledge of the faith and credit of the County, the State of Ohio or any of its political subdivisions.

3. Interest on the Series 2015A Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, portions of the interest on the Series 2015A Bonds earned by certain corporations may be subject to a corporate alternative minimum tax. Interest on, and any profit made on the sale, exchange or other disposition of, the Series 2015A Bonds are exempt from all Ohio state and local taxation, except the estate tax, the domestic insurance company tax, the dealers in intangibles tax, the tax levied on the basis of the total equity capital of financial institutions, and the net worth base of the corporate franchise tax. We express no opinion as to any other tax consequences regarding the Series 2015A Bonds.

The opinions stated above are based on an analysis of existing laws, regulations, rulings and court decisions and cover certain matters not directly addressed by such authorities. In rendering all such opinions we assume, without independent verification, and rely upon (i) the accuracy of the factual matters represented, warranted or certified in the proceedings and documents we have examined, (ii) the

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due and legal authorization, execution and delivery of those documents by, and the valid, binding and enforceable nature of those documents upon, any parties other than the County, and (iii) the due authorization, signing and delivery by, and the binding effect upon and enforceability against, the Trustee of the Indenture.

In rendering those opinions with respect to the treatment of the interest on the Series 2015A Bonds under the federal tax laws, we further assume and rely upon compliance with the covenants in the proceedings and documents we have examined, including those of the County. Failure to comply with certain of those covenants subsequent to issuance of the Series 2015A Bonds may cause interest on the Series 2015A Bonds to be included in gross income for federal income tax purposes retroactively to their date of issuance.

The rights of the owners of the Series 2015A Bonds and the enforceability of the Series 2015A Bonds and the Indenture are subject to bankruptcy, insolvency, arrangement, fraudulent conveyance or transfer, reorganization, moratorium and other laws relating to or affecting creditors’ rights, to the application of equitable principles, to the exercise of judicial discretion, and to limitations on legal remedies against public entities.

The opinions rendered in this letter are stated only as of this date, and no other opinion shall be implied or inferred as a result of anything contained in or omitted from this letter. Our engagement as bond counsel with respect to the Series 2015A Bonds has concluded on this date.

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APPENDIX F

(1 of 2)

$9,180,000 County of Cuyahoga, Ohio Sales Tax Revenue Bonds, Series 2015A (Public Square Project) (Special Obligations)

CLOSING CERTIFICATE

To: Stifel, Nicolaus & Company, Incorporated

It is my understanding that, in considering whether to purchase the above captioned issue, you have relied on the Official Statement for such issue dated December 4, 2015 (the "Official Statement"), which Official Statement was prepared and executed by and for the County of Cuyahoga, Ohio (the "County") under the direction of the County Council of the County.

In connection with your reliance as stated above, I hereby certify that:

1. I have reviewed the Official Statement and have made such investigation and inquiries as I deemed necessary in the circumstances;

2. The statements and information contained in the Official Statement are correct and complete in all material respects, and they do not omit any statement or information necessary in order to make the statements and information therein, in light of the circumstances under which they were made, not misleading or incomplete in any material respect; and

3. To the best of my knowledge, since the date of the Official Statement, nothing has occurred which has caused, or which might reasonably be expected to cause, a material adverse change in the condition or prospects of the County.

Date: December 14, 2015 ______County Executive County of Cuyahoga, Ohio

County Fiscal Officer County of Cuyahoga, Ohio

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APPENDIX F

(2 of 2)

$9,180,000 County of Cuyahoga, Ohio Sales Tax Revenue Bonds, Series 2015A (Public Square Project) (Special Obligations)

CLOSING CERTIFICATE

To: Stifel, Nicolaus & Company, Incorporated

In connection with your reliance as stated above, I hereby certify that:

1. I have reviewed the section of the Official Statement captioned "LITIGATION" and have made such investigation and inquiries as I deemed necessary in the circumstances;

