Ord 1983-078 - Laserfiche WebLink

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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 Certificates 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 23. 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, Certificates and Additional Bonds shall have been paid in full as to both principal and interest (provided that this covenant shall not be construed to prevent the disposal by the City of property which in its judgment has become inexpedient to use in connection with the System when other property of equal value has been substituted therefor). Section 24. COMPETITION. That so far as it legally may, the City covenants and agrees, for the protection and security of the Outstanding Bonds, Certificates and Additional Bonds and the holders thereof from time to time, that it will not grant a franchise for the operation of any competing water and/or sewer system in the City of San Marcos, until all Outstanding Bonds, Certificates and Additional Bonds shall have been retired. Section 25. FURTHER COVENANTS. The Ci ty further covenants and agrees by and through this Ordinance as follows: (a) That it has the lawful power to pledge the revenues supporting this issue of Certificates and has lawfully exercised said power under the Constitution and laws of the State of Texas, including power existing under Articles 1111, et seq., and 2368a.l, V.T.C.S., as amended. (b) That other than for the payment of the Certificates hereby issued and the Outstanding Bonds, the rents, revenues and income of the combined waterworks and sewer system of said City have not been pledged in any manner to the payment of any debt or obligation of the City, nor of said System. (c) It will duly and punctually keep, observe and perform each -15-