(a) By resolution, the governing body of a municipality:
(1) may designate an area as a special taxing district; and
(2) shall create a special fund with respect to the special taxing district.
(b) A resolution creating a special fund under subsection (a) of this section shall:
(1) pledge to the special fund the proceeds of the ad valorem or special tax to be imposed as provided under § 21-414 of this subtitle; and
(2) require that the proceeds from the tax be paid into the special fund.