HomeMy WebLinkAboutAgenda - City Council - 09/20/2021AGENDA
SOUTH BURLINGTON CITY COUNCIL South Burlington City Hall 180 Market Street SOUTH BURLINGTON, VERMONT
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Regular Session 6:30 P.M. Monday, September 20, 2021 1.Pledge of Allegiance. (6:30 PM)
2.Instructions on exiting building in case of emergency. (6:31 – 6:32 PM)
3.Agenda Review: Additions, deletions or changes in order of agenda items. (6:32 – 6:33 PM)
4.Comments and questions from the public not related to the agenda. (6:34 – 6:44 PM)
5.Announcements and City Manager’s Report. (6:45 – 6:55 PM)
6.Consent Agenda: (6:55 – 7:00 PM)
A.*** Consider and Sign Disbursements
7.*** Receive update from the Attorney General's Office on current opioid settlementdiscussions - Jessie Baker, City Manager and Colin McNeil, City Attorney (7:00 – 7:20 PM)
8.Interview and consider appointment of Sextons - Jessie Baker, City Manager (7:20 – 7:40
PM)
9.*** Approve appointments to the Common Areas for Dogs Committee - Jessie Baker, CityManager (7:40 – 7:45 PM)
10.***Approve appointments to the Climate Action Plan Task Force - Jessie Baker, City
Manager (7:45 – 7:55 PM)
11.*** Consider letter drafted for Open Space Plan property owners on possibility for futureconservation - Jessie Baker, City Manager (7:55 – 8:15 PM)
12.*** Receive a report on the FY21 yearend financials - Martha Machar, Finance Officer, andAndrew Bolduc, Deputy City Manager (8:15 – 8:35 PM)
13.*** Establish Special Contingency Fund for Health Care Costs and approve a fund balancetransfer from FY21 funds to this fund - Martha Machar, Finance Officer, and Andrew Bolduc,
Deputy City Manager (8:35 – 8:45 PM)
14.*** Approve an assigned fund balance transfer from FY21 funds for use in FY22 for
previously approved upgrades at the DPW Garage - Martha Machar, Finance Officer, andAndrew Bolduc, Deputy City Manager (8:45 – 8:50 PM)
15.*** Receive an update on the financial accounting of the 180 Market Street construction -Ilona Blanchard, Community Development Director (8:50 – 9:10 PM)
16.Receive and update on the Tax Increment Financing District financial model - IlonaBlanchard, Community Development Director (9:10 -9:30 PM)
17.*** FY23 Budget: Council discussion of budget goals - Jessie Baker, City Manager, andAndrew Bolduc, Deputy City Manager (9:30 – 9:50 PM)
18.Reports from Councilors on Committee assignments (9:50 -10:00 PM)
19.Other Business (10:00 – 10:05 PM)
20. Adjourn (10:05 PM)
Respectfully Submitted:
Jessie Baker City Manager
*** Attachments Included
Champlain Water District
Check/Voucher Register - Check Report by Fund
From 9/21/2021 Through 9/21/2021
Check Date Check Number Vendor Name Invoice Description Check Amount Invoice Number
9/21/2021 4300 Champlain Water District - Retail Invoices 51,474.93 SBWD-377
9/21/2021 4301 Champlain Water District Water Consumption - August 2021 139,213.06 AUGUST083121
9/21/2021 Champlain Water District SBWD Invoices 390.97 SBWD-370
9/21/2021 4302 E.J. Prescott Harbor Ridge Service Box 12.58 5919989
9/21/2021 4303 Integra Chemical Company SBWD Invoices 671.15 0137595-IN
9/21/2021 4304 South Burlington Sewer Department August 2021 Sewer Billings 286,025.78 0821SEWER
9/21/2021 4305 South Burlington Stormwater Department August 2021 Stormwater Fees 145,083.66 0821STORMWATER
9/21/2021 4306 Ti-Sales, Inc.SBWD Invoices 3,361.43 INV0134734
9/21/2021 Ti-Sales, Inc.SBWD Invoices 2,952.00 INV0135195
Total 70 - South Burlington Water
Department
629,185.56
Report Total 629,185.56
70 - South Burlington Water Department
SOUTH BURLINGTON CITY COUNCIL
Page: 1
1
THOMAS J. DONOVAN, JR. ATTORNEY GENERAL
JOSHUA R. DIAMOND
DEPUTY ATTORNEY GENERAL
SARAH E.B. LONDON CHIEF ASST. ATTORNEY GENERAL
TEL: (802) 828-3171 http://www.ago.vermont.gov
STATE OF VERMONT OFFICE OF THE ATTORNEY GENERAL 109 STATE STREET MONTPELIER, VT 05609-1001
To: Speaker Jill Krowinski; President Pro Tempore Rebecca Balint; Jaye Johnson, Governor’s
Counsel; Senator Randy Brock; Representative Patricia McCoy; Catharine Benham, Joint
Fiscal Office; Kristin Clouser, Deputy Secretary of Administration; Senator Jane Kitchel;
Representative Mary Hooper; Senator Virginia Lyons; Representative Ann Pugh;
Joyce McKeeman, Orange County Assistant Judge; Vermont League of Cities and Towns
From: Deputy Attorney General Joshua Diamond; Assistant Attorney General Jill Abrams
Date: September 14, 2021
Re: Vermont Attorney General’s Executive Summary of Opioid Distributors and J&J
Settlements
The Vermont Attorney General’s Office has been fighting to end the opioid crisis and hold
industry accountable for their role in promoting and profiting from the opioid epidemic. As a
result of its efforts, both individually and collectively with State Attorneys General and
thousands of other state subdivisions (e.g. cities, towns, and counties) settlements have been
reached with Opioid Distributors and J&J.
The Distributors. A $21 billion settlement is being proposed to settle lawsuits by State
Attorneys General and thousands of state subdivisions (e.g., cities, towns, and counties) against
the three major distributors, McKesson, Cardinal, and Amerisource Bergen (the “Distributors”).
Vermont has been in litigation with McKesson and Cardinal, the two largest pharmaceutical
distributors into Vermont, for almost 2 ½ years. We allege that the Distributors: distributed
large quantities of addictive opioids into Vermont and failed to design and operate effective
controls to monitor, identify, report, and prevent the fulfillment of suspicious orders that would
create a risk of abuse; colluded in marketing efforts with the opioid manufacturers; and failed
to implement effective anti-diversion programs. In so doing, the Distributors violated Vermont’s
2
Consumer Protection Act, created a public nuisance, and otherwise engaged in negligent
activities.
In addition to the State’s lawsuits, four Vermont towns and cities – Bennington, Brattleboro,
Saint Albans, and Sharon – also sued the Distributors.
J&J. A $5 billion settlement is also being proposed to settle lawsuits and investigations by State
Attorneys General and thousands of state subdivisions against Johnson & Johnson and Janssen
(“J&J”), including those filed by the four Vermont towns and cities.
The Settlement Agreements for both the Distributors and J&J announced in July 2021 (the
“SAs”) provide ways for states and their subdivisions across the country to receive money. As
explained below, the settlement is designed with incentives for states and subdivision to sign
on so that the amount of money received is maximized.
This Executive Summary provides: (i) an overview of the settlement funds that Vermont may
receive from the Distributors and J&J (ii) details about how Vermont can maximize the
payments under the SAs, (iii) the steps needed to effectuate the settlement, (iv) other
mechanics needed for the distribution of settlement monies, and (v) injunctive relief that will
be imposed by the SAs. Differences between the Distributor and J&J settlements are noted.
I.The Settlement Funds
Distributors
Of the $21 billion total settlement figure:
•$19,045,346,616 is paid over 18 years for use by states and subdivisions to abate or
remediate the opioid crisis.
•$1.671 billion is paid towards attorneys’ fees and costs. This includes attorneys’ fees for
the thousands of subdivisions who have sued.
The SA provides for other offsets, such as money specifically allocated for Tribes (2.58%). A net
amount of approximately $18.5 billion will be paid to states and their subdivisions.1
The annual payments could be deferred within the 18 years if a Distributor suffers significant,
demonstrable financial constraints. The SA also provides that the Distributors may advance
some payments, subject to a discount rate for early payment.
1 Additional reductions from the Distributor and J&J settlement amounts may occur for possible claims for
reimbursement of opioid-related expenses by Medicaid and costs associated with the administration of the
settlement funds that are not otherwise covered by interest generated from settlement funds held in escrow.
3
J&J
Of the $5 billion total settlement figure:
•$4,264,615,385 is paid over 10 years for use by states and subdivisions to abate or
remediate the opioid crisis.
•$ 465,384,615 is paid towards attorneys’ fees and costs (including attorneys’ fees for the
thousands of subdivisions who have sued), payment to the Tribes, and potential
outstanding liability of J&J pending a decision from the Oklahoma Supreme Court. 2
Both Settlements
The settlements are designed to be allocated in 3 “buckets”:
•15% to state subdivisions to be used to abate the opioid crisis (the “Subdivision Fund”);
•15% to states to remediate for past expenses of the opioid crisis or for future abatement
(the “State Fund”); and
•70% to a statewide abatement fund (the “Abatement Fund”).
Each state has been allocated a percentage of the total Settlement Fund based on a
formula that considers the number of opioid overdose deaths in the state, the number of people
in the state with Opioid Use Disorder, the amount of state opioid sales, and population.
Vermont’s share of the Distributors settlement is .0284% (well over our .019 of the population),
or approximately $53 million over 18 years. Vermont’s share of the J&J settlement is
.2876050633% of the settlement proceeds, or a total of $12,265,249 over 10 years.
II. Maximizing Vermont’s Payment
The Distributors and J&J SAs are designed to incentivize sign-on by states and their subdivisions
with a “Base” amount and four types of “Incentives.” These Incentives are labeled A, B, C, and
D. The total amount of money that comes into a state (to be shared 15%-15%-70%, as outlined
above) depends on the incentive level attained.
