If the city keeps court costs in an interest-bearing account, what happens to the interest?

When a city keeps court costs in an interest-bearing account, it is allowed to retain the interest earned from that account as long as it adheres to reporting requirements. This means that as long as the city manages the funds responsibly and reports appropriately—often on a regular basis or as dictated by local or state regulations—it can benefit from the interest accrued. This practice provides an incentive for municipalities to manage court funds effectively, allowing them to supplement their budgets with these earnings, which can support various city programs and services.

The other options reflect scenarios that do not align with the typical financial management practices of municipalities regarding interest earned on designated funds.