Sherwood council discusses how to spend $144,000 in opioid settlement proceeds

Sherwood City Council met in a June 17 work session to discuss how to use $144,000 the city has received from national opioid‑manufacturer settlement funds and to consider future receipts from the multi‑year settlement program. City staff and councilors outlined eligible uses under the settlements, reviewed local spending to date, and directed staff to research program, reporting and partnership options.

Council staff member David provided the overview, saying, "We're expected to receive these settlement funds for roughly about 18 years," and reported that Sherwood has received about $144,000 so far and spent roughly $110,000, partly on grant‑supported activities and the city's Mental Health Response Team (MHRT). He told council the settlement permits a broad range of prevention, treatment and recovery uses, and that the city must report annually on expenditures.

The meeting focused on several possible approaches: keep the funds in a city account and spend them locally on prevention and treatment programs such as Narcan distribution, first‑responder training and school‑based education; transfer the money to Washington County for a countywide program; or bank the funds for a larger multi‑year initiative. David noted the payments vary year to year and that a recent additional national settlement involving Purdue could increase future receipts. Staff said some local jurisdictions have not yet decided on long‑term uses.

Councilor Dan said the money should be used for non‑operational, prevention and treatment activities rather than supplanting the city's general operating budget: "I would be more in favor of using this money for nonoperational, for, like, in house personnel for the city..." He and other councilors expressed a preference for prevention and public education rather than equipment or enforcement‑only spending.

The police chief (unnamed in the transcript) urged sustained support for the MHRT, describing it as the team that both responds to crisis calls and provides follow‑up: "If there's anybody that can give resources... it's a team like that." The chief and other speakers also recommended using some funds for public service announcements targeted at youth and social media, with creative content made in partnership with neighboring agencies and school officials.

Councilors discussed partnering with nonprofits that already serve Sherwood residents, including the Family Justice Center, and asked staff to verify whether such agencies and programs qualify under the settlement rules. David reminded council the city has up to five years from receipt to earmark or spend individual payments.

Council consensus was to collect additional information before committing funds. Staff were directed to: check Family Justice Center eligibility under settlement rules; compile cost estimates for a marketing/PSA campaign (including the cost to hire a contractor to produce content and a range of annual ad‑spend options); identify evidence‑based school education programs and their costs; and return to council with polling/option estimates for larger proposals. No motion or formal vote was taken at the session.

Sherwood councilors stressed caution about creating ongoing staff positions paid from the settlement proceeds because the payments fluctuate and are not guaranteed at a fixed annual level, and several members urged using the funds to seed or supplement programs run by county agencies or nonprofits rather than fully funding long‑term operations.