County of Allegheny_ Pennsylvania

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					would be unlawful prior to the registration or qualification under the applicable securities laws of any such jurisdiction. Final written confirmation of the sale shall not be conclusive unless the Final Official Statement is delivered to the purchaser.
                                                                                                                                                                                                                                                                       NEW ISSUE—BOOK-ENTRY ONLY                                                                Rating: Moody’s “MIG 1”
This Preliminary Official Statement and the information contained herein are subject to completion or amendment in a Final Official Statement. The Notes may not be sold nor may offers to buy be accepted prior to the time the Official Statement is
delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale
                                                                                                                                                                                                                                                                                                                                                                  (See “Rating” herein.)

                                                                                                                                                                                                                                                                                       PRELIMINARY OFFICIAL STATEMENT DATED DECEMBER 14, 2010

                                                                                                                                                                                                                                                                           In the opinion of Note Counsel, based upon an analysis of existing laws, regulations, rulings and court
                                                                                                                                                                                                                                                                       decisions, interest on the Notes is excluded from gross income for Federal income tax purposes. Note Counsel
                                                                                                                                                                                                                                                                       is also of the opinion that interest on the Notes is not a specific item of tax preference under §57 of the Internal
                                                                                                                                                                                                                                                                       Revenue Code of 1986, as amended (the “Code”), for purposes of federal individual and corporate alternative
                                                                                                                                                                                                                                                                       minimum taxes.

                                                                                                                                                                                                                                                                           In the opinion of Note Counsel, under existing laws, the Notes, and the interest therefrom, are free from taxation
                                                                                                                                                                                                                                                                       for purposes of personal income, corporate net income and personal property taxes within the Commonwealth of
                                                                                                                                                                                                                                                                       Pennsylvania.

                                                                                                                                                                                                                                                                                                              $50,000,000*
                                                                                                                                                                                                                                                                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                                                                                                                                                                                                                                                                     TAX AND REVENUE ANTICIPATION NOTES
                                                                                                                                                                                                                                                                                                                 Series of 2011
                                                                                                                                                                                                                                                                       Dated: January 4, 2011                                                                            Due: April 5, 2011
                                                                                                                                                                                                                                                                       Interest Rate: _____               Price: _____%                     Yield: _______%             CUSIP: __________
                                                                                                                                                                                                                                                                            The County of Allegheny, Pennsylvania (the “County”) is issuing its Tax and Revenue Anticipation Notes, Series
                                                                                                                                                                                                                                                                       of 2011 in the principal amount of $50,000,000* (the “Notes”). The Notes will be issued in registered form in initial
                                                                                                                                                                                                                                                                       denominations of $100,000 or any integral multiple thereof, and will be dated January 4, 2011. The Notes will be
                                                                                                                                                                                                                                                                       issuable only as fully registered Notes, registered in the name of Cede & Co., as nominee for the Depository Trust
                                                                                                                                                                                                                                                                       Company (“DTC”), New York, New York, which will act as securities depository for the Notes. Purchasers will
                                                                                                                                                                                                                                                                       not receive certificates representing their ownership interest in the Notes purchased. So long as Cede & Co. is the
                                                                                                                                                                                                                                                                       registered owner, as nominee of DTC, references herein to “Owners” or “registered owners” shall mean Cede & Co. as
                                                                                                                                                                                                                                                                       aforesaid, and shall not mean the Beneficial Owners of the Notes. Beneficial ownership of the Notes may be acquired
                                                                                                                                                                                                                                                                       in denominations of $100,000 and any integral multiple thereof. The Notes will pay interest at maturity. Principal
                                                                                                                                                                                                                                                                       of and interest on the Notes is payable at the principal corporate trust office of U.S. Bank, National Association,
                                                                                                                                                                                                                                                                       Pittsburgh, Pennsylvania (the “Paying Agent”). So long as DTC or its nominee, Cede & Co., is the registered owner,
                                                                                                                                                                                                                                                                       such payments will be made directly to Cede & Co. Disbursement of such payments to the DTC Participants is the
                                                                                                                                                                                                                                                                       responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility of DTC
                                                                                                                                                                                                                                                                       Participants and the Indirect Participants, as more fully described herein.
                                                                                                                                                                                                                                                                           REDEMPTION: The Notes are not subject to mandatory or optional redemption prior to maturity.
                                                                                                                                                                                                                                                                          PURPOSE: The purpose of the issuance of the Notes is to fund, in part, current operating expenses of the
                                                                                                                                                                                                                                                                       County in anticipation of the receipt of taxes and revenues during the fiscal year ending December 31, 2011.
                                                                                                                                                                                                                                                                            SECURITY: The Notes will constitute an irrevocable pledge of the County’s full faith, credit and taxing power
                                                                                                                                                                                                                                                                       for the payment of the principal of, and interest on, the Notes.
                                                                                                                                                                                                                                                                          INTEREST RATE: The Notes will accrue interest at a fixed rate and interest will be paid upon maturity. See
                                                                                                                                                                                                                                                                       “THE NOTES” herein.
                                                                                                                                                                                                                                                                          AUTHORITY FOR ISSUANCE: The Notes have been executed and delivered in accordance with the Local
                                                                                                                                                                                                                                                                       Government Unit Debt Act of the Commonwealth of Pennsylvania, 53 Pa. Cons. Stat. §8001 et seq., as amended (the
                                                                                                                                                                                                                                                                       “Debt Act”), and pursuant to a Note Resolution duly adopted by the Allegheny County Council on December 21, 2010.
                                                                                                                                                                                                                                                                       Proceedings with respect to the issuance of the Notes have been filed with the Department of Community and
                                                                                                                                                                                                                                                                       Economic Development of the Commonwealth of Pennsylvania pursuant to the Debt Act.
                                                                                                                                                                                                                                                                           This cover page contains certain information for reference purposes only. It is not a complete summary of
                                                                                                                                                                                                                                                                       the issue. Investors must read the entire Official Statement to obtain information essential to making an informed
                                                                                                                                                                                                                                                                       investment decision.
                                                                                                                                                                                                                                                                           The Notes are offered when, as and if issued by the County, and subject to the approval of the legality thereof by
                                                                                                                                                                                                                                                                       R. Darryl Ponton & Associates of Pittsburgh, Pennsylvania, Note Counsel. Certain other legal matters will be passed
                                                                                                                                                                                                                                                                       upon for the County by Michael H. Wojcik, Esquire, County Solicitor. The Notes will be available for delivery to DTC
                                                                                                                                                                                                                                                                       in New York, New York, on or about ____________.

                                                                                                                                                                                                                                                                       * Preliminary Subject to Change.
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                               COUNTY OF ALLEGHENY, PENNSYLVANIA


                                             Chief Executive
                                              Dan Onorato

                                             County Council

       Council-at-Large                     Council District 5             Council-at-Large
        John P. DeFazio                      Vince Gastgeb                 Chuck McCullough

       Council District 1                   Council District 6            Council District 10
         Matt Drozd                           Joan Cleary               William Russell Robinson

       Council District 2                   Council District 7            Council District 11
           Jan Rea                           Nicholas Futules              Rich Fitzgerald *

       Council District 3                  Council District 8             Council District 12
        James Burn, Jr.                Charles J. Martoni, Ph.D. **        James Ellenbogen

       Council District 4                   Council District 9            Council District 13
       Michael J. Finnerty                   Robert J. Macey                Amanda Green

         Controller                         County Manager                    Treasurer
     Mark Patrick Flaherty                 James M. Flynn, Jr.             John K. Weinstein

                                           County Solicitor
                                       Michael H. Wojcik, Esquire

                                     Budget and Finance Director
                                        Amy B. Griser, CPA

                                             Note Counsel
                                     R. Darryl Ponton & Associates.

                                             Paying Agent
                                     U.S. Bank, National Association

                                            Financial Advisor
                                    Public Financial Management, Inc.

* President of Council
** Vice President of Council




                                                   (i)
No dealer, broker, salesman, or any other person has been authorized by the County or the Purchaser to give any
information or to make any representation in connection with the offering of the Notes, other than those contained
in this Official Statement, and, if given or made, such other information or representation must not be relied upon
as having been authorized by either of the foregoing. This Official Statement does not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of the Notes by any person in any jurisdiction in which
such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified
or licensed to do so or to any person to whom it is unlawful to make such offer, solicitation, or sale. The
information herein has been furnished solely by the County and by other sources that are believed by the County to
be reliable, but it is not guaranteed as to its accuracy or completeness by, and is not to be construed as a
representation of, the Purchaser. The information and expressions of opinion herein are subject to change without
notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any
circumstances, create any implication that there has been no change in the affairs of the County after the date
hereof. This Official Statement is submitted in connection with the sale of the Notes and may not be reproduced or
used, in whole or in part, for any other purpose.

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




                                                         (ii)
                                                              TABLE OF CONTENTS
                                                                                                                                                        PAGE

INTRODUCTORY STATEMENT ...............................................................................................................1
AUTHORITY FOR THE NOTES .................................................................................................................1
THE NOTES ..................................................................................................................................................1
  General .......................................................................................................................................................1
  Delivery of Certificates; Registered Owners .............................................................................................2
  Transfer and Exchange...............................................................................................................................2
BOOK-ENTRY-ONLY SYSTEM ................................................................................................................2
  Discontinuance of Book-Entry-Only System ............................................................................................5
SECURITY FOR THE NOTES .....................................................................................................................5
  Security Interest .........................................................................................................................................5
  Sinking Fund ..............................................................................................................................................5
COUNTY OF ALLEGHENY ........................................................................................................................6
COMPUTATION OF CUMULATIVE CASH FLOW SURPLUS (DEFICIT) ...........................................7
FINANCIAL STATEMENTS .......................................................................................................................7
LITIGATION .................................................................................................................................................7
LEGAL MATTERS .......................................................................................................................................9
FINANCIAL ADVISOR ...............................................................................................................................9
TAX MATTERS ............................................................................................................................................9
  Federal Tax Exemption ..............................................................................................................................9
  Original Issue Premium ...........................................................................................................................10
  Pennsylvania Tax Exemption...................................................................................................................10
CONTINUING DISCLOSURE UNDERTAKING .....................................................................................10
RATING.......................................................................................................................................................11
SALE OF NOTES ........................................................................................................................................11
CONCLUDING STATEMENT ..................................................................................................................12


Appendix A - County of Allegheny
Appendix B – Form of Opinion of Note Counsel
Appendix C - County of Allegheny Audited Financial Statements for Year Ended December 31, 2009




                                                                              (iii)
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                (iv)
                                           OFFICIAL STATEMENT

                                               $50,000,000*
                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                  TAX AND REVENUE ANTICIPATION NOTES
                                             SERIES OF 2011

                                         INTRODUCTORY STATEMENT

        This Official Statement (including the cover page and Appendices hereto) is furnished in connection with
the offering by the County of Allegheny, Pennsylvania (the “County”) of its Tax and Revenue Anticipation Notes,
Series of 2011 in the principal amount of $50,000,000* (the “Notes”).

        The Notes shall be dated January 4, 2011, and are being issued to fund, in part, current operating expenses
of the County in anticipation of the receipt of taxes and revenues during the fiscal year ending December 31, 2011.

         Neither the delivery of this Official Statement nor any sale of the Notes made hereunder shall, under any
circumstances, create any implication that there have been no changes in the affairs of the County since the date of
this Official Statement or the earliest date as to which certain information contained herein is given.

        The County is a political subdivision of the Commonwealth of Pennsylvania and a home rule county under
the Second Class County Charter Law. See “COUNTY OF ALLEGHENY” herein and APPENDIX A – “County
of Allegheny” hereto.

                                         AUTHORITY FOR THE NOTES

        The Notes will be issued pursuant to and in conformity with the terms of the Local Government Unit Debt
Act of the Commonwealth of Pennsylvania, 53 Pa. Cons. Stat. §8001 et seq., as amended (the “Debt Act”) and
pursuant to a Note Resolution adopted by the Allegheny County Council on December 21, 2010 (the “Note
Resolution”). Copies of the Note Resolution will be available for inspection at the offices of the Chief Clerk,
Allegheny County.

                                                   THE NOTES

GENERAL

         The principal amount of the Notes to be issued is $50,000,000*. The Notes will be fully registered Notes
in denominations of $100,000 or any integral multiple thereof. The Notes will be dated January 4, 2011, will
mature on April 5, 2011, and will bear interest at the rate set forth on the cover page of this Official Statement.
Interest on the Notes shall be computed on the basis of an assumed 360-day year consisting of twelve (12) thirty
(30) day months and shall be payable at maturity. The Notes are not subject to mandatory or optional redemption
prior to maturity. Interest on the Notes will be paid upon maturity.

        The principal of and interest on the Notes shall be payable at the principal corporate trust office of US
Bank, National Association, Pittsburgh, Pennsylvania (the “Paying Agent”) in such coin or currency of the United
States of America as of the time and place of payment is legal tender for public and private debts.

       Certificates representing ownership of the Notes will not be issued to the purchasers of the Notes. Rather,
The Depository Trust Company, New York, New York (“DTC”) will act as securities depository under a book-

*Preliminary Subject to Change.




                                                         1
entry system for the Notes. Unless such system is discontinued, the provisions described under “BOOK-ENTRY-
ONLY SYSTEM” below (including provisions regarding payments to and transfers by the owners of beneficial
interests in the Notes) will be applicable to the Notes. While the Notes are in the Book-Entry-Only System,
references to the “Owner” or the “Registered Owner” as described herein are to Cede & Co., as nominee of DTC.
Each beneficial owner of a Note may desire to make arrangements with a DTC Participant to receive notices or
communications with respect to matters described herein. See “BOOK-ENTRY-ONLY SYSTEM” herein. If such
system is discontinued, the provisions described under “Discontinuation of Book-Entry-Only System” below will
be applicable.

        So long as DTC or its nominee, Cede & Co., is the registered owner of the Notes, payments of the principal
of, premium, if any, and interest on the Notes will be made by the Paying Agent directly to Cede & Co.
Disbursements of such payments to the Direct Participants (as hereinafter defined) is the responsibility of DTC.
Disbursement of such payment to the owners of the beneficial interest in the Notes is the responsibility of the Direct
Participants and the Indirect Participants (as hereinafter defined). See “BOOK-ENTRY-ONLY SYSTEM” herein.

DELIVERY OF CERTIFICATES; REGISTERED OWNERS

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

TRANSFER AND EXCHANGE

         Subject to the provisions described under “BOOK-ENTRY-ONLY SYSTEM” below, a Note may be
transferred or exchanged only upon presentation thereof to the Paying Agent. Such Note must be accompanied by a
written instrument or instruments of transfer or exchange, in form and with guaranty of signatures satisfactory to
the County and the Paying Agent, duly executed by the Registered Owner thereof or his duly authorized agent or
legal representative. Upon surrender of any Notes to be transferred or exchanged, the Paying Agent shall record the
transfer or exchange in its Note Register and shall authenticate and deliver new Notes appropriately registered and
in appropriate authorized denominations. Neither the County nor the Paying Agent shall be required to effect or
register any transfer or exchange of any Note fifteen (15) days prior to maturity of the Notes. No charge will be
imposed in connection with any transfer or exchange, except for taxes or governmental charges related thereto. No
service charge shall be made for any transfer of any Note, but the County or the Paying Agent may require payment
of any sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Notes.

                                          BOOK-ENTRY-ONLY SYSTEM

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

       The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the
Notes. The Notes will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s

                                                          2
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-
registered Note certificate will be issued for each maturity of the Notes set forth on the inside front cover page of
this Official Statement, each in the aggregate principal amount of such maturity and will be deposited with DTC.

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

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

         To facilitate subsequent transfers, all Notes deposited by Direct Participants with DTC are registered in the
name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Notes with DTC and their registration in the name of Cede & Co. or such
other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Notes. DTC’s records reflect only the identity of the Direct Participants to whose
accounts such Notes are credited, which may or may not be the Beneficial Owners. The Direct and Indirect
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to
time. Beneficial Owners of Notes may wish to take certain steps to augment transmission to them of notices of
significant events with respect to the Notes, such as redemptions, tenders, defaults, and proposed amendments to
the Note documents. For example, Beneficial Owners of Notes may wish to ascertain that the nominee holding the
Notes for their benefit has agreed to obtain and transmit notices to Beneficial Owners, in the alternative, Beneficial
Owners may wish to provide their names and addresses to the registrar and request that copies of the notices be
provided directly to them.



                                                          3
        Redemption notices shall be sent to DTC. If less than all of the Notes within a maturity of the Notes are
being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such
maturity to be redeemed.

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

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

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

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

       The above information in this section concerning DTC and DTC’s book-entry system has been obtained
from sources that the County believes to be reliable but the County takes no responsibility for the accuracy thereof.

     NEITHER THE COUNTY NOR THE PAYING AGENT WILL HAVE ANY RESPONSIBILITY
OR OBLIGATION TO PARTICIPANTS, BENEFICIAL OWNERS OR OTHER NOMINEES OF SUCH
BENEFICIAL OWNERS FOR (1) SENDING TRANSACTION STATEMENTS; (2) MAINTAINING,
SUPERVISING OR REVIEWING, OR THE ACCURACY OF, ANY RECORDS MAINTAINED BY DTC
OR ANY PARTICIPANT OR OTHER NOMINEES OF SUCH BENEFICIAL OWNERS; (3) PAYMENT
OR THE TIMELINESS OF PAYMENT BY DTC TO ANY PARTICIPANT, OR BY ANY PARTICIPANT
OR OTHER NOMINEES OF BENEFICIAL OWNERS TO ANY BENEFICIAL OWNER, OF ANY
AMOUNT DUE IN RESPECT OF THE PRINCIPAL OF OR REDEMPTION PREMIUM, IF ANY, OR
INTEREST ON BOOK-ENTRY NOTES; (4) DELIVERY OR TIMELY DELIVERY BY DTC TO ANY
PARTICIPANT, OR BY ANY PARTICIPANT OR OTHER NOMINEES OF BENEFICIAL OWNERS TO
ANY BENEFICIAL OWNERS, OF ANY NOTICE (INCLUDING NOTICE OF REDEMPTION) OR
OTHER COMMUNICATION WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE
ORDINANCE TO BE GIVEN HOLDERS OR OWNERS OF BOOK-ENTRY NOTES; (5) THE
SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE EVENT OF ANY
PARTIAL REDEMPTION OF BOOK-ENTRY NOTES; OR (6) ANY ACTION TAKEN BY DTC OR ITS
NOMINEE AS THE REGISTERED OWNER OF BOOK-ENTRY NOTES.




                                                         4
DISCONTINUANCE OF BOOK-ENTRY-ONLY SYSTEM

        DTC may determine to discontinue providing its services with respect to the Notes at any time by giving
notice to the Paying Agent and discharging its responsibilities with respect thereto under applicable law. Under
such circumstances, Note certificates are required to be printed and delivered as described below and in the Note
Resolution. A Beneficial Owner, upon registration of certificates held in the Beneficial Owner’s name, will
become the Noteholder.

         The County may determine to discontinue the system of book-entry transfer through DTC (or a successor
securities depository). In such event, Note certificates will be printed and delivered as described below and in the
Note Resolution.

       Unless otherwise noted, the information contained in this section has been extracted from a report from
DTC entitled “Book Entry-Only Municipals”. No representation is made by the County or the Purchaser as to the
completeness or the accuracy of such information or as to the absence of material adverse changes in such
information subsequent to the date hereof.

         In the event that the Book-Entry-Only System is discontinued, the following provisions will apply to the
Note certificates in fully registered form will be delivered to, and registered in the names of, the DTC Participants
or such other persons as such DTC Participants may specify (which may be the Indirect Participants or the
Beneficial Owners), in authorized denominations. The ownership of the Notes so delivered (and any Notes
thereafter delivered upon a transfer or exchange described below) shall be registered in the Note Register to be kept
by the Paying Agent at its principal corporate trust office. The County and the Paying Agent shall be entitled to
treat the registered owners of such Notes, as their names appear in such Note Register as of the appropriate dates, as
the owners thereof for all purposes described herein and in the Note Resolution.

                                           SECURITY FOR THE NOTES

SECURITY INTEREST

         The Notes shall be payable from and are equally and ratably secured by the pledge of, security interest in,
and lien and charge upon, the taxes and other revenues (or both) of the County to be received during the period in
which the Notes are outstanding (the “Revenue Receipts”). The County shall cause financing statements to be
filed, registered and recorded in such manner and at such places as may be required by law to fully protect the
security interests of the owners of the Notes and from time to time shall perform or shall cause to be performed any
other act as provided by law, and shall execute and shall cause to be executed any and all further instruments as
may be required by law, as governed by and interpreted pursuant to the Debt Act, for such protection or
preservation of the security interests of the owners of the Notes. The Note Resolution shall constitute a security
agreement between the County and the owners from time to time of the Notes.

SINKING FUND

        The County will establish a separate sinking fund to be known as “Sinking Fund – Tax and Revenue
Anticipation Notes, Series of 2011” (the “Sinking Fund”) and into said Sinking Fund there shall be paid by the
County the Revenue Receipts necessary to pay the debt service on the Notes. Such monies shall be paid into the
Sinking Fund in the amount necessary to pay the principal of and interest on the Notes and in such form as will
provide available funds at or prior to 10:00 A.M., prevailing time, on the maturity date of the Notes. The Paying
Agent, without further authorization, shall withdraw monies from the Sinking Fund and apply the same exclusively
to payment of the principal of and interest on the Notes as the same shall become due. Monies, if any, which may
be deposited from time to time in the Sinking Fund, and which are not immediately needed for payment of the
principal of and interest of the Notes, shall be invested at the order of the County as permitted by law. Such


                                                          5
investments shall mature or shall be subject to redemption without penalty, and such deposits shall be subject to
withdrawal, on or before the date upon which the monies so invested or deposited are needed to pay the principal of
and the interest on the Notes. As provided in the Debt Act, if the Notes are not paid within the fiscal year in which
the same are issued, the Notes shall be deemed to be nonelectoral debt enforceable in the manner of a general
obligation, and the amount thereto shall be included in the budget of the County for the ensuing fiscal year and shall
be payable from the taxes and revenues of such ensuing year.

                                            COUNTY OF ALLEGHENY

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

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

      Dan Onorato is the County’s elected Chief Executive. James M. Flynn, Jr., serves as the appointed County
Manager.

        The legislative power of the County is vested in the County Council which consists of two at-large
members and thirteen members elected by district. The members of the County Council, who are listed on the
inside cover of this Official Statement, bring a wide variety of public and private experiences to County
government. Rich Fitzgerald is President of County Council and Charles Martoni, Ph.D. is Vice President of
County Council.

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




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                                                          6
                                      ALLEGHENY COUNTY
                         TAX AND REVENUE ANTICIPATION NOTES, SERIES OF 2011
                     COMPUTATION OF CUMULATIVE CASH FLOW SURPLUS (DEFICIT)

                                                                                                           Greatest
                  Opening           Estimated       Available       Estimated            Ending         Deficit Divided
   Month
                  Balance*           Receipts        Funds         Expenditures         Balance*        by 90% Shown
                                                                                                          Positively
 January         (33,629,000)       41,480,000       7,851,000        56,220,000      (48,369,000)           53,740,000
 February        (48,369,000)       55,410,000       7,041,000        55,180,000      (48,139,000)
 March           (48,139,000)      234,320,000     186,181,000        54,340,000       131,841,000
 April           131,841,000        90,510,000     222,351,000        86,900,000      135,451,000
 May             135,451,000        31,330,000     166,781,000        63,040,000      103,741,000
 June            103,741,000        47,870,000     151,611,000        72,920,000        78,691,000
 July              78,691,000       46,690,000     125,381,000        51,530,000        73,851,000
 August            73,851,000       30,520,000     104,371,000        60,630,000        43,741,000
 September         43,741,000       30,170,000      73,911,000        62,080,000        11,831,000
 October           11,831,000       72,920,000      84,751,000        53,740,000        31,011,000
 November          31,011,000       28,750,000      59,761,000        95,940,000      (36,179,000)
 December        (36,179,000)       57,720,000      21,541,000        55,170,000      (33,629,000)
 Total                             767,690,000                       767,690,000

* Balances do not include the current TRAN


                                             FINANCIAL STATEMENTS

        The financial statements of the County as of and for the year ended December 31, 2009, appearing in
Appendix C to this Official Statement, have been audited by Maher Duessel, Pittsburgh, Pennsylvania, independent
public accountants, as stated in their reports appearing herein.

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

        The County represents, as of the date hereof, that there have been no material adverse changes in its
financial condition, as set forth in Appendix C of this Official Statement, since December 31, 2009 which is the
most recent fiscal year for which a Comprehensive Annual Financial Report (“CAFR”) has been filed.

                                                    LITIGATION

         The following is a description of certain material legal proceedings and claims involving the County, other
than routine litigation incident to the performance of its governmental and other functions, as well as certain other
litigation arising out of alleged constitutional violations, civil actions, violations of law or other proceedings. The
ultimate outcome of the proceedings and claims described below is not currently predictable; however, an adverse
outcome could have a material effect on the County’s financial condition.

        1.       Allegheny County Jail Lawsuits. Approximately eleven (11) different lawsuits or claims of a
potential lawsuit have been filed against the County arising out of alleged incidents or actions at the County’s Jail.
Three lawsuits/notices of claim were filed by the estates of certain inmates. In these cases, the plaintiffs allege
violations of constitutional rights stemming from deaths of inmates during their period of incarceration. One
lawsuit was filed by an employee of a contractor at the jail who alleges violations of her civil rights. Seven

                                                          7
lawsuits were filed by former or current jail inmates that allege in part civil rights violations during the period of
incarceration at the County’s Jail.

       2.      Ansell v. Allegheny County et al. The plaintiff in this lawsuit alleges violations of his civil rights
in connection with his activities that purportedly occurred prior to his arrest and subsequent incarceration at the
County Jail.

        3.       Association of Community Organizations for Reform Now v. Allegheny County et al. Plaintiff
organization filed a class action lawsuit in 2004 contending that the assignment of tax liens by Allegheny County
and the attempted enforcement by the third party assignee is unconstitutional.

        4.     Personal Injury and Property Damage Suits and Claims. The County has received a number
of notices of potential claims for personal injury and/or property damage arising out of incidents on County
roadways or properties or alleged incidents caused by County employees. Additionally, the County has been
named as a defendant in several lawsuits alleging personal injury or property damages.

        5.       Fiore v. County of Allegheny. The plaintiff filed a declaratory judgment action and a petition for
appointment of a board of viewers against the County. In both actions, the plaintiff alleges that the County has
improperly interfered with his right to enter onto and conduct surface mining operations on a 93 acre portion of the
County’s South Park and that such interference constitutes a de facto taking of his coal rights. The Common Pleas
Court ruled in favor of the County in the Fiore case. It is now on appeal to the Superior Court.

       6.       Gettel v. Allegheny County et al. The plaintiff, who applied for a position in the Health
Department, alleges age discrimination in this lawsuit.

        7.       In Re Real Property Assessment Appeals. At various times real property tax assessment appeals
are pending in the Court of Common Pleas. In the aggregate, these appeals represent amounts that may be
considered material; however, separately, the amount of County taxes under consideration is generally minimal.
Generally, decreases in valuations resulting in reduction of tax revenue in various cases are offset by increases in
valuations resulting in increases in tax revenue in other cases.

        8.       Robinson v. Allegheny County et al. The plaintiff contends that her constitutional rights were
violated as a result of a purported improper investigation of child abuse.

       9.     Schaffer v. Allegheny County et al. The plaintiff in this lawsuit alleges that a delayed response to
a 911 emergency call contributed to the death of an infant child.

        10.    Various Due Process Violations.       Three (3) lawsuits filed by relatives of children within
Children, Youth and Families programs allege violations of due process rights and various other constitutional
protections.

         11.    Whitely v. Allegheny County et al. Former prison inmate alleges violations of his constitutional
rights stemming from an eighteen year incarceration and subsequent acquittal for murder. Plaintiff also alleges
malicious prosecution and professional negligence.

         12.      Poplawski, Margaret v. Allegheny County et al.            Mother of accused murderer alleges
negligence of 911 call center dispatcher regarding damage to real property. Plaintiff recently filed her complaint in
this matter and an appropriate response is being prepared. It remains premature at this time to state with any degree
of certainty the likelihood of a favorable or unfavorable outcome.




                                                          8
        13.       Spiker, Spencer v. Allegheny County et al. Former jail inmate alleges violations of his civil
rights. Plaintiff recently filed his complaint and an appropriate response is being prepared in this matter. It remains
premature at this time to state with any degree of certainty the likelihood of a favorable or unfavorable outcome.

         14.      Thorton, Theresa v. Allegheny County et al. Plaintiff alleges gross negligence and violation of
civil rights in connection with the death of a family member. Plaintiff recently filed her complaint and an
appropriate response is being prepared in this matter. It remains premature at this time to state with any degree of
certainty the likelihood of a favorable or unfavorable outcome.

        15.      White v. Allegheny County, et al. This is a putative class action suit filed against Allegheny
County, the City of Pittsburgh, the Pittsburgh School District and the Woodland Hills School District. The suit,
which seeks declaratory, injunctive, restitution and other forms of relief, alleges that a class of taxpayers have been
forced to bear a disproportionate property tax burden due to inequalities resulting from a lack of uniform property
assessments within the County. All of the defendants are vigorously opposing this suit and have filed preliminary
objections challenging the procedural and substantive basis for this action. It remains premature at this time to state
with any degree of certainty the likelihood of a favorable or unfavorable outcome.

                                                 LEGAL MATTERS

        All legal matters incident to the authorization of issuance of the Notes are subject to the receipt of an
approving legal opinion from R. Darryl Ponton & Associates, Pittsburgh, Pennsylvania, as Note Counsel. The text
of the opinion is included as Appendix B to this Official Statement. Certain legal matters will be passed upon for
the County by its Solicitor, Michael H. Wojcik, Esquire, Pittsburgh, Pennsylvania.

                                               FINANCIAL ADVISOR

        Public Financial Management, Inc. (“PFM”) is serving as financial advisor to the County in connection
with the issuance of the Notes. PFM has assisted the County in matters relating to the planning, structuring and
issuance of the Notes and has provided the County with other financial advice. PFM is not obligated to undertake,
and has not undertaken to make, an independent verification or to assume responsibility for the accuracy,
completeness or fairness of the information contained in this official statement. PFM will receive a fee for its
services with regard to the issuance of the Notes.

                                                  TAX MATTERS

FEDERAL TAX EXEMPTION

        The opinion of Note Counsel will state that under existing law, the interest on the Notes (a) is excluded
from gross income for Federal income tax purposes and (b) is not an item of tax preference for purposes of the
Federal alternative minimum tax imposed on individuals and corporations. For the purpose of rendering the
opinions set forth in this paragraph, Note Counsel will assume compliance by the County with all requirements of
the Code that must be satisfied subsequent to the issuance of the Notes in order that interest on the Notes be (or
continue to be), excluded from gross income for Federal income tax purposes. Failure by the County to comply
with such requirements could cause the interest on the Notes to be included in gross income retroactive to the date
of issuance of the Notes. The County has covenanted in the Note Resolution to comply with all such requirements.

         Note Counsel will express no opinion regarding other federal tax consequences arising with respect to the
Notes.




                                                          9
ORIGINAL ISSUE PREMIUM

        The Notes will be sold at an original issue premium (individually referred to as an “OIP Note”). The
original issue premium for a Note will be equal to the excess of an owner’s tax basis in the OIP Note over the
amount payable at maturity. Under current law, the original issue premium for an OIP Note must be amortized on
an annual basis by the owner thereof. The amount of original issue premium amortized each year will not be
deductible for federal income tax purposes. Further, Section 1016 of the Code requires that the amount of annual
amortization for the OIP Note be deducted by the owner’s tax basis in such OIP Note. This reduction in an owner’s
tax basis will affect the amount of capital gain or loss to be recognized by the owner when the OIP Note is sold.
Amortizable premium is accounted for as reducing the tax-exempt interest on the OIP Notes rather than creating a
deductible expense or loss. Owners of OIP Notes should consult their tax advisors with respect to the termination
and treatment of amortizable original issue premium for federal income tax purposes and with respect to the state
and local tax consequences of owning such OIP Notes.

PENNSYLVANIA TAX EXEMPTION

        The opinion of Note Counsel will state that the Notes are, under existing law, exempt from Pennsylvania
personal property taxes and the interest on the Notes is exempt from the Pennsylvania corporate net income tax and
from Pennsylvania personal income taxation. Note Counsel expresses no opinion with respect to state or local taxes
of any state other than the Commonwealth of Pennsylvania.

                                  CONTINUING DISCLOSURE UNDERTAKING

        Pursuant to Rule 15c2-12 (the “Rule”) of the Securities and Exchange Commission (“SEC”) under the
Securities Exchange Act of 1934, as amended (the “1934 Act”), the County has agreed, as a condition to the
purchase of the Notes by the Purchasers, that the County will provide the following information:

        (a)     within 185 days after the end of its fiscal year and each subsequent fiscal year, to the Municipal
Securities Rulemaking Board (the “MSRB”) using the Electronic Municipal Market Access (“EMMA”) system
created by the MSRB, as described in the Securities and Exchange Commission Release No. 34-59061 and Release
No. 34-59062, (i) the County’s audited general purpose financial statements, prepared in accordance with generally
accepted accounting principles in effect from time to time, and (ii) certain financial information and operating data
(excluding, among other things, any management discussion) of the type found in this Official Statement in
Appendix A including, among other things, under the captions “SCHEDULE OF OPERATIONS 2005-2009,”
“GENERAL SOURCES OF REVENUE BY PERCENTAGE,” “REAL ESTATE ASSESSED VALUATION,”
“PENSION PLAN,” and “STATEMENT OF INDEBTEDNESS”; and

        (b)     The following events with respect to the Notes shall constitute Reportable Events and shall be
provided to the MSRB no later than ten (10) business days after the occurrence:
        1.      Principal and interest payment delinquencies
        2.      Non-payment related defaults, if material
        3.      Unscheduled draws on debt service reserves reflecting financial difficulties
        4.      Unscheduled draws on credit enhancements reflecting financial difficulties
        5.      Substitution of credit or liquidity providers, or their failure to perform
        6.      Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or
determinations with respect to the tax status of the Notes or other material events affecting the tax-exempt status of
the Notes
        7.      Modifications to rights of holders of the Note, if material
        8.      Note calls, if material, and tender offers
        9.      Defeasances


                                                         10
         10.     Release, substitution or sale of property securing repayment of the Note, if material
         11.     Rating changes
         12.     Bankruptcy, insolvency, receivership or similar event of the County (or any other entity that is an
obligated person within the meaning of the Rule with respect to the Notes)
         13.     The consummation of a merger, consolidation, or acquisition involving the County (or any other
entity that is an obligated person within the meaning of the Rule with respect to the Notes) or the sale of all or
substantially all of the assets of the County or any such obligated person, other than in the ordinary course of
business, the entry into a definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if material
         14.     The appointment of a successor or additional trustee or the change of name of a trustee, if material;
and
         15.     Failure to make an annual financial information filing on a timely basis.

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

        The County has complied with its previous continuing disclosure undertakings.

                                                      RATING

        Moody’s Investors Service, Inc. have assigned the Notes a rating of “MIG 1”.

        Such ratings reflect only the views of such organizations and any desired explanation of the significance of
such ratings should be obtained from the rating agency furnishing the same, at the following addresses: Moody’s
Investors Service, Inc., 99 Church Street, New York, New York 10007. There is no assurance that such ratings will
not be revised downward or withdrawn entirely by the rating agencies, if in the judgment of such rating agencies,
circumstances so warrant. Any such downward revision or withdrawal or such rating may have an adverse effect
on the market price of the Notes.

                                                 SALE OF NOTES

        After competitive bidding conducted on ___________, the Notes were awarded to _____________.(the
“Purchaser”). The Notes are being purchased by the Purchaser at an aggregate purchase price of $_____________
(principal amount of the Notes of $____________ plus original issue premium of $___________).




                                                         11
                                          CONCLUDING STATEMENT

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

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

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

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




                                                                COUNTY OF ALLEGHENY

                                                                By:.___________________________
                                                                James M. Flynn, Jr., County Manager

                                                                By: ___________________________
                                                                Mark Patrick Flaherty, Controller




                                                        12
  APPENDIX A

County of Allegheny
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                                     COUNTY OF ALLEGHENY

                                           INTRODUCTION

                                  STRUCTURE OF GOVERNMENT


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

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

        Dan Onorato, the County’s elected Chief Executive, has both extensive business experience and
organizational leadership. Prior to his election as Chief Executive, he served as the Allegheny County
Controller from 2000 to 2004. As the County's chief financial officer and independent auditor, he guided
Allegheny County's financial management and uncovered opportunities to streamline government
operations. Mr. Onorato also served two terms as a member of Pittsburgh City Council, from 1992-2000.
Before entering public office, Mr. Onorato practiced both as an attorney and a Certified Public
Accountant. Mr. Onorato is actively involved in the community. He has served as a board member of the
Pittsburgh Parks Conservancy, National Aviary, St. Anthony School Programs, Pittsburgh Children's
Museum, Carnegie Library of Pittsburgh and Friends of the Riverfront. He is also a member of the World
War II Veterans of Allegheny County Memorial Fund Advisory Committee.

         Mr. Onorato attended the Pennsylvania State University, where in 1983 he earned a bachelor's
degree in accounting. He continued his education at the University Of Pittsburgh School Of Law, earning
a Juris Doctorate degree in 1989. Mr. Onorato is a life-long resident of the North Side of Pittsburgh.

       County Manager. In January 2004, James M. Flynn, Jr. was appointed by Allegheny County
Chief Executive Dan Onorato to serve as Allegheny County Manager, the chief operations officer of the
County. As Manager, Jim Flynn works to ensure that the day-to-day operations of county government
run smoothly and efficiently.

        Under the Charter, the Manager serves as the chief administrative officer of the County,
responsible to the Chief Executive for the administration of County operations placed in the Manager’s
charge by ordinance, by the Chief Executive or by the Charter. The Manager’s duties also include the
supervision of all Executive Branch departments and agencies except the Law Department; the

                                                   A-1
preparation and administration of a personnel system, including the authority to hire, discipline and
discharge personnel under the jurisdiction of the Manager; and the preparation and administration of the
Comprehensive Fiscal Plan (the “CFP”) for the County.

        Prior to this appointment, Jim Flynn served as Deputy Allegheny County Controller from 2000 –
2003. He came to Allegheny County with more than 14 years of financial management experience.
Previously, Jim Flynn served as Controller for Chester Engineers, Inc., an engineering and construction
firm based in Pittsburgh. He also served as a senior accountant for a mechanical contractor.

        Jim Flynn was appointed by Chief Executive Onorato to serve on the Allegheny County Board of
Health. He also serves on the board for Allegheny Correctional Health Services Inc., which is responsible
for providing health care to inmates in the Allegheny County Jail.

       A native of Pittsburgh, Jim Flynn earned a B.S. from Carnegie Mellon University in public policy
and management, as well as a B.S. from Point Park College in accounting. He continued his education at
Robert Morris College, earning a M.B.A. Mr. Flynn also completed the requirements of the C.P.A. exam.

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

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

            COUNTY FINANCIAL MANAGEMENT, BUDGETING AND CONTROLS

Operating and Capital Budget Process

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

         The Charter limits the Chief Executive’s and County Council’s operating budgets to 0.2% and
0.4% of the County’s locally levied tax revenue respectively. The Charter maintained the previous limits
of taxation on real estate, sales and hotel/motel taxes. Any increase in real estate tax revenues is capped
at 5% annually (excluding new construction and rehabilitation) in the year after a countywide
reassessment. A two-thirds majority of Council is required to effect a change in the rate of taxation for
real estate. The Chief Executive has line-item veto power, which may be overridden by a two-thirds vote
of Council.


                                                   A-2
        The Charter requires passage of balanced annual operating and capital budgets. No budget may
be reopened without a two-thirds vote of Council and concurrence of the Chief Executive.

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

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

Financial Reporting and Control Systems

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

         The County’s financial statements are prepared in accordance with generally accepted accounting
principles (GAAP) applicable to government bodies. Governmental funds and activities are accounted for
and reported on the modified accrual basis. Proprietary funds, including the Risk Management Fund, are
reported on the full accrual basis. The County’s Employees’ Retirement Fund has been on the full accrual
basis since 1981 and general fixed assets have been included in audited financial statements of the County
since 1982.

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

        During 2002, the County implemented a new integrated financial information system using J D
Edwards One World Xe enterprise software. This integrated system facilitates the sharing of information
across departments and provides real-time transaction processing and improved data management and
reporting tools for accounting, contracts, budgeting, purchasing, human resources and payroll. In
conjunction with this project, the County is upgrading its technology infrastructure and expanding the
capabilities of the financial system to meet its reporting needs.

         In 2002, the County also implemented Governmental Accounting Standards Board (GASB)
Statement No. 34, “Basic Financial Statements – and Management’s Discussion and Analysis – for State
and Local Governments.” This statement, known as the “Reporting Model”, affects the way the County
and its component units prepare and present financial information. The basic financial statements consist
of both government-wide (full accrual/economic resource basis) and fund financial statements (modified
accrual/current financial resource basis). GASB 34 also required the County to provide a Management’s
Discussion and Analysis (MD&A) that presents a narrative overview and analysis of the County’s
financial performance for the fiscal year. The MD&A is included in Appendix D with the basic financial
statements and notes to the financial statements for the year ended December 31, 2007. It is
recommended the MD&A and the summaries that follow be read in conjunction with the basic financial
statements and notes in order to obtain a thorough understanding of the County’s financial condition.


                                                  A-3
2005-2009 Statement of Operations

        The following schedule summarizes the result of County operating fund activities for fiscal years
2005 through 2009, presented on a current resource and modified accrual basis of accounting. The
information regarding the operating statements for fiscal years 2005 through 2009 was derived from the
County’s audited financial statements reported in accordance with GAAP. Only the 2009 audited
financial statements are included in Appendix D of this Official Statement.

                          [Schedule of Operations Follows on Next Page]




                         [The Remainder of this Page Intentionally Left Blank]




                                                  A-4
                                     COUNTY OF ALLEGHENY, PENNSYLVANIA
                                         SCHEDULE OF OPERATIONS (1)
                                                  2005-2009
                                                   (000’s)
                                                   2005              2006            2007           2008            2009
 REVENUES:
 Taxes (Sales/Property/Alcohol)             $      296,437      $    300,495    $   314,002     $   338,212    $    333,019
 Federal, State and Local (Grants)                 298,374           311,266        333,607         303,634         300,456
 Charges for Services                               52,609            60,903         60,325          60,989          68,384
 Miscellaneous                                      14,465            14,362         15,977          17,125          15,974

 TOTAL REVENUES                                    661,885           687,026        723,911         719,960         717,833

 EXPENDITURES:

 General Government                                145,167           147,951        151,890         155,641         166,708
 Public Safety                                      67,158            70,753         74,226          77,730          78,837
 Public Works                                       25,168            26,992         29,178          28,346          29,063
 Transportation                                     23,858            15,859         24,359          27,453          27,669
 Health & Welfare                                  316,475           323,992        338,059         325,881         337,536
 Culture & Recreation                                7,755             7,986          8,663           8,870           9,498
 Education                                          21,395            21,590         21,568          21,628          22,010
 Economic Development                                3,409             4,399          6,745           6,563           6,495
 Debt Service:
       Principal                                    24,417            31,470         32,085          33,205          38,233
       Interest Charges                             23,714            26,559         26,519          28,643          24,612
       Costs of Issuance                             1,539                  -           583                -            156

 TOTAL EXPENDITURES                                660,055           677,551        713,875         713,960         740,817

 Excess (deficiency) of
  revenues over expenditures                         1,830             9,475         10,036           6,000         (22,984)

 Net operating transfers (out)/in                   (3,331)          (9,495)         (1,119)          1,282          (5,224)
 Issuance of refunding bonds                       185,575                  -       73,219                 -         29,266
 Proceeds on sale of bldg.                                                                                           11,420
 Capital lease                                                                                                        7,679
 Premium on TRAN                                          -                 -               -          314               -
 Payment to refund bond
  escrow agent                                   (183,982)                  -       (72,636)               -        (29,110)

 Net change in fund balances                              92            (20)          9,500           7,596          (8,953)

 Unreserved fund balance-
  Beginning of Year                                 17,232            17,342         17,397          26,701          33,319

 Reserves (increase) decrease                             18             75           (196)           (978)          (2,977)

 Total Unreserved/Undesignated
  fund balance                              $       17,342      $     17,397    $    26,701     $    33,319    $     21,389

 Unreserved fund balance:
  Designated                                $             -     $           -   $     6,009     $    14,237    $      1,924
  Undesignated                                      17,342            17,397         20,692           9,082          19,465

 Total unreserved fund balance
  - End of Year                             $       17,342      $     17,397    $    26,701     $    33,319    $     21,389


(1) This schedule includes the following Governmental Fund types: General, Transportation, Liquid Fuel Tax, Debt Service and
    the Internal Service Fund. The Internal Service Fund governmental fund transactions have been eliminated per GASB 34.
Source: Allegheny County Controller.


                                                               A-5
                         MANAGEMENT’S DISCUSSION AND ANALYSIS
                                 OF OPERATING FUNDS

Fiscal Year 2009 Compared to Fiscal Year 2008
Revenues

        When compared to the previous year, 2009 revenues decreased by $2.2 million to $717.8 million.
Overall, revenues from real property taxes increased $6.1 million in fiscal year 2009. The property tax
revenue increased because: (i) current tax revenue increased by $1.5 million, (ii) delinquent tax revenue
increased by $4.0 million, (iii) lien tax revenue increased by $0.3 million, (iv) interest and penalty income
increased by $0.7 million, (v) payments in lieu of taxes decreased by $0.2 million, and (vi) refunds
decreased by $0.2 million.

        Current tax collections increased due to a higher certified assessed value. Since the County
maximized its delinquent and lien tax collections by selling their 2007 tax receivables for $14.4 million;
2009’s non-current tax files have increased accordingly.

       Sales tax revenues decreased 2.9% or $1.2 million as the downswing in the economy reduced
spending.

        In 2008, the County enacted a 10% Alcoholic Beverage Tax and a $2 a day Rental Vehicle Tax.
The Alcoholic Beverage Tax was reduced to 7% for 2009 and collections were $27.4 million or $9.6
million less than 2008.

        Many factors are responsible for the net increase in Federal revenues of $1.3 million. Title IV-E
Federal funding increased $1.6 million for Child Placement and Adoption Assistance services, as
efficiencies were realized and Stimulus Funds were added to the program. Fees for maintaining Federal
prisoners decreased $0.6 million, Kane’s skilled nursing care revenue decreased $1.5 million because of
fewer patient days; however Medicare revenue increased $2.5 million. An air pollution grant ($0.7
million) was moved to a special revenue project in 2009.

        State revenues decreased $4.3 million in 2009 for the reasons detailed below.

        State revenues decreased $2.2 million due to the receipt of less gaming revenues ($12.4 million
vs. $10.2 million) to complete the reimbursement of the County’s $42.5 million public investment (G. O.
Bonds) for the construction of the Airport.

       State Act 148 revenues for CYF decreased $1.0 million in 2009, offsetting the increase in Title
IV-E Federal funding, and Transition funds decreased $1.4 million.

        Kane’s skilled nursing care revenue declined $1.2 million, offset by increased Medicare revenue
of $0.7 million.

         State miscellaneous revenue increased $2.5 million as DHS received $5.6 million for a Special
Initiative grant. State revenues at Kane were $3.1 million less in 2009 because no settlements occurred.

       State subsidies for the year decreased $1.2 million for Criminal Justice and $0.8 million for the
Crime Lab. Health Department Act 315 revenues increased $0.7 million; however State revenues for
Court Operations decreased $0.3 million.

        Charges for services increased $7.5 million, as $3 million in additional Real Estate fees were
collected because of rate increases. $1.6 million from Gaming Host fees, associated with the opening of
the Rivers Casino, were collected for the first time.



                                                    A-6
         Kane charges for services increased by $0.4 million for patients share, $1.4 million from
Commercial insurance (more use of HMO’s) and $0.8 million associated with improved MA billing or
private insurance.

        Real Estate Tax stamp commissions of 1% and 2% decreased $0.3 million as sales of property
declined. This decrease was offset by a $0.4 million increase in miscellaneous charges for services for
Kane’s Disproportionate MA Share of income.

        Fines and forfeitures revenue decreased $1.7 million as District Court fees collected were $0.4
million less and there were no miscellaneous fees ($1.3 million in 2008) available in 2009.

       Interest earnings decreased from last year by $3.2 million. During 2009, interest rates dipped
below 1% and the County’s investment balance was lower by the $45 million TRAN issued in 2008.

       Miscellaneous revenues increased $3.5 million, as rents collected were $0.9 million higher,
worker’s compensation reimbursements and other insurance claim recoveries went up $1.1 million and
escrow monies of $1.2 million were transferred to the General Fund from the Department of Criminal
Records.

         Other financing sources and special items of revenue increased $47.4 million. $29.3 million of
the increase is due to the issuance of refunding general obligation bonds in 2009, $7.7 million is to record
a capital lease in 2009, $11.4 million of the increase is from the 2009 sale of the One Smithfield Building.
Offsetting these increases were a $0.6 million decrease in transfers in, and a $0.3 decrease in premium
revenue because a TRAN was issued in 2008 but not in 2009.

Expenditures

General government expenditures increased by $11.1 million, public safety expenditures increased by
$1.1 million, public works expenditures decreased by $0.7 million, transportation expenditures increased
by $0.2 million, health and welfare expenditures increased by $11.7 million, culture and recreation
expenditures increased by $0.6 million, education expenditures increased by $0.4 million, economic
development expenditures decreased by $0.1 million and debt service principal, interest, and cost of
issuance payments increased by $1.2 million. Other financing uses in 2009 were $49.8 million, an
increase of $35.0 million from 2008.

        The increase in expenditures and other financing uses of $61.8 million, from $728.8 million in
2008 to $790.6 million in 2009, is explained below.

General government expenditures increased by $11.1 million for the following reasons:
   • Courts – Judicial support expenditures for salaries and fringe benefits increased $0.5 million and
       services rose $0.5 million for county match and telephone and internet services. Minor Judiciary
       salaries and fringe benefits also increased $0.6 million.
   • Treasurer Office expenditures increased $0.6 million for legal services, insurance, and software.
   • Sheriff Office fringe benefits rose $0.5 million as costs allocated to grants were reduced.
   • District Attorney salaries and fringe benefits increased $0.5 million.
   • Management Information System salaries and fringe benefits rose $0.5 million.
   • Department of Court Records – Administration salaries and fringe benefits increased $0.4
       million.
   • Public Defender salaries and fringe benefits rose $0.4 million.
   • Non-Departmental expenditures decreased $1.0 million as no TRAN was issued in 2009.
   • General Government expenditures of $7.6 million were incurred for a capital lease for the
       Medical Examiner’s Lab.




                                                   A-7
        Public safety expenditures rose by $1.1 million as salary and fringe benefits of the Jail increased
$1.1 million, Emergency management $0.2 million and County Police $1.4 million. These costs were
offset by savings in heating and residential services of $1.5 million.

        Public works net increase in 2009 expenditures was $0.7 million, salaries and fringe benefits for
maintenance were up $1.4 million and Engineering’s increased by $0.4 million. These increases were
lessened by increased transfers of eligible costs to the Celebration of Lights project.

        Health and welfare expenditures increased $11.7 million. Kane Regional Centers salaries and
fringe benefits rose $3.4 million. In addition, McKeesport’s occupational and physical therapy and
agency nursing costs increased $0.8 million. CYF’s health and welfare costs increased by $8.0 million.
All divisions reported additional costs because higher reimbursement rates allowed for the expansion of
existing programs.

         Culture and recreation expenditures increased $0.6 million, as the result of funding for the newly
established Park Foundation.

        Debt service payments rose $1.2 million in 2009, as principal payments increased $5.0 million,
mostly from Bond C-59A. This increase was off-set by $2.2 million in bond interest reductions and $1.8
was not needed for a TRAN as in 2008. In addition, $0.2 million was paid for cost of issuance in 2009.

        Other financing uses increased as the County refunded $29.1 million in bonds. Deficits decreased
in the Courts ($1.6 million) and Enhanced 911 ($3.2 million); and $9.9 million in Transportation Funds
were used for Port Authority Capital Fund projects.

Summary of Operations, Fiscal Years 2005 through 2009

        Sales Tax collections in a poor economic climate decreased $1.2 million to $39.2 million in 2009.
Despite decreasing 2.9%, the Sales Tax collected in 2009 was equal to the yearly average of collections
between 2005 and 2008. The County’s real property tax rate has remained at 4.69 mills since 2002.
During the last five years property tax collections have averaged $262.1 million a year; and after
excluding the 2007 receivable sale of $14.4 million, collections have not varied more than 2.7% from any
one year. Property taxes comprise 37.3% of operating revenues from 2005 through 2009.

        Federal, State and Local revenues during the five-year period have accounted for 44.1% of total
revenue. Federal revenues have decreased by an average of $21.0 million (18.3%) in 2008 and 2009
compared to the 2005 to 2007 period average. State revenues have increased an average of $7.4 million
(4.1%) in 2008 and 2009 over the previous three year period. Federal, State and Local revenues have
averaged $309.5 million for each of the past five years.

         Expenditures for 2005 remained consistent with prior years, as previous work force reductions
offset higher wage and health care costs. However, during 2006 and 2007 higher wages, fringe benefits
and debt service resulted in costs increasing by 2.7% and 5.4%, respectively. These increased costs were
offset by revenues received for decertifying beds at John J. Kane Regional Health Centers, a reduced Port
Authority subsidy, a tax receivable sale and gaming revenue. 2008 total expenditures were identical to
2007 with the newly enacted Alcoholic Tax funding the Port Authority’s $27.5 million subsidy. As
previously stated, 2009’s expenditures increased by $26.9 million (3.8%) from higher salaries and fringe
benefits, the Medical Examiner Lab’s capital lease and increased human service costs. As a result of
consistent revenues and expenditures, augmented by one-time funding and the Alcoholic Tax, the
County’s unreserved General Fund balance has averaged $19.8 million a year since 2005.




                                                   A-8
               COUNTY OF ALLEGHENY, PENNSYLVANIA
              CUMULATIVE UNRESERVED FUND BALANCES
                            2005-2009
                             (000's)

                                 2005        2006         2007         2008         2009
Governmental
Funds:
 General                    $   17,237   $   17,392   $   26,327   $   18,505   $   19,465
 Transportation                    -            -            -         12,430          -
 Liquid Fuel                       105            5          374          147          -
 Debt Service                      -            -             -         2,237        1,924
 Internal service                  -            -            -            -            -
 Unreserved
  fund balance              $   17,342   $   17,397   $   26,701   $   33,319   $   21,389

Source: Allegheny County Controller.



                    [The Remainder of this Page Intentionally Left Blank]




                                              A-9
              COUNTY OF ALLEGHENY, PENNSYLVANIA
              BUDGETED STATEMENT OF OPERATIONS
                           2009-2010


                                                        Budgeted*
                                              2009 Adopted     2010 Adopted
Revenues:
 Taxes                                         $337,649,000          $337,258,652
 Federal, State and Local (Grants)              328,040,392           318,232,379
 Charges for Services                            52,011,015            57,507,200
 Other Revenue                                   30,772,455            58,558,252
 Use of Fund Balance                             14,237,138             1,923,659
 Total Revenues                                $762,710,000          $773,480,142

Expenditures:
 General Government                            $155,879,625          $161,522,929
 Public Safety                                   82,254,781            85,314,017
 Public Works                                    29,048,565            30,144,947
 Transportation                                  30,763,260            27,668,700
 Health and Welfare                             357,298,448           357,956,976
 Culture and Recreation                           9,335,056             9,211,997
 Education                                       22,010,000            22,488,000
 Economic Development                             6,878,797             6,718,797
 Debt Service:
  Principal Retirement                           38,922,500            41,387,500
  Interest Charges                               30,318,968            31,066,279
                                               $762,710,000          $773,480,142



* Sources - 2009 Adopted Budget passed by County Council on December 2, 2008;
 2010 Adopted Budget passed by County Council on December 1, 2009.