Distributors
The Base amount is 55 % of the annual payment. The Incentive payments are A (which provides
an additional 40% over the 55% Base payment), B (an additional 25% over the Base payment) C
(an additional 15% over the Base payment), and D (an additional 5% over the Base payment).
Whether a State qualifies for Incentive A, B, or C depends on the percentage of “Litigating”
Subdivisions and “Non-Litigating” Primary Subdivisions that have released their claims. A
2 States that sued J&J will receive reimbursement of their counsel fees from a $67,307,691 fund. Vermont would
receive $262,047 (which is .3893298238% of the $67,307,691 “Additional Restitution Amount” being paid to states
that did not sue J&J) over Years 1-3 in additional to the $12,265,249 it will receive from the J&J settlement.
4
Primary Subdivision is one that has a population of over 10,000. The SA has exhibits that
identify each Litigating and Primary Subdivisions.3
In Years 1 and 2, all settling states are deemed eligible for the Base plus Incentive A. A state
that does not continue to qualify for Incentive A after Year 2 will have its future payments
reduced accordingly in Years 3 through 7.
Incentive A is our goal because we receive 95% of our payment every year. For Vermont to
receive Incentive A for all 18 years, we need certain entities to sign on to the settlement by May
14, 2024. They are:
•the “Litigating Subdivisions” (Brattleboro, Bennington, Sharon, and St. Albans);
•Vermont towns with a population over 10,000 (Burlington, South Burlington, Colchester,
Essex, Essex Junction, Rutland, Milton, and Williston); and
•12 of our 14 counties (not Grand Isle or Essex).4
Any other Vermont subdivision with a population under 10,000 that also signs on will receive its
allocated share of the 15% Subdivision Fund. If those other subdivisions do not sign on, their
share will go to the 70% Abatement Fund.
Incentives B plus C equal Incentive A. Incentive B (which provides a 25% incentive payment)
relates to the number of Litigating Subdivisions that sign on and C (which provides a 15%
incentive payment) relates to towns over 30,000 that sign on, plus the number of Litigating
Subdivisions that sign on. In Vermont, that would mean that Burlington plus all the Litigating
Subdivisions would equal 40%. Incentive D (5% over the Base) begins in Year 6 and is paid to
any state in which no subdivisions have brought new litigation or where a subdivision brings a
lawsuit after the settlement that does not survive more than 6 months after a Distributor
moves to dismiss the case.
There will be a Settlement Administrator that determines the yearly payments, and tells the
states, Distributors, and an Enforcement Committee (comprised of settling states and
subdivision members) the payment amount for that year 50 days in advance of the payment.
States and subdivisions have the right to challenge the Settlement Administrator’s calculations.
Challenges must be made 21 days in advance of the payment date.
The effective date of the SA is April 2, 2022. If a state’s consent judgment (the document filed
with the Court by the Attorney General regarding our agreement to settle and release our
claims against the Distributors) has been entered by the Court by that time, the funds will be
released to the state, as well as to the subdivisions that have released their claims. If the
Consent Judgement has not yet been entered, the funds will be paid 10 days after its entry.
3 See Exhibits C and G.
4 Subdivisions that do not sign on to the SA by January 2, 2022, and wait until May 14, 2024, will forgo receiving
direct payments in years 1 and 2. Such payments will revert to the Abatement Fund. Infra., section IV.
5
The payment date for Year 2 is July 15, 2022, and subsequent annual payments will also be
made on July 15.
The Distributors may terminate the SA with a state whose consent judgment has not been
entered by Oct. 2, 2022, or whose consent judgment was disapproved by the court and the
time to appeal expired.
J&J
The SA provides 11 payments over 10 years, with 2 payments in 2022. The Base payment is 45%
of the total and the Bonus is 55%. Similar to the Distributors’ SA, there are four different types
of Bonus payments identified as A, B, C, and D.
J&J must make its first two payments in July 2022, both of which are base payments. It is noted
that while the Distributors provide the maximum payments to all states for 2 payment years,
J&J does so only for the first payment year. However, as explained below, it is possible for
Vermont to receive its payments for Years 1-4 on an accelerated basis.
Bonus A, which amounts to 50% of the total annual payment, requires sign-on of all Litigating
Subdivisions and Nonlitigating Subdivisions with a population over 10,000. This includes the
same subdivisions identified for the Distributors.5 States and their subdivisions may receive
immediate acceleration of base and incentive payments 1-4 upon delivery of settlement
agreements and releases of Litigating Subdivisions and Nonlitigating Subdivisions with a
population exceeding 10,000 “within 90 days of notice, on or after the Effective Date.”
Assuming Vermont qualifies for Bonus A, it could receive $6,547,167 (payments 1-4) within 90
days after Effective Date, which is approximately July 2022. The remaining payments (5-11)
would resume in 2025 and continually annually thereafter.
Under Bonus B, a state can get 60% of the Bonus A payment (30% of the total) if all Litigating
Subdivisions sign on but can qualify for a portion of Bonus B if Litigating Subdivisions
representing 75% of the State’s Litigating Subdivisions sign on. There is a sliding scale for the
Bonus B payment based on resolution of Litigating Subdivisions’ opioid liability claims.
Under Bonus C, a state can get 40% of Bonus A payment (20% of the total). There is a sliding
scale based on resolution of the Litigating and Non-Litigating Primary Subdivisions (defined as
30,000 or more). It is in 2 parts. Under the first, a state can receive up to 75% of Bonus C if
Litigating and Non-Litigating Primary Subdivisions representing 60% of the Primary Subdivisions’
population sign on (above 30k population). Under Part 2, if the State already qualifies under
Part 1, it can get an additional 25% of Bonus C if all 10 of its largest subdivisions, by population,
sign-on.
Under Bonus D, a state gets an additional 5% of the total available payments starting in Year 5 if
no Covered Special Districts in a state filed lawsuits after the Effective Date or survive a motion
5 Supra., at p. 4 above.
6
to dismiss. Covered Special Districts are school, hospital and fire districts subject to certain
population thresholds. Vermont has no qualifying Covered Special Districts, and therefore, we
should receive Bonus D.
J&J’s annual payments are due on July 1 in each year.
J&J may terminate the SA with a state whose consent judgment has not been entered by Oct. 2,
2022, or whose consent judgment was disapproved by the court and the time to appeal
expired.
III. Necessary Steps Before Settlement Occurs
A.Key Trigger Dates and Sign-on to the Distributors and J&J Settlements by the State
and its Subdivisions
The SAs sign-on are designed in two phases (with the goal of getting maximum participation of
states and subdivisions) which are conditions to the Distributors’ and J&J’s agreements to
consummate the settlements. The timing and steps are as follows:
1.State Sign-on
By August 21, 2021, each state must inform the Distributors and J&J whether it agrees to settle.
Vermont provided such notice of its agreement to settle. On Sept. 4, 2021, the Distributors and
J&J determined there are enough states signing on to move forward.
2.Subdivision Sign-on
Non-Litigating and Litigating Subdivisions both have the opportunity to become “Participating
Subdivisions.” It is in the interest of all states to get maximum subdivision participation so that
the Distributors and J&J go forward with the settlement. Therefore, Litigating and Non-litigating
Primary Subdivisions should sign onto the SAs before January 2, 2022.
By September 19, 2021, the States will send written notice of the opportunity to participate in
the settlements to the Litigating Subdivisions ( Bennington, Brattleboro, Sharon, and St. Albans)
and the non-litigating subdivisions listed in Exhibit G to the SAs.6 Exhibit G provides the
calculation of the relative allocation of funds available to the respective subdivision as a portion
of the 15% subdivision settlement bucket.
To help facilitate the acceptance of the settlement by the Distributors and J&J Litigating and
Non-Litigating subdivisions with a population over 10,000 should become a “Participating
Subdivision,” by executing the Subdivision Participation Form (Exhibit. K to the SAs and
6 . Exhibit G essentially comprises every Vermont City and Town along with 12 out of the 14 counties (Essex and
Grand Isle counties are excluded).
7
attached to this memo) and return it to the Settlement Fund Administrator by Jan. 2, 2022.
Exhibit K says that the subdivision agrees to the terms of the SAs relating to subdivisions,
releases its claims against the Released Entities (defined in the SAs), the subdivision will use any
monies received for Opioid Remediation Uses (listed in Exhibit E and discussed below), and that
it submits to the jurisdiction of the court where the State will file its Consent Judgment
(Chittenden County Superior Court). The court has jurisdiction for the limited purpose of
overseeing the execution of the agreement.
Vermont subdivisions with populations under 10,000 will be allocated modest sums as part of
the subdivision bucket.7If they sign a release, they will receive those sums directly. If they do
not sign a release, the sums allocated to them will go to the Abatement Fund.
A subdivision can still become a Participating Subdivision after Jan. 2, 2022, but it will receive
fewer payments than it otherwise would have.
States across the country must inform the Distributors and J&J, by January 17, 2022, if there is
sufficient subdivision participation to proceed. Whether the numbers are “sufficient” is
determined by a formula in the SAs that adds together the subdivisions of all states. The
Distributors and J&J will again consider whether to move forward with the SAs after learning
how many subdivisions across the country will join the settlement. The Distributors and J&J
determine whether sign-on participation is sufficient by February 1, 2022.
As set forth above, 12 out of 14 Vermont counties may receive a portion of the subdivision
funds despite Vermont’s unique county governance structure, which is limited to the operation
of county courts. Those funds may be contributed to the Abatement Fund so long as the side
judges sign releases and directs those funds accordingly.
IV. Other Mechanics for Distribution of Monies
The SAs provides a default mechanism for distributing the Abatement Fund that comprises 70%
of the settlement monies. The default mechanism requires the State to designate an agency
that will request the monies for approved purposes. Those approved purposes can be found at
Exhibit E to the SAs, which is attached to this memo.8 These approved purposes include, but are
not limited to:
• MAT Treatment; Naloxone for overdoses;
• Treatment for those with opioid use disorder;
• Treatment for mothers and infants with neonatal abstinence syndrome;
7 . See Exhibit G for percentages attributed to the requisite subdivisions that are allocated from the 15%
Subdivision bucket.
