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I CITY OF PITTSBURGH PENNSYLVANIA ·1 I I I I I I I I I Comprehensive Annual Financial Repon I FOR THE YEAR ENDED DECEMBER 31, 1991 I I I I TOM FLAHERTY CITY CONTROLLER I I- -r I I I I I I I I I I I I I I I I I I • I CITY OF PITTSBURGH, I PENNSYLVANIA I I I, COMPREHENSIVE ANNUAL FINANCIAL REPORT I I I 'I I I I FOR THE FISCAL YEAR ENDED I DECEMBER 31, 1991 I I TOM FLAHERTY, CONTROLLER I I I W J I I I I I I I 1\ I I I I I I I I I I CITY OF PITTSBURGH, PENNSYLVANIA comprehensive Annual Financial Report I Year Ended December 31, 1991 I TABLE OF CONTENTS Page I INTRODUCTORY SECTION: Letter of Transmittal I - 1 City Officials I - 18 Ii Table of Organization I- 19 FINANCIAL SECTION: I Independent Auditors' Report General Purpose Financial Statements (Combined Statements): Combined Balance Sheet - All Fund Types and Account Group 1 Combined Statement of Revenues, Expenditures and Changes I in Fund Balances - All Governmental Fund Types and Expendable Trust Funds S Combined Schedule of Revenues, Expenditures and Changes I in Fund Balances - Budget and Actual Data on the BUdgetary Basis - General Fund 9 Combined Statement of Revenues, Expenses and Changes in Accumulated Deficit/Fund Balances - Enterprise I and Pension Trust Funds 11 Ii Combined Statement of Cash Flow. - Enterpri.e Fund. 13 Hote. to General Purpose Financial Stat_nts lS I 1. SWIIIlary of Significant Accounting Policies 15 A. Determination of Reporting Entity 15 B. Fund Accounting Structure 23 e. Measurement Focus 24 r D. Basis of Accounting 25 E. Budgetary Data 26 F. cash and cash Equivalents 27 r G. Investments 28 B. Inventories 28 I. other Assets 28 I J. Fixed As.ets 28 It. Enterprise Fund Bond Discount and Issue COsts 29 L. Compensated Absences 29 M. Pensions 30 I H. Deferred Compensation Plan 30 o. Self-Insurance Arrangements 31 P. Enterprise Fund Operating Transfer. 31 I Q. comparative Data 32 R. 'l'otal COlumns on Combined Statements 32 I i I I CITY OF PITTSBURGH, PENNSYLVANIA I TABLE OF CONTENTS, Continued I Page Rotes to General PurPOse Financial Statements (COntinued) I 2. Reconciliation of Generally Accepted Accounting principles (GAAP) Basis to Budgetary Basis 33 3. Cash and Investments 34 I A. Governmental Funds, Expendable Trust Funds and Agency Funds 35 I B. Equipment Leasing Authority 36 C. Enterprise Funds 36 D. Pension Trust 37 I E. Deferred Compensation Plan 37 4. Receivable from PWSA 39 I 5. Trusteed and Restricted Funds 40 6. Real Estate Taxes 41 I 7. Property, Plant and EquipDent 41 I 8. Pen.ion Plans 42 9. other Po.t-.ployment Ben.fit. 50 :1 10. Long-T.rm Debt 51 A. COuncil and Public El.ction General Obligation Bond. 57 I B. Equipaent Lea.ing Authority 57 C. Auditorium Authority 58 (I . D. Stadium Authority 59 E. W.t.r and Sewer Authority 60 P. c.pit.l Le••• Oblig.tion. 64 G. oth.r Long-T.rm Oblig.tion. 65 B. D.f.rr.d Loan 65 1 11. Oper.ting Le•••• 65 I 12. Int.rfund Rec.ivabl. and P.yabl. B.lanc•• 67 13. Equity Tran.f.r. Between Fund. 67 I 14. COntribut.d capit.l 68 I 15. S.gment Information for Ent.rpri.e Pund. 68 16. Fund D.ficit. 68 I 17. Rel.t.d Party Tr.n••ction. 69 18. St.dium Man.gement Agreement 70 I ii I I CITY OF PITTSBURGH, PEHHSYLVANIA I TABLE OF COH'l'EN'l'S, Continued I FINANCIAL SECTION: Trust and Agency Funds: I Combining Balance Sheet 121 Pension Trust Punds: I Combining Statement of Revenues, Expenses and Changes in Fund Balances 123 Expendable Trust Pund.: I Combining Statement of Revenues, Expenditures and Changes in Fund Balances 125 I Gifts and Donations Trust Fund: Balance Sheet 127 Statement of Revenues, Expenditures and Changes in I Pund Balance 128 Workers' Compensation Irrevocable Trust Pund: Balance Sheet 129 I Statement of Revenues, Expenditures and Changes in Pund Balance 130 I Parks Endowments Tru.t Pund: Balance Sh_t 131 Statement of Revenue., Expenditure. and Changes in I Pund Balance 132 Meter In.tallation Program Tru.t Pund: Balance Sh_t 133 I Statement of Revenues, Expenditure. and Changes in Pund Balance 134 I' Retir_nt Benefit. Tru.t Pund: Balance Sh_t 135 Stat_nt of Revenue., Expenditure. and Change. in I Punci Balance 136 Agency Pund.: Combining Balance Sheet 137 I Combining Statement of Changes in As.et. and Liabilities 139 General Long-Tez:m Debt Account Group: I Statement of General Long-Tez:m Debt 144 I I v I CITY OF PITTSBURGH, ~ENHSYLVANIA I TABLE OF CON'l'EN'l'S, COntinued I STATISTICAL SECTION: I General Fund