(1) A board of county commissioners may establish a compensated absence liability fund for the purpose of paying for any accumulated amount of:
(a) sick leave that a county employee is entitled to upon termination of employment with the county in accordance with the provisions of 2-18-618; and
(b) vacation leave that an employee is entitled to upon termination of employment with the county.
(2) The compensated absence liability fund may be used only for the purpose provided in this section.
(3) The compensated absence liability fund may receive money from any source, including funds that have been allocated in any year but have not been expended or encumbered by the end of the fiscal year.
(4) The maximum amount in the fund may not exceed the amount necessary to pay for accumulated sick leave and accumulated vacation leave of county employees on June 30 of the prior fiscal year.