8 It is noted that various Vermont agencies and departments provided substantial input into the list of approved
abatement purposes. These include the Vermont Department of Health, Vermont Department of Public Safety,
and Blueprint for Health.
8
•Recovery services;
•Prevention programs;
•Expanding syringe service programs;
•Addressing the needs of persons with opioid use disorder or co-occurring
conditions who are at risk of, involved in, or transitioning out of the criminal
justice system;
•Support for first responders; and
•Related training; research.
In addition, an Advisory Committee must be established to make recommendations to the
designated agency for spending of the Abatement Fund. The SAs require that the Advisory
Committee be comprised of an equal number of both state and subdivision representatives.
The SAs also require that the Advisory Committee have written guidelines for the appointment,
removal, and terms of service for its members; a meeting schedule; and a process for receiving
input from the cities and town regarding their needs and proposals for abatement. The
Settlement Agreement is silent as to who is the assigning authority for the Advisory
Committee.9
VI. Key Injunctive Terms
Distributors
In addition to the money, we obtained key injunctive terms so that the Distributors’ current
behavior does not continue. The injunctive relief terms prohibit the shipping of suspicious
orders and implement a system designed so regulators know where the drugs are going. It must
be put into place by July 2, 2022.
Here is an overview that will incorporated into court orders requiring Cardinal, McKesson, and
AmerisourceBergen to:
•Establish a centralized independent clearinghouse to provide all three
distributors and state regulators with aggregated data and analytics about
where controlled substances are going and how often, eliminating blind spots
in the current systems used by distributors;
•Use data-driven systems to detect suspicious opioid orders from customer
pharmacies;
9 It is believed that designation of the respective state agency and creation of Advisory Committee can be
established by either legislation or an executive order. While this Memorandum does not address the Purdue
Bankruptcy, it is contemplated that a similar mechanism will be required for the disbursement of funds for opioid
abatement. Other criteria under the terms of the proposed bankruptcy discharge plan include a chair for the advisory committee that is non-voting, representatives who have expertise in areas of public health, substance
abuse, and health care equity, and the requirement to meet at least four times annually.
9
• Terminate customer pharmacies’ ability to receive shipments, and report
those companies to state regulators, when they show certain signs of
diversion;
• Prohibit shipping of and report suspicious opioid orders;.
• Prohibit sales staff from influencing decisions related to identifying suspicious
opioid orders; and
• Require senior corporate officials to engage in regular oversight of anti-
diversion efforts including the appointment of Chief Diversion Control Officer to
oversee injunctive Controlled substance Monitoring Program.
J&J
The injunctive terms include the following:
• J&J will not manufacture or sell any opioids for distribution in the U.S. (except
Nucynta because it has an existing manufacturing contract with another
company);
• It is not permitted to promote any opioid or opioid product, including products
used for the treatment of opioid-induced side effects;
• It is not permitted to promote the treatment of pain except with non-opioids
like Tylenol and Motrin; and
• J&J will not directly or indirectly provide financial or other support to a third
party that promotes opioids, opioid products or products that treat opioid-
induced side effects.
E-1
EXHIBIT E
List of Opioid Remediation Uses
Schedule A
Core Strategies
States and Qualifying Block Grantees shall choose from among the abatement strategies listed in
Schedule B. However, priority shall be given to the following core abatement strategies (“Core
Strategies”).14
A.NALOXONE OR OTHER FDA-APPROVED DRUG TO
REVERSE OPIOID OVERDOSES
1.Expand training for first responders, schools, community
support groups and families; and
2.Increase distribution to individuals who are uninsured or
whose insurance does not cover the needed service.
B.MEDICATION-ASSISTED TREATMENT (“MAT”)
DISTRIBUTION AND OTHER OPIOID-RELATED
TREATMENT
1.Increase distribution of MAT to individuals who are
uninsured or whose insurance does not cover the needed
service;
2.Provide education to school-based and youth-focused
programs that discourage or prevent misuse;
3.Provide MAT education and awareness training to
healthcare providers, EMTs, law enforcement, and other
first responders; and
4.Provide treatment and recovery support services such as
residential and inpatient treatment, intensive outpatient
treatment, outpatient therapy or counseling, and recovery
housing that allow or integrate medication and with other
support services.
14 As used in this Schedule A, words like “expand,” “fund,” “provide” or the like shall not indicate a preference for
new or existing programs.
E-2
C. PREGNANT & POSTPARTUM WOMEN
1. Expand Screening, Brief Intervention, and Referral to
Treatment (“SBIRT”) services to non-Medicaid eligible or
uninsured pregnant women;
2. Expand comprehensive evidence-based treatment and
recovery services, including MAT, for women with co-
occurring Opioid Use Disorder (“OUD”) and other
Substance Use Disorder (“SUD”)/Mental Health disorders
for uninsured individuals for up to 12 months postpartum;
and
3. Provide comprehensive wrap-around services to individuals
with OUD, including housing, transportation, job
placement/training, and childcare.
D. EXPANDING TREATMENT FOR NEONATAL
ABSTINENCE SYNDROME (“NAS”)
1. Expand comprehensive evidence-based and recovery
support for NAS babies;
2. Expand services for better continuum of care with infant-
need dyad; and
3. Expand long-term treatment and services for medical
monitoring of NAS babies and their families.
E. EXPANSION OF WARM HAND-OFF PROGRAMS AND
RECOVERY SERVICES
1. Expand services such as navigators and on-call teams to
begin MAT in hospital emergency departments;
2. Expand warm hand-off services to transition to recovery
services;
3. Broaden scope of recovery services to include co-occurring
SUD or mental health conditions;
4. Provide comprehensive wrap-around services to individuals
in recovery, including housing, transportation, job
placement/training, and childcare; and
5. Hire additional social workers or other behavioral health
workers to facilitate expansions above.
E-3
F.TREATMENT FOR INCARCERATED POPULATION
1.Provide evidence-based treatment and recovery support,
including MAT for persons with OUD and co-occurring
SUD/MH disorders within and transitioning out of the
criminal justice system; and
2.Increase funding for jails to provide treatment to inmates
with OUD.
G.PREVENTION PROGRAMS
1.Funding for media campaigns to prevent opioid use (similar
to the FDA’s “Real Cost” campaign to prevent youth from
misusing tobacco);
2.Funding for evidence-based prevention programs in
schools;
3.Funding for medical provider education and outreach
regarding best prescribing practices for opioids consistent
with the 2016 CDC guidelines, including providers at
hospitals (academic detailing);
4.Funding for community drug disposal programs; and
5.Funding and training for first responders to participate in
pre-arrest diversion programs, post-overdose response
teams, or similar strategies that connect at-risk individuals
to behavioral health services and supports.
H.EXPANDING SYRINGE SERVICE PROGRAMS
1.Provide comprehensive syringe services programs with
more wrap-around services, including linkage to OUD
treatment, access to sterile syringes and linkage to care and
treatment of infectious diseases.
I.EVIDENCE-BASED DATA COLLECTION AND
RESEARCH ANALYZING THE EFFECTIVENESS OF THE
ABATEMENT STRATEGIES WITHIN THE STATE
E-4
Schedule B
Approved Uses
Support treatment of Opioid Use Disorder (OUD) and any co-occurring Substance Use Disorder
or Mental Health (SUD/MH) conditions through evidence-based or evidence-informed programs
or strategies that may include, but are not limited to, the following:
PART ONE: TREATMENT
A.TREAT OPIOID USE DISORDER (OUD)
Support treatment of Opioid Use Disorder (“OUD”) and any co-occurring Substance Use
Disorder or Mental Health (“SUD/MH”) conditions through evidence-based or evidence-
informed programs or strategies that may include, but are not limited to, those that:15
1.Expand availability of treatment for OUD and any co-occurring SUD/MH
conditions, including all forms of Medication-Assisted Treatment (“MAT”)
approved by the U.S. Food and Drug Administration.
2.Support and reimburse evidence-based services that adhere to the American
Society of Addiction Medicine (“ASAM”) continuum of care for OUD and any co-
occurring SUD/MH conditions.
3.Expand telehealth to increase access to treatment for OUD and any co-occurring
SUD/MH conditions, including MAT, as well as counseling, psychiatric support,
and other treatment and recovery support services.
4.Improve oversight of Opioid Treatment Programs (“OTPs”) to assure evidence-
based or evidence-informed practices such as adequate methadone dosing and low
threshold approaches to treatment.
5.Support mobile intervention, treatment, and recovery services, offered by
qualified professionals and service providers, such as peer recovery coaches, for
persons with OUD and any co-occurring SUD/MH conditions and for persons
who have experienced an opioid overdose.
6.Provide treatment of trauma for individuals with OUD (e.g., violence, sexual
assault, human trafficking, or adverse childhood experiences) and family
members (e.g., surviving family members after an overdose or overdose fatality),
and training of health care personnel to identify and address such trauma.
7.Support evidence-based withdrawal management services for people with OUD
and any co-occurring mental health conditions.
15 As used in this Schedule B, words like “expand,” “fund,” “provide” or the like shall not indicate a preference for
new or existing programs.
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8.Provide training on MAT for health care providers, first responders, students, or
other supporting professionals, such as peer recovery coaches or recovery
outreach specialists, including telementoring to assist community-based providers
in rural or underserved areas.
9.Support workforce development for addiction professionals who work with
persons with OUD and any co-occurring SUD/MH conditions.
10.Offer fellowships for addiction medicine specialists for direct patient care,
instructors, and clinical research for treatments.
11.Offer scholarships and supports for behavioral health practitioners or workers
involved in addressing OUD and any co-occurring SUD/MH or mental health
conditions, including, but not limited to, training, scholarships, fellowships, loan
repayment programs, or other incentives for providers to work in rural or
underserved areas.
