KRS 45A.353: Extension of guaranteed energy savings contract -- Documentation of

savings -- Lease-purchase agreements -- Exemption from debt limitations.

(1) Guaranteed energy savings contracts may extend beyond the fiscal year in which

they become effective. The local public agency shall include in its annual budget

and appropriations act, for each subsequent fiscal year, any accounts payable under

guaranteed energy savings contracts during the fiscal year.

(2) The local public agency shall document the operational and energy cost savings and

capital cost avoidance specified in the guaranteed energy savings contract and

designate and appropriate that amount for an annual payment of the contract. If the

annual energy and operational savings are less than projected u nder the guaranteed

savings contract, the qualified provider shall pay the difference as provided for in

KRS 45A.352.

(3) Notwithstanding any other provisions of law to the contrary, a local public agency

may finance the installation of energy conservation measures for its buildings

through a lease-purchase agreement, bonds, or whichever brings the most economic

value to the local public agency, subject to the local public agency's compliance

with all other laws regarding approval of plans for additions, al terations, or

renovations of its buildings.

(4) The component which is guaranteed as energy savings and as operational savings

shall be exempt from current or future debt limitations, except that capital cost

avoidance, as defined in KRS 45A.345, shall be limited to current or future debt

limitations.