Daytona Beach, FL, City of

Daytona Beach, FL, City of 1 City of Daytona Beach, Florida General Obligation Refunding Bonds,, $18,810,000 Dated: May 15, 2012 2 City of Daytona Beach, Florida Capital Improvement Revenue Bonds, Series 2011A, $33,460,000; Capital Improvement Revenue Bonds, Series 2011B, $2,160,000 Dated: June 23, 2011 -GO Assessed Value and Estimated Actual Value of Taxable Property Total Taxable Residential Commercial Industrial Agricultural Institutional Governmental Vacant Land Tangible Total Less: Tax- Assessed Total Direct Fiscal Year Ended September 30 Property Property Property Property Property Property and Other Property Market Value Exempt Property Value Tax Rate 2,205,004,032 1,183,636,481 137,619,000 91,816,451 225,150,182 797,265,895 321,853,997 661,241,912 5,623,587,950 2,195,874,518 3,427,713,432 7.3517 -GO Direct and Overlapping Property Tax Rates Fiscal Daytona Beach St. Johns Year Downtown River Water Florida Inland Ponce Deleon Mosquito Total - All Daytona Development Volusia Volusia County Management Navigation Hospital Inlet and Port Control Taxing Beach Authority County School District District District District Authority District Districts 7.35170 1.00000 7.27090 7.33600 0.31640 0.03450 1.00000 0.09290 0.18800 24.59040 GO Property Tax Levies and Collections Collected within the Fiscal Year of the Levy Collections in Total Collections to Date Taxes Levied Percent Subsequent Percent Year for Fiscal Year Amount of Levy Years Amount of Levy 23,726,632 22,841,108 96.27% 290,801 23,131,909 97.49% -GO Description of Any Material Litigation Not applicable -GO Any Other Financial Information or Operating Date Which the Issuer Determines would be Material to a Holder or Prospective Holders of the Certificates Insert Required Information

Pledged Tax Increment Revenues Assessed Total Assessed HBE Prime Assessed Taxable HBE Prime Area/Ocean Walk January 1 Taxable Value of Area/Ocean Walk Prime Area Tax Value of HBE Ocean Walk Prime Area Increment Prime Area Prime Area Taxable Value Revenues 46,067,873 152,544,654 198,612,527 2,244,096 Millage Rate for the Main Street Redevelopment Area Fiscal Year Millage 14.78450 Pledged Tax Increment Revenue Debt Service Coverage Taxable Value of Existing Base Ocean Walk Prime Area $ 152,544,654 HBE Prime Area 46,067,873 Total Taxable Value of Existing Base $ 198,614,542 Millage for Main Street Redevelopment Area 14.78450 Total Pledged Tax Increment Revenue $ 2,244,096 Total Main Street Redevelopment Area Tax Increment Revenue $ 3,544,073 Debt Service Coverage C-1 Loan Agreement Debt Service $ 2,513,756 Total Pledged Tax Increment Revenue Debt Service Coverage 0.89 Total Main Street Redevelopment Area Tax Increment Revenue Debt Service Coverage 1.41 Legally Available Non-Ad Valorem Revenues Revenues: Taxes: Occupational License $ 990,019 Franchise tax - Public Service Tax 10,520,534 Licenses and Permits: Occupational License - Franchise tax 6,108,348 Other 84,521 Intergovernmental: Half Cent Sales Tax 3,213,470 State Revenue Sharing 2,064,089 Other 918,388 Charges for services: Indirect Services 1,504,778 Public Safety 803,856 Transportation and Parking 124,051 Recreation and Culture 224,876 Other 597,627 Fines and forfeitures 575,955 Income on investments 345,922 Other 986,064 Net Transfers to General Fund 11,671,609 Total sources of Non-Ad Valorem Revenues $ 40,734,107

Debt Service Schedule For Non-Ad Valorem Revenue Obligations Source Principal Final Maximum Description of Security Amount Outstanding Maturity Annual Debt Service Capital Improvement Revenue Note, Series 2009 Non-Ad Valorem Revenue 25,542,000 November 1, 2028 3,652,350 Capital Improvement Revenue Note, Series 2010 Non-Ad Valorem Revenue 7,109,400 November 1, 2024 851,700 Capital Improvement Revenue Bonds, Series 2011A Non-Ad Valorem Revenue 28,545,000 February 1, 2031 2,537,656 Capital Improvement Revenue Bonds, Series 2011B Non-Ad Valorem Revenue 940,000 February 1, 2021 319,563 Anti-Dilution Test Calculation For Non-Ad Valorem Revenue Obligations Legally Available Non-Ad Valorem Revenues for Debt Service $ 40,734,106 Cost of Essential Services not covered by Ad Valorem Revenues 23,241,769 Balance Available for Debt Service $ 17,492,337 Maximum Annual Debt Service ("MADS") on debt secured by a lien on 3,124,013 Non-Ad Valorem Revenues Coverage Ratio 5.60 General Fund Revenues and Expenses REVENUES Taxes $ 36,576,755 Licenses and Permits 6,145,928 Intergovernmental 6,250,731 Charges for Services 3,398,436 Fines and forfeitures 575,956 Income on investments 345,921 Miscellaneous 844,329 TOTAL REVENUES $ 54,138,056 EXPENDITURES Current: General Government $ 5,349,782 Public Safety 41,952,658 Transportation 7,538,539 Economic Environment 1,331,143 Culture and Recreation 3,597,862 Capital Outlay 1,748,750 Debt service - Total expenditures $ 61,518,734 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES $ (7,380,678) OTHER FINANCING SOURCES (USES) Transfers in $ 16,032,427 Transfers out (4,360,819) Debt issuance 1,004,865 Total other financing sources (uses) $ 12,676,473 BEGINNING FUND BALANCE $ 10,806,284 ENDING FUND BALANCE $ 16,102,079 Reserved Portion $ 1,546,383 Unreserved Portion $ 14,555,696

