CITY OF ST. AUGUSTINE, FLORIDA

CITY OF ST. AUGUSTINE, FLORIDA Water and Sewer Revenue Refunding Bonds, Series 2012, $15,930,000, Dated: December 11, 2012 Water and Sewer Revenue Refunding Bonds, Series 2005, $21,435,000, Dated: July 7, 2005 Water and Sewer Revenue Bonds, Series 2003, $9,363,853.55, Dated: November 25, 2003 Historical Results of Operations and Bond Service Coverage Fiscal Years Ended 2008 2009 2010 2011 2012 Revenues' Cost of Operation & Maintenance See page 129 Net Revenue Bond Service Requirement Total x x x x x Ten Largest Water Customers Customer Usage for Fiscal Year Ended (in gallons) See page 137 1 2 3 4 5 6 7 8 9 10 Historical Water Customers and Sales Water Sales Fiscal Year Water Customers (Thousands of Gallons) Ended September 30, Inside City Outside City Total Inside City Outside City Total 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 6,243 2,264 8,507 758,439 295,888 1,054,327 See page 138-139 6,259 2,535 8,794 823,610 222,448 1,046,058 6,307 2,710 9,017 662,489 292,573 955,062 6,528 3,169 9,697 577,828 263,281 841,109 6,642 3,594 10,236 529,264 273,470 802,734 6,741 3,858 10,599 572,648 385,139 957,787 7,000 4,058 11,058 596,147 386,930 983,077 7,047 4,183 11,230 513,033 378,125 891,158 6,988 4,419 11,407 521,691 344,701 866,392 6,793 4,440 11,233 540,729 374,552 915,281

Water Treatment Plants Historical Daily Flows Annual Average Maximum Monthly See page 140 Fiscal Year Daily Flow Average Daily Flow Ended (Millions of Gallons (Millions of Gallons September 30, Per Day) Per Day) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 3.023 3.813 3.264 3.767 3.923 4.468 2.529 3.333 3.000 3.400 3.560 4.085 3.651 4.601 3.388 4.119 3.356 3.769 3.244 3.692 Historical Sewer Customers Fiscal Year Ended September 30, Inside City Outside City Total See page 141 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 5,904 894 6,798 5,824 907 6,731 5,871 1,113 6,984 5,901 1,336 7,237 6,151 1,336 7,487 6,283 1,586 7,869 6,651 1,859 8,510 6,674 1,998 8,672 6,697 2,134 8,831 6,704 2,210 8,914 6,374 2,332 8,706 Wastewater Treatment Plants Historical Daily Flows Annual Average Maximum Monthly Fiscal Year Daily Flow Average Daily Flow Ended (Millions of Gallons (Millions of Gallons September 30, Per Day) Per Day) See page 140 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 4.519 6.639 4.713 6.580 4.679 7.367 3.788 5.237 3.026 4.100 3.624 6.016 2.995 10.885 3.697 9.639 3.033 9.030 2.674 3.581

Historical and Present Water and Sewer Rates Water and Sewer Utilities Historical Rate Structures Effective October 1, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Water Sewer Minimum Charge Additional Additional Flow Rate Minimum Charge Minimum Charge Service Area Gal./ Month Charge per 1,000 Gal. Charge per 1,000 Gal. Inside City 3,000 13.54 3.72 18.83 4.75 Outside City 3,000 16.93 4.65 23.54 5.94 Inside City 3,000 13.54 3.72 18.83 4.75 Outside City 3,000 16.93 4.65 23.54 5.94 Inside City 3,000 13.54 3.72 18.83 4.75 Outside City 3,000 16.93 4.65 23.54 5.94 Inside City 3,000 13.93 3.83 19.24 4.85 Outside City 3,000 17.41 4.79 24.05 6.06 Inside City 3,000 13.93 3.83 19.24 4.85 Outside City 3,000 17.41 4.79 24.05 6.06 Inside City 3,000 14.17 3.90 19.58 4.93 Outside City 3,000 17.71 4.87 24.47 6.17 Inside City 3,000 14.45 3.98 19.97 5.03 Outside City 3,000 18.06 4.98 24.96 6.29 Inside City 3,000 14.83 4.08 20.49 5.16 Outside City 3,000 18.53 5.11 25.61 6.45 Inside City 3,000 15.42 4.24 21.32 5.37 Outside City 3,000 19.26 5.31 26.64 6.71 Inside City 3,000 15.89 4.37 21.96 5.53 Outside City 3,000 19.84 5.47 27.44 6.91 Inside City 3,000 16.19 4.47 22.35 5.66 Outside City 3,000 20.20 5.59 27.92 7.07 Inside City Outside City Inside City Outside City See page 141

