General Fund
The primary operating fund for a city government, covering most day-to-day services like police, fire, parks, and administration.
How It Works
The general fund is the largest discretionary fund in most city budgets. It is supported primarily by tax revenue (property, sales, income) and is where elected officials have the most flexibility in spending decisions. Unlike enterprise funds or restricted grants, general fund dollars can be allocated to any city purpose. When people refer to a city's "budget," they usually mean the general fund, though total city spending includes many other funds.
Related Terms
- Enterprise Fund — A self-supporting government fund that operates like a business — charging user fees to cover costs for services like water, sewer, electric, or transit.
- Capital Budget — The portion of a city budget dedicated to long-term infrastructure investments like buildings, roads, vehicles, and technology systems.
- Operating Budget — The portion of a city budget covering recurring, day-to-day expenses like salaries, utilities, supplies, and ongoing program costs.
- Fund Balance — The accumulated surplus (or deficit) in a government fund — essentially a city's savings account. A healthy fund balance provides a cushion against revenue shortfalls.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.