A. Purpose: The purpose of the capital endowment fund is to establish a fund in the nature of an endowment that, with the interest derived therefrom, will from time to time provide for many of the capital improvements needs of the city.
B. Principal Of Fund: The principal of the capital endowment fund may not be used, expended, encumbered, or pledged for any purpose whatever except for acquisition of real estate which the city council deems necessary to assure the development of future capital improvements, or except for replacement or repair in a dire emergency of capital improvements destroyed or substantially damaged by a disaster after a finding by the city council that such a disaster does in fact exist and an emergency is declared. Any determination to use, expend, encumber or pledge any principal of the capital endowment fund shall require a three- fourths (3/4) vote of the city council.
C. Interest Income: Interest income produced by the capital endowment fund need not be appropriated or expended annually by the city council. Interest not expended or appropriated in a fiscal year shall be added to and become a part of the principal of such fund. (Ord. 2002-03, 1-29-2002)