(A)   For the purpose of this section, "CAPITAL IMPROVEMENT" shall mean the purchase of real property or any building or buildings for use by the city in any governmental or proprietary function of the city or the construction or improvement of any city-owned property, easements, or rights-of-way, including but not limited to streets, thoroughfares, and sewers, but shall not include salaries of any public officials or employees, except that directly chargeable to such improvements.
   (B)   In accordance with the requirements of state law, there is created a special fund to be known as the cumulative capital improvement fund into which the cigarette taxes allotted to the city by reason of state law shall be deposited.
   (C)   The fund shall be a cumulative fund and all of the moneys deposited into the fund shall be appropriated and used solely for capital improvements and none of such moneys shall revert to the general fund or be used for any purposes other than capital improvements.
   (D)   The funds may also be used to retire any general obligation bonds of the city issued for the purpose of purchase or construction of improvements which would qualify for use of such funds.
('75 Code, § 2-1)