The city of Nancy is installing a lighting system in the Harvey Subdivision, which is considered to be a major general government capital project for the city. The system is being financed by levying $500,000 of special assessments on benefitted property owners and transferring $750,000 (in the next year) from the General Fund. $100,000 of these assessments were due and collected during the current year. Also, as of the end of the fiscal year, the city had incurred expenditures of $750,000 on the project.

The effect of the preceding transactions on the net change in fund balance of the Capital Projects Fund for the fiscal year would be

a. a decrease of $750,000.

b. a decrease of $250,000.

c. a decrease of $650,000.

d. an increase of $500,000.

e. None of the above.