                                       A-10
                               SOURCES OF ALLEGHENY COUNTY REVENUE

General

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

                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                      GENERAL SOURCES OF REVENUE BY PERCENTAGE
                                      2006 - 2010

                                   Actual        Audited        Audited         Audited          Budgeted
 Category                          2006           2007           2008            2009             2010

 Property Tax                       38.0%          37.8%         35.4%             36.4%              34.3%
 Sales Tax                           5.6%           5.6%          5.6%              5.5%               5.2%
 Drink & Car Rental Tax              0.0%           0.0%          6.0%              4.6%               4.1%
 State                              26.8%          29.3%         26.8%             26.3%              26.6%
 Federal                            15.6%          14.7%         12.9%             13.1%              12.2%
 Charges for Services                8.8%           8.3%          8.5%              9.5%               7.4%
 Regional Asset District             2.1%           2.0%          2.4%              2.4%               2.3%
 Interest Earnings                   0.4%           0.4%          0.5%              0.1%               0.2%
 All Other *                         2.7%           1.9%          1.9%              2.1%               7.7%
 Total County                      100.0%         100.0%        100.0%            100.0%             100.0%

 * - Includes Licenses and Permits, Fines & Forfeitures, Miscellaneous, County Sinking Fund and Prior
 Years' Financing

 Source: 2006-2009, Allegheny County Controller's Annual Financial Reports; 2010, Allegheny County Operating
 Budget


Property Taxes
         Real property taxes, the single largest source of County revenues, represents 36.4% and 34.3% of
total revenue for the 2009 and 2010 fiscal years respectively.

        Under the provisions of the Charter, County Council may levy on the assessed value of taxable
real property for general County purposes, a maximum of 25 mills and an additional five mills to support
the Community College of Allegheny County. There is no limitation on the millage levy for debt service.
The County levy for 2010, as enacted by County Council was 4.69 mills, of which 3.5806 mills were for
general County purposes and 1.1094 mills were for debt service.

Property Tax Collection Procedures
         Property tax statements are normally mailed by February 15 of each year. Taxes are due on April
1 and are considered delinquent on May 1. A two percent (2%) discount is allowed for bills paid on or
prior to March 31, while taxes paid between April 1 and April 30 are paid at full value. Taxpayers who
fail to pay by May 1 are sent a notice of delinquency and charged a five percent (5%) penalty against the
delinquent taxes, plus a one percent (1%) interest charge per month for each month the bill remains
unpaid. Property taxes are considered liened if they remain unpaid for one year beginning May 1.

                                                   A-11
                       ALLEGHENY COUNTY PROPERTY ASSESSMENTS

         The first countywide revaluation in nearly 30 years was completed in 2000 for the approximately
600,000 parcels of real property in Allegheny County. The multi-year mass revaluation project was
initiated in response to a 1997 Common Pleas Court ruling which found that the County’s property
assessment system resulted in assessments that were not uniform and, therefore, inequitable. The new
values were used to calculate the 2001 real estate tax bills. The predetermined ratio of assessed value to
market value was also set at 100% beginning in 2001.

        During 2000, the County formally changed the proposed 2001 assessed values to 100% of the
market value. Also, notices of new property values were sent to property owners followed by informal
meetings between Sabre Systems, the private assessment company that performed the 2001 countywide
reassessment, and property owners.

        In 2001, the countywide reassessment resulted in over 90,000 appeals filed by taxpayers. In 2002,
the second consecutive countywide reassessment resulted in another 90,000 appeals. Appeals from these
two years continued to be heard in 2005.

        In response to a 2002 County Council Ordinance, the Allegheny County Court of Common Pleas,
per Judge R. Stanton Wettick, issued an opinion stating the County “is permitted to implement an
assessment system under which there is a countywide reassessment every three years.” Thus, this opinion
and order recognized that Allegheny County was not legally required to perform an annual countywide
reassessment, but could instead perform reassessments on some periodic basis.

         The County’s next reassessment was scheduled for implementation in 2006. The results of the
new 2006 reassessment, which was conducted and completed in March 2005 by the County’s Office of
Assessments with the assistance of another private assessment company, Cole-Layer-Trumble, were
disputed due in part to wide disparities among the resulting property values. Due to the concerns over the
results of the tentative countywide reassessment, Article 210 of the Administrative Code was amended by
an ordinance passed by the County Council and signed by the Chief Executive in early 2005. This
ordinance limited increases in property assessment values in 2006 to a maximum increase of 4%.

        In April 2005, the Sto-Rox School District and a Franklin Park homeowner filed a lawsuit against
the County stating that the limitations enacted under this legislation violated the Uniformity Clause of the
Pennsylvania Constitution and state assessment laws by applying different tax rates to different
properties. In May 2005, the Common Pleas Court ruled in favor of the plaintiffs and declared the
County’s proposed cap to be in violation of state law.

         In response to the decision declaring the proposed caps on assessment increases to be illegal, the
County enacted new legislation establishing an assessment system similar to that used in other parts of the
Commonwealth. Specifically, the County’s new assessment legislation relied upon provisions in the
General County and Second Class County Assessment Laws and provided for the valuation of all
properties in the County by utilizing a base year. The property values for 2002, the year in which the
County last performed and implemented a countywide reassessment, were used as the base year for the
valuation of all property in Allegheny County. The 2006 property assessment values subsequently were
certified in October 2005 based on the 2002 base year values.

        Following a court challenge brought by several property owners in 2005, the Court of Common
Pleas held that the County’s use of a base year for property values was in compliance with State law;
however, the Court granted the plaintiff property owners leave to amend their suit and to challenge the
constitutionality of the use of a base year for tax assessments. Consequently, the plaintiff property
owners filed an amended complaint alleging that this base year assessment system, authorized by state
assessment laws, violated the Uniformity Clause of the Pennsylvania Constitution and the Equal

                                                   A-12
Protection Clause of the United States Constitution. The basis of the constitutional challenge to the base
year assessment system was that a base year system fails to take into account that property values are
changing at different rates, both increasing and decreasing, in different parts of the County. By failing to
take these constantly changing values into account, the plaintiffs claimed that the base year system forces
property owners to pay an unequal and disproportionate share of the tax burden. Specifically, lower
valued properties are bearing a greater amount of the tax burden than higher valued properties.

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

        The County filed a direct appeal of the Common Pleas Court’s decision declaring the base year
form of assessment facially unconstitutional to the Pennsylvania Supreme Court.

        On April 29, 2009, the Pennsylvania Supreme Court issued a decision in which it held that the
state assessment laws which allow counties to utilize a base year in valuing property for real estate
taxation purposes were not unconstitutional on their face. Nevertheless, the Supreme Court held that base
year system, as applied in Allegheny County, violated the Uniformity Clause of the Pennsylvania
Constitution because the County’s 2002 base year assessments had become stale and less uniform due to
the passage of time and the work of market forces.

         In its decision, the Pennsylvania Supreme Court observed that many counties in Pennsylvania
have not performed county assessments as frequently as Allegheny County and have relied upon base
year values that may be out of date and no longer uniform. The Supreme Court, however, refused to
establish a bright-line rule concerning how long of a period of time counties could use a base year system
for valuing property for real estate taxation purposes before the base year assessment became
unconstitutional. Instead, the Supreme Court called upon the Pennsylvania General Assembly to make
the necessary amendments to the state assessment laws so to ensure their constitutionality when applied in
various counties.

        Finally, although the Supreme Court declared that Allegheny County would have to perform a
new countywide reassessment, it remanded the case back to the Common Pleas Court for a determination
of the County’s progress in executing a countywide reassessment and to set “a realistic timeframe for its
completion.”

         On May 22, 2009, Allegheny County filed an Application for Relief with the Pennsylvania
Supreme Court seeking a stay of the Court’s remand of the case to the Common Pleas Court for a period
of at least one hundred eighty days (180) to allow the Pennsylvania General Assembly the opportunity to
consider the enactment of legislation amending the various state assessment laws to establish guidelines
on the use of the base year system and how frequently all counties must perform reassessments. In
August, 2009, the Pennsylvania Supreme Court denied the County’s application for a stay.

        Pursuant to the mandate from the Supreme Court, the Court of Common Pleas conducted a
hearing to determine a timetable for reassessment. On December 4, 2009, the Court of Common Pleas
accepted the County’s plan for reassessment. Under the plan, the County will have notices sent to
property owners during 2010 and will complete a new reassessment of Allegheny County by 2012.




                                                   A-13
                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                    CERTIFIED REAL ESTATE ASSESSED VALUATION
           (VALUES ARE NET OF ABATEMENTS AND HOMESTEAD EXEMPTIONS)

                                                    2006-2010
                                                     (000's)

                    Taxable                    Exempt                   Provisional                    All
                      Real                      Real                       Real                        Real
 Year                Estate                     Estate                   Estate (1)                   Estate

 2010              58,710,387                 15,805,651                   194,553                  74,710,591
 2009              58,194,681                 15,790,650                   196,809                  74,182,140
 2008              57,652,197                 15,397,428                   199,929                  73,249,554
 2007              57,774,542                 15,217,038                   212,661                  73,204,241
 2006              56,860,725                 14,672,873                   111,810                  71,645,408



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

Source: County of Allegheny, Department of Property Assessment, Appeals, Review and Registry.




                                                       A-14
                                                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                                     Real Property Tax Levies and Collections
                                                              Assessed Value of Taxable Property – Last Five Years (5)
                                                                                    2005-2009

                                                                                 Collected within the
                                                                                Fiscal Year of the Levy                     Total Collections to Date
                           Taxes
                        Levied for
                            the                                                                Percentage                                    Percentage
                        Fiscal Year                             Total                              of                                            of
          Fiscal         (Original                             Adjusted                         Original     Delinquent                       Adjusted
          Year             Levy)          Adjustments           Levy            Amount           Levy        Collections    Amount             Levy

          2009     $   269,375,834         (1,173,616)        268,202,218     248,684,071       92.32 %       8,117,736    256,801,807        95.75 %

          2008         266,952,614            (68,859)        266,883,755     246,869,810       92.48        11,476,886    258,346,696        96.80
A-15




          2007         267,392,280         (3,423,752)        263,968,528     244,613,823       91.48        15,376,114    259,989,937        98.49

          2006         264,165,345         (2,027,824)        262,137,521     239,866,159       90.80        14,472,294    254,338,453        97.02

          2005         262,015,256         (2,410,531)        259,604,725     231,125,664       88.21        22,992,095    254,117,759        97.89



       Note: This schedule is being prepared prospectively.
       Source: Allegheny County Controller
                             ALLEGHENY COUNTY, PENNSYLVANIA
                        TWENTY-FIVE LARGEST REAL PROPERTY TAXPAYERS
                                            2010
                                                                                                      PERCENTAGE
                                                                                                       OF TOTAL
RANK                                 OWNER                                    ASSESSMENT              ASSESSMENT
   1      BUNCHER COMPANY / BUNCHER FAMILY
             FOUNDATION                                                          230,093,474               0.362%

   2      HOLDINGS ACQUISITION CO LP                                             199,489,600               0.313%
   3      500 GRANT ST ASSOCIATES & MELLON BANK NA                               190,000,000               0.299%
   4      MARKET ASSOCIATES LIMITED PARTNERSHIP                                  185,000,000               0.291%
   5      600 GS PROP LP                                                         175,000,000               0.275%
   6      MELLON BANK, NA                                                        161,242,400               0.253%
   7      SOUTH HILLS VILLAGE ASSOCIATES                                         148,608,400               0.234%
   8      CBL MONROEVILLE PARTNER LP                                             148,000,000               0.233%
   9      HUB PROPERTIES TRUST                                                   144,789,500               0.228%
  10      PITTSBURGH MILLS LIMITED PARTNERSHIP                                   137,921,500               0.217%
  11      ROBINSON MALL JCP ASSOCIATES LTD / ROBINSON
                                                                                 127,485,700               0.200%
              PERIPHERAL DEVELOPERS
  12      PNC BANK, NA                                                           125,176,820               0.197%
  13      OXFORD DEVELOPMENT COMPANY                                             122,719,600               0.193%
  14      GRANT LIBERTY DEV GROUP ASSOCIATES &
             LIBERTY                                                             110,000,000               0.173%

  15      PENN ROSS JOINT VENTURE                                                89,658,700                0.141%
  16      USX CORPORATION                                                        88,993,770                0.140%
  17      DDRTC WATERFRONT MARKETPLACE LLC / DDRTC
             WATERFRONT STACKS LLC / DDRTC                                       85,574,950                0.134%
             WATERFRONT TOWN CENTER LLC
  18      HORIZON DSG ASSOCIATES LP                                              80,586,100                0.127%
  19      TECH ONE ASSOCIATES                                                    74,344,871                0.117%
  20      CENTURY III ASSOCIATES                                                 74,049,300                0.116%
  21      NORTH SHORE DEVELOPERS LP                                              64,297,550                0.101%
  22      PARK ASSOCIATES                                                        52,243,300                0.082%
  23      LIBERTY AVENUE HOLDINGS LLC                                            49,210,000                0.077%
  24      BAYER CORPORATION                                                      43,659,000                0.069%
  25      FEDEX GROUND PACKAGE SYSTEM INC                                        43,001,400                0.068%
          TOTAL                                                                 2,951,145,935              4.637%

Source:   Allegheny County Division of Property Assessment, Appeals & Review; certified values as of January 14, 2010.




                                                        A-16
Sales Taxes

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

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

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

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

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

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

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

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

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


                                                  A-17
         The following table shows, on a cash basis, the County’s portion of the gross 1% Sales Tax
receipts with the amounts intercepted to pay the debt service on the Development Bonds and the resulting
net 1% Sales Tax receipts for the period 2005 through 2009 (in millions of dollars).

                                     2005           2006           2007           2008           2009
   Gross Sales Tax Receipts          $37.6          $38.8          $39.9          $40.4          $39.4
   Intercepted Sales Tax Receipts      4.9            4.8            4.8            4.8            4.8
   Net Sales Tax Receipts            $32.7          $34.0          $35.1          $35.6          $34.6


   Source: Allegheny County, Department of Budget and Finance.


Federal and State Grants

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

Charges for Services

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

         General Fund charges make up the second largest component of charges for services revenues.
Recording and filing fees from the County’s fee offices headed by independently elected officials
generate the most revenue in the General Fund. The County generates fees through rental of groves,
shelters, houses and equipment in its 12 regional parks. Also, parks generate fees by charging for the use
of swimming pools, golf courses, tennis courts, skating rinks, skiing and other recreational activities.
Public safety generates revenue through charges for special police and sheriff services. Health services
generate revenue through plumbing inspections, clinic fees and laboratory charges. Commissions are
generated from the collection of certain state taxes and fees, such as the State Realty Transfer Tax.
Revenues are brought into the operating fund from special revenue funds by Indirect Cost Recovery,
Child Enforcement Support and service reimbursement contracts. Patient income results from various
assets signed over to the John J. Kane Regional Health Centers. There are also many minor charges for
service revenues like "Sale of Maps and Publications". The smallest component of services revenues is
from the Internal Service Fund, which is comprised of the central service functions and the risk
management accounts. Central service functions are County functions that pay for themselves through
billings to user departments. Risk management accounts are the County’s self-insurance programs, the
largest component being health insurance. (Internal Service Fund revenues and expense transactions are
eliminated for reporting purposes per GASB 34).




                                                  A-18
Governmental Fund Capital Expenditures

         The County’s principal capital expenditures relate to the reconstruction, rehabilitation and
expansion of the County’s infrastructure and physical assets, including County mass transit facilities,
sewers, streets, bridges and tunnels, and capital investments that will improve productivity in County
operations. Capital projects are funded through grants and the issuance of long-term general obligation
debt. The following table compares the County’s long-term debt service to total operating expenditures
for the years 2005 to 2009:


                           COUNTY OF ALLEGHENY, PENNSYLVANIA
                          COMPARISON OF LONG-TERM DEBT SERVICE
                            TO TOTAL OPERATING EXPENDITURES
                                         2005-2009

                    Long-Term Debt                 Total Operating             % of Total
   Year                Service(1)                  Expenditures(2)            Expenditures
   2009        $      63,000,366            $       761,553,680                  8.27
   2008               60,058,232                    728,824,083                  8.24
   2007               58,912,267                    720,065,757                  8.18
   2006               57,813,870                    688,474,013                  8.40
   2005               49,478,243                    669,852,504                  7.39



          (1) Includes principal and interest payments on long-term debt of the County. Excludes legally and
              economically defeased debt.
          (2) Includes operating transfers to other funds.

Source: Allegheny County Controller.




                                                       A-19
                       EMPLOYEES AND LABOR RELATIONS/BENEFITS

Employees

        As of October 23, 2010 the County employed 5,361 full-time “operating budget funded”
employees, of which 4,260 were covered by collective bargaining agreements. For comparison, the
number of full-time operating budget funded employees as of December 31, 1995 was 7,226 or 1,865
more than at the present level. This twenty-six percent (26%) reduction in the workforce has been
primarily the end result of four voluntary separation programs coupled with several rounds of layoffs
interspersed since 1996. The most recent voluntary separation plan and layoff action occurred in
December, 2007 in which approximately 200 persons left County employment.

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

Labor Relations

         The 4,260 employees funded in the operating budget that are represented by 20 bargaining units
include such occupations as laborers, clerks, nurses, health workers, building tradesmen, police, deputy
sheriffs, attorneys and correctional officers. Settled contracts are in place through 2012 with most
bargaining units; the most noted exceptions are the county police unit and correctional officers where an
arbitration award is expected to be in line with existing contracts and is expected to be extended through
2012. The settlements include rate increases that average approximately 2.5% to 3.50% as well as
employee contributions to healthcare that equal 1% in 2009, 1.5% in 2010 increasing to 2% in 2011 of the
employees’ base wages.

                                            PENSION PLAN

        The Allegheny County Retirement System (the "Retirement System") is under the direction of a
seven-member Retirement Board, consisting of the Chief Executive, an appointed member by the Chief
Executive, an appointed member by County Council, the Controller, the Treasurer and two members
selected by the County’s employees and retirees. The Retirement Board’s Executive Director and staff
maintain records on all employees, contributions, disbursements and investments. As of December 31,
2008, the management of the retirement fund was handled by 29 investment managers utilizing a
balanced mix of management styles, who follow the investment guidelines established by the Retirement
Board.

        The Retirement System’s present actuaries, Cowden & Associates, in their most recent report to
the Retirement Board, as of January 1, 2009, indicated that the actuarial liabilities exceeded the actuarial
(smoothed) value of assets by $484.9 million which translates to a funding percentage of 54.6%. Also,
the accrued benefit liability exceeded the market value of assets by $289.5 million which translates to an
accrued benefit funded ratio of 66.8%. Total cash and investments were $581.7 million and $651.9
million as of January 1, 2009 and January 1, 2010, respectively, representing an increase of 12%.

        In addition, a comparison of total liabilities to total assets, which includes the market value of
existing assets and the present value of future contributions, indicates a ratio of 69.0% based on $1,253.4
million total liabilities and $864.3 million total assets as of January 1, 2009.

        Significant actuarial assumptions include a return on investments of eight percent (8%) and
projected salary increases of 3.5% to 6%. Cost of living increases traditionally granted in the past were
not granted in 2008.


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

        The 6% employee contribution rate has been in effect since January 2003.

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

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

         Under terms of the Retirement System, employees contribute 6.0% of covered compensation.
Employee contributions are matched equally by the County, as prescribed by the Second Class County
Code of the Commonwealth. Employees with at least 24 months of service who terminate prior to
satisfying the minimum service requirements for a retirement benefit are entitled to refunds of their
contributions plus interest thereon at approximately 4.5% per annum (3% per annum on contributions
made prior to March, 1981). Employees with less than 24 months of service who terminate prior to
satisfying the minimum service requirement for a retirement benefit are entitled to refunds of their
contributions with no interest.

Other Post-Employment Benefits

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

        The County annually appropriates funds to meet its obligation to pay such benefits on a “pay-as-
you-go” basis. The County has not established any fund or irrevocable trust for the accumulation of
assets with which to pay such benefits in future years. Such expenditures are currently funded through
the County’s General Fund. In fiscal year 2009, net County costs for such benefits totaled approximately
$1,700,000 with retiree contributions totaling $397,000.

        On June 21, 2004, the Governmental Accounting Standards Board (GASB) released its Statement
No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions (“Statement No. 45”). Statement No. 45 establishes standards for the measurement, recognition
and display in the financial reports of state and local governments of obligations to pay OPEBs when
provided separately from a pension plan expense or expenditures and related liabilities. Under Statement
No. 45, governments will be required to: (i) measure the costs of benefits, and recognize other post-
employment benefits expenses, on the accrual basis of accounting in periods that approximate employees’

                                                    A-21
years of service; (ii) provide information about the actuarial liabilities of promised benefits associated
with past services and whether, or to what extent, those benefits have been funded; and (iii) provide
information useful in assessing potential demands on the employer’s future cash flows. Statement No. 45
reporting requirements were effective for the County in fiscal year 2007.

        The County retained Willis of Massachusetts, Inc., (“Willis”), an Other Post Employment
Benefits (“OPEB”) consulting firm, to provide actuarial services to the County for GASB Statement No.
45 disclosure. Willis’ actuarial valuation of the County’s OPEB obligations as of January 1, 2009
enabled the County to determine the following valuations in accordance with Statement No. 45:

         1. Estimated actuarial accrued liability for all beneficiaries (“AAL”) as of January 1, 2009 -
$96,617,000.
         2. The County’s 2009 OPEB cost, the percentage of annual OPEB cost contributed and the net
OPEB obligation were as follows: Annual OPEB Cost (“AOC”) - $7,661,821, Percentage of AOC
Contributed 22.4% and the Net OPEB Obligation is $12,892,087. The AOC for the current year was
computed using the following actuarial assumptions: (1) the actuarial cost method projected unit credit;
(2) amortization method is level dollar amortization; (3) amortization period is 30 years; (4) a discount
rate of 4% compounded annually; (4) the mortality RP-2000 table, with projections for future
improvement through 2007 by scale AA for active and mortality rates for disabled, and (5) health care
cost trend rates of 9%, grading to 5% in 5 years.

        The County has already taken several steps to manage its OPEB obligations over time. These
include, but are not limited to:

        Maximum employer contribution caps.

        Consideration is being given to raising the employee contribution.




                                                  A-22
                                   RETIREMENT SYSTEM OF
                           COUNTY OF ALLEGHENY, PENNSYLVANIA
                       HISTORY OF CONTRIBUTIONS & BENEFIT PAYMENTS
                                         2005-2009


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

             2009              $19,501,312              $19,256,793        $38,758,105        $64,343,528
             2008               18,671,324               18,577,232         37,248,556         62,373,702
             2007               18,803,004               18,415,555         37,218,559         59,019,697
             2006               17,988,776               17,610,617         35,599,393         56,674,506
             2005               16,485,704               16,549,094         33,034,798         55,898,090

Source: Allegheny County Retirement Board.




                                   RETIREMENT SYSTEM OF
                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                           FIVE-YEAR SUMMARY OF LEADING INDICATORS
                                           2005 - 20091

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

      2009             12.0%                   7.40%            54.6%             66.8%             69.0%
      2008             12.0                    8.40             81.5              92.2              93.0
      2007             12.0                    8.69             82.8              93.6              93.1
      2006             12.0                    8.81             81.9              94.9              93.2
      2005             12.0                    8.70             84.9              95.8              94.1




1
 Defined as benefits plus expenses as a percentage of compensation.
Source: Retirement System 30th Annual Actuarial Report – Valuation Date of January 1, 2009.

                                                        A-23
                           COUNTY OF ALLEGHENY, PENNSYLVANIA
                             STATEMENT OF BORROWING POWER
                                     November 30, 2010
                                Computation of Legal Debt Limit




                Total Revenues - 2007                  $      1,104,544,524
                Total Revenues - 2008                         1,141,500,357
                Total Revenues - 2009                         1,072,366,627

                                   Total               $      3,318,411,508


                              Average                  $      1,106,137,169



       Total revenues 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 federal and state programs for special
purposes. These special recurring revenues are not included in the operating budget.


           MULTIPLES TO DETERMINE GROSS BORROWING CAPACITY
                            November 30, 2010



          Nonelectoral Debt: 300%                  $       3,318,411,508


          Nonelectoral Debt Plus
          Lease Rental Debt: 400%                  $       4,424,548,676




Source: Allegheny County Controller.




                                            A-24
                     COUNTY OF ALLEGHENY, PENNSYLVANIA
                           STATEMENT OF INDEBTEDNESS (1)
                                 November 30, 2010



        Gross Debt:
         Bonds Issued and Outstanding:
           Nonelectoral                                              $   621,870,611

        Gross Lease Rental Debt:                                          14,327,500

        Credits:Self-liquidating lease rental debt                       (2,750,000)

        Total Net Debt                                               $   633,448,111



        (1) Excludes this issue.
        Source: Allegheny County Controller.



                     COUNTY OF ALLEGHENY, PENNSYLVANIA
                          AVAILABLE DEBT CAPACITY
                               November 30, 2010

                                                                              Nonelectoral
                                                     Nonelectoral               Debt Plus
                                                        Debt                Lease Rental Debt

Legal Debt Limit                           $          3,318,411,508 $             4,424,548,676

Less: Total Net Debt
       Applicable to Debt Limit                        621,870,611                     633,448,111

          Legal Debt Margin                $          2,696,540,897 $             3,791,100,565



Source: Allegheny County Controller.




                                               A-25
                     DEMOGRAPHIC AND ECONOMIC INFORMATION

                                           INTRODUCTION

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

         The County is the location of five Fortune 500 corporate headquarters. The County’s 2009
Fortune 500 companies include: U.S. Steel (105), PPG Industries (161), PNC Financial Services Group
(278), H.J. Heinz (269), Wesco International, Inc. (406), and Allegheny Technologies (448). The County
has experienced substantial growth in areas such as technology, tourism and health care. The County is
also a strong supporter of its manufacturing industries and has traditionally been one of the major
industrial centers of the world with its access to major fields of coal and shipping access to 8,000 miles of
navigable rivers. The Port of Pittsburgh is the second largest inland port in the nation. There is annual
benefit to the region of over 800 million dollars for the shipping and receiving of 38 million tons of cargo.

         The County has undergone an economic transformation spanning more than three decades with a
shift from the manufacturing industry to the service and trade industries. Specifically, the new focus
industries have been high technology, health care, education and finance. This shift is attributed to the
continuing diversification of the employment base.

         According to the Pittsburgh Regional Alliance, Pittsburgh is the third largest advanced
technology research and development center in the country. The Pittsburgh Technology Council has
identified information technology, biomedical technology, environmental technology, and advanced
manufacturing as the region’s primary high-tech industries.

         Pittsburgh is one of the major banking centers in the nation. The PNC Financial Services Group
has its headquarters in Allegheny County. Pittsburgh is also a branch office for the Cleveland District of
the Federal Reserve System.

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

         Several initiatives have been undertaken to link private industry with the advance technology
research activities of the local universities. Carnegie Mellon University (“CMU”) has one of the top five
ranking computer science departments in the country and is a leader in applied research. The Software
Engineering Institute, a federally funded research and development center, has its headquarters in
Pittsburgh and is operated by CMU. Additionally, CMU operates the Robotics Institute, which is one of
the largest facilities in the world for robotics research. The national Robotics Engineering Consortium,
affiliated with the Institute, carries the mandate to commercialize robotics. Its tasks include the
application of robotics technology in agriculture, mining, transportation, and sea and space ventures.

        The Pittsburgh Supercomputing Center, a joint venture among CMU, the University of
Pittsburgh, and Westinghouse Electric Company, has provided state-of-the-art computing technology and
services in support of computational science and engineering research. This was one of five centers in the
country that spawned the essential infrastructure for the Internet.

                                                   A-26
         The University of Pittsburgh’s Biotechnological and Bioengineering Center located in the
Pittsburgh Technology Center, is a technology and research and development park, with the development
and application of advanced technology and technology transfer as primary objectives. Also located in
the Pittsburgh Technology Center are CMU’s Research Institute and Aristech Chemical Research Center.
Once a steel mill site along the Monongahela River, the Pittsburgh Technology Center represents the
changing landscape of Allegheny County.

        The Port Authority of Allegheny County (the “Port Authority”) serves the metropolitan area by
operating 861 buses, 83 light rail vehicles, 48 mini-buses and the Monongahela and Duquesne inclines.
The Port Authority is the largest operator of mass transit services in Western Pennsylvania and is the
among the nation’s largest public transportation system in the country. The Port Authority’s 2,900
employees serve approximately 70 million riders annually.

        Pittsburgh International Airport (“PIA”), which offers more than 160 flights per day, is
recognized for its state-of-the-art terminals and an Airmall for the over 8.7 million travelers that pass
through PIA each year.

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


       The County’s population trends, along with those of the City of Pittsburgh and the balance of the
Metropolitan Statistical Area (“MSA”) (Beaver, Butler, Fayette, Washington and Westmoreland
Counties) and the Pittsburgh MSA from 1980 to 2000 are shown in the following table:

                                                                                          1990-2000
                                       1980              1990               2000          % Change
Allegheny County (except               1,026,147           996,570           947,103       (5.0%)
   City of Pittsburgh)
City of Pittsburgh                       423,938            369,879          334,563        (9.5%)
Total Allegheny County                 1,450,085          1,336,449        1,281,666        (4.1%)
Balance of MSA                         1,121,138          1,058,362        1,077,029          1.7%
Total MSA                              2,571,223          2,424,811        2,358,695        (2.7%)

Source: U.S. Census.




                                                 A-27
                   LABOR FORCE STATISTICS – ANNUAL AVERAGES
                                   2005 –2009


                                                   2005       2006       2007      2008     2009

Allegheny County Civilian Labor Force(1)           627.7      626.6      629.1     642.5    640.8
Allegheny County Employment(1)                     596.5      598.8      603.3     611.3    596.7
Allegheny County Unemployment Rate                 5.0%       4.4%       4.1%      4.9%     6.9%
MSA* Unemployment Rate                             5.2%       4.7%       4.3%      5.1%     7.4%
Pennsylvania Unemployment Rate                     5.0%       4.5%       4.4%      5.4%     8.1%
United States Unemployment Rate                    5.1%       4.6%       4.6%      5.8%     9.3%

(1) In thousands

*Beginning in 1994, the Pittsburgh PMSA changed designations to become the Pittsburgh MSA which
includes Beaver and Butler Counties.
Source: Pennsylvania Department of Labor and Industry; Bureau of Research and Statistics.

                                         EMPLOYMENT

      In 2009, non-manufacturing industries accounted for approximately 92.1% of the Pittsburgh
MSA employment base. The major employment sectors are Services, Trade, and Government.
Manufacturing presently represents 7.9% of the MSA’s employment base.

Source: Pennsylvania Department of Labor and Industry; Bureau of Research and Statistics.




                                                A-28
                                  COUNTY OF ALLEGHENY
                                    LABOR FORCE DATA

                                  1989 – 2009 Annual Averages

                       Civilian                                                         Rate of
       Year            Labor Force(1)      Employment(1)      Unemployment(1)        Unemployment

      1989             631.0                   604.0             27.0                  4.3%
      1990             643.4                   615.3             28.1                  4.4%
      1991             646.2                   611.6             34.6                  5.4%
      1992             656.0                   613.7             42.3                  6.5%
      1993             657.4                   614.8             42.7                  6.5%
      1994             648.1                   609.4             38.7                  6.0%
      1995             639.5                   604.4             35.2                  5.5%
      1996             642.2                   610.8             31.4                  4.9%
      1997             646.8                   617.1             29.8                  4.6%
      1998             640.0                   611.9             28.2                  4.4%
      1999             636.8                   609.8             27.0                  4.2%
      2000             635.9                   610.0             25.9                  4.1%
      2001             643.4                   615.3             28.0                  4.4%
      2002             644.0                   609.6             34.5                  5.4%
      2003             635.5                   600.2             35.3                  5.6%
      2004             632.2                   598.6             33.6                  5.3%
      2005             627.7                   596.5             31.2                  5.0%
      2006             626.6                   598.8             27.7                  4.4%
      2007             629.1                   603.3             25.8                  4.1%
      2008             642.5                   611.3             31.2                  4.9%
      2009             640.8                   596.7             44.1                  6.9%
_________________
(1)
  In thousands
Source: Pennsylvania Department of Labor and Industry; Bureau of Research and Statistics.




                                                A-29
                   TEN LARGEST PITTSBURGH-AREA EMPLOYERS

                                                               Number of
           Rank                    Name of Business            Employees

             1       University of Pittsburgh Medical Center    37,000
             2       United States Government                   18,660
             3       Commonwealth of Pennsylvania               13,661
             4       West Penn Allegheny Health System          11,432
             5       University of Pittsburgh                   11,261
             6       Wal-Mart Stores Inc.                       10,030
             7       PNC Financial Services Group Inc.           9,150
             7       Giant Eagle Inc.                            8,347
             8       Allegheny County                            7,194
             10      The Bank of New York Mellon                 6,668

Source: Pittsburgh Business Times, “2010 Book of Lists”.




                                               A-30
                EFFECTIVE BUYING INCOME AND HOUSEHOLD INCOME

         The median household effective buying income for the Metropolitan area (“MA”) in 2009 was
$38,411 which is 94.28% of the Commonwealth median household effective buying income. Effective
Buying Income (EBI) is defined as all personal income less personal taxes, non tax payments (fines, fees,
and penalties) and contributions to social insurance. EBI is also commonly referred to as disposable or
after tax income.


                       County and Metro Effective Buying Income – 2009

                               Percent of Households by EBI Group

                               % of Hslds: by EBI Group
                                      Median
                        2009 EBI     Household $20,000 to               $35,000 to      $50,000
                          ($000)      EBI in $     $34,999               49,999         and over

Allegheny Co.           $27,041,190      $38,942          21.6%         18.6%           36.2%

Beaver Co.               3,148,630       37,988           23.3          20.3            33.6

Butler Co.               3,300,977       44,216           19.5          19.5            42.7

Fayette Co.              2,091,572       27,888           25.9          17.1            21.7

Washington Co.           4,219,462       39,978           21.7          19.4            36.9

Westmoreland Co.         7,234,940       38,729           23.1          19.7            35.1

Total Pittsburgh MA     48,784,960       38,411           22.2          19.0            35.2

Pennsylvania            258,417,960      40,742           21.1          19.4            38.0


Source: Sales and Marketing Management, “Survey of Buying Power.”




                                                   A-31
                        COUNTY OF ALLEGHENY, PENNSYLVANIA
                       COUNTY AND METRO MEDIAN HOUSEHOLD
                         EFFECTIVE BUYING INCOME 2005-2009

                                   2005             2006      2007      2008      2009

Allegheny County
(including City of Pittsburgh)     $35,704          $36,642   $37,220   $37,605   $38,942

City of Pittsburgh                  27,462          28,406    29,095    29,255    29,751

Beaver County                       35,106          36,198    36,331    36,643    37,988

Butler County                       39,683          40,403    41,400    43,111    44,216

Fayette County                      27,354          28,487    28,904    28,513    27,888

Washington County                   35,748          36,778    37,866    39,450    39,978

Westmoreland County                 35,241          36,217    37,211    38,153    38,729

Total MSA                           35,092          36,065    36,714    37,289    38,411

Pennsylvania                        37,456          38,541    39,263    39,854    40,742

Source: Sales and Marketing Management, “Survey of Buying Power”




                                             A-32
                               TOTAL RETAIL SALES – MSA
                                      2007 - 2009

                                 2007                       2008                      2009

                        Total Retail    Percent   Total Retail     Percent   Total Retail    Percent
                        Sales ($000)    of MSA    Sales ($000)     of MSA    Sales ($000)    of MSA
    Allegheny County      19,833,566     55.7%       18,971,934      54.5%     18,394,979     56.6%

    Armstrong County         581,121      1.6%         555,684        1.6%        550,676      1.7%

       Beaver County       1,932,557      5.4%        2,155,898       6.2%      1,729,788      5.3%

        Butler County      3,247,330      9.1%        3,338,863       9.6%      2,910,285      9.0%

       Fayette County      1,786,764      5.0%        1,780,175       5.1%      1,587,418      4.9%

  Washington County        2,971,101      8.3%        2,830,165       8.1%      2,812,011      8.7%

Westmoreland County        5,276,277     14.8%        5,163,366      14.8%      4,487,903     13.8%

          Total MSA       35,628,716    100.0%       34,796,085     100.0%     32,473,060    100.0%
         Pennsylvania    195,558,004               197,694,871                180,948,327


Source: Sales and Marketing Management, “Survey of Buying Power.”




                                              A-33
[THIS PAGE INTENTIONALLY LEFT BLANK]
        APPENDIX B

Form of Opinion of Note Counsel
[THIS PAGE INTENTIONALLY LEFT BLANK]
                                     $50,000,000
                        COUNTY OF ALLEGHENY, PENNSYLVANIA
                  TAX AND REVENUE ANTICIPATION NOTES, SERIES OF 2011

                                       NOTE COUNSEL OPINION
January 4, 2011

       To and for the Attention of the Registered Owner(s)
       Of the Described Notes:

       We have served as Note Counsel to County of Allegheny, Pennsylvania (the "Local Government
Unit") and do hereby undertake to advise you in connection with the issuance, sale and delivery of its
$50,000,000 aggregate principal amount, Tax and Revenue Anticipation Notes, Series of 2011 (the
"Notes"), issued in fully registered, book entry form, in the denomination of $100,000 and integral
multiples thereof, dated and bearing interest (payable at maturity) from the date hereof, maturing on April
5, 2011 and not subject to early redemption.

        In that capacity, we have examined the Constitution of the Commonwealth of Pennsylvania, the
Second Class County Code, Act of July 28, 1953 (P.L. 723, No. 230), 16 P.S. §5201, et. seq., as amended,
together with the Home Rule Charter of Allegheny County (together, the "County Code"); the Local
Government Unit Debt Act, as codified by the Act of December 19, 1996 (P.L. 1158, No. 177), (the "Debt
Act"); the formal action of the Governing Body of the Local Government Unit authorizing the issuance of
the Notes (the "Note Resolution"); the corresponding Filing Receipt from the Department of Community
and Economic Development; the Internal Revenue Code of 1986, as amended (the "Tax Code"); and such
other certificates, proceedings and law as we deemed necessary in order to render this opinion. Unless
separately noted, we have not reviewed or independently verified factual certifications made to us by the
Local Government Unit, its officers and agents during the course of our engagement.

      Both principal of and interest on the Notes are payable at US Bank, N.A., Pittsburgh,
Pennsylvania.

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

        1.     The Notes are valid and binding obligations of the Local Government Unit, secured by the
pledge of, a security interest in, and, assuming the proper filing of financing statements, a lien and charge
on, the taxes and revenues of the Local Government Unit to be received during the period when the Notes
are outstanding.

        2.     The Note Resolution authorizing the Note was duly and properly enacted and is in full
force and effect; the Notes conform, in all substantial respects, to the provisions of the Note Resolution.

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

      4.   The Notes, having all the qualities and incidents of securities under Article 8 of the
Uniform Commercial Code, are negotiable instruments.

                                                    B-1
       5.      Assuming continuing compliance by the Local Government Unit with certain covenants
designed to meet the requirements of the Tax Code, under the laws, regulations, rulings and judicial
decisions in effect as of the date hereof, interest on the Notes is excluded from gross income for Federal
income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax
imposed on individuals and on corporations.

       6.     The Notes, and interest income therefrom, are free from taxation for
purposes of personal income, corporate net income and personal property taxes within the Commonwealth
of Pennsylvania.

                                                    Very truly yours,


                                            R. Darryl Ponton & Associates




                                                   B-2
                   APPENDIX C

County of Allegheny Audited Financial Statements for
          Year Ended December 31, 2009
[THIS PAGE INTENTIONALLY LEFT BLANK]
2009 COUNTY OF ALLEGHENY
       PENNSYLVANIA
 Comprehensive Annual Financial Report


                    For the Fiscal Year Ended
                          December 31, 2009




PREPARED BY MARK PATRICK FLAHERTY, CONTROLLER
                        COUNTY OF ALLEGHENY, PENNSYLVANIA
                        Comprehensive Annual Financial Report
                           Year Ended December 31, 2009


                                       TABLE OF CONTENTS


                                   INTRODUCTORY SECTION

Controller's Letter of Transmittal... .................................................................... 1
GFOA Certificate of Achievement .......................................................................15
Organizational Chart ......................................................................................... 17
Officials of Allegheny County ............................................................................. 19


                                       FINANCIAL SECTION

Independent Auditor’s Report............................................................................ 23
Management’s Discussion and Analysis. ............................................................. 27

Basic Financial Statements:

    Government-wide Financial Statements
       Statement of Net Assets. ......................................................................... 51
       Statement of Activities. ...........................................................................54
    Governmental Fund Financial Statements
       Balance Sheet ......................................................................................... 56
       Reconciliation of Governmental Funds - Balance Sheet
            to the Statement of Net Assets .......................................................... 61
       Statement of Revenues, Expenditures and Changes in
           Fund Balance ..................................................................................... 62
       Reconciliation of Statement of Revenues,
           Expenditures and Changes in Fund Balance of
           Governmental Funds to the Statement of Activities .............................. 66
    Proprietary Fund Financial Statements
       Statement of Net Assets .......................................................................... 67
       Statement of Revenues, Expenses and Changes in
           Fund Net Assets................................................................................. 68
       Statement of Cash Flows .........................................................................69




                                                       i
                                         TABLE OF CONTENTS (continued)



             Fiduciary Fund Financial Statements
                Statement of Fiduciary Net Assets ........................................................... 70
                Statement of Changes in Fiduciary Net Assets .......................................... 71
             Component Unit Financial Statements
                Statement of Net Assets ......................................................................... 72
                Statement of Activities ............................................................................ 78

         Notes to Basic Financial Statements:

Notes

 (1) Summary of Significant Accounting Policies ........................................................... 81
 (2) Legal Compliance ................................................................................................. 110
 (3) Cash and Investments .......................................................................................... 110
 (4) Property and Sales Tax Revenue and Receivables .................................................. 126
 (5) Capital Assets ...................................................................................................... 130
 (6) Risk Management ................................................................................................ 137
 (7) Short-Term Debt ..……………………………………………………………………………………………142
 (8) Long-Term Debt .................................................................................................. 143
 (9) Interfund Receivables, Payables and Transfers ...................................................... 166
 (10) Retirement Benefits ............................................................................................ 168
        A. Plan Description .......................................................................................... 168
        B. Funding Policy, Annual Pension Cost and Net Pension Obligation, Annual
             Required Contribution and Schedule of Funding. ........................................ 169
        C. Voluntary Separation Program……………………………………………………………………170
(11) Postemployment Benefits Other Than Pension Benefits……………………………………… 177
(12) Contingencies ..................................................................................................... 185
(13) Related Party Transactions (see Note 1) ............................................................... 189
(14) Derivative Financial Instruments .......................................................................... 190
(15) Subsequent Event ............................................................................................... 195




                                                                  ii
                                        TABLE OF CONTENTS (continued)



Required Supplementary Information (Unaudited)

Budgetary Comparison Schedule - General Fund ................................................. 199


Other Supplementary Information:

         Combining Other Governmental Funds Financial Statements:

           Combining Balance Sheet - Other Governmental Funds .................................... 207
           Combining Statement of Revenues, Expenditures and
            Changes in Fund Balances - Other Governmental Funds..................................208

         General Fund:

A 1 Balance Sheet ...................................................................................................... 211
A 2 Schedule of Revenues, Expenditures and
      Changes in Fund Balance - Budget and Actual .................................................... 213
A 3 Schedule of Expenditures - Budget and Actual ....................................................... 216

         Special Revenue Funds:

B 1 Combining Balance Sheet ..................................................................................... 245
B 2 Combining Statement of Revenues, Expenditures and
      Changes in Fund Balances ................................................................................ 247
B 3 Schedule of Revenues, Expenditures and Changes in
      Fund Balance - Budget and Actual - Transportation Fund....................................248
B 4 Schedule of Revenues, Expenditures and Changes in
      Fund Balance - Budget and Actual - Liquid Fuel Tax Fund ................................... 249
B 5 Schedule of Resources and Uses of Federal and State Grant Programs -
      County Grants Fund ........................................................................................ 250
B 6 Schedule of Resources and Uses of Federal and State Grant Programs -
      Human Service Grants Fund .............................................................................. 252




                                                                iii
                                       TABLE OF CONTENTS (continued)



           Debt Service Fund:

C 1 Balance Sheet ..................................................................................................... 257
C 2 Schedule of Revenues, Expenditures and Changes in
      Fund Balance - Budget and Actual .................................................................... 258

           Capital Projects Fund:

D 1 Balance Sheet ..................................................................................................... 261
D 2 Statement of Revenues, Expenditures and Changes
      in Fund Balance. .............................................................................................. 262

           Internal Service Fund:

E 1 Balance Sheet ...................................................................................................... 265
E 2 Statement of Revenues, Expenses and Changes in
       Fund Net Assets............................................................................................... 266
E 3 Statement of Cash Flows ...................................................................................... 267


           Trust and Agency Funds:

F   1   Statement of Net Assets - Pension Trust Fund ....................................................... 271
F   2   Statement of Changes in Plan Net Assets - Pension Trust Fund ............................... 272
F   3   Statement of Assets and Liabilities - Combined Agency Fund ................................. 273
F   4   Statement of Changes in Assets and Liabilities -
           All Agency Funds - By Level of Fiduciary Responsibility ....................................... 274




                                                              iv
                                    TABLE OF CONTENTS (continued)


         Capital Assets Used in the Operation of Governmental Funds:

G 1 Schedule of Capital Assets by Function and Activity ............................................... 287
G 2 Schedule of Changes in Capital Assets by Function and Activity.............................. 289
G 3 Schedule of Capital Assets by Source .................................................................... 290

         Budgetary Comparison:

H     Budgetary Comparison Schedule for Operating Budget........................................... 292

         Nonmajor Component Units:

I 1 Combining Statement of Net Assets..................................................................... 299
I 2 Combining Statement of Activities........................................................................ 300



         Supporting Schedules for Long-Term Debt:

J 1 Schedule of Long-Term Debt................................................................................. 304
J 2 Debt Issued and Retired ....................................................................................... 309
J 3 Statement of Indebtedness, Borrowing Power and Legal Debt Margin...................... 310



                                            STATISTICAL SECTION

Revenue and Expenditure Overview............................................................................ 314

Tables

I        Net Assets by Component - Last Eight Years.......................................................327
II       Changes in Net Assets - Last Eight Years............................................................328
III      Fund Balances, Governmental Funds - Last Ten Years........................................ 330




                                                            v
                                      TABLE OF CONTENTS (continued)



IV    Changes in Fund Balances, Governmental Funds - Last Eight Years .................... 332
V     Program Revenues by Function/Program - Last Eight Years ............................... 334
VI    Tax Revenues by Source, Governmental Funds - Last Ten Years ........................ 335
VII   Property Tax Levies and Collections ................................................................. 336
VIII  Real Property Tax Levies and Collections Assessed Value of
          Taxable Property – 2000-2003 .................................................................... 337
IX    Principal Taxpayers ......................................................................................... 338
X     Certified Estimated Assessed Valuation, Assessed Value and
          Direct Tax Rate of Taxable Property - Last Ten Years ................................... 339
XI    Property Tax Rates - Direct and Overlapping Governments -
           Last Ten Years .......................................................................................... 340
XII   Ratios of General Obligation Bonds Outstanding and Legal Debt
           Margin - Last Ten Years ............................................................................. 360
XIII Computation of Direct and Overlapping Debt .................................................... 362
XIV   Demographic and Economic Statistics - Last Ten Years...................................... 364
XV    Principal Employers - Current Year and Nine Years Ago ..................................... 366
XVI   Full-Time Equivalent County Government Employees by
           Function/Program - Last Ten Years ............................................................ 367
XVII Operating Indicators by Function/Program - Last Ten Years............................... 368
XVIII Capital Asset Statistics by Function/Program Last Ten Years ........................... 370
XIX   Revenue Bond Coverage Airport Authority Revenue
           Bonds and Notes - Last Ten Years .............................................................. 371
XX    Pittsburgh International Airport Passenger Volume Trend -
           Last Ten Years .......................................................................................... 372
XXI   Salaries of Principal Officials ............................................................................ 373
XXII County Council Members’ Expenditure Reimbursements .................................... 374
XXIII Primary Government Functions ........................................................................ 375




                                                              vi
                          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, 2010




     TO THE CITIZENS OF ALLEGHENY COUNTY:
            I am pleased to present the 2009 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, 2009. These financial statements and
     supplemental 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, 2009.


     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 30th 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.




                                                 2
                    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), Memorial Hall and Allegheny County Conservation District (Conservation District) 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;




                                                 3
                    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 29th 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, 2009, 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, 2009, are fairly presented in conformity with GAAP. The independent auditor’s
report is presented in the Financial Section of this report.




                                               4
                    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 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 are reported as reservations of fund balance and
reappropriated at the start of the next fiscal year.

ECONOMIC CONDITIONS

                                    MAJOR INITIATIVES

        The region has been able to stave off the worst of the recession in 2009, faring much
better than other counties. Grubb & Ellis Co., a commercial real estate advisory firm, predicts
that the Pittsburgh region will continue to defy national trends. It claims that more space was
being occupied than vacated in most sectors and that vacancy rates in Pittsburgh have stayed
below national averages during the recession and expects these trends to continue into the
next year.


        Occupancy rates remained stable because the region did not experience the same
development boom in the past decade as did many cities, which precluded it from having an
oversupply when the economy weakened. The region’s economy also proved to be diverse in
the right places, such as energy, education and health care. Limited construction may have
carried the region through the recession but demand may exceed supply in the coming year,
particularly in areas such as Cranberry and Oakland. Restricted office space may allow
landlords to raise asking rates in 2010. Grubb & Ellis forecasts that Class A rents may increase
by 20 cents a square foot by the end of 2010. Due to minimal supplies, rental rates for
research and development/flex space and warehouse distribution space on the industrial side
could increase 25 cents and 18 cents per square foot, respectively.

       Pittsburgh’s commercial real estate market has also managed well, ranked the best in
the nation by Moody’s in its latest survey of the market in 60 metropolitan regions.




                                                5
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

        Though funding for start-up companies is limited, there is room for expansion of
existing companies. Medrad Inc., Bayer AG and ATI Allegheny Ludlum are all expanding in the
region. The relocation and expansion of Westinghouse Electric Corp. from Monroeville to
Cranberry is a plus because it remained in the region.

        Another retailer fueling the region’s economy is Dick’s Sporting Goods, which
significantly enhanced the airport corridor. Starting with a 65,000 square-foot building, it grew
to a 200,000 square-foot space and currently maintains a 700,000 square-foot headquarters at
the taxiway of the Pittsburgh International Airport. Dick’s growth has resulted in satellite
offices for sporting goods companies such as Nike and Adidas locating their sales teams in the
area.

         PNC Financial Services not only survived the banking crisis but acquired National City,
as well, providing the region with a stable financial institution. PNC Financial Services is the
fifth largest bank in the US with $180 billion in deposits with 2,747 branches.

         Local facilitating companies have provided new businesses the opportunity to succeed
and find location for expansion. A recent company with the potential to grow and expand
economic prospects is Stemnion Inc., a medical company developing treatments to heal
diabetic ulcers and rapidly heal wounds, which is of particular interest to the military. Another
is Plexitronics in Harmarville, using organic means to create energy and harness solar power
for low-power circuitry. Pittsburgh Life Sciences Greenhouse worked with Stemnion,
Innovation Works and helped Plextronics, to ensure new technologies in the region become
tomorrow’s major local employers.

        Despite the success of those local agencies the Technology Collaborative, the
Pittsburgh Life Science Greenhouse and Innovation Works have experienced funding cuts from
the State.

       A number of significant launchings occurred throughout the year.

       Rivers Casino marked its grand opening on 17 acres of riverfront property on the North
Shore in August 2009, featuring restaurants, nightclubs and an outdoor amphitheater.

       Three PNC Plaza, the city’s first skyscraper in twenty years, opened office spaces,
condominiums, a restaurant, retail space, underground parking and a Fairmont Hotel on its
premises. It is one of the largest environmentally sustainable mixed-use high-rises in the
country. The 23-story structure employs a variety of sustainable strategies and is constructed
to meet U.S. Green Building Council’s Leadership in Energy and Environmental Design
standards.




                                                6
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

        The region welcomed the conversion and expansion of the former St. Francis Hospital
into the new Children’s Hospital of Pittsburgh, UPMC, as it opened in May. The hospital is
expected to provide an economic boost stimulating retail and services in the neighborhoods of
Bloomfield and East Liberty, where new hotels are planned.

        American Eagle Outfitters Inc. moved into Quantum III, the 150,000-square-foot
riverfront office building that is a companion to the company’s occupied headquarters located
on Hot Metal Street. The American Eagle move-in occurred as the development undergoes
additional construction on its riverfront park, as well as the widening of East Carson Street.
The estimated cost of the project is $20 million.

         Construction continued on the Consol Energy Center, which received a $325 million
bond issue to construct Pittsburgh’s new multi-purpose arena, and is scheduled to open in the
fall of 2010 – in time for the start of the 2010-11 NHL season. The new arena will be the home
of the Pittsburgh Penguins and also host a wide range of other entertainment events, including
concerts and family shows throughout the year. The Sports & Exhibition Authority of
Pittsburgh and Allegheny County will have ownership of the building.

       Point Park University began its $210 million expansion and overhaul which is expected
to be complete in 2015.

         Settlers Ridge, a 600,000 square foot regional center development located in Robinson
Township, opened in October. The center features a 150,000 square foot Giant Eagle Market
District, REI, LA Fitness, Barnes and Noble, a 16-screen Cinemark theater and a P.F. Chang’s,
in addition to numerous specialty retailers. The regional center also features a 124-room
Courtyard by Marriott.

             COUNTY HIGHLIGHTS AND GOVERNMENTAL COOPERATION

        On September 24th and 25th, Pittsburgh hosted the G-20 summit. The G-20, or the
Group of 20, was established in 1999 to bring together countries to discuss key issues in the
global economy. Member countries include Argentina, Australia, Brazil, Canada, China,
European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi
Arabia, South Africa, South Korea, Turkey, United Kingdom and the United States of America.
Hosting a global economic summit allowed the world to see that Pittsburgh is a progressive
city with a distinguished history and limitless future.

        According to VisitPittsburgh, 3,000 to 4,000 people attended the event, held at the
David L. Lawrence Convention Center. VisitPittsburgh’s CEO put the estimated value of a
convention that brings 3,000 to 4,000 attendees to the city at approximately $8 million, but
expected the value of the G-20 to be higher than that, given the high-level dignitaries
attending. County Officials viewed the prospect of global dignitaries coming to Pittsburgh as a
positive business opportunity and a chance to expose the city to the world.




                                               7
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

       One significant boost for the County in 2009 was the collection of host gaming fees.
Allegheny County received approximately $1.6 million in revenue for August through
December.

