Sec. 7-240. Separate accounts.
Sec. 7-240. Separate accounts. A separate account shall be kept by the municipality of the funds derived from such waterworks system and of their disposition, which
account shall be audited annually by a competent auditor, and a report of such audit
shall be open to public inspection. The treasurer of the municipality shall be the custodian
of such funds and shall give bond to the satisfaction of the legislative body for the faithful
discharge of his duties. Such funds shall be kept separate from other funds of such
municipality and shall be used for such waterworks system and for no other purpose.
(1949 Rev., S. 759.)
Section solely governs municipal water utility financing and cannot be construed to diminish municipality's public
health or environmental protection responsibilities. 262 C. 758.