A. Upon certification by the city finance director that the local improvement guaranty fund has sufficient funds currently on hand to meet all valid outstanding obligations of the fund and all other obligations of the fund reasonably expected to be incurred in the near future, the council may by ordinance transfer assets from the local improvement guaranty fund to the general fund.

B. The net cash of the local improvement guaranty fund may be reduced by such transfer to an amount not less than 10 percent of the net outstanding obligations guaranteed by such fund.

C. If, within five years of any such transfer from the local improvement guaranty fund to the general fund, the net cash in the guaranty fund is reduced below the minimum amount of 10 percent of the outstanding and foreseeable obligations, the city shall pay valid claims against the guaranty fund from the general fund, up to the total amount transferred, and shall in addition pay all reasonable costs of collection necessarily incurred by the holders of valid claims against the guaranty fund, from the general fund. [Ord. 9536, 1986].