Net Debt Statement Computation of Direct Debt Direct Debt/ Overlapping Debt General Non-Self Self Certificate of Obligation Supporting Supporting Participation Debt Revenue Bond Revenue Bonds See pages 130-132 Total Direct Debt St. Johns County, Florida Computation of Overlapping Debt General Non-Self Self Certification of Obligation Supporting Supporting Participation Debt Revenue Bond Revenue Bonds Total Overlapping Debt Total Direct/ Overlapping Debt

Direct and Overlapping General Obligation Debt Per Capita As a Percent of Taxable Assessed Valuation As a Percent of Total Just Valuation Direct and Overlapping General Obligation and Non-Self Supporting Revenue Debt and Long-Term Notes Payable Per Capita As a Percent of Taxable Assessed Valuation As a Percent of Total Assessed Valuation Computation of Direct and Overlapping Debt DEBT RATIOS

Capital Improvement Refunding Revenue Bonds, Series 2011B, $10,440,000, Dated: December 28, 2011 Capital Improvement Revenue Bonds, Series 2011, $16,215,000, Dated: April 5, 2011 Capital Improvement and Refunding Bonds, Series 2004, $22,155,000, Dated: September 15, 2004 (Insert Required Information) GENERAL INFORMATION REGARDING NON-AD VALOREM REVENUES Series 2011B, 2011 Legally Available Non-Ad Valorem Revenues Series 2011B, 2011, 2004 Fiscal Years Ended September 30 2008 2009 2010 2011 2012 Revenues: Franchise Fees $ 1,231,158 $ 1,464,650 $ 1,415,038 $ 1,534,080 $ 1,447,746 Public Service Taxes 707,722 695,554 961,872 1,042,589 1,014,901 Communication Service Tax 894,002 954,119 1,046,752 1,133,430 1,108,214 Six Cent Local Option Fuel Tax 611,697 504,738 535,223 534,021 516,976 Occupational Licenses 145,754 137,940 142,546 138,621 137,713 Building and Sign Permits 265,540 134,058 123,482 150,729 241,331 Other Permits and Licenses 101,735 24,457 22,195 50,159 45,264 State Revenue Sharing 1,689,308 1,569,489 1,525,328 1,540,097 1,582,415 County Revenue Sharing 40,054 39,038 38,428 38,777 22,593 General Government Service Fees 51,341 41,013 36,417 49,034 55,978 Parking Fees 748,445 1,213,660 1,271,345 1,391,528 1,765,464 County Court Fines 67,437 45,413 56,891 56,883 54,615 Violations of Local Ordinance 27,504 32,418 52,618 47,971 17,370 Parking Fines and Forfeitures 276,993 216,593 171,365 188,806 184,680 Interest Earnings 335,543 98,034 32,093 24,326 30,337 Rental Income 803,217 838,267 756,834 1,151,374 1,263,720 Stormwater Revenues 847,958 761,078 755,087 1,120,813 2,592,743 Municipal Marina Revenues 2,728,022 2,010,009 2,269,165 2,554,847 2,886,173 Other Miscellaneous Revenue 365,135 361,013 575,741 1,092,901 346,929 All Non-Ad Valorem Revenues $ 11,938,565 $ 11,141,541 $ 11,788,419 $ 13,840,986 $ 15,315,162 Not Legally Available to Pay Debt Service on the Bonds 4,552,812 3,636,838 4,135,216 4,941,013 Legally Available to Pay Debt Service on the Bonds $ 7,385,753 $ 7,504,703 $ 7,653,204 $ 8,899,973 $ 15,315,162 Administrative Transfers $ 2,675,852 $ 2,306,131 $ 1,983,565 $ 1,798,736 $ 1,979,089 Operating Transfers 938,712 827,627 851,118 683,139 849,687 Other Transfers 218,878 79,003 5,397 161,244 918,370 Total Legally Available to Pay Debt Service on the Bonds $ 11,219,195 $ 10,717,464 $ 10,493,284 $ 11,543,092 $ 19,062,308 Debt Service Schedule For Non-Ad Valorem Revenue Obligations Series 2011B, 2011, 2004 Description Source of Security Principal Amount Maximum Annual Outstanding Final Maturity Debt Service see Note 6 beginning on page 82

