A. Fund Established: There is hereby created and established a general capital improvements fund for the city, which shall not be subject to fiscal operations.
B. Disposition Of Proceeds: The proceeds of said fund, together with any interest and increments thereto, may, at the discretion of the city council, be used for the following purposes only:
1. To meet principal and interest requirements on general obligation bonds;
2. When general obligation bond requirements are met, to make cash expenditures for capital improvements or equipment for street, electric, water, storm drainage, or sewer purposes; or
3. Where the transfers of said fund or any part thereof to the sinking fund is necessary to accomplish such purposes, then the city council is authorized to make such transfer of funds. (1991 Code § 1-73)