(a) Any authority operating a project financed from the proceeds of bonds issued pursuant to this chapter may pledge to the payment of the bonds, in addition to all other revenues, all or any portion of such moneys as may be received from on-street parking meters pursuant to an agreement with the municipality within which such project shall be situated.

(b) Upon adoption of an ordinance or resolution by its governing body, determining that a project financed and operated or proposed to be financed and operated within the municipality by an authority will be of benefit to the municipality in connection with its program of regulating and expediting vehicular traffic, and that the making available of on-street parking meter revenues to the authority will make the financing and operation of such project by the authority more feasible, resulting in increased benefits to the municipality and a more orderly flow of traffic, the municipality is authorized to enter into an agreement with the authority whereby the municipality shall pay over to the authority, as received, such portion of the revenues derived from its on-street parking meters as may be determined in such resolution; provided, that such revenues shall be used by the authority for the purpose of retiring indebtedness incurred in relation to the project. The municipality may covenant and agree in any such agreement to maintain its existing parking meters at their present locations and to maintain the charges for on-street metered parking at a rate at least equal to the rate in effect on the date of the agreement, and any such agreement may provide that the terms of the agreement may be enforced by the holder of any outstanding bonds of the authority to be affected by the agreement; provided, that all such provisions shall be subject to the right of the municipality to make changes and alterations pursuant to its police powers in regulating the flow of traffic.

(c) It is hereby determined that, in financing, acquiring and operating any such project, the authority is performing a vital public function and that the use of parking meter revenues for such purpose and the payment of the parking meter revenues to the authority constitutes a proper public purpose of the municipality.