Council approves $1 million loan to Mary Haven from opioid recovery fund; union asks for oversight
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Summary
Council authorized a $1,000,000 loan to Mary Haven Inc. from the opioid recovery fund to sustain operations amid reimbursement delays; SEIU District 1199 urged strict oversight and transparency, and finance staff said loan terms are being finalized and expected to be repaid within about a year.
The health, human services and equity committee presented an ordinance (34-40-2025) authorizing a $1,000,000 loan and promissory note from the opioid recovery fund to Mary Haven Inc. Council approved the emergency appropriation.
Jeff Derringer, political and research coordinator with SEIU District 1199, testified in favor of supporting Mary Haven's operations but urged that the loan not be treated as a "bailout" for mismanagement and requested diligent oversight, transparency and accountability tied to any city funding: "We ask that strict scrutiny is applied to Mary Haven moving forward... those dollars come with diligent oversight and guidance from city council." He noted that more than 85% of PCA workers at Mary Haven voted to unionize in June 2024.
When asked about loan terms, the city's finance director said terms were still being finalized but they did not expect the loan to remain outstanding longer than one year from origination.
Council members moved for passage; the ordinance passed. Committee members and the chair emphasized the importance of sustaining critical behavioral-health services while ensuring fiscal oversight.
Next steps: Finance Management will finalize loan terms and the Department of Development and council will monitor oversight and reporting conditions specified in the promissory arrangement.