Fulton County Facilities Corporation 2009 Certificates of Participation Continuing Annual Disclosures-2016 THE COUNTY

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1 Fulton County Facilities Corporation 2009 Certificates of Participation Continuing Annual Disclosures-2016 THE COUNTY The County is the central county in the Atlanta Metropolitan Area and the most populous county in Georgia. The latest estimated population of the County as of July 1, 2016 was 1,023,336, as estimated by the U.S. Census Bureau. This is a 1.54% increase from the July 1, 2015 mid-year Census bureau revised estimate of 1,007,803 and an 11.2% increase from the 2010 official count of 920,581. See the table entitled "Estimated Population, Ten-County Atlanta Region and the City of Atlanta" herein. Originally created in 1853 by the Georgia General Assembly and enlarged in 1931 by the absorption of two adjacent counties, the County encompasses 523 square miles. The City of Atlanta occupies about square miles, or about 25% of the County, and accounts for approximately 45% of its population. The fourteen other incorporated cities located in the County are: Alpharetta, Chattahoochee Hills, City of South Fulton, College Park, East Point, Fairburn, Hapeville, Johns Creek, Milton, Mountain Park, Palmetto, Roswell, Sandy Springs and Union City. Urban and suburban areas associated with Atlanta, Hapeville, East Point, Sandy Springs and College Park are located in the central section of the County; suburban areas associated with Alpharetta, Roswell, Johns Creek and Milton are located in the northern section of the County, and agricultural areas remain in the extreme ends of the 75-mile distance from the northern to the southern boundaries. Government The County Board of Commissioners is the governing and policy making body of the County. The Board consists of seven members, including the Chairman. Currently, one Commissioner, the Chairman, is elected at large for a four-year term ending December 31, 2018, while remaining Commissioners for each District are elected to serve staggered four-year terms. The current members of the Board are as follows: Name District Current Term Expires John H. Eaves, Chairman 7 December 31, 2018 Joan P. Garner, Vice Chair * 4 December 31, 2020 Liz Hausmann 1 December 31, 2018 Bob Ellis 2 December 31, 2020 Lee Morris 3 December 31, 2018 Marvin S. Arrington, Jr. 5 December 31, 2018 Emma I. Darnell 6 December 31, 2020 * Commissioner Joan P. Garner passed away on April 18, As such, her seat on the Board is vacant and will be subject to a special election. Bob Ellis was selected as new Vice-Chair. The Board sets levels of service to be provided by each department when it approves each annual department budget. It levies taxes, adopts a yearly capital improvement program, exercises authority over the County's health and welfare programs, authorizes County bond issues, and promotes new industrial activity through its Development Authority. It also regulates zoning, fire and police protection service, parks, and refuse disposal in the unincorporated areas of the County.

2 The Board appoints the County Manager as its chief executive officer, who in turn appoints all department heads, except elected officials and some whose appointments are specifically provided for by law. The County Manager s chief function is to carry out County policy as set by the Board. The Finance Department is responsible for the collection, stewardship, and disbursement of County funds. The Finance Department compiles the County budget, the Comprehensive Annual Financial Report and accumulates data to evaluate programs, and analyzes revenue requirements. The County Attorney oversees an extensive litigation practice which includes employment, catastrophic personal injury, wrongful death, governmental contract, taxation, tax sales, tax assessment, zoning, land use, environmental, construction, constitutional, First Amendment, Section 1983, and bankruptcy matters and extensive motion and appellate practice. The Office of the County Attorney also oversees a great variety of property and tax matters. County Services As of April 1, 2017, the County employed 5,052 people on a full-time basis, which figure includes elected officials and department heads. The County justice and court system, tax assessment and collections, libraries, public health services, and recreation are the responsibilities of the County government. Public hospital facilities are administered by The Fulton-DeKalb Hospital Authority, which oversees operations at Grady Memorial Hospital Corporation which including satellite health facilities. The newly established Fulton County Board of Health begins operations July 1, 2017, in which health services to County residents will be provided via various sites throughout the County. Specific services are provided to the unincorporated section of the County until May 1, 2017, then to the newly incorporated City of South Fulton. These services include fire and police protection, street and road construction and maintenance, parks and recreational facilities, licensing, inspecting, and enforcement of building, housing, plumbing and electrical codes. Water treatment and distribution and sewage disposal are provided to County residents connected to these services. The school system for the County, outside the limits of the City of Atlanta, is operated by the Fulton County Board of Education, which is an independent governmental unit. The County owns and operates Fulton County Airport Brown Field, a general aviation airport facility designed for heavy corporate use. Through contractual arrangements, the County provides financial support to The Fulton- DeKalb Hospital Authority, the Building Authority of Fulton County, Fulton County Urban Redevelopment Agency, the Georgia World Congress Center Authority and the City of Atlanta and Fulton County Recreation Authority, which owns and manages operations at the Atlanta Zoo and Philips Arena, and which previously owned and operated Turner Field.

