$5,600,000 THE CITY OF DALTON BUILDING AUTHORITY (GEORGIA)

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1 NEW ISSUE BOOK-ENTRY ONLY RATINGS: Moody s Aa3 (Insured) Moody s A1 (Underlying) See MISCELLANEOUS, -Ratings herein. In the opinion of Bond Counsel and assuming compliance with the tax covenants described herein, under existing laws, regulations and judicial decisions, interest on the Series 2010 Bonds is included in gross income for federal income tax purposes. Bond Counsel is also of the opinion that interest on the Series 2010 Bonds is exempt from present State of Georgia income taxation. For a discussion of certain federal and State of Georgia income tax matters applicable to the Series 2010 Bonds, see, TAX MATTERS herein. $5,600,000 THE CITY OF DALTON BUILDING AUTHORITY (GEORGIA) Revenue Bonds (Taxable Recovery Zone Economic Development Bonds Direct Payment), Series 2010 Dated: Date of Issuance Due: July 1, in the years shown on the inside cover page THE CITY OF DALTON BUILDING AUTHORITY REVENUE BONDS (TAXABLE RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS DIRECT PAYMENT), SERIES 2010 (the Series 2010 Bonds ) will be issued in registered form in the name of Cede and Co., as the nominee for The Depository Trust Company ( DTC ), New York, New York. Individual purchases of the Series 2010 Bonds must be made in book-entry form only in authorized denominations of $5,000 or any integral multiple thereof. Individual purchasers ( Beneficial Owners ) of the Series 2010 Bonds will not receive physical delivery of the Series 2010 Bonds. Transfers of the Series 2010 Bonds will be effected through a book-entry system as described herein. Interest on the Series 2010 Bonds will be payable on January 1 and July 1 of each year (each an Interest Payment Date ), beginning on July 1, So long as DTC or its nominees are the registered owner of the Series 2010 Bonds, disbursements of payments of principal of and interest on the Series 2010 Bonds to DTC is the responsibility of The Bank of New York Mellon Trust Company, N.A., as Paying Agent; disbursements of such payments to DTC Participants are the responsibility of DTC; and disbursements of such payments to the Beneficial Owners are the responsibility of Direct and Indirect Participants as more fully described herein. See THE SERIES 2010 BONDS, - Book-Entry Only System of Delivery of the Series 2010 Bonds herein. Certain of the Series 2010 Bonds are subject to optional redemption, scheduled mandatory redemption and extraordinary optional redemption prior to maturity. See THE SERIES 2010 BONDS, -Redemption Features herein. The scheduled payment of the principal of and premium, if any, and interest on the Series 2010 Bonds when due will be guaranteed under an insurance policy to be issued by Assured Guaranty Corp. ( Assured Guaranty ) concurrently with the delivery of the Series 2010 Bonds. See BOND INSURANCE and Appendix E: SPECIMEN INSURANCE POLICY herein. The City of Dalton Building Authority (the Authority ) is issuing the Series 2010 Bonds to provide funds to (i) finance a new community center and renovations and improvements to recreation facilities for use by the citizens of the City of Dalton, Georgia (the City ), and (iii) the costs of issuance of the Series 2010 Bonds. The Series 2010 Bonds are special obligations of the Authority secured by and payable from certain payments by the City to the Authority under a contract by and between the City and the Authority, dated as of the date of issuance of the Series 2010 Bonds (the Contract ). THE PROMISE OF THE CITY TO MAKE SUCH RENTAL PAYMENTS PURSUANT TO THE CONTRACT CONSTITUTES A GENERAL OBLIGATION FOR WHICH ITS FULL FAITH, CREDIT, AND TAXING POWER ARE PLEDGED, ALL AS MORE SPECIFICALLY DESCRIBED WITHIN. THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE SERIES 2010 BONDS OR THE SECURITY THEREFOR. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. The delivery of this Official Statement will not create any implication that there has been no change in the affairs of the City since the date hereof, or that the information contained herein is correct at any time subsequent to that date. The Series 2010 Bonds are offered when, as and if issued by the Authority, subject to the approval of legality by Gray & Pannell LLP, Savannah, Georgia, Bond Counsel. Certain legal matters relating to the Series 2010 Bonds will be passed on by Minor, Bell & Neal, Dalton, Georgia, counsel for the Authority and for the City and for the Underwriter by its counsel, Gray & Pannell LLP, Savannah, Georgia. Delivery of the Series 2010 Bonds in definitive form is expected to be made through The Depository Trust Company, in New York, New York, on or about April 29, Official Statement dated April 8, 2010.

2 MATURITY AMOUNTS, INTEREST RATES, AND YIELD Maturity Principal Amount Interest Rate Yield CUSIP 2011 $ 225, % 1.380% GV , GW , GX , GY , GZ , HA , HB , HC , HD , HE1 $560, % Term Bonds due July 1, 2022; Yield 5.500%; CUSIP HF8 $900, % Term Bonds due July 1, 2025; Yield 5.800%; CUSIP HG6 $1,715, % Term Bonds due July 1, 2030; Yield 6.250%; CUSIP235546HH4

3 THE CITY OF DALTON, GEORGIA Mayor & City Council David Pennington, Mayor Denise Wood J. Richard Lowrey George Sadosuk Officers J. Tyson Ross, Administrator Cindy Jackson, CFO 300 West Waugh Street Dalton, Georgia (706) THE CITY OF DALTON BUILDING AUTHORITY Members of the Authority Frank Robertson, Chairman Lane Lewis, Vice Chairman Scott Sellers David Pennington Cindy Jackson, Secretary Counsel to the City and Authority Minor, Bell & Neal Dalton, Georgia Bond Counsel & Underwriter s Counsel Gray & Pannell LLP Savannah, Georgia Underwriter Merchant Capital LLC Atlanta, Georgia