       Another key change for the County in 2009 was an adjustment to its alcoholic beverage
tax. The tax instituted in 2008 at a rate of 10% was reduced to 7% for 2009, reducing
beverage tax revenues by $9.6 million.

        In order to enhance governmental cooperation, the Allegheny County Controller’s
Office investigated the potential for the City of Pittsburgh and the County to share the
County’s Enterprise One Financial System. The Controller’s Office also recently renewed its
existing contract with the City of Pittsburgh which permits sharing of purchasing services.

                                      LOCAL ECONOMY

        Grubb & Ellis predicts the retail market in Pittsburgh may face a difficult upcoming
year. With the unemployment rate remaining at high levels, retail is not expected to rebound
until the end of 2010, as commercial real estate lags the job market. A bright spot in retail is
the new McCandless Crossing, a 130 acre site for development and expansions by retailers,
such as REI and Five Below.

        While Allegheny County’s unemployment rate rose from 6.0% to 7.5% in 2009, those
rates are comparatively better than most areas of the country. The total for national
unemployment rose to 10% in 2009. Detroit lost 500,000 jobs or 12% of its total while
Cleveland lost 78,000 or 7.2%. Charlotte lost 68,000 or 7.7% of its jobs during the last two
years.

        Over the past two years of the recession, the Pittsburgh region lost 33,000 jobs
according to Harold Miller of Future Strategies LLC, nearly 3% of its total. The total number of
jobs in the region for 2009 was approximately 1.1 million.

       According to the U.S. Bureau of Labor Statistics, the Pittsburgh region lost 12,000
manufacturing jobs during the last 2 years. In that same time period, the region experienced
small positive gains in mining, hotel & restaurants, professional and medical services.

        Another indicator of the slowing economy is revealed by a drop in barge traffic,
declining to its lowest level in 15 years. From 2008 to 2009 coal traffic dropped from 84,600
to 61,450 barges and non-coal traffic dropped from 23,800 to 17,800 barges.

       According to the National Association of Home Builders/Wells Fargo Housing
Opportunity Index, the Pittsburgh region improved once again in its ranking to the 40th spot
from the 43rd most affordable housing market among 228 metropolitan areas in the nation for
2009. According to Trulia Real Estate Research, the average sale price climbed to $116,000,
up 1.5%, by the 4th quarter of 2008. The number of home sales was up 7.9% over last year.




                                                8
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

        In January, ABC News and Forbes, in a joint survey, declared Pittsburgh one of the
nation’s 25 strongest housing markets. Though, the market for Pittsburgh homes was
expected to decline in the second half of 2009 with the prices to fall only 0.3%.

                       PORT AUTHORITY OF ALLEGHENY COUNTY

        A new labor contract, ratified in December 2008 and taking effect January 2009, ended
a labor dispute for the Port Authority and addressed long-term legacy costs which had
averted the Authority’s ability to operate profitably. The pact is estimated to save
approximately $93 million over its duration primarily through reducing post-retirement benefits
while providing operating expense savings. The ratification resulted in the County remitting to
the Authority the $27.5 million in County subsidies generated by the alcoholic beverage tax
and $2-a-day rental vehicle tax.

       In keeping pace with inflation, the Port Authority’s Board in October approved a fare
increase and a plan to bolster busy routes with buses cut from underused or duplicate routes.
When fully implemented, the Transit Development Plan will trim 186 bus and light-rail routes
to approximately 120 by consolidating low-ridership routes or multiple routes serving areas.
Fares will be raised for longer trips, transfers, passes and light rail rides during peak hours.

        Work continues on the North Shore Subway Extension, now with an estimated total
completion cost of $528.8 million. The Authority reduced the budget by $10 million, citing
management efficiencies. Approximately $62.5 million was allocated from the federal
economic stimulus legislation, the American Recovery and Reinvestment Act. The project will
link the Downtown subway with new stations near PNC Park and Heinz Field via tunnels
beneath the Allegheny River. The project is 70 percent complete and is expected to be
complete by March 2012.

         In an effort to enhance coordination of its transit services, the Port Authority plans to
install a new regional fare collection system based on smart card technology. The smart card
system is intended to reduce fraud, waste and wait times with fare boxes that scan, count and
verify bills. It is capable of reading reloadable cards that are tapped against the fare box to
automatically deduct the value of a fare or transfer.

        In December, the Authority added 20 hybrid diesel-electric buses to its fleet. The new
buses, which produce fewer emissions due to increased fuel economy, will bring the Port
Authority’s total hybrid fleet to 26. The hybrid buses are part of the Port Authority’s broader
plan to increase sustainability.




                                                9
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

                   ALLEGHENY COUNTY AIRPORT AUTHORITY (ACAA)
                       PITTSBURGH INTERNATIONAL AIRPORT

       Two airlines at Pittsburgh International Airport (PIA) reported increases in passengers
in 2009 compared to 2008 according to the scheduled airline traffic report issued by the
Allegheny County Airport Authority. Of those two airlines, AirTran Airways led the way with an
increase in passenger traffic close to 25 percent.

        Including charter passengers, a total of 8 million passengers traveled through
Pittsburgh International Airport. That is a 7.8 percent decrease in passengers compared to
2008. The majority of loss can be attributed to the more than 20 percent decrease in
passengers by US Airways, which equals almost 600,000 fewer passengers.

       For the month of December 2009, a total of 636,067 scheduled passengers were
enplaned and deplaned at Pittsburgh International Airport, 4.3% less than December 2008.

        In 2010, American Airlines plans to add flights to Chicago in the spring, and increase
the size of its aircraft heading to Dallas. JetBlue will be adding service to Boston, which, by
spring, will total three daily flights to one of our most important business markets. Air fares,
which have dropped more than 30 percent since the start of the decade, continue to be well
below the national average.

        Delta Airlines began nonstop flights to Paris in June, becoming Pittsburgh International
Airport’s first nonstop flight to Europe since 2004. The Allegheny Conference on Community
Development and the Commonwealth of Pennsylvania together pledged $9 million in subsidies
to provide the route a strong start.

        By June 17, 2010, JetBlue Airways plans to triple service from Pittsburgh International
Airport to Boston Logan International Airport. Beginning May 1, 2010, JetBlue Airways will
resume its seasonal second daily nonstop service between Pittsburgh and Boston.

                                 PROPERTY ASSESSMENTS

       Allegheny County’s property tax values will change in the near future due to an
upcoming reassessment. 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 could 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.




                                               10
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

       The base-year system, which sets assessments based on the value of property in 2002,
was declared unconstitutional by the court because it would potentially create inequity for
property owners with stagnant or falling values. That system, the court ruled, would keep
property values too high in poor communities and too low in wealthy communities. The court
ordered a new property reassessment, asking the Common Pleas Court to determine the
County’s progress in executing a countywide reassessment and to set a reasonable time
frame.

       By December 2009, the Common Pleas Court Judge issuing that ruling accepted a
revised reassessment plan from Allegheny County.

       Under the plan, the county would hire a contractor and send notices to property
owners in the first quarter of 2010; it would complete the reassessment by 2012. The appeals
process would be altered, as property owners would be required to pay taxes before
appealing.

        In early 2010, Allegheny County proceeded to send mailers to all property owners,
requesting that they verify data characteristics of their properties. The data will be used to edit
and clarify the County's existing database on the characteristics of all county real estate. The
County will hire a contractor in the first quarter of 2010 to begin the process of a parcel-by-
parcel review and analysis of approximately 395,000 properties. That process is estimated to
end by mid-2011.

       Following will be an informal public review of the new assessed property values.
Property owners will not be permitted to challenge their assessed values through the appeals
process until the reassessment is certified in 2012 and owners have paid their due property
taxes.

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 to limit annual payments to $65 million, to only
refinance debt if a present-value-economic gain of 3% is realized and using an annual
adjustable rate to replace fixed rate debt. Some of the 2009 and 2010 planned projects
include $18.7 million for the rehabilitation of the Rankin Bridge, $2 million for the
improvements to the Steel Valley Trail and $4.8 million for the restoration of North Park Lake.
Planned projects to begin in 2010 include $9.6 million for Jack Run Bridge Run No. 1 and $5.0
million for Brownsville at Broughton Road.




                                                11
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

                         FUTURE COUNTY OPERATION BUDGETS

       The Home Rule Charter requires the County to project revenues and expenditures for
two subsequent years. The County 2010’s budget is $773.5 million and 2011 and 2012
budgets are forecasted at $772.9 million and $780.1 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 2009 expenditures were as follows:
  State Gaming Revenue - Reimbursement of PIA Public Investment               $ 10.2 million
  Sale of One Smithfield Building                                               11.4 million
  Capital Fund - PennDOT Reimbursements                                           2.5 million
  Transportation Fund Balance - used for PAT                                      9.9 million
  Department of Court Records - Criminal                                          1.2 million

        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

       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, 2008. This was the 27th 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.




                                                12
                    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. The objectives of the peer review were to
ensure the Audit Division’s internal quality control system was suitably designed, operating ef-
fectively 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 89 financial and compliance audits, re-
views and special reports to the County Manager, County Council and the general public dur-
ing the 2009 calendar year to inform County taxpayers and protect their financial interests.


                                    ACKNOWLEDGMENTS

        The information contained in this report provides a comprehensive picture of the finan-
cial 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




                                               13
Certificate of achievement for excellence in financial reporting
                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                  Officials of Allegheny County
                                       December 31, 2009




                                          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                  Joan Cleary                 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




                                                 19
INDEPENDENT AUDITOR’S REPORT
Auditors report




                  23
Auditors report




                  24
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, 2009. 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, 2009.

                                     RESULTS IN BRIEF


            Government-wide net assets decreased $44.3 million in 2009.

            Government-wide unrestricted net deficit at December 31, 2009 was $79.0 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+
            and Moody’s Investor Service rating remained at A3. Fitch Investor Service rating
            remained at A-.

            At December 31, 2009, the County had $689.1 million of debt outstanding.
            This represents an increase of $40.8 million from the previous year.

            The General Fund’s fund balance increased by $0.7 million in 2009
            compared to a $7.9 million decrease in 2008.

            The total fund balance of the General Fund at December 31, 2009
            was $20.2 million. The unreserved/undesignated portion of the fund
            balance was $19.5 million, which is approximately 3.1% of revenues
            in the General Fund for fiscal year 2009. The unreserved/undesignated
            fund balance increased $1.0 million, or 5.2% between years.


                       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.




                                               27
                 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 51-55) are government-wide financial statements that
provide information about the County’s overall financial status, as well as the financial status
of the County’s component units. The remaining statements (pages 56-71) 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 56-66) 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 67-69) which offer financial information about the
       activities the County operates like a business.

        Fiduciary funds statements (pages 70-71) 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 81-195) as well as required supplementary information regarding
the County’s budget (page 199-201).




                                               28
                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 207-311).

       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.




                                                        29
                   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 Fund 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




                                                     30
                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.




                                              31
                MANAGEMENT’S DISCUSSION AND ANALYSIS

GOVERNMENT-WIDE FINANCIAL STATEMENTS:

       The County’s net assets at December 31, 2009 and 2008 are presented below:


                        Summary of Statement of Net Assets
                                December 31, 2009
                   With Comparative Totals for December 31, 2008
                               (rounded in millions)
                                                        Governmental
                                                          Activities       -

                                                      2009          2008

                 Current and other assets        $      395.8        399.8
                 Capital assets                         617.1        594.5
                     Total assets                     1,012.9        994.3

                 Current and other liabilities          292.7        331.2
                 Non-current liabilities                749.0        647.5
                     Total liabilities                1,041.7        978.7

                 Net assets:
                 Invested in capital assets,
                   net of related debt                   19.4          12.5
                 Restricted                              30.8          33.6
                 Unrestricted                           (79.0)        (30.6)
                    Total net assets             $      (28.8)         15.5




NET ASSETS:

        For 2009, net assets of governmental activities decreased $44.3 million to ($28.8)
million from $15.5 million in 2008. The net assets consist of $19.4 million invested in capital
assets, net of related debt, $30.8 million restricted for various grant related purposes; and
unrestricted net deficit of $79.0 million. Unfunded long-term liabilities for worker’s
compensation ($2.5 million), pension ($71.5 million), and OPEB ($12.9 million) are responsible
for the County’s unrestricted net deficit.




                                                 32
                MANAGEMENT’S DISCUSSION AND ANALYSIS

     The following table presents the County’s change in net assets for the years ended
December 31, 2009 and 2008:

                                Change in Net Assets
                           Year Ended December 31, 2009
                   With Comparative Amounts for December 31, 2008
                                (rounded in millions)
                                                Governmental
                                                  Activities     -
                                            2009             2008              Variance
   Revenues
   Program revenues:
     Fees, fines and charges for services   $          106.8         97.6           9.2
     Operating grants and contributions              1,064.8      1,149.8         (85.0)
     Capital grants and contributions                   28.6         18.3          10.3
   General revenues:                                                                 -
     Property taxes                                    266.4        260.3           6.1
     Sales and use taxes                                39.2         40.3          (1.1)
     Other                                              12.7         15.7          (3.0)
       Total revenues                                1,518.5      1,582.0         (63.5)
   Program expenses
     General government                                235.1       240.8           (5.7)
     Public safety                                     115.5       118.0           (2.5)
     Public works                                       84.7        44.6           40.1
     Transportation                                     37.6        32.7            4.9
     Health and welfare                                960.1     1,027.5          (67.4)
     Culture and recreation                             12.7        10.2            2.5
     Education                                          22.1        21.7            0.4
     Economic development                               29.8        38.8           (9.0)
     Economic opportunity                               37.3        34.5            2.8
     Interest on long-term debt                         27.9        29.4           (1.5)
       Total expenses                                1,562.8     1,598.2          (35.4)
   Change in net assets                                (44.3)      (16.2)         (28.1)
   Net assets – beginning                               15.5        31.7
   Net assets – ending                      $          (28.8)       15.5

CHANGE IN NET ASSETS:

       In 2009, net assets decreased $44.3 million compared to a $16.2 million decrease in
2008. Revenue decreases in 2009 of $63.5 million (mostly Human Service Grants) were offset
by decreased health and welfare expenses of $67.4 million.




                                                33
                   MANAGEMENT’S DISCUSSION AND ANALYSIS

        The decrease ($85.0 million) in operating grant revenue can be attributed to $83.4
million in health and welfare expenses for Mental Retardation being paid directly by the State.

        Fees and charges for services increased $9.2 million, as real estate fees were raised,
Kane Regional Center’s private and commercial insurance increased, and gaming host fees
from Rivers Casino were collected for the first time. Capital grants increased $10.3 million for
federal reimbursement for bridge rehabilitation. In addition, property tax revenue increased
$6.1 million, as the certified assessed values increased and non-current tax collections rose.

        The decrease ($35.4 million) in expenses included the above health and welfare
decrease of $83.4 million for direct State payment offset by increased public work expenses of
$40.1 million for major construction in process. The County’s share of capital contributions to
PAT (Transportation) increased $4.9 million. Economic development expenses decreased $9.0
million, as the $6.6 million Community Infrastructure Tour Grant went directly to RAAC and the
Block Grant program was $3.0 less.

SOURCES OF REVENUES:
       The following chart graphically depicts the government-wide sources of revenues for
the year ended December 31, 2009:


                                          Sources of Revenues
                                           Total revenues: $1.5 billion
          Program revenue
          Operating Grants
               70.1%




                                                                                                  Program revenue
    General revenue other
                                                                                                    Capital Grants
             0.8%
                  General revenue sales                                                                 1.9%
                       and use taxes
                           2.6%                 General revenue           Program revenue fees,
                                                 property taxes             fines and charges
                                                     17.6%                         7.0%




                                                        34
                             MANAGEMENT’S DISCUSSION AND ANALYSIS

       Total government-wide revenues of $1.5 billion were derived primarily from program
based operating grants and contributions, representing 70.1% of the total. Property taxes
made up the second largest source of revenue at 17.6%, followed by program fees, fines and
charges at 7.0%, sales and use taxes at 2.6%, program based capital grants and contributions
at 1.9%, and other general revenue at 0.8%.

PROGRAM EXPENSES:
       The following chart graphically depicts the government-wide program expenses for the
year ended December 31, 2009:

                                                       Program Expenses
                                                       Total expenses: $1.6 billion

 Health and welfare, 61.5%




                                                                                                                      Transportation, 2.4%

  Interest on long-term debt,
              1.8%
                                                                                                                  Public Works, 5.4%

Economic opportunity, 2.4%

                                                                                                        Economic Development, 1.9%
              Education, 1.4%
                                 Public Safety, 7.4%

                                                                                      General government, 15.0%
                                                 Culture and recreation, 0.8%




        Total expenses for all programs in 2009 were $1.6 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 61.5%. The second largest program area was
general government (central management, administrative services, row offices and courts) at
15.0%, followed by public safety (jail, police, emergency management) at 7.4%, public works
(maintenance, engineering, facilities management) at 5.4%, economic opportunity (community
service, employment and training) at 2.4%, economic development (community development)
at 1.9%, interest payments on long-term debt at 1.8% and transportation expenses
(contributions to the Port Authority of Allegheny County) at 2.4%, education contributions to
the Community College of Allegheny County) at 1.4%, and culture and recreation (parks) at
0.8%.




                                                                     35
                  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, 2009:


                                  Net Program Expenses/Revenues
                                                                                              (in millions)
         $20.0
           $0.0
         -$20.0
         -$40.0
         -$60.0
         -$80.0
        -$100.0
        -$120.0
        -$140.0




                                                                                                                                                                                                        Economic Opportunity
                                                                                                Education




                                                                                                                                                                               Culture and Recreation
                                                                             Transportation




                                                                                                                                         Economic Development
                   General government


                                        Public safety




                                                                                                            Interest on long-term Debt
                                                        Health and welfare




                                                                                                                                                                Public Works




        General government expenses required the most general revenue for support,
needing $139.9 million or 59.5% of the $235.1 million in 2009 expenses. Public safety
required $63.3 million (54.8%) in general revenue support for $115.5 million of total
expenses, while health and welfare required $55.7 million (5.8%) of $960.1 million of
expenses; education programs were funded by $22.0 million (99.5%) of the $22.1 million of
expenses, interest payments on long-term debt required $17.7 million (63.4%) of the $27.9
million of interest expenses, economic development required $6.9 million (23.2%) of the $29.8
million of expenses, public works required $54.2 million (64.0%) in revenue of the $84.7
million of expenses. Transportation expenses required $4.9 million (13.0%) of general
revenue to support costs of $37.6 million of expenses, as the Alcoholic Drink Tax was reduced
from 10% to 7%. Economic opportunity expenses of $37.3 million only required $0.4 million
(1.1%) of general revenue support. Culture and recreation posted a surplus of $2.2 million.




                                                                                                36
                MANAGEMENT’S DISCUSSION AND ANALYSIS

                   FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS

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

GOVERNMENTAL FUNDS:
        The General, County Grants, Human Service Grants, Capital Projects, Liquid Fuel,
Transportation Tax, and Debt Service Funds make up the County’s governmental funds. All are
considered major funds, with the exception of the Liquid Fuel and Transportation Tax 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, unreserved/undesignated 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.




                                              37
                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 December 31, 2009
and 2008 were:

            Governmental Fund Revenues, Expenditures, Other Financing and
                            Net Change in Fund Balance
                               (rounded in millions)
                                                                 Net Change in Fund
                                         2009                          Balances
                                                        Net
                                                       Other
Fund                      Revenues      Expenses     Financing       2009       2008

General              $            634.6            646.1         12.1          0.6        (7.8)
County Grants                     121.0            121.2          5.3          5.1         6.0
Human Service Grants              641.2            646.8          5.5         (0.1)       (0.2)
Capital Projects                   29.2             74.9         73.6         27.9       (24.7)
Other                              83.2             94.7          1.9         (9.6)       15.4

 Total Change            $     1,509.2          1,583.7          98.4         23.9       (11.3)



       At December 31, 2009, the County’s governmental funds reported a combined fund
balance of $116.6 million, an increase of $23.9 million compared to the previous year’s
decrease of $11.3 million.




                                              38
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

        The General Fund net change in fund balance was an increase of $0.6 million
compared to a $7.8 million decrease in 2008. General Fund revenues and other financing
sources increased by $28.7 million and expenditures and “transfers out” were $20.2 million
higher than the previous year.

       The following is an analysis of the General Fund revenue and other financing sources
increase of $28.7 million.

        The major factor in the $22 million increase in General Fund taxes was the allocation
percentage used in funding the Debt Service Fund. Since other funding was available to pay
debt, the percentage of tax allocated to the General Fund increased 8.2%, resulting in a
comparable year tax allocation increase of $17 million. In addition, higher certified assessed
values resulted in $1 million in current tax collections and non-current tax collections increased
$4 million as tax receivables have grown since the 2007 receivable sale.

       Sales tax revenues decreased 2.9% or $1.2 million as the downswing in the economy
reduced spending.

        Many factors are responsible for the net increase in Federal revenues of $1.3 million.
Title IV-E Federal funding increased $1.6 million for Child Placement and Adoption Assistance
services, as efficiencies were realized and Stimulus Funds were added to the program. Fees
for maintaining Federal prisoners decreased $0.6 million, Kane’s skilled nursing care revenue
decreased $1.5 million because of fewer patient days, however Medicare revenue increased
$2.5 million. An air pollution grant ($0.7 million) was moved to a special revenue project in
2009.
        State revenues decreased $1.9 million in 2009 for the reasons detailed below.

         State Act 148 revenues for CYF decreased $1.0 million in 2009, offsetting the increase
in Title IV-E Federal funding, and Transition funds decreased $1.4 million.

      Kane’s skilled nursing care revenue declined $1.2 million, offset by increased Medicare
revenue of $0.7 million.

        State miscellaneous revenue increased $2.5 million as DHS received $5.6 million for a
Special Initiative grant. State revenues at Kane were $3.1 million less in 2009 because no
settlements occurred.

        State subsidies for the year decreased $1.2 million for Criminal Justice and $0.8 million
for the Crime Lab. Health Department Act 315 revenues increased $0.7 million, however State
revenues for Court Operations decreased $0.3 million.

       Charges for services increased $7.4 million, as $3 million in additional Real Estate fees
were collected because of rate increases. $1.6 million from Gaming Host fees, associated with
the opening of the Rivers Casino, were collected for the first time.




                                               39
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

         Kane charges for services increased by $0.4 million for patients share, $1.4 million from
Commercial insurance (more use of HMO’s) and $0.8 million associated with improved MA
billing of private insurance.

       Real Estate Tax stamp commissions of 1% and 2% decreased $0.3 million as sales of
property declined. This decrease was offset by a $0.4 million increase in miscellaneous
charges for services for Kane’s Disproportionate MA Share of income.

      Fines and forfeitures revenue decreased $1.7 million as District Court fees collected
were $0.4 million less and there were no miscellaneous fees ($1.3 million in 2008) available in
2009.

        Interest earnings decreased from last year by $2.7 million. During 2009, interest rates
dipped below 1% and the County’s investment balance was lower by the $45 million TRAN
issued in 2008.

       Miscellaneous revenues increased $2.6 million, as worker’s compensation
reimbursements and other insurance claim recoveries went up $1.1 million and escrow monies
of $1.2 million were transferred to the General Fund from the Department of Criminal Records.

        Other financing sources increased $2.9 million. $7.7 million was to record a capital
lease in 2009 and $3.2 million of the increase is the General Fund’s portion from the 2009 sale
of the One Smithfield Building. Offsetting these increases were a $7.7 million decrease in
transfers in, and a $0.3 million decrease in premium revenue because a TRAN was issued in
2008 but not in 2009.

       The following is an analysis of the General Fund expenditures and other financing uses
increase of $20.2 million.

General government expenditures increased by $11.1 million for the following reasons:
       Courts – Judicial support expenditures for salaries and fringe benefits increased $0.5
       million and services rose $0.5 million for County match and telephone and internet
       services. Minor Judiciary salaries and fringe benefits also increased $0.6 million.
       Treasurer Office expenditures increased $0.6 million for legal services, insurance, and
       software.
       Sheriff Office fringe benefits rose $0.5 million as costs allocated to grants were
       reduced.
       District Attorney salaries and fringe benefits increased $0.5 million.
       Management Information System salaries and fringe benefits rose $0.5 million.
       Department of Court Records – Administration salaries and fringe benefits increased
       $0.4 million.
       Public Defender salaries and fringe benefits rose $0.4 million.
       Non-Departmental expenditures decreased $1.0 million as no TRAN was issued in
       2009.
       General Government expenditures of $7.6 million were incurred for a capital lease for
       the Medical Examiner’s Lab.

                                               40
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

       Public safety expenditures rose by $1.1 million as salary and fringe benefits of the Jail
increased $1.1 million, Emergency management $0.2 million and County Police $1.4 million.
These costs were offset by savings in heating and residential services of $1.5 million.

        Public works net increase in 2009 expenditures was $1.2 million, salaries and fringe
benefits for maintenance were up $1.4 million and Engineering’s rose $0.4 million. These
increases were lessened by increased transfers of eligible costs to the Celebration of Lights
project.

        Health and welfare expenditures increased $11.6 million. Kane Regional Centers
salaries and fringe benefits rose $3.4 million. In addition, McKeesport’s occupational and
physical therapy and agency nursing costs increased $0.8 million. CYF’s health and welfare
costs increased by $8.0 million. All divisions reported additional costs because higher
reimbursement rates allowed for the expansion of existing programs.

       Culture and recreation expenditures increased $0.6 million, as the result of funding for
the newly established Park Foundation.

       Debt service payments decreased $1.8 million in 2009, as $1.8 million was not needed
for a TRAN interest payment as in 2008.

      Other financing uses decreased $4.1 million, as deficits in the Courts and Enhanced
911 were $1.6 million and $3.2 million lower in 2009, respectively.

        The Human Service Grants Funds had no significant change in net fund balances in
2009. This occurs because grants are generally expenditure driven and capped at mandated
spending levels. The County Grants Fund $5.1 million increase in fund balance is attributed to
the deficit in the Enhanced 911 Program ($1.8 million) and Court program deficits of $3.4
million being funded. It should be noted the County received decreased Human Service Grant
revenues of $71.8 million and decreased County Grant revenues of $2.0 million in 2009. The
decrease in Human Service Grants is directly attributed to the State paying providers for
certain services rather than the County.

       The Capital Projects Fund Balance increased by $27.9 million in 2009. The increase in
fund balance results from major construction projects and the resulting increase in PennDOT
reimbursements. In addition, bond proceeds of $80 million offset both the deficiency of
revenues over expenditures of $45.6 million and net operating transfers out of $6.4 million.




                                               41
                    MANAGEMENT’S DISCUSSION AND ANALYSIS

       The following chart graphically depicts the total revenues received and expenditures
incurred by fund for the year ended December 31, 2009:

                     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
                     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 2009.

       The following table presents the County’s previously analyzed change in governmental
fund balances for the year ended December 31, 2009:

                          Change in Governmental Fund Balances
                                   December 31, 2009
                                  (rounded in millions)

 Fund Balance                                                 Human
                                               County         Service          Capital            Other
                    General                    Grants         Grants           Projects        Governmental
 Beginning 1/1/09 $   19.5                      21.7             0.1              35.6                15.8
 Net Change            0.6                       5.1            (0.1)             27.9                (9.6)
 Ending 12/31/09 $    20.1                      26.8              -               63.5                  6.2




                                                        42
                    MANAGEMENT’S DISCUSSION AND ANALYSIS

       The following chart illustrates the Governmental Fund fund balances at December
31, 2009:

                                        Governmental Fund Balances
                                           at December 31, 2009
                                                (in millions)

                                       Reserved     Designated   Unreserved/undesignated



            $70.0


            $60.0


            $50.0


            $40.0


            $30.0


            $20.0


            $10.0


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



           The General Fund is the chief operating fund of the County. At December 31, 2009,
the total fund balance in the General Fund was $20.2 million. The unreserved/ undesignated
fund balance was $19.5 million, an increase of $1.0 million from the previous year. As a
measure of the General Fund’s liquidity, it may be useful to compare both unreserved/
undesignated fund balance to total fund revenues. Unreserved/undesignated 2009 fund
balance represents 3.1% of total fund revenues and unreserved/undesignated fund balance
was 3.0% of revenues in 2008.

         2009 GENERAL FUND BUDGETARY HIGHLIGHTS AND NEXT YEAR’S BUDGET

       The difference between the 2009 adopted and the 2009 final amended General Fund
budget of $666.0 million, net of $1.0 million in encumbrances, was an increase of $1.8 million.

       The total appropriation increase in budgeted expenditures was financed by a transfer
from the Debt Service Fund. Overall expenditures were $19.7 million under budget, with
health and welfare expenditures being $20 million less than budget.




                                                            43
                MANAGEMENT’S DISCUSSION AND ANALYSIS

       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 and $1.0 million to Public Works’
Maintenance division for salaries and fringe benefits.

       Budgeted taxes of $2.6 million for real estate were never realized and budgeted sales
taxes were $2.0 million under budget because of poor economic conditions. Federal revenues
for adoption assistance and child placement were $2.4 million over budget and Kane Regional
Center revenues were $5.4 million less than budgeted because of a lower population rate than
expected. State revenues for Act 148 ($21.3 million), the transition grant ($1.7 million), and
Kane revenues ($4.4 million) were all below budget. Offsetting these overestimated revenues
were $5.4 million in unbudgeted State revenues. Charges for services exceeded budgeted
revenues from Kane patient of $1.0 million and recreation fees of $1.4 million.

        The County used the sale of property proceeds of $8.5 million and other one time
reimbursements to pay debt service expenditures. These revenues allowed the County to
transfer unallocated Debt Service Fund balances to the General Fund.

        The 2010 General Fund budget was adopted at $670.8 million or 5.0% higher than the
previous year’s final budget, however $30 million of PennDOT reimbursements are needed to
balance the budget. Public safety costs are expected to increase $2.8 million, culture and
recreation by $0.4 million, economic development by $0.3 million, and general government by
$0.4 million.


                     CAPITAL ASSET AND DEBT ADMINISTRATION

CAPITAL ASSETS:

       The County’s investment in capital assets at December 31, 2009, net of accumulated
depreciation, amounted to $617.1 million. Capital assets consist primarily of land, land
improvements, construction in progress, buildings, capital lease, leasehold improvements,
equipment and infrastructure. The following, on the next page, is a summary of capital assets
at December 31, 2009 and 2008:




                                              44
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

                                   Summary of Capital Assets

                                   Balance at             Balance at
                                December 31, 2009     December 31, 2008         Increase
      Land                  $         24,373,153             27,443,691        (3,070,538)
      Land improvements                8,192,901              8,192,901              -
      Construction in
      progress                        48,735,755                47,319,696      1,416,059

     Buildings                       391,000,275               359,888,367    31,111,908
     Infrastructure                  390,825,195               389,380,705     1,444,490
     Furniture and
     other equipment                  80,692,962               101,411,530   (20,718,568)
     Total capital assets            943,820,241               933,636,890    10,183,351

     Less accumulated
     depreciation for:
     Land improvements                 5,609,513                 5,321,073        288,440
     Buildings                       152,675,001               147,647,580      5,027,421
     Infrastructure                  132,429,896               124,488,008      7,941,888
     Furniture and
     other equipment                  35,979,379                61,643,993   (25,664,614)
     Total accumulated
     depreciation                    326,693,789               339,100,654   (12,406,865)
     Total                  $        617,126,452               594,536,236    22,590,216


        The net increases in total capital assets of $10.2 million was due to an increase in
buildings of $31.1. million, an increase in construction in progress of $1.4 million, and an
increase in infrastructures of $1.4 million, that were offset by a decreases in land of $3.1
million and furniture and other equipment of $20.7 million. 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 the end of 2010. Construction in progress of this project increased
           approximately $18.3 million.
           Construction of the Medical Examiner’s Office at Penn Liberty Plaza was finished in
           2009. The Medical Examiner’s Office moved into the building this summer. A total
           of $20.6 million was moved from construction in progress to building
           improvements during 2009.
           Construction in progress decreased and buildings increased because the following
           projects were finished in 2009: Shuman Center CCTV and alarm system; County
           Office Building cooling tower replacement; Kane-Nurse call fire alarm replacement;
           the Kane Regional Centers Transitional Care Units; various chiller and roof
           replacements; and lab facilities at Clack.
           Construction continued on the Duquesne/McKeesport Flyover Bridge, as
           construction in progress increased $6.2 million.
           One Smithfield Building was sold at the end of 2009 for $11.4 million. This resulted
           in decreases in land of $3.0 million, in buildings of $5.2 million and accumulated
           depreciation of $867,415.



                                              45
                MANAGEMENT’S DISCUSSION AND ANALYSIS

      Additional information on the County’s capital assets can be found in Note 5 on pages
130 and 131 of this report.

LONG-TERM DEBT:

         At December 31, 2009, the County had $689.1 million of debt outstanding. This was
an increase of $40.8 million, or 6.3%, from the previous year. The following chart details
activity related to general obligation bonds during 2009:


                    Summary of General Obligation Bond Activity

   Beginning Balance at 1/1/2009                                    $    648,304,547
   Accretion and Component Unit
   Adjustments                                                               2,341,777

   Debt Issued                                                           107,500,000
   Less: Principal Payments                                              (66,582,582)
   General Obligation Bonds/Notes                                        691,563,742
   Less: Amortization of Premium/Discount                                 (2,438,420)
   Ending Balance at 12/31/2009                                     $    689,125,322


       On August 12, 2009 the County issued General Obligation Bonds, Series C-62 in the
amount of $80 million. The proceeds of the Series C-62 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-62 Bonds.

        Also on August 12, 2009 the County issued General Obligation Refunding Notes, Series
C-63 in the amount of $27.5 million. The proceeds of the Series C-63 Bonds were used to: (1)
refund certain of the County’s General Obligation Bonds, Series C-47; (2) refund the County’s
General Obligation Bond, Series C-48; and (3) pay certain costs related to the issuance of the
Series C-63 Bonds.

      Additional information on the County’s long-term debt can be found in Note 8 on pages
143-148 of this report.




                                             46
                 MANAGEMENT’S DISCUSSION AND ANALYSIS

BOND RATING:

          The County continued to maintain investment grade bond ratings from the three major
rating agencies on its outstanding debt. Those ratings are: A+ from Standard & Poor’s with a
stable outlook, A3 from Moody’s Investor Service with a change in outlook to positive, and an
A– from Fitch Investor Services. 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




                                               47
          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, 2009




                                                               Governmental            Component
                                                                 Activities               Units



       Assets

Cash and short-term investments (note 3)                   $     87,883,111            133,256,127
Time deposits and other investments (note 3)                          -                  8,244,922
Restricted/noncurrent cash and short-term
   investments (notes 3)                                         43,836,853            242,568,108
Delinquent property taxes receivable, net (note 4)                8,492,219                  -
Liened property taxes receivable, net (note 4)                   11,684,262                  -
Sales tax receivable (note 4)                                     6,999,908                  -
Due from other governments, net (note 4)                        171,955,930             58,214,291
Due from component units (note 9)                                15,463,863                  -
Due from primary government (note 9)                                  -                 10,531,406
Loans receivable (note 4)                                             -                 28,788,000
Alcoholic beverage tax receivable                                 2,946,638                  -
Rental vehicle tax receivable                                       408,567                  -
Accounts receivable (note 4):
   Trade                                                              -                  6,722,173
   Other                                                         28,036,952             18,977,880
Accrued penalty and interest receivable                             315,555                  -
Accrued interest and dividends receivable                            91,754                781,965
Inventory                                                             -                 17,497,078
Other assets                                                     17,669,175             12,510,491
Land (note 5)                                                    24,373,153            248,368,856
Land improvements (note 5)                                        2,583,388                  -
Construction in progress (note 5)                                48,735,755            324,415,114
Infrastructure, net of accumulated depreciation (note 5)        258,395,299                  -
Buildings and equipment, net of
   accumulated depreciation (note 5)                            283,038,857          1,789,989,681
Capital lease investments (note 8)                                    -                 99,586,120

       Total assets                                        $   1,012,911,239         3,000,452,212




                                                     51
Exhibit 1 (Page 2 of 3)

                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                         Statement of Net Assets
                                           December 31, 2009




                                                                Governmental      Component
                                                                  Activities         Units



          Liabilities and Net Assets


  Liabilities:
     Vouchers payable                                       $     20,676,884       52,549,370
     Accrued interest payable                                      5,099,824        1,054,867
     Accrued payroll                                              11,310,175       20,698,037
     Payroll withholdings                                            516,695            -
     Due to component units (note 9)                               4,021,406            -
     Due to primary government (note 9)                                -           15,513,863
     Due to other governments                                        523,050        3,603,705
     Amount due airlines                                               -              362,080
     Accrued liabilities                                          95,128,773       10,460,915
     Retainage payable                                             3,155,478            -
     Loans Payable                                                 3,000,000            -
     Tax refunds payable                                             491,361            -
     Unearned revenue
       Current                                                    99,328,840       54,974,177
       Non-current                                                     -           49,500,159
     Deferred tuition and student deposits                             -            3,506,385
     Accrued state mental hospital costs                             113,460            -
     Accrued unemployment compensation                               791,257            -
     Matured bonds payable                                            61,567            -
     Other liabilities
       Current                                                           -         10,408,486
       Non-current (note 10)                                           701,108          -
     Other post employment benefits (note 11)
       Current                                                         -              100,551
       Non-current                                                12,892,087      100,937,440
     Accrued pension costs
       Current contributions                                       1,401,002             -
       Non-current (note 10)                                      71,537,960             -
     Accrued workers' compensation (notes 6 and 8)
       Current                                                     5,127,561            -
       Non-current                                                 2,512,728          220,830
     Compensated absences (notes 1 and 8)
       Current                                                       327,596        2,918,871
       Non-current                                                 6,869,964            -
     General obligation/revenue bonds/notes/
       leases (notes 8 and 14)
       Current                                                    41,564,707      100,850,230
       Non-current                                               654,327,014      913,369,553
     Reserve for claims and settlements (note 6)
       Current                                                           -         25,342,245
       Non-current                                                     195,002      7,368,317

         Total liabilities                                      1,041,675,499    1,373,740,081



                                                     52
                                                                             Exhibit 1 (Page 3 of 3)

                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                                       Statement of Net Assets
                                         December 31, 2009




                                                              Governmental           Component
                                                                Activities              Units



Net assets: (note 1)
   Invested in capital assets, net of related debt              19,424,481          1,616,867,543
   Restricted for:
     County grants                                              26,780,868                  -
     Capital projects                                                -                  5,639,912
     Debt service                                                    -                 60,399,555
     Transportation                                              4,064,360                  -
     Scholarship and tuition funds                                   -                    339,388
     Other student funds                                             -                  2,621,217
     Other projects                                                  -                 52,657,650
     Permanently                                                     -                    769,334
   Unrestricted net assets (deficit)                           (79,033,969)          (112,582,468)

       Total net assets                                        (28,764,260)         1,626,712,131

       Total liabilities and net assets                    $ 1,012,911,239          3,000,452,212



See accompanying notes to financial statements.




                                                     53
                            COUNTY OF ALLEGHENY, PENNSYLVANIA
                                    Statement of Activities
                        Years Ended December 31, 2009 or June 30, 2009




                                                                                   Charges for
Functions/Programs                                         Expenses                 Services


Primary government:
    General government                             $      235,125,122               47,993,725
    Public safety                                         115,519,420               17,445,708
    Public works                                           84,735,917                1,149,994
    Transportation                                         37,579,478                    -
    Health and welfare                                    960,062,647               32,392,534
    Culture and recreation                                 12,652,579                6,678,107
    Education                                              22,133,800                    -
    Economic development                                   29,792,079                1,142,995
    Economic opportunity                                   37,277,998                    -
    Interest on long-term debt                             27,929,366                    -
Total primary government                                1,562,808,406              106,803,063


Component units:
  Allegheny County Airport Authority                $     179,680,735              135,854,111
  Port Authority of Allegheny County                      475,277,886               92,797,932
  Community College of Allegheny County                   124,563,847               37,197,027
  Redevelopment Authority of Allegheny County              27,149,294                1,672,786
  Allegheny County Industrial Development Authority           652,991                  484,109
  Nonmajor Component Units                                  8,107,224                1,720,026
Total component units                              $      815,431,977              269,725,991



                                                        General Revenues:
                                                          Property taxes, levied for general purpose
                                                          Property taxes, levied for debt service
                                                          Sales taxes
                                                          Payment from Allegheny County
                                                          Interest and investment earnings
                                                          Net increase in the fair value of investments
                                                         Gain on sale of capital assets
                                                         Transfer to County
                                                         Capital project transfer
                                                         Intergovenmental transfer
                                                          Miscellaneous
                                                             Total general revenues
                                                                 Change in net assets
                                                        Net assets - beginning of year
                                                        Net assets - end of year




See accompanying notes to financial statements.




                                                    54
                                                                                        Exhibit 2




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



    39,477,946           7,785,926                 (139,867,525)                -
    34,777,469               -                      (63,296,243)                -
     9,824,773          19,544,116                  (54,217,034)                -
    32,714,434               -                       (4,865,044)                -
   872,017,052               -                      (55,653,061)                -
     6,946,357           1,228,500                    2,200,385                 -
       123,800               -                      (22,010,000)                -
    21,757,335               -                       (6,891,749)                -
    36,919,706               -                         (358,292)                -
    10,200,000              53,393                  (17,675,973)                -
  1,064,758,872         28,611,935                 (362,634,536)                -




         -             39,985,053                         -               (3,841,571)
   184,357,990        206,986,209                         -                8,864,245
    69,221,360          1,810,422                         -              (16,335,038)
    23,159,279              -                             -               (2,317,229)
       313,823              -                             -                  144,941
     5,715,126             33,143                         -                 (638,929)
   282,767,578        248,814,827                         -              (14,123,581)




                                        $           231,312,634                -
                                                     35,077,512                -
                                                     39,172,875                -
                                                          -               54,465,151
                                                      4,161,339           14,841,045
                                                          -                   21,532
                                                      3,979,041            3,564,261
                                                          -               (3,397,367)
                                                          -              (27,825,080)
                                                          -                3,000,000
                                                      4,592,733              324,440
                                                    318,296,134           44,993,982
                                                    (44,338,402)          30,870,401
                                                     15,574,142        1,595,841,730
                                        $           (28,764,260)       1,626,712,131




                                        55
                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                 Balance Sheet
                                              Governmental Funds
                                              December 31, 2009




                                                                                  County      Human Services
                                                                   General      Grants Fund    Grants Fund

      Assets


Cash and short-term investments (note 3)                  $             -        34,441,213      30,127,927
Restricted cash and short-term investments (notes 3)                    -           554,758      39,176,817
Delinquent property taxes receivable, net (note 4)                  7,369,037         -               -
Liened property taxes receivable, net (note 4)                      8,268,932         -               -
Sales tax receivable (note 4)                                       6,999,908         -               -
Due from other funds (note 9)                                      26,882,759     8,044,405       3,212,313
Due from other governments, net of $7,259,042 allowance
   for doubtful accounts in the General Fund                   100,512,779       22,773,454      41,056,595
Due from component units (note 9)                                4,108,312            -           3,105,551
Alcoholic beverage tax receivable                                    -                -               -
Rental vehicle tax receivable                                        -                -               -
Accounts receivable:
   Other                                                           16,198,014     1,284,068       9,303,552
Accrued penalty and interest receivable                               244,460         -               -
Accrued interest and dividends receivable                              29,762         -              12,164
Other assets                                                            9,716         -               -


      Total assets                                        $    170,623,679       67,097,898     125,994,919



       Liabilities and Fund Balance


Liabilities:
   Vouchers payable                                       $         7,835,240     2,661,062       6,361,576
   Accrued payroll                                                  9,146,397     1,578,474         585,304
   Payroll withholdings                                               516,695         -               -
   Due to other funds (note 9)                                     71,999,854     5,572,227       3,742,892
   Tax refunds payable                                                426,374         -               -
   Accrued liabilities                                             36,088,680     4,777,685      42,738,547
   Accrued interest payable                                             -             -               -
   Due to component units (note 9)                                  3,960,000         -              61,406
   Loans Payable                                                        -             -               -
   Retainage payable                                                    -           144,547           -
   Due to other governments                                             3,050         -             520,000
   Deferred revenue                                                17,768,420    25,328,018      71,870,371
   Accrued pension costs                                            1,138,335       188,529          74,138
   Accrued state mental hospital costs                                113,460         -               -
   Accrued workers' compensation (note 6)                             764,661        12,146             798
   Accrued unemployment compensation                                  711,405        54,342          25,510
   Matured bonds payable                                                -             -               -

      Total liabilities                                        150,472,571       40,317,030     125,980,542




                                                              56
                                                Exhibit 3 (Page 1 of 2)




                Other          Total
 Capital     Governmental   Governmental
Projects        Funds          Funds




22,283,996       709,155       87,562,291
     -         4,105,278       43,836,853
     -         1,123,182        8,492,219
     -         3,415,330       11,684,262
     -             -            6,999,908
60,469,980       138,108       98,747,565

 7,613,102         -          171,955,930
     -         8,250,000       15,463,863
     -         2,946,638        2,946,638
     -           408,567          408,567

    -          1,251,318       28,036,952
    -             71,095          315,555
   48,447          1,381           91,754
    -              -                9,716


90,415,525    22,420,052      476,552,073




 3,795,159        16,931       20,669,968
     -             -           11,310,175
     -             -              516,695
 5,717,510    11,515,123       98,547,606
     -            64,987          491,361
11,409,916         -           95,014,828
     -             1,759            1,759
     -             -            4,021,406
 3,000,000         -            3,000,000
 3,010,931         -            3,155,478
     -             -              523,050
     -         4,538,512      119,505,321
     -             -            1,401,002
     -             -              113,460
     -             -              777,605
     -             -              791,257
     -            61,567           61,567

26,933,516    16,198,879      359,902,538




                                           57
                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                  Balance Sheet
                                               Governmental Funds
                                               December 31, 2009




                                                                             County      Human Services
                                                              General      Grants Fund    Grants Fund




Fund Balances: (note 1H)
    Reserved for encumbrances                                   686,266        954,239          14,048
    Reserved for transportation                                   -              -               -
    Reserved for liquid fuel                                      -              -               -
    Reserved for grant programs                                   -         25,826,629           -
    Reserved for future projects                                  -              -               -
    Unreserved:
      Designated fund balance:
            Other
               Debt Service                                       -              -               -
      Undesignated fund balance:
            General                                          19,464,842          -               -
            Human Services Grants Fund                            -              -                   329
            Other

       Total fund balances                                   20,151,108     26,780,868          14,377

       Total liabilities and fund balances              $   170,623,679     67,097,898     125,994,919




See accompanying notes to financial statements.




                                                      58
                                            Exhibit 3 (Page 2 of 2)




                Other          Total
 Capital     Governmental   Governmental
Projects        Funds          Funds




15,465,258         -           17,119,811
     -         4,064,360        4,064,360
     -           233,154          233,154
     -             -           25,826,629
48,016,751         -           48,016,751




     -         1,923,659        1,923,659

     -             -           19,464,842
     -             -                  329



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

90,415,525    22,420,052      476,552,073




                                    59
                                                                                                      Exhibit 3 - A

                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                     Reconciliation of the Governmental Funds
                                    Balance Sheet to the Statement of Net Assets
                                                December 31, 2009




Total Fund Balance - Governmental Funds                                                               $ 116,649,535

   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.                                   617,126,452

     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 funds.                                                                          20,176,481

     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.                                              17,659,459

     Net pension obligation and other post employment benefits are reflected
     on the Statement of Financial Position, but are not considered a current                           (84,430,047)
     expenditure for the Fund statements.

     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                              $   (701,108)
                                    Accrued workers' compensation                       (6,862,684)
                                    Compensated absences                                (7,197,560)
                                    GO Bonds/Revenue Bonds/Notes/Leases               (695,891,721)
                                    Accrued interest on bonds                           (5,098,065)
                                    Claims and Settlements                                (195,002)    (715,946,140)

Total Net Assets - Governmental Activities                                                            $ (28,764,260)




See accompanying notes to financial statements.




                                                                61
                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                 Statement of Revenues, Expenditures and Changes in Fund Balances
                                       Governmental Funds
                                  Year Ended December 31, 2009




                                                                    County          Human Services
                                                     General      Grants Fund        Grants Fund


Revenues:
  Property taxes (notes 1 and 4)            $    226,749,293            -                  -
  Sales and use tax (note 4)                      39,172,875            -                  -
  Alcoholic beverage tax                               -                -                  -
  Rental vehicle tax                                   -                -                  -
  Licenses and permits                             1,904,569            -                  -
  Federal revenues                                94,293,589       56,406,317        134,901,329
  State revenues                                 174,542,962       30,482,772        502,579,693
  Local governmental units revenues               17,215,187            -                  -
  Charges for services and facilities             68,384,127       23,230,750              -
  Fines and forfeitures                            4,976,114            -                  -
  Interest earnings                                  645,538          266,202          2,617,743
  Miscellaneous                                    6,754,783       10,567,234          1,084,231

       Total revenues                            634,639,037      120,953,275        641,182,996

Expenditures:
  Current:
    General government                           166,708,068       45,347,618              -
    Public safety                                 78,837,379       32,672,895              -
    Public works                                  25,038,327        1,005,743              -
    Transportation                                     -                -                  -
    Health and welfare                           337,536,389       18,324,756        609,544,111
    Culture and recreation                         9,498,465          447,059              -
    Education                                     22,010,000          123,800              -
    Economic development                           6,494,647       23,239,135              -
    Economic opportunity                               -                -             37,277,998
  Capital projects                                     -                -                  -
  Debt Service (note 7):
    Principal                                             -              -                  -
    Interest                                              -              -                  -
    Cost of issuance                                      -              -                  -


       Total expenditures                        646,123,275      121,161,006        646,822,109

       Deficiency of revenue
         over expenditures                       (11,484,238)         (207,731)        (5,639,113)




                                                62
                                                Exhibit 4 (Page 1 of 2)




                  Other           Total
   Capital     Governmental    Governmental
  Projects        Funds           Funds



     -           34,381,972      261,131,265
     -                -           39,172,875
     -           27,445,903       27,445,903
     -            5,268,531        5,268,531
     -                -            1,904,569
23,311,713            -          308,912,948
 4,080,829       14,350,550      726,036,806
   766,000           53,393       18,034,580
     -                -           91,614,877
     -                -            4,976,114
   487,820          144,036        4,161,339
   617,023        1,549,004       20,572,275

29,263,385       83,193,389    1,509,232,082




     -                -          212,055,686
     -                -          111,510,274
     -            4,025,000       30,069,070
     -           27,668,699       27,668,699
     -                -          965,405,256
     -                -            9,945,524
     -                -           22,133,800
     -                -           29,733,782
     -                -           37,277,998
74,376,734            -           74,376,734

     -           38,232,500       38,232,500
     -           24,612,032       24,612,032
   536,564          155,834          692,398


74,913,298       94,694,065    1,583,713,753



(45,649,913)    (11,500,676)     (74,481,671)




                                    63
                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                   Statement of Revenues, Expenditures and Changes in Fund Balances
                                         Governmental Funds
                                    Year Ended December 31, 2009




                                                                       County        Human Services
                                                       General       Grants Fund      Grants Fund




Other financing sources (uses):
  Issuance of general obligation bonds (note 8)             -               -                -
  Issuance of refunding bonds (note 8)                      -               -                -
  Payment to refunded bond escrow agent (note 8)            -               -                -
  Premium on bond issuance                                  -               -                -
  Discount on bond issuance                                 -               -                -
  Proceeds on sale of building                          3,170,000           -                -
  Capital lease                                         7,678,839           -                -
  Transfers in (note 9)                                12,120,704       6,863,250        5,719,302
  Transfers out (note 9)                              (10,825,561)     (1,546,179)        (210,812)


       Total other financing
         sources (uses)                                12,143,982       5,317,071        5,508,490

Special item:
  Proceeds from sale of building                             -              -                -

        Net change in fund balances                        659,744      5,109,340         (130,623)

Fund balances at beginning of year                     19,491,364     21,671,528          145,000

Fund balances at end of year                      $    20,151,108     26,780,868           14,377



See accompanying notes to financial statements.




                                                      64
                                                Exhibit 4 (Page 2 of 2)




                  Other           Total
   Capital     Governmental    Governmental
  Projects        Funds           Funds




 80,000,000           -           80,000,000
      -          27,500,000       27,500,000
      -         (29,110,423)     (29,110,423)
      -           1,766,257        1,766,257
   (833,340)          -             (833,340)
      -               -            3,170,000
      -               -            7,678,839
  9,910,779      18,019,791       52,633,826
(15,511,757)    (24,539,517)     (52,633,826)



73,565,682       (6,363,892)      90,171,333



      -           8,250,000        8,250,000

27,915,769       (9,614,568)      23,939,662

35,566,240       15,835,741       92,709,873

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




                                       65
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, 2009




Net Change in Fund Balance - Governmental Funds                                                             $     23,939,662

   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                     $ 50,278,635
                                                         Less: Depreciation expense          (20,328,557)         29,950,078

     Governmental funds report proceeds from sales of capital assets as other financing
     sources. However, in the statement of activities the net book value of the asset
     must be taken into account to record a gain or loss on the sale.                                             (7,359,862)

     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 funds. Deferred revenues decreased by this amount during the year.                               5,258,881

     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.                                    (46,807,203)

     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.                                                                        (47,278,643)


     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.                                                                                (1,408,860)

     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.                              (818,046)

     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.                                                    185,591

Change in Net Assets of Governmental Activities                                                                 $ (44,338,402)



See accompanying notes to financial statements.

                                                              66
                                                                            Exhibit 5

                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                             Statement of Net Assets
                                 Proprietary Fund
                               December 31, 2009




                                                  Governmental Activities
                                                  Risk Management Fund


       Assets
       _____

Current assets:
 Cash and short-term investments                  $         320,820
 Due from other funds:
     General fund                                           464,362

        Total assets                              $         785,182

       Liabilities and Net Assets
       ____________________

Current liabilities:
 Vouchers payable                                 $           6,916
 Due to other funds:
     General Fund                                           664,321

                                                            664,321

 Accrued liabilities                                        113,945
        Total liabilities                                   785,182

Net assets:
 Unrestricted net assets                                      -

        Total liabilities and net assets          $         785,182



See accompanying notes to financial statements.




                                           67
Exhibit 6

                          COUNTY OF ALLEGHENY, PENNSYLVANIA
              Statement of Revenues, Expenses, and Changes in Fund Net Assets
                                     Proprietary Fund
                                    December 31, 2009




                                                              Governmental Activities
                                                              Risk Management Fund

            Operating revenues:
             Contribution - employee                          $         342,480
             Contribution - employer                                  1,563,575
                Total operating revenues                              1,906,055

            Operating expenses:
             Insurance claims expense                                 1,906,055
                Total operating expenses                              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                         $            -



            See accompanying notes to financial statements.




                                                 68
                                                                                   Exhibit 7

                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                               Statement of Cash Flows
                                   Proprietary Fund
                            Year Ended December 31, 2009




                                                         Governmental Activities
                                                         Risk Management Fund

Cash flows from operating activities:
 Receipts from customers                                 $        2,307,508
 Payments to suppliers                                           (1,986,688)
   Net cash provided by operating activities                       320,820

Balance - begininng of year                                           -


Balance - end of year                                    $         320,820


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

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

   Decrease in accounts receivable                                   93,841
   Decrease in due from other funds                      $          307,612
   Increase in due to other funds                                    22,584
   Increase in vouchers payable                                       6,904
   Decrease in accrued liabilities                                 (110,121)
     Total adjustments                                             320,820

     Net cash provided by operating activities           $         320,820


See accompanying notes to financial statements.