3 Population The U.S. Census Bureau estimated that the County's population as of July 1, 2016 was 1,023,336, and is the 43 rd most populous county in the United States according to the Bureau s July 1, 2016 estimates and the largest in the State of Georgia. ESTIMATED POPULATION, TEN-COUNTY ATLANTA REGION AND THE CITY OF ATLANTA Percent Change (1) (1) Cherokee 90, , , , % 51.1% 12.8% Clayton 181, , , , Cobb 447, , , , DeKalb 546, , , , Douglas 71,120 92, , , Fayette 62,415 91, , , Fulton 648, , ,581 1,023, Gwinnett 352, , , , Henry 58, , , , Rockdale 54,091 70,111 85,215 89, Atlanta Region 2,513,609 3,429,379 4,107,750 4,505, City of Atlanta 393, , , ,878 (2) (2) (1) U.S. Department of Commerce, Bureau of the Census, as of July 1, (2) U.S. Census estimate as of July 1, 2015, latest available. Source: U.S. Department of Commerce, Bureau of the Census. Budget Control FULTON COUNTY GENERAL FUND The expenditures of the County are made pursuant to local ordinance, which complies with all State of Georgia O.C.G.A requirements. The County follows these procedures in establishing its annual budgets: (1) Prior to November 15 of the year preceding the budget year, the Budget Commission, consisting of the Chairman of the Board, the County Manager and the Chief Financial Officer, receives budget requests from County departments. (2) Hearings may be held by the Budget Commission to review budget requests, justifications and recommendations. (3) By November 15, the Budget Commission presents a recommended budget for the fiscal year beginning the following January 1 to the Board. This budget includes recommended expenditures and estimated revenues to finance them. This proposed budget is

4 made available for the public to review and is published in accordance with O.C.G.A requirements. The proposed budget is the acting budget until the final budget is adopted. (4) In December, the statutorily required public hearing is held. (5) The budget is legally adopted by the Board at the first or second meeting in January of the current budget year. A balanced budget is required by law. (6) The level of legal budgetary control (the level at which expenditures may not exceed appropriations) is at the department level with the following provisions: (i) Departments, with the approval of the County Manager or his/her designee, are authorized, with certain exceptions, to transfer amounts within departmental budgets. (ii) Budget amendments that would increase total department appropriations, require Board approval. (7) Budgets are legally adopted for the General Fund, Special Services District Funds, Debt Service Funds and other Special Revenue Funds. Formal budgetary integration is employed as a management control device during the year for the General and the Special Services District Funds. The County generally budgets for capital improvements in the General Fund and transfers the appropriation to the Capital Projects Fund. The annual budget must include appropriations sufficient to cover bond debt service, and funds so appropriated are placed in the Debt Service Fund. All annual appropriations, both encumbered and unencumbered, lapse at December 31. (8) Total appropriations for any fund may be increased if, during the year, sources of revenue become available to the County in excess of original anticipations, and these amounts are anticipated by the Budget Commission and subsequently appropriated by the Board. The Board adopted the 2017 General Fund Budget of the County on January 18, During the 2016 session of the Georgia General Assembly, Senate Bill 274 was adopted by both houses of the General Assembly and signed by the Governor on April 26, Senate Bill 274 repealed the existing 1953 Budget Law for Fulton County. As a result, the County adopted budgeting practices (pursuant to a Budget ordinance) similar to ones employed by the other 158 counties within Georgia.

5 fll. TO:\" COC:\"n. GEORGL\....\ssessed and Esrimaced...\cmal \ ah1e of Ta rnble Properry L asr Ten Fiscal Years (in thousands ) Fiscal Year s Assessed Total \ alue as a Personal Total Direct percemage Real Public and assessed Tax of Acrual P ro12erry Ctiliries Business \ alue Rare Value.+6.3SO.-H S o l.l ,.., o r o l _..+ _ B u r , rn o l s S.-H , , ""' s , ""' lo.-o.+0 o Esrimaced acrual value l l T""' l.+s Source: Fulton Counry Tax Commissioner. :\ore: The abo\ e assessed \"alues may be reduced some\\ hat due ro the follo\\ ing exemptions: (l)...\special full \ aiue homestead ex.em pcion is al!o\yed on O\\"ller-occupied resideuces of persons \\"ho are age -o or O\ er who meec cerrain income requirements. This exemption applies on~ to Fulton Counry taxes. Scare and school ta'\es are not exempt. l ~ '....\regular homestead exemption is allo\\"ed on all O\\ ner-occupied homes. except for pmposes of school and bond ta'\ Je\ ies \n exemption is allo\\ ed on qualifying real properry de\ oced to agiiculnu al or histotic purposes. l ~ 1...\ 100 o Freeporr exemption exists on applicable business m, enro1ies. 151 Assessed \ alues a.re established by the Fulton Counry Board of Ta'\...\ssessors on January l of eacl! year. l 6)...\n exemption is al!o\yed for properry used in or \\"l!ich is a pan of any facility for the primary pmpose of ehninati.ng or reducing air or \\"ater pollution if the facilities hm e been cenitied by rbe Georgia Depanmenr of :\anu al Resomces.

