APPROVAL BY CITY OF NASSAU BAY

(a) Except as provided by Subsection (c), the district must obtain the approval of the City of Nassau Bay for: (1) the issuance of bonds for an improvement project; (2) the imposition of a sales and use tax; (3) the plans and specifications of an improvement project financed by the bonds; and (4) the plans and specifications of an improvement project related to the use of land owned by the City of Nassau Bay, an easement granted by the City of Nassau Bay, or a right-of-way of a street, road, or highway. (b) The approval obtained under Subsection (a)(1) or (2) must be a resolution or ordinance of the governing body of the City of Nassau Bay. The approval obtained under Subsection (a)(3) or (4) may be by an administrative process that does not involve the city's governing body. (c) If the district obtains the approval of the City of Nassau Bay's governing body of a capital improvements budget for a period not to exceed five years, the district may finance the capital improvements and issue bonds specified in the budget without further approval from the City of Nassau Bay. (d) The City of Nassau Bay and the district may agree on conditions for obtaining the approval of the city under this section, including an agreement for the approval of a sales and use tax that requires the district to abolish or decrease the rate of the tax if the rate, when combined with other local sales and use taxes, results in a combined tax rate that exceeds the maximum rate under Section 321.101(f), Tax Code, at any location in the district.