Revenues and other Financing Sources by Source ­ Last Ten Fiscal Years 145 General Fund Expenditures and Operating Transfers by Function ­ I Last Ten Fiscal Years 147 Assessed Value, Tax Rates, Levy and COllections Last Ten Fiscal Years 149 I Property Tax Rates - All Overlapping Governments ­ Last Ten Fiscal Years 151 Schedule of Bonds payable 152 I Net Debt and Remaining Debt Incurring Margin 168 Percent of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years 170 , Computation of Direct and Overlapping Debt 172 City Employment - Last Ten Fiscal Years 173 Principal Real Estate Taxpayers 174 Schedule of Insurance in Force 175 I Salaries and Surety Bonds of Principal Officials 176 Territorial Growth of Pittsburgh 177 I I I I I I I vi I I I I I I I I I I I INTRODUCTORY I SECTION I I I I I I I I I I I I I I I I I I I I -I I I I I I I I I I I I I I I I I . LETTER OF· I TRANSMITTAL I I I I I I I I I I . I I I I I I I I I I I I I I I I I I I I I I I I OFFICE OF THE CITY CONTROLLER 412·255·2055 TOM FLAHERTY, CONTROLLER FAX 412·255-2958 I I May I, 1992 I The Honorable Mayor, Members of I City Council, and the Citizens of the City ofPittsburgh. Pel1DS}'lV811iJJ : I I am pleased to submit the Comprehensive Annual Financial Report of the City of I Pittsburgh for the year ended December 31, 1991. We believe that the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of I operations of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities, other than fixed assets, have been included. Responsibility for both the accuracy of data, and the completeness and I fairness of the presentation, including all disclosures, rests with the management of II the City. INTRODUCfION The Comprehensive Annual Financial Report (CAFR) is presented in three sectiODS: I Introductory, Financial and Statistical. The Introductory Section includes this letter, the City's organization chart, and a list of principal officials. The Financial Section I consists of the independent certified public accountants' report, the general PurPOSe financial statements, with the related notes, and the combining and individual fund and account group financial statements and schedules. The Statistical Section I includes financial and other pertinent data, generally presented on a multi-year basis. I. I I 1-1 I BCONOMIC CONDmON AND OUTLOOK I The City of Pittsburgh is located in the southwestern part of the Commonwealth I forming the Golden Triangle where the Allegheny and Monongahela Rivers meet to create the Ohio River. The City. which is the largest of 130 municipalities in Allegheny County serves as the County Seat and covers an area of 55.5 square miles I and has a 1990 Census population of approximately 370.000. I Bco1101Dic Backgrourzd: The abundant water resources fostered a strong industrial based economy that has been the strength of Pittsburgh's past. Steel and heavy manufacturing dominated our economy and the successes of those industries were the I prime economic indicators. Steel and heavy manufacturing. while still present in our economy. no longer dictate I our economic future. In keeping with national trends. Pittsburgh has successfully shifted from an industrial to a diversified economy. This diversity is the streDgth of Pittsburgh's future. I Our Prest:Dt EcoDomy: Today. Pittsburgh is the home of leading service industries I such as high-technology. health. research. education. and finance. In addition to a sound economy. other factors such as reasonably priced housiDg. relatively low crime. and excellent cultural and recreational opportunities explain why eleven Fortune 500 I companies are headquartered in Pittsburgh. BcoDomic StIltistics : Unemployment in the Pittsburgh Primary Metropolitan I Statistical Area (PMSA) was 6.0CIJ in 1991 compared to the national average of 6.71f,. Retail sales grew by an estimated 21f, during 1991. while housing starts increased by 7.51f, for the year. Local economists are forecasting percentage I increases for these indicators in 1992. BcoDomic Outlook: Pittsburgh's economy has performed in essentially the same I manner as the national economy and is expected to keep pace with the rest of the country in its economic recovery. Unemployment is not expected to increase but rather hold steady in 1992 Ovcran. forecasts call for moderate economic growth in I 1992 Taken as a whole, the sum of all the major public/private initiatives described below I suggests a stable and growth oriented local economy.