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To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to accept funds in the amount of $611,807.50 from the National Opioid Settlement Fund, resulting from settlement agreements with Settling Distributors, Walgreens, Walmart, Distributor, CVS, Allergan, Teva, and Kroger, and to amend Ord. No. 2025-057, adopted May 12, 2025, which adopted a Special Fund Budget for the fiscal year 2025-2026 and made appropriations thereto, by increasing revenues and the amount appropriated to the Department of Neighborhood and Community Services’ National Opioid Settlement Special Fund by $611,807.50, for the purpose of funding opioid abatement and remediation strategies to combat the opioid crisis.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That the Chief Administrative Officer, for and on behalf of the City of Richmond, is hereby authorized to accept funds in the amount of $611,807.50 from the National Opioid Settlement Fund, resulting from settlement agreements with Settling Distributors, Walgreens, Walmart, Distributor, CVS, Allergan, Teva, and Kroger for the purpose of funding opioid abatement and remediation strategies to combat the opioid crisis
§ 2. That Article I, Section 2 of Ordinance No. 2025-057, adopted May 12, 2025, which adopted a Special Fund Budget for the fiscal year commencing July 1, 2025, and ending June 30, 2026, and made appropriations thereto, be and is hereby amended by increasing estimated revenues by $611,807.50, increasing the amount appropriated for expenditures by $611,807.50, and allotting to the Department of Neighborhood and Community Services’ National Opioid Settlement Special Fund the sum of $611,807.50 for the purpose of funding opioid abatement and remediation strategies to combat the opioid crisis.
§ 3. This ordinance shall be in force and effect upon adoption.
DATE: April 7, 2026 EDITION: 1
TO: The Honorable Members of City Council
THROUGH: The Honorable Danny Avula, Mayor
THROUGH: Odie Donald II, Chief Administrative Officer
THROUGH: Letitia Shelton, Director of Finance
THROUGH: Meghan Brown, Director of Budget and Strategic Planning
THROUGH: Amy Popovich, DCAO for Human Services
FROM: Jason Alley, Policy Advisor
RE: To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to accept funds in the amount of $611,807.50 from the National Opioid Settlement Fund, resulting from settlement agreements with Settling Distributors, Walgreens, Walmart, Distributor, CVS, Allergan, Teva, and Kroger
ORD. OR RES. No.
PURPOSE: To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to accept funds in the amount of $611,807.50 from the National Opioid Settlement Fund, resulting from settlement agreements with Settling Distributors, Walgreens, Walmart, Distributor, CVS, Allergan, Teva, and Kroger, and to amend Ordinance No. 2025-057, adopted May 12, 2025, which adopted a Special Fund Budget for the fiscal 2025-2026 and made appropriations thereto, by increasing revenues and the amount appropriated to the Department of Neighborhood and Community Services’ National Opioid Settlement Special Fund by $611,807.50, for the purpose of funding opioid abatement and remediation strategies to combat the opioid crisis.
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BACKGROUND: By Res. No. 2018-R094, adopted November 13, 2018, City Council established a policy to pursue legal action on behalf of the City against drug manufacturers and distributers of opioids. Subsequent ordinances and resolutions - Ord. No. 2021-234 adopted Sept. 27, 2021, and Res. No. 202-R078, adopted Dec. 13, 2021 - authorized the City’s agreement with the Virginia Opioid Abatement Authority and participation in various settlements. Ordinance No. 2023-293 created a new special fund called the National Opioid Settlement Special Fund.
On September 27, 2021, the City entered into the Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of Understanding (“Virginia MOU”). Pursuant to Section D.2-3 of the Virginia MOU, a supplemental attorneys’ fees and costs fund was established to compensate counsel for the Participating Political Subdivisions that filed suit on or prior to April 30, 2020 (the “Deficiency Fund”). Pursuant to Section D.4 of the Virginia MOU, the amount allocated to the Deficiency Fund was 25% of the Subdivision Share and 25% of the Direct Subdivision Abatement Share of each payment. The trustees of the Deficiency Fund have informed us that there are funds remaining in the fund after payment to counsel for the Settlements and Payment Years in the attached spreadsheet. Pursuant to Section D.7 of the Virginia MOU, the remaining funds are reverting back to the Participating Political Subdivisions, including the City, in accordance with the Allocation Percentages in the attached spreadsheet.
COMMUNITY ENGAGEMENT: Opioid abatement and remediation strategies utilized by the City of Richmond have and continue to be informed by significant stakeholder engagement and developed with direct input and support from external agencies and subject matter experts, including the Richmond Opioid Task Force.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: RES. 2022-R013 declaring opioid drug overdose deaths as a public health crisis in the City of Richmond; Richmond Opioid Task Force.
FISCAL IMPACT: These funds are from the National Opioids Settlement in the amount of $611,807.50. This will increase the Department of Neighborhood and Community Services’ National Opioid Settlement Special Fund by $611,807.50. There is no city match requirement.
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE:
CITY COUNCIL PUBLIC HEARING DATE:
REQUESTED AGENDA: Consent agenda
RECOMMENDED COUNCIL COMMITTEE: Finance and Economic Development
AFFECTED AGENCIES: Budget and Strategic Planning, Finance, Neighborhood and Community Services
RELATIONSHIP TO EXISTING ORD. OR RES.: Res. No. 2018-R094; Ord. No. 2021-234; Res. No. 2021-R078; Resolution 2022-R013; Res. No. 2023-R010; Ord. No. 2024-099
ATTACHMENTS: Virginia Deficiency Fund Revision Payments Spreadsheet, Exhibit E List of Opioid Remediation Uses
STAFF: Anna Jones, Opioid Response Strategist, 804-987-9160, anna.jones@rva.gov;
Jason Alley, Policy Advisor, 804-401-5863, jason.alley@rva.gov