Current Fund appropriations for accumulated absence liabilities must be deposited in what type of fund?

Current Fund appropriations for accumulated absence liabilities should be deposited in a dedicated trust fund. This is because dedicated trust funds are specifically set up to account for resources that are restricted for specific purposes. In the case of accumulated absence liabilities, such as sick leave or vacation pay that employees have earned but not yet taken, a dedicated trust fund ensures that the necessary funds are distinctly set aside and can only be utilized for these specific liabilities.

Using a dedicated trust fund helps in providing transparency and accountability in financial reporting, ensuring that the funds are available when employees eventually take their accrued time off. Additionally, this approach aligns with best practices in budgeting and fund management, as it separates these liabilities from other operational funds, thereby providing a clearer picture of the municipality's financial health and obligations.