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→State and Local Government: part 2
*'''Debt Service Fund''': These funds (also called '''interest and sinking funds''') account for funds used to pay long-term debts. Bonds issued by a government, to be paid with tax levies over a period of years, nearly always require an associated debt service fund (and each separate bond package will have its own fund). As with capital project funds, once the bonds and associated interest are repaid, the fund ceases to exist.
*'''Debt Service Fund''': These funds (also called '''interest and sinking funds''') account for funds used to pay long-term debts. Bonds issued by a government, to be paid with tax levies over a period of years, nearly always require an associated debt service fund (and each separate bond package will have its own fund). As with capital project funds, once the bonds and associated interest are repaid, the fund ceases to exist.
*'''Permanent Fund''': These funds account for resources (such as endowments) where only the earnings can be spent, and usually only for a specific purpose. An example would be a permanent fund given by a wealthy benefactor to maintain the city founder's house as a museum.
*'''Permanent Fund''': These funds account for resources (such as endowments) where only the earnings can be spent, and usually only for a specific purpose. An example would be a permanent fund given by a wealthy benefactor to maintain the city founder's house as a museum.
===Proprietary Funds===
These funds generally include:
*'''Internal Service Fund''': These funds are used for operations which serve other funds or departments, and are reimbursed at cost. An example would be an in-house print shop; if the code enforcement department needed new warning forms for citizens not mowing their lawns, it would order them from the print shop, and a portion of their funding would be transferred to the print shop.
*'''Enterprise Fund''': These funds operate much like a private business, in that their operations are (nearly completely) funded solely by user fees. A common one is a city water department, which bills customers a set rate per account and a rate per gallon of water used.
===Fiduciary Funds===
These funds are used to account for assets held in trust for '''the benefit of other individuals or entities''' (this differs from a Permanent Fund, which is held for the benefit of the entity itself, though restricted). An example would be a self-administered pension plan.