TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
FROM: Christopher Cauley, MPA, CEcD - Economic & Community Development Director
Jacqueline Abbott - Community Relations Manager, ECD
DATE: June 22, 2026
RE:Title
Adoption of Amended Opioid Settlement Resolutions and Special Revenue OrdinancesTitle
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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.
Objective 1.3: To ensure low incidence of property and violent crime.
Goal IV: The City of Fayetteville will be a highly desirable place to live, work and
Recreate.
Objective 4.5: To ensure a place for people to live in great neighborhoods.
Objective 4.6: To reduce poverty and homelessness.
Goal V: The City of Fayetteville will be a financially sound city providing
exemplary city services.
Objective 5.1: To ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities.
Executive Summary:
City Council is asked to adopt amended opioid settlement resolutions and Special Revenue Ordinances Amendments 2024-7, 2025-13, 2026-5 and Special Revenue Closeout Ordinance 2026-11 to reconcile prior funding authorizations with actual expenditures and to reallocate opioid settlement funds among approved programs and strategies. These actions will improve the accuracy of opioid settlement fund accounting, align authorizations with actual expenditures, and direct available settlement resources toward current program priorities.
Background:
North Carolina is part of a national opioid settlement that provides funding to state and local governments for opioid remediation activities, including treatment, recovery, harm reduction, diversion, and other evidence-based strategies. The use of these funds is governed by the North Carolina Memorandum of Agreement (MOA), which requires local governments to direct opioid settlement expenditures through formal action of the governing board.
Since receiving opioid settlement funds, the City Council has approved multiple resolutions and special revenue ordinances to support opioid remediation programs and services. These investments have included diversion programs, recovery support services, and public safety initiatives designed to address the impacts of opioid use disorder within the community.
As part of ongoing program administration and financial oversight, staff periodically reviews program expenditures, funding authorizations, and implementation needs to ensure opioid settlement funds are accurately accounted for and directed toward eligible remediation activities. Following a review of existing authorizations and technical assistance provided by the North Carolina Association of County Commissioners Opioid Settlements Technical Assistance Team (OSTAT), City staff identified several funding authorizations that should be amended to reflect actual expenditures and current program funding priorities.
Issues/Analysis:
Staff has reviewed existing opioid settlement funding authorizations, actual expenditures, and current program implementation needs. Based on this review and technical assistance from the North Carolina Association of County Commissioners Opioid Settlements Technical Assistance Team (OSTAT), staff identified several amendments needed to align prior Council authorizations with actual expenditures and current program priorities.
The proposed amendments address two separate issues. First, staff recommends reconciling prior authorizations with actual expenditures or implementation status. This includes reducing the authorization for the North Carolina Harm Reduction Coalition's prior LEAD Program contract from $202,000 to $197,035.09 to reflect actual expenditures during the October 1, 2023, through June 30, 2025 contract term. It also includes reducing the authorization for the Operational Readiness for Police Officers Program to $0 and rescinding the accompanying resolution because Fayetteville State University removed the course from its training offerings, making the program no longer feasible to implement.
Second, staff recommends reallocating available opioid settlement funds to support current opioid remediation services in FY 2027. This includes providing an additional $106,000 for the current LEAD Program contract, increasing the total authorized amount from $104,000 to $210,000, and providing an additional $103,000 for Myrover-Reese Fellowship Homes' recovery support services programming, increasing the total authorized amount from $201,500 to $304,500.
Collectively, these amendments will improve the accuracy of opioid settlement fund accounting and reporting, redirect funds from a program that cannot currently be implemented, and support the continued delivery of approved opioid remediation services in the community. The amendments are also intended to maintain compliance with the North Carolina Opioid Settlement Memorandum of Agreement by ensuring that opioid settlement expenditures are properly authorized by City Council.
Budget Impact:
There is no impact to the General Fund associated with this action. Funding for the proposed amendments will be provided through opioid settlement revenues received by the City pursuant to the North Carolina Opioid Settlement Memorandum of Agreement (MOA).
The proposed amendments reconcile prior funding authorizations with actual expenditures, remove funding for a program that can no longer be implemented, and provide additional FY 2027 funding for approved opioid remediation activities. Collectively, the amendments increase total appropriated opioid settlement funding from $671,300.00 to $711,535.09, a net increase of $40,235.09.
The City has received $1,379,234.12 in opioid-related settlement revenues through FY 2026. This amount includes $18,306.29 in separate McKinsey settlement funds that are comingled in the same revenue line but are not part of the opioid settlement funding authorized under the MOA. Excluding the McKinsey funds, the City has received $1,360,927.83 in opioid settlement revenues for MOA purposes.
After approval of the proposed amendments, the City would retain an estimated unappropriated opioid settlement balance of $649,392.74. This remaining balance supports Council’s measured approach to obligating opioid settlement funds while preserving the City’s ability to respond to future eligible opioid remediation needs and funding opportunities.
Opioid Settlement Funding Summary:
Total opioid-related settlement revenues received through FY 2026: $1,360,927.83
Proposed amended opioid settlement appropriations: $711,535.09
Estimated unappropriated opioid settlement balance after proposed amendments: $649,392.74
Options:
• Adopt amended opioid settlement resolutions and Special Revenue Ordinances Amendments 2024-7, 2025-13, 2026-5 and Special Revenue Closeout Ordinance 2026-11 to reconcile prior funding authorizations with actual expenditures and to reallocate opioid settlement funds among approved programs and strategies.
• Do not amended opioid settlement resolutions and related Special Revenue Ordinances Amendments to reconcile prior funding authorizations with actual expenditures and to reallocate opioid settlement funds among approved programs and strategies.
• Direct staff to some other action.
Recommended Action::Recommended Action
Adopt amended opioid settlement resolutions and Special Revenue Ordinances Amendments 2024-7, 2025-13, 2026-5 and Special Revenue Closeout Ordinance 2026-11 to reconcile prior funding authorizations with actual expenditures and to reallocate opioid settlement funds among approved programs and strategies.
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Attachments:
• Resolution Amending R2023-033
• Resolution Amending R2024-037
• Resolution Amending R2025-024
• R2023-033
• R2024-037
• R2025-024
• R2025-039
• SROA 2026-5
• SROA 2025-13
• SRCLO 2026-11
• SROA 2024-7