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 as a down payment for final adoption. The new language allows for a bond ordinance to appropriate a percentage of the obligations authorized without specifying a minimum down payment, thereby providing greater flexibility for local governments 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. The intent behind this change 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.