                                               69
Exhibit 8

                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Statement of Fiduciary Net Assets
                                                  Fiduciary Funds
                                                December 31, 2009




                                                                        Pension      Combined
                                                                         Trust        Agency
                   Assets                                                Fund          Funds

            Cash and short-term investments (note 3)               $     9,215,521   48,213,084
            Investments (at fair value): (note 3)
              Equity:
                 U.S. common and preferred stock                       110,198,296        -
                 American Depositary Receipts (ADRs)                     2,337,747        -
                 S&P 500 index fund                                     62,317,779        -
                 Non-U.S. stock and equity mutual fund                 151,641,644        -
              Bonds and Notes:
                 Corporate certificates of deposit                          50,500        -
                 U.S. government and related agency debt                15,148,512        -
                 Fannie Mae and Freddie Mac debt                        28,826,877        -
                 Fixed income mutual funds                              84,367,721        -
                 U.S. corporate debt instruments                        54,800,334        -
                 Non-U.S. government and corporate debt                 10,639,161        -
              Other Investments:
                 Hedge funds                                             2,328,458        -
                 Real estate                                            38,241,598        -
                 Commodities fund                                       19,791,796        -
                 Venture capital / private equity                       62,018,260        -

                                                                       642,708,683        -
            Amount due from brokers                                      2,022,941        -
            Accrued interest and dividends receivable                    1,377,202       21,626
            Accrued employer contributions receivable                      690,570        -
            Accrued employee contributions receivable                      757,754        -
            Other assets                                                    65,848    5,140,130

                   Total assets                                    $   656,838,519   53,374,840

                   Liabilities and net assets

            Liabilities:
               Vouchers payable                                    $       176,015      542,407
               Accrued liabilities                                       1,714,751        -
               Due to other governments                                      -        6,426,496
               Due to litigants                                              -       14,989,874
               Collections held in trust                                     -       22,203,446
               Amount due to brokers                                     2,302,559        -
               Other liabilities                                             2,692    9,212,617
                   Total liabilities                                     4,196,017   53,374,840

            Net assets:
              Held in trust for pension benefits                       652,642,502        -

                   Total liabilities and net assets                $   656,838,519   53,374,840

            See accompanying notes to financial statements.


                                                              70
                                                                                  Exhibit 9

                     COUNTY OF ALLEGHENY, PENNSYLVANIA
                   Statement of Changes in Fiduciary Net Assets
                               Pension Trust Fund
                         Year Ended December 31, 2009




                                                                  Pension Trust
                                                                      Fund


Additions:
  Contributions:
      Employee                                               $      19,501,312
      Employer                                                      19,256,793

           Total contributions                                      38,758,105


  Investment income:
     Net appreciation in fair value of investments                  88,916,514
     Interest                                                        6,471,510
     Dividends                                                       4,949,273
     Stock loan income                                                  92,879
                                                                  100,430,176
     Less: Investment management fees                               1,471,314


           Total investment gain - net                              98,958,862


  Miscellaneous income                                                 126,669


           Total additions - net                                  137,843,636

Deductions:
  Benefit payments                                                  64,343,528
  Refunds of employee contributions                                  1,794,040
  Salaries, wages and related expenses                                 272,625
  Administrative and miscellaneous expenses                            890,264

           Total deductions                                         67,300,457


Net increase in net assets                                          70,543,179

Net assets at beginning of year                                   582,099,323


Net assets at end of the year                                $    652,642,502


See accompanying notes to financial statements.




                                          71
                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                        Statement of Net Assets
                                            Component Units
                                      December 31 or June 30, 2009




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


Cash and short-term investments (note 3)                           $         18,650,800            75,365,101
Time deposits and other investments (note 3)                                      -                     -
Restricted cash and short-term investments (note 3)                         130,542,842            46,173,816
Due from other governments (note 4)                                          13,232,463            24,767,033
Due from primary government (note 9)                                              -                     -
Accounts receivable (note 4):
  Trade, net of allowance for doubtful accounts                               4,191,270                 -
  Other                                                                       1,382,177             5,631,501
Accrued interest and dividends receivable                                       781,965                 -
Inventory                                                                     1,723,391             8,785,095
Other assets                                                                  5,170,803             3,719,221
Loans receivable, net of allowance for loan losses (note 4)                       -                     -
Capital lease investments (note 3)                                                -                99,586,120
Land (note 5)                                                               137,124,992           105,699,098
Construction in progress (note 5)                                            37,887,453           282,512,639
Buildings and equipment net of accumulated depreciation (note 5)            589,118,476         1,102,964,369

      Total assets                                                 $        939,806,632         1,755,203,993




                                                        72
                                                                               Exhibit 10 (Page 1 of 3)




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



       18,322,096             8,645,193                  6,419,404        6,124,313       133,526,907
        8,244,922                 -                          -                -             8,244,922
       25,482,105            22,711,879                    332,561       17,054,125       242,297,328
          505,925            19,708,870                  1,500,000            -            59,714,291
        8,970,000                 -                          -               61,406         9,031,406

        2,362,616                 -                         17,325            -             6,571,211
          926,900                79,453                 10,957,849          150,962        19,128,842
            -                     -                          -                -               781,965
        1,147,402             5,834,200                      -                6,990        17,497,078
        1,036,051             2,394,611                     50,000          140,580        12,511,266
            -                25,519,284                  3,267,941            -            28,787,225
            -                     -                          -                -            99,586,120
        4,016,466             1,528,300                      -                -           248,368,856
        4,015,022                 -                          -                -           324,415,114
       88,815,633             4,701,847                      -            4,389,356     1,789,989,681

      163,845,138            91,123,637                 22,545,080       27,927,732     3,000,452,212




                                                   73
                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                         Statement of Net Assets
                                             Component Unit
                                       December 31 or June 30, 2009




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

Liabilities:
   Vouchers payable                                         $         11,897,764            26,812,502
   Accrued interest payable                                              415,022                 -
   Accrued payroll                                                         -                16,851,592
   Due to primary government (note 9)                                  1,400,463                 -
   Due to other governments                                                -                     -
   Amount due airlines                                                   362,080                 -
   Accrued liabilities                                                 7,710,940                 -
   Deferred tuition and student deposits                                   -                     -
   Other liabilities                                                   3,831,341             6,010,741
   Deferred revenue:
          Current                                                      5,272,173            46,917,327
           Non-current (note 8)                                       39,818,929             9,638,437
   Reserve for claims and settlements:
          Current                                                           -                8,315,596
          Non-current                                                       -                7,368,317
   Accrued workers' compensation (note 6)                                 220,830                -
   Compensated absences:
          Current                                                           -                    -
          Non-current                                                       -                    -
   General obligation/revenue bonds/notes/
     leases (notes 8 and 14):
          Current                                                     66,420,086            22,935,974
          Non-current                                                435,173,500           390,027,612
   Accrued OPEB liability
          Current                                                         100,551                -
          Non-current                                                     617,063          100,320,377

      Total liabilities                                              573,240,742           635,198,475




                                                  74
                                                                                  Exhibit 10 (Page 2 of 3)




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




        5,494,961             8,026,639                   59,280            258,224         52,549,370
            -                   639,845                    -                  -              1,054,867
        3,846,445                 -                        -                  -             20,698,037
            -                     -                   10,957,849          3,105,551         15,463,863
        3,603,705                 -                        -                  -              3,603,705
            -                     -                        -                  -                362,080
        2,488,509                 -                        -                261,466         10,460,915
        3,506,385                 -                        -                  -              3,506,385
            -                   501,132                    -                115,272         10,458,486

          100,000               364,744                    49,080         1,044,463         53,747,787
           42,793             1,226,390                     -                 -             50,726,549

            -                     -                         -            17,026,649         25,342,245
            -                     -                         -                 -              7,368,317
            -                     -                         -                 -                220,830

        2,908,967                 -                         -                 9,904          2,918,871
            -                     -                         -                 -                  -


        8,299,658             3,124,627                     -                69,885        100,850,230
       53,009,727            35,158,714                     -                 -            913,369,553

            -                     -                         -                 -                100,551
            -                     -                         -                 -            100,937,440

       83,301,150            49,042,091               11,066,209         21,891,414      1,373,740,081




                                                   75
                                              Statement of Net Assets
                                                 Component Units
                                            December 31 or June 30, 2009




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

Net assets (deficit):
  Invested in capital assets, net of related debt                           329,378,831         1,223,972,456
  Restricted for:
    Capital projects                                                           5,624,657                -
    Debt service                                                              60,399,555                -
    Scholarship and tuition funds                                                  -                    -
    Other student funds                                                            -                    -
    Other projects                                                                 -                9,200,000
    Permanently                                                                    -                    -
  Unrestricted net assets (deficit)                                          (28,837,153)        (113,166,938)

       Total net assets                                                     366,565,890         1,120,005,518

       Total liabilities and net assets                            $        939,806,632         1,755,203,993




See accompanying notes to financial statements.




                                                        76
                                                                                 Exhibit 10 (Page 3 of 3)




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



       57,022,438             2,329,887                     -             4,163,931     1,616,867,543

            -                     -                         -                15,255         5,639,912
            -                     -                         -                 -            60,399,555
          339,388                 -                         -                 -               339,388
        2,621,217                 -                         -                 -             2,621,217
        1,024,495            31,140,053                11,063,599           229,503        52,657,650
          769,334                 -                         -                 -               769,334
       18,767,116             8,611,606                   415,272         1,627,629      (112,582,468)

       80,543,988            42,081,546                11,478,871         6,036,318     1,626,712,131

      163,845,138            91,123,637                22,545,080        27,927,732     3,000,452,212




                                                  77
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                      Statement of Activities
                                                         Component Units
                                             Year ended December 31 or June 30, 2009




                                                                                      Program Revenues                                      ________________

                                                                                                                                            Allegheny County
                                                                                                   Operating                                 Airport Authority
                                                                               Charges for        Grants and         Capital Grants &          Year Ended
                                                          Expenses              Services          Contributions      Contributions            December 31


Allegheny County Airport Authority                  $    179,680,735           135,854,111               -              39,985,053               (3,841,571)


Port Authority of Allegheny County                       475,277,886            92,797,932        184,357,990          206,986,209                     -


Community College of Allegheny County
 Education                                               115,447,616            29,033,923         68,943,093                 -                        -
 Auxiliary enterprises                                      7,084,726             7,964,134              -                    -                        -
 Educational Foundation                                     2,031,505                198,970           278,267           1,810,422                     -
  Total Community College                                124,563,847             37,197,027        69,221,360            1,810,422                     -

Redevelopment Authority of Allegheny County
 General government                                           590,750                158,650             -                    -                        -
 Community development                                    19,021,219                 (39,691)      23,159,279                 -                        -
 Lending                                                    3,298,752                678,061             -                    -                        -
 Rental Activity                                            1,163,010                875,766             -                    -                        -
CITB Fund                                                   3,075,563                  -                 -                    -                        -
  Total Redevelopment Authority                           27,149,294              1,672,786        23,159,279                 -                        -


Allegheny County Industrial Development Authority
 Economic opportunity                                          20,040                137,071             -                    -                        -
 Capital Project                                              200,620                  -                 -                    -                        -
 Administrative fund                                          432,331                347,038
                                                                                     235,687           313,823                -                        -
    Total Industrial Development Authority                    652,991                484,109           313,823                -                        -


Nonmajor Component Units                                    8,107,224             1,720,026          5,715,126               33,143                    -


Total Component Units                               $    815,431,977           269,725,991        282,767,578          248,814,827               (3,841,571)


                                                        General Revenues:
                                                          Payment from County                                                           $              -
                                                          Interest and investment earnings                                                        4,298,369
                                                          Net increase (decrease) in the fair value of investments                                    21,930
                                                          Gain (Loss) on sale of capital assets                                                       (3,600)
                                                          Transfer to County                                                                           -
                                                          Capital project transfer                                                                     -
                                                          Intergovenmental transfer                                                                    -
                                                          Miscellaneous income (loss)                                                              (279,277)


                                                             Total general revenues                                                               4,037,422
                                                             Change in net assets                                                                   195,851
                                                        Net Assets beginning of year                                                            366,370,039
                                                        Net Assets end of year                                                          $       366,565,890


See accompanying notes to financial statements.


                                                                          78
                                                                                                                             Exhibit 11




_____________________________Net Revenue (Expense) and Changes in Net Assets________________________________

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


                -                       -                       -                          -                       -            (3,841,571)


           8,864,245                    -                       -                          -                       -            8,864,245



                -                (17,470,600)                   -                          -                       -           (17,470,600)
                -                    879,408                    -                          -                       -              879,408
                -                    256,154                    -                          -                       -              256,154
                -                (16,335,038)                   -                          -                       -           (16,335,038)



                -                       -                   (432,100)                      -                       -             (432,100)
                -                       -                  4,098,369                       -                       -             4,098,369
                -                       -                  (2,620,691)                     -                       -            (2,620,691)
                -                       -                   (287,244)                      -                       -             (287,244)
                -                       -                  (3,075,563)                     -                       -            (3,075,563)
                -                       -                  (2,317,229)                     -                       -            (2,317,229)



                -                       -                       -                      117,031                     -              117,031
                -                       -                       -                     (200,620)                    -             (200,620)
                -                       -                       -                      228,530                     -              228,530
                -                       -                       -                      144,941                     -              144,941


                -                       -                       -                          -                    (638,929)        (638,929)


           8,864,245             (16,335,038)              (2,317,229)                 144,941                  (638,929)      (14,123,581)




          27,668,700              21,400,000               4,855,575                       -                    540,876        54,465,151
          10,019,597                 323,818                 177,704                    16,339                     5,218       14,841,045
                    (398)               -                       -                          -                       -               21,532
                -                       -                       -                    3,597,987                   (30,126)        3,564,261
                -                       -                       -                   (3,397,367)                    -            (3,397,367)
         (27,825,080)                   -                       -                          -                       -           (27,825,080)
                -                       -                       -                    3,000,000                     -             3,000,000
                -                       2,865                515,728                       -                     85,124           324,440


           9,862,819              21,726,683               5,549,007                 3,216,959                  601,092        44,993,982
          18,727,064               5,391,645               3,231,778                 3,361,900                   (37,837)      30,870,401
       1,101,278,454              75,152,343              38,849,768                 8,116,971                 6,074,155     1,595,841,730
       1,120,005,518              80,543,988              42,081,546                11,478,871                 6,036,318     1,626,712,131




                                                                         79
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



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, 2009.

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.




                                               81
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


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 Program 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. An important change, however, is a requirement to add the
  government’s original budget to the current comparison of final budget and actual results.

As required by the accounting principles generally accepted in the United States, these
  financial statements present the primary government and its component units. A




                                              82
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


  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 governments,
  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 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
  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.




                                               83
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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. Veolia
  Transportation Services, Inc. financial statements have not been included in the reporting
  entity because PAT has neither control, financial responsibility, nor accountability for Veolia
  Transportation Services, Inc.

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 approximately $300,000 for 2009. The County also
  provides administrative services to RAAC’s component unit. Administrative fees for the CITB
  are calculated as up to five percent of total revenues received and one percent of each grant
  awarded. As of year end, the administrative fees paid to the County for the CITB totaled
  approximately $108,000.

The Community Infrastructure and Tourism Board Fund (CITB Fund) is a legally separate, non-
  profit component unit of RAAC. Its purpose is to make grants and loans for economic and
  infrastructure development projects to municipalities within the County. Projects are to be
  funded through the Pennsylvania Department of Community and Economic Development




                                                84
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  over a span of 12 years, as apportioned to the County under Act 53 of 2007. Act 53 of 2007
  provides funding for economic development from the Commonwealth of Pennsylvania taxes
  on gaming transactions. Accordingly, the financial statements of CITB Fund have been
  included in the basic financial statements with RAAC. On December 18, 2009, all assets,
  liabilities, and program responsibilities of the CITB were transferred to RAAC.

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
  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 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 annually appropriates a significant
  subsidy to the Conservation District's operations.

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, the Conservation District and Memorial
  Hall are for the year ended December 31, 2009. The reporting periods for PAT and CCAC
  are for the year ended June 30, 2009. Complete and more detailed financial statements for
  all of the individual component units can be obtained from their respective administrative
  offices.



                                               85
     COUNTY OF ALLEGHENY
 Notes to the Financial Statements
 December 31, and June 30, 2009




    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 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




                   86
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



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, 2009 the County's outstanding
  portion of this debt, payable through December 2018, totals $1,777,500 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




                                              87
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



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. Internal
  service fund balances are reported as governmental activities on the statement of net
  assets. The County 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.

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.




                                               88
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


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 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.

  Special Revenue Funds - Account for the proceeds of specific revenue sources (other than
  capital projects) that are legally restricted to specified purposes. The Special Revenue
  Funds consist of the following: Transit Support Fund, Liquid Fuel Tax Fund, County Grants
  Fund and Human Services Grants Fund. Operating activities in the Human Services Grants
  Fund include Behavior Health/Mental Retardation services to eligible citizens.




                                               89
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  County Grants Fund operating activities consist of Public Safety and Heath 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 to be used for the acquisition or
  construction of major capital facilities. The Capital Projects Fund is considered a major fund
  for government-wide reporting purposes.

  Debt Service Fund - Accounts for the accumulation of resources for the payment of principal
  and interest on most general long-term debt.

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:

  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.




                                               90
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



(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 $20,176,481 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, are recorded when
 the fund liability is incurred. Agency Funds do not have a measurement focus.




                                               91
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                              December 31, and June 30, 2009



(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, 2009, is
  composed of the following:
                                                            Other
                                             General     Governmental
                                              Fund          Funds           Total
          Taxes receivable:
           Property taxes:
             Delinquent                 $     805,239        122,733        927,972
             Liened                          6,445,093     2,170,406      8,615,499
               Total taxes                   7,250,332     2,293,139      9,543,471
           Due from other governments        7,259,042            -       7,259,042


           Total allowance              $ 14,509,374       2,293,139     16,802,513



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             $        14,767      4,912,380           -         77,400
       Other receivable                        -            5,000            -           -
       Loans receivable                        -              -         3,774,868     200,000
       Liens receivable                        -              -         1,700,000        -


         Total allowance            $        14,767      4,917,380      5,474,868     277,400


(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.




                                                   92
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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.




                                                93
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                               December 31, and June 30, 2009



(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, 2009.

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

Reserves represent those portions of fund balance not appropriable for expenditure or which
  are legally segregated for specific use. Fund balance designations are established to reflect
  management's tentative plans for financial resource allocation in a future period.

At December 31, 2009 the Other Governmental Funds - Debt Service Fund has a designation
  of $1,923,659 for 2009’s operating budget.

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.

       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.”




                                              94
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



(I) Pending Governmental Accounting Standards Board Pronouncements

GASB has issued Statement No. 51, “Accounting and Financial Reporting for Intangible
  Assets,” effective for periods beginning after June 15, 2009. This statement provides
  guidance regarding whether and when intangible assets should be considered capital assets
  for financial report purposes. The effect of implementation of this statement has not yet
  been determined.

GASB has issued Statement No. 53, “Accounting and Financial Reporting for Derivative
  Instruments”, effective for periods beginning after June 15, 2009. This statement requires
  governmental entities to measure most derivative instruments at fair value as assets or
  liabilities. It also improves disclosure requirements surrounding the entity’s derivative
  instrument activity, its objectives for entering into the derivative instrument, and the
  instrument’s significant terms and risks. The effect of implementation of this statement has
  not yet been determined.

GASB has issued Statement No. 54, “Fund Balance Reporting and Governmental Fund Type
  Definitions”, effective for periods beginning after June 15, 2010. This statement enhances
  the usefulness of fund balance information by providing clearer fund balance classifications
  that can be applied and by clarifying the existing governmental fund type definitions. The
  effect of implementation of this statement has not yet been determined.

GASB has issued Statements No. 58 “Accounting and Financial Reporting for Chapter 9
  Bankruptcies”, effective for periods beginning after June 15, 2009. This statement provides
  accounting and financial reporting guidance for governments that have petitioned for
  protection from creditors by filing for bankruptcy under Chapter 9 for the U.S. Bankruptcy
  Code. The implementation of this statement will have no impact on the County.

(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




                                              95
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  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.

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 28% of total enplaned passengers at PIA in 2009.

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




                                              96
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


  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.

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 & System   5-20
                            Utilities                          10-40
                            Other Assets                       10-30


                                                  97
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                              December 31, and June 30, 2009



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.

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, 2009 are as follows:
            Unrestricted net assets available for operations   $    9,180,880
            Restricted net deficit - Gaming funds                  (11,190,000)
            Restricted net deficit - PFC funds                     (26,828,033)

            Unrestricted net assets
              per Statement of Net Assets - Component Units    $   (28,837,153)

ACAA has incurred Passenger Facility Charges (PFC) reimbursable expenditures in excess of
  PFC revenues as of December 31, 2009. The ACAA has also utilized gaming revenue that
  the ACAA expects to start receiving in 2010. The Gaming and PFC deficit results in a
  reduction of unrestricted net assets.




                                                    98
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009



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.

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. Operating grants and subsidies include only operating grants from the
  indicated sources.

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.



                                               99
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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. Of the total Act 44
  funds received from the State in fiscal 2009, $9.2 million was unspent and considered
  available for fiscal year 2010 and is included in capital grants and contributions revenue on
  the statement of activities.

Because of existing debt agreements, PAT received capital funding under PTAF totaling $40.6
  million to use for debt service. Local matching share required for this funding was $1.4
  million which was provided by the County.

PAT also received $30 million in capital funding under Act 44. Approximately $16 million was
  used for Infrastructure Safety and Renewal Programs and approximately $ 2.7 million was
  used for vehicle overhaul which do not require County matching funds. Approximately
  $11.5 million was used for other capital projects and requires County matching funds of
  approximately $2.3 million which was provided by the County.

In 2009, PAT recognized revenue of $10.6 million related to previously deferred State PTAF
   funds that had been designated for capital purposes, but were borrowed to cover operating
   costs in prior years. The recognition occurred after receiving approval from the State to
   change the purpose restriction.

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.




                                               100
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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.

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.




                                              101
                                     COUNTY OF ALLEGHENY
                                 Notes to the Financial Statements
                                 December 31, and June 30, 2009



Fund/Equity Balances
Of the total net assets of CCAC as of June 30, 2009, the following constraints upon their use
  have been imposed, either externally or internally by action of the CCAC Board of Trustees
  or the Foundation’s Board of Directors, as follows:

     Restricted Net Assets:
        Restricted Student Net Assets:
                Scholarship and tuition funds                           $     339,388
                Student development funds                                   1,129,267
                Tuition equalization                                        1,491,950
        Restricted Foundation Net Assets:
                Other projects                                               1,024,495
                Permanently                                                   769,334


                   Total restricted net assets                          $   4,754,434

     Unrestricted Net Assets:
        CCAC Designated Net Assets:
                Campus building projects                                $    4,863,179
                Reserve for facilities, emergency and other                  6,000,000
                West Hills renovations project                                 18,920
                915 Ridge property                                            771,327
                Auxiliary Services – Bookstore                               3,534,063
                Auxiliary Services – Food Service                             665,291
                Future operations                                             941,107
        Foundation Unrestricted Net Assets                                   1,973,229


                   Total unrestricted net assets                        $   18,767,116



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




                                                    102
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


  deficiency can be funded through the tuition equalization reserve fund. In fiscal 2009,
  student revenues exceeded one-third of the annual operating costs by $1,491,950
  accordingly the tuition equalization reserve was increased to this amount.

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.

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
  reserved 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.

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




                                              103
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  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 and increased by an
  additional $2,000,000 in fiscal 2009. As of June 30, 2009, $6,000,000 has been 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 2009, expenses
  exceeded revenues by $15,689, thereby reducing the designated net assets.

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.

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.




                                              104
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  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

Redevelopment Authority of Allegheny County

Basis of Accounting

The financial statements of RAAC have been prepared 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, 2009, 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 of the current
  loan portfolio and of current economic conditions and such other factors which, in RAAC’s
  judgment, require consideration in estimating loan losses of the various programs.




                                                 105
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


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

During 2009, liens receivable were deemed uncollectable. The entire amount of the liens
  receivable outstanding at December 31, 2009 were fully reserved.

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.

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.

CITB Fund Grant Accounting

Grants are approved on a reimbursement basis. The recipients cannot qualify for the grants
  without first incurring allowable costs. Until allowable costs are incurred, the fund does not
  accrue a liability and, in turn, the recipient does not accrue a receivable.

As of December 31, 2009, the CITB Fund had approved the awarding of grants based on the
  terms provided in the applicant’s applications. The amounts approved and not yet funded
  are approximately $4,090,990. The amounts approved and due to grant recipients that
  have not yet been disbursed as of year-end approximate $437,935, and are reported as
  accounts payable.


                                              106
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



Restatement

Beginning net assets were restated by approximately $1 million to adjust for timing of
recognition of governmental revenue.

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
  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,




                                             107
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  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

ACHI entered into a renewal contract with the County’s Human Services – Division of
 Behavioral Health. Effective January 1, 2009, ACHI 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. The
 additional .05%, over the rate in the original agreement, shall be retained by AHCI and
 designated for approved HealthChoices program enhancements. Total ACHI revenue for
 the year ended December 31, 2009 is $5,214,457. This amount is comprised of gross
 capitation revenues received of $7,503,450 plus interest earned of $26,046, less the
 amount to be repaid to the County of $2,289,223 related to 2009, and the increase in the
 amount of capitation revenue deferred. The change in the deferred balance from
 December 31, 2008, of $25,816 is reflected as a decrease in the payable to the County.

The contract permitted ACHI to defer an amount equal to approximately two months revenue
 as of December 31, 2009 for cash flow purposes. The total deferral amount is $1,042,064
 at December 31, 2009.

Concentrations

ACHI 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 ACHI.

Allegheny County Conservation District

Basis of Accounting

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


                                              108
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



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.

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, 2009 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 2009, SSMH deaccessioned several collection items. A total of $16,072 was received
  for the sale of the deaccessioned items. During 2009, SSMH used $46,198 to cover the
  costs of the display material for the exhibits and a portion was used to cover salaries.




                                              109
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009



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

Adopted Budget

In 2009 general government expenditures exceeded budget by $5,111,047. Since the total
  operating budget was not exceeded, the remedial action taken is to request subsequent
  County Council approval for the necessary appropriation transfers.

(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, 2009 the book value of County cash and short-term investments
  (excluding Trust and Agency funds which will be described separately) was $131,719,964.




                                               110
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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

                  Cash on hand                           $              67,148
                  Checking and savings accounts                     70,626,512
                  Money market checking/savings accounts            67,166,201
                  Pennsylvania Invest                                9,956,856
                  Mutual funds                                              600
                                             Total       $         147,817,317

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.

As of December 31, 2009, $1,250,000 of the County’s bank balance was insured by the
  Federal Depository Insurance Corporation. The remaining bank balance of $136,542,713 is
  uninsured, exposed to custodial credit risk and 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, 2009, 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.




                                                111
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


  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, 2009 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.

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 must 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.

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.



                                               112
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


Agency Fund Deposits and Investments

The County maintains bank accounts for the various escrowed funds. The Office of the County
  Treasurer is responsible for investing a portion of these funds. The various County
  departments invest the rest of the escrowed funds. All the policies described above that
  govern the investments of the County’s other funds also govern the escrowed funds the
  County Treasurer manages.

All investments are considered cash equivalents for presentation on the Statement of Net
   Assets and Combining Statement of Changes in Assets and Liabilities. As of December 31,
   2009 the total book balance for cash and investments was $48,213,084. The bank balance
   of deposits and fair value of investments were as follows:

                  Cash on hand                               $           54,451
                  Checking and savings accounts                      30,137,576
                  Certificates of deposit                            13,547,359
                  Money market savings/checking                       5,048,436
                  Mutual fund                                            478,412
                                             Total               $   49,266,234

As of December 31, 2009, $2,915,629 of the bank balance was insured by the Federal
  Depository Insurance Corporation. The remaining bank balance of $45,817,742 was
  uninsured, exposed to custodial credit risk, and 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.

All investments are considered cash equivalents for presentation on the Statement of Net
   Assets and Combining Statement of Changes in Assets and Liabilities. The maturity dates of
   all investments are less than one year. At December 31, 2009, the mutual fund (BlackRock
   Liquidity Fund FedFund Dollar) has a fair value of $478,412 and is rated AAA 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, 2009. The
  book value for the investments approximates fair value due to the requirement for these




                                              113
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                     December 31, and June 30, 2009


   funds to follow the guidance of Financial Accounting Standards Boards, Statement of
   Accounting Standards No. 157, 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 2007
  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.

As of December 31, 2009 the Retirement Board had the following cash and investments in its
  Pension Trust Fund:
                                                                       Investment Maturities from December 31, 2009
               Cash or                           Fair         Less than           1-10             10-20         More than
          Investment Type                    Market Value       1 year           Years             Years          20 years
Government & related agency debt         $      15,148,512   $ 1,055,446    $   12,695,614    $ 1,150,724      $      246,728
Fannie Mae and Freddie Mac debt                 28,826,877           -          13,356,283      8,451,901           7,018,693
Corporate certificates of deposit                   50,500           -              50,500            -                   -
Corporate debt                                  54,800,334       148,272        46,427,777      2,271,402           5,952,883
Non-U.S. gov't and corporate debt               10,639,161       576,763         9,264,076        645,470             152,852
   Total debt securities                       109,465,384     1,780,481        81,794,250     12,519,497          13,371,156

Cash and cash equivalents                        9,215,521
Fixed income mutual funds                       84,367,721
U.S. common and preferred stock                110,198,296
ADR's                                            2,337,747
S&P 500 index fund                              62,317,779
Non-U.S. stocks and equity mutal funds         151,641,644
Hedge funds                                      2,328,458
Real estate investment trusts                   38,241,598
Commodities fund                                19,791,796
Private equity/venture capital                  62,018,260
  Total cash and other investments             542,458,820
   Total cash and investments
    reported on Pension Trust Fund
    Statement of Net Assets              $     651,924,204


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.



                                                             114
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009



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 Investment
  Managers must hold bonds rated at least B- or equivalent at the time of purchase and
  should normally maintain an average market-weighted quality of B.

The Pension Trust Fund’s December 31, 2009 investments in corporate bonds have received
  the following ratings:
                        Corporate                                              Non-U.S.
Standard & Poor's   Certificates of       FNMA &            Corporate     Gov't & Corporate
     Rating              Deposit          FHLMC               Bonds              Debt
      AAA           $          -      $    28,826,877     $ 3,415,349      $     1,000,000
       AA                      -                   -         3,976,258           1,053,786
       A                       -                   -        17,233,067           2,598,580
      BBB                   50,500                 -         6,166,080             660,473
       BB                      -                   -         2,885,348                    -
       B                       -                   -         9,599,070           1,282,161
      CCC                      -                   -         7,398,305             111,600
       CC                      -                   -                  -            125,051
       D                       -                   -           283,575                    -
   Not Rated                   -                   -         3,843,282           3,807,510
     Totals         $       50,500    $    28,826,877     $ 54,800,334     $    10,639,161

                        Corporate                                              Non-U.S.
    Moody's         Certificates of       FNMA &            Corporate     Gov't & Corporate
     Rating              Deposit          FHLMC               Bonds             Debt
      Aaa           $          -      $    28,826,877     $ 4,915,724      $       720,283
       Aa                      -                   -         4,469,822             687,080
       A                       -                   -        16,619,541             912,322
      Baa                   50,500                 -         5,345,491             846,732
       Ba                      -                   -         1,341,438                    -
       B                       -                   -        11,027,691           1,406,361
      Caa                      -                   -         7,486,136             236,650
       Ca                      -                   -           618,781                    -
   Not Rated                   -                   -         2,975,710           5,829,733
     Totals         $       50,500    $    28,826,877     $ 54,800,334     $    10,639,161



                                            115
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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, 2009, the book value of the Pension Trust Fund's cash and deposits was
  $2,140,359 and the bank balance was $2,350,499. Of the $2,350,499 bank balance,
  $250,000 is covered by federal depository insurance. $2,100,499 is uninsured and subject
  to custodial credit risk and is collateralized in accordance with Act 74. An additional
  $7,075,162 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
  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 2009 are as follows:
                                 Asset Allocation          Target
                         Diversified Equity                 52.5%
                         Fixed-income                       30.0%
                         Real Estate                        10.0%
                         Venture Capital/ Private Equity     5.0%
                         Commodities                          2.5%
                         Total                             100.0%

Concentration of Credit Risk – The Retirement Board’s investment guidelines do not set total
  fund diversification guidelines but 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.



                                                    116
                                       COUNTY OF ALLEGHENY
                                   Notes to the Financial Statements
                                   December 31, and June 30, 2009


As of December 31, 2009 three investments exceeded 5% of the net assets of the Fund – the
  Pyramis Select International Mutual Fund had a market value of $45,059,117; the Oaktree
  Capital Management High Yield Fixed Income Mutual Fund had a market value of
  $39,992,224; and the S&P 500 Index Fund had a market value of $62,317,779.

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 — is the risk that changes in exchange rates will adversely affect the fair
  value of an investment. At December 31, 2009, the Pension Trust Fund held $1,533 in
  foreign cash, $50,500 in non-US dollar Certificate of Deposit, $30,600,863 in common stock
  investments and $6,640,453 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, 2009 ACAA had cash in
  bank of $83,838,490, of this amount $83,588,490 was exposed to custodial credit risk.
  Included in that amount is $60,871,287 of restricted cash for use as required by the




                                                     117
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  Authority Trust Indentures.

Investments, Unrestricted – Investments held by ACAA for discretionary future projects and
  obligations of ACAA are $19,468,965 as of December 31, 2009.

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, 2009 are presented on the following page.




                                             118
              COUNTY OF ALLEGHENY
          Notes to the Financial Statements
          December 31, and June 30, 2009


Revenue Bond Funds:
1988 Indenture
         Rebate - Principal Fund                       $       102,772
         Rebate - Income Fund                                1,287,160
1990 Indenture
         Rebate - Principal Fund                              527,179
         Rebate - Income Fund                                 177,254
1992 Indenture
         Capital Addition Number 2 Project Account            557,302
1993 Indenture
         Midfield Completion Construction Fund                614,975
         Midfield Claims Construction Fund                     88,941
1997 Indenture
         1997 A and B Clearing Fund                            140,384
         1997 B Interest Account                                     -
         1997 B Principal Account                                    1
         1997 A1 & A2 Interest Account                           5,706
         1997 A1 & A2 Principal Account                          5,543
         1997 A1 & A2 Debt Service Reserve                  36,303,129
         1997 Capital Project MII9-97 Construction Fund        349,603
         1997 Capital Project MII2-98 Construction Fund        515,557
         1997 Parking Garage Construction Fund               1,044,008
1999 Indenture
         1999 Debt Service Reserve                           5,857,468
         1999 Debt Service Fund                                118,021
2001 Subordinate Lien Indenture
         Series A & B 2001 Sub Lien Bond                            1
2001 Fixed Rate Indenture
         2001 A & B Debt Service Fund                                1
         2001 A & B Debt Service Reserve Fund                8,838,863
         2001 A & B Rebate Fund                                845,103
2002 Fixed Rate Indenture
         2002 A & B Clearing Fund                                  183
         2002 A & B Debt Service Fund                                1
         2002 A & B Debt Service Reserve Fund                9,286,402
         2002 A & B ACAP Clearing Fund                             145
2007 Indenture
         2007 A & B Debt Service Fund                            1,571
         2007 A & B Clearing Fund                               41,746
Revenue Bond Funds Total                                    66,709,019
Capital Funds
Airport Development Fund                                     4,058,651
Airport System Capital Fund - Discretionary 1                3,359,740
Airport System Capital Fund - Discretionary 2                5,811,091
Airport System Capital Fund - Restricted 1                   4,592,540
Airport System Capital Fund - Restricted 2                   7,408,382
Passenger Facility Charge Fund                                 980,732
Artwork - Grant                                                 26,923
Ground Transportation Fund                                   1,252,490
Capital Development Funds                                      988,010
Equipment and Capital Outlay Fund                            1,430,148
Prefunding Reserve Fund                                     32,163,666
Tax Increment Funding Reserve Fund                             459,395
Hangar Loan Fund                                               483,890
Capital Funds Total                                         63,015,658
Total Revenue Bonds and Capital Funds                 $    129,724,677




                                  119
                                      COUNTY OF ALLEGHENY
                                  Notes to the Financial Statements
                                  December 31, and June 30, 2009


As of December 31, 2009, 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 MTG Corportation          4,213,579                 6.4%        3/2/2010      A1        P-1
 Federal Home Loan MTG Corportation             15,989                 0.0%       6/14/2010     A1+        P-1
 Irish Permanent Treasury CPDNGeneral E      4,229,966                 6.6%       6/15/2010    BBB+         A2
Short -term investments                      8,459,534

Blackrock Federal Trust Fund                 5,010,690                 7.6%           *         AAA
Mellon - Blackrock Federal Fund 30:
 Institutional 30                           52,059,805                 79.4%          *         AAA        Aaa
                                            57,070,495

Total                                  $    65,530,029                100.0%

* The underlying investments have maturities of less than 90 days.


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, 2008, $51,935,777 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




                                                      120
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                               December 31, and June 30, 2009


  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
  recorded as deferred interest income and is being amortized into income over the term of
  the agreements. The unearned amount at December 31, 2009 was $3,506,019.

              As shown on Financial Statement
                        Cash and short-term investments              $ 18,650,800
                        Restricted cash and short-term investments    130,542,842
                                                                      149,193,642
             As shown in the notes
                        Cash                                           83,663,613
                        Mutual Funds                                   65,530,029
                                                                     $ 149,193,642



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, 2009
  that were in violation of either State statutes or the policies of PAT.




                                                 121
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                              December 31, and June 30, 2009



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

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

Custodial Credit Risk – Custodial credit risk is that in the event of a bank failure, PAT’s deposits
  may not be returned to it. As of June 30, 2009, $41,108,498 of PAT’s bank balance of
  $42,137,741 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 $38,014,456 as of June 30,
  2009.

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
  $9,925,671 and $53,219,314 invested in the external investment Pool (INVEST) at June 30,
  2009.

At June 30, 2009, PAT held the following investment balances:
                                                                 Maturity in years
                                                 Fair          Less             1-5
                                             market value   than 1 year        years
               U.S. Treasuries
                  Interest Only Strips   $    43,108,379       100,931     43,007,448
               FHLB                           10,018,996    10,018,996          -
               Guaranteed Investment
                  Contracts                   56,469,327     7,955,216     48,514,111
               Mutual Funds                   20,294,565    20,294,565          -
               INVEST                         53,219,314    53,219,314          -
               Total                     $ 183,110,581      91,589,022     91,521,559

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, 2009, PAT’s investment in the state investment pool
  (INVEST), mutual funds, and FHLB were rated AAA by Standard & Poor’s. Additionally, at
  June 30, 2009, PAT had a guaranteed investment contract that was unrated and relates to
  lease transactions.




                                                    122
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009



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, 2009, $3,775,480 of the bank balance was covered by
  federal depository insurance and $41,279,627 of CCAC’s bank balance of $45,055, 107 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.

Investment—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, 2009, CCAC’s entire bank balance of
   $5,031,410 was exposed to custodial credit risk, which is collateralized in accordance with
   Act 72 of the Pennsylvania State Legislature whish requires the institution to pool collateral
   held by an approved custodian in the institutions’ name.

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.



                                               123
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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

Redevelopment Authority of Allegheny County

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

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

Deposits – Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank
  failure, RAAC’s deposits may not be returned to it. RAAC does not have a formal deposit
  policy for custodial credit risk. As of December 31, 2009, $17,848,398 of RAAC’s bank
  balance of $18,948,398 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, 2009, the carrying amounts of
  RAAC’s deposits were $18,531,435.

Investments –In addition to the deposits noted above, RAAC holds short-term investments of
  mutual funds of $12,825,637.

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, 2009, RAAC had investments of $12,825,637 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, 2009, $5,273,404 of ACIDA’s bank
  balance of $5,773,404 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




                                               124
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


  custodian in the institutions name. As of December 31, 2009, the carrying amounts of
  ACIDA’s deposits were $5,762,975.

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, 2009, ACIDA investments were held in the Pennsylvania Local
  Government Investment Trust (PLGIT) and the First American Government Obligation Fund.
  All investments in the external investment pool, which are not SEC registered, are subject to
  the oversight by the Commonwealth of Pennsylvania. The fair value of these cash
  equivalents was $979,049 at December 31, 2009, 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, 2009 ACIDA’s investments in PLGIT were rated AAA by Standard & Poor’s.

The PLGIT investments and the investments in the First American Government Obligation
  Funds 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, 2009, $22,043,547 of AHCI’s bank balance of $22,293,547 was




                                               125
                                      COUNTY OF ALLEGHENY
                                  Notes to the Financial Statements
                                  December 31, and June 30, 2009


  exposed to custodial credit risk, which is collateralized in accordance with Act 72. As of
  December 31, 2009, the carrying amount of AHCI’s deposits was $22,268,181.

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,
  2009, book balance and bank balance of all deposits totaled $295,763 and $304,403,
  respectively. $262,826 of the $304,403 bank balance was FDIC insured.

Allegheny County Conservation District

Cash and cash equivalents are held in a bank which carries FDIC insurance. At December 31,
  2009, book balance and bank balance of all deposits totaled $298,540 and $254,854,
  respectively. $250,000 of the bank balance was FDIC insured.

In addition, the District has $270,780 at December 31, 2009. in a short term external
  investment pool (INVEST). The District’s investments in INVEST were rated AAAm by
  Standard & Poor’s.

(4) Property and Sales Tax Revenue and Receivables

Receivables at December 31, 2009 consist of the following:
                                                                                                 Due from
 Governmental Activities                    Property Taxes Receivable            Sales Tax        Other
                                      Delinquent                    Lien        Receivable     Governments

 General Fund                     $      8,174,276                 14,714,025      6,999,908      107,771,821
 County Grants Fund                          -                          -              -           22,773,454
 Human Service Grant Fund                    -                          -              -           41,056,595
 Capital Projects Fund                       -                          -              -            7,613,102
 Other Governmental Funds                1,245,915                  5,585,736          -                -
 Total Governmental Receivables          9,420,191                 20,299,761      6,999,908      179,214,972

 Less: allowances (Note ID)                927,972                  8,615,499         -             7,259,042

 Net Governmental Receivables     $      8,492,219                 11,684,262      6,999,908      171,955,930


The reconciliations (Exhibits 3A and 4A) of Governmental Funds to the government-wide
  statements contain information related to revenue recognition.




                                                      126
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                           December 31, and June 30, 2009



(A) 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, 2009 was $58,194,680,704.

The tax rate to finance general governmental services, other than debt service requirements,
  for the year ended December 31, 2009 was $.40697 per $100. The tax rate to finance debt
  service requirements for the year ended December 31, 2009 was $.06203 per $100.

Real property taxes levied are recorded as receivables, net of amounts estimated to be
  uncollectible. At December 31, 2009, the allowances for uncollectible delinquent and liened
  property taxes aggregated $927,972 and $8,615,499 respectively.

Real property taxes for 2009 were levied on January 1, 2009, with a final due date of
  April 30, 2009. A 2% discount was granted on remittances prior to March 31, 2009. In
  2009, tax liens were filed for taxes due April 30, 2008.

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
   2009 was $39,172,875.




                                             127
                                          COUNTY OF ALLEGHENY
                                      Notes to the Financial Statements
                                      December 31, and June 30, 2009



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              $     13,232,463                  -     4,206,037          1,382,177      781,965               -
 PAT                     24,767,033                  -             -          5,631,501          -                 -
 CCAC                      505,925          8,970,000      7,274,996            931,900          -                 -
 RAAC                    19,708,870                  -             -             79,453          -           29,294,152
 ACIDA                    1,500,000                  -           94,725      10,957,849          -            3,467,941
 AHCI                             -             61,406             -            103,295          -                 -
 SSMH                             -                  -             -             47,667          -                 -
                         59,714,291         9,031,406     11,575,758         19,133,842      781,965         32,762,093

Less: allowances                  -                  -     5,004,547              5,000          -            3,974,868
Total              $     59,714,291         9,031,406      6,571,211         19,128,842      781,965         28,787,225



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, 2009:

                                                                                 Allowance              Net
                                                                Receivable        for Loan           Receivable
                                                                 Balance            Losses            Balance
        Economic Development Fund (EDF)                    $ 20,865,574          3,669,524           17,196,050
        Home Improvement Loan Program (HILP)                  3,365,289            105,344            3,259,945
        Section 108 Loan Fund                                 4,656,623               -               4,656,623
        Other loan programs                                     406,666               -                 406,666
                                                           $ 29,294,152           3,774,868          25,519,284




                                                         128
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009



Allegheny County Industrial Development Authority

The due from other governments of $1.5 million is due from RAAC. It is related to a grant
  agreement 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.

ACIDA has certain deferred loans, which are presented at a net zero value, as they are
  only repayable if certain specific conditions exist. These loans are fully reserved at the time
  of issue. The reserve is reversed and income is recognized in the event that the loans are
  repaid, or when the amount of repayment is determinable and reasonably assured.

The following is a summary of commercial loans outstanding, not including deferred loans that
  are recorded at a net zero value, at December 31, 2009:
                                                                   Allowance        Net
                                                      Receivable    for Loan     Receivable
               Program                                 Balance        Losses      Balance

    Small Business Distressed Communities         $      743,564       -            743,564
    Development Action Assistance Program              2,305,048     200,000      2,105,048
    Allegheny County EDA Program                         416,666       -            416,666
    MEC Loans Program                                      2,663       -              2,663

                                                  $    3,467,941     200,000      3,267,941

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.

ACIDA uses the allowance method in providing for loan losses. Accordingly, potential loan
  losses are recorded to the allowance and provided for as bad debt expense when the
  collection is doubtful. Conversely, when management is of the opinion that previously
  reserved loans are collectible, the current year’s provision is reduced.




                                               129
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                     December 31, and June 30, 2009



(5) Capital Assets

The following is a summary of the changes in capital assets for the year ended December 31,
2009:

                                             Balance                                            Balance
                                         January 1, 2009         Increases    Decreases    December 31, 2009
Capital Assets, not
 being depreciated:

  Land                               $        27,443,691               -       3,070,538         24,373,153
  Construction in progress                    47,319,696         28,296,040   26,879,981         48,735,755
Total capital assets,
  not being depreciated                       74,763,387         28,296,040   29,950,519         73,108,908

Capital Assets, being depreciated:

 Land Improvements                             8,192,901               -            -             8,192,901
 Buildings                                   359,888,367          8,052,793    5,204,484        362,736,676
 Buildings - Capital Lease                          -             7,678,839         -             7,678,839
 Buildings - Leasehold Improvements                 -            20,584,760         -            20,584,760
 Infrastructure                              389,380,705          1,444,490         -           390,825,195
 Furniture and other equipment               101,411,530         11,149,439   31,868,007         80,692,962

Total capital assets,
  being depreciated                          858,873,503         48,910,321   37,072,491        870,711,333

Less accumulated depreciation for:

 Land Improvements                             5,321,073            288,440         -             5,609,513
 Buildings                                   147,647,580          7,412,190      867,415        154,192,355
 Infrastructure                              124,488,008          8,014,112         -           132,502,120
 Furniture and other equipment                61,643,993          4,613,815   31,868,007         34,389,801

Total accumulated depreciation               339,100,654         20,328,557   32,735,422        326,693,789

Net depreciated assets                       519,772,849         28,581,764    4,337,069        544,017,544

Net capital assets                   $       594,536,236         56,877,804   34,287,588        617,126,452


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




                                                           130
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                           December 31, and June 30, 2009


Depreciation was charged to governmental functions as follows:
                            General government       $   3,129,398
                            Public safety                4,310,088
                            Public works                 9,790,546
                            Health and welfare           1,724,773
                            Culture and recreation       1,194,487
                            Economic development           179,265
                               Total                 $ 20,328,557


The County has active construction projects as of December 31, 2009. The projects include
 road reconstruction, 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                              $ 3,271,435
       Campbell’s Run Road                                               904,850
       Miscellaneous Bridge Construction                                 882,055
       Annual Road & Facilities Improvement                              823,120
       Brownsville Road at Broughton                                     592,463
       Greensburg Pike Bridge                                            591,052
       Settler’s Cabin Interchange                                       584,165
       Miscellaneous Bridge Design                                       526,256

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.




                                              131
                                             COUNTY OF ALLEGHENY
                                         Notes to the Financial Statements
                                         December 31, and June 30, 2009



Component Units - Capital Assets

Allegheny County Airport Authority
Capital activity for the year ended December 31, 2008 is as follows:
                                             Balance                                                        Balance
                                         January 1, 2009    Increases     Decreases    Transfers        December 31, 2009
Capital assets, not being depreciated:
Land and site development            $     129,999,492            -            -           7,125,500         137,124,992
Total capital assets,
 not being depreciated                     129,999,492            -            -           7,125,500         137,124,992
Capital assets, being depreciated:
Terminal buildings                         686,757,059           -            1,513        7,673,074         694,428,620
Runways & taxiways                         459,093,386           -           45,150        8,822,189         467,870,425
Parking Garage / Lots / Etc                 80,466,538           -             -           2,604,810          83,071,348
Hangars                                     40,956,484           -             -           1,569,094          42,525,578
Other Structures                           154,331,585           -           21,321          947,986         155,258,250
Roadways                                    60,562,059           -               (1)       1,296,426          61,858,486
Mobil and Other Equipment                   49,454,811           -           36,000        1,566,930          50,985,741
Computer/Security Equip & Systems           35,572,242           -            1,609       14,579,035          50,149,668
Utilities                                   46,322,826           -             -                -             46,322,826
Other Assets                                23,552,424           -             -          (2,722,428)         20,829,996
Construction-in-progress                    40,592,588     40,757,481          -         (43,462,616)         37,887,453
Total capital assets,
 being depreciated                       1,677,662,002     40,757,481       105,592       (7,125,500)      1,711,188,391
Less accumulated depreciation for:
Terminal buildings                         454,367,324     27,102,768          -                   -         481,470,092
Runways & taxiways                         259,308,305     19,406,049        45,150                -         278,669,204
Parking Garage / Lots / Etc                 39,426,818      2,600,327          -                   -          42,027,145
Hangars                                     32,994,608      1,027,008          -                   -          34,021,616
Other Structures                            70,811,176      5,795,774          -                   -          76,606,950
Roadways                                    47,749,401      2,822,128          -                   -          50,571,529
Mobil and Other Equipment                   36,859,062      2,602,427        32,400                -          39,429,089
Computer/Security Equip & Systems            9,729,841      3,113,204          -                   -          12,843,045
Utilities                                   26,602,898      1,730,684          -                   -          28,333,582
Other Assets                                 6,771,610        902,513          -                   -           7,674,123
Construction-in-progress                    30,650,531      1,885,556          -                   -          32,536,087
Total accumulated
 depreciation                            1,015,271,574     68,988,438        77,550                -       1,084,182,462
Net depreciated assets                     662,390,428     (28,230,957)      28,042                -         627,005,929
Net capital assets                   $     792,389,920     (28,230,957)      28,042                -         764,130,921

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, 2009, ACAA had equipment purchase and construction commitments of
  approximately $28.5 million.


                                                               132
                                     COUNTY OF ALLEGHENY
                                 Notes to the Financial Statements
                                 December 31, and June 30, 2009



Port Authority of Allegheny County
The following is a summary of changes in capital assets for the year ended June 30, 2009:
                                            Balance                                           Balance
                                          July 1, 2008          Increases     Decreases    June 30, 2009

Capital assets, not being
depreciated:

Land                                 $    100,685,362            5,013,736          -        105,699,098
Construction in progress                  236,497,163           73,840,557    27,825,081     282,512,639

Total capital assets,
 not being depreciated                    337,182,525           78,854,293    27,825,081     388,211,737

Capital assets, being depreciated:

Buildings                                 218,250,600             115,383           -        218,365,983
Transportation
 equipment                                630,839,563           53,395,130    25,167,645     659,067,048
Track, roadway, and
 subway stations                         1,292,595,205           1,083,209       12,091    1,293,666,323
Other property,
 equipment, and assets                     94,048,583             835,935       114,899       94,769,619

Total capital assets,
 being depreciated                       2,235,733,951          55,429,657    25,294,635   2,265,868,973

Less accumulated
 depreciation for:

Buildings                                 107,354,311            7,206,451          -        114,560,762
Transportation
 equipment                                332,896,683           46,516,782    25,039,557     354,373,908
Track, roadway, and
 subway stations                          577,218,910           45,291,631       34,171      622,476,370
Other property,
 equipment, and assets                     67,098,196            4,510,266      114,898       71,493,564

Total accumulated
 depreciation                            1,084,568,100         103,525,130    25,188,626   1,162,904,604

Net depreciated
 assets                                  1,151,165,851         (48,095,473)     106,009    1,102,964,369

Net capital assets                   $ 1,488,348,376            30,758,820    27,931,090   1,491,176,106


During the year, $27.8 million related to the Maglev project was removed from projects in
 progress after a determination was made that administrative responsibility of the project
 would be transferred from PAT to the Commonwealth. Accordingly, the deletion is reflected
 as capital project transfer on the statement of activities.

                                                         133
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                     December 31, and June 30, 2009



Community College of Allegheny County

The following is a summary of changes in capital assets for the year ended June 30, 2009:
                                                    Balance                                   Balance
                                                  July 1, 2008   Increases     Decreases   June 30, 2009
Capital assets, not being depreciated:
CIP                                           $           -       4,015,022        -           4,015,022
Land                                                 4,016,466         -           -           4,016,466
                                                     4,016,466    4,015,022        -           8,031,488
Capital assets, being depreciated:

Buildings                                         146,642,181     1,101,546        -        147,743,727
Land improvements                                   5,996,518        66,970        -          6,063,488
Infrastructures                                     2,694,113       239,271        -          2,933,384
Leasehold improvements                                685,732          -           -            685,732
Equipment & A.V. equipment                          7,219,584       339,365     143,609       7,415,340
Grant related equipment                             2,578,594       277,215        -          2,855,809
Furniture & fixtures                                1,657,875       150,691      10,853       1,797,713
Computer equipment                                 12,019,152       339,284     592,292      11,766,144
Computer software                                   3,671,766        (3,186)       -          3,668,580
Library books                                       3,591,309       210,729        -          3,802,038
Microforms                                            121,767          -           -            121,767
Operating system software                           1,184,873      (250,555)       -            934,318
Total capital assets,
 being depreciated                                188,063,464     2,471,330     746,754     189,788,040
Less accumulated depreciation for:
Buildings                                           66,674,078    2,802,228        -          69,476,306
Land improvements                                    3,775,905      244,501        -           4,020,406
Infrastructures                                        618,864       95,861        -             714,725
Leasehold improvements                                 454,853       27,429        -             482,282
Equipment & A.V. equipment                           5,480,975      418,468     136,304        5,763,139
Grant related equipment                              1,942,369      203,385        -           2,145,754
Furniture & fixtures                                 1,056,165      105,675      10,542        1,151,298
Computer equipment                                   9,799,077    1,294,472     572,438       10,521,111
Computer software                                    3,606,319      (54,226)       -           3,552,093
Library books                                        3,067,042       84,306        -           3,151,348
Total accumulated
 depreciated                                        96,475,647    5,222,099     719,284     100,978,462
Net depreciated assets                              91,587,817   (2,750,769)     27,470       88,809,578
  Net capital assets                                95,604,283                                96,841,066
Foundation assets, being depreciated:
Property and equipment                                  36,143        4,072     (20,920)          19,295
Less: accumulated depreciation                          32,142        2,018      20,920           13,240
Net depreciated assets                                   4,001        2,054        -               6,055

  Net capital assets with foundation assets   $     95,608,284                                96,847,121


                                                       134
                                     COUNTY OF ALLEGHENY
                                 Notes to the Financial Statements
                                 December 31, and June 30, 2009



Redevelopment Authority of Allegheny County

The following is a summary of changes in capital assets for the year ended December 31,
2009:
                                             Balance                                    Balance
                                         January 1, 2009   Increases   Decreases   December 31, 2009

Capital Assets, not being
depreciated:

Land                                 $        1,528,300        -          -               1,528,300


Capital Assets, being depreciated:

Buildings and tenant improvements             4,575,609     913,614       -               5,489,223

Less: accumulated depreciation                  474,295     313,081       -                 787,376

 Net depreciated assets                      4,101,314      600,533       -               4,701,847

Net capital assets                   $       5,629,614      600,533       -               6,230,147



Allegheny HealthChoices, Inc.

