No real property of the city shall be disposed of except by general ordinance. The city clerk shall give notice by publication for two (2) consecutive weeks that the proposed sale will be considered by the council at a public hearing at a time and place designated therein. The proceeds of any sale of such property shall be used as far as possible to retire any outstanding indebtedness incurred by the city in the purchase, construction, or improvement of this or other property used for the same public purpose, if there is no such outstanding indebtedness, the council may by resolution designate some other public use for the proceeds.