What is the primary purpose of a debt service fund?

The primary purpose of a debt service fund is to account for resources specifically set aside for the payment of long-term general obligation debt. This type of fund is essential for governments that issue bonds and other forms of debt to ensure that they can meet their repayment obligations. By segregating resources in a debt service fund, a government can better manage its cash flow and ensure that there are sufficient resources available to make scheduled payments of principal and interest on its outstanding debt obligations.

In the case of a debt service fund, the focus is specifically on servicing existing debt rather than generating new capital or covering operational costs. This is why the other choices relate to different aspects of governmental financial management. For example, funding new capital projects pertains to capital project funds, while managing operational costs relates to general fund activities, and expenditures for education programs would fall under specific programmatic funds. Thus, the correct answer directly aligns with the unique function that a debt service fund serves within the broader context of government finance.