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City makes payment to Shelby County Schools

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The Germantown Board of Mayor and Aldermen “unenthusiastically” approved the second of 12 yearly payments to the Shelby County Board of Education for the settlement agreement over the formation of the Germantown Municipal School District and the transfer of five schools to the new school district.
Yearly payments of $355,453 must be made by Nov. 1.
The settlement stems from a lawsuit filed by the Shelby County Commission alleging that the city’s efforts to create its own municipal school district were illegal because they were “motivated by racially discriminatory intent and violated various constitutional provisions.”
Last January, former Mayor Sharon Goldsworthy executed an agreement of compromise in order to “dismiss with prejudice all claims by the County Commission in the lawsuit” and to receive Dogwood, Farmington and Riverdale elementary schools, along with Houston Middle and High schools from Shelby County Schools for full control, management and operation.
Per the agreement, the yearly funds will be used by Shelby County Schools to reduce the retiree health and life insurance liabilities as of May 2014.