The forty leading taxpayers paid approximately 16% of the total taxes levied in 1975, and the top twenty taxpayers paid 13.7% of the 1975 tax levies. For many years coal mining was one of the principal industries of Allegheny County. In recent years this has dwindled somewhat but it is still quite extensive. Allegheny County, Pennsylvania In 1973, the State of Pennsylvania, Department of Commerce published an economic analysis of Allegheny County. Part of the report dealt with energy production and reserves. Quoting from the report: "Although iron ore is now obtained from sources outside the county (Allegheny) bituminous coal is still mined quite extensively. "Soft" coal production, about 4.3 million tons in 1973, employed an average of 1,510 persons daily ranking the county ninth in the state (Pennsylvania). About 85 percent was obtained from underground mines. Estimated recoverable reserves, in 1973, were listed as 1 billion tons." Source: Pennsylvania Department of Commerce. 1973 Pennsylvania Industrial Census Series. Release M 5 73. The US. Bureau of Mines has some of its largest coal research and mining research facilities located in Allegheny County, near Carnegie-Mellon University in Pittsburgh and at the U. S. Bureau of Mines, Bruceton, Pennsylvania. Extensive reasearch and development of gas and possibly oil from coal is conducted by the U. S. Bureau of Mines at Bruceton. Pennsylvania, and by Continental Oil Company and Consolidated Coal Company at the pilot plant in Library, Allegheny County, Pennsylvania. COUNTY PENSION PROGRAM Recently, a great deal of public attention has been directed toward an examination of various aspects of the public pension programs. The County pension program is governed by a Retirement Board, but all its authority is derived from state statutes. In 1973 the Retirement Act was amended by Act 19 to it rease the contributions by employees from 7% on the gross salary up to a maximum of $600, to 5% on the first $750. 7% % on salaries from $750 to $1,500 and 10% on excess of $1.500 to $2.000 per month. This increase resulted in an increase in the possible maximum contribution per member from $45 to a possible maximum of $143.75 per member. The law also requires the County to appropriate an amount sufficient to match the amount contributed by employees and to meet all administrative and legal obligations. The County retains the services of Babb, Inc. as financial manager. Its latest report to the County Retirement Board, as of July 1, 1974, stated: "We are pleased to report that: "1. Your current financing pattern will produce future income in excess of future disbursements and, hence, produce the necessary reserves for benefits provided under the existing plan. "2. Total contributions (related similarly to future pay levels) should be sufficient to amortize actuarial liabilities over the next 22 years. This is well within the limitations applicable to private employer plans under new legislation. "3. It is essential that the County at least continue to match the employee contribution." "The preceding material in this report has examined the history of the Retirement System and projected the future cash flow that will be generated if continued inflation triggers salary increases at a rate of 4% per annum. It was observed that fund expenditures will not exceed contributions plus investment income." CLOSING CERTIFICATES The County states that the description and statements herein, incuding financial statements, are true and correct in all material respects and that it will confirm to the underwriters, by certificates signed by its Director of the Bureau of Accounts and Statistics and County Commissioners and delivered at the closing, that such descriptions and statements in this Official Statement, on the date of this Official Statement and at the time of closing, were and are true and correct in all material respects and did not and do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. CERTAIN LEGAL MATTERS Certain legal matters incident to the issuance of the Bonds are subject to approval of Bond Counsel, Messrs. Baskin, Boreman. Wilner. Sachs, Gondelman & Craig, Pittsburgh, Pennsylvania. Copies of the approving legal opinion in the form attached as Appendix "A" will be available at the time of the delivery of the Bonds. The opinion of Bond Counsel is limited to the validity and legality of the Bonds and to present Federal and Pennsylvania and local income tax status of interest on the Bonds. SALE As directed on Page 1 of this proposal, bids will be received February 11, 1976, at Room 104, Courthouse, Pittsburgh, Pennsylvania, 15219, up to 10 A.M. and will be opened by County Commissioners in a public meeting immediately thereafter. Closing will take place in New York, New York, on March 31, 1976. Delivery of Bonds to successful bidder will be against payment in immediately available Federal funds in Pittsburgh, plus accrued interest from March 1, 1976. Form of proposal to be used is attached as Appendix "B". FINANCIAL STATEMENTS Financial data submitted herein for the years prior to 1975 were adopted from the certified annual reports of the County Controller filed with the Court of Common Pleas each year through 1974. Also