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following the close of each fiscal year, it will cause an audit of such books
and accounts to be made by an independent firm of Certified Public Accountants,
showing the receipts and disbursements for account of the Utility System for
the fiscal year, and each such audit, in addition to whatever other matters
may be thought proper by the Accountant, shall particularly include the follow-
ing:
(a) A detailed statement of the income and expenditures for account of
the Utility System for such fiscal year.
(b) A balance sheet as of the end of such fiscal year.
(c) The Accountant's comments regarding the manner in which the City
has carried out the requirements of this Ordinance and his recommendations
for any changes or improvements in the operation, records and accounts
of the Utility System.
(d) A list of the insurance policies in force at the end of the fis-
cal year on the Utility System properties, setting out as to each policy
the amount thereof, the risk covered, the name of the insurery and the policy's
expiration date.
(e) A list of the securities which have been on deposit as security
for the money in the Mond Fund, the Reserve Fund and the Contingency Fund <
throughout the fiscal year; a list of the securities, if any, in which the
Reserve Fund and the Contingency Fund have been invested, and a statement of
the manner in which money in the Utility System Revenue Fund has been
secured in such fiscal year.
(f) The number of metered and unmetered customers connected with the
various departments of the Utility System, showing totals as of the end of
the year.
Expenses incurred in making the audits above required are to be paid
as maintenance and operation expenses.
The City further agrees to promptly furnish a copy of each such audit
to First Southwest Company, Dallas, Texas, Rauscher, Pierce & Company, San
Antonio, Texas and to any holder of any of the Bonds who shall request same
in writing, and that the holder of any of the Bonds shall have the right to
discuss with the accountant making the audit the contents of the audit and
to ask for such additional information as he may reasonably request.
Section 18. Sale, Lease or other Encumbrance of System. The City here-
by covenants, binds and obligates itself not to sell, lease or in any manner
dispose of the Utility System, or any part thereof, including any and all
extensions and additions that may be made thereto, until all 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
Utility System when other property of equal value has been substituted
therefor).
Section 19. No Competing System. That so far as it legally may,
the City covenants and agrees, for the protection and security of the
Bonds and the holders thereof from time to time that it will not grant
a franchise for the operation of any competing waterworks, sewer and/or
electric light system in the City of Georgetown, until all Bonds issued
hereunder shall have been retired.
Section 20. Remedies in Event of Default. In addition to all the
rights and remedies provided by the laws of the State of Texas, the City