2010 COUNTY OF ALLEGHENY PENNSYLVANIA

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					2010 COUNTY OF ALLEGHENY
       PENNSYLVANIA
 Comprehensive Annual Financial Report


                    For the Fiscal Year Ended
                          December 31, 2010




PREPARED BY MARK PATRICK FLAHERTY, CONTROLLER
                        COUNTY OF ALLEGHENY, PENNSYLVANIA
                        Comprehensive Annual Financial Report
                           Year Ended December 31, 2010


                                       TABLE OF CONTENTS


                                   INTRODUCTORY SECTION

Controller's Letter of Transmittal... .................................................................... 1
GFOA Certificate of Achievement ....................................................................... 17
Organizational Chart ......................................................................................... 19
Officials of Allegheny County ............................................................................. 21


                                       FINANCIAL SECTION

Independent Auditor’s Report............................................................................ 25
Management’s Discussion and Analysis. ............................................................. 29

Basic Financial Statements:

    Government-wide Financial Statements
       Statement of Net Assets. ......................................................................... 53
       Statement of Activities. ........................................................................... 56
    Governmental Fund Financial Statements
       Balance Sheet......................................................................................... 58
       Reconciliation of the Governmental Funds - Balance Sheet
            to the Statement of Net Assets .......................................................... 63
       Statement of Revenues, Expenditures and Changes in
           Fund Balance ..................................................................................... 64
       Reconciliation of the Statement of Revenues,
           Expenditures and Changes in Fund Balance of
           Governmental Funds to the Statement of Activities .............................. 68
    Proprietary Fund Financial Statements
       Statement of Net Assets .......................................................................... 69
       Statement of Revenues, Expenses and Changes in
           Fund Net Assets................................................................................. 70
       Statement of Cash Flows ......................................................................... 71




                                                       i
                                         TABLE OF CONTENTS (continued)



             Fiduciary Fund Financial Statements
                Statement of Fiduciary Net Assets ........................................................... 72
                Statement of Changes in Fiduciary Net Assets .......................................... 73
             Component Unit Financial Statements
                Statement of Net Assets ......................................................................... 74
                Statement of Activities ............................................................................ 80

         Notes to Basic Financial Statements:

Notes

 (1) Summary of Significant Accounting Policies ........................................................... 83
 (2) Legal Compliance ................................................................................................. 114
 (3) Cash and Investments .......................................................................................... 115
 (4) Property and Sales Tax Revenue and Receivables .................................................. 131
 (5) Capital Assets ...................................................................................................... 135
 (6) Risk Management ................................................................................................ 142
 (7) Short-Term Debt ..……………………………………………………………………………………………147
 (8) Long-Term Debt .................................................................................................. 149
 (9) Interfund Receivables, Payables and Transfers ...................................................... 172
 (10) Retirement Benefits............................................................................................ 174
        A. Plan Description .......................................................................................... 174
        B. Funding Policy, Annual Pension Cost and Net Pension Obligation, Annual
             Required Contribution and Schedule of Funding. ........................................ 175
        C. Voluntary Separation Program……………………………………………………………………177
(11) Postemployment Benefits Other Than Pension Benefits……………………………………… 183
(12) Contingencies ..................................................................................................... 191
(13) Related Party Transactions (see Note 1) ............................................................... 195
(14) Derivative Financial Instruments .......................................................................... 197
(15) Liquidity ………………………………………………………………………………………………………….202
(16) Subsequent Event………………………………………………………………………………………….…202




                                                                  ii
                                        TABLE OF CONTENTS (continued)



Required Supplementary Information

         Budgetary Comparison Schedule - General Fund ................................................. 207
         Notes to Required Supplementary Information ................................................... 208

Supplementary Information:

         Combining Other Governmental Funds Financial Statements:

           Combining Balance Sheet - Other Governmental Funds .................................... 215
           Combining Statement of Revenues, Expenditures and
            Changes in Fund Balances - Other Governmental Funds..................................216

         General Fund:

A‑1 Balance Sheet ...................................................................................................... 219
A‑2 Schedule of Revenues, Expenditures and
      Changes in Fund Balance - Budget and Actual .................................................... 221
A‑3 Schedule of Expenditures - Budget and Actual ....................................................... 224

         Special Revenue Funds:

B‑1 Combining Balance Sheet Schedule ....................................................................... 253
B‑2 Combining Statement of Revenues, Expenditures and
      Changes in Fund Balances ................................................................................ 255
B‑3 Schedule of Revenues, Expenditures and Changes in
      Fund Balance - Budget and Actual - Transportation Fund....................................256
B‑4 Schedule of Revenues, Expenditures and Changes in
      Fund Balance - Budget and Actual - Liquid Fuel Tax Fund ................................... 257
B‑5 Schedule of Resources and Uses of Federal and State Grant Programs -
      County Grants Fund ........................................................................................ 258
B‑6 Schedule of Resources and Uses of Federal and State Grant Programs -
      Human Service Grants Fund .............................................................................. 260




                                                                 iii
                                       TABLE OF CONTENTS (continued)



         Debt Service Fund:

C‑1 Balance Sheet ..................................................................................................... 265
C‑2 Schedule of Revenues, Expenditures and Changes in
      Fund Balance - Budget and Actual .................................................................... 266

         Capital Projects Fund:

D‑1 Balance Sheet ..................................................................................................... 269
D‑2 Statement of Revenues, Expenditures and Changes
      in Fund Balance. .............................................................................................. 270

         Internal Service Fund:

E‑1 Statement of Net Assets ....................................................................................... 273
E‑2 Statement of Revenues, Expenses and Changes in
       Fund Net Assets............................................................................................... 274
E‑3 Statement of Cash Flows ...................................................................................... 275


         Trust and Agency Funds:

F‑1   Statement of Net Assets - Pension Trust Fund ....................................................... 279
F‑2   Statement of Changes in Plan Net Assets - Pension Trust Fund ............................... 280
F‑3   Statement of Assets and Liabilities - Combined Agency Funds................................. 281
F‑4   Statement of Changes in Assets and Liabilities -
         All Agency Funds - By Level of Fiduciary Responsibility ....................................... 282




                                                             iv
                                    TABLE OF CONTENTS (continued)


         Capital Assets Used in the Operation of Governmental Funds:

G‑1 Schedule of Capital Assets by Function and Activity ............................................... 295
G‑2 Schedule of Changes in Capital Assets by Function and Activity.............................. 297
G‑3 Schedule of Capital Assets by Source .................................................................... 298

         Budgetary Comparison:

H     Budgetary Comparison Schedule for Operating Budget........................................... 300

         Nonmajor Component Units:

I‑1 Combining Statement of Net Assets..................................................................... 307
I‑2 Combining Statement of Activities........................................................................ 308



         Supporting Schedules for Long-Term Debt:

J‑1 Schedule of Long-Term Debt................................................................................. 312
J‑2 Debt Issued and Retired ....................................................................................... 317
J‑3 Statement of Indebtedness, Borrowing Power and Legal Debt Margin...................... 318



                                            STATISTICAL SECTION

Revenue and Expenditure Overview............................................................................ 322

Tables

I        Net Assets by Component - Last Nine Years…………………………………………………….335
II       Changes in Net Assets - Last Nine Years............................................................ 336
III      Fund Balances, Governmental Funds - 2010……………......................................... 339
IV       Fund Balances, Governmental Funds - Last Nine Years........................................340




                                                            v
                                      TABLE OF CONTENTS (continued)



V     Changes in Fund Balances, Governmental Funds - Last Nine Years..................... 342
VI    Program Revenues by Function/Program - Last Nine Years ................................ 344
VII   Tax Revenues by Source, Governmental Funds - Last Ten Years ........................ 345
VIII  Property Tax Levies and Collections ................................................................. 346
IX    Real Property Tax Levies and Collections Assessed Value of
          Taxable Property – 2001-2003 .................................................................... 347
X     Principal Taxpayers ......................................................................................... 348
XI    Certified Estimated Assessed Valuation, Assessed Value and
          Direct Tax Rate of Taxable Property - Last Ten Years ................................... 349
XII   Property Tax Rates - Direct and Overlapping Governments -
           Last Ten Years .......................................................................................... 350
XIII Ratios of General Obligation Bonds Outstanding and Legal Debt
           Margin - Last Ten Years ............................................................................. 370
XIV   Computation of Direct and Overlapping Debt .................................................... 372
XV    Demographic and Economic Statistics - Last Ten Years...................................... 374
XVI   Principal Employers - Current Year and Nine Years Ago ..................................... 376
XVII Full-Time Equivalent County Government Employees by
           Function/Program - Last Ten Years ............................................................ 377
XVIII Operating Indicators by Function/Program - Last Ten Years............................... 378
XIX   Capital Asset Statistics by Function/Program ‑ Last Ten Years ........................... 380
XX    Revenue Bond Coverage Airport Authority Revenue
           Bonds and Notes - Last Ten Years .............................................................. 381
XXI   Pittsburgh International Airport Passenger Volume Trend -
           Last Ten Years .......................................................................................... 382
XXII Salaries of Principal Officials ............................................................................ 383
XXIII County Council Members’ Expenditure Reimbursements .................................... 384
XXIV Primary Government Functions ........................................................................ 385




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                          COUNTY OF ALLEGHENY

                                     Office of the Controller

                               104 Courthouse • 436 Grant Street
                                      Pittsburgh, PA 15219
Mark Patrick Flaherty       Phone (412) 350-4660 • Fax (412) 350-3006                         Guy A. Tumolo
     Controller                                                                             Deputy Controller




                                                                                March 31, 2011




     TO THE CITIZENS OF ALLEGHENY COUNTY:
            I am pleased to present the 2010 Comprehensive Annual Financial Report (CAFR) for the
     County of Allegheny (the County).

             The information presented is accurate in all material respects and is presented in a
     manner designed to fairly set forth the County's financial position and the results of its
     operations for the year ended December 31, 2010. These financial statements and
     supplementary information are the responsibility of the County's management. This report
     contains the government-wide financial statements and fund financial statements of the County,
     as well as the financial data of the discretely presented component units that are included as
     part of the County's reporting entity.

             This report is designed to provide information to various users including: the taxpayers
     of Allegheny County, investors, creditors, governmental officials and the general public. Its
     intent is to describe the County’s financial position and the financial results of its operations as
     of and for the year ended December 31, 2010.


     PROFILE OF THE GOVERNMENT

                              COUNTY OF ALLEGHENY, PENNSYLVANIA

             Founded in 1788, the County of Allegheny is the second most populous county in
     Pennsylvania and the 31st most populous in the nation with 1.2 million residents residing in
     730.74 square miles encompassing 130 municipalities. The County provides a number of
     services and programs, such as the delivering of essential human services to the poor and
     needy, enforcing laws, constructing roads and stimulating economic development.
                     COUNTY OF ALLEGHENY, PENNSYLVANIA

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

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

         The Controller is elected to serve as the County's chief financial officer. The Treasurer is
elected to collect taxes and invest County funds. The other independently elected row officers
are the District Attorney and the Sheriff. The Court of Common Pleas is part of the unified
judicial system provided for by the Pennsylvania Constitution.

                                      REPORTING ENTITY

         Statement of Governmental Accounting Standards No. 14, "The Financial Reporting
Entity," and as amended by Statement No. 39 establishes standards for defining and reporting
on the financial reporting entity. The core of the financial reporting entity is the "primary
government." The Governmental Accounting Standards Board's Codification, Section 2100.112,
classifies all general-purpose local governments as primary governments. For this report, the
County is considered the "primary government."

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

           The primary government appoints the voting majority of the board, and
           is able to impose its will on the component unit, or is in a relationship
           of financial benefit or burden with the component unit;

           The component unit is fiscally dependent on the primary government, or;

           The financial statements of the primary government would be misleading
           if data from the component unit was not included.




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                    COUNTY OF ALLEGHENY, PENNSYLVANIA

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

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

                                   COUNTYWIDE SERVICES

        Reflected in this report are the services provided by the County, including health and
social services, education and cultural programs, public safety, infrastructure construction,
repair and maintenance, judicial services, transportation, economic development, long‑term
nursing care and rehabilitation of the chronically ill and elderly, treatment, counseling and
housing for people with mental disabilities or drug and alcohol dependency, shelter for
delinquent children, services for abused children and their families, and general governmental
administration.

                                            GASB 34

       In 2002, the County implemented Governmental Accounting Standards Board
Statement No. 34 (GASB Statement No. 34), ―Basic Financial Statements - and Management’s
Discussion and Analysis - for State and Local Governments,‖ issued by the Governmental
Accounting Standards Board. The Statement was developed to make annual reports easier to
understand and more useful to the people who use governmental financial information to
make decisions. GASB Statement No. 34 helps users by:
          Assessing the finances of the government in its entirety, including the
           year’s operating results;

          Determining whether the government’s overall financial position improved
           or deteriorated;

          Evaluating whether the government’s current-year revenues were
           sufficient to pay for current-year services;

          Indicating the cost of providing services to its citizenry;



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                    COUNTY OF ALLEGHENY, PENNSYLVANIA

          Indicating how the government finances its programs through user
            fees and other program revenues versus general tax revenues, and;

          Explaining the extent to which the government has invested in
           capital assets, including roads, and other infrastructure assets.

        GASB Statement No. 34 requires that the CAFR include a narrative introduction and an
analytical overview of the government’s financial activities in the form of ―Management’s
Discussion and Analysis‖ (MD&A). This analysis is similar to analysis the private sector
provides in their annual reports. Information regarding the County’s results of operations,
formerly included in this transmittal letter, can now be found in the MD&A.

                                    INTERNAL CONTROL

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

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

                                   INDEPENDENT AUDIT

        For the 31st consecutive year, an independent public accounting firm has audited the
County’s financial statements. The firm of Maher Duessel, Certified Public Accountants,
performed the current audit. The goal of the audit was to provide reasonable assurance the
financial statements of the County for the year ended December 31, 2010, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall
financial statement presentation. The auditor concluded there was a reasonable basis for
rendering an unqualified opinion that the County’s financial statements for the year ended
December 31, 2010, are fairly presented in conformity with GAAP. The independent auditor’s
report is presented in the Financial Section of this report.




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                    COUNTY OF ALLEGHENY, PENNSYLVANIA

                                                BUDGET

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


ECONOMIC CONDITIONS

                                     MAJOR INITIATIVES

        Allegheny County has endured the recession better than many metropolitan areas in
the state and the nation. Relatively stable housing prices and an economic core of highly
regarded universities and hospitals permitted the area to support high incomes and steady job
counts, strengthening overall stability.

       Additional benefits to the region’s economy have been the progression of large
commercial construction projects, such as Three PNC Plaza and the Consol Energy Center.
Ongoing expansion of high-tech employer Westinghouse is anticipated to further facilitate
regional recovery.

       Increasing demand and a shrinking supply of inventory improved Pittsburgh’s
commercial real estate markets in 2010. Pittsburgh placed number five on Moody’s survey
ranking 60 commercial real estate markets in the U.S.

        In its fourth quarter market forecast, Grubb & Ellis, a commercial real estate advisory
firm, reported that vacant space continued to be absorbed in a market with little new
construction to add to inventory. As financing creates challenges to building new office
properties, the firm expects continuing office demand from the health care, education,
financial services and energy industries to drive up rents as available space declines. The firm
also expects an increase in sales activity of industrial property and construction starts as
financing becomes more available.




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                    COUNTY OF ALLEGHENY, PENNSYLVANIA

        The region’s leasing activity was controlled by local companies across various
submarkets. Modcloth.com, an Internet apparel retailer, increased its square footage in the
Pittsburgh submarket while several national and regional retailers have expanded their
Pittsburgh presence. In the North/McKnight area, Simon Property Group added a high-end
mix of tenants such as Crate and Barrel, Apple and California Pizza Kitchen, to the Ross Park
Mall. Lowe’s Home Improvement broke ground in the new 81-acre McCandless Crossing
Project, joined by a 45,000 square foot LA Fitness.

       What may be indicative of capital loosening and strengthening of the steel service
industry is the purchase of the former Ryerson Steel facility in Carnegie for $3 million and the
investment by Alro Steel in future expansion by acquiring 15 acres of land in the Findlay
Industrial Park at Westport.

       Whole Foods will be expanding its presence in the marketplace, selecting the north
suburb of McCandless Township as the location of its new store. An existing 33,000-square-
foot building will be expanded by 13,750 square feet to accommodate the grocer.

         Urban East Side Bakery Square welcomed Anthropologie and Urban Active Fitness to its
retail complex, while upscale Neiman Marcus is considering a new concept store in the same
area. Bakery Square’s lead tenant is Google which doubled the size of its Pittsburgh operation,
and announced plans to expand its space by an additional 70,000 feet, creating room for up to
350 more employees. Also, Target committed to a 143,000-square-foot store in Pittsburgh’s
east side, expected to open in the summer of 2011.

        In February, Dicks’ Sporting Goods moved into its new headquarters, a 670,000 square
foot, $150 million complex occupying 116 acres of land beside the main runway at Pittsburgh
International Airport in Findlay. The center is phase one of a potential 2 million square foot
complex. Approximately 1,200 employees currently occupy the space. The development
includes a large hanger for its fleet of corporate jets and extensive recreational facilities and
amenities for staff. The complex is pursuing Leadership in Energy and Environmental Design
(LEED) certification, an internationally recognized green building award.

       Less fencing appears in downtown Pittsburgh’s business district as a portion of Market
Square’s renovation concluded with outdoor seating and a refurbished central plaza. The
Fairmont Hotel opened its doors in nearby Three PNC Plaza while a number of restaurants
committed to Market Square.

      On the North Shore, the Steelers and Continental Real Estate Company recently
opened a $12 million entertainment complex next to Heinz Field, with naming rights secured
by American Eagle Outfitters: ―Stage AE.‖

        Variety Wholesalers, using 40,000 square feet, announced interest in the region for its
Roses store brand, while Wal-Mart continues to extend over the local landscape, with new
stores on the horizon.




                                                6
                   COUNTY OF ALLEGHENY, PENNSYLVANIA

       2010 marked the completion of the $7.6 million Braddock Field Project, creating
affordable housing, recreational opportunities and providing human service programs to
encourage business growth. The project was made possible with financial assistance from the
Allegheny County Department of Economic Development, Pennsylvania Housing Finance
Agency (PHFA), Pennsylvania Department of Community and Economic Development (DCED),
Federal Home Loan Bank, Citizen’s Bank and Mon Valley Initiative (MVI).

       Allegheny County received a grant allocation of $8.1 million from the U.S. Department
of Energy to undertake energy efficiency improvement projects, funded by the American
Recovery and Reinvestment Act of 2009. One of the programs funded by this grant, the
Energy Savings Performance Contract, is a partnership with Duquesne Light Company which
draws on Duquesne Light Company’s expertise and incorporates its resources to assist in
meeting County objectives such as instituting efficiency incentives and rebate programs that
address particular deficiencies. The partnership includes an investment-grade energy audit of
County owned buildings and related infrastructure. As a result, various County buildings are
undergoing mechanical retrofits to improve energy efficiency.

        Consol Energy Center celebrated its grand opening in August, with the Pittsburgh
Penguins offering an open house to the public. CONSOL Energy Inc. signed a 21-year naming
rights agreement with Pittsburgh’s hockey team on December 15, 2008. The new arena also
hosted a wide range of entertainment events, including family shows and concerts by
performers such as Sir Paul McCartney and Lady Gaga.

                 COUNTY HIGHLIGHTS AND GOVERNMENTAL COOPERATION

        In order to expand governmental cooperation, the Allegheny County Controller’s Office
proposed an agreement with the City of Pittsburgh to financially share a comprehensive
financial management system, known as Enterprise Resource Planning. Allegheny County
would purchase all necessary software and provide the city with technical support from its
shared services center. The project is expected to be implemented within the coming year.

       As part of Allegheny County’s strategy to promote reduced energy consumption and
greenhouse gases, Allegheny County has also utilized a portion of its energy stimulus grant,
received by the U.S. Department of Energy, to launch the Allegheny County Energy Program
for Municipalities. This program is designed to achieve an optimal level of energy efficiency
improvements to municipal buildings throughout the County.

        Allegheny County’s Department of Economic Development partnered with Grow
Pittsburgh, a non-profit dedicated to teaching and promoting responsible urban food
production, to provide county residents with educational assistance for establishing and
sustaining a community gardening initiative. The initiative provides regenerative benefits for
communities in need of revitalization and provides healthy food opportunities in economically
challenged communities.




                                               7
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

        Chapman Business Properties proved how strategic, public/private partnerships can be
an effective economic development tool through its partnership with Findlay Township, West
Allegheny School District, Allegheny County and the State. These public entities provided
financing for infrastructure in the airport corridor, a pivotal area for potential development with
expected future economic growth and job creation. Chapman created the aforementioned
Dick’s Sporting Goods complex beside the main runway at Pittsburgh International Airport. It
is projected this development will create 1,400 jobs at completion.

                                       LOCAL ECONOMY

       The metro region is not expected to experience high-volume retail growth in the
coming year, according to Grubb & Ellis. However, well-positioned sites will likely attract
tenants and rents should begin to rise. Local restaurants will likely experience continued
growth, particularly with support from the Small Business Jobs Act signed in the fall of 2010.
This package of tax deductions and lending incentives is expected to channel expansion capital
to small businesses.

        In addition to minimizing the County’s footprint in manufacturing regions, job losses
have slowed and incomes reached bottom in most market areas. PNC Financial predicts that
housing prices will end their decline by early 2011 in most market areas. Despite these
positive emerging economic trends, high unemployment rates will restrain wage gains, thus
keeping income growth at a modest pace.

        Although the nation’s employment picture is sluggish and foreclosure rates are high,
Southwestern Pennsylvania did not experience the run-up in housing prices over the past
decade that other regions have experienced. As a result, it was able to avoid the sharp
downturn as the housing bubble burst. Thus, when Forbes.com released its latest list of the
ten best markets to buy a house, it ranked Pittsburgh number one. The online magazine said
Pittsburgh’s appreciating prices, affordability rating and low number of foreclosures with
steady home prices all factored into the City’s ranking.

       Allegheny County’s unemployment rate dropped by a tenth of a percentage point from
2009 to 2010, ending the year at 7.1 percent, while the nation’s unemployment rate reached
9.4 percent.

        Education and health services now comprise 21 percent of all greater Pittsburgh area
jobs, holding at 240,300 jobs in December 2010.

        Despite sluggish job growth nationwide, the total number of jobs in the Pittsburgh
region in December 2010 was up 9,100 over December 2009. The region has suffered less
from the recession than other regions and the nation as a whole, with a regional job loss of
1.8 percent between December 2008 and December 2010.




                                                8
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

       Projections by the PNC Financial Services Group expect modest job creation and stable
economic growth in 2011. ―Moderate and steady‖ will continue to depict the region for the
foreseeable future, as it did during the recession.

                   ALLEGHENY COUNTY AIRPORT AUTHORITY (ACAA)
                       PITTSBURGH INTERNATIONAL AIRPORT

       A multitude of factors, including the recession and consolidation within the airline
industry, created hurdles for Pittsburgh International Airport’s recovery after losing USAirways
hub status. But improvement to the economy in 2010 helped recover some ground.

        Passenger traffic rose nearly 11 percent in November, the eighth consecutive month for
an increase in commercial scheduled traffic. And there were announcements of plans for new
service by several airlines. Delta Airlines announced plans for Pittsburgh to Boston flights and
declared its Pittsburgh to Paris nonstop service will be daily in 2011. Southwest Airlines
announced added flights to Denver.

       Scheduled passenger traffic at Pittsburgh International Airport increased 2.0 percent in
2010 compared to 2009 according to the December 2010 Summary of Airline Traffic report,
compiled by the Allegheny County Airport Authority. A total of 8,195,359 scheduled
passengers traveled at the Airport for the year compared to 8,031,175 passengers in 2009.

      It is the first year in the history of the airport that three airlines – US Airways,
Southwest, and Delta – have flown more than 1 million passengers each.

       A total of nine airlines reported increases in traffic with AirTran and JetBlue showing
increases of more than 29 percent. AirTran showed a gain of almost 200,000 passengers for
the year, while JetBlue’s traffic jumped by more than 36 percent. Airlines that reported
decreases in traffic for 2010 were US Airways, Southwest and Continental.

        Conde Nast Traveler’s 13th Annual Business Travel Awards poll ranked Pittsburgh
International Airport seventh best airport for business travel among U.S. airports. It is the
fifth year Pittsburgh International has been in the top ten.

        Despite declines in service over the years and obstacles to financing operations, the
Airport’s long term outlook is hopeful. The loss of its hub operation compelled the Airport to
seek alternative sources of revenue and cost cutting measures. Pittsburgh International has
generated revenues by refurbishing and selling unneeded jetways to other airlines and
continues to find tenants for Airport property.

        Approximately $30 million in debt was refinanced by the Airport Authority in 2010 to
gain more favorable rates. Additionally, it anticipates $12 million in gaming revenue from the
State in 2011. Standard & Poor upgraded the Airport Authority’s debt outlook from ―stable‖ to
―positive.‖ Air traffic is expected to rise once again in 2011.




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                    COUNTY OF ALLEGHENY, PENNSYLVANIA

                        PORT AUTHORITY OF ALLEGHENY COUNTY

        The Port Authority of Allegheny County coped with numerous difficulties throughout
the year. Pennsylvania’s failure to succeed in acquiring federal approval to place tolls on
Interstate 80 impaired its ability to fund Act 44, enacted to assist in financing public transit
and road and bridge projects. This shortfall led to a $27 million reduction in State funding,
and subsequent $47.1 million budget gap for the transit system.

        On July 21st, the public transit system outlined a proposed plan to cover its $47.1
million budget deficit. The proposal called for a 35 percent reduction in service, which
included eliminating 50 bus routes and laying off 500 employees. It was the Authority’s
deepest proposed cut in history.

        By November, a $47 million deficit remained without the prospect of State funding. As
a result, the Authority’s Planning and Development Committee voted on more cuts to occur in
March of 2011. It proposed a total of 35 percent of service hours reduced, the elimination of
approximately 40 bus routes, reductions in service affecting almost every route in the system
and the elimination or layoff of between 350 to 400 positions.

         By the end of 2010, $45 million in federal economic development funds set aside for
southwestern Pennsylvania had been reallocated to provide the Port Authority reprieve from its
deficit. Pennsylvania’s Governor met with the Southwestern Pennsylvania Commission in order
to provide a temporary fix for the transit crisis and allow legislators more time to come up with
a permanent solution.

        The prospect of reducing service is nothing new to the Port Authority. In 2007, it
reduced its service hours by 15 percent and cut routes from 219 to 186. In 2008 the system
experienced a 3 percent increase in service hours, due in part to a sharp rise in the price of
gasoline. Since that time, pressure to reduce costs and increase productivity has lead to job
cuts, fare increases and higher employee contributions to healthcare and pensions. Such
measures helped the Port Authority cut $52 million from the budget since 2007 and increase
annual revenues by $14 million. Bus routes eliminated in 2007 occurred in neighborhood
routes where ridership had markedly declined over time. However the majority of routes
targeted for elimination in November 2010, were routes that are considered sustainable,
according to the Authority’s CEO, Steve Bland.

         The impact of route elimination will be widely felt in the region, as it will heighten the
risk of increased weekday traffic congestion and longer commute times. Additionally, even a
modest increase in the number of people driving to work may trigger a parking crisis since the
majority of the City’s garages are filled to 90 percent capacity during weekdays.




                                                10
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

        The outlook of public transit in the region appears uncertain. Without stable State
funding, its future could be in peril. As the Port Authority’s CEO has stated, ―public transit is
public good. If the consensus is to support the system, finding a solution to supporting it will
transpire.‖

                                  PROPERTY ASSESSMENTS

       Allegheny County’s property tax values will undoubtedly be altered in the coming year
due to reassessments scheduled to evaluate all properties in Allegheny County over the course
of 2010 into 2011.

        Though the County Executive sought to maintain property assessments on the base
year of 2002, in June 2007 a Common Pleas Court ruling was issued that would require every
county in Pennsylvania to re-examine its property assessment system.

       In April 2009, the Pennsylvania Supreme Court threw out Allegheny County's base-year
system of property valuation on grounds that it violated the uniformity clause of the
Pennsylvania Constitution. By December 2009, the Common Pleas Court Judge accepted a
revised reassessment plan from Allegheny County.

        Notices were sent to property owners in the first quarter of 2010 regarding
reassessments. Approximately 92 people, 21 County employees and 71 contract employees,
were employed full time to visit, enter and analyze information related to approximately
60,000 commercial and 511,000 residential properties. Owners are scheduled to receive
preliminary notice of new values assigned to their homes and businesses by July of 2011. It is
predicted that most residents will not incur a major shift, either up or down, in taxes to be
paid once assessments are updated.

        The $11 million reassessment effort continues to move forward despite efforts by
County Council to halt the Court order. In February 2011, Council passed a resolution asking
State Legislature and the governor to declare a moratorium on property revaluations until
lawmakers modify the statewide assessment code. Members further passed a motion to file a
law suit in order to have the State’s assessment rule declared unconstitutional.

       State law contains anti-wind fall provisions requiring the County, municipalities and
school districts to lower their millage rates to reflect higher values. The Administrative Code of
Allegheny County section 5-209.08 states the County shall not derive windfall benefits from
reassessments. The total amount of real estate tax revenue received from reassessment shall
not exceed 105% of the real estate tax revenues received in the preceding year.




                                                11
                    COUNTY OF ALLEGHENY, PENNSYLVANIA


LONG-TERM FINANCIAL PLANNING
                        FIVE-YEAR CAPITAL IMPROVEMENT PLAN

        The Capital Improvement Plan (CIP) is a strategic tool used by the County to identify,
and plan for, capital projects. It is also used to coordinate the financing of capital projects in
order to maximize the benefits to the public. The CIP forecasts cash flow to ensure funds are
available to finance projects for the five-year period within the constraints of the County’s
current Debt Policy. The Debt Policy goals are (1) to limit annual payments to $65 million, (2)
to only refinance debt if a present-value-economic gain of 3% is realized and (3) to use an
annual adjustable rate to replace fixed rate debt. Some of the 2011 and 2012 planned
projects include $24.2 million for the rehabilitation of the Mansfield Bridge, $22.6 million for
the replacement of the Greensburg Pike Bridge, $17 million for the continued work on the 10th
Street Bridge and renovation of the Health Department Offices at 3333 Forbes Ave ($7.8
million). Planned projects to begin in 2012 include $2.9 million for improvements to
Campbell’s Run Road and $2.3 million for renovation of Thoms Run Road Extension.


                         FUTURE COUNTY OPERATION BUDGETS

       The Home Rule Charter requires the County to project revenues and expenditures for
two subsequent years. The County 2011’s budget is $767.7 million and 2012 and 2013
budgets are forecasted at $776.3 million and $785.7 million respectively.


RELEVANT FINANCIAL POLICIES

       It is the County’s goal to ensure current year operating revenues are sufficient to fund
current year expenditures without the use of non-recurring revenues. However, non-recurring
and unbudgeted areas of funding used to finance 2010 expenditures were as follows:

               Capital Fund - PennDOT Reimbursements             $   41.5   million
               RAAC - Revolving loan repayments from EDF              6.0   million
                     - Excess EDF Debt Service Escrow Funds           0.7   million
               Department of Real Estate - Technology Fund            0.5   million
               Department of Administration - Internal Fund           0.2   million




                                                 12
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

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

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

AWARDS AND ACKNOWLEDGEMENTS

                        CERTIFICATE OF ACHIEVEMENT FOR CAFR

       The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the County of
Allegheny, Pennsylvania, for its Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended December 31, 2009. This was the 28th consecutive year that the County
Controller’s Office has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.

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

                        CERTIFICATE OF ACHIEVEMENT FOR PAFR

       The Government Finance Officers Association of the United States and Canada (GFOA)
has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the
County of Allegheny, Pennsylvania, for its Popular Annual Financial Report (PAFR) for the fiscal
year ended December 31, 2009. The Award for Outstanding Achievement in Popular Annual
Financial Reporting is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local government popular reports.

In order to receive an Award for Outstanding Achievement in Popular Annual Financial
Reporting, a government unit must publish a Popular Annual Financial Report, whose contents
conform to program standards of creativity, presentation, understandability and reader appeal.

An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a
period of one year only. The County of Allegheny, Pennsylvania has received a Popular Award
for the first time for fiscal year ended December 31, 2009.




                                                13
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

                             INTERNAL AUDIT PEER REVIEW

        The Association of Local Government Auditors (ALGA) conducted an external quality
control review on the Controller's Audit Division in 2009. The objectives of the peer review
were to ensure the Audit Division’s internal quality control system was suitably designed,
operating effectively and in compliance with Government Auditing Standards issued by the
Comptroller General of the United States. Organizations meeting ALGA’s standards receive full
compliance, permitting them to issue audits in accordance with Generally Accepted
Government Auditing Standards. The Audit Division received full compliance, which is the best
score possible. The peer review is valid for a period of three years. This was the first time a
County Controller has ever requested a peer review.

                                      INTERNAL AUDIT

       The Controller's Audit Division routinely conducts financial and compliance audits of
County departments, agencies, row offices and federal and state grants to ensure that County
government is efficient, effective and compliant. Management and performance reviews are
performed when the need arises. The division issued 92 financial and compliance audits,
reviews and special reports to the County Manager, County Council and the general public
during the 2010 calendar year to inform County taxpayers and protect their financial interests.



                                   ACKNOWLEDGMENTS

        The information contained in this report provides a comprehensive picture of the
financial position of the County of Allegheny. The presentation of this report on a timely basis
could not be accomplished without the efficient and dedicated services of many people. I wish
to express my thanks and sincere appreciation to all of the staff and auditors who assisted and
contributed during its preparation.



                                                    Respectfully submitted,




                                                    Mark Patrick Flaherty
                                                    Controller




                                              14
Certificate of achievement for excellence in financial reporting
                          COUNTY OF ALLEGHENY, PENNSYLVANIA
                              Officials of Allegheny County
                                   December 31, 2010




                                           CHIEF EXECUTIVE
                                             Dan Onorato


                                           COUNTY COUNCIL

       COUNCIL DISTRICT AT LARGE #1                            COUNCIL DISTRICT AT LARGE #2
             John P. DeFazio                                           Chuck McCullough

           COUNCIL DISTRICT #1          COUNCIL DISTRICT #5         COUNCIL DISTRICT #10
                Matt Drozd                 Vince Gastgeb              William R. Robinson

           COUNCIL DISTRICT #2          COUNCIL DISTRICT #6         COUNCIL DISTRICT #11
                 Jan Rea                    Vacant***                  Rich Fitzgerald*

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

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

                                        COUNCIL DISTRICT #9
                                           Robert J. Macey


                                            ROW OFFICERS

               CONTROLLER                                            DISTRICT ATTORNEY
            Mark Patrick Flaherty                                    Steven A. Zappala, Jr.

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


                                           DIRECTOR OF
     COUNTY MANAGER                     BUDGET AND FINANCE                     SOLICITOR
       James M. Flynn                       Amy Griser                    Michael H. Wojcik, Esquire

*President of Council
**Vice President of Council
***Joan Cleary resigned effective December 21, 2010




                                                  21
INDEPENDENT AUDITOR’S REPORT
Auditors report




                  25
Auditors report




                  26
MANAGEMENT’S DISCUSSION
          AND ANALYSIS
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

                                       INTRODUCTION

       This section of the County of Allegheny’s (County) comprehensive annual financial
report presents a narrative overview and analysis of the County’s financial performance for the
year ended December 31, 2010. It is recommended that it be read in conjunction with the
accompanying basic financial statements and notes to the financial statements in order to
obtain a thorough understanding of the County’s financial condition at December 31, 2010.

                                     RESULTS IN BRIEF

           Government-wide net assets decreased $51.9 million in 2010.

           Government-wide unrestricted net deficit at December 31, 2010 was
           $143.9 million.

           The County’s real property tax rate was maintained at 4.69 mills.

           The County’s investment bond rating from Standard & Poor’s remained at A+.
           Moody’s Investor Service rating for the County is A1.

           At December 31, 2010, the County had $655.8 million of bond debt outstanding.
           This represents a decrease of $33.3 million from the previous year.

           The General Fund’s unrestricted fund balance increased by $0.2 million in 2010
           compared to a $0.6 million increase in 2009.

           The total fund balance of the General Fund at December 31, 2010 was $20.4
           million. The unassigned portion of the fund balance was $19.5 million, which is
           approximately 3.1% of revenues in the General Fund for fiscal year 2010. The
           change in unassigned fund balance between years was negligible.

                       OVERVIEW OF THE FINANCIAL STATEMENTS

        The financial section of this report consists of three parts: management’s discussion
and analysis, the basic financial statements (including notes to the financial statements) and a
section that presents combining and individual fund statements, as well as detailed budgetary
comparison schedules. The basic financial statements present two different views of the
County through the use of government-wide statements and fund financial statements.




                                               29
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

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

     REQUIRED COMPONENTS OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT



                         Management’s
                                                            Basic Financial
                         Discussion and
                                                             Statements
                            Analysis




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

               Summary                            Detail


        The first two statements (pages 53-57) are government-wide financial statements that
provide information about the primary governments’ overall financial status, as well as the
financial status of the County’s component units (pages 74-81). The remaining statements
(pages 58-73) are fund financial statements that focus on individual parts of County
government, reporting the County’s operations in more detail than the government-wide
statements. The fund financial statements include:

        Governmental funds statements (pages 58-68) which explain how services such as
       public safety were financed in the short term, as well as what remains for future
       spending. A budgetary comparison statement is provided to demonstrate compliance.

        Proprietary fund statements (pages 69-71) which offer financial information about the
       activities the County operates like a business.

        Fiduciary funds statements (pages 72-73) which reflect activities involving resources
       that are held by the County as a trustee or agent for individuals, private organizations,
       or other government units. Fiduciary funds are not reflected in the government-wide
       statements because the resources cannot be used to support the County’s programs.

         The financial statements also include notes that provide additional information essential
to a full understanding of the financial data provided in the government-wide and fund
financial statements (pages 83-203) as well as required supplementary information regarding
the County’s budget (page 207-209).




                                               30
                MANAGEMENT’S DISCUSSION AND ANALYSIS

        In addition to these required elements, a section is included with combining and
detailed individual comparative statements, capital assets and debt schedules, and schedules
that provide specifics about major and nonmajor funds (pages 215-319).

       The remainder of this overview explains the structure and contents of the government-
wide and fund financial statements.

                         GOVERNMENT-WIDE FINANCIAL STATEMENTS

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

                               Government-wide Financial Statements

                                    Governmental Activities and Component Units


                                     Measurement Focus: Economic Resources
                                            Accounting Basis: Accrual




               Statement of Net Assets                                       Statement of Activities

                       Assets                                           Net Program (Expense) Revenue
                     - Liabilites                                             - General Revenues
                    = Net Assets                                            = Change in Net Assets



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




                                                        31
                   MANAGEMENT’S DISCUSSION AND ANALYSIS

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

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

       Component units – reflecting the activities of legally separate entities for which the
       County can exercise influence and/or may be obligated to provide financial support.

                                      FUND FINANCIAL STATEMENTS

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

                                        Fund Financial Statements

          Governmental Funds                   Proprietary Funds         Fiduciary Funds (excluding
                                                                               Agency Funds)
       Measurement Focus: Current         Measurement Focus: Economic
                Resources                         Resources             Measurement Focus: Economic
        Accounting Basis: Modified           Account Basis: Accrual              Resources
                 Accrual                                                  Accounting Basis: Accrual


             Balance Sheet                  Statement of Net Assets       Statement of Net Assets

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



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

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



                                            Statement of Cash Flows




                                                     32
                MANAGEMENT’S DISCUSSION AND ANALYSIS

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

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

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

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

                 FINANCIAL ANALYSIS OF THE COUNTY AS A WHOLE

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




                                              33
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

GOVERNMENT-WIDE FINANCIAL STATEMENTS:

       The County’s net assets at December 31, 2010 and 2009 are presented below:


                        Summary of Statement of Net Assets
                                December 31, 2010
                   With Comparative Totals for December 31, 2009
                               (rounded in millions)
                                                        Governmental
                                                          Activities        -

                                                      2010           2009

                 Current and other assets        $     320.7          395.8
                 Capital assets                        656.7          617.1
                     Total assets                      977.4        1,012.9

                 Current and other liabilities          289.1         292.7
                 Non-current liabilities                769.0         749.0
                     Total liabilities                1,058.1       1,041.7

                 Net assets:
                 Invested in capital assets,
                   net of related debt                   28.7           19.4
                 Restricted                              34.5           30.8
                 Unrestricted                          (143.9)         (79.0)
                    Total net assets             $      (80.7)         (28.8)



NET ASSETS:

          For 2010, net assets of governmental activities decreased $51.9 million to ($80.7)
million from ($28.8) million in 2009. The net assets consist of $28.7 million invested in capital
assets, net of related debt, $34.5 million restricted for various grant related purposes; and an
unrestricted net deficit of $143.9 million. Unfunded long-term liabilities for compensated
absences ($7.3 million), worker’s compensation ($1.5 million), pension ($112.2 million), and
OPEB ($18.8 million) are responsible for the County’s unrestricted net deficit. These long-term
liabilities grew by $46.0 million in 2010.




                                                 34
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

     The following table presents the County’s change in net assets for the years ended
December 31, 2010 and 2009:
                                       Change in Net Assets
                                  Year Ended December 31, 2010
                          With Comparative Amounts for December 31, 2009
                                       (rounded in millions)
                                                       Governmental
                                                         Activities     -
                                                   2010             2009        Variance
          Revenues
          Program revenues:
            Fees, fines and charges for services   $     104.7       105.2          (0.5)
            Operating grants and contributions           979.9     1,064.8         (84.9)
            Capital grants and contributions              40.0        28.6          11.4
          General revenues:                                                           -
            Property taxes                                267.8      266.4           1.4
            Sales and use taxes                            40.9       39.2           1.7
            Gaming local share assessment                   4.8        1.6           3.2
            Other                                           2.7       12.7         (10.0)
              Total revenues                            1,440.8    1,518.5         (77.7)
          Program expenses
            General government                            256.8      235.1          21.7
            Public safety                                 121.4      115.5           5.9
            Public works                                   66.5       84.7         (18.2)
            Transportation                                 36.3       37.6          (1.3)
            Health and welfare                            856.2      960.1        (103.9)
            Culture and recreation                         19.9       12.7           7.2
            Education                                      22.6       22.1           0.5
            Economic development                           45.7       29.8          15.9
            Economic opportunity                           38.2       37.3           0.9
            Interest on long-term debt                     29.1       27.9           1.2
              Total expenses                            1,492.7    1,562.8         (70.1)
          Change in net assets                            (51.9)     (44.3)         (7.6)
          Net assets – beginning                          (28.8)      15.5
          Net assets – ending                      $      (80.7)     (28.8)


CHANGE IN NET ASSETS:

        In 2010, the change in net assets was a decrease of $51.9 million compared to a $44.3
million decrease in 2009. Revenue decreases in 2010 of $77.7 million (mostly Human Service
Grants) were offset by decreased health and welfare expenses of $103.9 million.




                                                   35
                    MANAGEMENT’S DISCUSSION AND ANALYSIS

        The decrease ($84.9 million) in operating grant revenue can be attributed in part to
$113.5 million in health and welfare program costs for Mental Retardation being paid directly
by the State to service providers. In prior years, these funds passed through the County.
Offsetting this decrease was $15.6 million in additional managed care revenue, $3.7 million
more in CDBG (Community Development Block Grant) funds, $5.2 million in Homeland Security
grants, and a $10.1 million increase in Special Grant Incentive funds.

        Within General Revenues the $11.4 million increase in Capital was largely offset by a
$10.0 million decrease in miscellaneous revenues. The decrease in miscellaneous revenue was
largely due to a $3.5 million decrease in interest and investment earnings and a 2009 $4.0
million gain on the sale of the One Smithfield Street building.

       The decrease ($70.1 million) in expenses included the above health and welfare
decrease of $113.5 million for direct State payment offset by increased general government
expenses of $21.7 million and higher economic development costs of $15.9 million. The
general government expenses rose as fewer assets were capitalized and economic
development costs from the community infrastructure and tourism fund and HPRP
(Homelessness Prevention and Rapid Re-housing Program) grants increased.

SOURCES OF REVENUES:
       The following chart graphically depicts the government-wide sources of revenues for
the year ended December 31, 2010:

                                          Sources of Revenues
                    Program revenue          Total revenues: $1.4 billion
                    Operating Grants
                         68.0%




                                                                                               Program revenue
 General revenue other                                                                           Capital Grants
          0.2%                                                                                       2.8%


          General revenue                                                             Program revenue fees,
            gaming LSA                                                                  fines and charges
               0.3%                                                 General revenue            7.3%
                                       General revenue sales         property taxes
                                          and use taxes                  18.6%
                                               2.8%




                                                           36
                    MANAGEMENT’S DISCUSSION AND ANALYSIS

       Total government-wide revenues of $1.4 billion were derived primarily from program
based operating grants and contributions, representing 68.0% of the total. Property taxes
made up the second largest source of revenue at 18.6%, followed by program fees, fines and
charges at 7.3%, sales and use and gaming taxes at 3.1%, program based capital grants and
contributions at 2.8%, and other general revenue at 0.2%.

PROGRAM EXPENSES:
       The following chart graphically depicts the government-wide program expenses for the
year ended December 31, 2010:

                                                     Program Expenses
                                                      Total expenses: $1.5 billion


                     Health and welfare, 57.4%




                                                                                                                     Transportation, 2.4%

                                                                                                                     Public Works, 4.5%


          Interest on long-term debt,
                      1.9%


         Economic opportunity, 2.6%                                                                           Economic Development, 3.1%

                     Education, 1.5%
                                            Public Safety, 8.1%
                                                                                                 General government, 17.2%
                                                                  Culture and recreation, 1.3%




        Total expenses for all programs in 2010 were $1.5 billion. The expenses
cover a range of services, with the largest being health and welfare (health, behavioral health/
mental retardation, drug and alcohol program, children, youth and family services, area
agency on aging, regional nursing centers) at 57.4%. The second largest program area was
general government (central management, administrative services, row offices and courts) at
17.2%, followed by public safety (jail, police, emergency management) at 8.1%, public works
(maintenance, engineering, facilities management) at 4.5%, economic development
(community development) at 3.1%, economic opportunity (community service, employment
and training) at 2.6%, transportation expenses (contributions to the Port Authority of
Allegheny County) at 2.4%, interest payments on long-term debt at 1.9%, education
contributions to the Community College of Allegheny County) at 1.5%, and culture and
recreation (parks) at 1.3%.




                                                                      37
                  MANAGEMENT’S DISCUSSION AND ANALYSIS

NET PROGRAM EXPENSES/REVENUES:
       Net program expenses/revenues indicates the amount of support required from
taxes and other general revenues for the year. The following chart graphically depicts the net
program expenses/revenues by function/program for the year ended December 31, 2010:


                                  Net Program Expenses/Revenues
                                                                                              (in millions)
         $50.0

           $0.0

         -$50.0

        -$100.0

        -$150.0

        -$200.0
                                                                                                Education




                                                                                                                                                                               Culture and Recreation


                                                                                                                                                                                                        Economic Opportunity
                                                                             Transportation
                                        Public safety




                                                                                                                                         Economic Development
                                                                                                            Interest on long-term Debt
                                                        Health and welfare
                   General government




                                                                                                                                                                Public Works




        General government expenses required the most general revenue for support,
needing $165.9 million or 64.6% of the $256.9 million in 2010 expenses. Public safety
required $70.8 million (58.3%) in general revenue support for $121.4 million of total
expenses, while health and welfare required $48.8 million (5.7%) of $856.2 million of
expenses; education programs required $22.5 million (99.5%) of $22.6 million of expenses,
interest payments on long-term debt required $29.0 million (99.8%) of the $29.1 million of
interest expenses, economic development required $4.7 million (10.3%) of the $45.7 million of
expenses, public works required $15.3 million (23.0%) in revenue of the $66.5 million of
expenses and culture and recreation required $7.8 million (39.4%) of general revenue to
support expenses of $19.9 million. Transportation expenses required $3.4 million (9.4%) of
general revenue to support costs of $36.3 million of expenses. Economic opportunity
expenses of $38.2 million had an excess of $0.1 million (0.1%) of general revenue support.




                                                                                                 38
                   FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS


                MANAGEMENT’S DISCUSSION AND ANALYSIS


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

GOVERNMENTAL FUNDS:

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

NORMAL IMPACTS:

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

    Revenues:

    Economic conditions – which can reflect a growing, stable or declining economic
    environment, and have a substantial impact on tax revenues as well as public
    spending habits for permits and other elective user fees and taxable consumed spending.
    Changing patterns in intergovernmental and grant revenue (both recurring
    and non-recurring) – certain recurring revenues (formula grants, etc.) may experience
    significant changes periodically while non-recurring or one-time revenues (project grants,
    direct payments for specified use, etc.) are less predictable and often distorting in their
    impact on year-to-year comparisons.
    Increase in assessed valuations of real property – the County derives a substantial
    amount of its revenues from property taxes, which are based on the market value of real
    property. The County’s Home Rule Charter limits property tax revenue from a countywide
    reassessment to a 5% increase of the amount of real estate tax revenue received in the
    preceding year, excluding new construction or improvements made to existing structures.
    Increase/decrease in County Council approved rates – while the County’s sales
    tax is fixed at one percent, County Council has the authority to periodically increase or
    decrease various other rates (property taxes, alcoholic beverage and rental vehicle taxes,
    recording and filing fees, recreation fees, etc.)
    Market impacts on investments – market conditions can cause income on the
    County’s investment portfolio to fluctuate year-to-year.




                                              39
                MANAGEMENT’S DISCUSSION AND ANALYSIS

   Expenditures:

   Introduction of new programs – within the functional expense categories (public
   safety, public works, health and welfare, etc.) individual programs may be added or
   deleted based upon the changing needs of the community.
   Increase/decrease in personnel – changes in service demand may cause an increase
   or decrease in staffing costs (salaries and fringe benefits), which represent a significant
   expense to the County.
   Salary increases (cost of living, merit and market adjustment and collective
   bargaining agreements) – the ability to attract and retain human resources requires
   the County to strive to approach a competitive salary range position in the marketplace.
   Inflation – while overall inflation appears to be modest, the County provides various
   health related programs and services have increased significantly. This sector of the
   economy has in recent years experienced above average increases in costs. In addition,
   the County is a consumer of various commodities which may experience unusual
   commodity specific increases.

     Governmental fund revenues, expenditures and net changes at fiscal year ending
December 31, 2010 and 2009 were:

            Governmental Fund Revenues, Expenditures, Other Financing and
                            Net Change in Fund Balance
                               (rounded in millions)
                                                                 Net Change in Fund
                                        2010                           Balances
                                                        Net
                                                       Other
Fund                      Revenues   Expenditures Financing          2010       2009

General              $            623.6            654.5         31.1          0.2         0.6
County Grants                     137.2            141.4          5.9          1.7         5.1
Human Service Grants              537.4            542.5          5.4          0.3        (0.1)
Capital Projects                   40.2             86.4        (34.5)       (80.7)       27.9
Other                              99.4            101.6          1.6         (0.6)       (9.6)

 Total Change            $     1,437.8          1,526.4            9.5       (79.1)       23.9



       At December 31, 2010, the County’s governmental funds reported a combined fund
balance of $37.5 million, a decrease of $79.1 million compared to the previous year’s increase
of $23.9 million.




                                              40
                MANAGEMENT’S DISCUSSION AND ANALYSIS

       The General Fund net change in fund balance was an increase of $0.2 million
compared to a $0.6 million increase in 2009. General Fund revenues and other financing
sources increased by $8.0 million and expenditures were $8.4 million higher than the previous
year.

       The following is an analysis of the General Fund revenue and net other financing
sources increase of $8.0 million.

         The major factor in the $23.8 million decrease in General Fund taxes was the allocation
percentage used in funding the Debt Service Fund. Since state gaming funds were no longer
available to pay debt, the percentage of tax allocated to the General Fund decreased 12%,
resulting in a comparable year tax allocation decrease of $29.9 million. In addition, higher
certified assessed values resulted in $1 million in current tax collections and non-current tax
collections increased $5.3 million as tax receivables have grown since the 2007 receivable sale.

        Sales tax revenues increased 4.4% or $1.7 million as November and December’s
collections indicated an upswing in the economy.

       The 2% Gaming local share assessment tax increased $3.3 million in 2010, as the
Rivers Casino was only open for five months in 2009.

       Federal revenues decreased by $5.1 million or 5.4% as detailed below (in millions):

           Decrease in reimbursement for federal prisoners                $(0.7)
           Increase in stimulus funding for foster care                     1.8
           Increase in skilled nursing care                                 1.0
           Decrease in Medicare Part A                                     (1.1)
           Decrease in Title IV-E - Child Placement                        (5.3)
           Decrease in TANF                                                (0.5)
           Decrease in Title IV-E - Adoption                               (0.5)


       State revenues increased by $8.5 million for the reasons detailed below (in millions):

           Decrease in Crime Lab and Criminal Justice subsidies             $(1.8)
           Decrease in Act 315 Health Department funding                     (0.7)
           Increase in Kane’s Intergovernmental Transfers Program
             performance bonuses                                              3.2
           Increase in skilled nursing care                                   0.8
           Increase in Medicaid Paid Prescriptions                            0.3
           Increase in Act 148 Special Grant Incentives                      10.1
           Decrease in Act 148 CYF services                                  (3.5)




                                              41
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

        Local units revenues increased $6.1 million as the County received $6 million in repaid
loans from Redevelopment Authority’s (RAAC) Economic Development Fund Revolving Loan
Program.

       Charges for services increased $1.5 million for the following reasons (in millions):

           Increase in general government revenue                           $0.3
           Increase in reimbursements for Airport security                   0.3
           Decrease in golf fees                                            (0.2)
           Increase in swimming fees                                         0.2
           Increase due to new ski rental and lesson fees                    0.1
           Increase in ice skating fees                                      0.1
           Decrease in patient income                                       (0.6)
           Decrease in collections from guardians and parents               (0.4)
           Increase in Private/Commercial insurance at Kane                  1.9
           Decrease in miscellaneous receipts as Kane had no
             MA Disproportionate Share income                               (0.5)

      Interest earnings decreased $0.4 million as cash balances dwindled and interest rates
dropped throughout the year.

       Miscellaneous revenue decreased $2.6 million, as 2009 revenues for insurance
reimbursements ($1.0 million), unclaimed property ($1.2 million) and sales of property at Kane
($0.4 million) did not occur in 2010.

        Other financing sources - net totaled $31.1 million in 2010 for the following reasons (in
millions):

           Transfer of available Debt Service fund balance                  $41.5
           Reimbursement of capital assets from Capital Projects Fund          0.5
           Excess Debt Service funds                                           0.4
           Interdepartmental transfer agreements                               0.7
           Matching requirement and County Grant deficit funding              (7.2)
           Matching requirement for Human Service grants                      (4.8)

       Other financing sources - net in 2009 were $12.1 million, resulting in 2010 having an
increase of $19.0 million.




                                               42
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

        The following is an analysis of the General Fund expenditures increase of $8.4 million.

         General government expenditures decreased by $1.7 million for the following reasons
(in millions):

        No 2010 Capital lease cost                                         $(7.7)
        Non-departmental
            Decrease in Voluntary Separation payments                        (0.4)
            Transfer of lease payments                                       (0.5)
        Salary and fringe benefits increases:
            Courts                                                           2.5
            Administrative Services                                          0.7
            Public Defender                                                  0.7
            District Attorney                                                0.7
            Sheriff                                                          0.7
            Court Records                                                    0.3
            Treasurer’s Office                                               0.3
        Increase in Property Assessment postage/temps                        0.8
        Increase in Medical Examiner lease payments                          0.5

        Public safety expenditures rose by $2.5 million as salary and fringe benefits increased
at the Jail ($0.9 million) and County Police ($1.0 million). In addition, the Jail’s services
increased $0.3 million and supplies increased $0.1 million.

        Public works expenditures increased $0.9 million, as rock salt purchases increased $0.8
million and salaries and fringe benefits of maintenance rose $0.8 million. These increases
were offset by transfers of eligible costs to the Celebration of Lights project.

         Health and welfare expenditures increased $6.0 million. Kane Regional Centers salaries
and fringe benefits rose $1.6 million and the Health Department’s Environmental Health
Services increased $0.3 million. Medical costs for inmates rose $1.7 million and CYF’s
expenditures for foster care payroll, legal council and payment to providers increased $2.2
million.

       Culture and recreation expenditures increased $0.7 million as salary and fringe benefits
rose $0.1 million, material cost for rock salt increased $0.2 million and unexpected legal
settlements of $0.6 million.

        Economic development’s $0.6 million decrease in expenditures was related to a $0.7
million return of excess escrowed funds used to pay debt service for RAAC’s Economic
Development Fund.

        Debt service increased $0.2 million for the cost of issuance and interest on 2010’s
TRAN.




                                               43
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

        The Human Service Grants Funds had no significant change in net fund balances in
2010. This occurs because grants are generally expenditure driven and capped at mandated
spending levels. The County Grants Fund $1.7 million increase in fund balance is attributed to
the deficit in the Enhanced 911 Program ($3.8 million) and Court program deficits ($4.0
million) being funded. It should be noted the County received decreased Human Service Grant
revenues of $103.8 million and increased County Grant revenues of $16.2 million in 2010. The
decrease in Human Service Grants is directly attributed to the State paying providers for
certain services rather than the County. The increase in County Grant revenues was attributed
to $5.2 million in Homeland Security Act funds, CDBG increases of $3.7 million, Allegheny
County Economic Development Energy Efficiency grants of $2.0 million and HPRP funds of
$1.4 million.

        The Capital Projects fund balance decreased by $80.8 million in 2010. The decrease in
fund balance results from using $41.5 million in PennDot reimbursements to pay expenditures
in the Debt Service fund and expending $46.2 million of prior year bond proceeds on current
projects. In addition, bond proceeds of $9.4 million partially offset both the deficiency of
revenues over expenditures of $46.2 million and net operating transfers out of $34.5 million.

       Other governmental funds (Transportation, Liquid Fuel and Debt Service) fund
balances only decreased $0.6 million due to the transfer of all available fund balance in the
Debt Service Fund, $41.9 million, to the General Fund.

       The following chart graphically depicts the total revenues received and expenditures
incurred by fund for the year ended December 31, 2010:
                       Governmental Fund Revenues and Expenditures
                                                          (in millions)
                                      Revenues   Expenditures   Other Financing Sources


             $700.0

             $600.0

             $500.0

             $400.0

             $300.0

             $200.0

             $100.0

                $0.0

             -$100.0
                       General Fund        County         Human           Capital            Other
                                         Grants Fund      Service      Projects Fund      Governmental
                                                        Grants Fund                          Funds




     As shown, the majority of revenues and expenditures occurred in the General Fund and
Human Service Grants Fund in 2010.



                                                          44
                       MANAGEMENT’S DISCUSSION AND ANALYSIS

       The following table presents the County’s previously analyzed change in governmental
fund balances for the year ended December 31, 2010:

                                   Change in Governmental Fund Balances
                                For the fiscal year ended December 31, 2010
                                             (rounded in millions)

            Fund Balance                                             Human
                                                        County       Service       Capital           Other
                               General                  Grants       Grants       Projects        Governmental
            Beginning 1/1/10 $   20.2                    26.8            -           63.4                  6.2
            Net Change            0.2                     1.7           0.3         (80.7)               (0.6)
            Ending 12/31/10 $    20.4                    28.5           0.3         (17.3)                 5.6


           The County has issued bonds in 2011 (Note 16) to eliminate the Capital Projects fund
deficit.

       The following chart illustrates the Governmental Fund fund balances at December
31, 2010:

                                         Governmental Fund Balances
                                            at December 31, 2010
                                                 (in millions)
                                           Restricted    Committed    Assigned   Unassigned


               $30.0


               $20.0


               $10.0


                $0.0


              -$10.0


              -$20.0


              -$30.0
                        General Fund   County Grants     Human Service Capital Projects          Other
                                           Fund           Grants Fund       Fund              Governmental
                                                                                                 Funds




                                                             45
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

            The General Fund is the chief operating fund of the County. At December 31, 2010,
the total fund balance in the General Fund was $20.4 million. The unassigned fund balance
was $19.5 million, the same as the previous year. As a measure of the General Fund’s
liquidity, it may be useful to compare unrestricted fund balance to total fund revenues.
Unrestricted 2010 fund balance represents 3.3% of total fund revenues and unassigned fund
balance was 3.1% of revenues in 2009.

    2010 GENERAL FUND BUDGETARY HIGHLIGHTS AND NEXT YEAR’S BUDGET

       The difference between the 2010 adopted and the 2010 final amended General Fund
budget of $670.8 million, net of $0.7 million in reappropriated 2009 encumbrances, was an
increase of $1.1 million.

       Numerous budget transfers were approved by County Council throughout the year to
increase some and reduce other departments’ appropriations to arrive at the final budget. The
major transfers to provide appropriations were $2.3 million to Non-departmental for
unrecovered healthcare costs and constable services, $0.6 million to Public Defender’s Office,
$0.8 million to Property Assessment, $1.0 million to the Courts and $1.2 million to Public
Works’ Maintenance division for salaries and fringe benefits.

        The total increase in budgeted expenditures was to be financed by $30 million
transferred in from the Debt Service Fund. This transfer would be made possible by using $30
million in Penn Dot reimbursements from the Capital Projects fund to pay Debt Service
expenditures. For 2010 the actual transfers were $41.5 million from the Capital Projects Fund
to the Debt Service Fund and $41.9 million from the Debt Service Fund to the General Fund.

       State and Federal revenues for 2010 were overestimated by $24.6 million, however
Health and Welfare expenditures were $13.2 million under budget. Sales tax revenues were
$0.6 million over budget, but Gaming tax collections were overestimated by $1.2 million.

      In addition, in 2010 the County used RAAC loan proceeds from the Economic
Development Fund of $6.0 million and the above one time Debt Service transfer to cover
expenditures in the General Fund.

       The 2011 General Fund budget was adopted at $664.2 million or 0.2% lower than the
previous year’s final budget, however $9.6 million in tax receivable sales and $4.0 million for
non-profit donations are needed to balance the budget. In addition, based on 2010 actual
revenues, some areas which were under budget in 2010, such as federal, state, and gaming
tax revenues, may come in under budget in 2011 as well.

       All departments are expected and budgeted to reduce spending in 2011.




                                               46
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

                      CAPITAL ASSET AND DEBT ADMINISTRATION

CAPITAL ASSETS:

       The County’s investment in capital assets at December 31, 2010, net of accumulated
depreciation, amounted to $656.7 million. Capital assets consist primarily of land, land
improvements, construction in progress, buildings, capital lease, leasehold improvements,
equipment and infrastructure. The following is a summary of capital assets at December 31,
2010 and 2009:

                                    Summary of Capital Assets

                                    Balance at            Balance at
                                 December 31, 2010    December 31, 2009       Increase
     Land                  $           24,373,153            24,373,153            -
     Land improvements                  8,192,901             8,192,901            -
     Construction in
           progress                    73,250,586                48,735,755   24,514,831
     Buildings                        398,653,111               391,000,275    7,652,836
     Infrastructure                   391,831,794               390,825,195    1,006,599
     Furniture and
           other equipment            112,751,270                80,692,962   32,058,308
     Total capital assets           1,009,052,815               943,820,241   65,232,574

     Less accumulated
           depreciation for:
     Land improvements                  5,897,952                 5,609,513      288,439
     Buildings                        161,436,938               152,675,001    8,761,937
     Infrastructure                   140,494,339               132,429,896    8,064,443
     Furniture and
           other equipment             44,497,105                35,979,379    8,517,726
     Total accumulated
           depreciation               352,326,334               326,693,789   25,632,545
     Total                   $        656,726,481               617,126,452   39,600,029




        The increases in total capital assets of $65.2 million was due to an increase in
construction in progress of $24.5 million, buildings of $7.6 million, infrastructure of $1.0
million, and furniture and other equipment of $32.1 million. Furniture and other equipment’s
increase includes adjustments for items not previously recorded and depreciated. Major
capital projects in progress during the current fiscal year included the following:

          Construction continued on the Rankin Bridge, this project is expected to be
          completed by April 2011. Construction in progress increased approximately $16.0
          million.
          Construction continued on the Duquesne/McKeesport Flyover Bridge, this project is
          expected to be completed by September 2011. Construction in progress increased
          $2.1 million.




                                              47
                MANAGEMENT’S DISCUSSION AND ANALYSIS

           The North Park Lake Sediment Removal Project continued in 2010 and is expected
           to be completed by August 2011. Construction in progress increased $4.5 million.
           Construction continued on Jacks Run Bridge and is expected to be completed in
           July 2011. Construction in progress increased approximately $4.9 million.

      Additional information on the County’s capital assets can be found in Note 5 on pages
135 and 136 of this report.

LONG-TERM DEBT:

        At December 31, 2010, the County had $655.8 million of bond debt outstanding. This
was an decrease of $33.3 million, or 4.8%, from the previous year. The following chart details
activity related to general obligation bonds during 2010:


                     Summary of General Obligation Bond Activity

   Beginning Balance at 1/1/2010                                    $     689,125,322
   Accretion and Component Unit
   Adjustments                                                               1,102,929

   Debt Issued                                                              9,385,000
   Less: Principal Payments                                               (41,349,965)
   General Obligation Bonds/Notes                                         658,263,286
   Less: Amortization of Premium/Discount                                  (2,438,420)
   Ending Balance at 12/31/2010                                     $     655,824,866



       On November 30, 2010 the County issued Taxable General Obligation Qualified Energy
Conservation Bonds, Series C-64 in the amount of $9,385,000. The proceeds of the Series C-
64 Bonds were used to: (1) finance various projects of the County’s Capital Budget and (2)
pay certain costs related to the issuance of the Series C-64 Bonds.

      Additional information on the County’s long-term debt can be found in Note 8 on pages
149-154 of this report.




                                             48
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

BOND RATING:

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

                CONTACTING THE COUNTY’S FINANCIAL MANAGEMENT


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

                                 Office of the Controller
                                 County of Allegheny, Pennsylvania
                                 Room 104 Courthouse
                                 436 Grant Street
                                 Pittsburgh, PA 15219-2498




                                               49
          BASIC FINANCIAL STATEMENTS
GOVERNMENT - WIDE FINANCIAL STATEMENTS
GOVERNMENTAL FUND FINANCIAL STATEMENTS
PROPRIETARY FUND FINANCIAL STATEMENTS
FIDUCIARY FUND FINANCIAL STATEMENTS
COMPONENT UNIT FINANCIAL STATEMENTS
NOTES TO BASIC FINANCIAL STATEMENTS
                                                                               Exhibit 1 (Page 1 of 3)

                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                                     Statement of Net Assets
                                       December 31, 2010




                                                               Governmental            Component
                                                                 Activities               Units



       Assets

Cash and short-term investments (note 3)                   $      64,656,950           118,504,118
Time deposits and other investments (note 3)                           -                 3,973,409
Restricted/noncurrent cash and short-term
   investments (notes 3)                                          38,478,207           252,433,171
Delinquent property taxes receivable, net (note 4)                 8,024,987                 -
Liened property taxes receivable, net (note 4)                    15,010,217                 -
Sales tax receivable (note 4)                                      7,398,566                 -
Due from other governments, net (note 4)                         124,595,622            57,831,974
Due from component units (note 9)                                 10,714,100                 -
Due from primary government (note 9)                                   -                 1,471,804
Loans receivable (note 4)                                              -                29,275,516
Alcoholic beverage tax receivable                                  2,215,203                 -
Rental vehicle tax receivable                                        277,599                 -
Accounts receivable (note 4):
   Trade                                                               -                 8,028,021
   Other                                                          27,225,129            14,611,935
Accrued penalty and interest receivable                              249,613                 -
Accrued interest and dividends receivable                             24,369                 3,993
Inventory                                                              -                18,486,360
Other assets                                                      16,327,477            10,018,217
Land (note 5)                                                     24,373,153           249,580,616
Land improvements (note 5)                                         2,294,949                 -
Construction in progress (note 5)                                 73,250,586           443,089,786
Infrastructure, net of accumulated depreciation (note 5)         251,337,455                 -
Buildings and equipment, net of
   accumulated depreciation (note 5)                             305,470,338          1,654,943,472
Capital lease investments (note 3)                                     -                 94,517,711
Deferred outflow for derivative instrument (note 14)               5,494,517                  -
Net Pension Asset (note 10)                                            -                 10,098,104

       Total assets                                        $     977,419,037
                                                                           0          2,966,868,207




                                                      53
Exhibit 1 (Page 2 of 3)

                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                             Statement of Net Assets
                                               December 31, 2010




                                                                   Governmental     Component
                                                                     Activities        Units



          Liabilities and Net Assets


   Liabilities:
      Vouchers payable                                         $      22,275,603     54,224,267
      Accrued interest payable                                         4,321,255        780,234
      Accrued payroll                                                 12,763,874     18,239,367
      Payroll withholdings                                               493,350          -
      Due to component units (note 9)                                  8,171,758          -
      Due to primary government (note 9)                                   -         10,714,100
      Due to other governments                                             1,028      2,554,339
      Amount due airlines                                                  -            936,049
      Accrued liabilities                                             85,398,882      9,112,445
      Retainage payable                                                4,631,264          -
      Tax refunds payable                                                659,156          -
      Unearned revenue
        Current                                                      101,111,194     40,470,453
        Non-current                                                        -         39,126,317
      Deferred tuition and student deposits                                -          3,074,241
      Accrued state mental hospital costs                                113,460          -
      Accrued unemployment compensation                                  267,000          -
      Matured bonds payable                                               56,266          -
      Other liabilities
        Current                                                           -           8,401,142
        Non-current (note 10)                                           336,716         764,462
      Other post employment benefits (note 11)
        Non-current                                                   18,750,694    134,211,668
      Accrued pension costs
        Current contributions                                          1,607,278          -
        Non-current (note 10)                                        112,181,848          -
      Accrued workers' compensation (notes 6 and 8)
        Current                                                        4,788,538          -
        Non-current                                                    1,512,981        183,921
      Compensated absences (notes 1 and 8)
        Current                                                          326,269      3,085,992
        Non-current                                                    7,333,597          -
      General obligation/revenue bonds/notes/
        leases (notes 8 and 14)
        Current                                                       39,906,433    183,689,174
        Non-current                                                  622,470,090    758,768,107
      Reserve for claims and settlements (note 6)
        Current                                                        2,500,000     26,895,588
        Non-current                                                      682,579      5,557,659
      Derivative instruments liability: (note 14)
        Non-current                                                    5,494,517     38,212,484

         Total liabilities                                         1,058,155,630
                                                                               0   1,339,002,009




                                                      54
                                                                                Exhibit 1 (Page 3 of 3)

                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                        Statement of Net Assets
                                          December 31, 2010




                                                               Governmental            Component
                                                                 Activities               Units


Net assets (deficit): (note 1)
   Invested in capital assets, net of related debt                28,662,998          1,660,032,258
   Restricted for:
     County grants                                                28,552,341                  -
     Human service grants                                            310,924                  -
     Capital projects                                                  -                 26,950,089
     Debt service                                                      -                 56,965,251
     Liquid fuel                                                     476,077                  -
     Transportation                                                5,158,730                  -
     Scholarship and tuition funds                                     -                    349,700
     Other student funds                                               -                  4,599,025
     Other projects                                                    -                 43,573,875
     Permanently                                                       -                    836,767
   Unrestricted net assets (deficit)                            (143,897,663)
                                                                           0           (165,440,767)

       Total net assets                                          (80,736,593)
                                                                           0          1,627,866,198

       Total liabilities and net assets                    $     977,419,037          2,966,868,207



See accompanying notes to financial statements.




                                                     55
                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                                       Statement of Activities
                           Years Ended December 31, 2010 or June 30, 2010




                                                                                                             Program Revenues
                                                                                                                Operating
                                                                                   Charges for                  Grants and      Capital
Functions/Programs                                         Expenses                 Services                   Contributions      Cont


Primary government:
    General government                             $      256,858,694               46,725,554                   42,441,100           1
    Public safety                                         121,367,760               17,521,407                   33,070,059
    Public works                                           66,509,806                  343,400                   12,778,270          38
    Transportation                                         36,283,608                    -                       32,862,922
    Health and welfare                                    856,172,605               32,979,556                  774,384,262
    Culture and recreation                                 19,871,911                4,774,538                    7,275,346
    Education                                              22,603,860                    -                          106,198
    Economic development                                   45,699,609                2,364,980                   38,632,513
    Economic opportunity                                   38,243,840                    -                       38,297,208
    Interest on long-term debt                             29,076,616                    -                            -
Total primary government                                1,492,688,309              104,709,435                  979,847,878          39


Component units:
  Allegheny County Airport Authority                $     180,805,622              137,266,103                        -             40
  Port Authority of Allegheny County                      517,673,228               93,220,190                  191,507,990        207
  Community College of Allegheny County                   136,553,734               37,472,870                   80,780,859          2
  Redevelopment Authority of Allegheny County              36,917,171                3,800,675                   31,193,676
  Allegheny County Industrial Development Authority           607,986                  414,361                      142,872
  Nonmajor Component Units                                  8,173,473                1,759,943                    5,578,131           1
Total component units                              $      880,731,214              273,934,142                  309,203,528        251



                                                        General Revenues:
                                                          Property taxes, levied for general purpose
                                                          Property taxes, levied for debt service
                                                          Sales taxes
                                                          Gaming local share assessment
                                                          Payment from Allegheny County
                                                          Interest and investment earnings
                                                          Swap termination gain
                                                          Gaming Act revenue
                                                         Net decrease in the fair value of investments
                                                         Loss on sale of capital assets
                                                         Transfer to County
                                                         Investment loss on embedded derivative instrument
                                                          Miscellaneous
                                                             Total general revenues
                                                                 Change in net assets
                                                        Net assets - beginning of year, restated
                                                        Net assets - end of year




See accompanying notes to financial statements.




                                                        56
                                                                                                                Exhibit 2




                                                                             Net (Expense) Revenue
                         Program Revenues                                   and Changes in Net Assets
                            Operating
s for                       Grants and      Capital Grants and       Primary Government         Component
ces                        Contributions      Contributions                  Total                 Units



25,554                       42,441,100           1,825,737                (165,866,303)                -
21,407                       33,070,059               -                     (70,776,294)                -
43,400                       12,778,270          38,113,498                 (15,274,638)                -
 -                           32,862,922               -                      (3,420,686)                -
79,556                      774,384,262               -                     (48,808,787)                -
74,538                        7,275,346               -                      (7,822,027)                -
 -                              106,198               -                     (22,497,662)                -
64,980                       38,632,513               -                      (4,702,116)                -
 -                           38,297,208               -                          53,368                 -
 -                                -                  44,441                 (29,032,175)                -
09,435                      979,847,878          39,983,676                (368,147,320)                -




66,103                            -             40,589,010                        -               (2,950,509)
20,190                      191,507,990        207,132,168                        -              (25,812,880)
72,870                       80,780,859          2,344,372                        -              (15,955,633)
00,675                       31,193,676              -                            -               (1,922,820)
14,361                          142,872              -                            -                  (50,753)
59,943                        5,578,131          1,343,584                        -                  508,185
34,142                      309,203,528        251,409,134                        -              (46,184,410)




 ral purpose                                                     $          205,723,613                -
 service                                                                     62,028,968                -
                                                                             40,904,309                -
                                                                              4,839,223                -
 y                                                                                -               57,965,756
 gs                                                                             710,231           11,528,924
                                                                                  -                5,075,000
                                                                                  -               14,600,000
of investments                                                                    -                 (491,546)
                                                                                  -                 (301,920)
                                                                                  -               (6,715,841)
 derivative instrument                                                            -              (14,963,726)
                                                                              1,968,643            1,880,245
                                                                            316,174,987           68,576,892
                                                                            (51,972,333)          22,392,482
 stated                                                                     (28,764,260)       1,605,473,716
                                                                 $          (80,736,593)       1,627,866,198




                                                                             57
                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                 Balance Sheet
                                              Governmental Funds
                                              December 31, 2010




                                                                                  County      Human Services    Capital
                                                                   General      Grants Fund    Grants Fund     Projects

      Assets


Cash and short-term investments (note 3)                  $             -        32,569,492      22,755,526     6,666,00
Restricted cash and short-term investments (notes 3)                    -         1,390,935      35,836,005         -
Delinquent property taxes receivable, net (note 4)                  6,141,594         -               -             -
Liened property taxes receivable, net (note 4)                     11,789,735         -               -             -
Sales tax receivable (note 4)                                       7,398,566         -               -             -
Due from other funds (note 9)                                      48,351,510     7,135,480       1,191,966    28,908,13
Due from other governments, net of $6,473,419 allowance
   for doubtful accounts in the General Fund                       54,125,565    16,635,404      36,548,315    17,286,33
Due from component units (note 9)                                   7,492,082         -           3,222,018         -
Alcoholic beverage tax receivable                                       -             -               -             -
Rental vehicle tax receivable                                           -             -               -             -
Accounts receivable:
   Other                                                           15,301,276     2,244,326       9,679,527        -
Accrued penalty and interest receivable                               195,521         -               -            -
Accrued interest and dividends receivable                               5,720         -               5,950       12,45


      Total assets                                        $    150,801,569       59,975,637     109,239,307    52,872,92



       Liabilities and Fund Balance


Liabilities:
   Vouchers payable                                       $        18,271,663     2,285,987         472,234     1,121,99
   Accrued payroll                                                 10,267,403     1,837,670         658,801         -
   Payroll withholdings                                               493,350         -               -             -
   Due to other funds (note 9)                                     37,950,340     2,192,338       2,183,369    42,843,56
   Tax refunds payable                                                503,232         -               -             -
   Accrued liabilities                                             36,541,072     3,933,096      26,747,203    18,103,13
   Accrued interest payable                                             -             -               -             -
   Due to component units (note 9)                                  4,403,200       242,324          36,280     3,489,95
   Retainage payable                                                    -                61           -         4,631,20
   Due to other governments                                             1,028         -               -             -
   Deferred revenue                                                19,600,307    20,707,954      78,734,262         -
   Accrued pension costs                                            1,291,350       232,530          83,398         -
   Accrued state mental hospital costs                                113,460         -               -             -
   Accrued workers' compensation (note 6)                             740,431        10,600             656         -
   Accrued unemployment compensation                                  235,169        19,651          12,180         -
   Matured bonds payable                                                -             -               -             -

      Total liabilities                                        130,412,005       31,462,211     108,928,383    70,189,84




                                                              58
                                                                 Exhibit 3 (Page 1 of 2)




                                 Other          Total
Human Services    Capital     Governmental   Governmental
 Grants Fund     Projects        Funds          Funds




   22,755,526     6,666,004     2,665,928       64,656,950
   35,836,005         -         1,251,267       38,478,207
        -             -         1,883,393        8,024,987
        -             -         3,220,482       15,010,217
        -             -             -            7,398,566
    1,191,966    28,908,133    41,710,163      127,297,252

   36,548,315    17,286,338         -          124,595,622
    3,222,018         -             -           10,714,100
        -             -         2,215,203        2,215,203
        -             -           277,599          277,599

    9,679,527        -              -           27,225,129
        -            -             54,092          249,613
        5,950       12,450            249           24,369


  109,239,307    52,872,925    53,278,376      426,167,814




      472,234     1,121,993        19,449       22,171,326
      658,801         -             -           12,763,874
        -             -             -              493,350
    2,183,369    42,843,562    42,306,296      127,475,905
        -             -           155,924          659,156
   26,747,203    18,103,135         -           85,324,506
        -             -             1,759            1,759
       36,280     3,489,954         -            8,171,758
        -         4,631,203         -            4,631,264
        -             -             -                1,028
   78,734,262         -         5,103,875      124,146,398
       83,398         -             -            1,607,278
        -             -             -              113,460
          656         -             -              751,687
       12,180         -             -              267,000
        -             -            56,266           56,266

  108,928,383    70,189,847    47,643,569      388,636,015




                                                            59
                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                 Balance Sheet
                                              Governmental Funds
                                              December 31, 2010




                                                                            County       Human Services
                                                             General      Grants Fund     Grants Fund




Fund Balances: (note 1H)
    Restricted for:
      General government                                         -         10,507,064            -
      Public safety                                              -          1,152,501            -
      Transportation                                             -              -                -
      Health and welfare                                         -         12,814,092          310,924
      Culture and recreation                                     -            167,332            -
      Economic development                                       -          2,464,099            -
      Capital projects                                           -              -                -
      Road maintenance expenditures                              -              -                -
    Committed to:
      General government                                         -             21,628            -
      Health and welfare                                         -            958,818            -
      Culture and recreation                                     -             44,744            -
      Economic development                                       -             87,179            -
    Assigned to:
      General government                                       255,185          -                -
      Public safety                                             32,166          -                -
      Public works                                              11,896            950            -
      Health and welfare                                       585,094          -                -
      Culture and recreation                                    28,501        333,934            -
    Unassigned:                                             19,476,722        (38,915)           -        (

       Total fund balances                                  20,389,564     28,513,426          310,924    (

       Total liabilities and fund balances             $   150,801,569     59,975,637      109,239,307




See accompanying notes to financial statements.