4 TABLE OF CONTENTS INTRODUCTION... 1 The Authority... 1 The City... 1 Purpose of the Series 2010 Bonds... 1 Security and Sources of Payment for the Series 2010 Bonds... 1 Description of the Series 2010 Bonds... 2 Additional Bonds... 2 Tax Status... 2 Bond Registrar and Paying Agent... 2 Professionals Involved in the Offering... 2 Terms of the Offering... 2 Continuing Disclosure... 3 Additional Information... 3 THE SERIES 2010 BONDS... 4 Description... 4 Redemption Features... 4 Book-Entry Only System of Delivery of the Series 2010 Bonds... 5 Authority for Issuance of the Series 2010 Bonds... 7 Validation... 7 The Projects... 7 Investment of Moneys... 7 Estimated Sources and Uses of Funds... 8 Security and Sources of Payment for the Bonds... 8 Additional Bonds... 8 BOND INSURANCE... 9 Bond Insurance Policy... 9 Assured Guaranty Corp THE AUTHORITY The Authority Principal Officials Revenue Bonds of the Authority DALTON, GEORGIA Introduction Government Format and Principal Officials Employee Relations Governmental Agencies Government Services and Facilities Population Information Per Capita Personal Income Median Home Values Taxable Sales Activity Bank Deposits Commercial and Residential Construction Data Industry and Employment Commuting Patterns DEBT STRUCTURE OF DALTON Categories of Indebtedness Debt Ratios Long and Short Term Indebtedness Debt Limitations Estimated Debt Service Schedule Page i

5 FINANCIAL INFORMATION CONCERNING DALTON, GEORGIA Five Year General Fund Operating History Accounting Policies Budgetary Process Employee Pension Plan Governmental Immunity and Insurance Coverage DALTON AD VALOREM TAXATION Introduction Property Subject to Taxation Tax Relief Initiatives Assessed Value Annual Tax Levy Property Tax Collections Tax Digest Millage Rates Property Tax Levies and Collections Principal Taxpayers LEGAL MATTERS Litigation Legal Proceedings TAX MATTERS Taxable Bonds MISCELLANEOUS Ratings Underwriting Continuing Disclosure Independent Auditors; Financial Statements Miscellaneous Certification Page Appendix A: Appendix B: Appendix C: Appendix D: Appendix E: AUDITED FINANCIAL STATEMENTS OF DALTON, GEORGIA FOR THE FISCAL YEAR ENDED DECEMBER 31, 2008 FORM OF THE RESOLUTION AND CONTRACT FORM OF THE CONTINUING DISCLOSURE CERTIFICATE PROPOSED FORM OF LEGAL OPINION OF BOND COUNSEL SPECIMEN INSURANCE POLICY No dealer, broker, salesman or other person has been authorized by the Authority, the City, by Merchant Capital, LLC, Atlanta, Georgia (the Underwriter ), or any other person to give any information or to make any representations other than those contained in this Official Statement, and, if given or made, such other information or representation must not be relied upon as having been authorized by the Authority, the City, any underwriter, or any other person. Except where otherwise indicated, all information contained in this Official Statement has been provided by the City. Sources other than the City are believed to be reliable, but are not guaranteed as to accuracy or completeness by the City. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall create, under any circumstances, any implication that there has been no change in any of the information set forth herein since the date hereof or the earlier dates set forth herein as of which certain information contained herein is given. The Series 2010 Bonds have not been registered with the Securities and Exchange Commission by reason of the provisions of Section 3(a)(2) of the Securities Act of 1933, as amended. The Resolution (as defined herein) has not been qualified under the Trust Indenture Act of 1939, in reliance on exemptions contained in such Act. Assured Guaranty makes no representation regarding the Series 2010 Bonds or the advisability of investing in the Series 2010 Bonds. In addition, Assured Guaranty has not independently verified, makes no ii

6 representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding Assured Guaranty supplied by Assured Guaranty and presented under the heading BOND INSURANCE and Appendix E: SPECIMEN INSURANCE POLICY. iii

7 OFFICIAL STATEMENT relating to the $5,600,000 THE CITY OF DALTON BUILDING AUTHORITY Revenue Bonds (Taxable Recovery Zone Economic Development Bonds Direct Payment), Series 2010 INTRODUCTION This Official Statement (the Official Statement ) of The City of Dalton Building Authority (the Authority ), which includes the cover page and the Appendices hereto, sets forth information concerning the Authority, the City of Dalton, Georgia (the City ), and the proposed THE CITY OF DALTON BUILDING AUTHORITY REVENUE BONDS (TAXABLE RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS DIRECT PAYMENT), SERIES 2010 (the Series 2010 Bonds ). The information contained in this Official Statement does not purport to be complete or definitive. This Official Statement speaks only as of its date, and the information contained herein is subject to change. All references herein to, or summaries of, the Resolution and the Contract (as each are hereinafter defined) or other documents or official acts are qualified in their entirety by the exact terms of such documents or official acts, copies of which are available from the City. All references herein to, or summaries of, the Series 2010 Bonds are qualified in their entirety by the definitive form thereof and the provisions with respect thereto included in the Resolution. All undefined, capitalized terms used herein will have the meaning ascribed to such terms in the Resolution unless the context requires otherwise. The Series 2010 Bonds will be issued as taxable Recovery Zone Economic Development Bonds pursuant to the American Recovery and Reinvestment Act of 2009 (the Recovery Act ). The credits with respect to the Series 2010 Bonds will be payable to the City and not available as tax credits to the Beneficial Owners of the Series 2010 Bonds, as discussed in TAX MATTERS herein. The Authority The City of Dalton Building Authority, the issuer of the Series 2010 Bonds, is a body corporate and politic created and existing under the Constitution and laws of the State of Georgia. See THE AUTHORITY. The City The City of Dalton, Georgia (the City ), a political subdivision and municipal corporation of the State of Georgia (the State ), was originally incorporated in 1837 and had a population of approximately 27,912 according to the 2000 census. The estimated population for the City in 2008 was 33,648. Purpose of the Series 2010 Bonds The Series 2010 Bonds are being issued to provide funds to (i) a new community center and renovations and improvements to recreation facilities for use by the citizens of the City of Dalton, and (ii) pay the costs of issuance of the Series 2010 Bonds. For more detailed information, see THE SERIES 2010 BONDS, -Application of Bond Proceeds and -The Projects. Security and Sources of Payment for the Series 2010 Bonds The Series 2010 Bonds are limited obligations of the Authority. The principal of and interest on the Series 2010 Bonds will be payable solely from certain payments to be paid by the City to the Authority under the provisions of an intergovernmental contract, dated as the date of issuance and delivery of the Series 2010 Bonds (the Contract ), by and between the Authority and the City. The Series 2010 Bonds will not be deemed to constitute a debt or general obligation or pledge of the faith and credit of the State or any political subdivision thereof, including the Authority and the City, within the meaning of any constitutional or statutory debt limitation. The contract payments provided for under the Contract constitute general obligations of the City for which its full faith, credit, and taxing power are pledged. See THE SERIES 2010 BONDS, -Security and Sources of Payment for the Series 2010 Bonds and Appendix B: FORM OF THE RESOLUTION AND CONTRACT.

