Talawanda City Board shifts general-fund dollars to severance and capital accounts, adopts five-year forecast

The Talawanda City School District Board of Education on May 19 approved transfers from the general fund to create a severance fund and to support a five-year capital plan, and adopted the district's required five-year forecast.

The board voted to create a severance (termination benefits) fund and to transfer funds from the general fund to it. The agenda listed a transfer of $1,450,106; an attached document included $1,450,107. The board approved the transfer; members discussed the discrepancy during debate but did not record a different final total in the public discussion. Treasurer-provided materials say the fund is intended to pay severance and leave going forward rather than drawing those payments from the general fund.

Treasurer said the transfer creates a separate fund so severance and leave payments are paid from Fund 035 going forward. "This is the creation of the severance fund. So instead of it being paid out of the general fund going forward, all severance and leave would be paid from this 035 fund," the Treasurer said.

The Treasurer told the board the transfer amount reflects the district's current liabilities if all eligible staff retired immediately: "We have 60 people who are…