(a) Premiums and discounts on investments shall be credited to or against interest and amortized over the period from purchase to the date of maturity of the security. Gains and losses shall be credited to or paid from interest.
(b) Net interest realized by the investments shall be distributed as follows:
(1) Interest on the Water Fund, the Sewer Fund, the General Fund and other funds shall be paid to each of the respective funds;
(2) Interest on the Street Maintenance and Repair Fund and the State Highway Fund shall be paid to the General Fund.
(c) For the purpose of distributing interest, each fund shall be considered as having, during the period for which distribution is to be made, an average daily balance equal to the average of the balances of each such fund on the first day of each month during the period for which distribution is to be made.
(d) The Clerk-Treasurer shall, with the knowledge and consent of Council, allocate the net interest earned on investments since October, 1978, as described in this section.