Sec. 8-309. Separate accounts to be established for purposes of this chapter.
Sec. 8-309. Separate accounts to be established for purposes of this chapter.
(a) All moneys of the municipality derived in furtherance of the purposes of this chapter,
except as otherwise authorized or provided in this chapter, shall be deposited as soon
as practicable in a separate account or accounts in banks or trust companies organized
under the laws of the state or in national banking associations doing business in the
state. The moneys in such accounts shall be paid out on checks signed by such officer
or employee of the municipality as the legislative body shall authorize. Notwithstanding
the provisions of this section, a municipality shall have power to contract with the holders
of any of its notes or bonds as to the custody, collection, securing, investment and
payment of any moneys of the municipality derived in furtherance of the purposes of
this chapter and of any moneys held in a trust or otherwise for the payment of notes or
bonds, and to carry out such contract.
(b) Subject to the provisions of any contract with noteholders and bondholders, the
municipality issuing notes or bonds pursuant to this chapter shall prescribe a system of
accounts. All such accounts shall be kept separate from other accounts of the municipality and shall be used for the purposes of this chapter and for no other purpose.
(c) Accounts of the municipality established in furtherance of the purposes of this
chapter shall be annually audited in accordance with the provisions of sections 4-230
to 4-236, inclusive, by an independent auditor, as defined in section 4-230, who shall
be designated in accordance with the provisions of section 4-232, and a report of such
audit and the books and records of the municipality kept with respect to any action taken
or account established under this chapter, including books and records pertaining to its
receipts, disbursements, contracts, reserve funds, sinking funds and investment, shall
be open to public inspection.
(P.A. 79-596, S. 10, 17; P.A. 91-401, S. 11, 20.)
History: P.A. 91-401 amended Subsec. (c) to require that audits be conducted in accordance with Secs. 4-230 to 4-236,
inclusive, and by auditor instead of certified public accountant, effective July 1, 1993.