                                                     60
                                                                Exhibit 3 (Page 2 of 2)




                                   Other          Total
Human Services     Capital      Governmental   Governmental
 Grants Fund      Projects         Funds          Funds




        -             -               -           10,507,064
        -             -               -            1,152,501
        -             -           5,158,730        5,158,730
      310,924         -               -           13,125,016
        -             -               -              167,332
        -             -               -            2,464,099
        -         7,309,286           -            7,309,286
        -             -             476,077          476,077

        -              -              -              21,628
        -              -              -             958,818
        -              -              -              44,744
        -              -              -              87,179

        -              -              -              255,185
        -              -              -               32,166
        -              -              -               12,846
        -              -              -              585,094
        -              -              -              362,435
        -        (24,626,208)         -           (5,188,401)

      310,924    (17,316,922)     5,634,807       37,531,799

  109,239,307    52,872,925      53,278,376      426,167,814




                                                    61
                                                                                                          Exhibit 3 - A

                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                      Reconciliation of the Governmental Funds
                                     Balance Sheet to the Statement of Net Assets
                                                 December 31, 2010




Total Fund Balance - Governmental Funds                                                                   $    37,531,799

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

     Capital assets, including infrastructure and construction in progress,
     used in governmental activities are not current financial resources
     and therefore, are not reported as assets in governmental funds.                                         656,726,481

     Property taxes receivable will be collected in future, but are not available
     to pay for the current period's expenditures and therefore,
     are deferred in the Fund statements.                                                                      23,035,204

     Governmental funds report the effect of issuance costs, discounts,
     and similar items when debt is first issued, whereas these amounts are
     deferred and amortized in the statement of activities.                                                    16,327,477

     Net pension obligation and other post employment benefits are reflected
     on the Statement of Net Assets, but are not considered a current
     expenditure for the Fund statements.                                                                     (130,932,542)

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

                                    Voluntary separation                              $       (336,716)
                                    Accrued workers' compensation                           (5,549,832)
                                    Compensated absences                                    (7,659,866)
                                    GO Bonds/Revenue Bonds/Notes/Leases                   (662,376,523)
                                    Accrued interest on bonds                               (4,319,496)
                                    Claims and Settlements                                  (3,182,579)       (683,425,012)

Total Net Assets - Governmental Activities                                                                $ (80,736,593)




See accompanying notes to financial statements.




                                                                 63
                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                   Statement of Revenues, Expenditures and Changes in Fund Balances
                                         Governmental Funds
                                    Year Ended December 31, 2010




                                                                    County        Human Services       Capital
                                                  General         Grants Fund      Grants Fund        Projects


Revenues:
  Property taxes (notes 1 and 4)            $    202,932,512            -                -               -
  Sales and use tax (note 4)                      40,904,309            -                -               -
  Alcoholic beverage tax                               -                -                -               -
  Rental vehicle tax                                   -                -                -               -
  Gaming local share assessment                    4,839,223            -                -               -
  Licenses and permits                             1,919,316            -                -               -
  Federal revenues                                89,232,548       69,576,060       91,779,682      33,101,559
  State revenues                                 182,957,577       31,889,525      441,972,379       6,837,676
  Local governmental units revenues               23,295,014            -                -               -
  Charges for services and facilities             68,272,002       23,427,950            -               -
  Fines and forfeitures                            4,787,652            -                -               -
  Interest earnings                                  271,202           30,303          181,080         125,391
  Miscellaneous                                    4,189,548       12,243,084
                                                                            0        3,455,754         108,916


       Total revenues                            623,600,903      137,166,922      537,388,895      40,173,542


Expenditures:
  Current:
    General government                           165,043,845       45,824,443            -               -
    Public safety                                 81,383,463       33,609,844            -               -
    Public works                                  25,869,178        2,846,643            -               -
    Transportation                                     -                -                -               -
    Health and welfare                           343,550,367       18,316,262      504,271,164           -
    Culture and recreation                        10,150,132          818,031            -               -
    Education                                     22,488,000          115,860            -               -
    Economic development                           5,847,833       39,837,249            -               -
    Economic opportunity                               -                -           38,243,840           -
  Capital projects                                     -                -                -          86,214,329
  Debt Service (note 7):
    Principal                                           -                -                -               -
    Interest                                          126,389            -                -               -
    Cost of issuance                                   40,450            -                -            183,886


       Total expenditures                        654,499,657      141,368,332      542,515,004      86,398,215


       Deficiency of revenue
         over expenditures                       (30,898,754)       (4,201,410)       (5,126,109)   (46,224,673)




                                                 64
                                                                 Exhibit 4 (Page 1 of 2)




                                   Other           Total
Human Services      Capital     Governmental    Governmental
 Grants Fund       Projects        Funds           Funds



       -              -           61,961,346      264,893,858
       -              -                -           40,904,309
       -              -           27,359,274       27,359,274
       -              -            5,436,982        5,436,982
       -              -                -            4,839,223
       -              -                -            1,919,316
  91,779,682     33,101,559            -          283,689,849
 441,972,379      6,837,676        4,471,527      668,128,684
       -              -               44,441       23,339,455
       -              -                -           91,699,952
       -              -                -            4,787,652
     181,080        125,391          102,255          710,231
   3,455,754        108,916           66,666       20,063,968


 537,388,895     40,173,542       99,442,491    1,437,772,753




       -              -                -          210,868,288
       -              -                -          114,993,307
       -              -            4,120,000       32,835,821
       -              -           27,668,700       27,668,700
 504,271,164          -                -          866,137,793
       -              -                -           10,968,163
       -              -                -           22,603,860
       -              -                -           45,685,082
  38,243,840          -                -           38,243,840
       -         86,214,329            -           86,214,329

        -              -          41,387,500       41,387,500
        -              -          28,402,581       28,528,970
        -           183,886            -             224,336


 542,515,004     86,398,215      101,578,781    1,526,359,989



   (5,126,109)   (46,224,673)     (2,136,290)     (88,587,236)




                                                           65
                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                   Statement of Revenues, Expenditures and Changes in Fund Balances
                                         Governmental Funds
                                    Year Ended December 31, 2010




                                                                       County        Human Services      Capital
                                                      General        Grants Fund      Grants Fund       Projects




Other financing sources (uses):
  Issuance of general obligation bonds (note 8)             -               -                -          9,385,000
  Premium on TRAN issuance                                 84,500           -                -              -
  Transfers in (note 9)                                43,064,149       8,788,516        5,652,213          -
  Transfers out (note 9)                              (12,011,439)     (2,854,548)        (229,557)   (43,959,258)


       Total other financing
         sources (uses)                               31,137,210        5,933,968        5,422,656    (34,574,258)

       Net change in fund balances                         238,456      1,732,558         296,547     (80,798,931)

Fund balances at beginning of year                    20,151,108      26,780,868           14,377     63,482,009

Fund balances at end of year                      $   20,389,564      28,513,426          310,924     (17,316,922)



See accompanying notes to financial statements.




                                                      66
                                                                 Exhibit 4 (Page 2 of 2)




                                   Other           Total
Human Services      Capital     Governmental    Governmental
 Grants Fund       Projects        Funds           Funds




        -          9,385,000           -            9,385,000
        -              -               -               84,500
    5,652,213          -          47,567,851      105,072,729
     (229,557)   (43,959,258)    (46,017,927)    (105,072,729)



    5,422,656    (34,574,258)      1,549,924        9,469,500

     296,547     (80,798,931)       (586,366)     (79,117,736)

      14,377     63,482,009        6,221,173      116,649,535

     310,924     (17,316,922)      5,634,807       37,531,799




                                                           67
Exhibit 4 - A

                                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                           Reconciliation of the Statement of Revenues, Expenditures
                             And Changes in Fund Balance of Governmental Funds
                                          To the Statement of Activities
                                         Year Ended December 31, 2010




Net Change in Fund Balance - Governmental Funds                                                             $       (79,117,736)

   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, net of deletions,
     by which capital outlays exceeded depreciation in the current period:

                                                         Capital outlays                     $ 66,329,775
                                                         Less: Depreciation expense          (26,729,746)           39,600,029



     Some taxes will not be collected for several months after the County's year end,
     they are not considered as "available" revenues in the governmental Fund
     statements. Deferred revenues decreased by this amount during the year.                                         2,858,723

     The issuance of long-term obligations (e.g. bonds, leases, loans) provides
     current financial resources to governmental funds, while the repayment of
     the principal of long-term obligations consumes the current financial resources of
     governmental funds. Neither transaction, however, has any effect on net assets.
     Also, governmental funds report the effect of issuance costs, premiums, discounts,
     and similar items when debt is first issued, whereas these amounts are deferred and
     amortized in the statement of activities. This amount is the net effect of these
     differences in the treatment of long-term obligations and related items.                                       33,286,145

     Net pension obligation and other post employment benefits are reflected
     on the Statement of Financial Position, but are not considered a current
     expenditure for the Fund statements.                                                                           (46,502,495)


     Interest accretion on zero coupon bonds is reflected as interest expense on the
     government-wide statements but is not a use of current financial resources for the
     governmental fund statements.                                                                                   (1,102,929)

     Interest on long-term obligations in the statement of activities differs from the
     amount reported in the governmental funds because interest is recognized as an
     expenditure in the funds when it is due, and thus requires the use of current
     financial resources. In the statement of activities, interest expense is recognized
     as the interest accrues, regardless of when it is due. The difference between the
     interest accrued in the statement of activities and the amount due is shown here.                                 778,569

     In the statement of activities, certain operating expenses - accumulated
     employee benefits (workers' compensation, sick days and voluntary separation,
     claims and settlements) are measured by the amounts earned during the year.
     In the governmental funds, however, expenditures for these items are measured
     by the amount of financial resources used. This amount represents the
     difference between the amount earned versus the amount used.                                                    (1,772,639)

Change in Net Assets of Governmental Activities                                                                 $ (51,972,333)



See accompanying notes to financial statements.




                                                                                                                $             -
                                                               68
                                                                            Exhibit 5

                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                             Statement of Net Assets
                                 Proprietary Fund
                               December 31, 2010




                                                  Governmental Activities
                                                  Risk Management Fund


       Assets
       _____

Current assets:
 Cash and short-term investments                  $           -
 Due from other funds:
     General fund                                           578,183

        Total assets                              $         578,183

       Liabilities and Net Assets
       ____________________

Current liabilities:
 Vouchers payable                                 $         104,277
 Due to other funds:
     General Fund                                           399,530

                                                            399,530

 Accrued liabilities                                         74,376
        Total liabilities                                   578,183

Net assets:
 Unrestricted net assets                                      -

        Total liabilities and net assets          $         578,183



See accompanying notes to financial statements.




                                           69
Exhibit 6

                          COUNTY OF ALLEGHENY, PENNSYLVANIA
              Statement of Revenues, Expenses, and Changes in Fund Net Assets
                                     Proprietary Fund
                              Year Ended December 31, 2010




                                                              Governmental Activities
                                                              Risk Management Fund

            Operating revenues:
             Contribution - employee                          $         329,578
             Contribution - employer                                  1,603,777
                Total operating revenues                              1,933,355


            Operating expenses:
             Insurance claims expense                                 1,933,355
                Total operating expenses                              1,933,355

            Operating loss                                                 -

            Non-operating expenses:
              Transfers in                                                 -

            Change in net assets                                           -


            Net assets at beginning of year                                -

            Net assets at end of year                         $            -



            See accompanying notes to financial statements.




                                                 70
                                                                                   Exhibit 7

                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                               Statement of Cash Flows
                                   Proprietary Fund
                            Year Ended December 31, 2010




                                                         Governmental Activities
                                                         Risk Management Fund

Cash flows from operating activities:
 Receipts from customers                                 $        1,819,534
 Payments to suppliers                                           (2,140,354)
                                                                          -
   Net cash used by operating activities                           (320,820)

Balance - begininng of year                                        320,820


Balance - end of year                                    $            -


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

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

   Increase in due from other funds                      $         (113,821)
   Decrease in due to other funds                                  (264,791)
   Increase in vouchers payable                                      97,361
   Decrease in accrued liabilities                                  (39,569)
                                                                          -
     Total adjustments                                             (320,820)

     Net cash used by operating activities               $         (320,820)


See accompanying notes to financial statements.




                                             71
Exhibit 8

                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Statement of Fiduciary Net Assets
                                                  Fiduciary Funds
                                                December 31, 2010




                                                                        Pension      Combined
                                                                         Trust        Agency
                   Assets                                                Fund          Funds

            Cash and short-term investments (note 3)               $    18,106,853   48,228,233
            Investments (at fair value): (note 3)
              Equity:
                 U.S. common and preferred stock                       103,233,492        -
                 American Depositary Receipts (ADRs)                     3,612,126        -
                 S&P 500 index fund                                     61,321,680        -
                 Non-U.S. stock and equity mutual fund                 177,506,160        -
              Bonds and Notes:
                 U.S. government and related agency debt                32,006,542        -
                 Fannie Mae and Freddie Mac debt                         6,818,777        -
                 Fixed income mutual funds                              85,432,127        -
                 U.S. corporate debt instruments                        54,311,360        -
                 Non-U.S. government and corporate debt                 10,348,761        -
              Other Investments:
                 Hedge funds                                               959,546        -
                 Real estate                                            42,827,571        -
                 Commodities fund                                       21,247,278        -
                 Venture capital / private equity                       80,251,928        -

                                                                       679,877,348        -
            Amount due from brokers                                        207,008        -
            Accrued interest and dividends receivable                    1,242,326        2,325
            Accrued employer contributions receivable                      995,180        -
            Accrued employee contributions receivable                      873,809        -
            Other assets                                                    51,077    5,728,179

                   Total assets                                    $   701,353,601   53,958,737

                   Liabilities and net assets

            Liabilities:
               Vouchers payable                                    $         2,171      949,951
               Accrued liabilities                                       1,635,938        -
               Due to other governments                                      -        5,886,579
               Due to litigants                                              -       13,571,809
               Collections held in trust                                     -       23,876,064
               Amount due to brokers                                       410,396        -
               Other liabilities                                             3,596    9,674,334
                   Total liabilities                                     2,052,101   53,958,737

            Net assets:
              Held in trust for pension benefits                       699,301,500        -

                   Total liabilities and net assets                $   701,353,601   53,958,737

            See accompanying notes to financial statements.


                                                              72
                                                                                  Exhibit 9

                     COUNTY OF ALLEGHENY, PENNSYLVANIA
                   Statement of Changes in Fiduciary Net Assets
                               Pension Trust Fund
                         Year Ended December 31, 2010




                                                                  Pension Trust
                                                                      Fund


Additions:
  Contributions:
      Employee                                               $      20,194,179
      Employer                                                      20,115,911

           Total contributions                                      40,310,090


  Investment income:
     Net appreciation in fair value of investments                  66,699,939
     Interest                                                        5,395,742
     Dividends                                                       5,988,654
     Stock loan income                                                  81,605
                                                                    78,165,940
     Less: Investment management fees                                1,693,912

           Total investment gain - net                              76,472,028

  Miscellaneous income                                                  59,654

           Total additions - net                                  116,841,772

Deductions:
  Benefit payments                                                  65,844,509
  Refunds of employee contributions                                  3,057,594
  Salaries, wages and related expenses                                 285,917
  Administrative and miscellaneous expenses                            994,754

           Total deductions                                         70,182,774

Net increase in net assets                                          46,658,998

Net assets at beginning of year                                   652,642,502

Net assets at end of the year                                $    699,301,500


See accompanying notes to financial statements.




                                          73
                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                        Statement of Net Assets
                                            Component Units
                                      December 31 or June 30, 2010




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


Cash and short-term investments (note 3)                           $         12,949,002            44,692,263            32,078,
Time deposits and other investments (note 3)                                      -                     -                 3,973,
Restricted cash and short-term investments (note 3)                         151,667,154            37,971,154            23,085,
Due from other governments (note 4)                                           6,931,831            38,456,235               987,
Due from primary government (note 9)                                              -                     -                   750,
Accounts receivable (note 4):
  Trade, net of allowance for doubtful accounts                               5,301,870                 -                 2,697,
  Other                                                                       1,695,787            11,668,117             1,003,
Accrued interest and dividends receivable                                         3,993                 -                     -
Inventory                                                                     1,880,557             9,516,913             1,247,
Other assets                                                                  5,123,642             1,144,303             1,059,
Net pension asset                                                                 -                10,098,104                 -
Loans receivable, net of allowance for loan losses (note 4)                       -                     -                     -
Capital lease investments (note 3)                                                -                94,517,711                 -
Land (note 5)                                                               138,344,068           105,691,782             4,016,
Construction in progress (note 5)                                            44,512,788           396,361,457             2,215,
Buildings and equipment net of accumulated depreciation (note 5)            543,129,234         1,014,353,401            89,045,

      Total assets                                                 $        911,539,926         1,764,471,440           162,160,




                                                         74
                                                                                                       Exhibit 10 (Page 1 of 3)




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



       44,692,263            32,078,769            14,575,477                 6,976,431         7,232,176       118,504,118
            -                 3,973,409                 -                         -                 -             3,973,409
       37,971,154            23,085,034            19,979,424                   232,847        19,497,558       252,433,171
       38,456,235               987,724            10,063,507                 1,392,677             -            57,831,974
            -                   750,000               242,324                     -               479,480         1,471,804

            -                 2,697,677                 -                        28,474             -             8,028,021
       11,668,117             1,003,520               176,834                     -                67,677        14,611,935
            -                     -                     -                         -                 -                 3,993
        9,516,913             1,247,507             5,834,200                     -                 7,183        18,486,360
        1,144,303             1,059,783             2,446,505                    50,000           193,984        10,018,217
       10,098,104                 -                     -                         -                 -            10,098,104
            -                     -                26,462,722                 2,812,794             -            29,275,516
       94,517,711                 -                     -                         -                 -            94,517,711
      105,691,782             4,016,466             1,528,300                     -                 -           249,580,616
      396,361,457             2,215,541                 -                         -                 -           443,089,786
    1,014,353,401            89,045,173             4,295,251                     -             4,120,413     1,654,943,472

    1,764,471,440           162,160,603            85,604,544                11,493,223        31,598,471     2,966,868,207




                                                                        75
                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                         Statement of Net Assets
                                             Component Unit
                                       December 31 or June 30, 2010




                                                                 Allegheny County       Port Authority     Community Coll
                                                                 Airport Authority   of Allegheny County   of Allegheny Co
                                                                as of December 31       as of June 30         as of June 30
      Liabilities and Net Assets
      _____________________

Liabilities:
   Vouchers payable                                         $         11,253,492            34,821,949             3,759,
   Accrued interest payable                                              198,575                 -                     -
   Accrued payroll                                                         -                14,306,058             3,933,
   Due to primary government (note 9)                                  1,492,082                 -                     -
   Due to other governments                                                -                     -                 2,554,
   Amount due airlines                                                   936,049                 -                     -
   Accrued liabilities                                                 6,032,096                 -                 2,495,
   Deferred tuition and student deposits                                   -                     -                 3,074,
   Other liabilities:
          Current                                                       2,445,118            5,796,836                  -
          Non-current                                                     764,462                -                      -
   Deferred revenue:
          Current                                                      5,121,178            33,606,406                80,
           Non-current (note 8)                                       39,083,340                 -                    42,
   Reserve for claims and settlements:
          Current                                                           -                8,621,786                  -
          Non-current                                                       -                5,557,659                  -
   Accrued workers' compensation (note 6)                                 183,921                -                      -
   Embedded derivative instrument                                         374,592           37,837,892                  -
   Compensated absences:
          Current                                                           -                    -                 3,076,
   General obligation/revenue bonds/notes/
     leases (notes 8 and 14):
          Current                                                     72,570,356            99,181,273             8,405,
          Non-current                                                384,574,464           297,808,748            44,596,
   Accrued OPEB liability
          Non-current                                                     102,171          134,109,497                  -

      Total liabilities                                              525,131,896           671,648,104            72,018,




                                                  76
                                                                                                        Exhibit 10 (Page 2 of 3)




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




       34,821,949             3,759,535             4,232,241                    58,829            98,221         54,224,267
            -                     -                   581,659                     -                 -                780,234
       14,306,058             3,933,309                 -                         -                 -             18,239,367
            -                     -                 6,000,000                     -             3,222,018         10,714,100
            -                 2,554,339                 -                         -                 -              2,554,339
            -                     -                     -                         -                 -                936,049
            -                 2,495,557                 -                         -               584,792          9,112,445
            -                 3,074,241                 -                         -                 -              3,074,241

        5,796,836                 -                    54,624                     -               104,564          8,401,142
            -                     -                     -                         -                 -                764,462

       33,606,406                80,000               466,949                     -             1,195,920         40,470,453
            -                    42,977                 -                         -                 -             39,126,317

        8,621,786                 -                     -                         -            18,273,802         26,895,588
        5,557,659                 -                     -                         -                 -              5,557,659
            -                     -                     -                         -                 -                183,921
       37,837,892                 -                     -                         -                 -             38,212,484

            -                 3,076,677                 -                         -                 9,315          3,085,992


       99,181,273             8,405,443             3,513,114                     -                18,988        183,689,174
      297,808,748            44,596,801            31,780,460                     -                 7,634        758,768,107

      134,109,497                 -                     -                         -                 -            134,211,668
                                                                                                                           0

      671,648,104            72,018,879            46,629,047                    58,829        23,515,254      1,339,002,009




                                                                        77
                                              Statement of Net Assets
                                                 Component Units
                                            December 31 or June 30, 2010




                                                                         Allegheny County       Port Authority     Community Co
                                                                         Airport Authority   of Allegheny County   of Allegheny Co
                                                                        as of December 31       as of June 30         as of June 3

Net assets (deficit):
  Invested in capital assets, net of related debt                            330,934,058         1,261,044,325            62,212
  Restricted for:
    Capital projects                                                           26,950,089                -                     -
    Debt service                                                               56,965,251                -                     -
    Scholarship and tuition funds                                                   -                    -                   349
    Other student funds                                                             -                    -                 4,599
    Other projects                                                                  -                    -                 1,376
    Permanently                                                                     -                    -                   836
  Unrestricted net assets (deficit) (note 15)                                 (28,441,368)        (168,220,989)           20,766

       Total net assets                                                      386,408,030         1,092,823,336            90,141

       Total liabilities and net assets                             $        911,539,926         1,764,471,440           162,160




See accompanying notes to financial statements.




                                                        78
                                                                                                      Exhibit 10 (Page 3 of 3)




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


    1,261,044,325            62,212,843             1,924,313                     -             3,916,719     1,660,032,258

            -                     -                     -                         -                 -            26,950,089
            -                     -                     -                         -                 -            56,965,251
            -                   349,700                 -                         -                 -               349,700
            -                 4,599,025                 -                         -                 -             4,599,025
            -                 1,376,519            29,864,673                10,779,817         1,552,866        43,573,875
            -                   836,767                 -                         -                 -               836,767
     (168,220,989)           20,766,870             7,186,511                   654,577         2,613,632      (165,440,767)

    1,092,823,336            90,141,724            38,975,497                11,434,394         8,083,217     1,627,866,198
                                                                                                                          0

    1,764,471,440           162,160,603            85,604,544                11,493,223        31,598,471     2,966,868,207




                                                                        79
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                      Statement of Activities
                                                         Component Units
                                             Year ended December 31 or June 30, 2010




                                                                                     Program Revenues                          _______________________________________

                                                                                                                                        Allegheny County    Port Authority o
                                                                                                  Operating                             Airport Authority   Allegheny Count
                                                                               Charges for       Grants and      Capital Grants &         Year Ended          Year Ended
                                                          Expenses              Services         Contributions   Contributions            December 31           June 30


Allegheny County Airport Authority                  $    180,805,622           137,266,103                -         40,589,010               (2,950,509)               -


Port Authority of Allegheny County                       517,673,228            93,220,190       191,507,990       207,132,168                    -             (25,812,88


Community College of Allegheny County
 Education                                               125,856,859            28,638,106        80,326,348              -                       -                    -
 Auxiliary enterprises                                      7,942,653            8,615,352                -               -                       -                    -
 Educational Foundation                                     2,754,222              219,412            454,511        2,344,372                    -                    -
  Total Community College                                136,553,734            37,472,870        80,780,859         2,344,372                    -                    -

Redevelopment Authority of Allegheny County
 General government                                         1,093,646                 -                   -               -                       -                    -
 Community development                                    32,170,593             1,955,755        31,193,676              -                       -                    -
 Lending                                                    2,396,727              700,992                -               -                       -                    -
 Rental Activity                                            1,256,205            1,143,928                -               -                       -                    -
  Total Redevelopment Authority                           36,917,171             3,800,675        31,193,676              -                       -                    -


Allegheny County Industrial Development Authority
 Economic opportunity                                         313,446              124,354                -               -                       -                    -
 Administrative fund                                          294,540              290,007
                                                                                   235,687            142,872             -                       -                    -
    Total Industrial Development Authority                    607,986              414,361            142,872             -                       -                    -


Nonmajor Component Units                                    8,173,473            1,759,943          5,578,131        1,343,584                    -                    -


Total Component Units                               $    880,731,214           273,934,142       309,203,528       251,409,134               (2,950,509)        (25,812,88


                                                        General Revenues:
                                                          Payment from County                                                       $             -              27,668,70
                                                          Interest and investment earnings                                                    2,787,975           8,087,23
                                                          Swap termination gain                                                               5,075,000                -
                                                          Gaming Act revenue                                                                 14,600,000                -
                                                          Net decrease in the fair value of investments                                        (491,546)               -
                                                          Loss on sale of capital assets                                                       (252,331)               -
                                                          Transfer to County                                                                      -                    -
                                                          Investment loss on embedded derivative instrument                                       -             (14,963,72
                                                          Miscellaneous income                                                                1,073,551                -


                                                             Total general revenues                                                          22,792,649          20,792,21
                                                             Change in net assets                                                            19,842,140          (5,020,66
                                                        Net Assets beginning of year, restated                                             366,565,890        1,097,844,00
                                                        Net Assets end of year                                                      $      386,408,030        1,092,823,33


See accompanying notes to financial statements.


                                                                           80
                                                                                                                                              Exhibit 11




________________________________________________Net Revenue (Expense) and Changes in Net Assets____________________________________

     Allegheny County    Port Authority of   Community College Redevelopment Authority Allegheny County Industrial
     Airport Authority   Allegheny County    of Allegheny County   of Allegheny County     Development Authority            Nonmajor
       Year Ended          Year Ended           Year Ended             Year Ended              Year Ended               Component Units
       December 31           June 30               June 30            December 31              December 31           Year Ended December 31      Total


          (2,950,509)               -                    -                       -                          -                      -             (2,950,509)


               -             (25,812,880)                -                       -                          -                      -            (25,812,880)



               -                    -             (16,892,405)                   -                          -                      -            (16,892,405)
               -                    -                 672,699                    -                          -                      -               672,699
               -                    -                 264,073                    -                          -                      -               264,073
               -                    -             (15,955,633)                   -                          -                      -            (15,955,633)



               -                    -                    -                  (1,093,646)                     -                      -             (1,093,646)
               -                    -                    -                    978,838                       -                      -               978,838
               -                    -                    -                  (1,695,735)                     -                      -             (1,695,735)
               -                    -                    -                   (112,277)                      -                      -              (112,277)
               -                    -                    -                  (1,922,820)                     -                      -             (1,922,820)



               -                    -                    -                       -                     (189,092)                   -              (189,092)
               -                    -                    -                       -                      138,339                    -               138,339
               -                    -                    -                       -                      (50,753)                   -                (50,753)


               -                    -                    -                       -                          -                    508,185           508,185


          (2,950,509)        (25,812,880)         (15,955,633)              (1,922,820)                 (50,753)                 508,185        (46,184,410)




 $             -              27,668,700           24,900,000               4,854,831                       -                    542,225        57,965,756
           2,787,975           8,087,237              504,933                 135,773                       6,276                  6,730        11,528,924
           5,075,000                -                    -                       -                          -                      -             5,075,000
          14,600,000                -                    -                       -                          -                      -            14,600,000
            (491,546)               -                    -                       -                          -                      -              (491,546)
            (252,331)               -                    -                       -                          -                     (49,589)        (301,920)
               -                    -                    -                  (6,715,841)                     -                      -             (6,715,841)
               -             (14,963,726)                -                       -                          -                      -            (14,963,726)
           1,073,551                -                 148,436                 542,008                       -                    116,250         1,880,245


          22,792,649          20,792,211           25,553,369               (1,183,229)                     6,276                615,616        68,576,892
          19,842,140           (5,020,669)          9,597,736               (3,106,049)                 (44,477)                1,123,801       22,392,482
        366,565,890        1,097,844,005           80,543,988              42,081,546                11,478,871                 6,959,416     1,605,473,716
 $      386,408,030        1,092,823,336           90,141,724              38,975,497                11,434,394                 8,083,217     1,627,866,198




                                                                                          81
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



1) Summary of Significant Accounting Policies

(A) Organization and Reporting Entity
The organization of the County of Allegheny, Pennsylvania (the County) and the basis of the
  reporting entity are presented below to assist the reader in evaluating the financial
  statements and the accompanying notes. The County follows Statement of Governmental
  Accounting Standards No. 14, "The Financial Reporting Entity." As noted below, this
  statement has required the inclusion of component units in the accompanying financial
  statements, as well as disclosures concerning other related entities. The reporting period for
  the County is for the year ended December 31, 2010.

The County provides public safety, public works, health and welfare, economic development,
  education, economic opportunity, cultural, recreation and transportation services.

The County was organized in 1788. Until January 1, 2000, the County operated under the
  Second Class County Code, adopted by the Commonwealth of Pennsylvania State Legislature
  in 1953. A three-member Board of County Commissioners, elected County-wide for
  four-year terms, performed the executive and legislative functions.

In accordance with the Constitution and laws of the Commonwealth of Pennsylvania, the
  electorate of Allegheny County approved adoption of a Home Rule Charter (the Charter), to
  supercede certain provisions of the Second Class County Code pertaining to the governing
  framework of the County. The effective date of the Charter was January 1, 2000.

The Charter transferred substantial authority and responsibility to act in local affairs from
  state law to the County’s electorate through their locally elected officials. With regard to
  County governance, the Charter replaced the three-commissioner form of government with
  an elected Chief Executive, an elected, 15-member, part-time County Council and an
  appointed professional County Manager. It also required adoption of an Administrative
  Code to detail the County’s administration and operation. The Administrative Code was
  enacted June 30, 2000.

Unless expressly or implicitly modified or repealed by the Charter, the provisions of the Second
  Class County Code and other applicable laws still govern the operations of the County.

In June 1999, GASB issued Statement No. 34, ―Basic Financial Statement – and Management’s
  Discussion and Analysis – for State and Local Governments.‖ This statement, known as the
  ―Reporting Model‖ statement, affects the way the County and its component units prepare
  and present financial information. State and local governments traditionally have used a
  financial reporting model substantially different from the one used to prepare private-sector
  financial reports. GASB Statement No. 35, ―Basic Financial Statement and Management’s
  Discussion and Analysis - For Public Colleges and Universities‖ establishes accounting and
  financial reporting standards for public colleges within the financial reporting guidelines of
  GASB 34.




                                               83
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


GASB Statement Nos. 34 and 35 established requirements and a reporting model for the
  annual financial reports of state and local governments and colleges. The Statements were
  developed to make annual reports easier to understand and more useful to the people who
  use governmental financial information to make decisions and includes:

  Management’s Discussion and Analysis – Requires that financial statements be
  accompanied by a narrative introduction and analytical overview of the government’s
  financial activities in the form of ―management’s discussion and analysis‖ (MD&A). This
  analysis is similar to analysis the private sector provides in their annual reports.

  Government-wide financial statements – The reporting model includes financial
  statements prepared using full accrual accounting for all of the government’s activities. This
  approach includes not just current assets and liabilities (such as cash and accounts payable)
  but also capital assets and long-term liabilities (such as buildings and infrastructure,
  including bridges and roads, and general obligation debt). Accrual accounting also reports
  all of the revenues and cost of providing services each year, not just those received or paid
  in the current year or soon thereafter.

  Statement of Net Assets – The Statement of Net Assets is designed to display the
  financial position of the primary government (governmental activities) and its discretely
  presented component units. Governments report all debt and long-term liabilities as well as,
  capital assets, including infrastructure, in the government-wide Statement of Net Assets and
  report depreciation expense – the cost of ―using up‖ capital assets – in the Statement of
  Activities. The net assets of a government will be broken down into three categories – 1)
  invested in capital assets, net of related debt; 2) restricted; and 3) unrestricted.

  Statement of Activities – The government-wide statement of activities reports expenses
  and revenues in a format that focuses on the cost of each of the government’s functions.
  The expense of individual functions is compared to the revenues generated directly by the
  function (for instance, through user charges or intergovernmental grants).

  Budgetary Comparison Schedules – Demonstrating compliance with the adopted budget
  is an important component of a government’s accountability to the public. Many citizens
  participate in the process of establishing the annual operating budgets of state and local
  governments, and have a keen interest in following the actual financial progress of their
  governments over the course of the year. The County and many other governments revise
  their original budgets over the course of the year for a variety of reasons. Under the new
  reporting model, governments will continue to provide budgetary comparison information in
  their annual report and are required to add the government’s original budget to the current
  comparison of final budget and actual results.




                                              84
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


As required by the accounting principles generally accepted in the United States, these
  financial statements present the primary government and its component units. A
  component unit is a legally separate entity that meets any one of the following criteria: 1)
  the primary government appoints the voting majority of the board, and is able to impose its
  will on the component unit, or is in a relationship of financial benefit or burden with the
  component unit; 2) the component unit is fiscally dependent on the primary government, or;
  3) the financial statements of the primary government would be misleading if data from the
  component unit was not included. Blended component units, although legally separate
  entities, are, in substance, part of the government’s operations and so data from these units
  are combined with data of the primary government. The County has no component units
  that meet the requirements for blending. The discretely presented component units, on the
  other hand, are reported in a separate column in the government-wide statements to
  emphasize they are legally separate from the primary government. The discretely presented
  component units have various fiscal year-ends.

Component Units
The following entities are included in the financial statements because of the significance of
  their operations or financial relationships with the County. The majority of the board of
  directors of the component units, except Memorial Hall are appointed by the County’s Chief
  Executive and confirmed by the County Council. The component units’ column of the
  applicable government-wide statements include financial data for the Allegheny County
  Airport Authority (ACAA); the Port Authority of Allegheny County (PAT); the Community
  College of Allegheny County (CCAC); the Redevelopment Authority of Allegheny County
  (RAAC), and Allegheny County Industrial Development Authority (ACIDA). These entities
  are considered major component units of the County. Allegheny HealthChoices, Inc (AHCI),
  Allegheny County Parks Foundation (Parks Foundation), Allegheny County Conservation
  District (Conservation District), and Soldiers’ and Sailors’ Memorial Hall and Museum Trust,
  Inc. (Memorial Hall) are nonmajor component units. They are included with the major
  component units in the Statement of Net Assets in the nonmajor component units’ column
  of the Statement of Net Assets – Component Units and Statement of Activities – Component
  Units.

ACAA was established in 1999 to manage and operate Pittsburgh International Airport (PIA)
  and the Allegheny County Airport (collectively, the Airport System). On November 15, 1999,
  pursuant to an Airport Operation, Management and Transfer Agreement and Lease between
  the County and ACAA, as amended (the Transfer Agreement), the County leased and
  transferred the Airport System to ACAA for a term of 25 years with two 25-year extension
  options exercisable at ACAA’s option.

In connection with the Transfer Agreement, the County leased to ACAA all land, buildings,
  fixtures, improvements, structures, aviation easements, rights of access and appurtenances
  pertaining thereto and all of the listed properties. In addition, the County transferred all of
  its rights, title and interest in fixtures, equipment, materials and furnishings utilized by the
  County in connection with the Airport System. In addition, all contractual rights and




                                                85
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  obligations and liabilities pertaining to the Airport System, including revenue and general
  obligation bonds issued by the County to finance construction and development of PIA, were
  transferred to ACAA by the County.

PAT was established under the Second Class Port Authority Act of 1956 to provide mass transit
  services to the citizens of Allegheny County and portions of adjacent counties. The County
  provides significant annual operating and capital subsidies to PAT.

As discussed in Note 13, PAT contracts with Veolia Transportation Services, Inc. which
  provides professional services to coordinate the paratransit system, ACCESS. ACCESS
  financial statements have not been included in the reporting entity because PAT has neither
  control, financial responsibility, nor accountability for ACCESS.

CCAC was established under the Community College Act of 1963 to provide two-year
  post-secondary and college-parallel education programs, as well as education programs for
  out-of-school youths and adults within Allegheny County. The County, as sponsor,
  advances its funding based on its budget allocation that is on a calendar year basis.
  Included in the advance is the County’s required one-half share of capital expenditures.

The Educational Foundation of CCAC (the ―Foundation‖) is a legally separate, tax-exempt
  component unit of CCAC that acts primarily as a fund-raising organization to supplement
  the resources that are available to CCAC. The Foundation operates under an independent
  Board of Trustees and management. In carrying out its responsibilities, the Board of
  Trustees of the Foundation forms policy and maintains fiscal accountability over funds
  administered by the Foundation. The majority of resources or income thereon, are
  restricted to the activities of CCAC by the donors. Accordingly, the financial statements of
  the Foundation have been included in the basic financial statements with CCAC.

RAAC was incorporated in the Commonwealth of Pennsylvania in 1950 as a redevelopment
  authority under the provisions of the Urban Redevelopment Law, Act No. 385. RAAC was
  established with the power to undertake programs for the voluntary repair, rehabilitation
  and conservation of residential housing and to stimulate residential, office, retail,
  commercial, industrial and other development. The County allocates a portion of its sales
  tax receipts from the Allegheny Regional Asset District to RAAC for the purpose of meeting
  the debt service obligations of bonds issued by RAAC to provide loans related to economic
  development projects.

RAAC has entered into an agreement whereby the County agreed to provide administrative
  services on behalf of RAAC at a cost of $537,500 for 2010.

ACIDA was established under the Economic Development Financing Law to aid in alleviating
  unemployment and to maintain levels of existing employment by promoting the construction
  of industrial, manufacturing and research and development facilities within the County.
  Through a guaranty agreement with ACIDA, the County has agreed to pay the principal and
  interest on ACIDA’s Guaranteed Lease Revenue Bonds, Series 2002A and 2002B; and




                                              86
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  accordingly the debt is reported on the County’s Statement of Net Assets.

ACIDA has entered into an agreement with the County to provide administrative services on its
  behalf. As compensation for these services, ACIDA has agreed to transfer to the County the
  amount of ―surplus revenue‖ remaining at the end of each fiscal year to cover the costs of
  County personnel responsible for the administration and operation of ACIDA. Surplus
  revenue is essentially the amount of Administrative Fund unrestricted cash and cash
  equivalents exceeding $50,000 at the end of each year. ACIDA was not required to pay any
  amount for administrative services in the current year.

AHCI was incorporated in 1998 as a private, non-profit corporation for the purpose of
  monitoring the County’s behavioral health services of the HealthChoices program. AHCI has
  been determined to be exempt from federal income taxes under Section 501(c)(3) of the
  Internal Revenue Code as ―other than a private foundation.‖ The County provides the bulk
  of AHCI’s funding through medical assistance capitation revenue received from the
  Commonwealth of Pennsylvania.

The Parks Foundation was established in 2007 to facilitate public investment in the Allegheny
  County parks system, the county riverfront trail system and other greenway initiatives. The
  Parks Foundation has been determined to be exempt from federal income taxes under
  Section 501(c)(3) of the Internal Revenue Code. The County has provided a significant
  subsidy to the Parks Foundation’s operations and is committed to match funds, dollar for
  dollar, raised by the Parks Foundation in the amount of $10,000,000.

The Conservation District was established by the Conservation District Law Act of 1945 to
  improve the quality of the environment within the County. Conservation efforts are made
  with various governmental, business and civic organizations, as well as individuals, to
  improve both public and private lands. The County’s Chief Executive appoints and the
  County Council confirms a majority of the board of directors.

Memorial Hall separated from the County on January 1, 2000 and became an independent
  non-profit corporation. Prior to 2000, it was an operating division of the County. Memorial
  Hall’s goal is to preserve a lasting tribute to those who served their country during the wars
  spanning the period from the Civil to Gulf II. The County annually appropriates a material
  subsidy and has assigned certain receipts from the adjacent parking lot to Memorial Hall.

The reporting periods for ACAA, RAAC, ACIDA, ACHI, Parks Foundation, the Conservation
  District and Memorial Hall are for the year ended December 31, 2010. The reporting periods
  for PAT and CCAC are for the year ended June 30, 2010. Complete and more detailed
  financial statements for all of the individual component units can be obtained from their
  respective administrative offices.




                                               87
      COUNTY OF ALLEGHENY
  Notes to the Financial Statements
   December 31 and June 30, 2010



     Administrative Offices

Allegheny County Airport Authority
Pittsburgh International Airport
Landside Terminal, Suite 4000
Pittsburgh, PA 15231-0370

Port Authority of Allegheny County
345 Sixth Avenue, 3rd Floor
Pittsburgh, PA 15222-2527

Community College of Allegheny County
800 Allegheny Avenue
Pittsburgh, PA 15233-1895

Redevelopment Authority of Allegheny County
Regional Enterprise Tower, Suite 800
425 Sixth Avenue
Pittsburgh, PA 15219

Allegheny County Industrial Development Authority
Regional Enterprise Tower, Suite 800
425 Sixth Avenue
Pittsburgh, PA 15219

Allegheny HealthChoices, Inc.
444 Liberty Avenue, Suite 240
Pittsburgh, PA 15222

Allegheny County Parks Foundation
535 Grant Street, Suite 525
Pittsburgh, PA 15222

Allegheny County Conservation District
Lexington Technology Park, Building #1, Suite 102
400 North Lexington Avenue
Pittsburgh, PA 15208

Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc.
4141 Fifth Avenue
Pittsburgh, PA 15213




                    88
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Related Organizations

The Chief Executive was also responsible for appointing, and the County Council was
  responsible for confirming, the members of the boards of other organizations, but the
  County's accountability for these organizations does not extend beyond making the
  appointments. These organizations include:

                  Allegheny County Residential Finance Authority
                  Authority for Improvements in Municipalities
                  Allegheny County Hospital Development Authority
                  Allegheny County Higher Education Building Authority
                  Allegheny County Housing Authority

The financial statements for these organizations are not included herein.

Joint Ventures

The Sports and Exhibition Authority of Pittsburgh and Allegheny County was incorporated
  under the Public Auditorium Authorities Act of 1953 as a joint authority organized by the City
  of Pittsburgh (the City) and the County to provide space for educational, cultural, physical,
  civic and social events of benefit to the general public. The County's only access to the
  Sports and Exhibition Authority's resources would be a residual interest in the net assets in
  the event of dissolution.

The City and the County are equally responsible for funding certain debt service requirements
  of the Sports and Exhibition Authority. At December 31, 2010 the County's outstanding
  portion of this debt, payable through December 2018, totals $1,590,000 and is reflected in
  the government-wide Statement of Net Assets. Additionally, in accordance with the
  fiduciary responsibilities of the Hotel Room Rental Tax Act of 1990, the County collects a 7%
  hotel room tax and distributes the funds to designated agencies, including the Sports and
  Exhibition Authority. Complete and more detailed financial statements for the Sports and
  Exhibition Authority of Pittsburgh and Allegheny County can be obtained from the Sports
  and Exhibition Authority's administrative office:

                           Sports and Exhibition Authority
                             of Pittsburgh and Allegheny County
                           Regional Enterprise Tower, Suite 2750
                           425 Sixth Avenue
                           Pittsburgh, PA 15219




                                              89
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Jointly Governed Organization

The Allegheny County Sanitary Authority (Alcosan) was organized under the Municipality
  Authorities Act of 1945 to collect, transport and treat wastewater for the City and 77 other
  Allegheny County municipalities. Alcosan's board has seven members; three are appointed
  by the County, three are appointed by the City and one is appointed jointly by the County
  and City. The County has no ongoing financial interest or responsibility in Alcosan.

(B) Government-wide and Fund Financial Statements

The basic financial statements include both government-wide (based on the County as a
  whole) and fund financial statements. While the previous reporting model emphasized fund
  types (the total of all funds of a particular type), in the new reporting model, the focus is
  either on the County as a whole (which includes component units) or major individual funds
  within the fund financial statements.

Both the government-wide and fund financial statements (within the basic financial
  statements) categorize primary activities as governmental. In the government-wide
  statement of net assets, governmental activities are presented on a consolidated basis, and
  are reflected on a full accrual, economic resource basis, which incorporates long-term assets
  and receivables as well as long-term debt and obligations. For the most part, the effect of
  interfund activity has been eliminated from these statements. Activity between component
  units and the primary government is generally reported as external transactions and not
  operating transfers. Internal service account balances are reported as governmental
  activities on the statements of net assets and activities.

The government-wide statement of activities reflects both the gross and net cost per
  functional category (public safety, public works, health and welfare, etc.) that are otherwise
  being supported by general government revenues (property, sales and use taxes, interest
  earnings and certain other general revenues). The statement of activities reduces gross
  expenses (including depreciation) by related program revenues, operating and capital
  grants, and contributions. The program revenues must be directly associated with the
  function (public safety, public works, health and welfare, etc). Program revenues include 1)
  charges (including fines) to customers or applicants who purchase, use, or directly benefit
  from goods, services, or privileges provided by a given function and 2) grants and
  contributions that are restricted to meeting the operation or capital requirements of a
  particular function or segment. Taxes and other items not properly included among
  program revenues are reported as general revenues. The County does not allocate indirect
  expenses. The operating grants include operating-specific and discretionary (either
  operating or capital) grants while the capital grants column reflects capital-specific grants.




                                               90
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


In the fund financial statements, financial transactions and accounts of the County are
  organized on the basis of funds. The operation of each fund is considered to be an
  independent fiscal and separate accounting entity, with a self-balancing set of accounts
  recording cash and/or other financial resources together with all related liabilities and
  residual equities or balances, and changes therein, which are segregated for the purpose of
  carrying on specific activities or attaining certain objectives in accordance with special
  regulations, restrictions, or limitations. The governmental fund statements are presented on
  a current financial resource and modified accrual basis of accounting. Since the
  governmental fund statements are presented on a different measurement focus and basis of
  accounting than the government-wide statements’ governmental activities column, a
  reconciliation is presented which briefly explains the adjustments necessary to reconcile the
  fund financial statements to the governmental column of the government-wide financial
  statements.

The County’s fiduciary funds are presented in the fund financial statements by type (pension
  and agency). Since by definition these assets are being held for the benefit of a third party
  (other local governments, litigants, pension participants, etc.) and cannot be used to
  address activities or obligations of the government, these funds are not incorporated into
  the government-wide statements. The following is a brief description of the specific funds
  used by the County in the current year.

Governmental Funds

Governmental funds are those through which most governmental functions of the County are
  financed. The County's expendable, available financial resources and the related liabilities
  (except those accounted for in proprietary funds) are accounted for through governmental
  funds wherein the measurement focus is on changes in financial position, rather than on net
  income. Following are descriptions of the County's governmental funds:

  General Fund - Accounts for all financial resources except those required to be accounted for
  in another fund. Operating activities reflected in the General Fund include County
  administrative, planning and service departments, the County's Court of Common Pleas and
  the elected County row officers, as well as the operations of the Kane Regional Health
  Centers, a series of four regional, long-term healthcare facilities for the chronically ill and
  elderly who have limited financial resources. The Centers are operated as a general welfare
  benefit for these people and are partially supported by property tax revenues. Other
  activities accounted for in the General Fund include child welfare services, social services for
  the elderly and the Shuman Juvenile Detention Center. The General Fund is always
  considered a major fund for government-wide reporting purposes.




                                               91
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



  Special Revenue Funds - Account for the proceeds of specific revenue sources that are
  restricted or committed to expenditure for specified purposes other than debt service or
  capital projects. The Special Revenue Funds consist of the following: Transportation Fund,
  Liquid Fuel Tax Fund, County Grants Fund and Human Services Grants Fund. Operating
  activities in the Human Services Grants Fund include Behavior Health/Intellectual Disability
  services to eligible citizens. The County Grants Fund operating activities mainly consist of
  public safety, health and welfare and general government services.

  The County Grants Fund and Human Services Grants Fund are considered major funds for
  government-wide reporting purposes.

  Capital Projects Fund - Accounts for financial resources that are restricted, committed, or
  assigned to expenditures for capital outlays including acquisition or construction of capital
  facilities and other capital assets. The Capital Projects Fund is considered a major fund for
  government-wide reporting purposes.

  Debt Service Fund - Accounts for and reports financial resources that are restricted,
  committed, or assigned to expenditures for principal and interest.

Proprietary Fund

Proprietary fund accounts for the County's ongoing activities that are similar to those found in
  the private sector. The measurement focus is on determination of net income. Following is
  a description of the County's proprietary fund:

  Internal Service Fund - Account for and finance services furnished exclusively to user offices,
  departments and other agencies and funds of the County on a cost reimbursement basis.
  The principal services provided include a self-insurance program for health and dental
  coverage and risk management. Operating revenues are from charges for services and
  employer/employee contribution and claims expense. All other revenues and expenses are
  recorded as non-operating. The Internal Service Fund (after eliminations) is included in
  governmental activities for government-wide reporting purposes.

Fiduciary Funds

Fiduciary funds account for assets held by the County as the agent for individuals, private
  organizations and other governmental units or funds. Following is a description of the
  County's fiduciary funds:




                                               92
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  Trust and Agency Funds - Include the Pension Trust, which accounts for the activities of the
  Allegheny County Employees' Retirement System, and the Agency Fund, which accounts for
  funds held by the County on behalf of others. The Pension Trust is accounted for in a
  manner similar to a proprietary fund. The Agency Fund is custodial in nature (assets equal
  liabilities) and does not involve the measurement or results of operations. Fiduciary funds
  are not included in the government-wide statements.

(C) Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment applied to a fund is determined by its
 measurement focus. All governmental funds are accounted for using the current financial
 resources measurement focus. With this measurement focus, only current assets and
 current liabilities generally are included on the balance sheet in the funds statements. Long-
 term assets and long-term liabilities are included in the government-wide statements.
 Operating statements of the governmental funds present increases (i.e., revenues and other
 financial sources) and decreases (i.e., expenditures and other financing uses) in net current
 assets. Note 9 discloses interfund transactions and their accounting treatment on the
 government-wide statement of activities.

The government-wide statements of net assets and statements of activities, the proprietary
  fund, and pension trust funds are accounted for on a flow of economic resources
  measurement focus. With this measurement focus, all assets and all liabilities associated
  with the operation of these activities are either included on the statement of net assets or
  on the statement of fiduciary net assets.

The statements of net assets, statements of activities and the financial statements of the
  Internal Service Fund and Fiduciary Funds are presented on the accrual basis of accounting.
  Under this method, revenues are recognized when earned and expenses are recorded when
  liabilities are incurred without regard to receipt or disbursement of cash.

The fund financial statements of the Governmental Funds are maintained and reported on the
 modified accrual basis of accounting using the current financial resources measurement
 focus. Under this method of accounting, revenues are recognized in the period in which
 they become measurable and available. With respect to real property tax revenue and
 sales taxes, the term ―available‖ is limited to collection within 60 days of the year-end.
 Property taxes of $23,035,204 is the portion of the County’s deferred revenue recorded
 because it is not available. Interest income is recorded as earned. Federal and State
 reimbursement-type grants are recorded as revenue when related eligible expenditures are
 incurred. Expenditures, other than accrued interest on long-term debt as well as the long-
 term expenditures related to compensated absences, workers compensation and
 settlements, are recorded when the fund liability is incurred. Agency Funds do not have a
 measurement focus.




                                               93
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                               December 31 and June 30, 2010



(D) Allowance for Uncollectible Accounts

The County calculates its allowance for uncollectible accounts using historical collection data
  and, in certain cases, specific account analysis. The allowance at December 31, 2010, is
  composed of the following:
                                                              Other
                                             General       Governmental
                                              Fund            Funds            Total
          Taxes receivable:
           Property taxes:
             Delinquent                 $     651,674          157,471         809,145
             Liened                         6,439,813        2,168,771       8,608,584
               Total taxes                  7,091,487        2,326,242       9,417,729
           Due from other governments       6,473,419                 -      6,473,419


           Total allowance              $ 13,564,906         2,326,242      15,891,148



There were no allowances for: sales tax receivable; loans receivable; accounts receivable
 trade and other; and accrued interest and dividends receivable.

Component Units - Allowance for Uncollectible Accounts

All Component Units

The allowance at the component unit’s respective year-end is composed of the following:
                                        ACAA               CCAC            RAAC          ACIDA
      Trade receivable             $        71,519        5,324,194            -          77,400
      Other receivable                        -               5,000            -            -
      Loans receivable                        -                -          3,079,887      247,388
      Liens receivable                        -                -          1,700,000         -

        Total allowance            $        71,519        5,329,194       4,779,887      324,788

(E) Cash, Cash Equivalents and Investments

For purposes of the accompanying Statement of Cash Flows, the County considers all highly
  liquid investments with an original maturity of three months or less when acquired to be
  cash equivalents.




                                                     94
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


The County follows GASB Statement No. 31, ―Accounting and Financial Reporting for Certain
  Investments and for External Investment Pools‖ and reports investments at fair value.
  Additionally, the Pension Trust Fund’s short-term investments are reported at cost, which
  approximates fair value.

Securities traded on a national exchange are valued at the last reported sales price. Other
  investments not regularly traded on a national exchange are valued based on the last
  reported sales price or mean of the latest bid and ask price.

The County allocates income to the various funds based upon their average monthly
  investment balances.

(F) Capital Assets

Capital outlays are recorded as expenditures of the Governmental Funds and as assets in the
  government-wide financial statements to the extent the County’s capitalization threshold of
  $1,000 is met and a useful life of greater than three years. To the extent the County’s
  capitalization threshold of $1,000 is met, capital outlays are recorded as capital assets and
  depreciated over their estimated useful lives on the government-wide statements, using the
  straight-line method and the following estimated useful lives:
                                                              Years
                            Buildings                          50
                            Leasehold Improvements             20
                            Furniture and Other Equipment     3-20
                            Infrastructure                    7-40
                            Equipment                         3-20


All capital assets are valued at historical cost or estimated historical cost if actual cost was not
   available. Donated capital assets are valued at their estimated fair market value on the date
   donated. The County maintains many artifacts, books, art objects and buildings of historical
   significance that are held for educational, research, and curatorial purposes. Each of the
   items is cataloged, preserved, cared for, and activities verifying their existence and
   assessing their condition are performed periodically. The County has a policy that requires
   that the proceeds from the sale of historical treasures or works of art be used to acquire
   other items for the collection. The County does not capitalize historic treasures or works of
   art.

Maintenance, repairs, and minor equipment are charged to operations when incurred.
 Expenses that materially change capacities or extend useful lives are capitalized. Upon sale
 or retirement of land, buildings, and equipment, the cost and related accumulated
 depreciation, if applicable, are eliminated from the respective accounts and any resulting
 gain or loss is included in the results of operations.




                                                95
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



(G) Compensated Absences

The County’s vacation policy for union and nonunion employees provides that such employees
  are to take vacation within the year it is earned, with no carry forward provisions. Thus,
  there is no County liability for unused vacation at December 31, 2010.

Certain County police, jail guards, probation officers and deputy sheriffs earn vested sick
  benefits that are paid at termination or retirement based on current rates of compensation.
  The liability for such benefits is recorded in the government-wide statements at current
  rates of compensation (see Note 8); amounts currently payable are not material.

Personnel of all other County departments generally may accumulate up to 120 days of sick
  leave. These future benefits do not vest and, accordingly, have not been recognized in the
  accompanying financial statement.

(H) Fund/Equity Balances

Classification of Fund Balance

As of December 31, 2010 the County had $912,841 of encumbrances in operating funds which
rolled over into the next fiscal year. Capital Projects had $7,309,286 of encumbrances at
December 31, 2010. For more details on Capital Projects encumbrances, see Note 5.

GASB Statement No. 54 establishes accounting and financial standards for all governments
that report governmental funds. It establishes criteria for classifying fund balances into
specifically defined classifications and clarifies definitions as follow:

       Nonspendable -- This classification consists of amounts that cannot be spent because
       they are either not in spendable form or are legally required to be maintained intact.
       The County has no amount to report in this classification.

       Restricted -- This classification consists of amounts that are restricted to specific
       purposes, as defined below by GASB Statement No. 34. The County’s restricted fund
       balances consist of external enabling legislation for the state, federal or local
       government grants.

       Committed -- This classification consists of amounts used for specific purposes imposed
       by formal action of the County’s highest level of decision-making authority (Chief
       Executive/Council). The removal or modification of the use of committed funds can
       only be accomplished by formal action prior to fiscal year-end by the County’s highest
       level of authority.




                                              96
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                                December 31 and June 30, 2010


       Assigned—This classification consists of amounts constrained by the County’s intent to
       be used for specific purposes that are neither restricted nor committed. The present
       procedure is for the Chief Executive and Controller to jointly assign amounts to be used
       for specific purposes before issuance of audited financial statements.

       Unassigned—This classification consists of amounts that have not been assigned to
       other funds and that have not been restricted, committed, or assigned to specific
       purposes within the General Fund. The General Fund should be the only fund that
       reports a positive unassigned balance.

The County’s policy is to apply expenditures against any restricted fund balance, committed
  fund balance, assigned fund balance, and then unassigned fund balance.

Classification of Net Assets

GASB Statement No. 34 requires the classification of net assets into three components –
 Invested in capital assets, net of related debt; restricted; and unrestricted. These
 classifications are defined as follows:

       Invested in capital assets, net of related debt -- This component of net assets consists
       of capital assets net of accumulated depreciation and reduced by the outstanding
       balances of any bonds, mortgages, notes or other borrowings that are attributable to
       the acquisition, construction or improvement of these assets.

       Restricted -- This component of net assets consists of constraints placed on net asset
       use through external restrictions, such as, constitutional provisions or enabling
       legislation.

       Unrestricted -- This component of net assets consists of net assets that do not meet
       the definition of ―restricted‖ or ―invested in capital assets, net of related debt.‖

The County’s policy is to apply expenses against restricted fund balance then unrestricted fund
  balance.

(I) Pending Governmental Accounting Standards Board Pronouncements

GASB has issued Statement No. 59 ―Financial Instruments Omnibus‖, effective for periods
  beginning after June 15, 2010. The objective of this statement is to update and improve
  existing standards regarding financial reporting and disclosure requirements of certain
  financial instruments and external investment pools for which significant issues have been
  identified in practice. The effect of implementation of this statement has not yet been
  determined.




                                              97
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


GASB has issued Statement No. 60 ―Accounting and Financial Reporting for Service Concession
  Arrangements‖, effective for periods beginning after December 15, 2011. This statement
  provides guidance for accounting and financial reporting for service concession
  arrangements. The effect of implementation of this statement has not yet been
  determined.

GASB has issued Statement No. 61 ―The Financial Reporting Entity: Omnibus‖, effective for
  periods beginning after June 15, 2012. The objective of this statement is to improve
  financial reporting for a governmental financial reporting entity by modifying existing
  requirements for the assessment of potential component units. The effect of
  implementation of this statement has not yet been determined.

GASB has issued Statement No. 62 ―Codification of Accounting and Financial Reporting
  Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements‖,
  effective for periods beginning after December 15, 2011. This statement establishes
  accounting and financial reporting standards for the financial reporting statements of state
  and local governments by bringing together reporting literature in one place with the
  guidance modified as necessary. The effect of implementation of this statement has not yet
  been determined.

(J) Reclassification of Prior Year Statements
Certain previously reported items in the financial statements have been reclassified to conform
  with the current year's classifications.

Component Units - Summary of Significant Accounting Policies

Significant accounting policies for the component units included in the accompanying financial
  statements are described below:

Allegheny County Airport Authority
Basis of Accounting

ACAA's financial statements are presented on the accrual basis of accounting. Revenues are
  recognized when earned and expenses are recognized when the related obligations are
  incurred. As permitted by GASB Statement No. 20, ACAA applies all GASB pronouncements
  as well as FASB Statements and Interpretations, Accounting Principles Board Opinions and
  Accounting Research Bulletins issued on or before November 30, 1989, except those that
  conflict with GASB pronouncements in accounting for its operations and has elected not to
  apply FASB Statements and Interpretations issued after November 30, 1989 to its financial
  statements.




                                              98
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Recognition of Revenue, Receivables and Deferred Revenue
Aviation and terminal building lease rental revenues include amounts computed in accordance
  with the Airport Operating Agreement (AOA), the term of which will expire no earlier than
  May 8, 2018, or when all of the debt service requirements have been funded, between the
  County, as sponsor of ACAA, and signatory airlines serving PIA, as well as certain fixed fees
  for nonscheduled airlines and private users of Allegheny County Airport (AGC). US Airways,
  Inc., one of the scheduled airlines, which together with its affiliated commuter airlines,
  accounted for approximately 26% of total enplaned passengers at PIA in 2010.

The AOA provides that the aggregate of airline fees and charges together with other revenues,
  including nonairline revenues, for each fiscal year should be sufficient to pay the operating
  expenses of the cost centers included in the AOA and to make all deposits and payments
  under bond ordinances and indentures issued for capital projects for ACAA.

Concession and rental car fees are generally based on a fixed percentage of tenant revenues
  subject to certain minimum monthly fees under the lease and concession agreement.
  During 2002, the Master Lease was extended through December 31, 2017. As part of the
  extension, the lessee has agreed to provide $10,000,000 in future years to inure to the
  benefit of both parties. During 2005, the agreement was amended to reduce the upfront
  fee paid to ACAA from $10,000,000 to $6,666,667 (received $3,333,333 in 2003 and 2004)
  and the percent of net revenues to be received by ACAA increased effective April 1, 2006.
  The deferred amount is being amortized over the term of the lease agreement.

Parking fees are revenues less operating expenses and a management fee, which is based on
  a fixed percentage of net revenues.

Passenger Facility Charges (PFC) were instituted October 1, 2001. Such PFC revenues are
  classified as non-operating, as the amounts are restricted for capital improvements, debt
  service, and certain other uses approved by the Federal Aviation Administration (FAA).

Transactions which are capital, financing, or investing related, are reported as non-operating
  revenues. Grants from governmental agencies for eligible construction projects are
  recognized as non-operating revenue as the related expenditures are made.

Current unrestricted deferred revenue consists of prepayments made by the airlines and
  concessionaires for aviation and rental revenues for the following year.

Current and noncurrent restricted revenue consists of deferred interest income being
  amortized into income over the term of the forward delivery agreements entered into by
  ACAA in conjunction with certain bond finance transactions.




                                              99
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


Noncurrent deferred revenue includes amounts funded by tenants of ACAA for certain capital
  assets. The deferred revenue amounts are being amortized using the straight-line method
  over the depreciable lives of the related assets through credits to current rents payable.

Risks and Uncertainties

Investment securities are exposed to various risks, such as interest rate, credit and overall
  market volatility. Due to the level of risk associated with certain investment securities, it is
  possible that changes in risks and values of investment securities will occur in the near term
  and that such changes could materially affect the amounts reported in the statements of net
  assets.

Inventories
Inventories are stated at the lower of cost or market (net realizable value). Cost is determined
  using the weighted average method of accounting. Inventories are comprised of
  construction related materials and parts used for maintenance of the facilities and
  equipment.

Capital Assets
Land, buildings, and equipment are stated at historical cost. Capitalized interest costs, net of
  related interest income, are recognized during the construction stage on all projects, except
  for those financed with grants-in-aid or funds restricted through agreements with scheduled
  airlines serving PIA (see Note 5). Grants receivable from governmental agencies that are
  included in restricted assets in the accompanying statements of net assets represent earned
  but uncollected grants that are restricted for use in the qualifying construction projects.
  Depreciation is computed using the straight-line method over the estimated economic lives
  of the respective assets. The estimated useful lives are as follows:
                                                                 Years
                             Terminal buildings                  10-30
                             Runways and taxiways                 20
                             Parking Garage / Lots / Etc         15-40
                             Hangars                             5-30
                             Other Structures                    10-30
                             Roadways                            10-20
                             Mobile and Other Equipment          10-20
                             Computer/Security Equip & Systems   5-20
                             Utilities                           10-40
                             Other Assets                        10-30


Deferred Issuance Costs

Costs incurred in connection with the issuance of all long-term debt of ACAA are deferred and
 amortized using the interest method. Unamortized costs are shown on the Statement of Net
 Assets as noncurrent deferred financing costs.



                                               100
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                               December 31 and June 30, 2010



Advanced Airline Fundings

The AOA provides for advanced airline fundings (which are primarily maintained in the
  restricted cash funding reserve account) to cover capital, operating and debt service
  amounts as approved by the airlines, as defined in the AOA.

Vested Sick Benefits

Certain firefighters employed by ACAA earn vested sick benefits that are paid at termination or
  retirement based upon the then current rates of compensation. Liabilities for such benefits
  are accrued at current rates of compensation.

Cash and Cash Equivalents

The ACAA maintains unrestricted and restricted equity in pooled cash and cash equivalents.
  Airport Revenue Bond investments are held in trust in accordance with the bond ordinances.

Fund/Equity Balances

Unrestricted net assets at December 31, 2010 are as follows:
               Unrestricted net assets available for operations   $    2,807,514
               Restricted net deficit - PFC funds                     25,633,854
               Unrestricted net assets
                per Statement of Net Assets - Component Units     $   28,441,368

ACAA has incurred Passenger Facility Charges (PFC) reimbursable expenditures in excess of
  PFC revenues as of December 31, 2010. The PFC deficit results in a reduction of
  unrestricted net assets.

Port Authority of Allegheny County

Basis of Accounting

The financial statements of PAT have been prepared in conformity with accounting principles
  generally accepted in the United States as applicable to governments as previously
  summarized. Accounting records covering both transit operations and capital grant projects
  are maintained on the accrual basis of accounting, whereby revenues and expenses are
   recognized in the period earned or incurred. All transactions are accounted for in a single
  enterprise fund.

As permitted by GASB Statement No. 20, PAT applies all GASB pronouncements as well as
  FASB Statements and Interpretations, Accounting Principles Board Opinions and Accounting
  Research Bulletins issued on or before November 30, 1989, except those that conflict with
  GASB pronouncements, in accounting for its operations.



                                                   101
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


PAT’s policy is first to apply restricted net assets to expenses incurred for which there are both
  restricted and unrestricted net assets available.

Cash and Cash Equivalents

Cash and cash equivalents include amounts in demand deposits, as well as short-term
  investments with a maturity date within three months of the date acquired.

Recognition of Revenue, Receivables and Deferred Revenue

Passenger fares are recorded as revenue at the time services are performed. Revenues from
  ticket sales are recognized at the point of sale. Weekly and monthly passes are sold on a
  consignment basis to vendors who maintain the right of return on unsold passes. Revenues
  from pass sales are recognized upon receipt.

Grants and contributions are recorded as revenue when all applicable eligibility requirements
  are met. The Federal Transit Administration (FTA), the Pennsylvania Department of
  Transportation and the County provide financial assistance and make grants directly to PAT
  for operations, acquisitions of property and equipment and other capital related
  expenditures.

In fiscal year 2008, Act 44 was enacted by the Commonwealth of Pennsylvania. The Act
   created a dedicated source of funding called the Public Transportation Trust Fund (PTTF)
   which provides both operating and capital assistance to PAT as well as all other transit
   agencies in the State. The PTTF includes several existing sources of state funding as well
   as some new sources. Also, it eliminates the filing of separate applications to receive those
   funds.

The sources of revenue available to the State to fund PTTF are: A percentage from sales tax
  (4.4%), lottery funds for the Free Transit for Senior Citizens Program, State bond funding
  for capital projects, remainder of Commonwealth of Pennsylvania Public Transportation
  Assistance Fund (PTAF) after funding payments on existing debt, and annual payments
  from the Turnpike Commission.

Five program accounts have been created within the new trust fund: Transit Operating
   Assistance, Asset Improvement Program, Capital Improvements Program, New Initiatives,
   and Programs of Statewide Significance. Local matching funds are required to receive
   assistance under most programs.

PAT received $184,457,990 in operating assistance under Act 44. This funding required local
  matching funds of $27,668,700 which was provided by the County. During fiscal 2010,
  approximately $9.2 million of Act 44 funds were expended that PAT received and
  recognized as revenue during fiscal year 2009.




                                               102
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


Because of existing debt agreements, PAT received capital funding under PTAF totaling $34.9
  million to use for debt service. Local matching share required for this funding was $1.2
  million which was provided by the County.

PAT also received $44.8 million in capital funding under Act 44. Approximately $16.8 million
  was used for Infrastructure Safety and Renewal Programs and approximately $2.8 million
  was used for vehicle overhaul which do not require County matching funds. Approximately
  $25.2 million was used for other capital projects and requires County matching funds.

Deferred revenues at June 30, 2010, included: $17.4 million of State Act 3 funds to be used
  for bus procurement, $5.7 million of County funds to be used for capital grant matching,
  and $6.7 million of State PTAF funds to be used for 2011 debt service.

Capital Assets

Transit operating property and equipment are recorded at cost and include certain property
   acquired from predecessor private mass transportation companies. Transit operating
   property and equipment also include certain capitalized labor and overhead expenses
   incurred to ready such property and equipment for use. Interest incurred during the
   construction phase of capital assets is included as part of the capitalized value of the assets
   constructed. During the current year, no interest expense was capitalized.

Depreciation is recorded using the straight-line method based on estimated useful lives that
  generally range from 4 to 30 years.

Construction in progress primarily consist of the North Shore Connector project. PAT has
  entered into various construction contracts related to the completion of these projects.

Compensated Absences
PAT accrues vacation benefits earned by its employees.

Fund/Equity Balance Restatement
Effective July 1, 2009, PAT adopted, GASB Statement No. 53, ―Accounting and Financial
  Reporting for Derivative Instruments.‖ This Statement addresses the recognition,
  measurement, and disclosure of information regarding derivative instruments entered into
  by state and local governments. The Statement specifically requires governments to
  measure most derivative instruments at fair value in their financial statements that are
  prepared using the accrual basis of accounting. The standard requires that accounting
  changes to conform with the provisions of this statement should be applied retroactively by
  restating financial statements for all prior periods presented. As such, beginning net assets
  as of June 30, 2009 were restated from $1,120,005,518 to $1,097,884,005 to comply with
  the provision of this statement.




                                               103
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010



Community College of Allegheny County
Basis of Accounting

The financial statements of CCAC have been prepared in accordance with the accounting
  guidance and reporting practices applicable to public colleges and universities, as outlined in
  the accounting pronouncements issued by the GASB. CCAC follows all GASB
  pronouncements as well as FASB Statements and Interpretations, Accounting Principles
  Board Opinions and Accounting Research Bulletins issued on or before November 30, 1989,
  and has elected not to apply FASB Statements and Interpretations issued after November
  30, 1989, to its financial statements.

CCAC has determined that it functions as a business type activity, as defined by GASB. The
  effect of interfund activity has been eliminated from these financial statements, and they
  have been prepared on the accrual basis of accounting with a flow of economic
  measurement focus. Revenues are recognized when earned and expenses are recognized
  when incurred.

CCAC has not adopted a formal policy regarding whether to apply restricted resources or
  unrestricted resources when an expense is incurred for purposes that both restricted and
  unrestricted net assets are available. Generally CCAC attempts to utilize restricted net
  assets first when practicable.

The Foundation is a private non-profit organization that reports under FASB standards,
  including FASB No. 117, Financial Reporting for Not-for-Profit Organizations. As such,
  certain revenue recognition criteria and presentation features are different from GASB
  revenue recognition criteria and presentation features. No modifications have been made to
  the Foundation’s financial information in CCAC’s financial reporting entity for these
  differences.

Fund/Equity Balances
Of the total net assets of CCAC as of June 30, 2010, the following constraints upon their use
  have been imposed, either externally or internally by action of the CCAC Board of Trustees
  or the Foundation’s Board of Directors, as follows on the next page:




                                              104
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                 December 31 and June 30, 2010


        Restricted Net Assets:
           Restricted Student Net Assets:
                    Scholarship and tuition funds                            $     349,700
                    Student development funds                                    1,236,590
                    Tuition equalization                                         3,362,435
           Restricted Foundation Net Assets:
                    Other projects                                                1,376,519
                    Permanently                                                     836,767
                       Total restricted net assets                           $   7,162,011
        Unrestricted Net Assets:
           CCAC Designated Net Assets:
                    Campus building projects                                 $    6,000,000
                    Reserve for facilities, emergency and other                   6,295,593
                    West Hills renovations project                                   12,577
                    915 Ridge property                                              740,328
                    Auxiliary Services – Bookstore                                3,679,496
                    Auxiliary Services – Food Service                               663,165
                    Future operations                                             1,140,845
           Foundation Unrestricted Net Assets                                     2,234,866
                       Total unrestricted net assets                         $ 20,766,870

Restricted Student Net Assets:

Scholarships and Development -- Student net assets include funds that have been generated
  from student related sources, the principal source of which is student fees. As such, the
  net assets must be used specifically for the benefit of students. The Board of Trustees
  determines the allocation of scholarships and development.

Tuition Equalization Reserve -- A reserve within student funds is mandated by the Department
  of Education which specifies that when student revenues exceed one-third of the annual
  operating cost of CCAC, the excess must be set aside in restricted fund. Otherwise, when
  student revenues are less than one-third of the annual operation costs of CCAC that
  deficiency can be funded through the tuition equalization reserve fund. In fiscal 2010,
  student revenues exceeded one-third of the annual operating costs by $3,362,435.

Restricted Foundation Net Assets:

Temporarily Restricted -- Temporarily restricted assets whose use is limited by stipulations
  imposed by contributors or grantors until those stipulations are fulfilled and removed by the
  Foundation’s actions. Funds are to be used for projects or scholarships.

Permanently Restricted -- The use of principal is restricted indefinitely by stipulations imposed
  by contributors or donors. Income earned on permanently restricted assets is used for
  scholarships of students and other needs of the Foundation, as directed by the donor.




                                                       105
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


Board-Designated Net Assets:

Campus Building Projects and West Hill Renovation Project – At the October 1997 meeting, the
  Board of Trustees authorized an increase in Campus building projects reserve from a
  balance of $1,470,613 to $5,000,000 to provide the College share of funds for renovation
  and construction of science labs at the campuses. The science labs project total was
  estimated at that time at $10,000,000 and consisted of a new science building at Allegheny
  Campus, major improvements to the South Campus labs, and less extensive updating costs
  to the Boyce and North Campuses. In 1998, after discussions with the architect the
  estimate was increased to $12,000,000. Accordingly, at the October 1998 meeting, the
  Board allocated an additional $1,000,000 to the reserve from that fiscal year’s interest
  income. The reserve then amounted to $6,000,000. In May 2006 the Board approved the
  2006–2008 Capital Outlay Plan, which included the transfer of this $6,000,000 to a new
  reserve called the ―West Hills Renovation Project Reserve.‖ At its November 2007 meeting,
  the Board authorized an addition of $1,000,000 to the Campus Building Projects Reserve
  from unrestricted net assets as of June 30, 2007, bringing the total in this reserve as of
  June 30, 2007 to $3,000,000. During fiscal year 2008, $569,435 was spent from that
  reserve for CCAC’s one-half share of the fiscal 2008 debt service on the portion of the new
  2008 bond issue attributable to the Science Center construction project. At its November
  2008 meeting, the Board authorized an addition of $3,000,000 from unrestricted net assets
  as of June 30, 2008, bringing the total of the Campus Building Projects Reserve as of June
  30, 2008 to $5,430,565. Payments during 2008-2009 for CCAC’s one-half share amounted
  to $567,386, further reducing the Reserve to $4,863,179. Payments made during fiscal
  2010 for CCAC’s one-half share were $567,586. The Board designated an additional
  $1,704,407, bringing the reserve total to $6,000,000.

Reserve for Facilities, Emergency, and Other Compelling Needs - At the November 2008
  meeting of the CCAC Board, annual operating budget policy was revised to call for an
  administrative process that annually sets aside a portion of projected revenues and existing
  unrestricted net assets to create a reserve for future years for ongoing facilities
  maintenance, renovations, construction, and other emergencies or compelling needs,
  including but not limited to legal, technological, safety/risk management, academic, or other
  financial imperatives. After revenues to fund current operating needs and strategic goals
  for the budget year have been identified, it is the goal to generate excess revenues to
  provide for an ongoing net asset balance at the level equal to at least fifteen percent of the
  annual current fund budget, with the target of achieving the goal in five to ten years.
  During fiscal year 2008, a $4,000,000 reserve was established. In fiscal year 2009, the
  reserve was increased by an additional $2,000,000. For fiscal 2010, the reserve was
  increased by another $295,593, resulting in a total of $6,295,593 now set aside in this
  reserve.

915 Ridge Property – Rental income in excess of rental expenses are designated for future
  improvements or renovations to 915 Ridge property. During fiscal 2010, expenses
  exceeded revenues by $30,999, thereby reducing the designated net assets.




                                              106
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Unrestricted Net Assets -- Unrestricted and board-designated resources, which are not subject
  to restrictions imposed by contributors or grantors.

Auxiliary Services -- The CCAC Board has designated the results of Auxiliary operations to be
  added or deducted to designated net assets.

Recognition of Revenue

Reimbursements for operating expenditures from the County and the State are recorded as
  revenue when earned. Audit adjustments are recorded to revenue when they are probable.

The Community College Act of 1963, as amended, specifies that 50% of net qualifying debt
 service and rental expenditures shall be reimbursed through State capital funds. The
 County has stipulated that its share of such expenditures (also 50%) is to be paid out of
 County funds advanced for operating expenditures.

Deferred revenues are composed of deferred grant revenue and student tuition revenue and
  deposits. Deferred grant revenue represents monies received on approved grants in
  advance of incurring the corresponding expenses. Student deposits and tuition received at
  June 30, and applicable to subsequent summer and fall terms, have been deferred and are
  included in revenue in the succeeding year. The deposits generally are not refundable.

Capital Assets

Property and equipment are recorded at cost less an allowance for depreciation and
  amortization. Interest expense is capitalized on qualifying assets during the period
  necessary to ready the assets for its intended use. Interest capitalized is net of interest
  earnings, if any, from proceeds of tax-exempt borrowings for the respective projects.
  Repair and maintenance costs are expensed as incurred; renovations and improvements,
  which extend the physical or economic life of an asset, are capitalized.

Depreciation and amortization of leased and owned assets are computed on the straight-line
  method over the estimated useful lives of the leased and owned property and equipment.

 The estimated useful lives are as follows:
                                                          Years
                                 Buildings                 50
                                 Furniture and fixtures    10
                                 Library books             10
                                 Vehicles                   7
                                 Computer equipment         5
                                 Computer software          3
                                 All other equipment        7




                                                107
                                      COUNTY OF ALLEGHENY
                                  Notes to the Financial Statements
                                   December 31 and June 30, 2010



Foundation Endowment

The Foundation’s endowment was established for a variety of purposes, including for
  scholarships, facilities, or unrestricted operating purposes. Its endowment includes both
  donor-restricted endowment funds and unrestricted funds designated by the Board of
  Directors to function as endowments. Net assets associated with endowment funds,
  including funds designated by the Board of Directors to function as endowments, are
  classified and reported based on the existence or absence of donor-imposed restrictions.

