How improvement district bond money is handled and spent

(a) All moneys collected on account of assessments and interest for any improvements after the issuance of any improvement district bonds shall be kept by the director of budget and fiscal services in the improvement district bond and interest redemption fund and applied solely to the payment of interest and principal of such improvement district bonds until such bonds have been paid. If general obligation bonds are issued pursuant to § 14-12.1 (b) to pay the cost of any improvements, or any surplus remains in the improvement district bond and interest redemption fund after the payment of improvement district bonds chargeable against such fund, or any premium is received on the sale of such improvement district bonds, all such moneys collected on account of assessments and interest for any improvements or any such surplus or premium shall be credited to and become a part of a fund to be known as the “improvement district revolving fund.” However, any portion of the assessment charged as the administrative fees or expenses of the city associated with the improvements, including any fee that the city may impose for financing the improvements from the proceeds of general obligation bonds, shall be paid into the general fund. Moneys in the improvement district revolving fund shall be available to: (1) Make up deficiencies in the proceeds of improvement district bonds sold below par; (2) Cover deficiencies in interest and principal realized on account of diminishing balances of installments outstanding; (3) Advance interest and principal due on improvement district bonds outstanding before collection of annual assessments; (4) Reimburse the general fund for principal and interest on general obligation bonds issued for assessable public improvements or issued to establish, maintain, or replenish the capital projects fund in the event the payment of assessments is late or insufficient; (5) Reimburse the general fund for administrative cost and expenses relating to improvement district bonds; (6) Pay all expenses in connection with the sale of delinquent improvement district lots; and (7) Pay the prices of such delinquent lots as are bid for and purchased for the city by the director of budget and fiscal services. The director of budget and fiscal services is authorized upon such purchase to transfer the proper amounts so bid to the proper special funds for the respective improvement district concerned. (b) Upon recommendation of the director of budget and fiscal services, the council may by resolution, authorize the director of budget and fiscal services to advance moneys in the improvement district revolving fund for: (1) Unpaid assessments for any improvements in lieu of the issuance of bonds where the aggregate of the assessment installments for all property owners in the improvement district is less than $1,000 for each year; (2) Any unpaid amount of the first installment of the assessments where elections have been made to pay the assessments in installments; and (3) Any payment in connection with any improvements for which the issuance and sale of improvement district bonds or general obligation bonds or disbursement from the capital projects fund has been duly authorized. After adoption by the council of the resolution creating, defining, and establishing an improvement district pursuant to § 14-10.4 , the council, upon recommendation of the director of budget and fiscal services, may by resolution, authorize the director of budget and fiscal services to advance moneys in the improvement district revolving fund for the cost of land acquisition for improvements pursuant to § 14-10.4 . )