The following is a summary of changes in capital assets for the year ended December 31,
2009:
                                             Balance                                    Balance
                                         January 1, 2009   Increases   Decreases   December 31, 2009
Capital Assets, being depreciated:

Furniture & Equipment                $         597,017      178,746       -                 775,763

Less: accumulated depreciation                 447,250      128,145       -                 575,395

 Net depreciated assets              $         149,767       50,601       -                 200,368


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
  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, 2009 is
  $92,531.




                                                     135
                                         COUNTY OF ALLEGHENY
                                     Notes to the Financial Statements
                                     December 31, and June 30, 2009



Allegheny County Conservation District
The following is a summary of changes in capital assets for the year ended December 31,
2009:
                                                  Balance                                     Balance
                                               January 1, 2009   Increases   Decreases   December 31, 2009

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                                               (11,377)     (5,858)        -                (17,235)
Furniture & Equipment                                 (21,781)        -           -                (21,781)
Leasehold improvements                                (30,704)       (729)        -                (31,433)
 Total accumulated depreciation                       (63,862)     (6,587)        -                (70,449)

 Net depreciated assets                    $          31,644       (6,587)        -                     25,057



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,
2009:

                                                   Balance                                    Balance
                                               January 1, 2009   Increases   Decreases   December 31, 2009


Capital Assets, being depreciated:

Equipment                                  $         274,009        1,466        -                275,475
Leasehold improvements                             5,599,453        9,612        -              5,609,065


Total capital assets, being depreciated            5,873,462       11,078        -              5,884,540
Less accumulated depreciation for:

Equipment                                            222,641       10,760        -                233,401
Leasehold improvements                             1,242,511      244,697        -              1,487,208

Total accumulated depreciation                     1,465,152      255,457        -              1,720,609

  Net depreciated assets                   $       4,408,310     (244,379)       -              4,163,931




                                                       136
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009



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 as
 signed 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.

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, 2009 of $7,949,236 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.




                                               137
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



Changes in the various claims liability for the years ended December 31, 2009 and 2008 were:
                                                                                  Liability
                                            Current Year                         Balance as
                           Liability         Claims and                              of
                        Balance as of        Changes in            Claim         December
                          January 1           Estimates          Payments            31
  Risk Management fund (Dental and Settlements)
             2009   $         224,066              1,677,624        1,787,745        113,945
             2008   $           9,855               2,169,920       1,955,709        224,066
  Government-wide Financial Statement (General, Automobile, and Public Officials Liability)
             2009             274,231               170,625          249,854         195,002
             2008             245,711               281,637          253,117         274,231
  Government-wide Financial Statement (Worker's Compensation Claims)
             2009            7,412,652             5,017,885        4,790,248       7,640,289
             2008            7,323,273             5,002,316        4,912,937       7,412,652
  Total all Funds and government-wide financial statement (Dental and Settlements, Workers'
    Compensation, General, Automobile and Public Officials Liabilities)
             2009   $        7,910,949             6,866,134        6,827,847       7,949,236
             2008   $        7,578,839             7,453,873        7,121,763       7,910,949

The non-current portion of unpaid workers’ compensation claims amounted to $2,512,728 as
  of December 31, 2009, 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
  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.




                                             138
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                              December 31, and June 30, 2009



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.

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.

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.

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, 2009 and 2008 were:

                         Liability         Current Year
                      Balance as of   Claims and Changes In     Claim    Liability Balance as
                       January 1             Estimates        Payments    of December 31

          2009    $       140,072                 111,984      31,226              220,830
          2008            182,237                   -          42,165              140,072



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.




                                                 139
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                               December 31, and June 30, 2009


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, 2009.
  The reserve balance is approximately $10.5 million at June 30, 2009.

Changes in the claims liability for the years ended June 30, 2009 and 2008 were:

                            Liability         Current Year
                         Balance as of   Claims and Changes In     Claim     Liability Balance
                             July 1             Estimates        Payments     as of June 30

            2009     $    16,111,419               2,397,007     2,824,513      15,683,913
            2008          14,039,496               4,627,858     2,555,935      16,111,419

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.

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.



                                                  140
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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. The
        amount remaining as a liability at June 30, 2009, is $300,567.

        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, 2009, is $2,072,360.

        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 intends to appeal 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.

        The fieldwork for the State audit for the 2005 fiscal year has been completed, and the
        preliminary results indicate audit disallowances amounting to $542,917, which are
        subject to future appeal. The audit report has not been issued, but a payable to the
        State and a reduction of revenue by this amount has been recognized in fiscal year
        2007.




                                              141
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009




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

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%.

Interest rate on this RLOC is 2.73% at December 31, 2009. The amount outstanding at
  December 31, 2009 was $27,000,000.




                                              142
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                December 31, and June 30, 2009



(8) Long-Term Debt

  General obligation bonds payable at December 31, 2009, 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        20,101,658
      C-50          Variable (1)       2000         2027               37,345,000        37,300,000
      C-51          Variable (1)       2000         2027               14,455,000        14,455,000
      C-53          4.35 - 5.25        2000         2020               16,790,000        14,360,000
      C-55          1.70 - 5.375       2002         2017               59,705,000        59,675,000
      IDA           1.95 - 5.00        2002         2029               19,870,000        11,605,000
      C-56          1.25 - 5.00        2003         2016              104,096,051        33,525,000
      C-57          3.00 - 5.00        2005         2023              170,835,000       170,460,000
      SEA           1.95 - 5.00        2005         2018                4,172,500         1,777,500
      C-58          Variable (2)       2006         2016               30,000,000        22,345,000
     C-59A          3.68 - 3.89        2007         2016               28,730,000        25,814,504
     C-59B          Indexed (3)        2007         2026               43,945,000        39,485,496
      C-60          3.66 - 4.19        2007         2032               56,625,000        56,615,000
      C-61          3.00 - 5.00        2008         2032               49,220,000        49,220,000
      C-62          2.50 - 5.00        2009         2029               80,000,000        80,000,000
      C-63          2.50 - 5.00        2009         2014               27,500,000        27,500,000
   General obligation (G.O.) bonds                                  $ 748,265,589       664,239,158
   Premium/Discounts and other adjustments                                               24,994,972
   Debt assumed by component units                                                         (108,808)

   Total long-term debt                                                                 689,125,322

   Less: current maturities                                                              41,349,965

                                                                                      $ 647,775,357

   (1) At December 31, 2009, the rate was 2.60%; the maximum for this issue is 10%.
   (2) At December 31, 2009, the rate was 2.60%; the maximum for this issue is 12%.
   (3) The synthetic fixed rate for this series is 4.1355%.



Included in the $664,239,158 of outstanding general obligation bonds is $21,925,000 of
  Capital Appreciation Bonds, which is net of $1,823,342 of unamortized discount.




                                                  143
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


The following is a summary of the changes in general obligation bonds payable of the County
  during 2009:
                                                                Governmental
                                                                   Funds
                G.O. Bonds payable at January 1, 2009       $    648,304,547
                Additions:
                  General Obligation Bonds Series C-62            80,000,000
                  General Obligation Bonds Series C-63            27,500,000
                  Accretion adjustment                             1,408,860
                   Premium adjustment on new issues                1,766,257
                   Discount adjustment on new issues                (833,340)
                                                                 109,841,777

                Deletions:
                   Refinanced debt                                28,395,000
                   Retirements                                    38,187,582
                   Amortization of premium and
                       adjustments                                 2,438,420
                Total deductions                                  69,021,002

                G.O. Bonds payable at December 31, 2009          689,125,322

                Less: current maturities                          41,349,965

                                                            $    647,775,357


The 2002 Allegheny County Industrial Development Authority (ACIDA) Bond Series A and B are
  reported as County debt on the Statement of Net Assets.

On December 30, 2002 ACIDA issued Guaranteed Revenue Bonds Series 2002A and 2002B of
 $33,620,000 and $31,380,000 respectively, to finance construction of a new building. A
 portion of the proceeds of the 2002B bonds along with the cash and investments remaining
 from the issuance of 1999 bonds were used to advance refund the 1999 Bonds. The 1999
 Bonds were refunded primarily to match the timing of debt service requirements with the
 expected timing of cash receipts related to the revised project. As of December 31, 2008,
 the 1999 Bonds payable balance was $12,940,380. On August 13, 2004, ACIDA purchased
 an office building and began to operate it. During 2009 ACIDA entered into an agreement
 to sell the building. At the time of the sale, the building and land had a book value of
 $7,359,862 and was sold for $10,957,849, a gain of $3,597,987. The sale closed on
 December 31, 2009, and the proceeds are shown as a receivable on ACIDA financial
 statements at December 31, 2009. All proceeds from the sale are due to Allegheny County
 and are shown as Due to Primary Government on ACIDA financial statements and a Due
 from Component Unit on the County’s financial statements.

During 2004, the ACIDA Board decided to expand the purpose of the above 2002 bonds to
  allow for the funds to be spent on a variety of County capital programs including the
  purchase of a building for the County.




                                                 144
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                           December 31, and June 30, 2009



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.

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.


                                            145
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


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 based on 20% times 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.

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. 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.




                                              146
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


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, 2009, $150,980,000 of bonds and other long-term debt obligations
  outstanding are considered defeased.

The annual debt service requirements to amortize all general obligation bonds outstanding as
  of December 31, 2009, are as follows:
                  Year Ending
                  December 31           Principal        Interest         Total

             2010                  $    41,387,500     29,865,031     71,252,531
             2011                       39,142,500     27,526,261     66,668,761
             2012                       40,402,500     26,330,035     66,732,535
             2013                       41,960,000     24,825,349     66,785,349
             2014                       44,052,500     22,841,212     66,893,712
             2015-2019                 184,577,500     84,990,182    269,567,682
             2020-2024                  99,275,000     53,178,456    152,453,456
             2025-2029                 125,040,000     30,033,326    155,073,326
             2030-2034                  50,225,000      5,160,500     55,385,500
                                       666,062,500    304,750,352    970,812,852

             Accretion                  (1,823,342)          -        (1,823,342)
             Debt assumed by
              component units             (108,808)       (16,923)      (125,731)
             Premium on issues          38,619,054           -        38,619,054
             Amortization              (12,832,409)          -       (12,832,409)
             Discount on issue            (833,340)          -          (833,340)
             Amortization                   41,667           -            41,667

                                   $   689,125,322    304,733,429    993,858,751

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. Due to needed
  renovations, the Medical Examiner’s Office was not able to move into the building until 2009.
  Although monthly lease payments were made beginning in 2006, the capital lease was not
  effective until 2009. The balance due as of December 31, 2009 is $6,766,399.




                                              147
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                December 31, and June 30, 2009



Future minimum payments required under the capital lease obligations are as follows:


                      Year Ending
                      December 31         Principal        Interest           Total
                         2010           $ 214,742        $ 195,351        $ 410,093
                         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
                       2015-2019          1,415,100          635,365         2,050,465
                       2020-2024          1,721,685          328,780         2,050,465
                       2025-2026          2,466,507        2,273,633         4,740,140
                                        $ 6,766,400      $ 4,125,135      $ 10,891,535



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, 2009:


                             Balance at                                           Balance at          Current
                          January 1, 2009     Increase         Decrease       December 31, 2009       Portion

Accrued sick
 benefits (Note 1G)   $       6,826,294        734,028          (362,762)                7,197,560    327,596
Accrued workers'
 compensation                 7,412,652      5,017,885        (4,790,248)                7,640,289   5,127,561

Total                 $      14,238,946       5,751,913       (5,153,010)            14,837,849      5,455,157




At December 31, 2009, the County has no significant potential arbitrage liability.




                                                      148
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                               December 31, and June 30, 2009



Component Units - Long-Term Debt

Allegheny County Airport Authority
General obligation and revenue bonds payable at December 31, 2009, 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                                                           8,675,000
    Airport Revenue Refunding Bonds:
           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             27,980,000
           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            27,980,000
           Series B 2001, interest rate of 5.00%, due through 2022                     45,500,000
           Series 1999, interest rates of 4.75% to 6.125%, due through 2018            35,660,000
           Series 1997A-1, interest rates of 5.00% to 5.75%, due through 2016          99,350,000
    General Obligation Refunding Bonds:
           Series C-56, County of Allegheny, interest rates of 1.25% to 5.00%,
             due through 2016                                                             108,808
    Net unamortized premium                                                            11,425,635
                                                                                          463,019,443
          Commonwealth of Pa Department of Transportation Infrastructure
            Bank Aviation Loan, interest rate 4.125%, due through 2017                        809,465
          Industry drive loan, interest rate of 4.7%, due through 2028                      1,362,585
          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
          Moon Township Municipal Authority loan, interest rate of 3%,
            due through 2013                                                                  400,000
          Hangar loan, variable interest rate, due through 2028                             1,170,000
          Northfield tax increment financing, interest rate of 6.5%, due through 2019       2,709,883
          Gaming grant anticipation loan, variable interest rate, due through 2015         20,000,000
                                                                                           33,048,651
    Total debt                                                                            496,068,094
    Deferred amount on refundings                                                         (21,474,508)
    Less: current maturities                                                              (39,420,086)
    Total long term debt                                                                $ 435,173,500



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
 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


                                                   149
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  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 December 1, 1999, ACAA issued Airport Revenue Refunding Bonds, Series 1999 (the 1999
 Refunding Bonds) in the amount of $63,130,000. The proceeds of the 1999 Refunding
 Bonds, together with investment income thereon and other funds, were used to pay a
 portion of the costs of currently refunding $61,350,000 of the outstanding 1990 Revenue
 Bonds . The refunding of the 1990 Revenue Bonds resulted in a loss of defeasance of
 $2,615,341. The amount is being amortized over the life of the 1999 Refunding Bonds.
 These bonds are secured on a parity basis with $681,590,000 in aggregate principal amount
 of promissory notes to be issued under the trust indenture by ACAA to PNC Bank, N.A., as
 successor in interest to National City Bank of Pennsylvania, as paying agent and trustee for
 the holders of all outstanding airport revenue bonds which were issued by the County and
 the debt service obligations that have been assumed by ACAA.

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.




                                             150
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                           December 31, and June 30, 2009


  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
 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.




                                            151
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


The Refunding Bonds are limited obligations of the ACAA. The principal, interest and
  premium, if any, on the Refunding Bonds are payable by the ACAA solely from net revenue
  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 Refunding Bonds. The
  Refunding bonds carry interest based on a variable auction rate basis. The interest rate is
  determined by an auction every 35 days, where the lowest interest rate bids that were
  received are accepted, up to a maximum rate of 15% per annum (Maximum Rate). Offers
  to sell the Refunding Bonds are only accepted, to the extent that offers to purchase at rates
  below the Maximum Rate were received, any offers to sell the Refunding Bonds in excess
  thereof are rejected (insufficient clearing bids). Neither the ACAA, the Refunding Bonds
  trustee, nor the auction agent shall have any liability in the event of Insufficient Clearing
  Bids.

In connection with the issuance of the Airport Revenue Bonds, ACAA agreed to certain
  restrictive rates and other covenants as defined in the ordinances. Additionally, the net
  revenues (defined as operating and other revenues after certain adjustments minus the
  operation and maintenance expenses) and any unexpended bond proceeds were pledged to
  secure the payment of the principal and interest on the Airport Revenue Bonds.

The Airport Revenue Bonds provide for both optional and mandatory redemption of certain
  series of the debt prior to scheduled maturities.

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, 2009 were $1,484,629. The ACAA repaid
  $50,493 in 2009 for total repayments of $122,044. The repayment terms are $9,652 per
  month on a twenty year term expiring in 2027.

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, 2009, RAAC disbursed




                                             152
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  $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 generated by the project.

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 $86,865 in 2009 for total
  payments of $190,535. 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.

Moon Township Municipal Authority Loan (MTMA) – On September 1, 2007, the ACAA entered
  into a loan agreement with the Moon Township Municipal Authority to provide a $400,000
  loan for the purpose of completing the Cherrington Parkway extension and the related
  extension of water and sanitary wastewater pipelines. Terms of this loan are 5 years with
  annual interest only payments ($12,000) due August 1, 2009, 2010, 2011, and 2012.
  Repayment of the principal and final interest payment is due (total $412,000) on August 1,
  2013.

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. The ACAA repaid $65,000 in 2009 .

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




                                              153
                                          COUNTY OF ALLEGHENY
                                      Notes to the Financial Statements
                                      December 31, and June 30, 2009


  improvements related to the Northfield site. As of December 31, 2009 the amount borrowed
  was $2,709,883 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 limited to the tax revenues 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
 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, 2009 was 3.68%.

The annual debt service requirements of long-term debt and net swap payments assuming the
  current interest rates remain the same for the term of the debt and swaps, are as follows:
Year Ended December 31                    Principal             Interest          Swaps, Net*                Total


             2010                 $      39,420,086             24,888,360            (737,363)           63,571,083
             2011                        45,567,610             22,893,596            (681,524)           67,779,682
             2012                        47,722,064             20,655,197            (623,801)           67,753,460
             2013                        50,416,965             18,273,123            (564,169)           68,125,919
             2014                        52,297,110             15,784,272            (502,285)           67,579,097
         2015-2019                      219,743,630             37,142,105         (1,504,727)           255,381,008
         2020-2024                       28,425,192              3,554,403            (191,278)           31,788,317
         2025-2029                        1,049,802                 85,168                 -                1,134,970


                                  $     484,642,459          143,276,224           (4,805,147)           623,113,536

* The i nteres t a nd net s wa p pa yments ha ve been es ti ma ted a s noted a bove, s uch es ti ma ted
  va l ues a re s ubject to uncertai nty a nd, therefore, a ny di ffer from the va l ues tha t wi l l be pa i d
  i n the future a nd s uch di fferences coul d be ma teri a l .




                                                          154
                                       COUNTY OF ALLEGHENY
                                   Notes to the Financial Statements
                                   December 31, and June 30, 2009


The following is a summary of changes in long-term liabilities for ACAA for the year ended
  December 31, 2009:
                                            Balance at                                       Balance at       Current
                                         January 1, 2009    Additions       Reductions   December 31, 2009    Portion
Bonds payable:
 Revenue bonds payable               $     478,961,632           -          37,416,697         441,544,935
 Industry Drive Loan                         1,408,049          5,029           50,493           1,362,585
 PA Department of Transportation loan          896,330           -              86,865             809,465
 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 Loa         400,000           -                -                400,000
 Hangar Loan                                 1,235,000           -              65,000           1,170,000
 Northfield tax increment financing               -         2,709,883             -              2,709,883
 Gaming grant anticipation loan                   -        20,000,000             -             20,000,000
Other long-term liability                      140,072         80,758             -                220,830
Advance airline fundings                    32,204,743           -              41,077          32,163,666
Accrued post employment benefits               798,942         15,426           96,754             717,614
Deferred revenues                            9,834,761           -           1,089,749           8,745,012
Total                               $      532,476,247     22,811,096       38,846,635         516,440,708   40,509,835



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. 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 rates ranging from $6.235/kWh
  to $6.94/kWh. The contract is in effect until December 1, 2011, and includes most of ACAA
  forecasted electricity usage.

Port Authority of Allegheny County

Long-term obligations of PAT consist of the following at June 30, 2009:
                             Special Revenue Transportation Bonds:
                                Unpaid principal                        $       323,649,672
                                Unamortized bond discount                           805,466
                                Deferred amount on refunding                    (11,077,672)
                                Capital lease agreements                         60,717,792
                                Deferred interest payable capital lease          38,868,328

                             Total long-term debt                               412,963,586
                             Less current maturities:
                                Bonds                                            20,063,885
                                Leases                                            2,872,089

                                                                        $       390,027,612




                                                           155
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                           December 31, and June 30, 2009


On July 14, 1999, PAT issued $71,960,000 of Subordinate Lien Special Revenue Transportation
 Bonds, Series of 1999 (the 1999 Sub Bonds). The proceeds from the sale of the 1999 Sub
 Bonds were used primarily to acquire 200 mass transit buses. Further, the proceeds may
 also be used to make other capital additions and improvements, fund the Debt Service
 Reserve Fund related to the bonds, and pay for the cost of issuing the bonds. The bonds
 were repaid in full during the fiscal year 2009.

Interest on the 1999 Sub Bonds is payable semiannually on June 1 and December 1,
  commencing December 1, 1999. Interest rates range from 4.5 to 5.5% throughout the term
  of the bonds.

Amortization of the bond premium of $1,592,387 and the bond issuance costs of $703,579 will
 be recognized over the ten-year term of the bonds. At June 30, 2009 all of the bond
 premium and issuance costs had been amortized.

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
  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, 2009, $4,693,928 has been amortized. During 2009, the balance of the refunded 1999
  bonds of $225,000,000 was repaid in full from the irrevocable trust account.

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, 2009,
 $465,710 of the bond premium and $359,508 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.




                                             156
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                              December 31, and June 30, 2009


During fiscal year 2003, PAT entered into an agreement with Koch Financial Corporation
  (Koch) 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 Koch Bonds are 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 Koch Bonds were issued at a premium of $6,010,768 which is being amortized over the
  ten year term of the bonds. At June 30, 2009, $4,106,185 of the Koch Bonds premium has
  been amortized.

The following is a summary of PAT’s changes in bond transactions for the year ended June 30,
  2009:
                                                                 Amortization/
                                                 Balance at      Payments and           Balance at
                                                July 1, 2008      Retirements         June 30, 2009
          Series of 1999 Sub Bonds          $     11,935,000      (11,935,000)              -
          Series of 2001 Bonds                   245,485,000         (995,000)        244,490,000
          Koch Bonds                              91,421,369      (12,261,697)         79,159,672
                                                348,841,369       (25,191,697)        323,649,672
          Bond discount and
            premium                                1,607,770          (802,304)           805,466
          Deferred amount
            on refunding                        (11,640,943)           563,271         (11,077,672)
          Net outstanding                       338,808,196       (25,430,730)        313,377,466
          Less current amounts:
            Series of 2001 Bonds                                                        (7,150,000)
            Koch Bonds                                                                 (12,913,885)
            Total current bonds payable                                                (20,063,885)

            Total long term bonds payable                                         $   293,313,581

The annual debt service requirements related to the bonds are as follows:
             Year Ending June 30            Principal           Interest              Total

                    2010             $    20,063,885           16,589,415          36,653,300
                    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
                  2015-2019               65,839,019           47,626,601         113,465,620
                  2020-2024               66,970,000           31,779,738          98,749,738
                  2025-2029               85,500,000           13,241,500          98,741,500

                     Total           $ 323,649,672            164,222,464         487,872,136




                                                        157
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


Restricted assets include approximately $20.4 million of cash invested in a debt service reserve
 fund restricted for debt service on the above bonds.

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
  $56,469,327, which is guaranteed by AIG. Additionally, PAT has treasury securities in the
  amount of $43,116,793 at June 30, 2009 that are restricted for lease payments. Interest
  only payments began in fiscal year 2002 and interest and principal payments began in fiscal
  year 2005. Interest payable in conjunction with this lease is $38,868,328 at June 30, 2009.

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 18, 2009) 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
  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 CC and Caa3 (as of November 18, 2009). 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
 18, 2009, the equity value of the underlying investments remains sufficient to pay the




                                              158
                                       COUNTY OF ALLEGHENY
                                   Notes to the Financial Statements
                                   December 31, and June 30, 2009


  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              Interest
                                    2010          $     2,872,089               7,138,380
                                    2011               41,348,503              38,246,013
                                    2012               16,497,200                 486,857
                          Minimum lease payment $      60,717,792              45,871,250


Community College of Allegheny County
Long-term obligations of CCAC consist of the following at June 30, 2009:
                                                                            Final             Long-Term
              Interest Rate                                             Maturity Date          Obligation

        Bonds payable - SPSBA:

        2.0   - 3.5%   2003                        Jan 15                      2012       $    6,095,000
        2.0   - 4.8%   2004                        July 15                     2013           11,525,000
        2.0   - 4.8%   2nd Series 2004             July 15                     2025           17,865,000
        3.3   - 4.4%   2005                        July 15                     2025            4,995,000
        3.3   - 4.4%   2008                       June 15                      2027           17,935,000
                       Total bonds payable                                                    58,415,000
        Loans payable:

        4.42%, $25,310 paid monthly                                            2011       $      580,333
        2.25%, $22,025 paid monthly                                            2013            1,010,094
                       Total bonds payable                                                     1,590,427
        Capitalized equipment leases:

        4.42%, $35,721 paid monthly                                            2010              621,016
        4.55%, $20,332 paid monthly                                            2012              682,942
                       Total capitalized leases                                                1,303,958

                                                                                              61,309,385
        Less: current portion                                                                  8,299,658
        Total long-term debt                                                              $   53,009,727

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.




                                                       159
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



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
  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 $2,754,497 each year
  through 2011-2012. Total annual debt service from 2013-2027 is $1,134,437.

The unexpended bond proceeds of $25,064,869 at June 30, 2009 that are available to finance
  the completion of the projects included in the Series of 2004 revenue bonds, the Second
  Series 2004 revenue bonds, the Series 2005 and Series of 2008 revenue bonds are included
  in the noncurrent cash and cash equivalents.

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, 2009 is $1,010,094.




                                              160
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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, 2009 is $580,333.

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, 2009, is $682,942.

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%
  interest rate, and is payable in monthly installments of $35,721 through December 2010.
  The balance due as of June 30, 2009, is $621,016.

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, 2009, are as follows:
  Year Ending                       Capitalized         Operating    Operating
   June 30          SPSBA Bonds      Leases              Leases       Leases          Total

     2010       $     9,340,729         568,018            672,628      587,835     11,169,210
     2011             9,336,075         568,018            458,304      563,835     10,926,232
     2012             7,883,723         264,305            243,979      208,910      8,600,917
     2013             6,582,955         264,304               -          99,000      6,946,259
     2014             4,964,665            -                  -          16,500      4,981,165
   2015-2019         15,174,819            -                  -            -        15,174,819
   2020-2024         15,156,741            -                  -            -        15,156,741
   2025-2027          7,207,216            -                  -            -         7,207,216

     Total           75,646,923       1,664,645          1,374,911    1,476,080     80,162,559
Less: Portion
 representing
 interest            17,231,923           74,218            70,953         -        17,377,094
                $    58,415,000       1,590,427          1,303,958    1,476,080     62,785,465




                                                  161
                                              COUNTY OF ALLEGHENY
                                          Notes to the Financial Statements
                                          December 31, and June 30, 2009


Long-term liability changes are summarized below for the year ended June 30, 2009:
                                           Beginning                                                           Ending
                                           Balance at                                                         Balance at      Current
                                          July 1, 2008               Additions              Reductions      June 30, 2009     Portion

Long-term obligations               $      68,287,491                 1,030,151              8,008,257        61,309,385      8,299,658
Advances from Federal sponsors                  60,764                      -                   17,971              42,793
Accrued compensated absences                3,235,461                       -                  326,494            2,908,967   2,908,967

Total long-term liabilities         $      71,583,716                 1,030,151              8,352,722        64,261,145


The composition of the compensated absences liability was as follows as of June 30, 2009:

                                        Accrued vacation leave             $                1,596,897
                                        Banked credits                                      1,285,074
                                        Early retirement incentive program                     26,996

                                                                                      $     2,908,967


Redevelopment Authority of Allegheny County

The annual debt service requirements related to bonds and mortgage are as follows:
                              Maturity                   Principal               Interest                 Total

                                2010            $    3,124,627                   2,250,385                5,375,012
                                2011                 3,312,114                   2,060,717                5,372,831
                                2012                 3,515,679                   1,858,529                5,374,208
                                2013                 3,730,416                   1,642,773                5,373,189
                                2014                 3,961,424                   1,407,674                5,369,098
                              2015-2019             13,550,027                   3,670,114               17,220,141
                              2020-2024              1,885,600                    410,776                 2,296,376

                                Total            $ 33,079,887               13,300,968                   46,380,855



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.




                                                                      162
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


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 effective interest
 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 effective interest
  method. 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, 2009,
  the interest rate is 8.31% and the outstanding principal balance is $4,044,887.

The following is a summary of changes in long-term debt for RAAC during 2009:
                          Balance - beginning of year             $ 36,014,176
                          Issuances                                      -
                          Retirements                               (2,934,289)

                                                                    33,079,887

                          Less current portion                      (3,124,627)

                                                                    29,955,260

                          Unamortized original issuance premium       157,929
                          Unamortized loss on refunding               (954,475)

                          Long-term debt at year -end             $ 29,158,714


As of December 31, 2009, RAAC had outstanding commitments of $10,889,557 related to
  loans which have not yet been fully drawn upon. This amount includes commitments to
  related parties as further discussed in Note 13.

RAAC guaranteed up to $1,000,000 on behalf of a third party to assist in enabling the third
  party in obtaining a loan from a financial institution. Additionally, RAAC has guaranteed up
  to $1,000,000 as collateral for a third party line of credit. These guarantees relate to the




                                                 163
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  same third party. The loan guarantee requires RAAC to set aside the guarantee amount in a
  separate bank account as collateral. These funds are included in restricted investments at
  year-end.

The collateral will only be drawn in the event that the borrower defaults on their loan. The
  term of the guarantee was through February1, 2010. As of February 1, 2010, the collateral
  has not been drawn on. RAAC has loans receivable outstanding at December 31, 2009 of
  $1,034,192, which brings RAAC’s exposure for this entity to $3,034,192.

As of December 31, 2009, the Community Infrastructure and Tourism Board Fund has
  approved approximately $4 million of grants based on the terms provided in the applicants’
  applications. The amount approved have not yet been disbursed as of year end. Funding
  will be provided to the grantees once the grantees have incurred eligible expenses.

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, 2009 was
  approximately $96 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 a single borrower for specific economic
  development projects. As of December 31, 2009, $4,656,623 of loans had been made from
  these proceeds. The agreement was extended to permit disbursement of these proceeds as
  loans through September 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 .25656%. Interest
  payments made by RAAC during 2009 were approximately $90,000. 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.

The borrower 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. The
  borrower will begin making principal payments in 2011 to correspond with RAAC’s obligation
  to HUD.




                                             164
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


The Authority is responsible for repayment to HUD of the $6 million loan. As of September 30,
  2010 any undisbursed loan funds are required to be used to provide for debt service. RAAC
  has obtained security interest in the borrowers land and improvements that are being
  funded with the Section 108 loan funds.

The annual debt services requirements related to Section 108 loan are as follows:
                  Maturity          Principal         Interest       Total

                    2010        $       -               27,394          27,394
                    2011             201,000            27,164         228,164
                    2012             210,000            26,236         236,236
                    2013             218,000            25,268         243,268
                    2014             227,000            24,263         251,263
                 2015-2019          1,277,000          104,766       1,381,766
                 2020-2024          1,553,000           72,875       1,625,875
                    2025            2,314,000             7,924      2,321,924
                    Total       $   6,000,000          315,890       6,315,890


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 single borrower 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 ration not less than $1 of grant funds for
  every $3 of loan funds disbursed. As of December 31, 2009 RAAC had not received any of
  these grant funds from HUD, nor had RAAC made any grant disbursements. RAAC has until
  September 30, 2010 to drawn down and disburse the BEDI grant funds or the grant will
  expire.

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, 2009, is
  approximately $467.131 million.




                                                165
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009



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 $180,000 for the year ended
  December 31, 2009.

The following minimum rental payments are required under the lease for annual periods
  beyond December 31, 2009:
                                 Year Ending
                                 December 31         Total

                                     2010       $ 160,164
                                     2011         160,164
                                     2012         159,021
                                     2013         158,640
                                     2014          39,660
                                                $ 677,649


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% and 4.25% at
 December 31, 2009. The balances outstanding under the lines of credit at December 31,
 2009 were $69,885 and $0 for operating purposes, respectively.

(9) Interfund Receivables, Payables and Transfers

Interfund receivables, payables and transfers at December 31, 2009 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            $   26,882,759    71,999,854    12,120,704         (10,825,561)
          County Grants           8,044,405     5,572,227     6,863,250          (1,546,179)
          Human Service Grants    3,212,313     3,742,892     5,719,302            (210,812)
          Capital Projects       60,469,980     5,717,510     9,910,779         (15,511,757)
          Non-Major:
          Debt Service              138,108    11,515,123    18,019,791         (11,127,646)
          Transportation              -             -              -            (13,411,871)
          Other:
          Internal Service          464,362       664,321             -                     -

                             $   99,211,927    99,211,927    52,633,826         (52,633,826)




                                               166
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


Transfers are eliminated in the government-wide statement of activities.

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 2009, the
  majority of the amount due to the Capital Projects Fund from the General Fund was 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 Transfer Out represents interfund interdepartmental contract payments to
  the General Fund.

The Capital Projects’ Transfer Out represents a transfer of interest earnings to the General
  Fund to reimburse capital equipment purchases made during the year and to pay debt
  service expenditures.

The Debt Service Transfer Out represents a transfer to the General Fund of over-allocated tax
  revenue. The transferred tax revenue resulted from receipt of gaming revenue from the
  Pennsylvania Gaming Economic Development and Tourism Fund to repay the County’s public
  investment in PIA.

The Transportation 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      $       1,400,463            1,400,463
                        RAAC                    -                    -
                        ACIDA            10,957,849           10,957,849
                        AHCI              3,105,551            3,105,551

                                         Due to             Due from
                                      Component Unit   Primary Government
                        CCAC      $       3,960,000            8,970,000
                        RAAC                    -                    -
                        AHCI                 61,406               61,406




                                               167
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                              December 31, and June 30, 2009



(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, 2009, the Retirement System membership consisted of:

                      Retirees and beneficiaries
                         receiving benefits                        4,454
                      Terminated employees entitled to benefits
                         but not yet receiving them                 159

                                                                   4,613
                      Current employees:
                         Vested:
                            Non-uniform                            3,599
                            Police and Fire                          145
                            Others                                   463
                         Nonvested:
                            Non-uniform                            2,833
                            Police and Fire                          103
                            Others                                   200

                                                                   7,343

                      Total                                       11,956



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




                                                 168
                                  COUNTY OF ALLEGHENY
                              Notes to the Financial Statements
                              December 31, and June 30, 2009


  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, 2009, 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 2009 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 (asset) for the current year is as
  follows:
               Annual required contribution                          $ 63,232,000
               Interest (8%) on net pension obligation (asset)          3,062,677
               Adjustment to annual required contribution               (3,342,439)
               Annual pension cost                                     62,952,238
               Contributions made                                      19,256,793
               Increase in net pension obligation                      43,695,445
               Net pension obligation (asset) beginning of year        27,842,515
               Net pension obligation (asset) end of year            $ 71,537,960




                                                    169
                                        COUNTY OF ALLEGHENY
                                    Notes to the Financial Statements
                                    December 31, and June 30, 2009


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, 2009, 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, closed fifteen-year amortization period; (2) a rate of
  return on the investment of present and future assets of 8.0% (11% for 2009) 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 equal to 1.0% of total contributions, and; 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, 2009      $     62,952,238                   30.6 %                   71,537,960
                  December 31, 2008            28,662,118                   64.8                     27,842,515
                  December 31, 2007            26,548,600                    69.4                    17,757,629

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, 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%)
January 1, 2007       757,476          915,208          (157,732)           82.8        291,731              (54.1)



As noted above, certain pension information and calculations are based upon an actuarial
  valuation performed as of January 1, 2009. The next actuarial valuation will be performed
  as of January 1, 2010 and will take into account subsequent increases in the market value of
  investments being held in the plan. 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.

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




                                                         170
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


  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, 2009, 71 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 1%. The future
  estimated liability of the healthcare allowance is approximately $701,108 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
  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.




                                               171
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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. In addition, the
  plans provide for the cost sharing of healthcare benefits as provided to active employees.
  The cost sharing of healthcare benefits is being provided from PATs operating revenues.

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 ATU Plans contribute 4.5% of pension earnings to their
  respective plan. IBEW employees currently contribute 4% of pension earnings to the IBEW
  plan. 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, 2008, 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 3.5%; (5) actuarial
  cost method entry age normal; (6) amortization method level dollar monthly payments; (7)
  asset valuation method smoothed market; (8) remaining amortization period of 3.5 years for
  the IBEW Plan, 22 years for the ATU Plan and 23 years for the Non-Rep Plan, and the ATU
  Plan has 2005 Actuarial loss of 13 years and the ATU Plan and the Non-Rep Plan has 2006
  Actuarial loss of 14 years. Assumption change at 1/1/08 is 25 years for ATU Plan and Non-
  Rep Plan.




                                               172
                                     COUNTY OF ALLEGHENY
                                 Notes to the Financial Statements
                                 December 31, and June 30, 2009


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, 2009      $       9,734,310          146%           (3,991,305)
                 June 30, 2008            12,859,942           116%             481,296
                 June 30, 2007            10,158,412           155%           2,577,801

                                                   IBEW Plan
                                                                            Net Pension
                   Fiscal Year          Annual Pension     Percentage of      (Asset)
                     Ending               Cost (APC)      APC Contributed    Obligation
                 June 30, 2009               255,013           515%            (517,433)
                 June 30, 2008              1,098,927          60%              540,401
                 June 30, 2007               495,687           110%             102,434


                                                 Non-Rep Plan
                                                                            Net Pension
                   Fiscal Year          Annual Pension     Percentage of      (Asset)
                     Ending               Cost (APC)      APC Contributed    Obligation

                 June 30, 2009              3,675,660          124%            (444,416)
                 June 30, 2008              4,544,609          90%              431,923
                 June 30, 2007              3,759,721          106%              (30,690)




                                                    173
                                          COUNTY OF ALLEGHENY
                                      Notes to the Financial Statements
                                      December 31, and June 30, 2009


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,   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
   January   1,   2004   721,160     690,477        (30,683)          104.4    125,550              (24.4)

                                                        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,   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)
   January   1,   2004   20,274       19,483          (791)           104.1     3,091              (25.6)

                                                       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,   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
   January   1,   2004   66,038      89,304         23,266             73.9    16,089              144.6




                                                                174
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


                                                                                    NonRep
                                                        ATU Plan      IBEW Plan      Plan
 Annual required contribution                       $    9,743,365      396,218     3,681,210
 Interest on net pension obligation                         38,504       43,232        34,554
 Adjustment to annual required contribution                (47,559)    (184,437)      (40,104)
 Annual pension cost                                     9,734,310      255,013     3,675,660
 Contributions made                                     14,206,911    1,312,847     4,551,998
 Increase (decrease) in net pension obligation          (4,472,601)   (1,057,834)    (876,338)
 Net pension obligation (asset) beginning of year          481,296       540,401      431,923
 Net pension obligation (asset) end of year         $ (3,991,305)      (517,433)     (444,415)

The next actuarial valuation, which was performed as of January 1, 2009, has taken into
  account subsequent declines in the market value of investments being held in the plans.
  These market declines have negatively impacted the funding status of the plans and
  significantly increased the funding requirements of the plans beginning in fiscal year 2010.

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% 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, 2009, were $4,068,021 from CCAC and $2,178,254 from employees.

PSERS is a governmental, cost-sharing, multiple-employer defined benefit public employee
  retirement system in which about 3% 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:




                                              175
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


                           Public School Employees’ Retirement System
                           P. O. Box 125
                           Harrisburg, PA 17108 - 0125

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, 2009, is 2.38% of annual covered payroll for
  each.

CCAC and the Commonwealth’s contributions to PSERS for the year ending June 30, 2009, was
  $78,820 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, 2009, was 3.29% of annual covered payroll, is an
  actuarially determined rate. CCAC contributions to SERS for the years ending June 30,
  2009, was $24,192, 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

                                              176
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


  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
  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, 3,712 retirees meet those
  eligibility requirements. The County's General Fund expenditures for all postemployment life
  insurance benefits were $702,704 ($759,586 net of retiree contributions of $56,882) in
  2009.

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, 2009, 79 retired police officers are covered by health insurance. The County’s
 expenditures for health insurance benefits were $656,247 ($807,134 net of retiree
 contributions of $150,887) in 2009. The costs associated with this benefit are paid by the
 County’s General Fund and are not prefunded.

At December 31, 2009, 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 $104,592 in 2009.
  The costs associated with this benefit are paid by the County’s General Fund and are not
  prefunded.



                                              177
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009



At December 31, 2009, 14 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 $35,711 in 2009. 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, 176 retirees are
  enrolled in the major medical insurance program. The County's expenses for major medical
  insurance benefits were $217,245 ($406,075, net of retiree contributions of $188,830) in
  2009.

C. Funding Policy

These benefits are expensed when incurred and are financed on pay-as-you-go basis. For
  2009, the County incurred $1,716,499 for post employment benefits other than pension
  benefits. Retiree’s receiving benefits contributed $396,599 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 for the year, the amount
  actually contributed, and changes in the County’s net OPEB obligation:
                      Annual required contribution                 $    7,770,311
                      Interest on net OPEB obligation                    277,871
                      Adjustment to annual required contribution         (386,361)
                      Annual OPEB cost                                  7,661,821
                      Contributions made                               (1,716,499)
                      Increase in net OPEB obligation                   5,945,322
                      Net OPEB obligation – beginning of year           6,946,765
                      Net OPEB obligation – end of year            $   12,892,087




                                                     178
                                       COUNTY OF ALLEGHENY
                                   Notes to the Financial Statements
                                   December 31, and June 30, 2009


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, 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. The ARC was computed using the following actuarial assumptions: (1)
  actuarial cost method projected unit credit; (2) amortization method level dollar; (3)
  amortization period 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%       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.

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




                                                      179
                                   COUNTY OF ALLEGHENY
                               Notes to the Financial Statements
                               December 31, and June 30, 2009


  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 a period not to exceed thirty
 years. An actuarial valuation was performed for 2007 thus the Net OPEB obligation is an
 estimate for 2009. An actuarial calculation will be performed again for 2010. The following
 table shows the components of the ACAA’s annual OPEB cost for the year, the amount
 actuarially contributed to the plan, and the changes in the net OPEB obligation:
        Annual required contribution                                 $            39,466
        Interest on net OPEB obligation                                            4,827
        Adjustment to annual required contribution                                57,088
        Annual OPEB cost                                                         101,381
        Contributions made                                                        70,308
        Increase in net OPEB obligation                                           31,073
        Net OPEB obligation - beginning of year                                   46,024
        Net OPEB obligation - end of year                            $            77,097




                                                     180
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                December 31, and June 30, 2009


The ACAA’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
  and the net OPEB obligation for 2009 were as follows:
                                                    Percentage of         Net OPEB
                  Fiscal Year       Annual OPEB      Annual OPEB          Obligation
                     Ended             Costs       Cost Contributed        (Asset)

             December 31, 2009 $      101,381           69.40%        $     77,097
             December 31, 2008        101,381           84.80%              46,024
             December 31, 2007        101,381           69.80%              30,598

As of January 1, 2007, the date of the most recent actuarial valuation date, the actuarial
 accrued liability for benefits was $921,404, all of which was unfunded. The covered payroll
 (annual payroll of active employees covered by the plan) was $2,960,910, and the ratio of
 unfunded actuarial accrued liability to cover payroll was 31%. The contributions made as a
 percentage of required contributions was 179%. The OPEB obligation as of January 1, 2008
 involves estimates using covered payroll of $2,857,133 and the ratio of unfunded actuarial
 accrued liability to cover payroll was 45%. The contributions made as a percentage of
 required contributions were 218%. 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, 2007 actuarial valuation, the following actuarial assumptions were used:

          Actuarial cost method                   Projected unit credit
          Interest rate                           5% compounded annually
          Amortization method                     Level dollar
          Amortization period                     30 years

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




                                                  181
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


  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.

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 2009, PAT contributed $31,124,023 to the plans. Plan
  members receiving benefits contributed $2,939,081 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 20%, 15%, and 20%, respectively. Base year for the ATU, IBEW, and NonRep
  plans are November 30, 1991, May 1, 1993, and May 1, 1989, respectively.

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.




                                                182
                                    COUNTY OF ALLEGHENY
                                Notes to the Financial Statements
                                December 31, and June 30, 2009


The net OPEB obligation were computed as of January 1, 2007, projected forward to January
  1, 2009 used the following assumptions: (1) actuarial cost method projected unit credit; (2)
  amortization method level dollar; (3) amortization period 30 years; (4) investment rate of
  return 4%; (4) projected salary increases 3.5%; mortality RP-2000 table, sex distinct, blue/
  white collar adjustment; and (5) inflation rate in medical 10% in 2007, grading to 5% in
  2012, dental 5% in 2007, grading to 3% in 2011, and vision 2% per year.

Three year trend information:


                                               ATU Plan
                                                          Percentage of       Net OPEB
                  Fiscal Year         Annual OPEB             AOC             Obligation
                    Ending             Cost (AOC)          Contributed         (Asset)

                June 30, 2009     $    44,675,402             60%         $   95,860,409
                June 30, 2008          63,593,737             35%             78,054,137
                June 30, 2007          59,168,282             38%             37,004,046

                                               IBEW Plan
                                                          Percentage of       Net OPEB
                  Fiscal Year         Annual OPEB             AOC             Obligation
                    Ending             Cost (AOC)          Contributed         (Asset)
                June 30, 2009           1,787,170             34%               3,793,715
                June 30, 2008           1,725,178             22%               2,609,741
                June 30, 2007           1,622,094             22%               1,258,736

                                             Non-Rep Plan
                                                          Percentage of       Net OPEB
                  Fiscal Year         Annual OPEB             AOC             Obligation
                    Ending             Cost (AOC)          Contributed         (Asset)

                June 30, 2009           3,476,526            105%                 666,253
                June 30, 2008           3,553,400            107%                 841,424
                June 30, 2007           3,614,986             70%               1,087,667




                                                    183
                                        COUNTY OF ALLEGHENY
                                    Notes to the Financial Statements
                                    December 31, and June 30, 2009



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, 2007 * $       -        568,970       568,970         0.0%   129,386            439.7%
  January 1, 2007 **        -        650,103       650,103         0.0%   129,386            502.5%
  January 1, 2007           -        612,832       612,832         0.0%   129,386            473.6%

                                                    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, 2007 * $       -        17,813         17,813         0.0%    3,252             547.8%
  January 1, 2007 **        -        126,903        16,903         0.0%    3,252             519.8%
  January 1, 2007           -        15,442         15,442         0.0%    3,252             474.8%

                                                   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, 2007 * $       -         61,241        61,241         0.0%   17,481             350.3%
  January 1, 2007 **        -         62,675        62,675         0.0%   17,481             358.5%
  January 1, 2007           -         62,246        62,246         0.0%   17,481             356.1%

* Projected forward to 1/1/09
** Projected forward to 1/1/08




                                                         184
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



                                                                                    NonRep
                                                        ATU Plan     IBEW Plan       Plan
     Annual required contribution                    $ 45,893,505    1,827,897     3,489,657
     Interest on net OPEB obligation                    3,122,165      104,390        33,657
     Adjustment to annual required contribution        (4,340,268)    (145,117)      (46,788)
     Annual OPEB cost                                  44,675,402    1,787,170     3,476,526
     Contributions made                                26,869,130      603,196     3,651,697
     Increase (decrease) in net OPEB obligation        17,806,272    1,183,974      (175,171)
     Net OPEB obligation (asset) beginning of year     78,054,137    2,609,741       841,424
     Net OPEB obligation (asset) end of year         $ 95,860,409    3,793,715       666,253

(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. 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.

 C. The County is a defendant in action filed by a former inmate for unwanted sexual contact
  and/or constitutional rights violations. Discovery continues in this matter. It is premature at
  this time to state with any degree of certainty the likelihood of a favorable or unfavorable
  outcome.

 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. A motion for
 summary judgment was filed and awaits judicial determination. It remains, premature at




                                               185
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


 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 personal injury
  and/or property damage from incidents on County roadways or properties. Two cases were
  just recently filed, one case had a nonjury verdict in favor of the plaintiff and an appeal was
  filed in Commonwealth Court, one case is scheduled for trial in March 2010, and six 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 an action filed by the administrator of a decedent’s estate
  alleging violations of decedent’s constitutional rights regarding access to 911 Call Center
  information. A motion to dismiss Section 1983 claims was granted. State law claims were
  dismissed for all parties but one. It remains premature at this time to state with any degree
  of certainty the likelihood of a favorable or unfavorable outcome.

 G. 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.

Component Units - Contingencies

Allegheny County Airport Authority

 A. ACAA revenue bond obligations (the Revenue Bonds) total $451,485,000 at December 31,
  2009. 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). 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 31.4% of the total revenues of PIA in 2009.
 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.



                                                186
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009



  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 Bonds is insured by MBIA. Payment of the principal and interest
 on the Series 1999 Bonds and the Series 2002 Bonds are insured by FGIC. Payment of the
 principal and interest on the Series 2001 Bonds is insured by MBIA. Payments of the
 principal and interest on the Series 2007 Bonds are insured by FSA, Inc. 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 $5.2 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.




                                               187
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



 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 $539 million and will be paid from federal, state and local
  sources. At June 30, 2009, approximately $283.8 million of projects costs had been incurred
  and PAT’s contract commitments related to this project approximated $193 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, 2009.

Redevelopment Authority of Allegheny County

RAAC formed the Community Infrastructure and Tourism Board Fund in 2006 to receive,
  oversee and manage approximately $80 million in State grant monies over the next twelve
  years. During 2009, a law suit was filed alleging that the formation of the Fund by RAAC
  violated various provision of Act 53 of 2007. The suit also states that RAAC did not have the
  legal power or authority to establish the Fund, which is to receive, manage and supervise
  public monies intended for the County. The plaintiff seeks to remove the Fund from its role
  of receiving, overseeing and managing the State grant funds.

Since the CITB assets, liabilities, and program responsibilities were transferred to RAAC as of
  year end, RAAC believes that this lawsuit has little merit.

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.




                                              188
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009



Allegheny County Industrial Development Authority

ACIDA was previously engaged in a lawsuit stemming from a conduit debt issue. The plaintiff
  in the case was seeking $11 million. During 2009, the judge overhearing the case made a
  summary judgment in favor of the ACIDA.

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.

(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 $24.3 million in fiscal 2009. 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 $12.6 million in
  fiscal 2009.




                                             189
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                           December 31, and June 30, 2009



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 2009
  RAAC paid approximately $31,620 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, 2009, the loan has an outstanding balance of $1,366,884. 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.

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, 2009, 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, 2009, the loan has not been disbursed.

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.

(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%.




                                             190
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


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
  expires on November 1, 2026 consistent with the final maturity of the Series C-59B Notes.

During 2009, the County paid $1,577,638 and received $434,481 related to the swap.

As of December 31, 2009, the swap had a fair value of ($3,817,518). 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 with a negative outlook 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.

       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




                                                191
                                COUNTY OF ALLEGHENY
                            Notes to the Financial Statements
                            December 31, and June 30, 2009


       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.

       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. At December 31, 2009, the USD-
 ISDA-Swap Rate was 3.43% and the USD-BMA-Municipal Swap Index rate was .25%. The
 swap counter party was rated AAA by Fitch Ratings, AAA by Standard & Poor’s and Aa3 by
 Moody’s Investors Services as of December 31, 2009. The fair market value of the CMS as
 of December 31, 2009 was $6,972,467 with notational amounts of $161,745,000.

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. As a synthetic refunding of its 2001 Bonds, this payment
  represents the present-value, risk-adjusted savings of a refunding as of March 1, 2011,
  without issuing refunding bonds at March 2004. The swaption gave 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.




                                              192
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


If the option is exercised, PAT will current refund the existing 2001 Bonds as of the exercise
   date and will issue Variable Rate Refunding Bonds (Refunding Bonds). The intention of the
   swap is to effectively change PAT’s variable interest rate on the Refunding Bonds to a
   synthetic fixed rate of 4.53%.

Per the swap agreement, PAT would receive interest at the variable rate of 67% of 1 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, which reduces
  beginning on March 1, 2012 so that the notional amount approximates the principal
  outstanding on the Refunding Bonds. The swap would expire on March 1, 2029 consistent
  with the last principal payment on the Refunding Bonds.

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.

PAT recorded a deferred credit of $9.5 million until such a time as the option component of
  the swaption either expires or is exercised.

As of June 30, 2009, the swaption had a fair value of ($31,661,513). The mark to market
  value is calculated using a combination of the zero-coupon method and an option pricing
  model.

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.


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, 2009, 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, 2008, the swaption counterparty




                                               193
                                 COUNTY OF ALLEGHENY
                             Notes to the Financial Statements
                             December 31, and June 30, 2009


       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.
       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.

       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. If the option is exercised,
       PAT could be exposed to interest rate risk if the long-term interest rates are less than
       4.53%.

       Termination risk is the risk that a derivative’s unscheduled end will affect PAT’s asset/
       liability strategy or will present PAT with potentially significant unscheduled termination
       payments to the counterparty. The counterparty to the transaction does not have the
       ability to voluntarily terminate the swaption; however, PAT is exposed to termination
       risk in the event that the counterparty defaults.

       Market-access risk is the risk that PAT will not be able to enter credit markets or that
       credit will be more costly. If the option is exercised, PAT would be subject to market-
       access risk in the event that they are unable to obtain variable rate financing or that
       the financing is more expensive than anticipated. To reduce this exposure, PAT has
       obtained insurance from a third party to cover payment of principal and interest on the
       Refunding Bonds if they are issued. PAT is still exposed to market-access risk to the
       extent that the credit quality of the third party deteriorates.

       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. If the option is exercised, PAT would be subject to basis risk if the interest
       index on the variable rate arm of the swap is based on 1-month LIBOR and the variable
       interest rate on the Refunding Bonds is based on a different index, such as a tax-
       exempt index like the Securities Industry and Financial Markets Association (SIFMA).
       Although expected to correlate, the relationships between different indexes vary and
       that variance could adversely affect the PAT’s calculated payments, and as a result cost
       savings or synthetic interest rates may not be realized.

In October 2008, the counterparty served notice to PAT of a required collateral call related to
  the swaption. This collateral call was subsequently rescinded by the counterparty. As of
  November 17, 2009, the fair value of the swap is ($35,700,710).




                                                194
                               COUNTY OF ALLEGHENY
                           Notes to the Financial Statements
                           December 31, and June 30, 2009



(15) Subsequent Event

On January 4, 2010, the County issued Tax and Revenue Anticipation Notes (TRANs), Series of
 2010, in the amount of $50,000,000. The TRANs bear an interest rate of 1% and mature on
 April 5, 2010. Proceeds from the TRANs will be used to ensure sufficient cash flow for
 County operations prior to the receipt of property tax revenues.




