Revenues to be kept separate--order of payments--records--transfers.
250.150. 1. Whenever any such city, town or village orsewer district shall establish and collect rates and charges forthe services of any sewerage system or any combined waterworksand sewerage system it shall be the mandatory duty of such city,town or village, or sewer district and of the proper officialsthereof:
(1) To segregate the revenues derived from the operation ofsuch system from all other revenues or funds of such city, townor village or sewer district; to hold such funds separate anddistinct from all other funds thereof and, if such funds shall bedeposited in any bank, to maintain such deposits as an accountseparate and distinct from all other bank accounts thereof.
(2) Such revenues shall be devoted, first, to the payment ofthe expenses of operating and maintaining such system; second, tothe payment of any and all bonds or other obligations payablefrom such revenues; third, to the establishment of a properdepreciation reserve for the benefit of such system; fourth, tothe fulfillment of any covenants or agreements contained in anyordinance which may have authorized outstanding revenue bondsissued for the benefit of such system and, fifth, for the paymentof the cost of improvements and extensions to such system.
(3) To install and maintain proper books of records andaccounts (entirely separate from all other records and accountsof the city, town or village or sewer district) in which correctentries shall be made of all dealings or transactions of or inrelation to the properties, business and affairs of the seweragesystem or of the combined waterworks and sewerage system. Suchaccounts shall show the amount of revenues received from thesystem, the application of such revenues and all financialtransactions in connection therewith. At least once a year suchaccounts shall be audited properly by a public accountantemployed for that purpose to be paid from the revenues receivedfrom the system. Such audits shall at all times, during usualbusiness hours, be open to the examination and inspection by anytaxpayer, any user of the services of the system or any holder ofany bonds issued pursuant to this chapter or by anyone acting foror on behalf of any such taxpayer, user or bondholder. Suchbooks of records and accounts and such audits shall conform toany reasonable and valid covenant or agreement with respectthereto set out in any ordinance which may authorize the issuanceof bonds pursuant to this chapter.
(4) To perform all duties with respect to the operation ofany such sewerage system or combined waterworks and seweragesystem or with respect to the revenues derived or to be derivedfrom the operation thereof imposed by law or set out in anyreasonable and valid covenant and agreement contained in anyordinance which shall authorize the issuance of revenue bondsunder this chapter.
2. No transfer of any funds derived from the operation ofany sewerage system or combined waterworks and sewerage system toany other funds of the city, town or village or sewer districtshall be made except by action of the governing body thereof andno such transfer shall be made unless all expenses of operationand maintenance of said system shall have been paid, unless theprincipal of and the interest on all bonds due at the time ofsaid transfer shall have been paid, and unless all covenants andagreements requiring the payment of money, set out in theordinance authorizing any outstanding revenue bonds shall havebeen met and unless all obligations requiring the payment ofmoney payable from such revenues then due shall have been met.No payments of any indebtedness or expenses incurred by any suchcity, town or village or sewer district other than those abovestated in subdivision (2) shall be made from the revenues derivedfrom the operation of any such system unless such revenues shallhave been transferred to other funds of the city, town or villageor sewer district under the conditions prescribed by thissubsection.
Revenues to be kept separate--order of payments--records--transfers.
250.150. 1. Whenever any such city, town or village orsewer district shall establish and collect rates and charges forthe services of any sewerage system or any combined waterworksand sewerage system it shall be the mandatory duty of such city,town or village, or sewer district and of the proper officialsthereof:
(1) To segregate the revenues derived from the operation ofsuch system from all other revenues or funds of such city, townor village or sewer district; to hold such funds separate anddistinct from all other funds thereof and, if such funds shall bedeposited in any bank, to maintain such deposits as an accountseparate and distinct from all other bank accounts thereof.
(2) Such revenues shall be devoted, first, to the payment ofthe expenses of operating and maintaining such system; second, tothe payment of any and all bonds or other obligations payablefrom such revenues; third, to the establishment of a properdepreciation reserve for the benefit of such system; fourth, tothe fulfillment of any covenants or agreements contained in anyordinance which may have authorized outstanding revenue bondsissued for the benefit of such system and, fifth, for the paymentof the cost of improvements and extensions to such system.
(3) To install and maintain proper books of records andaccounts (entirely separate from all other records and accountsof the city, town or village or sewer district) in which correctentries shall be made of all dealings or transactions of or inrelation to the properties, business and affairs of the seweragesystem or of the combined waterworks and sewerage system. Suchaccounts shall show the amount of revenues received from thesystem, the application of such revenues and all financialtransactions in connection therewith. At least once a year suchaccounts shall be audited properly by a public accountantemployed for that purpose to be paid from the revenues receivedfrom the system. Such audits shall at all times, during usualbusiness hours, be open to the examination and inspection by anytaxpayer, any user of the services of the system or any holder ofany bonds issued pursuant to this chapter or by anyone acting foror on behalf of any such taxpayer, user or bondholder. Suchbooks of records and accounts and such audits shall conform toany reasonable and valid covenant or agreement with respectthereto set out in any ordinance which may authorize the issuanceof bonds pursuant to this chapter.
