(a) A state agency, political subdivision, or road district of a county may contract with a transportation corporation created by the commission under Chapter 431 or with another state agency, political subdivision, or road district to jointly pay all or part of the cost of:(1) acquiring, designing, constructing, improving, or beautifying a state or local highway, turnpike, road, or street project;(2) acquiring an interest in any real property required for or beneficial to the project; and(3) adjusting utilities for the project.(b) Costs of a project or payments required under a contract may be met out of bond proceeds, taxes, or other funds available for that purpose.(c) A road district of a county or a political subdivision may:(1) issue bonds to pay costs of a project if it determines the project will benefit it; or(2) impose taxes in an amount necessary to create a sinking fund for payments required by a contract that provides for payment over a term of years. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.