12-1664. Same; issuance of temporary notes or no-fund warrants to finance portion of program to be paid by federal aid, when; election requirements; written commitment as to federal aid; temporary fin
12-1664
12-1664. Same; issuance of temporary notes or
no-fund warrants to finance
portion of program to be paid by federal aid, when; election requirements;
written commitment as to federal aid; temporary financing of federal share
from current funds; purpose of act; bonded debt limitations; approval of state
court.
Where any federal agency has
agreed that federal aid shall bear a percentage of the total cost of or
fixed or estimated
amount of any local program by a public agency but the funds therefor
will not be made available until the local program is partly or wholly
completed and the public agency must finance all of the costs of the
local program until the federal aid is received and the public agency is
authorized by law to
use current funds or bond or usual temporary note proceeds or a fund
built up by levies over a period of years for such local program, such
public agency may, to finance the portion to be paid by federal aid, issue
temporary notes
or no-fund warrants as provided herein. If an election is required to
authorize the issuance of bonds by the public agency for the whole or
its share of the local program, no temporary notes or no-fund warrants
shall be issued under this act until the public agency has held an
election and been authorized to issue bonds and if bonds may be issued
without an election for the whole or the public agency's share of a
local program, no temporary notes or no-fund warrants shall be issued
until the proper proceedings have been taken to initiate and authorize
the local program. In no case shall temporary notes or no-fund warrants
be issued under the authority of this section until there is a written
commitment as to the amount of federal aid by an authorized federal
agency. Nothing in this act shall prohibit any public
agency from the temporary financing of the federal share of a local
program from current funds if available or proceeds of bonds or usual
temporary notes where the bond issue has been or may be for the entire
cost as if no federal aid were to be received. The purpose of this act
as to the issuance of temporary notes or no-fund warrants is to make
unnecessary the tying up of current funds of a public agency or the
issuance of bonds or the usual temporary notes, where authorized, in
excess of the public agency's share of the cost of the program. The
governing body of the public agency shall have full authority to
determine if temporary notes or no-fund warrants shall be issued. No
limitations by statutes relating to bonded debt shall apply to such
temporary notes and no-fund warrants or use of the money received
therefrom. No temporary notes or no-fund warrants shall be issued
pursuant to this act unless approved by the state court of
tax appeals, which shall grant such approval only to the
amount of the federal aid committed.
History: L. 1967, ch. 422, § 3; L. 1978, ch. 64, § 2; L. 1980,
ch. 67, § 2;
L. 2008, ch. 109, § 25; July 1.