                                           195
                         REQUIRED SUPPLEMENTAL
                                   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, 2009




                                                                     Budget
                                                                                                           Variance to
                                                          Original              Final                          Final
                                                          Budget               Budget        Actual          Budget

Revenues:
  Property taxes (notes 1 and 4)                    $   229,298,000       229,298,000       226,749,293     (2,548,707)
  Sales and use tax                                      41,150,000        41,150,000        39,172,875     (1,977,125)
  Licenses and permits                                    1,896,044         1,896,044         1,904,569          8,525
  Federal revenues                                       99,116,623        99,116,623        94,293,589     (4,823,034)
  State revenues                                        195,867,769       195,867,769       174,542,962    (21,324,807)
  Local government units revenues                        17,478,000        17,478,000        17,215,187       (262,813)
  Charges for services and facilities                    63,189,565        63,189,565        68,384,127      5,194,562
  Fines and forfeitures                                   4,803,000         4,803,000         4,976,114        173,114
  Interest earnings                                       3,149,737         3,149,737           645,538     (2,504,199)
  Miscellaneous                                           6,076,594         6,076,594         6,754,783        678,189

       Total revenues                                   662,025,332       662,025,332       634,639,037    (27,386,295)

Expenditures:
  Current:
    General government                                  163,079,585       161,597,021       166,708,068    (5,111,047)
    Public safety                                        82,254,781        82,502,906        78,837,379     3,665,527
    Public works                                         25,023,565        25,237,905        25,038,327       199,578
    Health and welfare                                  357,298,448       357,868,283       337,536,389    20,331,894
    Culture and recreation (note 2)                       9,335,056         9,599,959         9,498,465       101,494
    Education                                            22,010,000        22,010,000        22,010,000         -
    Economic development                                  2,463,797         6,963,797         6,494,647       469,150
  Debt service:
    Interest charges                                      1,560,100                -              -              -

       Total expenditures                               663,025,332       665,779,871       646,123,275    19,656,596

       Deficiency of revenues
         over expenditures                               (1,000,000)          (3,754,539)   (11,484,238)    (7,729,699)

Other financing sources (uses):
 Proceeds from sale of building                               -                    -          3,170,000      3,170,000
 Capital lease                                                -                    -          7,678,839      7,678,839
 Transfers in                                             1,000,000            1,000,000     12,120,704     11,120,704
 Transfers out                                                -                    -        (10,825,561)   (10,825,561)

       Total other financing sources (uses)               1,000,000            1,000,000     12,143,982    11,143,982



       Net change in fund balances                             -              (2,754,539)      659,744      3,414,283

Fund balances at beginning of year                       19,491,364           19,491,364     19,491,364          -

Fund balances at end of year                        $    19,491,364           16,736,825     20,151,108     3,414,283



See notes to required supplementary information.




                                                         199
                                     COUNTY OF ALLEGHENY
                        Notes to the Required Supplementary Information
                                       December 31, 2009



(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. 4407-08 established 2009’s Operating Budget at $762,710,000, of which $663,025,332
   is for the General Fund.




                                              200
                                     COUNTY OF ALLEGHENY
                        Notes to the Required Supplementary Information
                                       December 31, 2009



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 2009 General Government expenditures exceeded budget by $5,111,047. Since the total
  operating budget was not exceeded, the remedial action taken is to request subsequent
  County Council approval for the necessary appropriation transfers.




                                             201
                               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 Special Revenue Fund with the Debt Service Fund.
                                                                                                 Exhibit 13

                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                             Combining Balance Sheet
                                            Other Governmental Funds
                                               December 31, 2009




                                                  Transportation   Liquid Fuel   Debt Service
                                                      Fund         Tax Fund         Fund         Totals

       Assets


Cash and short-term investments               $       709,155            -             -           709,155
Restricted cash and short-term investments              -              231,925     3,873,353     4,105,278
Delinquent property taxes receivable, net               -                -         1,123,182     1,123,182
Liened property taxes receivable, net                   -                -         3,415,330     3,415,330
Due from other funds                                    -                -           138,108       138,108
Due from component units                                -                -         8,250,000     8,250,000
Alcoholic beverage tax receivable                   2,946,638            -             -         2,946,638
Rental vehicle tax receivable                         408,567            -             -           408,567
Other accounts receivable                               -                -         1,251,318     1,251,318
Accrued penalty and interest receivable                 -                -            71,095        71,095
Accrued interest receivable                             -                1,229           152         1,381


       Total assets                           $     4,064,360          233,154    18,122,538    22,420,052

       Liabilities and Fund Balances

Liabilities:
   Vouchers payable                           $          -                -           16,931        16,931
   Accrued interest payable                              -                -            1,759         1,759
   Due to other funds                                    -                -       11,515,123    11,515,123
   Tax refunds payable                                   -                -           64,987        64,987
   Deferred revenues                                     -                -        4,538,512     4,538,512
   Matured bonds payable                                 -   0            -           61,567        61,567

       Total liabilities                                 -                -       16,198,879    16,198,879

Fund balances:
  Reserved for transportation                       4,064,360            -             -         4,064,360
  Reserved for liquid fuel                              -              233,154         -           233,154
  Unreserved:
    Designated fund balance                              -                -        1,923,659     1,923,659

       Total fund balances                          4,064,360          233,154     1,923,659     6,221,173

       Total liabilities
         and fund balances                    $     4,064,360          233,154    18,122,538    22,420,052




                                                          207
Exhibit 14

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
             Combining Statement of Revenues, Expenditures and Changes in Fund Balances
                                     Other Governmental Funds
                                   Year Ended December 31, 2009




                                                  Transportation    Liquid Fuel   Debt Service
                                                      Fund          Tax Fund         Fund           Totals


Revenues:
  Property taxes                              $          -              -           34,381,972     34,381,972
  Alcoholic beverage tax                            27,445,903          -                -         27,445,903
  Rental vehicle tax                                 5,268,531          -                -          5,268,531
  State revenues                                         -          4,089,411       10,261,139     14,350,550
  Local governmental units revenues                      -              -               53,393         53,393
  Interest earnings                                      -             21,844          122,192        144,036
  Miscellaneous revenues                                 -              -            1,549,004      1,549,004


       Total revenues                               32,714,434      4,111,255       46,367,700     83,193,389


Expenditures:
  Transportation                                    27,668,699          -                   -      27,668,699
  Public works                                           -          4,025,000               -       4,025,000
  Debt service:
     Principal                                            -              -          38,232,500     38,232,500
     Interest                                             -              -          24,612,032     24,612,032
     Cost of issuance                                     -              -             155,834        155,834


       Total expenditures                           27,668,699      4,025,000       63,000,366     94,694,065


      Excess (deficiency) of revenues
        over expenditures                             5,045,735         86,255      (16,632,666)   (11,500,676)


Other financing sources (uses):
  Issuance of general obligation
       refunding bonds                                   -               -           27,500,000     27,500,000
  Premium on refunding bonds                             -               -            1,766,257      1,766,257
  Payment to refunded bond escrow agent                  -               -          (29,110,423)   (29,110,423)
  Operating transfer in                                  -               -           18,019,791     18,019,791
  Operating transfer out                           (13,411,871)          -          (11,127,646)   (24,539,517)


       Total other financing sources (uses)        (13,411,871)          -            7,047,979     (6,363,892)

Special Item.:
  Proceeds from sale of building                          -              -            8,250,000     8,250,000

        Net change in fund balances                  (8,366,136)        86,255       (1,334,687)    (9,614,568)

Fund balances at beginning of year                  12,430,496         146,899        3,258,346    15,835,741


Fund balances at end of year                  $       4,064,360        233,154        1,923,659     6,221,173




                                                              208
                                                         GENERAL FUND
The General Fund is the primary operating fund of the County. It is used to account for all
financial resources which are not accounted for in other funds.
                                                                      Exhibit A-1 (Page 1 of 2)

                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                                     Balance Sheet
                                      General Fund
                                  December 31, 2009
                      With Comparative Totals for December 31, 2008




       Assets                                        2009                  2008


Cash and short-term investments              $           -                      -
Delinquent property taxes receivable,
   net of $805,239 allowance for
   uncollectible property taxes in 2009
   and $1,192,760 in 2008                            7,369,037             6,105,770
Liened property taxes receivable,
   net of $6,445,093 allowance for
   uncollectible property taxes in 2009
   and $6,445,622 in 2008                            8,268,932             5,055,565
Sales tax receivable                                 6,999,908             7,210,606
Due from other funds:
   Debt Service Fund                                11,515,123            11,544,712
   Risk Management Fund                                664,321               641,737
   County Capital Projects Fund                      5,717,510             5,949,390
   Human Services Grants Fund                        3,492,179             9,808,726
   County Grants Fund                                5,493,626             3,577,852
                                                    26,882,759            31,522,417
Due from other governments:
  Federal                                           63,039,536            50,977,415
  State                                             44,679,769            13,441,176
  Other                                                 52,516                62,527
                                                   107,771,821            64,481,118
  Less: allowance for doubtful accounts             (7,259,042)           (7,353,637)
                                                   100,512,779            57,127,481
Other accounts receivable                           16,198,014            13,418,604
Due from component units                             4,108,312               986,565
Accrued penalty and interest receivable                244,460               205,168
Accrued interest receivable                             29,762               285,845
Other assets                                             9,716                 9,716

       Total assets                          $     170,623,679           121,927,737




                                          211
Exhibit A-1 (Page 2 of 2)

                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                                             Balance Sheet
                                              General Fund
                                          December 31, 2009
                              With Comparative Totals for December 31, 2008




               Liabilities and Fund Balance                  2009               2008


        Liabilities:
           Vouchers payable                           $      7,835,240          7,004,506
           Accrued payroll                                   9,146,397          7,724,890
           Payroll withholdings                                516,695          1,705,579
           Due to other funds:
             Debt Service Fund                                 138,108            222,324
             Risk Management Fund                              464,362            771,974
             County Capital Projects Fund                   60,391,379         13,154,274
             Human Services Grants Fund                      3,212,313          1,256,536
             County Grants Fund                              7,793,692         14,371,893
                                                            71,999,854         29,777,001
          Tax refunds payable                                  426,374            393,690
          Accrued liabilities                               36,088,680         32,189,950
          Due to other governments:
            State                                                3,050                 422
          Due to component units                             3,960,000              -
          Deferred revenue                                  17,768,420         21,716,823
          Accrued pension costs                              1,138,335            860,204
          Accrued state mental hospital costs                  113,460            113,460
          Accrued workers' compensation                        764,661            767,173
          Accrued unemployment compensation                    711,405            182,675

               Total liabilities                           150,472,571        102,436,373

        Fund balance:
          Reserved for encumbrances                            686,266           985,974
          Unreserved:
            Undesignated fund balance                       19,464,842         18,505,390

               Total fund balance                           20,151,108         19,491,364

               Total liabilities and fund balance     $    170,623,679        121,927,737




                                                    212
                                                                                  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, 2009
                   With Comparative Actual Amounts for Year Ended December 31, 2008


                                                                     2009


                                                    Final                                       2008
                                                   Budget         Actual       Variance         Actual

Revenues:
  Property taxes:
    Current                                  $   228,963,000    222,711,258    (6,251,742)    204,604,273
    Delinquent                                     1,377,000      4,792,543     3,415,543       1,112,061
    Liened                                         1,445,000        933,139      (511,861)        596,128
    Interest and penalty                           1,391,000      1,710,754       319,754       1,053,138
    Payment in lieu of taxes                         325,000        222,375      (102,625)        388,800
    Tax refunds                                   (4,203,000)    (3,620,776)      582,224      (3,076,825)
                                                 229,298,000    226,749,293    (2,548,707)    204,677,575
  Sales and use tax                               41,150,000     39,172,875    (1,977,125)     40,351,848
                                                 270,448,000    265,922,168    (4,525,832)    245,029,423
  Licenses and permits:
     Firearm licenses                                255,200        268,042       12,842          247,245
     Hunting, fishing and dog licenses               138,500        141,291        2,791          131,083
     Road opening permits                            105,000        102,557       (2,443)         116,142
     Health licenses and permits - food            1,110,844      1,095,327      (15,517)       1,024,746
     Health licenses and permits - housing           155,000        162,767        7,767          107,719
     Solid waste fuel permits                         12,000         17,490        5,490            8,305
     Flammable liquid permits                         25,000         21,255       (3,745)          22,115
     Small games of chance permits                    72,500         75,695        3,195           76,465
     Bingo permits                                    22,000         20,145       (1,855)          20,930
                                                   1,896,044      1,904,569        8,525        1,754,750
  Federal revenues:
    Air pollution                                      -              -             -             732,471
    Maintenance of prisoners                       4,500,000      3,227,329    (1,272,671)      3,783,270
    Skilled and intermediate
      nursing care                                33,330,316     27,942,776    (5,387,540)     29,419,330
    Medicare                                       6,619,535      7,806,571     1,187,036       5,347,490
    Title XX - Social services                     1,181,712      1,070,208      (111,504)      1,181,712
    Title IV - Foster Care                           600,000        507,797       (92,203)        428,847
    Title IV-B - Adoption services                   928,196        847,488       (80,708)        928,196
    Title IV-E - Child placement                  32,235,000     30,771,912    (1,463,088)     30,462,797
    Title IV-E - Adoption Assistance              10,000,000     12,422,943     2,422,943      10,810,198
    Title IV-E - Independent Living                    -            280,665       280,665           -
    Temporary assistance to needy families         8,555,464      8,406,705      (148,759)      8,742,646
    Juvenile Court rent reimbursement                950,400        919,686       (30,714)        919,842
    Miscellaneous                                    216,000         89,509      (126,491)        243,199
                                                  99,116,623     94,293,589    (4,823,034)     92,999,998
  State revenues:
    Court operations                               3,010,000      2,653,658     (356,342)       2,970,955
    Juvenile probation                               655,600        551,670     (103,930)         273,034
    Adult probation                                   54,200        484,667      430,467          490,584




                                                         213
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, 2009
                    With Comparative Actual Amounts for Year Ended December 31, 2008


                                                                      2009


                                                      Final                                     2008
                                                     Budget        Actual       Variance        Actual
     Lunch reimbursement                               230,300       118,692     (111,608)        203,318
     Public utility tax                                441,000       401,123      (39,877)        367,549
     Health department                               7,733,194     8,703,655      970,461       8,011,828
     Jurors fees reimbursement                          85,000        69,705      (15,295)         86,924
     Skilled and intermediate
        nursing care                                27,270,258    22,862,272    (4,407,986)    24,070,361
     Medical assistance paid
        prescriptions                                5,991,717     6,383,156      391,439       5,650,352
     Act 148 - Children, Youth
        and Family Services                        140,394,000   119,107,362   (21,286,638)   120,124,932
     State Transition Grant                              -             -             -          1,428,446
     Criminal justice subsidy                        6,000,000     4,270,000    (1,730,000)     5,456,356
     Crime lab subsidy                               1,500,000     1,060,000      (440,000)     1,811,026
     Miscellaneous                                   2,502,500     7,877,002     5,374,502      5,414,700
                                                   195,867,769   174,542,962   (21,324,807)   176,360,365
   Local governmental units revenues:
     Regional Asset District contractual revenue    17,000,000    17,000,000        -          17,000,000
     Miscellaneous                                     478,000       215,187     (262,813)        379,885
                                                    17,478,000    17,215,187     (262,813)     17,379,885
   Charges for services and facilities:
     General government                             22,168,300    23,075,719      907,419      19,794,915
     Public safety                                   8,768,500     8,745,272      (23,228)      8,373,464
     Health                                          2,076,000     1,958,519     (117,481)      2,168,522
     Recreation                                      3,487,900     4,906,406    1,418,506       3,248,053
     Real estate                                     1,394,000     1,268,587     (125,413)      1,554,207
     Election                                           12,500        63,535       51,035          43,954
     Welfare                                           100,000         8,219      (91,781)         78,477
     Use of property and equipment                   1,769,800     1,941,205      171,405       1,904,250
     Patient income                                  7,452,974     8,455,071    1,002,097       8,117,696
     Collection from parents and
        guardians                                    2,360,000     2,234,465     (125,535)      2,261,044
     Administrative fees                             1,453,000     1,193,906     (259,094)      1,397,262
     Private Insurance                               2,486,364     3,625,704    1,139,340       2,831,597
     Commercial Insurance                            9,433,152    10,272,036      838,884       8,916,591
     Miscellaneous                                     227,075       635,483      408,408         298,810
                                                    63,189,565    68,384,127    5,194,562      60,988,842
   Fines and forfeitures:
      District courts                                4,713,000     4,750,548       37,548       5,237,739
      Miscellaneous                                     90,000       225,566      135,566       1,471,570
                                                     4,803,000     4,976,114      173,114       6,709,309
   Interest earnings                                 3,149,737      645,538     (2,504,199)     3,328,502
   Miscellaneous revenues:
     Other receipts                                  6,076,594     6,754,783      678,189       4,212,279
                                                     6,076,594     6,754,783      678,189       4,212,279

        Total revenues                             662,025,332   634,639,037   (27,386,295)   608,763,353




                                                           214
                                                                              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, 2009
                  With Comparative Actual Amounts for Year Ended December 31, 2008


                                                                2009

                                              Final                                         2008
                                             Budget          Actual        Variance         Actual


Expenditures:
  Current:
    General government                     161,597,021     166,708,068    (5,111,047)    155,640,752
    Public safety                           82,502,906      78,837,379     3,665,527      77,730,307
    Public works                            25,237,905      25,038,327       199,578      23,794,887
    Health and welfare                     357,868,283     337,536,389    20,331,894     325,881,117
    Culture and recreation                   9,599,959       9,498,465       101,494       8,870,199
    Education                               22,010,000      22,010,000         -          21,628,152
    Economic development                     6,963,797       6,494,647       469,150       6,563,335
                                           665,779,871     646,123,275    19,656,596     620,108,749
  Debt service:
    Interest charges                             -               -              -          1,790,000


       Total expenditures                  665,779,871     646,123,275    19,656,596     621,898,749

    Deficiency of revenue over
      expenditures                          (3,754,539)    (11,484,238)    (7,729,699)    (13,135,396)

Other financing sources (uses):
  Premium on issuance of TRAN                    -               -              -             314,425
  Proceeds from sale of building                 -           3,170,000      3,170,000           -
  Capital lease                                  -           7,678,839      7,678,839           -
  Operating transfers in                     1,000,000      12,120,704     11,120,704      19,820,336
  Operating transfers out                        -         (10,825,561)   (10,825,561)    (14,864,042)

    Total other financing sources            1,000,000      12,143,982    11,143,982       5,270,719

    Net change in fund balance              (2,754,539)       659,744      3,414,283       (7,864,677)

Fund balance at beginning of year           19,491,364      19,491,364          -         27,356,041

Fund balance at end of year            $    16,736,825      20,151,108     3,414,283      19,491,364




                                                     215
                                                                                                                                                    Exhibit A-3 (Page 1 of 26)
                                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                              Schedule of Expenditures - Budget and Actual
                                                              General Fund
                                                    Year Ended December 31, 2009
                                        With Comparative Totals for Year Ended December 31, 2008


                                                                                            2009

                                          Adopted           Prior               Budget              Final                               2008
                                           Budget      Reappropriations   Amendments/Transfers     Budget       Actual      Variance    Actual

      General Government:

      County Executive:
          Personnel                 $       303,140              -                      -            303,140     275,890       27,250    250,106
          Fringe Benefits                    85,656              -                      -             85,656      73,710       11,946     65,948
          Services                           37,250              -                      -             37,250      17,814       19,436     19,046
          Supplies                            4,300              -                      -              4,300       1,969        2,331      2,202
          Materials                             200              -                      -                200        -             200       -
          Repairs and Maintenance             1,100              -                      -              1,100         424          676        378
          Minor Equipment                       900              -                      -                900        -             900        852
          Expenditure Recovery               (4,000)             -                      -             (4,000)     (4,496)         496     (4,242)
216




                                            428,546              -                      -            428,546     365,311       63,235    334,290

      County Council:
          Personnel                         573,143              -                      -            573,143     492,859       80,284    526,802
          Fringe Benefits                   165,435              -                      -            165,435     141,784       23,651    150,097
          Services                          182,491               783                   -            183,274     126,431       56,843    133,326
          Supplies                           18,281              -                      -             18,281      12,565        5,716     13,475
          Materials                             500              -                      -                500        -             500       -
          Repairs and Maintenance             1,750              -                      -              1,750          50        1,700        349
          Minor Equipment                    17,000              -                      -             17,000      13,533        3,467      7,089
          Expenditure Recovery               (8,000)             -                      -             (8,000)     (8,041)          41     (7,587)
                                            950,600               783                   -            951,383     779,181      172,202    823,551

      County Manager:
          Personnel                         772,633              -                    26,890         799,523     799,521            2    725,636
          Fringe Benefits                   242,408              -                   (17,770)        224,638     224,629            9    196,036
          Services                           24,750              -                    (5,960)         18,790      18,209          581     18,200
          Supplies                            5,300              -                       780           6,080       6,036           44      6,929
          Materials                             200              -                      (190)             10        -              10       -
          Repairs and Maintenance               500              -                      (230)            270         259           11        338
          Minor Equipment                     1,500              -                    (1,490)             10        -              10       -
          Expenditure Recovery               (7,500)             -                    (2,030)         (9,530)    (10,288)         758     (9,708)
                                          1,039,791              -                      -          1,039,791    1,038,366       1,425    937,431
                                                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                 Schedule of Expenditures - Budget and Actual
                                                                 General Fund
                                                       Year Ended December 31, 2009
                                           With Comparative Totals for Year Ended December 31, 2008


                                                                                               2009

                                             Adopted           Prior               Budget              Final                                 2008
                                             Budget       Reappropriations   Amendments/Transfers     Budget       Actual       Variance     Actual

      Budget & Finance:
          Personnel                            563,118              -                      -            563,118     537,175        25,943     538,832
          Fringe Benefits                      162,689              -                      -            162,689     145,102        17,587     149,775
          Services                              67,800               183                   -             67,983      62,134         5,849      63,358
          Supplies                               3,200              -                      -              3,200       3,112            88       3,077
          Materials                                500              -                      -                500        -              500        -
          Repairs and Maintenance                1,450              -                      -              1,450         480           970         481
          Minor Equipment                        3,500              -                      -              3,500       3,289           211        -
          Expenditure Recovery                  (8,500)             -                      -             (8,500)     (7,176)       (1,324)     (6,771)
                                               793,757               183                   -            793,940     744,116        49,824     748,752
217




      County Solicitor:
          Personnel                          1,293,487              -                    11,940       1,305,427    1,169,255      136,172    1,140,084
          Fringe Benefits                      456,769              -                     6,780         463,549      373,314       90,235      391,553
          Services                              99,749             1,107                (18,720)         82,136       11,711       70,425       34,405
          Supplies                              69,000              -                      -             69,000       60,991        8,009       57,091
          Materials                                500              -                      -                500         -             500         -
          Repairs and Maintenance                3,800              -                      -              3,800          750        3,050          732
          Minor Equipment                       10,500              -                      -             10,500        1,230        9,270        5,112
          Expenditure Recovery                       -              -                      -               -         (16,341)      16,341      (15,418)
                                             1,933,805             1,107                   -          1,934,912    1,600,910      334,002    1,613,559

      Law Department




                                                                                                                                                          Exhibit A-3 (Page 2 of 26)
        Duquesne University Law Library:
           Services                            475,000              -                      -            475,000     450,000        25,000     440,000

      Public Defender:
            Personnel                        5,138,523              -                  (93,580)       5,044,943    5,044,939            4    4,817,252
            Fringe Benefits                  1,765,002              -                   27,880        1,792,882    1,781,124       11,758    1,673,198
            Services                           390,800              -                   53,430          444,230      442,591        1,639      394,602
            Supplies                            56,337              -                   13,190           69,527       69,526            1       54,146
            Materials                             -                 -                     -                -            -            -            -
            Repairs and Maintenance                500              -                  750.000            1,250        1,250         -           1,245
            Minor Equipment                      3,394              -                   (1,670)           1,724        1,717            7        5,726
                                             7,354,556              -                      -          7,354,556    7,341,147       13,409    6,946,169
                                                                                                                                                                 Exhibit A-3 (Page 3 of 26)
                                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                    Schedule of Expenditures - Budget and Actual
                                                                    General Fund
                                                          Year Ended December 31, 2009
                                              With Comparative Totals for Year Ended December 31, 2008


                                                                                                   2009

                                                Adopted            Prior               Budget              Final                                    2008
                                                 Budget       Reappropriations   Amendments/Transfers     Budget        Actual        Variance      Actual

      Minority/Women's Business Enterprise:
            Personnel                             280,740               -                     6,210         286,950       286,948             2      251,222
            Fringe Benefits                        90,869               -                      -             90,869        79,584        11,285       71,835
            Services                               72,561                206                 (5,258)         67,509        67,052           457       83,914
            Supplies                                6,808               -                      (822)          5,986         4,641         1,345        7,003
            Repairs and Maintenance                 3,169               -                    (1,863)          1,306         1,305             1        1,385
            Minor Equipment                         3,335               -                     1,733           5,068         5,009            59         -
                                                  457,482                206                   -            457,688       444,539        13,149      415,359

      Human Resources:
          Personnel                               999,577               -                    (5,820)        993,757       810,855       182,902      925,687
218




          Fringe Benefits                         331,323               -                    (5,330)        325,993       294,378        31,615      334,814
          Services                                 96,900                569                  9,890         107,359       106,746           613      105,123
          Supplies                                  6,250                573                   -              6,823         3,286         3,537        5,002
          Minor Equipment                            -                  -                     1,260           1,260         1,014           246         -
          Expenditure Recovery                       -                  -                      -               -           (7,695)        7,695       (7,260)
                                                1,434,050              1,142                   -          1,435,192     1,208,584       226,608    1,363,366

      Administrative Services-
        Administration:
          Personnel                                928,789              -                   (35,900)         892,889       875,664       17,225       912,122
          Fringe Benefits                          342,442              -                      -             342,442       291,955       50,487       308,304
          Services                               7,042,209            13,646                (43,140)       7,012,715     6,456,968      555,747     6,367,949
          Supplies                                  83,720              -                    15,640           99,360        89,152       10,208        97,094
          Materials                                  3,000              -                      -               3,000         2,384          616         2,117
          Repairs and Maintenance                  113,841              -                     9,540          123,381       120,577        2,804       115,044
          Minor Equipment                           29,000            18,948                 29,000           76,948        73,075        3,873         8,609
          Expenditure Recovery                  (2,762,721)             -                      -          (2,762,721)   (2,414,410)    (348,311)   (2,426,208)
                                                5,780,280             32,594                (24,860)      5,788,014     5,495,365       292,649    5,385,031
                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                Schedule of Expenditures - Budget and Actual
                                                                General Fund
                                                      Year Ended December 31, 2009
                                          With Comparative Totals for Year Ended December 31, 2008


                                                                                             2009

                                            Adopted            Prior               Budget            Final                                    2008
                                             Budget       Reappropriations   Amendments/Transfers   Budget        Actual        Variance      Actual

      Administrative Services-
        Property Assessment:
           Personnel                        2,987,099               -                   (60,000)    2,927,099     2,796,879       130,220    3,048,535
           Fringe Benefits                  1,359,401               -                      -        1,359,401     1,207,977       151,424    1,349,433
           Services                           959,267              3,825                 74,160     1,037,252     1,037,248             4      906,206
           Supplies                            27,300               -                    20,570        47,870        36,514        11,356       47,042
           Materials                              600               -                      -              600           220           380          440
           Repairs and Maintenance              7,500               -                      -            7,500         2,474         5,026       10,492
           Minor Equipment                      1,888               -                      -            1,888          -            1,888       11,538
                                            5,343,055              3,825                 34,730     5,381,610     5,081,312       300,298    5,373,686
219




      Administrative Services-
        Management Information Systems:
          Personnel                          3,635,784              -                    27,410      3,663,194     3,663,189            5     3,249,342
          Fringe Benefits                    1,166,129              -                    36,850      1,202,979     1,169,520       33,459     1,063,639
          Services                           2,241,206            27,271                   -         2,268,477     1,702,960      565,517     1,729,072
          Supplies                             126,475              -                   (57,690)        68,785        34,869       33,916        50,552
          Materials                             45,000              -                      -            45,000         6,468       38,532        13,993
          Repairs and Maintenance              333,008              -                      -           333,008       332,434          574       251,922
          Minor Equipment                       65,000               102                   -            65,102        34,218       30,884        22,134
          Expenditure Recovery              (2,203,834)             -                      -        (2,203,834)   (1,723,657)    (480,177)   (1,627,036)
                                            5,408,768             27,373                  6,570     5,442,711     5,220,001       222,710    4,753,618




                                                                                                                                                           Exhibit A-3 (Page 4 of 26)
      Administrative Services-
        Purchasing and Supplies:
          Personnel                           340,301               -                      -          340,301       334,544         5,757      295,631
          Fringe Benefits                     101,817               -                     4,780       106,597       103,717         2,880       87,865
          Services                            168,399               -                   (32,600)      135,799       102,933        32,866      199,991
          Supplies                              4,125               -                      -            4,125         3,250           875        4,052
          Materials                               500                153                   -              653          -              653          134
          Repairs and Maintenance                 350               -                      -              350          -              350         -
          Minor Equipment                       2,000               -                     3,600         5,600         3,446         2,154          887
                                              617,492                153                (24,220)      593,425       547,890        45,535      588,560
                                                                                                                                                Exhibit A-3 (Page 5 of 26)
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2009
                                     With Comparative Totals for Year Ended December 31, 2008


                                                                                      2009

                                       Adopted          Prior               Budget            Final                                2008
                                        Budget     Reappropriations   Amendments/Transfers   Budget      Actual      Variance      Actual

      Administrative Services-
        Elections:
           Personnel                   1,377,649             -                    19,580     1,397,229   1,396,748         481     1,351,777
           Fringe Benefits               664,291             -                      -          664,291     634,366      29,925       617,601
           Services                    3,078,510             -                       830     3,079,340   3,066,688      12,652     3,375,802
           Supplies                       73,195                 32                 -           73,227      67,702       5,525        74,220
           Materials                       3,000             -                      -            3,000          44       2,956           798
           Repairs and Maintenance         3,000             -                      -            3,000         292       2,708         2,597
           Minor Equipment                 1,500             -                    20,000        21,500      17,838       3,662          (844)
                                       5,201,145                 32               40,410     5,241,587   5,183,678      57,909     5,421,951
220




      Administrative Services-
        Property Management:
           Personnel                   1,645,334             -                  (115,350)    1,529,984   1,504,347      25,637     1,503,550
           Fringe Benefits               669,466             -                      -          669,466     644,394      25,072       612,318
           Services                      107,700              137                 72,360       180,197     180,228         (31)       78,289
           Supplies                       53,650             -                      -           53,650      48,562       5,088        66,662
           Materials                       4,100             -                      -            4,100       3,621         479         1,619
           Repairs and Maintenance        94,500             -                   (12,500)       82,000      77,015       4,985        69,434
           Minor Equipment                15,500             -                     7,500        23,000      19,210       3,790        17,571
                                       2,590,250              137                (47,990)    2,542,397   2,477,377      65,020     2,349,443

      Non-departmental
        Operating Expenditures
           Personnel                     786,600             -                    17,060       803,660     756,140      47,520     1,228,460
           Fringe Benefits                66,550             -                 1,743,620     1,810,170   2,300,440    (490,270)    2,015,883
           Services                    5,392,178             -                   531,505     5,923,683   6,416,048    (492,365)    7,269,386
           Contingency                    50,000             -                   (29,100)       20,900      20,850          50        24,025
                                       6,295,328             -                 2,263,085     8,558,413   9,493,478    (935,065)   10,537,754
                                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                                             Schedule of Expenditures - Budget and Actual
                                                             General Fund
                                                   Year Ended December 31, 2009
                                       With Comparative Totals for Year Ended December 31, 2008


                                                                                           2009

                                         Adopted           Prior               Budget              Final                                    2008
                                          Budget      Reappropriations   Amendments/Transfers     Budget         Actual       Variance      Actual

      Controller:
           Personnel                     4,220,884              -                   (84,890)       4,135,994     4,009,129      126,865     3,718,323
           Fringe Benefits               1,497,752              -                     5,030        1,502,782     1,375,651      127,131     1,286,326
           Services                        467,650             5,942                   -             473,592       440,579       33,013       468,075
           Supplies                         46,950               477                   -              47,427        32,935       14,492        52,455
           Materials                         2,000              -                      -               2,000          -           2,000         1,720
           Repairs and Maintenance          85,400              -                      -              85,400        72,846       12,554        81,935
           Minor Equipment                 119,750              -                      -             119,750       104,773       14,977        87,874
           Expenditure Recovery           (403,000)             -                    79,860         (323,140)     (323,141)           1      (313,097)
                                         6,037,386             6,419                   -           6,043,805     5,712,772      331,033     5,383,611
221




      Medical Examiner:
           Personnel                     4,786,857              -                   (47,120)       4,739,737     4,777,689      (37,952)    4,582,828
           Fringe Benefits               1,763,177              -                    13,070        1,776,247     1,741,553       34,694     1,711,126
           Services                        214,805                10                  8,620          223,435       223,574         (139)      274,324
           Supplies                        453,723            10,948                 17,360          482,031       481,864          167       451,552
           Materials                           600              -                      (340)             260           254            6           487
           Repairs and Maintenance         202,700              -                     9,870          212,570       212,929         (359)      211,371
           Minor Equipment                  55,750               585                 (1,460)          54,875        54,868            7        24,825
                                         7,477,612            11,543                   -           7,489,155     7,492,731       (3,576)    7,256,513

      District Attorney:
             Personnel                   9,582,178              -                  (100,000)       9,482,178     9,272,017      210,161     8,911,403




                                                                                                                                                         Exhibit A-3 (Page 6 of 26)
             Fringe Benefits             3,067,307              -                      -           3,067,307     2,872,911      194,396     2,778,182
             Services                    1,130,638              -                    60,000        1,190,638     1,054,016      136,622     1,044,480
             Supplies                       77,750              -                    40,000          117,750        94,634       23,116        81,927
             Repairs and Maintenance         8,000              -                      -               8,000         7,844          156         9,436
             Minor Equipment                53,742              -                      -              53,742        41,889       11,853        48,014
                                        13,919,615              -                      -          13,919,615    13,343,311      576,304    12,873,442
                                                                                                                                                Exhibit A-3 (Page 7 of 26)
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2009
                                      With Comparative Totals for Year Ended December 31, 2008


                                                                                         2009

                                        Adopted          Prior               Budget              Final                              2008
                                         Budget     Reappropriations   Amendments/Transfers     Budget      Actual      Variance    Actual

      Real Estate:
            Personnel                   1,895,367             -                      -          1,895,367   1,867,471      27,896   1,781,692
            Fringe Benefits               738,820             -                      -            738,820     709,831      28,989     693,468
            Services                      313,845              576                   -            314,421     176,943     137,478     177,456
            Supplies                       36,500             -                      -             36,500      24,699      11,801      15,806
            Materials                       1,100             -                      -              1,100         112         988          50
            Repairs and Maintenance        18,400             -                      -             18,400       2,042      16,358       3,017
            Minor Equipment                 6,500             -                      -              6,500       1,824       4,676       3,587
                                        3,010,532              576                   -          3,011,108   2,782,922     228,186   2,675,076

      Court Records-
222




        Administration:
           Personnel                      279,069             -                    43,950         323,019    323,010            9    101,351
           Fringe Benefits                 86,565             -                      -             86,565     77,267        9,298     18,741
           Services                       320,931            1,884                   -            322,815    281,691       41,124    140,263
           Supplies                        81,500            1,153                   -             82,653     52,292       30,361     37,753
           Materials                          411             -                      -                411        409            2       -
           Repairs and Maintenance         15,197             -                      -             15,197     13,630        1,567      1,801
           Minor Equipment                    994             -                      -                994        859          135      1,951
                                          784,667            3,037                 43,950         831,654    749,158       82,496    301,860

      Court Records-
        Civil:
           Personnel                    1,989,045             -                      -          1,989,045   1,881,227     107,818   1,913,387
           Fringe Benefits                790,264             -                    10,370         800,634     783,001      17,633     753,516
           Services                          -                -                      -               -           -           -         96,346
           Supplies                          -                -                      -               -           -           -         19,392
           Materials                         -                -                      -               -           -           -           -
           Repairs and Maintenance           -                -                      -               -           -           -            190
           Minor Equipment                   -                -                      -               -           -           -            796
                                        2,779,309             -                    10,370       2,789,679   2,664,228     125,451   2,783,627
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2009
                                     With Comparative Totals for Year Ended December 31, 2008


                                                                                        2009

                                       Adopted          Prior               Budget              Final                                2008
                                        Budget     Reappropriations   Amendments/Transfers     Budget      Actual      Variance      Actual

      Court Records-
        Wills/Orphan's Court:
           Personnel                   1,428,795             -                   (43,020)      1,385,775   1,276,493     109,282     1,294,655
           Fringe Benefits               634,904             -                      -            634,904     581,417      53,487       620,762
           Services                         -                -                      -               -           -           -           42,898
           Supplies                         -                -                      -               -           -           -            5,482
           Repairs and Maintenance          -                -                      -               -           -           -            3,668
                                       2,063,699             -                   (43,020)      2,020,679   1,857,910     162,769     1,967,465

      Court Records-
        Criminal:
223




           Personnel                   1,321,589             -                      -          1,321,589   1,295,772      25,817     1,305,884
           Fringe Benefits               578,765             -                   (11,350)        567,415     552,951      14,464       539,891
           Services                         -                -                        50              50        -             50        27,401
           Supplies                         -                -                      -               -           -           -           20,823
           Materials                        -                -                      -               -           -           -             -
           Repairs and Maintenance          -                -                      -               -           -           -            2,657
                                       1,900,354             -                   (11,300)      1,889,054   1,848,723      40,331     1,896,656


      Treasurer:
           Personnel                   2,761,274             -                   (7,160)       2,754,114   2,754,114        -        2,710,156
           Fringe Benefits             1,122,799             -                  (42,410)       1,080,389   1,080,379            10   1,072,191
           Services                    1,443,341           73,070               138,120        1,654,531   1,654,490            41   1,105,701




                                                                                                                                                 Exhibit A-3 (Page 8 of 26)
           Supplies                       25,300              330                  (270)          25,360      25,353             7      23,428
           Materials                         600             -                     (310)             290         283             7       1,935
           Repairs and Maintenance        55,500             -                   (3,520)          51,980      51,971             9      47,597
           Minor Equipment               106,860             -                  (84,450)          22,410      22,407             3       2,299
                                       5,515,674           73,400                   -          5,589,074   5,588,997            77   4,963,307
                                                                                                                                                   Exhibit A-3 (Page 9 of 26)
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2009
                                      With Comparative Totals for Year Ended December 31, 2008


                                                                                         2009

                                        Adopted          Prior               Budget              Final                                 2008
                                         Budget     Reappropriations   Amendments/Transfers     Budget        Actual      Variance     Actual

      Sheriff:
            Personnel                   9,403,807             -                  (336,510)       9,067,297    9,059,503       7,794    9,004,082
            Fringe Benefits             3,030,051             -                   313,970        3,344,021    3,327,052      16,969    2,815,162
            Services                      337,267             -                    25,790          363,057      361,609       1,448      407,608
            Supplies                      101,900            3,611                 (8,292)          97,219       94,833       2,386      125,492
            Materials                       2,500             -                    (2,500)            -            -           -             124
            Repairs and Maintenance        37,335             -                     2,610           39,945       39,943           2       32,890
            Minor Equipment                 5,500             -                     4,932           10,432       10,432        -            -
                                       12,918,360            3,611                   -          12,921,971   12,893,372      28,599   12,385,358

      Court of Common Pleas-
224




        Judicial Support:
           Personnel                    8,514,349             -                  (22,980)        8,491,369    8,488,450       2,919    8,203,289
           Fringe Benefits              3,243,791             -                   82,290         3,326,081    3,325,212         869    3,069,139
           Services                     4,578,176             -                  563,290         5,141,466    5,139,326       2,140    4,582,217
           Supplies                       203,000             -                  (20,890)          182,110      182,102           8      161,185
           Materials                        4,300             -                   (2,740)            1,560          531       1,029        3,942
           Repairs and Maintenance         25,300             -                   (2,300)           23,000       22,997           3       37,802
           Minor Equipment                  7,000            3,805                  (520)           10,285        7,356       2,929       73,803
                                       16,575,916            3,805               596,150        17,175,871   17,165,974       9,897   16,131,377

      Court of Common Pleas-
        Jury Management:
           Personnel                      200,676             -                   (12,840)        187,836      187,829            7     188,156
           Fringe Benefits                 78,157             -                   (17,220)         60,937       60,930            7      70,503
           Services                        97,275            3,226                 (9,170)         91,331       91,197          134      91,451
           Supplies                         5,000             -                    (4,620)            380          375            5      21,977
           Repairs and Maintenance          1,000             -                      (990)             10         -              10        -
           Minor Equipment                  1,500             -                    (1,490)             10         -              10         798
                                          383,608            3,226                (46,330)        340,504      340,331          173     372,885
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2009
                                     With Comparative Totals for Year Ended December 31, 2008


                                                                                      2009

                                       Adopted          Prior               Budget            Final                               2008
                                        Budget     Reappropriations   Amendments/Transfers   Budget      Actual      Variance     Actual

      Court of Common Pleas-
        Criminal Division:
           Personnel                   2,064,133             -                   (69,910)    1,994,223   2,035,192     (40,969)   2,016,986
           Fringe Benefits               747,864             -                   (48,310)      699,554     716,050     (16,496)     718,687
           Services                    1,759,300             -                    53,470     1,812,770   1,812,025         745    1,859,103
           Supplies                       92,500             -                     8,630       101,130     101,126           4       55,269
           Materials                       4,500             -                    (4,440)           60        -             60        2,543
           Repairs and Maintenance         1,000             -                       200         1,200       1,192           8        1,281
           Minor Equipment                 1,000            2,070                   (990)        2,080       2,070          10        2,968
                                       4,670,297            2,070                (61,350)    4,611,017   4,667,655     (56,638)   4,656,837
225




      Court of Common Pleas-
        Adult Probation:
           Personnel                   4,236,689             -                    74,290     4,310,979   4,310,975           4    4,325,588
           Fringe Benefits             1,510,830             -                    63,400     1,574,230   1,574,218          12    1,417,790
           Services                      822,820             -                   (94,740)      728,080     731,728      (3,648)     653,065
           Supplies                       30,450               19                 (4,260)       26,209      26,199          10       27,498
           Materials                         600             -                      (590)           10        -             10           87
           Repairs and Maintenance        14,500             -                   (12,850)        1,650       1,645           5        1,738
           Minor Equipment                  -               2,557                   -            2,557       2,557        -            -
                                       6,615,889            2,576                 25,250     6,643,715   6,647,322      (3,607)   6,425,766

      Court of Common Pleas-




                                                                                                                                              Exhibit A-3 (Page 10 of 26)
        Pre-Trial Service:
           Personnel                     880,773             -                    (3,810)      876,963    865,713       11,250     851,592
           Fringe Benefits               308,414             -                   (21,060)      287,354    285,813        1,541     296,484
           Services                      332,000            6,000                 (8,040)      329,960    329,957            3     273,747
           Supplies                        7,000             -                      (720)        6,280      6,266           14       3,127
           Repairs and Maintenance         1,500             -                    (1,490)           10       -              10         295
           Minor Equipment                 3,000            1,630                 (1,280)        3,350      3,338           12       3,320
                                       1,532,687            7,630                (36,400)    1,503,917   1,491,087      12,830    1,428,565
                                                                                                                                               Exhibit A-3 (Page 11 of 26)
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2009
                                     With Comparative Totals for Year Ended December 31, 2008


                                                                                      2009

                                       Adopted          Prior               Budget            Final                               2008
                                        Budget     Reappropriations   Amendments/Transfers   Budget      Actual      Variance     Actual

      Court of Common Pleas-
        Civil Division:
           Personnel                   1,564,793             -                    13,790     1,578,583   1,578,378         205    1,557,701
           Fringe Benefits               501,096             -                    (8,420)      492,676     492,640          36      474,538
           Services                      662,500              637               (113,780)      549,357     548,633         724      639,736
           Supplies                       22,500              240                 20,070        42,810      42,800          10      113,526
           Repairs and Maintenance         1,000             -                        40         1,040       1,034           6        4,044
           Minor Equipment                15,000            5,008                 (3,030)       16,978      16,967          11       13,004
                                       2,766,889            5,885                (91,330)    2,681,444   2,680,452         992    2,802,549

      Court of Common Pleas-
226




        Family - Adult:
           Personnel                     438,194             -                   (68,110)      370,084     369,668         416      341,861
           Fringe Benefits               181,228             -                   (35,110)      146,118     120,705      25,413      149,891
           Services                    2,069,138             -                   (17,300)    2,051,838   2,051,832           6    2,037,449
           Supplies                       11,900             -                    (2,730)        9,170       9,160          10        6,711
           Repairs and Maintenance           500             -                      (490)           10        -             10          257
           Minor Equipment                   300             -                      (290)           10        -             10          (70)
                                       2,701,260             -                  (124,030)    2,577,230   2,551,365      25,865    2,536,099

      Court of Common Pleas-
        Family - Juvenile:
           Personnel                   6,599,869             -                    (8,360)    6,591,509   6,590,508       1,001    6,776,330
           Fringe Benefits             2,207,948             -                   (26,920)    2,181,028   2,180,884         144    2,131,889
           Services                    1,133,600             -                  (197,090)      936,510     936,232         278    1,120,581
           Supplies                      141,900              192                (52,760)       89,332      89,188         144       77,546
           Materials                       4,100             -                    (1,090)        3,010       3,001           9         -
           Repairs and Maintenance        39,400           13,087                 (4,900)       47,587      47,581           6       12,308
           Minor Equipment                 4,000            3,786                    (40)        7,746       7,258         488         -
                                      10,130,817           17,065               (291,160)    9,856,722   9,854,652       2,070   10,118,654
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2009
                                      With Comparative Totals for Year Ended December 31, 2008


                                                                                          2009

                                        Adopted           Prior               Budget               Final                                     2008
                                         Budget      Reappropriations   Amendments/Transfers      Budget         Actual      Variance        Actual

      Court of Common Pleas-
        Orphans' Court:
           Personnel                      786,851              -                    (7,870)         778,981       778,969           12        780,696
           Fringe Benefits                197,612              -                     3,150          200,762       200,700           62        185,846
           Services                       476,000              -                    (5,250)         470,750       470,233          517        446,706
           Supplies                        15,250              -                     5,030           20,280        20,274            6         19,538
           Repairs and Maintenance          2,500              -                    (1,240)           1,260         1,248           12          1,326
           Minor Equipment                  4,750              -                      (260)           4,490         4,480           10          3,236
                                         1,482,963             -                    (6,440)        1,476,523     1,475,904         619       1,437,348

      Court of Common Pleas-
227




        Minor Judiciary:
           Personnel                     4,695,026             -                  258,800          4,953,826     4,949,403       4,423       4,790,579
           Fringe Benefits               2,056,970             -                   42,840          2,099,810     2,099,197         613       1,947,930
           Services                      2,379,500            3,719                30,910          2,414,129     2,412,981       1,148       2,147,139
           Supplies                        239,000              731               (17,370)           222,361       222,095         266         218,739
           Repairs and Maintenance           7,500             -                      (80)             7,420         7,410          10          10,988
           Minor Equipment                   7,500              193                  (120)             7,573         7,568           5           8,390
                                         9,385,496            4,643               314,980          9,705,119     9,698,654       6,465       9,123,765

      Vacant Property Review Board:
           Other operating                100,000              -                      -             100,000        50,454       49,546         87,472




                                                                                                                                                         Exhibit A-3 (Page 12 of 26)
      Capital Lease:
           Other operating                    -                -                      -                 -        7,678,839   (7,678,839)          -

           Total General Government    158,856,935          213,021              2,527,065       161,597,021   166,708,068   (5,111,047)   155,640,752
                                                                                                                                                        Exhibit A-3 (Page 13 of 26)
                                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                              Schedule of Expenditures - Budget and Actual
                                                              General Fund
                                                    Year Ended December 31, 2009
                                        With Comparative Totals for Year Ended December 31, 2008


                                                                                           2009

                                          Adopted          Prior               Budget              Final                                   2008
                                           Budget     Reappropriations   Amendments/Transfers     Budget        Actual       Variance      Actual

      Public Safety:

      Emergency Management:
          Personnel                         796,840             -                    30,070         826,910      827,410          (500)     679,435
          Fringe Benefits                   288,642             -                   119,910         408,552      401,719         6,833      251,271
          Services                          820,435            3,317               (105,000)        718,752      672,178        46,574      710,063
          Supplies                          139,033           15,636                 25,000         179,669       91,494        88,175       91,094
          Materials                           6,850              578                 (1,200)          6,228        6,221             7        4,312
          Repairs and Maintenance            76,285              102                (33,780)         42,607       29,057        13,550       61,704
          Minor Equipment                    83,735           34,696                (35,000)         83,431       21,922        61,509       56,881
                                          2,211,820           54,329                   -           2,266,149    2,050,001      216,148     1,854,760
228




      Jail:
              Personnel                  29,244,102             -                   743,510       29,987,612   29,655,424      332,188    28,872,598
              Fringe Benefits            10,202,991             -                    78,380       10,281,371   10,167,029      114,342     9,861,543
              Services                   14,102,310             -                  (726,900)      13,375,410   12,085,705    1,289,705    13,551,324
              Supplies                      864,500              141                183,410        1,048,051    1,045,643        2,408       994,591
              Materials                     172,600            5,440                (34,430)         143,610      127,636       15,974       146,295
              Repairs and Maintenance       204,500             -                   (51,300)         153,200      153,033          167       211,445
              Minor Equipment                57,500             -                    (7,870)          49,630       49,628            2        39,852
                                         54,848,503            5,581               184,800        55,038,884   53,284,098    1,754,786    53,677,648

      County Police-
        Police:
           Personnel                     13,967,242             -                  (170,010)      13,797,232   13,225,404      571,828    12,486,009
           Fringe Benefits                3,414,279             -                    47,610        3,461,889    3,286,416      175,473     3,088,314
           Services                         704,064             -                      -             704,064      546,168      157,896       619,488
           Supplies                          96,884               12                   -              96,896       74,632       22,264        67,073
          Materials                             500             -                      -                 500         -             500           284
          Repairs and Maintenance           108,500            3,203                   -             111,703       93,641       18,062        58,997
          Minor Equipment                    88,000             -                      -              88,000       34,352       53,648         6,813
          Expenditure Recovery                 -                -                      -                -        (501,632)     501,632      (473,315)
                                         18,379,469            3,215               (122,400)      18,260,284   16,758,981    1,501,303    15,853,663
                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                           Schedule of Expenditures - Budget and Actual
                                                           General Fund
                                                 Year Ended December 31, 2009
                                     With Comparative Totals for Year Ended December 31, 2008


                                                                                        2009

                                       Adopted          Prior               Budget              Final                                  2008
                                        Budget     Reappropriations   Amendments/Transfers     Budget        Actual      Variance      Actual

      County Police-
        Building Guard:
           Personnel                   1,430,341             -                     -            1,430,341    1,010,675     419,666     1,087,045
          Fringe Benefits                499,763             -                  105,930           605,693      491,659     114,034       498,240
          Services                         4,950             -                     -                4,950        3,109       1,841         2,442
          Supplies                        14,600             -                     -               14,600       12,691       1,909        12,004
          Repairs and Maintenance         25,000             -                     -               25,000       22,338       2,662        18,760
          Minor Equipment                  1,000             -                      170             1,170          716         454          -
                                       1,975,654             -                  106,100         2,081,754    1,541,188     540,566     1,618,491

      County Police-
229




        Police Academy:
           Personnel                     425,811             -                    17,570         443,381      443,374            7      411,963
           Fringe Benefits                95,224             -                     4,740          99,964       98,270        1,694       93,275
           Services                      178,499             -                     1,860         180,359      157,623       22,736      198,643
           Supplies                       60,000              200                 (9,670)         50,530       47,934        2,596       42,798
           Materials                       8,330             -                      (700)          7,630        5,065        2,565        2,110
           Repairs and Maintenance         8,000             -                      -              8,000        4,467        3,533        3,674
           Minor Equipment                 1,600             -                     2,500           4,100        2,874        1,226         -
                                         777,464              200                 16,300         793,964      759,607       34,357      752,463

      County Police-
        Parks:




                                                                                                                                                   Exhibit A-3 (Page 14 of 26)
           Personnel                   3,287,443             -                      -           3,287,443    3,623,142    (335,699)    3,220,470
          Fringe Benefits                774,428             -                      -             774,428      820,362     (45,934)      752,812
                                       4,061,871             -                      -           4,061,871    4,443,504    (381,633)    3,973,282

           Total Public Safety        82,254,781           63,325               184,800        82,502,906   78,837,379   3,665,527    77,730,307
                                                                                                                                               Exhibit A-3 (Page 15 of 26)
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2009
                                      With Comparative Totals for Year Ended December 31, 2008


                                                                                       2009

                                        Adopted          Prior               Budget            Final                               2008
                                         Budget     Reappropriations   Amendments/Transfers   Budget      Actual      Variance     Actual

      Public Works:

      Public Works-
        Administration:
            Personnel                   1,123,366             -                  (190,880)      932,486    931,437        1,049    1,018,620
            Fringe Benefits               433,127             -                   (22,600)      410,527    410,035          492      463,138
            Services                      624,900             -                  (111,570)      513,330    512,237        1,093      249,356
            Supplies                       51,300             -                   (21,100)       30,200     30,191            9       27,348
            Materials                      29,000             -                   (17,040)       11,960     11,677          283         -
            Repairs and Maintenance        64,800            1,798                (61,030)        5,568      5,115          453       22,926
            Minor Equipment                28,250             -                   (14,140)       14,110     14,103            7          644
230




                                        2,354,743            1,798               (438,360)    1,918,181   1,914,795       3,386    1,782,032

      Public Works-
        Engineering:
            Personnel                     819,203             -                    83,530       902,733    882,588       20,145     723,384
            Fringe Benefits               353,436             -                    11,560       364,996    308,528       56,468     220,900
                                        1,172,639             -                    95,090     1,267,729   1,191,116      76,613     944,284

      Public Works-
        Maintenance:
            Personnel                   3,326,338             -                  363,070      3,689,408   3,703,996     (14,588)   2,802,136
            Fringe Benefits             1,482,471             -                  513,250      1,995,721   1,990,277       5,444    1,597,937
            Services                      614,700             -                  167,010        781,710     781,568         142      795,167
            Supplies                       88,800            1,887               (13,310)        77,377      75,038       2,339      104,840
            Materials                   1,001,650            1,839               (31,100)       972,389     930,656      41,733    1,041,124
            Repairs and Maintenance        79,650             -                   (1,010)        78,640      78,791        (151)     101,005
            Minor Equipment                38,500             -                   (6,950)        31,550      31,538          12        5,304
                                        6,632,109            3,726               990,960      7,626,795   7,591,864      34,931    6,447,513

      Public Works-
        Parks Maint:
            Personnel                   3,942,213             -                  (101,910)    3,840,303   3,840,300           3    4,098,642
            Fringe Benefits             2,131,149             -                  (246,680)    1,884,469   1,884,419          50    1,900,858
                                        6,073,362             -                  (348,590)    5,724,772   5,724,719          53    5,999,500
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2009
                                      With Comparative Totals for Year Ended December 31, 2008


                                                                                       2009

                                        Adopted          Prior               Budget            Final                                 2008
                                         Budget     Reappropriations   Amendments/Transfers   Budget        Actual      Variance     Actual

