What statutory obligation must be fulfilled when a municipality proposes a capital project?

When a municipality proposes a capital project, a key statutory obligation is the adoption of a bond ordinance. This is a critical step because bond ordinances are essential for securing the necessary financing to fund the project. These ordinances outline the terms of the borrowing, including the amount of money to be borrowed, the purpose of the bond, and the repayment terms.

The adoption of a bond ordinance requires the municipality to formally authorize the issuance of bonds, which is a common means of financing large-scale capital projects such as infrastructure, public buildings, and other significant investments. This process typically involves public notice, a public hearing, and the adoption of the ordinance through a majority vote of the governing body, ensuring transparency and providing a formal mechanism for public input.

While public consultation, environmental impact studies, and approval by the state legislature may be relevant in certain contexts or projects, they are not universally required by statute for all capital projects in New Jersey. The necessity of a bond ordinance is specifically mandated by state law when financing is involved, making it the primary statutory obligation in this context.