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A2372
ASSEMBLY, No. 2372
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
SYNOPSIS
���� Eliminates five percent down payment requirement for
bond ordinances approved by counties and municipalities.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning the issuance of local bonds and amending
N.J.S.40A:2-11.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� N.J.S.40A:2-11 is
amended to read as follows:
���� 40A:2-11. a.
[
No
]
A
bond
ordinance
[
shall
be finally adopted unless it appropriates
]
may appropriate
to the purpose, or ratably to the respective purposes to
be financed, in addition to the obligations thereby authorized, a sum as a down
payment which is
[
not
less than five percent
]
a percentage
of the amount of the obligations authorized.
���� b.���
[
Said
]
When a
sum
[
so
]
is
appropriated as a down payment
, then that sum
must have been made
available prior to final adoption of the bond ordinance from any one or more of
the following:
���� 1.��� by provision in a
previously adopted budget or budgets of the local unit for down payment or for
capital improvement purposes;
���� 2.��� from moneys then
actually held by the local unit and previously contributed for such purpose
other than by the local unit; or
���� 3.��� by emergency
appropriation.
���� c.����
[
The provisions
of this section shall not apply to a bond ordinance which authorizes
obligations solely for any purpose referred to in paragraphs a., b., c., d.,
e., and h. of N.J.S.40A:2-7 or for those bond ordinances which involve projects
funded by State grants such as Green Acres, Transportation Trust Fund, and
other similar programs, or for those bond ordinances which involve
environmental infrastructure projects or transportation projects, as defined in
section 3 of P.L.1985, c.334 (C.58:11B-3), funded by loans from the "New
Jersey Infrastructure Bank," created pursuant to section 4 of P.L.1985,
c.334 (C.58:11B-4), or the State, acting by and through the Department of
Environmental Protection.
]
(Deleted by amendment, P.L.��� , c.��� ) (pending before the Legislature as
this bill)
(cf: P.L.2021, c.80, s.1)
���� 2.��� This act shall take
effect immediately.
STATEMENT
����� This bill makes permissive the down payment
requirement for counties and municipalities to issue bonds.� Under current law,
most bond ordinances require an appropriation of at least five percent of the
amount of the authorized obligation for final adoption of the bond ordinance.�
Although this appropriation is excluded from the property tax levy cap, relief
from the requirement to make the down payment is intended to free-up scarce
resources for other purposes of the county or municipality.