The Foundation has interpreted Pennsylvania State Act 141 of 1998 (Act) as requiring the
  preservation of the fair value of the original gift as of the gift date of the donor-restricted
  endowment funds absent explicit donor stipulations to the contrary. As a result of this
  interpretation, the Foundation classifies as permanently restricted net assets (a) the original
  value of gifts donated to the permanent endowment, (b) the original value of subsequent
  gift to the permanent endowment, and (c) accumulation to the permanent endowment
  made in accordance with the direction of the applicable donor gift instrument at the time the
  accumulation is added to the fund and investment income in excess of amounts designated
  for current operations and losses up to the extent of accumulated gains. For purposes of
  this note, the endowment is considered to be investments.

Endowment net asset composition by type of fund at June 30, 2010, and changes in
  endowment net assets for the fiscal year ended June 30, 2010, are as follows:
                                                  Unrestricted      Permanently
                                                Board Designated     Restricted         Total

Endowment Net Assets, Beginning of Year         $      1,349,129         769,334        2,118,463
Investment return:
  Investment income                                      31,832             -              31,832
   Net appreciation (realized and unrealized)           122,634             -             122,634

     Total investment                                   154,466             -             154,466

Contributions                                               -             67,433           67,433

Other changes:
Withdrawals                                             (157,619)           -            (157,619)
Miscellaneous income (expense)                            (8,466)           -              (8,466)

Endowment Net Assets, End of Year               $      1,337,510         836,767        2,174,277



Redevelopment Authority of Allegheny County

Basis of Accounting

The financial statements of RAAC have been prepared using the accrual basis of accounting,




                                                 108
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



  and accordingly reflect all receivables, payables, and other liabilities in conformity with
  accounting principles generally accepted in the United States as applicable to governments
  as previously summarized for the County.

Intergovernmental Revenue

Intergovernmental revenue is recognized when the related expenditure is incurred. Deferred
  revenues arise when RAAC receives resources prior to incurring qualifying expenditures.
  Any amounts not collected, for which related expenditures have been incurred prior to
  December 31, 2010, are reflected as due from other governments.

Loans Receivable

Loans receivable are recognized when the loan is established.

RAAC has residential rehabilitation loans, which are presented at a net zero value, as they are
 only repayable out of available sales proceeds. These loans are fully reserved at the time of
 issue. The reserve is reversed and income is recognized when the loans are repaid, or when
 the amount of repayment is determinable and reasonably assured.

Included in RAAC are Economic Development Fund receivables consisting of 33 loans (between
  $100,000 and $2,500,000) with rates ranging from 0% to 7% and with terms ranging from
  10 years to 25 years.

It is RAAC’s policy to provide for future losses on loans based on an evaluation that, in RAAC’s
  judgment, require consideration in estimating loan losses of the various programs.

Loans receivable are recorded at their principal balance due, less an allowance for uncollectible
  loans. Interest income on loans is recognized at the loans’ stated interest rates.

Liens Receivable

As of year-end, the liens are fully reserved, as management determined the receivable to be
   uncollectable.

Capital Assets

Purchases of capital assets, consisting principally of office furniture and equipment, are
  recognized as expenditures when incurred. Except in the business type activities as
  discussed below, RAAC does not record capital assets as required by U.S. generally accepted
  accounting principles because their historical cost is not known. However, capital assets are
  not believed to be material to RAAC’s financial position.




                                              109
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Real estate acquired in conjunction with RAAC's various programs are recognized as
  expenditures when purchased and are not capitalized because: (1) the property is not used
  in RAAC’s operations, and; (2) the ultimate amount to be realized upon disposition of the
  property does not generally accrue to RAAC's benefit. Land inventory is recorded as an
  asset at the lower of cost or market value until released to a developer for development
  program activities.

Capital assets, which include land, buildings, and building improvements, are reported in the
  applicable business-type activities. Capital assets are defined by RAAC as assets with an
  initial, individual cost of more than $5,000 and an estimated useful life in excess of three
  years. Such assets are recorded at historical cost or estimated historical cost if purchased or
  constructed. The cost of normal maintenance and repairs that does not add to the value of
  the asset or materially extend assets’ lives is not capitalized.

Buildings and building improvements are depreciated using the straight line method. Buildings
  are assigned a useful life of 30 years and tenant improvements are amortized over the life of
  the lease.

Allegheny County Industrial Development Authority

Basis of Accounting

ACIDA’s Administrative Fund, the IDA Bond and certain other projects are fund types
  accounted for on the accrual basis of accounting. Accordingly, revenues are recorded when
  earned and expenses are recorded when incurred.

As permitted by GASB Statement No. 20, ACIDA applies all GASB pronouncements as well as
  FASB Statements and Interpretations, Accounting Principles Board Opinions and Accounting
  Research Bulletins issued on or before November 30, 1989, except those that conflict with
  GASB pronouncements, in accounting for its proprietary operations.

Cash and Cash Equivalents

For purposes of presentation, the ACIDA considers all highly liquid investments with a maturity
  of three months or less when purchased to be cash equivalents.

Administrative Fees

The Administrative Fund charges those entities on whose behalf debt is issued a closing fee at
  the inception of each issue and annual fees due on each anniversary of the issue for as long
  as the issue is outstanding. Beginning in 2003, new loans issued must pay the first annual
  fee at closing and then on each anniversary of the issue for as long as the issue is
  outstanding. Administrative fees are non-refundable and are recognized as revenue at the



                                              110
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



  time they are due as management believes this approach best matches revenues with
  related expenses.

Allegheny HealthChoices, Inc.

Basis of Accounting

The financial statements of AHCI have been prepared using the accrual basis of accounting,
  and accordingly reflect all significant receivables, payables, and other liabilities.

Capital Assets

Prior to 2001, capital assets purchased with Allegheny County MH/MR base funds, as well as,
  certain capital assets purchased with Allegheny HealthChoices funds were expensed as
  opposed to being capitalized and depreciated. These amounts are reported as capital assets
  with offset costs applied to the program.

Since 2002, acquisitions of furniture and equipment in excess of $1,000 are capitalized. In
  2008, the threshold for capitalization was raised to $3,000. Furniture and equipment are
  carried at cost or, if donated, at the approximate fair value at the date of donation.
  Depreciation was computed using the straight-line method over the estimated useful lives of
  the capital assets.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, in banks, as well as, all short-term highly
  liquid investments with maturities from date of purchase of three months or less.

Recognition of Revenue and Deferred Revenue

AHCI entered into a renewal contract with the County’s Human Services – Division of
 Behavioral Health. Effective January 1, 2009, AHCI entered into an amended agreement
 with Allegheny County, whereby AHCI will be paid 3.0% of the capitation payments made
 by the Pennsylvania Department of Public Welfare to Allegheny County. Of this amount,
 .05%, shall be retained by AHCI and designated for approved HealthChoices program
 enhancements. Total AHCI revenue for the year ended December 31, 2010 is $5,194,606.
 This amount is comprised of gross capitation revenues received of $7,795,888 plus interest
 earned of $7,019, less the amount to be repaid to the County of $2,567,595 related to
 2010, and the decrease in the amount of capitation revenue deferred. The change in the
 deferred balance from December 31, 2009, of $40,706 is reflected as a decrease in the
 payable to the County.




                                             111
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


The contract permitted AHCI to defer an amount equal to approximately two months revenue
 as of December 31, 2010 for cash flow purposes. The total deferral amount is $1,082,770
 at December 31, 2010.

Concentrations

AHCI receives a substantial amount of its support from various government sources. A
 significant reduction in the level of this support, if this were to occur, could have an effect
 on the programs and activities of AHCI.

Allegheny County Parks Foundation

Basis of Accounting

The financial statements of the Parks Foundation have been prepared using the accrual basis
 of accounting. Net assets, revenues and support are classified based on the existence or
 absence of donor-imposed stipulations. Accordingly, the net assets of Parks Foundation and
 the changes therein are classified and reported as either unrestricted net assets—not subject
 to donor-imposed stipulations and temporarily restricted net assets—subject to donor-
 imposed stipulation that may or will be met, either by action of the Parks Foundation and/or
 the passage of time. When a restriction expires, temporarily restricted net assets are
 reclassified to unrestricted net assets.

Capital Assets

Property and equipment are stated at cost. Depreciation is computed on the straight-line basis
   over the estimated useful lives of the assets, which range from 3 or more years.
   Maintenance and repairs are expensed as incurred.

Fund/Equity Balance

Temporarily restricted net assets as of December 31, 2010, subject exclusively to purpose
restrictions, are as follows:


                           North Park Multi-Use Trail     $     598,000
                           Friends of the Park Projects         275,000
                           South Park Connector Trail           254,645
                           Volunteer Initiative                  25,000
                           Children's Project                    25,000
                           Community Awareness                   20,536
                                                          $   1,198,181




                                                 112
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Support and Revenue

Support from grants is recorded when the award is made and any related conditions are
 known. The support is recorded as unrestricted or temporarily restricted depending upon
 the existence of conditions placed upon the use of the award by the donor.

Unconditional promises to give that are expected to be collected within one year are recorded
 at net realizable value. Unconditional promises to give that are expected to be collected
 beyond one year period are recorded at the net present value of their estimated future cash
 flows. The discounts on these amounts are computed using risk-free interest rates
 applicable to the years in which the promises are received. Amortization of the discounts is
 included in contribution revenue.

Allegheny County Conservation District

Basis of Accounting

The financial statements of the Conservation District have been prepared using the accrual
  basis of accounting.

Cash and Cash Equivalents

For purposes of presentation, the Conservation District considers all highly liquid investments
  with a maturity of three months or less when acquired to be cash equivalents.

Capital Assets

Property and equipment are stated at cost. Depreciation is computed on the straight-line basis
   over the estimated useful lives of the assets, which range from 5 to 10 years. Maintenance
   and repairs are expensed as incurred.

Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc.
Basis of Accounting
The financial statements of Memorial Hall have been prepared using the accrual basis of
  accounting. Revenues are recognized when earned and expenses are recognized when
  incurred.

Cash and Cash Equivalents
For presentation purposes, Memorial Hall considers all highly liquid investments with original
  maturities of three months or less when acquired to be cash equivalents.




                                              113
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Contributions

Contributions received are recorded as unrestricted, temporarily restricted, or permanently
  restricted support depending on the existence or nature of any donor restrictions. All other
  donor-restricted contributions are reported as increases in temporarily or permanently
  restricted net assets depending on the nature of the restrictions. When a restriction expires
  (that is, when a stipulated time restriction ends or purpose restriction is accomplished),
  temporarily restricted net assets are reclassified to unrestricted net assets and reported in
  the statement of activities as net assets released from restrictions.

Contributed services (in-kind contributions) for the year ending December 31, 2010 do not
  meet the criteria for inclusion in the accompanying financial statements. Memorial Hall
  receives donation of services of immeasurable benefit to the organization from many
  individuals.

During 2010, SSMH deaccessioned several collection items. A total of $3,709 was received for
  the sale of the deaccessioned items. During 2010, SSMH used accumulated proceeds to
  cover the costs of the display material for the exhibits and a portion was used for salaries.

Capital Assets

Capital assets are recorded at cost. Depreciation of capital assets and leasehold improvements
  are calculated on a straight-line basis over the estimated service lives. Capital purchases
  greater than $1,000 and with a life greater than one year are capitalized.

The County transferred ownership to Memorial Hall of the artifacts and collections held. The
  collections are not recognized as assets on the statement of net assets. Purchases of
  collection items are recorded as decreases in unrestricted net assets in the year in which
  the items are acquired or as decreases in restricted for projects section of net assets if the
  assets used to purchase the items are restricted by donors. Contributed collection items are
  not reflected on the financial statements. Proceeds from deaccessions or insurance
  recoveries are reflected as increases in the appropriate net asset classes.

(2) Legal Compliance

Negative Unassigned Fund Balances

The Capital Projects Fund has an unassigned negative fund balance of $24.6 million at
  December 31, 2010. The County has subsequently (Note 16) issued, on March 1, 2011,
  General Obligation Bond C-65 in the amount of $76.2 million to provide proceeds for Capital
  Fund projects.




                                              114
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


The County Grants Fund has an unassigned negative fund balance of $38,914 at December
  31, 2010. The County will fund this immaterial deficit in 2011.

(3) Cash and Investments
GASB Statement No. 40, ―Deposit and Investment Risk Disclosures,‖ requires disclosures
  related to the following deposit and investment risks: credit risk, custodial credit risk,
  concentration of credit risk, interest rate risk, and foreign currency risk. The following is a
  description of the County’s deposit and investment risks:

Deposits and Investments
Pennsylvania statutes provide for investment of governmental funds into certain authorized
  investments. The statutes also allow pooling of governmental funds for investment
  purposes. The County Investment Board has adopted an investment policy that adheres to
  State statutes and further limits permitted investment types and procedures. This policy was
  last revised October 28, 2009. The primary objectives, in priority order, of the Board’s
  investment activities are safety of principal, liquidity, and return on investment.

As of December 31, 2010 the book value of County cash and short-term investments
  (excluding Trust and Agency funds which will be described separately) was $103,135,157.

The bank balance of deposits and fair value of short-term investments was as follows:

                  Cash on hand                           $             71,815
                  Checking and savings accounts                    56,945,280
                  Money market checking/savings accounts           46,842,852
                  Pennsylvania INVEST                              16,265,447
                  Mutual funds                                             500
                                             Total       $        120,125,894

The following is a description of the risks related to the cash deposits:

Deposits

Custodial Credit Risk – The risk that, in the event of a bank failure, the County’s deposits may
  not be returned to it. The County’s investment policy mitigates custodial credit risk by
  requiring collateralization of uninsured balances of certain investments, including certificates
  of deposit, savings accounts, time deposits, checking with interest accounts, and repurchase
  agreements. The County’s investment policy limits collateral to U.S. Treasury Obligations
  and U.S. Government Agency investments. The policy requires a collateralization level of
  102% of the market value of principal and accrued interest and that collateralization be
  pledged in accordance with Act 72 of the Pennsylvania State Legislature, Section 3836-1
  through Section 3836-6.




                                               115
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


As of December 31, 2010, $1,500,000 of the County’s bank balance was insured by the
  Federal Depository Insurance Corporation. The remaining bank balance of $118,554,079 is
  uninsured, exposed to custodial credit risk but is collateralized in accordance with Act 72,
  which requires the institution to pool collateral for all governmental deposits and have the
  collateral held by an approved custodian in the institution's name.

Investments

As of December 31, 2010, the County’s short term investments are considered to be cash
  equivalents for presentation on the Statement of Net Assets and Governmental Fund
  Balance Sheet.

The following is a description of the risks related to the County’s investments:

Credit risk - The risk that an issuer or other counterparty to an investment will not fulfill its
  obligations is called credit risk. Since the highest priority of the investment program is
  safety of principal, the County’s investment policy minimizes credit risk by permitting only
  certain types of investments and establishing minimum quality levels for the riskier
  investments.

The County Treasurer is authorized by the County Board of Investment to invest in U.S.
  Treasury Obligations, directly issued U.S. Federal Agency securities, repurchase agreements,
  deposit accounts, obligations of the Commonwealth of Pennsylvania, shares of investment
  companies (mutual funds), certificates of deposit, commercial paper, Pennsylvania Local
  Government Investment Trust (PLGIT), and INVEST. INVEST is a government pool
  established by the State Treasurer exclusively for investment by Pennsylvania municipalities.

Repurchase agreements may only be established with a primary government securities dealer
  or a depository institution doing business in Pennsylvania. All agreements must be
  collateralized at 102% of the market value of principal and accrued interest by U.S. Treasury
  or U.S. Government Agency securities with AAA ratings and maturities of 30 years. In
  addition, the agreements must include a definite termination date.

Shares of Investment Companies must be rated AAA. The Investment Company’s holdings may
  only be in the investments listed in the previous paragraph. In addition, the Companies must
  be in compliance with Section 2a-7 of the SEC rules.

Commercial Paper must be rated A-1 / P-1 (by Moody’s and S&P respectively) or better.
  Maturities of commercial paper must not exceed 270 days. All transactions must be made
  from a registered broker or dealer.

At December 31, 2010 the County’s shares of investment companies (mutual fund
   investments) were all rated Aaa by Moody’s and AAAm by Standard and Poor’s. The
   Pennsylvania INVEST Daily (investment pool) was rated AAAm by S&P.




                                                116
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


Custodial Credit Risk – For an investment, custodial credit risk is the risk that in the event of
  the failure of the counterparty, the County will not be able to recover the value of its
  investments or collateral securities that are in the possession of an outside entity. The
  County’s safekeeping and custody policy minimally requires that all security transactions be
  conducted within the confines of Act 72. Direct security transactions must be on a delivery-
  versus payment basis. All securities are to be held in the Treasurer’s name. If a
  counterparty is used, the counterparty must send written confirmation of the transaction to
  the Treasurer.

Concentration of Credit Risk – According to the County’s investment policy, diversification will
  prevent overconcentration in a sector and minimize the opportunity for risky investments.
  With the exception of U.S. Treasury securities, no more than 75% of Allegheny County’s
  total investment portfolio will be invested in a single security type or with a single financial
  institution. As of December 31, 2010 the Treasurer’s Office was in compliance with this
  policy.

Interest Rate Risk – Unless matching reserve funds to a specific cash flow, the County’s
  investment policy limits investment maturities to a maximum of 13 months from the date of
  purchase. An exception to this rule regards repurchase agreements which should be
  collateralized with maturities of thirty years. Reserve funds may be invested in securities
  exceeding five years if the maturity of such investments is reasonably coincides with the
  expected use of the funds.

Agency Fund Deposits and Investments

The County maintains bank accounts for the various Trust & Agency funds. The Office of the
  County Treasurer is responsible for investing a portion of these deposits. All the policies
  described above which govern investment of the County’s other funds also govern the Trust
  & Agency deposits the County Treasurer manages. The other County departments manage
  the rest of the deposits in accordance with various legislation. The amount of deposits held
  in investments by departments other than the Treasurer’s Office is very minimal. Most
  funds are held in FDIC insured checking, savings, or certificates of deposit.

All investments are considered cash equivalents for presentation on the Statement of Fiduciary
   Net Assets. The maturity dates of all investments are less than one year. As of December
   31, 2010 the total book balance for cash and investments was $48,228,233. The bank
   balance of deposits and fair value of short-term investments were as follows:

                  Cash on hand                                $           57,573
                  Checking and savings accounts                       25,677,218
                  Certificates of deposit                              5,552,834
                  Money market savings/checking                       17,334,555
                  Mutual funds                                           284,388
                                             Total                $   48,906,568




                                               117
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


As of December 31, 2010, $2,032,454 of the bank balance was insured by the Federal
  Depository Insurance Corporation. The remaining bank balance of $46,816,541 was
  uninsured, exposed to custodial credit risk, but is collateralized in accordance with Act 72 of
  the Pennsylvania State Legislature which requires the institution to pool collateral for all
  governmental deposits and have the collateral held by an approved custodian in the
  institution's name.

At December 31, 2010, the Blackrock and Federated mutual funds were both rated AAAm by
  Standard & Poor’s, and Aaa by Moody’s.


Pension Trust Fund Deposits and Investments

The Pension Trust Fund’s investments are held separately from those of other County funds.
  Investments in the pension trust fund are stated at fair value. Short-term investments are
  reported at cost, which approximates fair value. Securities traded on a national or
  international exchange are valued based on the last reported sale price. Bonds and notes
  not regularly on a national exchange are valued based on the last reported sale price or the
  mean of the latest bid and ask price. Other investments consist of ownership interests in
  various private equity funds. These interests are recorded at the latest available book value
  of the Pension Trust Fund’s ownership interest, generally being December 31, 2010. The
  book value for the investments approximates fair value due to the requirement for these
  funds to follow the guidance of Codification: Accounting Standards Codification 820-10 Fair
  Value Measurements.

The Retirement Board has adopted investment guidelines that summarize the investment
  philosophy of the Board and set forth investment targets and performance objectives for the
  Pension Fund. The investment guidelines were last revised November 9th, 2006. In 2010
  the Retirement Board approved changes to the target allocations for investments. The
  investment policy has not been revised yet to include these changes. However, since the
  changes are already in effect for the fund, the new target allocations are included in these
  notes.




                                               118
                                              COUNTY OF ALLEGHENY
                                          Notes to the Financial Statements
                                           December 31 and June 30, 2010


As of December 31, 2010 the Retirement Board had the following cash and investments in its
  Pension Trust Fund:


                                                                               Investment Maturities from December 31, 2010
                  Cash or                                          Less than             1-10                10-20          More than
             Investment Type                    Fair Value          1 year              Years                Years           20 years
U. S. Government & related agency debt           32,006,542    $     903,445       $    22,039,288     $    5,636,518    $    3,427,291
Fannie Mae and Freddie Mac debt                   6,818,777             -                  875,429          1,361,755         4,581,593
Corporate debt                                   54,311,360          309,497            45,223,672          2,975,915         5,802,276
Non-U.S. gov't and corporate debt                10,348,761        1,000,000             8,545,448            648,200           155,113
    Total debt securities                       103,485,440        2,212,942            76,683,837         10,622,388        13,966,273

Cash and cash equivalents                         18,106,853
Fixed income mutual funds                         85,432,127
U.S. common and preferred stock                 103,233,492
ADR's                                             3,612,126
S&P 500 index fund                               61,321,680
Non-U.S. stocks and equity mutual funds         177,506,160
Hedge funds                                         959,546
Real estate investment trusts                    42,827,571
Commodities fund                                 21,247,278
Private equity/venture capital                   80,251,928
    Total cash and other investments            594,498,761

     Total cash and investments
      reported on Pension Trust Fund
      Statement of Net Assets               $   697,984,201


Following is a description of the Pension Trust Fund’s deposit and investment risks:

Credit risk - The risk that an issuer or other counterparty to an investment will not fulfill its
  obligations is called credit risk. The Pension Fund’s Fixed-Income Investment Managers are
  authorized by the Retirement Board to invest in marketable debt issues of the U.S. Treasury,
  U.S. Agencies, U.S. corporations, U.S. banks or other financial institutions, mortgage or
  asset backed securities, Yankee bonds, and cash equivalents. Domestic bonds in the core-
  fixed income portfolios must be rated Baa/BBB or better by either Moody’s or Standard &
  Poor’s.

The investment guidelines allow for two different classifications of fixed-income managers –
  core fixed income or high-yield fixed income. Core-fixed income portfolios should normally
  maintain an average market-weighted quality of Aa/AA. High-yield fixed income securities
  are bonds that are typically below investment grade bonds. These high-yield income
  securities do carry credit ratings below BBB by definition.




                                                               119
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                                December 31 and June 30, 2010


The Pension Trust Fund’s December 31, 2010 fixed income investments have received the
  following ratings:

                                                                   Other            Non-U.S.
           Standard & Poor's    Corporate         FNMA &        Government     Gov't & Corporate
                Rating            Bonds           FHLMC          Securities          Debt
                 AAA           $ 2,472,009    $     6,818,777   $ 31,870,276                   -
                  AA             4,962,849                 -               -           349,726
                  A             14,926,025                 -               -          1,134,816
                 BBB             6,294,172                 -               -           524,090
                  BB             3,865,986                 -               -           103,788
                  B             11,964,362                 -               -          1,003,681
                 CCC             8,179,882                 -               -                   -
              Not Rated          1,646,075                 -        136,266           7,232,660
                Totals         $ 54,311,360   $     6,818,777   $ 32,006,542   $    10,348,761

                                                                   Other            Non-U.S.
               Moody's          Corporate         FNMA &        Government     Gov't & Corporate
                Rating            Bonds           FHLMC          Securities          Debt
                 Aaa           $ 3,585,417    $     6,818,777   $ 31,870,276    $      648,200
                  Aa             6,908,027                 -               -           523,977
                  A             12,203,472                 -               -           727,650
                 Baa             5,829,562                 -               -           757,004
                  Ba             2,177,316                 -               -           103,788
                  B             12,315,467                 -               -           893,694
                 Caa             8,850,355                 -               -           109,988
                  Ca               520,134                 -               -                   -
                  C                207,050                 -               -                   -
              Not Rated          1,714,560                 -        136,266           6,584,460
                Totals         $ 54,311,360   $     6,818,777   $ 32,006,542   $    10,348,761




The credit ratings for the Pension Fund’s mutual fund investments are unknown.

Custodial Credit Risk -- Cash and Cash equivalents - For deposits custodial credit risk is the risk
  that, in the event of bank failure, the fund’s deposits may not be returned to it. As of
  December 31, 2010, the book value of the Pension Trust Fund's cash and deposits was
  $1,752,786 and the bank balance was $2,072,693. Of the $2,072,693 bank balance,
  $500,000 is covered by federal depository insurance. $1,572,693 is uninsured and subject
  to custodial credit risk and is collateralized in accordance with Act 72. An additional
  $16,354,067 in cash or cash equivalents was held by the Fund’s investment managers in
  temporary investment vehicles. The investment guidelines state cash equivalent
  investments may be U.S. Treasury Bills, U.S. Government repurchase agreements (with a




                                                  120
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


  minimum of 102% collateral), money market funds, or commercial paper. If commercial
  paper is used for short-term investments, it must be rated at least A-1 or A by Moody’s or
  Standard & Poor’s.

Custodial Credit Risk -- Investments - For investments, custodial credit risk is the risk that in
  the event of the failure of the counterparty, the Fund will not be able to recover the value of
  its investments or collateral securities that are in the possession of an outside entity. To
  mitigate custodial credit risk, the Board’s investment guidelines set target asset allocations
  for all investments.

The target allocations in effect for 2010 are as follows:
                                    Asset Allocation         Target
                            Diversified Equity                  45%
                            Fixed-income                        30%
                            Real Estate                         10%
                            Venture Capital/Private Equity      10%
                            Commodities                          5%
                            Total                              100%


Concentration of Credit Risk -- The Retirement Board’s investment guidelines do not set total
  fund diversification guidelines. However they do attempt to minimize the impact of
  substantial loss in any specific industry or issue by establishing specific limits for the
  portfolios of each of the investment managers. For equity investment managers, no more
  than 5% of each manager’s equity portfolio may be invested in any one company (valued at
  cost), and no more than 10% of each manager’s equity portfolio may be invested in any one
  company (valued at market). In addition, equity investments may not exceed the
  benchmark index by 20% of the GICS economic sector allocation.

For the core fixed-income managers - Except for U.S. Treasury and Agency obligations, each
  manager’s fixed-income portfolio may not contain more than 10% (valued at market) of a
  given domestic issuer; no more than 10% of each portfolio’s market value may be in Yankee
  bonds. If an investment manager chooses to invest in SEC Rule 144A securities without
  registration rights, such securities may not consist of more than 10% of the portfolio.

With the exception of several mutual fund investments, as of December 31, 2010 no
 investments exceeded 5% of the net assets of the Pension Trust Fund.




                                                 121
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                 December 31 and June 30, 2010


Interest Rate Risk – Limiting investment maturities is a means of managing exposure to fair
  value losses arising from rising interest rates. The Retirement Board’s investment guidelines
  require the effective duration of each fixed-income manager’s portfolio to comply with the
  following schedule:

                Fixed-Income Class                   Index                 Duration Limitation

         Short-term                   Merrill Lynch One-Three-Year Gov’t         +20%
         Government/Credit            Lehman Brothers Gov’t/Credit               +20%
         Core                         Lehman Brothers Aggregate                  +20%


Foreign Currency risk -- For cash and investments, foreign currency risk is the risk that
  changes in exchange rates will adversely affect the fair value of an investment. At
  December 31, 2010, the Pension Trust Fund held $9,961 in foreign cash, $37,536,994 in
  common stock investments and $10,348,761 in fixed income investments, all in various non-
  US dollar denominations.

Component Units - Cash and Investments

Allegheny County Airport Authority

Pennsylvania statutes provide for investment of governmental funds into certain authorized
  investment types including United States Treasury Bills, other short-term U.S. and
  Pennsylvania government obligations and insured or collateralized time deposits and
  certificates of deposit. Statutes do not prescribe regulations related to demand deposits;
  however, they do allow pooling of governmental funds for investment.

The deposit and investment policy of ACAA adheres to State statutes, related trust indentures
  and prudent business practice. There were no deposit or investment transactions during the
  year that were in violation of either the state statutes or the policy of ACAA.

Cash and Deposits -- Custodial Credit Risk - Custodial credit risk is the risk that in the event of
  a bank failure, ACAA’s deposits may not be returned to it. The following is a summary of
  ACAA’s cash deposits and time deposits which are insured by the Federal Depository
  Insurance Company or which were not insured or collateralized in ACAA’s name, but were
  collateralized in accordance with Act 72 of the Pennsylvania State Legislature which requires
  the institution to pool collateral for all governmental deposits and have the collateral held by
  an approved custodian in the institutions name. As of December 31, 2010 ACAA had cash in
  bank of $103,464,679, of this amount $103,214,679 was exposed to custodial credit risk.
  Included in that amount is $78,810,185 of restricted cash for use as required by the
  Authority Trust Indentures.

Investments, Unrestricted -- Investments held by ACAA for discretionary future projects and
  obligations of ACAA are $12,949,002 as of December 31, 2010.




                                                 122
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Investments, Restricted -- Investments held by ACAA that are restricted as to their use by
  terms and agreements of ACAA. These funds, at fair value and amortized cost, as
  applicable, as of December 31, 2010 are presented on the following page.




                                             123
       COUNTY OF ALLEGHENY
   Notes to the Financial Statements
    December 31 and June 30, 2010


Revenue Bond Funds:
1988 Indenture
         Rebate - Principal Fund                       $       102,804
         Rebate - Income Fund                                1,287,559
1990 Indenture
         Rebate - Principal Fund                              527,342
         Rebate - Income Fund                                 177,309
1992 Indenture
         Capital Addition Number 2 Project Account            557,474
1993 Indenture
         Midfield Completion Construction Fund                615,166
         Midfield Claims Construction Fund                     88,968
1997 Indenture
         1997 A and B Clearing Fund                            140,428
         1997 B Interest Account                                     -
         1997 A1 & A2 Interest Account                              86
         1997 A1 & A2 Principal Account                             44
         1997 A1 & A2 Debt Service Reserve                  36,234,840
         1997 Capital Project MII9-97 Construction Fund        349,712
         1997 Capital Project MII2-98 Construction Fund        515,716
         1997 Parking Garage Construction Fund               1,044,331
2001 Subordinate Lien Indenture
         Series A & B 2001 Sub Lien Bond                            1
2001 Fixed Rate Indenture
         2001 A & B Debt Service Fund                               25
         2001 A & B Debt Service Reserve Fund                8,731,892
         2001 A & B Rebate Fund                                845,364
         2001 A & B Principal Fund                                   2
2002 Fixed Rate Indenture
         2002 A & B Clearing Fund                                  184
         2002 A & B Debt Service Fund                                7
         2002 A & B Debt Service Reserve Fund                9,274,517
         2002 A & B ACAP Clearing Fund                             145
                                                                     2
2007 Indenture
        2007 A & B Debt Service Fund                              115
        2007 A & B Clearing Fund                               41,759
2010 Indenture
        2010 A Debt Service Interest Fund                       25,925
        2010 A Debt Service Reserve Fund                     3,172,392
        2010 A Debt Clearing Fund                               29,830
        2010 A Debt Revenue Fund                                   409
Revenue Bond Funds Total                                    63,764,348
Capital Funds
Airport Development Fund                                     5,041,099
Airport System Capital Fund - Discretionary 1                9,919,110
Airport System Capital Fund - Discretionary 2               11,530,515
Airport System Capital Fund - Restricted 1                   8,950,484
Airport System Capital Fund - Restricted 2                  12,821,346
Passenger Facility Charge Fund                                 338,096
Artwork - Grant                                                 26,923
Ground Transportation Fund                                     972,467
Capital Development Funds                                      917,865
Equipment and Capital Outlay Fund                            3,372,580
Prefunding Reserve Fund                                     32,502,826
Clinton Tax Increment Financing Reserve Fund                   459,395
Clinton Tax Increment Financing Revenue Fund                   563,649
Clinton Tax Increment Financing Surplus Fund                    15,130
Northfield Tax Increment Financing Resere Fund                  81,760
Hangar Loan Fund                                               389,561
Capital Funds Total                                         87,902,806
Total Revenue Bonds and Capital Funds                 $    151,667,154




                             124
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                 December 31 and June 30, 2010


As of December 31, 2010, ACAA had the following cash and cash equivalents and investments
  in mutual funds:
                                                                                           Moody's
                                                       % of Total               Standard   Investor
               Investment                Amount        Investment   Maturity    & Poor's   Service
Wells Fargo:
 Federal Home Loan CUSIP 313384AM1 $      4,177,958       6.8%      1/12/2010     AAA
PNC Investmensts:
 Blackrock Federal Trust Fund             5,012,595       8.2%      <90days       AAA        Aaa
 Mellon Investments:
 Goldman Sachs Financial SQ Gov't        52,101,595      85.0%      <90days       AAA        Aaa

Total                                $   61,292,148     100.0%




Interest rate risk – ACAA does not have a formal investment policy that limits investment
  maturities as a means of managing its exposure to fair value losses arising from increasing
  interest rates.

Credit risk – Pennsylvania law provides for investment of governmental funds into certain
  authorized investment types, including U.S. Treasury bills, other short-term U.S. and
  Pennsylvania government obligations, and insured or collateralized time deposits and
  certificates of deposit. Statutes do not prescribe regulations related to demand deposits;
  however, they do allow pooling of governmental funds for investment. ACAA has no
  investment policy that would further limit its investment choices.

Concentration of Credit Risk – ACAA places no limit on the amount ACAA may invest in any
  one issuer.

Investments – Custodial Credit Risk - Custodial credit risk is the risk that in the event of a bank
  failure, ACAA’s investments may not be returned to it. ACAA does not have a formal
  investment policy for custodial credit risk. As of December 31, 2010, $61,292,148 of ACAA’s
  investments were exposed to custodial credit risk.

In 2002, ACAA entered into Forward Delivery Agreements (FDA), with financial institutions for
  the continuous investment of the Series 1997 A-1 and 1997 A-2 principal and interest
  investments through December 2015: Series 1997 B principal and interest investments
  through November 2018; and Series A and B of 2002 principal and interest investments
  through January 2022. The future investment earnings under these contracts, discounted at
  the financial institution’s cost of funds on the contract date, were received by ACAA up-front
  in lump-sum payments totaling $6,978,000. The amount of the upfront payments is




                                               125
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                                December 31 and June 30, 2010


  recorded as deferred interest income and is being amortized into income over the term of
  the agreements. The unearned amount at December 31, 2010 was $3,028,726.

             As shown on Financial Statement
                        Cash and short-term investments              $ 12,949,002
                        Restricted cash and short-term investments    151,667,154
                                                                     $ 164,616,156
             As shown in the notes
                        Cash                                         $ 103,324,008
                        Mutual Funds                                   61,292,148
                                                                     $ 164,616,156



Port Authority of Allegheny County

PAT's unrestricted cash and investments are available for general operating purposes, and
  restricted cash and investments are available for acquisition of assets under capital projects
  and scheduled payments of the Special Revenue Transportation Bonds, Grant Anticipation
  Notes outstanding and a capital lease obligations (see Note 8).

Cash equivalents, which consist primarily of money market accounts and repurchase
  agreements, are stated at fair value, which approximates market.

The investment and deposit of PAT funds is governed by the by-laws of PAT and the Second
  Class County Port Authority Act. In accordance with these regulations, PAT has established
  investment procedures that require that monies be deposited with FDIC-insured banks in
  demand deposit accounts or certificates of deposit (which are required to be 100%
  collateralized by separately identified U. S. obligations, if not covered by FDIC insurance).
  Investments are limited to U. S. obligations and repurchase agreements. Repurchase
  agreements must be purchased from banks located within the Commonwealth of
  Pennsylvania and the underlying collateral securities must have a market value of at least
  100% of the cost of the related repurchase agreement.

PAT's investment procedures do not require the delivery of the underlying securities to PAT;
  however, it is the obligation of the bank to deposit the pledged obligations with either the
  Federal Reserve Bank, the trust department of the financial institution issuing the
  repurchase agreement or another bank, trust company or depository satisfactory to PAT.
  There were no deposits or investment transactions during the year ended June 30, 2010
  that were in violation of either State statutes or the policies of PAT.

PAT does not have a formal investment policy for custodial credit risk, interest rate risk, credit
  risk, or concentration of credit risk.




                                                  126
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                               December 31 and June 30, 2010


The following is a description of PAT's deposit and investment risks:

Custodial Credit Risk – Custodial credit risk is that in the event of a bank failure, PAT’s deposits
  may not be returned to it. As of June 30, 2010, $34,782,603 of PAT’s bank balance of
  $35,532,603 was exposed to custodial credit risk, which is collateralized in accordance with
  Act 72 of the Pennsylvania State Legislature which requires the institution to pool collateral
  for all governmental deposits and have the collateral held by an approved custodian in the
  institution’s name. These deposits have a carrying amount of $25,993,868 as of June 30,
  2010.

In addition to the deposits noted above, included in cash and cash equivalents on the
  statements of net assets are the following short-term investments: mutual funds of $13,451
  and $36,759,675 invested in the external investment Pool (INVEST) at June 30, 2010.

At June 30, 2010, PAT held the following investment balances:
                                                               Maturity in years
                                            Fair             Less             1-5
                                            Value         than 1 year        years
            U.S. Treasuries
               Interest Only Strips   $   43,750,799      26,806,161     16,944,638
            FHLB                          10,021,570      10,021,570          -
            Guaranteed Investment
               Contracts                  50,766,912      50,766,912           -
            Mutual Funds                   9,874,853       9,874,853           -
            Total                     $ 114,414,134       97,469,496     16,944,638


The fair value of PATs investments is the same as their carrying amount. The fair value of
 PATs investments in the external investment pool (INVEST) is the same as the value of the
 pool shares.

Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely
  affect the fair market value of PAT’s investments.

Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will
  not fulfill its obligations. As of June 30, 2010, PAT’s investment in the state investment pool
  (INVEST), mutual funds, and FHLB were rated AAA by Standard & Poor’s. Additionally, at
  June 30, 2010, PAT had a guaranteed investment contract that was unrated and relates to
  lease transactions.

As further described in Note 14, PAT has a derivative instrument that is accounted for as an
  investment. Credit and interest rate risks related to this investment are described in Note
  14.




                                                    127
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010



Community College of Allegheny County

Investments and time deposits (consisting primarily of interest bearing overnight bank
  deposits, bank repurchase agreements, treasury bills and bank certificates of deposit with a
  maturity date of one year or less) are stated at cost, which approximates fair value. Time
  deposits are classified as a current or noncurrent asset based upon the expected timing and/
  or anticipated use of the funds. By policy of the Board, CCAC is permitted to invest funds
  consistent with sound business practices in the following types of investments: U.S.
  Treasury Bills, obligations of the United Sates of America and related agencies, and the
  Commonwealth of Pennsylvania, A-1, P-1—rated commercial paper, or equivalent
  instruments, fully collateralized, per Act 72, time deposits, certificates of deposit, and
  repurchase agreements of financial institutions which have a short-term rating by Moody’s
  (or equivalent) of ―p-1‖ or better and whose long-term senior debt rating is ―A2‖ or better,
  and which have a combined capital surplus and undivided profits of not less than
  $1,000,000, money market mutual fund/investment companies that are AA-rated by Moody’s
  (or equivalent), managed to a $1.00 NAV, and are in compliance with Section 2A-7 of SEC
  rules, and which restrict their investment to instruments described above.

Custodial Credit Risk -- Custodial credit risk is the risk that in the event of a bank failure,
  CCAC’s deposits may not be returned to it. CCAC does not have a formal deposit policy for
  custodial credit risk. As of June 30, 2010, $5,776,738 of the bank balance was covered by
  Federal Depository Insurance Corporation and $50,310,569 of CCAC’s bank balance of
  $56,087,307 was exposed to custodial credit risk, which is collateralized in accordance with
  Act 72 of the Pennsylvania State Legislature which requires the institution to pool collateral
  held by an approved custodian in the institution’s name.

The foundation is a private non-profit organization that reports under FASB standards,
  including FASB No. 117, Financial Reporting for Not-for-Profit Organizations. As such,
  certain revenue recognition criteria and presentation features are different from GASB
  revenue recognition criteria and presentation features. No modifications have been made
  for these differences in CCAC’s financial reporting entity.

Interest Rate Risk -- Interest rate risk is the risk that changes in interest rates will adversely
   affect the fair market value of CCAC’s investments. By policy of the Board, CCAC is not
   permitted to invest more than $5 million of cash reserves in instruments with maturities of
   more than one year and in no event may any investment have a maturity of more than five
   years. All CCAC’s investments have a maturity of less than one year.

Credit Risk -- Credit risk is the risk that an issuer or other counterparty to an investment will
   not fulfill its obligations. CCAC’s Board policy minimizes credit risk by permitting only
   certain types of investments and establishing minimum quality levels.




                                                128
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010



Redevelopment Authority of Allegheny County

RAAC's cash and cash equivalents consist of demand deposits as well as short-term certificates
  of deposit with a maturity date within three months of the date acquired. Certain cash and
  cash equivalents are classified as restricted assets because their use is limited by applicable
  project contracts.

The following is a description of RAAC’s deposit and investment risks:

Deposits -- Custodial Credit Risk - Custodial credit risk is the risk that in the event of a bank
  failure, RAAC’s deposits may not be returned to it. RAAC does not have a formal deposit
  policy for custodial credit risk. As of December 31, 2010, $22,510,655 of RAAC’s bank
  balance of $23,510,655 was exposed to custodial credit risk, which is collateralized in
  accordance with Act 72 of the Pennsylvania State Legislature, which requires the institution
  to pool collateral for all governmental deposits and have the collateral held by an approved
  custodian in the institutions name. As of December 31, 2010, the carrying amounts of
  RAAC’s deposits were $22,754,952.

Investments -- In addition to the deposits noted above, RAAC holds short-term investments of
  mutual funds of $11,799,949.

Interest Rate Risk -- RAAC does not have a formal investment policy that limits investment
  maturities as a means of managing its exposure to fair value losses arising from increasing
  interest rates. All of RAAC’s investments have a maturity of less than one year.

Credit Risk -- RAAC does not have a formal investment policy that would limit its investment
  choices based on credit ratings by nationally recognized statistical rating organizations. As
  of December 31, 2010, RAAC had investments of $11,799,949 in various mutual funds that
  were rated AAA by Standard’s & Poor’s.

Allegheny County Industrial Development Authority
The following is a description of ACIDA’s deposit and investment risks:

Deposits -- Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank
  failure, ACIDA’s deposits may not be returned to it. ACIDA does not have a formal deposit
  policy for custodial credit risk. As of December 31, 2010, approximately $5,500,000 of
  ACIDA’s bank balance of $6,007,785 was exposed to custodial credit risk, which is
  collateralized in accordance with Act 72 of the Pennsylvania State Legislature which requires
  the institution to pool collateral for all governmental deposits and have the collateral held by
  an approved custodian in the institutions name. As of December 31, 2010, the carrying
  amounts of ACIDA’s deposits were $7,209,278.




                                               129
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


Investments – ACIDA is authorized to make investments of the following types: (1) United
  States Treasury bills, (2) short-term obligation of the United States government or its
  agencies or instrumentalities, (3) deposits in saving accounts or time deposits or share
  accounts of institutions which are insured, (4) obligations of the Commonwealth of
  Pennsylvania or any of its agencies or instrumentalities of any political subdivision thereof,
  and (5) shares of an investment company registered under the Investment Company Act of
  1940, whose shares are registered under the Securities Act of 1933, provided that the
  investments of that company meet the criteria in (1) through (4) above.

As of December 31, 2010, ACIDA investments were held in the Pennsylvania Local
  Government Investment Trust (PLGIT). All investments in the external investment pool,
  which are not SEC registered, are subject to the oversight by the Commonwealth of
  Pennsylvania. ACIDA has approximately $7,200,000 of cash and cash equivalents, of which
  approximately $1,200,000 was held in PLGIT at December 31, 2010. The fair value of these
  cash equivalents was $1,016,026 at December 31, 2010, which is the same as the value of
  the pool shares.

Interest Rate Risk – ACIDA does not have a formal investment policy that limits investment
  maturities as a means of managing its exposure to fair value losses arising from increasing
  interest rates; however, the investments in PLGIT described above all have maturities of less
  than one year.

Credit Risk – ACIDA does not have a formal investment policy that would limit its investment
  choices based on credit ratings by nationally recognized statistical rating organizations. As
  of December 31, 2010 ACIDA’s investments in PLGIT were rated AAA by Standard & Poor’s.

The PLGIT investments are recorded on the Statement of Net Assets as cash and cash
  equivalents or restricted cash and cash equivalents as these are investment with original
  maturities less than three months.

Allegheny HealthChoices, Inc.
In accordance with the AHCI contract, separate cash accounts are maintained for DPW-
  approved reinvestment plan funding and claims funding. AHCI holds the funds on behalf of
  Allegheny County, therefore; a corresponding liability is reflected on the Statement of Net
  Assets.

The following is a description of AHCI’s deposit and investment risks:

Custodial Credit Risk – Custodial credit risk is that in the event of a bank failure, AHCI deposits
  may not be returned to it. AHCI does not have a formal deposit policy for custodial credit
  risk. As of December 31, 2010, $23,855,600 of AHCI’s bank balance of $24,105,600 was
  exposed to custodial credit risk, which is collateralized in accordance with Act 72. As of
  December 31, 2010, the carrying amount of AHCI’s deposits was $24,087,964. Investments
  are in fixed income and money market funds for the 4579(B) deferred compensation plan.




                                               130
                                     COUNTY OF ALLEGHENY
                                 Notes to the Financial Statements
                                  December 31 and June 30, 2010


  These investments are valued at their fair market of $48,448.

Allegheny County Parks Foundation

Custodial Credit Risk – Custodial credit risk is that in the event of a bank failure, Parks
  Foundation deposits may not be returned to it. The Parks Foundation does not have a
  formal investment policy. Cash and cash equivalents are held in a bank which carries FDIC
  insurance. At December 31, 2010, book balance and bank balance of all deposits totaled
  $1,449,662 and $1,453,167, respectively. $250,000 of the $1,4753,167 bank balance was
  FDIC insured.

Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc.
Cash and cash equivalents are held in a bank which carries FDIC insurance. At December 31,
  2010, book balance and bank balance of all deposits totaled $469,440 and $475,025,
  respectively. $335,041 of the $475,025 bank balance was FDIC insured.

Allegheny County Conservation District

Custodial Credit Risk – Custodial credit risk is that in the event of a bank failure, Conservation
  District deposits may not be returned to it. Cash and cash equivalents are held in a bank
  which carries FDIC insurance. At December 31, 2010, book balance and bank balance of all
  deposits totaled $403,075 and $403,075, respectively. $250,000 of the bank balance was
  FDIC insured.

In addition, the District has $271,145 at December 31, 2010 in a short term external
  investment pool (INVEST). The District’s investments in INVEST were rated AAA by
  Standard & Poor’s.

(4) Property and Sales Tax Revenue and Receivables

Receivables at December 31, 2010 consist of the following:
                                                                                       Due from
Governmental Activities                  Property Taxes Receivable      Sales Tax        Other
                                       Delinquent             Lien      Receivable    Governments

General Fund                      $      6,141,594         11,789,735    7,398,566      54,125,565
County Grants Fund                           -                  -            -          16,635,404
Human Service Grant Fund                     -                  -            -          36,548,315
Capital Projects Fund                        -                  -            -          17,286,338
Other Governmental Funds                 1,883,393          3,220,482        -               -
Total Governmental Receivables           8,024,987         15,010,217    7,398,566     124,595,622

Less: allow ances (Note 1D)                809,145          8,608,584        -           6,473,419

Net Governmental Receivables      $      7,215,842          6,401,633    7,398,566     118,122,203



The reconciliations (Exhibits 3A and 4A) of Governmental Funds to the government-wide




                                                  131
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                            December 31 and June 30, 2010


  statements contain information related to revenue recognition.

Property and Sales Taxes

The County's real property tax is levied by ordinance of the County Council on real property
  located in the County. In 2001, the County changed its predetermined ratio, which is the
  ratio of assessed value to market value uniformly applied in determining assessed value in
  any year. Prior to 2001, the assessed value of real property equaled 25% of market value.
  Beginning in 2001, the assessed value equaled 100% of market value. The last revaluation
  of real property was completed for the property list of January 1, 2003. Using this
  revaluation, the County established a Base Year 2002, to calculate certified assessed value
  each year. Any changes by the Appeals Board shall be expressed in terms of the 2002 Base
  Year Values. The total estimated assessed and market value of taxable real estate at
  January 1, 2010 was $58,710,386,788.

The tax rate to finance general governmental services, other than debt service requirements,
  for the year ended December 31, 2010 was $.35806 per $100. The tax rate to finance debt
  service requirements for the year ended December 31, 2010 was $.11094 per $100.

Real property taxes levied are recorded as receivables, net of amounts estimated to be
  uncollectible. At December 31, 2010, the allowances for uncollectible delinquent and liened
  property taxes aggregated $809,145 and $8,608,584, respectively.

Real property taxes for 2010 were levied on January 1, 2010, with a final due date of
  April 30, 2010. A 2% discount was granted on remittances prior to March 31, 2010. In
  2010, tax liens were filed for taxes due April 30, 2009.

Effective July 1, 1994, under authority granted by the Commonwealth of Pennsylvania, the
   Board of Commissioners adopted an ordinance imposing a 1% sales, use and hotel
   occupancy excise tax within the County. One-half of the annual revenue generated by the
   sales tax was dedicated to funding regional assets throughout the County. One-quarter of
   the annual revenue generated was used for municipal tax reform, and the remaining one-
   quarter was used for County tax reform. Accordingly, the County eliminated the personal
   property tax in 1995 and reduced real property taxes. The County’s sales tax revenue for
   2010 was $40,904,309.




                                             132
                                       COUNTY OF ALLEGHENY
                                   Notes to the Financial Statements
                                    December 31 and June 30, 2010



Component Units – Receivables

All Component Units

Receivables at the component unit’s respective year ends consisted of following:

                        Due from       Due from
  Component               Other        Primary       Trade            Other        Interest &            Loans
        Unit           Governments    Government   Receivable       Receivable      Dividends        Receivable

  ACAA             $     6,931,831          -       5,373,389        1,695,787        3,993                   -
  PAT                   38,456,235          -            -          11,668,117          -                     -
  CCAC                     987,724       750,000    8,021,871        1,008,520          -                     -
  RAAC                  10,063,507       242,324         -            176,834           -            29,542,609
  ACIDA                  1,392,677          -        105,874              -             -                3,060,182
  AHCI                        -           36,280         -              54,336          -                     -
Parks Foundation              -          443,200         -                 646          -                     -
  SSMH                        -             -            -              12,695          -                     -
                        57,831,974     1,471,804   13,501,134       14,616,935        3,993          32,602,791

Less: allowances              -             -       5,473,113            5,000          -                3,327,275
Total              $    57,831,974     1,471,804    8,028,021       14,611,935        3,993          29,275,516



Redevelopment Authority of Allegheny County

RAAC makes loans through the Economic Development Fund (EDF) which is a revolving loan
  fund and the Home Improvement Loan Program (HILP) of Allegheny County. The purpose
  of the EDF is to positively impact the regional economy by promoting economic development
  and improved employment opportunities in the County. The HILP issues loans to finance
  the rehabilitation of residential housing for persons and families of low to middle income
  throughout the County.

The following is a summary loans receivable outstanding at December 31, 2010:
                                                                       Allowance               Net
                                                       Receivable       for Loan            Receivable
                                                        Balance           Losses             Balance
   Economic Development Fund (EDF)                  $ 19,773,102        2,974,543           16,798,559
   Home Improvement Loan Program (HILP)                3,472,975          105,344            3,367,631
   Section 108 Loan Fund *                             6,000,000             -               6,000,000
   Other loan programs                                   296,532             -                 296,532
                                                    $ 29,542,609         3,079,887          26,462,722

           * See page 170 in Debt (note 8) for more information.




                                                   133
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010



Allegheny County Industrial Development Authority

The due from other governments of $1,392,677 is due from RAAC. It is the amount IDA
  expects to receive as repayment from a revolving loan agreement with RAAC to assist small
  businesses adversely affected by Hurricane Ivan in 2004 and the communities surrounding
  Pittsburgh.

ACIDA administers certain programs on behalf of other entities. Under this arrangement,
  ACIDA collects certain loans from third parties. These loans receivable are recorded in the
  various Proprietary Funds.

The following is a summary of commercial loans outstanding, not including deferred loans that
  are recorded at a net zero value, at December 31, 2010:
                                                                  Allowance        Net
                                                     Receivable    for Loan     Receivable
              Program                                 Balance        Losses      Balance

   Small Business Distressed Communities         $      521,572      47,388        474,184
   Development Action Assistance Program              2,054,828     200,000      1,854,828
   Allegheny County EDA Program                         481,119       -            481,119
   MEC Loans Program                                      2,663       -              2,663

                                                 $    3,060,182     247,388      2,812,794

The above loans bear interest at rates ranging from 2.375% to 9% per annum. These loans
  range in amounts from $1,000 to $500,000 and mature through 2021.




                                             134
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                      December 31 and June 30, 2010



(5) Capital Assets

The following is a summary of the changes in capital assets for the year ended December 31,
2010:

                                              Balance                                      Balance
                                           January 1, 2010   Increases    Decreases   December 31, 2010
Capital Assets, not
 being depreciated:

 Land                                  $       24,373,153         -           -             24,373,153
 Construction in progress                      48,735,755    33,174,266   8,659,435         73,250,586
Total capital assets,
 not being depreciated                         73,108,908    33,174,266   8,659,435         97,623,739

Capital Assets, being depreciated:

  Land Improvements                             8,192,901         -           -              8,192,901
 Buildings                                    362,736,676     7,652,836       -            370,389,512
 Buildings - Capital Lease                      7,678,839         -           -              7,678,839
 Buildings - Leasehold Improvements            20,584,760         -           -             20,584,760
 Infrastructure                               390,825,195     1,006,599       -            391,831,794
 Furniture and other equipment                 80,692,962    33,155,509   1,097,201        112,751,270

Total capital assets,
 being depreciated                            870,711,333    41,814,944   1,097,201        911,429,076

Less accumulated depreciation for:

  Land Improvements                             5,609,513       288,439       -              5,897,952
 Buildings                                    154,192,355     7,244,583       -            161,436,938
 Infrastructure                               132,502,120     7,992,219       -            140,494,339
 Furniture and other equipment                 34,389,801    11,204,505   1,097,201         44,497,105

Total accumulated depreciation                326,693,789    26,729,746   1,097,201        352,326,334

Net depreciated assets                        544,017,544    15,085,198      -             559,102,742

Net capital assets                     $      617,126,452    48,259,464   8,659,435        656,726,481




Governmental Activities
No events or changes in circumstances affected a capital asset that may indicate impairment.




                                                       135
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Depreciation was charged to governmental functions as follows:
                           General government       $    5,746,434
                           Public safety                 6,032,122
                           Public works                 10,621,023
                           Health and welfare            3,033,128
                           Culture and recreation        1,275,275
                           Economic development             21,764
                              Total                 $ 26,729,746


The County has active construction projects as of December 31, 2010. The projects include
  park lake cleanup, road reconstruction and relocation, rehabilitation of bridges, purchase of
  equipment and miscellaneous bridge design. At year end the County’s encumbrances with
  contractors for major projects are as follows:

Project                                                         Encumbrance

North Park Lake Sediment Removal                                 $ 1,662,866
Miscellaneous Bridge Construction & Repair                         1,264,590
Annual Road & Facilities Improvement                               1,016,605
Campbell’s Run Road                                                  891,231
Duquesne/McKeesport Flyover                                          499,604
Miscellaneous Bridge Design                                          476,835
Heavy Equipment/Fleet Replacement                                    362,333

The encumbrances for building and equipment projects are being financed through capital
  fund general obligation bonds. Bridge and road projects encumbrances are financed
  initially through the general obligation bonds, with the subsequent costs to be reimbursed
  by federal and State funding.




                                                136
                                                  COUNTY OF ALLEGHENY
                                              Notes to the Financial Statements
                                               December 31 and June 30, 2010



Component Units - Capital Assets

Allegheny County Airport Authority
Capital activity for the year ended December 31, 2010 is as follows:
                                                 Balance                                                          Balance
                                             January 1, 2010    Increases     Decreases     Transfers        December 31, 2010
Capital assets, not being depreciated:
Land and site development                $     137,124,992            -              -          1,219,076         138,344,068
Total capital assets,
 not being depreciated                         137,124,992            -              -          1,219,076         138,344,068
Capital assets, being depreciated:
Terminal buildings                             694,428,620           -               -          1,000,945         695,429,565
Runways & taxiways                             467,870,425           -          2,862,829      20,636,610         485,644,206
Parking Garage / Lots / Etc                     83,071,348           -               -            523,461          83,594,809
Hangars                                         42,525,578           -               -             87,673          42,613,251
Other Structures                               155,258,250           -               -             23,412         155,281,662
Roadways                                        61,858,486           -               -             12,192          61,870,678
Mobil and Other Equipment                       50,985,741           -            472,706         581,930          51,094,965
Computer/Security Equip & Systems               50,149,668           -               -            559,505          50,709,173
Utilities                                       46,322,826           -               -               -             46,322,826
Other Assets                                    20,829,996           -               -             48,768          20,878,764
Construction-in-progress                        37,887,453     31,318,907            -        (24,693,572)         44,512,788
Total capital assets,
 being depreciated                           1,711,188,391     31,318,907       3,335,535      (1,219,076)      1,737,952,687
Less accumulated depreciation for:
Terminal buildings                             481,470,092     27,398,666            -                  -         508,868,758
Runways & taxiways                             278,669,204     19,305,391       2,642,566               -         295,332,029
Parking Garage / Lots / Etc                     42,027,145      2,628,528            -                  -          44,655,673
Hangars                                         34,021,616        909,433            -                  -          34,931,049
Other Structures                                76,606,950      5,746,108            -                  -          82,353,058
Roadways                                        50,571,529      2,818,814            -                  -          53,390,343
Mobil and Other Equipment                       39,429,089      2,556,461         386,798               -          41,598,752
Computer/Security Equip & Systems               12,843,045      3,290,942            -                  -          16,133,987
Utilities                                       28,333,582      1,730,479            -                  -          30,064,061
Other Assets                                     7,674,123        903,411            -                  -           8,577,534
Construction-in-progress                        32,536,087      1,869,334            -                  -          34,405,421
Total accumulated
 depreciation                                1,084,182,462     69,157,567       3,029,364               -       1,150,310,665
Net depreciated assets                         627,005,929     (37,838,660)      306,171                -         587,642,022
Net capital assets                       $     764,130,921     (37,838,660)      306,171                -         725,986,090




ACAA maintains various collections of inexhaustible assets to which no value can be
  determined. Such collections could include contributed works of art, historical treasures,
  literature, etc. that are held for exhibition and public service. These collections are neither
  disposed of for financial gain nor encumbered in any means. Accordingly, such collections
  are not capitalized or recognized for financial statement purposes.

As of December 31, 2010, ACAA had equipment purchase and construction commitments of
  approximately $23 million.




                                                                     137
                                     COUNTY OF ALLEGHENY
                                 Notes to the Financial Statements
                                  December 31 and June 30, 2010



Port Authority of Allegheny County
The following is a summary of changes in capital assets for the year ended June 30, 2010:
                                            Balance                                         Balance
                                          July 1, 2009         Increases    Decreases    June 30, 2010

Capital assets, not being
depreciated:

Land                                 $    105,699,098             -              7,316     105,691,782
Construction in progress                  282,512,639      116,734,651       2,885,833     396,361,457

Total capital assets,
 not being depreciated                    388,211,737      116,734,651       2,893,149     502,053,239

Capital assets, being depreciated:

Buildings                                 218,365,983           2,117,854         -        220,483,837
Transportation
 equipment                                659,067,048          16,020,962   11,222,734     663,865,276
Track, roadway, and
 subway stations                         1,293,666,323          1,936,867     104,792    1,295,498,398
Other property,
 equipment, and assets                     94,769,619            910,282    10,331,105      85,348,796

Total capital assets,
 being depreciated                       2,265,868,973         20,985,965   21,658,631   2,265,196,307

Less accumulated
 depreciation for:

Buildings                                 114,560,762           7,257,861         -        121,818,623
Transportation
 equipment                                354,373,908          53,045,953   11,212,318     396,207,543
Track, roadway, and
 subway stations                          622,476,370          44,985,127     116,671      667,344,826
Other property,
 equipment, and assets                     71,493,564           4,298,914   10,320,564      65,471,914

Total accumulated
 depreciation                            1,162,904,604     109,587,855      21,649,553   1,250,842,906

Net depreciated
 assets                                  1,102,964,369     (88,601,890)          9,078   1,014,353,401

Net capital assets                   $ 1,491,176,106           28,132,761    2,902,227   1,516,406,640




                                                         138
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                      December 31 and June 30, 2010



Community College of Allegheny County

The following is a summary of changes in capital assets for the year ended June 30, 2010:
                                                    Balance                                  Balance
                                                  July 1, 2009   Increases    Decreases   June 30, 2010

Capital assets, not being depreciated:

CIP                                           $      4,015,022    2,229,309   4,028,790       2,215,541
Land                                                 4,016,466         -           -          4,016,466
                                                     8,031,488    2,229,309   4,028,790       6,232,007
Capital assets, being depreciated:

Buildings                                         147,743,727     3,868,387        -       151,612,114
Land improvements                                   6,063,488       304,146        -         6,367,634
Infrastructures                                     2,933,384        55,055        -         2,988,439
Leasehold improvements                                685,732          -           -           685,732
Equipment & A.V. equipment                          7,415,340       320,316     235,649      7,500,007
Grant related equipment                             2,855,809       236,288      17,299      3,074,798
Furniture & fixtures                                1,797,713        12,234       2,000      1,807,947
Computer equipment                                 11,766,144       366,790   1,032,164     11,100,770
Computer software                                   3,668,580        32,035      75,200      3,625,415
Library books                                       3,802,038       197,502        -         3,999,540
Microforms                                            121,767       121,767     121,767        121,767
Operating system software                             934,318       934,319     934,319        934,318

Total capital assets,
 being depreciated                                189,788,040     6,448,839   2,418,398    193,818,481

Less accumulated depreciation for:

Buildings                                          69,476,306     2,993,558        -         72,469,864
Land improvements                                   4,020,406       256,872        -          4,277,278
Infrastructures                                       714,725       101,748        -            816,473
Leasehold improvements                                482,282        27,429        -            509,711
Equipment & A.V. equipment                          5,763,139       427,790     209,471       5,981,458
Grant related equipment                             2,145,754       197,627      17,299       2,326,082
Furniture & fixtures                                1,151,298       109,028       2,000       1,258,326
Computer equipment                                 10,521,111       803,041   1,010,397      10,313,755
Computer software                                   3,552,093        35,530      12,533       3,575,090
Library books                                       3,151,348       104,717        -          3,256,065
Total accumulated
 depreciated                                      100,978,462     5,057,340   1,251,700    104,784,102

Net depreciated assets                             88,809,578     1,391,499   1,166,698      89,034,379
 Net capital assets                                96,841,066                                95,266,386
Foundation assets, being depreciated:

Property and equipment                                  19,295        6,236        -             25,531

Less: accumulated depreciation                          13,240        1,497        -             14,737

Net depreciated assets                                   6,055        4,739        -             10,794

  Net capital assets with foundation assets   $    96,847,121                                95,277,180


                                                       139
                                     COUNTY OF ALLEGHENY
                                 Notes to the Financial Statements
                                  December 31 and June 30, 2010



Redevelopment Authority of Allegheny County

The following is a summary of changes in capital assets for the year ended December 31,
2010:
                                             Balance                                     Balance
                                         January 1, 2010   Increases    Decreases   December 31, 2010

Capital Assets, not being
depreciated:

Land                                 $        1,528,300        -           -               1,528,300


Capital Assets, being depreciated:

Buildings and tenant improvements             5,489,223        -           -               5,489,223

Less: accumulated depreciation                  787,376     406,596        -               1,193,972

 Net depreciated assets                      4,701,847     (406,596)       -               4,295,251

Net capital assets                   $       6,230,147     (406,596)       -               5,823,551


Allegheny County Industrial Development Authority

IDA closed on an agreement to sell an office building on December 31, 2009. During 2010,
  the actual proceeds from the sale of $9,554,945 were paid to Allegheny County.

Allegheny HealthChoices, Inc.

The following is a summary of changes in capital assets for the year ended December 31,
  2010:
                                             Balance                                     Balance
                                         January 1, 2010   Increases    Decreases   December 31, 2010
Capital Assets, being depreciated:

Furniture & Equipment                $         775,763       74,716        -                 850,479
Leashold Improvements                            -           21,927        -                  21,927
                                               775,763       96,643        -                 872,406
Less: accumulated depreciation                 575,395      130,045        -                 705,440

 Net depreciated assets              $         200,368       (33,402)      -                 166,966

Under provisions of the Contract with the County, furniture and equipment acquired with MH/
  MR funds remain the property of the funding agency. If the contractual relationship is
  terminated, the funding agency may, at its discretion, take possession of such assets. The




                                                     140
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                      December 31 and June 30, 2010


   total cost of furniture and equipment acquired with MH/MR funds, including capital assets
   donated by the County and retained by Allegheny HealthChoices at December 31, 2010 is
   $92,531.

Allegheny County Parks Foundation

The following is a summary of changes in capital assets for the year ended December 31,
2010:
                                                   Balance                                       Balance
                                               January 1, 2010   Increases     Decreases    December 31, 2010


Capital Assets, being depreciated:

Furniture & Equipment                      $             -         19,418          -                  19,418

Less accumulated depreciation for:

Furniture & Equipment                                    -          2,235          -                       2,235

 Net depreciated assets                   $              -         17,183          -                  17,183




Allegheny County Conservation District
The following is a summary of changes in capital assets for the year ended December 31,
2010:


                                                   Balance                                       Balance
                                               January 1, 2010    Increases     Decreases    December 31, 2010
Capital Assets, being depreciated:
Vehicle                                    $            29,291        -                -                   29,291
Furniture & Equipment                                   21,781        -                -                   21,781
Leasehold improvements                                  44,434                         -                   44,434
Total capital assets, being
 depreciated                                            95,506         -               -                   95,506
Less accumulated depreciation for:
Vehicle                                                16,002        3,550             -                   19,552
Furniture & Equipment                                  21,781         -                -                   21,781
Leasehold improvements                                 32,666        1,962             -                   34,628
 Total accumulated depreciation                        70,449        5,512             -                   75,961

 Net depreciated assets                    $           25,057        (5,512)           -                   19,545




                                                        141
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                      December 31 and June 30, 2010



Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc.
The following is a summary of changes in capital assets for the year ended December 31,
2010:

                                                   Balance                                    Balance
                                               January 1, 2010   Increases   Decreases   December 31, 2010


Capital Assets, being depreciated:

Equipment                                  $         275,475        7,625        -                283,100
Leasehold improvements                             5,609,065         -           -              5,609,065


Total capital assets, being depreciated            5,884,540        7,625        -              5,892,165
Less accumulated depreciation for:

Equipment                                            233,401       10,199        -                243,600
Leasehold improvements                             1,487,208      244,638        -              1,731,846

Total accumulated depreciation                     1,720,609      254,837        -              1,975,446

 Net depreciated assets                   $        4,163,931     (247,212)       -              3,916,719



The building (Hall) is owned by Allegheny County and leased to Memorial Hall for $1 per year
 until December 31, 2025, with options to renew. No financial statement value has been
 assigned to this donated space, as its fair value is not susceptible to reasonable estimation.
 Memorial Hall is required to maintain the property in good working order. In 2000, Memorial
 Hall began undergoing significant projects to renovate its facility. These projects are
 reflected in the financial statements as leasehold improvements.

(6) Risk Management

The County is exposed to various risks of loss related to torts, theft of, damage to and
  destruction of assets, errors and omissions and natural disasters, as well as from employee
  occupational and non-occupational illness or injury. The Risk Management Fund is used to
  account for the risks associated with the self-insured dental program and settlements. The
  General Fund accounts for all other risks.

The County has changed from being self-insured for healthcare to obtaining third-party
  insurance for the majority of its employees. The County has retained its self-insured dental
  program. The Risk Management Fund provides coverage for up to a maximum of $1,000
  per year for dental coverage, and between $100,000 and $250,000 for individual medical
  claims, depending on the carrier.




                                                         142
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                 December 31 and June 30, 2010


Payments are made to the Risk Management Fund from the various County funds based on
 appropriations required to pay prior and current year claims.

The dental, workers’ compensation settlements, workers’ compensation claims and general,
  automobile and public official liability balance at December 31, 2010 of $6,558,474 is based
  on the requirements of GASB Statement No. 10, as amended by GASB Statement No. 30,
  which requires that a liability for claims be reported if information prior to the issuance of
  financial statements indicates that it is probable that a liability has been incurred at the date
  of the financial statements and the amount of the loss can be reasonably estimated.

The claim liability is provided to the County by the various healthcare third-party
  administrators and the workers’ compensation third-party administrator and other third-
  party advisors. Any adjustments made to previously recorded estimated liabilities are
  reflected in current operating results.

The County is self-insured for workers' compensation and claims are paid from the General
  Fund. As required by the Commonwealth of Pennsylvania, commercial insurance is
  purchased with a retention of $1,000,000 for each accident and each employee. The
  County contracts with a program administrator to operate the program.

Changes in the various claims liability for the years ended December 31, 2010 and 2009 were:
                                              Current Year Claims                              Liability
                         Liability Balance      and Changes in              Claim           Balance as of
                         as of January 1           Estimates              Payments          December 31
Risk Management fund (Dental and Settlements)
             2010    $            113,945               1,764,667           1,804,236             74,376
             2009    $            224,066               1,677,624           1,787,745            113,945
Government-wide Financial Statement (General, Automobile, and Public Officials Liability)
             2010                195,002                  235,858             248,281           182,579
             2009                274,231                  170,625             249,854           195,002
Government-wide Financial Statement (Worker's Compensation Claims)
             2010              7,640,289                  3,436,205         4,774,975          6,301,519
             2009              7,412,652                  5,017,885         4,790,248          7,640,289
Total all Funds and government-wide financial statement (Dental and Settlements, Workers'
  Compensation, General, Automobile and Public Officials Liabilities)
             2010    $         7,949,236                  5,436,730         6,827,492          6,558,474
             2009    $         7,910,949                  6,866,134         6,827,847          7,949,236


The non-current portion of unpaid workers’ compensation claims amounted to $1,512,981 as
  of December 31, 2010, and is reflected in the government-wide statements. Two months of
  the current portion is recorded as an accrued liability in the General Fund and the




                                                    143
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                               December 31 and June 30, 2010


  government-wide financial statements records one year as current claims. Liabilities are
  reported when it is probable that losses have occurred and the amounts of the losses can be
  reasonably estimated. Liabilities include an amount for claims that have been incurred but
  not reported to date. Liabilities are determined using a combination of actual claims
  experience and actuarially determined amounts and include incremental claim adjustment
  expense and estimated recoveries.

There have been no significant changes in insurance coverage since the prior year. Settled
  claims from risks have not exceeded commercial insurance coverage for the past three
  years.

Component Units – Risk Management

Allegheny County Airport Authority

ACAA is exposed to various risks of loss related to torts, theft of, damage to and destruction of
  assets, errors and omissions and natural disasters, in addition to workers’ compensation and
  healthcare programs. ACAA carries commercial insurance to cover these risks of loss. The
  commercial insurance coverage is on a guaranteed cost basis covering any expense of the
  ACAA. Claims on this coverage have not exceeded commercial premiums.

Previously, ACAA was covered under the County’s self-insurance plan for workers'
  compensation benefits. As claims were incurred, provisions were recorded for estimated
  benefits to be paid. Subsequent to its’ reorganization in 1999, ACAA entered into a
  guaranteed-cost, premium-based policy for future workers’ compensation claims for the
  majority of its workers.

The liability for reported claims and claims incurred, but not reported, an estimate of which is
  based on historical experience and management projections, is reflected as a long-term
  liability due to the County in the financial statements and is no longer part of the County
  program. As such, no new claims can occur under this plan.

In accordance with the transfer agreement between ACAA and the County, ACAA reimbursed
  the County for all payments made to all former Department of Aviation employees remaining
  in the County’s plan. Changes in the previous self-insured claims liability for the years
  ended December 31, 2010 and 2009 were:

                       Liability         Current Year
                    Balance as of   Claims and Changes In     Claim     Liability Balance as
                     January 1             Estimates        Payments     of December 31

       2010     $       220,830                     200      37,109               183,921
       2009             140,072                 111,984      31,226               220,830




                                               144
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                 December 31 and June 30, 2010



Port Authority of Allegheny County

PAT has a self-insurance program for public liability, property damage, and workers’
  compensation claims. Estimated costs for these self-insurance programs are accrued in the
  year the expenses are incurred, based upon the estimates of the claim liabilities made by
  management and legal counsel. Estimates of claim liabilities are accrued based on projected
  settlement for claims and include estimates for claims incurred but not reported. Any
  adjustments made to previously recorded reserves are reflected in current operating results.

The Supreme Court of Pennsylvania has held PAT to be a Commonwealth Agency as defined in
  the Political Subdivision Tort Claims Act. As such, PAT is immune from certain claims and its
  liability is limited to $1,000,000 per occurrence and $250,000 per plaintiff claim arising out
  of an occurrence. As the result of this holding, it has not been necessary for PAT to
  purchase excess public liability insurance and it is self-insured for public liability claims.

PAT is self-insured for its compensation and occupational disease liability in accordance with
  the provisions of Article III, Section 305 of the Pennsylvania Workers’ Compensation Act.
  On a yearly basis, PAT carries excess workers' compensation insurance in the amount of
  $5,000,000 over its self-insurance retention of $1,000,000 per occurrence to further ensure
  that it can meet its obligation under the Workers' Compensation Act. PAT maintains an
  estimate of its potential liability related to claims that have been filed as of June 30, 2010.
  The reserve balance is approximately $9.8 million at June 30, 2010.

Changes in the claims liability for the years ended June 30, 2010 and 2009 were:
                       Liability         Current Year
                    Balance as of   Claims and Changes In     Claim     Liability Balance
                        July 1             Estimates        Payments     as of June 30

       2010     $    15,683,913                 608,338     2,112,806      14,179,445
       2009          16,111,419               2,397,007     2,824,513      15,683,913


Community College of Allegheny County
The nature of the educational industry is such that, from time to time, CCAC is exposed to
  various risks of loss related to torts; alleged negligence; acts of discrimination; breach of
  contract; disagreements arising form the interpretation of laws or regulations; theft of;
  damage to; and destruction of assets; errors and omissions; injuries to employees and
  natural disasters.

While some of these claims may be for substantial amounts, they are not unusual in the
 ordinary course of providing education services in a higher education system. In addition,
 CCAC’s liability associated with some claims may be negated or substantially reduced by the
 governmental or sovereign immunity afforded to it through the Torts Claims Act.




                                                   145
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


CCAC has not reduced any of its insurance coverage from the prior year and settled claims
  have not significantly exceeded CCAC’s coverage in any of the past three years. CCAC does
  not participate in any public entity risk pools, and does not retain risk related to any
  aforementioned exposure, except for those amounts incurred relative to policy deductibles
  that are not significant.

CCAC, under the terms of federal and pass-through grants, is subject to periodic audits and
  certain costs may be questioned as not being appropriate expenditures under the terms of
  the grants. Such audits could lead to reimbursement to the grantor agencies. CCACs’
  management believes disallowances, if any, will be immaterial.

Effective with the 2006 fiscal year, CCAC is no longer subject to audit by the State. All audits
  through fiscal year 2002 have been completed and resolved with the State. The
  Pennsylvania Department of Education (PDE) and CCAC had reached negotiated
  settlements:

        In fiscal 2004, CCAC had amounts due for the 1999 and 2000 audit years of
        $3,005,696, which the PDE began recovering from CCAC by deduction $150,284 from
        20 consecutive quarterly remittances to CCAC, which commenced with the March 2005
        quarterly payment. CCAC had already recognized this liability and a corresponding
        reduction of revenue for the full amount of this settlement in previous years. There is
        no remaining liability at June 30, 2010.

        During the 2007 fiscal year, for the audit years 2001 and 2002, CCAC had the final
        disallowance for those years reduced to $4,144,735. The PDE began recovering from
        CCAC by deducting $207,236 from 20 consecutive quarterly remittances to CCAC,
        which commenced with the March 2007 quarterly payment. The amount remaining as
        a liability at June 30, 2010, is $1,243,416.

        Preliminary audit findings for the fiscal 2003 have resulted in potential audit
        disallowances for that year in the amount of $1,145,088. This amount has been
        recognized as a liability with a corresponding reduction of revenue in fiscal 2005,
        although CCAC has appealed these disallowances.

        In fiscal year 2004 CCAC recorded a receivable due from the State in the amount of
        $1,632,691, representing the unremitted portion of the appropriation due CCAC for full
        -time equivalent students enrolled that year. During fiscal year 2005, the State made
        a payment in the amount of $213,152 to CCAC towards this obligation. The State
        made another payment of $213,151 towards this obligation during fiscal 2006.
        Preliminary audit disallowances for fiscal year 2004 in the amount of $573,483 were
        recognized as a reduction to revenue in fiscal year 2006, and have been recorded as a
        further reduction to the receivable due from the State for fiscal year 2004. No further
        payments have been received from the State towards their outstanding 2004 fiscal
        obligation to CCAC of $632,905. During fiscal 2010, the audit disallowances for fiscal




                                              146
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                                December 31 and June 30, 2010


        2005 in the amount of $542,787 were considered repaid to the State by CCAC via a
        reduction in the shortfall amount for fiscal 2003-2004 of $635,905, reducing the total
        shortfall amount for 2003-2004 year to $90,118. In addition, during 2009-2010, the
        State made payments toward this receivable of $90,118. There is no balance due
        from the State as of June 30, 2010.

        The fieldwork for the State audit for the 2005 fiscal year indicated audit disallowances
        amounting to $542,917. A payable to the State and a reduction of revenue by this
        amount was recognized in fiscal year 2007. During 2009-2010, this amount was
        considered repaid to the State by CCAC via a reduction in the shortfall amount for the
        2003-2004 year. As of June 30, 2010, there is no balance due the State.

Industrial Development Authority of Allegheny County

ACIDA receives significant financial assistance from governmental agencies in the form of
 contracts, grants, and other entitlements. The disbursement of funds received under such
 programs generally requires compliance with terms and conditions specified in the contract/
 grant agreements and are subject to audit by grantor agencies. Any disallowed costs
 resulting from such audits could become a liability of ACIDA. The amount, if any, of
 expenditure that may be disallowed by the granting agencies cannot be determined at this
 time. Management expects such amount, if any, to be immaterial.

(7) Short-Term Debt

On January 4, 2010, the County issued Tax and Revenue Anticipation Note (TRAN), Series of
 2010, in the amount of $50,000,000. The TRAN had an interest rate of 1% and matured on
 April 5, 2010. Proceeds from the TRAN were used to ensure sufficient cash flow for County
 operations prior to the receipt of property tax revenues. The TRAN was repaid on April 1,
 2010.


                                  Balance at                                     Balance at
                               January 1, 2010    Increase     Decrease      December 31, 2010

     Tax and Revenue
       Anticipation Note   $           -         50,000,000   (50,000,000)              -

     Total                 $           -         50,000,000   (50,000,000)              -




                                                 147
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Component Units - Short-Term Debt

Allegheny County Airport Authority

On November 29, 2005, ACAA entered into a credit agreement with Citizens Bank of
 Pennsylvania for the borrowing of aggregate principal not to exceed $40,000,000. This
 credit facility is a revolving line of credit (RLOC), and will be used to finance projects for
 which use of PFC revenue has been approved by the FAA pursuant to the PFC Statute and/
 or the PRC Regulations. Interest rate on this RLOC is LIBOR plus 60 basis points.

