CONTINUING DISCLOSURE SECTION

CITY OF FAYETTEVILLE, GEORGIA

WATER SUPPLY BY SOURCE LAST TEN CALENDAR YEARS (IN THOUSAND GALLONS)

Fayette County System Well/Water Plant

Note:

CITY OF FAYETTEVILLE, GEORGIA

WASTEWATER TREATMENT PLANT AVERAGE FLOW (IN MILLION GALLONS PER DAY)

Last Ten Calendar Years

The City's sewerage systemconsists of a modernsecondarywastewatertreatment facility, twenty-four(24) pumpingstationsandapproximatelyonehundred twenty-two (122) miles ofcollectorandtransmission lines. The Whitewater Creek wastewater treatment plant was expanded and upgraded in 1992 to 3.75 MGC and in 2008 to 5.0 MGC through 2003 Water and Sewer Bonds and a GEFA Loan.

SOURCE: City of Fayetteville, Georgia records.

CITY OF FAYETTEVILLE, GEORGIA

WATER AND SEWER CUSTOMERS LAST TEN CALENDAR YEARS

Water And Sewer User Fees And Charges

In accordance with the requirements of Rule 15c-2-12 promulgated by the Securities and Exchange Commission (“SEC”), the City has covenanted to disclose the following annual financial information.

User fees are set by the Mayor and Council to recover independently the cost of providing water and sewerage service, to pay principal and interest on debt obligations of the System and to general reserves for emergencies and expansion of the System. The Mayor and Council last adopted a schedule for rates, tolls, assessments and fees charged by the System in August 2009. The City has covenanted in the Ordinance to revise and adjust such schedules of rates, fees and charges for water sewerage services and facilities to the extent necessary to produce funds at least equal to the amount necessary to: (1) operate and maintain the System on a sound businesslike basis but before provision for depreciation or am ortization; (2) produce an amount equal to 115% of the Debt Service Requirement for the then current Sinking Fund Year; (3) create and maintain in the Debt Service Reserve Fund an amount equal to the Debt Service Reserve Requirement; and (4) make the payments then required to be made into the Renewal and Extension Fund.

The minimum water and sewer bill is based on the first 2,000 gallons of water usage. In addition to the charges for water and sewerage usage, the City charges a connection fee for new water and sewer services based upon the size of water meter as indicated in the following table:

Based on the current rate structure and average residential water of usage of 6,500 gallons per month, the average water bill for a residential customer is approximately $30.97 per month. The average residential sewer bill is approximately $33.03 per month.