Bill Text: NJ S2577 | 2024-2025 | Regular Session | Introduced
Bill Title: Authorizes fire districts to issue certain bond anticipation notes for up to 10 years following initial note issuance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-06-17 - Reported from Senate Committee, 2nd Reading [S2577 Detail]
Download: New_Jersey-2024-S2577-Introduced.html
Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Passaic)
SYNOPSIS
Authorizes fire districts to issue certain bond anticipation notes for up to 10 years following initial note issuance.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning fire district authority to issue bond anticipation notes and amending P.L.1981, c.188..
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1981, c.188 (C.40A:14-86.1) is amended to read as follows:
The board of commissioners of a fire district, following the authorization by voters of the issuance of bonds pursuant to N.J.S.40A:14-86, may by resolution borrow money and issue negotiable notes in anticipation of the bond issue. Any note shall be designated a "bond anticipation note" and shall contain a recital that it is issued in anticipation of the issuance of bonds. Such notes may be issued for a period not to exceed [1] one year, and may be renewed from time to time [not to] for additional periods, none of which shall exceed [1] one year; but all such notes, including renewals, shall mature and be paid not later than the [third anniversary of the date of the original notes] first day of the fifth month following the close of the tenth fiscal year next following the date of the original notes; provided, however, that no notes shall be renewed beyond the first anniversary date of the original notes unless an amount of such notes, at least equal to the first legally payable installment of the bonds in anticipation of which the notes are issued, is paid and retired on or before [the second anniversary date, and if the notes are renewed beyond the second anniversary date of the original notes, a like amount is paid or retired on or before the third anniversary date from funds other than the proceeds of obligations; except that the notes shall mature and be paid not later than the first day of the fifth month following the close of the third fiscal year next following the date of the original notes, provided that, in addition to amounts paid and retired pursuant to this section, an amount of such notes equal to not less than the first legally payable installment of the bonds in anticipation of which the notes are issued has been paid and retired not later than the end of the third fiscal year from funds other than the proceeds of obligations] each subsequent anniversary date beyond which the notes are renewed from funds other than the proceeds of obligations.
The period of usefulness as defined in N.J.S.40A:2-22 of any purpose for which bonds are issued shall include the period during which notes issued in anticipation of such bonds are outstanding, including all renewals thereof.
Funds derived from the
issuance of fire district bonds may be
used to redeem notes issued in anticipation of the bond issue.
(cf: P.L.1981, c.188, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill authorizes fire districts to issue a series of one-year bond anticipation notes for up to 10 years to finance capital projects.
Currently, fire districts are authorized to issue a series of one-year notes for up to three years to finance capital projects. When a fire district's capital project exceeds a period of three years, the fire district is often forced to issue long term bonds or enter into a lease purchase agreement with a bank for the remainder of the capital project. This bill would allow a fire district to finance capital projects with bond anticipation notes for the entirety of most projects.
