A local government must establish by ordinance or resolution an authority. At a minimum, the ordinance must:
(1) Specify the powers to be exercised by the authority;
(2) Reserve the local government's right to dissolve the authority after its contractual responsibilities have expired;
(3) Establish an administrative board, including: (a) The number of board members; (b) the times and terms of appointment for each board position; (c) the amount of compensation, if any, to be paid to board members; (d) the procedures for removing board members and filing vacancies; and (e) the qualifications for the appointment of individuals to the board;
(4) Establish the authority's boundaries, which must be contiguous tracts of land;
(5) Ensure that private and public funds provided to the authority will be segregated;
(6) Establish guidelines under which the authority may invest its funds;
(7) Provide the requirements for auditing the records of the authority; and
(8) Require the local government's legal counsel to also provide legal services to the authority.