A. There is hereby created a fund, to be known as the local improvement assistance fund, to be used for the payment of construction costs or for the retirement of debt incurred by the City in connection with local improvement projects on which the payment of assessments has been deferred under BC 3.04.010 through 3.04.055.

B. The initial funds for the local improvement assistance fund shall consist of an amount not to exceed 20 percent of the assets of the City’s assessment fund that are not directly committed for the ensuing fiscal year. The local improvement assistance fund shall be replenished from time to time by interest payments on deferred accounts, payments made when deferments are terminated and by additional revenue from the assessment fund.

C. Deferments shall be granted on a first come, first served basis during each year to the extent that funds are available in the local improvement assistance fund. At no time shall outstanding assessment payment deferrals exceed 20 percent of the uncommitted assets of the City’s assessment fund.