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<br />July 8, 2025
<br />
<br />Recommended Action:
<br />
<br /> Adoption of the ordinance.
<br />
<br />Next Steps Following Council Action:
<br />
<br /> Finance will enter the necessary budget transfers.
<br />
<br />Motion by Mr. Moody, and seconded by Mr. Hugel, to adopt the following
<br />ordinance, and was adopted by the following vote:
<br />
<br />“ORDINANCE APPROPRIATING $625,000 FROM THE FUND BALANCE OF THE
<br />BEHAVIORAL HEALTHCARE SERVICE FUND TO THE FY 2026 BEHAVIORAL
<br />HEALTHCARE SERVICE FUND BUDGET FOR THE PURPOSE OF ACQUIRING
<br />BUSINESS SOFTWARE AND OFFICE TECHNOLOGIES.
<br />”
<br />
<br />Ayes: Bryant, Dodson, Hugel, Moody, Thomas, Tillage, Glover
<br />Nays: None
<br />
<br />25 - 201 - Adoption of an ordinance accepting settlement funds in the amount of
<br />$24,733.62 from an opioid settlement and appropriating said amount in the FY 2026
<br />Behavioral Healthcare Service Fund for use by BHS for approved abatement
<br />purposes as defined by the Virginia Opioid Fund and Settlement Allocation MOU.
<br />
<br />Background:
<br />
<br /> The City of Portsmouth was one of several Virginia localities to file suit against
<br />entities engaged in the manufacture, marketing, promotion, distribution, and dispensing
<br />of opioids.
<br />
<br /> In 2021 the Commonwealth of Virginia reached a global settlement of claims
<br />against many of the opioid entities on behalf of itself and its participating localities,
<br />including Portsmouth. The settlement provided for payment of approximately
<br />$608,000,000 to the Commonwealth (the “Settlement Funds”) over an 18-year period.
<br />
<br /> In order to participate in the Commonwealth’s settlement and receive distributions
<br />of a portion of the Settlement Funds, Portsmouth released its claims and entered into a
<br />Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of
<br />Understanding with the Commonwealth and other localities (the “Settlement MOU”).
<br />
<br /> City Council approved the Settlement MOU by Resolution R-21-24 adopted on
<br />August 10, 2021.
<br />
<br />Discussion:
<br />
<br /> Under the terms of the Settlement MOU, the City will receive regular
<br />disbursements of a portion of the Settlement Funds received by the Commonwealth.
<br />
<br /> In August of 2022, the City received a disbursement of Settlement Funds in the
<br />amount of $78,765.20, which was accepted and appropriated through City Council
<br />ordinance 2022-80 adopted on September 13, 2022.
<br />
<br /> In October of 2022, the City received an additional disbursement of Settlement
<br />Funds in the amount of $82,778.38, which was accepted and appropriated through City
<br />Council ordinance 2022-93 adopted on October 25, 2022.
<br />
<br /> In November of 2022, the City received an additional disbursement of Settlement
<br />Funds in the amount of $315,332.05, which was accepted and appropriated through City
<br />Council ordinance 2022-98 adopted on November 22, 2022.
<br />
<br /> In February of 2023, the City received an additional disbursement of Settlement
<br />Funds in the amount of $20,272.32, which was accepted and appropriated through City
<br />Council ordinance 2023-09 adopted on February 28, 2023.
<br />
<br /> In March of 2023, the City received two additional disbursements of Settlement
<br />Funds in the amounts of $53,847.86 and $26,396.02, for a total of $80,243.88, which total
<br />amount was accepted and appropriated through City Council ordinance 2023-19 adopted
<br />on March 28, 2023.
<br />
<br /> In August of 2023, the City received an additional disbursement of Settlement
<br />Funds in the amount of $82,778.38, which was accepted and appropriated through City
<br />Council ordinance 2023-80 adopted on September 12, 2023.
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