Special Revenue Funds account for revenues from specific taxes or other earmarked sources that are designated to finance particular activities of Government. Special Revenue Funds. These are funds used to finance particular activities from the receipts of specific taxes or other revenue. Such a fund is created by constitution or statute to provide certain activities with definite and continuing revenues. After the fund is created, it usually continues year after year until discontinued or revised by equivalent authority. Accounting transactions are treated the same as they are in the General Fund.

Capital Projects funds account for resources used for the acquisition or construction of major capital assets by a government unit.

Examples of Capital Project Funds Include:

Roadway Improvements - One of the most common capital project types in cities is the improvement of roadways.  This includes rebuilds, intersection improvements, "overlaying" the existing asphalt and other similar projects.  These often include grant funds in their revenues which makes it even more important to keep them separate.

Building Construction / Renovation - Another common type is the building of new facilities or renovation of existing ones.  City hall, park buildings, shops and other public buildings constitute a capital project.

Park Improvements - It is amazing how expensive it is to get good drainage at a park (remember, this is the finance director talking, not the parks director).  The cost of park projects, like drainage improvements, ball field improvements, playgrounds and others are capital projects.