12.Provide funding and training for clinicians to obtain a waiver under the federal
Drug Addiction Treatment Act of 2000 (“DATA 2000”) to prescribe MAT for
OUD, and provide technical assistance and professional support to clinicians who
have obtained a DATA 2000 waiver.
13.Disseminate of web-based training curricula, such as the American Academy of
Addiction Psychiatry’s Provider Clinical Support Service–Opioids web-based
training curriculum and motivational interviewing.
14.Develop and disseminate new curricula, such as the American Academy of
Addiction Psychiatry’s Provider Clinical Support Service for Medication–
Assisted Treatment.
B.SUPPORT PEOPLE IN TREATMENT AND RECOVERY
Support people in recovery from OUD and any co-occurring SUD/MH conditions
through evidence-based or evidence-informed programs or strategies that may include,
but are not limited to, the programs or strategies that:
1.Provide comprehensive wrap-around services to individuals with OUD and any
co-occurring SUD/MH conditions, including housing, transportation, education,
job placement, job training, or childcare.
2.Provide the full continuum of care of treatment and recovery services for OUD
and any co-occurring SUD/MH conditions, including supportive housing, peer
support services and counseling, community navigators, case management, and
connections to community-based services.
3.Provide counseling, peer-support, recovery case management and residential
treatment with access to medications for those who need it to persons with OUD
and any co-occurring SUD/MH conditions.
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4.Provide access to housing for people with OUD and any co-occurring SUD/MH
conditions, including supportive housing, recovery housing, housing assistance
programs, training for housing providers, or recovery housing programs that allow
or integrate FDA-approved mediation with other support services.
5.Provide community support services, including social and legal services, to assist
in deinstitutionalizing persons with OUD and any co-occurring SUD/MH
conditions.
6.Support or expand peer-recovery centers, which may include support groups,
social events, computer access, or other services for persons with OUD and any
co-occurring SUD/MH conditions.
7.Provide or support transportation to treatment or recovery programs or services
for persons with OUD and any co-occurring SUD/MH conditions.
8.Provide employment training or educational services for persons in treatment for
or recovery from OUD and any co-occurring SUD/MH conditions.
9.Identify successful recovery programs such as physician, pilot, and college
recovery programs, and provide support and technical assistance to increase the
number and capacity of high-quality programs to help those in recovery.
10.Engage non-profits, faith-based communities, and community coalitions to
support people in treatment and recovery and to support family members in their
efforts to support the person with OUD in the family.
11.Provide training and development of procedures for government staff to
appropriately interact and provide social and other services to individuals with or
in recovery from OUD, including reducing stigma.
12.Support stigma reduction efforts regarding treatment and support for persons with
OUD, including reducing the stigma on effective treatment.
13.Create or support culturally appropriate services and programs for persons with
OUD and any co-occurring SUD/MH conditions, including new Americans.
14.Create and/or support recovery high schools.
15.Hire or train behavioral health workers to provide or expand any of the services or
supports listed above.
C.CONNECT PEOPLE WHO NEED HELP TO THE HELP THEY NEED
(CONNECTIONS TO CARE)
Provide connections to care for people who have—or are at risk of developing—OUD
and any co-occurring SUD/MH conditions through evidence-based or evidence-informed
programs or strategies that may include, but are not limited to, those that:
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1.Ensure that health care providers are screening for OUD and other risk factors and
know how to appropriately counsel and treat (or refer if necessary) a patient for
OUD treatment.
2.Fund SBIRT programs to reduce the transition from use to disorders, including
SBIRT services to pregnant women who are uninsured or not eligible for
Medicaid.
3.Provide training and long-term implementation of SBIRT in key systems (health,
schools, colleges, criminal justice, and probation), with a focus on youth and
young adults when transition from misuse to opioid disorder is common.
4.Purchase automated versions of SBIRT and support ongoing costs of the
technology.
5.Expand services such as navigators and on-call teams to begin MAT in hospital
emergency departments.
6.Provide training for emergency room personnel treating opioid overdose patients
on post-discharge planning, including community referrals for MAT, recovery
case management or support services.
7.Support hospital programs that transition persons with OUD and any co-occurring
SUD/MH conditions, or persons who have experienced an opioid overdose, into
clinically appropriate follow-up care through a bridge clinic or similar approach.
8.Support crisis stabilization centers that serve as an alternative to hospital
emergency departments for persons with OUD and any co-occurring SUD/MH
conditions or persons that have experienced an opioid overdose.
9.Support the work of Emergency Medical Systems, including peer support
specialists, to connect individuals to treatment or other appropriate services
following an opioid overdose or other opioid-related adverse event.
10.Provide funding for peer support specialists or recovery coaches in emergency
departments, detox facilities, recovery centers, recovery housing, or similar
settings; offer services, supports, or connections to care to persons with OUD and
any co-occurring SUD/MH conditions or to persons who have experienced an
opioid overdose.
11.Expand warm hand-off services to transition to recovery services.
12.Create or support school-based contacts that parents can engage with to seek
immediate treatment services for their child; and support prevention, intervention,
treatment, and recovery programs focused on young people.
13.Develop and support best practices on addressing OUD in the workplace.
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14.Support assistance programs for health care providers with OUD.
15.Engage non-profits and the faith community as a system to support outreach for
treatment.
16.Support centralized call centers that provide information and connections to
appropriate services and supports for persons with OUD and any co-occurring
SUD/MH conditions.
D.ADDRESS THE NEEDS OF CRIMINAL JUSTICE-INVOLVED PERSONS
Address the needs of persons with OUD and any co-occurring SUD/MH conditions who
are involved in, are at risk of becoming involved in, or are transitioning out of the
criminal justice system through evidence-based or evidence-informed programs or
strategies that may include, but are not limited to, those that:
1.Support pre-arrest or pre-arraignment diversion and deflection strategies for
persons with OUD and any co-occurring SUD/MH conditions, including
established strategies such as:
1.Self-referral strategies such as the Angel Programs or the Police Assisted
Addiction Recovery Initiative (“PAARI”);
2.Active outreach strategies such as the Drug Abuse Response Team
(“DART”) model;
3.“Naloxone Plus” strategies, which work to ensure that individuals who
have received naloxone to reverse the effects of an overdose are then
linked to treatment programs or other appropriate services;
4.Officer prevention strategies, such as the Law Enforcement Assisted
Diversion (“LEAD”) model;
5.Officer intervention strategies such as the Leon County, Florida Adult
Civil Citation Network or the Chicago Westside Narcotics Diversion to
Treatment Initiative; or
6.Co-responder and/or alternative responder models to address OUD-related
911 calls with greater SUD expertise.
2.Support pre-trial services that connect individuals with OUD and any co-
occurring SUD/MH conditions to evidence-informed treatment, including MAT,
and related services.
3.Support treatment and recovery courts that provide evidence-based options for
persons with OUD and any co-occurring SUD/MH conditions.
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4.Provide evidence-informed treatment, including MAT, recovery support, harm
reduction, or other appropriate services to individuals with OUD and any co-
occurring SUD/MH conditions who are incarcerated in jail or prison.
5.Provide evidence-informed treatment, including MAT, recovery support, harm
reduction, or other appropriate services to individuals with OUD and any co-
occurring SUD/MH conditions who are leaving jail or prison or have recently left
jail or prison, are on probation or parole, are under community corrections
supervision, or are in re-entry programs or facilities.
6.Support critical time interventions (“CTI”), particularly for individuals living with
dual-diagnosis OUD/serious mental illness, and services for individuals who face
immediate risks and service needs and risks upon release from correctional
settings.
7.Provide training on best practices for addressing the needs of criminal justice-
involved persons with OUD and any co-occurring SUD/MH conditions to law
enforcement, correctional, or judicial personnel or to providers of treatment,
recovery, harm reduction, case management, or other services offered in
connection with any of the strategies described in this section.
E.ADDRESS THE NEEDS OF PREGNANT OR PARENTING WOMEN AND
THEIR FAMILIES, INCLUDING BABIES WITH NEONATAL ABSTINENCE
SYNDROME
Address the needs of pregnant or parenting women with OUD and any co-occurring
SUD/MH conditions, and the needs of their families, including babies with neonatal
abstinence syndrome (“NAS”), through evidence-based or evidence-informed programs
or strategies that may include, but are not limited to, those that:
1.Support evidence-based or evidence-informed treatment, including MAT,
recovery services and supports, and prevention services for pregnant women—or
women who could become pregnant—who have OUD and any co-occurring
SUD/MH conditions, and other measures to educate and provide support to
families affected by Neonatal Abstinence Syndrome.
2.Expand comprehensive evidence-based treatment and recovery services, including
MAT, for uninsured women with OUD and any co-occurring SUD/MH
conditions for up to 12 months postpartum.
3.Provide training for obstetricians or other healthcare personnel who work with
pregnant women and their families regarding treatment of OUD and any co-
occurring SUD/MH conditions.
4.Expand comprehensive evidence-based treatment and recovery support for NAS
babies; expand services for better continuum of care with infant-need dyad; and
expand long-term treatment and services for medical monitoring of NAS babies
and their families.
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5.Provide training to health care providers who work with pregnant or parenting
women on best practices for compliance with federal requirements that children
born with NAS get referred to appropriate services and receive a plan of safe care.
6.Provide child and family supports for parenting women with OUD and any co-
occurring SUD/MH conditions.
7.Provide enhanced family support and child care services for parents with OUD
and any co-occurring SUD/MH conditions.
8.Provide enhanced support for children and family members suffering trauma as a
result of addiction in the family; and offer trauma-informed behavioral health
treatment for adverse childhood events.
9.Offer home-based wrap-around services to persons with OUD and any co-
occurring SUD/MH conditions, including, but not limited to, parent skills
training.
