Tex. Gov't Code Section 1501.254
Ordinance Authorizing and Issuance of Bonds


(a)

When the designs, plans, and specifications of the water supply project of the river authority are complete to the extent that they have been approved by the governing bodies of the authority and the municipality, the governing body of the municipality by ordinance may authorize the issuance of revenue bonds in the amount estimated to be sufficient to pay:

(1)

the entire cost of the water supply project to be incurred by the river authority, including interest during construction; or

(2)

the portion of the cost of the water supply project the municipality has contracted to pay.

(b)

The governing body of the municipality may issue the bonds in an amount sufficient to pay:

(1)

the cost of providing the facilities described by Section 1501.253 (Water Supply Project Ownership and Responsibilities)(d), including any land, easement, or right-of-way needed for a facility; and

(2)

interest during construction.

(c)

The ordinance may reserve the right, and specify the conditions under which the right may be exercised, to issue additional revenue bonds on a parity with or subordinate to the original bonds.

(d)

The ordinance must provide that all deposits to the credit of the interest and sinking fund, the reserve fund, or another fund must be made from the revenue from the waterworks system of the municipality, or the waterworks and sanitary sewer system of the municipality if those systems are combined.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Source: Section 1501.254 — Ordinance Authorizing and Issuance of Bonds, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­1501.­htm#1501.­254 (accessed Jun. 5, 2024).

1501.001
Applicability of Subchapter
1501.002
Authority to Issue Bonds
1501.003
Pledge of Revenue
1501.004
Authority to Issue Additional Bonds
1501.005
Contracts
1501.006
Rates for Service
1501.007
Other Law Applicable
1501.051
Authority to Use Utility Revenue for Sinking Fund or Interest Payments
1501.052
Effect on Taxes
1501.101
Authority to Acquire and Operate Texas-new Mexico Electric Plant and System
1501.102
Authority to Issue Revenue Bonds
1501.103
Authority to Sell Electricity of Plant and System
1501.151
Authority to Issue Certificates of Indebtedness
1501.152
Notice of Intention to Issue Certificates of Indebtedness
1501.153
Petition
1501.154
Maturity
1501.155
Signatures
1501.156
Sale of Certificates
1501.157
Use of Proceeds
1501.158
Imposition of Ad Valorem Tax
1501.201
Applicability of Subchapter
1501.202
Definitions
1501.203
Authority to Issue Bonds
1501.204
Pledge of Revenue
1501.205
Notice of Intention to Issue Bonds
1501.206
Petition
1501.207
Sale of District Property
1501.208
Interest and Sinking Fund of District
1501.209
Investment of Money in Interest and Sinking Fund
1501.210
Payment of Outstanding Bonds
1501.211
Ordinance Specifying Date of Passage of Title
1501.212
Operation and Management of Properties
1501.213
Segregation of Properties
1501.251
Applicability of Subchapter
1501.252
Alternative Financing Procedure
1501.253
Water Supply Project Ownership and Responsibilities
1501.254
Ordinance Authorizing and Issuance of Bonds
1501.255
Notice of Intention to Issue Bonds
1501.256
Petition
1501.257
Maturity
1501.258
Signatures
1501.259
Sale of Bonds
1501.260
Interim Bonds
1501.261
Rates, Tolls, and Charges
1501.262
Deposit and Use of Bond Proceeds
1501.263
Refunding Bonds
1501.264
Conflict with Other Law

Accessed:
Jun. 5, 2024

§ 1501.254’s source at texas​.gov