Goals 2000 Report

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COUNTY; oj OSWEGO. GOALS 2000+ TASK FORCE
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Continuous
provement
Submitted to the
Oswego County Legislature
> March 14, 1996
COUNTY of OSWEGO
GOALS 2000+ TASK FORCE MEMBERS
Rockne Burns, Chairman
Brian Caswell
Roger Ehrler
Mark Gibbs
Bernie Henderson
Jack Morrison
Curt NorpeU
Stephen Parker
Michael Pollock
Connie Smith
Paul Snyder
Millard Sullivan
Joanne Swenton
Gary Toth
Joseph Wiedenbeck
COUNTY of OSWEGO GOALS 2000+ TASK FORCE
A Plan for Continuous Improvement
Table of Contents
fau
I. Acknowledgments ................................................ : ................ .... 1
II. Introduction ............................ ................. .... ........ .......... ............ 3
III. Executive Summary .................................................................. 5
IV. Summary of Recommendations .. .............................................. 9
V. Other Issues of Public Interest. ... .......................... .. ......... ... .... 55
VI. Appendices ...... ....... .... ...................................... ..... .. ........ ....... 57
Printed on Recycled Paper
SECTION I.
ACKNOWLEDGMENTS
The Oswego County Goals 2000+ Task Force commends former Legislature Chairman
Frank R. Church for having the courage and foresight to step forward to request
assistance from the business community and seek a vision for Oswego County
government.
We extend our appreciation to the Oswego County Legislature for their valuable input
and ongoing support of our efforts. Oswego County department heads and employees
also provided a great deal of information throughout the project; their cooperation is
appreciated and is evidenced by their sincere interest to deliver quality services to
County residents.
To the many County residents who shared their thoughts, concerns and valuable ideas
regarding the role of County government, thank you for your willingness to contribute to
this project. Community support from the County's Chambers of Commerce and labor
unions also enhanced our efforts, for which we are grateful. .
The Task Force applauds the efforts of Task Force Coordinator, Pamela Caraccioli,
who enabled us to realize our collective potential. Additional techniCClI and research
assistance was provided by Kerry Dorsey, Executive Assistant to the County
Administrator.
Through our association with the Private Industry Council, we set out to explore a
partnership between the County's private sector and local government. It has been an
honor and a privilege to provide this unique, voluntary assistance in an effort to improve
our community and enhance Oswego County government.
- The Oswego County Goals 2000+ Task Force
Acknowledgments 1
2
Acknowledgments
SECTION II.
INTRODUCTION
Historical Perspective
Oswego County was established in 1816 and governed by a Board of Supervisors. In
1972, the Board of Supervisors was replaced by a County Legislature comprised of one
elected legislator from each of the 22 towns, in addition to one elected legislator from
each of the 14 wards in the cities of Fulton and Oswego. This Legislature annually
elected a Chairperson to oversee and coordinate Oswego County operations.
In 1979, a local law providing for the establishment of the position of County
Administrator was enacted. The local law stated that the County Administrator is
responsible to the County Legislature, serves as Chief Administrative Officer to promote
the County's development and effectiveness, and is responsible for the overall
coordination of the various agencies of county government and the unified
management of county affairs.
In November of 1993, as a result of legal challenge to the County Legislature's
weighted vote system, the legislative districts were reapportioned. The reapportionment
resulted in a decrease in the number of elected County Legislators from 36 to 25,
effective January 1, 1996.
Current Reality
The County of Oswego is comprised of 22 towns, 10 villages and 2 cities, with a
population of approximately 121,000 (1990 U.S. Census). The County budget for 1995
was $143 million, of which 43% or $62 million was paid through real property tax
revenue. Of all the real property tax revenue the County received in 1995, one
taxpayer, Niagara Mohawk Power Corporation, paid 62% ($38 million). Niagara
Mohawk Power Corporation has asked the County for a 50% reduction of its property
taxes over the next five years.
Over the last five years, Oswego County's unemployment rate of 7-10% has been
ranked as one of the highest in New York State. Within the last three years, the County
has lost two major industries, Miller Brewing Company and Reynolds Metals Company,
and has experienced several other major downsizing efforts. This has resulted in the
dislocation of over 2,250 private sector workers and a total estimated impact on 6,300
jobs in Central New York, according to the Oswego County Department of Employment
and Training and Operation Oswego County, Inc.
Introduction 3
Vision
In the Fall of 1994, Oswego County Legislature Chairman Frank R. Church began a
project which focused on long range planning of fiscal resources in Oswego County.
The project became known as Oswego County Goals 2000+.
In April of 1995, Chairman Church appointed a 15 member, volunteer group of large
and small business representatives from various sectors of the County, including
banking, construction, education, health, manufacturing, utilities and organized labor, to
conduct a study of county govemment operations. This volunteer group became known
as the Oswego County Goals 2000+ Task Force. Chairman Church sought to "create
a climate of partnership with its citizens and businesses to review fiscal issues
and develop a sound, progressive and comprehensive model, without seriously
diminishing important services".
Charge to the Task Force
The charge to the Task Force was to "conduct a review of.the County's revenues
and expenditures, programs and services, as well as the methods and levels in
which they are provided, in order to develop a model for implementation".
Specifically, Chairman Church requested the Task Force to act, in an advisory capacity
by:
shaping a vision for Oswego County that is inclusive of all of the citizenry
reviewing successful practices of other municipalities
reviewing Oswego County's budget and financial reporting practices
identifying the County's current reality
helping to identify and match taxes and fees with the cost of services
strategizing and developing recommendations to the 1996 Legislature
Mission of the Task Force
At the first organizational meeting of the Task Force in April, 1995, its members
developed a mission which established the scope of their work plan. Their mission was
to "review revenues, expenditures, management and budget systems, and make
recommendations to the Legislature regarding ways to provide quality services
and opportunities for our community, now and in the future, in an efficient and
cost-effective manner. "
To accomplish this mission, three subcommittees were formed from the 15 member
Task Force: Structure and Management, Programs and Services, and Financial
Systems. (Additional subcommittee information can be found in the Methodologies
section of the Appendix, beginning on page 66.)
4 Introduction
SECTION III.
EXECUTIVE SUMMARY
In April, 1995, the Oswego County Goals 2000+ Task Force began to assess the
revenues, expenditures, programs and services provided by Oswego County to
develop a model for implementation.
For a period of ten months, the Task Force conducted a series of interviews with
personnel from county government operations, Legislators, unions representing
county employees, Chambers of Commerce and Oswego County residents.
Findings from the interview process were evaluated in context of infonnation
from other counties throughout the United States and the collective private
sector experiences of the 15 Task Force members. From this process, the Task
Force developed A Plan for Continuous Improvement ("Plan'1 which has the
potential to lead Oswego County government through the challenges confronting
it in both social and economic environments.
The assessment process consisted of a "macro" approach by focusing on
organization's structure and systems, rather than a typical "micro" approach
which focuses on specific services, programs and activities. The fonner provides
the foundation necessary for long tenn improvement; the latter tends to create
short tenn "fixes" which are often less than effective for long range,
organizational planning.
The "Plan" consists of fourteen recommendations which collectively will improve
the efficiency of Oswego County government through a series of organizational
changes, implementation of various management processes, and
implementation of information and financial systems. Over a five year horizon,
the recommendations will enable the County to operate with approximately 800
to 900 employees. This streamlining effort from approximately 1,174 employees
can be accomplished through the County's natural attrition rate, without the
threat of layoffs. Such changes will result in an annual reduction of $12-15
million in labor costs, and $3-5 million in related expenses. (This is a 20-30%
decrease in needed tax revenues, based on 1 9 ~ 6 budget figures.) These
changes will substantially improve the County's ability to meet anticipated
decreases in property tax revenues, while at the same time improve the quality
of essential services provided to county residents.
Executive Summary 5
There are a series of major themes upon which the recommendations are based.
The recommendations need to be addressed collectively to ensure the success
necessary to move the County into the 21st century. They include the need for
county government to:
Clearly identify its Mission; it should strive to ensure that all of the programs
and services provided are consistent with the County's Mission; provide
essential services which do not compete with the private sector; take a lead
role in the County's economic development efforts;
Separate the Legislative role from the Executive role in government
operations by centralizing leadership ultimately under an elected County
Executive. This position should "champion" the change process
recommended in this report by managing government operations consistent
with the poliCies and strategies set forth by the Legislature. Centralizing
leadership of government operations is viewed as the key prerequisite to
successfully accomplish government efficiency and effectiveness;
Make structural changes to the organization, by consolidating Legislative
Committees and departments, and reducing levels of the organization
between the department heads and the ''front line" o r k e ~ ;
Implement various management techniques to involve all employees in a
"continuous improvemenf' process, and to develop higher levels of
accountability of its managers for supporting the stated county mission;
Implement updated information systems to better measure its operational and
financial performance, improve its control of cash flow and fixed asset
management;
Implement county-wide cost accounting and cost allocation systems to
ensure that all of the costs associated with county government are properly
classified, fully allocated to the programs and services provided, and reflected
in all analyses;
Assume the lead role in areas of major interest to county residents, including
economic development leading to greater employment opportunities, and
intermunicipal cooperation to improve the efficiency of various infrastructure
support and public safety services;
Develop a stronger revenue base by ensuring maximum reimbursement from
State and Federal governments through improved tracking systems, and
analysis of the County's revenue streams to lessen dependence on real
property taxes.
6 Executive Summary
The recommendations, when fully implemented, will create continuous
improvement in Oswego County government. There are numerous examples of
other public organizations which have implemented changes of this nature and
achieved improvements in excess of those projected in this report.
The Goals 2000+ Task Force believes that with the implementation of these
recommendations, the County will be able to significantly streamline its
operations, reduce costs and tax burdens, while at the same time improve the
quality of services, and ultimately the quality of life, for residents of Oswego
County.
Executive Summary 7
8 Executive Summary
SECTION IV.
