Texas Special District Local Laws Code - SDLL § 8815.104. Purchase of Water From Another Entity

(a) If the authority purchases water from another entity for resale to local governments, the authority shall use its best efforts in negotiating with the entity to determine the amount of capital costs included in any rates or charges paid by the authority. The authority shall determine the amount of expected capital costs of its own system.

(b) The authority shall provide each member district information regarding the share of the capital costs to be paid by the member district, as determined by the authority, and shall provide each member district the opportunity, in a manner and by a procedure determined by the authority, to fund its share of the capital costs with proceeds from the sale of bonds or fees and charges collected by the member districts. A member district may use any lawful source of revenue, including bond funds, to pay any sums due to the authority.