Discussion and possible action to: (a) approve the increase of expenditure authority for the Opioid Settlement Funds by $844,619 dollars to a total of $1.5M; and (b) authorize staff to execute any necessary documents and reports to disperse funds according to the settlement terms and conditions over the life of the funding and any additional funding received through future settlements.

A number of lawsuits related to the Opioid Epidemic have ended in recent settlements.  Starting in 2021, the State of Arizona began receiving its share of the settlement money.  A portion of these funds are allowed to be passed through Maricopa County to local governments, including the City of Peoria.  As a result, Peoria is entitled to receive annual distributions of settlement resources in varying amounts over an 18-year period ending in 2038.  The City anticipates its share of the funding will be at least $4 million over the life of the settlement payments.

Settlement funds must be used for approved, nationally recognized strategies as listed in the One Arizona Distribution of Opioid Settlement Funds Agreement (Agreement).  These strategies broadly include treatment, prevention and “other strategies,” such as training. Maricopa County has completed a county-wide Opioid and Substance Use Needs Assessment that provides targeted information specific to the Northwest Region. City staff will utilize this targeted information in tandem with the Agreement to help guide the utilization of the settlement funds.  City staff will expend funds through a combination of competitive procurements/grants and direct service delivery projects. 

Since the last action taken by the City Council the Opioid Settlement fund has received several payment installments prior to the scheduled dates, as well as new agreements have been signed by the Arizona Attorney General’s Office and the City Attorney’s Office. With the new settlement monies being received earlier than anticipated the previous expenditure authority does not allow the monies to be dispersed in the accordance with rate it is being received.

December 16, 2021 – City Attorney’s Office executed Settlement Participation Forms for Janssen Settlement and Distributor Settlement

March 1, 2022 – City Attorney’s Office executed One Arizona Distribution of Opioid Settlement Funds Agreement

February 21, 2023 – Council approved the acceptance of the annual Opioid Settlement funding available to the City of Peoria over the next 18-year period and the budget amendment in the amount of $350,094, and authorized staff to execute any necessary documents and reports to disperse funds according to the settlement terms and conditions over the life of the funding.

July 2023 – Maricopa County Department of Public Health Needs Assessment completed

May 2024 – Council approved the budget Base amount of $129,842, plus a Carryover of $325,539, and a Supplemental Request of $200,000 through the annual budget process bringing the total spending authority to $655,381 for FY25.

June 18, 2024 – City Manager executed Settlement Participation Form for Kroger Settlement.

Staff recommends that the City Council approve (a) the increase of expenditure authority for the Opioid Settlement Funds by $844,619 dollars to a total of $1.5M; and (b) authorize staff to execute any necessary documents and reports to disperse funds according to the settlement terms and conditions over the life of the funding and any additional funding received through future settlements.