SUMMARY OF RECOMMENDATIONS
The Goals 2000+ Task Force recommends that the Oswego County
Legislature:
page
1. Identify and continuously support a stated mission ....................................... 10
2. Continue consolidation of the Legislative Committee structure ....................... 12
3. Transition leadership of County operations to an elected County Executive .. 16
4. Consolidate and the departmental structure ............. 20
5. Involve all employees in the change process and formally adopt principles of
continuous improvement ...................................... 29
6. Implement a consistent individual performance measurement process ....... 32
7. Create an ongoing compensation and benefit strategy recognizing union
leadership and involvement ......................................... 37
8. Review services on an ongoing basis to ensure consistency with the stated
mission .................................................... 40
9. Improve and standardize budgeting and benchmarking practices ............... 43
10. Develop and implement management information systems comprised of cost
accounting and modeling methodologies to determine service efficiency ..... 46
11. Improve internal controls over purchasing, cash receipts and fixed assets ........ 48
12. Lead and coordinate intermunicipal cooperation within Oswego County ..... 50
13. Strengthen tracking of claims for Federal and State reimbursements ................ 52
14. Develop a revenue strategy to control risk to County taxpayers .............. 53
Summary of Recommendations 9
1. Identify and continuously support a stated mission.
Findings
During interview sessions with the County Legislature, employees and residents,
differing viewpoints were found as to which services county government operations
should be providing or be engaged. These viewpoints ranged from a fairly narrow
scope (provide only essential services), to a much broader scope (provide any service
which can be cost justified). Although many departments have adopted mission
statements specific to their function, there is no single, formally defined and clearly
articulated mission statement for the County.
Those departments which have adopted a specific, stated mission appear to have also
a varied focus with respect to recognition of who the customers are and which services
should be provided. As a result, activities across the organization have grown to
include services which may not be essential to the mission of county government or
contribute to the quality of life for county residents in general.
Assessment
A formally identified mission statement, or a statement of _"purpose for being" is
essential to ensure that all of the resources of the organization are focused on
accomplishing only those activities which directly support this mission or purpose. In
the absence of a clear mission statement, the activities of an organization tend to grow
beyond what is appropriate for the organization causing "scope-creep." When this
occurs, resources are utilized to support non-essential activities. Unless there is an
unlimited supply of resources, scope-creep reduces the resources available to support
the activities essential to the organization, creating a reduction in the quality and
effiCiency of delivery of essential services.
Scope-creep has occurred in Oswego County. The County enjoys an abundant
revenue stream, which has contributed to a steady growth of services over the past two
decades. Given the current fiscal reality, the County of Oswego should strategize its
role through those services regarded as essential. (See Recommendation 8 for further
research on services.)
Recommendation
The County must identify, adopt and clearly communicate a mission statement for
purposes of narrowing the scope of county government. The County should focus its
resources in those areas which will directly contribute to the well being and quality of life
for county residents.
10 Summary of Recommendations
A team consisting of representatives from the various stakeholder gro_l..Ips from within
the County should be formed to identify the mission of Oswego County. (Stakeholders
are people who have a vested interest in the County, i.e. taxpayers, residents,
businesses, legislators, county employees, etc.)
Ideally, the mission should answer these questions:
What is the "purpose" of Oswego County government?
Who are the customers of the services provided by the County?
What are the unique strengths of county government operations and how can those
strengths be maximized, while minimizing costs to residents?
Based upon collective input from residents, Legislators, department heads and unions,
the County should focus on the following through its mission:
providing essential services in infrastructure, health and welfare, and areas that
contribute to residents' quality of life
not providing services which compete with the private sector
taking the lead in the economic development process, and measure its success by
the creation of employment opportunities for Oswego County residents
Once the mission has been identified, the mission should be fully communicated to all
county employees and be made available to the public. In order that the mission be an
effective statement, all employees must be able to utilize the mission in the context of
their specific job activities. The mission should also serve as a tool to challenge all
activities which do not clearly support the mission.
To ensure individual accountability to the mission and continuously measure the
County's collective performance in accomplishing the mission, county leaders should
use benchmarks to measure each activity against mission standards.
Finally, the mission should be viewed as a dynamic statement which needs periodic
review as the needs of county residents change, and as State, Federal and societal
issues change. This is accomplished by developing a simple, clearly written mission
statement which can be used by every member of the organization and all taxpayers in
the County.
2. Continue consolidation of the Legislative Committee structure.
Findings
Responsibility for government in Oswego County is vested in the authority of the
Legislature. This deliberative body is comprised of 25 legislators each representing
approximately 4,900 constituents in 25 districts. Legislators manage the affairs of the
County organizationally, through a system of standing legislative committees. In
January 1996, the Legislature reduced the number of committees from 19 to 12. These
12 standing committees are responsible for directing the operations of 26 county
departments.
Two positions of leadership created by and responsible to the Legislature are the
Chairperson and Vice Chairperson. The Chairperson of the Legislature is a member of
the Legislature and is elected annually by the Legislature. His/Her duties are primarily
to preside over meetings, appoint special committees, and execute documents and
contracts. The Legislative Chairperson is also responsible for appointing one
committee Chairperson to each of the 12 Legislative Committees. The Vice
Chairperson of the Legislature exercises all the powers and duties of the Chairperson in
his/her absence.
Assessment
The Goals 2000+ Task Force analyzed the role and structure of. the legislative
committees first by interviewing legislators and department heads, and by soliciting
public input. We asked questions related to communication between departments and
committees and the respective roles of each relative to budgeting, spending, personnel,
performance, etc. Although specific responses are varied, some common themes had
developed.
Each of the 26 county departments are responsible to one of the 12 standing legislative
committees, with the legislative committees having direct authority over the functions of
assigned departments. This system translates into a highly fragmented "management
by committee" form of government. For instance, the role of many committees
ostensibly favors a high level of involvement in the day-to-day management of their
respective departments. Other committees allow departments more autonomy in
directing the department's operations, but consult with the department head over issues
involving policy, budgets and personnel. The varying levels of committee involvement
in this system tends to create uncertainty in prescribed authority of the department
head.
12
Summary of Recommendations
Further, the current committee structure lends itself to creating overlap, duplication and
conflict of committee responsibilities. For example, both Buildings and Grounds and
Public Works Committees have high levels of responsibility over the physical assets of
the County. Social Services, Health and Human Resources Committees share the
responsibility for the social welfare of county residents. Public Safety and Fire and
Emergency Management Committees clearly share the responsibility of the safety and
security of county residents. Where there are departments with similar functions
accountable to different committees, there are opportunities for inconsistent policies
and procedures, and redundant activities across county departments.
The Legislators of Oswego County clearly recognize the need to change the size and
scope of their authority. Adoption of a resolution to reduce the number of Committees
from 19 to 12 is a positive first step.
Logic supporting the consolidation of legislative committees includes:
reduction of Legislators from 36 to 25
state-wide trend to reduce committee structure (average is 7 committees)
creation of a more unified direction of county government operations
creation of a clearer, higher level of accountability for department heads
greater span of authority per legislator
The Task Force received considerable input during the public interview sessions and
surveys which point to the County as the real driver of an economic development effort.
The County's economic development resources are currently distributed over a wide
range of different organizations (most operating outside of county government). It
appears there is a substantial opportunity to improve economic development efforts in
Oswego County by formally establishing a lead role for government to coordinate and
oversee these efforts. (See page 59.)
The County does not provide a formal structure for its strategic planning. In order to
anticipate and plan for future changes in sociologic and economic environments, the
County must establish formal strategic planning practices. This planning involves the
process of looking to the future, anticipating what the demands and constraints on
county government will be, and developing a strategy to respond appropriately. This
process, when conducted in a successful fashion, changes an organization from one of
"crisis management" to "crisis avoidance". In addition, the strategic planning function
will have the responsibility of defining the mission of the County, as reported in
Recommendation 1.
Recommendation
The Oswego County Legislature should continue the consolidation and restructuring of
its committees, with specific focus on consolidating physical assets, social welfare and
public safety. (See Figure 2-1 on page 15.) Records and Ways, Means and Budget
Committees should also be consolidated into a single Ways and Means Committee,
and General Government and Personnel Committees into a single Administration
Committee. These recommended consolidations would reduce eleven of the existing
committees to five committees.
The responsibility for economic development and the resulting creation of employment
opportunities should be strongly represented in the legislative committee structure. The
"Community Development and Planning" committee should be changed to simply
"Economic Development" Committee, to reflect clearer focus of this effort. This
Committee should take an active role in steering the physical planning to accommodate
economic development activities prescribed by the Legislature. This would give the
Legislature very necessary influence over policy decisions currently afforded to
agencies existing outside of (but funded by) the County.
The seventh committee, Strategic Planning, would deal exclusively with strategic
planning, long tenn operating goals, mission setting, and assessment of all county
services, including level and perfonnance of services, on an ongoing basis. This
committee should include the direct involvement of an elected County Executive. (See
Recommendation 3.)
Finally, the role of all committees should shift from involvement in the management of
day-to-day operations to county-wide policy making, long-range planning, and macro-
level perfonnance measurement of county operations.
14
Figure 2-1
OSWEGO COUNTY LEGISLATIVE COMMITTEES
General
Government
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& Planning
Buildings
& Grounds
---
Fire &
Emergency
Management
r=lr::lr::l
l=.J L::J L::J
Is::l
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PROPOSED
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WaYS.
Means
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[demM] [ == 1 [ ] [ X l_:n_n_: _: _ [ z. ]
3. Transition leadership of County operations to an elected County
Executive.
Findings
The Oswego County Legislature provides a leadership role and is responsible for the
management of all government operations. The Legislature accomplishes the
management function by subdividing itself and its management activities into
committees. The twenty-six department heads supervise government operations and
are individually responsible and accountable to one of the committees.
