Health & Safety Code Section 362.016
Payment of Contract from Taxes
(a)A public agency that has taxing power and that, when it enters into a contract under Section 362.014 (Public Agency Contract), is using its general funds, including tax revenue, to pay all or part of the cost of providing solid waste collection, transportation, and disposal services may agree that the payments under the contract are an obligation against the public agency’s taxing power.
(b)Except as provided by Subsection (c), a person is not entitled to demand payment from taxes during any period unless the contracting person is willing and able to receive and dispose of solid waste during the period as provided by the contract.
(c)A public agency that has taxing power may hold an election substantially in accordance with Chapter 1251 (Bond Elections), Government Code, applicable to issuance of bonds by a municipality to determine whether a contract may be an obligation secured by the taxing power of the public agency to an extent not permitted by Subsection (b). If it is determined by a favorable vote at the election that the public agency is authorized to levy an ad valorem tax to make all or part of the payments under the contract, and that the payments are to be made unconditionally regardless of whether the contracting person is willing and able to receive and dispose of solid waste as provided by the contract, the contract is an obligation secured by the public agency’s taxing power to the extent provided. The ballot proposition at the election must plainly state that ad valorem tax funds may be used to make contract payments if the contractor cannot receive or dispose of solid waste because of mechanical failure of the facility financed by the bonds or for other reasons.
Section 362.016 — Payment of Contract from Taxes,
https://statutes.capitol.texas.gov/Docs/HS/htm/HS.362.htm#362.016 (accessed Nov. 25, 2023).