The Johnson Controls team designed a plan that would include nearly $27 million in energy-efficient upgrades and repairs in municipal-owned buildings, without the need for Louisville Metro to provide capital or assume financial risk.
Under an energy savings performance contract, facility improvements would be paid for up front by Johnson Controls and guaranteed to generate enough savings to pay for themselves over time. And if the savings were to fall short, Johnson Controls would assume financial liability.
"When you have limited resources it's important that you get results, and that you're only paying for success," said the city's Chief Financial Officer Steve Rowland. "This approach with Johnson Controls allows us to meet that objective, and without us having to put up the capital." And, as an added bonus, because the funding mechanism doesn't affect Louisville Metro's bond capacity, it frees up capacity for other critical projects.