Read the scenario.

The citizens of Woodsville voted to approve a local tax increase so that their city government could develop a community park for residents, who could use it cost-free for exercise and gatherings.

Why is a tax increase necessary for the development of a community park in Woodsville?

The city of Woodsville has spent more funds than it has collected.
The city of Woodsville does not provide any public goods or services.
The city of Woodsville has a balanced budget requirement.
The city of Woodsville does not receive state or federal funds.



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