Local Government Code §253.006

(a) The governing body of a municipality with a population of 65,000 or less may lease all or part of a hospital owned by the municipality, to be operated by the lessee as a public hospital. (b) The governing body of any municipality may lease a swimming pool owned by the municipality, to be operated by the lessee as a public swimming pool. (c) A lease under this section must: (1) be authorized by ordinance or resolution adopted by the governing body; (2) be executed on behalf of the municipality by the mayor and the municipal secretary or clerk; (3) be impressed with the municipal seal; and (4) cover a period of not more than 50 years. (d) A lease under this section is subject to the terms agreed to by the governing body and the lessee.