Final answer:
The $15,000 donation given by a local civic organization to the city government should be accounted for in a Private-purpose trust fund, which ensures the funds are used specifically to aid individuals whose incomes are below the poverty level as intended by the gift.
Step-by-step explanation:
The local civic organization's $15,000 cash gift to the city government for the purpose of paying the utility bills of persons with incomes below the poverty level should be accounted for in a Private-purpose trust fund. This type of fund is used when the government is the trustee for the benefit of individuals, private organizations, or other governments. Since the money comes with specific instructions on its use for private citizens (those below the poverty level), it does not qualify for the general fund, which is for broader public purposes without such restrictions. An investment trust fund is used for external investment pools, while a permanent fund is designed for resources that the government is not permitted to spend the capital or principal amount (endowment). Therefore, in this scenario, the private-purpose trust fund is the correct account for these funds as it ensures the money is used for the specific purpose intended by the donors and for the benefit of private individuals, which aligns with the guidelines of such a fund.