When governments construct projects that are financed with special assessment debt guaranteed by the government, those projects would be accounted for in the General Fund or a capital projects fund.

Question

Quizplus · Accepted Answer

If the government is liable, either primarily or secondarily, for the payment of special assessment debt in the event of default by the property owners, the transactions are handled if as if it were a government project. A capital projects fund should account for the proceeds of the debt and the construction expenditures.

When Governments Construct Projects That Are Financed with Special Assessment