      Public Works-
        Facilities Management:
            Personnel                   3,705,430             -                   154,810      3,860,240    3,856,743       3,497    3,591,062
            Fringe Benefits             1,636,482             -                  (200,650)     1,435,832    1,421,205      14,627    1,266,255
            Services                    2,119,099           92,065                 96,680      2,307,844    2,307,302         542    2,361,228
            Supplies                      916,700             -                   (81,870)       834,830      834,546         284    1,252,978
            Materials                     203,000           11,252                 36,360        250,612      184,987      65,625      141,187
            Repairs and Maintenance       196,500             -                  (187,130)         9,370        9,363           7        7,309
            Minor Equipment                13,500             -                   (11,800)         1,700        1,687          13        1,539
                                        8,790,711          103,317               (193,600)     8,700,428    8,615,833      84,595    8,621,558
231




           Total Public Works          25,023,564          108,841               105,500      25,237,905   25,038,327     199,578   23,794,887

      Health and Welfare:

      Administrative Services-
        Veterans Affairs:
          Personnel                       125,129             -                       490       125,619      125,610            9     123,652
          Fringe Benefits                  36,668             -                        20        36,688       35,429        1,259      34,885
          Services                        367,982             -                    13,850       381,832      381,817           15     357,415
          Supplies                          1,675             -                     1,000         2,675        1,557        1,118       2,173
          Materials                       115,000             -                      -          115,000      114,997            3     100,316
          Repairs and Maintenance           1,500                 69                 -            1,569          981          588         794




                                                                                                                                                 Exhibit A-3 (Page 16 of 26)
           Minor Equipment                    500             -                      -              500          340          160        -
                                          648,454                 69               15,360       663,883      660,731        3,152     619,235
                                                                                                                                                   Exhibit A-3 (Page 17 of 26)
                                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                              Schedule of Expenditures - Budget and Actual
                                                              General Fund
                                                    Year Ended December 31, 2009
                                        With Comparative Totals for Year Ended December 31, 2008


                                                                                         2009

                                          Adopted          Prior               Budget            Final                                 2008
                                           Budget     Reappropriations   Amendments/Transfers   Budget        Actual      Variance     Actual

      Health-
        Administration:
           Personnel                      2,369,584             -                  (187,510)     2,182,074    2,109,925      72,149    1,976,935
           Fringe Benefits                  831,080             -                      -           831,080      766,282      64,798      720,388
           Services                       1,099,600             -                   (65,330)     1,034,270      705,774     328,496      828,863
           Supplies                          51,000             -                       330         51,330       50,507         823       57,105
           Materials                         33,300             -                      -            33,300       22,441      10,859       29,745
           Repairs and Maintenance           73,200             -                   (11,520)        61,680       28,506      33,174       40,316
           Minor Equipment                  107,050           45,684                   -           152,734       90,517      62,217       90,101
                                          4,564,814           45,684               (264,030)     4,346,468    3,773,952     572,516    3,743,453
232




      Health-
        Medical Services:
           Personnel                      2,514,940             -                      -         2,514,940    2,053,191     461,749    2,112,947
           Fringe Benefits                  893,107             -                      -           893,107      801,306      91,801      738,559
           Services                      12,232,800               15                  3,650     12,236,465   10,312,300   1,924,165   10,521,746
           Supplies                         218,200            1,864                (11,110)       208,954      140,749      68,205      160,649
           Materials                            875             -                      -               875          342         533        2,568
           Repairs and Maintenance           32,050             -                      -            32,050       10,204      21,846       16,222
           Minor Equipment                   15,900             -                      -            15,900       10,613       5,287        6,404
                                         15,907,872            1,879                 (7,460)    15,902,291   13,328,705   2,573,586   13,559,095

      Health-
        Enviromental Health Services:
           Personnel                      4,019,412             -                  107,760       4,127,172    4,093,640      33,532    4,304,345
           Fringe Benefits                1,511,357             -                   89,510       1,600,867    1,559,030      41,837    1,581,070
           Services                         944,450             -                  (44,920)        899,530      786,682     112,848    1,115,185
           Supplies                         101,900               43                  -            101,943       85,338      16,605      121,179
           Materials                         16,850             -                     -             16,850       13,962       2,888        9,803
           Repairs and Maintenance           77,750             -                     -             77,750       25,813      51,937       33,763
           Minor Equipment                   79,100           18,125                  -             97,225       52,471      44,754       73,690
                                          6,750,819           18,168               152,350       6,921,337    6,616,936     304,401    7,239,035
                                                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                       Schedule of Expenditures - Budget and Actual
                                                                       General Fund
                                                             Year Ended December 31, 2009
                                                 With Comparative Totals for Year Ended December 31, 2008


                                                                                                        2009

                                                    Adopted             Prior               Budget               Final                                                2008
                                                     Budget        Reappropriations   Amendments/Transfers      Budget              Actual            Variance        Actual

      Health-
        Laboratories:
           Personnel                                   650,263               -                      -             650,263            581,051              69,212       558,709
           Fringe Benefits                             226,778               -                    (1,180)         225,598            198,805              26,793       184,805
           Services                                     60,550               -                    68,320          128,870            128,774                  96       104,889
           Supplies                                    132,550              4,095                 52,000          188,645            185,204               3,441       129,277
           Materials                                       300               -                      -                 300                299                   1            67
           Repairs and Maintenance                      13,200               -                      -              13,200              4,628               8,572        10,092
           Minor Equipment                               3,450               -                      -               3,450              3,412                  38         1,414
                                                     1,087,091              4,095               119,140          1,210,326          1,102,173           108,153        989,253
233




      Human Services-
        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                                22,204,523               -                      -           22,204,523         21,373,293            831,230     20,662,040
           Fringe Benefits                           7,596,421               -                   100,000         7,696,421          7,603,394             93,027      7,025,494
           Services                                141,987,092             46,579               (267,000)      141,766,671        131,295,105         10,471,566    128,522,856
           Supplies                                  2,803,706              9,032                 70,000         2,882,738          2,868,696             14,042      2,918,349




                                                                                                                                                                                   Exhibit A-3 (Page 18 of 26)
           Materials                                     5,000               -                      -                5,000               -                 5,000          1,324
           Repairs and Maintenance                     169,080               -                      -              169,080            104,862             64,218         95,217
          Minor Equipment                              417,099            148,479                 97,000           662,578            560,999            101,579        449,803
          Expenditure Recovery                     (48,032,454)              -                (3,000,000)      (51,032,454)       (50,840,677)          (191,777)   (46,220,498)
          Contributed Services                      54,498,374               -                 3,000,000        57,498,374         60,323,241         (2,824,867)    53,018,292
                                                   181,648,841            204,090                   -          181,852,931        173,288,913          8,564,018    166,472,877

                                               ** Expenditures in 2009 of $4,885,698 were reclassified as other financing uses.
                                                                                                                                                                             Exhibit A-3 (Page 19 of 26)
                                                        COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                      Schedule of Expenditures - Budget and Actual
                                                                      General Fund
                                                            Year Ended December 31, 2009
                                                With Comparative Totals for Year Ended December 31, 2008


                                                                                                       2009

                                                   Adopted             Prior               Budget               Final                                            2008
                                                    Budget        Reappropriations   Amendments/Transfers      Budget            Actual            Variance      Actual

      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                                8,202,317               -                   254,290        8,456,607         8,456,603                 4     8,009,432
           Fringe Benefits                          3,555,924               -                  (170,500)       3,385,424         3,412,989           (27,565)    3,283,377
           Services                                 3,785,100               -                  (356,210)       3,428,890         3,430,283            (1,393)    3,758,117
           Supplies                                   700,500             53,383                 59,520          813,403           762,389            51,014       737,385
234




           Materials                                  117,100                 16                   -             117,116            73,891            43,225        84,899
           Repairs and Maintenance                    157,050                482                   -             157,532           109,750            47,782       160,856
           Minor Equipment                             75,000               -                   (38,230)          36,770            34,704             2,066        47,500
                                                   16,592,991             53,881               (251,130)      16,395,742        16,280,609           115,133    16,081,566

      John J. Kane Regional Health Centers-
        Scott:
           Personnel                               10,438,235               -                  152,500        10,590,735        10,590,733                 2    10,198,111
           Fringe Benefits                          4,024,894               -                  103,810         4,128,704         4,144,465           (15,761)    3,879,667
           Services                                 4,449,400                  9               (23,840)        4,425,569         4,401,734            23,835     4,460,289
           Supplies                                 1,076,050             65,082                  -            1,141,132         1,103,087            38,045     1,091,523
           Materials                                  102,300              4,448                20,000           126,748            98,943            27,805        91,975
           Repairs and Maintenance                    195,900              3,961                  -              199,861           123,332            76,529       182,949
           Minor Equipment                             75,000                819                31,000           106,819            84,154            22,665        63,713
                                                   20,361,779             74,319               283,470        20,719,568        20,546,448           173,120    19,968,227

                                              *** Expenditures in 2009 of $480,112 were reclassified as other financing uses.
                                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                    Schedule of Expenditures - Budget and Actual
                                                                    General Fund
                                                          Year Ended December 31, 2009
                                              With Comparative Totals for Year Ended December 31, 2008


                                                                                               2009

                                                Adopted          Prior               Budget            Final                                  2008
                                                 Budget     Reappropriations   Amendments/Transfers   Budget        Actual      Variance      Actual

      John J. Kane Regional Health Centers-
        McKeesport:
           Personnel                           11,552,641             -                  799,160      12,351,801   12,351,794           7    11,400,469
           Fringe Benefits                      4,751,977             -                  370,860       5,122,837    5,149,593     (26,756)    4,549,418
           Services                             5,378,400               21               772,160       6,150,581    6,150,517          64     5,311,639
           Supplies                             1,155,150           57,446               238,840       1,451,436    1,392,861      58,575     1,179,498
           Materials                              119,300              874                15,000         135,174      112,560      22,614       111,360
           Repairs and Maintenance                188,300            2,549                33,310         224,159      217,082       7,077       164,678
           Minor Equipment                         75,000             -                     -             75,000       55,812      19,188        49,211
                                               23,220,768           60,890              2,229,330     25,510,988   25,430,219      80,769    22,766,273
235




      John J. Kane Regional Health Centers-
        Ross:
           Personnel                            9,213,114             -                   322,220      9,535,334    9,535,331           3     9,139,923
           Fringe Benefits                      3,932,494             -                   192,750      4,125,244    4,151,846     (26,602)    3,815,781
           Services                             3,778,400              999               (355,830)     3,423,569    3,400,938      22,631     3,572,091
           Supplies                               920,850           47,449                (74,800)       893,499      875,336      18,163       856,156
           Materials                              107,200            2,090                (11,590)        97,700       86,622      11,078        75,411
           Repairs and Maintenance                146,400            4,292                  2,340        153,032      133,750      19,282       164,888
           Minor Equipment                         90,000            3,381                (36,110)        57,271       50,940       6,331        75,036
                                               18,188,458           58,211                 38,980     18,285,649   18,234,763      50,886    17,699,286

      John J. Kane Regional Health Centers-




                                                                                                                                                          Exhibit A-3 (Page 20 of 26)
        Central Services:
           Personnel                            3,938,101             -                    13,200      3,951,301    3,924,523      26,778     3,838,777
           Fringe Benefits                      1,621,197             -                    66,150      1,687,347    1,665,933      21,414     1,703,868
           Services                             3,200,300           10,637               (686,120)     2,524,817    2,452,493      72,324     2,290,798
           Supplies                             8,241,000            8,126             (1,572,130)     6,676,996    6,590,816      86,180     6,859,530
           Materials                                8,000             -                      -             8,000           53       7,947           485
           Repairs and Maintenance                 59,500             -                      -            59,500       48,165      11,335        49,235
           Minor Equipment                        195,000            1,115               (121,750)        74,365       65,969       8,396        28,473
                                               17,263,098           19,878             (2,300,650)    14,982,326   14,747,952     234,374    14,770,846
                                                                                                                                                              Exhibit A-3 (Page 21 of 26)
                                                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                       Schedule of Expenditures - Budget and Actual
                                                                       General Fund
                                                             Year Ended December 31, 2009
                                                 With Comparative Totals for Year Ended December 31, 2008


                                                                                                    2009

                                                   Adopted          Prior               Budget              Final                                 2008
                                                    Budget     Reappropriations   Amendments/Transfers     Budget        Actual      Variance     Actual

      Shuman Juvenile Detention Center:
          Personnel                                7,296,092             -                      (770)       7,295,322    6,893,690     401,632    6,802,151
          Fringe Benefits                          2,741,817             -                      -           2,741,817    2,619,810     122,007    2,458,370
          Services                                 1,570,500            1,550                   -           1,572,050    1,211,469     360,581    1,277,836
          Supplies                                   205,100              377                 16,240          221,717      173,264      48,453      116,348
          Materials                                  106,785            2,048                   (770)         108,063       53,084      54,979       69,907
          Repairs and Maintenance                    102,830             -                      -             102,830       96,815       6,015      100,666
          Minor Equipment                            110,800             -                   (14,700)          96,100       80,450      15,650       65,671
                                                  12,133,924            3,975                   -          12,137,899   11,128,582   1,009,317   10,890,949

      Community Intensive Supervision Program:
236




          Personnel                                2,704,339             -                      -           2,704,339    2,574,615     129,724    2,499,669
          Fringe Benefits                          1,171,457             -                      -           1,171,457    1,005,683     165,774      972,332
          Services                                   704,450             -                      -             704,450      547,494     156,956      488,825
          Supplies                                   275,700            8,197                   -             283,897      203,179      80,718      228,810
          Materials                                   12,000             -                      -              12,000        2,513       9,487        2,518
          Repairs and Maintenance                     17,550             -                      -              17,550        6,422      11,128        6,184
          Minor Equipment                             31,509             -                      -              31,509         -         31,509        3,570
                                                   4,917,005            8,197                   -           4,925,202    4,339,906     585,296    4,201,908

      Home Detention/Electronic Monitoring:
          Personnel                                  563,304             -                      -            563,304      545,292       18,012     551,136
          Fringe Benefits                            224,168             -                      -            224,168      190,683       33,485     208,659
          Services                                   396,875             -                      -            396,875      375,088       21,787     362,595
          Supplies                                    14,100            1,138                   -             15,238        5,831        9,407       5,059
          Repairs and Maintenance                      4,000             -                      -              4,000         -           4,000         518
          Minor Equipment                             20,500             -                      -             20,500         -          20,500      26,045
                                                   1,222,947            1,138                   -           1,224,085    1,116,894     107,191    1,154,012
                                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Schedule of Expenditures - Budget and Actual
                                                            General Fund
                                                  Year Ended December 31, 2009
                                      With Comparative Totals for Year Ended December 31, 2008


                                                                                          2009

                                        Adopted           Prior               Budget               Final                                     2008
                                         Budget      Reappropriations   Amendments/Transfers      Budget         Actual      Variance        Actual

      Institutional Care:
            Personnel                      101,369             -                      -              101,369       234,139     (132,770)       213,007
            Fringe Benefits                 86,119             -                      -               86,119        87,720       (1,601)        81,107
            Services                    27,085,600             -                      -           27,085,600    26,470,375      615,225     25,318,115
            Supplies                       163,500             -                      -              163,500       147,372       16,128        112,873
            Repairs and Maintenance            500             -                      -                  500          -             500           -
            Minor Equipment                  2,500             -                      -                2,500          -           2,500           -
                                        27,439,588             -                      -           27,439,588    26,939,606     499,982      25,725,102

           Total Health and Welfare    357,298,449          554,474                 15,360       357,868,283   337,536,389   20,331,894    325,881,117
237




      Culture and Recreation:

      Parks:
           Personnel                     2,463,287             -                   260,590         2,723,877     2,723,868           9       2,551,780
           Fringe Benefits                 509,789             -                    98,940           608,729       608,723           6         600,772
           Services                      3,760,287           37,868                (69,900)        3,728,255     3,677,697      50,558       3,234,263
           Supplies                        388,616            1,663                 88,830           479,109       422,051      57,058         482,394
           Materials                       531,318            6,360                (14,770)          522,908       501,102      21,806         489,219
           Repairs and Maintenance         128,140              422                  2,310           130,872       130,999        (127)        103,581
           Minor Equipment                 178,500             -                  (145,110)           33,390        35,967      (2,577)         32,591
                                         7,959,937           46,313               220,890          8,227,140     8,100,407     126,733       7,494,600




                                                                                                                                                         Exhibit A-3 (Page 22 of 26)
      Cooperative Extensions:
          Personnel                        84,792              -                       330           85,122        85,117             5        82,850
          Fringe Benefits                  45,485              -                       550           46,035        45,182           853        40,567
          Services                        148,119              -                    (1,220)         146,899       147,706          (807)      153,953
          Supplies                          6,500              -                       110            6,610         6,274           336         4,706
          Repairs and Maintenance           1,500              -                       280            1,780         1,570           210          -
          Minor Equipment                   7,000              -                       (50)           6,950         6,940            10         3,320
                                          293,396              -                      -             293,396       292,789          607        285,396
                                                                                                                                                             Exhibit A-3 (Page 23 of 26)
                                                      COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                    Schedule of Expenditures - Budget and Actual
                                                                    General Fund
                                                          Year Ended December 31, 2009
                                              With Comparative Totals for Year Ended December 31, 2008


                                                                                                 2009

                                                Adopted          Prior               Budget              Final                                   2008
                                                 Budget     Reappropriations   Amendments/Transfers     Budget        Actual      Variance       Actual


      Special Events:
           Personnel                              138,460             -                   (18,510)        119,950      119,937             13     110,449
           Fringe Benefits                         27,413             -                     1,290          28,703       28,695              8      19,721
           Services                               393,600             -                    20,600         414,200      414,196              4     433,277
           Supplies                                 3,600             -                    (2,030)          1,570        1,565              5       1,659
           Materials                                  500             -                      (500)           -            -            -             -
           Repairs and Maintenance                    850             -                      (850)           -            -            -              144
           Minor Equipment                          2,300             -                    (2,300)           -            -            -             -
                                                  566,723             -                    (2,300)        564,423      564,393             30     565,250
238




      Memorial Hall:
          Other Operating                         515,000             -                      -            515,000      540,876      (25,876)      524,953

           Total Culture and Recreation         9,335,056           46,313               218,590         9,599,959    9,498,465     101,494      8,870,199

      Education

      Community College
       of Allegheny County (CCAC):
           Other operating                     21,900,000             -                      -          21,900,000   21,900,000        -        21,518,152

      Allegheny County Library Association:
            Other operating                        30,000             -                      -             30,000       30,000         -           30,000

      Local Government Academy:
            Other operating                        80,000             -                      -             80,000       80,000         -           80,000

           Total Education                     22,010,000             -                      -          22,010,000   22,010,000        -        21,628,152
                                                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                  Schedule of Expenditures - Budget and Actual
                                                                  General Fund
                                                        Year Ended December 31, 2009
                                            With Comparative Totals for Year Ended December 31, 2008


                                                                                               2009

                                              Adopted          Prior               Budget              Final                               2008
                                               Budget     Reappropriations   Amendments/Transfers     Budget      Actual      Variance     Actual

      Economic Development:

      Allegheny General - Federal North
            Other operating                      83,764             -                      -             83,764     74,995        8,769      14,672

      Alcoa - North Shore
           Other operating                      154,008             -                      -            154,008    137,886       16,122     137,886

      Allegheny League of Municipalities:
            Other operating                      80,000             -                      -             80,000     80,000         -         80,000
239




      Bakery Square
           Other operating                        2,962             -                      -              2,962       2,652         310         -

      Brentwood Towne Square
           Other operating                       44,149             -                      -             44,149     39,527        4,622      38,828

      Broadhead Fording
           Other operating                       50,742             -                      -             50,742     45,430        5,312      45,430

      Clinton
            Other operating                      39,936             -                      -             39,936     35,755        4,181         -




                                                                                                                                                      Exhibit A-3 (Page 24 of 26)
      Council of Government:
          Other operating                        60,000             -                      -             60,000     61,931       (1,931)     65,569

      Fifth and Market
            Other operating                        -                -                      -               -           -           -            -

      Frazer Mills
           Other operating                      844,879             -                      -            844,879    756,433       88,446     823,186

      Fulton Building
           Other operating                       76,012             -                      -             76,012     68,055        7,957      68,055
                                                                                                                                                    Exhibit A-3 (Page 25 of 26)
                                                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                  Schedule of Expenditures - Budget and Actual
                                                                  General Fund
                                                        Year Ended December 31, 2009
                                            With Comparative Totals for Year Ended December 31, 2008


                                                                                               2009

                                              Adopted          Prior               Budget              Final                             2008
                                               Budget     Reappropriations   Amendments/Transfers     Budget      Actual     Variance    Actual


      Home Depot
          Other operating                        21,987             -                      -             21,987     19,685       2,302     19,419

      Lazarus - Center Triangle
           Other operating                       63,380             -                      -             63,380     56,745       6,635     56,745

      Mellon Client Service Center
           Other operating                      249,441             -                      -            249,441    223,328      26,113    223,328

      Moon Township Trans. Authority
240




          Other operating                       204,165             -                      -            204,165    182,792      21,373    243,872

      Mt Nebo Point
           Other operating                      102,633             -                      -            102,633     91,889      10,744     92,613

      Negley Centre
           Other operating                       36,494             -                      -             36,494     32,674       3,820     31,739

      North Shore East/River Avenue
           Other operating                       25,870             -                      -             25,870     23,162       2,708     41,808

      Panther Hollow
           Other operating                       62,339             -                      -             62,339     55,813       6,526     55,813

      Penn Avenue Place - Center Triangle
           Other operating                      126,424             -                      -            126,424    113,189      13,235    113,189


      Penn Liberty Plaza
        Other operating                          28,493             -                      -             28,493     25,510       2,983     26,264
                                                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                           Schedule of Expenditures - Budget and Actual
                                                                           General Fund
                                                                 Year Ended December 31, 2009
                                                     With Comparative Totals for Year Ended December 31, 2008


                                                                                                         2009

                                                       Adopted           Prior               Budget               Final                                    2008
                                                       Budget       Reappropriations   Amendments/Transfers      Budget         Actual      Variance       Actual

      PNC Firstside Center
        Other operating                                  257,520              -                      -             257,520       230,562       26,958       230,562


      Redevelopment Authority of Allegheny County-
       Economic Development Fund:
          Other operating                               2,323,797             -                      -            2,323,797     2,323,797         -        2,333,982


      Riverplace - City Ctr. Of Duquesne
            Other operating                                  -                -                      -                 -             -            -                 -
241




      Robinson Mall
           Other operating                               500,068              -                      -             500,068       447,719       52,349       506,345


      Schenley Center
          Other operating                                 77,297              -                      -               77,297        69,205        8,092        69,205


      South Side Works
           Other operating                               665,908              -                      -             665,908       596,198       69,710       591,884


      Station Square
            Other operating                               62,235              -                      -               62,235        55,720        6,515        55,755




                                                                                                                                                                        Exhibit A-3 (Page 26 of 26)
      Valley Medical
         Other operating                                  17,033              -                      -               17,033        15,250        1,783        15,250


      The Waterfront
          Other operating                                702,261              -                      -             702,261       628,745       73,516       581,936


           Total Economic Development                   6,963,797             -                      -            6,963,797     6,494,647     469,150      6,563,335


      Debt Service:

      Interest Charges                                  1,282,750             -                (1,282,750)             -             -            -        1,790,000


           Total Debt Service                           1,282,750             -                (1,282,750)             -             -            -        1,790,000


           Total Expenditures                    $    663,025,332          985,974              1,768,565       665,779,871   646,123,275   19,656,596   621,898,749
                               SPECIAL REVENUE FUNDS
The Special Revenue Funds are use to account for revenues derived from specific taxes, grants
or other restricted revenue sources that are primarily restricted to expenditures for specific
purposes (except those accounted for in Proprietary Funds, Capital Projects Funds or Trust
Funds).
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, 2009
                                             With Comparative Totals for December 31, 2008




                                                                                 County        Human
                                                 Transportation   Liquid Fuel    Grants        Services                   Totals
                                                     Fund         Tax Fund        Fund       Grants Fund           2009               2008

       Assets


Cash and short-term investments              $          709,155      -          34,441,213    30,127,927           65,278,295       95,823,613
Restricted cash and short-term investments                -        231,925         554,758    39,176,817           39,963,500       55,720,409
Due from other funds:
  General Fund                                              -         -          7,793,692     3,212,313           11,006,005       15,628,429
  Human Services Grants Fund                                -         -            250,713         -                  250,713          201,161
                                                            -         -          8,044,405     3,212,313           11,256,718       15,829,590
Due from other governments:
  Federal                                                   -         -         16,030,879    16,038,718           32,069,597       33,312,831
  State                                                     -         -          6,742,575    25,017,877           31,760,452       23,838,664
                                                          -           -         22,773,454    41,056,595           63,830,049       57,151,495
Due from component units                                  -           -                  -     3,105,551            3,105,551        2,093,932
Alcoholic beverage tax receivable                     2,946,638       -              -             -                2,946,638        3,105,662
Rental vehicle tax receivable                           408,567       -              -             -                  408,567          484,979
Other accounts receivable                                 -           -          1,284,068     9,303,552           10,587,620       10,930,525
Accrued interest receivable                               -           1,229          -            12,164               13,393           81,526
Loans receivable                                          -           -              -             -                    -               10,000


       Total assets                          $        4,064,360    233,154      67,097,898   125,994,919          197,390,331      241,231,731

       Liabilities and Fund Balances

Liabilities:
   Vouchers payable                          $              -         -          2,661,062     6,361,576            9,022,638       13,661,555
   Accrued payroll                                          -         -          1,578,474       585,304            2,163,778        1,909,242
   Payroll withholdings                                     -         -                  -           -                    -             97,255
Due To Other Funds:
   General Fund                                             -         -          5,493,626     3,492,179            8,985,805       13,386,578
   Debt Service Fund                                        -         -              -             -                    -            2,985,965
   County Capital Projects Fund                             -         -             78,601         -                   78,601            9,610
   County Grants Funds                                      -         -              -           250,713              250,713          201,161
                                                            -         -          5,572,227     3,742,892            9,315,119       16,583,314




                                                                      245
          Exhibit B-1 (Page 2 of 2)

                                         COUNTY OF ALLEGHENY, PENNSYLVANIA
                                            Combining Balance Sheet Schedule
                                                 Special Revenue Funds
                                                  December 31, 2009
                                      With Comparative Totals for December 31, 2008




                                                            Liquid     County        Human
                                          Transportation     Fuel      Grants        Services                  Totals
                                              Fund         Tax Fund     Fund       Grants Fund      2009                  2008

  Accrued liabilities                                -       -         4,777,685    42,738,547      47,516,232           56,360,721
  Due to component units                             -       -             -            61,406          61,406              649,282
  Retainage Payable                                  -       -           144,547         -             144,547                4,026
  Due to other governments:
    State                                            -       -             -           520,000         520,000                -
  Deferred revenues                                  -       -        25,328,018    71,870,371      97,198,389          117,338,191
  Accrued pension costs                              -       -           188,529        74,138         262,667              194,088
  Accrued workers' compensation                      -       -            12,146           798          12,944                8,749
  Accrued unemployment compensation                  -       -            54,342        25,510          79,852               31,385

      Total liabilities                              -       -        40,317,030   125,980,542     166,297,572          206,837,808



Fund balances:
  Reserved for encumbrances                        -         -           954,239        14,048         968,287              516,288
  Reserved for transportation                  4,064,360     -             -             -           4,064,360                -
  Reserved for liquid fuel                         -       233,154         -             -             233,154                -
  Reserved for grant programs                      -         -        25,826,629         -          25,826,629           21,231,461
  Unreserved:
    Designated fund balance                          -       -             -             -                 -             12,000,000
    Undesignated fund balance                        -       -             -                 329               329          646,174

      Total fund balances                      4,064,360   233,154    26,780,868        14,377      31,092,759           34,393,923

      Total liabilities
        and fund balances             $        4,064,360   233,154    67,097,898   125,994,919     197,390,331          225,668,371




                                                              246
                                                                                                                        Exhibit B-2

                               COUNTY OF ALLEGHENY, PENNSYLVANIA
              Combining Statement of Revenues, Expenditures and Changes in Fund Balances
                                        Special Revenue Funds
                                    Year Ended December 31, 2009
                      With Comparative Totals for Year Ended December 31, 2008




                                                                             County         Human
                                            Transportation   Liquid Fuel     Grants         Services               Totals
                                                Fund         Tax Fund         Fund        Grants Fund       2009              2008



Revenues:
  Federal revenues                      $          -             -          56,406,317    134,901,329    191,307,646    234,177,058
  State revenues                                   -         4,089,411      30,482,772    502,579,693    537,151,876    568,315,112
  Alcoholic beverage tax                      27,445,903         -               -              -         27,445,903     37,004,890
  Rental vehicle tax                           5,268,531         -               -              -          5,268,531      5,864,631
  Fees                                             -             -          23,230,750          -         23,230,750     24,156,566
  Interest earnings                                -            21,844         266,202      2,617,743      2,905,789      4,331,575
  Miscellaneous revenues                           -             -          10,567,234      1,084,231     11,651,465      9,183,670

       Total revenues                         32,714,434     4,111,255     120,953,275    641,182,996    798,961,960    883,033,502


Expenditures:
  General government                               -             -          45,347,618          -         45,347,618     42,655,776
  Public safety                                    -             -          32,672,895          -         32,672,895     32,400,078
  Public works                                     -         4,025,000       1,005,743          -          5,030,743      4,970,931
  Health and welfare                               -             -          18,324,756    609,544,111    627,868,867    702,028,050
  Culture and recreation                           -             -             447,059          -            447,059        721,508
  Education                                        -             -             123,800          -            123,800         90,310
  Economic development                             -             -          23,239,135          -         23,239,135     32,091,885
  Economic opportunity                             -             -               -         37,277,998     37,277,998     34,537,949
  Transportation                              27,668,699         -               -              -         27,668,699     27,453,060


       Total expenditures                     27,668,699     4,025,000     121,161,006    646,822,109    799,676,814    876,949,547


      Excess (deficiency) of revenues
        over expenditures                      5,045,735        86,255        (207,731)    (5,639,113)      (714,854)        6,083,955


Other financing sources (uses):
  Transfers in                                     -             -           6,863,250      5,719,302     12,582,552        17,965,207
  Transfers out                              (13,411,871)        -          (1,546,179)      (210,812)   (15,168,862)       (6,095,058)


       Total other financing
         sources (uses)                      (13,411,871)        -           5,317,071      5,508,490     (2,586,310)       11,870,149


         Net change in fund balance           (8,366,136)       86,255       5,109,340       (130,623)    (3,301,164)       17,954,104

Fund balances at beginning of year            12,430,496       146,899      21,671,528       145,000      34,393,923        16,439,819


Fund balances at end of year            $      4,064,360       233,154      26,780,868         14,377     31,092,759        34,393,923




                                                                     247
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, 2009
                     With Comparative Actual Amounts for Year Ended December 31, 2008



                                                                    2009

                                                                                                 2008
                                                Budget             Actual       Variance         Actual

   Revenues:
    Taxes:
      Alcoholic beverage tax              $   26,500,000         27,445,903      945,903       37,004,890
      Rental vehicle tax                       5,800,000          5,268,531     (531,469)       5,864,631

       Total revenues                         32,300,000         32,714,434      414,434       42,869,521

   Expenditures:

    Transportation                            27,668,700         27,668,699                1   27,453,060

       Excess (deficiency) of revenues
        over expenditures                      4,631,300          5,045,735      414,435       15,416,461

   Other financing sources (uses):
    Transfers out                             (16,631,300)       (13,411,871)   3,219,429      (2,985,965)

       Total other financing sources (uses)   (16,631,300)       (13,411,871)   3,219,429      (2,985,965)

       Net change in fund balance             (12,000,000)        (8,366,136)   3,633,864      12,430,496

   Fund balance at beginning of year          12,430,496         12,430,496         -               -

   Fund balance at end of year            $      430,496          4,064,360     3,633,864      12,430,496




                                                           248
                                                                                       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, 2009
              With Comparative Actual Amounts for Year Ended December 31, 2008




                                                             2009

                                                                                     2008
                                             Budget          Actual     Variance     Actual

Revenues:
  State revenues:
    State liquid fuel tax                $   4,000,000      4,089,411     89,411    4,306,336
  Interest earnings                             25,000         21,844     (3,156)      16,553

       Total revenues                        4,025,000      4,111,255     86,255    4,322,889

Expenditures:
  Public works:
    Road maintenance:
       Personnel                             4,025,000      4,025,000      -        4,550,000

       Excess (deficiency) of revenues
         over expenditures                      -             86,255      86,255    (227,111)

Fund balance at beginning of year             146,899        146,899       -         374,010

Fund balance at end of year              $    146,899        233,154      86,255     146,899




                                                      249
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, 2009




                                                           Resources                     Uses



                                                            Federal                     Other
                                                              and                     Operating
                                                             State      Personnel    Expenditures     Total



Federal Programs:
 Juvenile Accountability Incentive Block Grant         $      145,405        -           145,820        145,820
 Community Development Block Grant                         14,562,768    2,673,224    11,738,936     14,412,160
 AMERICORP                                                    142,679       17,280       (91,770)       (74,490)
 Child Support Enforcement Program                         13,152,139    8,821,403     2,303,518     11,124,921
 Improvement Program                                        1,701,755    1,701,755         -          1,701,755
 Emergency Shelter Grant                                      762,605       30,361       732,244        762,605
 Home Investment Program                                    4,406,986      484,739     4,099,784      4,584,523
 Lead Hazard Awareness                                        368,269      316,603        52,829        369,432
 Metro Medical Response System                                343,471        -           343,574        343,574
 Justice Assistance Grant                                     316,284       73,679       239,548        313,227
 Immunization Program                                       1,158,102      854,264       296,494      1,150,758
 AIDS Program                                                 346,118      202,081       127,958        330,039
 Nurse-Family Partnership                                     327,669        -           358,039        358,039
 Traffic Safety                                                99,046       80,082        18,965         99,047
 Home Injury Prevention                                       198,119      140,601        57,518        198,119
 Maternal & Child Health                                      453,486      409,983        67,055        477,038
 Women, Infants and Children Program                        2,907,874    2,268,881       638,993      2,907,874
 Criminal Justice Public Safetly Information Sharing          362,278        -           363,603        363,603
 County Police Forfeiture                                     153,185        -           158,202        158,202
 Civil Service Agreement                                      178,336       97,234        57,010        154,244
 PM 2.5 Air Monitoring                                        324,270      120,341       202,849        323,190
 Osteoporosis, Nutrition, Physical Activity                    68,456        -            90,887         90,887
 Emergency Preparedness Bioterrorism                          299,898      113,929       187,163        301,092
 Urban Area Security Initiative                             4,285,867        -         4,284,438      4,284,438
 State Homeland Security                                    4,948,032        -         4,948,535      4,948,535
 Allegheny Aftercare Program                                   88,913        -            88,913         88,913
 Housing Rehabilitation                                         5,806        -             -              -
 DUI Court                                                    152,366      142,566         9,800        152,366
 NIJ Crime Lab Improvement                                      3,458        -             3,458          3,458
 Backlog Reduction                                            166,984        5,872       161,112        166,984
 Strengthen Jail Mgmt. Information                            201,610      201,610         -            201,610
 DA Federal Asset Sharing Fund                                 21,904        -           102,591        102,591
 BJA Targeting Violent Crimes                                   7,045        -             7,045          7,045
 Forensic Casework                                             38,947       16,922        22,025         38,947
 Paul Coverdell                                                   114        -               114            114
 Day Reporting Center                                         182,456      272,721       183,785        456,506
 Air Pollution                                              1,020,673    1,202,647       650,083      1,852,730
 Closed Special Revenue Fd 60                               1,106,204        -             -              -
 Pennsylvania Diabetes Plan                                    37,924       53,452         9,873         63,325
 Miscellaneous Revenue                                      1,358,818   39,634,782    27,467,893     67,102,675
        Total federal programs                             56,406,317   59,937,012    60,128,884    120,065,896




                                                           250
                                                                                  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, 2009




                                                     Resources                       Uses

                                                      Federal                       Other
                                                        and                       Operating
                                                       State       Personnel     Expenditures      Total

State Programs:
 Pennsylvania Diabetes Plan                              26,897        53,998          9,873         63,871
 911 Emergency Communications                        10,935,075     8,356,396      2,629,688     10,986,084
 Act 24 Grant                                            20,507         -             20,507         20,507
 Independent Living                                   3,111,752         -          3,111,752      3,111,752
 Insurance Fraud Prevention Grant                       351,683       326,403         25,814        352,217
 Radiation Emergency Response                            12,680         -             12,713         12,713
 Hazardous Material Emergency Response                   34,068         -             36,129         36,129
 Stormwater Management                                   22,711         -             22,711         22,711
 Pa Department of Education Title I                     123,800         -            123,800        123,800
 Maternal and Child Health                              540,343       444,148         72,643        516,791
 Colon Cancer                                            43,113         -             43,113         43,113
 School Based Probation                               1,586,503     2,204,853          1,112      2,205,965
 Intermediate Punishment/Electronic Monitoring        1,477,435       309,923       (149,434)       160,489
 Drug Court/Restrictive Intermediate Punishment       1,240,073       324,564        925,375      1,249,939
 County Police In-Service Training                       99,134            13         99,120         99,133
 Tobacco Control                                      2,000,131         -          2,013,820      2,013,820
 AIDS Program                                           226,958       140,428         88,920        229,348
 Brownfields Housing                                     85,376         -             88,837         88,837
 Auto Theft Task Force                                  196,892       189,117         14,340        203,457
 Land Use Planning & Technical Assistance Program         2,656         -              2,000          2,000
 Sexually Transmitted Diseases                          412,514       220,697        420,566        641,263
 Housing and Redevelopment Assistance                   156,064         -            156,592        156,592
 Pittsburgh Municipal Court                           1,030,328     2,446,926        136,649      2,583,575
 Court Security Equipment                               152,162        41,059        111,103        152,162
 DCED Crime Lab                                         618,958        53,021        565,977        618,998
 Community Regional Development                         408,488        40,692        375,123        415,815
 West Nile Virus                                        153,191        99,228         53,963        153,191
 G-20 Summit                                          2,446,026     1,316,684      1,129,342      2,446,026
 Braddock Senior Housing                                450,000         -            450,000        450,000
 PA Gaming Control Board                                 54,579        26,148         28,431         54,579
 Act 88 of 2001                                         181,965       181,965          -            181,965
 Department of Community and Economic Development        73,342         -             73,354         73,354
 Lead Hazard Awareness                                    1,163       317,140         52,829        369,969
 Miscellaneous Revenue                                2,206,205    42,619,900     51,102,244     93,722,144

       Total state programs                          30,482,772    59,713,303     63,849,006    123,562,309

       Total federal and state programs              86,889,089   119,650,315    123,977,890    243,628,205
Non-federal/state programs                           34,064,186   (58,943,005)   (63,524,194)   (122,467,199)
       Grand total                              $   120,953,275    60,707,310     60,453,696    121,161,006




                                                     251
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, 2009




                                                     Resources                    Uses

                                                      Federal                     Other
                                                       and                      Operating
                                                       State       Personnel   Expenditures      Total


  Federal Programs:
   Behavioral Health - Operations               $     2,842,359         -        2,842,359      2,842,359
   Mental Retardation - Operations                   60,621,313         -       60,621,313     60,621,313
   Drug and Alcohol - Operations                      6,621,610         -        6,621,610      6,621,610
   Early Intervention - Operations                    1,188,710         -        1,188,710      1,188,710
   Senior Companion Program                             462,209         -          462,209        462,209
   Aging Block Grant                                  9,035,416         -        9,035,416      9,035,416
   CSW Title V                                          841,246         -          841,246        841,246
   Aging and Disability Grant                               895         -              895            895
   Keeping Seniors Connected                              5,993         -            5,993          5,993
   Nursing Home Transition                              200,565         -          200,565        200,565
   HUD Grant                                         10,723,660         -       10,723,660     10,723,660
   Family Center Initiative                           1,014,188         -        1,014,188      1,014,188
   Independent Living                                   168,913         -          168,913        168,913
   Medicaid Waiver                                    1,737,209         -        1,737,209      1,737,209
   Farmers Market Nutrition Program                      17,564         -           17,564         17,564
   SAMHSA Mental Health Grant                         1,242,441         -        1,242,441      1,242,441
   Community Services Block Grant                     2,556,111         -        2,556,111      2,556,111
   Headstart Program                                 10,593,917         -       10,593,917     10,593,917
   Low Income Home Energy Assistance Program             91,436         -           91,436         91,436
   Workforce Investment Act                           7,650,042         -        7,650,042      7,650,042
   Medical Assistance Transportation Program          4,446,511         -        4,446,511      4,446,511
   Employment, Advancement and Retention Network      9,631,286         -        9,631,286      9,631,286
   Criminal Justice Mental Health                        (5,209)        -           (5,209)        (5,209)
   Jail Diversion                                       108,939         -          108,939        108,939
   Summer Food Program                                  562,669         -          562,669        562,669
   Child and Family On-Site Review                       23,106         -           23,106         23,106
   Homeless Assistance Program                          657,756         -          657,756        657,756
   AMERICORP                                            546,133         -          546,133        546,133
   Employment and Community Conservation                657,413         -          657,413        657,413
   Emergency Food Assistence Program                    196,170         -          196,170        196,170
   Community Learning Center                            144,953         -          144,953        144,953
   Dislocated Workers                                   268,848         -          268,848        268,848
   Jump Start                                            46,957         -           46,957         46,957
        Total federal programs                      134,901,329         -      134,901,329    134,901,329




                                                         252
                                                                               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, 2009




                                                Resources                     Uses

                                                 Federal                      Other
                                                  and                       Operating
                                                  State       Personnel    Expenditures      Total

State Programs:
 Behavioral Health - Operations                 97,421,263         -        97,421,263     97,421,263
 Mental Retardation - Operations                62,698,972         -        62,698,972     62,698,972
 Drug and Alcohol - Operations                  13,630,094         -        13,630,094     13,630,094
 Early Intervention - Operations                10,204,257         -        10,204,257     10,204,257
 Human Service Development Fund                  3,286,097         -         2,159,264      2,159,264
 Aging Block Grant                              30,379,995         -        30,379,995     30,379,995
 AAAMR County Initiative                             2,000         -             2,000          2,000
 Adult Immunization                                  2,990         -             2,990          2,990
 Nursing Home Transition                           200,565         -           200,565        200,565
 Behavioral Health Managed Care                266,682,159         -       266,682,159    266,682,159
 Family Center Initiative                        1,165,925         -         1,165,925      1,165,925
 Integrated Children Services Plan                 220,433        60,496       159,937        220,433
 Medicaid Waiver                                 1,594,205         -         1,594,205      1,594,205
 SAMHSA Mental Health Grant                        966,728         -           966,728        966,728
 Family Support Demonstration Planning             639,575         -           639,575        639,575
 Homeless Assistance Program                     3,405,980         -         3,405,980      3,405,980
 Medical Assistance Transportation Program       4,816,108         -         4,816,108      4,816,108
 Child and Family On-Site Review                    23,106         -            23,106         23,106
 Child & Adult Care Food Program                   872,572         -           872,572        872,572
 State Employment and Training                      (1,257)        -            (1,257)        (1,257)
 HeadStart Program                               2,311,503         -         2,311,503      2,311,503
 Employment, Advancement and Retention Network      (1,871)        -            (1,871)        (1,871)
 Workforce Investment Act                          392,594         -           392,594        392,594
 Employment and Community Conservation              96,550         -            96,550         96,550
 State Food Purchase Program                     1,569,150         -         1,569,150      1,569,150

       Total state programs                    502,579,693        60,496   501,392,364    501,452,860
       Total federal and state programs        637,481,022        60,496   636,293,693    636,354,189

Non-federal/state programs                      3,701,974          -        10,467,920     10,467,920
       Grand total                          $ 641,182,996         60,496   646,761,613    646,822,109




                                                     253
                                          DEBT SERVICE FUND
The Debt Service Fund accounts for the accumulation of resources for and the payment of gen-
eral long-term debt principal and related costs of the County.
                                                                                          Exhibit C-1

                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                              Balance Sheet
                                            Debt Service Fund
                                           December 31, 2009
                               With Comparative Totals for December 31, 2008



                                                                     2009               2008
          Assets

Restricted cash and short-term investments                  $          3,873,353         3,396,506
Delinquent property taxes receivable,
  net of $122,733 allowance for uncollectible
  property taxes in 2009 and $294,379 in 2008                          1,123,182         1,506,603
Liened property taxes receivable,
  net of $2,170,406 allowance for uncollectible
  property taxes in 200 and $2,171,058 in 2008                         3,415,330         2,249,443
Due from other funds:
  General Fund                                                          138,108           222,324
  Transit Fund                                                              -            2,985,965
  County Capital Projects Fund                                              -            8,345,002
Due from component units                                               8,250,000          120,660
Other accounts receivable                                              1,251,318           50,284
Accrued penalty and interest receivable                                     71,095         34,731
Accrued interest receivable                                                      152           6,788

        Total assets                                        $         18,122,538        18,918,306
        Liabilities and Fund Balance

Liabilities:
  Vouchers payable                                          $               16,931         60,387
  Accrued interest payable                                                      1,759          1,759
  Due to other funds:
     General Fund                                                     11,515,123        11,544,712
  Tax refunds payable                                                       64,987         97,165
  Deferred revenue                                                     4,538,512         3,756,047
  Matured bonds payable                                                     61,567        199,890

         Total liabilities                                            16,198,879        15,659,960

Fund balance:
     Reserved for debt service interest payments                            -            1,021,208
     Unreserved:
        Designated fund balance                                        1,923,659         2,237,138

         Total fund balance                                            1,923,659         3,258,346

         Total liabilities and fund balance                 $         18,122,538        18,918,306




                                                   257
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, 2009
                   With Comparative Actual Amounts for Year Ended December 31, 2008


                                                                     2009
                                                     Final                                        2008
                                                    Budget           Actual        Variance       Actual

 Revenues:
   Property taxes:
     Current                                   $   34,899,000      33,768,582      (1,130,418)   50,421,784
     Delinquent                                       261,000         652,292         391,292       283,756
     Liened                                           274,000         181,661         (92,339)      137,368
     Interest and penalty                             264,000         294,444          30,444       235,371
     Tax refunds                                     (797,000)       (515,007)        281,993      (764,264)

                                                   34,901,000      34,381,972       (519,028)    50,314,015

   State revenues                                  10,084,000      10,261,139        177,139     12,490,715
   Local government units revenues                     41,000          53,393         12,393         96,603
   Interest earnings                                  802,363         122,192       (680,171)       502,628
   Miscellaneous revenues                             600,000       1,549,004        949,004        600,981

        Total revenues                             46,428,363      46,367,700         (60,663)   64,004,942

 Expenditures:
   Debt service:
     Principal retirement                          38,922,500      38,232,500        690,000     33,205,000
     Interest charges                              27,299,903      24,612,032      2,687,871     26,853,232
     Costs of issuance                                  -             155,834       (155,834)         -


        Total expenditures                         66,222,403      63,000,366      3,222,037     60,058,232

        Excess (deficiency) of revenues
          over expenditures                        (19,794,040)    (16,632,666)    3,161,374      3,946,710

 Other financing sources (uses):
   Issuance of general obligation
      refunding bonds                                   -           27,500,000     27,500,000          -
   Premium on refunding bonds                           -            1,766,257      1,766,257          -
   Payment to refunded bond escrow agent                -          (29,110,423)   (29,110,423)         -
   Operating transfer in                           19,325,467       18,019,791     (1,305,676)    18,361,025
   Operating transfer out                               -          (11,127,646)   (11,127,646)   (19,049,389)

        Total other financing sources (uses)       19,325,467       7,047,979     (12,277,488)     (688,364)

 Special item:
   Proceeds from sale of building                        -          8,250,000      8,250,000           -

         Net change in fund balance                  (468,573)      (1,334,687)     (866,114)     3,258,346

 Fund balance at beginning of year                  3,258,346       3,258,346           -              -


 Fund balance at end of year                   $    2,789,773       1,923,659       (866,114)     3,258,346




                                                             258
                                CAPITAL PROJECTS FUND
The Capital Projects Fund Accounts for financial resources to be used for the acquisition or
construction of major capital facilities (other that those financed by Proprietary Funds).
                                                                                  Exhibit D-1

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                          Balance Sheet
                                      Capital Projects Fund
                                       December 31, 2009
                           With Comparative Totals for December 31, 2008




                                                       2009                2008

        Assets
        _____

Cash and short-term investments                $       22,283,996          51,747,330
Due from other funds:
  General Fund                                         60,391,379          13,154,274
  County Grants Fund                                       78,601               9,610
                                                       60,469,980          13,163,884
Due from other governments:
  Federal                                               4,171,101           3,950,686
  State                                                 1,738,082           1,505,648
  Local                                                 1,703,919             937,919
                                                        7,613,102           6,394,253

Accrued interest receivable                                48,447            127,695

       Total assets                            $       90,415,525          71,433,162


       Liabilities and Fund Balances
       ________________________

Liabilities:
   Vouchers payable                            $        3,795,159           4,760,903
   Due to other funds:
     General Fund                                       5,717,510           5,949,390
     Debt Service                                           -               8,345,002
                                                        5,717,510          14,294,392

  Accrued liabilities                                  11,409,916          10,005,910
  Loans payable                                         3,000,000           3,000,000
  Retainage payable                                     3,010,931           3,805,717

       Total liabilities                               26,933,516          35,866,922

Fund balances:
  Reserved for encumbrances                            15,465,258          12,660,725
  Reserved for future projects                         48,016,751          22,905,515

       Total fund balances                             63,482,009          35,566,240

       Total liabilities and fund balances     $       90,415,525          71,433,162




                                               261
Exhibit D-2

                               COUNTY OF ALLEGHENY, PENNSYLVANIA
                   Statement of Revenues, Expenditures and Changes in Fund Balances
                                         Capital Projects Fund
                                    Year Ended December 31, 2009
                       With Comparative Totals for Year Ended December 31, 2008




                                                            2009                      2008

 Revenues:
   Federal revenues                                   $   23,311,713              14,132,105
   State revenues                                          4,080,829               3,056,038
   Local governmental units revenues                         766,000               1,000,000
   Interest Income                                           487,820               2,273,224
   Miscellaneous                                             617,023                 226,463

         Total revenues                                   29,263,385              20,687,830

 Expenditures:
   Bridges                                                32,840,054              23,016,899
   Roads                                                  14,830,985              12,908,300
   Transportation                                          9,910,779               5,260,000
   Parks                                                   3,215,919               5,378,666
   Buildings                                               6,096,893              24,175,645
   Equipment                                               5,782,225               7,602,088
   Feasibility studies                                       149,879                 102,819
   Other                                                   1,550,000                  50,000
   Cost of issuance                                          536,564                 604,591

         Total expenditures                               74,913,298              79,099,008

         Deficiency of revenues
           over expenditures                              (45,649,913)           (58,411,178)

 Other financing sources (uses):
   Issuance of general obligation bonds                    80,000,000             49,220,000
   Premium on bonds                                             -                    649,649
   Discount on bond issuance                                 (833,340)                 -
   Transfers in                                             9,910,779                  -
   Transfers out                                          (15,511,757)           (16,138,079)

         Total other financing sources                    73,565,682              33,731,570

         Net change in fund balances                      27,915,769             (24,679,608)

 Fund balances at beginning of year                       35,566,240              60,245,848

 Fund balances at end of period                       $   63,482,009              35,566,240




                                                262
                              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, 2009
                       With Comparative Totals for December 31, 2008



                                                        Risk Management Fund
                                                      2009               2008

       Assets
        _____

Current assets:
 Cash and short-term investments             $         320,820                 -
 Due from other funds:
     General Fund                                      464,362             771,974
 Accounts receivable                                     -                  93,841

        Total assets                         $         785,182             865,815

       Liabilities and Net Assets
       ____________________

Current liabilities:
 Vouchers payable                            $            6,916                    12
 Due to other funds:
     General Fund                                      664,321             641,737
                                                       664,321             641,737
 Accrued liabilities                                   113,945             224,066
        Total liabilities                              785,182             865,815

Net Assets
  Unrestricted net assets                                 -                    -

        Total liabilities and net assets     $         785,182             865,815




                                           265
Exhibit E-2

                            COUNTY OF ALLEGHENY, PENNSYLVANIA
                Statement of Revenues, Expenditures and Changes in Fund Balances
                                      Internal Service Fund
                                 Year Ended December 31, 2009
                    With Comparative Totals for Year Ended December 31, 2008




                                                           Risk Management Fund
                                                           2009             2008

          Operating revenues:
           Contribution - employee                  $        342,480        349,667
           Contribution - employer                         1,563,575      1,731,640
              Total operating revenues                     1,906,055      2,081,307

          Operating expenses:
           Insurance claims expense                        1,906,055      2,081,307
              Total operating expenses                     1,906,055      2,081,307

          Operating loss                                       -               -

          Non-operating expenses:
            Transfers In                                       -               -

          Change in net assets                                 -               -


          Net assets at beginning of year                      -               -


          Net assets at end of year                 $          -               -




                                             266
                                                                        Exhibit E-3

                   COUNTY OF ALLEGHENY, PENNSYLVANIA
                         Statement of Cash Flows
                           Internal Service Fund
                      Year Ended December 31, 2009




                                                                  Risk
                                                              Management
                                                                 Fund


Cash flows from operating activities
  Receipts from customers                                 $      2,307,508
  Payments to suppliers                                         (1,986,688)
      Net cash provided by operating activities                   320,820

Balance - beginning of year                                         -


Balance - end of year                                     $       320,820


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

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

    Decrease in accounts receivable                       $        93,841
    Decrease in due from other funds                              307,612
    Increase in due to other funds                                 22,584
    Increase in vouchers payable                                    6,904
    Decrease in accrued liabilities                              (110,121)
    Total adjustments                                             320,820

    Net cash provided by operating activities             $       320,820




                                       267
                           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, 2009
                           With Comparative Totals for December 31, 2008




                                                                 2009          2008

       Assets

Cash and short-term investments                           $     9,215,521    21,706,090
Investments (at fair value):
  Equity:
     U.S. common and preferred stock                          110,198,296   115,113,112
     American Depositary Receipts (ADRs)                        2,337,747     5,424,348
     S&P 500 index fund                                        62,317,779    57,147,142
     Non-U.S. stocks and equity mutual fund                   151,641,644    70,643,979
  Bonds and Notes:
     Corporate certificates of deposit                             50,500       244,645
     U.S. government and related agency debt                   15,148,512    22,409,960
     Fannie Mae and Freddie Mac debt                           28,826,877    36,561,816
     Fixed income mutual funds                                 84,367,721    52,178,749
     U.S. corporate debt instruments                           54,800,334    53,854,451
     Non-U.S. government and corporate debt                    10,639,161     9,811,012
  Other Investments:
     Hedge funds                                                2,328,458    21,913,000
     Real estate                                               38,241,598    48,177,675
     Commodities fund                                          19,791,796    16,045,897
     Venture capital / private equity                          62,018,260    50,469,425
Amount due from brokers                                         2,022,941       276,930
Accrued interest and dividends receivable                       1,377,202     1,592,113
Accrued employer contributions receivable                         690,570     1,947,343
Accrued employee contributions receivable                         757,754       573,337
Other assets                                                       65,848        14,475


       Total assets                                       $   656,838,519   586,105,499


       Liabilities and net assets

Liabilities:
Vouchers payable                                          $       176,015         1,555
Accrued liabilities                                             1,714,751     3,063,427
Amount due to brokers                                           2,302,559       931,242
Other liabilities                                                   2,692         9,952

       Total liabilities                                        4,196,017     4,006,176


Net assets:
  Held in trust for pension benefits                          652,642,502   582,099,323