10.Provide support for Children’s Services—Fund additional positions and services,
including supportive housing and other residential services, relating to children
being removed from the home and/or placed in foster care due to custodial opioid
use.
PART TWO: PREVENTION
F.PREVENT OVER-PRESCRIBING AND ENSURE APPROPRIATE
PRESCRIBING AND DISPENSING OF OPIOIDS
Support efforts to prevent over-prescribing and ensure appropriate prescribing and
dispensing of opioids through evidence-based or evidence-informed programs or
strategies that may include, but are not limited to, the following:
1.Funding medical provider education and outreach regarding best prescribing
practices for opioids consistent with the Guidelines for Prescribing Opioids for
Chronic Pain from the U.S. Centers for Disease Control and Prevention, including
providers at hospitals (academic detailing).
2.Training for health care providers regarding safe and responsible opioid
prescribing, dosing, and tapering patients off opioids.
3.Continuing Medical Education (CME) on appropriate prescribing of opioids.
4.Providing Support for non-opioid pain treatment alternatives, including training
providers to offer or refer to multi-modal, evidence-informed treatment of pain.
5.Supporting enhancements or improvements to Prescription Drug Monitoring
Programs (“PDMPs”), including, but not limited to, improvements that:
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1.Increase the number of prescribers using PDMPs;
2.Improve point-of-care decision-making by increasing the quantity, quality,
or format of data available to prescribers using PDMPs, by improving the
interface that prescribers use to access PDMP data, or both; or
3.Enable states to use PDMP data in support of surveillance or intervention
strategies, including MAT referrals and follow-up for individuals
identified within PDMP data as likely to experience OUD in a manner that
complies with all relevant privacy and security laws and rules.
6.Ensuring PDMPs incorporate available overdose/naloxone deployment data,
including the United States Department of Transportation’s Emergency Medical
Technician overdose database in a manner that complies with all relevant privacy
and security laws and rules.
7.Increasing electronic prescribing to prevent diversion or forgery.
8.Educating dispensers on appropriate opioid dispensing.
G.PREVENT MISUSE OF OPIOIDS
Support efforts to discourage or prevent misuse of opioids through evidence-based or
evidence-informed programs or strategies that may include, but are not limited to, the
following:
1.Funding media campaigns to prevent opioid misuse.
2.Corrective advertising or affirmative public education campaigns based on
evidence.
3.Public education relating to drug disposal.
4.Drug take-back disposal or destruction programs.
5.Funding community anti-drug coalitions that engage in drug prevention efforts.
6.Supporting community coalitions in implementing evidence-informed prevention,
such as reduced social access and physical access, stigma reduction—including
staffing, educational campaigns, support for people in treatment or recovery, or
training of coalitions in evidence-informed implementation, including the
Strategic Prevention Framework developed by the U.S. Substance Abuse and
Mental Health Services Administration (“SAMHSA”).
7.Engaging non-profits and faith-based communities as systems to support
prevention.
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8.Funding evidence-based prevention programs in schools or evidence-informed
school and community education programs and campaigns for students, families,
school employees, school athletic programs, parent-teacher and student
associations, and others.
9.School-based or youth-focused programs or strategies that have demonstrated
effectiveness in preventing drug misuse and seem likely to be effective in
preventing the uptake and use of opioids.
10.Create or support community-based education or intervention services for
families, youth, and adolescents at risk for OUD and any co-occurring SUD/MH
conditions.
11.Support evidence-informed programs or curricula to address mental health needs
of young people who may be at risk of misusing opioids or other drugs, including
emotional modulation and resilience skills.
12.Support greater access to mental health services and supports for young people,
including services and supports provided by school nurses, behavioral health
workers or other school staff, to address mental health needs in young people that
(when not properly addressed) increase the risk of opioid or another drug misuse.
H.PREVENT OVERDOSE DEATHS AND OTHER HARMS (HARM REDUCTION)
Support efforts to prevent or reduce overdose deaths or other opioid-related harms
through evidence-based or evidence-informed programs or strategies that may include,
but are not limited to, the following:
1.Increased availability and distribution of naloxone and other drugs that treat
overdoses for first responders, overdose patients, individuals with OUD and their
friends and family members, schools, community navigators and outreach
workers, persons being released from jail or prison, or other members of the
general public.
2.Public health entities providing free naloxone to anyone in the community.
3.Training and education regarding naloxone and other drugs that treat overdoses
for first responders, overdose patients, patients taking opioids, families, schools,
community support groups, and other members of the general public.
4.Enabling school nurses and other school staff to respond to opioid overdoses, and
provide them with naloxone, training, and support.
5.Expanding, improving, or developing data tracking software and applications for
overdoses/naloxone revivals.
6.Public education relating to emergency responses to overdoses.
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7.Public education relating to immunity and Good Samaritan laws.
8.Educating first responders regarding the existence and operation of immunity and
Good Samaritan laws.
9.Syringe service programs and other evidence-informed programs to reduce harms
associated with intravenous drug use, including supplies, staffing, space, peer
support services, referrals to treatment, fentanyl checking, connections to care,
and the full range of harm reduction and treatment services provided by these
programs.
10.Expanding access to testing and treatment for infectious diseases such as HIV and
Hepatitis C resulting from intravenous opioid use.
11.Supporting mobile units that offer or provide referrals to harm reduction services,
treatment, recovery supports, health care, or other appropriate services to persons
that use opioids or persons with OUD and any co-occurring SUD/MH conditions.
12.Providing training in harm reduction strategies to health care providers, students,
peer recovery coaches, recovery outreach specialists, or other professionals that
provide care to persons who use opioids or persons with OUD and any co-
occurring SUD/MH conditions.
13.Supporting screening for fentanyl in routine clinical toxicology testing.
PART THREE: OTHER STRATEGIES
I.FIRST RESPONDERS
In addition to items in section C, D and H relating to first responders, support the
following:
1.Education of law enforcement or other first responders regarding appropriate
practices and precautions when dealing with fentanyl or other drugs.
2.Provision of wellness and support services for first responders and others who
experience secondary trauma associated with opioid-related emergency events.
J.LEADERSHIP, PLANNING AND COORDINATION
Support efforts to provide leadership, planning, coordination, facilitations, training and
technical assistance to abate the opioid epidemic through activities, programs, or
strategies that may include, but are not limited to, the following:
1.Statewide, regional, local or community regional planning to identify root causes
of addiction and overdose, goals for reducing harms related to the opioid
epidemic, and areas and populations with the greatest needs for treatment
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intervention services, and to support training and technical assistance and other
strategies to abate the opioid epidemic described in this opioid abatement strategy
list.
2.A dashboard to (a) share reports, recommendations, or plans to spend opioid
settlement funds; (b) to show how opioid settlement funds have been spent; (c) to
report program or strategy outcomes; or (d) to track, share or visualize key opioid-
or health-related indicators and supports as identified through collaborative
statewide, regional, local or community processes.
3.Invest in infrastructure or staffing at government or not-for-profit agencies to
support collaborative, cross-system coordination with the purpose of preventing
overprescribing, opioid misuse, or opioid overdoses, treating those with OUD and
any co-occurring SUD/MH conditions, supporting them in treatment or recovery,
connecting them to care, or implementing other strategies to abate the opioid
epidemic described in this opioid abatement strategy list.
4.Provide resources to staff government oversight and management of opioid
abatement programs.
K.TRAINING
In addition to the training referred to throughout this document, support training to abate
the opioid epidemic through activities, programs, or strategies that may include, but are
not limited to, those that:
1.Provide funding for staff training or networking programs and services to improve
the capability of government, community, and not-for-profit entities to abate the
opioid crisis.
2.Support infrastructure and staffing for collaborative cross-system coordination to
prevent opioid misuse, prevent overdoses, and treat those with OUD and any co-
occurring SUD/MH conditions, or implement other strategies to abate the opioid
epidemic described in this opioid abatement strategy list (e.g., health care,
primary care, pharmacies, PDMPs, etc.).
L.RESEARCH
Support opioid abatement research that may include, but is not limited to, the following:
1.Monitoring, surveillance, data collection and evaluation of programs and
strategies described in this opioid abatement strategy list.
2.Research non-opioid treatment of chronic pain.
3.Research on improved service delivery for modalities such as SBIRT that
demonstrate promising but mixed results in populations vulnerable to
opioid use disorders.
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4.Research on novel harm reduction and prevention efforts such as the
provision of fentanyl test strips.
5.Research on innovative supply-side enforcement efforts such as improved
detection of mail-based delivery of synthetic opioids.
6.Expanded research on swift/certain/fair models to reduce and deter opioid
misuse within criminal justice populations that build upon promising
approaches used to address other substances (e.g., Hawaii HOPE and
Dakota 24/7).
7.Epidemiological surveillance of OUD-related behaviors in critical
populations, including individuals entering the criminal justice system,
including, but not limited to approaches modeled on the Arrestee Drug
Abuse Monitoring (“ADAM”) system.
8.Qualitative and quantitative research regarding public health risks and
harm reduction opportunities within illicit drug markets, including surveys
of market participants who sell or distribute illicit opioids.
9.Geospatial analysis of access barriers to MAT and their association with
treatment engagement and treatment outcomes.
EXHIBIT K
Subdivision Settlement Participation Form
Governmental Entity: State: Authorized Official:
Address 1:
Address 2:
City, State, Zip: Phone:
Email:
The governmental entity identified above (“Governmental Entity”), in order to obtain and
in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated July 21, 2021 (“Distributor Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Distributor Settlement, release all Released Claims against all Released Entities, and agrees as follows.
1.The Governmental Entity is aware of and has reviewed the Distributor Settlement,understands that all terms in this Participation Form have the meanings defined therein,and agrees that by signing this Participation Form, the Governmental Entity elects toparticipate in the Distributor Settlement and become a Participating Subdivision asprovided therein.
2. The Governmental Entity shall, within 14 days of the Reference Date and prior to thefiling of the Consent Judgment, secure the dismissal with prejudice of any ReleasedClaims that it has filed.
