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HomeMy WebLinkAbout10406ORDINANCE NO. 10406 AN ORDINANCE ESTABLISHING FUND NO. 226 - OPIOID ABATEMENT SETTLEMENT AND BUDGETING AND APPROPRIATING ALL FUNDS ACCEPTED AND DISTRIBUTED TO THE CITY OF PUEBLO FROM THE NATIONAL OPIOID SETTLEMENT FUND, TO INCLUDE THE TWO HUNDRED THOUSAND THREE HUNDRED THIRTY-SEVEN AND 63/100 DOLLARS ($200,337.63) RECEIVED BY THE CITY OF PUEBLO IN DECEMBER, 2022, AND ALL FUTURE PAYMENTS RECEIVED FROM THE NATIONAL OPIOID SETTLEMENT FUND INTO SAID FUND NO. 226 BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Fund No. 226 is hereby established, and all funds which have been distributed and which will be paid to the City in the future from the National Opioid Settlement fund, to include the $200,337.63 in opioid settlement proceeds received by the City of Pueblo in December, 2022, are hereby budgeted and appropriated into said Fund No. 226. SECTION 2. Distributed funds received by the City of Pueblo from the National Opioid Settlement fund, shall only be used for payment of eligible expenses. SECTION 3. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance to implement the policies and procedures described herein. SECTION 4. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on February 27, 2023. Final adoption of Ordinance by City Council on March 13, 2023 . President of City Council Action by the Mayor: ☒ Approved on March 15, 2023 , . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk's Office Item # R3 Background Paper for Proposed Ordinance February 27, 2023 COUNCIL MEETING DATE: TO: President Heather Graham and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Alexandria Romero, Director of Finance SUBJECT: AN ORDINANCE ESTABLISHING FUND NO. 226 - OPIOID ABATEMENT SETTLEMENT AND BUDGETING AND APPROPRIATING ALL FUNDS ACCEPTED AND DISTRIBUTED TO THE CITY OF PUEBLO FROM THE NATIONAL OPIOID SETTLEMENT FUND, TO INCLUDE THE TWO HUNDRED THOUSAND THREE HUNDRED THIRTY-SEVEN AND 63/100 DOLLARS ($200,337.63) RECEIVED BY THE CITY OF PUEBLO IN DECEMBER, 2022, AND ALL FUTURE PAYMENTS RECEIVED FROM THE NATIONAL OPIOID SETTLEMENT FUND INTO SAID FUND NO. 226 SUMMARY: This Ordinance establishes Fund No. 226 - Opioid Abatement Settlement, and budgets and appropriates funds which have been distributed and will be paid to the City in the future from the National Opioid Settlement fund. PREVIOUS COUNCIL ACTION: On October 25, 2021, by Ordinance No. 10031, City Council authorized the Mayor to sign (4) settlement agreements with the "Big 3" Opioid Distributors (AmerisourceBergen, Cardinal Health, and McKesson) and Johnson & Johnson. BACKGROUND: In August, 2021, the Colorado Attorney General announced a plan for distributing opioid settlement funds obtained from settlements with four (4) major drug manufacturers and distributors. Rather than allocating its share of opioid settlement funds to a Regional Board for distribution to 9 Southeast Colorado counties, the City elected to receive its share of the settlement funds directly from the Colorado Attorney General's Office, to ensure specific use of the funds within the City itself. In December, 2022, the City received $200,337.63 in "year 1" opioid settlement proceeds. Approximately $100,000.00 is expected every year for the next 19 years. This amount could increase as additional settlements take place. FINANCIAL IMPLICATIONS: The attached ordinance budgets and appropriates $200,337.63 in "year 1" settlement proceeds and all subsequent opioid settlement payments received by the City into Fund No. 226. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: Failure to adopt this ordinance will result in the City Council not authorizing the budgeting and appropriation of opioid settlement funds. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: None