(1) Before a municipality is eligible to receive benefits under this subchapter, the municipality through its mayor or chief executive officer shall agree to comply with the terms, provisions, and limitations of this subchapter.
(2) When a municipality meets the requirements of this subchapter and is eligible for state aid, the state aid engineer, as soon as practicable, shall notify the eligible municipality in writing.
(3) The notice shall state that any state funds allocated to the municipality for state aid may be used for construction on the state aid system in the manner provided in this subchapter.