Final answer:
The Debt service phase of capital project special assessment phases (2) is a phase in the Debt Service Fund where revenue from special assessments is used to pay off debt. The Debt Service Fund is used to account for and track resources for debt service activities.
Step-by-step explanation:
The Debt service phase of capital project special assessment phases (2) is a phase in the Debt Service Fund where the revenue generated from the special assessment levied on properties is used to pay off the debt incurred for the capital project.
The Debt Service Fund is a type of fund used by governments and other entities to account for and track the resources set aside for debt service activities.
During the Debt service phase, the entity responsible for the capital project collects the special assessment from property owners and transfers it to the Debt Service Fund.
The funds in the Debt Service Fund are then used to make principal and interest payments on the debt associated with the capital project.