Ord 1988-018 - Laserfiche WebLink

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Section 10.04. Records and Accounts. The City covenants that it will keep proper books, records and accounts, relating to the System in accordance with generally accepted accounting practices of facilities of like type and size, in which complete and correct entries shall be made of all pertaining transactions. All such books, records and accounts shall at all times during normal business hours be subject to the inspection of the Fiscal Agent, or of the holders of not less than 10 percent of the principal amount of the Outstanding Bonds, Bonds and/or Additional Bonds then outstanding or to their authorized representatives. The City further covenants that on or before ninety (90) days after the close of each fiscal year, the City will furnish to the holder of any of the Outstanding Bonds, Bonds, and Additional Bonds who shall request same in writing, copies of an annual audit report prepared by an independent public accountant or a State auditing official, covering the operation of the preceding fiscal year. Said annual audit report will reflect in reasonable detail the financial condition and record of operation of the City and the System, including, but not limited to, the following information: (a) An evaluation of the manner in which the City has complied with the covenants of the Ordinances authorizing the Outstanding Bonds, the Bonds, and any Additional Bonds. (b) Statement of operating income and expense. (c) Statement showing analysis of each fund including deposits, withdrawals and beginning and ending balances. (d) General balance sheet. (e) A statement showing the schedule of rates charged for each class of service as of the close of the fiscal year, the gross revenues received and the number of connections. (f) Schedule of insurance policies and fidelity bonds in force showing with respect to each policy and bond the nature and amount of risk covered, the expiration date and the name of the insurer. (g) Names and titles of principal officers. (h) A general statement concerning any events or circumstances which might possibly affect the financial status of the project. Expenses in making the audits above required are to be regarded as maintenance and operation expenses of the System and paid as such. Section 10.05. Sale. Lease or Other Encumbrance of System. The City hereby covenants, binds and obligates itself not to mortgage or otherwise encumber the System or any part thereof, except as otherwise herein provided, or sell, lease or in any manner dispose of the System, or any part thereof, including any and all extensions and additions that may be made thereto, until all Outstanding Bonds, 2387f -25-