(a) Costs of improvements may be paid or reimbursed by any combination of the methods described by this section if the improvements are dedicated, conveyed, leased, or otherwise provided to or for the benefit of:
(1) a municipality or county;
(2) a political subdivision or other entity exercising the powers granted under this subchapter as authorized by other law; or
(3) an entity that:
(A) is approved by the governing body of an entity described by Subdivision (1) or (2); and
(B) is authorized by order, ordinance, resolution, or other official action to act for an entity described by Subdivision (1) or (2).
(a-1) The payment or reimbursement may be provided before or after a method of payment or reimbursement authorized by this section is entered into or issued.

(b) A cost payable by the municipality or county as a whole may be paid from general funds available for the purpose or other available general funds.
(c) A cost payable from a special assessment that has been paid in full shall be paid from that assessment.
(d) Costs payable from a special assessment that is payable in installments may be paid by any combination of the following methods:
(1) under an installment sales contract or a reimbursement agreement between the municipality or county and the person who acquires, installs, or constructs the improvements;
(2) as provided by a temporary note or time warrant issued by the municipality or county and payable to the person who acquires, installs, or constructs the improvements; or
(3) by the issuance and sale of bonds under § 372.024.
(d-1) An installment sales contract, reimbursement agreement, temporary note, or time warrant described by Subsection (d) may be assigned by the payee without the consent of the municipality or county.
(e) The interest rate on unpaid amounts due under an installment sales contract, reimbursement agreement, temporary note, or time warrant described by Subsection (d):
(1) may not exceed, for a period of not more than five years, as determined by the governing body of the municipality or county, five percent above the highest average index rate for tax-exempt bonds reported in a daily or weekly bond index approved by the governing body and reported in the month before the date the obligation was incurred; and
(2) after the period described by Subdivision (1), may not exceed two percent above the bond index rate described by Subdivision (1).
(f) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 384, Sec. 2, eff. June 17, 2011.
(g) The cost of more than one improvement may be paid:
(1) from a single issue and sale of bonds without other consolidation proceedings before the bond issue; or
(2) under a single installment sales contract, reimbursement agreement, temporary note, or time warrant.
(h) The costs of any improvement include interest payable on a temporary note or time warrant and all costs incurred in connection with the issuance of bonds under § 372.024 and may be included in the assessments against the property in the improvement district as provided by this subchapter.