8 Description of the Series 2010 Bonds Redemption Provisions. Certain of the Series 2010 Bonds are subject to optional redemption, scheduled mandatory redemption and extraordinary optional redemption prior to their respective maturities. Denominations. Individual purchases of the Series 2010 Bonds may be made in book-entry form only in denominations of $5,000 or any higher integral multiple thereof. Registration and Transfer. The Series 2010 Bonds will be registered in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York ( DTC ). DTC will act as securities depository for the Series 2010 Bonds. Manner of Making Payment. Interest on the Series 2010 Bonds is payable on January 1 and July 1 in each year (each an Interest Payment Date ), commencing July 1, The Series 2010 Bonds bear interest at the rates per annum and mature on July 1 in the years and the principal amounts set forth on the inside cover page hereof. So long as the Book-Entry System is in effect, principal of and interest on the Series 2010 Bonds are payable by wire transfer by The Bank of New York Mellon Trust Company, N.A., as Paying Agent, to Cede & Co., as nominee for DTC which, in turn, will remit such amounts to DTC Participants (as defined herein) for subsequent disbursement to the Beneficial Owners (as defined herein). For more detailed information on the Series 2010 Bonds, see THE SERIES 2010 BONDS. Additional Bonds The Authority may issue additional bonds on a parity with the lien of the Series 2010 Bonds. The Series 2010 Bonds, and any additional bonds hereafter issued on a parity therewith are referred to collectively herein as the Bonds. See THE SERIES 2010 BONDS, -Additional Bonds and Appendix B: FORM OF THE RESOLUTION AND CONTRACT. Tax Status In the opinion of Gray & Pannell LLP, Bond Counsel, subject to the limitations and conditions described under TAX MATTERS, interest on the Series 2010 Bonds will be included in gross income for federal income tax purposes but interest thereon will be exempt from income taxation under the laws of the State of Georgia. See Appendix D for the proposed form of opinion of Gray & Pannell LLP, Bond Counsel to be delivered in connection with the issuance of the Series 2010 Bonds. For a more complete discussion of such opinions and certain other tax consequences of owning the Series 2010 Bonds, see TAX MATTERS and TAXABLE BONDS herein. Bond Registrar and Paying Agent The Bank of New York Mellon Trust Company, N.A., Atlanta, Georgia, will act as Bond Registrar and Paying Agent for the Series 2010 Bonds. Professionals Involved in the Offering Certain legal matters pertaining to the Authority and the authorization and issuance of the Series 2010 Bonds are subject to the approving legal opinion of Gray & Pannell LLP, Savannah, Georgia, as Bond Counsel; see Appendix D for the proposed form of Bond Counsel s opinion to be delivered in connection with the issuance of the Series 2010 Bonds. Certain other legal matters will be passed upon for the Authority and the City by its counsel, Minor, Bell & Neal, Dalton, Georgia, and by Gray & Pannell LLP, Savannah, Georgia, as Underwriter s Counsel. The general purpose financial statements of the City as of December 31, 2008, and for the fiscal year then ended, attached hereto as Appendix A, have been audited by Estes & Williams, Dalton, Georgia, independent certified public accountants, to the extent and for the period indicated in their report thereon which appears in Appendix A hereto. Terms of the Offering Authority for Issuance. The Series 2010 Bonds will be issued under authority of (i) the Constitution of the State of Georgia, as amended by Ga. L. 1968, p. 1466, creating the Authority, which has been continued in force and effect as a part of the Constitution, Ga. L. 1986, p. 5547, and (ii) the general laws of the State, in particular the Revenue Bond Law of Georgia, codified in Official Code of Georgia Annotated 2

9 ( O.C.G.A. ) through (the Revenue Bond Law ). The Series 2010 Bonds will be issued pursuant to the provisions of a bond resolution adopted by the Authority on April 8, 2010, (the Resolution ). Offering. The Series 2010 Bonds are offered when, as and if issued by the Authority, subject to prior sale and to withdrawal or modification of the offer without notice, to approval of legality by Gray & Pannell LLP, Bond Counsel, and to validation by the Superior Court of Whitfield County. Delivery. The Series 2010 Bonds in definitive form are expected to be delivered on or about April 29, Continuing Disclosure The Authority has determined that no financial or operating data concerning the Authority is material to an evaluation of the offering of the Series 2010 Bonds or to any decision to purchase, hold or sell the Series 2010 Bonds and the Authority will not provide any such information. The City will undertake all responsibility for any continuing disclosure to beneficial owners of the Series 2010 Bonds. The City will sign a Continuing Disclosure Certificate which will allow the Underwriter of the Series 2010 Bonds to comply with Securities and Exchange Commission Rule 15c2-12(b)(5). The Authority shall have no liability to the beneficial owners of the Series 2010 Bonds or any other person with respect to Rule 15c2-12(b)(5). See MISCELLANEOUS, -Continuing Disclosure and Appendix C: FORM OF THE CONTINUING DISCLOSURE CERTIFICATE. Additional Information This Official Statement and the Appendices hereto contain brief descriptions of, among other matters, the Series 2010 Bonds, the Authority, the City, the Resolution, the Contract, and the security and sources of payment for the Series 2010 Bonds. Such descriptions and information do not purport to be comprehensive or definitive. The summaries of various constitutional provisions, statutes, the Resolution, the Contract, and other documents are intended as summaries only and are qualified in their entirety by reference to such documents, and references herein to the Series 2010 Bonds are qualified in their entirety to the form thereof included in the Resolution authorizing the Series 2010 Bonds. Copies of the Resolution and other documents and information are available upon request and upon payment to the City of a charge for copying, mailing and handling, from Cindy Jackson, CFO, City of Dalton, 300 West Waugh Street (30720), PO Box 1205 ( ) Dalton, Georgia telephone (706) [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 3

