Sec. 7.11. Funds to be kept.
   Subd. 1. There shall be maintained in the City treasury the funds provided for in the following subdivisions.
   Subd. 2. A general fund for the payment of such expenses of the City as the council may deem proper. Into this fund shall be paid all money not provided herein or by statute to be paid into any other fund.
   Subd. 3. A debt service fund, into which shall be paid all receipts from taxes or other sources for the payment of principal and interest of all obligations issued by the City except bonds issued on account of any local improvement to be financed wholly or partly by special assessments and bonds issued on account of any municipally owned utility. Out of this fund shall be paid the principal and interest of such obligations when due. Any surplus in such fund not needed immediately for debt service may be invested under the direction of the council in such securities as are authorized by statute for the investment of such funds; and such investments may be liquidated at any time. To the extent required by law, a separate account in the debt service fund shall be maintained for each issue of City obligations.
   Subd. 4. A bond fund, into which shall be paid and from which shall be disbursed, the proceeds of all bonds issued by the City except bonds issued on account of any local improvement to be financed wholly or partly by special assessments and bonds issued on account of any municipally owned utility. A separate bond account shall be kept for each issue of such bonds.
   Subd. 5. A special assessment fund, which shall be used to finance local improvements to be paid for, in whole or in part, from special assessments against benefited property. There shall be paid into this fund: (1) collections of special assessments, with interest, levied against benefited property; (2) proceeds of bonds or warrants sold by the City to finance local improvements to be paid for in whole or in part, by special assessments; and the proceeds of inter-fund loans; (3) amounts from other City funds representing either (a) apportionments of costs against the City at large, (b) benefit assessments against City property, or (c) appropriations to maintain the integrity of the fund. There shall be paid out of this fund: (1) all expenses and costs of the improvement projects financed through the fund; (2) the redemption of all special assessment fund obligations, with interest, at or before maturity; and any inter-fund loans; and (3) abatements of assessments and refunds of receipts in error. The council shall maintain the integrity of this fund by appropriation from tax funds if necessary, and in addition may by ordinance create and maintain in the fund a cash reserve sufficient for working capital purposes. In order to anticipate the collection of special assessments and the municipal share of the cost of a local improvement, the council may by a majority vote issue and sell obligations pledging the full faith and credit of the City, or pledging only special assessments, in such amounts and maturities as it may determine; but the aggregate amount of such obligations outstanding at any time shall not exceed the sum of the following: (1) all assessments levied and uncollected; (2) cost of work in progress to be financed in whole or in part by special assessments, and (3) the cash reserve for working capital as previously determined by ordinance. In order that the fund may be administered on a self-sustaining basis, all local improvement projects financed through it shall upon completion be certified by the City Administrator as to total cost, which shall thereupon be apportioned by the council either as assessments against benefited property or as amounts due from other City funds. Amounts apportioned against other City funds shall be due when installments of special assessments levied for the same project are due, corresponding assessment rolls shall be charged interest as in the case of assessments and shall be credited to the fund, with any interest due, when collected. To the extent required by law, a tax for the City’s share of the cost shall be levied before any obligations against the funds are issued and sold. When a local improvement to be financed wholly or partly from special assessment is undertaken under any applicable statute, any provision of this subdivision inconsistent with the statute shall not apply.
   Subd. 6. A public utility fund into which shall be paid all money derived from the sale of obligations issued on account of any municipally owned utility and all money derived from the sale of utility services, and from the sale of any property acquired for or used in connection with any such utility. There shall be paid out of this fund the cost of the purchase, construction, operation, maintenance and repair of such utility, including the principal of and interest upon obligations which have been or shall be issued on its account. Separate accounts within the public utility fund shall be kept for all utilities which are operated separately.
   Subd. 7. In addition to the foregoing funds, there may be maintained in the City treasury, whenever the council deems it advisable, the following funds:
      (a)   One or more working capital or revolving funds, for financing self-sustaining activities not accounted for through other funds;
      (b)   One or more trust and agency funds, for the care and disbursement of money received and held by the City as trustee or custodian or in the capacity of any agent for individuals or other governmental units;
      (c)   Such other funds as may be required by statute or ordinance.
   Subd. 8. In lieu of establishing any of the types of funds specified in Subd. 7, the council may provide for the recording of operations or activities for which the use of such funds might be suitable through the maintenance of separate accounts in any appropriate fund already established. The council shall have full power by ordinance or resolution to make inter-fund loans, except from trust and agency funds, as it may deem necessary and appropriate from time to time.