The managerial focus of Oswego County appears to be highly fragmented and lacking
coordination and single point accountability that organizations need to effect continuous
growth and development. The Goals 2000+ Task Force observed:
a lack of coordination among the various departments
no consistency between departments on various individual performance measures,
hiring of temporary and part-time workers, and labor contract administration
inadequate separation of the budget development, spending and approval
processes
little or no county-wide, intermediate and long-term planning :
undeveloped cost control and cost reduction processes
limited coordination of resources among various governmental entities (cities, towns,
school districts, economic development initiatives, etc.) within the County
uncertainty concerning ultimate accountability for decisions
an absence of the separation of the Legislative role from the Executive role, creating
an environment where parochial issues may drive activities which are not
necessarily within the context of the more generally perceived mission of the County
Assessment
The above observations were developed through the Task Force interview process and
are a result of the current organization structure rather than the people filling the
positions. Given the growing social and economic complexities facing the County, the
Task Force believes that the current structure of managing county operations through
Legislative committees is inadequate. A structure having a strong centralized
leadership position is better able to respond to the increasing complexities of county
government and address the problems identified through our analysis.
This leadership role needs to be separated from, but properly balanced with the
Legislature. The position should be responsible for the ongoing management of county
operations. It should include activities in such areas as performance assessment of the
department heads, developing and implementing various processes to encourage cost
reduction and higher value services, continual assessment of the effectiveness of the
County organization in performing its tasks, and coordination of resources within the
County to eliminate redundant activities and tasks. It is the position where the ''tough"
decisions should be made, and for balancing the priorities of individual constituents with
those which are county-wide. It is also the position which is ultimately held accountable
to the Legislature and county residents for ensuring that all long term goals and annual
objectives are satisfied, and budgetary objectives are met.
Recommendation
The County Legislature should immediately begin the process of moving toward
implementation of a County Executive form of government, by first transitioning
leadership of operations to a County Director.
Interim Step: Appoint a County Director
The position of County Director, which requires an experienced and accomplished
leader, must be immediately appOinted by the Legislature to direct the overall
operations of the County. This is a strengthened version of the current Administrator
function and remains appointed by the Legislature. In this case, however, the Director
would report to the Chairperson of the Legislature, and all department heads would
report to the Director. A four-year appointment must be made for this p'osition to offset
the two-year terms of Legislators.
Legislative Committees should focus on oversight and policy making. They would
serve a practical role in keeping the Legislature informed of the quality of services
expected and provided to the electorate. In this design, it would be expected that the
Director would be accountable for the development and submittal of an annual budget
to the Legislature.
County Legislature
Legislative Committees
.. .
Department Heads
The strength of this design is that the output of the Director will be obvious. The goals
of the Director can be clearly identified, he/she will have control of the resources
needed to achieve them and the Director's success, or lack thereof, will be evident to
the Legislature as- well as the electorate. The Director will ultimately be responsible for
carrying out policies set forth by the Legislature.
The downside is that the position will continue to be politically vulnerable to the
legislature, not the county-wide electorate. Absent a criteria for measurement of this
position's performance, appointment or re-appointment is highly subjective. Further,
there continues to exist inadequate checks and balances to assure that political
influences do not adversely affect the way in which the budget is developed, money is
spent and services rendered. Ultimately, there needs to exist a challenge to the
Legislature to ensure that only essential services are provided at an affordable price.
An appointed position is not motivated to produce an austerity budget upon which
his/her performance can be measured or to assume risk by taking a position on
sensitive topics. An appointed position does not minimize the influence of politics on
the civic responsibilities of government.
Final Step: Elected County Executive
An elected County Executive is the only alternative which will strengthen both the
County Legislature and management of county government operations, as well as
provide checks and balances to assure that only needed services are provided and at a
level that taxpayers can afford. This alternative will lay the foundation for developing
long range plans, and help the County meet its increasingly complex challenges.
A County Charter should be adopted by the Legislature, which will specifically outline
the duties and responsibilities of this position. The Charter will also enable Oswego
County to design its own form of government, best suited to local needs.
The County Executive should be a popularly elected position (four year term). The
Executive should have the responsibility for managing government operations, county-
wide, and delivering required services in a cost-effective manner at a level consistent
with revenues. This structure will position administrative responsibilities of government
separate from legislative and policy-setting responsibilities of the Legislature. The
Legislature will still use Committees to set policy and direction of departments and
provide essential feedback to the Legislature.
An anticipatory and authoritative planning mode can be achieved as the Executive will
have clear accountability to develop long range plans to enhance growth and
development in the community. Prudent risk taking can take place as the Executive
and Legislature balance current versus future needs of the County. A climate may be
developed whereby professional management can evolve to better address cost
control, regulatory, goal setting and other good management practices currently in use
in the private and public sectors.
The ultimate performance evaluator is the electorate. They will, through the ballot
process, determine if required services are being provided and at the right price. The
Executive will be under intense scrutiny by all political parties, taxpayers and the
electorate.
County Executive County Legislature
I I
Department Heads Legislative Committees
Although there is necessary delay in the implementation of an elected County
Executive, there should be no delay in the implementation of the other
recommendations contained in this report. Accordingly, all recommendations should be
implemented irrespective of timing of the County Director or County Executive steps.
4. Consolidate and streamline the departmental structure.
Findings
Government employees provide a variety of services to the residents of Oswego
County from at least thirty different locations. The following are common characteristics
and facts concerning work effort and structure of county employees.
The 1995 budget contains appropriations for 1,174 full-time employees who received
support from an additional 357 part-time and seasonal employees. The number of full-
time and part-time employees varied throughout the year and was partially dependent
on the amount of employee turnover. An analysis of data from the last three years
indicates a turnover rate of approximately 7% which equates to 80 employees per year
that leave the county government system.
County government provides services by subdividing its operations into 26 different
departments. Eighteen departments and 90% of the employees provide a service to
the public while the remainder provide administrative services to the County.
Administrative service departments include: Administration, Budget, Buildings and
Grounds, Central Services, Clerk of the Legislature, County Attorney, Personnel and
Purchasing. There are Significant differences in terms of the size of the individual
departments. A few departments (such as Health, Public Works, Sheriff's and Social
Services) are relatively large and have between 100 and 300 employees, but a majority
of the departments are much smaller with eleven or fewer full-time people.
There is a department head in each department; however, one department head in
particular has assumed responsibility for three separate departments: Social Services,
Health and Employment and Training. In five departments, "front line" employees
report directly to a department head. These departments are considered to have two
layers or levels of organization; one,level is the department head and the second level
is represented by front line employees. In the remaining 21 departments, there is an
additional one, two, or three levels of supervision between the "front line" employees
and the department head. Therefore, the County has up to five layers or levels within
the organization.
Approximately 180 employees supervise people, 310 people provide administrative
staff support and the remaining 648 employees provide a service directly to the County
or its residents.
20 Summaty of Recommendations
Departments operate independently from a service and financial standpoint. The
County Legislature measures departmental performance primarily by expenditures to
budget where independence is reinforced. Approximately $30 million of the annual
budget is not -allocated to departments. This would include Insurance, Capital
Programs, Debt Service and Fringe Benefits not allocated to departments as well as
the largest segment, Legislative Accounts ($11 million in 1995 budget). Legislative
Accounts (Authorized Agencies) are programs funded by Oswego County which
support community agencies, activities or programs and are under the control of those
particular entities. (See Figure 4-1 on page 25.)
Figure 4-2 on page 26 reflects a summary of the 26 departments, levels of the
organization and number of employees.
Assessment
County government has grown steadily to support the community. It appears that
individual departments have evolved into varied structures and management styles over
a number of years. The impact these varied structures and management styles have
on the organization manifests itself in five general categories: Employees and
Supervision; Budget vs. Services; Departmental Independence; Activities vs. Results;
and County-Funded Activities.
Employees and Supervision
There is a wide range in the size of individual departments and levels of management.
The average ratio of employees to supervision is 5 to 1. This overall ratio appears low
for the type and nature of the work. Many departments are too small or narrowly
focused which tends to limit creativity, flexibility and employee utilization, and inflates
supervisory requirements.
Budget vs. Services
Each department has defined its activities and scope of work within the confines of its
primary performance measurement, the annual operating budget. The general
philosophy is for each department to provide the greatest amount of services within the
approved budget. This is an admirable goal but as employees improve their
productivity, departmental incentives are to expand services rather than reduce costs.
Therefore, departments begin providing services which are outside their scope.
"Scope" is difficult to determine where departments do not have a clear mission or
purpose in terms of service, quality or range of work.
21
Departmental Independence
Departments tend to operate independently and have unique activities, however
departments have many common activities. Various departments complete common
activities with different policies and procedures. In addition, there are few shared
services and activities across departmental lines. The best examples are information
management, personnel, purchasing and financial control. The County has evolved
into a highly fragmented structure where departments operate independently and
typically do not share common activities, resources and controls.
Activities vs. Results
Each department appears to be narrowly focused on its own area of responsibility and
tends to place emphasis on performing activities and not necessarily results. This is
evident primarily where desired results and measurements are not defined. The impact
of a fragmented organizational structure is the creation of excessive levels of
management and administrative support staff. Excessive levels of staff perpetuate an
activities focus and can dilute results most important for the organization to achieve.
Some departments have recognized this fact and have reorganized or are in the
process of reorganizing. The most notable examples are Social Services and
Employment and Training where process-mapping has occurred and improved
productivity can be measured.
County-Funded Activities
There are a number of outside agencies and programs (Legislative Accounts) that
receive county funding for a variety of purposes. In 1995, the total cost of such funding
was $11 million (net cost to Oswego County of $6 Million) or 8% of the annual budget.
Legislative Accounts do not appear to be as clearly connected to county-provided
programs and services. This results in what may be redundant - and overlapping
activities both within and outside the existing organization. As an example, it is clear
from public input that residents expect county government to play a lead role in
coordinating economic development. Although there are economic development
functions contained within and outside the County organization, there does not appear
to be clear government coordination of this key strategic effort. This raises the question
whether economic development effort within the County is being optimized in the
interest of the entire community.
Recommendation
The County should immediately consolidate its departmental structure. Departments
with similar goals -and purposes should be unified under a common department head
and define their mission, scope and purpose within the confines of the County mission.
Consolidation will improve the focus on results, interdepartmental synergy and
communication, and help eliminate redundant or less value-added activities. A
proposed departmental structure is contained in Figures 4-3 and 4-4. The new structure
recognizes the four elected officials and places all other activities into five groups:
County Attorney, Administrative Services, Economic Development, Human Services
and Physical Services.