10 Description THE SERIES 2010 BONDS The Series 2010 Bonds, dated as of their date of issuance and delivery, will bear interest at the rates per annum, calculated on the basis of a 360-day year consisting of twelve 30-day months, and mature on July 1 in the years and in the amounts set forth on the inside cover page hereof. Interest shall be payable on January 1 and July 1 of each year beginning July 1, Redemption Features Optional Redemption. The Series 2010 Bonds maturing on July 1, 2019 and thereafter may be redeemed prior to their maturity, by the Authority at the option of the City, in whole or in part at any time beginning July 1, 2018 (if less than all of the Series 2010 Bonds of a maturity are to be redeemed, the actual Series 2010 Bonds of such maturity shall be selected by lot in such manner as may be designated by the Paying Agent) from any moneys available therefor. Series 2010 Bonds which are subject to redemption are callable in such order as may be designated by the Authority upon direction of the City. Such redemption shall be made upon payment of the principal amount to be redeemed prior to maturity, without premium, plus accrued interest to the redemption date. Extraordinary Optional Redemption of the Series 2010 Bonds. The Series 2010 Bonds are subject to redemption prior to maturity by the Authority at the option of the City in whole or in part on any date during the period from the date of issuance of the Series 2010 Bonds until July 1, 2018, in the event that the government of the United States of America evidences, in the sole judgment of the City, by action or failure to act that it will not provide for the payments to be made to the Authority or the City (contemporaneously with each Interest Payment Date) in an amount equal to or greater than the applicable percentage of the interest payable on the Series 2010 Bonds on any Interest Payment Date. The extraordinary redemption price will be 100% of the principal amount of such Series 2010 Bonds, plus accrued interest to the redemption date. In the event a portion, but not all, of the Series 2010 Bonds are redeemed pursuant to extraordinary redemption, then the principal amount of any remaining mandatory sinking fund redemptions applicable to the Series 2010 Bonds shall be proportionately reduced (subject to the Paying Agent making such adjustments as it deems necessary to be able to effect future redemptions of the Series 2010 Bonds in authorized denominations). Scheduled Mandatory Redemption. The Series 2010 Bonds maturing on July 1, 2022, are subject to scheduled mandatory redemption prior to maturity in part (the actual Series 2010 Bonds to be redeemed to be selected by lot in such manner as the Bond Registrar may determine) at a redemption price equal to 100% of the principal amount thereof, plus accrued interest to the redemption date, on July 1 in the years and in the principal amount set forth below (the 2022 amount to be paid at maturity rather than redeemed): Due in the Year Principal Amount Maturing $275, ,000 The Series 2010 Bonds maturing on July 1, 2025, are subject to scheduled mandatory redemption prior to maturity in part (the actual Series 2010 Bonds to be redeemed to be selected by lot in such manner as the Bond Registrar may determine) at a redemption price equal to 100% of the principal amount thereof, plus accrued interest to the redemption date, on July 1 in the years and in the principal amount set forth below (the 2025 amount to be paid at maturity rather than redeemed): Due in the Year Principal Amount Maturing $290, , ,000 The Series 2010 Bonds maturing on July 1, 2030, are subject to scheduled mandatory redemption prior to maturity in part (the actual Series 2010 Bonds to be redeemed to be selected by lot in such manner as the Bond Registrar may determine) at a redemption price equal to 100% of the principal amount thereof, plus accrued interest to the redemption date, on July 1 in the years and in the principal amount set forth below (the 2030 amount to be paid at maturity rather than redeemed): 4

11 Due in the Year Principal Amount Maturing $320, , , , ,000 Notice of Redemption. Notice of any redemption shall be given one time at least 30 days prior to the date fixed for redemption to the Holders of each of the Series 2010 Bonds being called for redemption by first class mail at the address shown as of 45 days prior to the date fixed for redemption on the register of the Bond Registrar pertaining to the Series 2010 Bonds. The failure of the Bondholder to receive any such notice as so given shall not affect the validity of the proceedings for redemption. Effect of Call for Redemption. Interest shall cease to accrue on any Series 2010 Bond duly called for prior redemption on the redemption date, if payment thereof has been duly provided. All future interest on the Series 2010 Bonds or portions thereof so called for redemption shall cease to accrue from and after the date fixed for redemption unless default shall be made in payment of the redemption price with respect to the Series 2010 Bonds or portions thereof so called for redemption. Book-Entry Only System of Delivery of Series 2010 Bonds The information in this section concerning DTC and its book-entry system has been obtained from DTC. The Authority does not make any representation or warranty or take any responsibility for the accuracy or completeness of such information. DTC will act as securities depository for the Series 2010 Bonds. The Series 2010 Bonds will be issued as fully-registered securities registered in the name of Cede & Co., DTC=s partnership nominee, or such other name as may be requested by an authorized representative of DTC. One fully-registered bond certificate will be issued for each maturity of the Series 2010 Bonds as set forth on the inside cover page of this Official Statement, in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world=s largest depository, is a limited purpose trust company organized under the New York Banking Law, a banking organization within the meaning of the New York Banking Law, a member of the Federal Reserve System, a clearing corporation within the meaning of the New York Uniform Commercial Code, and a clearing agency registered pursuant to the provisions of Section 17A of the Securities Exchange Act of DTC holds and provides asset servicing for over two million issues of U.S. and non-u.s. equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that DTC=s participants (the Participants ) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-u.s. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ( DTCC ). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-u.s. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( Indirect Participants ). DTC has Standard & Poor=s highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at Purchases of the Series 2010 Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Series 2010 Bonds on DTC=s records. The ownership interest of each actual purchaser of each Series 2010 Bond (the Beneficial Owner ) is in turn to be recorded on the records of the Direct and Indirect Participants. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners, however, are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2010 Bonds are to be accomplished by entries made on the books of the Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates 5

