SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 2577

STATE OF NEW JERSEY

DATED:  JUNE 17, 2024

      The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 2577.

      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.