6 General Fund Balance CASH AND AVAILABLE RESOURCES (1) CASH FLOW SUMMARY (CASH BASIS) HISTORICAL AND PROJECTED REVENUES AND EXPENDITURES Budgeted Beginning cash, January 1 $101,568,426 $ 84,584,128 $127,359,713 $155,696,922 $129,587,338 Capital improvement funds 10,000,000 65,000, Total $111,568,426 $149,584,128 $127,359,713 $155,696,922 $129,587,338 REVENUES (2) Current tax $407,544,911 $492,013,692 $491,325,033 $480,275,993 $500,472,317 Delinquent tax 14,028,590 28,477,716 23,379,365 11,694,823 33,132,419 Sales tax 35,459,642 34,542,610 35,663,527 36,034,692 26,000,000 All other 72,080,092 69,663,297 68,490,845 75,564,371 78,420,227 Total revenues 529,113, ,697, ,858, ,569, ,024,963 Total cash and revenues $640,681,661 $774,281,443 $746,218,483 $759,266,801 $767,612,301 EXPENDITURES (2) General fund expenditures $546,097,533 $581,921,730 $590,521,561 $629,679,463 $661,979,199 Use of other resources 10,000,000 65,000, Total expenditures $556,097,533 $646,921,730 $590,521,561 $629,679,463 $661,979,199 Ending cash, December 31 st $ 84,584,128 $127,359,713 $155,696,922 $129,587,338 $105,633,102 (1) Estimated cash balance at beginning of current fiscal year available to meet cash flow requirements during fiscal year. (2) Revenues and expenditures shown for 2013 through 2016 are prepared on an unaudited cash basis. Revenues and expenditures shown for 2017 are based upon budgeted revenues and expenditures. Source: Fulton County Finance Department. General Fund Revenues by Source Inter- Governmental Revenue (Cash Basis) (In Thousands of Dollars) Miscellaneous and operating transfers Fiscal Year Taxes Charges for Services Court and Law Use of Money and Property Total 2007 $499,396 $17,556 $26,083 $20,496 $16,348 $20,602 $600, ,942 3,509 30,342 18,330 12,143 20, , ,177 14,303 36,880 18,133 3,828 16, , ,197 3,059 38,242 18,536 4,326 27, , ,802 3,820 26,582 18,166 4,346 17, , ,867 3,872 29,248 16,459 3,956 25, , ,033 4,090 26,204 16,294 3,835 21, , ,827 4,079 30,735 15,516 3,914 18, , ,368 4,919 28,554 15,689 3,015 16, , ,006 4,536 28,296 14,573 3,314 24, ,570 Source: Fulton County Finance Department.

7 General Fund Expenditures by Function (Cash Basis) (In Thousands of Dollars) Infrast. Other Transfers Fiscal Year Health Public Safety Admin. And Facility Social Services Legal Non- Agency Hospital Capital Projects Debt Service Total 2007 $36,461 $ 93,786 $ 90,431 $39,407 $66,454 $109,947 $56,371 $100,639 $40,451 $7,657 $641, , , ,934 41,409 82, ,626 45,680 80,000 27,947 6, , ,252 96,822 90,103 37,474 75, ,110 51,936 76,500 28,365 6, , ,279 99,646 92,234 35,639 67, ,793 28,648 45,073 30,091 2, , ,745 96,715 87,850 34,132 67, ,554 30,946 62,117 25,292 6, , , ,053 88,996 33,857 68, ,123 31,221 70,647 30,732 6, , , ,780 84,781 33,167 64, ,785 26,885 50,000 31,621 5, , , ,086 89,256 35,152 57, ,729 28,232 59,603 35,962 6, , ,038 99,853 85,818 31,596 51, ,962 66,802 61,805 44,138 7, , , ,339 91,027 33,616 57, ,504 73,472 60,057 62,191 7, ,679 NOTE: Beginning in 2015, the employer contribution for the defined benefit pension plan is primarily recorded as Other Non-Agency, which lowers the associated cost of the other categories by approximately $35 million. Source: Fulton County Finance Department.

