Iowa Code Title IX. Local Government [Chs. 331-420] § 384.3. General fund

2. a. A city may establish an additional fund or a reserve savings account to pay costs associated with the acquisition, possession, and maintenance of major equipment for police, fire, rescue, or emergency medical services.  Moneys in a fund or account established under this paragraph may remain in the fund or account at the end of each fiscal year.

b. If a city has established an additional fund or a reserve savings account under paragraph “a” and has received a payment, award, judgment, or insurance settlement for damaged police, fire, rescue, or emergency medical services equipment or vehicles, the city shall deposit the moneys into the relevant fund or account rather than into the general fund of the city.  However, if a city uses moneys from its general fund to cover costs to repair or replace damaged police, fire, rescue, or emergency medical services equipment or vehicles, the city may deposit into its general fund an amount received from the payment, award, judgment, or insurance settlement that is equal to the amount used from the general fund.  The city shall deposit any remaining amount received from the payment, award, judgment, or insurance settlement into the relevant fund or account established under paragraph “a”.

c. If a city has established an additional fund under paragraph “a”, moneys remaining in the fund at the end of the fiscal year may be deposited into a reserve savings account.  Moneys in a reserve savings account shall be used for the purpose of maintaining or acquiring major equipment including vehicles.