South Burlington council approves joining Vermont greements in national opioid settlements

The South Burlington City Council voted unanimously Aug. 18 to authorize the city manager to sign two national opioid settlement agreements negotiated by the State of Vermont, including settlements with Purdue Pharma, the Sackler family and a group of eight manufacturers.

City Attorney Colin McNeil and a representative from the Vermont Attorney General—s office briefed the council on the settlements before the vote. McNeil said the settlements mirror earlier agreements in structure but are larger in value, and noted Vermont negotiated for a lump-sum payment rather than a multiyear payout. "Vermont's portion will be $22,000,000," McNeil said, adding the state will deposit its share into an opioids abatement fund that distributes money to the state, to local governments and to other designated claimants.

The memo provided to the council explained the larger Purdue/Sackler agreement totals roughly $7.4 billion nationwide, comprised of about $6.5 billion in Sackler family contributions and roughly $900 million through the Purdue bankruptcy estate. McNeil told the council that, unlike many other states, Vermont negotiated to receive its share in a lump sum rather than stretched over 15 years.

McNeil explained how Vermont—s statutory distribution model will allocate settlement funds: 15% to the state general fund, 70% to the state opioids abatement fund (administered by an advisory board with subject-matter experts), and 15% to cities and towns and counties. He said local participation in the settlements requires subdivisions to sign on; the state has set a population threshold for mandatory sign-on in Vermont.

Council discussion focused on how the city has used prior settlement money and on next steps for distributing any new funds. McNeil noted the city already maintains a dedicated local fund for opioid-abatement purposes and has previously allocated amounts from earlier settlements. Councilors asked that future allocations be considered after the new police chief is onboard and can help assess community needs.

The council moved and approved the motion to authorize the city manager to execute any documents necessary for the city to join the settlements. The vote was unanimous.

Why it matters: The settlements provide money intended for treatment, prevention and other opioid-abatement activities. The council's authorization ensures South Burlington can receive and direct its share of any payments into locally administered opioid-abatement programs once the state's distribution and subdivision sign-on process is complete.

Next steps: City staff will monitor the statewide claims-administration process, confirm the city's share once distributions are calculated, and bring proposed allocations back to council for approval. McNeil and staff advised council that timing depends on bankruptcy-court and state-court approvals and the mechanics of the claims administrator.