Which fund is used for funds that are restricted for use in debt service?

The Debt Service Fund is specifically designed to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. This fund is established to ensure that funds are set aside and utilized strictly for servicing debt obligations, such as payments for bonds or loans.

One of the primary features of a Debt Service Fund is its focused purpose; it is restricted in that the resources within this fund can only be used for debt service requirements. This organization helps governments manage their debt in a systematic manner to ensure that they meet their financial obligations while maintaining accountability and transparency.

The General Fund is meant for general operations of the government and is not restricted for any particular purpose, making it different from the Debt Service Fund. The Capital Projects Fund is used for funding the acquisition or construction of major capital assets, which is unrelated to debt service. The Enterprise Fund is used for activities that are financed and operated in a manner similar to private business enterprises, typically relying on user charges rather than tax revenues, which also does not pertain to debt service. Thus, the Debt Service Fund is the correct choice for funds that are specifically restricted for repayment of debt obligations.