“The first bill before me Introductory Number 367, sponsored by Speaker Quinn and Council Members Weprin, Comrie, Clarke, Garodnick, Martinez, Nelson, Palma, Recchia, Vann, Sears, James and the Public Advocate, Betsy Gotbaum.  Introductory Number 367 establishes a retiree health benefits trust fund.

“In my Fiscal 2007 Preliminary Budget, I proposed the establishment of a retiree health benefits trust fund for the exclusive purpose of paying the health and welfare benefits of retired City employees and their dependents.  The creation of this trust fund will allow the City to place potentially non-recurring funds in strong fiscal years in trust for the purpose of funding the City’s retiree health and welfare benefit obligations.  By reserving extraordinary one-time resources to fund long-term financial costs we help safeguard the City’s fiscal future and provide additional stability to out-year budgets.

“In March 2006, the Council approved a budget modification that appropriated $1 billion in the current fiscal year for this trust fund and I have also proposed an additional $1 billion be added to the trust fund in Fiscal Year 2007. This legislation will authorize the establishment of the trust fund and mandates that its funds can only be used for the payment of retiree health and welfare benefits. 
 
“I want to thank Speaker Quinn and members of the Council for working closely with our Administration to bring this legislation to fruition.”