On September 29, 2008, ACAA received a Reservation of Rights under Credit Agreement letter
 from Citizens Bank. This letter advised of an Event of Default due to PFC revenues
 collected for the four previous quarters ending June 30, 2008 falling below the $20,000,000
 level as stipulated in the loan agreement. Citizens Bank elected not to exercise its rights
 and remedies under the Agreement; however, seized the opportunity to require an
 amendment to reset the financial covenant, line of credit, and pricing terms of the
 agreement. An Administrative Action was approved by the ACAA Board in February 2009
 allowing an amendment to be entered into with Citizens Bank. The amendment changes the
 financial covenant requiring the minimum TTM collection level of PFC revenues from
 $20,000,000 to $16,000,000, commitment amount of the revolving line of credit from
 $40,000,000 to $35,000,000, and pricing from 30 day LIBOR advantage + .60%;
 plus .125% unused line fee to 30 day LIBOR advantage + 2.50%; plus .25% unused line
 fee. Additionally the amendment will modify the pricing on the AGC Hangar loan from 30
 day LIBOR + .65% to 30 day LIBOR + 2.50%. A second amendment to the loan
 agreement was executed on November 19, 2010 reducing the interest rate to 12 month
 LIBOR + 1.5% and further reducing the minimum TTM collection levels of PFC revenue to
 $14,000,000.

Interest rate on this RLOC is 1.76% at December 31, 2010. The amount outstanding at
  December 31, 2010 was $27,000,000.

Port Authority of Allegheny County

In September 2009, PAT entered into a $20,000,000 Revolving Credit Loan Agreement
  (Revolving Loan) with PNC Bank to provide working capital for 2010 operation expenses.
  The Revolving Loan was secured by the 2010 Operating Assistance grant from the State.
  The rate of interest was determined as each drawdown date based on one of two interest
  rate options (Base Rate Option and Euro-Rate Option) selected by PAT. All drawdown
  requests were repaid in full during 2010 and the Revolving Loan was closed on June 30,
  2010.




                                              148
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                                December 31 and June 30, 2010



(8) Long-Term Debt

  General obligation bonds payable at December 31, 2010, are summarized as follows:


                                                     Final
     Bond                              Issue       Maturity                       Amount
     Series         Interest Rate      Dates        Dates                Issued        Outstanding
      S-18          6.35 - 7.40%       1990         2012        $       4,977,038        13,869,587
      C-50          Variable (1)       2000         2027               37,345,000        37,295,000
      C-51          Variable (1)       2000         2027               14,455,000        14,455,000
      C-53          4.35 - 5.25        2000         2020               16,790,000        13,400,000
      C-55          1.70 - 5.375       2002         2017               59,705,000        59,670,000
      IDA           1.95 - 5.00        2002         2029               19,870,000         9,800,000
      C-56          1.25 - 5.00        2003         2016              104,096,051        21,960,000
      C-57          3.00 - 5.00        2005         2023              170,835,000       167,790,000
      SEA           1.95 - 5.00        2005         2018                4,172,500         1,590,000
      C-58          Variable (2)       2006         2016               30,000,000        19,560,000
     C-59A          3.68 - 3.89        2007         2016               28,730,000        22,780,411
     C-59B          Indexed (3)        2007         2026               43,945,000        34,844,589
      C-60          3.66 - 4.19        2007         2032               56,625,000        56,610,000
      C-61          3.00 - 5.00        2008         2033               49,220,000        49,215,000
      C-62          2.50 - 5.00        2009         2029               80,000,000        79,995,000
      C-63          2.50 - 5.00        2009         2014               27,500,000        21,120,000
      C-64          6.25               2010         2027                9,385,000         9,385,000
   General obligation (G.O.) bonds                                  $ 757,650,589       633,339,587
   Premium/Discounts and other adjustments                                               22,556,552
   Debt assumed by component units                                                          (71,273)

   Total long-term debt                                                                 655,824,866

   Less: current maturities                                                              39,683,102

                                                                                      $ 616,141,764

   (1) At December 31, 2010, the rate was 3.30%; the maximum for this issue is 10%.
   (2) At December 31, 2010, the rate was 3.30%; the maximum for this issue is 12%.
   (3) The synthetic fixed rate for this series is 4.1355%.


Included in the $633,339,587 of outstanding general obligation bonds is $14,590,000 of
  Capital Appreciation Bonds, which is net of $720,413 of unamortized discount. Excluded
  from the $104,096,051 is the $338,949 Allegheny County Airport Authority share of the C-56
  debt issuance.




                                                 149
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



The following is a summary of the changes in general obligation bonds payable of the County
  during 2010:
                                                                   Governmental
                                                                      Funds
                   G.O. Bonds payable at January 1, 2010       $    689,125,322
                   Additions:
                     General Obligation Bonds Series C-64             9,385,000
                     Accretion adjustment                             1,102,929
                                                                     10,487,929

                   Deletions:
                      Retirements                                    41,349,965
                      Amortization of premium and
                          adjustments                                 2,438,420
                   Total deductions                                  43,788,385

                   G.O. Bonds payable at December 31, 2010          655,824,866

                   Less: current maturities                          39,683,102

                                                               $    616,141,764

On November 30, 2010 the County issued Taxable General Obligation Energy Conservation
 Bonds, Series C-64 in the amount of $9,385,000. The proceeds of the Series C-64 Bonds
 were used to fund various energy conservation projects of the County’s Capital Budget.

On August 12, 2009 the County issued General Obligation Bonds, Series C-62 in the amount of
 $80,000,000. The proceeds of the Series C-62 Bonds were used to fund various projects of
 the County’s Capital Budget.

On August 12, 2009, the County issued General Obligation Bonds, Series C-63 in the amount
 of $27,500,000. The proceeds of the Series C-63 Bonds were used to: (1) partially refund
 the County’s General Obligation Bonds, Series C-47; and (2) refund the County’s General
 Obligation Bonds, Series C-48.

As noted above, in 2009 the County General Obligation Bonds, Series C-47 were partially
 refunded and the County’s General Obligation Bonds Series C-48 were refunded, thereby
 decreasing the County’s total debt service payments over the next 5 years by approximately
 $1,870,543 representing an economic gain (the difference between the present valve of the
 old and new debt service payments) to the County of $1,968,789.

On June 19, 2008 the County issued General Obligation Bonds, Series C-61 in the amount of
 $49,220,000. The proceeds of the Series C-61 Bonds were used to : (1) finance various
 capital projects of the County’s capital improvement program; (2) refund, on a current
 refunding basis, a portion of the County’s outstanding Adjustable Rate Demand General
 Obligation Bond, Series C-58A; and (3) provide capitalized interest on the Bonds.




                                               150
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                            December 31 and June 30, 2010



On March 14, 2007, the County issued General Obligation Refunding Notes, Series C-59A
 (Fixed Rate), in the amount of $28,730,000 and General Obligation Refunding Notes, Series
 C-59B (Index Rate) in the amount of $43,945,000, totaling an aggregate principal amount of
 $72,675,000. The proceeds of the Series C-59 A & B Notes were to: (1) refund certain of
 the Allegheny County Industrial Development Authority series 2002A and 2002B Bonds; and
 (2) refund the County’s General Obligation Bond Series C-45. To achieve a synthetic fixed
 rate for the C-59B interest payments, the County entered into an interest rate swap
 contract. See Note 14, Derivative Financial Instruments, for more detail on this contract.

As noted above, in 2007 the Allegheny County Industrial Development Authority Series 2002A
  and 2002B Bonds were partially refunded and the County’s General Obligation Bonds Series
  C-45 were refunded, thereby decreasing the County’s total debt service payments over the
  next 23 years by approximately $2,357,648 representing an economic gain (the difference
  between the present value of the old and new debt service payments) to the County of
  $2,825,825. The deferred refunding loss on this issue was $1,431,781.

On March 14, 2007, the County issued General Obligation Notes, Series C-60 in the amount of
 $56,625,000. The proceeds of the Series C-60 Notes were used to fund various projects of
 the County’s Capital Budget.

On November 27, 2006, the County issued Adjustable Rate Demand General Obligation Bonds,
 Series C-58A in the amount of $30,000,000. The proceeds of the Series C-58A Bonds were
 used to finance various bridge and road projects of the County’s capital improvements
 program.

The C-58A Bonds were issued with three variable rate periods encompassing daily, weekly and
  monthly rates. The bonds utilize an irrevocable direct pay letter of credit. The bonds are
  subject to purchase on demand of the holders while in the daily, weekly or monthly modes
  at a price equal to the principal plus accrued interest.

Starting January 1, 2007 and each quarter thereafter, the County paid a facility fee to the
  irrevocable direct pay letter of credit holder. At December 31, 2010 the fee was 1.4% of the
  stated amount.

On January 19, 2005 the County issued General Obligation Refunding Bonds, Series C-57 in
 the amount of $170,835,000. The proceeds of the Series C-57 Bonds were used to: (1)
 refund certain of the County’s outstanding General Obligation Bonds, Series C-44, C-46 and
 C-49; and (2) defease certain of the County’s General Obligation Bonds, Series C-47, C-48,
 C-52, C-53 and C-54.




                                             151
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


As noted above, in 2005 the County’s General Obligation Bonds Series C-47, C-48, C-49 and C-
 53 were partially refunded and the County’s General Obligation Bonds Series C-44, C-46, C-
 52 and C-54 were refunded, thereby decreasing the County’s total debt service payments
 over the next 19 years by approximately $5,648,483 representing an economic gain (the
 difference between the present value of the old and new debt service payments) to the
 County of $5,010,308.

On September 29, 2005, pursuant to a supporting agreement with the Sports and Exhibition
 Authority of Pittsburgh and Allegheny County, the County agreed along with City of
 Pittsburgh to each pay one-half of the principal and interest on the Sports and Exhibition
 Authority Auditorium Bonds, Refunding Series A 2005, in the amount of $8,345,000
 (County’s share $4,172,500). This issue was used to: (1) refund the Sports and Exhibition
 Authority Auditorium Bonds Series 1999; (2) pay interest on outstanding indebtedness of
 the Authority; and (3) to fund certain expenses of the Convention Center. The County and
 the City shared equally the debt service payments for the Series 1999 Bonds.

On August 15, 2003, the County issued General Obligation Refunding Bonds, Series C-56, in
 the amount of $104,435,000. Of this total $338,949 is the obligation of the ACAA. The
 proceeds of the Series C-56 Bonds were used to: (1) refund certain of the County’s
 outstanding Institution District Series 14 and General Obligation Bonds Series C-40; and (2)
 defease certain of the County’s General Obligation Bonds, Series C-42, C-44 and C-46.

As noted above, in 2003 the County’s Institution District Series 14 and General Obligation
 Bonds Series C-40 were refunded, General Obligation Bonds Series C-42, C-44 and C-46
 were partially refunded, thereby decreasing the County’s total debt service payments over
 the next 13 years by approximately $7,614,317 representing an economic gain (the
 difference between the present value of the old and new debt service payments) to the
 County of $7,134,829.

As noted above, in 2005 the Sports and Exhibition Authority Bonds Series 1999 were fully
 refunded, thereby decreasing the County’s share of total debt service payments over the
 next 14 years by approximately $118,169, representing an economic loss (difference
 between present value of the old and new debt service payments) to the County of $5,776.

In prior years the County has defeased various general obligation bonds by placing the
  proceeds of new bonds in an irrevocable trust to provide for all future debt service payments
  on the old bonds. Accordingly, the trust account assets and the liability for the defeased
  bonds are not included in the accompanying government-wide financial statements. At
  December 31, 2010, $150,275,000 of bonds and other long-term debt obligations
  outstanding are considered defeased.




                                             152
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                               December 31 and June 30, 2010


The annual debt service requirements to amortize all general obligation bonds outstanding as
  of December 31, 2010, are as follows:
              Year Ending
             December 31                 Principal            Interest          Total

        2011                   $        39,694,559          26,606,656     66,301,215
        2012                            40,954,559          25,504,541     66,459,100
        2013                            42,512,059          24,048,834     66,560,893
        2014                            44,604,559          22,115,876     66,720,435
        2015                            42,084,559          20,024,921     62,109,480
        2016-2020                      164,710,295          74,541,657    239,251,952
        2021-2025                      106,075,294          49,175,022    155,250,316
        2026-2030                      113,669,116          25,349,237    139,018,353
        2031-2033                       39,755,000           2,805,000     42,560,000
                                       634,060,000         270,171,745    904,231,745
        Accretion                          (720,413)               -          (720,413)
        Debt assumed by
          component units                  (71,273)            (16,923)       (88,196)
        Premium on issues               38,619,054                -        38,619,054
        Amortization                   (15,312,496)               -       (15,312,496)
        Discount on issue                 (833,340)               -          (833,340)
        Amortization                        83,334                -            83,334

                               $       655,824,866         270,154,822    925,979,688

Capital Leases – In 2006 the County entered into a capital lease agreement to renovate a
  building for the Medical Examiner’s laboratory and office space. The terms of the lease
  arrangement are 20 years and provide an option for the County to purchase the building at
  the end of the lease term in 2026. The present value amount of the capital lease obligation
  was $7,678,839. The lease obligation is at a 4.0% interest rate, and is payable in monthly
  installments of $34,174 through June 2026. Also included in the obligation amount is a
  bargain purchase option of $4,125,000, payable at the end of the lease. The balance due as
  of December 31, 2010 is $6,551,657.

Future minimum payments required under the capital lease obligations are as follows:
                Year Ending
               December 31             Principal            Interest           Total
                    2011           $      223,331      $      186,762     $     410,093
                    2012                  232,264             177,829           410,093
                    2013                  241,554             168,539           410,093
                    2014                  251,217             158,876           410,093
                    2015                  261,266             148,827           410,093
                2016-2020              1,471,703              578,762          2,050,465
                2021-2025              1,790,553              259,912          2,050,465
                    2026               2,079,769            2,250,278          4,330,047
                                   $   6,551,657       $    3,929,785     $   10,481,442



                                                     153
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                 December 31 and June 30, 2010


Workers' compensation and claims as well as compensated absences for sick benefits are paid
 from the General Fund. The following is a summary of changes in all other long-term
 liabilities for the year ended December 31, 2010:
                             Balance at                                   Balance at       Current
                          January 1, 2010   Increase    Decrease      December 31, 2010    Portion

Accrued sick
 benefits (Note 1G)   $       7,197,560      818,481     (356,175)           7,659,866     326,269
Accrued workers'
 compensation                 7,640,289     3,436,205   (4,774,975)          6,301,519    4,788,538

Total                 $      14,837,849     4,254,686   (5,131,150)         13,961,385    5,114,807



At December 31, 2010, the County has no significant potential arbitrage liability.




                                                 154
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010



Component Units - Long-Term Debt

Allegheny County Airport Authority
General obligation and revenue bonds payable at December 31, 2010, are as follows:


                                                                                         Amount
                                                                                        Outstanding
  Airport Revenue Bonds:
         Subordinate Lien Series A 2001, interest rate of 5.50%, due through 2017 $   2,445,000
         Subordinate Lien Series B 2001, interest rates of 6.03% to 6.73%,
           due through 2017                                                           7,375,000
  Airport Revenue Refunding Bonds:
         Series 2010A, interest rate of 5.00%, due through 2018                      30,310,000
         Series 2007A, interest rate of 5.00%, due through 2016                      53,445,000
         Series 2007B, interest rate of 5.00%, due through 2019                     100,375,000
         Series 2002A, interest rate of 4.00% to 4.50%, due through 2015             21,715,000
         Series 2002B, interest rate of 4.50% to 5.00%, due through 2023             50,075,000
         Series A 2001, interest rate of 4.00% to 4.50%, due through 2016            22,870,000
         Series B 2001, interest rate of 5.00%, due through 2022                     45,500,000
         Series 1997A-1, interest rates of 5.00% to 5.75%, due through 2016          76,530,000
  General Obligation Refunding Bonds:
         Series C-56, County of Allegheny, interest rates of 1.25% to 5.00%,
           due through 2016                                                              71,273
  Net unamortized premium                                                            10,699,006
                                                                                        421,410,279
        Commonwealth of Pa Department of Transportation Infrastructure
          Bank Aviation Loan, interest rate 4.125%, due through 2017                        718,949
        Industry drive loan, interest rate of 4.7%, due through 2028                      1,309,667
        Tax Increment Financing, interest rate 5.75%, due through 2025                    4,596,718
        Business in our sites program loan, interest rate of 3%, due though 2030          2,000,000
        Hangar loan, variable interest rate, due through 2028                             1,105,000
        Northfield tax increment financing, interest rate of 6.5%, due through 2019       3,787,885
        Gaming grant anticipation loan, variable interest rate, due through 2015         15,000,000
                                                                                         28,518,219
  Total debt                                                                            449,928,498
  Deferred amount on refundings                                                         (19,783,678)
  Less: current maturities                                                              (45,570,356)
  Total long term debt                                                                $ 384,574,464



On October 6, 1997, the County issued Airport Revenue Refunding Bonds, Series 1997A-1,
 1997A-2 and 1997B (the 1997 Refunding Bonds) in the amounts of $337,530,000,
 $10,015,000 and $103,045,000, respectively. The Series 1997A-1 and 1997A-2 Bonds were




                                                155
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  issued to refund the remaining portion of the 1988 Revenue Bonds not refunded by the
  1993 Bonds. The 1997B Refunding Bonds were issued to advance refund a portion of the
  1990 Revenue Bonds and 1992 Revenue Bonds. The total amount of the bonds refunded
  was $457,505,000, consisting of $433,020,000 of the 1988 Revenue Bonds; $5,340,000 of
  the 1990 Revenue Bonds, and $19,145,000 of the Series 1992 Revenue Bonds. Included in
  the 1997 Refunding Bonds were escrowed funds to advance refund $6,790,000 of the 1992
  Revenue Bonds (Non-defeased Bonds). The 1997 Bonds are secured by a pledge of certain
  net revenues of the ACAA, and are also guaranteed by various third-party insurers and
  guarantors.

The proceeds from the sale of the 1997 Refunding Bonds are being held in escrow under an
  escrow refunding agreement and have been invested in United States Treasury obligations.
  The principal amount of such investments, together with interest earned thereon, will permit
  the payment of principal and interest on the refunded bonds up to and including their
  respective call dates. The refunded bonds are treated in the financial statements as
  defeased obligations. Accordingly, neither the trust account assets nor the refunded bonds
  appear in the accompanying government-wide financial statements. The Non-Defeased
  Bonds are included in the financial statements along with the respective portion of the trust
  account assets. Based upon the requirements of Governmental Accounting Standards Board
  Statement No. 23, ―Accounting and Financial Reporting for Refundings of Debt Reported by
  Proprietary Activities‖, ACAA recorded a deferred amount on refunding of $21,095,769. This
  amount is being amortized over the life of the 1997 Refunding Bonds. The deferred amount
  is recorded as a component of long-term debt in the Statement of Net Assets. Effective
  January 1, 2002, the defeased bonds were fully refunded.

On July 1, 2001, ACAA issued Subordinate Lien Airport Revenue Bonds, Series 2001A (PIA
 Energy System Project) (the 2001 Series A Bonds) in the amount of $2,445,000 and
 Subordinate Lien Airport Revenue Bonds, Series 2001B Taxable (PIA Energy System Project)
 (the 2001 Series B Bonds) in the amount of $16,670,000. The 2001 Series A Bonds and the
 2001 Series B Bonds are referred to together as the 2001 Bonds. The proceeds of the 2001
 Bonds were used to acquire the equipment constituting the Energy Service Facility (the
 Facility) located at PIA. The 2001 Bonds are subordinated and limited obligations of ACAA.
 The principal of, interest on and premium, if any, on the 2001 Bonds are payable by ACAA
 only out of net revenues and from such other monies as may be available for such purpose.
 The general credit of ACAA is not pledged for the payment of the 2001 Bonds. The 2001
 Bonds shall not be deemed a general obligation of ACAA.

On October 1, 2001, ACAA issued Airport Revenue Refunding Bonds, Series 2001A (the 2001
 Series A Refunding Bonds) in the amount of $52,600,000, and Airport Revenue Refunding
 Bonds, Series 2001B (the 2001 Series B Refunding Bonds) in the amount of $52,575,000.
 The 2001 Series A Refunding Bonds and the 2001 Series B Refunding Bonds are referred to
 together as the 2001 Refunding Bonds. The proceeds of the 2001 Refunding Bonds were
 used to pay a portion of the costs of refunding the 1999 Revenue Notes, Series A
 outstanding under the Trust Indenture dated December 1, 1999 by and between ACAA and




                                             156
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                            December 31 and June 30, 2010


  National City Bank of Pennsylvania, as trustee, and the concomitant refunding of the 1992
  Revenue Bonds, Series A and B, outstanding under the Certain Resolution of the County of
  Allegheny dated July 22, 1988, as supplemented and amended. ACAA recorded a deferred
  amount on refunding of $8,035,439 that is being amortized over the life of the 2001
  Refunding Bonds.

On October 1, 2002, ACAA issued Airport Revenue Bonds, Refunding Series 2002A (the 2002
 Series A Refunding Bonds) in the amount of $57,250,000 and Airport Revenue Bonds,
 Refunding Series 2002B in the amount of $57,250,000 (the 2002B Series Refunding Bonds).
 The 2002 Series A Refunding Bonds and the 2002 Series B Refunding Bonds are referred to
 together as the 2002 Refunding Bonds. The proceeds of the 2002 Refunding Bonds were
 used to refund the outstanding principal balance of Revenue Bonds Series 1993 A, B, and C,
 which are equal to and represented by the outstanding principal balance of the ACAA
 Revenue Note, Series 1999B. The ACAA recorded a deferred amount on refunding of
 $8,208,615 that is being amortized over the life of the 2002 bonds.

On November 30, 2006, the ACAA remarketed the 2001 Refunding Bonds, and the 2002
 Refunding Bonds for the purpose of changing the nature of the bonds from variable rate
 auction bonds to fixed rate serial bonds. The remarketed bonds have substantially the same
 repayment terms, except for the interest rate. The ACAA recorded a deferred amount on the
 remarketing of $8,335,129 that is being amortized over the life of the 2001 and 2002 bonds.

On October 3, 2007, ACAA issued Airport Revenue bonds, Refunding Series A of 2007 in the
 amount of $53,445,000 and Airport Revenue Bonds, Refunding Series B of 2007 in the
 amount of $100,375,000 (the 2007 Refunding Bonds). The proceeds of the 2007 Refunding
 Bonds together with investment income were used to refund the County of Allegheny Airport
 Revenue Bonds Series 1997A-1 (AMT) ($54,130,000) and 1997 Series B ($103,045,000).
 The Authority recorded a deferred loss on refunding of $1,657,212 that is being amortized
 over the life of the 2007 Bonds. Proceeds of the 2007A & B Bonds were placed in escrow
 and with interest earned were used to redeem the refunded bonds on January 1, 2008. In
 accordance with the Trust Indenture, all funds related to the 1997 A-1 and B Bonds were
 held in their existing accounts until the bonds were redeemed on January 1, 2008. Upon
 the redemption of the 1997 A-1 and B Bonds, all remaining funds related to the 2007A & B
 Bonds were transferred over to the new accounts.

On September 15, 2010 the ACAA issued Airport Revenue Bonds, Refunding Series A of 2010,
 in the amount of $30,310,000 (the 2010 Refunding Bonds). The proceeds of the 2010
 Refunding Bonds together with investment income were used to refund the County of
 Allegheny Airport Revenue Bonds Series 1999 (the Refunded Bonds). The ACAA recorded a
 deferred loss on refunding of $518,548 which is being amortized over the life of the 2010
 Bonds. The Series 2010A Bonds currently refunded $32,055,000 principal amount of the
 Refunded Bonds maturing on or after January 1, 2012 at a redemption price of 101% plus
 interest to the redemption date on or about September 17, 2010. The Series 1999 Bonds
 maturing on January 1, 2011 were redeemed using funds already in the Debt Service Fund




                                            157
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  and the Debt Service Reserve Fund.

 The 2010 Refunding Bonds carry fixed rates of interest. The coupons ranged from 4.00% to
  5.00% with an average coupon of 4.68%. The arbitrage yield was 3.65% and the individual
  yields ranged from 2.26% to 4.11% in 2018. The Series 2010A Bonds are not subject to
  optional redemption prior to the respective maturities. There was an economic present
  value savings of $1,671,648 and an approximate annual savings of $200,000 applicable to
  the refunding.

The 2010 Refunding Bonds are limited obligations of the ACAA. The principal, interest and
  premium, if any, on the 2010 Refunding Bonds are payable by the ACAA solely from
  revenues (defined as operating and other revenues after certain adjustments minus the
  operation and maintenance expenses) and proceeds of Refunding Bonds held or set aside
  under the Indenture. Neither the general credit of the ACAA nor the credit or taxing power
  of the County, the Commonwealth or any political subdivision thereof is pledged for the
  payment of the 2010 Refunding Bonds.

Certain bonds within all series of debt are subject to redemption, at the option of the ACAA,
 as a whole or in part, from time to time, beginning January 1, 2002, or at any time
 thereafter, upon payment of the stipulated redemption price which ranges from 100% to
 102% of the principal amount plus accrued interest to the date fixed for redemption.

Industry Drive Loan - On March 26, 2003, ACAA entered into an agreement with the RAAC in
  which RAAC provides funding for the construction of an extension of the existing public road
  known as Industry Drive to permit further development of the undeveloped land lying
  mostly north of the Industry Drive Extension right-of–way between the right-of-way and the
  Pennsylvania Route 60 by-pass. RAAC has agreed to lend $4,000,000 to ACAA for this
  project and ACAA has agreed to contribute $2,800,000. Disbursements from RAAC towards
  the Industry Drive Project at December 31, 2010 were $1,484,629. The ACAA repaid
  $52,918 in 2010. The repayment terms are $9,652 per month on a twenty year term
  expiring in 2028.


Tax Increment Financing (TIF) - On November 1, 2005, ACAA entered into an agreement with
  RAAC in which RAAC provides TIF for the development and financing of the Clinton
  Industrial Park Project that includes certain substantial public on-site and off-site
  improvements. RAAC has issued a series of TIF Notes in an aggregate principal of
  $5,000,000 to fund public improvements relating to Phase I of the Clinton Industrial Park
  Project with another $500,000 unissued notes. As of December 31, 2010, RAAC disbursed
  $4,596,718 for construction fund deposit, debt service reserve fund and financing fees and
  expenses. Interest only payments are required through December 1, 2010. Semi-annual
  principal and interest commence June 1, 2011. The source of repayment of this TIF is
  limited to the tax revenues and lease rental income generated by the project.




                                             158
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


Commonwealth of Pennsylvania Department of Transportation Loan -- On September 12,
  2007, ACAA entered into a loan agreement with the Commonwealth of Pennsylvania,
  Department of Transportation, to provide a portion of funding necessary to complete ACAA’s
  South Ramp Taxilanes Relocation and Hangar Redevelopment Project at the Allegheny
  County Airport. The estimated project cost is $4,100,000 of which the Department of
  Transportation agreed to loan ACAA $1,000,000 at an annual interest rate of 4.125%. The
  term of the loan is 120 months and requires monthly payments of $10,184. The remaining
  project costs are to be funded through ACAA funds, FAA grants, Pennsylvania Department of
  Transportation grants and an additional $1,300,000 10-year term loan. ACAA repaid
  $90,516 in 2010. The ACAA has the ability to prepay this loan, in $1,000 increments,
  without penalty.

Commonwealth Financing Authority Business in Our Sites Program (BIOS) -- On January 18,
  2007, the ACAA entered into a loan agreement with the Commonwealth Finance Authority
  to provide a $2,000,000 loan for the purpose of completing the Cherrington Parkway
  Extension. Terms of this loan are 20 years with a 3% interest rate. All principal and
  interest payments will be deferred, and interest will not accrue, until one of the following
  occurs: sale of the property, property is leased, or if five years have passed since
  completion of the site development work.

Allegheny County Airport (AGC) Hangar Loan -- On January 11, 2008, the ACAA entered into a
  loan agreement with Citizens Bank to a provide $1,300,000 loan for the purpose of
  constructing 18 new T-hangars and certain taxilane improvements. Terms of this loan are
  40 equal consecutive quarterly payments of $16,250, which commenced in April 2008, and
  one final payment of all outstanding balances of principal and interest accrued. Interest rate
  is 30-day LIBOR + 2.50% effective January 1, 2009. A second amendment to the loan
  agreement was executed on November 19, 2010 reducing the interest rate to 12 month
  LIBOR + 1.50%. The ACAA repaid $65,000 in 2010 .

Northfield Tax Increment -- On May 1, 2008, ACAA entered into an agreement with RAAC for a
 second TIF for the development of the Northfield site located on the north side of the
 airfield. The TIF proceeds will fund certain on-site and off-site public infrastructure and
 improvements. RAAC issued a TIF note in the amount of $5,000,000 to fund the
 improvements related to the Northfield site. As of December 31, 2010 the amount borrowed
 was $3,787,885 for construction fund deposit, debt service reserve fund, and financing fees
 and expenses. Monthly interest only payments are required through the fifth anniversary of
 the first draw by the ACAA. Semi-annual principal and interest payments commence June
 30, 2014. The source of repayment of the TIF is the tax revenues and lease rental income
 generated by the project.

Gaming Grant Anticipation Loan -- On June 22, 2009, ACAA entered into a loan agreement
 with PNC Bank, National Association to provide a $20,000,000 loan for anticipated gaming
 revenue grants to finance projects authorized by Section 3(2)(I)(e) of Act 53 in advance of
 the receipt of Airport Development Grants from the Gaming Fund. Terms of this loan include




                                              159
                                       COUNTY OF ALLEGHENY
                                   Notes to the Financial Statements
                                    December 31 and June 30, 2010


  principal payments commencing on January 15, 2011 with consecutive annual payments of
  $4,000,000 through January 15, 2015. The interest rate will be LIBOR +2.00%. The
  interest rate at December 31, 2010 was 2.82%. The ACAA advance paid $8,000,000 in
  January 2011.

The annual debt service requirements of long-term debt for the years subsequent to
  December 31, 2010 assuming the current interest rates remain the same for the term of the
  debt are as follows:
              Year Ended December 31               Principal**          Interest*          Total


                         2011                $      45,570,356          21,951,857       67,522,213
                         2012                       47,664,741          19,662,933       67,327,674
                         2013                       50,104,571          17,211,811       67,316,382
                         2014                       51,394,644          14,675,404       66,070,048
                         2015                       49,993,232          12,282,462       62,275,694
                      2016-2020                   174,408,260           25,217,436      199,625,696
                      2021-2025                     19,051,851           2,127,906       21,179,757
                      2026-2030                      1,041,837              85,974         1,127,811


                                             $    439,229,492          113,215,783      552,445,275

              * The interest payments have been estimated as noted above, such estimated
                 values are subject to uncertainty and, therefore, may differ from the values
                  that will be paid in the future and such differences could be material.
              ** Principal includes the Bonds due 1/1/ of the succeding years, as the ACAA
                  has paid January 1, 2011 in December 2010 and plans to continue that practice.


The following is a summary of changes in long-term liabilities for ACAA for the year ended
  December 31, 2010:
                                           Balance at                                      Balance at       Current
                                        January 1, 2010    Additions      Reductions   December 31, 2010    Portion
Bonds payable:
 Revenue bonds payable               $    441,544,935     30,310,000      70,228,333        401,626,602
 Industry Drive Loan                        1,362,585           -             52,918          1,309,667
 PA Department of Transportation loan         809,465           -             90,517            718,948
 Tax Increment Financing                    4,596,718           -               -             4,596,718
 Business in Our Sites Program Loan         2,000,000           -               -             2,000,000
 Moon Township Municipal Authority Loan       400,000           -            400,000               -
 Hangar Loan                                1,170,000           -             65,000          1,105,000
 Northfield tax increment financing         2,709,883      1,078,002            -             3,787,885
 Gaming grant anticipation loan            20,000,000           -          5,000,000         15,000,000
Constant Maturity Swap                           -           374,592                            374,592
Other long-term liability                     861,347         87,036            -               948,383
Advance airline fundings                   32,163,666        339,160            -            32,502,826
Accrued post employment benefits               77,097         25,074            -               102,171
Deferred revenues                           8,745,012           -          1,074,749          7,670,263
Total                               $     516,440,708     32,213,864      76,911,517        471,743,055    46,660,105




                                                          160
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


ACAA has two purchase commitments: (1) Natural Gas -- ACAA has entered into a contract
  with a natural gas provider for the purchase of approximately 200,000 dth of natural gas
  each year. ACAA will pay the provider at the New York Mercantile Exchange rate, plus $.535
  per dth beginning January 1, 2010 through December 31, 2013. A Blend and Extend
  Agreement was executed in August 2010 reducing the rate to $.48 per dth beginning May 1,
  2011 though December 31, 2015. ACAA is responsible for the nominations under the
  contract and can adjust the monthly nominations of the natural gas purchases up to 20%
  each year. ACAA anticipates using the full amount of the commitment, and (2) Electricity --
  ACAA has entered into a contract with an electricity provider for the purchase of electricity
  for specific meters at rate of $6.94/kWh. The contract was to be in effect until
  December 31, 2011. An extension of the contract was executed in May 2010 reducing the
  rates to a range of $5.74kWh to $5.94kWh for the period December 1, 2011 through
  December 1, 2013. The commitment includes most of ACAA forecasted electricity usage.

Port Authority of Allegheny County

Long-term obligations of PAT consist of the following at June 30, 2010:
                     Special Revenue Transportation Bonds
                        Unpaid principal                    $   303,585,787
                        Unamortized bond discount                  262,083
                        Deferred amount on refunding            (10,514,401)
                                                                293,333,469
                     Capital Lease Agreements                    94,517,711
                     Swaption                                     9,138,841

                     Total long-term debt                       396,990,021
                     Less current maturities:
                        Bonds                                    21,160,762
                        Leases                                   78,020,511

                                                            $   297,808,748


On November 4, 1999, PAT issued $225,000,000 of Special Revenue Transportation Bonds,
 Series of 1999 (the 1999 Bonds). The proceeds from the sale of the 1999 Bonds were used
 primarily to fund certain capital additions and improvements to PAT’s public transit system.

On March 1, 2001, PAT issued $250,695,000 of Special Revenue Transportation Bonds, Series
 of 2001 (the 2001 Bonds). Approximately $240.0 million of the proceeds from the sale of
 the 2001 Bonds were used to advance refund the 1999 Bonds. An additional $7.5 million
 was realized for capital projects.

In connection with the advance refunding, a portion of the proceeds of the 2001 Bonds was
  deposited in an irrevocable trust with an escrow agent to provide for certain debt service




                                                161
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  payments on the refunded bonds. The advance refunding resulted in a deferred refunding
  adjustment of $15,771,597 that will be amortized over the life of the 2001 Bonds. At June
  30, 2010, $5,257,199 has been amortized.

Interest on the 2001 Bonds is payable semiannually on March 1 and September 1,
  commencing September 1, 2001. Interest rates range from 3.75% to 5.75% throughout the
  term of the bonds.

Amortization of the bond discount of $1,564,785 and the bond issuance costs of $1,207,946
 will be recognized over the twenty-eight year term of the bonds. At June 30, 2010,
 $521,595 of the bond premium and $465,710 of the bond issuance costs had been
 amortized.

The bond agreements for the above issues require, among other things, that PAT maintain a
  Debt Service Reserve Fund for each issue. The Debt Service Reserve Fund is required to be
  funded at all times in an amount equal to the relevant debt service requirement relating to
  each series of bonds outstanding.

During fiscal year 2003, PAT entered into a Master Financing Agreement (Agreement) for the
  purchase of capital assets, primarily buses. As of June 30, 2009, PAT had incurred
  $131,631,500 of debt related to this financing. This debt is secured by an equity interest in
  the purchased assets.

Interest on the debt is payable semiannually on each March 1 and September 1, commencing
  September 1, 2003. Interest rates are set at the time of the draw down, current bonds
  outstanding bear interest at 5.25%.

The debt was issued at a premium of $6,010,768 which is being amortized over the ten year
  term of the Agreement. At June 30, 2010, $4,705,448 have been amortized.




                                              162
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                                December 31 and June 30, 2010


The following is a summary of PAT’s changes in bond transactions for the year ended June 30,
  2010:
                                                                   Amortization/
                                                 Balance at        Payments and             Balance at
                                                July 1, 2009        Retirements           June 30, 2010
           Series of 2001 Bonds             $    244,490,000         (7,150,000)           237,340,000
           Master Financing Agreement             79,159,672        (12,913,885)            66,245,787
                                                323,649,672         (20,063,885)           303,585,787
           Bond discount and
             premium                                   805,466          (543,383)                 262,083
           Deferred amount
             on refunding                        (11,077,672)               563,271        (10,514,401)
           Net outstanding                      313,377,466         (20,043,997)           293,333,469
           Less current amounts:
             Series of 2001 Bonds                                                           (7,560,000)
             Koch Bonds                                                                    (13,600,762)
             Total current portion of long-term debt                                       (21,160,762)

             Total long term debt - net                                               $    272,172,707



The annual debt service requirements related to the bonds are as follows:

             Year Ending June 30           Principal             Interest                 Total

                    2011             $    21,160,763           15,491,412          36,652,175
                    2012                  22,289,175           14,361,680          36,650,855
                    2013                  23,481,064           13,171,643          36,652,707
                    2014                  18,345,766           11,960,475          30,306,241
                    2015                  16,532,858           11,034,845          27,567,703
                  2016-2020               61,401,161           44,245,494         105,646,655
                  2021-2025               70,350,000           28,401,000          98,751,000
                  2026-2029               70,025,000            8,966,500          78,991,500

                     Total           $ 303,585,787           147,633,049          451,218,836

Restricted assets include approximately $19.9 million of cash invested in a debt service reserve
 fund restricted for debt service on the above bonds.

In conjunction with their swaption transaction described in Note 14, PAT received an up front
  cash payment. A portion of the upfront cash payment received by PAT was considered to be
  borrowing at a rate of 4%. As of June 30, 2010, the borrowing had an outstanding balance
  of $9,138,841. No payments will be made on the borrowing until the swaption is exercised
  by the counterparty. If exercised, principal and interest payments will begin in March 2012
  and continue until the borrowing’s final maturity in 2029. Interest is currently being accreted
  to the principal amount annually. Accreted interest on the borrowing was $2,005,841 at
  June 30, 2010.




                                                       163
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


The annual debt service requirements related to the swaption are as follows:

            Year Ending June 30       Principal         Interest      Total

                  2011            $       -                -             -
                  2012                  877,137          365,554     1,242,691
                  2013                  889,123          330,468     1,219,591
                  2014                  851,589          294,903     1,146,492
                  2015                  812,553          260,840     1,073,393
                2016-2020             3,370,336          850,134     4,220,470
                2021-2025             1,900,062          292,922     2,192,984
                2026-2029               438,041           30,953       468,994

                   Total          $   9,138,841         2,425,774   11,564,615


Subsequent to PAT’s year-end the swaption was terminated and this borrowing was repaid.

On June 11, 1997, PAT entered into a sale-leaseback transaction related to some of its existing
 light rail vehicles (US Lease). The terms of the lease arrangement are 14 years and provide
 an option for PAT to repurchase the light rail vehicles at the end of the lease term in 2011.
 A deferred gain of $3,737,955 is being amortized over the life of the lease arrangement.
 Restricted assets for the capital lease obligations include investments purchased by PAT to
 meet future cash flow needs of the lease.

As part of the lease arrangement, PAT entered into a payment undertaking arrangement with
  a subsidiary of AIG Insurance Company, the purpose of which was to deposit funds to meet
  future cash flow needs of the lease. Thus, PAT has a receivable in the amount of
  $50,766,912, which is guaranteed by AIG. Additionally, PAT has treasury securities in the
  amount of $43,750,799 at June 30, 2010 that are restricted for lease payments. Interest
  only payments began in fiscal year 2002 and interest and principal payments began in fiscal
  year 2005.

The US Lease documents require PAT to replace AIG as the payment undertaker in the event
  that (a) the long-term unsecured debt obligations of AIG are not rated A- by Standard &
  Poor’s or A3 by Moody’s and (b) PAT is directed to do so by an equity investor (First
  Hawaiian Corporation and EntreCap Financial). This replacement is required to occur within
  60 days of receipt of the direction and would be at the sole cost of PAT.

AIG’s ratings are currently A– and A3 (November 22, 2010) which means that any further
  downgrade would require PAT to replace AIG if requested by an equity investor.

In addition, PAT also has another agreement related to the US Lease with Ambac Indemnity
  Corporation (Ambac). The documents require that PAT replace Ambac in the event that (a)
  the long-term unsecured debt obligations of Ambac are not rated AA– by Standard & Poor’s
  and Aa3 by Moody’s and (b) PAT is directed to do so by an equity investor. This




                                                  164
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  replacement is required to occur within 60 days of receipt of the direction and would be at
  the sole cost of PAT.

Ambac’s ratings are currently R and Caa2 (as of November 22, 2010). During the fourth
 quarter of 2008, PAT was notified by both equity investors that given the decline in the
 credit rating of the equity strip provider (Ambac), and pursuant to the terms of the
 documents, PAT was required to replace the Equity Strip Agreement and provider in
 accordance with the documents. As the market value of the underlying investments
 exceeded the termination value of the lease, PAT requested that the equity investors
 forebear the requested replacement of the equity strip provider since PAT has continued to
 make payments under the lease and the equity investors do not have any current risk
 exposure. The equity investors have not further pursued their requests. As of November
 22, 2010, the equity value of the underlying investments remains sufficient to pay the
 current termination value of the lease.

The following is the present value of the net minimum lease payments (MLP) due under the
  capital leases:

                                        Year Ending           US Lease
                                         June 30              Principal
                                            2011          $   79,594,515
                                            2012              16,984,057
                                         Subtotal              96,578,572
                                       Less: Interest         (2,060,861)
                     Net obligation under capital lease   $   94,517,711




                                                   165
                                          COUNTY OF ALLEGHENY
                                      Notes to the Financial Statements
                                       December 31 and June 30, 2010



Community College of Allegheny County
Long-term obligations of CCAC consist of the following at June 30, 2010:

                                                                   Final           Long-Term
             Interest Rate                                     Maturity Date        Obligation

       Bonds payable - SPSBA:

       2.0   -   3.5%   2003                        Jan 15         2012        $    4,635,000
       2.0   -   4.8%   2004                        July 15        2013             8,570,000
       2.0   -   4.8%   2nd Series 2004             July 15        2025            17,110,000
       3.3   -   4.4%   2005                        July 15        2025             4,780,000
       3.3   -   4.4%   2008                       June 15         2027            16,175,000
                        Total bonds payable                                        51,270,000
       Loans payable:

       4.42%, $25,310 paid monthly                                 2011        $      296,567
       2.25%, $22,025 paid monthly                                 2013               758,531
                        Total bonds payable                                         1,055,098
       Capitalized equipment leases:

       4.42%, $35,721 paid monthly                                 2010               211,588
       4.55%, $20,332 paid monthly                                 2012               465,558
                        Total capitalized leases                                      677,146

                                                                                   53,002,244
       Less: current portion                                                        8,405,443
       Total long-term debt                                                    $   44,596,801



Series of 2003 State Public School Building Authority (SPSBA) Refinancing Debt Service Bonds
  – These bonds were issued to refund the 1993 ACHEBA Bonds. The issuance totaled
  $12,380,000 and included retirement of $12,025,000 in 1993 ACHEBA Bonds and $355,000
  in issuance costs. The interest rates for the 2003 refinancing bonds ranged from 2% to
  3.5%. The final payment for the bonds is 2012. Principal payments on the bonds are due
  annually in July, while interest is due semi–annually on January and July 15th.

Series of 2004 SPSBA Refinancing Debt Service Bonds – These bonds were issued in June of
  2004 to refinance the 1994 ACHEBA Bonds. The issuance totaled $23,755,000 and included
  the retirement of $23,855,000 in 1994 ACHEBA Bonds, a net original issue premium of
  $1,352,609 and closing costs totaling $223,025. The interest rates for the 2004 refinancing
  bonds ranged from 2% to 4.8% as compared to the 4.6% to 5.2% remaining under the
  1994A&B Series. The final payments for the bonds are scheduled for July 15, 2013 (1994A
  refinancing) and 2010 (1994B refinancing). Principal payments on the bonds are due




                                                         166
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  annually in July, while interest is due semi-annually on January and July 15th.

Second Series of 2004 SPSBA -- In July 2004 CCAC, through the SPSBA, accomplished a new
  $20,000,000 bond issue (Second Series of 2004) for the funding of deferred maintenance
  and critical infrastructure projects required to upgrade CCAC’s physical plant. The final
  payments for the bonds are scheduled for July 15, 2025. Principal payments on the bonds
  are due annually in July, while interest is due semi-annually on January and July 15th. Total
  annual debt service is approximately $1.5 million each year through 2025-2026.

Series of 2005 SPSBA Bonds -- In July 2005 CCAC, through the SPSBA, accomplished a new
  $5,600,000 bond issue (Series of 2005) for the funding to purchase the Siemen’s Building in
  Oakdale, PA (West Hills Center). The final payments for the bonds are scheduled for July
  15, 2025. Principal payments on the bonds are due annually in July, while interest is due
  semi-annually on January and July 15th. Total annual debt service is approximately
  $410,798 each year through 2025-2026.

Series of 2008 SPSBA Bonds -- In June 2008 CCAC, through the SPSBA, accomplished a new
  $22,040,000 bond issue (Series of 2008). Bond proceeds pertaining to the construction of a
  Science Center Facility on Allegheny Campus totaled $15,950,000 and the remaining
  $6,090,000 was for funding renovation projects to upgrade infrastructure at all four
  campuses. The final payments for the bonds are scheduled for June 15, 2027. Principal
  payments on the bonds are due annually in June, while interest is due semi-annually on
  June and December 15th. Total annual debt service is approximately $2,431,372 each year
  through 2011-2012. Total annual debt service from 2013-2027 is $1,134,437.

Loans Payable -- In 2009, CCAC entered into a loan for technology microcomputer systems,
  laptops and workstations in the amount of $1,030,150. The loan is at a 2.25% interest rate,
  and is payable in monthly installments of $22,025 over a four-year period through June
  2013. The balance as of June 30, 2010 is $758,531.

In 2007, CCAC entered into a five-year loan for technology infrastructure upgrades including
  an enterprise document management system, server replacements, a student tracking
  system, an automated timekeeping system, etc., in the original amount of $1,419,000. The
  loan is at a 4.42% interest rate, and is payable in monthly installments of $25,310 through
  May 2011. The balance due as of June 30, 2010 is $296,567.

Capital Leases -- In 2008, CCAC entered into a four-year capitalized lease obligation for 1,217
  desktop and laptop computers in the original amount of $911,000. The lease obligation is at
  a 4.55% interest rate, and is payable in monthly installments of $20,332 through June 2012.
  The balance due as of June 30, 2010, is $465,558.

In 2007, CCAC entered into a three-year capitalized lease obligation for 1,708 desktop and
  laptop computers in the original amount of $1,594,103. The lease was amended by
  $21,273, which reduced the amount to $1,572,830. The lease obligation is at a 4.42%




                                              167
                                              COUNTY OF ALLEGHENY
                                          Notes to the Financial Statements
                                           December 31 and June 30, 2010


   interest rate, and is payable in monthly installments of $35,721 through December 2010.
   The balance due as of June 30, 2010, is $211,588.

The loans payable and the capitalized equipment leases are collateralized by the equipment.

Operating Leases - CCAC leases various other facilities throughout the County that are
 separate from the main campuses and involve commitments that extend into future years.
 The facilities are used for educational purposes only. The following schedule of future
 minimum payments lists these obligations as ―operating leases.‖

Future minimum payments required under long-term debt and lease obligations existing at
  June 30, 2010, are as follows:
        Year Ending                                                            Capitalized         Operating
         June 30                  SPSBA Bonds            Loans                  Leases              Leases              Total

           2011               $     9,336,075             568,018                 458,304             622,896         10,985,293
           2012                     7,883,723             264,304                 243,979             269,023          8,661,029
           2013                     6,582,955             256,298                    -                160,196          6,999,449
           2014                     4,964,665                -                       -                 78,812          5,043,477
           2015                     3,038,061                -                       -                 53,376          3,091,437
         2016-2020                 15,168,497                -                       -                   -            15,168,497
         2021-2025                 15,160,828                -                       -                   -            15,160,828
         2026-2027                  4,171,390                -                       -                   -             4,171,390

            Total                  66,306,194            1,088,620                702,283           1,184,303         69,281,400
     Less: Portion
      representing
      interest                     15,036,194              33,522                   25,137               -            15,094,853
                              $    51,270,000            1,055,098                677,146           1,184,303         54,186,547



Long-term liability changes are summarized below for the year ended June 30, 2010:

                                           Beginning                                                    Ending
                                           Balance at                                                  Balance at         Current
                                          July 1, 2009           Additions           Reductions      June 30, 2010        Portion

Long-term obligations                 $    61,309,386                   -              8,307,142       53,002,244         8,405,443
Advances from Federal sponsors                  42,793                   184                 -               42,977
Accrued compensated absences                2,908,967               167,710                  -          3,076,677         3,076,677

Total long-term liabilities           $    64,261,146               167,894            8,307,142       56,121,898




                                                                  168
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                 December 31 and June 30, 2010


The composition of the compensated absences liability was as follows as of June 30, 2010:

                                Accrued vacation leave               $    1,750,915
                                Banked credits                            1,325,762

                                                                     $    3,076,677

Redevelopment Authority of Allegheny County

The annual debt service requirements related to bonds and mortgage are as follows:

                     Maturity              Principal          Interest            Total

                      2011            $    3,513,114          2,179,786           5,692,900
                      2012                 3,725,679          1,973,532           5,699,211
                      2013                 3,948,416          1,753,532           5,701,948
                      2014                 4,188,424          1,514,025           5,702,449
                      2015                 4,449,815          1,258,996           5,708,811
                    2016-2020             10,995,269          2,764,638          13,759,907
                    2021-2025              5,133,521           544,571            5,678,092

                      Total           $ 35,954,238           11,989,080          47,943,318



Long-term debt was comprised of bonds payable which were issued by RAAC as Special Tax
  Development Bonds, Taxable Series of 1995 for $25 million and Series 1999 for $25 million.

The Special Tax Development Bonds constitute limited obligations of RAAC payable solely from
  a portion of the Allegheny Regional Asset District tax (the RAD tax) paid to RAAC or its
  trustee and certain funds held under a trust indenture and the earnings thereon. The RAD
  tax consists of a portion of the County's allocation of the 1% sales, use and hotel excise tax.
  The County has pledged the assigned receipts to RAAC, which has in turn pledged and
  assigned the same to the trustee to pay principal of and interest on the Special Tax
  Development Bonds. The assigned receipts and the bond insurance are the sole security for
  repayment of the Special Tax Development Bonds.

On September 1, 2005, RAAC issued $18,655,000 of Special Tax Development Refunding
 Bonds (2005 Bonds). The proceeds of the 2005 Bonds were used to provide funds for the
 current refunding of the 1995 Bond Series. In connection with the debt refunding, RAAC
 recorded a deferred refunding adjustment of $1,504,435, which is being amortized as an
 adjustment to interest expense over the life of the bonds using the straight-line method.

The 2005 bonds were issued at a premium of $263,213, which is being amortized as an
  adjustment to interest expense over the life of the bonds using the straight-line method.




                                                       169
                                          COUNTY OF ALLEGHENY
                                      Notes to the Financial Statements
                                       December 31 and June 30, 2010


    The 2005 bonds are not subject to optional redemption.

The 1999 Bonds maturing on or after September 1, 2010 are subject to redemption prior to
  maturity at the option of RAAC on or after September 1, 2009, in whole or in part at any
  time and in such order of maturity as shall be selected by RAAC at redemption price,
  expressed as a percentage of par, of 102% if redeemed September 1, 2009 to August 31,
  2010, 101% if redeemed September 1, 2010 to August 31, 2011 and 100% if redeemed
  September 1, 2011 or thereafter, plus accrued interest to the date fixed for redemption.

During 2007, RAAC assumed a mortgage in relation to the purchase of a building. The original
  mortgage was executed in 1999 in the amount of $5,000,000. As of December 31, 2010,
  the interest rate is 8.31% and the outstanding principal balance is $3,899,238.

The following is a summary of changes in long-term debt for RAAC during 2010:
                                     Beginning                                               Ending
                                     Balance at                                             Balance at       Current
                                  January 1, 2010         Additions        Reductions   December 31, 2010    Portion

G. O. Bonds                   $      29,035,000                    -        2,980,000         26,055,000     3,155,000
Mortgage Payable                      4,044,887                    -          145,649          3,899,238      157,114
Section 108 Loan                      6,000,000                    -             -             6,000,000      201,000

Total long-term liabilities   $      39,079,887                    -        3,125,649         35,954,238     3,513,114


                                  Unamortized original isssuance premium                         134,732
                                  Unamortized loss on refunding                                 (795,396)
                                  Current portion                                              (3,513,114)
                                  Long-term debt at year-end                                  31,780,460



As of December 31, 2010, RAAC had outstanding commitments of $6,885,057 related to loans
  which have not yet been fully drawn upon. This amount includes commitments to related
  parties as further discussed in Note 13.

During 2000, 2001, 2003, 2004, 2005, 2007 and 2008 RAAC issued Tax Increment Financing
  Bonds (TIF Bonds) to provide funds to finance infrastructure improvements within Allegheny
  County. The outstanding balance of the TIF Bonds at December 31, 2010 was
  approximately $110 million. The TIF Bonds are a limited obligation of RAAC payable solely
  from the tax increment revenues from the taxing bodies within the TIF District. RAAC is not
  obligated to pay the principal of, premium, interest, or other costs associated with the TIF
  Bonds. Accordingly, RAAC is substantively a conduit facilitator and the TIF Bonds are not
  included in RAAC's financial statements.
RAAC and the County entered into an agreement in fiscal year 2005 with the US Department
  of Housing and Urban Development (HUD) to receive a Section 108 loan for $6 million.
  These funds were to be made available for loans to RIDC for specific economic development
  projects. As of December 31, 2010, $6,000,000 of loans had been made from these
  proceeds.




                                                                  170
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


RAAC currently makes quarterly interest payments to HUD as the loan earns interest at three
  month LIBOR plus 20 basis points. As of year end, 3 month LIBOR was .30031%. Interest
  payments made by RAAC during 2010 were approximately $100,000. RAAC will be required
  to start making annual principal payment to HUD beginning August 1, 2011. The required
  principal payments schedule was established by HUD and includes a final balloon payment
  of $2,314,000 due August 1, 2025.

RIDC is currently required to make interest payments on the outstanding loan balance at a
  rate of 3 month LIBOR plus 50 basis points. RAAC is permitted to retain the 30 basis points
  as income along with the $60,000 origination fee paid by the borrower. RIDC will begin
  making principal payments in 2011 to correspond with RAAC’s obligation to HUD.

Along with the Section 108 loan, RAAC also received a $2 million Brownfield Economic
  Development Improvement (BEDI) Grant from HUD. The proceeds of the grant are to be
  drawn down by RAAC and granted to the same RIDC as with the Section 108 loan funds.
  $500,000 of the grant funds must be retained by RAAC in a debt service reserve account.
  Grant funds are to be disbursed in a ratio not less than $1 of grant funds for every $3 of
  loan funds disbursed. As of December 31, 2010 RAAC had not received any of these grant
  funds from HUD, nor had RAAC made any grant disbursements. RAAC was granted an
  extension to draw these grant funds, and made the first draw down during March, 2011.

Allegheny County Industrial Development Authority

ACIDA issues tax-exempt and taxable limited-obligation debt through various lending and
  financial institutions to provide below-market interest rate financing to private-sector entities
  for eligible projects. The debt is secured by the property financed and is payable solely from
  the payments received on the underlying loans. Neither ACIDA, the Commonwealth of
  Pennsylvania, nor any political subdivision thereof, is obligated in any manner for the
  repayment of the debt. Accordingly, the debt is not reported as a liability in the
  accompanying financial statements.

The principal amount outstanding for the debt issued as of December 31, 2010, is
  approximately $714.0 million.

Allegheny HealthChoices, Inc.

AHCI has entered into an operating lease for program facility space and office equipment.
  Rental expenses for this operating lease were approximately $177,000 for the year ended
  December 31, 2010.




                                               171
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                               December 31 and June 30, 2010


The following minimum rental payments are required under the lease for annual periods
  beyond December 31, 2010:

                          Year Ending
                          December 31          Total

                               2011         $ 160,164
                               2012           159,021
                               2013           158,640
                               2014            39,660
                                            $ 517,485


Soldiers’ and Sailors’ Memorial Hall and Museum Trust, Inc.

Memorial Hall established two $100,000 lines of credit, renewed annually, for short-term
 operating cash flow purposes. The rate of interest for each is 3.25% at December 31, 2010.
 The balances outstanding under the lines of credit at December 31, 2010 were $17,135 and
 $0 for operating purposes.

(9) Interfund Receivables, Payables and Transfers

Interfund receivables, payables and transfers at December 31, 2010 were comprised of the
  following amounts on an individual fund basis:
                               Due from        Due to                    Transfers
              Fund            Other Funds    Other Funds        In                   Out
       Major:
       General            $   48,351,510     37,950,340     43,064,149         (12,011,439)
       County Grants           7,135,480      2,192,338      8,788,516          (2,854,548)
       Human Service Grants    1,191,966      2,183,369      5,652,213            (229,557)
       Capital Projects       28,908,133     42,843,562           -            (43,959,258)
       Non-Major:
       Debt Service           41,710,163     42,306,296     47,567,851         (41,918,075)
       Transportation              -              -               -             (4,099,852)
       Other:
       Internal Service          578,183        399,530              -                     -

                          $ 127,875,435     127,875,435    105,072,729        (105,072,729)


Transfers and interfund receivables are eliminated in the government-wide statement of
  activities.




                                                172
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


Usually the majority of interfund receivable and payable balances represent adjustments to
  reimburse the General Fund for cash disbursements made on behalf of the other funds.

In 2010, the majority of the due to due from and transfers in and out balances resulted from
  year-end entries transferring $41.5 million in PennDot reimbursement funds from the Capital
  Projects Fund to the Debt Service Fund. The large resulting fund balance in the Debt
  Service Fund is considered over-allocated tax revenue, which was then transferred to the
  General Fund.

The amount due to the Capital Projects Fund from the General Fund was mainly for temporary
  funding needed as a result of delays in state funding.

The General Fund Transfer Out represents a transfer to cover deficits and County matches in
  the Grant Funds.

The County Grants Fund Transfer Out represents interfund interdepartmental contract
  payments to the General Fund.

The Transportation Fund Transfer Out represents a transfer to the Debt Service Fund to pay
  costs associated with bonds issued for PAT projects.

Component Unit – Transactions

Due from/to component units and due to/from primary government balances were:
                                       Due from              Due to
                                     Component Unit   Primary Government
                ACAA            $        1,492,082            1,492,082
                RAAC                     6,000,000            6,000,000
                ACIDA                          -                    -
                AHCI                     3,222,018            3,222,018

                                        Due to             Due from
                                     Component Unit   Primary Government
                CCAC             $       3,960,000             750,000
                PAT                      3,489,954                 -
                RAAC                       242,324             242,324
                AHCI                        36,280              36,280
                Parks Foundation           443,200             443,200



The difference in the County’s payable to CCAC and CCAC’s receivable and the difference
  between the County’s payable to PAT and PAT’s receivable is the result of differing fiscal
  years for CCAC and PAT (both June 30, 2010) and the County (December 31, 2010).




                                                173
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                                December 31 and June 30, 2010



(10) Retirement Benefits

A. Plan Description

The County sponsors the Allegheny County Retirement System (Retirement System), a
 single-employer, defined benefit, contributory retirement plan covering substantially all
 employees. Employees contribute to the Retirement System through payroll withholdings
 based on a contracted rate.

At January 1, 2010, the Retirement System membership consisted of:

                       Retirees and beneficiaries
                          receiving benefits                        4,428
                       Terminated employees entitled to benefits
                          but not yet receiving them                 174

                                                                    4,602
                       Current employees:
                          Vested:
                             Non-uniform                            3,745
                             Police and Fire                          155
                             Others                                   489
                          Nonvested:
                             Non-uniform                            2,786
                             Police and Fire                           92
                             Others                                   212

                                                                    7,479

                       Total                                       12,081




Benefit and contribution provisions for the Retirement System are determined under statutes
  enacted by the General Assembly of the Commonwealth of Pennsylvania. The Retirement
  Board, pursuant to express statutory authority, has the right to increase the employee
  contributions in the event it is actuarially determined that a contribution increase is required
  in order for the Board to meet its funding requirements. Any increase in employee
  contributions imposes a statutory requirement upon the County to match the employee
  contributions. Also, the obligation of the fund to pay retirement benefits is further secured
  by statutory obligation imposed upon the County to utilize its taxing authority to meet the
  Retirement Board's obligation to make monthly benefit payments to retirees.

Monthly benefit payments are determined for each individual according to the retirement
 option selected and the age and length of service at retirement. Under normal retirement
 (attainment of age 50 with 20 years of service for police and firefighters, age 55 with 20
 years of service for jail guards, deputy sheriffs and probation officers and age 60 with 20



                                                174
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                               December 31 and June 30, 2010


  years of service for non-uniformed employees), the retirement benefit is equal to 50% of
  final average salary plus 1% of final average salary for each full year of service between 20
  and 40 years. Final average salary is the monthly average of the 24 highest months of
  compensation in the last 48 months of employment preceding retirement.

The Retirement System issues a publicly available financial report that includes financial
  statements and required supplementary information for the plan. A copy of the report may
  be obtained by writing to:
                           Allegheny County Retirement Board
                           106 County Office Building
                           542 Forbes Avenue
                           Pittsburgh, PA 15219

B. Funding Policy, Annual Pension Cost and Net Pension Obligation, Annual
   Required Contribution and Schedule of Funding

Effective January 1, 2003 and continuing through December 31, 2010, employees were
  required to contribute 6.0% percent of covered compensation. For the period January 1,
  2002 through December 31, 2002, employees were required to contribute 5.0% percent of
  covered compensation. For the period January 1, 2000 through December 31, 2001,
  employees were required to contribute 3.8% percent of covered compensation. For the
  period February 1, 1998 through December 31, 1999, employees were required to
  contribute 6.0% of covered compensation. Prior to February 1, 1998, employees were
  required to contribute 7.5%. Employee contributions are matched equally by the County, as
  prescribed by the Second Class County Code, and deposited in the Pension Trust Fund.
  Employees with at least 24 months of service who terminate prior to satisfying the minimum
  service requirements for a retirement benefit are entitled to refunds of their contributions
  plus interest thereon. Interest earned for 2010 was at 2.4% per annum on contributions.
  Employees with less than 24 months of service who terminate prior to satisfying the
  minimum service requirements for a retirement benefit are entitled to refunds of their
  contributions only.

The County’s annual pension cost and net pension obligation for the current year is as follows:

             Annual required contribution                          $   63,394,000
             Interest (8%) on net pension obligation                    5,723,037
             Adjustment to annual required contribution                (8,357,238)
             Annual pension cost                                       60,759,799
             Contributions made                                        20,115,911
             Increase in net pension obligation                        40,643,888
             Net pension obligation beginning of year                  71,537,960
             Net pension obligation end of year                    $ 112,181,848




                                                  175
                                        COUNTY OF ALLEGHENY
                                    Notes to the Financial Statements
                                     December 31 and June 30, 2010


The net pension obligation is included as a liability on the Statement of Net Assets.

The annual required contribution for the current year was determined as part of an actuarial
  valuation as of January 1, 2010, using the entry-age normal actuarial cost method.
  Significant actuarial assumptions and amortization methods used include: (1) a level dollar
  amortization method with an open, fifteen-year amortization period; (2) a rate of return on
  the investment of present and future assets of 8.0% per year compounded annually; (3)
  projected salary increases ranging from 3.5% per year to 6.0% per year according to age,
  compounded annually, attributable to inflation and seniority/merit; (4) non-investment
  expenses are assumed to be the same as in the prior year, and; (5) the actuarial value of
  assets is the fair market value of plan assets.

The annual pension cost for the Retirement System is as follows:

                  Fiscal Year           Annual Pension        Percentage of APC         Net Pension
                   Ended                 Costs (APC)             Contributed          Obligation (Asset)

           December 31, 2010        $     60,759,799                       33.1%          112,181,848
           December 31, 2009              62,952,238                       30.6            71,537,960
           December 31, 2008              28,662,118                       64.8            27,842,515


The schedule of funding progress (in thousands) for the Retirement System is as follows:
                                                                                                               (7)
                                                                                                         Overfunded/
                                                                                                          (Unfunded)
                                            (3)              (4)                                      Actuarial Accrued
                           (2)           Actuarial      Overfunded/            (5)                       Liability as a
      (1)               Actuarial        Accrued         (Unfunded)          Funded      (6)            Percentage of
   Actuarial            Value of         Liability-       Actuarial           Ratio   Covered          Covered Payroll
Valuation Date           Assets         Entry Age      Accrued Liability      (2/3)    Payroll               [4/6]


January 1, 2010    $    652,643         1,119,326         (466,683)           58.3%   340,879              (136.9%)
January 1, 2009         582,099         1,067,015         (484,916)           54.6    326,803              (148.4)
January 1, 2008         798,203          979,599          (181,396)           81.5    317,380               (57.2)



As noted above, certain pension information and calculations are based upon an actuarial
  valuation performed as of January 1, 2010. The next actuarial valuation will be performed
  as of January 1, 2011 and will take into account subsequent increases in the market value of
  investments being held in the plan and the January 1, 2011 1.0% employee/employer
  increase in the contribution rate. While the exact impact is not known, it is expected that
  the market increases will positively impact the funding status of the plan and decrease the
  future funding requirements of the plan.




                                                           176
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010



C. Voluntary Separation Program

The County offered to certain employees a Voluntary Separation Program in 2007 which
  provided two groups with four options. The first group had to meet the minimum
  retirement age of 55 and have 20 years of service or who are at least 60 years of age with
  at least eight years of service as of December 29, 2007. The first group could accept one of
  three options as follows: Option A - a one time cash payment of $12,000 payable January
  11, 2008. A total of 19 employees accepted that option. Option B - $400 per month for
  four years that may be used to offset the cost of healthcare coverage beginning January,
  2008. A total of 72 employees accepted that option. Option C - a one time cash payment of
  $5,000 payable January 11, 2008 and $200 per month for four years that may be used to
  offset the cost of healthcare coverage beginning January, 2008. A total of 7 employees
  accepted this offer. The second group must have at least eight years of service as of
  December 29, 2007, to be eligible for the following: Option D - a one time cash payment of
  $8,000 payable on January 11, 2008. A total of 20 employees accepted that offer. At
  December 31, 2010, 67 employees continue to collect the $400 healthcare allowance and 7
  employees continue to collect the $200 healthcare allowance. The future estimated liability
  of the healthcare allowance has been calculated using the discounted present value of
  expected future benefits payments method and a discount rate of 0.5%. The future
  estimated liability of the healthcare allowance is approximately $336,716 and has been
  included in the County's government-wide statements as other liabilities.

Component Units - Retirement Benefits

Allegheny County Airport Authority

Employees of ACAA are members of the County’s Retirement System, and as such, all required
 disclosures are the same.

Port Authority of Allegheny County

A. Plan Description

All full-time employees of PAT are eligible to participate in one of three retirement and
   disability allowance plans to which PAT contributes. The three plans are as follows: (1)
   plan for employees represented by Local 85 of the Amalgamated Transit Union (ATU Plan);
   (2) plan for employees represented by Local 29 of the International Brotherhood of Electrical
   Workers (IBEW Plan), and; (3) plan for employees who are not represented by a union (Non
   -Rep Plan).

Under each of the three plans, employees’ eligibility for normal benefits begins at age 65, at
  which time the individual is entitled to an annual retirement benefit, payable monthly for life,
  in an amount equal to 2.25% of the average annual compensation for the last 16 quarters




                                               177
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


  of employment times the years and months of continuous service, or the average of the
  highest four of the last eight years immediately preceding the date of retirement, whichever
  is highest.

Early retirement is available to all participants who have reached the age of 55 and have at
  least 10 years of service or who meet certain continuous service requirements. Early
  retirement with full benefits is available after 25 years of continuous service for all plans.
  Early retirement with full benefits also is available after age 55 to those participants meeting
  certain service requirements. Individuals not meeting these requirements who retire after
  age 55 but prior to the date of normal benefits receive reduced benefits. The cost sharing
  of healthcare benefits is being provided from PATs operating revenues for ATU and IBEW
  employees. Health care benefits for retirees in the NonRep Plan were eliminated for those
  retiring on or after July 1, 2007.

For new hires, the Plans were amended to replace the eligibility requirement for unreduced
  early retirement benefits from 25 years of service without regard to age, to 25 years of
  service and age 55. These amendments were effective as of December 1, 2005 for the ATU
  and NonRep Plans and May 1, 2006 for the IBEW Plan.

Benefit provision for the ATU and IBEW Plans are established and amended by the Retirement
  and Disability Allowance Committees for each plan, as stated in written agreements. All
  three plans issue separate audited financial statements that can be obtained from PAT’s
  Finance Department.

B. Funding Policy, Annual Pension Cost and Schedule of Funding

Participants in the Non-Rep and IBEW Plans contribute 4.5% and 4.0%, respectively, of
  pension earnings to their respective plan. Effective January 1, 2010, ATU employees
  contribute 5.5% to their respective plan. Prior to January 1, 2010, ATU employees
  contributed 4.5%. PAT’s contributions to the plans are based on actuarially determined
  rates.

The annual required contributions were computed as part of an actuarial valuation performed
  as of January 1, 2009, for all the Plans, using the entry-age normal actuarial cost method.
  Significant assumptions utilized in performing the valuations were: (1) a rate of return on
  the investment of present and future assets of 8.0% per year compounded annually; (2)
  mortality table-RP-2000, for healthy lives; for disabled lives, mortality is in accordance with
  the mortality table specified in the IRS Revenue Ruling 96-7 for disabilities occurring prior to
  1995; (3) retirement probabilities at each age applied, beginning with the earliest eligibility
  for retirement and ending at age 65; (4) projected wage increases of 2%-3% for ATU Plan,
  3.5% for IBEW and NonRep Plan; (5) actuarial cost method entry age normal; (6)
  amortization method level dollar monthly payments; (7) asset valuation method smoothed
  market; (8) closed remaining amortization periods of 21 years for the ATU Plan, 25 years
  for the IBEW Plan, and 22 years for the Non-Rep Plan, and the ATU Plan has 2005 Actuarial




                                               178
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                 December 31 and June 30, 2010


  loss of 12 years and the ATU Plan and the Non-Rep Plan has 2006 Actuarial loss of 13 years.
  Assumption change at 1/1/07 is 23 years for ATU Plan and Non-Rep Plan, the 2007 Actuarial
  gain is 14 years for ATU Plan and Non-Rep Plan. NonRep Plan has Assumption change and
  Plan change at 1/1/08 of 24 years, and 2008 Actuarial loss of 15 years. ATU Plan has 2009
  Actuarial loss of 15 years and Assumption change at 1/1/09 of 25 years.

The annual pension cost for the three plans are as follows:
                                                 ATU Plan
                                                                           Net Pension
                  Fiscal Year         Annual Pension      Percentage of      (Asset)
                    Ending              Cost (APC)       APC Contributed    Obligation

                June 30, 2010     $     23,470,193           121%            (8,893,896)
                June 30, 2009             9,734,310          146%            (3,991,305)
                June 30, 2008           12,859,942           116%              481,296

                                                 IBEW Plan
                                                                           Net Pension
                  Fiscal Year         Annual Pension      Percentage of      (Asset)
                    Ending              Cost (APC)       APC Contributed    Obligation
                June 30, 2010              683,933            79%             (296,098)
                June 30, 2009              255,013           515%             (517,433)
                June 30, 2008             1,098,927           60%              540,401


                                               Non-Rep Plan
                                                                           Net Pension
                  Fiscal Year         Annual Pension      Percentage of      (Asset)
                    Ending              Cost (APC)       APC Contributed    Obligation

                June 30, 2010             5,022,569          109%             (908,110)
                June 30, 2009             3,675,660          124%             (444,416)
                June 30, 2008             4,544,609           90%              431,923




                                                   179
                                          COUNTY OF ALLEGHENY
                                      Notes to the Financial Statements
                                       December 31 and June 30, 2010


Individual schedules of funding progress for the three plans are as follows:

                                                         ATU Plan
                                                   (Amounts in thousands)

                                         (3)           (4)                                           (7)
         (1)                (2)       Actuarial    Unfunded             (5)                       Unfunded
      Actuarial          Actuarial    Accrued      Actuarial          Funded      (6)     Actuarial Accrued Liability
      Valuation          Value of     Liability-    Accrued            Ratio   Covered     (4) as a Percentage of
        Date              Assets     Entry Age      Liability          (2/3)    Payroll     Covered Payroll [4/6]
   January   1,   2009 $ 624,449     774,856       150,407             80.6%   134,547              111.8%
   January   1,   2008   741,403     762,018       20,615              97.3    123,955               16.6
   January   1,   2007   706,909     754,026       47,117              93.8    129,386               36.4
   January   1,   2006   690,376     711,093       20,717              97.1    128,006               16.2
   January   1,   2005   703,755     706,123        2,368              99.7    128,433                1.8

                                                        IBEW Plan
                                                   (Amounts in thousands)

                                         (3)           (4)                                           (7)
         (1)                (2)       Actuarial    Unfunded             (5)                       Unfunded
      Actuarial          Actuarial    Accrued      Actuarial          Funded      (6)     Actuarial Accrued Liability
      Valuation          Value of     Liability-    Accrued            Ratio   Covered     (4) as a Percentage of
        Date              Assets     Entry Age      Liability          (2/3)    Payroll     Covered Payroll [4/6]
   January   1,   2009 $ 18,565       23,613         5,048             78.6%    2,897              174.2%
   January   1,   2008   22,448       22,844          396              98.3     3,083               12.8
   January   1,   2007   20,798       23,774         2,976             87.5     3,252               91.5
   January   1,   2006   20,293       21,012          719              96.6     3,233               22.2
   January   1,   2005   20,235       20,183          (52)            100.3     3,107               (1.7)

                                                       Non-Rep Plan
                                                   (Amounts in thousands)

                                         (3)           (4)                                           (7)
         (1)                (2)       Actuarial    Unfunded             (5)                       Unfunded
      Actuarial          Actuarial    Accrued      Actuarial          Funded      (6)     Actuarial Accrued Liability
      Valuation          Value of     Liability-    Accrued            Ratio   Covered     (4) as a Percentage of
        Date              Assets     Entry Age      Liability          (2/3)    Payroll     Covered Payroll [4/6]
   January   1,   2009 $ 57,197      100,652        43,455             56.8%   16,954              256.3%
   January   1,   2008   67,237      99,555         32,318             67.5    16,242              199.0
   January   1,   2007   68,630      107,269        38,639             64.0    17,481              221.0
   January   1,   2006   65,570      96,734         31,164             67.8    17,039              182.9
   January   1,   2005   65,904      94,345         28,441             69.9    16,687              170.4


The ATU, IBEW, and NonRep Plans had actuarial losses during 2008 (January 1, 2009 actuarial
  valuation) of $147 million, $5.2 million, and $11.7 million, respectively. The rate of return
  on the actuarial value of assets, which is the smoothed value used for funding was less than
  the 8.0% valuation interest assumption, resulting in actuarial losses. The next actuarial
  valuation will be performed as of January 1, 2010.




                                                                180
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


Annual pension cost and net pension assets for the three plans for the current year are as
  follows:
                                                                                 NonRep
                                                      ATU Plan      IBEW Plan     Plan
   Annual required contribution                   $ 23,775,612        678,544    5,013,989
   Interest on net pension obligation                 (319,304)       (41,395)     (35,553)
   Adjustment to annual required contribution           13,885         46,784       44,133
   Annual pension cost                                23,470,193      683,933    5,022,569
   Contributions made                                 28,372,784      462,598    5,486,264
   Increase (decrease) in net pension obligation      (4,902,591)     221,335     (463,695)
   Net pension obligation (asset) beginning of year   (3,991,305)    (517,433)    (444,415)
   Net pension obligation (asset) end of year     $ (8,893,896)      (296,098)    (908,110)

Community College of Allegheny County

Substantially all full-time employees of CCAC are covered under either the Pennsylvania Public
  School Employees Retirement System (PSERS), the Pennsylvania State Employees
  Retirement System (SERS), the Teachers Insurance and Annuity Association - College
  Retirement and Equity Fund (TIAA-CREF) or the Fidelity Retirement Plan. About 96.5% of
  eligible employees participate in TIAA-CREF, Fidelity or Lincoln Financial plans, which are
  cost-sharing, multiple-employer defined contribution plans plus investment earnings.
  Employer and employee contribution rates are established by collective bargaining
  agreements with the American Federation of Teachers and the Service Employees
  International Union (SEIU). The agreements require contributions by active members and
  CCAC. Active members contribute at a rate of 5% of qualifying compensation and CCAC
  contributes at a rate of 5% of the first $6,000 and 10% of the remaining qualifying
  compensation. The contributions to TIAA-CREF Fidelity and Lincoln Financial plans for the
  year ended June 30, 2010, were $4,239,372 from CCAC and $2,077,926 from employees.

PSERS is a governmental, cost-sharing, multiple-employer defined benefit public employee
  retirement system in which about 2.5% of eligible employees participate. It provides
  retirement and disability benefits, legislatively mandated ad-hoc cost-of-living adjustments,
  and healthcare insurance premium assistance to qualifying annuitants. PSERS issues a
  comprehensive annual financial report that includes financial statements and required
  supplementary information for the plan. A copy of the report may be obtained by writing to:

                           Public School Employees’ Retirement System
                           P. O. Box 125
                           Harrisburg, PA 17108 - 0125




                                                181
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


Article II of the Commonwealth of Pennsylvania’s Constitution assigns the authority to
  establish and amend the benefit provisions of the plan to the General Assembly. The
  contribution policy for PSERS is established in the Public School Employees’ Retirement Code
  and requires contributions by active members, CCAC, and the Commonwealth of
  Pennsylvania. The contribution rate for CCAC and the Commonwealth is an actuarially
  determined rate. The current rate at June 30, 2010, is 2.38% of annual covered payroll for
  each.

CCAC and the Commonwealth’s contributions to PSERS for the year ending June 30, 2010, was
  $91,857 and equaled the required contractual contribution. At the time of transition to
  GASB Statement No. 27, "Accounting for Pensions by State and Local Government
  Employers," there was no pension liability or asset.

SERS is a governmental, cost-sharing, multi-employer defined benefit public employee
  retirement plan. It provides retirement, death and disability benefits, and legislatively
  mandated ad-hoc cost-of-living adjustments. Article II of the Commonwealth of
  Pennsylvania’s Constitution assigns the authority to establish and amend the benefit
  provisions of the plan to the General Assembly. SERS issues a publicly available annual
  financial report that includes financial statements and required supplementary information
  for the plan. A copy of the report may be obtained by writing to:

                          Commonwealth of Pennsylvania
                          State Employees’ Retirement System
                          P. O. Box 1147
                          Harrisburg, PA 17108 - 1147

The contribution policy for SERS, as established by SERS’ Board, requires contributions by
  active members, CCAC and the Commonwealth. Active members contribute at a rate of
  6.25% of their qualifying compensation. The contribution rate for both CCAC and the
  Commonwealth, which at June 30, 2010, was 3.15% of annual covered payroll, is an
  actuarially determined rate. CCAC contributions to SERS for the years ending June 30,
  2010, was $26,889, equal to the required contractual contribution. At the time of transition
  to GASB Statement No. 27, "Accounting for Pensions by State and Local Government
  Employers," there was no pension liability or asset.

CCAC, as part of its collective bargaining agreement with the American Federation of Teachers,
 has an Early Retirement Incentive Program (ERIP) for eligible participants. At various times,
 CCAC has also offered different versions of early retirement incentive plans to both
 administrative and clerical employees.

An ERIP was offered in the Spring of 2004 for eligible AFT and Administrative employees.
  Four employees elected to participate in the plan, but deferred their retirement to a later
  date. Subsequently, these four individuals retired and received their lump sum payments
  prior to June 30, 2005, and their first $6,500 payment was scheduled for September 1, 2005




                                             182
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  and each September 1 thereafter, through September 1, 2009. The final $6,500 payment
  for these four individuals was accrued as a liability at their net present value, including
  associated FICA taxes, as of June 30, 2009.

(11) Postemployment Benefits Other Than Pension Benefits
A. Plan Description

In addition to the pension benefits, previously described, the County provides post-retirement
  life insurance benefits to all retirees, and healthcare coverage and major medical insurance
  to certain retirees through a single employer defined benefit plan. The benefit, limits and
  employee and employer contributions are established through union contracts and past
  practices. The plan is not accounted for as a trust fund, an irrevocable trust has not been
  established, the plan does not issue a separate report and activity of the plan is reported in
  the County’s General and Internal Service Funds.

