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Absence of Litigation <br />The City is not aware of any action, suit, or proceeding known to be pending or threatened, <br />that would affect the execution of the City's Financing Agreement with the Authority, or materially <br />impact the finances of the City's wastewater system. <br />Financial Statements <br />The City's audited financial statements forthe fiscal year ending June 30, 2017 are attached <br />as Appendix J. The City's financial statements were audited by Badawi & Associates, Certified <br />Public Accountants, independent auditors. The auditor has not been asked to consent to the <br />inclusion of the City's audited financial statements in this Official Statement and has not reviewed <br />this Official Statement. <br />A-20 <br />