[Anonymous]

Does anybody know the rules for which governmental fund receives the money when the funds are:

1) proceeds from bond issuance

2) special assessments

3) taxes

I am sure there are sub-categories, like taxes levied for blah blah go over there, whereas if they are not levied for a specific purcpose, but only pledged, then they go over here. Or if the taxes are for capital projects, then they go to whatchamacallit, but if they are to repay general purpose bonds, then they go to thingamajig.

I seem to get every single MCQ on this topic wrong. I say special revenue, they say capital projects. I say capital projects, they say debt service. I say debt service, well, you get the idea. I can’t seem to nail down the rules, so any assistance would be greatly appreciated. Thanks!

[Anonymous]

Well I dont quite follow your exact question but I get the jist of it.

How Govermental funds work is like this. If it is for a general purpose of operation you would put it in the general fund..salaries, supplies, etc…things that make the government work day to day.

Capital projects are delegated for say building infrastructure or building and are restriced for those usages only..When it comes to the debt service fund it gets a bit tricky. You have to know what the question is asking for because it can go in either.

Usually though the debt service fund is used to accumulate money to pay for things and the earnings are transferred out into other funds where need be. Special Revenue is only when it says explicitly it is set aside for a specific purpose…
Off the top of my head I dont remember what all the funds are but thats kind of the basis of it.

Proceeds from bonds would be debt service..

[Author]

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