LIABILITIES OF THE CITY For n/a-the Florida Retirement System has not yet provided the information necessary to complete Liabilities of the City section due to the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. Once available, information will be entered and re-submitted again. Insurance Considerations Affecting the City Fiscal Year Ending Beg Balance Changes in Estimates Claims Paid Ending Balance 9,594,000 1,877,916 (2,445,916) 9,026,000 Schedule of Employer Contributions for the Florida Retirements System (000 Omitted in dollar amounts) State Non-State Employee Total Annual Required Percentage Fiscal Year Contributions Contributions Contributions Contributions Contribution Contributed n/a n/a n/a n/a n/a n/a FRS Trust Fund Investment in Classes Global Equities 58.1% Fixed Income 19.8% Real Estate 8.3% Private Equity 6.0% Strategic Investments 6.9% Cash Equivalents 0.8% 100% Schedule of Funding Progress for the Florida Retirement System (000 Omitted in dollar amounts) Actuarial Actuarial Accrued UAAL As % of Actuarial Value of Liability (AAL) Unfunded ML Funded Ratio Covered Payroll Covered Payroll Valuation Date Assets (a) Entry Age (b) (UAAL) (b-a) (a/b) (c) (b-a)/c 7/1/ n/a n/a n/a n/a n/a n/a Market Value of Assets (000 Omitted in dollar amounts) Actuarial Market Accrued Funded Ratio (%) Year Value of Liability (AAL) (a/b) Assets (a) Entry Age (b) 147,972,946 n/a n/a Summary of Accrued and Unfunded Actuarial Liabilities for the Florida Retirement System (000 Omitted in dollar amounts Actuarial Unfunded Annualized Unfunded Actuarial Accrued Valuation Funding Ratio Actuarial Payroll (Active Actuarial Valuation Date Liabilities Assets (Assets/Liabilities) Liability (UAL) Members) Liability/Payroll 7/1/ n/a n/a n/a n/a n/a n/a

Additional Information as of the Latest Actuarial Valuation Valuation Date July 1, Actuarial cost method Ultimate entry age normal Amortization method Level percent, closed Equivalent Single amortization period 30 years Asset valuation method 5-year Smoothing period Actuarial assumptions: Investment rate of return 7.65% Salary increases 3.25% Includes inflation at 2.60% Cost-of-Living Adjustments 3.00% The Funding Progress for the Police and Fire Plan Actuarial Market Actuarial Accrued UAAL As % of Actuarial Value of Value of Liability (AAL) Unfunded AAL Funded Ratio Covered Payroll Covered Payroll Valuation Date Assets Assets (a) Entry Age (b) (UAAL) (b-a) (a/b) (c) (b-a)/c 10/1/ 159,486,586 167,159,869 224,117,581 56,957,712 75% 15,577,863 366% The Annual Pension Cost "APC" contributed to the Police and Fire Plan Annual Pension Percentage Net Pension Year Cost Contributed Obligation 7,230,064 100% - City and State Contribution Amounts Employee State City Investment Year Contributions Contributions Contributions Income Total 1,601,259 919,409 6,310,655 (4,396,424) 4,434,899 The City's annual OPEB cost and the net OPEB obligation Annual required contribution (ARC) $ 312,971 Interest on the net OPEB obligation 203,304 Adjustment to the ARC $ (6,467) Total annual OPEB cost $ 509,808 Employer contributions $ (490,942) Interest on employer contributions - Increase in the net OPEB obligation $ 18,866 Net OPEB obligation-beginning of year $ 5,082,604 Net OPEB obligation-end of year $ 5,101,470 The City's Percentage of Annual OPEB Cost Contributed to the OPEB Plan, and the Net OPEB Obligation Percentage of Annual Net OPEB Year Annual OPEB Cost OPEB Cost Contributed Obligation $ 509,808 3.7% $ 5,101,470 The Funding Progress for OPEB UAAL As % of Actuarial Actuarial Actuarial Accrued Unfunded AAL Funded Ratio Covered Payroll Covered Payroll Valuation Date Value of Assets (a) Liability (AAL) (b) (UAAL) (b-a) (a/b) (c) (b-a)/c 10/1/14 - $ 5,680,000 $ 5,680,000 0.0% $ 44,344,000 13%

