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 before it can be finally adopted. 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, thereby providing greater flexibility for local governments.

Additionally, the bill removes specific exemptions that previously applied to certain bond ordinances, including those related to environmental infrastructure projects and state-funded initiatives. The intent of this legislation is to relieve counties and municipalities from the down payment requirement, allowing them to allocate their limited resources to other pressing needs. The act is set to take effect immediately upon passage.