A. There shall be levied from time to time, as other taxes are levied, sums sufficient to meet the financial requirements of the local improvement guaranty fund. Whenever the city shall have paid out of the guaranty fund any sum on account of principal and interest on a local improvement bond, warrant or note guaranteed under this chapter, the city, as trustee for such fund, shall be subrogated to all of the rights of the owner of the bond, warrant or note so paid, and the proceeds thereof, or of the underlying assessments, shall become a part of such fund.

B. The city clerk/treasurer is authorized and directed to pay into the local improvement guaranty fund all interest received from bank deposits of and earnings from that fund, as well as any surplus remaining in any local improvement district fund guaranteed under the laws of the state of Washington after the payment of all outstanding bonds, warrants or notes payable primarily out of such local improvement district fund and any other money permitted by law to be deposited into the local guaranty fund. (Ord. 542 § 2, 1985).