The city of Silerville operates a water authority that sells water to city residents. Each new customer is required to pay a $75 deposit at the time of hookup. The deposit cannot be spent, but is returned with interest if the customer maintains a satisfactory payment record for two years. The city should record these deposits

a. in a Private-Purpose Trust Fund.

b. as restricted cash and a liability payable from restricted assets in the Water Fund.

c. as unrestricted cash and a long-term liability in the Water Fund.

d. as unrestricted cash and a liability payable from restricted assets in the General Fund.

e. None of the above.