Upon adoption of an ordinance or resolution by an affirmative vote of a majority of the members of the governing body at any regular or special meeting of the governing body called for this purpose, a municipality may pledge utility cost savings, conservation-related cost savings or any or all revenues not otherwise pledged or obligated from gross receipts taxes received by the municipality pursuant to Section 7-1-6.4 NMSA 1978 and Section 7-1-6.12 NMSA 1978 for payments pursuant to a guaranteed utility savings contract with a qualified provider and any installment payment contract or lease-purchase agreement pursuant to that guaranteed utility savings contract. The ordinance or resolution shall declare the necessity for the guaranteed utility savings contract and related contracts or agreements and shall designate the source of the pledged revenues. Any revenues pledged for such contract payments shall be deposited in a special fund, and the municipality shall not use any other revenues to make such payments. At the end of each fiscal year, any money remaining in the special fund after payment obligations are met may be transferred to any other fund of the municipality.

History: Laws 1993, ch. 231, § 8; 1997, ch. 42, § 9; 2001, ch. 247, § 8.

The 2001 amendment, effective June 15, 2001, inserted "or resolution" following "ordinance" in the first and second sentences; and inserted "utility cost savings, conservation-related cost savings or" in the first sentence.

The 1997 amendment, effective June 20, 1997, substituted "utility" for "energy" throughout the section and deleted "Subsections A and E of" preceding "Section 7-1-6.12 NMSA 1978" in the first sentence.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Constitutionality, construction, and application of state and local public-utility-gross-receipts-tax statutes - modern cases, 58 A.L.R.5th 187.