B. Benefits Provided

Life Insurance Benefits

The County provides postemployment life insurance benefits in accordance with the
  requirements set forth by the Retirement Board of Allegheny County to all employees who
  retire from the County. Retired members of bargaining units are eligible for a $4,000 life
  insurance benefit and retired management and confidential employees are eligible for
  $10,000 life insurance benefit. The County's share of the life insurance premiums is
  determined by the retiree’s former bargaining unit. Currently, 3,696 retirees meet those
  eligibility requirements. The County's General Fund expenditures for all postemployment life
  insurance benefits were $626,127 ($679,214 net of retiree contributions of $53,087) in
  2010.

HealthCare Coverage
The County provides postemployment healthcare coverage benefits to certain retirees in
 accordance with agreements between the County and the respective unions. At December
 31, 2010, 80 retired police officers are covered by health insurance. The County’s
 expenditures for health insurance benefits were $674,784 ($834,227 net of retiree
 contributions of $159,443) in 2010. The costs associated with this benefit are paid by the
 County’s General Fund and are not prefunded.

At December 31, 2010, 43 correctional officers who retired are eligible to receive up to $300
  per month towards the cost of health insurance for the correctional officer and spouse for up
  to 5 years. The County’s expenses for health insurance benefits were $119,725 in 2010.
  The costs associated with this benefit are paid by the County’s General Fund and are not
  prefunded.




                                              183
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                               December 31 and June 30, 2010


At December 31, 2010, 13 sheriffs who retired are eligible to receive up to $300 per month
  towards the cost of health insurance for the correctional officer and spouse for up to 5 years.
  The County’s expenses for health insurance benefits were $36,429 in 2010. The costs
  associated with this benefit are paid by the County’s General Fund and are not prefunded.

Major Medical Insurance

The County provides postemployment major medical insurance benefits to certain retirees who
  retired prior to January 1, 1994. The coverage entitles retirees to benefits for medical
  services rendered that are in excess of their individual plans. Currently, 156 retirees are
  enrolled in the major medical insurance program. The County's expenses for major medical
  insurance benefits were $253,298 ($420,539, net of retiree contributions of $167,241) in
  2010.

C. Funding Policy

These Other Post Employment Benefits (OPEB) are expensed when incurred and are financed
  on pay-as-you-go basis. For 2010, the County incurred $1,710,363 for post employment
  benefits other than pension benefits. Retiree’s receiving benefits contributed $379,771
  through their deductions.

Eligible police retirees contribute 20% of the medical monthly premium rate.

The closed group of retired and disabled employees participating in the retiree major medical
  insurance contribute $78.10 monthly for individual coverage and $139.87 monthly for family
  coverage. These required monthly contributions will not increase in the future. Surviving
  spouse may continue coverage by making required contribution.

The County’s annual OPEB cost is calculated based on the annual required contribution of the
  employer (ARC), an amount actuarially determined in accordance with the parameters of
  GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing
  basis, is projected to cover normal cost each year and to amortize any unfunded actuarial
  liabilities (of funding excess) over a closed period not to exceed 30 years. The following
  table shows the component of the County’s annual OPEB cost, the amount actually
  contributed, and changes in the County’s net OPEB obligation:

                  Annual required contribution                 $    7,770,311
                  Interest on net OPEB obligation                    515,683
                  Adjustment to annual required contribution         (717,024)
                  Annual OPEB cost                                  7,568,970
                  Contributions made                               (1,710,363)
                  Increase in net OPEB obligation                   5,858,607
                  Net OPEB obligation – beginning of year          12,892,087
                  Net OPEB obligation – end of year            $   18,750,694




                                                    184
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                      December 31 and June 30, 2010


The County’s annual OPEB cost, the percentage of annual OPEB cost contributed and the net
  OPEB obligation were as follows:
                                                                      Percentage of          Net OPEB
                                               Annual OPEB                AOC                Obligation
                Fiscal Year Ending              Cost (AOC)             Contributed            (Asset)
               December    31,   2010    $      7,568,970                22.6%          $   18,750,694
               December    31,   2009           7,661,821                22.4               12,892,087
               December    31,   2008           6,313,930                26.9               6,946,765
               December    31,   2007           6,370,065                26.3               4,694,436
An actuarial valuation was performed as of January 1, 2009 thus the Net OPEB obligation is an
  estimate for 2009 and 2010. The ARC was computed using the following actuarial
  assumptions: (1) actuarial cost method projected unit credit; (2) amortization method level
  dollar; (3) closed amortization period of 30 years; (4) discount rate of 4% compounded
  annually; (4) mortality RP-2000 table, with projections for future improvement through 2007
  by scale AA for active and mortality rates for disabled, and (5) healthcare cost trend rates of
  9%, grading to 5% in 5 years.

The schedule of funding progress (in thousands) for the postemployment medical and life
  insurance benefits is as follows:

                                                            Unfunded                                       UAAL as a
                                              Actuarial     Actuarial                                     Percentage
                                              Accrued        Accrued                                            of
                            Actuarial          Liability     Liability       Funded         Covered         Covered
           Actuarial        Value of         (AAL)-PUC       (UAAL)           Ratio          Payroll         Payroll
        Valuation Date     Assets (a)             (b)         (b)-(a)        (a)/(b)           (c)        [(b)-(a)]/(c)


       January 1, 2009 $         -            96,617         96,617            0.00%        316,473          30.52%
       January 1, 2009           -            96,617         96,617            0.00%        306,213          31.55
       January 1, 2008           -            83,674         83,674              0.00       293,809          28.48
       January 1, 2007           -            73,313         73,313              0.00       264,631          27.70

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
  assumptions about the probability of occurrence of events far into the future. Examples
  include assumptions about future employment, mortality, and the healthcare cost trend.
  Healthcare cost trend assumptions are based on recent experience and anticipated future
  cost increases under the County’s medical plans. Amounts determined regarding the funded
  status and the annual required contributions of the employer are subject to continual
  revision as actual results are compared with past expectations and new estimates are made
  about the future. The schedule of funding progress presents multiyear trend information
  about whether the actuarial value of plan assets is increasing or decreasing over time
  relative to the actuarial accrued liabilities for benefits.




                                                            185
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                                December 31 and June 30, 2010


Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes
  are based on the substantive plan (the plan as understood by the employer and the plan
  members) and include the types of benefits provided at the time of each valuation and the
  historical pattern of sharing of benefit costs between the employer and plan members to
  that point. The actuarial methods and assumptions used include techniques that are
  designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the
  actuarial value of assets, consistent with the long-term perspective of the calculations.

Component Units - Postemployment Benefits Other Than Pension Benefits

Allegheny County Airport Authority

In addition ACAA has a Post Employment Medical Benefits Plan which is a single-employer
  defined benefit healthcare plan administered by the ACAA. There is no separate audit
  requirement. The plan provides reimbursement for medical benefits to eligible firefighter
  retirees hired before May 1, 2005 and their spouses. Benefits are provided according to
  retirees date of retirement and the benefits allotted as of the plan benefits at that date. The
  retiree is responsible for any premium cost in excess of the provided benefit. Payments to
  the retirees are made on a reimbursement basis. The ACAA does not have a funding policy
  for post employee benefits at this time.

The ACAA’s annual other post employment benefit (OPEB) cost (expense) is calculated based
 on the annual required contribution (ARC) of the employer, an amount actuarially
 determined in accordance with the parameters of GASB Statement 45. The ARC represents
 a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost
 each year and amortize any unfunded actuarial liabilities over an open period not to exceed
 thirty years. An actuarial valuation was performed for 2009. The following table shows the
 components of the ACAA’s annual OPEB cost, the amount actuarially contributed to the plan,
 and the changes in the net OPEB obligation:
           Annual required contribution                                 $           105,647
           Interest on net OPEB obligation                                            1,841
           Adjustment to annual required contribution                                (3,445)
           Annual OPEB cost                                                         104,043
           Contributions made                                                        78,969
           Increase in net OPEB obligation                                           25,074
           Net OPEB obligation - beginning of year                                   77,097
           Net OPEB obligation - end of year                            $           102,171




                                                     186
                                      COUNTY OF ALLEGHENY
                                  Notes to the Financial Statements
                                   December 31 and June 30, 2010


The ACAA’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
  and the net OPEB obligation for 2010, 2009 and 2008 were as follows:
                                                       Percentage of         Net OPEB
                    Fiscal Year        Annual OPEB      Annual OPEB          Obligation
                       Ended              Costs       Cost Contributed        (Asset)

               December 31, 2010 $       104,043           75.90%        $    102,171
               December 31, 2009         101,381           69.40%              77,097
               December 31, 2008         101,381           84.80%              46,024

As of January 1, 2009, the date of the most recent actuarial valuation date, the actuarial
 accrued liability for benefits was $991,481, all of which was unfunded. The contributions
 were made on a pay as you go basis. Actuarial valuation of an ongoing plan involves
 estimates of the value of reported amounts and assumptions about the probability of
 occurrence of events far into the future. Examples include assumptions about future
 employment, mortality and healthcare cost trends. Amounts determined regarding the
 funded status of the plan and the annual required contributions of the employer are subject
 to continual revisions as actual results are compared with past expectations and new
 estimates are made about the future.

Projections of benefits for financial reporting purposes are based on the substantive plan (the
  plan as understood by the employer and the plan members) and include the types of
  benefits provided at the time of each valuation and the historical pattern of sharing of
  benefit costs between the employer and plan members to that point. The actuarial methods
  and assumptions used include techniques that are designed to reduce the effects of short-
  term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with
  the long-term perspective of the calculations.

In the January 1, 2009 actuarial valuation, the following actuarial assumptions were used:

          Actuarial cost method                      Projected unit credit
          Interest rate                              4% compounded annually
          Amortization method                        Level dollar
          Amortization period                        30 years, open

Port Authority of Allegheny County

Plan Descriptions: In addition to the pension benefits PAT provides certain post-retirement
  healthcare benefits to its retirees. In accordance with the Retirement and Disability
  Allowance Plans for union and non-union employees, post-retirement benefits are provided
  to those who become entitled to receive a pension allowance or a disability allowance. Post-
  retirement benefits consisting of medical, hospital, prescription, dental and vision insurance
  coverage, and Medicare Part B premium reimbursement is provided for the life of the
  retiree.




                                                   187
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


Benefit provisions for the ATU and IBEW Plans are established and amended though
  negotiations between PAT and the respective unions. For the NonRep Plan, that authority
  rests with the PAT’s Board of Directors. The Plans do not issue publicly available financial
  reports.

Funding Policy: PATs contribution is based on projected pay-as-you-go financing
  requirements. For fiscal year 2010, PAT contributed $32,591,679 to the plans. Plan
  members receiving benefits contributed $2,406,982 through their contributions as required
  by the cost sharing provisions of the Plans. Under these provisions, retirees receiving
  benefits pay a certain percentage of any cost increases after the base year, as determined
  by the respective plans. Retiree cost sharing percentages for the ATU, IBEW, and NonRep
  plans are based on the particular health care coverage that is selected by the retiree, the
  number of family members covered and the age of the retiree and each covered family
  member, and when retirement became effective.

Annual OPEB Cost: PAT’s annual OPEB cost (expense) for each plan is calculated based on the
  annual required contribution of the employer (ARC), an amount actuarially determined in
  accordance with the parameters of GASB Statement No. 45. The ARC represents a level of
  funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to
  amortize any unfunded actuarial liabilities (of funding excess) over a period not to exceed
  thirty years.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
  assumptions about the probability of occurrence of events far into the future. Examples
  include assumptions about future employment, mortality, and the healthcare cost trend.
  Amounts determined regarding the funded status of the plan and the annual required
  contributions of the employer are subject to continual revision as actual results are
  compared with past expectations and new estimates are made about the future. The
  schedule of funding progress presents multiyear trend information about whether the
  actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
  accrued liabilities for benefits.

Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes
  are based on the substantive plan (the plan as understood by the employer and the plan
  members) and include the types of benefits provided at the time of each valuation and the
  historical pattern of sharing of benefit costs between the employer and plan members to
  that point. The actuarial methods and assumptions used include techniques that are
  designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the
  actuarial value of assets, consistent with the long-term perspective of the calculations.

The net OPEB obligation were computed as of January 1, 2009, projected forward to January
  1, 2010 used the following assumptions: (1) actuarial cost method projected unit credit; (2)
  amortization method level dollar; (3) an open amortization period of 30 years; (4)
  investment rate of return 4%; (4) projected salary increases 3.5%; mortality RP-2000 table,




                                                188
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                 December 31 and June 30, 2010


  with collar adjustments, and projected to 2007; and (5) inflation rate in medical 8.85% in
  2009, grading to 5% in 2018, dental 7% in 2009, grading to 5% in 2018, and vision 2% per
  year.

PAT’s OPEB cost for 2010 increased approximately $16 million from 2009. The next actuarial
  valuation will be performed as of January 1, 2011.

Three year trend information:

                                               ATU Plan
                                                      Percentage of       Net OPEB
                  Fiscal Year         Annual OPEB         AOC             Obligation
                    Ending             Cost (AOC)      Contributed         (Asset)

                June 30, 2010     $    60,154,667          47%        $   127,855,275
                June 30, 2009          44,675,402          60%             95,860,409
                June 30, 2008          63,593,737          35%             78,054,137

                                               IBEW Plan
                                                      Percentage of       Net OPEB
                  Fiscal Year         Annual OPEB         AOC             Obligation
                    Ending             Cost (AOC)      Contributed         (Asset)
                June 30, 2010           1,872,221          39%              4,944,807
                June 30, 2009           1,787,170          34%              3,793,715
                June 30, 2008           1,725,178          22%              2,609,741

                                             Non-Rep Plan
                                                      Percentage of       Net OPEB
                  Fiscal Year         Annual OPEB         AOC             Obligation
                    Ending             Cost (AOC)      Contributed         (Asset)

                June 30, 2010           4,353,911          85%              1,309,415
                June 30, 2009           3,476,526          105%               666,253
                June 30, 2008           3,553,400          107%               841,424




                                                189
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                      December 31 and June 30, 2010


Individual schedules of funding progress for the three plans are as follows:

                                                       ATU Plan
                                                 (Amounts in thousands)

                                           (3)            (4)                                    (7)
                           (2)          Actuarial    Unfunded        (5)                 Unfunded Actuarial
       (1)               Actuarial      Accrued       Actuarial    Funded     (6)      Accrued Liability (4) as a
    Actuarial            Value of      Projected      Accrued       Ratio   Covered    Percentage of Covered
 Valuation Date           Assets       Unit Credit     Liability    (2/3)    Payroll        Payroll [4/6]

  January 1, 2009 * $        -         713,477       713,477         0.0%   134,547            530.3%
  January 1, 2008 ** $       -         568,970       568,970         0.0%   129,386            439.7%
  January 1, 2007 ***        -         650,103       650,103         0.0%   129,386            502.5%

                                                      IBEW Plan
                                                 (Amounts in thousands)

                                           (3)            (4)                                    (7)
                           (2)          Actuarial    Unfunded        (5)                 Unfunded Actuarial
        (1)              Actuarial      Accrued       Actuarial    Funded     (6)      Accrued Liability (4) as a
Actuarial Valuation      Value of      Projected      Accrued       Ratio   Covered    Percentage of Covered
       Date               Assets       Unit Credit     Liability    (2/3)    Payroll        Payroll [4/6]

  January 1, 2009 * $        -          22,325        22,325         0.0%    2,897             770.6%
  January 1, 2008 ** $       -          17,813        17,813         0.0%    3,252             547.8%
  January 1, 2007 ***        -          16,903        16,903         0.0%    3,252             519.8%

                                                     Non-Rep Plan
                                                 (Amounts in thousands)

                                           (3)            (4)                                    (7)
                           (2)          Actuarial    Unfunded        (5)                 Unfunded Actuarial
        (1)              Actuarial      Accrued       Actuarial    Funded     (6)      Accrued Liability (4) as a
Actuarial Valuation      Value of      Projected      Accrued       Ratio   Covered    Percentage of Covered
       Date               Assets       Unit Credit     Liability    (2/3)    Payroll        Payroll [4/6]

  January 1, 2009 * $        -          76,701        76,701         0.0%   16,954             452.4%
  January 1, 2008 ** $       -          61,241        61,241         0.0%   17,481             350.3%
  January 1, 2007 ***        -          62,675        62,675         0.0%   17,481             358.5%

* Projected forward to 1/1/10
** Projected forward to 1/1/09
*** Projected forward to 1/1/08




                                                          190
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


The following table shows the PAT’s annual OPEB cost, the amount actually contributed, and
  changes in the net OPEB for the three plans.

                                                                                       NonRep
                                                          ATU Plan      IBEW Plan       Plan
    Annual required contribution                      $   61,650,652    1,931,425      4,364,309
    Interest on net OPEB obligation                        3,834,416      151,749         26,650
    Adjustment to annual required contribution            (5,330,401)    (210,953)       (37,048)
    Annual OPEB cost                                      60,154,667    1,872,221      4,353,911
    Contributions made                                    28,159,801      721,129      3,710,749
    Increase (decrease) in net OPEB obligation            31,994,866    1,151,092        643,162
    Net OPEB obligation (asset) beginning of year         95,860,409    3,793,715        666,253
    Net OPEB obligation (asset) end of year           $ 127,855,275     4,944,807      1,309,415

(12) Contingencies

The County is subject to certain regulatory and contractual requirements and is party to
  various litigation and claims, the more significant of which are described below. No amounts
  have been accrued for these cases unless otherwise stated.

 A. The County receives significant financial assistance from federal and Commonwealth of
  Pennsylvania governmental agencies in the form of grants and other entitlements. The
  receipt of funds under such programs generally requires compliance with terms and
  conditions specified in the grant agreements, and is subject to audit by grantor agencies.
  Any disallowed costs resulting from such audits could become a liability of the County's
  General Fund or other applicable funds. The amount, if any, of expenditures that may be
  disallowed by the granting agencies cannot be determined at this time. County management
  expects such additional amounts, if any, to be immaterial.

 B. In the ordinary course of the County's operations, there have been various legal
  proceedings initiated by citizens, job applicants, subcontractor’s employees, former or
  current County employees for alleged violations of federal constitutional rights, such as,
  wrongful terminations, civil rights violations, political affiliation, race, gender, and equal pay
  brought against the County. Management is of the opinion that these matters will not have
  a materially adverse effect on the County's financial position.

 C. The County is a defendant in approximately 15 actions associated with former inmates for
  deaths, unwanted sexual contact, constitutional and/or civil rights violations. Discovery
  continues in six cases, three answers have been filed, two motions granted and under
  appeal, one appeal to the Third Circuit Court of Appeals and one trial, mediation and stay.
  It is premature at this time to state with any degree of certainty the likelihood of favorable




                                                191
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                            December 31 and June 30, 2010


or unfavorable outcomes in any of these cases.

D. The County is a defendant in an action filed by an inmate alleging violation of his
constitutional rights from an 18 year incarceration and subsequent acquittal for murder.
Plaintiff also alleges malicious prosecution and professional negligence. The Third Circuit
Court of Appeals affirmed a lower court ruling in favor of defendants. Plaintiff recently filed
a petition to the U.S. Supreme Court. It remains, premature at this time to state with any
degree of certainty the likelihood of a favorable or unfavorable outcome.

E. The County is a defendant or has received notice of ten potential claims for deaths/
 personal injury and/or property damage from incidents on County roadways or properties.
 One case is scheduled for trial, one case has a hearing scheduled and eight cases are in
 discovery. It is premature at this time to state with any degree of certainty the likelihood of
 a favorable or unfavorable outcome.

F. The County is a defendant in a wrongful death action filed by the administrator of a
 decedent’s estate alleging problems in design and functioning of the equipment used in the
 County’s 911 Call Center System. The case is still pending in the Court of Common Pleas. .
 It remains premature at this time to state with any degree of certainty the likelihood of a
 favorable or unfavorable outcome.

G. The County is a defendant in a suit alleging negligence of a 911 Call Center dispatcher in
 regard to real property damage. An answer was filed in this matter and the case has
 entered the discovery phase. It is premature at this time to state with any degree of
 certainty the likelihood of a favorable or unfavorable outcome.

H. The County is a defendant in a class action alleging disproportionate distribution of the
 property tax burden within the County in violation of the PA and U.S. Constitutions.
 Preliminary objections were granted to all defendants by the trial court and plaintiffs
 appealed to Commonwealth Court. It is premature at this time to state with any degree of
 certainty the likelihood of a favorable or unfavorable outcome.

I. The County is a defendant in an alleged class action lawsuit relating to the sale of
  delinquent tax liens and attempted enforcement by a third party. An answer and a new
  matter were filed to plaintiff’s amended complaint. It is premature at this time to state with
  any degree of certainty the likelihood of a favorable or unfavorable outcome.

J. The County is a defendant in a suit alleging a plaintiff’s right was interfered with to enter
  onto and conduct surface mining operations on a 93 acre portion of South Park and that
  such interference constitutes a de facto taking of his coal rights. Commonwealth Court
  recently affirmed a lower court ruling in favor of County denying plaintiff’s request to strip
  mine coal. It is premature at this time to state with any degree of certainty the likelihood of
  a favorable or unfavorable outcome.




                                             192
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


 K. The County settled a case alleging the unconstitutionality of strip searches in the Jail
  between 2004 and 2008 in the amount of $3 million. This expense is included in the
  government-wide financial statements. The expenditures on the fund financial statements
  will be recognized as follows: $2.5 million in 2011 and $.5 million in 2012.

 L. The County is engaged in employment contract negotiation with Jail employees. They are
  currently engaged in arbitration. The expected outcome to be an agreement which will
  include raises retroactive to July 1, 2010. It is premature at this time to state with any
  degree of certainty the amount of the award.

Component Units - Contingencies

Allegheny County Airport Authority

 A. ACAA revenue bond obligations (the Revenue Bonds) total $410,640,000 at December 31,
  2010. The principal, interest and redemption premiums, if any, related to the Revenue
  Bonds are payable by ACAA only out of "net revenues" as defined and from such other
  monies as may be available for such purpose (Debt Service Reserve Fund). Certain bonds
  are subject to redemption, at the option of PIA, as a whole or in part, from time to time.
  The Revenue Bonds do not constitute a legal or equitable pledge, charge, lien or
  encumbrance upon any of ACAA's properties, including PIA, or upon any of its income,
  receipts or revenues except as noted above in Note 8. The holders of the Revenue Bonds
  have no claim upon the taxing power or tax revenues of the County.

 ACAA's ability to derive net revenues from its operation of PIA depends upon various factors,
 many of which are not within the control of ACAA. The primary source of net revenues is
 the AOA (see Note 1) between ACAA and the signatory airlines, of which US Airways is the
 primary airline, accounting for approximately 30.8% of the total revenues of PIA in 2010.
 The AOA provides for the landing fees, terminal rentals and ramp fees to be charged the
 airlines. In addition, the signatory airlines are also obligated to pay costs associated with
 aircraft support systems and tenant improvements, and US Airways is obligated to pay costs
 associated with certain exclusive-use systems and facilities.

  At any point in time, the U.S. economy, excess airline capacity and industry-wide
  competition through airfare discounting constitute significant constraints on the operations
  of the airlines. Due to these factors, the financial results of PIA are largely dependent upon
  conditions in the national economy and the U.S. airline industry, and the financial condition
  of carriers, such as US Airways, which provide significant levels of service at PIA.

 The scheduled payments of principal and interest on the Revenue Bonds when due are
 guaranteed by various third-party insurers and guarantors. Payment of the principal and
 interest on the Series 1997 and Series 2001 Bonds is insured by MBIA. Payment of the
 principal and interest on the Series 2002 Bonds is insured by FGIC. Payments of the
 principal and interest on the Series 2007 Bonds is insured by FSA, Inc. Payments of the



                                             193
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


 principal and interest on the Series 2010 Bonds is insured by Assured Guaranty Municipal
 Corporation. The ultimate ability of such insurers and guarantors to meet their obligations
 with respect to the Revenue Bonds will be predicated on their future financial condition.

 B. ACAA receives significant financial assistance from federal and state governmental
  agencies in the form of grants and other entitlements. The disbursement of resources
  received under such programs generally requires compliance with terms and conditions
  specified in the grant agreements and are subject to audit by grantor agencies. ACAA’s
  management believes disallowances, if any, will be immaterial.

 C. The Pennsylvania Department of Environmental Protection (DEP) issued an Administrative
 Order dated January 26, 1998 to the County, which alleges violations of a January 1994
 Consent Order and Adjudication and violations of the Pennsylvania Clean Streams Law at
 PIA. The Administrative Order cited several areas, all of which have been resolved, except
 for the deicing. ACAA has withdrawn a previous appeal without prejudice and continues to
 negotiate with DEP to reach a resolution of the matter. ACAA continues to address the
 deicing issues and has spent and continues to budget for significant capital funds in the near
 future to attempt to resolve the deicing problem.

 D. In the ordinary course of ACAA’s operations, there have been various legal proceedings
 brought against ACAA. ACAA management is of the opinion that these matters will not have
  a materially adverse effect on ACAA's financial position and results of operations.

Port Authority of Allegheny County

 A. In the ordinary course of PAT's operations and capital grant projects, there have been
  various legal proceedings brought against PAT. PAT has estimated and accrued a provision
  of approximately $4.4 million in potential losses resulting from all of the cases for which it is
  currently aware. Based on an evaluation which included consultation with outside legal
  counsel concerning the legal and factual issues involved, PAT management is of the opinion
  that these matters will not result in materially adverse effect on PAT's operations and
  financial position.

 B. PAT is subject to state and federal audits by grantor agencies. These laws and regulations
  are complex and subject to interpretation. PAT management is not aware of any pending
  audit involving prior or current years; however, compliance with such laws and regulations
  can be subject to future reviews and interpretation, which could result in disallowed costs.

 C. PAT has entered into a full funding grant agreement with the Federal Transit
  Administration for the federal share of the North Shore Connector project. It involves
  extending PAT’s existing Light Rail Transit system (LRT) in Pittsburgh’s urban core. The
  project would create a 1.5 mile extension of the LRT from the Gateway Center Station to
  Pittsburgh’s North Shore via a bored tunnel under the Allegheny River. The capital costs of
  this project are estimated to be $528.8 million and will be paid from federal, state and local




                                               194
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  sources. At June 30, 2010, approximately $384.4 million of projects costs had been incurred
  and PAT’s contract commitments related to this project approximated $111.5 million.

Community College of Allegheny County

CCAC is defendant in several legal proceedings related to alleged discrimination, violation of
  civil rights, negligence, and other matters which individually or in the aggregate involve
  amounts that could be material to its financial statements. CCAC plans to vigorously defend
  itself related to these matters and believes it has meritorious defenses to the claims brought
  against it. At this time, management cannot determine the outcome of these matters or
  timing thereof. Accordingly, no provision for any loss that may result upon resolution of
  these matters has been made at June 30, 2010.

Redevelopment Authority of Allegheny County

RAAC is exposed to various risks of loss related to torts; theft of damage to, and destruction of
  assets; errors and omissions; breach of contract; and natural disasters, for which the RAAC
  carries commercial insurance. There have been no claims resulting from these risks in the
  current year.

Allegheny HealthChoices, Inc.

AHCI’s financial and program records are subject to examination by appropriate government
  authorities in accordance with terms of the various grant awards and contracts. The
  government authorities are authorized to review actual expenditures and to make necessary
  adjustments in subsequent reimbursements or request refunds of grant amounts, if
  warranted.

Allegheny County Parks Foundation

The Foundation has received a conditional grant from the Jewish Healthcare Foundation in the
  amount of $60,000 to fund the Montour Trail Project. The grant is contingent upon
  successful completion of project milestones established in connection with the initial
  unconditional grant received from the Jewish Healthcare Foundation and the Parks
  Foundation’s successful solicitation of additional funds to complete the project.




                                              195
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



(13) Related Party Transactions (see Note 1)

The County provides various administrative support services to the following related
  organizations:
                Allegheny County Residential Finance Authority
                Authority for Improvements in Municipalities
                Allegheny County Hospital Development Authority
                Allegheny County Higher Education Building Authority
The costs of services provided to these organizations are fully recovered through contractual
  arrangements.

The County also enters into agreements with the Allegheny County Housing Authority. These
  agreements are for services performed for the County by the Housing Authority related to
  federal and state grant projects.

Component Unit – Related Party Transactions

Port Authority of Allegheny County

PAT has a contract with Veolia Transportation Services, Inc. which provides professional
  services to coordinate the paratransit system, ACCESS, which provides transit services
  within the County for elderly and handicapped individuals. Expenses under this contract
  amounted to $24 million in fiscal 2010. PAT currently receives partial reimbursement for
  these services from the Commonwealth in the form of a grant. The amount is based on
  ridership and average fare statistics. Revenue under this program totaled $11.8 million in
  fiscal 2010.

Redevelopment Authority of Allegheny County

RAAC entered into an agreement with C.B. Richard Ellis (who employs a RAAC board member)
  to provide management services for a property owned by RAAC. During fiscal year 2010
  RAAC paid approximately $27,097 in management, engineering, and maintenance fees to
  C.B. Richard Ellis. This contract was entered into prior to the board member being
  employed by C.B. Richard Ellis.

RAAC has entered into an agreement to provide funding through CDBG funds and an EDF loan
  to the ACAA for costs related to the design, engineering, and construction of the Industry
  Drive Extension. Total CDBG funds committed are not to exceed $2.25 million. As of
  December 31, 2010, the loan has an outstanding balance of $1,314,172. Additionally,
  RAAC received grant funds which were used to provide infrastructure improvements related
  to the Industry Drive Extension on behalf of ACAA in the amount of $1,264,569.




                                             196
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


In fiscal year 2008, RAAC approved the issuance of an additional EDF loan to the ACAA. The
   total funds committed are not to exceed $1,000,000 and the loans bear an annual interest
   rate of 4% for a period of 12 months. As of December 31, 2010, the loan has not been
   disbursed.

RAAC has also entered into an agreement to provide funding through an EDF Loan to the
  Sports and Exhibition Authority for costs related to the design, engineering , and
  construction of a multi-purpose arena. Total funds committed are not to exceed $2.75
  million. As of December 31, 2010, the loan has not been disbursed and expired as of that
  date.

RAAC has entered into an agreement with RIDC (who employs a RAAC Board member) to
  provide certain loan and grant funds. This agreement was entered into prior to the Board
  member being employed by RIDC.

Allegheny County Parks Foundation

The Parks Foundation leased temporary office space from the Jewish Healthcare Foundation at
  $500 per month on a month to month basis. The President of the Jewish Healthcare
  Foundation is a member of the Parks’ Foundation's Board of Directors. Rent expenses
  under the lease for the year ended December 31,2010 was $1,500. There are no amounts
  due to the Jewish Healthcare Foundation attributable to the lease at December 31, 2010.

(14) Derivative Financial Instruments

During fiscal year 2007, the County entered into a pay-fixed, receive-variable interest rate
  swap contract. The interest rate swap was effective March 14, 2007. Per the swap
  agreement the County makes semi-annual interest payments on the first of each May and
  November through November 1, 2026. The Counterparty makes quarterly interest
  payments on the first of each May, August, November and February through November 1,
  2026.

The intention of the swap is to effectively change the County’s variable interest rate on the
  $43,945,000 General Obligation Refunding Notes, Series C-59B (Index Rate), (C-59B
  Notes), to a synthetic fixed rate of 4.1355%.

The Series C-59B Notes will accrue interest at a weekly rate that is determined by a
  remarketing agent on each effective rate date. Per the interest rate swap agreement, the
  County will receive 67% of 3 month LIBOR plus 0.55% while paying a fixed rate of
  4.1355%. The Counterparty’s interest rate may not exceed a maximum of 15%.

The interest payments on the interest rate swap are calculated based on a notional amount of
  $43,945,000, which reduces beginning on November 1, 2017 so that the notional amount
  approximates the principal outstanding on the Series C-59B Notes. The interest rate swap




                                              197
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


  expires on November 1, 2026 consistent with the final maturity of the Series C-59B Notes.

During 2010, the County paid $1,817,345 and received $340,495 related to the swap.

As of December 31, 2010 and 2009, the swap had a fair value of ($5,494,517) and
   ($3,817,518), respectively. The current period change in market value of ($1,676,999) for
   the interest rate swap accounted for as a hedge is recorded on the statements of net assets
   as a deferred outflow. The fair market value of the interest rate swap of December 31,
   2010 is reported on the statement of net assets as a swap liability. The mark to market
   value is an estimated net present value of the expected cash flows calculated using relevant
   mid-market data inputs and based on the assumption of no unusual market conditions or
   forced liquidation.

The County has the ability to early terminate the swap and to cash settle the transaction on
  any business day by providing at least two business days written notice to the counterparty.
  Evidence that the County has sufficient funds available to pay any amount payable to the
  counterparty must be provided at the time notice is given. At early termination, the County
  will be required to pay or receive a settlement amount which is comprised of the market
  value of the terminated transaction based on market quotations and any amounts accrued
  under the contract.

Through the use of derivative instruments such as this interest rate swap, the County is
  exposed to a variety of risks, including credit risk, interest rate risk, termination risk,
  market-access risk, and basis risk.

       Credit risk is the risk that a counterparty will not fulfill its obligations. The interest rate
       swap counterparty is rated A by Standard and Poor’s, a nationally recognized statistical
       rating organization. If the counterparty failed to perform according to the terms of the
       interest rate swap agreement, there is some risk of loss to the County, up to the fair
       market value of the swap. Performance of the counterparty as it relates to this
       transaction is guaranteed by the counterparty’s parent company.

       Because the interest rate swap has a negative fair market value, there is no current
       credit risk to the County. This risk includes the potential for the counterparty to fail to
       make periodic variable rate payments to the County and the counterparty to fail to
       make termination payments to the County, if the swaps are terminated and a
       termination payment is due from the counterparty.

       The County has not entered into a master netting arrangements with its counterparty,
       as there is only one transaction outstanding.

       The County’s does not have an agreement with the counterparty that requiries the
       counterparty to post collateral if certain circumstances exist related to the swap




                                                198
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


       transaction. During the year, no collateral was posted by the Counterparty nor had an
       event of termination occurred.

       Interest rate risk is the risk that changes in interest rates will adversely affect the fair
       values of the County’s financial instruments or the County’s cash flows. The County
       could be exposed to interest rate risk if long-term interest rates are less than 4.1355%.

       Termination risk is the risk that a derivative’s unscheduled end will affect the County’s
       asset/liability strategy or will present the County with potentially significant
       unscheduled termination payments to the counterparty. The counterparty to the
       transaction does not have the ability to voluntarily terminate the interest rate swap;
       however, the County is exposed to termination risk in the event that the counterparty
       defaults. The transaction would be considered to be terminated in the event that the
       counterparty’s credit rating on their long-term unsecured, unenhanced senior debt (not
       taking into account the guarantee of the parent) is withdrawn, suspended or falls
       below Baa3 (Moody’s) or BBB- (S&P).

       Basis risk is the risk that arises when variable interest rates on a derivative and an
       associated bond or other interest-paying financial instrument are based on different
       indexes. The County is not subject to basis risk as the interest index on the variable
       rate arm of the swap is based on the same index (67% 3-month LIBOR plus 0.55%) as
       the variable interest rate on the Series C-59B Notes.

       Rollover risk is the risk that a derivative associated with the County’s debt does not
       extend to the maturity of that debt. When the derivative terminates, the associated
       debt will no longer have the benefit of the derivative. The County is not exposed to
       rollover risk as the swap agreement terminates on November 1, 2026 which is the
       same day as the last payment is due on the Series C-59B Notes.

Component Unit – Derivative Financial Instruments

Allegheny County Airport Authority

On November 14, 2006, the ACAA entered into a Constant Maturity Swap (CMS) for the
 purpose of reducing debt service by taking advantage of the flat interest rate curves that
 were in affect at the time of the remarketing of the Series 2001 and Series 2002 bonds.
 The transaction is effective beginning July 1, 2007, and continues until January 1, 2023.
 The CMS is structured so that the ACAA receives funds quarterly at the rate of 67% of the
 USD-ISDA Swap Rate minus 0.11% times a notional amount that is initially $182,000,000
 and which decreases annually as debt payments are made on the Series 2001 and Series
 2002 bonds, and the ACAA pays the counterparty quarterly at the USD-BMA-Municipal Swap
 Index rate times the notional amount as described above. On June 15, 2010, the ACAA
 amended the swap, suspending accruals and payments from and including July 1, 2010 to




                                               199
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010


  but excluding January 1, 2014. Upon the amendment, ACAA received a net termination
  payment of $5,075,000. The fair value of the CMS as of December 31, 2010 was
  $(374,592) with a notional amount of $102,635,000. When the swap becomes effective on
  January 1, 2014, ACAA will continue to pay the SIFMA index and receive 67% of the 10-
  year CMS minus 11 basis points; the notional amount of the swap will be $102,635,000 on
  January 1, 2014.

Port Authority of Allegheny County

During fiscal year 2004, PAT entered into a swaption contract that provided PAT with an up-
  front payment of $10.1 million. The swaption gives the counterparty the option to make
  PAT enter into a pay-fixed, receive-variable interest rate swap on the first day of each March
  or September during the period commencing on, and including, March 1, 2011 and
  terminating on, March 1, 2014.

Per the swap agreement, PAT would receive interest at the variable rate of 67% of one month
  LIBOR (London Interbank Offered Rate) while paying a fixed rate of 4.53%. The interest
  payments are calculated based on a notional amount of $234,470,000, with reduces
  beginning on March 1, 2012. The swap would expire on March 1, 2029.

If the option is exercised, PAT would make net swap payments as required by the terms of the
   contract, that is, receiving a variable rate as noted above for the term of the swap from the
   counterparty and making a fixed rate payment to the counterparty.

As of June 30, 2010, the swaption had a fair value of ($46,976,733). As the swaption is
  considered to be an investment type derivative instrument per accounting standards, it is
  reported as a derivative liability and as borrowing on the statements of net assets. The
  change in fair market value of ($14,963,726) is recorded as a component of investment
  income on the statements of revenues, expenses and changes in net assets. The mark to
  market value is calculated using a combination of the zero-coupon method and an option
  pricing model.

A portion of the upfront cash payment received by PAT at the time the swaption was entered
  into is considered to be a borrowing at a rate of 4%. As of June 30, 2010, the borrowing
  had an outstanding balance of $9,138,841 and is disclosed more in Note 8.

PAT has the ability to early terminate the swaption and to cash settle the transaction on any
  business day by providing at least five business days written notice to the counterparty.
  Evidence that PAT has sufficient funds available to pay any amount payable to the
  counterparty must be provided at the time notice is given. At early termination, PAT will be
  required to pay or receive a settlement amount which is comprised of the market value of
  the terminated transaction based on market quotations and any amounts accrued under the
  contract.




                                              200
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                              December 31 and June 30, 2010


In connection with this transaction, PAT has issued a Subordinate Lien Special Revenue
  Transportation Note, Series of 2004 (2004 Note). The 2004 Note was issued for the
  purpose of evidencing and securing PAT’s uninsured payment obligations with respect to the
  interest rate swap. The amount due under this 2004 Note agreement is dependent on the
  swap, but at no time may exceed $38,750,000. As of June 30, 2010, this 2004 Note had not
  been drawn on and as such there was no balance outstanding.

Through the use of derivative instruments such as this swaption, PAT is exposed to a variety
  of risks, including credit risk, interest rate risk, termination risk, market-access risk, and
  basis risk.

       Credit risk is the risk that a counterparty will not fulfill its obligations. Although the
       underlying swap exposes PAT to credit risk should the swap be executed, the swaption
       itself does not expose PAT to credit risk. On June 30, 2010, the swaption counterparty
       is rated A2 by Moody’s Investors Services, Inc., and A by Standard & Poor’s, Inc.
       nationally recognized statistical rating organizations. If the option was exercised and
       the counterparty failed to perform according to the terms of the swap agreement,
       there is some risk of loss to PAT, up to the fair market value of the swaption.
       However, as of June 30, 2010, the swaption had a negative market value to PAT and
       as such PAT had no credit risk exposure related to this transaction. Performance of the
       counterparty as it relates to this transaction is guaranteed by the counterparty’s parent
       company. In the event that the counterparty's rating is downgraded to a certain level
       (based on the fair value of the swap at the time of the downgrade) the counterparty
       would be required to post collateral to support its obligations under the swap. As of
       June 30, 2010, there is no collateral posted by the counterparty related to this
       transaction, no has there been any collateral posted since inception of the swaption.

       Interest rate risk is the risk that changes in interest rates will adversely affect the fair
       values of PAT’s financial instruments or PAT’s cash flows. PAT’s swaption is exercisable
       by the counterpary beginning in March 2011. The swaption is highly sensitive to
       changes in interest rates; changes in the variable rate will have a material effect on the
       swaption’s fair market value. If exercised, the resulting interest rate swap will have
       scheduled maturity dates beginning in fiscal year 2012 through 2029. As of year-end,
       PAT is currently evaluating alternative financing arrangements most of which include
       terminating the swaption prior to its exercise date.

Contingent Features -- The counterparty may require PAT to post collateral in the event that
  the swaption is exercised and the fair value is a negative amount which exceeds the
  threshold amount which is determined by PAT’s then current S&P or Moody’s rating, if any.
  In the event that the collateral is called, PAT would have to post collateral of cash and short
  term securities up to the fair market value of the swaption at that time. As of June 30,
  2010, PAT had not posted any collateral. As of November 22, 2010, the fair value of the
  swap is ($50,118, 127).




                                               201
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



(15) Liquidity

Port Authority of Allegheny County

Act 44 was enacted by the Commonwealth in 2007. A key funding provision of the act
   required Federal Highway Administration approval of the tolling of Interstate 80. During the
   fiscal year, the Federal government rejected that request and to date the State has not
   provided adequate alternative funding. As a result, a funding shortfall for statewide transit
   agencies and transportation programs currently exists.

To mitigate the resulting deficit PAT’s Board of Directors voted on November 24, 2010 to
  increase fares and reduce expenditures resulting in a balanced budget. Fare increases will
  go in effect beginning January 1, 2011 with significant service reductions implemented in
  March 2011. Combined with use of reserves, PAT expects to meet current financial
  obligations. PAT continues to work with the State elected officials to address the funding
  shortfall.

PAT has a line of credit for working capital in the amount of $20 million. In fiscal year 2010,
  PAT drew a maximum of $10 million for cash flow purposes which was paid back within two
  months.

(16) Subsequent Event

Short-term Debt

On January 4, 2011, the County issued Tax and Revenue Anticipation Note (TRAN), Series of
 2011, in the amount of $50,000,000. The TRAN bears an interest rate of 1% and mature on
 April 5, 2011. Proceeds from the TRANs will be used to ensure sufficient cash flow for
 County operations prior to the receipt of property tax revenues.

Long-term Debt

On March 1, 2011 the County issued General Obligation Bonds, Series C-65 in the amount of
 $76,155,000. The proceeds of the Series C-65 Bonds were used to: (1) fund various
 projects of the County’s Capital Budget, and (2) capitalized interest on the C-65 Bonds.

On March 1, 2011, the County issued General Obligation Refunding Bonds, Series C-66 in the
 amount of $13,895,000. The proceeds of the Series C-66 Bonds were used to refund the
 County’s General Obligation Bonds, Series C-53.




                                              202
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                             December 31 and June 30, 2010



Component Unit – Subsequent Event


Port Authority of Allegheny County

PAT’s swaption contract can be exercised by the counterparty, Merrill Lynch Capital Services,
 Inc. on March 1, 2011. The counterparty has indicated it will likely exercise the option and
 put PAT into the associated pay-fixed, receive-variable interest rate swap. PAT has
 determined it is in its best interest to terminate the option and cash settle the transaction.
 PAT’s Board of Directors on November 24, 2010 authorized the issuance of Special Revenue
 Transportation Bonds, Refunding Series of 2011 the purpose of which is to refund the
 Special Revenue Transportation Bonds, Series of 2001 and terminate the swap contract.
 Subsequent to the issuance of PAT’s June 30th, 2010 financial statements, in February 2011,
 PAT issued the bonds and used part of the proceeds to terminate the contract.




                                             203
                      REQUIRED SUPPLEMENTARY
                                 INFORMATION
In accordance with Governmental Accounting Standards Board Statement No. 34, the following
Budgetary Comparison Schedule for the General Fund’s legally adopted annual budget is
presented as required supplementary information
                                                                                                                Exhibit 12

                                          COUNTY OF ALLEGHENY, PENNSYLVANIA
                                             Budgetary Comparison Schedule
                                                     General Fund
                                             Year Ended December 31, 2010




                                                                         Budget
                                                                                                                Variance to
                                                              Original              Final                           Final
                                                              Budget               Budget         Actual          Budget

Revenues:
  Property taxes (notes 1 and 4)                        $   202,587,000       202,587,000        202,932,512        345,512
  Sales and use tax                                          40,290,000        40,290,000         40,904,309        614,309
  Gaming local share assessment                               6,000,000         6,000,000          4,839,223     (1,160,777)
  Licenses and permits                                        1,861,200         1,861,200          1,919,316         58,116
  Federal revenues                                           94,274,364        94,274,364         89,232,548     (5,041,816)
  State revenues                                            201,083,915       201,083,915        182,957,577    (18,126,338)
  Local government units revenues                            17,815,000        17,815,000         23,295,014      5,480,014
  Charges for services and facilities                        63,381,777        63,381,777         68,272,002      4,890,225
  Fines and forfeitures                                       4,915,500         4,915,500          4,787,652       (127,848)
  Interest earnings                                           1,707,432         1,707,432            271,202     (1,436,230)
  Miscellaneous                                               6,023,075         6,023,075          4,189,548     (1,833,527)

       Total revenues                                       639,939,263       639,939,263        623,600,903    (16,338,360)

Expenditures:
  Current:
    General government                                      166,624,515       167,268,498        165,043,845      2,224,653
    Public safety                                            85,314,017        82,253,544         81,383,463        870,081
    Public works                                             26,024,947        26,853,557         25,869,178        984,379
    Health and welfare                                      357,956,976       356,761,765        343,550,367     13,211,398
    Culture and recreation (note 2)                           9,211,997        10,157,104         10,150,132          6,972
    Education                                                22,488,000        22,488,000         22,488,000          -
    Economic development                                      2,503,797         6,618,797          5,847,833        770,964
  Debt service:
    Cost of issuance expenses                                    40,450               40,450         40,450           -
    Interest charges                                            624,564              126,394        126,389                   5

       Total expenditures                                   670,789,263       672,568,109        654,499,657     18,068,452

       Deficiency of revenues
         over expenditures                                  (30,850,000)          (32,628,846)   (30,898,754)     1,730,092

Other financing sources (uses):
 Premium on issuance of tax revenue anticipation note             -                    -              84,500         84,500
 Proceeds from sale of building                                   -                    -               -                  -
 Capital lease                                                    -                    -               -                  -
 Transfers in                                                30,850,000           30,850,000      43,064,149     12,214,149
 Transfers out                                                    -                    -         (12,011,439)   (12,011,439)

       Total other financing sources (uses)                  30,850,000           30,850,000      31,137,210        287,210



       Net change in fund balances                                 -               (1,778,846)      238,456       2,017,302

Fund balances at beginning of year                           20,151,108           20,151,108      20,151,108          -

Fund balances at end of year                            $    20,151,108           18,372,262      20,389,564      2,017,302



See notes to required supplementary information.




                                                             207
                                     COUNTY OF ALLEGHENY
                        Notes to the Required Supplementary Information
                                       December 31, 2010



(1) Budgetary Data

The County’s 2009 comprehensive fiscal plan, which includes the annual appropriated budgets
  reflected in the supplemental financial statements, was adopted for the primary government
  as outlined below based upon provisions of the County’s Home Rule Charter.

The County Manager prepared the 2009 comprehensive fiscal plan, consisting of the 2009 op-
  erating budget and capital budget, a two-year projected operating budget, a five-year capi-
  tal improvement plan, a grants and special revenues budget, a trust and agency budget and
  a budget message. The operating budget included proposed expenditures and estimated
  revenues for the General Fund, the Liquid Fuel and Transportation Tax Fund (Special Reve-
  nue Funds) and the Debt Service Fund. The budgets for the capital, other special revenue
  (Human Service and County Grant Funds) and trust and agency funds were adopted on a
  project basis that covers the life of the project.

No later than 75 days before the end of the year, the Chief Executive must appear before
  County Council to present the budget message and to submit the fiscal plan. County Council
  must hold a minimum of two public hearings on the proposal to obtain taxpayers' com-
  ments.

No later than 25 days before the end of the fiscal year, the Council must adopt, by resolution,
  a balanced operating and capital budget for the fiscal year 2010 and established a property
  tax millage rate for the coming fiscal year. Before adoption, Council is able to add, delete,
  increase or decrease any appropriation item.

Budgeted appropriations can be amended to the extent that additional, expendable financial
  resources become available. Only the appropriations for the operating budget lapse at
  year‑end. Previous year encumbrances for all budgets are reappropriated.

The Chief Executive is able to transfer up to 20% of any unencumbered operating appropria-
  tion balance within the same department during the last four months of the year, upon noti-
  fication of County Council. Upon the recommendation of the Chief Executive, County Coun-
  cil, by resolution, could make transfers within and between departments and agencies or to
  any new account at any time.

Bill no. 5180-09 established 2010’s Operating Budget at $773,480,142, of which $670,789,263
   is for the General Fund.




                                              208
                                     COUNTY OF ALLEGHENY
                        Notes to the Required Supplementary Information
                                       December 31, 2010



The 2009 operating budget was adopted using the modified accrual basis of accounting, and
  revenues and expenditures are presented in accordance with the accounting principles gen-
  erally accepted in the United States. Legal control over expenditures was exercised by total
  budget, by fund, by department and by character of expenditure.

(2) Legal Compliance

Adopted Budget

In 2010 no functional expense category as a whole was over budget.




                                             209
                               OTHER SUPPLEMENTARY
                                       INFORMATION
Include combining and individual detailed comparative financial information for the County’s
major and Other Governmental Funds, Operating Budget, Capital Assets, Nonmajor Compo-
nent Units and Long-Term Debt
                                  COMBINING OTHER
                               GOVERNMENTAL FUNDS
                              FINANCIAL STATEMENTS
Combines the County’s Liquid Fuel Tax and Transportation Special Revenue Funds and Debt
Service Fund.
                                                                                                Exhibit 13

                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                             Combining Balance Sheet
                                            Other Governmental Funds
                                               December 31, 2010




                                                  Transportation   Liquid Fuel   Debt Service
                                                      Fund         Tax Fund         Fund         Totals

       Assets


Cash and short-term investments               $     2,665,928            -             -         2,665,928
Restricted cash and short-term investments              -              475,891       775,376     1,251,267
Delinquent property taxes receivable, net               -                -         1,883,393     1,883,393
Liened property taxes receivable, net                   -                -         3,220,482     3,220,482
Due from other funds                                    -                -        41,710,163    41,710,163
Alcoholic beverage tax receivable                   2,215,203            -             -         2,215,203
Rental vehicle tax receivable                         277,599            -             -           277,599
Accrued penalty and interest receivable                 -                -            54,092        54,092
Accrued interest receivable                             -                  186            63           249


       Total assets                           $     5,158,730          476,077    47,643,569    53,278,376

       Liabilities and Fund Balances

Liabilities:
   Vouchers payable                           $          -                -           19,449        19,449
   Accrued interest payable                              -                -            1,759         1,759
   Due to other funds                                    -                -       42,306,296    42,306,296
   Tax refunds payable                                   -                -          155,924       155,924
   Deferred revenues                                     -                -        5,103,875     5,103,875
   Matured bonds payable                                 -   0            -           56,266        56,266

       Total liabilities                                 -                -       47,643,569    47,643,569

Fund balances:
  Restricted for:
    Road maintenance expenditures                       -              476,077         -           476,077
    Transportation                                  5,158,730            -             -         5,158,730

       Total fund balances                          5,158,730          476,077         -         5,634,807

       Total liabilities
         and fund balances                    $     5,158,730          476,077    47,643,569    53,278,376




                                                         215
Exhibit 14

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
             Combining Statement of Revenues, Expenditures and Changes in Fund Balances
                                     Other Governmental Funds
                                   Year Ended December 31, 2010




                                                  Transportation    Liquid Fuel   Debt Service
                                                      Fund          Tax Fund         Fund           Totals


Revenues:
  Property taxes                              $          -              -           61,961,346      61,961,346
  Alcoholic beverage tax                            27,359,274          -                -          27,359,274
  Rental vehicle tax                                 5,436,982          -                -           5,436,982
  State revenues                                         -          4,359,244          112,283       4,471,527
  Local governmental units revenues                      -              -               44,441          44,441
  Interest earnings                                      -              3,679           98,576         102,255
  Miscellaneous                                         66,666          -                -              66,666


       Total revenues                               32,862,922      4,362,923       62,216,646      99,442,491


Expenditures:
  Transportation                                    27,668,700          -                   -       27,668,700
  Public works                                           -          4,120,000               -        4,120,000
  Debt service:
     Principal                                            -              -          41,387,500      41,387,500
     Interest                                             -              -          28,402,581      28,402,581


       Total expenditures                           27,668,700      4,120,000       69,790,081     101,578,781


      Excess (deficiency) of revenues
         over expenditures                            5,194,222        242,923       (7,573,435)    (2,136,290)


Other financing sources (uses):
  Transfer in                                             -              -           47,567,851     47,567,851
  Transfer out                                       (4,099,852)         -          (41,918,075)   (46,017,927)


       Total other financing sources (uses)          (4,099,852)         -            5,649,776      1,549,924

       Net change in fund balances                    1,094,370        242,923       (1,923,659)      (586,366)

Fund balances at beginning of year                    4,064,360        233,154        1,923,659      6,221,173


Fund balances at end of year                  $       5,158,730        476,077              -        5,634,807




                                                              216
                                                         GENERAL FUND
The General Fund is the primary operating fund of the County. It is used to account for all
financial resources except those required to be accounted for in other funds.
                                                                 Exhibit A-1 (Page 1 of 2)

                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                                Balance Sheet
                                 General Fund
                             December 31, 2010
                 With Comparative Totals for December 31, 2009




       Assets                                     2010               2009


Cash and short-term investments             $         -                   -
Delinquent property taxes receivable,
   net of $651,674 allowance for
   uncollectible property taxes in 2010
   and $805,239 in 2009                           6,141,594          7,369,037
Liened property taxes receivable,
   net of $6,439,813 allowance for
   uncollectible property taxes in 2010
   and $6,445,093 in 2009                        11,789,735          8,268,932
Sales tax receivable                              7,398,566          6,999,908
Due from other funds:
   Debt Service Fund                             42,306,296         11,515,123
   Risk Management Fund                             399,530            664,321
   County Capital Projects Fund                   1,300,563          5,717,510
   Human Services Grants Fund                     2,152,783          3,492,179
   County Grants Fund                             2,192,338          5,493,626
                                                 48,351,510         26,882,759
Due from other governments:
  Federal                                        53,025,146         63,039,536
  State                                           7,573,838         44,679,769
  Other                                               -                 52,516
                                                 60,598,984        107,771,821
  Less: allowance for doubtful accounts          (6,473,419)        (7,259,042)
                                                 54,125,565        100,512,779
Other accounts receivable                        15,301,276         16,198,014
Due from component units                          7,492,082          4,108,312
Accrued penalty and interest receivable             195,521            244,460
Accrued interest receivable                           5,720             29,762
Other assets                                          -                  9,716

       Total assets                         $   150,801,569        170,623,679




                                          219
Exhibit A-1 (Page 2 of 2)

                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Balance Sheet
                                             General Fund
                                         December 31, 2010
                             With Comparative Totals for December 31, 2009




                  Liabilities and Fund Balance                 2010            2009


           Liabilities:
              Vouchers payable                           $    18,271,663       7,835,240
              Accrued payroll                                 10,267,403       9,146,397
              Payroll withholdings                               493,350         516,695
              Due to other funds:
                Debt Service Fund                                167,164         138,108
                Risk Management Fund                             578,183         464,362
                County Capital Projects Fund                  28,908,133      60,391,379
                Human Services Grants Fund                     1,191,966       3,212,313
                County Grants Fund                             7,104,894       7,793,692
                                                              37,950,340      71,999,854
             Tax refunds payable                                 503,232         426,374
             Accrued liabilities                              36,541,072      36,088,680
             Due to other governments:
               State                                               1,028           3,050
             Due to component units                            4,403,200       3,960,000
             Deferred revenue                                 19,600,307      17,768,420
             Accrued pension costs                             1,291,350       1,138,335
             Accrued state mental hospital costs                 113,460         113,460
             Accrued workers' compensation                       740,431         764,661
             Accrued unemployment compensation                   235,169         711,405

                  Total liabilities                          130,412,005     150,472,571

           Fund balance:
             Assigned to:
               General government                                255,185         211,265
               Public safety                                      32,166          49,087
               Public works                                       11,896         106,500
               Health and welfare                                585,094         310,807
               Culture and recreation                             28,501           8,607
             Unassigned:                                      19,476,722      19,464,842

                  Total fund balance                          20,389,564      20,151,108

                  Total liabilities and fund balance     $   150,801,569     170,623,679




                                                       220
                                                                                Exhibit A-2 (Page 1 of 3)

                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                      Schedule of Revenues, Expenditures and Changes in Fund Balance
                                             Budget and Actual
                                               General Fund
                                      Year Ended December 31, 2010
                     With Comparative Actual Amounts for Year Ended December 31, 2009


                                                                     2010


                                                    Final                                       2009
                                                   Budget         Actual       Variance         Actual

Revenues:
  Property taxes:
    Current                                  $   187,962,000    192,751,795     4,789,795     222,711,258
    Delinquent                                    12,028,000      8,731,722    (3,296,278)      4,792,543
    Liened                                         2,713,000      2,299,272      (413,728)        933,139
    Interest and penalty                           1,928,000      1,609,398      (318,602)      1,710,754
    Payment in lieu of taxes                         300,000        396,657        96,657         222,375
    Tax refunds                                   (2,344,000)    (2,856,332)     (512,332)
                                                                                        0      (3,620,776)
                                                 202,587,000    202,932,512       345,512
                                                                                        0     226,749,293
  Sales and use tax                               40,290,000     40,904,309       614,309      39,172,875
  Gaming local share assessment                    6,000,000      4,839,223    (1,160,777)
                                                                                        0       1,575,008
                                                 248,877,000    248,676,044     (200,956)     267,497,176
  Licenses and permits:
     Firearm licenses                                280,200        213,298      (66,902)         268,042
     Hunting, fishing and dog licenses               141,500        137,531       (3,969)         141,291
     Road opening permits                            105,000        117,918       12,918          102,557
     Health licenses and permits - food            1,025,000      1,176,397      151,397        1,095,327
     Health licenses and permits - housing           165,000        153,006      (11,994)         162,767
     Solid waste fuel permits                         17,000          6,435      (10,565)          17,490
     Flammable liquid permits                         31,000         22,115       (8,885)          21,255
     Small games of chance permits                    74,000         73,621         (379)          75,695
     Bingo permits                                    22,500         18,995       (3,505)
                                                                                       0           20,145
                                                   1,861,200      1,919,316       58,116        1,904,569
  Federal revenues:
    Maintenance of prisoners                       3,500,000      2,496,936    (1,003,064)      3,227,329
    Skilled and intermediate
      nursing care                                32,692,828     28,954,728    (3,738,100)     27,942,776
    Medicare                                       6,851,164      6,666,784      (184,380)      7,806,571
    Title XX - Social services                     1,181,712      1,190,619         8,907       1,070,208
    Title IV - Foster Care                           500,000      2,309,112     1,809,112         507,797
    Title IV-B - Adoption services                   928,196        916,927       (11,269)        847,488
    Title IV-E - Child placement                  27,500,000     25,538,656    (1,961,344)     30,771,912
    Title IV-E - Adoption Assistance              11,500,000     11,851,511       351,511      12,422,943
    Title IV-E - Independent Living                    -            424,613       424,613         280,665
    Temporary assistance to needy families         8,555,464      7,862,055      (693,409)      8,406,705
    Juvenile Court rent reimbursement                925,000        919,652        (5,348)        919,686
    Miscellaneous                                    140,000        100,955       (39,045)
                                                                                        0          89,509
                                                  94,274,364     89,232,548    (5,041,816)     94,293,589
  State revenues:
    Court operations                               3,010,000      2,653,658     (356,342)       2,653,658
    Juvenile probation                               600,000        551,064      (48,936)         551,670
    Adult probation                                  495,000        458,756      (36,244)         484,667




                                                         221
Exhibit A-2 (Page 2 of 3)

                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                      Schedule of Revenues, Expenditures and Changes in Fund Balance
                                             Budget and Actual
                                               General Fund
                                      Year Ended December 31, 2010
                     With Comparative Actual Amounts for Year Ended December 31, 2009


                                                                    2010


                                                    Final                                     2009
                                                   Budget        Actual       Variance        Actual
   Lunch reimbursement                               230,300       150,346      (79,954)        118,692
   Public utility tax                                359,000       362,393        3,393         401,123
   Health department                               8,612,739     8,011,790     (600,949)      8,703,655
   Jurors fees reimbursement                          90,000        74,923      (15,077)         69,705
   Skilled and intermediate
      nursing care                                26,748,677    23,690,232    (3,058,445)    22,862,272
   Medical assistance paid
      prescriptions                                5,875,231     6,696,499      821,268       6,383,156
   Act 148 - Children, Youth
      and Family Services                        137,910,099   115,648,516   (22,261,583)   119,107,362
   Act 148 - Special Grant Initiative              9,650,369    16,107,526     6,457,157      6,039,961
   Criminal justice subsidy                        6,000,000     3,010,000    (2,990,000)     4,270,000
   Crime lab subsidy                               1,500,000       533,000      (967,000)     1,060,000
   Miscellaneous                                       2,500     5,008,874     5,006,374      1,837,041
                                                 201,083,915   182,957,577   (18,126,338)   174,542,962
 Local governmental units revenues:
   Regional Asset District contractual revenue    17,500,000    17,000,000     (500,000)     17,000,000
   Miscellaneous                                     315,000     6,295,014    5,980,014         215,187
                                                  17,815,000    23,295,014    5,480,014      17,215,187
 Charges for services and facilities:
   General government                             22,359,800    23,378,077    1,018,277      23,075,719
   Public safety                                   9,777,477     9,045,926     (731,551)      8,745,272
   Health                                          2,157,151     2,090,667      (66,484)      1,958,519
   Recreation                                      3,435,600     3,563,630      128,030       3,331,398
   Real estate                                     1,393,700     1,336,282      (57,418)      1,268,587
   Election                                           10,000        15,481        5,481          63,535
   Welfare                                             -             -            -               8,219
   Use of property and equipment                   1,876,519     2,004,574      128,055       1,941,205
   Patient income                                  7,310,334     7,942,261      631,927       8,455,071
   Collection from parents and
      guardians                                    2,000,000     1,776,739     (223,261)      2,234,465
   Administrative fees                               977,100     1,197,269      220,169       1,193,906
   Private Insurance                               2,440,689     4,301,053    1,860,364       3,625,704
   Commercial Insurance                            9,542,307    11,502,417    1,960,110      10,272,036
   Miscellaneous                                     101,100       117,626       16,526         635,483
                                                  63,381,777    68,272,002    4,890,225      66,809,119
 Fines and forfeitures:
    District courts                                4,824,000     4,639,076     (184,924)      4,750,548
    Miscellaneous                                     91,500       148,576       57,076         225,566
                                                   4,915,500     4,787,652     (127,848)      4,976,114
 Interest earnings                                 1,707,432      271,202     (1,436,230)      645,538
 Miscellaneous revenues:
   Other receipts                                  6,023,075     4,189,548    (1,833,527)     6,754,783
                                                   6,023,075     4,189,548    (1,833,527)     6,754,783

      Total revenues                             639,939,263   623,600,903   (16,338,360)   634,639,037



                                                         222
                                                                               Exhibit A-2 (Page 3 of 3)

                                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                        Schedule of Revenues, Expenditures and Changes in Fund Balance
                                               Budget and Actual
                                                 General Fund
                                        Year Ended December 31, 2010
                       With Comparative Actual Amounts for Year Ended December 31, 2009


                                                                   2010

                                                  Final                                        2009
                                                 Budget         Actual        Variance         Actual


Expenditures:
  Current:
    General government                         167,268,498    165,043,845     2,224,653      166,708,068
    Public safety                               82,253,544     81,383,463       870,081       78,837,379
    Public works                                26,853,557     25,869,178       984,379       25,038,327
    Health and welfare                         356,761,765    343,550,367    13,211,398      337,536,389
    Culture and recreation                      10,157,104     10,150,132         6,972        9,498,465
    Education                                   22,488,000     22,488,000         -           22,010,000
    Economic development                         6,618,797      5,847,833       770,964        6,494,647
                                               672,401,265    654,332,818    18,068,447      646,123,275
  Debt service:
    Cost of issuance                               40,450         40,450           -               -
    Interest charges                              126,394        126,389                 5         -
                                                  166,844        166,839                 5         -

       Total expenditures                      672,568,109    654,499,657    18,068,452      646,123,275

    Deficiency of revenue over
      expenditures                             (32,628,846)   (30,898,754)    1,730,092      (11,484,238)

Other financing sources (uses):
  Premium on issuance of TRAN                        -             84,500         84,500           -
  Proceeds from sale of building                     -              -              -           3,170,000
  Capital lease                                      -              -              -           7,678,839
  Operating transfers in                        30,850,000     43,064,149     12,214,149      12,120,704
  Operating transfers out                            -        (12,011,439)   (12,011,439)    (10,825,561)

    Total other financing sources               30,850,000     31,137,210       287,210       12,143,982

    Net change in fund balance                  (1,778,846)      238,456      2,017,302         659,744

Fund balance at beginning of year               20,151,108     20,151,108          -          19,491,364

Fund balance at end of year                $    18,372,262     20,389,564     2,017,302       20,151,108




                                                       223
                                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                              Schedule of Expenditures - Budget and Actual
                                                              General Fund
                                                    Year Ended December 31, 2010
                                        With Comparative Totals for Year Ended December 31, 2009


                                                                                          2010

                                        Adopted           Prior               Budget              Final                                2009
                                         Budget      Reappropriations   Amendments/Transfers     Budget       Actual      Variance     Actual
                                                                                                                                                   Exhibit A-3 (Page 1 of 26)




      General Government:

      County Executive:
          Personnel                 $     310,775               -                     -            310,775     260,793        49,982    275,890
          Fringe Benefits                  78,021               -                    1,270          79,291      79,149           142     73,710
          Services                         37,250               -                     -             37,250      14,289        22,961     17,814
          Supplies                          4,300               -                   (1,270)          3,030       1,818         1,212      1,969
          Materials                           200               -                     -                200        -              200       -
          Repairs and Maintenance           1,100               -                     -              1,100         200           900        424
          Minor Equipment                     900               -                     -                900        -              900       -
          Expenditure Recovery             (4,000)              -                     -             (4,000)     (4,651)          651     (4,496)
                                          428,546               -                     -            428,546     351,598        76,948    365,311




224
      County Council:
          Personnel                       576,435              -                      -            576,435     477,276        99,159    492,859
          Fringe Benefits                 171,336              -                      -            171,336     136,413        34,923    141,784
          Services                        173,675             1,003                   -            174,678     130,389        44,289    126,431
          Supplies                         18,904              -                      -             18,904      10,937         7,967     12,565
          Materials                           500              -                      -                500        -              500       -
          Repairs and Maintenance           1,750              -                      -              1,750         135         1,615         50
          Minor Equipment                  16,000              -                      -             16,000       3,187        12,813     13,533
          Expenditure Recovery             (8,000)             -                      -             (8,000)     (8,318)          318     (8,041)
                                          950,600             1,003                   -            951,603     750,019      201,584     779,181

      County Manager:
          Personnel                       810,205               -                     -            810,205     773,923        36,282    799,521
          Fringe Benefits                 232,582               -                     -            232,582     223,835         8,747    224,629
          Services                         19,200               -                   (2,000)         17,200      15,015         2,185     18,209
          Supplies                          5,800               -                    2,750           8,550       7,146         1,404      6,036
          Materials                           200               -                     -                200        -              200       -
          Repairs and Maintenance             500               -                     -                500         147           353        259
          Minor Equipment                   1,500               -                     (750)            750        -              750       -
          Expenditure Recovery             (7,500)              -                     -             (7,500)    (10,643)        3,143    (10,288)
                                         1,062,487              -                     -          1,062,487    1,009,423       53,064   1,038,366
                                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                 Schedule of Expenditures - Budget and Actual
                                                                 General Fund
                                                       Year Ended December 31, 2010
                                           With Comparative Totals for Year Ended December 31, 2009


                                                                                             2010

                                           Adopted           Prior               Budget              Final                                    2009
                                            Budget      Reappropriations   Amendments/Transfers     Budget       Actual       Variance        Actual

      Budget & Finance:
          Personnel                          576,670               -                     -            576,670     534,289         42,381       537,175
          Fringe Benefits                    153,866               -                     -            153,866     149,313          4,553       145,102
          Services                            71,300               -                     -             71,300      62,475          8,825        62,134
          Supplies                             3,600               -                     -              3,600       1,533          2,067         3,112
          Materials                              500               -                     -                500        -               500          -
          Repairs and Maintenance              1,450               -                     -              1,450         420          1,030           480
          Minor Equipment                      3,500               -                     -              3,500       1,145          2,355         3,289
          Expenditure Recovery                (6,800)              -                     -             (6,800)     (7,423)           623        (7,176)
                                             804,086               -                     -            804,086     741,752         62,334       744,116

      County Solicitor:




225
          Personnel                         1,193,899              -                   2,525        1,196,424    1,196,416            8       1,169,255
          Fringe Benefits                     442,418              -                 123,625          566,043      431,131      134,912         373,314
          Services                             92,150              -                 (91,110)           1,040        1,544         (504)         11,711
          Supplies                             59,600              -                  (4,365)          55,235       55,234            1          60,991
          Materials                               500              -                    (500)            -            -            -               -
          Repairs and Maintenance               3,950              -                  (2,815)           1,135        1,134            1             750
          Minor Equipment                       9,000              -                  (8,355)             645          641            4           1,230
          Expenditure Recovery                   -                 -                    -                -         (16,904)      16,904         (16,341)
                                            1,801,517              -                   19,005       1,820,522    1,669,196      151,326       1,600,910

      Law Department
        Duquesne University Law Library:
           Services                          465,000               -                     -            465,000     465,000           -          450,000

      Public Defender:
            Personnel                       5,170,810              -                 401,620        5,572,430    5,572,424                6   5,044,939
            Fringe Benefits                 1,819,482              -                 175,721        1,995,203    1,995,195                8   1,781,124
            Services                          409,671              -                  28,025          437,696      437,639               57     442,591
            Supplies                           56,300              -                   1,640           57,940       57,934                6      69,526
            Repairs and Maintenance             1,245              -                   3,290            4,535        4,529                6       1,250
            Minor Equipment                     3,300              -                    (450)           2,850        2,840               10       1,717
                                            7,460,808              -                 609,846        8,070,654    8,070,561               93   7,341,147
                                                                                                                                                           Exhibit A-3 (Page 2 of 26)
                                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                    Schedule of Expenditures - Budget and Actual
                                                                    General Fund
                                                          Year Ended December 31, 2010
                                              With Comparative Totals for Year Ended December 31, 2009


                                                                                                  2010

                                              Adopted             Prior               Budget              Final                                    2009
                                               Budget        Reappropriations   Amendments/Transfers     Budget        Actual        Variance      Actual
                                                                                                                                                                Exhibit A-3 (Page 3 of 26)




      Minority/Women's Business Enterprise:
            Personnel                            296,181                -                     -            296,181       261,353         34,828     286,948
            Fringe Benefits                       81,698                -                     -             81,698        69,383         12,315      79,584
            Services                              73,665                -                    3,658          77,323        70,946          6,377      67,052
            Supplies                               6,808                -                      505           7,313         6,091          1,222       4,641
            Repairs and Maintenance                2,645                -                     (505)          2,140         1,742            398       1,305
            Minor Equipment                        3,836                -                   (3,658)            178           178           -          5,009
                                                 464,833                -                     -            464,833       409,693         55,140     444,539

      Human Resources:
          Personnel                              914,422                -                  (49,860)        864,562       861,850          2,712     810,855
          Fringe Benefits                        302,084                -                   33,590         335,674       335,157            517     294,378




226
          Services                                88,350                -                   16,270         104,620       104,318            302     106,746
          Supplies                                 5,250                -                     -              5,250         3,857          1,393       3,286
          Minor Equipment                          2,500                -                     -              2,500          -             2,500       1,014
          Expenditure Recovery                      -                   -                     -               -           (7,960)         7,960      (7,695)
                                               1,312,606                -                     -          1,312,606     1,297,222         15,384   1,208,584

      Administrative Services-
        Administration:
          Personnel                               956,801               -                    8,350          965,151       964,361          790       875,664
          Fringe Benefits                         311,054               -                   35,400          346,454       340,805        5,649       291,955
          Services                              7,284,245                165              (527,340)       6,757,070     6,436,817      320,253     6,456,968
          Supplies                                 93,270               -                   35,000          128,270       110,777       17,493        89,152
          Materials                                 3,500               -                     -               3,500           925        2,575         2,384
          Repairs and Maintenance                 145,406               -                      500          145,906       132,925       12,981       120,577
          Minor Equipment                          29,500               -                   (2,570)          26,930        10,901       16,029        73,075
          Expenditure Recovery                 (2,840,481)              -                     -          (2,840,481)   (2,329,625)    (510,856)   (2,414,410)
                                               5,983,295                165               (450,660)      5,532,800     5,667,886      (135,086)   5,495,365
                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                Schedule of Expenditures - Budget and Actual
                                                                General Fund
                                                      Year Ended December 31, 2010
                                          With Comparative Totals for Year Ended December 31, 2009


                                                                                             2010

                                          Adopted             Prior               Budget             Final                                    2009
                                           Budget        Reappropriations   Amendments/Transfers    Budget        Actual        Variance      Actual

      Administrative Services-
        Property Assessment:
           Personnel                       2,983,594                -                 (156,570)     2,827,024     2,788,846         38,178   2,796,879
           Fringe Benefits                 1,285,202                -                  (72,180)     1,213,022     1,211,437          1,585   1,207,977
           Services                          883,212                -                  962,522      1,845,734     1,824,996         20,738   1,037,248
           Supplies                           48,300                -                   29,680         77,980        68,198          9,782      36,514
           Materials                             600                -                     -               600           393            207         220
           Repairs and Maintenance             7,500                -                   (5,000)         2,500           995          1,505       2,474
           Minor Equipment                     1,750                -                   30,000         31,750        31,029            721        -
                                           5,210,158                -                 788,452       5,998,610     5,925,894         72,716   5,081,312

      Administrative Services-




227
        Management Information Systems:
          Personnel                         4,044,292              -                  (109,942)      3,934,350     3,934,341            9     3,663,189
          Fringe Benefits                   1,274,415              -                    10,090       1,284,505     1,281,643        2,862     1,169,520
          Services                          2,128,368            73,192                (70,000)      2,131,560     1,642,153      489,407     1,702,960
          Supplies                             91,104              -                   (35,000)         56,104        45,412       10,692        34,869
          Materials                            54,000              -                   (13,000)         41,000        12,295       28,705         6,468
          Repairs and Maintenance             544,844              -                    50,000         594,844       556,401       38,443       332,434
          Minor Equipment                     150,000              -                   (17,950)        132,050       106,662       25,388        34,218
          Expenditure Recovery             (2,600,000)             -                      -         (2,600,000)   (2,028,868)    (571,132)   (1,723,657)
                                           5,687,023             73,192               (185,802)     5,574,413     5,550,039         24,374   5,220,001

      Administrative Services-
        Purchasing and Supplies:
          Personnel                          389,721                -                     -           389,721       339,056         50,665     334,544
          Fringe Benefits                    114,828                -                     -           114,828       114,571            257     103,717
          Services                           138,850                -                  (44,500)        94,350        66,407         27,943     102,933
          Supplies                             4,125                -                     -             4,125         3,557            568       3,250
          Materials                              450                -                     -               450          -               450        -
          Repairs and Maintenance                350                -                     -               350          -               350        -
          Minor Equipment                      2,000                -                   (2,000)          -             -              -          3,446
                                             650,324                -                  (46,500)       603,824       523,591         80,233     547,890
                                                                                                                                                           Exhibit A-3 (Page 4 of 26)
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2010
                                     With Comparative Totals for Year Ended December 31, 2009


                                                                                      2010

                                     Adopted           Prior               Budget             Final                               2009
                                      Budget      Reappropriations   Amendments/Transfers    Budget      Actual      Variance     Actual
                                                                                                                                              Exhibit A-3 (Page 5 of 26)




      Administrative Services-
        Elections:
           Personnel                  1,376,077              -                   15,440      1,391,517   1,390,413        1,104   1,396,748
           Fringe Benefits              668,027              -                     -           668,027     663,316        4,711     634,366
           Services                   3,014,500              -                    7,740      3,022,240   3,022,233            7   3,066,688
           Supplies                      72,600              -                  (15,440)        57,160      50,711        6,449      67,702
           Materials                      2,500              -                     -             2,500         444        2,056          44
           Repairs and Maintenance        2,000              -                    1,000          3,000       2,878          122         292
           Minor Equipment                 -                 -                    1,000          1,000         610          390      17,838
                                      5,135,704              -                    9,740      5,145,444   5,130,605       14,839   5,183,678

      Administrative Services-




228
        Property Management:
           Personnel                  1,762,789             -                  (121,040)     1,641,749   1,619,194       22,555   1,504,347
           Fringe Benefits              694,934             -                    24,540        719,474     718,632          842     644,394
           Services                     111,640             -                    12,000        123,640     117,195        6,445     180,228
           Supplies                      65,600              524                 (5,000)        61,124      59,008        2,116      48,562
           Materials                      3,800             -                      -             3,800       1,784        2,016       3,621
           Repairs and Maintenance       99,750             -                      -            99,750      77,394       22,356      77,015
           Minor Equipment               22,000            1,301                (14,000)         9,301       9,218           83      19,210
                                      2,760,513            1,825               (103,500)     2,658,838   2,602,425       56,413   2,477,377

      Non-departmental
        Operating Expenditures
           Personnel                    363,600              -                   (1,900)       361,700     348,200       13,500     756,140
           Fringe Benefits               66,550              -                1,381,710      1,448,260   1,447,957          303   2,300,440
           Services                   5,611,212              -                  972,600      6,583,812   6,583,298          514   6,416,048
           Contingency                   50,000              -                  (20,140)        29,860      19,963        9,897      20,850
                                      6,091,362              -                2,332,270      8,423,632   8,399,418       24,214   9,493,478
                                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                                             Schedule of Expenditures - Budget and Actual
                                                             General Fund
                                                   Year Ended December 31, 2010
                                       With Comparative Totals for Year Ended December 31, 2009


                                                                                          2010

                                       Adopted            Prior               Budget              Final                                    2009
                                        Budget       Reappropriations   Amendments/Transfers     Budget         Actual       Variance      Actual

      Controller:
           Personnel                    4,416,618               -                   58,120        4,474,738     4,244,684      230,054     4,009,129
           Fringe Benefits              1,565,536               -                  (11,050)       1,554,486     1,451,015      103,471     1,375,651
           Services                       494,578               -                  (63,060)         431,518       430,889          629       440,579
           Supplies                        45,400                55                  3,860           49,315        48,335          980        32,935
           Materials                          500              -                     1,500            2,000           650        1,350          -
           Repairs and Maintenance         91,500              -                      (370)          91,130        91,127            3        72,846
           Minor Equipment                 90,330             6,490                 11,000          107,820        43,437       64,383       104,773
           Expenditure Recovery          (403,000)             -                      -            (403,000)     (341,916)     (61,084)     (323,141)
                                        6,301,462             6,545                   -           6,308,007     5,968,221      339,786     5,712,772

      Medical Examiner:




