Fund, how created, use

1. Any municipality in which any part of a district is located may, by ordinance, establish a community improvement district municipal fund in the municipality's treasury. 2. This fund may be used to: (1) Pay the costs of planning, administration and any improvement authorized in sections 67.1401 to 67.1571; (2) Prepare preliminary plans, studies and engineering reports to determine the feasibility of a public improvement or service; or (3) If ordered by the governing body of the municipality, pay the initial cost of the public improvement or service until obligations have been issued and sold. 3. The fund is not required to be budgeted for expenditure during any year, but the amount of the fund must be stated in the municipality's annual budget. The amount of the fund shall be based on an annual service plan that describes the public improvements and services for the fiscal year. 4. A grant-in-aid or contribution made to the municipality for the planning and preparation of plans for public improvement or service authorized pursuant to sections 67.1401 to 67.1571 may be credited to the community improvement district municipal fund. 5. Other political subdivisions may enter into cooperative agreements with the district to make payments in lieu of taxes.