12 representing their ownership interests in the Series 2010 Bonds, except in the event that use of the book-entry system for the Series 2010 Bonds is discontinued. To facilitate subsequent transfers, all Series 2010 Bonds deposited by Direct Participants with DTC are registered in the name of DTC=s partnership nominee, Cede & Co, or such other name as may be requested by an authorized representative of DTC. The deposit of the Series 2010 Bonds with DTC and their registration in the name of Cede & Co., or such other DTC nominee, do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2010 Bonds; DTC=s records reflect only the identity of the Direct Participants to whose accounts such Series 2010 Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices will be sent to DTC. If less than all of the Series 2003 Bonds within a maturity are being redeemed, DTC=s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee)will consent or vote with respect to Series 2010 Bonds unless authorized by a Direct Participant in accordance with DTC=s procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Authority as soon as possible after the Record Date. The Omnibus Proxy assigns Cede & Co.=s consenting or voting rights to those Direct Participants to whose accounts the Series 2010 Bonds are credited on the Record Date (identified in a listing attached to the Omnibus Proxy). Payments with respect to the Series 2010 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC s practice is to credit Direct Participants accounts upon DTC s receipt of funds and corresponding detail information from the Authority, on the payable date in accordance with their respective holdings shown on DTC=s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in street name, and will be the responsibility of such Participant and not of DTC, the Authority, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium, if any, and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Authority or of the City, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Series 2010 Bonds at any time by giving reasonable notice to the Authority or the City. Under such circumstances, in the event that a successor depository is not obtained, physical Series 2010 Bonds are required to be printed and delivered. The Authority (with the concurrence of the City) may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, bond certificates will be printed and delivered. The information concerning DTC and DTC=s book-entry system set forth above has been obtained from DTC. The City makes no representation or warranty regarding the accuracy or completeness thereof. SO LONG AS CEDE & CO. OR SUCH OTHER NOMINEE, AS NOMINEE FOR DTC, IS THE SOLE HOLDER OF THE SERIES 2010 BONDS, THE AUTHORITY AND THE BOND REGISTRAR WILL TREAT CEDE & CO. OR SUCH OTHER NOMINEE AS THE ONLY OWNER OF THE SERIES 2010 BONDS FOR ALL PURPOSES UNDER THE RESOLUTION, INCLUDING RECEIPT OF ALL PAYMENTS ON THE SERIES 2010 BONDS, RECEIPT OF NOTICES, VOTING, AND REQUESTING OR DIRECTING THE AUTHORITY OR THE BOND REGISTRAR TO TAKE OR NOT TO TAKE, OR CONSENT TO, CERTAIN ACTIONS UNDER THE RESOLUTION. THE AUTHORITY AND THE BOND REGISTRAR HAVE NO RESPONSIBILITY OR OBLIGATION TO THE DIRECT OR INDIRECT PARTICIPANTS OR THE BENEFICIAL OWNERS WITH RESPECT TO (A) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT OR INDIRECT PARTICIPANT; (B) THE PAYMENT BY ANY DIRECT OR INDIRECT PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT TO THE SERIES 2010 BONDS; (C) THE DELIVERY OR TIMELINESS OF DELIVERY BY ANY DIRECT OR INDIRECT PARTICIPANT OF ANY NOTICE TO ANY BENEFICIAL OWNER WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE RESOLUTION TO BE GIVEN TO OWNERS OF THE SERIES 2010 BONDS; OR (D) OTHER ACTION TAKEN BY DTC OR CEDE & CO. OR SUCH OTHER DTC NOMINEE, AS OWNER. 6

13 Authority for Issuance of the Series 2010 Bonds The Series 2010 Bonds shall be issued under authority of (i) the Constitution of the State of Georgia, as amended by Ga. Laws 1968, (the Constitutional Amendment ), (ii) the general laws of the State, in particular the Revenue Bond Law, and (iii) the Resolution. Article IX, Section III, Paragraph I(a) of the Constitution of the State of Georgia of 1983 authorizes any county, municipality, school district or other political subdivision of the State to contract for any period not exceeding 50 years with any public corporation or public authority for joint services, for the provision of services, or for the joint or separate use of facilities or equipment, if such contract deals with activities, services, or facilities which the contracting parties are authorized by law to undertake or provide. Pursuant to the Constitutional Amendment, the Authority is created for the purpose of acquiring, constructing, equipping, maintaining and operating self-liquidating projects embracing buildings and facilities for use by the City for its governmental, proprietary and administrative functions and for the use by such other agencies, authorities, departments and political subdivisions of the State or the government of the United States as may contract with the Authority for the use of such facilities. The Constitutional Amendment further permits the Authority to make contracts and leases and to execute all instruments necessary or convenient, including contracts for construction of projects and lease of projects or contracts with respect to the use of projects which it causes to be erected or acquired, and the City and any divisions, departments, institutions, agencies, counties or political subdivisions of the State are hereby authorized to enter into contracts, leases or agreements with the Authority upon such terms and for such purposes as they deem advisable. The City may enter into lease contracts and related agreements for the use of any structure, building or facility or a combination of two or more structures, buildings or facilities of the Authority for a term not exceeding fifty years upon a majority vote of its governing body and may obligate itself to pay an agreed sum for the use of such property so leased and also obligate itself as a part of the undertaking to pay the cost of maintain, repairing and operating the property furnished by and leased from the Authority. The City authorized and approved execution, delivery, and performance of the Contract pursuant to resolutions adopted by its governing body on February 1, 2010 and April 8, Validation The Series 2010 Bonds will be confirmed and validated, in accordance with the provisions of the Revenue Bond Law, by the Superior Court of Whitfield County, prior to the issuance and delivery thereof. The Projects The Series 2010 Bonds are being issued to provide funds to finance the costs of certain capital outlay projects for the City consisting of (a) the acquisition of property, demolition of old structures, construction, equipping and furnishing of a new Dalton Community Center, including outside areas not limited to parking, splash pad, concessions, bathrooms, a soccer field, outside lighting, and picnic shelters, and (b) renovations and improvements at James Brown Park and other recreation facilities including landscaping, lighting, fencing, construction of new soccer/football fields, and resurfacing of existing soccer fields. Investment of Moneys Moneys in the Construction Fund. Moneys in the Construction Fund which are not needed at the time to pay current obligations during the construction and equipping of the Projects may be invested by the custodian of said fund in any of the investments allowed by O.C.G.A. ' Other Moneys. Moneys in the Sinking Fund may be invested in certain of the investments allowed by O.C.G.A. ' and O.C.G.A. ' Any such investments shall mature no later than such times as shall be necessary to provide moneys when needed for payments to be made from such fund. Any authorized investments shall be held in the Sinking Fund until paid at maturity, redeemed or sold, and the proceeds thereof, including interest, principal, and premium, if any, shall be immediately deposited to the credit of the Sinking Fund. When a fixed amount is required to be maintained in the Sinking Fund, the investments for such fund shall be valued in terms of current market value as of the last day of the fiscal year next preceding the determination of value. Moneys in the Sinking Fund and all authorized investments held in and for such fund, and the income therefrom, are pledged to and charged with the payments required by the Resolution to be made from such fund. 7