229
           Personnel                    4,969,373              -                  (101,470)       4,867,903     4,867,893            10    4,777,689
           Fringe Benefits              1,771,584              -                    94,650        1,866,234     1,865,351           883    1,741,553
           Services                       705,343              -                     9,592          714,935       714,721           214      223,574
           Supplies                       466,390            14,725                 15,780          496,895       496,712           183      481,864
           Materials                          200              -                       (70)             130           121             9          254
           Repairs and Maintenance        199,900              -                    61,370          261,270       261,266             4      212,929
           Minor Equipment                 34,000              -                   (20,790)          13,210        13,207             3       54,868
                                        8,146,790            14,725                 59,062        8,220,577     8,219,271         1,306    7,492,731

      District Attorney:
             Personnel                  9,662,653              -                    20,950        9,683,603     9,683,602            1     9,272,017
             Fringe Benefits            3,075,507              -                    72,510        3,148,017     3,146,601        1,416     2,872,911
             Services                   1,223,237             5,055                (33,580)       1,194,712     1,089,721      104,991     1,054,016
             Supplies                      87,750              -                   (32,300)          55,450        55,326          124        94,634
             Repairs and Maintenance        8,000               149                  1,000            9,149         9,062           87         7,844
             Minor Equipment               53,740             5,300                  1,070           60,110        64,230       (4,120)       41,889
                                       14,110,887            10,504                 29,650       14,151,041    14,048,542      102,499    13,343,311
                                                                                                                                                        Exhibit A-3 (Page 6 of 26)
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2010
                                      With Comparative Totals for Year Ended December 31, 2009


                                                                                         2010

                                      Adopted           Prior                Budget              Final                               2009
                                                                                                                                                 Exhibit A-3 (Page 7 of 26)




                                       Budget      Reappropriations    Amendments/Transfers     Budget      Actual      Variance     Actual

      Real Estate:
            Personnel                  1,954,421              -                      -          1,954,421   1,921,214      33,207    1,867,471
            Fringe Benefits              760,341              -                      -            760,341     733,495      26,846      709,831
            Services                     292,861              -                      -            292,861     130,057     162,804      176,943
            Supplies                      36,000              -                      -             36,000      27,433       8,567       24,699
            Materials                      1,100              -                      -              1,100        -          1,100          112
            Repairs and Maintenance       17,900              -                      -             17,900       5,532      12,368        2,042
            Minor Equipment                8,475              -                      -              8,475        -          8,475        1,824
                                       3,071,098              -                      -          3,071,098   2,817,731     253,367    2,782,922




230
      Court Records-
        Administration:
           Personnel                    359,038               -                      -            359,038    318,147        40,891    323,010
           Fringe Benefits               76,525               -                      -             76,525     69,730         6,795     77,267
           Services                     259,501               -                      -            259,501    223,249        36,252    281,691
           Supplies                      61,500               -                      -             61,500     24,396        37,104     52,292
           Materials                        410               -                      -                410          20          390        409
           Repairs and Maintenance       15,190               -                      -             15,190      10,875        4,315     13,630
           Minor Equipment                  994                   70                 -              1,064         418          646        859
                                        773,158                   70                 -            773,228    646,835      126,393     749,158

      Court Records-
        Civil:
           Personnel                   2,010,320              -                    20,720       2,031,040   2,031,033            7   1,881,227
           Fringe Benefits               829,811              -                   (29,870)        799,941     798,882        1,059     783,001
                                       2,840,131              -                    (9,150)      2,830,981   2,829,915        1,066   2,664,228
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2010
                                     With Comparative Totals for Year Ended December 31, 2009


                                                                                    2010

                                     Adopted           Prior             Budget             Final                               2009
                                      Budget      Reappropriations Amendments/Transfers    Budget      Actual      Variance     Actual

      Court Records-
        Wills/Orphan's Court:
           Personnel                  1,323,919            -                  (61,670)     1,262,249   1,205,201       57,048   1,276,493
           Fringe Benefits              626,910            -                    9,890        636,800     636,341          459     581,417
                                      1,950,829            -                  (51,780)     1,899,049   1,841,542       57,507   1,857,910

      Court Records-
        Criminal:




231
           Personnel                  1,429,745            -                    -          1,429,745   1,407,029       22,716   1,295,772
           Fringe Benefits              592,623            -                  59,540         652,163     651,423          740     552,951
                                      2,022,368            -                  60,930       2,083,298   2,058,452       24,846   1,848,723


      Treasurer:
           Personnel                  2,849,537            -                   84,420      2,933,957   2,933,949            8   2,754,114
           Fringe Benefits            1,138,378            -                   37,080      1,175,458   1,173,981        1,477   1,080,379
           Services                   1,526,372          71,132               (52,810)     1,544,694   1,543,636        1,058   1,654,490
           Supplies                      27,050            -                     -            27,050      26,136          914      25,353
           Materials                        750            -                     -               750         549          201         283
           Repairs and Maintenance       54,400            -                  (12,940)        41,460      36,870        4,590      51,971
           Minor Equipment               78,708            -                  (68,690)        10,018       5,883        4,135      22,407
                                      5,675,195          71,132               (12,940)     5,733,387   5,721,004       12,383   5,588,997
                                                                                                                                            Exhibit A-3 (Page 8 of 26)
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2010
                                      With Comparative Totals for Year Ended December 31, 2009


                                                                                       2010

                                      Adopted           Prior               Budget             Final                                   2009
                                       Budget      Reappropriations   Amendments/Transfers    Budget        Actual      Variance       Actual
                                                                                                                                                   Exhibit A-3 (Page 9 of 26)




      Sheriff:
            Personnel                  9,679,379             -                  384,790       10,064,169    9,728,104     336,065      9,059,503
            Fringe Benefits            3,405,283             -                   83,470        3,488,753    3,330,677     158,076      3,327,052
            Services                     369,242             -                   13,160          382,402      381,305       1,097        361,609
            Supplies                     132,454            2,512               (41,530)          93,436       83,921       9,515         94,833
            Materials                      2,500             -                   (2,260)             240          235           5           -
            Repairs and Maintenance       49,300             -                    1,540           50,840       50,838           2         39,943
            Minor Equipment                5,500             -                   (5,500)            -            -           -            10,432
                                      13,643,658            2,512               433,670       14,079,840   13,575,080     504,760     12,893,372

      Court of Common Pleas-
        Judicial Support:




232
           Personnel                   8,709,470              -                  83,398        8,792,868    8,792,868         -        8,488,450
           Fringe Benefits             3,429,348              -                 155,420        3,584,768    3,584,759            9     3,325,212
           Services                    4,565,187                5               360,846        4,926,038    4,926,892         (854)    5,139,326
           Supplies                      210,000            9,827                 6,137          225,964      225,964         -          182,102
           Materials                       3,000             -                      848            3,848        2,832        1,016           531
           Repairs and Maintenance        27,000             -                    6,286           33,286       33,285            1        22,997
           Minor Equipment                56,000             -                  (14,270)          41,730       41,727            3         7,356
                                      17,000,005            9,832               598,665       17,608,502   17,608,327          175    17,165,974

      Court of Common Pleas-
        Jury Management:
           Personnel                    196,820               -                   16,078        212,898      212,898          -         187,829
           Fringe Benefits               69,008               -                    5,985         74,993       74,987             6       60,930
           Services                      94,000               -                     (652)        93,348       93,203           145       91,197
           Supplies                      19,500               -                   (3,987)        15,513       15,513          -             375
           Minor Equipment                1,500               -                   (1,500)          -            -             -            -
                                        380,828               -                   15,924        396,752      396,601           151      340,331
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2010
                                     With Comparative Totals for Year Ended December 31, 2009


                                                                                      2010

                                     Adopted           Prior               Budget             Final                                  2009
                                      Budget      Reappropriations   Amendments/Transfers    Budget      Actual      Variance        Actual

      Court of Common Pleas-
        Criminal Division:
           Personnel                  2,009,173              -                 170,647       2,179,820   2,179,819            1      2,035,192
           Fringe Benefits              703,553              -                  66,722         770,275     770,274            1        716,050
           Services                   1,873,700              -                  99,341       1,973,041   1,972,242          799      1,812,025
           Supplies                     107,000              -                  11,942         118,942     118,932           10        101,126
           Materials                      5,000              -                    (118)          4,882       4,881            1           -
           Repairs and Maintenance        5,000              -                    (339)          4,661       4,660            1          1,192
           Minor Equipment                6,000              -                  (6,000)           -           -            -             2,070
                                      4,709,426              -                 342,195       5,051,621   5,050,808          813      4,667,655

      Court of Common Pleas-




233
        Adult Probation:
           Personnel                  4,497,035              -                 121,049       4,618,084   4,618,084         -         4,310,975
           Fringe Benefits            1,602,675              -                  10,840       1,613,515   1,613,514            1      1,574,218
           Services                     812,950              -                 (88,220)        724,730     724,058          672        731,728
           Supplies                      26,100              -                  (4,349)         21,751      21,751         -            26,199
           Materials                        600              -                    (527)             73          73         -              -
           Repairs and Maintenance       15,000              -                 (11,085)          3,915       3,914            1          1,645
           Minor Equipment                3,000              -                    (959)          2,041       2,039            2          2,557
                                      6,957,360              -                   26,749      6,984,109   6,983,433          676      6,647,322

      Court of Common Pleas-
        Pre-Trial Service:
           Personnel                   876,177               -                   26,744        902,921    902,920                1    865,713
           Fringe Benefits             290,360               -                    5,474        295,834    295,833                1    285,813
           Services                    347,000               -                  (20,171)       326,829    326,780               49    329,957
           Supplies                      6,000               -                     (750)         5,250      5,248                2      6,266
           Repairs and Maintenance         500               -                     (500)          -          -             -             -
           Minor Equipment               3,000               -                   (1,090)         1,910      1,880               30      3,338
                                      1,523,037              -                    9,707      1,532,744   1,532,661              83   1,491,087
                                                                                                                                                 Exhibit A-3 (Page 10 of 26)
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2010
                                     With Comparative Totals for Year Ended December 31, 2009


                                                                                      2010

                                     Adopted           Prior               Budget             Final                                    2009
                                      Budget      Reappropriations   Amendments/Transfers    Budget        Actual      Variance        Actual
                                                                                                                                                   Exhibit A-3 (Page 11 of 26)




      Court of Common Pleas-
        Civil Division:
           Personnel                  1,566,640              -                   55,654       1,622,294    1,622,294         -         1,578,378
           Fringe Benefits              505,833              -                   50,077         555,910      555,909            1        492,640
           Services                     661,500              -                 (160,406)        501,094      501,313         (219)       548,633
           Supplies                      81,600              -                   17,280          98,880       98,871            9         42,800
           Repairs and Maintenance        4,500              -                      367           4,867        4,933          (66)         1,034
           Minor Equipment                3,000              -                   (2,715)            285         -             285         16,967
                                      2,823,073              -                  (39,743)      2,783,330    2,783,320              10   2,680,452

      Court of Common Pleas-
        Family - Adult:




234
           Personnel                    337,949              -                 123,547          461,496      461,495               1     369,668
           Fringe Benefits              149,648              -                  20,155          169,803      169,802               1     120,705
           Services                   2,069,409              -                 (76,965)       1,992,444    1,992,440               4   2,051,832
           Supplies                      15,300              -                  (3,488)          11,812       11,811               1       9,160
           Repairs and Maintenance          500              -                    (160)             340          340         -              -
           Minor Equipment                  700              -                    (700)            -            -            -              -
                                      2,573,506              -                   62,389       2,635,895    2,635,888               7   2,551,365

      Court of Common Pleas-
        Family - Juvenile:
           Personnel                  6,898,218             -                    98,442       6,996,660    6,996,659            1      6,590,508
           Fringe Benefits            2,257,319             -                   (10,801)      2,246,518    2,246,518            -      2,180,884
           Services                   1,054,100             -                  (197,843)        856,257      855,414          843        936,232
           Supplies                      96,500           19,760                 (6,590)        109,670      109,666            4         89,188
           Materials                      1,600             -                      (120)          1,480        1,479            1          3,001
           Repairs and Maintenance       59,600             -                   (14,325)         45,275       45,271            4         47,581
           Minor Equipment                5,000             -                    (2,083)          2,917        2,916            1          7,258
                                     10,372,337           19,760               (133,320)     10,258,777   10,257,923          854      9,854,652
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2010
                                      With Comparative Totals for Year Ended December 31, 2009


                                                                                         2010

                                       Adopted           Prior               Budget               Final                                     2009
                                        Budget      Reappropriations   Amendments/Transfers      Budget         Actual      Variance        Actual

      Court of Common Pleas-
        Orphans' Court:
           Personnel                     785,060               -                   24,385          809,445       809,445          -          778,969
           Fringe Benefits               212,246               -                   (3,126)         209,120       209,120          -          200,700
           Services                      476,000               -                  (14,860)         461,140       460,677           463       470,233
           Supplies                       15,250               -                    2,691           17,941        17,941          -           20,274
           Repairs and Maintenance         2,500               -                     (764)           1,736         1,736          -            1,248
           Minor Equipment                 6,750               -                   (5,031)           1,719         1,719          -            4,480
                                        1,497,806              -                    3,295         1,501,101     1,500,638          463      1,475,904

      Court of Common Pleas-
        Minor Judiciary:




235
           Personnel                    4,914,078              -                  242,100         5,156,178     5,156,178         -         4,949,403
           Fringe Benefits              2,139,543              -                   72,239         2,211,782     2,211,782         -         2,099,197
           Services                     2,455,074              -                 (145,905)        2,309,169     2,309,525         (356)     2,412,981
           Supplies                       243,104              -                    1,640           244,744       244,743            1        222,095
           Repairs and Maintenance          8,400              -                   11,260            19,660        19,659            1          7,410
           Minor Equipment                  7,500              -                   (1,770)            5,730         5,730         -             7,568
                                        9,767,699              -                 179,564          9,947,263     9,947,617         (354)     9,698,654

      Vacant Property Review Board:
           Other operating               100,000               -                     -             100,000         55,714       44,286         50,454


      Capital Lease:
           Other operating                   -                 -                     -                 -             -            -         7,678,839

           Total General Government   162,509,515          211,265              4,547,718       167,268,498   165,043,845   2,224,653     166,708,068
                                                                                                                                                        Exhibit A-3 (Page 12 of 26)
                                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                              Schedule of Expenditures - Budget and Actual
                                                              General Fund
                                                    Year Ended December 31, 2010
                                        With Comparative Totals for Year Ended December 31, 2009


                                                                                          2010

                                        Adopted           Prior               Budget              Final                                   2009
                                         Budget      Reappropriations   Amendments/Transfers     Budget        Actual       Variance      Actual
                                                                                                                                                       Exhibit A-3 (Page 13 of 26)




      Public Safety:

      Emergency Management:
          Personnel                       921,454              -                      -            921,454      905,765         15,689     827,410
          Fringe Benefits                 446,573              -                      -            446,573      350,833         95,740     401,719
          Services                        728,935              -                      -            728,935      716,446         12,489     672,178
          Supplies                        138,033             7,925                   -            145,958       82,154         63,804      91,494
          Materials                         7,850              -                      -              7,850        5,503          2,347       6,221
          Repairs and Maintenance          76,285             9,021                   -             85,306       40,337         44,969      29,057
          Minor Equipment                  83,735            13,644                   -             97,379       41,225         56,154      21,922
                                         2,402,865           30,590                   -           2,433,455    2,142,263      291,192     2,050,001




236
      Jail:
              Personnel                 30,120,234             -                  (158,090)      29,962,144   29,959,116        3,028    29,655,424
              Fringe Benefits           10,758,114             -                    36,640       10,794,754   10,785,870        8,884    10,167,029
              Services                  14,361,759              295             (2,049,310)      12,312,744   12,374,122      (61,378)   12,085,705
              Supplies                   1,043,500            8,827                160,000        1,212,327    1,156,262       56,065     1,045,643
              Materials                    157,500             -                    46,760          204,260      100,887      103,373       127,636
              Repairs and Maintenance      179,000             -                      -             179,000      139,132       39,868       153,033
              Minor Equipment              100,000             -                   (20,000)          80,000       42,455       37,545        49,628
                                        56,720,107            9,122             (1,984,000)      54,745,229   54,557,844      187,385    53,284,098

      County Police-
        Police:
           Personnel                    14,367,158              -                 (899,440)      13,467,718   13,438,351       29,367    13,225,404
           Fringe Benefits               3,383,421              -                  159,310        3,542,731    3,505,384       37,347     3,286,416
           Services                        638,486              -                    3,730          642,216      617,614       24,602       546,168
           Supplies                         96,884              -                     -              96,884       58,232       38,652        74,632
           Materials                           500              -                     -                 500          271          229          -
           Repairs and Maintenance          98,500              -                     -              98,500       80,159       18,341        93,641
           Minor Equipment                  28,000              -                     -              28,000       24,549        3,451        34,352
           Expenditure Recovery               -                 -                     -                -        (518,920)     518,920      (501,632)
                                        18,612,949              -                 (736,400)      17,876,549   17,205,640      670,909    16,758,981
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2010
                                     With Comparative Totals for Year Ended December 31, 2009


                                                                                       2010

                                     Adopted           Prior               Budget              Final                                  2009
                                      Budget      Reappropriations   Amendments/Transfers     Budget        Actual      Variance      Actual

      County Police-
        Building Guard:
           Personnel                  1,532,709              -                 (424,650)       1,108,059    1,107,927         132     1,010,675
           Fringe Benefits              616,810              -                   20,150          636,960      536,212     100,748       491,659
           Services                       3,750              -                     -               3,750        2,264       1,486         3,109
           Supplies                      30,300              -                   (2,238)          28,062       14,450      13,612        12,691
           Repairs and Maintenance       40,650              -                     -              40,650       29,092      11,558        22,338
           Minor Equipment                2,400              -                   (1,402)             998         -            998           716
                                      2,226,619              -                 (408,140)       1,818,479    1,689,945     128,534     1,541,188

      County Police-
        Police Academy:




237
           Personnel                   436,341              -                    18,980         455,321      455,315             6     443,374
           Fringe Benefits             105,673              -                      -            105,673       96,000         9,673      98,270
           Services                    245,499              -                      -            245,499      150,867        94,632     157,623
           Supplies                     60,000             9,350                   -             69,350       61,943         7,407      47,934
           Materials                     8,330                25                   -              8,355        7,644           711       5,065
           Repairs and Maintenance       8,000              -                      -              8,000        7,380           620       4,467
           Minor Equipment               1,600              -                      -              1,600          940           660       2,874
                                       865,443             9,375                 18,980         893,798      780,089      113,709      759,607

      County Police-
        Parks:
           Personnel                  3,674,661              -                     -           3,674,661    4,053,709    (379,048)    3,623,142
           Fringe Benefits              811,373              -                     -             811,373      953,973    (142,600)      820,362
                                      4,486,034              -                     -           4,486,034    5,007,682    (521,648)    4,443,504

           Total Public Safety       85,314,017           49,087             (3,109,560)      82,253,544   81,383,463     870,081    78,837,379
                                                                                                                                                  Exhibit A-3 (Page 14 of 26)
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2010
                                      With Comparative Totals for Year Ended December 31, 2009


                                                                                       2010

                                      Adopted           Prior               Budget             Final                               2009
                                       Budget      Reappropriations   Amendments/Transfers    Budget      Actual      Variance     Actual
                                                                                                                                               Exhibit A-3 (Page 15 of 26)




      Public Works:

      Public Works-
        Administration:
            Personnel                  1,089,197              -                  (91,140)       998,057    998,049             8    931,437
            Fringe Benefits              429,357              -                  (37,740)       391,617    391,321           296    410,035
            Services                     506,900              -                 (338,610)       168,290    167,915           375    512,237
            Supplies                      48,800              -                  (15,940)        32,860     32,854             6     30,191
            Materials                     29,000               590                (8,535)        21,055     20,116           939     11,677
            Repairs and Maintenance       64,800              -                  (56,940)         7,860      7,859             1      5,115
            Minor Equipment               28,250              -                  (20,200)         8,050      4,519         3,531     14,103
                                       2,196,304              590               (569,105)     1,627,789   1,622,633        5,156   1,914,795




238
      Public Works-
        Engineering:
            Personnel                   897,988               -                 116,180       1,014,168    617,275      396,893     882,588
            Fringe Benefits             424,023               -                 (30,950)        393,073    205,111      187,962     308,528
                                       1,322,011              -                   85,230      1,407,241    822,386      584,855    1,191,116

      Public Works-
        Maintenance:
            Personnel                  3,416,229             -                  996,357       4,412,586   4,411,013       1,573    3,703,996
            Fringe Benefits            1,814,393             -                  310,640       2,125,033   2,125,028           5    1,990,277
            Services                     721,700              395                (5,087)        717,008     722,781      (5,773)     781,568
            Supplies                      88,800             -                   10,115          98,915      99,172        (257)      75,038
            Materials                  1,166,650            2,175               722,000       1,890,825   1,786,511     104,314      930,656
            Repairs and Maintenance       79,650               65               (26,660)         53,055      52,117         938       78,791
            Minor Equipment               38,500             -                   (6,350)         32,150      32,141           9       31,538
                                       7,325,922            2,635              2,001,015      9,329,572   9,228,763     100,809    7,591,864

      Public Works-
        Parks Maint:
            Personnel                  3,884,121              -                   65,490      3,949,611   3,932,698       16,913   3,840,300
            Fringe Benefits            2,037,297              -                 (109,745)     1,927,552   1,919,658        7,894   1,884,419
                                       5,921,418              -                  (44,255)     5,877,163   5,852,356       24,807   5,724,719
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2010
                                      With Comparative Totals for Year Ended December 31, 2009


                                                                                       2010

                                      Adopted           Prior               Budget             Final                                  2009
                                       Budget      Reappropriations   Amendments/Transfers    Budget        Actual      Variance      Actual

      Public Works-
        Facilities Management:
            Personnel                  3,884,029             -                    81,725       3,965,754    3,827,974     137,780     3,856,743
            Fringe Benefits            1,768,463             -                  (154,265)      1,614,198    1,551,500      62,698     1,421,205
            Services                   2,282,600           98,564               (603,080)      1,778,084    1,777,461         623     2,307,302
            Supplies                     941,700             -                   150,800       1,092,500    1,089,732       2,768       834,546
            Materials                    197,500            4,711                (49,100)        153,111       88,237      64,874       184,987
            Repairs and Maintenance      171,500             -                  (165,765)          5,735        5,730           5         9,363
            Minor Equipment               13,500             -                   (11,090)          2,410        2,406           4         1,687
                                       9,259,292          103,275               (750,775)      8,611,792    8,343,040     268,752     8,615,833

           Total Public Works         26,024,947          106,500               722,110       26,853,557   25,869,178     984,379    25,038,327




239
      Health and Welfare:

      Administrative Services-
        Veterans Affairs:
          Personnel                     125,129               -                      610        125,739      125,735             4     125,610
          Fringe Benefits                37,180               -                    1,660         38,840       38,790            50      35,429
          Services                      371,712               -                     (700)       371,012      369,719         1,293     381,817
          Supplies                        2,125               -                      700          2,825        1,711         1,114       1,557
          Materials                     115,000               -                  (14,000)       101,000      100,996             4     114,997
          Repairs and Maintenance         1,500               -                     -             1,500        1,174           326         981
           Minor Equipment                 -                  -                     -              -            -             -            340
                                        652,646               -                  (11,730)       640,916      638,125         2,791     660,731
                                                                                                                                                  Exhibit A-3 (Page 16 of 26)
                                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                                               Schedule of Expenditures - Budget and Actual
                                                               General Fund
                                                     Year Ended December 31, 2010
                                         With Comparative Totals for Year Ended December 31, 2009


                                                                                          2010

                                         Adopted           Prior               Budget             Final                                  2009
                                          Budget      Reappropriations   Amendments/Transfers    Budget        Actual      Variance      Actual
                                                                                                                                                     Exhibit A-3 (Page 17 of 26)




      Health-
        Administration:
           Personnel                      2,344,052             -                  (122,000)      2,222,052    2,190,109      31,943     2,109,925
           Fringe Benefits                  835,943             -                     2,660         838,603      833,849       4,754       766,282
           Services                         842,550              591                   -            843,141      620,020     223,121       705,774
           Supplies                          63,270             -                      -             63,270       55,670       7,600        50,507
           Materials                         30,940              198                   -             31,138       28,533       2,605        22,441
           Repairs and Maintenance           64,800             -                      -             64,800       37,458      27,342        28,506
           Minor Equipment                  104,400           40,860                   -            145,260       64,870      80,390        90,517
                                          4,285,955           41,649               (119,340)      4,208,264    3,830,509     377,755     3,773,952

      Health-




240
        Medical Services:
           Personnel                      2,400,456             -                  (281,100)      2,119,356    2,119,236         120     2,053,191
           Fringe Benefits                  895,578             -                   (45,830)        849,748      775,200      74,548       801,306
           Services                      12,089,375             -                    29,350      12,118,725   11,967,528     151,197    10,312,300
           Supplies                         191,000            3,381                   -            194,381      163,070      31,311       140,749
           Materials                          3,210             -                      -              3,210          311       2,899           342
           Repairs and Maintenance           20,050             -                    45,000          65,050       45,999      19,051        10,204
           Minor Equipment                    7,900             -                      -              7,900        6,695       1,205        10,613
                                         15,607,569            3,381               (252,580)     15,358,370   15,078,039     280,331    13,328,705

      Health-
        Environmental Health Services:
           Personnel                      4,310,444             -                   (29,300)      4,281,144    4,281,125           19    4,093,640
           Fringe Benefits                1,585,609             -                    43,170       1,628,779    1,627,135        1,644    1,559,030
           Services                         922,675             -                      -            922,675      833,077       89,598      786,682
           Supplies                          90,800              566                   -             91,366       81,312       10,054       85,338
           Materials                         14,325               85                   -             14,410       10,425        3,985       13,962
           Repairs and Maintenance           70,750             -                      -             70,750        8,479       62,271       25,813
           Minor Equipment                   59,200           24,990                   -             84,190       77,646        6,544       52,471
                                          7,053,803           25,641                 13,870       7,093,314    6,919,199     174,115     6,616,936
                                                           COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                         Schedule of Expenditures - Budget and Actual
                                                                         General Fund
                                                               Year Ended December 31, 2010
                                                   With Comparative Totals for Year Ended December 31, 2009


                                                                                                          2010

                                                    Adopted             Prior               Budget                 Final                                              2009
                                                     Budget        Reappropriations   Amendments/Transfers        Budget            Actual            Variance        Actual

      Health-
        Laboratories:
           Personnel                                   653,107               -                      -               653,107          598,498              54,609       581,051
           Fringe Benefits                             237,862               -                   (16,500)           221,362          213,103               8,259       198,805
           Services                                    121,943               -                      -               121,943           96,029              25,914       128,774
           Supplies                                    142,800              2,893                 11,100            156,793          145,160              11,633       185,204
           Materials                                       300               -                      -                   300              210                  90           299
           Repairs and Maintenance                      20,200               -                      -                20,200            9,557              10,643         4,628
           Minor Equipment                               2,750               -                     5,350              8,100            8,065                  35         3,412
                                                     1,178,962              2,893                       (50)       1,181,805        1,070,622           111,183       1,102,173

      Human Services-




241
        Behavioral Health/Mental Retardation
         Drug and Alcohol - Administration:
          Services                                   4,800,000                -                     -              4,800,000             -       **   4,800,000            -
                                                     4,800,000                -                     -              4,800,000             -            4,800,000            -

      Human Services-
        Children, Youth and Family Services:
           Personnel                                22,448,527               -                      -             22,448,527       22,318,090            130,437     21,373,293
           Fringe Benefits                           8,008,545               -                      -              8,008,545        8,038,717            (30,172)     7,603,394
           Services                                139,035,612             30,533             (1,821,000)        137,245,145      132,229,294          5,015,851    131,295,105
           Supplies                                  2,690,179               -                    40,000           2,730,179        1,832,114            898,065      2,868,696
           Materials                                     2,500               -                    45,000              47,500           44,646              2,854           -
           Repairs and Maintenance                     112,712               -                    40,000             152,712          158,224             (5,512)       104,862
           Minor Equipment                             554,326               -                    75,000             629,326          515,318            114,008        560,999
           Expenditure Recovery                    (53,821,348)              -                      -            (53,821,348)     (55,759,447)         1,938,099    (50,840,677)
           Contributed Services                     62,239,307               -                      -             62,239,307       66,148,462         (3,909,155)    60,323,241
                                                   181,270,360             30,533             (1,621,000)        179,679,893      175,525,418         4,154,475     173,288,913

                                               ** Expenditures in 2010 of $4,563,288 were reclassified as other financing uses.
                                                                                                                                                                                   Exhibit A-3 (Page 18 of 26)
                                                          COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                        Schedule of Expenditures - Budget and Actual
                                                                        General Fund
                                                              Year Ended December 31, 2010
                                                  With Comparative Totals for Year Ended December 31, 2009


                                                                                                       2010

                                                   Adopted             Prior               Budget               Final                                             2009
                                                    Budget        Reappropriations   Amendments/Transfers      Budget            Actual            Variance       Actual
                                                                                                                                                                              Exhibit A-3 (Page 19 of 26)




      Human Services-
        Area Agency on Aging:
          Services                                    550,000                -                     -             550,000              -      ***     550,000           -
                                                      550,000                -                     -             550,000              -              550,000           -

      John J. Kane Regional Health Centers-
        Glen-Hazel:
           Personnel                                8,464,030                -                  281,650        8,745,680         8,745,675                  5     8,456,603
           Fringe Benefits                          3,405,415                -                   62,560        3,467,975         3,467,889                 86     3,412,989
           Services                                 3,665,979                 81               (526,940)       3,139,120         3,160,973            (21,853)    3,430,283
           Supplies                                   721,650             28,378                185,980          936,008           902,694             33,314       762,389
           Materials                                  107,500              1,094                (16,800)          91,794            85,201              6,593        73,891




242
           Repairs and Maintenance                    144,350              3,270                (34,000)         113,620           110,159              3,461       109,750
           Minor Equipment                             75,000               -                     7,100           82,100            80,206              1,894        34,704
                                                   16,583,924             32,823                (40,450)      16,576,297        16,552,797             23,500    16,280,609

      John J. Kane Regional Health Centers-
        Scott:
           Personnel                               10,865,416               -                  (166,800)      10,698,616        10,698,538                78     10,590,733
           Fringe Benefits                          4,123,675               -                    35,770        4,159,445         4,159,326               119      4,144,465
           Services                                 4,044,678               -                   521,350        4,566,028         4,409,163           156,865      4,401,734
           Supplies                                 1,037,600             72,072                 84,100        1,193,772         1,151,869            41,903      1,103,087
           Materials                                  111,400              1,134                 15,400          127,934           107,278            20,656         98,943
           Repairs and Maintenance                    201,200              1,275                (75,200)         127,275           103,031            24,244        123,332
           Minor Equipment                             75,000               -                   (18,670)          56,330            48,587             7,743         84,154
                                                   20,458,969             74,481               395,950        20,929,400        20,677,792           251,608     20,546,448

                                              *** Expenditures in 2010 of $227,677 were reclassified as other financing uses.
                                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                    Schedule of Expenditures - Budget and Actual
                                                                    General Fund
                                                          Year Ended December 31, 2010
                                              With Comparative Totals for Year Ended December 31, 2009


                                                                                               2010

                                              Adopted           Prior               Budget             Final                                   2009
                                               Budget      Reappropriations   Amendments/Transfers    Budget        Actual      Variance       Actual

      John J. Kane Regional Health Centers-
        McKeesport:
           Personnel                          12,165,543             -                  732,480       12,898,023   12,898,023         -       12,351,794
           Fringe Benefits                     4,955,194             -                  422,870        5,378,064    5,377,999          65      5,149,593
           Services                            5,312,950             -                  250,660        5,563,610    5,760,773    (197,163)     6,150,517
           Supplies                            1,223,150            9,019               307,520        1,539,689    1,487,237      52,452      1,392,861
           Materials                             110,100            4,091                (8,800)         105,391       98,721       6,670        112,560
           Repairs and Maintenance               194,600            4,599                (8,150)         191,049      176,492      14,557        217,082
           Minor Equipment                        75,000             -                  (12,500)          62,500       60,616       1,884         55,812
                                              24,036,537           17,709              1,684,080      25,738,326   25,859,861    (121,535)    25,430,219

      John J. Kane Regional Health Centers-




243
        Ross:
           Personnel                           9,455,392             -                   458,740       9,914,132    9,914,129            3     9,535,331
           Fringe Benefits                     4,087,434             -                   274,500       4,361,934    4,361,824          110     4,151,846
           Services                            3,511,700             -                  (319,820)      3,191,880    3,210,208      (18,328)    3,400,938
           Supplies                              825,750           18,965                 83,830         928,545      895,194       33,351       875,336
           Materials                              84,300              596                 15,100          99,996       88,133       11,863        86,622
           Repairs and Maintenance               166,400              910                  7,200         174,510      240,903      (66,393)      133,750
           Minor Equipment                        75,000            7,346                  4,500          86,846       84,812        2,034        50,940
                                              18,205,976           27,817               524,050       18,757,843   18,795,203      (37,360)   18,234,763

      John J. Kane Regional Health Centers-
        Central Services:
           Personnel                           4,090,539             -                    65,070       4,155,609    4,155,482         127      3,924,523
           Fringe Benefits                     1,855,131             -                   (86,060)      1,769,071    1,765,073       3,998      1,665,933
           Services                            3,200,900            1,844               (806,270)      2,396,474    2,415,243     (18,769)     2,452,493
           Supplies                            7,380,305            8,221               (616,130)      6,772,396    6,668,110     104,286      6,590,816
           Materials                               8,000             -                      (500)          7,500        7,406          94             53
           Repairs and Maintenance                58,000             -                    (3,700)         54,300       54,351         (51)        48,165
           Minor Equipment                       195,000             -                  (143,300)         51,700       51,478         222         65,969
                                              16,787,875           10,065             (1,590,890)     15,207,050   15,117,143       89,907    14,747,952
                                                                                                                                                           Exhibit A-3 (Page 20 of 26)
                                                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                       Schedule of Expenditures - Budget and Actual
                                                                       General Fund
                                                             Year Ended December 31, 2010
                                                 With Comparative Totals for Year Ended December 31, 2009


                                                                                                   2010

                                                 Adopted           Prior               Budget              Final                                  2009
                                                  Budget      Reappropriations   Amendments/Transfers     Budget        Actual      Variance      Actual
                                                                                                                                                              Exhibit A-3 (Page 21 of 26)




      Shuman Juvenile Detention Center:
          Personnel                               7,279,508             -                  (487,928)       6,791,580    6,634,054     157,526     6,893,690
          Fringe Benefits                         2,598,827             -                    16,350        2,615,177    2,615,174           3     2,619,810
          Services                                1,390,350              336                   -           1,390,686    1,399,662      (8,976)    1,211,469
          Supplies                                  165,754           27,615                   -             193,369      167,300      26,069       173,264
          Materials                                 141,900              360                (13,000)         129,260       35,648      93,612        53,084
          Repairs and Maintenance                   108,830             -                      -             108,830       76,843      31,987        96,815
          Minor Equipment                           151,154           15,498                 (3,350)         163,302      111,632      51,670        80,450
                                                 11,836,323           43,809               (487,928)      11,392,204   11,040,313     351,891    11,128,582

      Community Intensive Supervision Program:
          Personnel                               2,843,867              -                     -           2,843,867    2,699,211     144,656     2,574,615




244
          Fringe Benefits                         1,118,865              -                     -           1,118,865    1,023,293      95,572     1,005,683
          Services                                  922,680              -                  (56,000)         866,680      506,326     360,354       547,494
          Supplies                                  360,000                  6                 (400)         359,606      231,928     127,678       203,179
          Materials                                  25,300              -                  (14,600)          10,700        1,101       9,599         2,513
          Repairs and Maintenance                    28,000              -                  (18,125)           9,875        7,039       2,836         6,422
          Minor Equipment                            60,000              -                   89,125          149,125       38,058     111,067          -
                                                  5,358,712                  6                 -           5,358,718    4,506,956     851,762     4,339,906

      Home Detention/Electronic Monitoring:
          Personnel                                580,421               -                     -            580,421      574,670         5,751     545,292
          Fringe Benefits                          213,046               -                     -            213,046      207,640         5,406     190,683
          Services                                 400,500               -                     -            400,500      328,760        71,740     375,088
          Supplies                                  17,000               -                     -             17,000        4,454        12,546       5,831
          Repairs and Maintenance                    4,000               -                     -              4,000         -            4,000        -
          Minor Equipment                           74,500               -                     -             74,500         -           74,500        -
                                                  1,289,467              -                     -           1,289,467    1,115,524     173,943     1,116,894
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2010
                                      With Comparative Totals for Year Ended December 31, 2009


                                                                                         2010

                                       Adopted           Prior               Budget               Final                                     2009
                                        Budget      Reappropriations   Amendments/Transfers      Budget         Actual      Variance        Actual

      Institutional Care:
            Personnel                     235,877              -                     -              235,877       247,700      (11,823)       234,139
            Fringe Benefits                88,286              -                     -               88,286        91,485       (3,199)        87,720
            Services                   27,510,621              -                     -           27,510,621    26,367,701    1,142,920     26,470,375
            Supplies                      162,114              -                     -              162,114       115,980       46,134        147,372
            Repairs and Maintenance           500              -                     -                  500          -             500           -
            Minor Equipment                 2,500              -                     -                2,500          -           2,500           -
                                       27,999,898              -                     -           27,999,898    26,822,866    1,177,032     26,939,606

           Total Health and Welfare   357,956,976          310,807             (1,506,018)      356,761,765   343,550,367   13,211,398    337,536,389

      Culture and Recreation:




245
      Parks:
           Personnel                    2,505,839             -                  306,470          2,812,309     2,812,299           10      2,723,868
           Fringe Benefits                546,791             -                   90,970            637,761       637,753            8        608,723
           Services                     3,488,037            4,680               471,130          3,963,847     4,006,702      (42,855)     3,677,697
           Supplies                       388,616              675                99,315            488,606       472,898       15,708        422,051
           Materials                      579,568            3,075               107,490            690,133       662,090       28,043        501,102
           Repairs and Maintenance        128,140             -                  (18,910)           109,230       109,350         (120)       130,999
           Minor Equipment                178,500              177               (93,190)            85,487        85,485            2         35,967
                                        7,815,491            8,607               963,275          8,787,373     8,786,577          796      8,100,407

      Cooperative Extensions:
          Personnel                       84,791               -                     -              84,791        78,215         6,576        85,117
          Fringe Benefits                 47,209               -                     -              47,209        46,089         1,120        45,182
          Services                       149,125               -                     -             149,125       151,660        (2,535)      147,706
          Supplies                         6,500               -                     -               6,500         6,499             1         6,274
          Repairs and Maintenance          2,500               -                   (1,640)             860           602           258         1,570
          Minor Equipment                  5,000               -                    1,640            6,640         6,639             1         6,940
                                         295,125               -                     -             295,125       289,704         5,421       292,789
                                                                                                                                                        Exhibit A-3 (Page 22 of 26)
                                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                    Schedule of Expenditures - Budget and Actual
                                                                    General Fund
                                                          Year Ended December 31, 2010
                                              With Comparative Totals for Year Ended December 31, 2009


                                                                                                2010

                                              Adopted           Prior               Budget              Final                                      2009
                                               Budget      Reappropriations   Amendments/Transfers     Budget        Actual      Variance          Actual
                                                                                                                                                               Exhibit A-3 (Page 23 of 26)




      Special Events:
           Personnel                            134,460               -                  (41,730)         92,730       92,727                3      119,937
           Fringe Benefits                       41,071               -                  (11,370)         29,701       29,700                1       28,695
           Services                             393,600               -                   12,890         406,490      406,518              (28)     414,196
           Supplies                               3,600               -                     (915)          2,685        2,681                4        1,565
           Materials                                500               -                     (500)           -            -             -               -
           Repairs and Maintenance                  850               -                     (850)           -            -             -               -
           Minor Equipment                        2,300               -                   (2,300)           -            -             -               -
                                                576,381               -                  (44,775)        531,606      531,626              (20)     564,393

      Memorial Hall:




246
          Other Operating                       525,000               -                   18,000         543,000      542,225           775         540,876

           Total Culture and Recreation        9,211,997            8,607               936,500        10,157,104   10,150,132        6,972        9,498,465

      Education

      Community College
       of Allegheny County (CCAC):
           Other operating                    22,338,000              -                     -          22,338,000   22,338,000         -          21,900,000

      Allegheny County Library Association:
            Other operating                      30,000               -                     -             30,000        30,000         -             30,000

      Local Government Academy:
            Other operating                     120,000               -                     -            120,000      120,000          -             80,000

           Total Education                    22,488,000              -                     -          22,488,000   22,488,000         -          22,010,000
                                                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                  Schedule of Expenditures - Budget and Actual
                                                                  General Fund
                                                        Year Ended December 31, 2010
                                            With Comparative Totals for Year Ended December 31, 2009


                                                                                             2010

                                            Adopted          Prior               Budget              Final                                  2009
                                             Budget     Reappropriations   Amendments/Transfers     Budget      Actual      Variance        Actual

      Economic Development:

      Allegheny General - Federal North
            Other operating                    75,952              -                     -             75,952      74,995          957        74,995

      Alcoa - North Shore
           Other operating                    139,645              -                     -            139,645    137,886         1,759       137,886

      Allegheny League of Municipalities:
            Other operating                   120,000              -                     -            120,000    120,000          -           80,000




247
      Bakery Square
           Other operating                      1,848              -                     -              1,848       1,825              23      2,652

      Brentwood Towne Square
           Other operating                     40,030              -                     -             40,030      39,526          504        39,527

      Broadhead Fording
           Other operating                     46,010              -                     -             46,010      45,430          580        45,430

      Clinton
            Other operating                    30,769              -                     -             30,769      30,381          388        35,755
      Council of Government:
          Other operating                      60,000              -                     -             60,000      60,000         -           61,931

      Frazer Mills
           Other operating                    810,599              -                     -            810,599    800,386        10,213       756,433

      Fulton Building
           Other operating                     68,923              -                     -             68,923      68,055          868        68,055
                                                                                                                                                       Exhibit A-3 (Page 24 of 26)
                                                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                  Schedule of Expenditures - Budget and Actual
                                                                  General Fund
                                                        Year Ended December 31, 2010
                                            With Comparative Totals for Year Ended December 31, 2009


                                                                                             2010

                                            Adopted          Prior               Budget              Final                               2009
                                             Budget     Reappropriations   Amendments/Transfers     Budget      Actual      Variance     Actual
                                                                                                                                                    Exhibit A-3 (Page 25 of 26)




      Home Depot
          Other operating                      19,757              -                     -             19,757      19,508          249     19,685

      Lazarus - Center Triangle
           Other operating                     55,949              -                     -             55,949      55,244          705     56,745

      Mellon Client Service Center
           Other operating                    226,178              -                     -            226,178    223,328         2,850    223,328

      Moon Township Trans. Authority
          Other operating                     151,615              -                     -            151,615    149,705         1,910    182,792




248
      Mt Nebo Point
           Other operating                     72,581              -                     -             72,581      71,667          914     91,889

      Negley Centre
           Other operating                     33,450              -                     -             33,450      33,029          421     32,674

      North Shore East/River Avenue
           Other operating                     23,458              -                     -             23,458      23,162          296     23,162

      Panther Hollow
           Other operating                     56,525              -                     -             56,525      55,813          712     55,813

      Penn Avenue Place - Center Triangle
           Other operating                    114,633              -                     -            114,633    113,189         1,444    113,189


      Penn Liberty Plaza
        Other operating                        25,835              -                     -             25,835      25,510          325     25,510
                                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                           Schedule of Expenditures - Budget and Actual
                                                                           General Fund
                                                                 Year Ended December 31, 2010
                                                     With Comparative Totals for Year Ended December 31, 2009


                                                                                                        2010

                                                      Adopted           Prior               Budget               Final                                      2009
                                                       Budget      Reappropriations   Amendments/Transfers      Budget         Actual      Variance         Actual

      PNC Firstside Center
        Other operating                                 233,504               -                     -             233,504       230,562         2,942        230,562


      Redevelopment Authority of Allegheny County-
       Economic Development Fund:
          Other operating                              2,323,797              -                     -            2,323,797     1,604,677     719,120        2,323,797

      Robinson Mall
           Other operating                              507,479               -                     -             507,479       501,085         6,394        447,719

      Schenley Center
          Other operating                                70,088               -                     -              70,088         69,205          883          69,205




249
      South Side Works
           Other operating                              635,528               -                     -             635,528       627,521         8,007        596,198

      Station Square
            Other operating                              56,431               -                     -              56,431         55,720          711          55,720

      Valley Medical
         Other operating                                    -                 -                     -                 -             -            -             15,250

      The Waterfront
          Other operating                               618,213               -                     -             618,213       610,424         7,789        628,745

           Total Economic Development                  6,618,797              -                     -            6,618,797     5,847,833     770,964        6,494,647

      Debt Service:
      Cost of Issuance                                   40,450               -                     -              40,450        40,450          -               -
      Interest Charges                                  624,564               -                 (498,170)         126,394       126,389               5          -

           Total Debt Service                           665,014               -                 (498,170)         166,844       166,839               5          -

           Total Expenditures                    $   670,789,263          686,266              1,092,580       672,568,109   654,499,657   18,068,452     646,123,275
                                                                                                                                                                        Exhibit A-3 (Page 26 of 26)
                               SPECIAL REVENUE FUNDS

The Special Revenue Funds are use to account the proceeds of specific revenue sources that are
restricted or committed to expenditures for specified purposes other than debt service or capital
projects.
The Special Revenue Funds consist of:

LIQUID FUEL TAX FUND -- Accounts for monies received to finance the improvement of
roads and bridges.
COUNTY GRANTS FUND -- Accounts for all Non-Human Service grants received.
HUMAN SERVICE GRANTS FUND -- Accounts for all Human Service
grants received.
TRANSPORTATION FUND -- Accounts for alcoholic beverage and rental vehicle tax
monies received to subsidize the Port Authority.
                                                                                                           Exhibit B-1 (Page 1 of 2)

                                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                   Combining Balance Sheet Schedule
                                                        Special Revenue Funds
                                                         December 31, 20010
                                             With Comparative Totals for December 31, 2009




                                                                                  County        Human
                                                  Transportation   Liquid Fuel    Grants        Services                   Totals
                                                      Fund         Tax Fund        Fund       Grants Fund           2010              2009

       Assets


Cash and short-term investments               $        2,665,928      -          32,569,492    22,755,526           57,990,946       65,278,295
Restricted cash and short-term investments                 -        475,891       1,390,935    35,836,005           37,702,831       39,963,500
Due from other funds:
  General Fund                                               -         -          7,104,894     1,191,966            8,296,860       11,006,005
  Human Services Grants Fund                                 -         -             30,586         -                   30,586          250,713
                                                             -         -          7,135,480     1,191,966            8,327,446       11,256,718
Due from other governments:
  Federal                                                  -           -         12,726,549    18,920,657           31,647,206       32,069,597
  State                                                    -           -          3,908,855    17,493,502           21,402,357       31,760,452
  Other                                                    -           -              -           134,156              134,156            -
                                                           -           -         16,635,404    36,548,315           53,183,719       63,830,049
Due from component units                                   -           -              -         3,222,018            3,222,018        3,105,551
Alcoholic beverage tax receivable                      2,215,203       -              -             -                2,215,203        2,946,638
Rental vehicle tax receivable                            277,599       -              -             -                  277,599          408,567
Other accounts receivable                                  -           -          2,244,326     9,679,527           11,923,853       10,587,620
Accrued interest receivable                                -               186        -             5,950                6,136           13,393

       Total assets                           $        5,158,730    476,077      59,975,637   109,239,307          174,849,751
                                                                                                                             0      197,390,331

       Liabilities and Fund Balances

Liabilities:
   Vouchers payable                           $              -         -          2,285,987      472,234             2,758,221        9,022,638
   Accrued payroll                                           -         -          1,837,670      658,801             2,496,471        2,163,778
   Due To Other Funds:
    General Fund                                             -         -          2,192,338     2,152,783            4,345,121        8,985,805
    County Capital Projects Fund                             -         -              -             -                    -               78,601
    County Grants Funds                                      -         -              -            30,586               30,586          250,713
                                                             -         -          2,192,338     2,183,369            4,375,707        9,315,119




                                                                      253
        Exhibit B-1 (Page 2 of 2)

                                        COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Combining Balance Sheet Schedule
                                                Special Revenue Funds
                                                 December 31, 2010
                                     With Comparative Totals for December 31, 2010




                                                            Liquid     County        Human
                                          Transportation     Fuel      Grants        Services            Totals
                                              Fund         Tax Fund     Fund       Grants Fund    2010              2009

 Accrued liabilities                                 -       -         3,933,096    26,747,203    30,680,299       47,516,232
 Due to component units                              -       -           242,324        36,280       278,604           61,406
 Retainage Payable                                   -       -                61         -                61          144,547
 Due to other governments:
   State                                             -       -             -             -             -              520,000
 Deferred revenues                                   -       -        20,707,954    78,734,262    99,442,216       97,198,389
 Accrued pension costs                               -       -           232,530        83,398       315,928          262,667
 Accrued workers' compensation                       -       -            10,600           656        11,256           12,944
 Accrued unemployment compensation                   -       -            19,651        12,180        31,831           79,852

      Total liabilities                              -       -        31,462,211   108,928,383   140,390,594      166,297,572



Fund balances:
  Restricted for:
    General government                             -         -        10,507,064        -         10,507,064       10,068,234
    Public safety                                  -         -         1,152,501        -          1,152,501          590,532
    Public works                                   -         -             -            -              -               24,921
    Transportation                             5,158,730     -             -            -          5,158,730        4,064,360
    Health and welfare                             -         -        12,814,092      310,924     13,125,016       14,283,671
    Culture and recreation                         -         -           167,332        -            167,332           68,840
    Economic development                           -         -         2,464,099        -          2,464,099        1,676,740
    Road maintenance expenditures                  -       476,077         -            -            476,077          233,154
  Committed to:
    General government                               -       -           21,628          -           21,628           62,763
    Health and welfare                               -       -          958,818          -          958,818            -
    Culture and recreation                           -       -           44,744          -           44,744            -
    Economic development                             -       -           87,179          -           87,179          192,948
  Assigned to:
    Public works                                     -       -              950          -              950            81,030
    Culture and recreation                           -       -          333,934          -          333,934            85,116
  Unassigned:                                        -       -          (38,915)         -          (38,915)         (339,550)

      Total fund balances                      5,158,730   476,077    28,513,426      310,924     34,459,157       31,092,759

      Total liabilities
        and fund balances             $        5,158,730   476,077    59,975,637   109,239,307   174,849,751      197,390,331




                                                             254
                                                                                                                        Exhibit B-2

                               COUNTY OF ALLEGHENY, PENNSYLVANIA
              Combining Statement of Revenues, Expenditures and Changes in Fund Balances
                                        Special Revenue Funds
                                    Year Ended December 31, 2010
                      With Comparative Totals for Year Ended December 31, 2009




                                                                             County         Human
                                            Transportation   Liquid Fuel     Grants         Services               Totals
                                                Fund         Tax Fund         Fund        Grants Fund       2010              2009



Revenues:
  Federal revenues                      $          -             -          69,576,060     91,779,682    161,355,742    191,307,646
  State revenues                                   -         4,359,244      31,889,525    441,972,379    478,221,148    537,151,876
  Alcoholic beverage tax                      27,305,853         -               -              -         27,305,853     27,445,903
  Rental vehicle tax                           5,436,963         -               -              -          5,436,963      5,268,531
  Fees                                             -             -          23,427,950          -         23,427,950     23,230,750
  Interest earnings                                -             3,679          30,303        181,080        215,062      2,905,789
  Penalty and Interest                            53,440         -               -              -             53,440          -
  Miscellaneous revenues                          66,666         -          12,243,084      3,455,754     15,765,504     11,651,465

       Total revenues                         32,862,922     4,362,923     137,166,922    537,388,895    711,781,662    798,961,960


Expenditures:
  General government                               -             -          45,824,443          -         45,824,443     45,347,618
  Public safety                                    -             -          33,609,844          -         33,609,844     32,672,895
  Public works                                     -         4,120,000       2,846,643          -          6,966,643      5,030,743
  Health and welfare                               -             -          18,316,262    504,271,164    522,587,426    627,868,867
  Culture and recreation                           -             -             818,031          -            818,031        447,059
  Education                                        -             -             115,860          -            115,860        123,800
  Economic development                             -             -          39,837,249          -         39,837,249     23,239,135
  Economic opportunity                             -             -               -         38,243,840     38,243,840     37,277,998
  Transportation                              27,668,700         -               -              -         27,668,700     27,668,699


       Total expenditures                     27,668,700     4,120,000     141,368,332    542,515,004    715,672,036    799,676,814


      Excess (deficiency) of revenues
         over expenditures                     5,194,222       242,923      (4,201,410)    (5,126,109)    (3,890,374)         (714,854)


Other financing sources (uses):
  Transfers in                                     -             -           8,788,516      5,652,213     14,440,729     12,582,552
  Transfers out                               (4,099,852)        -          (2,854,548)      (229,557)    (7,183,957)   (15,168,862)


       Total other financing
         sources (uses)                       (4,099,852)        -           5,933,968      5,422,656      7,256,772        (2,586,310)


         Net change in fund balance            1,094,370       242,923       1,732,558       296,547       3,366,398        (3,301,164)

Fund balances at beginning of year             4,064,360       233,154      26,780,868         14,377     31,092,759        34,393,923


Fund balances at end of year            $      5,158,730       476,077      28,513,426       310,924      34,459,157        31,092,759




                                                                     255
Exhibit B-3

                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                   Schedule of Revenues, Expenditures and Changes in Fund Balance
                                          Budget and Actual
                                         Transportation Fund
                                   Year Ended December 31, 2010
                  With Comparative Actual Amounts for Year Ended December 31, 2009



                                                             2010

                                                                                         2009
                                            Budget           Actual      Variance        Actual

Revenues:
 Taxes:
   Alcoholic beverage tax              $   26,300,000      27,305,853    1,005,853    27,445,903
   Rental vehicle tax                       5,579,652       5,436,963     (142,689)    5,268,531
   Penalty and interest                         -              53,440       53,440         -
   Miscellaneous                                -              66,666       66,666         -

    Total revenues                         31,879,652      32,862,922     983,270     32,714,434

Expenditures:

 Transportation                            27,668,700      27,668,700        -        27,668,699

    Excess of revenues
     over expenditures                      4,210,952       5,194,222     983,270      5,045,735

Other financing sources (uses):
 Transfers out                             (4,210,952)     (4,099,852)    111,100     (13,411,871)

    Total other financing sources (uses)   (4,210,952)     (4,099,852)    111,100     (13,411,871)

    Net change in fund balance                  -           1,094,370    1,094,370     (8,366,136)

Fund balance at beginning of year           4,064,360       4,064,360        -        12,430,496

Fund balance at end of year            $    4,064,360       5,158,730    1,094,370     4,064,360




                                                     256
                                                                                    Exhibit B-4

                           COUNTY OF ALLEGHENY, PENNSYLVANIA
               Schedule of Revenues, Expenditures and Changes in Fund Balance
                                      Budget and Actual
                                    Liquid Fuel Tax Fund
                               Year Ended December 31, 2010
              With Comparative Actual Amounts for Year Ended December 31, 2009




                                                        2010

                                                                                  2009
                                        Budget          Actual     Variance       Actual

Revenues:
  State revenues:
    State liquid fuel tax           $   4,100,000      4,359,244    259,244      4,089,411
  Interest earnings                        20,000          3,679    (16,321)        21,844

       Total revenues                   4,120,000      4,362,923    242,923      4,111,255

Expenditures:
  Public works:
    Road maintenance:
       Personnel                        4,120,000      4,120,000      -          4,025,000

       Excess of revenues
          over expenditures                -            242,923     242,923        86,255

Fund balance at beginning of year        233,154        233,154       -           146,899

Fund balance at end of year         $    233,154        476,077     242,923       233,154




                                                 257
Exhibit B-5 (Page 1 of 2)

                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                    Schedule of Resources and Uses of Federal and State Grant Programs
                                            County Grants Fund
                                      Year Ended December 31, 2010




                                                           Resources                     Uses

                                                            Federal                     Other
                                                              and                     Operating
                                                             State      Personnel    Expenditures    Total



Federal Programs:
 Juvenile Accountability Incentive Block Grant         $       97,552        -            97,552        97,552
 Community Development Block Grant                         15,902,661    2,854,007    16,000,326    18,854,333
 AMERICORP                                                    155,426       39,378       (82,233)      (42,855)
 Child Support Enforcement Program                         13,266,224    9,107,984     1,746,677    10,854,661
 Improvement Program                                        1,891,982    1,891,982         -         1,891,982
 Emergency Shelter Grant                                      743,165       52,581       690,584       743,165
 Home Investment Program                                    7,265,445      330,617     7,132,013     7,462,630
 Lead Hazard Awareness                                        373,205      338,336        42,026       380,362
 Metro Medical Response System                                123,337        -           111,311       111,311
 Justice Assistance Grant                                   2,522,803      665,929     1,855,234     2,521,163
 Immunization Program                                       1,589,578      786,307       803,272     1,589,579
 AIDS Program                                                 336,290      188,244       162,833       351,077
 Nurse-Family Partnership                                     320,961        -           444,597       444,597
 Traffic Safety                                               118,918       93,473        25,445       118,918
 Home Injury Prevention                                       167,271      135,299        31,972       167,271
 Maternal & Child Health                                      411,557      422,692        66,100       488,792
 Women, Infants and Children Program                        3,261,961    2,555,794       706,167     3,261,961
 County Police Forfeiture                                     162,882        -           163,534       163,534
 Civil Service Agreement                                      215,307      103,388        56,947       160,335
 PM 2.5 Air Monitoring                                        193,375      132,881        61,573       194,454
 Osteoporosis, Nutrition, Physical Activity                    58,150        -            82,554        82,554
 Emergency Preparedness Bioterrorism                           39,018        -            39,125        39,125
 Urban Area Security Initiative                             3,722,672        -         3,720,716     3,720,716
 State Homeland Security                                    3,142,437        -         3,140,013     3,140,013
 Allegheny Aftercare Program                                   21,675        -            21,675        21,675
 DUI Court                                                    168,244      172,335        (4,092)      168,243
 Backlog Reduction                                            351,120        1,627       349,492       351,119
 Strengthen Jail Mgmt. Information                             73,255      100,127         -           100,127
 DA Federal Asset Sharing Fund                                 39,274        -            37,073        37,073
 Day Reporting Center                                         200,834      277,318      (258,810)       18,508
 Air Pollution                                              1,006,132    1,303,281       733,876     2,037,157
 Pennsylvania Diabetes Plan                                    50,198       45,999         4,199        50,198
 Homelessness Prevention & Rapid Re-Housing Program         1,479,200        -         1,290,475     1,290,475
 Public Works                                               2,501,449        -         2,781,422     2,781,422
 National Clean Diesel Funding                              2,994,879       15,112     2,979,766     2,994,878
 HUD Grant                                                  1,479,820        -         1,479,820     1,479,820
 Public Health Preparedness & Response for Bioterrorism       491,423      317,969       173,453       491,422
 Law Enforcement Terrorism Prevention                         821,649        -           820,714       820,714
 Miscellaneous Revenue                                      1,814,731      589,178     1,142,577     1,731,755

       Total federal programs                              69,576,060   22,521,838    48,649,978    71,171,816




                                                            258
                                                                                 Exhibit B-5 (Page 2 of 2)

                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                     Schedule of Resources and Uses of Federal and State Grant Programs
                                             County Grants Fund
                                       Year Ended December 31, 2010




                                                     Resources                     Uses

                                                      Federal                     Other
                                                        and                     Operating
                                                       State      Personnel    Expenditures      Total

State Programs:
 Pennsylvania Diabetes Plan                               -           45,999         4,199         50,198
 911 Emergency Communications                        10,793,261    7,129,693     3,704,768     10,834,461
 Act 24 Grant                                            13,394        -            13,394         13,394
 Independent Living                                     711,296        -           711,296        711,296
 Insurance Fraud Prevention Grant                       386,084      358,609        27,689        386,298
 Radiation Emergency Response                            12,746        -            12,713         12,713
 Hazardous Material Emergency Response                   33,071        -            33,157         33,157
 Stormwater Management                                   92,714        -            92,714         92,714
 Department of Education Title I                        108,878        -           118,540        118,540
 Maternal and Child Health                              606,792      457,917        71,641        529,558
 Colon Cancer                                            48,009        -            48,009         48,009
 School Based Probation                               1,573,225    2,173,550         -          2,173,550
 Intermediate Punishment/Electronic Monitoring        1,364,842    1,524,938      (302,075)     1,222,863
 Drug Court/Restrictive Intermediate Punishment       1,915,010      370,374     1,123,353      1,493,727
 County Police In-Service Training                      123,084            2       123,083        123,085
 Tobacco Control                                        478,048        -           478,048        478,048
 AIDS Program                                           258,756      130,814       113,155        243,969
 Brownfields Housing                                    354,195       35,980       312,863        348,843
 Auto Theft Task Force                                  215,332      203,681        15,383        219,064
 Sexually Transmitted Diseases                          234,458      175,752       386,967        562,719
 Housing and Redevelopment Assistance                   824,238        -           804,345        804,345
 Pittsburgh Municipal Court                           1,640,000    2,537,299       141,413      2,678,712
 Court Security Equipment                                20,627        -            20,627         20,627
 DCED Crime Lab                                          12,482        -            12,442         12,442
 Community Regional Development                         393,318      106,372       265,023        371,395
 West Nile Virus                                        152,631      101,670        50,961        152,631
 G-20 Summit                                              3,971        -             3,973          3,973
 Act 88 of 2001                                         145,513      145,513         -            145,513
 Department of Community and Economic Development       151,568        -           151,588        151,588
 Community Infrastructure                             6,600,000        -         6,600,000      6,600,000
 Hazmat Act 165                                         508,482          695       220,229        220,924
 Municipal Waste Planning                               114,553        -           114,553        114,553
 Hearth @ Benot Woods                                   197,935        -             -              -
 Miscellaneous Revenue                                1,801,012    2,001,707     2,660,633      4,662,340

       Total state programs                          31,889,525   17,500,565    18,134,684     35,635,249

       Total federal and state programs             101,465,585   40,022,403    66,784,662    106,807,065

Non-federal/state programs                           35,701,337   23,196,936    11,364,331     34,561,267
       Grand total                              $   137,166,922   63,219,339    78,148,993    141,368,332




                                                      259
Exhibit B-6 (Page 1 of 2)

                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                     Schedules of Resources and Uses of Federal and State Grant Programs
                                         Human Service Grants Fund
                                       Year Ended December 31, 2010




                                                                Resources                    Uses

                                                                 Federal                     Other
                                                                  and                      Operating
                                                                  State       Personnel   Expenditures     Total


  Federal Programs:
   Behavioral Health - Operations                           $    2,527,062         -        2,527,062     2,527,062
   Mental Retardation - Operations                               3,437,376         -        3,437,376     3,437,376
   Drug and Alcohol - Operations                                 7,971,298         -        7,971,298     7,971,298
   Early Intervention - Operations                               2,248,266         -        2,248,266     2,248,266
   Senior Companion Program                                        478,994         -          478,994       478,994
   Aging Block Grant                                             9,851,031         -        9,851,031     9,851,031
   CSW Title V                                                     673,525         -          673,525       673,525
   Nursing Home Transition                                         (80,400)        -          (80,400)      (80,400)
   HUD Grant                                                    10,354,334         -       10,354,334    10,354,334
   Family Center Initiative                                      1,478,751         -        1,478,751     1,478,751
   Independent Living                                               10,783         -           10,783        10,783
   Medicaid Waiver                                               2,046,593         -        2,046,593     2,046,593
   Farmers Market Nutrition Program                                 17,564         -           17,564        17,564
   SAMHSA Mental Health Grant                                      529,872         -          529,872       529,872
   Community Services Block Grant                                3,396,014         -        3,396,014     3,396,014
   Headstart Program                                            11,987,698         -       11,987,698    11,987,698
   Low Income Home Energy Assistance Program                       571,901         -          571,901       571,901
   Workforce Investment Act                                      7,162,246         -        7,162,246     7,162,246
   Medical Assistance Transportation Program                     4,400,881         -        4,400,881     4,400,881
   Employment, Advancement and Retention Network                 9,167,592         -        9,167,592     9,167,592
   Criminal Justice Mental Health                                     (324)        -             (324)         (324)
   Jail Diversion                                                   27,078         -           27,078        27,078
   Summer Food Program                                             516,154         -          516,154       516,154
   Child & Adult Care Food Program                               1,581,536         -        1,581,536     1,581,536
   Homeless Assistance Program                                     701,578         -          701,578       701,578
   AMERICORP                                                     1,714,961         -        1,714,961     1,714,961
   Employment and Community Conservation                           559,219         -          559,219       559,219
   Emergency Food Assistance Program                             5,063,388         -        5,063,388     5,063,388
   Second Chance Act                                                97,514         -           54,165        54,165
   Municipal CIT Expansion                                          10,437         -           10,437        10,437
   ARRA TANF Way to Work                                         3,060,714         -        3,060,714     3,060,714
   Edward Byrne Memorial                                           173,774         -          173,774       173,774
   Community Learning Center                                        26,712         -           26,712        26,712
   Dislocated Workers                                                1,977         -            1,977         1,977
   Miscellaneous Federal -Training & Technical Assistance           13,583         -           13,583        13,583
         Total federal programs                                 91,779,682         -       91,736,333    91,736,333




                                                                  260
                                                                                 Exhibit B-6 (Page 2 of 2)

                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                  Schedules of Resources and Uses of Federal and State Grant Programs
                                      Human Service Grants Fund
                                    Year Ended December 31, 2010




                                                Resources                        Uses

                                                 Federal                         Other
                                                  and                          Operating
                                                  State       Personnel       Expenditures      Total
State Programs:
 Behavioral Health - Operations                 89,729,056         -           89,729,056     89,729,056
 Mental Retardation - Operations                 6,398,836         -            6,398,836      6,398,836
 Drug and Alcohol - Operations                  11,909,902         -           11,909,902     11,909,902
 Early Intervention - Operations                 9,794,064         -            9,794,064      9,794,064
 Human Service Development Fund                  2,505,210         -            2,505,210      2,505,210
 Aging Block Grant                              28,407,363         -           28,407,363     28,407,363
 AAAMR County Initiative                             2,000         -                2,000          2,000
 Adult Immunization                                  3,998         -                3,998          3,998
 Nursing Home Transition                           (80,400)        -              (80,400)       (80,400)
 Behavioral Health Managed Care                277,046,805         -          277,046,805    277,046,805
 Family Center Initiative                        1,124,263         -            1,124,263      1,124,263
 Integrated Children Services Plan                 274,345         -              274,345        274,345
 Medicaid Waiver                                 1,898,081         -            1,898,081      1,898,081
 SAMHSA Mental Health Grant                        807,035         -              807,035        807,035
 Family Support Demonstration Planning                   2         -                    2              2
 Homeless Assistance Program                     2,773,041         -            2,773,041      2,773,041
 Medical Assistance Transportation Program       5,112,641         -            5,112,641      5,112,641
 Child & Adult Care Food Program                  (273,993)        -             (273,993)      (273,993)
 HeadStart Program                               2,425,463         -            2,425,463      2,425,463
 Workforce Investment Act                          524,990         -              524,990        524,990
 Family Economic Success                             4,545         -                4,545          4,545
 Employment and Community Conservation             138,932         -              138,932        138,932
 State Food Purchase Program                     1,446,200         -            1,446,200      1,446,200
         Total state programs                  441,972,379         -          441,972,379    441,972,379
        Total federal and state programs       533,752,061         -          533,708,712    533,708,712

Non-federal/state programs                       3,636,834         -            8,806,292      8,806,292
       Grand total                           $ 537,388,895         -      0   542,515,004
                                                                                        0    542,515,004




                                                   261
                                            DEBT SERVICE FUND

The Debt Service Fund accounts for and reports financial resources that are restricted,
committed, or assigned to expenditures for principal and interest.
                                                                                           Exhibit C-1

                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                              Balance Sheet
                                            Debt Service Fund
                                           December 31, 2010
                               With Comparative Totals for December 31, 2009



                                                                     2010                2009
          Assets

Restricted cash and short-term investments                  $           775,376           3,873,353
Delinquent property taxes receivable,
  net of $157,471 allowance for uncollectible
  property taxes in 2010 and $122,733 in 2009                          1,883,393          1,123,182
Liened property taxes receivable,
  net of $2,168,771 allowance for uncollectible
  property taxes in 2010 and $2,170,406 in 2009                        3,220,482          3,415,330
Due from other funds:
  General Fund                                                          167,164            138,108
  County Capital Projects Fund                                        41,542,999                -
Due from component units                                                    -             8,250,000
Other accounts receivable                                                   -             1,251,318
Accrued penalty and interest receivable                                     54,092          71,095
Accrued interest receivable                                                         63              152

        Total assets                                        $         47,643,569         18,122,538
        Liabilities and Fund Balance

Liabilities:
  Vouchers payable                                          $               19,449          16,931
  Accrued interest payable                                                      1,759           1,759
  Due to other funds:
     General Fund                                                     42,306,296         11,515,123
  Tax refunds payable                                                   155,924             64,987
  Deferred revenue                                                     5,103,875          4,538,512
  Matured bonds payable                                                     56,266          61,567

         Total liabilities                                            47,643,569         16,198,879

Fund balance:
  Assigned to:
     Debt service                                                               -         1,923,659

         Total fund balance                                                     -         1,923,659

         Total liabilities and fund balance                 $         47,643,569         18,122,538




                                                   265
Exhibit C-2

                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                    Schedule of Revenues, Expenditures and Changes in Fund Balance
                                           Budget and Actual
                                           Debt Service Fund
                                    Year Ended December 31, 2010
                   With Comparative Actual Amounts for Year Ended December 31, 2009


                                                                     2010
                                                     Final                                        2009
                                                    Budget           Actual        Variance       Actual

 Revenues:
   Property taxes:
     Current                                   $   58,492,000      59,023,502        531,502     33,768,582
     Delinquent                                     3,368,000       2,700,560       (667,440)       652,292
     Liened                                           760,000         703,747        (56,253)       181,661
     Interest and penalty                             538,000         491,405        (46,595)       294,444
     Tax refunds                                     (656,000)       (957,868)      (301,868)      (515,007)

                                                   62,502,000      61,961,346       (540,654)    34,381,972

   State revenues                                     101,000         112,283         11,283     10,261,139
   Local government units revenues                     40,000          44,441          4,441         53,393
   Interest earnings                                  199,568          98,576       (100,992)       122,192
   Miscellaneous revenues                               -               -              -          1,549,004

        Total revenues                             62,842,568      62,216,646       (625,922)    46,367,700

 Expenditures:
   Debt service:
     Principal retirement                          41,387,500      41,387,500          -         38,232,500
     Interest charges                              28,422,099      28,402,581         19,518     24,612,032
     Costs of issuance                                  -               -              -            155,834


        Total expenditures                         69,809,599      69,790,081         19,518     63,000,366

        Excess (deficiency) of revenues
          over expenditures                         (6,967,031)     (7,573,435)     (606,404)    (16,632,666)

 Other financing sources (uses):
   Issuance of general obligation
      refunding bonds                                    -               -              -         27,500,000
   Premium on refunding bonds                            -               -              -          1,766,257
   Payment to refunded bond escrow agent                 -               -              -        (29,110,423)
   Operating transfer in                            36,135,952      47,567,851     11,431,899     18,019,791
   Operating transfer out                          (30,000,000)    (41,918,075)   (11,918,075)   (11,127,646)

        Total other financing sources (uses)        6,135,952       5,649,776       (486,176)     7,047,979

 Special item:
   Proceeds from sale of building                        -               -              -         8,250,000

         Net change in fund balance                  (831,079)      (1,923,659)    (1,092,580)    (1,334,687)

 Fund balance at beginning of year                  1,923,659       1,923,659           -         3,258,346


 Fund balance at end of year                   $    1,092,580            -         (1,092,580)    1,923,659




                                                             266
                                 CAPITAL PROJECTS FUND
The Capital Projects Fund accounts for financial resources that are restricted, committed, or
assigned for capital outlays, including acquisition or construction of capital facilities and other
capital assets (other than those financed by Proprietary Funds)..
                                                                                  Exhibit D-1

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Balance Sheet
                                      Capital Projects Fund
                                       December 31, 2010
                           With Comparative Totals for December 31, 2009




                                                       2010                2009

        Assets
        _____

Cash and short-term investments                $        6,666,004          22,283,996
Due from other funds:
  General Fund                                         28,908,133          60,391,379
  County Grants Fund                                        -                  78,601
                                                       28,908,133          60,469,980
Due from other governments:
  Federal                                              14,315,970           4,171,101
  State                                                 2,970,368           1,738,082
  Local                                                     -               1,703,919
                                                       17,286,338           7,613,102

Accrued interest receivable                                12,450             48,447

       Total assets                            $       52,872,925          90,415,525


       Liabilities and Fund Balances
       ________________________

Liabilities:
   Vouchers payable                            $        1,121,993           3,795,159
   Due to other funds:
     General Fund                                       1,300,563           5,717,510
     Debt Service                                      41,542,999               -
                                                       42,843,562           5,717,510

  Accrued liabilities                                  18,103,135          11,409,916
  Due to component units                                3,489,954               -
  Loans payable                                             -               3,000,000
  Retainage payable                                     4,631,203           3,010,931

       Total liabilities                               70,189,847          26,933,516

Fund balances:
  Restricted for:
    Capital projects                                    7,309,286          63,482,009
  Unassigned:                                         (24,626,208)              -

       Total fund balances                            (17,316,922)         63,482,009

       Total liabilities and fund balances     $       52,872,925          90,415,525




                                               269
Exhibit D-2

                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                   Statement of Revenues, Expenditures and Changes in Fund Balances
                                         Capital Projects Fund
                                    Year Ended December 31, 2010
                       With Comparative Totals for Year Ended December 31, 2009




                                                            2010                      2009

 Revenues:
   Federal revenues                                   $   33,101,559              23,311,713
   State revenues                                          6,837,676               4,080,829
   Local governmental units revenues                           -                     766,000
   Interest Income                                           125,391                 487,820
   Miscellaneous                                             108,916                 617,023

         Total revenues                                   40,173,542              29,263,385

 Expenditures:
   Bridges                                                38,736,711              32,840,054
   Roads                                                  15,870,865              14,830,985
   Transportation                                          8,614,908               9,910,779
   Parks                                                  10,494,430               3,215,919
   Buildings                                               4,272,969               6,096,893
   Equipment                                               6,552,952               5,782,225
   Feasibility studies                                       107,994                 149,879
   Other                                                   1,563,500               1,550,000
   Cost of issuance                                          183,886                 536,564

         Total expenditures                               86,398,215              74,913,298

         Deficiency of revenues
           over expenditures                              (46,224,673)           (45,649,913)

 Other financing sources (uses):
   Issuance of general obligation bonds                     9,385,000             80,000,000
   Discount on bond issuance                                    -                   (833,340)
   Transfers in                                                 -                  9,910,779
   Transfers out                                          (43,959,258)           (15,511,757)

         Total other financing sources                    (34,574,258)            73,565,682

         Net change in fund balances                      (80,798,931)            27,915,769

 Fund balances at beginning of year                       63,482,009              35,566,240

 Fund balances at end of period                       $   (17,316,922)            63,482,009




                                                270
                              INTERNAL SERVICE FUND
The Internal Service Fund is used to account for Risk Management costs for the Medical/Dental
and Automobile, General and Public Official self-insurance liabilities of the County.
                                                                                   Exhibit E-1

                          COUNTY OF ALLEGHENY, PENNSYLVANIA
                                 Statement of Net Assets
                                  Internal Service Funds
                                   December 31, 2010
                       With Comparative Totals for December 31, 2009



                                                        Risk Management Fund
                                                      2010               2009

       Assets
        _____

Current assets:
 Cash and short-term investments             $            -                320,820
 Due from other funds:
     General Fund                                      578,183             464,362

        Total assets                         $         578,183             785,182

       Liabilities and Net Assets
       ____________________

Current liabilities:
 Vouchers payable                            $         104,277                 6,916
 Due to other funds:
     General Fund                                      399,530             664,321
                                                       399,530             664,321
 Accrued liabilities                                     74,376            113,945
        Total liabilities                              578,183             785,182

Net Assets
  Unrestricted net assets                                 -                    -

        Total liabilities and net assets     $         578,183             785,182




                                           273
Exhibit E-2

                            COUNTY OF ALLEGHENY, PENNSYLVANIA
                  Statement of Revenues, Expenditures and Changes in Net Assets
                                      Internal Service Fund
                                 Year Ended December 31, 2010
                    With Comparative Totals for Year Ended December 31, 2009




                                                           Risk Management Fund
                                                            2010             2009

          Operating revenues:
           Contribution - employee                  $        329,578         342,480
           Contribution - employer                         1,603,777       1,563,575
              Total operating revenues                     1,933,355       1,906,055

          Operating expenses:
           Insurance claims expense                        1,933,355       1,906,055
              Total operating expenses                     1,933,355       1,906,055

          Operating loss                                       -                  -

          Non-operating expenses:
            Transfers In                                       -                  -

          Change in net assets                                 -                  -


          Net assets at beginning of year                      -                  -

          Net assets at end of year                 $          -                  -




                                              274
                                                                              Exhibit E-3

                        COUNTY OF ALLEGHENY, PENNSYLVANIA
                              Statement of Cash Flows
                                Internal Service Fund
                           Year Ended December 31, 2010




                                                                    Risk
                                                                Management
                                                                   Fund


Cash flows from operating activities
  Receipts from customers                                   $      1,819,534
  Payments to suppliers                                           (2,140,354)
      Net cash used by operating activities                        (320,820)

Balance - beginning of year                                         320,820


Balance - end of year                                       $         -


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

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

    Increase in due from other funds                               (113,821)
    Decrease in due to other funds                                 (264,791)
    Increase in vouchers payable                                     97,361
    Decrease in accrued liabilities                                 (39,569)
      Total adjustments                                            (320,820)

      Net cash used by operating activities                 $      (320,820)




                                          275
                           TRUST AND AGENCY FUNDS
The Trust and Agency Funds are used to account for assets held by the County in a trustee
capacity or as an agent for individuals, private organizations, other governmental units and/or
other funds.
The County’s Trust and Agency Funds consist of:

PENSION TRUST FUND -- Accounts for the County’s and the employees’ retirement
pension plan contributions and benefit disbursements.
AGENCY FUND -- Accounts for amounts collected by the County for fees, fines, taxes and
other miscellaneous items which are held by the County as agent for others.
                                                                                          Exhibit F-1

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                     Statement of Net Assets
                                       Pension Trust Fund
                                       December 31, 2010
                           With Comparative Totals for December 31, 2009




                                                                 2010
                                                                  10           2009

       Assets

Cash and short-term investments                           $    18,106,853     9,215,521
Investments (at fair value):
  Equity:
     U.S. common and preferred stock                          103,233,492   110,198,296
     American Depositary Receipts (ADRs)                        3,612,126     2,337,747
     S&P 500 index fund                                        61,321,680    62,317,779
     Non-U.S. stocks and equity mutual fund                   177,506,160   151,641,644
  Bonds and Notes:
     Corporate certificates of deposit                              -            50,500
     U.S. government and related agency debt                   32,006,542    15,148,512
     Fannie Mae and Freddie Mac debt                            6,818,777    28,826,877
     Fixed income mutual funds                                 85,432,127    84,367,721
     U.S. corporate debt instruments                           54,311,360    54,800,334
     Non-U.S. government and corporate debt                    10,348,761    10,639,161
  Other Investments:
     Hedge funds                                                  959,546     2,328,458
     Real estate                                               42,827,571    38,241,598
     Commodities fund                                          21,247,278    19,791,796
     Venture capital / private equity                          80,251,928    62,018,260
Amount due from brokers                                           207,008     2,022,941
Accrued interest and dividends receivable                       1,242,326     1,377,202
Accrued employer contributions receivable                         995,180       690,570
Accrued employee contributions receivable                         873,809       757,754
Other assets                                                       51,077        65,848


       Total assets                                       $   701,353,601   656,838,519


       Liabilities and net assets

Liabilities:
Vouchers payable                                          $         2,171       176,015
Accrued liabilities                                             1,635,938     1,714,751
Amount due to brokers                                             410,396     2,302,559
Other liabilities                                                   3,596         2,692

