The city shall maintain a balance in the guaranty fund during each calendar year that is at least equal to five percent of the principal amount of outstanding local improvement district bonds, warrants, notes and other obligations guaranteed by the guaranty fund. Should that balance fall below the required five percent, the city covenants to restore the balance on the guaranty fund to the required amount during the next fiscal year of the city, subject only to the limitations of RCW 35.54.060. Notwithstanding the foregoing, the city council may, with respect to the obligations issued on account of any local improvement district, require by ordinance that the minimum balance in the guaranty fund on account of such obligations be greater than is required by the first sentence of this section. (Ord. 2263 § 2, 1999; Ord. 85 § 2, 1961)