Ord 2002-054 - Laserfiche WebLink

Home Browse Search

close of each fiscal year, it will cause an audit of such records and accounts to be made by an independent Certified Public Accountant or firm of Certified Public Accountants. Copies of each such audit shall be made available for public inspection during normal business hours at the City's principal office and the City Clerk's office and, upon written request, may be furnished to any Owner upon payment of the reasonable copying and mailing charges. Expenses incurred in making such audits shall be regarded as maintenance and operating expenses of the System and paid as such. Section 10.04. Special Coyenants. The City hereby further coyenants as follows: (a) The City has the lawful power to pledge the net reyenues supporting this issue of Bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas; that the Bonds and the Additional Parity Obligations, when issued, shall be ratably secured under said pledge in such manner that one issue of Parity Revenue Obligations shall haye no preference oyer any other issue. (b) Other than for pledge made for the payment and security of the Parity Revenue Obligations to be outstanding following issuance of the Bonds, the Net Reyenues of the System have not in any manner been pledged to the payment of any debt or obligation of the City or of the System. (c) So long as any of the Bonds or any interest thereon remain outstanding, the City will not sell or encumber the System or any substantial part thereof, proyided that this shall not be construed to prohibit the sale of such machinery or other properties or equipment which has become obsolete or otherwise unsuited to the efficient operation of the System; also, with the exception of the Additional Parity Obligations expressly permitted by this Ordinance to be issued, it will not encumber the net reyenues of the System unless such encumbrance is made junior and subordinate to all of the provisions of this Ordinance. (d) No free service of the System 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 moneys from sources other than the revenues and income of the System. (e) To the extent that it legally may, the City further covenants and agrees that, as long as any Parity Revenue Obligations, or any interest thereon, are outstanding, no franchise shall be granted for the installation or operation of any competing electric utility system; and that the City will prohibit the operation of any water system or sewer system other than those owned by the City, and the operation of any such system by anyone other than this City is hereby prohibited. Section 10.05. Payment of the Bonds. FnSan Marcos\EUS Rfdg.02\Docs\Ordinancc\Finaf.wpd 30