What is NOT an appropriate use of a capital projects fund?

The correct choice identifies that "To accumulate resources for future capital improvements" is not an appropriate use of a capital projects fund. Capital projects funds are specifically designed for accounting for the acquisition or construction of major capital assets. They are typically used to track expenditures related to specific projects, such as building a new facility or upgrading existing infrastructure.

A significant feature of capital project funds is that they focus on the actual project in progress rather than on accumulating resources for future projects. While municipalities and organizations may plan for future capital improvements, those funds would be better managed and accounted for within other types of funds that focus on reserve management or future planning.

In contrast, the other choices reflect appropriate uses of a capital projects fund. Financing a major capital acquisition through borrowing or contributions directly ties into the purpose of these funds, which is to manage the financial aspects of specific projects as they occur. Therefore, selecting option B correctly identifies a scenario that does not align with the primary purpose of a capital projects fund.