In accordance with RCW Chapter 35.54, there is created in the office of the city clerk/treasurer a fund for the purpose of guaranteeing, to the extent of such fund, the payment of bonds, warrants and notes of the city issued to pay for any local improvement ordered in local improvement districts in the city or in any area wholly or partly outside its corporate boundaries. This fund shall be designated the local improvement guaranty fund and is sometimes referred to in this chapter as the guaranty fund. (Ord. 542 § 1, 1985).