The municipal arts council, with the approval of the city governing body, may build, lease, lease-purchase, or purchase office space for the municipal arts council and purchase a site therefor. Such lease, purchase, or contract shall not be valid without the approval of the governing body of the city. Prior to any actions on such proposals, the governing body shall hold a public hearing on the proposals. Notice of the hearing shall be published at least once, not less than six days prior to the hearing, in a newspaper of general circulation within the city. The governing body shall seek the advice and comment of the general public at the hearing. After such hearing, the governing body of a city may establish by resolution a municipal arts council building fund for the purpose of construction, enlargement, or alteration of a building or for the purchase of an existing building to be used for offices for the municipal arts council. The city auditor shall place in the building fund all moneys for such purposes as may be appropriated by the governing body or received for such purposes from federal, state, county, city, or private sources. The building fund shall not revert to the general fund of the city without authorization by formal resolution from both the municipal arts council and the governing body of the city.