3.The Governmental Entity agrees to the terms of the Distributor Settlement pertaining to
Subdivisions as defined therein.
4. By agreeing to the terms of the Distributor Settlement and becoming a Releasor, theGovernmental Entity is entitled to the benefits provided therein, including, if applicable,
monetary payments beginning after the Effective Date.
5. The Governmental Entity agrees to use any monies it receives through the DistributorSettlement solely for the purposes provided therein.
6. The Governmental Entity submits to the jurisdiction of the court in the Governmental
Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role
as provided in, and for resolving disputes to the extent provided in, the DistributorSettlement. The Governmental Entity likewise agrees to arbitrate before the NationalArbitration Panel as provided in, and for resolving disputes to the extent otherwiseprovided in, the Distributor Settlement.
K-2
7. The Governmental Entity has the right to enforce the Distributor Settlement as providedtherein.
8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor forall purposes in the Distributor Settlement, including, but not limited to, all provisions ofPart XI, and along with all departments, agencies, divisions, boards, commissions,districts, instrumentalities of any kind and attorneys, and any person in their official
capacity elected or appointed to serve any of the foregoing and any agency, person, or
other entity claiming by or through any of the foregoing, and any other entity identified inthe definition of Releasor, provides for a release to the fullest extent of its authority. As aReleasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocablycovenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or
claimed, or to otherwise seek to establish liability for any Released Claims against any
Released Entity in any forum whatsoever. The releases provided for in the DistributorSettlement are intended by the Parties to be broad and shall be interpreted so as to givethe Released Entities the broadest possible bar against any liability relating in any way toReleased Claims and extend to the full extent of the power of the Governmental Entity to
release claims. The Distributor Settlement shall be a complete bar to any Released
Claim.
9.The Governmental Entity hereby takes on all rights and obligations of a ParticipatingSubdivision as set forth in the Distributor Settlement.
10. In connection with the releases provided for in the Distributor Settlement, eachGovernmental Entity expressly waives, releases, and forever discharges any and allprovisions, rights, and benefits conferred by any law of any state or territory of theUnited States or other jurisdiction, or principle of common law, which is similar,comparable, or equivalent to § 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release, and that if known by him or her would have materially affected his or her settlement with the debtor or
released party.
A Releasor may hereafter discover facts other than or different from those which it
knows, believes, or assumes to be true with respect to the Released Claims, but each
Governmental Entity hereby expressly waives and fully, finally, and forever settles,
releases and discharges, upon the Effective Date, any and all Released Claims that may
exist as of such date but which Releasors do not know or suspect to exist, whether
through ignorance, oversight, error, negligence or through no fault whatsoever, and
which, if known, would materially affect the Governmental Entities’ decision to
participate in the Distributor Settlement.
K-3
11. Nothing herein is intended to modify in any way the terms of the Distributor Settlement,to which Governmental Entity hereby agrees. To the extent this Participation Form is
interpreted differently from the Distributor Settlement in any respect, the DistributorSettlement controls.
I have all necessary power and authorization to execute this Participation Form on behalf of the Governmental Entity.
Signature:
Name:
Title:
Date:
L
180 Market Street, South Burlington, Vermont 05403 | 802-846-4107 | www.southburlingtonvt.gov
To: South Burlington City Council
From: Jessie Baker, City Manager
Date: September 17, 2021
Re: Committee on Common Areas for Dogs Appointments
On July 6, 2021 the Council approved a “Resolution to Establish a Committee on Common Areas for
Dogs.” That Resolution states,
NOW, THEREFORE, BE IT RESOLVED that the South Burlington City Council does hereby rename
the Dog Park Committee the Committee on Common Areas for Dogs.
Members will...
•Include one member, but not more than two members to act as liaisons from both
Recreation & Parks and Natural Resources Committees
•Initial appointments shall be comprised of 2 individuals serving 1-year terms, 2 individuals
serving 2-year terms, 3 individuals serving 3-year terms. Upon completion of their initial
term, Committee members may apply for appointment to another term.
On August 13, 2021, the Council appointed the members of the previous Dog Park Committee to this new
Committee as well as Lisa Yankowski from the Natural Resources & Conservation Committee. Tonight we
recommend you appoint Mike Simoneau from the Recreation and Parks Committee and approve the
following recommended terms established by the sitting Committee:
•Betty Milizia 3 years
•Justin Palmer 3 years
•Molly Bezio 3 years
•Muriel Moore 2 years
•Linda Chiasson 2 years
•Lisa Yankowski (NRCC) – 1 year
•Mike Simoneau (Recreation & Parks) – 1 year
180 Market Street, South Burlington, Vermont 05403 | 802-846-4107 | www.southburlingtonvt.gov
To: South Burlington City Council
From: Jessie Baker, City Manager
Paul Connor, Planning and Zoning Director
Date: September 16, 2021
Re: Climate Action Plan Appointments
On August 17, 2021 the Council approved the Climate Action Plan Task Force Charter.
This charter outlined that:
Membership shall be comprised of seven voting members appointed by the City Council. The
Committees shall recommend members and the Council shall appoint members according to this
formula:
•1 current member of the Affordable Housing Committee
•1 current member of the Bicycle and Pedestrian Committee
•1 current member of the Economic Development Committee
•2 current members of the Energy Committee
•1 current member of the Natural Resources and Conservation Committee
•1 current member of the Planning Commission
Members shall serve for a two-year term or until the Council adopts a Climate Action Plan, whichever
comes first.
This Task Force will be co-supported by a Council Liaison, appointed on an annual basis from the City
Council, and a Staff Liaison appointed on an annual basis by the City Manager. These individuals are
non-voting members of the Commission.
Committees have recommended the following appointments:
•Affordable Housing Committee – Darrilyn Peters
•Bicycle and Pedestrian Committee - Mattie Larkspur
•Economic Development Committee – to be discussed again at their 9/27 meeting
•Energy Committee – Andrew Chalnick and Ethan Goldman
•Natural Resources and Conservation Committee - Bill Wargo
•Planning Commission - Michael Mittag
Proposed Motion: Appoint these six members to the Climate Action Plan Task Force as recommended
and select a City Councilor to serve in the non-voting Council Liaison position.
180 Market Street, South Burlington, Vermont 05403 | 802-846-4107 | www.southburlingtonvt.gov
September XX, 2021
[Property Owner]
[Address]
[Address]
Dear [Property Owner],
Your property, located at [insert address], was identified as a high priority parcel for
conservation by the City of South Burlington’s Open Space Interim Zoning Committee. Details
on this Committee and their final report can be found here:
https://www.southburlingtonvt.gov/government/city_committees_boards/open_space_interim_zo
ning_committee.php.
The City Council has asked that I reach out to you today to explore your interest in future
conservation of land. Specifically, are you interested in meeting with the City to explore the
possibility of working with us, or a partner entity, toward the goal of permanent conservation
through acquisition and/or easements. If you are open to these conversations, we’d also be
interested in talking about the following:
•Are you interested in considering selling your property for conservation in the short-term,
medium-term or long-term?
•Are you interested in selling your whole parcel indicated above or a portion of your
parcel?
•Are you willing to consider conservation that includes future active or passive
recreational use?
•Are you willing to consider selling your property to the City for another City priority?
•Are you considering another development potential that meets a goal of the City’s?
These can be found in the City’s Comprehensive Plan available here:
https://cms6.revize.com/revize/southburlington/document_center/planning/SB_Comprehe
nsive_Plan_Complete_Adopted_2-1-2016.pdf
As funding allows and priorities remain, these future conversations and correspondence are
intended to take place as part of confidential formation of policy and real estate negotiations
under 1 V.S.A. §§317(c)(12) and (13); 1 V.S.A. 313(a)(2).
Please send your thoughts on this request to:
Jessie Baker
City Manager
180 Market Street
South Burlington, VT 05403
Or via email to jbaker@southburlintonvt.gov
180 Market Street, South Burlington, Vermont 05403 | 802-846-4107 | www.southburlingtonvt.gov
You can also call me at (802) 846-4100 if you prefer.
Thank you for your consideration. I look forward to hearing from you.
Sincerely,
Jessie Baker
City Manager
MEMORANDUM
TO: South Burlington City Council
Jessie Baker, City Manager FROM: Andrew Bolduc, Deputy City Manager Martha Machar, City Finance Officer DATE: September 20, 2021 City Council Meeting
RE: End of Year Financials - FY 2021 City Budget
______________________________________________________________________________
Background
The attached end of year financials for Fiscal Year 2021 (Attachment A) reflect a year
unlike any in recent memory. The uncertainty and realities caused by the COVID-19 pandemic had dramatic impacts on forecasted and actual City revenues which required creative fiscal problem solving and making hard decisions in the way the City provided its ongoing essential government services in our community. These big decisions included a multi-month budget freeze, refinancing
the City’s pension loan, and deferring some CIP projects to future years. As you will see, while the
impacts to revenues were indeed significant, they ended up in much better position by the close of the fiscal year than originally projected. This, along with the creative problem solving and hard decisions made during the year, has positioned the City extremely well to be able to continue the high levels of community and government services the members of our community enjoy.
Analysis
FY 21 Revenue
Highlighted Critical Deficits
Local Option Tax – Room & Meals: ($384,101.59) Ambulance billing: ($65,054.95)
Electrical Inspections: ($17,444.50)
Special Events/Recreation: ($153,510.75) Investment Interest: ($171,511.24)
Highlighted Critical Surpluses
Local Option Tax – Sales & Use: $22,930.28 Fire Inspections: $40,816.79 Recording Fees: $112,294.25 FEMA Relief: $164,350.88
WC Ins. Reimbursement: $107,000.00
By the end of the fiscal year, a good share of the City’s deficits was offset by unprecedented increases in recording fees, the receipt of FEMA relief funds, and last quarter fire inspection fees that brought the fire inspection total from a projected deficit as late as mid-June, to a modest
surplus.
