Soldiers and Sailors Memorial Hall Pittsburgh, Allegheny County’s Largest City Boyce Park About Allegheny County llegheny County is the second largest county by population in Pennsylvania, and the City of Pittsburgh is the most populous city in the County. Prior to January 3, 2000, the County was governed by a three-person Board of County Commissioners. On January 3, 2000, the County transitioned to a Home Rule Charter, and the Commissioner form of government was replaced with an elected Chief Executive, a 15-member County Council and an appointed Manager. This was intended to effectuate Aa more effective, efficient and accountable form of County government. > 13 districts, each with approximately 102,000 residents > 130 municipalities > 731 square miles List of Elected Officials Rich Fitzgerald, Allegheny County Executive Chelsa Wagner, Allegheny County Controller John Weinstein, Allegheny County Treasurer William Mullen, Allegheny County Sheriff Stephen Zappala, Allegheny County District Attorney Allegheny County Council President, Council At-Large: John DeFazio Council District 7: Nicholas Futules, Vice President Council At-Large: Heather Heidelbaugh Council District 8: Dr. Charles Martoni Council District 1: Thomas Baker Council District 9: Robert J. Macey Council District 2: Jan Rea Council District 10: William Russell Robinson Council District 3: Edward Kress Council District 11: Barbara Daly Danko Council District 4: Michael J. Finnerty Council District 12: James Ellenbogen Council District 5: Sue Means Council District 13: Amanda Green Hawkins Council District 6: John F. Palmiere In This Report 2 I A Message from the Controller 10 I Where Does Your Money Go? 3, 4 I Allegheny County Economic Highlights 11 I How Much Money Does the County Have? 5 I Allegheny County Highlights 12 I Capital Projects 6 I Challenges We Face 13 I Transportation Fund 7 I What Does Allegheny County Do? 14 I Increasing Obligations 8 I Key Operations 9 I Where Does the Money Come From? To review CAFR online: Cover Photos – From left to right, North Park Boathouse, and Courtesy of alleghenycontroller.com VisitPittsburgh: PNC Park, Kennywood and the National Aviary 2014 I PAFR Allegheny County -VisitPittsburghRound Hill Park Boaters Enjoying Scenic Pittsburgh–VisitPittsburgh Benedum Center–VisitPittsburgh Allegheny County Courthouse–VisitPittsburgh Round Hill Park A Message from the Controller Dear Taxpayers, s Controller, I’m pleased to present to you this Popular Annual Financial Report (PAFR) for the year ended December 31, 2014. This report is a digestible reflection of Allegheny County’s Comprehensive Annual Financial Report (CAFR) and is meant to provide an interesting and Ainformative overview of the County’s financial status and operations. While Allegheny County’s financial status has improved, there remains long-term, structural challenges that must be dealt with through foresight and planning. Many factors come together to ensure that the County operates efficiently and effectively, as demonstrated herein. The financial information provided in this report is further expanded upon in the County’s 2014 CAFR, which are independently audited financial statements prepared in accordance with generally accepted accounting principles. We are proud to say that the County’s Controller’s Office has been awarded a Certificate of Achievement for Excellence in Financial Reporting annually for its CAFR for the past 32 years. County government provides many services that affect each of us daily. I hope this user-friendly report helps you gain a greater understanding of the County’s financial status and operations, its recent successes and current challenges, and how Allegheny County works for you. Kindest regards, Chelsa Wagner Allegheny County Controller 2 Biking on North Shore–VisitPittsburgh Southside Trail–VisitPittsburgh Pittsburgh Zoo and PPG Aquarium–VisitPittsburgh Shadyside Neighborhood–VisitPittsburgh Allegheny County Economic Highlights llegheny County is a great, attractive and affordable place to live and work. As shown below, Allegheny County has a lower cost of living compared to both National and State averages. Elements impacting the favorable cost of living are housing and healthcare costs. The County Acontinues to experience unemployment and poverty rates also below these averages. Census Info Livability (source: current U.S. Census) • Between 2009-2013, 65.5% of Allegheny County • 1.2 million residents in the greater Pittsburgh area residents owned their own homes • 141,734 married couples without children (source: current U.S. Census). • 82,849 married couples with children under the age of 18 • The median home cost in Allegheny County is $122,400 • 8,044 single fathers (source: current U.S. Census). Home appreciation