Harboring Section 20 Costs

New Jersey’s Local Bond Law includes this section:

40A:2-20. Expenses included in cost
The cost of an improvement or property may include interest on obligations until the end of the fiscal year in which the obligations are issued or until 6 months after the completion of construction or acquisition, and architect’s fees, accounting, engineering and inspection costs, legal expenses, costs of authorizing, selling and issuing obligations, preliminary planning, test and survey expenses, and a reasonable proportion of the compensation and expenses of employees of a local unit in connection with the construction or acquisition of such improvement or property.

Municipalities can borrow for road repairs or to buy vehicles and other equipment apparently without voter or state approval as long as they pass an ordinance saying what they are going to spend the money on. Kenilworth has been doing that regularly over the years.

Here is a summary of those ordinances and what they were supposed to go for along with a listing of how much of that money, based on check registry data, went to Harbor Consultants for Section 20 costs.

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