---
title: What are Government Funds?
description: Montana local governments use governmental funds to manage core operations and projects. These include the General Fund for daily operations, Special Revenue Funds for restricted-use revenues, Capital Project Funds for infrastructure, and Debt Service Funds for repaying long-term obligations—ensuring transparency and financial control.
---

[Skip to content](https://www.lgc.montana.edu/knowledge-base/what-are-government-funds#main-content)

English

Show submenu for translations

[More support](https://www.lgc.montana.edu/knowledge-base/kb-tickets/new?hsLang=en) [Ticket System Portal](https://lgc.montana.edu/tickets-view?hsLang=en)

[![LGC Color-1](https://www.lgc.montana.edu/hs-fs/hubfs/LGC%20Color-1.png?width=100&height=100&name=LGC%20Color-1.png)](https://www.montana.edu/extension/localgov/index.html)

- [Submit a Ticket](https://www.lgc.montana.edu/knowledge-base/kb-tickets/new)
- [View Tickets](https://lgc.montana.edu/tickets-view)
- [Subscribers Portal](https://www.lgc.montana.edu/governance-annual-support-package-hub)

Open main navigation

Close main navigation

- [Submit a Ticket](https://www.lgc.montana.edu/knowledge-base/kb-tickets/new)
- [View Tickets](https://lgc.montana.edu/tickets-view)
- [Subscribers Portal](https://www.lgc.montana.edu/governance-annual-support-package-hub)
- English
  
  Show submenu for translations
- [More support](https://www.lgc.montana.edu/knowledge-base/kb-tickets/new)
- [Ticket System Portal](https://lgc.montana.edu/tickets-view)
- [Request a Training](https://40zxa7.share-na2.hsforms.com/2mMH41wA3QYGtjwc4OPWO3w)

[Request a Training](https://40zxa7.share-na2.hsforms.com/2mMH41wA3QYGtjwc4OPWO3w)

 How can we help you?

- There are no suggestions because the search field is empty.

1. [MSU Extension Local Government Center](https://www.lgc.montana.edu/knowledge-base?hsLang=en)
2. [Glossary of terms](https://www.lgc.montana.edu/knowledge-base/glossary-of-terms?hsLang=en)

March 18, 2026

# What are Government Funds?

## Governmental Funds: Structuring Public Finances in Montana Local Government

Governmental funds are those through which most governmental functions are financed. The following are examples of governmental funds:  
• General fund — accounts for all financial resources except those required to be accounted for in another fund. The General Fund is the government’s primary operating fund.  
• Special revenue funds — account for the proceeds of specific revenue sources that are legally  
restricted by an outside third party to expenditures for specified purposes (other than for major capital projects). Examples include: state and federal grants, gas tax, street maintenance district, tree maintenance district, etc.  
• Capital project funds - account for financial resources to be used for the acquisition or  
construction of major capital facilities (other than those financed by proprietary funds.) Examples include: City Hall renovation, police station construction, etc.  
• Debt service funds - account for the accumulation of resources for and the payment of, principal and interest on general long‐term debt. Examples include: city hall debt repayment, police station debt repayment, etc.

 

Montana Municipal Officials Handbooks 3rd Edition, Section 5.303

- [FAQs](https://www.lgc.montana.edu/knowledge-base/faqs?hsLang=en)
- [Process guides](https://www.lgc.montana.edu/knowledge-base/process-guides?hsLang=en)
- [White papers](https://www.lgc.montana.edu/knowledge-base/white-papers?hsLang=en#main-content)

    - [Voter Review](https://www.lgc.montana.edu/knowledge-base/white-papers?hsLang=en#voter-review)
- [Glossary of terms](https://www.lgc.montana.edu/knowledge-base/glossary-of-terms?hsLang=en)
- [Product or service descriptions](https://www.lgc.montana.edu/knowledge-base/product-or-service-descriptions?hsLang=en)
- [Online Courses](https://www.lgc.montana.edu/knowledge-base/online-courses?hsLang=en)

- [LGC Services and Pricing](https://www.lgc.montana.edu/knowledge-base/service-and-pricing)
- [Request a Training](https://40zxa7.share-na2.hsforms.com/2mMH41wA3QYGtjwc4OPWO3w)
- [Ask the LGC Team a Question](https://40zxa7.share-na2.hsforms.com/2_ory1YLOQQe3qA3hzpNAkg)

[![LGC Color-2](https://www.lgc.montana.edu/hs-fs/hubfs/LGC%20Color-2.png?width=100&height=100&name=LGC%20Color-2.png "LGC Color-2")](https://www.montana.edu/extension/localgov/index.html)

Resources prepared by the MSU Extension Local Government Center are intended for educational purposes only and do not constitute legal advice. For interpretation or application of the law, please consult qualified legal counsel. The Montana State University Extension Service is an ADA/EO/AA/Veteran’s Preference Employer and Provider of Educational Outreach.

Copyright © 2026