Expenditures from this fund shall be used to maintain basic services which have been provided to residents by the city. Payments shall be used for the maintenance of levels of public employment and of basic services within the following governmental expenditure categories: education, highways, public welfare, health and hospitals, police and corrections, fire protection, sewerage and sanitation, natural resources, housing and urban renewal, transportation, libraries, financial administration, general administration, general public buildings, interest on general debt and parks and recreation. Payments may not be used to initiate basic services not previously provided during the immediately preceding two fiscal years of the city. Said funds may be used for the acquisition of supplies and materials only to the extent that such expenditures are incidental and necessary to the continued rendition of a basic service. Any expenditures for construction shall be limited to structural repairs or renovations and shall be permissible only when necessary for the maintenance of a basic service. Any interest earned on the investment of Title II funds shall be used for the same purpose as Title II funds.