2023-11-07-AC -STM1-rpt - Laserfiche WebLink

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STM 2023-1 APPROPRIATION CONMTTEE 31 OCTOBER 2023 The second proposed adjustment updates the debt service appropriations made for the water and wastewater funds. The appropriations at the 2023 ATM were based on estimates of the debt service to be incurred in FY2024. The revised appropriations reflect the actual amounts finalized subsequent to the ATM. Line From To Change 3600 Water Fund Debt Service $ 2,393,902 $ 2,375,660 $ (18,242) 3700 Wastewater Fund Debt Service $ 1,492,248 $ 1,406,381 $ (85,867) Article 5 Appropriate for Authorized Capital Improvements Funds Requested Funding Source Committee Recommendation None N/A IP (8-0) As of publication, there are no requests for supplemental appropriations for previously approved capital projects. No action is required under this article. Article 6 Appropriate Opioid Settlement Funds Requested Funding Source Committee Recommendation $187,927 Statewide Opioid Settlement Approve (8-0) This article seeks to appropriate $187,927 recently received from the State into the Opioid Settlement Account, an account created last year and maintained in the General Fund. The funds represent Lexington's share of this year's installment of settlement payments made to the Commonwealth of Massachusetts under the Statewide Opioid Settlements entered into between the Massachusetts Attorney General and certain non-bankrupt opioid industry participants in 2021 (the "2021 Settlements"). The 2021 Settlements provided approximately $500 million to the Commonwealth, and the funds began flowing in June of 2022.1 Under the 2021 Settlements, Lexington and certain other Massachusetts communities which elected to participate are entitled to receive annual payments over eighteen years (2021-2038) from two sources: opioid manufacturer Johnson & Johnson, and several settling distributors. The total amount that Lexington will receive over the life of the 2021 Settlements is approximately $1,000,000 (not discounted to present value). The settling defendants have received, in exchange, a general release of all further claims. The 2021 Settlements contain strict requirements for the Town's handling and use of settlement funds. The payments must be appropriated into the General Fund and may only be used to fund opioid prevention, harm reduction, treatment and recovery programs. Once appropriated, the funds will be available for spending for the stated purposes at the discretion of Lexington's Director of Public Health. It should be noted that three additional nationwide opioid settlements were entered into between the states and other members of the industry in 2022 (the "2022 Settlements"). Under the 2022 Settlements: (1) distributor Walmart will provide $61 million to the Commonwealth; (2) manufacturers Teva and Allergan will provide $130 million to the Commonwealth; and(3) distributors CVS and Walgreen's will provide $230 million to the Commonwealth. The State will then, once again, share the settlement amounts with participating municipalities. Lexington has yet to receive funds under the 2022 Settlements. 1 For further details, see the Attorney General's statement online: https://www.mass.gov/info-details/learn-about-the-ags-statewide-opioid-settlements-with-opioid- industry-defendants 5