Total FY 21 Revenue Deficit**: $647,541.05
FY 21 Expenditures & Cost Savings
Budget Freeze – Unspent $
Salaries (PD, P&Z, Rec, Admin, Library): $300,852.73
Training & Professional Development: $91,452.96 PD Vehicle Replacements: $49,981.50 DPW CIP Project (Adaptive Signal): $516,827.32 DPW Garage Expansion: $135,000.00
Rec CIP Projects: $115,858.69
Tree Care: $82,394.32
Other miscellaneous unspent budgeted items include, consultants, office equipment and supplies, park maintenance, and recreation events.
Key Cost Savings
Move to Captive Health Insurance: $312,839.18 Pension Note Refinancing: $660,948.00
Winter Salt: $57,408.01
Total FY 21 Unspent Balance**: $2,115,889.24
Summary
FY 21 Surplus** $1,464,348.20
**Final values subject to change through city audit
Recommendations & Possible Actions
Recommendation #1 – Establish a Health Insurance Reserve Special Fund (Attachment B)
At a regular City Council meeting in June, former City Treasurer Tom Hubbard relayed
guidance from our health care consultant that if the City ended the fiscal year with savings in health
care, that those savings be transferred into a special reserve fund. The reserve fund would serve two distinct purposes:
The first, with the move to a captive insurance model, it is recommended that the City
maintain Incurred But Not Reported (IBNR) or “tail” coverage to ensure sufficient reserve
were the City to ever leave the captive model. This IBNR reserve will cover liability that is incurred during the coverage period but not reported prior to the expiration of coverage. This amount is based on the lag of possible claims coming in following expiration of coverage. The value recommended by our consultant for this purpose is $148,000.
The second recommendation from the City’s health care consultant is to utilize surplus in years when claims are low in order for the City to self-insure against future health insurance increases or years with a higher number of claims. The total value recommended for this
purpose is $180,000. This is a one-time allocation to establish the balance without the need
for allocations in future years unless the balance is to be replenished.
As the City saved around $312,000 in health insurance in FY 21, it is the management recommendation that the Council establish the Health Insurance Reserve Special Fund and use the
full amount of savings and a portion of the FY 21 surplus to allocate the full recommended
$328,000 to fund this account. Please find attached in your packets the necessary resolution for your consideration.
Motion 1: To approve the Health Insurance Reserve Special Fund Resolution and allocate
$328,000 of FY 21 surplus to fully fund this reserve account.
Recommendation #2 – Allocate Surplus for Garage Bay Expansion Capital Project (Attachment C)
Please see attached memo regarding the Public Works Garage Bay Capital Project. The
management recommendation is to allocate $200,000 of the FY 21 surplus in order to commence
this project in FY 22.
Motion 2: To assign $200,000 of FY 21 surplus for the previously approved Public Works Garage Bay Capital Project.
Fund Balance
Through many years of careful planning, the City has grown its fund balance from under $100,000 in 2011 to where it sits now at approximately $1,577,441.1 This represents 6 percent of
the FY 21 budget. For your reference, the City’s General Fund Balance Policy adopted pursuant to
City auditor recommendations, states as follows:
“It is the intent of the City to maintain a minimum balance of one month, 8.33%, of operating expenditures. The targeted balance is 2 months or 16.66%, and the
maximum balance is not to exceed 25% of the operating expenditures, so long as cash
flow needs are met and lowest point cash flow is not less than one payroll and one
warrant, combined. Any amount in excess of 25% is to be appropriated as assigned fund balance or other fund balance categories as outlined below. The City Council may recommend transfers to the City that would reduce the balance below 25%, but
no transfers shall be made that would reduce the balance to less than 8.33%. In the
event that the unassigned fund balance drops below the minimum level, the City will
develop a plan, implemented through the annual budgetary process, to bring the balance to the targeted level over a period of no more than three (3) years."
Fund balance target levels based on the FY 21 budget are:2
1 Based on general city cashflow, the present spendable value of this fund often sits below the total balance. 2 While the policy speaks to operating expenses, for illustrative simplicity, annual general fund expenditures are used here.
With the remainder of the FY 21 estimated surplus going into the fund balance, for the first time in
at least a decade, the City will be just above the recommended minimum balance at 9.57% of the FY 21 General Fund Budget.
FY21 Budget 26,293,220.88$
8.33% Minimum Balance 2,190,225.30$
16.66% Target Balance 4,380,450.60$
25% cap for Fund balance 6,573,305.22$
FY21 Estimated Surplus 1,468,348.20$
Requested to be assigned-DPW garage bay expansion 200,000.00$
Health Insurance Reserve Fund 328,000.00$
Net to be added to general fund balance 940,348.20$
Fund Balance FY 22 2,517,789.20$
Fund Balance as a Percent of General Fund 9.57%
City of South Burlington General Ledger Revenue Report - GENERAL FUND Previous Year Period 12 JunEstimated Received % Budget UncollectedAccount Revenue To Date Received BalanceTAX REVENUETAX REVENUE $16,941,889.09 -$16,960,499.80 100.11% -$18,610.71LOCAL OPTION TAXES $4,050,000.00 -$3,688,828.70 91.08% $361,171.30Total TAX REVENUE $20,991,889.09 -$20,649,328.50 98.37% $342,560.59INTEREST/PENALTY ON TAX $337,800.00 -$310,184.12 91.82% $27,615.88Other Health Services $0.00 -$252,715.28 100.00% -$252,715.28CITY MANAGER $662,462.00 -$741,905.11 111.99% -$79,443.11CITY CLERK $269,300.00 -$452,090.22 167.88% -$182,790.22PLANNING $389,700.00 -$381,987.78 98.02% $7,712.22FIRE DEPARTMENT $440,700.00 -$574,729.03 130.41% -$134,029.03ELECTRICAL INSPECTION $70,000.00 -$52,555.50 75.08% $17,444.50AMBULANCE $875,800.00 -$801,568.96 91.52% $74,231.04POLICE DEPARTMENT $437,364.80 -$470,538.21 107.58% -$33,173.41HIGHWAY DEPARTMENT $1,606,815.00 -$902,745.97 56.18% $704,069.03Total RECREATION $205,600.00 -$52,089.25 25.34% $153,510.75COMMUNITY LIBRARY $5,790.00 -$3,241.91 55.99% $2,548.09Total GENERAL FUND $26,293,220.89 -$25,645,679.84 97.54% $647,541.05
City of South Burlington General Ledger Expenditure Report - GENERAL FUND Previous Year Period 12 Jun% Budget UnencumberedAccount Budget Expenditures Expended BalanceGENERAL GOVERNMENT EXP.CITY COUNCIL $147,250.00 $131,197.75 89.10% $16,052.25ADMINISTRATIVE INSURANCE $5,285,740.81 $5,231,434.36 98.97% $54,306.45CITY MANAGER $525,455.17 $494,707.64 94.15% $30,747.53LEGAL/ACCOUNTING ACTUARY $332,001.08 $334,045.64 100.62% -$2,044.56ADMINISTRATIVE SERVICES $1,130,583.90 $1,090,554.03 96.46% $40,029.87INFORMATION TECHNOLOGY $273,762.52 $285,156.40 104.16% -$11,393.88CITY CLERK $262,806.95 $325,731.96 123.94% -$62,925.01ASSESSING/TAX/FINANCE $368,688.73 $393,832.63 106.82% -$25,143.90PLANNING/DESIGN REVIEW $467,083.17 $381,787.30 81.74% $85,295.87OPERATING TRANSFERS OUT $469,733.00 $469,733.00 100.00% $0.00Total GENERAL GOVERNMENT EXP.$9,263,105.33 $9,138,180.71 98.65% $124,924.62PUBLIC SAFETYFIRE DEPARTMENT $3,311,856.41 $3,600,576.04 108.72% -$288,719.63ELECTRICAL INSPECTIONS $1,625.00 $264.50 16.28% $1,360.50AMBULANCE $158,400.00 $82,998.67 52.40% $75,401.33POLICE DEPARTMENT $5,234,415.90 $5,064,467.13 96.75% $169,948.77OPERATING TRANSFERS OUT $771,000.00 $776,459.21 100.71% -$5,459.21Total PUBLIC SAFETY$9,477,297.31 $9,524,765.55 100.50% -$47,468.24HIGHWAY DEPARTMENT$3,391,697.77 $2,555,493.71 75.35% $836,204.06CULTURE AND RECREATION
RECREATION ADMINISTRATION $361,900.39 $285,909.82 79.00% $75,990.57PROGRAMS $21,000.00 $5,137.85 24.47% $15,862.15RED ROCKS PARK $8,850.00 $820.72 9.27% $8,029.28FACILITIES $243,700.00 $112,639.66 46.22% $131,060.34SPECIAL ACTIVITIES $129,600.00 $43,738.40 33.75% $85,861.60PUBLIC LIBRARY $617,899.04 $477,625.87 77.30% $140,273.17CAPITAL/PARK MAINTENANCE $383,365.74 $344,580.57 89.88% $38,785.17Total CULTURE AND RECREATION$1,793,815.17 $1,276,298.45 71.15% $517,516.72OTHER OPERATING ENTITIES $749,987.00 $737,879.50 98.39% $12,107.50CURRENT PRINCIPAL BONDS $1,104,983.30 $723,589.00 65.48% $381,394.30CURRENT INTEREST BONDS $512,335.00 $221,124.72 43.16% $291,210.28Total GENERAL FUND $26,293,220.88 $24,177,331.64 91.95% $2,115,889.24
RESOLUTION ESTABLISHING A HEALTH INSURANCE RESERVE SPECIAL FUND
WHEREAS, the City Charter, section 13-310 (7) states, “The City Council, by their own actions, may establish reserve
funds to pay for public improvements, replacement of equipment, and planned or unplanned operating expenditures.
