Sec. 5010.0501. AUTHORITY TO ISSUE BONDS; ELECTION; TAXES FOR BONDS. (a) The district may issue bonds when the board finds that the bonds are necessary by an order entered of record in the board's minutes. The district may issue bonds to obtain money for any lawful purpose provided for in this chapter that the board considers necessary.

(b) The board shall direct the district engineer to prepare an estimate of the cost of necessary repairs, extensions, or additional improvements, together with all expenses incident to those repairs, extensions, or additional improvements, or the board on the board's own motion may prepare such an estimate.

(c) The board shall order an election to be held to determine whether district bonds shall be issued in an amount sufficient to pay the costs and expenses contained in the estimate prepared under Subsection (b). The election shall be held in accordance with Chapter 1251, Government Code. The board shall perform the duties and do all acts and things provided to be done by the governing body of a municipality, as provided by that chapter. The ballots at the election shall be printed as required by Chapter 1251, Government Code.

(d) If bonds have been voted, the board shall impose an annual ad valorem tax on all taxable property in the district sufficient to:

(1) pay the interest on the bonds;

(2) create a sinking fund to redeem and discharge the bonds at maturity; and

(3) pay the expense of imposing the tax.

Added by Acts 2019, 86th Leg., R.S., Ch. 495 (H.B. 4666), Sec. 1, eff. September 1, 2019.