8 General Fund Revenues, Expenditures and Changes in Fund Balance General Fund Revenues, Expenditures and Changes in Fund Balance GENERAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (1) LAST FIVE YEARS (In Thousands of Dollars) (Modified Accrual Basis) REVENUES: Taxes $531,290 $551,132 $550,717 $470,554 $467,573 Intergovernmental 4,559 4,357 4,642 4,090 3,872 Charges for Services 28,296 28,549 29,957 26,988 29,248 Courts and law enforcement 14,540 15,578 15,737 16,294 16,459 Use of Money and Property 3,314 3,015 3,914 3,835 3,956 Miscellaneous 12,464 9,512 6,192 3,564 4,342 Net(depreciation)appreciation on investments Total Revenues $594,463 $612,143 $611,159 $525,325 $525,450 EXPENDITURES: Current: Administration 92,642 79,827 86,263 79,844 86,787 Public Safety 100,733 98, , , ,389 Legal 120, , , , ,993 Infrastructure and facilities 30,422 29,355 46,390 40,390 41,748 Social Services 50,993 50,116 30,638 34,647 37,328 Health Services 84,917 87, ,079 89, ,799 Other nonagency 71,712 66,620 27,803 25,118 29,812 Debt Service: Principal Retirement 5,067 5,295 5,101 3,061 4,000 Interest 2,096 2,008 2,131 2,085 2,136 Total Expenditures $559,056 $535,790 $538,099 $491,132 $523,992 Excess (Deficiency) of Revenues over (under) expenditures 35,407 76,353 73,060 34,193 1,458 Other financing sources (uses): Transfer in from enterprise fund 400 Transfers in ,689 8,191 Transfers out (64,484) (44,771) (36,957) (44,509) (49,225) Total other financing sources (uses) (63,662) (44,076) (36,260) (39,420) (41,034) Net change in fund balances (28,255) 32,277 36,800 (5,227) (39,576) Fund Balance at beginning of year 152, ,558 83,758 88, ,561 Fund Balance at end of year $124,580 $152,835 $120,558 $ 83,758 $ 88,985 (1) This schedule was prepared by the Fulton County Finance Department. Information shown for years 2012 through 2016 was obtained from audited financial statements of the County prepared on a modified accrual basis.. Source: Fulton County Finance Department.

9 PROPERTY TAXES Property Tax Digest The County is primarily dependent on property tax, in addition to sales tax collections, for over three fourths of total revenues, followed by license and fee revenues and grants. Ad valorem property taxes, in particular, serve as the primary source of repayment and security for the Notes. The County reappraises a portion of the real property located in the County annually so that all real property is reappraised every three years. The assessment of real property in the County is overseen by the Fulton County Board of Tax Assessors, and the level of appeals of its assessments varies from year to year and can at times be significant. A taxpayer may appeal the reappraised value of his property. Georgia law requires the County Tax Commissioner to issue temporary tax bills to taxpayers in appeal equal to the higher of the taxpayer's return of value or 85% of the current year's valuation as set by the County Board of Tax Assessors. In addition, taxes in appeal are not considered delinquent if the taxpayer pays the County the amount of taxes which would be due based on the assessed valuation for the prior year or based on the portion of the undisputed assessed valuation. HISTORICAL ASSESSED VALUE OF TAXABLE PROPERTY (1) (In Thousands of Dollars) Total Assessed Value (Gross) Net Assessed Value for General Purposes Fiscal Year Real Property Personal Property Public Utilities Total M&O Exemptions 2007 $46,380,413 $6,991,764 $1,090,830 $54,463,007 $6,706,040 $47,756, ,883,106 7,256,388 1,108,038 58,247,532 6,814,074 51,433, ,156,181 7,403,437 1,119,093 58,678,711 7,360,778 51,317, ,152,996 6,999,360 1,067,474 55,219,830 7,638,222 47,581, ,294,177 7,166,610 1,067,474 53,528,261 7,895,543 45,632, ,328,112 7,517,644 1,147,265 51,993,021 7,648,239 44,344, ,813,235 8,126,964 1,055,835 51,996,034 7,508,857 44,487, ,423,387 7,721,837 1,063,189 53,208,413 7,777,452 45,430, ,532,798 7,190,827 1,137,292 57,860,917 8,727,399 49,133, ,666,238 7,406,453 1,129,634 59,202,325 8,886,618 50,315,707 (1) Under Georgia law, the value of taxable tangible property, with certain exceptions, is required to be assessed at 40% of its estimated fair market value. Source: Fulton County Tax Commissioner and Georgia Department of Revenue.