over the • 32,286 single mothers last year was 1.6%. Over the last five years, housing • 184,952 live alone values have appreciated by 10.4% Demographics (source: “Sperling’s Best Places,” www.bestplaces.net). (source: current U.S. Census) • The average age of a home in Allegheny County is • Residents under 18: 20% 58 years old • Residents 65 and older: 17% (source: “Sperling’s Best Places,” www.bestplaces.net). • Largest number of residents fall into the 25-34 range • Median age: 41 Median Housing Cost • Females: 52%, Males: 48% Median Housing Cost Cost of Living National Average (source: “Sperling’s Best Places,” www.bestplaces.net) • Our Region’s overall cost of living is 9.2% lower than the Pennsylvania U.S. average. Allegheny County Cost of Living Comparability $50,000 $100,000 $150,000 $200,000 Cost of Living Comparability Median Housing Price Housing Healthcare Overall Cost of Living 50% 60% 70% 80% 90% 100% National Average Pennsylvania Allegheny County Unemployment Rates Highland Park Neighborhood in Pittsburgh 2014 I PAFR 3 National Average Allegheny County Pennsylvania Allegheny County 0 0 .01 0.02 0.03 0.40 0.05 0.06 0.07 0.08 December 2014 December 2013 Oakland-Squirrel Hill-PAT Transit–VisitPittsburgh PNC Park Homestead Carnegie Science Center–North Shore • Allegheny County is a very attractive Allegheny County is a vibrant place • University of Pittsburgh Medical Center area for young people, as its largest for employers. The County is not only • Highmark Health • United States Government number of residents are between home to major healthcare providers, • Commonwealth of Pennsylvania 25 and 34 years old. This, coupled banks, universities, retail and manu- • University of Pittsburgh with the fact that home ownership facturing concerns, but also to many • Giant Eagle Inc. rates are high (65.5%) and median start-up employers. The 10 largest • BNY Mellon home prices are relatively low Allegheny County employers, per • Allegheny County ($122,400) – as compared to other the Pittsburgh Business Times, • Walmart Stores Inc. areas, such as San Francisco where “2015 Book of Lists” are: • Westinghouse Electric Company median home prices are $1 million – makes Allegheny County all the more alluring to postgraduate students and Unemployment Rate/Jobs/Wages young professionals. • As jobs continue to flourish in our Region, the unemployment rate continues to decrease. Cost of Living Comparability • Healthcare is not only offered by In December 2014, the Pittsburgh region had Cost of Living Comparability numerous providers, but it is also 12,600 more jobs than it had in December 2013 offered at a rate that is 7% lower (source: HousingState Department of Labor and Industry). than that of the national average. Housing Allegheny County registered a 4.1% unemployment During a time when healthcare is Healthcare rate forHealthcare 2014, a decrease of 1.1% from the previous truly an issue of national crisis and year,Overall Costand of living.7% less than Pennsylvania’s unemployment concern, this can be a big draw to rateOverall Costfor of 2014 living and 1.5 % less than the nation’s young people who are looking to begin or maintain a family. percentage (source:0 20 U.S. D epartment40 60 of Labor, 80 100 120 0 20 40 60 80 100 120 National Average Pennsylvania Allegheny County Bureau of LaborNational Statistics). Average Pennsylvania Allegheny County • 13% of local residents live below the poverty level • The median household income in (source: current U.S. Census).Unemployment Rates the Region is $51,366 (2009-2013), which is a slight increase from UnemploymentUnemployment RatesRate 2008-2012 ($50,664) (source: current U.S. Census). National Average National Average PPennsylvennsylvaniaania Allegheny County Allegheny County 0 1% 2% 3% 4% 5% 6% 7% 8% 0 0 .01 0.02 0.03 0.40 0.05 0.06 0.07 0.08 DecemberDecember 2014 2014 December December 2013 2013 Poverty Rate PovertyPoverty Rate Rate 16% 0.16 15.5% 0.155 15% 0.15 14.5% 0.145 14% 13.5%0.14 13%0.135 12.5%0.13 12%0.125 11.5%0.12 0.115 Allegheny County Pennsylvania National Average Allegheny County Pennsylvania National Average 2014 I PAFR Settlers Cabin Wavepool Allegheny County 4 CCAC Allegheny Campus–North Shore City County Building Northside Mexican War Streets–VisitPittsburgh Allegheny County Highlights Fund Balance is Above Rating Agency General Fund Provides Local Matching Recommended Threshold Funds to Draw State and Federal Funds for Critical Programs • 2014’s total general fund balance is $60 million of which $38 million is unassigned. The unassigned fund • The County must also provide local matching funds balance represents 5.4% of the County’s 2014 general and cover deficits when funding is insufficient for state- fund revenues. Rating agencies recommend an mandated