14 Estimated Sources and Uses of Funds Sources of Funds: Uses of Funds: Proceeds from the Sale of Bonds... $5,600, Net Original Issue Discount... (386.70) City Contribution for Issuance Costs and Insurance Premium... 77, Total Sources of Funds... $5,677, Deposit to Construction Fund 1... $5,490, Costs of Issuance , Total Uses of Funds:... $5,677, See THE BONDS, -The Projects. 2 Includes estimated and budgeted fees of the attorneys, printing costs, bond validation fees, premium for municipal bond insurance, rating agencies fees, initial fee of Bond Registrar and Paying Agent, Underwriter s Discount, and other miscellaneous fees and expenses. Security and Sources of Payment for the Bonds Contract. The Bonds will be secured by a pledge of the amounts payable by the City under the Contract, which amounts shall be sufficient to pay the principal of and interest on the Bonds. The City s obligation to make such contract payments is absolute and unconditional and shall constitute a general obligation and pledge of the full faith and credit of the City, subject only to a limitation within the charter of the City which currently limits property taxes on real and personal property to 1 per centum for ordinary expenses. Pursuant to the Resolution, payments made by the City to the Authority sufficient to pay the principal of and interest on the Bonds will be deposited for the account of the Authority directly into the Sinking Fund. Such revenue will be held separate and apart from other funds of the Authority and will not be used for any purpose other than the payment of the principal of and interest on the Bonds and related expenses. The City covenants in the Contract that it will include in each of its annual budgets an amount sufficient to make the Contract payments in each year and to levy and collect taxes from year to year in an amount sufficient to fulfill and fully comply with the terms of the Contract. General. The Bonds will not constitute a debt or pledge of the faith and credit of the State or the City, but will be payable solely from the payments of the City to the Authority pursuant to the Contract. The issuance of the Bonds will not directly, indirectly or contingently obligate the State or the City to levy or pledge any form of taxation whatever for the payment thereof. No owner of the Bonds shall have the right to enforce the payment thereof against any property of the State or the City, nor shall the Bonds constitute a charge, lien or encumbrance, legal or equitable, upon any such property; provided, however, that in accordance with the provisions of the Constitution and the laws of the State, the obligation of the City to make the payments it has contracted to make by the provisions of the Contract will constitute a general obligation and a pledge of the full faith, credit, and taxing power of the City, and the obligation which the City has undertaken to make such payments from taxes to be levied for that purpose is a mandatory obligation to levy and collect such taxes from year to year in amount sufficiently to fulfill and fully comply with the terms of such obligation. Additional Bonds The Authority, provided certain conditions are met, may issue additional bonds on a parity with the Bonds as to the lien on the revenue of the Authority derived from the land and other property comprising the Project for the purpose of completing the Project or financing improvements or additions to the Project. For more detailed information on the conditions which must be met for parity obligations to be issued see Appendix B: FORM OF THE RESOLUTION AND CONTRACT. 8

15 Bond Insurance Policy BOND INSURANCE Concurrently with the issuance of the Series 2010 Bonds, Assured Guaranty Corp. ( AGC or the Insurer ) will issue its financial guaranty insurance policy (the Policy ) for the Series 2010 Bonds. The Policy guarantees the scheduled payment of principal of and interest on the Series 2010 Bonds when due as set forth in the form of the Policy included as an exhibit to this Official Statement. The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut or Florida insurance law. Assured Guaranty Corp. AGC is a Maryland-domiciled insurance company regulated by the Maryland Insurance Administration and licensed to conduct financial guaranty insurance business in all fifty states of the United States, the District of Columbia and Puerto Rico. AGC commenced operations in AGC is a wholly owned, indirect subsidiary of Assured Guaranty Ltd. ( AGL ), a Bermuda-based holding company whose shares are publicly traded and are listed on the New York Stock Exchange under the symbol AGO. AGL, through its operating subsidiaries, provides credit enhancement products to the U.S. and global public finance, infrastructure and structured finance markets. Neither AGL nor any of its shareholders is obligated to pay any debts of AGC or any claims under any insurance policy issued by AGC. AGC s financial strength is rated AAA (negative outlook) by Standard & Poor s Ratings Services, a Standard & Poor s Financial Services LLC business ( S&P ) and Aa3 (negative outlook) by Moody s Investors Service, Inc. ( Moody s ). On February 24, 2010, Fitch, Inc. ( Fitch ), at the request of AGL, withdrew its AA- (Negative Outlook) insurer financial strength rating of AGC at the then current rating level. Each rating of AGC should be evaluated independently. An explanation of the significance of the above ratings may be obtained from the applicable rating agency. The above ratings are not recommendations to buy, sell or hold any security, and such ratings are subject to revision or withdrawal at any time by the rating agencies, including withdrawal initiated at the request of AGC in its sole discretion. Any downward revision or withdrawal of any of the above ratings may have an adverse effect on the market price of any security guaranteed by AGC. AGC does not guarantee the market price of the securities it insures, nor does it guarantee that the ratings on such securities will not be revised or withdrawn. Recent Developments In a press release dated February 24, 2010, Fitch announced that, at the request of AGL, it had withdrawn the AA- (Negative Outlook) insurer financial strength rating of AGC at the then current rating level. Reference is made to the press release, a copy of which is available at for the complete text of Fitch s comments. In a press release dated December 18, 2009, Moody s announced that it had confirmed its Aa3 insurance financial strength rating of AGC, with a negative outlook. Reference is made to the press release, a copy of which is available at for the complete text of Moody s comments. On July 1, 2009, S&P published a Research Update in which it affirmed its AAA counterparty credit and financial strength ratings on AGC. At the same time, S&P revised its outlook on AGC to negative from stable. Reference is made to the Research Update, a copy of which is available at for the complete text of S&P s comments. There can be no assurance as to any further ratings action that Moody s or S&P may take with respect to AGC. For more information regarding AGC s financial strength ratings and the risks relating thereto, see AGL s Annual Report on Form 10-K for the fiscal year ended December 31, 2009, which was filed by AGL with the Securities and Exchange Commission ( SEC ) on March 1,