10 Property Tax Rates TAX RATES (1) (Rate per $1,000 Assessed Value) South Fulton Special Tax District Fiscal Year County Bonds and Operating Special Tax District County Schools State Total (1) Does not include tax millage rates for municipalities or the Atlanta Independent School District located wholly or partially within the County. For 2016, such tax millage rates were as follows: (1) Alpharetta 5.75, (2) Atlanta 11.83, (3) Atlanta Independent School District 21.74, (4) Chattahoochee Hills 10.96, (5) College Park 12.62, (6) East Point (7) Fairburn 9.57, (8) Hapeville 16.61, (9) Johns Creek 4.36, (10) Milton 4.73, (11) Mountain Park 12.90, (12) Palmetto 8.50, (13) Roswell 5.46, (14) Sandy Springs 4.73, and (15) Union City Millage rates for the City of South Fulton have not yet been determined and are expected to impact the millage rate established each year and the service area for the South Fulton Special Services District. Millage rates have, in certain cases, been rounded to the nearest 100 th of a percent. Source: Georgia Department of Revenue, Local Government Services Division.

11 Property Tax Collection Schedule County property taxes are generally levied approximately on July 1, based on property values as of January 1, and are payable by October 15. The 2016 tax digest was submitted timely and certified during calendar year The 2016 tax bills were delayed by approximately one month due to corrections to reporting. As such, 2016 property tax bills were due on November 15, 2016 for the County property taxes instead of October 15, As of December 31, 2016, the County had collected approximately 94.9% of the 2016 tax bills. After the due date, interest is charged on unpaid taxes as follows: first $1,000, 7% per annum; amounts over $1,000, 7% per annum plus 1% for each month the amount is unpaid, with a maximum of 12% per annum. In addition to the applicable interest charges, a 10% penalty is assessed as receivables become greater than 90 days delinquent. The Board generally establishes the property tax millage rates by June 30. Unpaid property taxes may attach as an enforceable lien on property as of January 1 of the following year. Set forth below is a table showing the County's tax collection record for the past ten years. TAX COLLECTION RECORD FULTON COUNTY GENERAL FUND AS OF DECEMBER 31, 2016 (In Thousands of Dollars) Total Collections as Percent of Outstanding Delinquent Taxes as Percent of Current Levy Fiscal Year Total Tax Levy Current Tax Collected (1) Percent of Levy Collected Delinquent Tax Collected Total Tax Collected Current Levy Outstanding Delinquent Taxes 2007 $414,657 $385, % $17,709 $402, % $16, % 2008 (1) 451, , , , , (2) 463, , , , , (1) 422, , , , , , , , , , , , , , , , , , , , (1) 458, , , , , , , , , , (3) 463, , , , , (1) (2) (3) 2008, 2010 and 2014 due date October 31 as opposed to a normal due date of October due date December 15 as opposed to a normal due date of October due date November 15 as opposed to a normal due date of October 15. Source: Fulton County Tax Commissioner.

12 SUMMARY OFT AX-SUPPORTED DEBT DECEMBER 31, 2016 Direct General Obligation Debt< 1 > Direct Contractual Obligations< 1 > Overlapping Direct and Contractual Obligations Overall Tax-Supported Debt Gross Bonded Debt $143,880, ,316, ,689,632 $98 1,886,403 Debt Ratio of Assessed Value for Bond Purposes< 2 > 0.26% % Debt Ratio of Estimated Market Value< 3 > 0.10% % Gross Bonded Debt Per Capita< 4 > $ $ ( I) (2) (3) (4) Includes unamortized premiums/discounts. Based upon assessed value for bond purposes of $55,916,272,000. Assessed value of taxable property equals 40% of estimated market val ue of the property. Based on the U.S. Census Bureau's 2016 estimate of the population of the County of 1,023,336. Source: Fulton County Finance Department. Fiscal Year Debt Service Fund Property Tax Levy and Collections Last Ten Fiscal Years (in thousands) Total Current Percent Delinquent Total collections as current year tax of levy tax tax percentage of tax levl:'. collected collected collected collected curcnt levv s s % s 11 5 s 11 5 (I) (2) II II ( I) ,040 11, , ,681 11, , ,709 11, , ( I ) 12,272 11, , ,568 12, , (J) 13,053 12, , Outstanding delinquent taxes % s Outstanding delinquent taxes as percentage of current levy 0. 1% (I) & 2014 due da1e Oc1ober 31 as opposed lo nonnal due dale of Oc1ober IS (2) 2009 due dale December IS as opposed lo nonnal due dale ofoc1obcr IS (3) 2016 due dale November IS as opposed 10 a nonnal due dale of Oc1ober IS AmounlS represented for Real Estate & Personal Property Taxes