2. The statements and information contained in the section of the Official Statement captioned "LITIGATION" are correct and complete in all material respects, and they do not omit any statement or information necessary in order to make the statements and information therein, in light of the circumstances under which they were made, not misleading or incomplete in any material respect; and

Date: December 14, 2015

Director of Law County of Cuyahoga, Ohio

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APPENDIX G

$9,180,000 County of Cuyahoga, Ohio Sales Tax Revenue Bonds, Series 2015A (Public Square Project) (Special Obligations)

CONTINUING DISCLOSURE CERTIFICATE

This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the County Fiscal Officer of Cuyahoga County, Ohio (the "County") pursuant to the resolutions of the County Council of the County authorizing the issuance and sale of the above-captioned obligations (the "Series 2015A Bonds"). The County covenants and agrees as follows:

Section 1. Definitions. The following capitalized terms shall have the following meanings:

"Annual Report" means any Annual Report provided by the County referred to in the Official Statement and any appendix hereto.

"EMMA" shall mean the Electronic Municipal Market Access system of the MSRB for use in the collection and dissemination of information, which system the SEC has stated to be consistent with its Rule 15c2-12. Currently, the following is the website address for EMMA: emma.msrb.org.

"Fiscal Year" shall mean the 12-month period beginning on January 1 of each year or such other 12-month period as the County shall adopt as its fiscal year.

"Listed Events" shall mean any of the events listed in Section 5 of this Disclosure Certificate.

"MSRB" shall mean the Municipal Securities Rulemaking Board, located at:

1150 18th Street, NW, Suite 400 Washington, D.C. 20036-3816 Phone: (202) 223-9347 Fax: (202) 872-0347 Internet: www.msrb.org

"Official Statement" shall mean the Official Statement prepared in connection with the sale of the Series 2015A Bonds.

"Participating Underwriter" shall mean the original underwriter of the Series 2015A Bonds required to comply with the Rule in connection with the offering of the Series 2015A Bonds.

"Rule" shall mean Rule 15c2-12(b)(5) adopted by the United States Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934, as the same may be amended from time to time.

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Section 2. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the County for the benefit of the holders and beneficial owners of the Series 2015A Bonds and in order to assist the Participating Underwriter in complying with the Rule.

Section 3. Provision of Annual Reports.

(a) The County shall, not later than the September 30 following the completion of the County's Fiscal Year, commencing September 30, 2016, provide to the MSRB in an electronic format as prescribed by the MSRB an Annual Report for the fiscal year of the County which ended on the previous December 31, which Annual Report shall be consistent with the requirements of Section 4 of this Disclosure Certificate. The County shall furnish an Annual Report to any person requesting the same. Requests for Annual Reports shall be made to: Dennis G. Kennedy, County Fiscal Officer, County of Cuyahoga, Ohio, 2079 East 9th St., Cleveland, Ohio 43040, Telephone: (216) 443-8191.

(b) If the County fails to provide an Annual Report to the MSRB by the date set forth in subsection (a) of this Section 3, the County shall send in a timely manner to the MSRB notice of such failure, which shall include a statement as to the date by which the County anticipates that the Annual Report will be provided to the MSRB.

Section 4. Contents of the Annual Report.

(a) The Annual Report shall contain or incorporate by reference the following:

(1) Basic Financial Statements of the County; (2) Updates of the table entitled "Ad Valorem Property Tax Collections and Delinquencies" contained under the caption "COUNTY TAX BASE – Collection of Ad Valorem Taxes and Special Assessments" in APPENDIX B; (3) Updates of the section entitled “Assessed Valuation” and "Largest Assessed Values" contained under the caption "COUNTY TAX BASE" in APPENDIX B; and (4) Updates of the tables contained under the caption "OTHER MAJOR COUNTY GENERAL FUND REVENUE SOURCES in APPENDIX B. (5) Updates of Debt Tables A, B and C in APPENDIX B. (6) Updates of the information in APPENDIX D. All or any of the items listed above may be incorporated by specific reference from other documents which have previously been provided to the MSRB or to the Securities and Exchange Commission. If the document incorporated by reference is a final official statement, it must be available from the MSRB. If this County prepares a Comprehensive Annual Financial Report ("CAFR") that includes each of the items listed above, the County may designate the CAFR as the Annual Report.