(4) To perform all duties with respect to the operation ofany such sewerage system or combined waterworks and seweragesystem or with respect to the revenues derived or to be derivedfrom the operation thereof imposed by law or set out in anyreasonable and valid covenant and agreement contained in anyordinance which shall authorize the issuance of revenue bondsunder this chapter.
2. No transfer of any funds derived from the operation ofany sewerage system or combined waterworks and sewerage system toany other funds of the city, town or village or sewer districtshall be made except by action of the governing body thereof andno such transfer shall be made unless all expenses of operationand maintenance of said system shall have been paid, unless theprincipal of and the interest on all bonds due at the time ofsaid transfer shall have been paid, and unless all covenants andagreements requiring the payment of money, set out in theordinance authorizing any outstanding revenue bonds shall havebeen met and unless all obligations requiring the payment ofmoney payable from such revenues then due shall have been met.No payments of any indebtedness or expenses incurred by any suchcity, town or village or sewer district other than those abovestated in subdivision (2) shall be made from the revenues derivedfrom the operation of any such system unless such revenues shallhave been transferred to other funds of the city, town or villageor sewer district under the conditions prescribed by thissubsection.
Revenues to be kept separate--order of payments--records--transfers.
250.150. 1. Whenever any such city, town or village orsewer district shall establish and collect rates and charges forthe services of any sewerage system or any combined waterworksand sewerage system it shall be the mandatory duty of such city,town or village, or sewer district and of the proper officialsthereof:
(1) To segregate the revenues derived from the operation ofsuch system from all other revenues or funds of such city, townor village or sewer district; to hold such funds separate anddistinct from all other funds thereof and, if such funds shall bedeposited in any bank, to maintain such deposits as an accountseparate and distinct from all other bank accounts thereof.
(2) Such revenues shall be devoted, first, to the payment ofthe expenses of operating and maintaining such system; second, tothe payment of any and all bonds or other obligations payablefrom such revenues; third, to the establishment of a properdepreciation reserve for the benefit of such system; fourth, tothe fulfillment of any covenants or agreements contained in anyordinance which may have authorized outstanding revenue bondsissued for the benefit of such system and, fifth, for the paymentof the cost of improvements and extensions to such system.
(3) To install and maintain proper books of records andaccounts (entirely separate from all other records and accountsof the city, town or village or sewer district) in which correctentries shall be made of all dealings or transactions of or inrelation to the properties, business and affairs of the seweragesystem or of the combined waterworks and sewerage system. Suchaccounts shall show the amount of revenues received from thesystem, the application of such revenues and all financialtransactions in connection therewith. At least once a year suchaccounts shall be audited properly by a public accountantemployed for that purpose to be paid from the revenues receivedfrom the system. Such audits shall at all times, during usualbusiness hours, be open to the examination and inspection by anytaxpayer, any user of the services of the system or any holder ofany bonds issued pursuant to this chapter or by anyone acting foror on behalf of any such taxpayer, user or bondholder. Suchbooks of records and accounts and such audits shall conform toany reasonable and valid covenant or agreement with respectthereto set out in any ordinance which may authorize the issuanceof bonds pursuant to this chapter.
(4) To perform all duties with respect to the operation ofany such sewerage system or combined waterworks and seweragesystem or with respect to the revenues derived or to be derivedfrom the operation thereof imposed by law or set out in anyreasonable and valid covenant and agreement contained in anyordinance which shall authorize the issuance of revenue bondsunder this chapter.
2. No transfer of any funds derived from the operation ofany sewerage system or combined waterworks and sewerage system toany other funds of the city, town or village or sewer districtshall be made except by action of the governing body thereof andno such transfer shall be made unless all expenses of operationand maintenance of said system shall have been paid, unless theprincipal of and the interest on all bonds due at the time ofsaid transfer shall have been paid, and unless all covenants andagreements requiring the payment of money, set out in theordinance authorizing any outstanding revenue bonds shall havebeen met and unless all obligations requiring the payment ofmoney payable from such revenues then due shall have been met.No payments of any indebtedness or expenses incurred by any suchcity, town or village or sewer district other than those abovestated in subdivision (2) shall be made from the revenues derivedfrom the operation of any such system unless such revenues shallhave been transferred to other funds of the city, town or villageor sewer district under the conditions prescribed by thissubsection.
