TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Director of Economic and Community Development
Albert Baker, Assistant Economic and Community Development Director
Kimberly Leonard, CLGBO, CLGFO, CPA, MPA, Budget and Evaluation Director
DATE: October 28, 2024
RE:
Title
Adoption of Special Revenue Fund Project Ordinance and the Associated Resolution to Appropriate and Direct the Expenditure of $201,500 of Opioid Settlement Funds
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal I: Safe and Secure Community
Strategic Objective 1.3 Ensure low incidence of property and violent crime.
Goal 2: Responsive City Government Supporting a Diverse and Viable Economy.
Strategic Objective 2.2: Invest in community places to ensure revitalization and increase the quality of life.
Goal 4: Desirable Place to Live, Work and Recreate
Strategic Objective 4.6: Reduce poverty and homelessness.
Goal 6: Collaborative Citizen and Business Engagement.
Strategic Objective 6.2: Ensure trust and confidence in City government through transparency & high-quality customer service.
Strategic Objective 6.3: Inform and educate about local government by
enhancing public outreach and increasing community dialog, collaboration and empowerment
Executive Summary:
Council is asked to adopt Special Revenue Fund Project Ordinance (SRO) 2025-13 and the associated resolution to appropriate and direct the expenditure of opioid settlement funds in the amount of $201,500 for recovery support services for the period of November 1, 2024 through June 30, 2026.
Background:
North Carolina is part of a historic $26 billion agreement that brings relief to communities impacted by opioids. These funds must be used to either support treatment, recovery, harm reduction or other life-saving programs and services. A Memorandum of Agreement (MOA) between the State and local governments directs how opioid settlement funds are distributed and used in our state. It is projected that the City of Fayetteville is to receive $3,607,564 between now and 2038. On August 28 2023, Council voted to authorize a resolution and a special revenue fund project ordinance to fund a Strategy 10 Criminal Justice Diversion Program, the Law Enforcement Assisted Diversion (LEAD) program through the North Carolina Harm Reduction Coalition (NCHRC) for $202k until June 30, 2026. The Linkage to Care/LEAD Specialist will partner with community alliances to support recovery support services, recovery housing, employment-related services, early intervention, and re-entry services.
Adoption of the proposed Strategy 3 Recovery Support Services program will add a second high-impact opioid abatement strategy for the City. With these actions, the City will fund the Myrover-Reese Fellowship Homes, Inc. (MRFH) Opioid Recovery Support Services program for two years at $100k per year with a 1.5% adjustment in year two.
Issues/Analysis:
MRFH is a non-profit 501(c)(3) corporation formed in 1961 to provide drug and alcohol treatment services. MRFH provides supervised recovery housing in three licensed 24-hour facilities. The primary goal of these services is the rehabilitation of individuals who have substance use disorder with close to half of all cases being opioid dependency. The City may direct its opioid settlement funds to the County or distribute funds to nonprofits or other entities to use in a manner consistent with the terms of the MOA. There are two options for spending funds:
Option A “Short List” - High-impact strategies that are directly related to the current impacts of opioid abuse in our community (Reactive)
Option B “Long List” - Longer-term treatment and prevention strategies that have been identified through a prescribed strategic planning process (Proactive)
City Council must first authorize expenditure through a paired resolution and SRO. The resolution must state the specific strategy or strategies funded by identifying each strategy (Option A or B). Staff recommends the strategy of recovery support services for this appropriation.
Budget Impact:
There is no impact to the General Fund fund balance. Opioid funding does not require a General Fund match and can only be used for the purposes outlined within the MOA. The MRFH Recovery Support Services program will be reduced without additional funding that could be provided from this fund.
Options:
1. Adopt Special Revenue Fund Project Ordinance 2025-13 and the associated resolution to appropriate and direct the expenditure of Opioid Settlement Funds.
2. Do not adopt adopt Special Revenue Fund Project Ordinance 2025-13 or the associated resolution and provide further direction to staff.
Recommended Action:
Staff recommends that City Council adopt Special Revenue Fund Project Ordinance 2025-13 and the associated resolution to appropriate and direct the expenditure of Opioid Settlement Funds as presented.
Attachments:
• SRO 2025-13
• Resolution to Direct the Expenditure of Opioid Settlement Funds