Activities common to a number of departments should be centralized. Examples
include information technology, personnel, and purchasing, which should be centralized
into Administrative Services. Accounting, cash receipts and other financial functions
such as accounts payable, should be centralized into the Treasurer's Department.
(This is further discussed in Recommendation 11.)
It is recommended that the responsibility for all Legislative Accounts (authorized
agencies) be assigned to a county department. The various organizations receiving
funds would continue to control their own spending but the responsible county
department should administer, coordinate, monitor and evaluate the account to ensure
that money is being used consistent with the County mission, in the best interest of the
total County. As an example, the proposed Economic Development Department would
be responsible to coordinate all county economic development efforts and funding to
ensure it is being effectively used and make recommendations to the Legislature as
needed. (Oswego County's economic development efforts are ptovided in the
Appendix on page 59.)
The County should begin to "flatten" the organizational structure and reduce levels of
the organization. The County should move toward four or fewer levels throughout the
entire organization: County Executive, department head, supervisor and front line
worker. The ratio of employees to supervision should average between 10: 1 and 15: 1.
This will increase responsibility and decision making capabilitiesof the front line workers
and significantly reduce middle management and corresponding support staff
requirements. This transition is a major work effort that will take several years to
complete and, to be done properly, should follow a rigid, structured approach that will
be discussed in Section 5.
The following table summarizes a current, conservative estimate of future employee
requirements assuming that there are no changes in the level and type of services
provided:
1995 2000
Legislators 36 25
Department Heads 26 11
Other Supervision 154 65
Staff Support 310 145
"Front Line" Workers 648 654
Total 1,174 900
Employee I Supervision Ratio 5:1 11:1
24
Figure 4-1
ASSIGNMENT OF 1995 LEGISLATIVE ACCOUNTS
TO COUNTY DEPARTMENTS-
DEPARTMENT ASSIGNED'
LEGISLATIVE ACCOUNT
County Executiye
Municipal Association Dues
WCNY-TV
Medical Scholarship
Humane Society
CNY Health Systems Agency
County Library Council
Historical Society
Brewerton Historical Society
CIP Grant
Oswego Players
Cultural Services AdviSOry Council
Oswego County Sportsmen's Federation
Economic Deyelopment Department
Regional Transportation Authority
Operation Oswego County
Economic Development Initiative
Small Business Extension Service
Oswego County Fair
CNY Regional Planning & Development
Soil Conservation District
Cooperative Extension Operations
Cooperative Extension Agriculture
Cooperative Extension 4-H
Cooperative Extension Home Economics
Oswego County Opportunities (transportation)
Human Services Department
Court Examinations
Environmental Management Council
Education of Handicapped Children
County TreaSUrer
TOTAL
Refund-Property Tax & Assessment
Contingent Account
Community College Tuition
TOTAL pROGRAM COSTS
$ 6,500
12,500
83,000
1,000
o
94,000
72,500
3,000
15,000
2,500
15,000
5,000
90,600
270,800
200,000
52,600
20,000
35,900
128,700
209,300
135,400
182,900
115,500
850,000
60,000
o
6,419,400
50,000
1,000,000
1,500,000
310,000
2,291,700
6,479,400
2,550,000
$11,631,100
25
26
Figure 4 - 2
OSWEGO COUNTY STRUCTURE BY DEPARTMENT
Current Departments
Full Time
Employees
Aaninislration liillili:=:--------------------- --- 6
----------------------- - ---------- 10
- ---------========================
Cenlr8ISeMces ----- - - - ------------ - --- 9
CIerk-legisiature - - - - - - - - - - - - - - - - - - - - - - - - 39
CountyAllomey ----------------------- - 2
County Clerk - - - - 34
DisbidAllDmey ------------------------ 8
EmgencyManagement ---------- - -------- --- -- 8
EmpIorn-tfTraining .. "",," ,.':",:.::,,:, - - - - - - - - - - - - - - - - - - - - - - - - 64
Fi,.ContraI - --------------------- - - 11
Heallh - - - - 203
0Ifice for the Aging -------------- 8
Personnel ---------- - --- 15
Planning&CommOev - ------------- 11
Probation - ------------- 47
Pnlmotion & Tourism - .- - - - - - - - - - - - - 4
Public Wor1cs - - - - 204
Pun:hasing --- -- ---------------- - -- 3
Real Property Tax - - - - - - - - - - - - - - - - - - - - - - - - 10
Sherills .""", - - - - 142
Social Services - - - - 277
Treasurer
Veterans
Youth Bureau
o
,:;:;:::;:;::.;:;::::;:;:::.:'
1 2
-- -------- - --------- - --- 11
-- - - - ---- - ---- ---------- 4
--------- - ------ - ---------------- 5
3 4
Levels of Organization
5
Total of
1,174
Source: 1995 Annual Budget Report & Personnel Department, County of Oswego
Figure 4 - 3
OSWEGO COUNTY DEPARTMENT STRUCTURE
CURRENT
County Legisla1ure ( )
LegiIIatIft
PROPOSED
( Interim)
County Legislature
Q
o
S
of the
Legislature
.............................. .... --------....
: : :: I
g
nty g" ric:t gg EJ Director
Oerk Attorney SheIiIf T_rer County of
Attorney !AdminIStrative
Elecled Elecled Elecled Elecled Services
Director or
of of of
Economic I1Iman Physical
Development SeMces 5efvices
27
28

OSWEGO COUNTY DEPARTMENT STRUCTURE
PROPOSED
( Interim)
( )
County Legislature
S
- oftne
I
legisllllure
EJ
..................................................
: : :: I I I I

0er1c Altomey Sheriff 0Iunty of of of of
Attomev dministrativ Economic Human Physical
Elected Elected EIec1ecI EJectecl Services Development Services Services
PROPOSED
( Final)
( :) .. .... c_o_u_nty ____ Le_Q_is_la_tu_re_ ,( ]
_ legislature
.................................................. l---------.--.-------.-----.-----------.
: : :: I I I I
g" or or
Oerk Attorney Sheriff T_ Q)unty ct ct ct ct
Altomey dm' istmiv Economic Human Physical
Elected Electecl Elected E/;fecl Development Services Services
5. Involve all employees in the change process and formally
a.dopt principles of continuous improvement.
Findings
As outlined in Recommendation 4, Oswego County employees are organized into
departments and then typically into separate work groups which perform common
activities. In most departments, there does not appear to be a clear performance
measurement system that focuses on service, quality or cost per unit of output. A
process for involving employees in continuous improvement efforts such as quality
circles or performance improvement teams was also not prevalent in all county
departments.
Potential reductions in Federal and State funding combined with progressive leadership
has led two departments to begin a formal change process. Employment and Training
and Social Services have been working with a consultant to redesign their work
activities. The customer-focused effort called "Jobs First" is intended to get current and
potential welfare clients to work as soon as possible. Driven by reduced program
funding, the two departments intend to reduce the time, people and cost required to
deliver their service. They have developed several transition and work redesign teams
comprised of a cross section of employees to facilitate the process. The formal change
process has been active for more than one year with major improvements expected to
be implemented during 1996 and 1997.
Assessment
Fragmentation of county departments has resulted in a broad range of employee
involvement and continuous improvement activities. A formal improvement process
initiated in larger departments such as Employment and Training and Social Services is
more difficult to implement in smaller groups. The recommended consolidation of
departments with common goals (Recommendation 4) is essential to the process and
would enable an effective work redesign process to begin.
It is not clear that the two departments that have begun a work redesign process have
formatted a comprehensive strategy with respect to displaced or redundant positions
particularly those related to middle management. This strategy must be developed,
communicated and implemented or the process will only achieve marginal success.
Our interviews and discussions have not revealed any other county or department
driven initiatives that involve formalization of any customer goal measurement systems
or the adoption of any continuous improvement concepts.
Recommendation
It is recommended that the County involve all employees in a formal continuous
improvement process. The core of the process will take two to three years to
implement and sustain. The following is a list of suggested steps:
1. After consolidation into new departments (Recommendation 4), leadership should
establish and communicate clear, measurable and customer-driven goals. Goals
should relate to improvements in service, quality and costs and be linked to the
County mission as discussed in Recommendation 6. A rough initial outline and long
term plan should be developed that conforms to reducing levels of the organization
to four or fewer: County Executive, department head, supervisor and front line
worker.
2. All county employees should be systematically trained in Quality Management. A
central purpose of the training is to ultimately form strong quality and service links
with both suppliers and customers to promote continuous improvement. Training
should be championed by the County Executive and centrally coordinated by the
Administrative Services Department. The training should be done by key county
employees who are orchestrated by the Director of Administrative Services.
Training should include employee involvement skills, problem solving, quality
awareness and continuous improvement techniques, quality, management skills and
statistical methods. An outside consultant should be employed to "train the trainers"
in the various employee involvement and quality management practices.
3. Quality Management training builds the necessary foundation for each department
and work group to refine specific quality, service and cost goals for respective
customers. Quality Management techniques can be further utilized to develop or
"process map" a streamlined operation that maximizes quality and service while
minimizing costs.
4. Development and optimization of a streamlined operation requires a realignment of
employees both within and between the work groups. These changes require the
active involvement and participation of all employees. Employees should receive
specific on-the-job-training that will increase their flexibility and broaden their scope
of daily work. Non value-added work should be eliminated, thus reducing the
number of people required to achieve quality and service goals. The effective use
of information technology is an essential ingredient.. in making these improvements.
It should be noted that this change will be viewed as a direct threat to the security of
middle management employees as the County moves to four levels of the
organization. These employees should be moved quickly to other opportunities or
they will be a distinct hindrance to the continuous improvement process. If properly
planned, layoffs will not be required.
5. Each department will be comprised of one or more separate teams. Each team will
have one supervisor or leader that exists to provide support to the membership.
Teams will be the nucleus of the new organization; higher goals and expectations
should continually be established by the Legislature, County Executive and
department heads, thus driving the continuous improvement process.
