Which fund is specifically used for improving infrastructure?

The correct choice is the Capital Project Fund, which is specifically designated for the financing and improvement of infrastructure projects. This fund is utilized by municipalities to account for resources that are specifically allocated for the acquisition, construction, and renovation of capital assets such as roads, bridges, and public buildings. The Capital Project Fund allows a government entity to track expenditures and funding sources for these infrastructure enhancements separately from other budgetary activities, ensuring transparent management of public funds earmarked for long-term investments in community physical assets.

The other funds mentioned serve different purposes. The Debt Service Fund is intended for managing debt obligations and ensuring that debt payments are met. The Balanced Budget Fund is not a standard fund type typically used in government accounting; it generally refers to an overall budgetary principle rather than a specific fund. The Contingency Fund is used for unforeseen expenses and helps cover unexpected costs, but it is not focused on systematic infrastructure improvement.