There is created a cumulative reserve fund for the payment of claims for damages and judgments against the city of Aberdeen for any indemnified officer or employee of the city of Aberdeen. All funds now or hereafter transferred to this cumulative reserve fund shall be used only for the payment of claims for damages and judgments; adjustment, investigation, administration, and litigation expenses associated with such claims or judgments; and the purchase of insurance, membership in an insurance pool, or risk management services related to the purposes of this fund. A minimum of one hundred thousand dollars ($100,000.00) shall be maintained in said fund.