New Jersey Gov. Phil Murphy on Tuesday signed into law a bill permitting municipalities in the state to sell bonds of up to 20 years to finance the purchase of fire engines and other public safety equipment.
Previously, they could only sell bonds of up to 10 years to pay for such equipment.
Depending on the size of the truck and the equipment it carries, a new fire truck can cost anywhere from $600,000 to well over $1 million.
"Multiple years of high inflation and increased financial pressures have made it difficult for municipalities to finance the purchase of fire engines and other safety vehicles and equipment," said Anthony M. Bucco, the Senate Republican leader and a Senate co-sponsor with Paul Sarlo, a Democrat and deputy majority leader. "By allowing municipalities to utilize longer repayment periods and smaller annual payments, they will have greater flexibility to provide our first responders with the necessary tools that keep our communities safe."
The bill would also allow for major repairs to fire engines and other rescue vehicles to be financed over five years. The useful life of vehicles over 15,000 pounds, such as garbage trucks, would be increased to 10 years from five while the useful life of vehicles under 15,000 pounds would remain at five years.
The measure would also allow for newly purchased gasoline-powered passenger cars and station wagons to be financed over five years. Previously, only vehicles powered by alternative fuel sources, such as electric cars, could be financed with bonds.