16 Capitalization of Assured Guaranty Corp. As of December 31, 2009, AGC had total admitted assets of $3,049,898,249 (unaudited), total liabilities of $1,826,178,241 (unaudited), total surplus of $1,223,720,008 (unaudited) and total statutory capital (surplus plus contingency reserves) of $1,779,528,288 (unaudited) determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities. Incorporation of Certain Documents by Reference The portions of the following documents relating to AGC are hereby incorporated by reference into this Official Statement and shall be deemed to be a part hereof: the Annual Report on Form 10-K of AGL for the fiscal year ended December 31, 2009 (which was filed by AGL with the SEC on March 1, 2010); and the filed portion of the Current Report on Form 8-K of AGL dated March 22, All consolidated financial statements of AGC and all other information relating to AGC included in documents filed by AGL with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended, after the filing of the last document referred to above and prior to the termination of the offering of the Series 2010 Bonds shall be deemed to be incorporated by reference into this Official Statement and to be a part hereof from the respective dates of filing such documents. Any statement contained in a document incorporated herein by reference or contained herein under the heading BOND INSURANCE-Assured Guaranty Corp. shall be modified or superseded for purposes of this Official Statement to the extent that a statement contained herein or in any subsequently filed document which is incorporated by reference herein also modifies or supersedes such statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Official Statement. Copies of the consolidated financial statements of AGC incorporated by reference herein and of the statutory financial statements filed by AGC with the Maryland Insurance Administration are available upon request by contacting AGC at 31 West 52 nd Street, New York, New York or by calling AGC at (212) In addition, the information regarding AGC that is incorporated by reference in this Official Statement that has been filed by AGL with the SEC is available to the public over the Internet at the SEC s web site at and at AGL s web site at from the SEC s Public Reference Room at 450 Fifth Street, N.W., Room 1024, Washington, D.C , and at the office of the New York Stock Exchange at 20 Broad Street, New York, New York AGC makes no representation regarding the Series 2010 Bonds or the advisability of investing in the Series 2010 Bonds. In addition, AGC has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding AGC supplied by AGC and presented under the heading BOND INSURANCE. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 10

17 THE AUTHORITY The Authority The City of Dalton Building Authority, a public body corporate and politic, serves as a financing tool for public projects within Whitfield County and was established through the Georgia General Assembly on March 13, 1968 as an amendment to the Constitution (Ga. Laws 1968, ). The purpose of the Authority is to acquire, construct equip, maintain, and operate self-liquidating projects consisting of buildings and facilities for use by the City and Whitfield County for their governmental, proprietary and administrative functions. Pursuant to the Constitutional Amendment, the Authority has powers necessary or convenient to carry out its purposes, including the power to make and execute contracts for constructing, renting and leasing of its projects for the use of Dalton and Whitfield County and to issue revenue bonds payable from the rents and revenues of the Authority and its projects to provide funds for carrying out the purposes of the Authority. Principal Officials The Authority consists of five members. In accordance with the Constitutional Amendment, one member shall be the Mayor of the City of Dalton, Georgia, one shall be a member of the City Council of the City to be appointed by said City Council, one shall be a banker or other person having knowledge in financial matters, who is a resident of the City appointed by the Mayor and Council of the City, one shall be a businessman who is a resident of the City appointed by the Mayor and Council of the City, and one shall be a citizen of the City who is a freeholder and qualified registered voter of said City appointed by the Mayor and Council of the City. Present members of the Authority are as follows: Name Position Principal Business Expiration Date of Term Frank Robertson Chairman CPA June 15, 2011 Lane Lewis Vice Chairman Executive, Containers June 15, 2011 Scott Sellers Member Banking June 15, 2011 [Vacant] Member Alderman, City of Dalton December 31, 2010 David Pennington Member Mayor, City of Dalton December 31, 2010 Cindy Jackson Secretary CFO, City of Dalton By Appointment Revenue Bonds of the Authority Set forth below is information concerning revenue bonds of the Authority as of January 31, 2010 and as of the estimated date of issuance of the Series 2010 Bonds. The information set forth below should be read in conjunction with the City s summary of indebtedness. See DEBT STRUCTURE OF DALTON, - Categories of Indebtedness. Revenue Bonds Amount Authorized or Issued Amount Outstanding as of January 31, 2010 Amount to be Outstanding Upon Issuance of the Bonds Series 2002 Bonds $ 7,770,000 $1,940,000 $1,940,000 Series 2003 Bonds 1 2,000,000 2,000,000 2,000,000 Series 2005 Bonds 1 4,470,000 3,385,000 2,865,000 Series 2006 Bonds 1 14,480,000 9,030,000 6,140,000 Series 2007 Bonds 1 11,925,000 8,695,000 5,910,000 TOTALS $40,645,000 $25,050,000 $18,855,000 1 The Authority issued the Series 2003, 2005, 2006 and 2007 Bonds on behalf of the City for use by the Dalton Public School System. Each issue is secured by an intergovernmental contract between the Authority and the City. Debt service on the bonds is to be paid first from the proceeds of a one percent sales and use tax for educational purposes received by the School System, and if such proceeds are insufficient, from an ad valorem tax, not to exceed fourteen (14) mills, for educational purposes and for the maintenance of the public schools of the City. 11

18 DALTON, GEORGIA Introduction The City, which encompasses an area of approximately 20 square miles, is located in the northwest part of the State bordering on the Tennessee state line, 85 miles north of Atlanta and 28 miles south of Chattanooga, Tennessee. The City is a municipal corporation and governmental body of the State. The City was founded in 1837 as the village of Cross Plains, and officially became Dalton on December 29, The City s main industry is non-unionized textile and textile related industries and is known as the Carpet Capital of the World. The City houses 30 carpet manufacturers and produces 70% of the world s $16 billion carpet industry. The carpet industry has also diversified into areas such as rugs, wood, laminate, and vinyl flooring and this industry makes up approximately 37% of the 34,000 jobs in the City. The City also contains other industries such as producers of concrete, poultry products, and appliances. The City has been impacted by the economic recession. The decline in the housing market nationally has negatively impacted the carpet industry which has resulted in the loss of manufacturing jobs. Since the recession officially began in mid-2007, the unemployment rate in the metro-dalton area climbed from 4.5% to 13%. However the metro-dalton unemployment figures should be read as regional rather than specific to the City as the Georgia Department of Labor tracks Whitfield and Murray Counties together. Moreover since the City is a net importer of jobs the unemployment figures of all surrounding counties (i.e., where the workers actually live) affect the City s numbers. A number of City sponsored initiatives promise to create jobs and spur production. First, the Dalton/Whitfield Joint Economic Development Authority has announced a number of planned industrial plant openings related to our floor covering industry. These projects include the world s largest high-end vinyl flooring manufacturing plant and two new carpet manufacturing plants which will produce carpet from recycled carpet and energy. Second, the carpet industry is experiencing an industry-wide shift from nylon fiber to polyester fiber. This shift is anticipated to spur hundreds of millions of dollars of new machinery and plants to facilitate the conversion to polyester carpet production. All told these developments are estimated to create some 1,500 new jobs in the next one to three years. In addition to these new developments and estimates the nearly completed Volkswagen assembly plant in Chattanooga, Tennessee, is set to name its suppliers in the coming months, and thanks to its location, the City is very much in the running for both Tier II and Tier III supplier locations, meaning more economic growth and productivity for the City. The City is also partnering with Dalton State College to facilitate a downtown campus location for the College s 5,700 students. This will help shift the College s focus from non-traditional commuter students to a more traditional full-time student population which can be educated, housed, fed and entertained downtown. Finally, plans are in the works with the Georgia Department of Transportation through the Northwest Georgia Regional Commission to enhance the City s quality of life through a network of multi-purpose greenways. These greenways are actually bicycle and pedestrian friendly paths which will connect the City s neighborhoods and parks. Most importantly the plan incorporates the City s mile wide water reservoir which should become the crown jewel of community recreation in Northwest Georgia. Government Format and Principal Officials The City operates under a Council-Administration form of government. The Mayor and Council of the City is elected to four year terms and are responsible for enacting laws, determining policies, and adopting an annual budget. The City Administrator is responsible for the daily management of the City. The Mayor and present members of the Council, the date of their initial election, the expiration of their current terms, and their present principal business or professional affiliations are as follows: Name Initial Term Began Current Term Expires Principal Business David Pennington, Mayor January 1, 2008 December 31, 2011 Insurance Denise Wood January 1, 2008 December 31, 2011 Carpet Industry Richard Lowrey January 1, 2010 December 31, 2013 Construction George Sadosuk January 1, 2008 December 31, 2011 Retired, Petro-chemical [Vacant] n/a December 31, 2013 n/a 12