CERTAIN FINANCIAL MATTERS Series 2011B, 2011 (Insert Required Information) General Fund Revenues and Expenses 2008 2009 2010 2011 2012 See page 50. REVENUES Taxes $ 13,332,620 $ 13,517,204 $ 13,263,435 $ 11,950,833 $ 11,058,607 Intergovernmental 2,245,402 2,333,177 2,591,499 1,578,874 1,605,008 Licenses, Permits and Fees 3,214,860 3,664,195 3,982,266 2,746,002 3,218,885 Fines and Forfeitures 371,934 294,423 280,874 293,660 256,665 Administrative Service Charges 2,675,852 2,306,131 1,983,565 1,798,737 1,979,089 Investment Income 335,543 98,035 32,093 24,326 30,337 Proceeds from Sale of Land - - - - - Miscellaneous 1,543,235 1,726,757 1,676,703 4,995,917 4,464,133 TOTAL REVENUES $ 23,719,446 $ 23,939,922 $ 23,810,435 $ 23,388,349 $ 22,612,724 EXPENDITURES Current: General Government 7,025,791 7,144,545 7,169,422 6,643,736 6,863,118 Public Safety 7,823,977 8,157,878 8,143,485 8,199,851 8,160,380 Physical Environment 3,489,882 3,354,800 3,346,170 3,833,649 3,677,011 Transportation 1,152,404 1,102,977 1,112,354 213,003 213,598 Culture/ Recreation 505,720 525,588 517,985 520,305 446,285 Capital Outlay 935,071 1,063,839 1,689,786 1,446,082 1,259,773 Debt Service 158,142 Total expenditures $ 20,932,845 $ 21,349,627 $ 21,979,202 $ 20,856,626 $ 20,778,307 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 2,786,601 2,590,295 1,831,233 2,531,723 1,834,417 OTHER FINANCING SOURCES (USES) Transfers in 1,158,154 906,837 856,571 683,194 2,096,057 Transfers out (2,463,716) (5,216,409) (3,540,876) (4,428,623) (4,308,960) Issuance of Refunding bonds 16,215,000 6,971,120 Bonds refunded (6,720,721) Premium paid (67,206) Discount on issuance (685,827) (74,404) BEGINNING FUND BALANCE 12,698,432 14,179,471 12,460,194 11,607,122 25,922,589 ENDING FUND BALANCE $ 14,179,471 $ 12,460,194 $ 11,607,122 $ 25,922,589 $ 25,652,892 Reserved Portion $ 1,208,861 $ 1,060,567 $ 902,849 $ 2,151,810 $ 18,459,303 Unreserved Portion $ 12,970,610 $ 11,399,627 $ 10,704,273 $ 23,770,779 $ 7,193,589 LIABILITIES OF THE CITY Series 2011B, 2011 (Insert Required Information)

