(a) An authority:
(1) may plan, design, implement, develop, construct, and finance eligible projects as defined in this subchapter; and
(2) has the powers of a municipality under Chapter 378, as added by Chapter 1221, Acts of the 76th Legislature, Regular Session, 1999, and Chapter 380.
(b) An authority may not:
(1) issue bonds or notes without the prior approval of the governing body of the municipality that created the authority;
(2) seek a charter for or operate, within the boundaries of the authority, an open-enrollment charter school authorized by Subchapter D, Chapter 12, Education Code; or
(3) levy ad valorem property taxes.
(c) A municipality may not seek a charter for or operate an open-enrollment charter school authorized by Subchapter D, Chapter 12, Education Code, within the boundaries of the authority.