Effective facilitation of this entire process and dramatic improvements in the use of
information technology are two key ingredients of the change process that must be
successfully implemented by the Director of Administrative Services.
6. Implement a consistent individual performance measurement
process.
Findings
Based upon interviews conducted with many department heads, it was found that there
is only limited application of a formal individual performance measurement process
throughout county government operations. Very few departments formally define their
goals on an annual basis. Department heads are not measured by their ability to
achieve results against set goals.
There is no comprehensive county-wide process for setting top level goals, which can
be used by the various departments for setting their own goals. Without this
opportunity to achieve "alignment of goals," there is no opportunity to create a
"singleness" of purpose throughout the County.
Assessment
The classic definition of management is "getting work done through others". Successful
managers, who in turn create successful organizations, excel in their ability to inspire
those who work for them to achieve results. "Getting work done through others" begins
with the process of defining clear, concise statements which identify what a particular
organization is all about, what it desires to accomplish, and how all the resources in the
organization are to be focused or aligned to achieve desired This process
consists of the following components:
A Mission Statement
Long-Term Goals
Short-Term Objectives
Performance Measures
Performance Reviews
When all of these components are properly built into the management process and
culture of any organization, they collectively create a spirit of purpose with every
employee in the organization from the top leader to the people on the front line. They
know what their individual performance is against specific measures, and how they are
contributing to the success of the overall organization. Each employee also has a
benchmark for determining if a given job activity helps the organization in achieving its
overall purpose. Because every organization has a limit on available resources (both
financial and human), it is important that only those activities which directly support the
overall purpose and mission of the County should be pursued. These types of activities
are termed "value-adding" activities; non value-adding activities create a waste of
resources and detract from accomplishment of purpose.
There are essentially two fundamental approaches to the performance assessment
process:
Traditional: Goals focused on activities.
Goals are not easily measurable, not fully aligned with the goals of others in the
immediate organization, and not highly results oriented.
Reviews tend to occur annually, generally on the anniversary date of the incumbent.
Assessment of results tend to be somewhat subjective; salary increases are not
tightly linked with results. No training is provided to improve skill sets needed for
improved performance.
Results-Oriented performance Management process: Goals focused on attainment of
results.
Goals are easily measurable, fully aligned with the goals of all other levels of
organization, and focused on achieving results consistent with overall organization
objectives.
Reviews are ongoing, and commence at the beginning of the year with clear
agreement between all customer-supplier relationships on individual goals.
Periodic review of performance against goals is used to provide opportunity for
corrective action prior to year end.
Assessment of results is objective; salary increases are tightly linked to achievement
of results. Training needs are identified based on performance gaps.
Recommendation
Based on the available options, it is recommended that Oswego County implement a
results-oriented performance measurement process, as summarized in Figures 6-1 and
6-2 on pages 35 and 36.
By creating a results-oriented culture, with the entire organization focused on achieving
results which have been determined to be critical to the success of the organization,
Oswego County will achieve a higher quality of service at a reduced cost by eliminating
non value-adding activities. This type of performance management process also
creates the opportunity for a more efficient organizational structure. As "front line
workers" become more aware of what is expected of them and what types of activities
are important to the overall success of the County, they need less "hands on
management" while they perform their job duties. This allows for the reduction of layers
and numbers of management, which also helps to improve communication between
workers and department level management.
33
Once implemented, the performance measurement process becomes a very useful tool
for assessing individual performance and building higher levels of accountability into the
organization. Two truisms of management are that there cannot be achievement
without accountability, and you cannot improve what you do not measure. This process
of assessing individual performance against the pre-established objectives is the
process of establishing accountability. It is the vehicle which links individual
performance to county objectives, its mission, customer needs and core job
requirements;
Lastly, this type of performance measurement process is a useful tool for identifying
training and development needs for county employees. Just as the level of success
against objectives can be used to determine pay increases, performance gaps can
identify additional skills an employee may need to be successful in the more
progressive organization. By providing training to employees and allowing them to
become more effective on the job, they have the opportunity for continued personal
growth, development and career advancement.
A formal individual performance measurement process will provide the following
benefits to the County:
improve efficiency of the County, reducing costs while at the same
time increasing the quality of its core services
drive strategic objectives throughout the entire organization
maximize employee performance
clarify and support roles of the employee, supervisor and manager
send a strong message that the County believes in and supports the
development of its employees
Planning
Horizon
Long Term
(3-5 Years)
Intermediate
term
(1-3 Years)
Short Term
(1 Year)
Short Term
(1 Year)
Short Term
(1 Year)
Immediate &
Continuous
Figure 6-1
PERFORMANCE MEASUREMENT
ALIGNMENT PROCESS
Performance
Parameter
Expected Outcome
Organization Individual
County
Definition of 'What
Mission
~
is our purpose of
being"
+
General
Maintains direction
~
consistent with
Goals
purpose
+
Annual County
~ Focuses resources County Leadership
Objectives
to maintain direction Performance
Measurement
+
Dept. Head
Aligns resources to Individual
Objectives
~
achieve objectives Assessment
Merit $ & Training
I
,
Mid-Mgmt.
Aligns resources to Individual
Objectives
--.. achieve objectives Assessment
Merit $ & Training
I
,
Team Based
--..
Focuses teams on Individual & Team
Initiatives
achieving desired Training &
results Development
35
Figure 6-2
COMPONENTS OF PERFORMANCE MEASUREMENT
Mission Statement
Answers question, "What is our purpose for being?"
Defines boundaries for expenditure of limited county resources.
Provides a reference point to guide in day-to-day decisions.
Goals and Objectives
Focuses resources on only those activities which are consistent with County
Mission.
Defines what performance parameters will be measured.
Provides basis for assessment of individual performance. (People do those
activities which they are measured by.)
Drives the ongoing "continuous improvement" culture.
Performance Measures
Allows for continuous feedback to "how are we doing?"
Provides additional opportunity to emphasize need to focus all resources on only
those activities which are "sanctioned" by County Mission.
Formal Performance Feedback Sessions
Provides opportunity for "mid-course" corrections if results are not consistent with
objectives.
Allows for identification of training needs to sharpen skills needed to achieve results.
Salary Increases
Directly linked to accomplishment of objectives.
Creates "results-oriented" culture.
Reinforces alignment of activities consistent with County Mission.
Training and Development
Used to develop skill sets needed for goal achievement.
Full-range from "soft" (leadership, team dynamics, problem solving) to "hard"
(technical, equipment specific, computer literacy) tools.
7. Create an ongoing compensation and benefit strategy
recognizing union leadership and involvement.
Findings
The County's Personnel Department provided detailed, county-wide data for analysis
and sample compensation and benefit information representing a cross section of
employees. The information was then analyzed relative to the 1995 Annual Budget and
will serve as the basis for the findings and assessment.
There are several work schedules employed in the County but the two principal
schedules are a 40-hour work week (8 hours per day) and a 35-hour work week (7
hours per day). County estimates indicate that approximately 75% of county
employees are scheduled on a 35-hour work week. Employees earn an average
annual vacation of 20 days, holidays totaling 12 days, and receive 12 guaranteed sick
days. Therefore, the typical employee works 83% of the scheduled time but will also
work the equivalent of 12 days (5%) of overtime. This average overtime is misleading,
however, because it is heavily skewed to three departments: Pubic Works, Sheriff's
and Health.
The average base compensation for all county employees is $13.79 per hour and the
total cost is $23.12 per hour worked. This indicates that the County contributes an
additional $9.33 per hour worked or 68% over the base rate for vacation, holidays, sick
time, overtime, taxes, health benefits, life insurance, retirement and various
miscellaneous expenses. The County has had the benefit of an over-funded New York
State Retirement System, so that over the next three years the cost of this benefit will
increase by $2.5 million per year or $1.36 per hour worked. Figure 7-1 on page 39,
provides an annual breakdown of these costs and excludes the cost of part-time,
temporary and seasonal employees where $3.5 million (357 employees) was provided
for 1995. Approximately one half of the part-time employees receive partial benefit
coverage.
Assessment
Although the overall base rate appears competitive in the community, the County
contributes an additional 68% to employees to cover fringe benefits. As a comparison,
business and industry reviewed in Oswego County will average between 40% and 55%
when calculated on the same basis suggesting that the County is paying a benefit
premium. Some of the principal areas of difference are in the short work week (35 vs.
40 hours), guaranteed sick time, and minimal contributions employees make toward
health benefits. The rapid increase in New York State retirement liability will
dramatically increase the current fringe benefit rate by another 10% (to 78%) or $2.5
million if no other changes are implemented.
The County employs an abnonnally high number of temporary and part-time
employees. The annual turnover and absentee rates would support a temporary and
part-time work force of 50 to 100 people which is one quarter of the actual experience
in 1995. Figure A-3 in the Appendix (page 65) contains a detailed breakdown of the
1995 personal services budget.
Recommendation
The County should develop a five-year compensation and benefit strategy involving the
three unions and management represented employees, to achieve long-tenn reductions
in overall labor costs.
The suggested improvements in productivity will require considerable discussions
around job flexibility if optimum benefits are to be realized by the County and its
employees. Department consolidations, organizational streamlining and the focus on
service and quality will have a significant impact on temporary and part-time employee
requirements as well. This situation along with all factors should be openly discussed
and a strategy developed. As examples, the evaluation of a 40-hour work week or
guaranteed sick time should impact part-time and full-time requirements in an effort to
reduce overall costs.
A compensation and benefit strategy should be designed to reduce total cost to the
County while increaSing productivity, responsibility and flexibility'-
38
Rgure 7-1
OSWEGO COUNTY 1995 PERSONAL SERVICES
ESTIMATED DISTRIBUTION
( MIWONS OF DOLLARS)
Cost I!!!: Em I!!ol!!!
