A City's Current Year Total Revenues in Its General Fund

A city's current year total revenues in its General Fund was $34,000,000. The General Fund receives an annual transfer in from its Water and Sewer Enterprise Fund of $2,000,000. The General Fund also has an annual transfer out to the Debt Service Fund of $1,000,000 to help pay for principal and interest on bonds and a one-time transfer out to the Capital Projects Fund of $2,500,000. The city's net change in fund balance in its General Fund was a positive $900,000. What is the city's operating margin for its General Fund?

A) 2.8%
B) 2.7%
C) 2.6%
D) 2.5%