13 Major Taxpayers TEN MAJOR TAXPAYERS OF FULTON COUNTY (1) Assessment Percentage of Total Assessed Value Taxes (2) Development Authority of Fulton County $ 1,544,466, % $16,139,674 Georgia Power 436,715, ,563,674 AT&T 275,399, ,877,927 Coca Cola Company 234,970, ,455,446 Post Apartment Homes 172,118, ,798,636 Delta Airlines 153,035, ,599,224 SunTrust Plaza Associates LLC 136,789, ,429,454 BellSouth Telecommunications 118,583, ,239,193 Corporate Property Investors 110,808, ,157,944 Selig Enterprises Inc. 98,136, ,025,528 Total ten major taxpayers $ 3,281,023, % $34,286,700 Total County gross assessed value (1) $59,202,325,232 (1) Taxes and assessments based on values at time of presentment, with the temporary collection order in place. (2) "Taxes Levied" include taxes levied by Fulton County, the State of Georgia, Fulton County Special Service Districts (where applicable), non-city of Atlanta Community Improvement Districts (where applicable) and Fulton County Board of Education, except that properties located within the City of Atlanta do not pay Fulton County Board of Education taxes. Source: Fulton County Tax Commissioner. Note: Property held by the Development Authority of Fulton County is subject to reduced property tax payments for a period of time (usually 10 years) pursuant to a tan incentive program administered by this entity

14 FULTON COUNTY, GEORGIA Computation of Direct and Overlapping Debt as of December 31, 2016 Name of Amount Percentage Amount governmental unit outstanding applicable applicable Direct debt: Fulton County General Obligation Library bonds $ 143,880, % 143,880,673 Fulton County School District 55,870, % 55,870,000 Municipalities: Alpharetta 94,330, % 94,330,000 Atlanta (including School District) 387,953, % * 364,772,411 Hapeville 12,925, % 12,925,000 Fairburn 8,830, % 8,830,289 Union City 10,179, % 10,179,160 Roswell 11,409, % 11,409,238 Total direct debt 725,377, ,196,771 Contractual obligations and overlapping contractual obligations: Fulton County Urban Redevelopment Agency 21,291, % 21,291,000 College Park Business and Industrial Development Authority 210, % 210,000 The Fulton-DeKalb Hospital Authority: Revenue Refunding Certificates Series ,330, % 99,330,000 City of Atlanta and Fulton County Recreation Authority: Arena Series 2010 (1) 97,285, % * 93,409,748 Zoo Series 2007 (1) 10,930, % * 10,440,191 East Point Building Authority 55,008, % 55,008,693 Total overlapping debt $ 284,054, ,689,632 Total direct and overlapping debt and contractual obligations and overlapping contractual obligations (2) $ 1,009,432, ,886,403 * For above debt funded through property tax collections the percentage of overlapping debt applicable is estimated using taxable property values for the specific geographic area. (1) The County and the City are obligated to pay one-third and two-thirds, respectively, of the debt service on the Arena Series 2010 Bonds in the event that revenues from Philips Arena are not sufficient to pay debt service. To date, the County has not been called upon to pay any debt service. The County and the City of Atlanta are obligated to pay one-quarter and three-quarters, respectively, of debt service on the Zoo Series 2007 bonds. (2) Does not include the County's obligations prusuant to an annually renewable lease agreement with the Fulton County Facilities Corporation. The balance outstanding as of December 31, 2015 is $55,275,000 (3) Does not include the City of Sandy Springs obligations prusuant to an annually renewable lease agreement with the Public Facilities Authority. The balance outstanding as of December 31, 2016 is $159,475,000 Calculation of City of Atlanta overlapping percentages: M&O A.V. ($000s) % of M&O A.V. Bond A.V. ($000's) % Bond A.V. City of Atlanta in Fulton $ 24,171, % $ 25,945, % City of Atlanta in DeKalb 1,391, % 1,648, % $ 25,562, % $ 27,594, %

15 FULTON COUNTY, GEORGIA Other Schedules Debt Service Requirements to Maturity General Obligation Bonds (2010 Library bonds) December 31, 2016 (In thousands of dollars) Calendar year Principal Interest Totals 2017 $ 4,440 6,565 11, ,575 6,430 11, ,715 6,280 10, ,820 6,111 10, ,930 5,933 10, ,050 5,741 10, ,180 5,535 10, ,320 5,319 10, ,465 5,090 10, ,615 4,832 10, ,795 4,550 10, ,985 4,259 10, ,175 3,958 10, ,375 3,647 10, ,580 3,320 9, ,800 2,976 9, ,025 2,620 9, ,260 2,252 9, ,505 1,872 9, ,755 1,479 9, ,015 1,074 9, , , , ,780 $ 142,225 90, ,942 Unamortized premium at December 31, ,656 (1,656) $ 143,881 89, ,942