Pay Dlstrtbution category Cost to County per year per hour worked
Pay for Time Worked $24.0 $21,600 $13.79
Overtime I Additional $1 .9 1
1
700 $18.89
Subtotal $25.9 $23,300 $14.07 (1)
Vacation I Holidays $3.5 $3,200 $1.93
Sick Time $1.3 $1,200 $0.73
FICA I Taxes I Wk Comp $4.3 $3,900 $2.35
Health I Life Ins $6.3 $5,600 $3.38
NYS Retirement $0.8 $700 $0.42
Other $0.4 400 $ 0.24
Total $42.5 $38,300 $23.12
Source: 1995 Annual Budget Reporl & Estirrates from Personnel Department, County of Oswego
Notes: Costs are based on 1,110 Full Tame ElJ1)Ioyees and excludes the Department of ErrpIoyment & Training
(1) $ per hour wortced subtotal is the average of Pay for Tame Wortced @ 1,566 hrslyr/errployee and
Overtime / Additional @ 90 hrslyr/elJ1)loyee
Tax Sick
Retr
Pay for time worked
% of Total
57%
4%
61%
8%
3%
10%
15%
2%
1%
100%
39
8. Review services on an ongoing basis to ensure consistency
with the stated mission.
Findings
The County of Oswego provides residents a wide array of programs and services, and
although the County does not have a stated county mission, there is a general
understanding of its purpose among Legislators, employees and the public. The
consensus among all groups is that county government should provide essential or
needed services in a cost effective manner to residents.
Services have been added or changed over the years but the terms "essential" or
"needed" have not been defined or reviewed either for individual projects or ongoing
activities. In most cases, the delivery of services are evaluated in subjective terms by
county employees and there is little evidence of quantitative measurements being used
to evaluate the quality or level of the services being delivered. The term "cost effective"
to most employees equates to "net costs" to county residents of the 26 individual
departments. In this context, net costs refers to the difference between departmental
revenue and direct costs which is the amount that will ultimately be paid by county
residents as real property taxes. Direct costs to operate each department include
employee salaries, overtime and overhead.
Direct costs do not include employee fringe benefits, indirect or semi-fixed costs.
Fringe benefits include health and life insurance, and retirement benefits. As discussed
in Recommendation 4, indirect costs would include the 8 departments that are providing
administrative services to support the other 18 direct service departments. Semi-fixed
costs consist of capital programs, debt service, insurance and Legislative Accounts
(authorized agencies). In total, fringe benefits, indirect costs and semi-fixed costs total
$40 million or 28% of the total county budget for 1995, and are currently not allocated to
the 18 service departments in the annual budgeting process.
Assessment
Although County government does not have a stated miSSion, there are generally
accepted views by employees and residents that the County should provide essential
services. Although the term essential has a variety of interpretations, county services
should complement the Federal, State and private sectors rather than compete with
them. In situations where the County is competing with other sectors, service, quality
and cost effectiveness should be determined and used as a deciding factor.
40
County government does not have objective, quantitative methods for analyzing the
services that it is currently providing. Several departments maintain that there are no
costs to county residents for their services, as is evidenced by the annual budget
report. This analysis, however, excludes total fringe benefits, indirect costs and semi-
fixed costs expended to support the activities of those individual departments.
Both the public and private sectors have discovered that improvements in quality and
reductions in cost are both achievable and necessary to survive in today's global
economy. Such improvements have resulted from the recognition that focusing on the
"coren business of an enterprise is vital.
Recommendation
All programs and services, whether delivered by the County or by outside agencies,
must be subject to continuous review to ensure consistency with the stated mission.
This review process must be formal, documented and a primary function of the
Strategic Planning Legislative Committee, as outlined on page 14 of this report.
A formal process should be established that requires department heads to use cost
performance benchmarking in the administration and oversight of all programs and
services. Comparative data on best practices can be used to establish concise targets
or goals against which cost and performance can be measured. This analysis, however,
must include total fringe benefits, indirect costs and semi-fixed costs expended to
support the activities of those individual departments.
As part of the formal process, the County must focus on its core business and classify
its services into the following categories:
Mandated
Mandated services are essential services in infrastructure, health and welfare.
Discretionary
Discretionary services are services which may be privatized or outsourced to other
government units. Following are some of the activities that appear discretionary which
should be analyzed by the Strategic Planning Committee using true cost information
and considered for privatizing or outsourcing:
road and bridge construction
airport operations
motor vehicle departments
Sheriffs road patrol
payroll
data processing
Divested
Divested services are services that compete with the private sector or other government
units which alreaay provide or have jurisdiction over these services. The County
Legislature should develop a comprehensive transition plan for the private sector or
other government units to absorb the following activities without quality . or service
interruption to county residents:
nursing home
mental health
home health care
buildings maintenance
grounds maintenance
furniture building and restoration
building capital improvements
asphalt plant
fuel service at airport
snowmobile trail grooming
jail food services
As reported in Recommendation 4, Legislative Accounts (authorized agencies) should
be reassigned to specific departments as outlined in Figure 4-1 on page 25. This
change would improve the oversight and accountability of these programs and services
and ensure that the administration, process, review and critique are consistent with all
other County services.
42
9. Improve and standardize budgeting and benchmarking
practices.
Findings
The County's budget process consists of preparation of operating budgets by the
department heads, with approval of each departmental budget by the Legislative
committees. The Budget Department provides guidance to the department heads on
operating expenses and the Personnel Department provides guidance on issues
related to the budgeting for labor and staffing. Once developed by the department
heads, the budget is compiled by the Budget Department; the Budget Department
coordinates the review with the Ways, Means and Budget Committee, the Personnel
Committee, and finally the full Legislature.
Budget preparation is based primarily on historical information, using the previous
year's budget as the baseline for the new budget. Committees are generally involved in
portions of the budget development with their respective departments prior to approval;
this level of involvement varies from committee to committee. Adjustments to the
budget are made to offset expenditures and are made with committee approval.
Adjustments which increase budget line items are based on full Legislative approval.
Although some internal benchmarking between departments exists for developing some
line item budgets, no substantial external benchmarking of costs for services is used as
a guideline for budget development.
Assessment
With no formally defined budget process, the existing process is highly fragmented.
There are no comprehensive, centralized budget objectives (e.g., type of services, level
of services, ceilings on spending by major line items, staffing reduction targets, etc.)
available to the department heads for use in generating the budget. The budget
objectives provided to the department heads are as diverse as the interests and intents
of the legislative committees. In addition, with the main basis for the new budget being
last year's budget, there is no formal process to challenge the value of each major item
during the budget development process. In general, the guiding principle used during
the budget development process is "last year's actual expenses with no additional
increases, or with a uniform percent change affecting 'all departments"; this creates a
general expansion of the budget, and results in the corresponding "scope creep" in the
services provided by the County identified in Recommendation 1.
Benchmarking, or comparing the costs of a service provided by the County, with costs
for the same or similar services in other areas of either the public or private sector,
allows for the identification of "best in class" costs. Benchmarking can be a useful
exercise to ensure that the cost of services provided by the County are consistent with
or competitive with the same services elsewhere, and helps to develop cost reduction
objectives which can then be incorporated into the budget. The budget then becomes a
useful performance measurement tool as the actual costs are compared with those in
the budget. Overall benchmarking, when used in this manner, helps to improve
organizational productivity through the understanding of Flow other organizations
provide services in an efficient and cost effective manner.
Recommendation
The County should develop a formal budgeting process. This process should include
external benchmarking to identify "best in class" costs; centralization of the process of
setting budgetary objectives; and should change the manner by which budgets are
developed from one of "historical extrapolation" to a "zero-based" budget process.
The process should commence with the definition of overall budget objectives by the
Legislators, based on antiCipated revenues and reimbursements, and an appropriate
use of reserves. From this overall financial objective, the County Executive and
legislative committees should develop department specific objectives based on an
assessment of the specific programs and services needed, consistent with the County
mission and the residents' needs. These department specific objectives should then be
used by the department heads to develop the budget for their department. This actual
budget development should be "zero-based", which requires that the budget be
generated through the identification of the various activities needed to support
programs and services, and all of the related "support costs" incurred by those
activities. It should be noted that this type of budget development differs substantially
from the current method in that it begins with a build up of costs; the current process
uses last year's spending as the basis for the budget development.
Once the budget is generated, the review process should commence with the County
Executive, who ensures that the proposed budget both satisfies the mission and
objectives of the County, and complies with the financial objectives -developed by the
Legislature. The County Executive must also "sign off' on the budget package_ and be
responsible for reviewing it with the committees for their agreement that it complies with
their expectations, and ultimately for submitting it to the full Legislature for approval.
This process is not as simplistic as described. At each step in this process, there needs
to be interaction between each level to ensure that all expectations are fully
understood, and issues are fully addressed. Negotiations between department heads,
the County Executive and legislative committees will also need to occur to achieve an
appropriate balance between the desired programs and services, and revenue.
Legislative Accounts, as identified in Recommendation 4, should also-be incorporated
into the above budget process. As appropriate, the department head or County
Executive should be responsible for developing a budget for each of these items, and
be held accountable for complying with the budget in the spending plan.
The Ways and Means Committee should be responsible for establishing the
classification, or identification, of line item accounts; these should be standardized
across all county budgets. The County Executive should be held accountable for both
overseeing and complying with all of the departmental operating budgets and in turn
should establish strict accountability of the department heads for variance analyses on
a monthly basis. Throughout the year, department heads need to review variances
with their respective committees for the purpose of identifying an action plan to correct
spending problems. In the event that an unusual situation creates a significant budget
variance, the County Executive should propose a budget adjustment, balancing
accounts between departments if necessary, to ensure that the County as a whole
complies with the annual budget. The Legislature should continue to be responsible for
reviewing and approving any such proposals.
10. Develop and implement management information systems
comprised of cost accounting and modeling methodologies to
determine service efficiency.
Findings
Presently, cost information is available through the County's financial system on a line
item basis. Information is limited to department level direct costs using subaccounts or
objects, such as salaries and wages, telephone and furniture, and is available
essentially on a cash basis.
Actual expenditures reported to department heads do not accurately reflect resources
consumed to produce specific units of service in specific periods of time. For example,
quantity purchases of supplies or prepayment of contractual expenses covering several
months' usage is reported as an expenditure in the month that the invoice is recorded.
