8. In order to pay its part of the cost of the water supply facility, a public entity may issue bonds in accordance with the “Local Bond Law,” N.J.S. 40A:2-1 et seq. If a public entity enters into a financing instrument the proceeds of which are used by the private firm for a capital expenditure for the benefit of a water supply facility, the expenditure of the funds provided by the public entity shall be in compliance with applicable public contracting statutes. L.1995,c.101,s.8.