Adams County Has Outstanding $10 Million in Bonds Issued by the County

Adams County has outstanding $10 million in bonds issued by the County to construct a sewer system in a specific area of the county.The taxpayers in that area voted for the construction and the bonds and agreed to assess themselves to pay the principal and interest on the bonds.The County contracted for the construction and issued the bonds but the City assumed no legal or moral obligation for the bonds.If the special assessment payments are not sufficient to make the required principal and interest payments, the County will not make up the difference.The $10 million of bonds should appear in which fund financial statements or schedule?

A) Capital Projects Fund.
B) Special Assessment Fund.
C) Schedule of Long-term Obligations.
D) The bonds should not appear on the face of the financial statements of Adams County.