Which fund is designed to support activities outside debt service and capital projects?

The special revenue fund is specifically designed to account for the proceeds of special revenue sources that are legally restricted to specific purposes other than debt service or capital projects. This means that the funds collected, such as grants or taxes designated for a particular purpose, can only be used for designated activities that benefit the public, such as parks, education, or social services.

The general fund, in contrast, is the main operating fund of a government and supports a wide range of activities, but its uses are not as limited as those of a special revenue fund. Capital projects funds are specifically intended for acquiring, constructing, or improving capital assets. Lastly, debt service funds are focused solely on the servicing of debt, including the payment of principal and interest on long-term obligations. Each of these funds serves distinct purposes, but only the special revenue fund is tailored for activities outside of debt service and capital projects.