       Total liabilities                                        2,052,101     4,196,017


Net assets:
  Held in trust for pension benefits                          699,301,500   652,642,502


       Total liabilities and net assets                   $   701,353,601   656,838,519




                                               279
Exhibit F-2

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                               Statement of Changes in Plan Net Assets
                                          Pension Trust Fund
                                    Year Ended December 31, 2010
                     With Comparative Totals for the Year Ended December 31, 2009



                                                                     2010              2009
  Additions:
    Contributions:
        Employee                                              $    20,194,179        19,501,312
        Employer                                                   20,115,911        19,256,793

              Total contributions                                  40,310,090        38,758,105


     Investment income:
        Net appreciation in fair value of investments              66,699,939        88,916,514
        Interest                                                    5,395,742         6,471,510
        Dividends                                                   5,988,654         4,949,273
        Stock loan income                                              81,605            92,879
                                                                   78,165,940       100,430,176
        Less: Investment management fees                            1,693,912         1,471,314

              Total investment gain - net                          76,472,028        98,958,862

     Miscellaneous income                                              59,654          126,669

              Total additions - net                               116,841,772       137,843,636

  Deductions:
    Benefit payments                                               65,844,509        64,343,528
    Refunds of employee contributions                               3,057,594         1,794,040
    Salaries, wages and related expenses                              285,917           272,625
    Administrative and miscellaneous expenses                         994,754           890,264

              Total deductions                                     70,182,774        67,300,457

  Net increase in net assets                                       46,658,998        70,543,179

  Net assets at beginning of year                                 652,642,502       582,099,323

  Net assets at end of the year                               $   699,301,500       652,642,502




                                                        280
                                                                             Exhibit F-3

                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                   Statement of Assets and Liabilities
                                        Combined Agency Funds
                                          December 31, 2010
                             With Comparative Totals for December 31, 2009




                                                             2010            2009

      Assets
      _____

Cash and short-term investments                        $     48,228,233      48,213,084
Accrued interest and dividends receivable                         2,325          21,626
Other assets                                                  5,728,179       5,140,130

      Total assets                                     $     53,958,737      53,374,840


      Liabilities
      ________

Vouchers payable                                       $        949,951         542,407
Due to other governments                                      5,886,579       6,426,496
Due to litigants                                             13,571,809      14,989,874
Collections held in trust                                    23,876,064      22,203,446
Other liabilities                                             9,674,334       9,212,617

      Total liabilities                                $     53,958,737      53,374,840




                                                 281
Exhibit F-4 (Page 1 of 11)

                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                 Statement of Changes in Assets and Liabilities
                                               All Agency Funds
                                      By Level of Fiduciary Responsibility
                                       Year Ended December 31, 2010




                                                    Balance                                      Balance
                                                January 1, 2010   Additions    Deductions   December 31, 2010


  SHERIFF'S OFFICE
    ASSETS
  Cash                                      $        7,037,789    12,007,176   15,356,935        3,688,030
                                                     7,037,789    12,007,176   15,356,935        3,688,030


    LIABILITIES
  Due to litigants                                   7,037,789    12,007,176   15,356,935        3,688,030
                                            $        7,037,789    12,007,176   15,356,935        3,688,030


  COURT RECORDS-CRIMINAL DIVISION
    ASSETS
  Cash                                      $        3,127,891    15,570,682   16,425,989        2,272,584


    LIABILITIES
  Due to other governments                             445,392        3,578       102,295          346,675
  Due to other funds                                     -          535,280       535,280            -
  Due to litigants                                   2,667,662       55,655       812,245        1,911,072
  Other liabilities                                     14,837        -             -               14,837
                                            $        3,127,891      594,513     1,449,820        2,272,584


  COURT RECORDS-WILLS/ORPHANS DIVISION
    ASSETS
  Cash                                      $          501,968     4,251,538    4,180,225         573,281
  Other assets                                           1,110         1,500        1,110           1,500
                                                       503,078     4,253,038    4,181,335         574,781


    LIABILITIES
  Due to other governments                              12,589       256,356      251,236          17,709
  Other liabilities                                    490,489     3,996,682    3,930,099         557,072
                                            $          503,078     4,253,038    4,181,335         574,781


  COURT RECORDS-CIVIL DIVISION
    ASSETS
  Cash                                      $        5,283,264    26,845,731   24,737,227        7,391,768
  Other assets                                         144,431       736,951      144,431          736,951
                                                     5,427,695    27,582,682   24,881,658        8,128,719


    LIABILITIES
  Due to other governments                             143,272       156,013      143,273          156,012
  Due to litigants                                   5,284,423    27,426,670   24,738,386        7,972,707
                                            $        5,427,695    27,582,683   24,881,659        8,128,719




                                                        282
                                                                             Exhibit F-4 (Page 2 of 11)

                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                           Statement of Changes in Assets and Liabilities
                                         All Agency Funds
                                By Level of Fiduciary Responsibility
                                 Year Ended December 31, 2010




                                              Balance                                      Balance
                                          January 1, 2010   Additions    Deductions   December 31, 2010


REAL ESTATE DEPARTMENT
  ASSETS
Cash                                  $        5,608,055    91,455,642   91,799,823        5,263,874
Other assets                                      21,674        16,813       21,674           16,813
                                               5,629,729    91,472,455   91,821,497        5,280,687


  LIABILITIES
Due to other governments                       5,534,013       59,226       492,144        5,101,095
Due to other funds                                 -          171,030       171,030            -
Other liabilities                                 95,716      147,777        63,901          179,592
                                      $        5,629,729      378,033       727,075        5,280,687


MISCELLANEOUS AGENCIES
  ASSETS
Cash                                  $          968,509     7,560,276    7,617,358         911,427


  LIABILITIES
Other liabilities                     $          968,509     7,584,379    7,641,461         911,427


CYF CLIENT INCOME
  ASSETS
Cash                                  $          318,339     1,875,576    1,804,720         389,195


  LIABILITIES
Vouchers payable                                   2,102         -            -               2,102
Other liabilities                                316,237     1,493,955    1,423,099         387,093
                                      $          318,339     1,493,955    1,423,099         389,195
TAX REFUNDS
  ASSETS
Cash                                  $             -        3,961,818    3,595,588         366,230
Due from other funds                                -        4,153,775    4,153,775           -
                                                    -        8,115,593    7,749,363         366,230


  LIABILITIES
Vouchers payable                                    -        3,917,557    3,551,327         366,230
Other liabilities                                   -        3,646,406    3,646,406           -
                                      $             -        7,563,963    7,197,733         366,230




                                                  283
Exhibit F-4 (Page 3 of 11)

                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                              Statement of Changes in Assets and Liabilities
                                            All Agency Funds
                                   By Level of Fiduciary Responsibility
                                    Year Ended December 31, 2010




                                                 Balance                                       Balance
                                             January 1, 2010   Additions     Deductions   December 31, 2010


  GUARDIAN ACCOUNT
    ASSETS
  Cash                                   $          179,285      399,893        413,444         165,734

    LIABILITIES
  Vouchers payable                                   61,427      367,594        359,382          69,639
  Due to other funds                                  -          434,968        434,968           -
  Other liabilities                                 117,858      319,239        341,002          96,095
                                         $          179,285    1,121,801      1,135,352         165,734


  SOLICITOR'S PROPERTY FUND
    ASSETS
  Cash                                   $          166,445       95,762         99,621         162,586
  Due from other funds                                -          100,376        100,376           -
                                                    166,445      196,138        199,997         162,586


    LIABILITIES
  Other liabilities                      $          166,445            934        4,793         162,586


  RENTAL LEASE MAINTENANCE
    ASSETS
  Cash                                   $          210,744      191,107        210,677         191,174

    LIABILITIES
  Other liabilities                      $          210,744      191,107        210,677         191,174


  ESCROW TAXES UNDER $1
    ASSETS
  Cash                                   $           60,378        -              -              60,378


    LIABILITIES
  Other liabilities                      $           60,378        -              -              60,378


  UNCLAIMED CORONER FUNDS
    ASSETS
  Cash                                   $             4,429       -              -                4,429


    LIABILITIES
  Other liabilities                      $             4,429       -              -                4,429




                                                     284
                                                                              Exhibit F-4 (Page 4 of 11)

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                            Statement of Changes in Assets and Liabilities
                                          All Agency Funds
                                 By Level of Fiduciary Responsibility
                                  Year Ended December 31, 2010



                                               Balance                                      Balance
                                           January 1, 2010   Additions    Deductions   December 31, 2010

AIR POLLUTION - CLEAN AIR
  ASSETS
Cash                                   $        8,973,299     1,876,931      353,549       10,496,681
Accrued interest                                   18,721         6,224       23,235            1,710
Other assets                                    1,057,573         -            -            1,057,573
                                               10,049,593     1,883,155      376,784       11,555,964


  LIABILITIES
Vouchers Payable                                    4,250       347,048      346,495            4,803
Collections held in trust                      10,045,343     1,889,180      383,362       11,551,161
                                       $       10,049,593     2,236,228      729,857       11,555,964



HOTEL TAX, CONVENTION
  CENTER PROJECT
  ASSETS
Cash                                   $        1,094,364       991,667      962,500        1,123,531
Due from other funds                                -        26,662,357   26,662,357            -
                                                1,094,364    27,654,024   27,624,857        1,123,531


  LIABILITIES
Other Liabilities                                   -           991,667        -              991,667
Collections held in trust                       1,094,364    11,900,000   12,862,500          131,864
                                       $        1,094,364    12,891,667   12,862,500        1,123,531


HOTEL ROOM RENTAL TAX
  ASSETS
Cash                                   $           45,200    30,840,977   30,846,674          39,503


  LIABILITIES
Due to other funds                                  -        31,446,416   31,446,416           -
Other liabilities                                  45,200         5,696       11,393          39,503
                                       $           45,200    31,452,112   31,457,809          39,503




                                                   285
Exhibit F-4 (Page 5 of 11)

                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                Statement of Changes in Assets and Liabilities
                                              All Agency Funds
                                     By Level of Fiduciary Responsibility
                                      Year Ended December 31, 2010



                                                   Balance                                      Balance
                                               January 1, 2010   Additions    Deductions   December 31, 2010



  PGH CONVENTION AND VISITORS
    BUREAU ROOM TAX
    ASSETS
  Cash                                     $          469,584       597,737      469,190         598,131
  Due from other funds                                  -        16,559,808   16,559,808           -
                                                      469,584    17,157,545   17,028,998         598,131

    LIABILITIES
  Other liabilities                        $          469,584     6,919,002    6,790,455         598,131


  EMPLOYEE ACTIVITIES
    ASSETS
  Cash                                     $             5,401        -            -                5,401


    LIABILITIES
  Other liabilities                        $             5,401        -            -                5,401



  KANE - PATIENTS' MONEY
    ASSETS
  Cash                                     $        1,743,912    10,759,362   11,119,655        1,383,619
  Accrued interest                                      2,905         3,402        5,692              615
                                                    1,746,817    10,762,764   11,125,347        1,384,234

    LIABILITIES
  Vouchers payable                                     33,128     9,836,214    9,830,784           38,558
  Due to other funds                                    -        30,908,117   30,908,117            -
  Other liabilities                                 1,713,689     8,608,147    8,976,160        1,345,676
                                           $        1,746,817    49,352,478   49,715,061        1,384,234



  MCKEESPORT CRAWFORD
    ESTATE GIFT KANE FUND
    ASSETS
  Cash                                     $           12,927         -            1,500          11,427
  Other assets                                         21,437         -            -              21,437
                                                       34,364         -            1,500          32,864

    LIABILITIES
  Vouchers Payable                                        125         1,375        1,500           -
  Other liabilities                                    34,239         -            1,375          32,864
                                           $           34,364         1,375        2,875          32,864




                                                       286
                                                                              Exhibit F-4 (Page 6 of 11)

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                            Statement of Changes in Assets and Liabilities
                                          All Agency Funds
                                 By Level of Fiduciary Responsibility
                                  Year Ended December 31, 2010



                                               Balance                                      Balance
                                           January 1, 2010   Additions    Deductions   December 31, 2010



BOROUGH OF MONROEVILLE
  HOTEL TAX
  ASSETS
Cash                                   $          309,381       686,173      845,041         150,513
Due from other funds                                -         1,414,789    1,414,789           -
                                                  309,381     2,100,962    2,259,830         150,513

  LIABILITIES
Vouchers Payable                                  227,556      501,060       728,616           -
Other liabilities                                  81,825      569,748       501,060         150,513
                                       $          309,381     1,070,808    1,229,676         150,513



DAVID L. LAWRENCE CONVENTION
  CENTER - HOTEL ROOM TAX
  ASSETS
Cash                                   $        3,871,768     5,487,130    4,369,771        4,989,127
Due from other funds                                -         8,287,758    8,287,758            -
Other assets                                    3,540,000         -            -            3,540,000
                                                7,411,768    13,774,888   12,657,529        8,529,127


  LIABILITIES
Collections held in trust              $        7,411,768     4,359,532    3,242,173        8,529,127


MEMORIAL HALL
  LIBRARY AND MUSEUM
  ASSETS
Other assets                           $           29,281         -            -              29,281


  LIABILITIES
Other liabilities                      $           29,281         -            -              29,281




                                                   287
Exhibit F-4 (Page 7 of 11)

                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                     Statement of Changes in Assets and Liabilities
                                                   All Agency Funds
                                          By Level of Fiduciary Responsibility
                                           Year Ended December 31, 2010



                                                             Balance                                           Balance
                                                         January 1, 2010         Additions   Deductions   December 31, 2010



  DA - FORFEITURE ACCOUNT
    ASSETS
  Cash                                               $           822,446         1,751,518    1,837,562         736,402 (1)
  Due from other funds                                             -                   116          116           -
                                                                 822,446         1,751,634    1,837,678         736,402


    LIABILITIES
  Vouchers payable                                                 -               771,712      771,457             255
  Due to other funds                                               -             1,033,196    1,033,196           -
  Other liabilities                                              822,446         1,825,135    1,911,434         736,147
                                                     $           822,446         3,630,043    3,716,087         736,402


  DA - DANET GRANT
    ASSETS
  Cash                                               $            60,016           625,350      601,791          83,575 (2)


    LIABILITIES
  Other liabilities                                  $            60,016           625,350      601,791          83,575




  KEEP "THE COMMANDMENTS"
    ASSETS
  Cash                                               $             1,688                -         -                1,688
                                                                   1,688                -         -                1,688


    LIABILITIES
  Other liabilities                                  $             1,688                -         -                1,688




  (1) Of this balance, $362,812.34 is maintained separately by the District Attorney.
  (2) Cash from the DANET Grant is maintained separately by the District Attorney.




                                                                  288
                                                                                  Exhibit F-4 (Page 8 of 11)

                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                Statement of Changes in Assets and Liabilities
                                              All Agency Funds
                                     By Level of Fiduciary Responsibility
                                      Year Ended December 31, 2010



                                                   Balance                                      Balance
                                               January 1, 2010   Additions   Deductions    December 31, 2010



PARKS - FACILITY CHANGE FUNDS
  ASSETS
Cash                                       $             -          57,200        57,200            -


  LIABILITIES
Due to other funds                                       -          23,000        23,000            -
Other liabilities                                        -           2,230         2,230            -
                                           $             -          25,230        25,230            -

ENVIRONMENTAL HEALTH
  ASSETS
Cash                                       $          719,180        9,981        32,858         696,303
Due from other funds                                    -           33,953        33,953           -
Other assets                                          183,398        -             -             183,398
                                                      902,578       43,934        66,811         879,701

  LIABILITIES
Other liabilities                                     902,578        9,623        32,500         879,701
                                           $          902,578        9,623        32,500         879,701


PA LICENSES HUNTING/
  FISHING/DOGS/BOATS
  ASSETS
Cash                                       $          291,303      977,766       999,543         269,526

  LIABILITIES
Voucher payable                                            73    1,002,516      998,151            4,438
Due to other governments                              291,230      975,204    1,001,346          265,088
                                           $          291,303    1,977,720    1,999,497          269,526




                                                       289
Exhibit F-4 (Page 9 of 11)

                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                             Statement of Changes in Assets and Liabilities
                                           All Agency Funds
                                  By Level of Fiduciary Responsibility
                                   Year Ended December 31, 2010



                                                Balance                                      Balance
                                            January 1, 2010   Additions    Deductions   December 31, 2010


  PRISONER WELFARE FUND
    ASSETS
  Cash                                  $        1,297,068    1,324,871       897,865        1,724,074
  Other assets                                     141,226        -             -              141,226
                                                 1,438,294    1,324,871       897,865        1,865,300

    LIABILITIES
  Vouchers payable                                  35,389      780,244       799,730           15,903
  Due to other funds                                 -          866,758       866,758            -
  Other liabilities                              1,402,905    1,355,816       909,324        1,849,397
                                        $        1,438,294    3,002,818     2,575,812        1,865,300


  PROPERTY ASSESSMENT -
    CHANGE FUND
    ASSETS
  Cash                                  $             -               20           20            -

    LIABILITIES
  Due to other funds                    $             -               20           20            -


  CHILDREN, YOUTH &
    FAMILY - DONATIONS
    ASSETS
  Cash                                  $           43,111      125,610       117,044          51,677


    LIABILITIES
  Vouchers payable                                   -                                          -
  Other liabilities                                 43,111       19,754        11,188          51,677
                                        $           43,111       19,754        11,188          51,677


  CUSTODY PSYCHOLOGICAL
    EVALUATIONS
    ASSETS
  Cash                                  $          234,696      514,333       474,225         274,804

    LIABILITIES
  Vouchers payable                                   1,112      445,782       423,177          23,717
  Other liabilities                                233,584      427,626       410,123         251,087
                                        $          234,696      873,408       833,300         274,804




                                                    290
                                                                               Exhibit F-4 (Page 10 of 11)

                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                              Statement of Changes in Assets and Liabilities
                                            All Agency Funds
                                   By Level of Fiduciary Responsibility
                                    Year Ended December 31, 2010



                                                 Balance                                      Balance
                                             January 1, 2010   Additions   Deductions    December 31, 2010


ESCROW FOR TAXPAYER REFUNDS
  ASSETS
Cash                                     $           80,714    1,340,201    1,325,510           95,405
Due from other funds                                  -        1,376,834    1,376,834            -
                                                     80,714    2,717,035    2,702,344           95,405

  LIABILITIES
Vouchers payable                                     66,828    1,341,457    1,320,223           88,062
Other liabilities                                    13,886    1,286,487    1,293,030            7,343
                                         $           80,714    2,627,944    2,613,253           95,405



CUSTODY MEDIATION PROGRAM
  ASSETS
Cash                                     $          305,999      208,532       179,205         335,326

  LIABILITIES
Vouchers payable                                      1,200      172,688       169,958           3,930
Other liabilities                                   304,799      185,206       158,609         331,396
                                         $          305,999      357,894       328,567         335,326


LANDFILL TRUST
  ASSETS
Cash                                     $        3,651,971       13,761         1,820        3,663,912
Due from other funds                                  -            7,540         7,540            -
                                                  3,651,971       21,301         9,360        3,663,912

  LIABILITIES
Collections held in trust                $        3,651,971       11,941         -            3,663,912


RENT WITHHOLDING
  ASSETS
Cash                                     $             9,939       7,800         9,741            7,998


  LIABILITIES
Other Liabilities                                      9,939       7,800         9,741            7,998
                                         $             9,939       7,800         9,741            7,998




                                                     291
Exhibit F-4 (Page 11 of 11)

                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                               Statement of Changes in Assets and Liabilities
                                             All Agency Funds
                                    By Level of Fiduciary Responsibility
                                     Year Ended December 31, 2010



                                                  Balance                                        Balance
                                              January 1, 2010    Additions    Deductions    December 31, 2010



  SHERIFF SALE ESCROW
    ASSETS
  Cash                                    $          314,125     12,337,867    12,649,370            2,622
  Due from other funds                                 -         12,974,330    12,974,330            -
                                                     314,125     25,312,197    25,623,700            2,622


    LIABILITIES
  Vouchers Payable                                   109,217     13,055,228    12,832,131          332,314
  Other Liabilities                                  204,908     11,966,340    12,500,940         (329,692)
                                          $          314,125     25,021,568    25,333,071            2,622


  XPAND TAX SALE COLLECTIONS
    ASSETS
  Cash                                    $           67,896      1,761,181     1,802,779          26,298


    LIABILITIES
  Other Liabilities                                   67,896      1,761,181     1,802,779          26,298
                                          $           67,896      1,761,181     1,802,779          26,298


  NORTH PARK LAKE ESCROW
    ASSETS
  Cash                                    $          320,000          -          300,000           20,000


    LIABILITIES
  Other Liabilities                                  320,000          -          300,000           20,000
                                          $          320,000          -          300,000           20,000


  TOTAL - AGENCY FUND
    ASSETS
  Cash                                    $       48,213,084    236,511,169   236,496,020       48,228,233
  Due from other funds                                 -         71,571,636    71,571,636            -
  Accrued interest                                    21,626          9,626        28,927            2,325
  Other assets                                     5,140,130        755,264       167,215        5,728,179
                                                  53,374,840    308,847,695   308,263,798       53,958,737

    LIABILITIES
  Vouchers payable                                   542,407     32,540,475    32,132,931          949,951
  Due to other funds                                   -         64,712,455    64,712,455            -
  Due to other governments                         6,426,496      1,450,377     1,990,294        5,886,579
  Due to litigants                                14,989,874     39,489,501    40,907,566       13,571,809
  Collections held in trust                       22,203,446     18,160,653    16,488,035       23,876,064
  Other liabilities                                9,212,617     53,947,287    53,485,570        9,674,334
                                          $       53,374,840    210,300,748   209,716,851       53,958,737




                                                      292
CAPITAL ASSETS USED IN THE
            OPERATION OF
    GOVERNMENTAL FUNDS
                                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                   Capital Assets Used In the Operation of Governmental Funds
                                                        Schedule of Capital Assets By Function and Activity
                                                                       December 31, 2010




                                                                                                                                       Furniture,
                                                                                                                                        Fixtures
                                                                                       Land                                                and
              Function and Activity
             __________________                      Total            Land         Improvements        Buildings      Infrastructure   Equipment

      General government:
       Controller                              $       846,794           -                 -                    -             -            846,794
       Medical Examiner                              5,329,388           -                 -                    -             -          5,329,388
       District Attorney                               936,234           -                 -                    -             -            936,234
       Sheriff                                         954,445           -                 -                    -             -            954,445
       Treasurer                                       439,374           -                 -                    -             -            439,374
       Chief Executive/County Manager                  217,810           -                 -                    -             -            217,810
       County Council                                  204,828           -                 -                    -             -            204,828
       Court of Common Pleas                         4,727,796           -                 -                    -             -          4,727,796




295
       Administrative Services:
           Property Assessment                         709,499           -                 -                  -               -            709,499
           Elections                                 4,683,490           -                 -                  -               -          4,683,490
           Property and Supplies                       801,678           -                 -                  -               -            801,678
           Management Information Services           8,902,566           -                 -                  -               -          8,902,566
           Property Management                         192,291           -                 -                  -               -            192,291
           Veterans' Services                            5,203           -                 -                  -               -              5,203
       Human Resources                                   3,298           -                 -                  -               -              3,298
       Law                                             124,918           -                 -                  -               -            124,918
       Public Defender                                 207,040           -                 -                  -               -            207,040
       Court Records                                 1,363,880           -                 -                  -               -          1,363,880
       Real Estate                                     355,249           -                 -                  -               -            355,249
       General government land and buildings        51,838,743       1,639,586             -             50,199,157           -              -

          Total general government                  82,844,524
                                                             0       1,639,586             -             50,199,157           -        31,005,781
                                                                                                                                                     Exhibit G-1 (Page 1 of 2)
                                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                        Capital Assets Used in the Operation of Governmental Activity
                                                                 Schedule of Assets By Function and Activity
                                                                             December 31, 2010




                                                                                                                                               Furniture,
                                                                                                                                                              Exhibit G-1 (Page 2 of 2)




                                                                                                                                                Fixtures
                                                                                              Land                                                and
                  Function and Activity
                 __________________                       Total             Land          Improvements         Buildings      Infrastructure   Equipment


       Culture and recreation                             69,868,450       6,397,824          3,944,622         46,481,956       6,690,110       6,353,938
       Economic development                                  198,584           -                  -                  -               -             198,584
       Health and welfare                                126,205,851       3,679,837              -             99,723,350           -          22,802,664
       Public safety                                     200,699,436       4,077,783            351,399        166,960,988           -          29,309,266
       Public works                                      455,985,384       8,578,123          3,896,880         35,287,660     385,141,684      23,081,037

              Total governmental funds capital assets    935,802,229      24,373,153          8,192,901        398,653,111     391,831,794     112,751,270




296
      Less: Accumulated depreciation                    (352,326,334)          -             (5,897,952)      (161,436,938)   (140,494,339)    (44,497,105)

      Total                                              583,475,895      24,373,153          2,294,949        237,216,173     251,337,455      68,254,165


      Construction in progress                            73,250,586


      Net governmental funds capital assets         $    656,726,481
                                                                                                       Exhibit G-2

                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                             Capital Assets Used in the Operation of Governmental Funds
                            Schedule of Changes in Capital Assets by Function and Activity
                                            Year Ended December 31, 2010




                                                 Governmental                                         Governmental
                                                 Funds Capital                                        Funds Capital
                                                    Assets                                               Assets
            Function and Activity                 01/01/2010           Additions      Deductions       12/31/2010

 General government:
  Controller                                 $         543,196             303,598           -               846,794
  Medical Examiner                                   4,124,281           1,205,107           -             5,329,388
  District Attorney                                    641,446             294,788           -               936,234
  Sheriff                                              648,185             306,260           -               954,445
  Treasurer                                            436,546              15,681          12,853           439,374
  Chief Executive/County Manager                       298,591               6,743          87,524           217,810
  County Council                                       194,644              10,184           -               204,828
  Court of Common Pleas                              3,515,170           1,212,626           -             4,727,796
  Administrative Services:
      Property Assessment                              903,876              20,216         214,593           709,499
      Elections                                        105,620           4,577,870           -             4,683,490
      Property and Supplies                            870,802               3,253          72,377           801,678
      Management Information Services                8,287,971           1,303,454         688,859         8,902,566
      Property Management                              201,945               7,131          16,785           192,291
      Veterans' Services                                 5,675               -                 472             5,203
  Human Resources                                        3,298               -               -                 3,298
  Law                                                  112,147              12,771           -               124,918
  Public Defender                                      196,039              11,001           -               207,040
  Court Records                                      1,082,884             280,996           -             1,363,880
  Real Estate                                          298,095              57,154           -               355,249
  General government land and buildings             51,838,743               -               -            51,838,743

        Total general government                    74,309,154           9,628,833
                                                                                 -       1,093,463        82,844,524

 Culture and recreation                             67,002,493          2,865,957            -            69,868,450
 Economic development                                  195,085              7,237            3,738           198,584
 Health and welfare                                113,207,535         12,998,316            -           126,205,851
 Public safety                                     192,183,160          8,516,276            -           200,699,436
 Public works                                      448,187,059          7,798,325            -           455,985,384

        Total governmental fund capital assets     895,084,486         41,814,944        1,097,201       935,802,229

Construction in progress                            48,735,755         33,174,266        8,659,435        73,250,586
Total                                              943,820,241         74,989,210        9,756,636     1,009,052,815


Less: Accumulated depreciation                    (326,693,789)        (26,729,746)     (1,097,201)     (352,326,334)


Net governmental funds capital assets        $     617,126,452         48,259,464        8,659,435       656,726,481




                                                                 297
Exhibit G-3

                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                       Capital Assets Used in the Operation of Governmental Funds
                                   Schedule of Capital Assets by Source
                                           December 31, 2010




              Governmental funds capital assets:
                Land                                                       $     24,373,153
                Land Improvements                                                 8,192,901
                Buildings                                                       370,389,512
                Buildings - Capital Lease                                         7,678,839
                Buildings - Leasehold Improvements                               20,584,760
                Infrastructure                                                  391,831,794
                Construction in progress                                         73,250,586
                Furniture, fixtures and equipment                               112,751,270

                    Total governmental funds capital assets                    1,009,052,815

              Less: Accumulated depreciation                                   (352,326,334)

                    Net governmental funds capital assets                  $    656,726,481



              Investment in governmental funds capital assets by source:
                 Capital Projects Fund                                     $    927,726,779
                 General Fund                                                    57,450,300
                 Special Revenue Fund                                            18,454,654
                 Human Service Grants Fund                                        4,421,408
                 Agency Funds                                                       977,340
                 Contributions                                                       22,334

                    Total governmental funds capital assets                    1,009,052,815

              Less: Accumulated depreciation                                   (352,326,334)

                    Net governmental funds capital assets                  $    656,726,481




                                                     298
           BUDGETARY COMPARISON
   SCHEDULE FOR OPERATING BUDGET
This schedule combines the General Fund, Debt Service Fund and Liquid Fuel Tax Special
Revenue Fund to demonstrate the County’s compliance with its Operating Budget.
                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                            Budgetary Comparison Schedule For Operating Budget
                                      Year Ended December 31, 2010




                                                                 Budget                    ______________________________________


                                                    Original                Final         General             Debt        Transpor
                                                    Budget                 Budget          Fund              Service          Fun

Revenues:
 Property taxes (note 4)                       $   265,089,000            265,089,000    202,932,512       61,961,346            -
 Sales and use tax                                  40,290,000             40,290,000     40,904,309            -                -
 Alcoholic beverage and rental vehicle taxes        31,879,652             31,879,652          -                -           32,796
 Gaming local share assessment                       6,000,000              6,000,000      4,839,223            -                -
 Licenses and permits                                1,861,200              1,861,200      1,919,316            -                -
 Federal revenues                                   94,274,364             94,274,364     89,232,548            -                -
 State revenues                                    205,284,915            205,284,915    182,957,577          112,283            -
 Local government units revenues                    17,855,000             17,855,000     23,295,014           44,441            -
 Charges for services and facilities                63,381,777             63,381,777     68,272,002            -                -
 Fines and forfeitures                               4,915,500              4,915,500      4,787,652            -                -
 Interest earnings                                   1,927,000              1,927,000        271,202           98,576            -
 Miscellaneous                                       6,023,075              6,023,075      4,189,548            -               66

      Total revenues                               738,781,483            738,781,483    623,600,903       62,216,646       32,862

Expenditures:
  Current:
   General government                              166,624,515            167,268,498    165,043,845             -               -
   Public safety                                    85,314,017             82,253,544     81,383,463             -               -
   Public works                                     30,144,947             30,973,557     25,869,178             -               -
   Transportation                                   27,668,700             27,668,700          -                 -          27,668
   Health and welfare                              357,956,976            356,761,765    343,550,367             -               -
   Culture and recreation                            9,211,997             10,157,104     10,150,132             -               -
   Education                                        22,488,000             22,488,000     22,488,000             -               -
   Economic development                              2,503,797              6,618,797      5,847,833             -               -
  Debt service:
   Principal retirement                             41,387,500             41,387,500         -            41,387,500            -
   Interest charges                                 30,139,243             28,548,493       126,389        28,402,581            -
   Cost of issuance                                     40,450                 40,450        40,450             -                -

      Total expenditures                           773,480,142            774,166,408    654,499,657       69,790,081       27,668

      Excess (deficiency) of
        revenues over expenditures                 (34,698,659)           (35,384,925)   (30,898,754)       (7,573,435)      5,194

Other financing sources (uses):
  Premium on tax revenue anticipation note               -                      -             84,500             -               -
  Transfers in                                      66,985,952             66,985,952     43,064,149        47,567,851           -
  Transfers out                                    (34,210,952)           (34,210,952)   (12,011,439)      (41,918,075)     (4,099

      Total other financing sources (uses)          32,775,000             32,775,000     31,137,210        5,649,776       (4,099




                                                    300
                                                                                                   Exhibit H (Page 1 of 2)




       ___________________________________________ Actual ______________________________________

                                                                      Interfund                          Variance to
      General             Debt        Transportation    Liquid         Transfer                             Final
       Fund              Service          Fund           Fuel        Eliminations         Total            Budget


0    202,932,512        61,961,346           -             -               -            264,893,858         (195,142)
0     40,904,309             -               -             -               -             40,904,309          614,309
2          -                 -          32,796,256         -               -             32,796,256          916,604
0      4,839,223             -               -             -               -              4,839,223       (1,160,777)
0      1,919,316             -               -             -               -              1,919,316           58,116
4     89,232,548             -               -             -               -             89,232,548       (5,041,816)
5    182,957,577           112,283           -         4,359,244           -            187,429,104      (17,855,811)
0     23,295,014            44,441           -             -               -             23,339,455        5,484,455
7     68,272,002             -               -             -               -             68,272,002        4,890,225
0      4,787,652             -               -             -               -              4,787,652         (127,848)
0        271,202            98,576           -             3,679           -                373,457       (1,553,543)
5      4,189,548             -              66,666         -               -              4,256,214       (1,766,861)

3    623,600,903        62,216,646      32,862,922     4,362,923           -            723,043,394      (15,738,089)



8    165,043,845             -               -             -               -            165,043,845        2,224,653
4     81,383,463             -               -             -               -             81,383,463          870,081
7     25,869,178             -               -         4,120,000           -             29,989,178          984,379
0          -                 -          27,668,700         -               -             27,668,700            -
5    343,550,367             -               -             -               -            343,550,367       13,211,398
4     10,150,132             -               -             -               -             10,150,132            6,972
0     22,488,000             -               -             -               -             22,488,000            -
7      5,847,833             -               -             -               -              5,847,833          770,964

0         -             41,387,500           -             -               -             41,387,500            -
3       126,389         28,402,581           -             -               -             28,528,970           19,523
0        40,450              -               -             -               -                 40,450            -

8    654,499,657        69,790,081      27,668,700     4,120,000           -            756,078,438       18,087,970


5)   (30,898,754)       (7,573,435)      5,194,222       242,923           -            (33,035,044)       2,349,881


          84,500             -               -             -               -                 84,500           84,500
2     43,064,149        47,567,851           -             -         (46,017,927)        44,614,073      (22,371,879)
2)   (12,011,439)      (41,918,075)     (4,099,852)        -          46,017,927        (12,011,439)      22,199,513

0     31,137,210         5,649,776      (4,099,852)        -               -             32,687,134          (87,866)




                                                                   301
                           COUNTY OF ALLEGHENY, PENNSYLVANIA
                      Budgetary Comparison Schedule For Operating Budget
                                Year Ended December 31, 2010




                                                              Budget                       _____________________________


                                                 Original               Final        General            Debt        Tran
                                                 Budget                Budget         Fund             Service

      Net change in fund balances                (1,923,659)           (2,609,925)     238,456        (1,923,659)      1

Fund balances at beginning of year               26,372,281            26,372,281    20,151,108        1,923,659       4


Fund balances at end of year               $     24,448,622            23,762,356    20,389,564            -           5




                                               302
                                                                                                    Exhibit H (Page 2 of 2)




           ___________________________________ Actual ___________________________________

                                                                     Interfund                            Variance to
     General            Debt        Transportation     Liquid         Transfer                               Final
      Fund             Service          Fund            Fuel        Eliminations            Total           Budget

5)     238,456        (1,923,659)      1,094,370       242,923            -                 (347,910)       2,262,015

1    20,151,108        1,923,659       4,064,360       233,154            -            26,372,281               -


6    20,389,564            -           5,158,730       476,077            -            26,024,371           2,262,015




                                                                 303
              NONMAJOR COMPONENT UNITS
The County's Nonmajor Component Units are:
 Allegheny County HealthChoices, Inc.
 Soldiers’ and Sailors’ Memorial Hall
 Allegheny County Conservation District
                                                                                                                                   Exhibit I-1

                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                         Statement of Net Assets
                                                   Combining Nonmajor Component Units
                                                           December 31, 2010




                                                                                 Nonmajor Component Units

                                                                            Allegheny County   Allegheny County       Soldiers' and
                                                          Allegheny               Parks           Conservation      Sailors' Memorial
                                                      HealthChoices, Inc.       Foundation           District               Hall           Total

       Assets


Cash and short-term investments                   $          5,837,035              251,481            674,220              469,440       7,232,176
Restricted cash and short-term investments                  18,299,377            1,198,181              -                    -          19,497,558
Due from primary government                                     36,280              443,200              -                    -             479,480
Accounts Receivable                                             54,336                  646              -                   12,695          67,677
Inventory                                                        -                    -                  -                    7,183           7,183
Other assets                                                    77,486                4,547              -                  111,951         193,984
Buildings and equipment, net of
  accumulated depreciation                                     166,966               17,183             19,545            3,916,719       4,120,413
        Total assets                              $         24,471,480            1,915,238            693,765            4,517,988      31,598,471

        Liabilities and Net Assets


Liabilities:
   Vouchers payable                           $                  5,080                8,736                 4,760             79,645         98,221
   Due to primary government                                 3,222,018                -                     -                  -          3,222,018
   Accrued liabilities                                         582,425                2,367                 -                  -            584,792
   Other liabilities                                            25,575                -                     -                 78,989        104,564
   Deferred revenue                                          1,194,620                -                     -                  1,300      1,195,920
   Reserve for claims                                       18,273,802                -                     -                  -         18,273,802
   Current compensated absences                                  -                    -                     -                  9,315          9,315
   Current general obligation/revenue bonds/
     notes/leases                                                 -                   1,853                 -                 17,135        18,988
  Non-current general obligation/revenue bonds/
     notes/leases                                                -                    7,634                 -                 -               7,634
          Total liabilities                                 23,303,520               20,590                 4,760           186,384      23,515,254

Net assets:
Invested in capital assets, net of related debt                  -                    -                  -                3,916,719       3,916,719
Restricted for Projects                                          -                1,198,181            236,039              118,646       1,552,866
Unrestricted net assets                                      1,167,960              696,467            452,966              296,239       2,613,632
        Total net assets                                                          1,894,648            689,005            4,331,604
        Total net assets net assets
              liabilities and                                1,167,960
                                                            23,303,520            1,894,648
                                                                                  1,915,238            689,005
                                                                                                       693,765            4,331,604
                                                                                                                          4,517,988       8,083,217
        Total liabilities and net assets          $         24,471,480            1,915,238            693,765            4,517,988      31,598,471




                                                                            307
                                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Combining Statement of Activities
                                              Nonmajor Component Units
                                            Year Ended December 31, 2010




                                                                 ______________________ Program Revenues_______________________

                                                                                              Operating
                                                                        Charges for          Grants and      Capital Grants &            Allegheny
                                                Expenses                  Services           Contributions    Contributions           HealthChoices, I




Allegheny HealthChoices                  $         5,815,127                   681,968           5,194,606              -                        61,4


Allegheny County Parks Foundation                    298,048                      -                 39,003         1,228,536                      -


Allegheny County Conservation District               444,354                   453,081              81,657              -                         -


Soldiers' and Sailors' Memorial Hall               1,615,944                   624,894             262,865           115,048                      -


Total Nonmajor Component Units           $         8,173,473                 1,759,943           5,578,131         1,343,584                     61,4


                                             General Revenues:
                                              Payment from County                                                                 $               -
                                              Interest and Investment Earnings                                                                    3,9
                                              Net (loss) from the sale of collection items                                                        -
                                              Miscellaneous                                                                                       -


                                                Total General Revenues                                                                            3,9
                                                Change in Net Assets                                                                             65,4
                                             Net Assets Beginning of Year                                                                    1,102,5
                                             Net Assets End of Year                                                               $          1,167,9




                                                                 308
                                                                                                                                           Exhibit I-2




___________________                            Net (Expense) Revenue and Changes in Net Assets


  Capital Grants &           Allegheny             Allegheny County      Allegheny County        Soldiers' and Sailors'
  Contributions           HealthChoices, Inc      Parks Foundation     Conservation District         Memorial Hall        Totals




             -                       61,447                   -                      -                          -              61,447


        1,228,536                     -                    969,491                                              -            969,491


             -                        -                       -                    90,384                       -              90,384


          115,048                     -                       -                      -                      (613,137)       (613,137)


        1,343,584                    61,447                969,491                 90,384                   (613,137)        508,185




                      $               -                       -                      -                       542,225         542,225
                                      3,980                   2,059                      691                    -                  6,730
                                      -                       -                      -                       (49,589)         (49,589)
                                      -                       -                      7,769                   108,481         116,250


                                      3,980                   2,059                  8,460                   601,117         615,616
                                     65,427                971,550                 98,844                    (12,020)      1,123,801
                                 1,102,533                 923,098                590,161                  4,343,624       6,959,416
                      $          1,167,960               1,894,648                689,005                  4,331,604       8,083,217




                                                                                         309
SUPPORTING SCHEDULES
  FOR LONG-TERM DEBT
Schedule J-1 (Page 1 of 5)

                                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                                        Schedule of Long-Term Debt
                                            December 31, 2010




                                        Rate
                                         of                    Date of
                                                        ____________________                 Amount
                                                                                     __________________________
                                      Interest          Issue      Maturity          Issued       Outstanding



Nonelectoral Long-Term Debt:
________________________

General Obligation Bonds:
_____________________

Bridges                             Variable (1)       2-1-00          5-1-27 $      2,589,419         2,585,949
                                    Variable (2)     12-20-00          5-1-27        9,074,930         9,074,930
                                   4.350 - 5.250      12-1-00         11-1-20        3,120,942         2,490,806
                                   1.700 - 5.375       9-1-02         11-1-17        9,750,260         9,744,541
                                   1.250 - 5.000      8-15-03         10-1-16        9,788,315         2,058,232
                                   3.000 - 5.000      1-19-05         11-1-23        7,911,317         7,770,302
                                    Variable (3)      11-1-06         11-1-16       22,955,753        14,967,150
                                   3.750 - 5.000      3-14-07         11-1-16          404,930           321,074
                                      4.1355 (4)      3-14-07         11-1-26          619,376           491,111
                                   2.500 - 5.000      8-12-09         11-1-14        1,791,781         1,376,088
                                                                                    68,007,023        50,880,183



Roads                               Variable (1)       2-1-00          5-1-27        1,860,379         1,857,889
                                    Variable (2)     12-20-00          5-1-27        2,032,100         2,032,100
                                   4.350 - 5.250      12-1-00         11-1-20        2,242,254         1,789,529
                                   1.700 - 5.375       9-1-02         11-1-17       10,018,680        10,012,807
                                   1.250 - 5.000      8-15-03         10-1-16       21,459,365         4,512,353
                                   3.000 - 5.000      1-19-05         11-1-23       18,056,676        17,734,832
                                    Variable (3)      11-1-06         11-1-16        7,044,247         4,592,850
                                   3.750 - 5.000      3-14-07         11-1-16        1,919,044         1,521,636
                                      4.1355 (4)      3-14-07         11-1-26        2,935,343         2,327,474
                                   2.500 - 5.000      8-12-09         11-1-14        6,533,834         5,017,984
                                                                                    74,101,922        51,399,454



(1)   At December 31, 2010, the rate was 3.30%; the maximum for this issue is 10%.
(2)   At December 31, 2010, the rate was 3.30%; the maximum for this issue is 10%.
(3)   At December 31, 2010, the rate was 3.30%; the maximum for this issue is 12%.
(4)   The 4.1355% is a synthetic fixed rate achieved through a pay-fixed, receive variable interest rate swap contract.




                                                          312
                                                             Schedule J-1 (Page 2 of 5)

                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                      Schedule of Long-Term Debt
                          December 31, 2010




                     Rate
                      of                   Date of                Amount
                                     ____________________ __________________________
                   Interest         Issue      Maturity   Issued       Outstanding



Airport           Variable (1)     2-1-00      5-1-27     6,552,722      6,543,952
                 4.350 - 5.250    12-1-00     11-1-20     7,897,781      6,303,170
                 1.700 - 5.375     9-1-02     11-1-17    20,241,204     20,229,339
                 1.250 - 5.000    8-15-03     10-1-16     1,075,876        297,503
                 3.000 - 5.000    1-19-05     11-1-23     5,803,989      5,700,537
                 3.750 - 5.000    3-14-07     11-1-16        17,652         13,997
                    4.1355 (4)    3-14-07     11-1-26        26,999         21,408
                                                         41,616,223     39,109,906

Parks             Variable (1)     2-1-00      5-1-27       500,050        499,380
                 4.350 - 5.250    12-1-00     11-1-20       602,694        481,005
                 1.700 - 5.375     9-1-02     11-1-17     2,617,882      2,616,349
                 1.250 - 5.000    8-15-03     10-1-16     4,053,171        852,278
                 3.000 - 5.000    1-19-05     11-1-23     3,491,735      3,429,498
                 3.750 - 5.000    3-14-07     11-1-16       427,502        338,972
                    4.1355 (4)    3-14-07     11-1-26       653,902        518,488
                 2.500 - 5.000    8-12-09     11-1-14     1,158,092        889,415
                                                         13,505,028      9,625,385


Transportation    Variable (2)   12-20-00      5-1-27     3,347,970      3,347,970
                 1.700 - 5.375     9-1-02     11-1-17     1,298,601      1,297,838
                 1.250 - 5.000    8-15-03     10-1-16     4,727,771        994,129
                 3.000 - 5.000    1-19-05     11-1-23     5,690,460      5,589,030
                 3.750 - 5.000    3-14-07     11-1-16       616,019        488,450
                    4.1355 (4)    3-14-07     11-1-26       942,254        747,126
                 2.500 - 5.000    8-12-09     11-1-14     2,428,743      1,865,275
                                                         19,051,818     14,329,818




                                     313
Schedule J-1 (Page 3 of 5)

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                  Schedule of Long-Term Debt
                                      December 31, 2010




                                 Rate
                                  of                  Date of                Amount
                                                ____________________ __________________________
                               Interest        Issue      Maturity   Issued       Outstanding



Municipal Improvements        Variable (1)    2-1-00      5-1-27      151,118        150,918
                             4.350 - 5.250   12-1-00     11-1-20      182,139        145,366
                             1.700 - 5.375    9-1-02     11-1-17      657,587        657,202
                             1.250 - 5.000   8-15-03     10-1-16      939,090        197,466
                             3.000 - 5.000   1-19-05     11-1-23      422,993        415,455
                             3.750 - 5.000   3-14-07     11-1-16      121,056         95,987
                                4.1355 (4)   3-14-07     11-1-26      185,165        146,820
                             2.500 - 5.000   8-12-09     11-1-14      178,560        137,134
                                                                                           0
                                                                     2,837,708     1,946,348

Communications               1.700 - 5.375    9-1-02     11-1-17       447,743       447,477
                             3.000 - 5.000   1-19-05     11-1-23     7,716,022     7,578,489
                             2.500 - 5.000   8-12-09     11-1-14     3,164,755     2,430,532
                                                                    11,328,520    10,456,498

Public Buildings              Variable (1)    2-1-00      5-1-27     1,357,446     1,355,626
                             4.350 - 5.250   12-1-00     11-1-20     1,636,084     1,305,751
                             1.700 - 5.375    9-1-02     11-1-17     7,946,080     7,941,425
                             1.250 - 5.000   8-15-03     10-1-16    46,371,805     9,750,802
                             3.000 - 5.000   1-19-05     11-1-23    15,382,917    15,108,729
                             3.000 - 5.000   1-19-05     11-1-23     3,346,374     3,286,727
                             3.750 - 5.000   3-14-07     11-1-16     3,583,299     2,841,247
                             3.750 - 5.000   3-14-07     11-1-16     1,091,065       865,121
                                4.1355 (4)   3-14-07     11-1-26     5,480,963     4,345,930
                                4.1355 (4)   3-14-07     11-1-26     1,668,877     1,323,276
                             2.500 - 5.000   8-12-09     11-1-14     2,801,500     2,151,552
                             2.500 - 5.000   8-12-09     11-1-14     3,256,121     2,500,701
                                                                    93,922,531    52,776,887

Science Center               1.700 - 5.375    9-1-02     11-1-17       64,708         64,673
                             1.250 - 5.000   8-15-03     10-1-16      362,886         76,305
                             3.750 - 5.000   3-14-07     11-1-16       36,590         29,013
                                4.1355 (4)   3-14-07     11-1-26       55,967         44,376
                                                                      520,151        214,367

Flood Control                1.700 - 5.375    9-1-02     11-1-17       48,530         48,502
                             1.250 - 5.000   8-15-03     10-1-16      272,163         57,228
                             3.750 - 5.000   3-14-07     11-1-16       27,442         21,759
                                4.1355 (4)   3-14-07     11-1-26       41,976         33,283
                                                                      390,111        160,772



                                               314
                                                                          Schedule J-1 (Page 4 of 5)

                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                                     Schedule of Long-Term Debt
                                         December 31, 2010




                                    Rate
                                     of                  Date of                Amount
                                                   ____________________ __________________________
                                  Interest        Issue      Maturity   Issued       Outstanding



Equipment                        Variable (1)    2-1-00      5-1-27       788,816       787,756
                                4.350 - 5.250   12-1-00     11-1-20       950,734       758,776
                                1.700 - 5.375    9-1-02     11-1-17     4,882,298     4,879,435
                                1.250 - 5.000   8-15-03     10-1-16    10,556,722     2,219,807
                                3.000 - 5.000   1-19-05     11-1-23    13,789,675    13,543,884
                                3.750 - 5.000   3-14-07     11-1-16     1,182,858       937,905
                                   4.1355 (4)   3-14-07     11-1-26     1,809,282     1,434,604
                                2.500 - 5.000   8-12-09     11-1-14     3,745,017     2,876,173
                                                                       37,705,402    27,438,340

Feasibility Studies              Variable (1)    2-1-00      5-1-27       130,570       130,400
                                4.350 - 5.250   12-1-00     11-1-20       157,373       125,597
                                1.700 - 5.375    9-1-02     11-1-17     1,013,965     1,013,370
                                1.250 - 5.000   8-15-03     10-1-16     4,216,019       886,520
                                3.000 - 5.000   1-19-05     11-1-23     1,389,539     1,364,770
                                3.750 - 5.000   3-14-07     11-1-16       384,152       305,539
                                   4.1355 (4)   3-14-07     11-1-26       587,594       467,347
                                2.500 - 5.000   8-12-09     11-1-14       601,505       461,956
                                                                        8,480,717     4,755,499



Geographic Information System   1.700 - 5.375    9-1-02     11-1-17      184,208        184,103
                                3.000 - 5.000   1-19-05     11-1-23      799,719        785,466
                                3.750 - 5.000   3-14-07     11-1-16       97,015         76,924
                                   4.1355 (4)   3-14-07     11-1-26      148,393        117,663
                                2.500 - 5.000   8-12-09     11-1-14      402,494        309,115
                                                                        1,631,829     1,473,271

Economic Development            1.700 - 5.375    9-1-02     11-1-17      322,131        321,942
                                3.000 - 5.000   1-19-05     11-1-23      754,132        740,691
                                3.750 - 5.000   3-14-07     11-1-16      182,910        145,031
                                   4.1355 (4)   3-14-07     11-1-26      279,776        221,839
                                2.500 - 5.000   8-12-09     11-1-14      573,917        440,768
                                                                        2,112,866     1,870,271




                                                  315
                                                                                    Schedule J-1 (Page 5 of 5)

                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                       Schedule of Long-Term Debt
                                           December 31, 2010




                                      Rate
                                       of                    Date of                Amount
                                                       ____________________ __________________________
                                     Interest         Issue      Maturity   Issued       Outstanding



Hospital Buildings and
   Equipment                      6.350 - 7.400      9-1-90         3-1-12       4,977,038      13,869,587   (5)
                                   Variable (1)      2-1-00         5-1-27      23,414,480      23,383,130
                                  1.700 - 5.375      9-1-02        11-1-17         211,123         210,997
                                  1.250 - 5.000     8-15-03        10-1-16         272,867          57,377
                                  3.000 - 5.000     1-19-05        11-1-23       4,404,861       4,326,348
                                  2.500 - 5.000     8-12-09        11-1-14         863,681         663,307
                                                                                34,144,050      42,510,746

Capital Projects                  3.000 - 5.000     1-19-05        11-1-23      81,874,591      80,415,242
                                  3.750 - 5.000     3-14-07        11-1-16      18,638,466      14,777,756
                                     4.1355 (4)     3-14-07        11-1-26      28,509,133      22,603,844
                                  3.750 - 5.000     3-14-07        11-1-32      56,625,000      56,610,000
                                  3.000 - 5.000     6-19-08        12-1-33      49,220,000      49,215,000
                                  2.500 - 5.000     8-12-09        11-1-29      80,000,000      79,995,000
                                     6.250         11-30-10        11-1-27       9,385,000       9,385,000
                                                                               324,252,190     313,001,842


           Total Bonds                                                         733,608,089     621,949,587

Other Long-Term Debt:
___________________

Other Long-Term Obligations       1.950 - 5.000     12-1-02       11-1-29       19,870,000       9,800,000
                                  3.050 - 4.000     9-29-05      12-15-18        4,172,500       1,590,000

           Total Other Long-Term Debt                                           24,042,500      11,390,000

           Total Nonelectoral Long-Term Debt                                 $ 757,650,589     633,339,587


                                  Premium, discount and other adjustments                       22,485,279
           Total Long-Term Debt                                                              $ 655,824,866


(5) Includes $10,676,277 accretion on Deferred Interest and Capital Appreciation Bonds.




                                                       316
                                                                                                                 Schedule J-2

                                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                                               Debt Issued and Retired
                                            Year Ended December 31, 2010




Nonelectoral Debt:
_______________                         Balance                                                                   Balance
   General Obligation Bonds:
   _____________________           December 31, 2009      Issued      Transfers     Retired      Accretion   December 31, 2010


Bridges                            $    54,922,313          -           -           4,042,130        -            50,880,183
Roads                                   56,869,789          -           -           5,470,335        -            51,399,454
Airport                                 39,707,343          -           -             597,437        -            39,109,906
Parks                                   10,546,428          -           -             921,043        -             9,625,385
Transportation                          15,670,444          -           -           1,340,626        -            14,329,818
Municipal Improvements                   2,141,207          -           -             194,859        -             1,946,348
Communications                          11,311,354          -           -             854,856        -            10,456,498
Public Buildings                        60,953,245          -           -           8,176,358        -            52,776,887
Equipment                               30,062,608          -           -           2,624,268        -            27,438,340
Feasibility Studies                      5,494,154          -           -             738,655        -             4,755,499
Flood Control                              198,246          -           -              37,474        -               160,772
Science Center                             264,332          -           -              49,965        -               214,367
Geographic Information System            1,605,081          -           -             131,810        -             1,473,271
Economic Development                     2,064,096          -           -             193,825        -             1,870,271
Hospital Buildings and Equipment        49,045,405          -           -           7,637,588    1,102,929        42,510,746
Capital Projects                       309,891,805      9,385,000
                                                                0       -           6,274,963        -           313,001,842

    Total Bonds Outstanding            650,747,850      9,385,000       -         39,286,192     1,102,929       621,949,587

    Other Long-Term Debt:
    ____________________

Other Long-Term Obligations             13,382,500          -           -           1,992,500       -             11,390,000

    Total Other Long-Term Debt          13,382,500          -           -           1,992,500       -             11,390,000

    Total Nonelectoral Debt        $ 664,130,350        9,385,000       -         41,278,692     1,102,929       633,339,587


                                                       Premium, discount and other adjustments                    22,485,279
                                                                                                             $   655,824,866




                                                                317
Schedule J-3 (Page 1 of 2)

                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                Statement of Indebtedness, Borrowing Power and Legal Debt Margin
                                 Year Ended December 31, 2010




                                         Computation of Legal Debt Limit


            * Gross Revenue - 2007                                    $ 1,104,544,523
            * Gross Revenue - 2008                                      1,141,500,357
            * Gross Revenue - 2009                                      1,072,366,627

                   Total                                              $ 3,318,411,507

                   Average                                            $ 1,106,137,169


            *Gross revenue for purposes of the debt statement includes all monies received from
              all sources during the fiscal year, as defined by Act 1978-52 amended by Act 1981-19
              and Act 1996-177, including special recurring revenues from state and federal
              programs for special purposes. These special recurring revenues are not included
              in the operating budget.




                                         Multiples to Determine Gross Borrowing Capacity

            For Counties: 300% of average                             $ 3,318,411,507



            For Counties with Lease Rental Debt: 400% of average      $ 4,424,548,676
                                                                        3,364,145,700




                                         Statement of Indebtedness

            Gross Debt:
                Bonds Issued and Outstanding:
                    Nonelectoral                                      $    621,949,587
                    Lease Rental                                            11,390,000

                           Total Nonelectoral and Lease Rental Debt   $    633,339,587




                                                      318
                                                                      Schedule J-3 (Page 2 of 2)

                 COUNTY OF ALLEGHENY, PENNSYLVANIA
    Statement of Indebtedness, Borrowing Power and Legal Debt Margin
                     Year Ended December 31, 2010




                           Legal Debt Margin



Legal Debt Limit                                         $ 3,318,411,507

       Less: Total Net Debt Applicable to Debt Limit          621,949,587

             Legal Debt Margin                           $ 2,696,461,920




       Legal Debt Margin Including Lease Rental Debt Less Self Liquidating Debt



Legal Debt Limit                                         $ 4,424,548,676

       Less: Total Net Debt Applicable to Debt Limit          633,339,587

             Legal Debt Margin                           $ 3,791,209,089




                                         319
                                 Statistical Section
   This part of the County of Allegheny's comprehensive annual financial report presents detailed
   information as a context for understanding w hat the information in the financial statements, note
   disclosures, and required supplementary information says about the County's overall financial
   health.




Contents                                                                                          Page


Revenue and Expenditure Overview                                                                322 - 333

   These comments and schedules contain information to help the reader assess the
   County's operating revenue and expenditures.


Financial Trends                                                                                335 - 344

   These schedules contain trend information to help the reader understand how the
   County's financial performance and w ell-being have changed over time.


Revenue Capacity                                                                                345 - 368

   These schedules contain information to help the reader assess the County's most
   significant local revenue source, the property tax.


Debt Capacity                                                                                   370 - 372
  These schedules present information to help the reader assess the affordability of the
  County's current levels of outstanding debt and the County's ability to issue additional
  debt in the future.


Demographic and Economic Information                                                            374 - 376

   These schedules offer demographic and economic indicators to help the reader
   understand the environment w ithin w hich the County's financial activities take place.


Operating Information                                                                           377 - 380

   These schedules contain service and infrastructure data to help the reader understand
   how the information in the County's financial report relates to the services the County
   provides and the activities it performs.


Component Unit (Airport Authority) Information                                                  381 - 382

   These schedules present information to help the reader assess the debt coverage
   requirements of the Airport Authority's Revenue Bonds and passenger volume trends.


Miscellaneous Information                                                                       383 - 389

   These schedules contain the principal officials and their salaries, County Council members
   and their expenditure reimbursements as w ell as a description of the primary
   governments functions.


Sources: Unless otherw ise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year. The County implemented
GASB Statement 34 in 2002; schedules presenting government-w ide information include
information beginning in that year.




                                                   321
                    COUNTY OF ALLEGHENY, PENNSYLVANIA


                          REVENUE AND EXPENDITURE OVERVIEW


      This overview relates to the finances of the primary government (Allegheny County)
governmental funds.

REVENUES:

        Operating revenues by source for governmental functions, General, Debt Service and
Liquid Fuels Funds, totaled $755,730,528 in 2010, which represents an increase of 3.3%
compared to revenues for 2009. Revenues are classified into the following general types:

* Property Taxes - real property taxes levied by the County.

* Sales and Use Taxes - the 1% local sales tax adopted by the County.

* Alcoholic Beverage/Rental Vehicle Taxes—the 7% (10% in 2008) Alcoholic Beverage and
      $2/day Rental Vehicle tax adopted by the County.

* Licenses and Permits - charges for the issuances of licenses and permits.

* Federal - monies received from the federal government such as grants, entitlements
      and reimbursements.

* State - grants, entitlements, shared revenues and reimbursements provided by the
      Commonwealth of Pennsylvania.

* Local Units - revenues provided by the Allegheny County Regional Asset District, as well as
      revenues received from local municipalities and school districts.

* Charges for Services - fees and charges for services rendered to a taxpayer,
      third-party or to another County fund.

* Fines and Forfeitures - charges levied by the Court of Common Pleas or District Justices.

* Interest Earnings - monies received from investments and management of idle cash.

* Miscellaneous - revenues from sources not otherwise provided for in other classifications.

* Net Other Financing Sources - monies received from capital projects and grants less other
      financing uses. For presentation of these schedules, all operating intrafund activity has
      been eliminated.

* Special Item - proceeds from the sale of land and building.




                                              322
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

      Revenues for 2010 and 2009 which support general governmental functions, and the
changes between years, are shown in the following table:

                         CHANGES IN OPERATING REVENUES BY SOURCE
                                              2010             2009
                REVENUE SOURCES              ACTUAL          ACTUAL         VARIANCE       PERCENTAGE



         TAXES – PROPERTY                $   264,893,858   $ 261,131,265      3,762,593         1.4

         TAXES – SALES AND USE                40,904,309      39,172,875      1,731,434         4.4

         DRINK/VEHICLE TAX                    32,796,256      32,714,434         81,822         0.3

         2% GAMING LSA                         4,839,223       1,575,008      3,264,215      207.3

         LICENSES AND PERMITS                  1,919,316       1,904,569         14,747         0.8

         FEDERAL REVENUES                     89,232,548      94,293,589     (5,061,041)       (5.4)

         STATE REVENUES                      187,429,104     188,893,512     (1,464,408)       (0.8)

         LOCAL UNITS REVENUES                 23,339,455      17,268,580      6,070,875       35.2

         CHARGES FOR SERVICES                 68,272,002      66,809,119      1,462,883         2.2

         FINES AND FORFEITURES                 4,787,652       4,976,114       (188,462)       (3.8)

         INTEREST EARNINGS                      373,457          789,574       (416,117)      (52.7)

         MISCELLANEOUS                         4,256,214       8,303,787     (4,047,573)      (48.7)

         TOTAL REVENUES                      723,043,394     717,832,426      5,210,968         0.7

         OTHER FINANCING SOURCES - NET        32,687,134       5,780,090     26,907,044      465.5

         SPECIAL ITEM                            -             8,250,000     (8,250,000)     (100.0)

                        TOTALS           $   755,730,528   $ 731,862,516   $ 23,868,012         3.3




        When compared to the previous year, 2010 revenues, other financing sources - net,
and special item increased by $23.9 million, or 3.3%. Overall, revenues from real property
taxes increased $3.8 million or 1.4% in fiscal year 2010. The property tax increase resulted
from the following (in millions):
               Current and delinquent taxes increased         $ 1.3
               Lien taxes increased                               1.9
               Interest and penalty increased                     0.1
               In lieu of taxes increased                         0.2
               Tax refunds decreased                               0.6
                       Net Change                              $ 3.8




                                                323
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

       Current and delinquent taxes increased due to a higher certified assessed values in
both 2010 and 2009. In addition, lien tax collections have increased as lien receivable
balances have increased since the 2007 sale of receivables.

        Sales tax revenues increased 4.4% or $1.7 million as November and December’s
collections indicated an upswing in the economy.

        Alcoholic Beverage/Rental Vehicle tax revenue remained consistent between years.
The tax (Transportation Fund) is restricted for expenditures related to the Port Authority
Transit.

       The 2% Gaming local share assessment tax increased $3.3 million in 2010, as the
Rivers Casino was only open for five months in 2009.

       Federal revenues decreased by $5.1 million or 5.4% as detailed below (in millions):

           Reimbursement for federal prisoners decreased                   $(0.7)
           Increased stimulus funding for foster care                        1.8
           Increase in skilled nursing care                                  1.0
           Decrease in Medicare Part A                                      (1.1)
           Decrease in Title IV-E - Child Placement                         (5.3)
           Decrease in TANF                                                 (0.5)
           Decrease in Title IV-E - Adoption                                (0.5)


       State revenues decreased by $1.5 million for the reasons detailed below (in millions):

           Decreased Crime Lab and Criminal Justice subsidies               $(1.8)
           Decreased Act 315 Health Department funding                       (0.7)
           Gaming license revenue ended in 2009, as the County’s
             $42.5 million for public investment in airport was repaid      (10.2)
           Increase in Kane’s Intergovernmental Transfers Program
             performance bonuses                                              3.2
           Increase in skilled nursing care                                   0.8
           Increase in Medicaid Paid Prescriptions                            0.3
           Increase in Act 148 Special Grant Incentives                      10.1
           Decrease in Act 148 CYF services                                  (3.5)
           Increase in Liquid Fuel Tax                                        0.3

        Local units revenues increased $6.1 million as the County received $6 million in repaid
loans from Redevelopment Authority’s (RAAC) Economic Development Fund Revolving Loan
Program.




                                              324
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

       Charges for services increased $1.5 million for the following reasons (in millions):

           General government revenue increased                            $0.3
           Increased reimbursements for Airport security                    0.3
           Golf fees decreased                                             (0.2)
           Swimming fees increased                                          0.2
           New ski rental and lesson fees                                   0.1
           Ice skating fees increased                                       0.1
           Patient income decreased                                        (0.6)
           Collections from guardians and parents decreased                (0.4)
           Private/Commercial insurance at Kane increased                   1.9
           Miscellaneous receipts decreased as Kane had no
             MA Disproportionate Share income                               (0.5)

      Interest earnings decreased $0.4 million as cash balances dwindled and interest rates
dropped throughout the year.

       Miscellaneous revenue decreased $4.1 million, as 2009 revenues for insurance
reimbursements ($1.0 million), unclaimed property ($1.2 million) and sales of property at Kane
($0.4 million) and Smithfield St. ($1.5 million) did not occur in 2010.

        Other financing sources - net were $32.7 million in 2010 for the following reasons (in
millions):

           PennDot reimbursements from Capital Projects Fund                $41.5
           Reimbursement for capital assets from Capital Projects Fund        0.5
           Excess Debt Service funds                                          0.4
           Interdepartmental transfer agreements                              0.7
           Matching requirement and County Grant deficit funding             (7.2)
           Matching requirement for Human Service grants                     (4.8)




                                              325
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

       The following table details the variances between budgeted and actual revenues for
general governmental functions, as well as the ratio of actual to budget for 2010:


                COMPARISON OF BUDGETED TO ACTUAL OPERATING REVENUES BY SOURCE
                                 2010
                                 FINAL              2010
      REVENUE SOURCES           BUDGET            ACTUAL            VARIANCE                 PERCENTAGE

 TAXES – PROPERTY              $   265,089,000              264,893,858          (195,142)       (0.1)
 TAXES – SALES AND USE              40,290,000               40,904,309           614,309         1.5
 TAXES – DRINK/VEHICLE              31,879,652               32,796,256           916,604         2.9
 2% GAMING LSA                       6,000,000                4,839,223        (1,160,777)      (19.3)
 LICENSES AND PERMITS                1,861,200                1,919,316            58,116         3.1
 FEDERAL REVENUES                   94,274,364               89,232,548        (5,041,816)       (5.3)
 STATE REVENUES                    205,284,915              187,429,104       (17,855,811)       (8.7)
 LOCAL UNITS REVENUES               17,855,000               23,339,455         5,484,455        30.7
 CHARGES FOR SERVICES               63,381,777               68,272,002         4,890,225         7.7
 FINES AND FORFEITURES               4,915,500                4,787,652          (127,848)       (2.6)
 INTEREST EARNINGS                   1,927,000                  373,457        (1,553,543)      (80.6)
 MISCELLANEOUS                       6,023,075                4,256,214        (1,766,861)      (29.3)
 TOTALS                             738,781,483              723,043,394      (15,738,089)       (2.1)
 OTHER FINANCING SOURCES   -
 NET                                32,775,000               32,687,134
 TOTAL                         $   771,556,483              755,730,528



        The final revenue budget exclusive of other financing sources for 2010 was
$738,781,483, while actual collections were $723,043,394. Actual revenues were 2.1% or
$15.7 million less than projected. Both the Alcoholic Beverage and Sales taxes exceeded
projections as the economy appears to be recovering. Less slot machines and fewer patrons
at the Casino resulted in $1.2 million less gambling revenues. The negative variances in state
($17.8 million) and federal ($5.0 million) are generally offset by less expenditures, as grant
programs dictate.

        Allocations of the real property tax levy for 2010 and the preceding two years were as
follows (amount per $100 assessed value):


                     PURPOSE                       2010         2009        2008

                     GENERAL FUND           $     0.35806      0.40697     0.37616


                     DEBT SERVICE FUND            0.11094      0.06203     0.09284


                     TOTAL TAX RATE         $     0.46900      0.46900     0.46900




                                                  326
                   COUNTY OF ALLEGHENY, PENNSYLVANIA

EXPENDITURES:

      Expenditures, excluding net other financing uses and internal service funds, totaled
$756,078,438 in 2010, which represents an increase of 2.1% from the previous year.
Expenditures fall into ten general classifications:

  * General Government - represents services provided by the administrative, elected
     row offices and judicial branches of government.

  * Public Safety - includes such services as emergency management, the jail and law
     enforcement departments involved in the protection of County residents.

  * Public Works - accounts for those expenditures that provide for physical
     infrastructure essential to the County, including roads, bridges and parks.

  * Transportation - includes contributions to the PAT.

  * Health & Welfare - includes expenditures to address the needs of older adults,
     abused and neglected children, infirm adults and mentally ill and retarded residents.

  * Culture & Recreation - accounts for the various recreational and cultural events,
     programs and facilities, including the extensive County-wide park system.

  * Education - includes expenditures to provide formal and informal opportunities to
     County residents, including the CCAC.

  * Economic Development - represents various development and promotional programs
     designed to attract new companies to the region.

  * Debt Service - reflects scheduled payments for long-term debt.

  * Net Other Financing Uses - includes payments to capital projects and grants less other
     financing sources. For presentation of these schedules, all operating intrafund activity
     has been eliminated.




                                             327
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

      Expenditures by classification for 2010 and 2009, and the changes between years, are
shown in the following table:



          CHANGES IN OPERATING EXPENDITURES BY FUNCTION

                                  2010                2009
   EXPENDITURE FUNCTION          ACTUAL              ACTUAL        VARIANCE       PERCENTAGE


 GENERAL GOVERNMENT          $   165,043,845   $     166,708,068    (1,664,223)      (1.0)

 PUBLIC SAFETY                    81,383,463          78,837,379     2,546,084        3.2

 PUBLIC WORKS                     29,989,178          29,063,327       925,851        3.2

 TRANSPORTATION                   27,668,700          27,668,699              1       0.0

 HEALTH AND WELFARE              343,550,367         337,536,389     6,013,978        1.8

 CULTURE AND RECREATION           10,150,132           9,498,465       651,667        6.9

 EDUCATION                        22,488,000          22,010,000       478,000        2.2

 ECONOMIC DEVELOPMENT              5,847,833           6,494,647      (646,814)     (10.0)

 DEBT SERVICE:
  PRINCIPAL RETIREMENT            41,387,500          38,232,500     3,155,000        8.3
  INTEREST CHARGES                28,528,970          24,612,032     3,916,938       15.9
 COST OF ISSUANCE                     40,450            155,834       (115,384)     (74.0)

 TOTAL EXPENDITURES          $   756,078,438   $     740,817,340    15,261,098        2.1



        As previously indicated, total outlays increased by 2.1%, or $15.3 million, during
2010. General government expenditures decreased by $1.7 million, public safety expenditures
increased by $2.5 million, public works expenditures increased by $0.9 million, transportation
expenditures remained the same, health and welfare expenditures increased by $6.0 million,
culture and recreation expenditures increased by $0.7 million, education expenditures
increased by $0.5 million, economic development expenditures decreased by $0.6 million and
debt service principal, interest, and cost of issuance payments increased by $7.0 million.




                                               328
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

        The increase in expenditures of $15.3 million, from $740.8 million in 2009 to $756.1
million in 2010, is explained below.

         General government expenditures decreased by $1.7 million for the following reasons
(in millions):

       No 2010 Capital lease cost                                          $(7.7)
       Non-departmental
           Decrease in Voluntary Separation payments                         (0.4)
           Transfer of lease payments                                        (0.5)
       Salary and fringe benefits increases:
           Courts                                                            2.5
           Administrative Services                                           0.7
           Public Defender                                                   0.7
           District Attorney                                                 0.7
           Sheriff                                                           0.7
           Court Records                                                     0.3
           Treasurer’s Office                                                0.3
       Increase in Property Assessment postage/temps                         0.8
       Increase in Medical Examiner lease payments                           0.5

        Public safety expenditures rose by $2.5 million as salary and fringe benefits increased
at the Jail ($0.9 million) and County Police ($1.0 million). In addition, the Jail’s services
increased $0.3 million and supplies increased $0.1 million.

        Public works expenditures increased $0.9 million, as rock salt purchases increased $0.8
million and salaries and fringe benefits of maintenance rose $0.8 million. These increases
were offset by transfers of eligible costs to the Celebration of Lights project.

         Health and welfare expenditures increased $6.0 million. Kane Regional Centers salaries
and fringe benefits rose $1.6 million and the Health Department’s Environmental Health
Services increased $0.3 million. Medical costs for inmates rose $1.7 million and CYF’s
expenditures for foster care payroll, legal council and payment to providers increased $2.2
million.

       Culture and recreation expenditures increased $0.7 million as salary and fringe benefits
rose $0.1 million, material cost for rock salt increased $0.2 million and unexpected legal
settlements of $0.6 million.

        Economic development’s $0.6 million decrease in expenditures was related to a $0.7
million return of excess escrow funds used to pay debt service for RAAC’s Economic
Development Fund.




                                              329
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

        Debt service payments rose $7.0 million in 2010, as principal payments increased $3.2
million and interest payments escalated $3.8 million. The principal payments for Series 18 and
C-57 were responsible for the increase and the C-62 Bond contributed to the increase in
interest expenditures.

       The following table shows expenditures by function as compared to the adopted
budget, as amended, for 2010. The budget figure of $773,480,142 includes reappropriations
for open encumbrances at the end of 2009 of $686,266.

        The Health and Welfare expenditures variance of $13.2 million dollars is directly related
to the budget variance decrease in State and Federal revenues.



          COMPARISON OF BUDGETED TO ACTUAL OPERATING EXPENDITURES BY FUNCTION
                                 2010
                                     FINAL             2010
  EXPENDITURE FUNCTION              BUDGET           ACTUAL           VARIANCE       PERCENTAGE

  GENERAL GOVERNMENT           $    167,268,498      165,043,845        2,224,653       1.3
  PUBLIC SAFETY
                               $     82,253,544       81,383,463          870,081       1.1
  PUBLIC WORKS                       30,973,557       29,989,178          984,379       3.2
  TRANSPORTATION                     27,668,700       27,668,700            -            -
  HEALTH AND WELFARE                356,761,765      343,550,367       13,211,398       3.7
  CULTURE AND RECREATION             10,157,104       10,150,132            6,972       0.1
  EDUCATION                          22,488,000       22,488,000            -            -
  ECONOMIC DEVELOPMENT                6,618,797         5,847,833         770,964      11.6

 DEBT SERVICE:
  PRINCIPAL RETIREMENT               41,387,500       41,387,500            -            -
  INTEREST CHARGES                   28,548,493       28,528,970           19,523       0.1
  COST OF ISSUANCE                       40,450           40,450            -             -

 TOTALS                             774,166,408      756,078,438       18,087,970       2.3
 LESS: REAPPROPRIATIONS                (686,266)              -          (686,266)
 TOTALS                         $   773,480,142      756,078,438       17,401,704       2.2




                                              330
                       COUNTY OF ALLEGHENY, PENNSYLVANIA

        The following two tables pertain only to the County’s General Fund. Please refer to
Exhibit A-3 in the financial section for a more complete analysis. Departmental expenditures
for the year 2010 were as follows:

                               SUMMARY OF GENERAL FUND EXPENDITURES
                                  2010
                                ADOPTED
                                 BUDGET            2010
                               INCLUDING         BUDGET          2010            2010
                                REAPPRO-       AMENDMENTS/       FINAL          ACTUAL
  DEPARTMENT                   PRIATIONS        TRANSFERS       BUDGET       EXPENDITURES   VARIANCE

 COUNTY
 ADMINISTRATION:
  Chief Executive          $         428,546            -          428,546        351,598      76,948
  County Manager                   1,062,487            -        1,062,487      1,009,423      53,064
  Budget and Finance                 804,086            -          804,086        741,752      62,334
  Solicitor                        2,266,517         19,005      2,285,522      2,134,196     151,326
                                   4,561,636         19,005      4,580,641      4,236,969     343,672
 Human Resources                   1,312,606            -        1,312,606      1,297,222      15,384
 M/W/DBE                             464,833            -          464,833        409,693      55,140
 Public Defender                   7,460,808        609,846      8,070,654      8,070,561          93
 ADMINISTRATIVE
 SERVICES:
  Administration                   5,983,460       (450,660)     5,532,800      5,667,886    (135,086)
  MIS                              5,760,215       (185,802)     5,574,413      5,550,039      24,374
  Purchasing & Supplies              650,324        (46,500)       603,824        523,591      80,233
  Elections                        5,135,704          9,740      5,145,444      5,130,605      14,839
  Veterans’ Affairs                  652,646        (11,730)       640,916        638,125       2,791
  Property Management              2,762,338       (103,500)     2,658,838      2,602,425      56,413
  Property Assessment              5,210,158        788,452      5,998,610      5,925,894      72,716
                                  26,154,845            -       26,154,845     26,038,565     116,280
 Medical Examiner                  8,161,515         59,062      8,220,577      8,219,271       1,306
 Jail                             56,729,229     (1,984,000)    54,745,229     54,557,844     187,385
 County Police                    26,200,420     (1,125,560)    25,074,860     24,683,356     391,504
 Emergency Management              2,433,455            -        2,433,455      2,142,263     291,192
 Public Works / Parks             34,827,051      1,640,610     36,467,661     35,477,085     990,576
  HUMAN SERVICES:
  Aging                             550,000             -         550,000             -       550,000
  Children, Youth and
      Families                   181,300,893     (1,621,000)   179,679,893    175,525,418    4,154,475
  Behavioral Health and                                                -
      Mental Retardation           4,800,000            -        4,800,000            -      4,800,000
                                 186,650,893     (1,621,000)   185,029,893    175,525,418    9,504,475
 Health Department         $      28,199,853       (358,100)    27,841,753     26,898,369      943,384




                                                 331
                          COUNTY OF ALLEGHENY, PENNSYLVANIA


                               SUMMARY OF GENERAL FUND EXPENDITURES – continued
                                      2010
                                    ADOPTED
                                     BUDGET          2010
                                   INCLUDING        BUDGET        2010          2010
                                    REAPPRO-     AMENDMENTS/      FINAL        ACTUAL
DEPARTMENT                         PRIATIONS       TRANSFERS     BUDGET     EXPENDITURES         VARIANCE

Court Records-Administration             773,228            -           773,228       646,835       126,393
Court Records-Criminal                  2,022,368          60,930      2,083,298     2,058,452       24,846
Court Records - Civil                   2,840,131          (9,150)     2,830,981     2,829,915        1,066
Court Records - Wills/Orphans           1,950,829       (51,780)       1,899,049     1,841,542       57,507
Real Estate                             3,071,098           -          3,071,098     2,817,731      253,367
Shuman Juvenile Detention              11,880,132      (487,928)      11,392,204    11,040,313      351,891
Kane Regional Centers                  96,236,176       972,740       97,208,916    97,002,796      206,120
Institutional Care/C.I.S.P./
  Home Detention                       34,648,083           -         34,648,083    32,445,346    2,202,737
Miscellaneous Grant
 Agencies                              25,516,797          18,000     25,534,797    24,870,616      664,181
Non-departmental
 Operating Expenditures                10,296,762     2,332,270       12,629,032    12,462,574      166,458
TOTAL ADMINISTRATION                  572,392,748          74,945    572,467,693   555,572,736   16,894,957
County Council                           951,603            -           951,603       750,019       201,584
ROW OFFICES:
 Controller                             6,308,007         -            6,308,007     5,968,221      339,786
 District Attorney                     14,121,391        29,650       14,151,041    14,048,542      102,499
 Sheriff                               13,646,170       433,670       14,079,840    13,575,080      504,760
 Treasurer                              5,746,327       (12,940)       5,733,387     5,721,004       12,383
                                       39,821,895       450,380       40,272,275    39,312,847      959,428
Court of Common Pleas                  57,634,669     1,065,425       58,700,094    58,697,216        2,878
Debt Service                             674,614       (498,170)        176,444       166,839         9,605


TOTALS                                671,475,529     1,092,580      672,568,109   654,499,657   18,068,452
LESS: REAPPROPRIATIONS                   (686,266)
TOTAL ADOPTED BUDGET             $    670,789,263




                                                     332
                           COUNTY OF ALLEGHENY, PENNSYLVANIA

   The following chart details the changes in fund balances in the General Fund for the year
   2010:


                                       CHANGES IN FUND BALANCES – GENERAL FUND
                                                                               UNRESTRICTED                       TOTAL
                                                                 ASSIGNED        UNASSIGNED        TOTAL           FUND
  DESCRIPTION                                 RESTRICTED                                                        BALANCES

Audited Fund Balances as of 1/1/2010          $     -               686,266       19,464,842     20,151,108     20,151,108
2010 Operating Activity
and Use of Fund Balance:
Liquidation of 2009
   Encumbrance Balance                              -              (686,266)            -          (686,266)      (686,266)
Reclass 2010 Encumbrances
   to Assigned                                      -               912,842          (912,842)         -              -
Revenue Variance                                    -                 -           (54,474,517)   (54,474,517)   (54,474,517)
Expenditure Variance                                -                 -            16,975,872     16,975,872     16,975,872
Net Operating Activity and
  Use of Fund Balance                               -               226,576       (38,411,487)   (38,184,911)   (38,184,911)
Transfers/Adjustments:
Transfers from:
   Capital Projects Fund                            -                 -              491,259        491,259        491,259
   Debt Service (PennDot Reimbursements)            -                 -           41,918,075     41,918,075     41,918,075
   County Grants Fund                               -                 -              654,815        654,815        654,815
Transfers to:
   Human Service Grants Fund                        -                 -            (4,790,965)    (4,790,965)    (4,790,965)
   County Grants Fund                               -                 -            (7,220,474)    (7,220,474)    (7,220,474)
One Time Adjustments:
   RAAC EDF Fund                                                                   6,000,000      6,000,000      6,000,000
   Excess RAD Tax Receipts                                                           715,841        715,841        715,841
   Department of Real Estate                                                         456,000        456,000        456,000
   Administrative Services                          -                 -              198,816        198,816        198,816
                                                    -                 -           38,423,367     38,423,367     38,423,367
Audited Fund Balances as of 12/31/2010        $     -               912,842       19,476,722     20,389,564     20,389,564


      The 2010 fund balance increased $0.2 million from 20.2 million in 2009 to $20.4 million
  in 2010. Operating use of fund balance reduced fund balance by $38.2 million. The
  reduction is indicative of the County’s inability to match operating revenues with operating
  expenditures. One-time operating adjustments of $48.9 million (including $41.5 million in
  PennDot reimbursements) were required to fund the operating deficit of $38.2 million, pay
  Human Service Grants match of $4.8 million and fund grant deficits of $7.2 million to
  maintain the $19.5 million unassigned fund balance.