Monies to be deposited in any fund shall be included in the City budget and shall not be excluded in calculating the net
cost of operation pursuant to subsection 1309(a) of this chapter. Reserve funds shall be kept in separate accounts and
invested in the same manner as other public funds. The City Council may, from time to time, expend monies in those
funds for purposes for which they were established without voter approval.” and,
WHEREAS, it is the desire of the City to seek efficiencies and cost savings in its provision of Health Care Insurance to its
employees; and,
WHEREAS, in 2020, the City transitioned from a traditional to “captive” model of Health Insurance, immediately
realizing over $300,000 in year-one savings; and,
WHEREAS, with a captive insurance model, it is the industry standard and strongly recommended that the City maintain
an Incurred But Not Reported reserve to cover liability that is incurred during the coverage period but not reported prior to
expiration of coverage; and,
WHEREAS, with captive insurance, it is additionally recommended to use surplus funds from savings to maintain a
proportional reserve balance to self-insure against future health insurance increases and years with a higher number of
claims; and,
NOW THEREFORE, BE IT RESOLVED, that the City Council hereby creates a Reserve Fund with an allocation of $328,000 of which $148,000 shall remain in reserve and only expended for the purpose of covering Incurred But Not Reported liabilities following the expiration of coverage.
BE IT FURTHER RESOLVED, that the remaining $180,000 be held in reserve and only expended to cover outlier years when costs exceed the amount budgeted. Any funds expended to manage costs during a high claim year, may be replenished in future years through surplus funds.
Dated this 20th day of September, 2021.
SOUTH BURLINGTON CITY COUNCIL
________________________ ________________________
Helen Riehle, Chair Tim Barritt, Clerk
________________________ ________________________
Meaghan Emery, Vice Chair Tom Chittenden
________________________
Matt Cota
180 Market Street, South Burlington, Vermont 05403 | 802-846-4107 | www.southburlingtonvt.gov
To: South Burlington City Council From: Justin Rabidoux, Director of Public Works
Andrew Bolduc, Deputy City Manager
Martha Machar, Finance Officer Date: September 15, 2021 Re: FY21 CIP Project
In the FY’21 budget Public Works intended to expend $135,000 on a CIP project to expand our
vehicle/fleet garage by one or two bays to meet the storage needs of our growing fleet.
Unfortunately, we were unable to complete that project by June 30, 2021, for two main reasons
outlined below.
Reason 1: Early in FY’21 and in response to the pandemic the vast majority of capital
projects funded solely by the general fund were paused out of revenue concerns.
Our bay expansion project was one such project.
Reason 2: In the spring (don’t recall the exact time frame) of 2021 the City’s financial
position was such that previously paused capital projects were allowed to resume.
Staff met with numerous contractors in an attempt to get the bay expansion
completed by June 30, 2021, but we were unable to line someone up due to both
the drastic increase in construction materials nationwide as well as the scarcity of
contractor availability. When the national/regional economies opened back up this
spring, available contractor resources were quickly gobbled up by both the private
and public sectors. So in conclusion, due to the realities of the pandemic we simply
did not have enough time (nor, as we found out, money) to get this project
finished.
We are hopeful that based on the above the City Council will consider assigning money from the
balance sheet in an amount equal to $200,000 to Public Works so we can get this important
project completed. We are asking for a higher amount to account for increase in price of steel.
TO: Jessie Baker, City Manager
FROM: Ilona Blanchard, Community Development Director
SUBJECT: City Center Update
DATE: September 17, 2021
BACKGROUND: 180 Market Street
On July 23, the new South Burlington Public Library and City
Hall opened to the public. The project is substantially complete,
with little remaining scope/punch list items left to complete. As
the project wraps up, most costs are now known and revenues
secured.
The project is expected to be completed with costs coming in
under available revenues.
When the construction contract was approved, the City Center
Background, Continued, Page 2
CIP Reserve Fund was authorized to be used to fund
unanticipated costs (Owner’s contingency). Unused portions of
this authorization will remain in the Fund.
TIF District
The City Center TIF District will have been active (since the
first debt was incurred) for five years next year.
Administratively, this will trigger the state audit of the District.
The TIF District Financing Plan will also be seven-years-old. In
order to facilitate a smoother audit, the City will be rebuilding
the financial models, and updating planned projects, timelines
and expenditures in the TIF District Financing Plan.
Many things have changed since then – one of the largest
properties in the district has a clear developer, projects are
complete, permitted or underway, South Burlington has built
public infrastructure projects, and land values have been
reassessed.
To update the Financing Plan, the City will need to submit a
substantial change request to VEPC this fall/winter. The City
received a substantial change previously to confirm the inclusion
of the Senior Center (but not the Recreation Center) in the South
Burlington Public Library and City Hall project.
As the first step of developing the Substantial Change Request
(and a new Financing Plan) a preliminary financing model will
be presented at the Council Meeting.
ATTACHMENTS: Pie Charts illustrating the South Burlington Public Library and
City Hall Costs & Expenditures.
RECOMMENDATION: Listen to the briefing, ask questions
South Burlington Public Library and City Hall Project Funds
9/17/2021 – Status: Substantially Complete
PROJECT REVENUES BY SOURCE Reserve Fund Bond & Int.
Tax Increment Financing
Bond
Blanchette Fund &
Foundation
Impact Fees
Electric Vehicle Grant
City Center Reserve Fund
Other
Energy Reserve Fund
EXPENDITURES BY COST AREA
Land Acquisition
Design, Admin &
Commissioning
Construction
Permits & Fees/Misc
Furniture, Fixtures &
Equiptment
MEMORANDUM
TO: South Burlington City Council
FROM: Jessie Baker, City Manager
Andrew Bolduc, Deputy City Manager
Martha Machar, City Finance Officer
DATE: September 20, 2021 City Council Meeting
RE: FY 2023 Pre-Budget Revenue/Expenditure Forecasting
______________________________________________________________________________
Background
At the prior City Council meeting, the Council approved the FY 23 budget schedule. As the
City Leadership Team begins to put together a draft budget over the next few months, there are a
few key questions we would like you to consider:
•What are your priority government service areas to fund?
•Are there new initiatives or programs you would like us to consider as we build the budget?
•As our community continues to face new realities and uncertainties, are there any priority
cuts or service reductions?
•What is the Council’s tax rate goal for FY23?
In order to assist in answering these questions, please find in this memorandum background
information and initial projections where the City to maintain its current level of government
services into FY 23. These projections are reached through forecasting expenditure increases from
contractual mandates and other major sources as well as using historic data available to offset these
expenditures with grand list and local option tax revenues. While all three of the city’s collective
bargaining agreements are expiring at the end of FY 22, projections are made based on current CPI
data and historic step increases. Please be aware, many of these forecasted numbers are very
preliminary, and with this uncertainty, projections skew conservative.
Data
Municipal Tax Rate History
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Tax Rate ($) 0.4214 0.4278 0.4560 0.4731 0.4923 0.5084 0.5427 0.5542 0.4350
Increase (%) 4.28 1.52 6.59 3.75 4.06 3.27 6.75 2.12 -21.511
Municipal Budget History (amount to be raised through taxation)
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Budget ($) $11,846,660 $12,211,444 $13,272,284 $13,995,642 $14,740,400 $16,003,934 $16,431,849 $16,988,422 $17,398,405
Increase (%) 5.78% 3.08% 8.69% 5.45% 5.32% 8.57% 2.67% 3.39% 2.41%
1 Prior to the city-wide re-appraisal, the projected property tax rate was 0.5597, a 0.98% increase.
Grand List Values
FY16 FY17 FY18 FY19 FY20 FY21 FY22
Value ($) 29,108,972 29,200,991 29,685,373 30,079,129 30,349,818 30,779,277 40,231,289
Increase
(%)
2.02 0.31 1.66 1.33 0.8 1.42 N/a
One Cent on the Tax Rate
Based on an average 1.1% annual Grand List growth, for FY23, is it estimated $0.01 on the tax rate
will raise approximately: $406,828.
A 1% tax rate increase will raise approximately $176,970, 3% approximately $530,911, 5%
approximately $884,851.
How are tax dollars currently spent?
Manager/Finance/Legal,
$697,895
Admin/IT/Insurance,
$1,115,650
Social Services and other
Entities, $544,143
City Council, $41,470
HR & Benefits
Administration,
$3,478,608
Planning/Energy,
$262,127
Clerk, $169,938
Recreation, $437,224
Library, $529,683
Fire & Amublance,
$2,338,034
Police, $3,430,324
Highway, $2,095,508
Parks , $203,287 Debt Service,
$976,653
Capital/Reserves,
$1,077,861
FY 22 Property Tax Allocation by Departments
Fixed Liabilities & Projected Revenue Offsets
Fixed Liabilities – Increase ($)
Employee Salaries (COLA 4.4%2+Step) $630,110
FICA $48,012
VMERS/Pension $105,475
ICMA $13,139
Group Health (11.33%) $286,815
Other Contractual Benefits (6%) $18,927
Workers’ Comp Insurance (10%) $38,100
Property & Liability Insurance (10%) $29,700
Total $1,170,279
Projected Grand List Growth & Local Option Tax Offsets
Grand List (1.1%): $196,530.59
Local Option Tax (2%): $81,000.00
Total $277,530.59
Summary
Based on these initial projections, in order to maintain current levels of government service,
the added amount to be raised by taxation is $892,749. In order to meet these liabilities alone, the
tax rate would need to increase by 5.04% to 0.4568 which is a little over $0.02 cents on the tax rate.
As we are in a contract year with all three of our collective bargaining agreements, for further
reference, if the employee COLA went from 4.4% to 3.0%, this would reduce total costs by
$146,006, which brings the total amount to be raised to $749,743. In order to meet those costs, the
tax rate would need to increase by 4.23% to 0.4534 which is a little under $0.02 cents on the tax
rate.
2 This is based on the recent release of the Aug-Aug CPI-U value.