Although, an indirect cost recovery project is prepared by an outside firm for claims
reimbursement purposes, no regular allocation of indirect costs to services is made.
A consistent, county-wide approach to developing and using cost information is not
evident.
Assessment
Management information systems are tools for department heads to accomplish county-
wide and departmental operational objectives. Management information may take
many forms and may encompass areas such as service, volume, quality and cost. As
decision makers, department heads need to know the total cost of various activities
under their responsibility, and how cost of delivering services are affected by certain
modeling scenarios, such as change in customer characteristics or service definition.
Cost accounting systems provide information on costs of existing services and can be
utilized to conduct modeling or other pro forma analyses. Operation of the system
requires detail analyses of the use of resources and can help reduce costs which are
under the department head's control, but do not add value to services.
Knowledge of total cost is necessary to make informed decisions, particularly in light of
the current county realities affecting revenues and" costs. The lack of true cost
information limits the department head's ability to accurately compare revenues from
fees and other sources against the consumption of resources to provide that service.
Service alternatives cannot accurately be compared without cost-benefit analysis based
on total cost.
Recommendation
The County should develop a consistent, county-wide approach to cost
accounting/manag-ement. This approach should consider:
standards for level of detail
allocation of indirect costs
potential uses of cost information by county decision makers
The County should also develop accounting procedures for consistency among year-
end audited financial statements, the cost accounting system and other financial
systems.
Implementation of a cost accounting/management system will provide total cost, cost
versus revenue, service line profitability and modeling. This system should use
information developed in the "zero-based" budgeting process, and service definition
and volume measures established during.departmental planning.
The County Executive should investigate cost accounting/management systems by
benchmarking systems used in other counties, and direct all county departments to be
phased into that system. Over time, as the County gains experience in using cost
accounting/management information, the County Executive should consider using more
sophisticated measurements, such as activity-based cost accounting. .
47
11. Improye internal controls oyer purchasing. cash receipts and
fixed assets.
Findings
The County established a purchasing policy in 1980 and has made periodic changes,
the most recent being February 1995.
The purchasing activity is presently centralized for supply and material purchases
above certain thresholds ($500 per order per vendor for most departments; $2,000 per
order per vendor for Building and Grounds and Public Works Departments). Purchases
below these thresholds are made at the department level. Departments issuing claims
vouchers for departmental purchases below these thresholds also receive invoices, and
match vouchers, invoices and receipt notifications for submission to the Purchasing
Department. The Purchasing Department performs a matching function for purchase
orders, receipt notifications and invoices for purchases above these thresholds. This
matching function results in approval of the invoices for payment.
The County Treasurer audits purchase orders and vouchers. The Purchasing
Department and the Treasurer's Department identify purchases that would benefit from
standing contracts.
Cash is presently received in various locations throughout the County and occasionally
checks are made payable to persons other than the County Treasurer.
Presently, there is no centralized inventory of a" fixed assets. Partial inventory listings
are maintained by both Public Works and Purchasing Departments. Under the
County's purchasing policy, the Purchasing Department is responsible for maintaining a
complete, county-wide inventory of fixed assets. The Treasurer's Office, however,
maintains aggregate cost information of fixed assets for financial reporting purposes.
Assessment
Internal control principles exist to assist in developing financial and administrative
systems which reduce the possibilities of loss because of inappropriate use. Emphasis
is on systems design rather than the individuals using systems.
"Segregation of duties" requires that administrative functions such as purchasing be
designed in components, with distinct management responsibilities for each
component. The department issuing the purchase order (or claims voucher) should not
be the department that performs the matching function. This accounts payable function
results in approving the invoices for payment, but is subject to a further check by the
individual issuing the payment.
In addition to internal control issues, a strong, centralized purchasing function offers
economies which allow overall cost reduction. This can be accomplished by using
quantity discounts, standing purchase orders, and materials management principles.
Segregation of duties should also exist in the cashier function With regard to preparation
of bank deposits and posting of certain bookkeeping entries. In designing systems
dealing with cash, a single cashier should be established to receive all payments and
exert strong controls over all aspects of handling cash. A centralized cashier function
helps to avoid delays and discrepancies in investable cash balances.
Internal control is also exerted by maintaining information on the type, location, age and
other characteristics of fixed assets. Information systems allow department heads to
plan the purchase, maintenance and replacement of fixed assets. The risk of loss,
obsolescence and duplication is reduced through internal fixed asset control which is
centralized.
Recommendation
The County should centralize the purchasing and accounts payable functions. As
mentioned in Recommendation 4 on page 23, there are a number of administrative and
fin.ancial functions which should be consolidated. For both organizational efficiency and
internal control, purchasing should be centralized in the Administrative Services
Department and the accounts payable function centralized in the Treasurer's Office. All
invoices should be mailed to the Accounts Payable section of the Treasurer's Office.
The County should designate a single cashier for receipt of all cash under control of the
County Treasurer and require that all payments be made payable to the County
Treasurer.
The County's purchasing policy should be changed to reflect strict, county-wide
guidelines for inventory control of all fixed assets managed through the Treasurer's
Office.
12. Lead and coordinate intermynicipal cooperation within Oswego
Coynty.
Findings
The County of Oswego is comprised of over 138 separate governmental jurisdictions
within its borders including at least 43 municipal corporations: County of Oswego, 2
cities, 22 towns, 10 villages, 8 school districts, 15 special purpose units (agencies,
authorities, libraries), 73 town special districts, and at least 5 fire districts.
Assessment
According to officials of various units as well as the general public, many. of the above
governmental jurisdictions overlap, resulting in service delivery complications,
unnecessary administrative expenses, and confusion to the citizenry as to where they
should go to receive services or have their needs addressed.
Many local problems require a regional approach to better deal with antiquated laws,
traditions and jurisdictions which do not meet modem needs. Spending is exceeding
taxpayers' ability to pay and Oswego County must look beyond short-term solutions and
into more long-term cost cutting and efforts to consolidate. In the area of assessment,
for example, the County and the current Assessing Units in the County (Towns, Cities
and possibly some Villages) should study the benefits and costs of having all real
property in the County assessed by a central assessing agency, as opposed to
independent assessments by each Town, City or Village Assessing Unit ..
Intermunicipal groups have existed since the 1950's in communities such as
Indianapolis, Jacksonville, and Nashville. Dialogue among such groups brings
progressive problem-solving, often leading to consolidation and the sharing of critical
services among jurisdictions. Often there is just a basic need to maintain existing levels
of service, by finding a partner to share in the cost there is a greater chance of
maintaining necessary service levels.
Seven years ago, the City of Syracuse and the County of Onondaga initiated an
"Intermunicipal Consortium" where elected officials met to discuss their problems and
exchange solutions, thereby establishing greater communication. In 1996, the
Syracuse Intermunicipal Consortium will become much more formal. Their schedule
will include formal agendas and timelines, as well a ~ the inclusion of the Syracuse
School Districts. The Consortium will be led by the Onondaga County Planning
Department.
50
Recommendation
The County of ~ w e g o should take the lead in organizing an fnterrnunicipal Council
comprised of leaders from the State, towns, cities, school districts and the County, to
meet on a regular basis in an effort to discuss problems of fragmentation and
duplication of services.
This Council should be established to begin the process of making changes necessary
to capitalize on synergies, eliminate duplication, improve the quality of services, and
most importantly, reduce costs to county residents. The success of this Council will
absolutely require its members to set aside politics, favoritism, and provincial interests,
in order that taxpayers within the County benefit from its existence. Mergers and
consolidations of services should ultimately be explored.
13. Strengthen the tracking of claims for Federal and State
reimbursements.
Findings
Presently, approximately 29% of county revenues are attributed to claims for Federal
and State reimbursement, through many different programs. Accounting estimates of
revenues and receivables are prepared at the department level with oversight by the
County Treasurer. Resolution of a claim may involve negotiations, delays, partial
payments and other situations adversely affecting payment.
Assessment
Active management of claims for Federal and State reimbursement is necessary to
maximize the County's cash position and cash flow, and to accurately account for
county assets and revenue.
Recommendation
The County should establish county-wide policies and procedures for calculation,
submission and collection of claims. Additionally, reasonable accounting estimates
should be made of the amount and timing of cash flow from claims, for financial
accounting purposes, as well as to provide control over uncollected .claims. Active
pursuit of payment should be directed by the Treasurer's Office.
"
14. Deyelop a revenue strategy to control risk to County taxpayers.
Findings
Most counties in New York State raise up to 76% of their revenue requirements from
non-property tax sources. Oswego County raises only 50% from non-property tax
sources. Over 60% of the real property taxes collected are paid by one taxpayer,
Niagara Mohawk Power Corporation.
County assets are not listed for purposes of inventory control, use and record of sale.
The sale of delinquent real property in the County is primarily the responsibility of the
legislator from the jurisdiction in which the property is located. The impetus to sell the
property is to recover unpaid taxes and return the property to the tax rolls.
Opinions vary among legislators and department heads regarding the level at which the
County's fund balance should exist. The New York State Comptroller generally applies
. the 10% rule (not to exceed 10% of total appropriations) in determining the level of
unappropriated fund balance. The County has not developed a long-term strategy for
use of the fund balance, independent from the annual budget process.
Assessment
School and property taxes remain high on the list of challenges for local officials.
Recent plant closings and corporate downsizing in the area, along with chronic high
unemployment rates of over 9%, focus attention to real property taxpayers. Currently,
real property taxpayers bear all the risk with over 50% of the County's revenues
consisting of revenue from real property taxes. In this context, the County lacks a plan
to balance its revenue resources with the needs of its residents.
The method of sale or disposal of county assets, particularly delinquent tax property,
does not necessarily maximize the value of the asset to the County. While the impetus
to sell county assets is to recover a portion of their costs, it is not standardized to
include assessment of value and recovery of same. The impetus in selling delinquent
county tax property is to satisfy unpaid taxes and return the property to tax rolls,
however, the fair market value of the property is not always assessed and recovered in
the sale.