                                                           333
                                                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                                                        Net Assets by Component
                                                                                             Last Nine Years
                                                                                      (accrual basis of accounting)




                                                                                                                                    Year
                                                                  2010 (2)              2009            2008         2007           2006              2005            2004            2003            2002




      Governmental activities


         Invested in capital assets, net of related debt    $      28,662,998        19,424,481      12,573,557    15,310,218    (20,764,154) (1) (281,734,247)   (307,136,702)   (291,284,974)   (309,709,570)


         Restricted                                                34,498,072        30,845,228      33,661,957    22,448,499    57,845,131        22,735,636      26,235,636      27,853,205      31,941,370


         Unrestricted                                           (143,897,663)       (79,033,969)    (30,661,372)   (5,959,012)   18,224,316        19,627,611      23,385,261      26,681,971       (3,036,998)


      Total primary government net assets                   $     (80,736,593)      (28,764,260)     15,574,142    31,799,705    55,305,293      (239,371,000)    (257,515,805)   (236,749,798)   (280,805,198)




335
      (1) Beginning in 2006 the County has recorded infrastructure on a retroactive basis.
      (2) Specific details on Net Assets can be found in the Management's Discussion and Analysis on page 34.
                                                                                                                                                                                                                  Table I
                                                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                                              Changes in Net Assets
                                                                                 Last Nine Years
                                                                           (accrual basis of accounting)




                                                                                                                          Year
                                                                                                                                                                                                      Table II (Page 1 of 2)




                                                        2010 (2)          2009            2008            2007            2006            2005            2004          2003 (1)          2002


      Program Revenues
      Governmental activities:
      Charges for services:
          General government                      $     46,725,554      47,993,725      45,167,925      42,962,561      46,656,215      38,717,217      40,364,724      39,391,635      35,313,770
          Public safety                                 17,521,407      17,445,708      17,276,529      16,916,065       7,996,256      13,914,143      16,509,513      15,392,873      15,058,639
          Public works                                     343,400       1,149,994         136,536          88,904         139,535          79,006          91,914          79,479          94,619
          Health and welfare                            32,979,556      32,392,534      29,652,780      28,878,192      27,106,110      20,620,466      16,858,824      23,813,595      28,718,361
          Culture and recreation                          4,774,538      5,103,099       5,312,417       4,947,218       4,230,989        4,340,921      4,276,996       4,621,272       5,319,871
          Economic development                            2,364,980      1,142,995          82,940         849,983       1,460,762        2,544,006      2,305,449       2,728,808         864,894
      Operating grants and contributions               979,847,878    1,064,758,872   1,149,756,664   1,067,475,009   1,005,012,937    945,911,953     945,074,839     872,292,852     839,407,998
      Capital grants and contributions                  39,983,676      28,611,935      18,284,746      22,297,167      39,524,411      11,650,320       8,866,788      17,265,679      10,128,292


      Total primary government program revenues       1,124,540,989   1,198,598,862   1,265,670,537   1,184,415,099   1,132,127,215   1,037,778,032   1,034,349,047    975,586,193     934,906,444




336
      Expenses
      Governmental activities:
      General government                               256,858,694     235,125,122     240,796,592     220,612,402     208,895,665     196,252,521     186,428,835     190,978,567     173,637,809
      Public safety                                    121,367,760     115,519,420     118,028,180      96,763,905      92,101,560      87,026,803      79,468,556      73,049,788      75,829,126
      Public works                                      66,509,806      84,735,917      44,554,071      38,480,324      52,379,755      18,993,264      55,653,739      25,416,837      34,568,295
      Transportation                                    36,283,608      37,579,478      32,713,060      29,543,500      19,408,500      27,620,545      25,858,500      29,958,505      27,300,000
      Health and welfare                               856,172,605     960,062,647    1,027,498,783    987,661,898     932,813,727     878,577,923     860,508,460     818,183,399     796,808,795
      Culture and recreation                            19,871,911      12,652,579      10,218,233      16,246,863      10,799,488        7,293,227      8,175,797      14,221,412      16,927,604
      Education                                         22,603,860      22,133,800      21,718,462      21,651,655      21,714,305      21,518,829      21,475,258      21,581,283      21,014,647
      Economic development                              45,699,609      29,792,079      38,800,500      35,672,864      22,641,206      39,353,760      41,499,132      32,588,254      37,105,290
      Economic opportunity                              38,243,840      37,277,998      34,537,949      41,310,739      41,777,503      37,584,417      44,686,407      52,241,889      18,817,927
      Interest on long-term debt                        29,076,616      27,929,366      29,387,834      29,346,447      27,638,096      25,703,364      29,399,189      30,777,632      32,957,380


      Total primary government expenses               1,492,688,309   1,562,808,406   1,598,253,664   1,517,290,597   1,430,169,805   1,339,924,653   1,353,153,873   1,288,997,566   1,234,966,873


      Net (Expense)/Revenue
      Governmental activities                     $   (368,147,320)   (364,209,544)   (332,583,127)   (332,875,498)   (298,042,590)   (302,146,621)   (318,804,826)   (313,411,373)   (300,060,429)


      Total primary government net expense        $   (368,147,320)   (364,209,544)   (332,583,127)   (332,875,498)   (298,042,590)   (302,146,621)   (318,804,826)   (313,411,373)   (300,060,429)
                                                                                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                                                      Changes in Net Assets (continued)
                                                                                               Last Nine Years
                                                                                        (accrual basis of accounting)




                                                                                                                                             Year
                                                                   2010 (2)            2009                2008              2007           2006          2005          2004          2003 (1)       2002


      General Revenues and Other Changes in Net Assets
      Governmental activities:
      Taxes:
      Property and other local taxes levied for:
          General purposes                                   $   205,723,613        231,312,634         208,179,128        203,087,574    218,467,780   212,509,959   207,025,400    210,600,361   198,207,676
          Debt service                                             62,028,968         35,077,512         52,036,511         47,887,423     52,171,627    50,745,705    44,963,706     60,314,698    66,922,409
      Sales tax                                                    40,904,309         39,172,875         40,351,848         40,220,736     38,788,808    37,612,919    36,530,399     35,774,119    36,525,074
      Gaming local share assessment                                 4,839,223          1,575,008               -                 -              -             -             -              -             -
      Interest and investment earnings                                710,231          4,161,339         10,435,929         10,794,629      8,309,545     5,547,279     3,173,841      3,102,263     6,781,515
      Gain on sale of capital assets                                    -              3,979,041               -                 -              -             -             -              -             -
      Miscellaneous                                                 1,968,643          4,592,733          5,354,148          7,379,548      8,185,931    13,875,564         -          4,940,332    10,091,246
      Transfers                                                         -                  -                   -                 -              -             -         6,345,473          -             -




337
      Total primary government                                   316,174,987        319,871,142         316,357,564        309,369,910    325,923,691   320,291,426   298,038,819    314,731,773   318,527,920



      Change in Net Assets
      Governmental activities                                     (51,972,333)       (44,338,402)       (16,225,563)       (23,505,588)    27,881,101    18,144,805   (20,766,007)     1,320,400    18,467,491


      Total primary government change in net assets          $    (51,972,333)       (44,338,402)       (16,225,563)       (23,505,588)    27,881,101    18,144,805   (20,766,007)     1,320,400    18,467,491




      (1) In 2003 the County reclassified some Health and welfare programs to Economic opportunity.
      (2) Specific details on changes in Net Assets can be found in Management's Discussion and Analysis on pages 35-36.
                                                                                                                                                                                                                 Table II (Page 2 of 2)
                                                                                                          Table III

                                     COUNTY OF ALLEGHENY, PENNSYLVANIA
                                       Fund Balances, Governmental Funds
                                                      2010
                                      (modified accrual basis of accounting)




                                             2010


General Fund
 Restricted                          $              -
 Committed                                          -
 Assigned                                      912,842
 Unassigned                                 19,476,722
Total general fund                          20,389,564

All Other Governmental Funds
  Restricted:
    County Grants Fund                      27,105,088
    Human Services Grants Fund                 310,924
    Capital Projects                         7,309,286
    Transportation Fund                      5,158,730
    Liquid Fuel Fund                           476,077
  Committed:
    County Grants                            1,112,369
  Assigned:
    County Grants                              334,884
  Unassigned:
    County Grants                              (38,915)
    Capital Projects                       (24,626,208)


Total all other governmental funds          17,142,235


Total governmental funds             $      37,531,799




Note: This schedule is being prepared prospectively in accordance with GASB 54. The next schedule has been included to
provide unrestated prior years' information as it was presented in the prior years' reports.




                                                          339
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                               Fund Balances, Governmental Funds
                                                        Last Nine Years
                                                 (modified accrual basis of accounting)




                                                                                                                Year
                                                    2009                          2008                          2007                      2006                2005            2004


General Fund
 Reserved                                    $       686,266                      985,974                      1,029,005                  832,676             907,780         805,315
 Unreserved                                       19,464,842              18,505,390                          26,327,036            17,391,640              17,237,052      17,004,158

Total general fund                                20,151,108              19,491,364                          27,356,041 (2)        18,224,316              18,144,832      17,809,473

All Other Governmental Funds
  Reserved                                        94,574,439              58,335,197                          82,050,551            68,886,275              49,273,182      69,299,420
  Unreserved:
   Designated, reported in:
    Transportation                                     -                  12,000,000                               -                             -               -               -
    Debt Service                                   1,923,659               2,237,138                               -                             -               -               -
  Undesignated, reported in:
    Special revenue funds:
      Human service grants                                      329                68,779                       269,786                      85,145            (31,709)          -
     County grants                                                                  -                         (6,008,680)                        -               -               -
     Liquid fuel                                            -                     146,899                       374,010                          5,580        104,990         348,085
     Transportation                                         -                     430,496                          -                             -               -               -
   Debt service funds                                       -                       -                              -                             -               -            (120,400)


Total all other governmental funds                96,498,427              73,218,509                          76,685,667            68,977,000              49,346,463      69,527,105


Total governmental funds                     $ 116,649,535                92,709,873                    104,041,708                 87,201,316              67,491,295      87,336,578


   (1) The substantial increase in reserved fund balance in 2002 is due to the County issuing G.O. Bond Series C-54 for
   capital projects.
   (2) The increase can be attributed to the sale of tax receivables and state gaming revenue to reimburse the County
   for its public investment in the Airport.

   Note: This schedule is being included to provide prior years' infromation as it was presented in prior years' reports.

                                    Unreserved General Fund Balance
                               Unassigned General Fund Balance
                         50,000,000
                         45,000,000
 50,000,000              40,000,000
 45,000,000              35,000,000
                         30,000,000
 40,000,000              25,000,000
 35,000,000              20,000,000
                         15,000,000
 30,000,000              10,000,000
 25,000,000               5,000,000
                                  0
 20,000,000
                                        2009



                                                     2008



                                                                   2007



                                                                           2006



                                                                                         2005



                                                                                                       2004



                                                                                                                   2003



                                                                                                                            2002



                                                                                                                                          2001




 15,000,000
 10,000,000
  5,000,000
          0
                                                                           340
                                                            2007




                                                                                                                                                     2002
                      2009



                                      2008




                                                                          2006



                                                                                                2005



                                                                                                                  2004



                                                                                                                                   2003




                                                                                                                                                                     2001
                                                                                                  Table IV

                                                        COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                          Fund Balances, Governmental Funds
                                                                   Last Nine Years
                                                         (modified accrual basis of accounting)




                                                       Year
           2005              2004          2003                 2002                  2001




76         907,780           805,315       1,332,027            4,163,972         15,685,749
40       17,237,052        17,004,158     16,337,779           43,244,624         30,462,980

16       18,144,832        17,809,473     17,669,806           47,408,596         46,148,729



75       49,273,182        69,299,420    101,391,371          141,270,888 (1)     86,758,107


                -               -              -                    -                    -
                -               -              -                    -                    -



45          (31,709)            -              -                    -                        3
                -               -              -                    -             14,659,772
80         104,990           348,085        701,720              535,576               285,017
                -               -              -                    -                    -
                -            (120,400)     1,216,815                -                    -


00       49,346,463        69,527,105    103,309,906          141,806,464        101,702,899


16       67,491,295        87,336,578    120,979,712          189,215,060        147,851,628


Series C-54 for


rse the County


ars' reports.




                                                                                341
  2002



                    2001
                                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                Changes in Fund Balances, Governmental Funds
                                                               Last Nine Years
                                                         (modified accrual basis of accounting)




                                                                                                                        Year
                                                                          2010                   2009                 2008                    2007                    2006               2005              2

Revenues
Property taxes                                                   $      264,893,858          261,131,265           254,991,590             273,781,207      (1)    261,706,231        258,824,114       252,
Sales and use tax                                                        40,904,309           39,172,875            40,351,848              40,220,736              38,788,808         37,612,919        36,
Alcoholic beverage and rental vehicle taxes                              32,796,256           32,714,434            42,869,521                   -                       -                  -
Gaming local share assessment                                             4,839,223            1,575,008                 -                       -                       -                  -
Licenses and permits                                                      1,919,316            1,904,569             1,754,750               1,834,096               1,892,227          1,873,429         1,
Federal revenues                                                        283,689,849          308,912,948           341,309,161             339,976,306             346,663,975        332,109,811       372,
State revenues                                                          668,128,684          726,036,806           760,222,230             725,022,327             673,692,647        605,042,641       549,
Local governmental units revenues                                        23,339,455           18,034,580            18,476,488              15,736,417              47,230,509 (3)     14,981,926        16,
Charges for services and facilities                                      91,699,952           91,614,877            85,145,408              86,136,799              75,794,785         73,417,036        79,
Fines and forfeitures                                                     4,787,652            3,401,106             6,709,309               4,578,532               4,535,001          4,268,189         3,
Interest earnings                                                           710,231            4,161,339            10,435,929              10,794,629               8,309,545          4,570,903         3,
Miscellaneous                                                            20,063,968           20,572,275            14,223,393              18,510,170              18,059,632         13,875,564        17,

Total revenues                                                       1,437,772,753         1,509,232,082          1,576,489,627        1,516,591,219              1,476,673,360      1,346,576,532     1,333,

Expenditures
Current:
  General government                                                    210,868,288          212,055,686            198,296,528            190,182,567             186,647,940        181,665,994       172,
  Public safety                                                         114,993,307          111,510,274            110,130,385             94,312,966              93,317,264         86,368,784        78,
  Public works                                                           32,835,821           30,069,070             28,765,818             29,619,137              27,319,081         25,417,546        25,
  Transportation                                                         27,668,700           27,668,699             27,453,060             24,358,500              15,858,500         23,858,500        23,
  Health and welfare                                                    866,137,793          965,405,256          1,027,909,167            987,309,779             935,844,903        881,984,389       859,
  Culture and recreation                                                 10,968,163            9,945,524              9,591,707              9,460,986               8,504,443          8,606,495         7,
  Education                                                              22,603,860           22,133,800             21,718,462             21,651,655              21,714,305         21,518,829        21,
  Economic development                                                   45,685,082           29,733,782             38,655,220             35,500,311              30,522,308         39,365,304        41,
  Economic opportunity                                                   38,243,840           37,277,998             34,537,949             41,310,739              41,777,503         37,584,417        44,

Capital projects                                                         86,214,329            74,376,734           78,494,417              67,462,449              67,428,429         33,092,516         34,
Debt service:
  Principal                                                              41,387,500            38,232,500           33,205,000              32,085,000              31,470,000         24,417,500         30,
  Interest                                                               28,528,970            24,612,032           28,643,232              26,518,778              26,558,663         23,713,986         25,
  Cost of issuance                                                          224,336               692,398              604,591               1,056,687                   -              1,538,682

Total expenditures                                                   1,526,359,989         1,583,713,753          1,638,005,536        1,560,829,554              1,486,963,339      1,389,132,942     1,366,

Excess of revenues under expenditures                                   (88,587,236)          (74,481,671)          (61,515,909)           (44,238,335)             (10,289,979)       (42,556,410)      (33,

Other Financing Sources (Uses)
Issuance of general obligation bonds                                     9,385,000             80,000,000            49,220,000                  -                        -                 -
Proceeds of general obligation refunding bonds                               -                 27,500,000                 -                129,300,000               30,000,000       170,835,000
Payment to escrow refunding agent                                            -                (29,110,423)                -                (72,636,459)                   -          (183,981,910)
Premium on bond issuance                                                     -                      -                   649,649                  -                        -                 -
Discount on bond Issuance                                                    -                   (833,340)                -                      -                        -                 -
Premium on refunding bonds                                                   -                  1,766,257                 -                  4,415,186                    -            14,739,778
Capital lease                                                                -                  7,678,839                 -                      -                        -                 -
Premium on TRAN issuance                                                    84,500                  -                   314,425                  -                        -                 -
Trust account payments                                                       -                      -                     -                      -                        -            19,275,839
Transfers in                                                           105,072,729             52,633,826            56,146,568             37,227,857               31,967,009        25,906,604         11,
Transfers out                                                         (105,072,729)           (52,633,826)          (56,146,568)           (37,227,857)             (31,967,009)      (24,064,184)       (11,
Proceeds of sale of building                                                 -                 11,420,000                 -                      -                        -                 -

Total other financing sources                                             9,469,500            98,421,333           50,184,074              61,078,727              30,000,000         22,711,127

Net change in fund balances                                      $      (79,117,736)           23,939,662           (11,331,835)            16,840,392              19,710,021         (19,845,283)      (33,

Debt service as a percentage of noncapital expenditures                          4.7%                   4.1%                 3.9%                    3.8%                    4.0%               3.5%

(1) Property tax revenue increased due to sale of tax receivables in 2007.
(2) In 2003 the County reclassified some Health and Welfare programs to Economic opportunity.
(3) Includes $27.9 million of RAAC bond proceeds not reclassified as other financing sources in 2006.

                                                       Net Change in Fund Balance, Governmental Funds
                                             Net Change in Fund Balance, Governmental Funds
                       50,000,000
          50,000,000            0
                     0
                     (50,000,000)
          (50,000,000)
                    (100,000,000)

        (100,000,000)                    2010             2009            2008            2007             2006            2004        2003              2002

                               2010             2009             2008              2007             2006            2004            2003             2002




                                                                                          342
                                                                                                                   Table V

                                                                     COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                                  Changes in Fund Balances, Governmental Funds
                                                                                 Last Nine Years
                                                                          (modified accrual basis of accounting)




                                                                   Year
          2006               2005              2004               2003               2002


(1)    261,706,231        258,824,114       252,715,531        258,182,862        260,914,127
        38,788,808         37,612,919        36,530,399         35,774,119         36,525,074
             -                  -                 -                  -                  -
             -                  -                 -                  -                  -
         1,892,227          1,873,429         1,925,894          1,995,311          1,996,219
       346,663,975        332,109,811       372,195,408        348,506,432        341,407,292
       673,692,647        605,042,641       549,796,753        510,739,262        470,856,330
        47,230,509 (3)     14,981,926        16,321,821         17,052,321         17,153,451
        75,794,785         73,417,036        79,551,284         78,989,218         78,803,154
         4,535,001          4,268,189         3,457,893          3,473,163          3,670,891
         8,309,545          4,570,903         3,173,841          2,482,664          6,781,515
        18,059,632         13,875,564        17,445,468         19,917,398         30,630,353

      1,476,673,360      1,346,576,532     1,333,114,292      1,277,112,750      1,248,738,406



       186,647,940        181,665,994       172,511,585        172,644,306        164,691,331
        93,317,264         86,368,784        78,449,674         74,362,757         73,961,200
        27,319,081         25,417,546        25,932,327         21,258,032         19,538,239
        15,858,500         23,858,500        23,858,500         23,858,505         23,300,000
       935,844,903        881,984,389       859,661,891        819,091,627        791,169,189
         8,504,443          8,606,495         7,972,963         14,247,967         13,787,639
        21,714,305         21,518,829        21,475,258         21,581,283         21,014,647
        30,522,308         39,365,304        41,490,193         32,563,897         38,753,673
        41,777,503         37,584,417        44,686,407         52,241,889 (2)     18,817,927

        67,428,429         33,092,516        34,913,478         51,919,124         35,519,398

        31,470,000         24,417,500        30,332,500         33,942,500         35,417,500
        26,558,663         23,713,986        25,472,650         29,057,406         28,931,784
             -              1,538,682             -                  -                  -

      1,486,963,339      1,389,132,942     1,366,757,426      1,346,769,293      1,264,902,527

        (10,289,979)       (42,556,410)      (33,643,134)       (69,656,543)       (16,164,121)


              -                 -                  -                 -                  -
         30,000,000       170,835,000              -           113,477,940        121,492,988
              -          (183,981,910)             -          (112,056,745)       (63,965,435)
              -                 -                  -                 -                  -
              -                 -                  -                 -                  -
              -            14,739,778              -                 -                  -
              -                 -                  -                 -                  -
              -                 -                  -                 -                  -
              -            19,275,839              -                 -                  -
         31,967,009        25,906,604         11,059,563         2,580,945         13,621,935
        (31,967,009)      (24,064,184)       (11,059,563)       (2,580,945)       (13,621,935)
              -                 -                  -                 -                  -

        30,000,000         22,711,127              -             1,421,195         57,527,553

        19,710,021         (19,845,283)      (33,643,134)       (68,235,348)       41,363,432

                 4.0%               3.5%               4.1%            4.8%                 5.1%




                                                                                                   343
                                                                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                                               Program Revenues by Function/Program
                                                                                          Last Nine Years
                                                                                                                                                                                                      Table VI



                                                                                       (accrual basis of accounting)



                                                                                                                         Year
                                                 2010              2009               2008                2007           2006             2005            2004           2003              2002


      Function/Program

      Governmental activities:

      General government                  $     90,992,391       95,257,597         80,795,648          73,877,476     100,322,237      64,906,383      73,781,988     68,609,313        65,237,563

      Public safety                             50,591,466       52,223,177         55,211,505          37,528,174      33,214,008      32,562,057      31,169,837     23,346,485        26,777,962

      Public works                              51,235,168       30,518,883         21,761,550          32,139,063      24,663,352      15,260,642      10,234,075     17,922,068        12,045,951

      Transportation                            32,862,922       32,714,434         42,869,521              -            2,699,822          -               -              -                 -

      Health and welfare                       807,363,818      904,409,586        973,350,413         940,905,006     894,926,699     837,934,742     818,622,018    772,866,066       758,817,533

      Culture and recreation                    12,049,884       14,852,964         13,372,409          10,878,682      10,131,476      10,448,627      19,336,700     19,556,525        21,769,852




344
      Education                                    106,198           123,800            69,019              83,968         124,305         123,829          88,258       186,283           119,647

      Economic development                      40,997,493       22,900,330         30,890,221          27,571,326      23,954,692      34,982,166      35,181,334     25,666,385        29,555,303

      Economic opportunity                      38,297,208       36,919,706         34,853,648          41,459,021      42,023,181      35,410,608      44,261,585     45,681,709 (1)    18,822,784

      Interest on long-term debt                    44,441       10,253,393         12,496,603          19,972,383          67,443       6,148,978       1,673,252      1,751,359         1,759,849

      Total primary government            $ 1,124,540,989     1,200,173,870      1,265,670,537        1,184,415,099   1,132,127,215   1,037,778,032   1,034,349,047   975,586,193       934,906,444




      (1) In 2003 the County reclassified some Health and welfare programs to Economic opportunity.
                                                                                 Table VII

                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                 Tax Revenues by Source, Governmental Funds
                               Last Ten Years
                      (modified accrual basis of accounting)




    Year            Property Taxes           Sales and Use Taxes      Total


    2010          $ 264,893,858                   40,904,309       305,798,167


    2009             261,131,265                  39,172,875       300,304,140


    2008             254,991,590                  40,351,848       295,343,438


    2007             273,781,207      (1)         40,220,736       314,001,942


    2006             261,706,231                  38,788,808       300,495,039


    2005             258,824,114                  37,612,919       296,437,033


    2004             252,715,531                  36,530,399       289,245,930


    2003             258,182,862                  35,774,119       293,956,981


    2002             260,914,127                  36,525,074       297,439,201


    2001             241,497,867                  36,306,595       277,804,462




  Change
2001-2010                9.69%                     12.66%            10.08%



(1) Includes a tax receivable sale of $14.4 million.




                                            345
                                                        COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                          Property Tax Levies and Collections
                                                               Last Seven Fiscal Years
                                                                                                                                                                Table VIII




                  Taxes Levied                                          Collected within the
                     for the                                           Fiscal Year of the Levy                            Total Collections to Date
       Fiscal      Fiscal Year                        Total                         Percentage of      Delinquent                       Percentage of
       Year      (Original Levy)   Adjustments    Adjusted Levy       Amount          Original Levy    Collections       Amount         Adjusted Levy

       2010     $ 272,080,809         (886,838)    271,193,971      251,657,283           92.49 %      7,479,722       259,137,005       95.55 %

       2009       269,375,834       (1,173,580)    268,202,254      248,684,071           92.32        12,193,771      260,877,842       97.27

       2008       266,952,614           30,606     266,983,220      246,869,810           92.48        12,812,015      259,681,825       97.27

       2007       267,392,280       (3,380,617)    264,011,663      244,613,823           91.48        15,457,938      260,071,761       98.51




346
       2006       264,165,345       (2,046,900)    262,118,445      239,866,159           90.80        14,545,477      254,411,636       97.06


       2005       262,015,256       (2,445,716)    259,569,540      231,125,664           88.21        23,035,545      254,161,209       97.92


       2004       259,808,802       (2,280,922)    257,527,880      228,759,421           88.05        25,071,310      253,830,731       98.56




      Note: This schedule is being prepared prospectively. The next schedule has been included to provide prior years' information as it was presented in the
      prior years' reports. The above schedule cannot be traced to the financial statements.
                                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                                  Real Property Tax Levies and Collections
                                                                    Assessed Value of Taxable Property
                                                                                2000-2003




                                   Certified          End of Year                                              Percentage        Delinquent                       Total
                  Tax             Estimated             Actual                Total            Current           of Levy           & Lien        Total       Collections as a
                  Rate            Assessed             Assessed              Taxes                Tax           Collected            Tax           Tax        Percentage of
         Year    (Mills)          Valuation            Valuation             Levied           Collections      During Year       Collections   Collections   Current Tax Levy



         2003    4.690      $ 58,161,646,272        56,545,422,888        265,198,033        240,389,025          90.65          23,357,075    263,746,100        99.45 %

         2002    4.690        61,597,763,244        59,176,240,257        277,536,828        257,719,903          92.86          16,429,607    274,149,510        98.78

      (1) 2001   4.720        56,905,382,742        55,128,007,049        260,204,193        240,719,759          92.51          14,507,935    255,227,694        98.09




347
        (1) As of January 1, 2001, the assessed value on all real property was changed to equal 100% of market value, requiring a corresponding decrease
           in the millage rate.



        Note: This schedule is being included to provide prior years' information as it was presented in prior years' reports.
                                                                                                                                                                                Table IX
                                                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                                         Principal Taxpayers
                                                               December 31, 2010 and December 31, 2001
                                                                                                                                                                                        Table X




                                                                                            December 31, 2010                                       December 31, 2001
                                                                                 Real Property             Percentage of Total          Real Property             Percentage of Total
                                       Taxpayer                              Assessed Valuation (1) Rank Assessed Valuation         Assessed Valuation (1) Rank Assessed Valuation

      Holdings Acquisition CO Limited Partnership                                199,489,600          1           0.34%                        -                              -

      500 Grant Street Associates & Mellon N.A.                                  190,000,000          2            0.33                 269,816,900           2           0.49

      Market Associates Limited Partnership                                      185,000,000          3            0.32                 194,007,500           4           0.35

      600 Grant Street Associates, Limited Partnership                           175,000,000          4            0.30                 279,309,400           1           0.51

      CBL Monroeville Partner, Limited Partnership                               148,000,000          5            0.26                        -                              -

      Pittsburgh Mill Limited Partnership                                        127,969,200          6            0.22                        -                              -




348
      Oxford Development Company                                                 115,000,000          7            0.20                 145,995,500           6           0.26

      Grant Liberty Dev Group Associates                                         110,000,000          8            0.19                 146,949,200          5            0.27

      Robinson Mall JCP Associates Limited                                       104,742,900          9            0.18                        -                              -

      Mellon Bank N.A.                                                           104,309,700          10           0.18                 256,315,200           3           0.46

      Regional Industrial Development Corp. of Southwestern PA                         -                            -                   145,650,000           7           0.26

      South Hills Village Associates                                                   -                            -                   139,783,800           8           0.25

      Century III Associates                                                           -                            -                   133,749,800           9           0.24

      Gateway Trizec Inc.                                                              -                            -                   124,568,900          10           0.23


                                                                               $1,459,511,400                     2.52%                1,836,146,200                     3.23%

      Year End Total Taxable Assessed Valuation                                $57,823,817,677                                         55,128,007,049

      Source: Allegheny County Board of Property Assessment, Appeals, Review and Registry

      (1) Assessed valuation based on the valuation of property for taxes collected in 2010 and 2001 respectively, and a review of the 10 largest taxpayers for the County.
      Note: Assessed valuation for real property for 2010 through 2001 is based upon 100% of market value (estimated actual value) as set by County appraisal.
                                                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                              Certified Estimated Assessed Valuation, Assessed Value and Direct Tax Rate of Taxable Property
                                                                      Last Ten Years




                                                                                                                 Beginning of Year            End of Year
                                                                                            Total                    Taxable                    Taxable                 Total
                          Residential         Commercial            Tax-Exempt             Assessed                 Assessed                   Assessed                Direct
         Year            Real Property       Real Property            Property              Value                    Valuation                 Valuation              Tax Rate

         2010        $ 40,594,872,067         18,115,514,721       16,000,204,611        74,710,591,399            58,710,386,788              57,823,817,677             0.469

         2009           40,337,045,876        17,857,634,828       15,987,458,790        74,182,139,494            58,194,680,704              57,185,917,361             0.469

         2008           39,954,741,953        17,697,455,014       15,597,356,909        73,249,553,876            57,652,196,967              56,887,676,094             0.469

         2007           39,907,854,345        17,866,687,947       15,429,699,227        73,204,241,519            57,774,542,292              56,361,190,356             0.469

         2006           39,506,158,622        17,609,207,089       14,779,725,725        71,895,091,436            57,115,365,711              56,404,299,088             0.469

         2005           41,367,116,542        15,305,974,992       14,669,068,029        71,342,159,563            56,673,091,534              55,594,180,462             0.469




349
         2004           41,213,754,967        15,267,648,933       14,032,521,380        70,513,925,280            56,481,403,900              55,396,277,772             0.469

         2003           43,248,067,968        15,713,069,140       13,824,573,995        72,785,711,103            58,961,137,108              56,545,422,888             0.469

         2002           46,676,618,076        16,540,995,240       13,186,798,450        76,404,411,766            63,217,613,316              59,176,240,257             0.469

         2001           41,528,099,544        15,377,283,198       13,259,529,956        70,164,912,698            56,905,382,742              55,128,007,049             0.472


      Source: Yearly County Certification Report


      (1) Assessed valuation for real property for 2010 through 2001 is based upon 100% of market value (estimated actual value) as set by County
         appraisal. Tax rates are $100 of assessed value.


      Note: The Second Class County Code permits the County to levy taxes up to $2.50 per $100 of assessed valuation for general governmental services and in unlimited
      amounts for debt service. The County shall not derive windfall benefits, real estate tax revenue shall not exceed 105% of the total amount of real estate tax revenue
      received in the preceding year, from annual property reassessments of the valuation of real property or from changes in the predetermined ratio of assessed valuation to
      market value.
                                                                                                                                                                                  Table XI
                                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Property Tax Rates - Direct and Overlapping Governments
                                                              Last Ten Years (1)




                                                               Real Estate Tax Rate (Mills)
                                                                                                                                                       Table XII (Page 1 of 19)




      Municipality and
      School District (3)          2010       2009        2008         2007        2006         2005         2004        2003      2002     2001 (2)

      ALLEGHENY COUNTY
          General Fund            3.5806     0.407     0.37616      0.37882     0.37788       0.37753     0.38422      0.36485   0.34897   0.3548
          Debt Service            1.1094     0.062     0.09284      0.09018     0.09112       0.09147     0.08478      0.10415    .12003    .1172
        Total tax rate (mills)      4.69      4.69         4.69        4.69         4.69         4.69        4.69         4.69      4.69     4.72
                                       County real estate millage is uniform for all cities, boroughs and townships.
      Aleppo Township
         Municipal                   5.0      5.0          5.0          5.5          5.5          5.5         5.5         4.38      4.38     4.38




350
         Quaker Valley S.D.        20.70     19.75        19.75       19.35        18.85         16.9        16.9         15.1     13.95     14.9
      Aspinwall Borough
         Municipal                  6.25      5.25         5.25        5.25         4.25         4.25        4.25         4.25      4.25     4.17
         Fox Chapel Area S.D.      21.26     20.78         20.3       19.71        19.07        17.82       17.82        16.57     16.57    15.84
      Avalon Borough
         Municipal                  9.01      9.01         7.25        7.25          6.7          6.7         6.7          6.7       5.7      5.7
         Northgate S.D.             27.6      24.5         24.5        24.5         24.5         23.5        23.5         23.0      23.0     23.0
      Baldwin Borough
         Municipal                  6.61      6.61         6.61        6.61        6.616        4.756       4.756        4.756     4.756    4.756
         Baldwin-Whitehall S.D.     23.4      23.5        23.61       24.61        24.61        23.11       23.11        23.11     21.11     21.3
      Baldwin Township
         Municipal                   9.5       9.5          8.5         8.5          8.5          8.5         8.5          8.5       8.5      9.0
         Baldwin-Whitehall S.D.     23.4      23.5        23.61       24.61        24.61        23.11       23.11        23.11     21.11     21.3

      Bell Acres Borough
          Municipal                  4.5       4.5          4.5         4.5          4.0          4.0         4.0          4.0       3.5      3.9
          Quaker Valley S.D.        20.7     19.75        19.75       19.35        18.85         16.9        16.9         15.1     13.95     14.9

      Bellevue Borough
          Municipal                  7.0       7.0          7.0         6.0          5.7          5.7         5.4          5.4       5.4      5.4
          Northgate S.D.            27.6      24.5         24.5        24.5         24.5         23.5        23.5         23.0      23.0     23.0
                                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                                         Property Tax Rates - Direct and Overlapping Governments
                                                            Last Ten Years (1)




                                                         Real Estate Tax Rate (Mills)

      Municipality and
      School District (3)        2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      Ben Avon Borough
         Municipal                5.69      5.69      5.72       5.67        5.64        5.71    5.81    5.71    5.08    5.57
         Avonworth S.D.           20.0      19.3      18.8       18.8        18.2        17.2    17.7    14.7    14.7   15.75

      Ben Avon Heights Borough
         Municipal                 6.5       6.5       6.5        1.5         1.5         1.5     1.5     1.5     1.5    1.75
         Avonworth S.D.           20.0      19.3      18.8       18.8        18.2        17.2    17.7    14.7    14.7   15.75

      Bethel Park Borough




351
         Municipal                2.18      2.18      1.93       1.93        1.93        1.93    1.93    1.39    1.53    1.53
         Bethel Park S.D.        24.56     23.73     23.18      22.75       22.75       22.25    22.0   19.41    18.5    19.6

      Blawnox Borough
         Municipal                9.74      9.74      9.74       9.74        9.74        9.74    8.74    8.74    8.74    8.74
         Fox Chapel Area S.D.    21.26     20.78      20.3      19.71       19.07       17.82   17.82   16.57   16.57   15.84

      Brackenridge Borough
         Municipal                5.77      5.77      5.77       5.49        5.49        5.49    5.49    4.99    4.99    4.99
         Highlands S.D.          24.41     23.71     23.71      23.71       23.71       23.71   23.71   21.25    20.0    18.5

      Braddock Borough
         Municipal                11.7      10.7      10.7       10.7        10.7        10.7    10.7    10.7    10.7    8.87
         Woodland Hills S.D.     25.65     25.65     24.65      24.65        23.9        23.9    23.3    23.3    21.9    19.0

      Braddock Hills Borough
         Municipal                 7.0       7.0       7.0        7.0         7.0       6.005   6.005   6.005   4.005   4.005
         Woodland Hills S.D.     25.65     25.65     24.65      24.65        23.9        23.9    23.3    23.3    21.9    19.0
                                                                                                                                   Table XII (Page 2 of 19)
                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Property Tax Rates - Direct and Overlapping Governments
                                                             Last Ten Years (1)




                                                          Real Estate Tax Rate (Mills)
                                                                                                                                         Table XII (Page 3 of 19)




      Municipality and
      School District (3)         2010       2009     2008       2007         2006        2005     2004     2003     2002     2001 (2)

      Bradford Woods Borough
         Municipal                2.225     2.225     2.225      1.725       1.725        1.725    1.725    1.725    1.725      2.0
         North Allegheny S.D.     19.74     18.99     18.99      19.34      19.722       18.522   18.522   18.522   16.705   17.104

      Brentwood Borough
         Municipal                  8.5       8.5       8.5        8.5         8.5          8.5    7.137    7.137    7.137    6.137
         Brentwood S.D.           28.27     28.27     28.27      28.27       28.27        26.85    25.85    25.85    24.85    21.45




352
      Bridgeville Borough
          Municipal                6.75      4.75      4.75       4.75        4.75         4.75     4.75     4.75     4.75     4.75
          Chartiers Valley S.D.   19.88     19.32     19.32      19.32       19.32         18.6     18.6     18.6    16.25    16.25

      Carnegie Borough
         Municipal                  7.2       7.2       7.4        7.7         6.2          6.2      6.2      6.2      4.2     5.04
         Carlynton S.D.           24.15     24.15     24.15      24.15       24.15        24.15    24.15     21.5     21.5    22.03

      Castle Shannon Borough
         Municipal                  7.9       7.9       7.9        7.9         7.9        7.389    7.389     6.73     6.73     6.73
         Keystone Oaks S.D.       22.03     21.31     21.31      21.31       21.31        21.31    20.41    19.41    19.41     19.6

      Chalfant Borough
         Municipal                  7.9       6.9       6.9        6.9         6.9          6.9      6.9     5.77     5.77     4.77
         Woodland Hills S.D.      25.65     25.65     24.65      24.65        23.9         23.9     23.3     23.3     21.9     19.0

      Cheswick Borough
         Municipal                  6.5      5.25       5.0        5.0         5.0          4.5     4.36     4.32     4.27    4.038
         Allegheny Valley S.D.    23.46     23.46    23.208      22.23        21.5         20.5     18.0     18.0     18.0     18.0
                                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Property Tax Rates - Direct and Overlapping Governments
                                                              Last Ten Years (1)




                                                            Real Estate Tax Rate (Mills)

      Municipality and
      School District (3)         2010        2009     2008        2007         2006       2005    2004    2003    2002    2001 (2)

      Churchill Borough
         Municipal                 5.75       4.75       4.0         4.0         4.0         5.0    5.25    5.25    4.75    4.25
         Woodland Hills S.D.      25.65      25.65     24.65       24.65        23.9        23.9    23.3    23.3    21.9    19.0

      Clairton City
          Municipal:
            Land                   28.0       28.0      28.0        28.0        28.0        28.0    28.0    28.0    28.0    28.0
            Buildings              2.22       2.22      2.22        1.22        1.22        1.22    1.22    1.22    1.22    1.22
          Clairton S.D.            -          -         -           -           -           22.0    19.5    19.5    19.5    19.5




353
            Land                   87.0       75.0      75.0        75.0        75.0
            Buildings                3.9        3.1       3.1         3.1         3.1

      Collier Township
          Municipal                 3.5        3.5       3.5         3.5         3.5         3.5     3.5     3.5     4.0     4.0
          Chartiers Valley S.D.   19.88      19.32     19.32       19.32       19.32        18.6    18.6    18.6   16.25   16.25

      Coraopolis Borough
         Municipal                 10.5       10.5      10.5        10.5        10.5         7.5     7.5     6.5     6.5     7.0
         Cornell S.D.             24.11      22.93     22.93       21.74       20.89       19.89   19.89   19.89    17.8    17.8

      Crafton Borough
         Municipal                 8.75       8.75      7.25         5.5         5.5         5.0     5.0    4.67    4.67    4.67
         Carlynton S.D.           24.15      24.15     24.15       24.15       24.15       24.15   24.15    21.5    21.5   22.03

      Crescent Township
         Municipal                  6.5        6.5       6.5         6.5         6.5         6.5     4.0     4.0     4.0   3.528
         Moon Area S.D. (6)        21.3       21.3     20.47       19.61       19.11       15.97   15.97   15.72   14.69    17.4

      Dormont Borough
                                                                                                                                      Table XII (Page 4 of 19)




         Municipal                 14.0       14.0      14.0        14.0        14.0        11.6    11.6    11.6    11.6     9.0
         Keystone Oaks S.D.       22.03      21.31     21.31       21.31       21.31       21.31   20.41   19.41   19.41    19.6
                                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                        Property Tax Rates - Direct and Overlapping Governments
                                                           Last Ten Years (1)




                                                        Real Estate Tax Rate (Mills)
                                                                                                                                  Table XII (Page 5 of 19)




      Municipality and
      School District (3)       2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      Dravosburg Borough
         Municipal (7)          5.315     5.315     5.315      5.315       5.315       5.315   5.315   4.815   4.815   4.315
         McKeesport Area S.D.   16.71     16.71     17.71      17.71       17.71       18.21   18.21   18.21   18.14   18.48

      Duquesne City
         Municipal:
          Land                   19.0      19.0      19.0       19.0        19.0        19.0    19.0    19.0    16.0    16.0
          Buildings             13.47     13.47     11.47      11.47       11.47       11.47   11.47   11.47    8.47    8.47




354
         Duquesne S.D.           21.1      21.1      21.1       21.1        21.1        21.1    21.1    21.1    21.1    21.1

      East Deer Township
         Municipal                5.5       4.5       4.5        3.9         3.9         3.9     3.9     3.9     3.9     3.9
         Deer Lakes S.D.        26.25     26.25    25.323     24.035        23.0        23.0    23.0    21.5    21.0    17.8

      East McKeesport Borough
         Municipal                6.1       6.1       6.1        6.1         6.1         6.1     6.1     6.1     6.1     4.6
         East Allegheny S.D.    27.54     26.54     26.54      26.54       25.54       24.54   23.54   22.15    19.3    17.5

      East Pittsburgh Borough
         Municipal              15.15     15.15     12.15      12.15       12.15       11.15    8.15    7.15   4.892   4.892
         Woodland Hills S.D.    25.65     25.65     24.65      24.65        23.9        23.9    23.3    23.3    21.9    19.0

      Edgewood Borough
         Municipal              8.161     6.661     6.661      6.661       6.661       6.661   6.661   6.661   5.847   5.715
         Woodland Hills S.D.    25.65     25.65     24.65      24.65        23.9        23.9    23.3    23.3    21.9    19.0

      Edgeworth Borough
         Municipal                5.4       5.4       5.4        5.4         5.4         5.4     5.4     4.6     4.1     5.1
         Quaker Valley S.D.      20.7     19.75     19.75      19.35       18.85        16.9    16.9    15.1   13.95    14.9
                                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Property Tax Rates - Direct and Overlapping Governments
                                                              Last Ten Years (1)




                                                           Real Estate Tax Rate (Mills)

      Municipality and
      School District (3)          2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      Elizabeth Borough
          Municipal                  8.0       8.0       8.0        8.0         8.0         8.0    5.07    5.07    5.01    5.01
          Elizabeth-Forward S.D.   23.76     23.51     22.66      21.36       21.36       21.36   21.36   21.61   20.61   20.61

      Elizabeth Township
          Municipal                4.429     4.429     4.429      4.429       4.429       4.429   4.429   4.429   4.429   3.115
          Elizabeth-Forward S.D.   23.76     23.51     22.66      21.36       21.36       21.36   21.36   21.61   20.61   20.61

      Emsworth Borough




355
        Municipal                    5.0       5.0       5.0        5.0         5.0         5.0     4.6     4.6     4.8     4.8
        Avonworth S.D.              20.0      19.3      18.8       18.8        18.2        17.2    17.7    14.7    14.7   15.75

      Etna Borough
         Municipal                   9.0       9.0       9.0        6.5         6.5         6.5     6.5     5.0     5.0     5.0
         Shaler Area S.D.          25.63      24.7      24.7       24.7       24.25        23.5    23.0    22.3   20.32   20.32

      Fawn Township
         Municipal                   3.5       3.5       3.5        3.5         3.0         3.0     3.0     2.0     2.5     2.0
         Highlands S.D.            24.41     23.71     23.71      23.71       23.71       23.71   23.71   21.25    20.0    18.5

      Findlay Township
         Municipal                  1.95      1.95      1.95       1.95        1.95        1.95    1.95    1.95    1.95    1.95
         West Allegheny S.D.        22.0      22.0      22.0       21.5        21.5        21.5    18.6    18.6    17.1    17.1

      Forest Hills Borough
         Municipal                  8.35      8.35      8.35       8.35        7.35        7.35    6.35    6.35    6.35   5.718
         Woodland Hills S.D.       25.65     25.65     24.65      24.65        23.9        23.9    23.3    23.3    21.9    19.0
                                                                                                                                     Table XII (Page 6 of 19)
                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Property Tax Rates - Direct and Overlapping Governments
                                                             Last Ten Years (1)




                                                          Real Estate Tax Rate (Mills)
                                                                                                                                         Table XII (Page 7 of 19)




      Municipality and
      School District (3)         2010       2009     2008       2007         2006        2005     2004     2003     2002     2001 (2)

      Forward Township
         Municipal                 2.95      2.95      2.95       2.95        2.95         2.95     1.95     1.95     1.95     1.95
         Elizabeth-Forward S.D.   23.76     23.51     22.66      21.36       21.36        21.36    21.36    21.61    20.61    20.61

      Fox Chapel Borough
         Municipal                  2.3       2.0       2.0        2.0         1.7         1.45     1.45     1.35     1.35     1.35
         Fox Chapel Area S.D.     21.26     20.78      20.3      19.71       19.07        17.82    17.82    16.57    16.57    15.84




356
      Franklin Park Borough
         Municipal                1.283     1.283     1.283      1.283       1.283        1.283    1.283    1.283    0.783    0.827
         North Allegheny S.D.     19.74     18.99     18.99      19.34      19.722       18.522   18.522   18.522   16.705   17.104

      Frazer Township
         Municipal                 1.55      1.55      1.55       1.55        1.55         1.55     1.55     1.55     1.34     1.34
         Deer Lakes S.D.          26.25     26.25    25.323     24.035        23.0         23.0     23.0     21.5     21.0     17.8

      Glassport Borough
         Municipal                 8.99      8.99      8.99        7.6         7.6         6.85     4.85     4.85     4.85     4.35
         South Allegheny S.D.     18.11     18.11     18.11      18.11       18.21        20.46    20.96    14.98    13.83    15.69

      Glenfield Borough
         Municipal                  6.0      4.15      4.15       4.15        4.15         4.15     4.15     4.15     4.15     4.15
         Quaker Valley S.D.        20.7     19.75     19.75      19.35       18.85         16.9     16.9     15.1    13.95     14.9

      Green Tree Borough
         Municipal                 4.35      4.35      4.35       4.35        4.35         4.35     4.35     4.35     4.35      3.6
         Keystone Oaks S.D.       22.03     21.31     21.31      21.31       21.31        21.31    20.41    19.41    19.41     19.6
                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Property Tax Rates - Direct and Overlapping Governments
                                                             Last Ten Years (1)




                                                          Real Estate Tax Rate (Mills)

      Municipality and
      School District (3)         2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      Hampton Township
        Municipal                2.5045    2.5045    2.2805     2.1665      2.1665         2.0    2.15     1.8     1.8     2.1
        Hampton S.D.              20.88     20.88     20.53      20.53       20.53       20.53    20.1   19.25   18.25    18.1

      Harmar Township
         Municipal                  5.0       5.0      3.26       3.26        3.26        2.26    2.26    2.26    2.26    2.26
         Allegheny Valley S.D.    23.46     23.46    23.208      22.23        21.5        20.5    18.0    18.0    18.0    18.0




357
      Harrison Township
         Municipal                 5.25      5.25      5.25        5.5        5.25        5.25    5.25    5.25     4.0     4.0
         Highlands S.D.           24.41     23.71     23.71      23.71       23.71       23.71   23.71   21.25    20.0    18.5

      Haysville Borough
         Municipal                  5.5       5.5       5.5        5.5         5.5         5.0     4.5    4.25    4.25    3.35
         Quaker Valley S.D.        20.7     19.75     19.75      19.35       18.85        16.9    16.9    15.1   13.95    14.9

      Heidelberg Borough
         Municipal                  8.5       8.5       8.5        8.5         8.5       6.925   6.925   6.925   6.925   5.925
         Chartiers Valley S.D.    19.88     19.32     19.32      19.32       19.32        18.6    18.6    18.6   16.25   16.25

      Homestead Borough
        Municipal                  10.0      10.0      10.0       10.0        10.5        10.5    10.5    10.5    10.5    10.5
        Steel Valley S.D.         24.07     21.21     21.21      21.21       18.92       18.92   18.92   18.92   18.92   18.92

      Indiana Township
          Municipal                 3.0       3.0       3.0       2.75        2.75        2.87    2.87    2.87    2.87    2.87
          Fox Chapel Area S.D.    21.26     20.78      20.3      19.71       19.07       17.82   17.82   16.57   16.57   15.84
                                                                                                                                    Table XII (Page 8 of 19)
                                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                              Property Tax Rates - Direct and Overlapping Governments
                                                                 Last Ten Years (1)




                                                              Real Estate Tax Rate (Mills)
                                                                                                                                        Table XII (Page 9 of 19)




      Municipality and
      School District (3)             2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      Ingram Borough
         Municipal                      7.5       7.5       7.5        7.5         7.5         6.0     6.0     6.0     6.0     6.0
         Montour S.D.                  18.9      18.9      18.9       18.9        18.3        18.3    18.8   16.24   16.24    16.4

      Jefferson Borough
          Municipal                    5.63      5.63      5.63       5.63        5.63        5.63    5.63    4.63    4.63    4.63
          West Jefferson Hills S.D.   21.08     21.08     21.08      19.99       19.99       19.99   19.99   18.79   18.79   18.79

      Kennedy Township




358
         Municipal                     1.95      1.95      1.95       1.35        1.35        1.35    1.35    1.35    1.35    1.35
         Montour S.D.                  18.9      18.9      18.9       18.9        18.3        18.3    18.8   16.24   16.24    16.4

      Kilbuck Township
          Municipal                     6.5       7.0       7.0        5.5         5.5         5.5     6.5     8.0     9.0    11.0
          Avonworth S.D.               20.0      19.3      18.8       18.8        18.2        17.2    17.7    14.7    14.7   15.75

      Leet Township
         Municipal                      7.0       7.0       6.5        6.5         6.5         6.0     6.0     6.0     5.0     7.0
         Quaker Valley S.D.            20.7     19.75     19.75      19.35       18.85        16.9    16.9    15.1   13.95    14.9

      Leetsdale Borough
         Municipal                     10.0       9.6       9.6        8.6         8.6         8.6     6.6     6.6     6.6     5.6
         Quaker Valley S.D.            20.7     19.75     19.75      19.35       18.85        16.9    16.9    15.1   13.95    14.9

      Liberty Borough
          Municipal                     4.1       4.2       4.3        4.3        4.35         3.6     3.6     3.6     3.6    2.85
          South Allegheny S.D.        18.11     18.11     18.11      18.11       18.21       20.46   20.96   14.98   13.83   15.69
                                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                                         Property Tax Rates - Direct and Overlapping Governments
                                                            Last Ten Years (1)




                                                         Real Estate Tax Rate (Mills)

      Municipality and
      School District (3)        2010       2009     2008       2007         2006        2005     2004     2003     2002     2001 (2)

      Lincoln Borough
          Municipal                6.8       6.3       6.3        6.3         6.3          5.8      5.8      4.8      4.8      3.7
          South Allegheny S.D.   18.11     18.11     18.11      18.11       18.21        20.46    20.96    14.98    13.83    15.69

      Marshall Township
         Municipal                 1.7       1.7       1.7        1.7         1.7          1.7      1.7      1.7      1.7     1.85
         North Allegheny S.D.    19.74     18.99     18.99      19.34      19.722       18.522   18.522   18.522   16.705   17.104

      McCandless Township




359
         Municipal                 1.5       1.5       1.5        1.5         1.5          1.5     1.31     1.31     1.31      1.5
         North Allegheny S.D.    19.74     18.99     18.99      19.34      19.722       18.522   18.522   18.522   16.705   17.104

      McDonald Borough (Part)
         Municipal               40.75     40.75     39.25      38.75        36.5         34.5     34.5     32.5     30.0     30.0
         Fort Cherry S.D.        118.5     118.5     118.5      118.5       118.5       115.75    112.5    109.0   105.25   102.25
          (Washington County)

      McKeesport City
         Municipal:
          Land                    16.5      16.5      16.5       16.5        19.0         16.5     16.5     16.5     19.0     20.0
          Buildings               4.26      4.26      4.26       4.26        4.26         4.26     4.26     4.26     4.26     4.26
         McKeesport Area S.D.    16.71     16.71     17.71      17.71       17.71        18.21    18.21    18.21    18.14    18.48

      McKees Rocks Borough
         Municipal                 8.0       8.0       8.0        8.0         8.0          8.0      8.0      6.0      6.0      6.0
         Sto-Rox S.D.             25.0      25.0      25.0       25.0        25.0         25.0     25.0     24.0     21.0     21.0

      Millvale Borough
          Municipal                9.0       9.0       9.0        7.5         7.5          7.5      6.5      6.5      6.5      5.5
          Shaler Area S.D.       25.63      24.7      24.7       24.7       24.25         23.5     23.0     22.3    20.32    20.32
                                                                                                                                        Table XII (Page 10 of 19)
                                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                                       Property Tax Rates - Direct and Overlapping Governments
                                                          Last Ten Years (1)




                                                       Real Estate Tax Rate (Mills)
                                                                                                                                 Table XII (Page 11 of 19)




      Municipality and
      School District (3)      2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      Monroeville Borough
        Municipal                2.2       2.2       2.2        2.2         2.2         2.2     2.2     2.2     2.2     2.2
        Gateway S.D.           21.02     19.41     19.41      19.41       19.41       19.41   18.41   17.41   16.55   16.55

      Moon Township
        Municipal               3.28      3.28      3.28       3.28        3.28        3.28    3.28    2.42    2.17    2.84
        Moon Area S.D. (6)      21.3      21.3     20.47      19.61       19.11       15.97   15.97   15.72   14.69    17.4




360
      Mount Lebanon Township
        Municipal               4.89      4.89      4.97       4.97        4.79        4.57    4.34    3.99    3.99    4.35
        Mount Lebanon S.D.     26.63     24.11     23.81      23.56       23.56       23.18   22.76   20.16   18.12   20.76

      Mount Oliver Borough
        Municipal               13.5      13.5      13.5       13.5        13.5        12.0    11.0    10.0    10.0     8.0
        Pittsburgh S.D.        13.92     13.92     13.92      13.92       13.92       13.92   13.31   13.92   13.92   13.92

      Munhall Borough
        Municipal              10.75     10.25      9.25       7.75        7.75        7.75    7.75    7.75    7.75    7.75
        Steel Valley S.D.      24.07     21.21     21.21      21.21       18.92       18.92   18.92   18.92   18.92   18.92

      Neville Township
         Municipal              4.75      4.75      4.75       4.75        7.25        7.25    7.25    6.25    6.25    4.25
         Cornell S.D.          24.11     22.93     22.93      21.74       20.89       19.89   19.89   19.89    17.8    17.8

      North Braddock Borough
         Municipal              11.0     11.0       9.0        9.0         9.0          7.5     7.5     7.5     7.5     7.5
         Woodland Hills S.D.   25.65     25.65     24.65      24.65        23.9        23.9    23.3    23.3    21.9    19.0
                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Property Tax Rates - Direct and Overlapping Governments
                                                             Last Ten Years (1)




                                                          Real Estate Tax Rate (Mills)

      Municipality and
      School District (3)         2010       2009     2008       2007         2006       2005    2004    2003     2002    2001 (2)

      North Fayette Township
         Municipal                  3.9       3.2       2.9        2.9         2.9         2.6    2.23     2.2   2.1471    2.14
         West Allegheny S.D.       22.0      22.0      22.0       21.5        21.5        21.5    18.6    18.6     17.1    17.1

      North Versailles Township
         Municipal                  8.0       7.5       6.0        5.5         5.0         5.0     4.5     4.0      4.0     3.7
         East Allegheny S.D.      27.54     26.54     26.54      26.54       25.54       24.54   23.54   22.15     19.3    17.5

      Oakdale Borough




361
         Municipal                  4.0       3.0       3.0        3.0         3.0         3.0     3.0     3.0      3.0     3.0
         West Allegheny S.D.       22.0      22.0      22.0       21.5        21.5        21.5    18.6    18.6     17.1    17.1

      Oakmont Borough
         Municipal                  4.5       4.5      3.92       3.92        3.92        3.92    3.92     3.6     3.34    3.34
         Riverview S.D.           24.05     23.26     23.11      23.36       22.74        22.1    21.5    20.8     19.1    19.1

      O'Hara Township
         Municipal                  2.2       2.2       2.2        2.2         2.2         2.2     2.2    1.94     1.84    1.89
         Fox Chapel Area S.D.     21.26     20.78      20.3      19.71       19.07       17.82   17.82   16.57    16.57   15.84

      Ohio Township
         Municipal                 2.75      2.75      2.75       2.75        2.75        2.75    2.25    2.25     2.29    2.38
         Avonworth S.D.            20.0      19.3      18.8       18.8        18.2        17.2    17.7    14.7     14.7   15.75

      Osborne Borough
         Municipal                 4.15       6.0       6.1        5.1         4.9         4.9     4.4     3.9      3.9     4.5
         Quaker Valley S.D.        20.7     19.75     19.75      19.35       18.85        16.9    16.9    15.1    13.95    14.9
                                                                                                                                     Table XII (Page 12 of 19)
                                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                              Property Tax Rates - Direct and Overlapping Governments
                                                                 Last Ten Years (1)




                                                              Real Estate Tax Rate (Mills)
                                                                                                                                         Table XII (Page 13 of 19)




      Municipality and
      School District (3)             2010       2009     2008       2007         2006       2005    2004    2003    2002     2001 (2)

      Penn Hills Township
         Municipal                      5.1       4.6       4.6        4.6         4.6         4.6     4.6    2.6      2.6      2.6
         Penn Hills S.D.              24.81     24.81     24.81      23.39       23.39       19.91   19.91   19.0    18.25    18.25

      Pennsbury Village Borough
         Municipal                      5.9       5.9       5.9        5.9         5.9         5.9     5.9     5.9    6.26     6.26
         Montour S.D.                  18.9      18.9      18.9       18.9        18.3        18.3    18.8   16.24   16.24     16.4




362
      Pine Township
         Municipal                      1.2       1.2       1.2        1.2         1.2         1.2     1.2     1.2     1.2      1.3
         Pine-Richland S.D.          21.908      20.2      20.2       20.2        20.2        20.2    20.2    18.6    17.6    17.82

      Pitcairn Borough
          Municipal                    5.75      5.75      5.75       5.75        5.75        5.75    3.75    3.75    3.75     3.36
          Gateway S.D.                21.02     19.41     19.41      19.41       19.41       19.41   18.41   17.41   16.55    16.55

      Pittsburgh City
          Municipal (4)                10.8      10.8      10.8       10.8        10.8        10.8    10.8    10.8    10.8     10.8
            Land                       -         -         -          -           -           -       -       -       -        -
            Buildings                  -         -         -          -           -           -       -       -       -        -
          Pittsburgh S.D.             13.92     13.92     13.92      13.92       13.92       13.92   13.31   13.92   13.92    13.92

      Pleasant Hills Borough
         Municipal                    6.607     6.607     6.607      6.607       6.607       5.607   5.607     4.6   4.949    4.949
         West Jefferson Hills S.D.    21.08     21.08     21.08      19.99       19.99       19.99   19.99   18.79   18.79    18.79

      Plum Borough
         Municipal                      4.3       4.3       4.3        3.3         3.3         3.3     3.3    2.0     2.02     2.02
         Plum S.D.                     22.2      22.2      22.2       22.2        22.2        21.2    20.8   19.0     18.4   14.989
                                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                                         Property Tax Rates - Direct and Overlapping Governments
                                                            Last Ten Years (1)




                                                         Real Estate Tax Rate (Mills)

      Municipality and
      School District (3)        2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      Port Vue Borough
         Municipal                6.86      5.11      5.11       5.11        5.11        5.11    5.11    5.11    5.11   4.111
         South Allegheny S.D.    18.11     18.11     18.11      18.11       18.21       20.46   20.96   14.98   13.83   15.69

      Rankin Borough
         Municipal                13.8      13.8      13.8       13.8        13.8        13.8    13.8    11.8    11.8     9.2
         Woodland Hills S.D.     25.65     25.65     24.65      24.65        23.9        23.9    23.3    23.3    21.9    19.0




363
      Reserve Township
         Municipal                5.24      3.99      3.99       3.99        3.99        3.74    3.74    2.74    2.74    2.74
         Shaler Area S.D.        25.63      24.7      24.7       24.7       24.25        23.5    23.0    22.3   20.32   20.32

      Richland Township
         Municipal                2.75      2.75      2.75       2.75        2.75        2.75    2.75    2.75    2.75    2.95
         Pine-Richland S.D.     21.908      20.2      20.2       20.2        20.2        20.2    20.2    18.6    17.6   17.82

      Robinson Township
         Municipal                3.05      3.05      3.05       2.65        2.65        2.75    2.75    2.75    2.75     3.1
         Montour S.D.             18.9      18.9      18.9       18.9        18.3        18.3    18.8   16.24   16.24    16.4

      Ross Township
         Municipal               1.967     1.967     1.967      1.967       1.967       1.967   2.054   2.054   2.054   2.054
         North Hills S.D.        19.91     19.35      19.6       19.1        18.5        18.5    18.5    16.5    16.5    16.5

      Rosslyn Farms Borough
         Municipal                 9.5      10.5      10.5       10.5        5.75        5.75    5.75    5.75    5.75    5.75
         Carlynton S.D.          24.15     24.15     24.15      24.15       24.15       24.15   24.15    21.5    21.5   22.03
                                                                                                                                   Table XII (Page 14 of 19)
                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Property Tax Rates - Direct and Overlapping Governments
                                                             Last Ten Years (1)




                                                          Real Estate Tax Rate (Mills)
                                                                                                                                    Table XII (Page 15 of 19)




      Municipality and
      School District (3)         2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      Scott Township
         Municipal                  5.0       5.0       5.0        5.0         5.0         4.0     4.0     4.0     4.0     4.0
         Chartiers Valley S.D.    19.88     19.32     19.32      19.32       19.32        18.6    18.6    18.6   16.25   16.25

      Sewickley Borough
         Municipal                  6.8       6.8       6.8        6.8         5.8         5.8     5.8     5.4     5.8     5.8
         Quaker Valley S.D.        20.7     19.75     19.75      19.35       18.85        16.9    16.9    15.1   13.95    14.9




364
      Sewickley Heights Borough
         Municipal                 3.75      3.75      3.75       3.75        3.75         3.9     3.9     3.5     3.5     3.5
         Quaker Valley S.D.        20.7     19.75     19.75      19.35       18.85        16.9    16.9    15.1   13.95    14.9

      Sewickley Hills Borough
         Municipal                  3.0       3.0       3.0       1.35        1.35       0.825    0.35    0.35    0.35    0.35
         Quaker Valley S.D.        20.7     19.75     19.75      19.35       18.85        16.9    16.9    15.1   13.95    14.9

      Shaler Township
         Municipal                 3.05      3.05       2.8        2.8         2.8        2.33    2.33    2.33    2.33    2.33
         Shaler Area S.D.         25.63      24.7      24.7       24.7       24.25        23.5   23.0     22.3   20.32   20.32

      Sharpsburg Borough
         Municipal                  8.0       8.0       7.0        7.0         7.0         6.0     6.0     6.0    5.51     5.5
         Fox Chapel Area S.D.     21.26     20.78      20.3      19.71       19.07       17.82   17.82   16.57   16.57   15.84

      South Fayette Township
         Municipal                 3.84      3.84      3.84        4.0         4.0         4.0     4.0     4.0   4.045   4.045
         South Fayette S.D.       24.88     24.04     24.04      23.14       21.19       20.29   20.29   20.29   20.29   18.79
                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Property Tax Rates - Direct and Overlapping Governments
                                                             Last Ten Years (1)




                                                          Real Estate Tax Rate (Mills)

      Municipality and
      School District (3)         2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      South Park Township
         Municipal                  3.6       3.6       3.6        3.6         3.6         3.6     3.6     3.6     3.6     3.6
         South Park S.D.          25.99     25.99     25.99       24.7        24.7        24.7    24.7    22.7    22.7    22.7

      South Versailles Township
         Municipal                  4.2       4.2       4.2        4.2         4.2         4.2     4.2     3.2     3.2     3.2
         McKeesport Area S.D.     16.71     16.71     17.71      17.71       17.71       18.21   18.21   18.21   18.14   18.48

      Springdale Borough




365
         Municipal                  5.5       5.5       5.5        5.5         5.5         5.5     3.5     3.5     2.4     2.4
         Allegheny Valley S.D.    23.46     23.46    23.208      22.23        21.5        20.5    18.0    18.0    18.0    18.0

      Springdale Township
         Municipal                  5.0       4.7       4.7        4.7         4.5         4.5     4.5   3.975     4.3   3.974
         Allegheny Valley S.D.    23.46     23.46    23.208      22.23        21.5        20.5    18.0    18.0    18.0    18.0

      Stowe Township
         Municipal                 8.25      7.75       7.5       7.25         7.0         7.0     7.0     7.0     7.0    6.48
         Sto-Rox S.D.              25.0      25.0      25.0       25.0        25.0        25.0    25.0    24.0    21.0    21.0

      Swissvale Borough
         Municipal                  9.1       9.1       9.1        9.1         9.1         9.1     9.1     9.1     9.1     9.1
         Woodland Hills S.D.      25.65     25.65     24.65      24.65        23.9        23.9    23.3    23.3    21.9    19.0

      Tarentum Borough
         Municipal                 5.48      5.48      5.48       5.48        4.48        4.48    4.48    4.48    4.48    4.48
         Highlands S.D.           24.41     23.71     23.71      23.71       23.71       23.71   23.71   21.25    20.0    18.5
                                                                                                                                    Table XII (Page 16 of 19)
                                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Property Tax Rates - Direct and Overlapping Governments
                                                              Last Ten Years (1)




                                                           Real Estate Tax Rate (Mills)
                                                                                                                                     Table XII (Page 17 of 19)




      Municipality and
      School District (3)          2010       2009     2008       2007         2006       2005    2004    2003    2002    2001 (2)

      Thornburg Borough
         Municipal                   5.0       5.0       5.5        5.5         6.0         7.0     7.5     7.5     7.5     7.5
         Montour S.D.               18.9      18.9      18.9       18.9        18.3        18.3    18.8   16.24   16.24    16.4

      Trafford Borough (Part)
         Municipal (5)              22.5     22.75      23.0       23.0        23.0        23.0    23.0   21.25   21.25   21.25
         Penn-Trafford S.D.        14.27     13.14     13.66      71.25       71.25       67.75   60.75    57.0    52.0    50.0
           (Westmoreland County)




366
      Turtle Creek Borough
         Municipal                   8.5       8.5       7.5        7.5         7.5         7.0     7.0     6.2     6.2     5.7
         Woodland Hills S.D.       25.65     25.65     24.65      24.65        23.9        23.9    23.3    23.3    21.9    19.0

      Upper St. Clair Township
         Municipal                   4.6       3.4       2.6        2.6         2.6         2.6     2.6     2.6    2.44    2.69
         Upper St. Clair S.D.      23.77     23.37     22.45      22.45       22.45       22.45   21.78   20.26   18.67   21.11

      Verona Borough
         Municipal                   8.0       8.0      6.45       6.45        6.45        6.45    6.45    6.45    6.45     6.5
         Riverview S.D.            24.05     23.26     23.11      23.36       22.74        22.1    21.5    20.8    19.1    19.1

      Versailles Borough
         Municipal                   8.0       6.0       6.0        6.0         6.0         6.0     6.0     5.0     5.0     4.0
         McKeesport Area S.D.      16.71     16.71     17.71      17.71       17.71       18.21   18.21   18.21   18.14   18.48

      Wall Borough
        Municipal                    6.0       6.0       6.0        6.0         6.0         6.0     6.0     6.0     6.0     4.0
        East Allegheny S.D.        27.54     26.54     26.54      26.54       25.54       24.54   23.54   22.15    19.3    17.5
                                                     COUNTY OF ALLEGHENY, PENNSYLVANIA
                                             Property Tax Rates - Direct and Overlapping Governments
                                                                Last Ten Years (1)




                                                             Real Estate Tax Rate (Mills)

      Municipality and
      School District (3)            2010       2009     2008       2007         2006        2005     2004     2003     2002    2001 (2)

      West Deer Township
        Municipal                     1.71      1.71      1.71       1.71        1.71         1.71     1.71     1.71     1.45    1.45
        Deer Lakes S.D.              26.25     26.25    25.323     24.035        23.0         23.0     23.0     21.5     21.0    17.8

      West Elizabeth Borough
        Municipal                      6.0       6.0       6.0        6.0         5.0         4.25     4.25     4.25    3.915   3.915
        West Jefferson Hills S.D.    21.08     21.08     21.08      19.99       19.99        19.99    19.99    18.79    18.79   18.79

      West Homestead Borough




367
        Municipal                     9.31      9.31      9.31       9.31        9.31         9.31     9.81     9.81    10.31   10.31
        Steel Valley S.D.            24.07     21.21     21.21      21.21       18.92        18.92    18.92    18.92    18.92   18.92

      West Mifflin Borough
        Municipal                     7.27      7.27      7.27       6.27        6.27         5.27     5.27     5.27     5.27    4.27
        West Mifflin Area S.D.      22.992    22.992    22.292     21.092      21.092       21.092   21.092   18.592   18.092   16.93

      West View Borough
        Municipal                     6.68      5.68      5.68       5.68        5.68         4.43     4.43     4.43     3.43    3.43
        North Hills S.D.             19.91     19.35      19.6       19.1        18.5         18.5     18.5     16.5     16.5    16.5

      Whitaker Borough
        Municipal                     9.43      9.43      9.43       8.43        8.43         8.43    6.935    6.935    4.485   4.485
        West Mifflin Area S.D.      22.992    22.992    22.292     21.092      21.092       21.092   21.092   18.592   18.092   16.93

      Whitehall Borough
        Municipal                      5.5       5.5       5.5        5.5         5.5          5.5      5.5     2.88     2.88    3.17
        Baldwin-Whitehall S.D.        23.4      23.5     23.61      24.61       24.61        23.11    23.11    23.11    21.11    21.3
                                                                                                                                           Table XII (Page 18 of 19)
                                                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                 Property Tax Rates - Direct and Overlapping Governments
                                                                    Last Ten Years (1)




                                                                        Real Estate Tax Rate (Mills)
                                                                                                                                                            Table XII (Page 19 of 19)




      Municipality and
      School District (3)                2010        2009        2008          2007         2006       2005           2004   2003    2002        2001 (2)

      White Oak Borough
        Municipal                        4.16        4.16        4.16           4.16        4.16        4.16       4.16       3.16    3.16        3.16
        McKeesport Area S.D.            16.71       16.71       17.71          17.71       17.71       18.21      18.21      18.21   18.14       18.48

      Wilkins Township
         Municipal                      4.513       4.513       4.513          3.513       3.513       3.513      3.513      3.513   3.513       3.512
         Woodland Hills S.D.            25.65       25.65       24.65          24.65        23.9        23.9       23.3       23.3    21.9        19.0




368
      Wilkinsburg Borough
         Municipal                       14.0       14.0         14.0          14.0         14.0       14.0       14.0       10.0    9.913       8.913
         Wilkinsburg S.D.                35.0       35.0         35.0          35.0         35.0       35.0       32.0       32.0     32.0        33.5

      Wilmerding Borough
         Municipal                        8.0        6.05        6.05            5.8         5.8         5.8        5.8        5.3     5.3         5.3
         East Allegheny S.D.            27.54       26.54       26.54          26.54       25.54       24.54      23.54      22.15    19.3        17.5


      (1) Source: Allegheny County Treasurer's Office provided the millage rates.
      (2) Beginning with 2001, Allegheny County changed its assessment policy to reflect 100% of market value rather than 25%. A corresponding
                  decrease in millage rates was legally required by the County, as well as all municipalities and school districts.
      (3) The school fiscal year reflects the period from July 1st through June 30th rather than the calendar year.
      (4) Beginning with 2001, the City of Pittsburgh adopted a unified tax rate.
      (5) Trafford Borough, 100% valuation historically.
      (6) The Moon Area School District 2002 millage rate includes a one-time 1.03 mills tax credit.
      (7) The 2004 municipal millage for Dravosburg Borough includes 0.5 mills for fire services.
                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                    Ratios of General Obligation Bonds Outstanding and Legal Debt Margin
                                                Last Ten Years




                                                                 2010                2009               2008               2007               200
General obligation bonds outstanding:
 Net nonelectoral debt                                   $     621,949,587         650,747,850        632,999,547        615,230,709        536,3
 Net electoral debt                                                 -                   -                  -                  -
 Net lease rental debt                                          11,390,000          13,382,500         15,305,000         17,175,000          64,8

    Total net bonded debt                                      633,339,587 (2)     664,130,350        648,304,547        632,405,709        601,1


 End of year actual taxable assessed valuation               57,823,817,677      57,185,917,361    56,887,676,094    56,361,190,356       56,404,2

 Percentage of net debt to actual assessed valuation                 1.10%                 1.16%            1.14%                 1.12%

 Population (1)                                                   1,223,348           1,218,494         1,215,103          1,219,210           1,2

 Net bonded debt per capita                                             518                 545                534                 519

 Net bonded debt as a percentage of personal income                     n/a                1.93%            1.79%                 1.80%


Total net debt applicable to debt limit                        621,949,587         650,747,850        632,999,547        615,230,709        536,3

Legal debt limit
  300% of average gross revenue                               3,318,411,507       3,271,642,257     3,229,362,843      3,163,766,427       3,082,1

Legal debt margin within limitations                     $    2,696,461,920       2,620,894,407     2,596,363,296      2,548,535,718       2,545,8

Legal debt margin as a percentage of the debt limit                 81.26%              80.11%            80.40%             80.55%              8


Legal debt limit - For counties with lease rental debt
  400% of average gross revenue                          $    4,424,548,676       4,362,189,676     4,305,817,124      4,218,355,236       4,109,5

Total net debt applicable to debt limit                        633,339,587         664,130,350        648,304,547        632,405,709        601,1

Legal debt margin within limitations                     $    3,791,209,089       3,698,059,326     3,657,512,577      3,585,949,527       3,508,4

Legal debt margin as a percentage of the debt limit                 85.69%              84.78%            84.94%             85.01%              8



 (1) Source: U.S Census Bureau - American Fact Finder - 2010 Census

 (2) Includes $10,676,277 accretion on deferred interest and capital appreciation bonds.

 (3) As of January 1, 2001, the assessed value on all real property was changed from 25% to 100% of market value.

 Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements and Schedule J-'s.
       See J-3 for the calculation of the County's legal debt margin for the current year.




                                                                 370
                                                                                                                            Table XIII

                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                Ratios of General Obligation Bonds Outstanding and Legal Debt Margin
                                                            Last Ten Years




           2007              2006             2005             2004                2003             2002             2001

7        615,230,709       536,316,591      536,326,304      545,985,752          574,719,643     599,885,316      569,833,281
              -                 -                -                -                    -               -                -
0         17,175,000        64,815,000       67,010,000       74,932,500           76,735,000      78,467,500       31,880,000

7        632,405,709       601,131,591      603,336,304      620,918,252          651,454,643     678,352,816      601,713,281


4      56,361,190,356    56,404,299,088   55,594,180,462   55,396,277,772    56,545,422,888     59,176,240,257   55,128,007,049

%                1.12%           1.07%            1.09%            1.12%               1.15%            1.15%            1.09%

3           1,219,210         1,223,411        1,235,841        1,250,867           1,259,176        1,269,904        1,274,064

                  519               491              488              496                 517              534              472

%                1.80%           1.90%            1.93%            1.26%               1.38%            1.47%            1.33%


7        615,230,709       536,316,591      536,326,304      545,985,752          574,719,643     599,885,316      569,833,281


3       3,163,766,427     3,082,180,564    3,019,814,184    2,928,116,930     2,797,246,597      2,645,234,683    2,523,109,275

6       2,548,535,718     2,545,863,973    2,483,487,880    2,382,131,178     2,222,526,954      2,045,349,367    1,953,275,994

%             80.55%            82.60%           82.24%           81.35%              79.45%           77.32%           77.42%



4       4,218,355,236     4,109,574,085    4,026,418,912    3,904,155,908     3,729,662,129      3,526,979,576    3,364,145,700

7        632,405,709       601,131,591      603,336,304      620,918,252          651,454,643     678,352,816      601,713,281

7       3,585,949,527     3,508,442,494    3,423,082,608    3,283,237,656     3,078,207,486      2,848,626,760    2,762,432,419

%             85.01%            85.37%           85.02%           84.10%              82.53%           80.77%           82.11%




lue.

Schedule J-'s.




                                                                            371
                                                                                                            Table XIV

                                   C