Direct Debt Revenue Bonds Principal Amount Principal Outstanding after Amount Issued October 1, 2012 See page 130 Total Direct Debt PENSION AND OTHER POST EMPLOYMENT BENEFIT PLANS Series 2011B, 2011 (Insert Required Information) General Employees' Retirement System Funding Policy, Contributions, Status and Progress Funded Status Information for the Plan (in thousands) Actuarial Actuarial Accrued UAAL as a % Actuarial Market Value Value of Liability (AAL) Unfunded AAL Funded Covered of Covered Valuation Date of Assets Assets Entry Age (UAAL) Ratio Payroll Payroll 9/30/2006 $ 20,279 $ 20,135 $ 22,726 $ 2,591 88.60% $ 8,004 32.37% 9/30/2007 23,074 22,172 25,909 3,737 85.58 9,000 41.52 9/30/2008 19,443 23,258 27,153 3,895 85.66 9,357 41.63 9/30/2009 19,858 23,817 29,574 5,757 80.53 9,501 60.59 9/30/2010 22,094 24,932 31,861 6,929 78.25 9,118 75.99 9/30/2011 22,235 25,072 33,935 8,863 73.88 8,288 106.94 9/30/2012 24,559 24,961 35,346 10,385 70.62 8,136 127.64 Actuarial Assumptions and Actuarial Cost Method Fiscal Year Annual Pension Percentage of Net Pension Ended Cost (APC) APC Contributed Asset 9/30/2009 $ 1,157,224 103% $ (593,598) 9/30/2010 1,250,914 96 (549,216) 9/30/2011 1,375,766 85 (349,598) 9/30/2012 1,503,039 97 (307,755) The City's Annual Pension Cost and Net Pension Obligation (the "NPO") to the General System For Fiscal Year Ended Fiscal Year Ended Annual Annual Required City Contribution (ARC) $ 1,481,755 Interest on NPO (27,094) Adjustment to ARC 48,378 Annual Pension Cost 1,503,039 Contributions Made 1,461,196 Decrease in NPO 41,843 NPO Beginning of Year (349,598) NPO End of Year $ (307,755)

Police Officers' Retirement System Funding Policy, Contributions, Status and Progress Funded Status Information for the Plan (in thousands) Actuarial Actuarial Accrued UAAL as a % Actuarial Market Value Value of Liability (AAL) Unfunded AAL Funded Covered of Covered Valuation Date of Assets Assets Entry Age (UAAL) Ratio Payroll Payroll 9/30/2006 $ 11,447 $ 11,383 $ 11,846 $ 463 96.09% $ 2,287 20.23% 9/30/2007 12,991 12,424 12,544 120 99.04 2,576 4.66 9/30/2008 11,195 12,951 13,473 522 96.13 2,495 20.92 9/30/2009 10,782 12,759 13,428 669 95.01 2,780 24.08 9/30/2010 11,606 13,078 13,980 902 93.55 2,566 35.15 9/30/2011 12,012 13,299 13,823 524 96.21 2,280 22.98 9/30/2012 13,129 13,243 14,280 1,037 92.74 2,238 46.34 Actuarial Assumptions and Actuarial Cost Method Fiscal Year Annual Pension Percentage of Net Pension Ended Cost (APC) APC Contributed (Asset) 9/30/2009 $ 407,169 85% $ (103,824) 9/30/2010 394,821 83 (35,736) 9/30/2011 506,651 85 39,935 9/30/2012 607,066 90 102,556 The City's Annual Pension Cost and NPO to the Police System For Fiscal Year Ended Fiscal Year Ended Annual Annual Required City Contribution (ARC) $ 608,954 Interest on NPO 3,095 Adjustment to ARC (4,983) Annual Pension Cost 607,066 Contributions Made (544,445) Decrease in NPO 62,621 NPO Beginning of Year 39,935 NPO End of Year $ 102,556 Firefighters' Retirement System Funding Policy, Contributions, Status and Progress Funded Status Information for the Plan (in thousands) Actuarial Actuarial Accrued UAAL as a % Actuarial Market Value Value of Liability (AAL) Unfunded AAL Funded Covered of Covered Valuation Date of Assets Assets Entry Age (UAAL) Ratio Payroll Payroll 9/30/2006 $ 7,776 $ 7,428 $ 8,771 $ 1,343 84.69% $ 930 144.46% 9/30/2007 8,763 8,089 9,377 1,288 86.27 1,310 98.30 9/30/2008 7,458 8,222 8,031 (191) 102.38 1,413 (13.50) 9/30/2009 7,443 8,301 8,192 (109) 101.33 1,456 (7.50) 9/30/2010 7,991 8,390 8,207 (183) 102.23 1,234 (14.83) 9/30/2011 7,857 8,139 7,909 (230) 102.91 1,349 (17.05) 9/30/2012 9,387 8,583 8,399 (184) 102.19 1,512 (12.17)

