Ord 1988-087 - Laserfiche WebLink

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(e) The payment of premiums for all insurance policies required under the provisions hereof shall be considered as maintenance and operation expenses. Section 10.03. Performance of Duties: No Free Service. The City further covenants and agrees that it will faithfully and punctually perform all duties with reference to the System required by the Constitution and laws of the State of Texas, including the making and collecting of reasonable and sufficient rates for water and sewer services supplied by the System, and the segregating and application of the revenues of the System as required by the provisions of this Ordinance. The City further covenants and agrees that no free service shall be allowed, and should the City or any of its agencies or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of the funds from sources other than revenues and income of the System. 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 wi11 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 po1icy and bond the nature and amount of risk covered, the expiration date and the name of the insurer. 2906f -25-