This bill amends N.J.S.40A:2-11 to eliminate the mandatory five percent down payment requirement for bond ordinances approved by counties and municipalities. Under the current law, a bond ordinance must appropriate at least five percent of the authorized obligation for final adoption. The new language allows for a bond ordinance to appropriate a percentage of the obligations authorized as a down payment, rather than a fixed five percent. Additionally, the bill specifies that any sum appropriated as a down payment must be made available prior to the final adoption of the bond ordinance from certain sources, such as previously adopted budgets or emergency appropriations.

The bill also removes specific exemptions from the down payment requirement that previously applied to certain bond ordinances, including those funded by state grants or involving environmental infrastructure projects. By eliminating the down payment requirement, the bill aims to provide counties and municipalities with greater flexibility in managing their financial resources, allowing them to allocate funds to other pressing needs. The act is set to take effect immediately upon passage.