(a) A district contract with a state agency, a political subdivision, or a corporation created by the commission under Chapter 431 may:
(1) provide for joint payment of the costs of a project; and
(2) require the state agency, political subdivision, or corporation to design, construct, or improve, including landscape, a project as provided by the contract.
(b) The district may issue bonds to pay all or part of the costs of the project and any other payments required under the contract.