The city of Westminster is installing new street lights in one of its neighborhoods. This project is considered to be a major general government capital project that the city deems will directly benefit the property owners. On January 1, 2017, the city issued $10,000,000 in long-term bonds to pay for the cost of building and installing the new lighting system. The city assessed a $11,000,000 property tax levy on the benefited property owners on June 1, 2017 to service the $10,000,000 bonds and related interest when due; $1,100,000 in property taxes are due from the property owners each year for 10 years, beginning in the year the property taxes were levied. As of 12/31/17 (the end of the year in which the special assessment property taxes were levied) the city had incurred $7,000,000 in capital outlay expenditures on the project.

1. As of the citys 12/31/17 year-end, what amount of special assessment property tax revenues should Westminster record in the Capital Projects Fund assuming all relevant revenue recognition criteria have been met?

1. $0
2. $1,100,000
3. $7,000,000
4. $11,000,000

True or False: The city would not record the special assessment bond principal of $10,000,000 in its GLTL if the city were not legally liable in any way for the long-term bonds issued for the special assessment lighting project