This bill amends current law to allow fire districts in New Jersey to issue bond anticipation notes for a period of up to 10 years, significantly extending the previous limit of three years. The new legal language specifies that these notes can be issued for one-year periods and may be renewed, with the requirement that all notes, including renewals, must mature and be paid by the first day of the fifth month following the close of the tenth fiscal year after the original notes were issued. Additionally, the bill stipulates that fire districts must pay and retire a portion of the notes before renewing them beyond their first anniversary.

The intent of this legislation is to provide fire districts with greater flexibility in financing capital projects that may take longer than three years to complete. By allowing for a longer duration of bond anticipation notes, fire districts can avoid the need to issue long-term bonds or enter into lease purchase agreements, thereby streamlining the financing process for capital projects. This change aims to enhance the financial management capabilities of fire districts and support their operational needs more effectively.

Statutes affected:
Introduced: 40A:14-86.1