(a) Any municipality issuing revenue bonds under the provisions of this subchapter shall install and maintain a proper system of accounts showing the amount of revenue received and the application of the revenue.
(b) The municipality shall at least once a year cause the accounts to be properly audited by a competent auditor. The report of the audit shall be open for inspection at all proper times to any taxpayer, water user, or any holder of bonds issued under the provisions of this subchapter, or anyone acting for and on behalf of such taxpayer, water user, or bondholder.
(c) The treasurer of the municipality shall be custodian of the funds derived from income received from waterworks systems acquired or constructed either in whole or in part under the provisions of this subchapter and shall give proper bond for the faithful discharge of his duties as custodian. The bond shall be fixed and approved by the legislative body of the municipality.
(d)
(1) All of the funds received as income from a waterworks system acquired or constructed in whole or in part under the provisions of this subchapter and all funds received from the sale of revenue bonds issued to acquire or construct a waterworks system shall be kept separate and apart from the other funds of the city.
(2) The treasurer shall maintain separate accounts in which shall be placed the interest and sinking fund moneys and another account in which shall be placed the depreciation funds, all to provide for refunding outstanding certificates payable out of water revenue.