       Total liabilities and net assets                   $   656,838,519   586,105,499




                                               271
Exhibit F-2

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                               Statement of Changes in Plan Net Assets
                                         Pension Trust Fund
                                   Year Ended December 31, 2009
                     With Comparative Totals for the Year Ended December 31, 2008



                                                                              2009           2008
  Additions:
    Contributions:
        Employee                                                       $    19,501,312    18,671,324
        Employer                                                            19,256,793    18,577,232

              Total contributions                                           38,758,105    37,248,556


     Investment income:
        Net appreciation (depreciation) in fair value of investments        88,916,514   (198,507,150)
        Interest                                                             6,471,510      8,050,124
        Dividends                                                            4,949,273      7,361,868
        Stock loan income                                                       92,879        214,757
        Recaptured broker commissions                                            -             57,700
                                                                           100,430,176   (182,822,701)
        Less: Investment management fees                                     1,471,314      1,627,280

              Total investment gain (loss) - net                            98,958,862   (184,449,981)

     Miscellaneous income                                                     126,669           1,925

              Total additions - net                                        137,843,636   (147,199,500)

  Deductions:
    Benefit payments                                                        64,343,528    62,373,702
    Refunds of employee contributions                                        1,794,040     5,670,165
    Salaries, wages and related expenses                                       272,625       260,960
    Administrative and miscellaneous expenses                                  890,264       599,034

              Total deductions                                              67,300,457    68,903,861

  Net increase (decrease) in net assets                                     70,543,179   (216,103,361)

  Net assets at beginning of year                                          582,099,323   798,202,684

  Net assets at end of the year                                        $   652,642,502   582,099,323




                                                        272
                                                                             Exhibit F-3

                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                                   Statement of Assets and Liabilities
                                        Combined Agency Funds
                                          December 31, 2009
                             With Comparative Totals for December 31, 2008




                                                             2009            2008

      Assets
      _____

Cash and short-term investments                        $     48,213,084      51,820,487
Accrued interest and dividends receivable                        21,626          22,149
Other assets                                                  5,140,130       5,170,089

      Total assets                                     $     53,374,840      57,012,725


      Liabilities
      ________

Vouchers payable                                       $        542,407         528,952
Due to other governments                                      6,426,496       4,074,664
Due to litigants                                             14,989,874      18,427,122
Collections held in trust                                    22,203,446      21,655,708
Other liabilities                                             9,212,617      12,326,279

      Total liabilities                                $     53,374,840      57,012,725




                                                 273
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, 2009




                                                    Balance                                      Balance
                                                January 1, 2009   Additions    Deductions   December 31, 2009


  SHERIFF'S OFFICE
    ASSETS
  Cash                                      $        7,246,277     4,701,411    4,909,899        7,037,789
                                                     7,246,277     4,701,411    4,909,899        7,037,789


    LIABILITIES
  Due to litigants                                   7,246,277     4,701,411    4,909,899        7,037,789
                                            $        7,246,277     4,701,411    4,909,899        7,037,789


  COURT RECORDS-CRIMINAL DIVISION
    ASSETS
  Cash                                      $        6,017,107
                                                      ,   ,       16,690,465   19,579,681        3,127,891


    LIABILITIES
  Due to other governments                             468,035     6,377,067    6,399,710          445,392
  Due to other funds                                               3,697,185    3,697,185            -
  Due to litigants                                   5,534,235     6,841,408    9,707,981        2,667,662
  Other liabilities                                     14,837         -            -               14,837
                                            $        6,017,107    16,915,660   19,804,876        3,127,891


  COURT RECORDS-WILLS/ORPHANS DIVISION
    ASSETS
  Cash                                      $           71,303     4,551,075    4,120,410         501,968
  Other assets                                           8,146         1,110        8,146           1,110
                                                        79,449     4,552,185    4,128,556         503,078


    LIABILITIES
  Due to other governments                              10,186       183,423      181,020          12,589
  Other liabilities                                     69,263     4,368,762    3,947,536         490,489
                                            $           79,449     4,552,185    4,128,556         503,078


  COURT RECORDS-CIVIL DIVISION
    ASSETS
  Cash                                      $        5,617,312    16,434,713   16,768,761        5,283,264
  Other assets                                         174,903       162,624      193,096          144,431
                                                     5,792,215    16,597,337   16,961,857        5,427,695


    LIABILITIES
  Due to other governments                             145,605       143,272      145,605          143,272
  Due to litigants                                   5,646,610    16,454,064   16,816,251        5,284,423
                                            $        5,792,215    16,597,336   16,961,856        5,427,695




                                                        274
                                                                             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, 2009




                                              Balance                                      Balance
                                          January 1, 2009   Additions    Deductions   December 31, 2009


REAL ESTATE DEPARTMENT
  ASSETS
Cash                                  $        3,591,450    85,961,077   83,944,472        5,608,055
Other assets                                      11,993        21,674       11,993           21,674
                                               3,603,443    85,982,751   83,956,465        5,629,729


  LIABILITIES
Due to other governments                       3,421,582    75,346,747   73,234,316        5,534,013
Due to other funds                                96,771    10,440,596   10,537,367            -
Other liabilities                                 85,090       767,437      756,811           95,716
                                      $        3,603,443    86,554,780   84,528,494        5,629,729


MISCELLANEOUS AGENCIES
  ASSETS
Cash                                  $          992,118     8,064,984    8,088,593         968,509


  LIABILITIES
Other liabilities                     $          992,118     8,064,984    8,088,593         968,509


CYF CLIENT INCOME
  ASSETS
Cash                                  $          431,712     2,176,714    2,290,087         318,339


  LIABILITIES
Vouchers payable                                   -         1,834,760    1,832,658           2,102
Other liabilities                                431,712     1,825,831    1,941,306         316,237
                                      $          431,712     3,660,591    3,773,964         318,339
TAX REFUNDS
  ASSETS
Cash                                  $             -        4,503,110    4,503,110            -
Due from other funds                                -        4,707,463    4,707,463            -
                                                    -        9,210,573    9,210,573            -


  LIABILITIES
Vouchers payable                                 108,460     4,359,874    4,468,334            -
Other liabilities                               (108,460)    4,331,063    4,222,603            -
                                      $             -        8,690,937    8,690,937            -




                                                  275
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, 2009




                                                 Balance                                      Balance
                                             January 1, 2009   Additions   Deductions    December 31, 2009


  GUARDIAN ACCOUNT
    ASSETS
  Cash                                   $          199,820      385,615       406,150         179,285

    LIABILITIES
  Vouchers payable                                   50,290      417,050       405,913          61,427
  Other liabilities                                 149,530      283,661       315,333         117,858
                                         $          199,820      700,711       721,246         179,285


  SOLICITOR'S PROPERTY FUND
    ASSETS
  Cash                                   $          188,216       95,174       116,945         166,445
  Due from other funds                                -          115,675       115,675           -
                                                    188,216      210,849       232,620         166,445


    LIABILITIES
  Other liabilities                      $          188,216          755        22,526         166,445


  RENTAL LEASE MAINTENANCE
    ASSETS
  Cash                                   $          176,326       85,899        51,481         210,744

    LIABILITIES
  Other liabilities                      $          176,326       85,899        51,481         210,744


  ESCROW TAXES UNDER $1
    ASSETS
  Cash                                   $           26,693       33,685         -              60,378


    LIABILITIES
  Other liabilities                      $           26,693       33,685         -              60,378


  UNCLAIMED CORONER FUNDS
    ASSETS
  Cash                                   $             -           4,429         -                4,429


    LIABILITIES
  Other liabilities                      $             -           4,429         -                4,429




                                                     276
                                                                              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, 2009



                                               Balance                                      Balance
                                           January 1, 2009   Additions    Deductions   December 31, 2009

AIR POLLUTION - CLEAN AIR
  ASSETS
Cash                                   $        8,919,220      669,251       615,172        8,973,299
Accrued interest                                   18,894       22,263        22,436           18,721
Other assets                                    1,057,573        -             -            1,057,573
                                                9,995,687      691,514       637,608       10,049,593


  LIABILITIES
Vouchers Payable                                    1,655      611,067       608,472            4,250
Collections held in trust                       9,994,032      690,988       639,677       10,045,343
                                       $        9,995,687     1,302,055    1,248,149       10,049,593



HOTEL TAX, CONVENTION
  CENTER PROJECT
  ASSETS
Cash                                   $        1,065,614       962,500      933,750        1,094,364
Due from other funds                                -        14,418,816   14,418,816            -
                                                1,065,614    15,381,316   15,352,566        1,094,364


  LIABILITIES
Collections held in trust              $        1,065,614    11,550,000   11,521,250        1,094,364


HOTEL ROOM RENTAL TAX
  ASSETS
Cash                                   $           38,487    24,101,188   24,094,475          45,200


  LIABILITIES
Due to other funds                                  -         5,884,592    5,884,592           -
Other liabilities                                  38,487         6,713        -              45,200
                                       $           38,487     5,891,305    5,884,592          45,200




                                                   277
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, 2009



                                                   Balance                                        Balance
                                               January 1, 2009   Additions      Deductions   December 31, 2009



  PGH CONVENTION AND VISITORS
     BUREAU ROOM TAX
    ASSETS
  Cash                                     $          512,877     7,300,844      7,344,137         469,584
  Due from other funds                                  -         8,512,456      8,512,456           -
                                                      512,877    15,813,300     15,856,593         469,584

    LIABILITIES
  Other liabilities                        $          512,877     6,234,506      6,277,799         469,584


  EMPLOYEE ACTIVITIES
    ASSETS
  Cash                                     $             5,401        -              -                5,401


    LIABILITIES
  Other liabilities                        $             5,401        -              -                5,401



  KANE - PATIENTS' MONEY
    ASSETS
  Cash                                     $        2,061,313    10,227,788     10,545,189        1,743,912
  Accrued interest                                      3,255         7,160          7,510            2,905
                                                    2,064,568    10,234,948     10,552,699        1,746,817

    LIABILITIES
  Vouchers payable                                     15,454     8,428,212      8,410,538           33,128
  Due to other funds                                    -        21,023,679     21,023,679            -
  Other liabilities                                 2,049,114     9,016,634      9,352,059        1,713,689
                                           $        2,064,568    38,468,525     38,786,276        1,746,817



  MCKEESPORT CRAWFORD
    ESTATE GIFT KANE FUND
    ASSETS
  Cash                                     $           14,302         -              1,375          12,927
  Other assets                                         21,437         -              -              21,437
                                                       35,739         -              1,375          34,364

    LIABILITIES
  Vouchers Payable                                      -                 125        -                 125
  Other liabilities                                    35,739         -              1,500          34,239
                                           $           35,739             125        1,500          34,364




                                                       278
                                                                                  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, 2009



                                                Balance                                        Balance
                                            January 1, 2009   Additions   Deductions      December 31, 2009



BOROUGH OF MONROEVILLE
  HOTEL TAX
  ASSETS
Cash                                    $          241,309    1,076,188    1,008,116            309,381
Due from other funds                                 -        1,641,240    1,641,240              -
                                                   241,309    2,717,428    2,649,356            309,381

  LIABILITIES
Vouchers Payable                        $            -        1,197,188         969,632         227,556
Other liabilities                                  241,309      486,404         645,888          81,825
                                                   241,309    1,683,592    1,615,520            309,381



DAVID L. LAWRENCE CONVENTION
  CENTER - HOTEL ROOM TAX
  ASSETS
Cash                                    $        3,435,537    3,478,331    3,042,100           3,871,768
Due from other funds                                 -        3,420,381    3,420,381               -
Other assets                                     3,540,000        -            -               3,540,000
                                                 6,975,537    6,898,712    6,462,481           7,411,768


  LIABILITIES
Collections held in trust               $        6,975,537    3,233,417    2,797,186           7,411,768


MEMORIAL HALL
  LIBRARY AND MUSEUM
  ASSETS
Other assets                            $           29,281        -               -              29,281


  LIABILITIES
Other liabilities                       $           29,281        -               -              29,281




                                                      279
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, 2009



                                                             Balance                                               Balance
                                                         January 1, 2009         Additions       Deductions   December 31, 2009



  DA - FORFEITURE ACCOUNT
    ASSETS
  Cash                                               $           821,444         2,694,229        2,693,227         822,446 (1)
  Due from other funds                                             -             1,259,024        1,259,024           -
                                                                 821,444         3,953,253        3,952,251         822,446


    LIABILITIES
  Vouchers payable                                                   280         1,043,517        1,043,797           -
  Other liabilities                                              821,164         2,684,559        2,683,277         822,446
                                                     $           821,444         3,728,076        3,727,074         822,446


  DA - DANET GRANT
    ASSETS
  Cash                                               $            60,069           677,246          677,299          60,016 (2)


    LIABILITIES
  Other liabilities                                  $            60,069           677,246          677,299          60,016




  KEEP "THE COMMANDMENTS"
    ASSETS
  Cash                                               $             1,684                     7            3            1,688
                                                                   1,684                     7            3            1,688


    LIABILITIES
  Other liabilities                                  $             1,684                     4        -                1,688




  (1) Of this balance, $432,714.34 is maintained separately by the District Attorney.
  (2) Cash from the DANET Grant is maintained separately by the District Attorney.




                                                                  280
                                                                                  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, 2009



                                                   Balance                                        Balance
                                               January 1, 2009    Additions   Deductions     December 31, 2009



PARKS - FACILITY CHANGE FUNDS
  ASSETS
Cash                                       $            (2,230)       2,330            100            -


  LIABILITIES
Other liabilities                                       (2,230)       2,230        -                  -
                                           $            (2,230)       2,230        -                  -

ENVIRONMENTAL HEALTH
  ASSETS
Cash                                       $          348,707       428,249       57,776           719,180
Due from other funds                                    -            62,533       62,533             -
Other assets                                          183,398         -            -               183,398
                                                      532,105       490,782      120,309           902,578

  LIABILITIES
Other liabilities                                     532,105       425,543       55,070           902,578
                                           $          532,105       425,543       55,070           902,578


PA LICENSES HUNTING/
  FISHING/DOGS/BOATS
  ASSETS
Cash                                       $          132,973     1,180,728    1,022,398           291,303

  LIABILITIES
Voucher payable                                       103,717       915,314    1,018,958                73
Due to other governments                               29,256     1,176,889      914,915           291,230
                                           $          132,973     2,092,203    1,933,873           291,303




                                                       281
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, 2009



                                              Balance                                        Balance
                                          January 1, 2009   Additions    Deductions     December 31, 2009


PRISONER WELFARE FUND
  ASSETS
Cash                                  $        1,265,778    1,068,052     1,036,762          1,297,068
Other assets                                     143,358        -             2,132            141,226
                                               1,409,136    1,068,052     1,038,894          1,438,294

  LIABILITIES
Vouchers payable                                  52,643      955,606       972,860             35,389
Due to other funds                                 -        1,024,703     1,024,703              -
Other liabilities                              1,356,493    1,286,014     1,239,602          1,402,905
                                      $        1,409,136    3,266,323     3,237,165          1,438,294


PROPERTY ASSESSMENT -
  CHANGE FUND
  ASSETS
Cash                                  $             -               20            20             -

  LIABILITIES
Due to other funds                    $             -               20            20             -


CHILDREN, YOUTH &
  FAMILY - DONATIONS
  ASSETS
Cash                                  $           39,722       24,454          21,065          43,111


  LIABILITIES
Vouchers payable                                     225           96             321           -
Other liabilities                     $           39,497       13,737          10,123          43,111
                                                  39,722       13,833          10,444          43,111


CUSTODY PSYCHOLOGICAL
  EVALUATIONS
  ASSETS
Cash                                  $          248,567      468,434         482,305         234,696

  LIABILITIES
Vouchers payable                                   1,012      453,156         453,056           1,112
Other liabilities                                247,555      406,399         420,370         233,584
                                      $          248,567      859,555         873,426         234,696




                                                    282
                                                                               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, 2009



                                                 Balance                                      Balance
                                             January 1, 2009   Additions   Deductions    December 31, 2009


ESCROW FOR TAXPAYER REFUNDS
  ASSETS
Cash                                     $          115,652    1,708,491    1,743,429           80,714
Due from other funds                                  -        1,797,658    1,797,658            -
                                                    115,652    3,506,149    3,541,087           80,714

  LIABILITIES
Vouchers payable                                     84,912    1,697,995    1,716,079           66,828
Other liabilities                                    30,740    1,536,134    1,552,988           13,886
                                         $          115,652    3,234,129    3,269,067           80,714



CUSTODY MEDIATION PROGRAM
  ASSETS
Cash                                     $          285,457      178,382       157,840         305,999

  LIABILITIES
Vouchers payable                                      3,240      155,800       157,840           1,200
Other liabilities                                   282,217      169,542       146,960         304,799
                                         $          285,457      325,342       304,800         305,999


LANDFILL TRUST
  ASSETS
Cash                                     $        3,620,525       38,902         7,456        3,651,971
Due from other funds                                  -           21,417        21,417            -
                                                  3,620,525       60,319        28,873        3,651,971

  LIABILITIES
Collections held in trust                $        3,620,525       31,446         -            3,651,971


RENT WITHHOLDING
  ASSETS
Cash                                     $           13,398        8,773        12,232            9,939


  LIABILITIES
Other Liabilities                                    13,398        8,273        11,732            9,939
                                         $           13,398        8,273        11,732            9,939




                                                     283
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, 2009



                                                  Balance                                      Balance
                                              January 1, 2009   Additions    Deductions   December 31, 2009



  SHERIFF SALE ESCROW
    ASSETS
  Cash                                    $        1,507,863    12,517,952   13,711,690         314,125
  Due from other funds                                 -        14,222,201   14,222,201           -
                                                   1,507,863    26,740,153   27,933,891         314,125


    LIABILITIES
  Vouchers Payable                                   107,064    13,886,009   13,883,856         109,217
  Other Liabilities                                1,400,799    11,972,961   13,168,852         204,908
                                          $        1,507,863    25,858,970   27,052,708         314,125


  XPAND TAX SALE COLLECTIONS
    ASSETS
  Cash                                    $           93,484     2,992,521    3,018,109          67,896


    LIABILITIES
  Other Liabilities                                   93,484     2,992,521    3,018,109          67,896
                                          $           93,484     2,992,521    3,018,109          67,896


  NORTH PARK LAKE ESCROW
    ASSETS
  Cash                                    $        2,415,000         -        2,095,000         320,000


    LIABILITIES
  Other Liabilities                                2,415,000         -        2,095,000         320,000
                                          $        2,415,000         -        2,095,000         320,000




                                                      284
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, 2009




                                                                                                                                      Furniture,
                                                                                                                                       Fixtures
                                                                                      Land                                               and
              Function and Activity
             __________________                       Total           Land        Improvements        Buildings      Infrastructure   Equipment


      General government:
       Controller                              $        543,196          -                -                  -               -            543,196
       Medical Examiner                               4,124,281          -                -                  -               -          4,124,281
       District Attorney                                641,446          -                -                  -               -            641,446
       Sheriff                                          648,185          -                -                  -               -            648,185
       Treasurer                                        436,546          -                -                  -               -            436,546
       Chief Executive/County Manager                   298,591          -                -                  -               -            298,591
       County Council                                   194,644          -                -                  -               -            194,644
       Court of Common Pleas                          3,515,170          -                -                  -               -          3,515,170
287




       Property Assessment                              903,876          -                -                  -               -            903,876
       Elections                                        105,620          -                -                  -               -            105,620
       Human Resources                                    3,298          -                -                  -               -              3,298
       Law                                              112,147          -                -                  -               -            112,147
       Property and Supplies                          9,366,393          -                -                  -               -          9,366,393
       Public Defender                                  196,039          -                -                  -               -            196,039
       Court Records                                  1,082,884          -                -                  -               -          1,082,884
       Real Estate                                      298,095          -                -                  -               -            298,095
       General government land and buildings         51,838,743      1,639,586            -             50,199,157           -              -

          Total general government                   74,309,154      1,639,586            -             50,199,157           -        22,470,411




                                                                                                                                                    Exhibit G-1 (Page 1 of 2)
                                                                                                                                                             Exhibit G-1 (Page 2 of 2)
                                                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                                        Capital Assets Used in the Operation of Governmental Activity
                                                                 Schedule of Assets By Function and Activity
                                                                             December 31, 2009




                                                                                                                                              Furniture,
                                                                                                                                               Fixtures
                                                                                             Land                                                and
                  Function and Activity
                 __________________                        Total            Land         Improvements        Buildings       Infrastructure   Equipment


       Culture and recreation                              67,002,493      6,397,824         3,944,622         45,629,519       6,690,110      4,340,418
       Economic development                                   195,085          -                 -                  -               -            195,085
       Health and welfare                                 113,207,535      3,679,837             -             92,922,951           -         16,604,747
       Public safety                                      192,183,160      4,077,783           351,399        166,960,988           -         20,792,990
       Public works                                       448,187,059      8,578,123         3,896,880         35,287,660     384,135,085     16,289,311

              Total governmental funds capital assets     895,084,486     24,373,153         8,192,901        391,000,275     390,825,195     80,692,962

      Less: Accumulated depreciation                     (326,693,789)         -            (5,609,513)      (154,192,355)   (132,502,120)    (34,389,801)
288




      Total                                               568,390,697     24,373,153         2,583,388        236,807,920     258,323,075     46,303,161


      Construction in progress                             48,735,755

      Net governmental funds capital assets         $     617,126,452
                                                                                                         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, 2009




                                                 Govermental                                          Govermental
                                                 Funds Capital                                        Funds Capital
                                                    Assets                                               Assets
            Function and Activity                  01/01/09            Additions      Deductions        12/31/09

 General government:
  Controller                            $              692,686             85,491          234,981          543,196
  Medical Examiner                                   4,304,467          1,042,786        1,222,972        4,124,281
  District Attorney                                    737,566            216,566          312,686          641,446
  Sheriff                                              919,646             47,658          319,119          648,185
  Treasurer                                            456,902             27,381           47,737          436,546
  Chief Executive/County Manager                       302,534               5,569            9,512         298,591
  County Council                                       213,573               2,541          21,470          194,644
  Court of Common Pleas                              5,503,921            511,697        2,500,448        3,515,170
  Property Assessment                                1,224,614             -               320,738          903,876
  Elections                                             99,456             10,298             4,134         105,620
  Human Resources                                       11,072               1,014            8,788           3,298
  Law                                                  125,909               1,104          14,866          112,147
  Property and Supplies                             13,244,223            518,407        4,396,237        9,366,393
  Public Defender                                      210,181             -                14,142          196,039
  Court Records                                        453,641            629,243           -             1,082,884
  Real Estate                                          318,498             -                20,403          298,095
  General government land and buildings             20,924,890         30,913,853           -            51,838,743

        Total general government                    49,743,779         34,013,608        9,448,233       74,309,154

 Culture and recreation                             67,975,137           1,703,351       2,675,995       67,002,493
 Economic development                                8,459,842              39,871       8,304,628          195,085
 Health and welfare                                111,683,702           7,115,127       5,591,294      113,207,535
 Public safety                                     191,447,560           3,884,140       3,148,540      192,183,160
 Public works                                      457,007,174           2,154,224      10,974,339      448,187,059

        Total governmental fund capital assets     886,317,194         48,910,321       40,143,029      895,084,486

Construction in progress                            47,319,696         28,296,040       26,879,981       48,735,755
Total                                              933,636,890         77,206,361       67,023,010      943,820,241


Less: Accumulated depreciation                    (339,100,654)        (20,328,557)    (32,735,422)    (326,693,789)


Net govermental funds capital assets        $      594,536,236         56,877,804       34,287,588      617,126,452




                                                                 289
Exhibit G-3

                                COUNTY OF ALLEGHENY, PENNSYLVANIA
                      Capital Assets Used in the Operation of Governmental Funds
                                  Schedule of Capital Assets by Source
                                          December 31, 2009




              Governmental funds capital assets:
                Land                                                       $    24,373,153
                Land Improvements                                                8,192,901
                Buildings                                                      362,736,676
                Buildings - Capital Lease                                        7,678,839
                Buildings - Leasehold Improvements                              20,584,760
                Infrastructure                                                 390,825,195
                Construction in progress                                        48,735,755
                Furniture, fixtures and equipment                               80,692,962

                    Total governmental funds capital assets                    943,820,241

              Less: Accumulated depreciation                                   (326,693,789)

                    Net governmental funds capital assets                  $   617,126,452



              Investment in governmental funds capital assets by source:
                 Capital Projects Fund                                     $   877,088,449
                 General Fund                                                   52,415,193
                 Special Revenue Fund                                           11,200,283
                 Human Service Grants Fund                                       2,400,293
                 Agency Funds                                                      693,689
                 Contributions                                                      22,334

                    Total governmental funds capital assets                    943,820,241

              Less: Accumulated depreciation                                   (326,693,789)

                    Net governmental funds capital assets                  $   617,126,452




                                                     290
           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, 2009




                                                                 Budget                    _____________


                                                     Original               Final         General
                                                     Budget                Budget          Fund

Revenues:
 Property taxes (note 4)                       $   264,199,000            264,199,000    226,749,293
 Sales and use tax                                  41,150,000             41,150,000     39,172,875
 Alcoholic beverage and rental vehicle taxes        32,300,000             32,300,000          -
 Licenses and permits                                1,896,044              1,896,044      1,904,569
 Federal revenues                                   99,116,623             99,116,623     94,293,589
 State revenues                                    209,951,769            209,951,769    174,542,962
 Local government units revenues                    17,519,000             17,519,000     17,215,187
 Charges for services and facilities                63,189,565             63,189,565     68,384,127
 Fines and forfeitures                               4,803,000              4,803,000      4,976,114
 Interest earnings                                   3,977,100              3,977,100        645,538
 Miscellaneous                                       6,676,594              6,676,594      6,754,783

      Total revenues                               744,778,695            744,778,695    634,639,037

Expenditures:
 Current:
   General government                              163,079,585            161,597,021    166,708,068
   Public safety                                    82,254,781             82,502,906     78,837,379
   Public works                                     29,048,565             29,262,905     25,038,327
   Transportation                                   27,668,700             27,668,700          -
   Health and welfare                              357,298,448            357,868,283    337,536,389
   Culture and recreation                            9,335,056              9,599,959      9,498,465
   Education                                        22,010,000             22,010,000     22,010,000
   Economic development                              2,463,797              6,963,797      6,494,647
 Debt service:
   Principal retirement                             38,922,500             38,922,500          -
   Interest charges                                 30,628,568             27,299,903          -
   Cost of issuance                                      -                      -              -

      Total expenditures                           762,710,000            763,695,974    646,123,275

      Excess (deficiency) of
        revenues over expenditures                  (17,931,305)          (18,917,279)   (11,484,238)

Other financing sources (uses):
  Issuance of general obligation
     refunding bonds                                      -                     -              -
  Premium on refunded bonds                               -                     -              -
  Payment to refund bond escrow agent                     -                     -              -
  Proceeds from sale of building                          -                     -          3,170,000
  Capital lease                                           -                     -          7,678,839
  Transfers in                                       20,325,467            20,325,467     12,120,704
  Transfers out                                     (16,631,300)          (16,631,300)   (10,825,561)

      Total other financing sources (uses)           3,694,167              3,694,167     12,143,982




                                                   292
                                                                                      Exhibit H (Page 1 of 2)




_________________________________ Actual ______________________________________

                                                     Interfund                            Variance to
         Debt        Transportation    Liquid         Transfer                               Final
        Service          Fund           Fuel        Eliminations         Total              Budget


      34,381,972            -             -               -            261,131,265         (3,067,735)
           -                -             -               -             39,172,875         (1,977,125)
           -           32,714,434         -               -             32,714,434            414,434
           -                -             -               -              1,904,569              8,525
           -                -             -               -             94,293,589         (4,823,034)
      10,261,139            -         4,089,411           -            188,893,512        (21,058,256)
          53,393            -             -               -             17,268,580           (250,420)
           -                -             -               -             68,384,127          5,194,562
           -                -             -               -              4,976,114            173,114
         122,192            -            21,844           -                789,574         (3,187,526)
       1,549,004            -             -               -              8,303,787          1,627,193

      46,367,700       32,714,434     4,111,255           -            717,832,426        (26,946,268)



            -               -             -               -            166,708,068        (5,111,047)
            -               -             -               -             78,837,379         3,665,527
            -               -         4,025,000           -             29,063,327           199,578
            -          27,668,699         -               -             27,668,699                 1
            -               -             -               -            337,536,389        20,331,894
            -               -             -               -              9,498,465           101,494
            -               -             -               -             22,010,000             -
            -               -             -               -              6,494,647           469,150

      38,232,500            -             -               -             38,232,500            690,000
      24,612,032            -             -               -             24,612,032          2,687,871
         155,834            -             -               -                155,834           (155,834)

      63,000,366       27,668,699     4,025,000           -            740,817,340        22,878,634


      (16,632,666)      5,045,735        86,255           -            (22,984,914)        (4,067,635)



       27,500,000           -             -               -             27,500,000         27,500,000
        1,766,257           -             -               -              1,766,257          1,766,257
      (29,110,423)          -             -               -            (29,110,423)       (29,110,423)
            -               -             -               -              3,170,000          3,170,000
            -               -             -               -              7,678,839          7,678,839
       18,019,791           -             -         (14,628,738)        15,511,757         (4,813,710)
      (11,127,646)    (13,411,871)        -          14,628,738        (20,736,340)        (4,105,040)

       7,047,979      (13,411,871)        -               -              5,780,090          2,085,923




                                                    293
                            COUNTY OF ALLEGHENY, PENNSYLVANIA
                       Budgetary Comparison Schedule For Operating Budget
                                 Year Ended December 31, 2009




                                                             Budget                           ________


                                                 Original               Final        General
                                                 Budget                Budget         Fund
Special item:
  Proceeds from sale of building                      -                    -              -

      Net change in fund balances               (14,237,138)          (15,223,112)     659,744

Fund balances at beginning of year              35,327,105            35,327,105     19,491,364



Fund balances at end of year               $    21,089,967            20,103,993     20,151,108




                                               294
                                                                                      Exhibit H (Page 2 of 2)




______________________________ Actual ___________________________________

                                                     Interfund                            Variance to
        Debt        Transportation     Liquid         Transfer                               Final
       Service          Fund            Fuel        Eliminations            Total           Budget


       8,250,000           -              -               -             8,250,000           8,250,000

      (1,334,687)     (8,366,136)       86,255            -             (8,954,824)         6,268,288

       3,258,346      12,430,496       146,899            -            35,327,105               -



       1,923,659       4,064,360       233,154            -            26,372,281           6,268,288




                                                   295
              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, 2009




                                                                     Nonmajor Component Units

                                                                          Allegheny County        Soldiers' and
                                                        Allegheny            Conservation       Sailors' Memorial
                                                    HealthChoices, Inc.         District                Hall           Total

       Assets


Cash and short-term investments                $           5,259,230              569,320               295,763       6,124,313
Restricted cash and short-term investments                17,054,125                -                     -          17,054,125
Due from primary government                                   61,406                -                     -              61,406
Accounts Receivable                                          103,295                -                    47,667         150,962
Inventory                                                      -                    -                     6,990           6,990
Other assets                                                  60,924                -                    79,656         140,580
Buildings and equipment, net of
  accumulated depreciation                                   200,368               25,057             4,163,931       4,389,356
        Total assets                           $          22,739,348              594,377             4,594,007      27,927,732

        Liabilities and Net Assets


Liabilities:
   Vouchers payable                            $             171,610                4,216                 82,398        258,224
   Due to primary government                               3,105,551                -                      -          3,105,551
   Accrued liabilities                                       261,466                -                      -            261,466
   Other liabilities                                          27,476                -                     87,796        115,272
   Deferred revenue                                        1,044,063                -                        400      1,044,463
   Reserve for claims                                     17,026,649                -                      -         17,026,649
   Current compensated absences                                -                    -                      9,904          9,904
   Current general obligation/revenue bonds/
     notes/leases                                              -                    -                    69,885          69,885
          Total liabilities                               21,636,815                4,216               250,383      21,891,414

Net assets:
Invested in capital assets, net of related debt                 -                   -                 4,163,931       4,163,931
Restricted for
  Capital projects                                             -                    -                    15,255          15,255
  Other projects                                               -                  196,538                32,965         229,503
Unrestricted net assets                                    1,102,533              393,623               131,473       1,627,629
        Total net assets                                   1,102,533              590,161             4,343,624       6,036,318
        Total liabilities and net assets        $         22,739,348              594,377             4,594,007      27,927,732




                                                                 299
                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                         Combining Statement of Activities
                                            Nonmajor Component Units
                                          Year Ended December 31, 2009




                                                                       ___________ Program Revenues____________

                                                                                                  Operating
                                                                            Charges for          Grants and
                                                   Expenses                  Services            Contributions




Allegheny HealthChoices                     $         5,979,620                   847,748            5,214,457


Allegheny County Conservation District                  552,667                   441,420              213,097


Soldiers' and Sailors' Memorial Hall                  1,574,937                   430,858              287,572


Total Nonmajor Component Units              $         8,107,224                 1,720,026            5,715,126


                                                General Revenues:
                                                 Payment from County
                                                 Interest and Investment Earnings
                                                  Net (loss) from the sale of collection items
                                                 Miscellaneous


                                                   Total General Revenues
                                                   Change in Net Assets
                                                Net Assets Beginning of Year
                                                Net Assets End of Year




                                                         300
                                                                                               Exhibit I-2




__________________               Net (Expense) Revenue and Changes in Net Assets


  Capital Grants &          Allegheny           Allegheny County      Soldiers' and Sailors'
   Contributions         HealthChoices, Inc   Conservation District       Memorial Hall        Totals




             -                      82,585                  -                        -              82,585


             -                       -                   101,850                     -            101,850


           33,143                    -                      -                    (823,364)       (823,364)


           33,143                   82,585               101,850                 (823,364)       (638,929)




                     $               -                      -                      540,876        540,876
                                     3,076                  2,142                    -                  5,218
                                     -                      -                      (30,126)        (30,126)
                                     -                    28,428                    56,696          85,124


                                     3,076                30,570                   567,446        601,092
                                    85,661               132,420                 (255,918)         (37,837)
                                1,016,872                457,741                4,599,542       6,074,155
                     $          1,102,533                590,161                4,343,624       6,036,318




                                                       301
SUPPORTING SCHEDULES
  FOR LONG-TERM DEBT
Schedule J-1 (Page 1 of 5)

                                    COUNTY OF ALLEGHENY, PENNSYLVANIA
                                        Schedule of Long-Term Debt
                                            December 31, 2009




                                        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         2,586,296
                                    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         2,669,252
                                   1.700 - 5.375       9-1-02         11-1-17        9,750,260         9,745,358
                                   1.250 - 5.000      8-15-03         10-1-16        9,788,315         3,142,178
                                   3.000 - 5.000      1-19-05         11-1-23        7,911,317         7,893,949
                                    Variable (3)      11-1-06         11-1-16       22,955,753        17,098,209
                                   3.750 - 5.000      3-14-07         11-1-16          404,930           363,838
                                      4.1355 (4)      3-14-07         11-1-26          619,376           556,522
                                   2.500 - 5.000      8-12-09         11-1-14        1,791,781         1,791,781
                                                                                    68,007,023        54,922,313



Roads                               Variable (1)       2-1-00          5-1-27        1,860,379         1,858,138
                                    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         1,917,734
                                   1.700 - 5.375       9-1-02         11-1-17       10,018,680        10,013,646
                                   1.250 - 5.000      8-15-03         10-1-16       21,459,365         6,888,736
                                   3.000 - 5.000      1-19-05         11-1-23       18,056,676        18,017,042
                                    Variable (3)      11-1-06         11-1-16        7,044,247         5,246,791
                                   3.750 - 5.000      3-14-07         11-1-16        1,919,044         1,724,301
                                      4.1355 (4)      3-14-07         11-1-26        2,935,343         2,637,467
                                   2.500 - 5.000      8-12-09         11-1-14        6,533,834         6,533,834
                                                                                    74,101,922        56,869,789



(1)   At December 31, 2009, the rate was 2.60%; the maximum for this issue is 10%.
(2)   At December 31, 2009, the rate was 2.60%; the maximum for this issue is 10%.
(3)   At December 31, 2009, the rate was 1.90%; 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.




                                                          304
                                                               Schedule J-1 (Page 2 of 5)

                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                      Schedule of Long-Term Debt
                          December 31, 2009




                     Rate
                      of                   Date of
                                     ___________________            Amount
                                                            __________________________
                   Interest         Issue      Maturity     Issued       Outstanding



Airport           Variable (1)     2-1-00      5-1-27       6,552,722      6,544,829
                 4.350 - 5.250    12-1-00     11-1-20       7,897,781      6,754,741
                 1.700 - 5.375     9-1-02     11-1-17      20,241,204     20,231,034
                 1.250 - 5.000    8-15-03     10-1-16       1,075,876        345,371
                 3.000 - 5.000    1-19-05     11-1-23       5,803,989      5,791,248
                 3.750 - 5.000    3-14-07     11-1-16          17,652         15,861
                    4.1355 (4)    3-14-07     11-1-26          26,999         24,259
                                                           41,616,223     39,707,343

Parks             Variable (1)     2-1-00      5-1-27         500,050        499,447
                 4.350 - 5.250    12-1-00     11-1-20         602,694        515,465
                 1.700 - 5.375     9-1-02     11-1-17       2,617,882      2,616,568
                 1.250 - 5.000    8-15-03     10-1-16       4,053,171      1,301,121
                 3.000 - 5.000    1-19-05     11-1-23       3,491,735      3,484,071
                 3.750 - 5.000    3-14-07     11-1-16         427,502        384,119
                    4.1355 (4)    3-14-07     11-1-26         653,902        587,545
                 2.500 - 5.000    8-12-09     11-1-14       1,158,092      1,158,092
                                                           13,505,028     10,546,428


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      1,297,947
                 1.250 - 5.000    8-15-03     10-1-16       4,727,771      1,517,676
                 3.000 - 5.000    1-19-05     11-1-23       5,690,460      5,677,967
                 3.750 - 5.000    3-14-07     11-1-16         616,019        553,506
                    4.1355 (4)    3-14-07     11-1-26         942,254        846,635
                 2.500 - 5.000    8-12-09     11-1-14       2,428,743      2,428,743
                                                           19,051,818     15,670,444




                                     305
Schedule J-1 (Page 3 of 5)

                              COUNTY OF ALLEGHENY, PENNSYLVANIA
                                  Schedule of Long-Term Debt
                                      December 31, 2009




                                 Rate
                                  of                  Date of
                                                ___________________            Amount
                                                                       __________________________
                               Interest        Issue      Maturity     Issued       Outstanding



Municipal Improvements        Variable (1)    2-1-00      5-1-27        151,118       150,938
                             4.350 - 5.250   12-1-00     11-1-20        182,139       155,780
                             1.700 - 5.375    9-1-02     11-1-17        657,587       657,257
                             1.250 - 5.000   8-15-03     10-1-16        939,090       301,460
                             3.000 - 5.000   1-19-05     11-1-23        422,993       422,066
                             3.750 - 5.000   3-14-07     11-1-16        121,056       108,771
                                4.1355 (4)   3-14-07     11-1-26        185,165       166,375
                             2.500 - 5.000   8-12-09     11-1-14        178,560       178,560
                                                                       2,837,708     2,141,207

Communications               1.700 - 5.375    9-1-02     11-1-17         447,743       447,515
                             3.000 - 5.000   1-19-05     11-1-23       7,716,022     7,699,084
                             2.500 - 5.000   8-12-09     11-1-14       3,164,755     3,164,755
                                                                      11,328,520    11,311,354

Public Buildings              Variable (1)    2-1-00      5-1-27       1,357,446     1,355,808
                             4.350 - 5.250   12-1-00     11-1-20       1,636,084     1,399,297
                             1.700 - 5.375    9-1-02     11-1-17       7,946,080     7,942,090
                             1.250 - 5.000   8-15-03     10-1-16      46,371,805    14,885,956
                             3.000 - 5.000   1-19-05     11-1-23      15,382,917    15,349,151
                             3.000 - 5.000   1-19-05     11-1-23       3,346,374     3,339,028
                             3.750 - 5.000   3-14-07     11-1-16       3,583,299     3,219,669
                             3.750 - 5.000   3-14-07     11-1-16       1,091,065       980,345
                                4.1355 (4)   3-14-07     11-1-26       5,480,963     4,924,759
                                4.1355 (4)   3-14-07     11-1-26       1,668,877     1,499,521
                             2.500 - 5.000   8-12-09     11-1-14       2,801,500     2,801,500
                             2.500 - 5.000   8-12-09     11-1-14       3,256,121     3,256,121
                                                                      93,922,531    60,953,245

Science Center               1.700 - 5.375    9-1-02     11-1-17         64,708        64,678
                             1.250 - 5.000   8-15-03     10-1-16        362,886       116,490
                             3.750 - 5.000   3-14-07     11-1-16         36,590        32,877
                                4.1355 (4)   3-14-07     11-1-26         55,967        50,287
                                                                        520,151       264,332

Flood Control                1.700 - 5.375    9-1-02     11-1-17         48,530        48,506
                             1.250 - 5.000   8-15-03     10-1-16        272,163        87,367
                             3.750 - 5.000   3-14-07     11-1-16         27,442        24,657
                                4.1355 (4)   3-14-07     11-1-26         41,976        37,716
                                                                        390,111       198,246



                                               306
                                                                            Schedule J-1 (Page 4 of 5)

                                 COUNTY OF ALLEGHENY, PENNSYLVANIA
                                     Schedule of Long-Term Debt
                                         December 31, 2009




                                    Rate
                                     of                  Date of
                                                   ___________________            Amount
                                                                          __________________________
                                  Interest        Issue      Maturity     Issued       Outstanding



Equipment                        Variable (1)    2-1-00      5-1-27         788,816       787,862
                                4.350 - 5.250   12-1-00     11-1-20         950,734       813,136
                                1.700 - 5.375    9-1-02     11-1-17       4,882,298     4,879,844
                                1.250 - 5.000   8-15-03     10-1-16      10,556,722     3,388,845
                                3.000 - 5.000   1-19-05     11-1-23      13,789,675    13,759,404
                                3.750 - 5.000   3-14-07     11-1-16       1,182,858     1,062,823
                                   4.1355 (4)   3-14-07     11-1-26       1,809,282     1,625,677
                                2.500 - 5.000   8-12-09     11-1-14       3,745,017     3,745,017
                                                                         37,705,402    30,062,608

Feasibility Studies              Variable (1)    2-1-00      5-1-27         130,570       130,417
                                4.350 - 5.250   12-1-00     11-1-20         157,373       134,595
                                1.700 - 5.375    9-1-02     11-1-17       1,013,965     1,013,455
                                1.250 - 5.000   8-15-03     10-1-16       4,216,019     1,353,397
                                3.000 - 5.000   1-19-05     11-1-23       1,389,539     1,386,487
                                3.750 - 5.000   3-14-07     11-1-16         384,152       345,629
                                   4.1355 (4)   3-14-07     11-1-26         587,594       528,669
                                2.500 - 5.000   8-12-09     11-1-14         601,505       601,505
                                                                          8,480,717     5,494,154



Geographic Information System   1.700 - 5.375    9-1-02     11-1-17        184,208        184,118
                                3.000 - 5.000   1-19-05     11-1-23        799,719        797,965
                                3.750 - 5.000   3-14-07     11-1-16         97,015         87,170
                                   4.1355 (4)   3-14-07     11-1-26        148,393        133,334
                                2.500 - 5.000   8-12-09     11-1-14        402,494        402,494
                                                                          1,631,829     1,605,081

Economic Development            1.700 - 5.375    9-1-02     11-1-17        322,131        321,969
                                3.000 - 5.000   1-19-05     11-1-23        754,132        752,477
                                3.750 - 5.000   3-14-07     11-1-16        182,910        164,348
                                   4.1355 (4)   3-14-07     11-1-26        279,776        251,385
                                2.500 - 5.000   8-12-09     11-1-14        573,917        573,917
                                                                          2,112,866     2,064,096




                                                  307
                                                                                     Schedule J-1 (Page 5 of 5)

                                  COUNTY OF ALLEGHENY, PENNSYLVANIA
                                      Schedule of Long-Term Debt
                                          December 31, 2009




                                     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      20,101,658   (5)
                                  Variable (1)      2-1-00          5-1-27      23,414,480      23,386,265
                                 1.700 - 5.375      9-1-02         11-1-17         211,123         211,015
                                 1.250 - 5.000     8-15-03         10-1-16         272,867          87,594
                                 3.000 - 5.000     1-19-05         11-1-23       4,404,861       4,395,192
                                 2.500 - 5.000     8-12-09         11-1-14         863,681         863,681
                                                                                34,144,050      49,045,405

Capital Projects                 3.000 - 5.000     1-19-05         11-1-23      81,874,591      81,694,870
                                 3.750 - 5.000     3-14-07         11-1-16      18,638,466      16,746,590
                                    4.1355 (4)     3-14-07         11-1-26      28,509,133      25,615,345
                                 3.750 - 5.000     3-14-07         11-1-32      56,625,000      56,615,000
                                 3.000 - 5.000     6-19-08         12-1-33      49,220,000      49,220,000
                                 2.500 - 5.000     8-12-09         11-1-29      80,000,000      80,000,000
                                                                               314,867,190     309,891,805


           Total Bonds                                                         724,223,089     650,747,850

Other Long-Term Debt:
___________________

Other Long-Term Obligations      1.950 - 5.000     12-1-02        11-1-29       19,870,000      11,605,000
                                 3.050 - 4.000     9-29-05       12-15-18        4,172,500       1,777,500

           Total Other Long-Term Debt                                           24,042,500      13,382,500

           Total Nonelectoral Long-Term Debt                                 $ 748,265,589     664,130,350


                                Premium and other adjustments                                   24,994,972
                                                                                             $ 689,125,322


(5) Includes $15,124,623 accretion on Deferred Interest and Capital Appreciation Bonds.




                                                       308
                                                                                                               Schedule J-2

                                       COUNTY OF ALLEGHENY, PENNSYLVANIA
                                             Debt Issued and Retired
                                          Year Ended December 31, 2009




Nonelectoral Debt:
_______________                         Balance                                                                    Balance
   General Obligation Bonds:
   _____________________           December 31, 2008       Issued       Transfers     Retired     Accretion   December 31, 2009


Bridges                            $    58,829,311        1,791,781       -           5,698,779       -           54,922,313
Roads                                   62,900,027        6,533,834       -          12,564,072       -           56,869,789
Airport                                 40,294,784            -           -             587,441       -           39,707,343
Parks                                   11,720,806        1,158,092       -           2,332,470       -           10,546,428
Transportation                          17,296,539        2,428,743       -           4,054,838       -           15,670,444
Municipal Improvements                   2,382,895          178,560       -             420,248       -            2,141,207
Communications                          12,201,843        3,164,755       -           4,055,244       -           11,311,354
Public Buildings                        70,719,468        6,057,621       -          15,823,844       -           60,953,245
Equipment                               33,329,927        3,745,017       -           7,012,336       -           30,062,608
Feasibility Studies                      6,404,821          601,505       -           1,512,172       -            5,494,154
Flood Control                              241,363            -           -              43,117       -              198,246
Science Center                             321,821            -           -              57,489       -              264,332
Geographic Information System            1,772,964          402,494       -             570,377       -            1,605,081
Economic Development                     2,373,030          573,917       -             882,851       -            2,064,096
Hospital Buildings and Equipment        50,856,867          863,681       -           4,084,003   1,408,860       49,045,405
Capital Projects                       234,852,606       80,000,000       -           4,960,801       -          309,891,805

    Total Bonds Outstanding            606,499,072      107,500,000       -          64,660,082   1,408,860      650,747,850

    Other Long-Term Debt:
    ____________________

Other Long-Term Obligations             15,305,000             -          -           1,922,500      -            13,382,500

    Total Other Long-Term Debt          15,305,000             -          -           1,922,500      -            13,382,500

    Total Nonelectoral Debt        $ 621,804,072        107,500,000       -          66,582,582   1,408,860      664,130,350


                                                       Premium, Discount and other adjustments                   24,994,972
                                                                                                              $ 689,125,322




                                                              309
Schedule J-3 (Page 1 of 2)

                             COUNTY OF ALLEGHENY, PENNSYLVANIA
                Statement of Indebtedness, Borrowing Power and Legal Debt Margin
                                 Year Ended December 31, 2009




                                         Computation of Legal Debt Limit


            * Gross Revenue - 2006                                    $ 1,068,466,897
            * Gross Revenue - 2007                                      1,104,544,524
            * Gross Revenue - 2008                                      1,098,630,836

                   Total                                              $ 3,271,642,257

                   Average                                            $ 1,090,547,419


            *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                             $ 3,271,642,257



            For Counties with Lease Rental Debt: 400% of average      $ 4,362,189,676
                                                                         ,   ,   ,




                                         Statement of Indebtedness

            Gross Debt:
                Bonds Issued and Outstanding:
                    Nonelectoral                                      $    650,747,850
                    Lease Rental                                            13,382,500

                           Total Nonelectoral and Lease Rental Debt   $    664,130,350




                                                      310
                                                                      Schedule J-3 (Page 2 of 2)

                 COUNTY OF ALLEGHENY, PENNSYLVANIA
    Statement of Indebtedness, Borrowing Power and Legal Debt Margin
                     Year Ended December 31, 2009




                           Legal Debt Margin



Legal Debt Limit                                         $ 3,271,642,257

       Less: Total Net Debt Applicable to Debt Limit          650,747,850

             Legal Debt Margin                           $ 2,620,894,407




       Legal Debt Margin Including Lease Rental Debt Less Self Liquidating Debt



Legal Debt Limit                                         $ 4,362,189,676

       Less: Total Net Debt Applicable to Debt Limit          664,130,350

             Legal Debt Margin                           $ 3,698,059,326




                                         311
                                 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                                                                314 - 325

   These comments and schedules contain information to help the reader assess the
   County's operating revenue and expenditures.


Financial Trends                                                                                327 - 334

   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                                                                                335 - 358

   These schedules contain information to help the reader assess the County's most
   significant local revenue source, the property tax.


Debt Capacity                                                                                   360 - 362
  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                                                            364 - 366

   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                                                                           367 - 370

   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                                                  371 - 372

   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                                                                       373 - 379

   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.




                                                   313
                    COUNTY OF ALLEGHENY, PENNSYLVANIA


                          REVENUE AND EXPENDITURE OVERVIEW


      This overview relates to the finances of the primary government (Allegheny County)
governmental funds.

REVENUES:

        Revenues for all general governmental functions, General, Debt Service and Liquid
Fuels Funds, totaled $773,459,279 in 2009, which represents an increase of 5.0% compared
to revenues for 2008. 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.

* Other Financing Sources - monies received from capital projects and grants. For
  presentation of these schedules, all operating intrafund activity has been eliminated.

* Special Item - proceeds from the sale of land and building.




                                              314
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

      Revenues for 2009 and 2008 which support general governmental functions, and the
changes between years, are shown in the following table:

                             CHANGES IN REVENUES BY FUNCTION
                                        2009              2008
              REVENUE SOURCES          ACTUAL           ACTUAL         VARIANCE       PERCENTAGE



         TAXES – PROPERTY          $   261,131,265    $ 254,991,590      6,139,675        2.4%

         TAXES – SALES AND USE          39,172,875       40,351,848     (1,178,973)       (2.9)

         DRINK/VEHICLE TAX              32,714,434       42,869,521    (10,155,087)      (23.7)

         LICENSES AND PERMITS            1,904,569        1,754,750        149,819        8.5

         FEDERAL REVENUES               94,293,589       92,999,998      1,293,591        1.4

         STATE REVENUES                188,893,512      193,157,416     (4,263,904)       (2.2)

         LOCAL UNITS REVENUES           17,268,580       17,476,488       (207,908)       (1.2)

         CHARGES FOR SERVICES           68,384,127       60,988,842      7,395,285       12.1

         FINES AND FORFEITURES           4,976,114        6,709,309     (1,733,195)      (25.8)

         INTEREST EARNINGS                789,574         3,847,683     (3,058,109)      (79.5)

         MISCELLANEOUS                   8,303,787        4,813,260      3,490,527       72.5

         TOTAL REVENUES                717,832,426      719,960,705     (2,128,279)      (0.5)

         OTHER FINANCING SOURCES        55,626,853       16,460,432     39,166,421      237.9

         SPECIAL ITEM                    8,250,000            -          8,250,000        -

                  TOTALS           $   781,709,279    $ 736,421,137   $ 45,288,142       6.1%



        When compared to the previous year, 2009 revenues and other financing sources
increased by $37.0 million, or 5.0%. Overall, revenues from real property taxes increased
$6.1 million or 2.4% in fiscal year 2009. The property tax increase resulted from the
following:
                      Current taxes increased                 $1.5 million
                      Delinquent taxes increased                4.0 million
                      Lien taxes increased                      0.3 million
                      Interest and penalty increased            0.7 million
                      In lieu of taxes decreased               (0.2) million
                      Refunds decreased                       (0.2) million
                               Net Change                   $ 6.1 million




                                                315
                    COUNTY OF ALLEGHENY, PENNSYLVANIA

       Current tax collections increased due to a higher certified assessed value. Since the
County maximized its delinquent and lien tax collections by selling their tax receivables for
$14.4 million in 2007; 2008’s non-current tax files have increased accordingly.

       Sales tax revenues decreased 2.9% or $1.2 million as the downswing in the economy
reduced spending.

       In 2008, the County enacted a 10% Alcoholic Beverage Tax and a $2 a day Rental
Vehicle Tax. The Alcoholic Beverage Tax was reduced to 7% for 2009 and collections were
$27.4 million or $9.6 million less than 2008.

         Many factors are responsible for the net increase in Federal revenues of $1.3 million.
Title IV-E Federal funding increased $1.6 million for Child Placement and Adoption Assistance
services, as efficiencies were realized and Stimulus Funds were added to the program. Fees
for maintaining Federal prisoners decreased $0.6 million, Kane’s skilled nursing care revenue
decreased $1.5 million because of fewer patient days, however Medicare revenue increased
$2.5 million. An air pollution grant ($0.7 million) was moved to a special revenue project in
2009.

       State revenues decreased $4.3 million in 2009 for the reasons detailed below.

        State revenues decreased $2.2 million due to the receipt of less gaming revenues
($12.4 million vs. $10.2 million) to complete the reimbursement of the County’s $42.5 million
public investment (G. O. Bonds) for the construction of the Airport.

         State Act 148 revenues for CYF decreased $1.0 million in 2009, offsetting the increase
in Title IV-E Federal funding, and Transition funds decreased $1.4 million. Kane’s skilled
nursing care revenue declined $1.2 million, offset by increased Medicare revenue of $0.7
million.

        State miscellaneous revenue increased $2.5 million as DHS received $5.6 million for a
Special Initiative grant. State revenues at Kane were $3.1 million less in 2009 because no
settlements occurred.

        State subsidies for the year decreased $1.2 million for Criminal Justice and $0.8 million
for the Crime Lab. Health Department Act 315 revenues increased $0.7 million, however State
revenues for Court Operations decreased $0.3 million.

       Charges for services increased $7.4 million, as $3 million in additional Real Estate fees
were collected because of rate increases. $1.6 million from Gaming Host fees, associated with
the opening of the Rivers Casino, were collected for the first time.




                                              316
                    COUNTY OF ALLEGHENY, PENNSYLVANIA


         Kane charges for services increased by $0.4 million for patients share, $1.4 million from
Commercial insurance (more use of HMO’s) and $0.8 million associated with improved MA
billing or private insurance.

       Real Estate Tax stamp commissions of 1% and 2% decreas