Annual Pension Cost Fiscal Year Annual Pension Percentage of Net Pension Ended Cost (APC) APC Contributed (Asset) 9/30/2009 $ 138,960 110% $ (380,252) 9/30/2010 318,719 97 (370,880) 9/30/2011 284,315 91 (344,805) 9/30/2012 288,203 93 (324,885) Fiscal Year Ended Annual Annual Required City Contribution (ARC) $ 268,282 Interest on NPO (25,860) Adjustment to ARC 45,781 Annual Pension Cost 288,203 Contributions Made (268,283) Increase in NPO 19,920 NPO Beginning of Year (344,805) NPO End of Year $ (324,885) Other Post-Employment Benefit Plan Significant actuarial assumptions and methods used to estimate OPEB liability Valuation Date: Actuarial cost method: Amortization method: Amortization period: Assumed rate of return on investments: Projected Unit Credit Cost Method Level Dollar Payment 30-Year Period 4.5% per annum Assumed healthcare cost trend rates: Fiscal Year Ending Percent Increase 2010 9.00% 2011 8.00% 2012 7.00% 2013 6.00% 2014-Thereafter 5.00% Annual OPEB Cost and Net OPEB Obligation Annual Required City Contribution (ARC) $ 238,486 Interest on Plan Obligation 14,812 Adjustment to ARC (20,208) Annual Pension Retiree Cost 233,090 Contributions Made (110,995) Increase in Plan Obligation 122,095 Plan Obligation Beginning of Year 329,167 Plan Obligation End of Year $ 451,262 The City's percentage of annual OPEB cost contributed to the OPEB Plan, and the net OPEB obligation for the fiscal year ended Percentage of Fiscal Year Annual City City Retiree Cost Net Obligation Ending Retiree Cost Contributions Contributed (Asset) 9/30/2011 $ 224,288 $ 110,995 60% $ 329,167 9/30/2012 233,090 134,757 48% 451,262

Issuer's Cost of Essential Services Series 2004 (Insert Required Information) Issuer's Government Fund Revenues Series 2004 Computation of the City's Governmental Fund Revenues for the last two Fiscal Years: Fiscal Year Ended September 30, 2011: Taxes See page 44 Intergovernmental Licenses, Permits and Fees Fines and Forfeitures Administrative Service Charges Investment Income Miscellaneous Total Governmental Fund Revenues Fiscal Year Ended : Ad Valorem Taxes Sales, Use and Gas Taxes Utility Service Taxes Grants Intergovernmental Franchise Fees Licenses, Permits and Other Fees Fines and Forfeitures Administrative Overhead Charges Investment Income Miscellaneous Total Governmental Fund Revenues Computation of both financial covenants relating to the issuance of additional debt payable solely from Pledgable Non-Ad Valorem Revenues Series 2004 Average Pledgable Non-Ad Valorem Revenues for Last Two Fiscal Years Maximum Annual Debt Service on Non-Ad Valorem Revenue Debt Ratio times

Net Debt Statement Series 2004 Computation of Direct Debt General Non-Self Self Certificate of Obligation Supporting Supporting Participation Debt Revenue Bond Revenue Bonds See page 130 Total Direct Debt St. Johns County, Florida Computation of Overlapping Debt General Non-Self Self Certification of Obligation Supporting Supporting Participation Debt Revenue Bond Revenue Bonds Total Overlapping Debt Total Direct/ Overlapping Debt

Direct and Overlapping General Obligation Debt Per Capita Computation of Direct and Overlapping Debt DEBT RATIOS As a Percent of Taxable Assessed Valuation As a Percent of Total Just Valuation See page 132 Direct and Overlapping General Obligation and Non-Self Supporting Revenue Debt and Long-Term Notes Payable Per Capita As a Percent of Taxable Assessed Valuation As a Percent of Total Assessed Valuation