16 This schedule also contains all information for Records of Direct Bonded Debt, 2016 s County population estimate is 1,023,336. FULTON COUNTY, GEORGIA Ratios of General Obligation Debt Outstanding Last Ten Fiscal Years (in thousands) General Less Net Assessed value Percentage of Net bonded Fiscal Obligation debt service bonded for bond actual taxable debt per capita Year bonds* funds debt purposes value (not in thousands) 2007 $ 4,581 6,600 51,893,006 % $ ,760 3,429 55,482, ,717, , ,469 53,981, ,564 1, ,324 50,762, ,545 4, ,064 49,250, ,373 9, ,341 49,278, ,044 13, ,498 50,337, ,548 18, ,257 54,588, ,881 22, ,152 55,916, ASSESSED VALUATION OF TAXABLE PROPERTY, DECEMBER 31, 2016 (In Thousands of Dollars) Estimated Market Value of Taxable Property $148,005,813 Assessed Valuation, Gross (40% Basis) 59,202,325 Less: Applicable Property Tax Exemption for Bond Purposes (3,286,053) Assessed Valuation for Bond Purposes (1) $ 55,916,272 (1) For purposes of Georgia constitutional and other legal requirements, the County may legally issue its general obligation bonded indebtedness in an amount up to 10% of the gross assessed valuation, less applicable property tax exemptions. The indebtedness of the County designated as "Contractual Obligations" in the immediately following table is not subject to the 10% limitation. Source: Fulton County Tax Commissioner. Constitutional Debt Limitation The constitutional limit on direct general obligation bonds ("Direct General Obligation Bonds") is the amount equal to 10% of the assessed valuation of taxable property (the "Debt Limit") within the County. Ten percent of the assessed valuation of taxable property is $5,591,627,000. As of December 31, 2016, the County had $121,152,000 Direct General Obligation Bonds. Therefore, the County's unused debt margin was approximately $5,470,475,000 as of January 1, After giving effect to the below referenced issuance by

17 the County of its $104,785,000 in General Obligation Library Bonds on January 31, 2017, the County presently has approximately $225,937,000 in Direct General Obligation Bonds, and $5,365,890,000 of unused debt margin. Authorized General Obligation Bonds The issuance by the County of Direct General Obligation Bonds in an aggregate principal amount not to exceed $275,375,000, in one or more series for library system purposes, was approved by a majority of the voters of the County pursuant to a referendum held on November 4, The County previously issued $167,000,000 in General Obligation Library Bonds in 2010 from this 2008 authorization, and, on January 31, 2017 issued $104,785,000 of General Obligation Library Bonds, which represented the remaining amount of the 2008 authorization. The County is not currently authorized to issue any more Direct General Obligation Bonds. However, the County reserves the absolute right to issue additional Direct General Obligation Bonds, subject to the Debt Limit, at the times and in the manner permissible under applicable law. In addition to the foregoing transactions, the County may also pursue other financing or refinancing opportunities that: (a) lower costs of borrowing and/or maximize savings in accordance with long term planning objectives, and/or (b) provide funding for projects approved by the Board, inclusive of Property Tax Supported Debt. In addition to the outstanding Direct General Obligation Bonds, the County has other indebtedness, which is property tax supported, including contractual obligations with The Fulton-DeKalb Hospital Authority, the Fulton County Urban Redevelopment Agency, the Geo. L. Smith, II Georgia World Congress Center Authority and the City of Atlanta and Fulton County Recreation Authority (collectively, the "Property Tax Supported Debt"). As of December 31, 2016, the latest date for which this data is available, the County was responsible for $279,689,632 in Property Tax Supported Debt. DISCLOSURE REQUIRED BY THE SEC PURSUANT TO THE MCDC ORDER The County previously self-reported to the SEC pursuant to the Division of Enforcement's (the "Division") Municipalities Continuing Disclosure Cooperation Initiative (the "MCDC Initiative"). In anticipation of the institution of proceedings by the SEC in connection with the MCDC Initiative, the County submitted an Offer of Settlement in April 2016 which the SEC accepted and which resulted in an order being entered by the SEC on the matter on August 24, 2016 (the "MCDC Order"). Solely for the purpose of the proceedings brought by or on behalf of the SEC under the MCDC Initiative, and without admitting or denying the findings in the MCDC Order, except as to the SEC's jurisdiction over it and the subject matter of the proceedings, which were admitted, the County consented to the entry of the MCDC Order. Pursuant to the MCDC Order, the SEC ordered, among other things, that the County shall comply with the following undertakings: (a) Within 180 days of the entry of the MCDC Order, establish appropriate written policies and procedures and periodic training regarding continuing disclosure obligations to effect compliance with the federal securities laws, including the designation of an individual or officer at the County responsible for ensuring compliance by the County with such policies and

