NEW JERSEY – Legislation sponsored by Senator Anthony M. Bucco that enables municipalities to extend the time to permanently finance the purchase of new firefighting apparatus was approved by the Senate Community and Urban Affairs Committee.
“Municipalities are facing greater financial pressures amid the challenges brought on by multiple years of high inflation,” said Bucco (R-25). “Rising costs coupled with financial constraints have made it difficult for municipalities to finance the purchase of expensive vehicles and equipment. This legislation extends the period of usefulness for firefighting vehicles and equipment from ten to twenty years so municipalities can extend the time those capital items can be permanently financed.”
Under current law, a local government can issue bond anticipation notes to fund capital items for a maximum of ten years. Municipalities are limited in the time that they can permanently finance capital items to the period of the time established by the New Jersey Revised Statutes.
Senator Bucco’s bill, S-3807, amends this existing statute, known as the Local Bond Law, to increase the period of usefulness to twenty years. This would allow municipalities to utilize permanent financing through bonds to fund expenditures related to firefighting apparatus and equipment.
The bill would additionally remove an exclusion for passenger cars and station wagons, that are not fueled by alternative sources of energy, by establishing a five-year period of usefulness when purchased as a new vehicle.
“Giving municipalities more options and time to fund capital expenditures is not only financially beneficial for their communities, but it is also a critical safety measure for the public,” Bucco said. “When municipalities struggle to purchase new equipment because they can’t afford to do so, this puts lives and properties at risk. This bill would help alleviate some of that pressure.”