A municipality may issue bonds for certain nontoll highway-system projects, may pledge revenues and taxes to pay them, and the bonds must mature within 40 years.
Sec. 1510.002. AUTHORITY TO ISSUE BONDS. (a) A municipality may issue bonds to provide funds for the design, development, financing, construction, maintenance, operation, extension, expansion, or improvement of a nontoll project or facility on the state highway system located in the municipality or, as a continuation of the project or facility, in an adjacent jurisdiction. (b) To provide for the payment of bonds issued under this section, a municipality may: (1) pledge revenue from any available source, including payments received under an agreement with the Texas Department of Transportation including under Section 222.104, Transportation Code; (2) pledge, levy, and collect taxes, subject to any constitutional limitation; or (3) pledge any combination of revenue and taxes described by Subdivisions (1) and (2). (c) Any election required to permit action under Subsection (b) must be held in conformance with the Election Code or other law applicable to the municipality. (d) A municipality that issues bonds under this section may exercise any of the rights and powers granted to the governing body of an issuer under Chapter 1371. (e) A bond issued under this section must mature not later than 40 years after its date of issuance. (f) This section is wholly sufficient authority for the issuance of bonds, the pledge of revenues, taxes, or any combination of revenues and taxes, and the performance of other acts and procedures authorized by this section by a municipality without reference to any other provision of law or any restriction or limitation contained in those provisions, except as specifically provided by this section. To the extent of any conflict or inconsistency between this section and any other law, this section shall prevail and control. A municipality may use any law not in conflict with this section to the extent convenient or necessary to carry out any power or authority, expressed or implied, granted by this section. Added by Acts 2007, 80th Leg., R.S., Ch. 426 (S.B. 1536), Sec. 1, eff. June 15, 2007.