18 procedures and responsible for implementing and maintaining a record (including attendance) of such training. (b) Within 180 days of the entry of the MCDC Order, comply with existing continuing disclosure undertakings, including updating past delinquent filings if the County is not currently in compliance with its continuing disclosure obligations. (c) For good cause shown, the SEC staff may extend any of the procedural dates relating to these undertakings. Deadlines for procedural dates shall be counted in calendar days, except that if the last day falls on a weekend or federal holiday, the next business day shall be considered the last day. (d) Disclose in a clear and conspicuous fashion the terms of the settlement in any final official statement for an offering by the County within five years of the institution of the proceedings. (e) Certify, in writing, compliance with the undertakings set forth above. The certification shall identify the undertakings, provide written evidence of compliance in the form of a narrative, and be supported by exhibits sufficient to demonstrate compliance. The SEC staff may make reasonable requests for further evidence of compliance, and the County has agreed to provide such evidence. The certification and supporting material shall be submitted to SEC staff with a copy to the Office of Chief Counsel of the Division, no later than the one-year anniversary of the institution of these proceedings (August 24, 2017). (f) Cooperate with any subsequent investigation by the Division regarding the false statement(s) and/or material omission(s), including the roles of individuals and/or other parties involved. LITIGATION The County, like other similar bodies, is subject to a variety of suits and proceedings arising in the ordinary conduct of its affairs. The County, after reviewing the current status of all pending and threatened litigation with the County Attorney, Patrise Perkins-Hooker, Esquire, believes that, while the outcome of litigation cannot be predicted, the final settlement of all lawsuits which have been filed and of any actions or claims pending or, to the knowledge of the County, threatened against the County or its officials in such capacity are adequately covered by insurance or sovereign immunity or will not have a material adverse effect upon the financial position or results of operations of the County. There is no litigation now pending or, to the knowledge of the County, threatened against the County which restrains or enjoins the issuance or delivery of the Notes or the use of the proceeds of the Notes or which questions or contests the validity of the Notes or the proceedings and authority under which they are to be issued, executed and delivered. Neither the creation, organization nor existence of the County, nor the title of the present members or other officials of the County to their respective offices, is being currently contested or questioned to the knowledge of the County.

19 FULTON COUNTY, GEORGIA Schedule of Legal General Obligation Debt and Multi-year Lease Margin December 31, 2016 (In thousands of dollars) Net Assessed Valuation $ 55,916,272 Debt limit 10% of assessed value $ 5,591,627 Amount of General Obligation Debt 143,881 Less Available Debt Service Funds 22,729 Net General Obligation Debt $ 121,152 Amount of Principal Portion of Lease Payments 143,988 Total Amount of General Obligation Debt and Principal Portion of Lease Payments Applicable to Debt Limit $ 265,140 Unused Legal General Obligation Debt and Multi-Year Lease Debt Margin $ 5,326,487 Note: The County, pursuant to the laws of the State of Georgia, is authorized to enter into multi-year lease, purchase or lease purchase contracts provided that the principal portion of such contract, when added to the amount of debt incurred by the County pursuant to Article IX, Section V, Paragraph I of the Constitution of Georgia does not exceed ten percent of the assessed value of all taxable property within the County.

20 FULTON COUNTY, GEORGIA Schedule of Average Annual Lease Payments Margin December 31, 2016 (In thousands of dollars) Fiscal Year 2016 Governmental Fund Revenues $ 742,806 Fiscal Year 2016 Available Special County 1 Percent Sales and Use Tax Proceeds (1) $ - Total $ 742,806 Average Annual Payments Limit - 7.5% of Total Governmental Fund Revenues and Sales and Use Tax $ 55,710 Estimated Average Annual Lease Payments (2) $ 24,978 Note: The County, pursuant to the laws of the State of Georgia, is authorized to enter into multiyear lease, purchase or lease purchase contracts with respect to real property provided that the average annual payments for such contracts shall not exceed an amount equal to 7.5 percent of the governmental fund revenues of the County for the calendar year preceding the delivery of such contract plus any available special County one percent sales and use tax proceeds collected pursuant to O.C.G.A (1) The County collects a one percent sales and use tax pursuant to O.C.G.A and these tax proceeds are reflected in the governmental fund revenues. The County does not collect a special county one percent sales and use tax pursuant to O.C.G.A (2) Includes actual average annual lease payments on the Series 1999 Certificates of Participation, the Fulton County Urban Redevelopment Agency lease payments and other outstanding leases. Does not include the Fulton DeKalb Hospital Authority bonds.