(a) This section applies only to a Type A general-law municipality that is an enclave surrounded entirely by a municipality with a population of 1.1 million or more.
(b) The governing body of the general-law municipality may enter into an interlocal contract with the surrounding municipality for the establishment of a railroad quiet zone located outside the boundaries of the general-law municipality that the governing body determines will benefit the general-law municipality.
(c) A general-law municipality may expend municipal funds and may issue certificates of obligation or bonds to pay for expenses associated with a railroad quiet zone under Subsection (b), including expenses related to feasibility, engineering, and traffic studies and improvements related to the railroad quiet zone.