Any municipality may:

1. apply to and contract with the commissioner for state aid pursuant to this article;

2. enter into contracts for consulting, engineering and other professional services for the preparation of documents in respect to which state aid is to be sought pursuant to this title; provided, however, the contract costs negotiated between the person or firm chosen to perform such services and the applicant for state aid under this title shall be subject to the approval of the commissioner; and

3. expend money received from the state pursuant to this title only for purposes consistent therewith.