(1) The General Assembly shall not impose requirements on cities of any class that require city expenditures or tax levies unless:
(a) The requirements are fully funded by the General Assembly; or (b) The requirements are contingent on the approval of the city legislative body.
(2) Subsection (1) of this section shall not apply if the requirements are the result of a federal mandate, but in no case shall the requirements described in this section extend beyond the requirements of the federal mandate.
(3) Nothing in this section shall affect the obligations under KRS 6.955 to 6.975, 78.510 to 78.852, or any other retirement system or plan established by Kentucky law.