Direct Debt Principal Amount Principal Amount Issued Outstanding General Obligation Bonds $ 18,810,000 $ 16,030,000 Revenue Bonds Series 2011 A & B 35,620,000 29,485,000 Utility System 54,450,000 47,115,000 Total Revenue Bonds $ 90,070,000 $ 76,600,000 Loans: Cap Improvement Note Ser 2009 BB&T $ 29,942,000 $ 25,542,000 Cap Improvement Note Ser 2010 SunTrust 9,345,000 7,109,400 State Revolving Loans 25,813,361 21,005,711 Total Loans $ 65,100,361 $ 53,657,111 Total Debt $ 173,980,361 $ 146,287,111 Description of Any Indebtedness Payable in Whole or in Part from Series 2011A Pledged Funds, the Series 2011A Covenant Funds, and Series 2011B Pledged Funds Insert Required Information

Daytona Beach, FL, City of City of Daytona Beach, Florida Utility System Refunding and Improvement Revenue Bonds,, $54,450,000 Dated: September 20, 2012 System Operating Results and Debt Service Coverage Fiscal Year ended September 30, Operating Revenues Charges for Services 43,741,137 Other Operating Income 159,794 Total Operating Revenue 43,900,931 Non-Operating Revenue Investment Earnings 537,422 Gain (Loss) on Disposal of Capital (83,677) Total Non - Operating Revenues 453,745 Gross Revenues 44,354,676 Operating Expenses Personal Services 9,087,826 Supplies and Services 19,073,005 Total Operating Expenses 28,160,831 Net Revenues 16,193,845 Senior Lien Debt Service 5,973,868 Senior Lien Debt Service Coverage 2.7 Subordinate Debt Service Coverage 13.3 Aggregate Debt Service Coverage 2.4 Net available for Pay-As-You-Go Ca 9,453,455 Other Financing Sources: Transfers In - Transfers Out 6,634,730 Capital Contributions 1,661,727

Recent User Rate History Fiscal Year ended September 30, Rate Effective Date Rate Action Percentage Increase October 1, 2014 Increase Water and Sewer 3.30% Water and Sewer Rates - User Charges Fiscal Year ended September 30, Minimum Charges Single Family Resident Accounts Inside City Limits: Minimum Water 0-1,000 gallons $ 14.59 Minimum Sewer 0-900 gallons $ 12.11 Garbage $ 10.05 Landfill $ 7.42 Recycling $ 2.62 Storm water $ 8.96 Public Service Tax $ 1.46 Total $ 57.21

Water Rates Fiscal Year ended September 30, 125% of Base Rate 133% of Base Rate Water Service Charge Base Rate Zone 1 Outside Zone 2 Outside By Meter Size Zone 0 Inside City City Mainland City Peninsula 5/8" x 3/4-2" $ 9.78 $ 12.23 $ 13.01 3" - 10" $ 13.05 $ 16.31 $ 17.36 Water Consumption: 0-1,000 gal (minimum) $ 4.80 $ 6.00 $ 6.38 1,000 - up $ 4.80 $ 6.00 $ 6.38 Multi-Family Rate $ 4.80 $ 6.00 $ 6.38 Sewer Treatment Rates Fiscal Year ended September 30, Base Rate 125% Base Rate 133% Base Rate Sewer Service Charge Zone 0 Zone 1 Zone 2 Base $ 3.84 $ 4.80 $ 5.11 Sewer Usage: 0-900 gal (minimum) $ 8.26 $ 10.33 $ 10.99 900 - up $ 8.26 $ 10.33 $ 10.99 Multi-Family Rate $ 8.26 $ 10.33 $ 10.99 Sewer Only Flat Rate $ 54.92

Water Tap Fees Fiscal Year ended September 30, Zone 1 Zone 1 125% Zone 2 133% Tap Size Inside City Outside City Outside City 3/4" $ 1,300 $ 1,625 $ 1,729 1" $ 1,705 $ 2,131 $ 2,268 1-1/2" $ 2,253 $ 2,816 $ 2,996 2" $ 2,681 $ 3,351 $ 3,566 4" $ 9,220 $ 11,525 $ 12,263 6" $ 13,832 $ 17,290 $ 18,397 6" Dual $ 16,514 $ 20,643 $ 21,964 8" $ 16,405 $ 20,506 $ 21,819 8" Dual $ 19,086 $ 23,858 $ 25,384 10" $ 18,336 $ 22,920 $ 24,387 10" Dual $ 21,014 $ 26,268 $ 27,949 Description of Any Material Litigation Fiscal Year ended September 30, Insert Required Information Any Other Financial Information or Operating Date Which the Issuer Determines would be Material to a Holder or Prospective Holders of the Certificates Fiscal Year ended September 30, Insert Required Information