(a) Except as provided by Subsection (b), the district must obtain the approval of the city for:
(1) the issuance of bonds for an improvement project financed by the bonds if any part of the project is carried out in the corporate limits of the city; and
(2) the plans and specifications of the improvement project financed by the bonds.
(b) If the district obtains the approval of the city’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.