The Citizens of a Specific Area of the City of Arlington

question 55

Multiple Choice

The citizens of a specific area of the City of Arlington approved the construction of sidewalks in their residential neighborhood and approved a $1 million bond issue to finance construction of those sidewalks. The citizens agreed to a special assessment on their property for 20 years in an amount sufficient to pay principal and interest on the bonds. The city will oversee the construction of the sidewalks and act as agent for servicing the debt. If the special assessment is not sufficient to make the principal and interest payments, the city will assume the obligations.
-When the city collects the special assessment, it should be accounted for in which fund of the City of Arlington?

• A) Agency fund.
• B) Special assessment fund.
• C) Capital projects fund.
• D) Debt service fund.

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Definitions:

Exclusive Jurisdiction

A legal term indicating that only a specific court has the power to adjudicate a particular case or issue.

Federal Court

A court established by the federal government that has jurisdiction over questions of federal law and disputes between states or between the U.S. and foreign governments.

Diversity Jurisdiction

A legal principle allowing federal courts to hear cases where the parties are from different states or countries and the matter in dispute exceeds a specific monetary threshold.

Damages

Financial compensation awarded to a party in a legal case for losses or injuries suffered due to the actions or negligence of another.