Setting up a reserve fund for bond payments

The council may provide in the resolution adopted pursuant to section 14.14.050 that a reserve fund shall be established as additional security for the payment of principal and interest on bonds issued in proceedings taken pursuant to this article. Unless the first annual installment on assessments will be payable at least one month prior to the first interest due date on the bonds, the council shall provide in the resolution that a reserve fund shall be established in an amount at least sufficient to pay the interest which will come due on the bonds on the first interest due date. The reserve fund shall be established from the proceeds from the sale of bonds in such amount as is designated by the council in the aforementioned resolution. Moneys in the reserve fund shall be used in accordance with the provisions of subsection A of section 14.50.170 and sections 14.50.180 and 14.52.050 . All moneys in the reserve fund not reasonably required from time to time shall be invested, as the director of finance shall determine, and the proceeds of such investments shall be added to and become a part of the reserve fund. (Ord. 801 § 1 (part), 1974: prior code § 25-8.4)