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Delray Beach to receive first PFAS settlement payments; city officials weigh uses for funds
Summary
Outside counsel told the city commission that national settlements with major chemical manufacturers will send Delray Beach millions for PFAS cleanup; commissioners said the city can decide how to spend the money and asked staff to study options including offsetting water bills.
Mark Derman, outside counsel for the city, told the Delray Beach City Commission on June 17 that national settlements in PFAS litigation will produce multiple payments to the city and that initial funds will arrive this year.
"The 3M settlement will result in approximately $15,000,000 to the city," Derman said, and he said the first 3M payment is due this week with a second in quarter three. He also outlined related settlements at the national level, naming DuPont, BASF and Tyco as defendants with large multi‑hundred‑million‑dollar resolutions whose allocations to Delray remain to be determined.
Commissioners and staff pressed for clarity about how the money may be used. City Attorney Lynn Jelen asked whether PFAS settlement funds carry the kind of restricted uses that some opioid settlements do; Derman said, "That is correct," meaning the PFAS payments do not presently carry specific state or federal restrictions on local spending.
Commissioners reacted to the windfall by asking staff to analyze practical options. Several members said they want the city to consider directing funds to water utility relief or the city’s new water treatment projects. Commissioner (name on transcript) said the city should "have a follow‑up conversation about how we can potentially use some of these funds to offset the water bill hike that's coming." Another commissioner said she would "like to use this money towards our new treatment facility, but specifically to offset some of those bills that may get in residents."
Derman also updated the commission on separate opioid litigation and possible additional allocations to local governments pending allocation decisions at the state level; he said the city expects more information in roughly 60 days about Purdue/Sackler and other manufacturer settlements.
The settlement news follows years of national multidistrict litigation over PFAS, a group of polyfluoroalkyl substances often called "forever chemicals." Derman noted Delray Beach was selected as a settlement class representative in several matters, giving the city a formal seat at the negotiation table.
Commissioners asked for a formal agenda item to analyze and recommend policy options for the PFAS funds, and city staff said they will return with an implementation plan and legal review so the commission can decide whether and how to apply settlement funds to utilities, capital projects or other priorities.
The city has not yet adopted a spending plan for the incoming PFAS funds; commissioners emphasized they will publicly discuss options before any distribution.
