Which fund is typically used for capital improvement projects in a municipality?

The Capital Improvement Fund is specifically designed to finance capital improvement projects within a municipality. This fund allows for the planning and execution of projects that enhance public infrastructure, such as roads, buildings, parks, and other essential community services. By using a dedicated fund for these capital projects, municipalities can effectively allocate resources over the long term and ensure that necessary improvements are prioritized and funded appropriately.

In contrast, the Operating Budget is generally used for day-to-day expenses, covering operational costs like salaries, utilities, and routine maintenance—not for significant capital investments. The Debt Service Fund focuses on managing repayments of borrowed funds, primarily for past capital projects, rather than for new projects. The Trust Fund typically holds funds for specific purposes based on legal or contractual obligations and is not exclusively reserved for capital improvements.

Thus, the Capital Improvement Fund is the correct choice, as it is explicitly intended for financing large scale and long-term projects that are critical for a municipality's development and sustainability.