TO: Honorable Mayor and Members of the City Council
FROM: Jarad Hildenbrand, City Manager
1. SUBJECT
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Appropriation of $1,200,000 from the Opioid Settlement Fund to fulfill partial payment obligations for the North Service Planning Area (SPA) Navigation Centers.
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2. SUMMARY
This item requests a $1,200,000 appropriation from the Opioid Settlement funds to support program costs for the North Service Planning Area Navigation Centers. The California Department of Health Care Services has confirmed this is an eligible use and aligns with the approved spending categories for opioid remediation activities.
3. RECOMMENDED ACTION
recommendation
Authorize the appropriation of $1,200,000 from the Opioid Settlement Fund (226) unreserved fund balance to: 412-1201-50102-251205 North SPA Navigation Centers
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4. FISCAL IMPACT
There is no direct fiscal impact to the City. The additional revenue received from the Opioid Settlement funds will partially fund this program. Upon approval of this appropriation, the estimated Opioid Settlement Fund (226) fund balance at June 30, 2026, will be $276,883.62
5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services
Objective1.6: Assist those experiencing homelessness
6. DISCUSSION AND BACKGROUND
City's Use of Opioid Settlement Funding
Nationwide Settlements were reached to resolve over 3,000 opioid-related lawsuits and investigations initiated by state and local governments across the country. The State of California (CA) established the CA Subdivision Fund to allocate settlement funds to cities and counties (Participating Subdivisions) that elected to participate in these settlements. Payment timeframes vary by settlements and can extend up to 18 years, until 2038.
The CA Department of Health Care Services (DHCS) oversees and monitors compliance, ensuring proper spending and reporting by Participating Subdivisions. Participating Subdivisions must adhere to specific spending guidelines outlin...
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