Special Districts Can Be Formed in Three Different Ways

question 37

Multiple Choice

Special districts can be formed in three different ways. Which of the following is NOT one of them?

• A) The Federal government can issue a mandate establishing a special district where there is a local need.
• B) States can create them through special enabling legislation.
• C) General-purpose local governments may adopt a resolution establishing a special district.
• D) Citizens may initiate districts by petition, which is often followed by a referendum on the question.

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Definitions:

Financial Condition

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Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Cash Flow

The gross amount of capital circulated in and out of an enterprise, directly affecting its ability to meet immediate expenses.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.