TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
FROM: Albert A. Baker, Acting Economic and Community Development Director
Kimberly Leonard, CLGBO, CLGFO, CPA, MPA, Budget and Evaluation Director
DATE: June 23, 2025
RE:
Title
Adoption of Special Revenue Fund Project Ordinance 2026-5 and the Associated Resolution to Appropriate and Direct the Expenditure of $104,000 of Opioid Settlement Funds
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
GOAL I: The City of Fayetteville will be a safe and secure community.
1.3: To ensure a low incidence of property and violent crime
GOAL IV: The City of Fayetteville will be a highly desirable place to live, work and recreate.
4.5: To ensure a place for people to live in great neighborhoods
4.6: To reduce poverty and homelessness.
Executive Summary:
The City Council is asked to direct $104,000 in opioid settlement funds via a resolution and appropriate with a Special Revenue Ordinance (SRO 2026-5) for the continuation of the Fayetteville Police Department Law Enforcement Assisted Diversion (LEAD) Program. The North Carolina Department of Justice requires the resolution as a participant in the National Opioid Settlement. The City of Fayetteville is projected to receive approximately $3,740,222 from litigation, and these funds must be expended in accordance with a specific strategy. On August 28, 2023, the Council adopted the Criminal Justice Diversion Program through the North Carolina Harm Reduction Coalition (NCHRC).
Background:
North Carolina is part of a historic opioid settlement that is estimated to be over $50 billion 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 $3,740,222 between now and 2038. In August 2023, Council voted to authorize a resolution to fund the Law Enforcement Assisted Diversion (LEAD) program through the North Carolina Harm Reduction Coalition (NCHRC) for a total of $202,000 during the period of October 1, 2023 through June 30, 2026. The LEAD Specialist will partner with community alliances to support recovery support services, recovery housing, employment-related services, early intervention, and re-entry services. A Budget Ordinance for the same amount is also required. With these actions, the City will fund the NCHRC’s LEAD program for one year at $104,000 and aligning this program with the City’s nonprofit funding cycle through Economic and Community Development Department.
Issues/Analysis:
The NCHRC began committing resources to Cumberland County in 2014 and is a non-profit organization that provides outreach services and linkage to care for opioid addiction. Programs provide syringe services, naloxone education and distribution, post-overdose follow-up, peer support, harm reduction education, and overdose prevention. They have partnered with the Fayetteville Police Department and provided technical assistance for the pre-arrest LEAD program but funding is ending for that program. 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 budget ordinance. The resolution must state the specific strategy or strategies funded by identifying each strategy (Option A or B).
Budget Impact:
Opioid funding does not require a General Fund match and can only be used for the purposes outlined within the MOA. The LEAD program will expire without additional funding that could be provided from this fund.
Options:
1. Adopt the resolution to appropriate the funding of Opioid Settlement Funds and the accompanying Special Revenue Ordinance 2026-5.
2. Do not adopt the resolution to direct the expenditure of Opioid Settlement Funds and the accompanying Special Revenue Ordinance 2026-5 and provide staff with further direction to appropriate the funding.
Recommended Action:
Staff recommends that City Council adopt the resolution to direct the expenditure of Opioid Settlement Funds and the accompanying Special Revenue Ordinance 2026-5.
Attachments:
• SRO 2026-5
• Draft Resolution to Direct The Expenditure of Opioid Settlement Funds