19 City Administrator. Ty Ross joined the City as Administrator in October Immediately prior to becoming City Administrator Mr. Ross served as an administrator and professor at the Dalton State College School of Business. Prior to that Mr. Ross practiced law with the firm of Minor, Bell & Neal, P.C. for five plus years. Mr. Ross has earned a B.A. degree from the University of Georgia, a J.D. from Georgia State University and a Masters of Business Administration from Kennesaw State University. Chief Financial Officer. Cindy Jackson is the Chief Financial Officer for the City and has held the position since its implementation in August of Ms. Jackson is a Certified Public Accountant and spent seventeen years in the public accounting and audit arena prior to joining the City of Dalton. Employee Relations As of January 1, 2010, the City (including Dalton Utilities) employed approximately 768 employees and believes that it enjoys a good relationship with them. The City has never experienced a major disruption of services due to a strike or employee action. None of the City employees belong to any recognized labor unions or other collective bargaining groups and the City has no knowledge of any union organizing efforts. Employees of the City are provided a flexible benefits plan, social security, unemployment compensation, workers compensation, and life insurance, which are paid for by the City. Health insurance is provided by the City with a 15% 23% employee contribution. Governmental Agencies The following Authorities are joint ventures between the City and Whitfield County (the County ): Dalton-Whitfield Regional Solid Waste Management Authority. The Authority was created to study, plan, manage and provide financing for the citizens of Dalton and Whitfield County solid waste management needs. Northwest Georgia Trade and Convention Center. The Authority was created to promote tourism, conventions, special events and trade shows within the City of Dalton and Whitfield County. Dalton-Whitfield Economic Development Authority. The Authority was created to promote economic development within the City of Dalton and Whitfield County. Other Related Organizations of the City: The City of Dalton Building Authority. The Authority was created for the purpose of acquiring, constructing, equipping, maintaining and operating self-liquidating projects embracing buildings and facilities for use by the City of Dalton, for its governmental, proprietary and administrative functions and for the use by such other agencies, authorities, departments and political subdivisions of the State of Georgia or the government of the United States as may contract with the Authority for the use of such facilities. City of Dalton Development Authority. The Authority was created for the purpose of acquiring, constructing, equipping, and improving land and buildings, and to acquire machinery and equipment or other personal property for the essential purpose of the development of trade, commerce, industry and employment opportunities. The Authority can issue revenue bonds for these purposes. Downtown Dalton Development Authority. The Authority was created by constitutional ratification by the 1980 general election and does not operate under the 1981 legislative Code. The Authority was created to provide centralized leadership for communication of downtown issues. Dalton Housing Authority. The Authority provides low-income housing to eligible families within the City of Dalton. City of Dalton Board of Education. The Board of Education is an agency of the City established under the Charter of the City and is independently elected by the voters of the City. Dalton Public Schools provides a system of education for the children of the City. The Board of Education maintains its own financial records which are audited independently from those of the City government. 13

20 Government Services and Facilities The City provides a full range of services, including police and fire protection services, highway and street maintenance, sanitation, culture and recreation, public improvements, general administrative services, planning and zoning, a golf course, utilities, a trade center (a joint venture with Whitfield County), and a landfill (a joint venture with Whitfield County). As of January 1, 2010, the City police department has 1 police station, 98 sworn police officers, 12 civilian employees, and 58 patrols. The City fire department has 5 fire stations, 87 fire fighters, 6 first out engines, 1 100ft. aerial, 1 75 ft. aerial, and 3 reserve engines. The National Board of Fire Underwriters fire insurance rating is Class 2 for the City. The City maintains approximately 169 miles of streets and 4,420 street lights. The sanitation department has 32 employees. The public works service department has 35 employees who perform street and drainage maintenance as well as other public works. The City owns and maintains 12 parks, 3 community centers, 1 swimming pool, and 22 tennis courts and various other cultural and recreational facilities. There are 2 libraries in the City. Population Information The following table sets forth the population, including percentage of annual increase, of the City, the County, the State of Georgia, and the United States. The population information for the year 2009 is estimated data and information for the City and Whitfield County is estimated for year 2008, year 2009 is not yet available. Year City Percentage Change Whitfield County Percentage Change 14 Georgia Percentage Change United States Percentage Change , % 93, % 9,829, % 307,006, % , , ,186, ,421, , , ,478, ,709, , , ,463, ,545, , , ,589, ,211, Source: U.S. Bureau of the Census. Per Capita Personal Income The following table sets forth the per capita personal income in the City, the State of Georgia, and the United States for the years 2004 through Information for 2009 is not yet available. Year Dalton Georgia United States 2008 * $34,893 $40, $32,656 33,499 38, ,888 32,299 36, ,501 31,260 34, ,072 29,723 33,157 Sources: City Information taken from the City of Dalton Comprehensive Annual Financial Report for the year ended December 31, 2008; Information for the State and U.S. from the Bureau of Economic Analysis. Median Home Values The following table sets forth the median home values for the County, the State and the United States for the census years 1980, 1990, and 2000, and an estimate for the year Year County Georgia United States 2008 $129,400 $169,100 $197, , , , ,800 71,300 79, * 36,900 47,200 Source: U.S. Department of Commerce, Bureau of Census.