Assume that on July 1, year 6, The town council of the town of X authorized the establishment of a special Revenue Fund- its first such fund- to account for Special Assessment against certain...

Assume that on July 1, year 6, The town council of the town of X authorized the establishment of a special Revenue Fund- its first such fund- to account for Special Assessment against certain residents of the neighboring village of Y. Because the property tax revenue of the town of X, which among other services financed street cleaning and street light maintenance for residents of the town only, could not be used for such services elsewhere, the town council authorized special assessment to finance comparable services for the requesting residents of the village of Y. the town council adopted a budget for the special revenue fund for the year ending June 30 year 7, providing for estimated revenues (from the special Assessments) of 800,000 and appropriations for reimbursement to the General fund for expenditures made by that fund for the services provided to the village of Y residents) of 75,000.