https://www.tml.org/DocumentCenter/View/1298/Top-Ten-Legal-Questions-2019 (page 5)
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As a general rule, a gratuitous donation or gift by a city is prohibited by the Texas Constitution, art. III, §52, and art. XI, §3, which, in part, state that the legislature may not authorize any county, city, or other political subdivision of the state to lend its credit or grant public money or anything of value in aid of an individual, association, or corporation. The purpose of these provisions is to prevent local governments from appropriating public money for private purposes.
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The test established by several attorney general opinions is that the donation must go to a legitimate municipal purpose, the city must receive adequate consideration for its donation, and the arrangement must have sufficient controls to guarantee that city money is being used for a municipal public purpose. Tex. Att’y Gen. Op. No. DM-394 (1996), Tex. Att’y Gen. Op. No. JC-439 (2001), Tex. Att’y Gen. Op. No. JC-582 (2002), Tex. Att’y Gen. Op. No. LO 98-024 (1998).
