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CITY OF CEDAR HOLLOW
Office of the City Manager · Finance Department
STAFF REPORT
TO:Honorable Mayor and Members of the City CouncilFROM:Dana Morales, Budget Analyst — Finance DepartmentDATE:June 27, 2026RE:Approval of the Purdue Pharmaceuticals opioid settlement and establishment of an Opioid Abatement Special FundFILE NO.:SR-2026-118
1.  RECOMMENDATION

That the City Council approve the settlement agreement between the City of Cedar Hollow and Purdue Pharmaceuticals in the amount of $10,000,000, and direct staff — at the direction of the City Manager and the Finance Director — to appropriate the funds into a newly established Opioid Abatement Special Fund.

2.  BACKGROUND
  • The City of Cedar Hollow was a participating litigant in the national prescription-opioid settlement.
  • The negotiated allocation to Cedar Hollow totals $10,000,000.
  • Funds are disbursed over a multi-year settlement schedule.
  • Use of the funds is restricted to approved opioid-abatement purposes.
3.  FISCAL IMPACT

Receipt of the $10,000,000 settlement is non-recurring revenue and will not be deposited into the General Fund. Establishing a dedicated special fund preserves restricted-use compliance and audit traceability. No new General Fund appropriation is required.

4.  SPECIAL FUND & APPROPRIATION

The Opioid Abatement Special Fund shall be established under City Charter § 2.40. Appropriations from the fund shall be made jointly at the direction of the City Manager and the Finance Director, consistent with Council-adopted abatement priorities.

Respectfully submitted,
Dana Morales
Dana Morales, Budget Analyst — Finance Department
City Manager
Finance Director
Page 1 of 1438 wordsEnglish (United States)100%
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