What are Government Funds?

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