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. This change is intended to provide local governments with greater flexibility in managing their financial resources.

Additionally, the bill removes specific exemptions that previously applied to certain bond ordinances, including those related to environmental infrastructure projects and state-funded initiatives. By deleting these provisions, the bill broadens the applicability of the new down payment rules, allowing counties and municipalities to utilize their funds more effectively without the constraints of the previous down payment requirement. The act is set to take effect immediately upon passage.