The citizens of a geographic area of the National City authorized a special assessment to be imposed on their properties to finance the reconstruction of the infrastructure of the sewerage system that serves the area. The city will solicit bids, oversee the reconstruction, issue the debt in the city's name, and pay the debt. The city is not bound in any way by the debt, but will collect special assessments and make principal and interest payments to bondholders.

1. Explain the use and purpose of the Capital Projects Fund for the National City construction project. (Funds related with governmental issues).