included in this Official Statement and made a part hereof are the Financial Statements of the County as of December 31, 1975, certified by Nicholas Stabile, Director of the Bureau of Accounts and Statistics. The 1975 financial statements have not been certified by the County Controller because the County operates on a calendar year. The statements are believed to accurately reflect the 1975 financial condition. The County is operated on a cash basis, rather than accrual. MISCELLANEOUS So far as any statements made in this Official Statement involve matters of opinion or estimates, whether or not expressly stated, they are set forth as such and not as representations of fact, and no representation is made that any of the statements will be realized. Neither this Official Statement nor any statement which may have been made verbally or in writing is to be construed as a contract with the holders of the Bonds. This Official Statement has been duly executed and delivered by the County Controller of Allegheny County and the County Commissioners. At the closing, County will deliver a certificate that there is no litigation pending or threatened concerning the validity of these bonds. COUNTY OF ALLEGHENY JIM FLAHERTY, Chairman THOMAS J FOERSTER ROBERT N. PEIRCE, JR. Commissioner JOHN P. LYNCH County Controller Appendix "A" BASKIN, BOREMAN, WILNER, SACHS, GONDELMAN & CRAIG Attorneys at Law 10th Floor Frick Building Pittsburgh, Pa. 15219 TO THE PURChasers of the WITHIN DESCRIBED BONDS: Re: County of Allegheny, Pennsylvania, General Obligation Bonds, Series C-24, This opinion is furnished to you in connection with the issue and sale today by the County of Allegheny, Pennsylvania, of $27,000,000 principal amount of County of Allegheny, General Obligation Bonds, being Series C-24 in the amount of $27,000,000 (the "Bonds"). The Bonds are dated March 1, 1976 and mature in numerical order on March 1 of the years 1977 through 2006, both inclusive. The Bonds have been issued as coupon bonds, registrable as to principal only, in the denomination of $5,000 each, and will bear interest, at the rate of payable on September 1, 1976, and semi-annually thereafter on March 1 and September 1 in each year. The Bonds are subject to redemption at the option of the County of Allegheny on and after March 1, 1986 either as a whole at any time, or from time to time in part, on any interest payment date in the inverse order of their stated maturity dates. The Bonds are authorized by and have been issued and sold pursuant to Section 10, Article IX of the Pennsylvania Constitution; the Local Government Unit Debt Act (Act 185, approved July 12, 1972), as amended; and the Ordinances of the County of Allegheny adopted December 18, 1975, amended January 22, 1976, and February 11, 1976, which, among other things, authorized the issuance and sale of the Bonds, prescribed the form thereof, the manner of bidding therefor and the forms of the bidding documents used in connection with the issue and sale of the Bonds. The Bonds have been issued to provide funds to retire bond anticipation notes, dated August 28, 1975, in the amount of $14,000,000, and to partially finance the 1975-76 Capital Improvement Program for Allegheny County as needed, which Capital Improvement Program shall include the following: Greater Pittsburgh International Airport for new runway and reconstruction of aprons, taxiways and miscellaneous improvements; for public roads and bridges; County Buildings, including jail rehabilitation, and remodeling of old Juvenile Court Building in Oakland; for County parks and park improvements; to supplement federal grant for housing and human services and flood control; for Port Authority of Allegheny County for transit improvement; or for such other Public Improvement purposes as the Commissioners may from time to time deem necessary, and other improvements as noted in said Ordinances. We have examined the constitutional and statutory provisions referred to above and certain resolutions and ordinances adopted pursuant thereto by the County Commissioners of Allegheny County, Pennsylvania. We have also examined one fully executed and countersigned bond, the debt statement, and such other certificates and documents as we deem necessary for the purposes of this opinion. We are of the opinion that: 1. The principal amount of the Bonds is within all debt and other limitations fixed by the Constitution and the laws of the Commonwealth of Pennsylvania. 2. The County Commissioners of the County of Allegheny have, pursuant to the full and adequate legal power conferred upon them by the Constitution and the Local Government Unit Debt Act, validly taken all necessary and proper actions to issue and sell the Bonds, and the Bonds have been validly authorized, issued and sold pursuant to proper and appropriate action of such officials in accordance with the Constitution and the Local Government Unit Debt Act. 3. The Bonds, interest on the Bonds, transfers of the Bonds and gains on the sale thereof, other than the underwriting spread in a distribution thereof, are exempt from taxation for state and local purposes within the Commonwealth of Pennsylvania, except for gift, succession or inheritance taxes or any other |