(b) The Basic Financial Statements of the County to be included in the Annual Report shall be initially prepared in accordance with generally accepted accounting principles and shall be accompanied by a report of the Auditor of the State of Ohio, or, if applicable, the independent certified public accountants who audited the financial statements; provided, however, if such report is not available to the County at the time of providing the Annual Report to the MSRB as provided in Section 3 of this Disclosure Certificate, the County

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will provide such report to the MSRB as provided in Section 3 of this Disclosure Certificate as soon as it is available.

Section 5. Reporting Specified Events. The County shall provide to the MSRB in a timely manner not in excess of ten business days after the occurrence of the event notice of any of the following events with respect to the Series 2015A Bonds:

(a) Principal and interest payment delinquencies;

(b) Non-payment related defaults;

(d) Unscheduled draws on credit enhancements reflecting financial difficulties;

(e) Substitution of credit or liquidity providers, or their failure to perform;

(f) 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 Series 2015A Bonds, or other material events affecting the tax status of the Series 2015A Bonds;

(g) Modifications to rights of holders of the Series 2015A Bonds, if material;

(h) (1) Calls for redemption of the Series 2015A Bonds, if material, other than calls pursuant to the mandatory sinking fund provisions of the Series 2015A Bonds, if any, and (2) tender offers;

(i) Defeasances;

(j) Release, substitution or sale of property securing repayment of the Series 2015A Bonds, if material;

(k) Rating changes;

(l) Bankruptcy, insolvency, receivership or similar event of the County;

(m) The consummation of a merger, consolidation, or acquisition involving the County or the sale of all or substantially all of the assets of the County, 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

(n) Appointment of a successor or additional trustee or the change of name of a trustee, if material

For the purposes of subsection (l), above, the event is considered to occur when any of the following occurs: the appointment of a receiver, fiscal agent or similar officer for the County in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all

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of the assets or business of the County, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the County.

Section 6. Means of Reporting Information. The County shall provide information to the MSRB's EMMA disclosure service as prescribed by the MSRB. As of the date hereof, submissions must be by electronic submission in an electronic portable document format ("PDF") that shall have a word- search function permitting a user to search the document.

The County is authorized to transmit information to the MSRB by whatever means are mutually acceptable to the County and the MSRB.

Section 7. Termination of Reporting Obligation. The County's obligation under this Disclosure Certificate shall terminate upon the defeasance, redemption or payment in full of all of the Series 2015A Bonds.

Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the County may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if the County has received an opinion of counsel knowledgeable in federal securities laws to the effect that such amendment or waiver would not, in and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had been effective on the date hereof but taking into account any subsequent change in or official interpretation of the Rule.

Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the County from disseminating any other information (using the means of dissemination set forth in this Disclosure Certificate or any other means of communication) or including any other information in any Annual Report or providing notice of occurrence of events, in addition to that which is required by this Disclosure Certificate. If the County chooses to include any information in an Annual Report or provide notice of occurrence of events which are not Listed Events in addition to that which is specifically required by this Disclosure Certificate, the County shall have no obligation to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

Section 10. Default; Remedies. Failure of the County to perform any of its undertakings contained in this Disclosure Certificate shall not constitute an event of default with respect to the Series 2015A Bonds. The exclusive remedy for any such failure shall be enforcement of the County's obligations to so perform by actions or proceedings taken in accordance with Revised Code Section 133.25(B)(4)(b) or Section 133.25(C)(1).

Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the County, the Participating Underwriter and the holders of the Series 2015A Bonds, and shall create no rights in any other person or entity.

Date: ______, 2015 COUNTY OF CUYAHOGA, OHIO

By: Title: County Fiscal Officer

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