Finally, a number of issues surround the level at which the fund balance exists in the
County, particularly, "What is a reasonable level of accumulating surplus for Oswego
County?" or "Should there be any surplus at all?" All financially sound organizations,
private or public, require accumulated surplus or excess of assets over liabilities,
particularly when recognizing the uncertainty of future events, including periodic swings
in revenues and expenses.
Accumulated surpluses are not necessarily evidenced by liquid a s s e ~ such as cash
and investments; they may also represent investments in capital items purchased
through the general fund. Benchmarking sources are available in all cases noting
restrictions by external parties such as bondholders and banks.
Recommendation
Although the County should primarily control costs, it must also develop a revenue
strategy which mitigates risk to taxpayers. The County's revenue strategy should not
include an increase in total revenues, rather it should rely less on revenue from real
property taxes, thus avoiding the future risk of possible, large property tax increases to
its residents and businesses.
It should be noted that recommendations contained in this report will result in
substantial reductions in operating costs. These reductions should be directly applied
to a county-wide reduction in the real property tax levy prior to determining the need for
any type of alternate revenue stream.
Responsibility for the sale of delinquent real property or any other county asset should
be centrally placed within county operations and out of the control of individual
legislators. Procedures for the sale or disposal of county assets should be developed
by the Strategic Planning Committee, in an effort to plan and maximize the financial
benefit to the County and offset the costs of government operations.
The Legislature should establish a level at which the fund balance should exist. This
level should take into account the criteria measured for municipal debt rating purposes,
particularly information on recent additions or losses of industrial or commercial entities,
employers and major taxpayers. The range and level of services and capacity to
provide such services is also documented by rating agencies. A predetermined level of
fund balance is a proactive step toward sound, long-range financial planning.
SECTION v.
OTHER ISSUES OF PUBLIC INTEREST
County residents and businesses are concerned about a number of issues which were
not fully researched or explored by the Task Force. Two issues in particular were of
specific interest to the public: 1) programs and services not provided by the County,
and 2) property assessment.
Consolidate Non-Coynty programs and Services
There are many n o n ~ C o u n t y organizations in the County which provide programs and
services to the population. In some cases, these services mirror what the County is
already providing and in many other cases these services are distinct and unique.
As a means to achieve efficiency and cost savings where appropriate, these
organizations should review their programs, services, and in some cases their entire
organization, in an effort to consolidate and adequately utilize limited resources. The
consolidation of the Fulton and Oswego United Way Agencies. into one single agency
for Oswego County should serve as a model for all organizations.
Areas of potential efficiencies would include school districts, various sewer and water
districts, chambers of commerce, hospitals and other care providers. Where possible,
similar services should be combined or coordinated to achieve the ultimate efficiency to
those who are served. Although services may be paid for on a contractual basis
outside of county expenditures, the ultimate costs are born by all taxpayers and
residents of Oswego County.
At a time when the County is moving away from rural and parochial interests and
moving toward county-wide interests, not-for-profit entities, non-government entities,
and other municipal entities should be researching the same possible efficiencies in an
effort to adequately utilize limited resources.
Standardize Real property Assessment
Under New York law, towns, cities and certain villages (collectively referred to as
"Assessing Units") perform the assessment function for all real property located within
their respective boundaries. Villages may perform the assessment function
independently or may opt to use Town Assessment rolls. School districts and counties
are required by law to use the assessment rolls created by Assessing Units.
Other Issues of Public Interest 55
New York law also permits Assessing Units to assess real property at less than full
market value, so long as the ratio of assessment to value is "uniform". This method of
assessing is sometimes referred to as fractional assessment.
One problem identified with fractional assessment is that inequities develop if all of the
assessments in a particular Assessing Unit are not comprehensively reviewed on a
relatively frequent basis. Some properties in an Assessing Unit may be increasing in
value when other properties may be decreasing in value. Historically, there is a
tendency by Assessing Units which use fractional assessments, to not perform a
periodic or comprehensive review, thus causing the development and growth of
inequities. This results in an unequal distribution of all taxes: County, town, school
district and village. It should be noted that even in Assessing Units where full value
assessment has been implemented, the same risk of developing inequities can occur if
there is no periodic, comprehensive update of assessments.
Several Assessing Units in Oswego County have implemented full value assessment,
while the balance continue to practice fractional assessment. Assessing Units
throughout the County should come together to develop a process for evaluating
assessment issues. While there are costs associated with evaluating assessment
issues County-wide, some financial resources may be available from New York State to
undertake this study.
56 Other l$Sues of Public Interest
SECTION VI.
APPENDICES
1. List of Goals 2000+ Task Force Members ........................................... 58
2. County-Wide Economic Development Efforts ............................ 59
3. Public Input Analysis ............. 60
4. Additional Figures .................................................................. 62
5. Methodologies ...................................................................... ; ................ 66
Appendices 57
1. List of Goals 2000+ Task Force Members
58
Rockne Bums, Tuscarora Construction Co., Inc.
Box 520, Pulaski, NY 13142
Brian Caswell, CPA, Caswell & Associates
436 Main Street, Phoenix, NY 13135
Roger Ehrler, CPA, Director of Corporate Tax, Long Island Lighting Company
175 East Old Country Road, Hicksville, New York 11801
Mark Gibbs, Vice President, Crouse Irving Memorial Hospital (Retired)
Box 46, Mapleview, New York 13107
Bernie Henderson, Vice President, Finance & Budget
SUNY Oswego, Oswego, NY 13126
Jack Morrison, Plant Manager, Alcan Rolled Products Company
P.O. Box 28, Oswego, NY 13126-0028
Curt Norpell, Plant Manager, Nestle Chocolate and Confections
555 South Fourth Street, Fulton, NY 13069
Stephen Parker, Nuclear Business Management, Niagara Mohawk Power Corp.
P.O. Box 63, Lake Road, Lycoming, New York 13093
Mike Pollock, President/CEO, Fulton Savings Bank
75 South First Street, Fulton, NY 13069
Connie Smith, President, Twin Mills Lumber Co., Inc.
1379 County Route 4, Box 185, Central Square, NY 13036
Paul Snyder, Chief Financial Officer, Oswego Hospital
110 West Sixth Street, Oswego, NY 13126
Millard Sullivan, Plant Manager, Dean Foods Vegetable Co.
607 Phillip Street, Fulton, NY 13069
Joanne Swenton, President, Swenton Tool & Die Co., Inc.
12 Jason Road, Phoenix, NY 13135
Gary Toth, President, Oswego County Labor CounCil
Box 707, Mexico, NY 13114
Joe Wiedenbeck, President, Oneida Lake Petroleum
Box 680, Mallory Road, Central Square, NY 13036
Appendices
2. County-Wide Economic Development Efforts
Within Oswego County there are many agencies, extension services, departments and
organizations that seek to advance growth and development. An overview of Oswego
County's economic development efforts include the following groups, which mayor may
not receive funding from the County of Oswego:
Central New York Regional Planning Board
Corne" Cooperative Extension of Oswego County
County of Oswego Industrial Development Agency
Empire State Development Corporation
Farmers Home Administration (FHA)
Fulton Community Development Agency
Metropolitan Development Association of Central New York
New York Power Authority
New York State Department of Economic Development
Niagara Mohawk Power Corporation
Operation Oswego County
Oswego Community Development Agency
Oswego County Chambers of Commerce (7)
Oswego County Department of Planning and Community Development
Oswego County Department of Promotion and Tourism
Pulaski Economic Development Task Force
Sithe Energies, Inc.
Small Business Administration
Operation Oswego County is widely recognized as the leader in the economic
development initiative. This not-for-profit arm of county government is established to
administer the financial support needed to develop the infrastructure and promote the
area to prospective industries and businesses. It owns and manages three industrial
parks in the County consisting of a total of 370 acres. The agency has five employees
and an annual operating budget of $400,000. It also manages annual funding of
$200,000 for the Economic Initiative which is used for marketing,
consultants, studies, and real estate needs.
It is clear that economic development in Oswego County is recognized as a priority and
that significant resources are being applied to advance private sector growth and
development. :
Appendices 59
3. public Input Analysis
public Interview Sessions
1. In your opinion, what are the most important issues impacting Oswego County over the next five years?
Economic Development/ Jobs
Welfare Dependency
Real Property Taxes
Structure/Size of County Government
Niagara Mohawk
53%
10%
10%
9%
8%
2. From your personal Experience, have you observed a duplication or waste of services in your town, city,
village or county govemments?
Highway
Public Safety
Planning/Zoning
Assessments/Collection
Social Services Fraud
3. a. Identify (5) things in the Oswego County community that you value and want to protect:
Industry/Jobs
Education
Water Quality
Public Safety
Rural Atmosphere
b. Identify (5) things in the Oswego County community that you think need to change:
Increase Job Opportunities
Increase Tax Base
RestructurelReduce County Government
Welfare Dependency
32%
27%
10%
9%
8%
29%
16%
15%
14%
13%
33%
26%
19%
8%
8%
4. Consider the current structure of the County of Oswego. In your opinion, what should the roles of the
following leaders be: (top three answers)
Legislator:
County Administrator:
Department Head:
Taxpayer Advocate
Set Policy at County Level
Lead Economic Development
Manage County Departments
No RolelEliminate Position
Accountable to Legislature
Department Performance
Control Costs of Department
Budget Planning
57%
20%
5%
27%
25%
15%
38%
27%
16%
5. Consider the current reality of the County of Oswego. In your opinion, what should the overall mission of
the County be?
60
Economic Development/Jobs
Provide Essential, Cost-Effective Services
Plan for County's Future
Manage Limited ResourceslEnvironment
Manage Public Information
38%
30%
11%
4%
3%
Appendices
County Newsletter Surveys
1. In your opinion, what are the three most important issues facing Oswego County in the next five years?
Economic Development/Jobs 44%
High Taxes 24%
Welfare Dependency 14%
Politics in Govemment 5%
Environmental Issues 2%
2. Are you willing to pay more to maintain the present level of programs and services being provided in
Oswego County? Yes 22%
~ ~ %
3. Are there existing programs or services currently being provided that you would recommend eliminating or
4.
significantly reducing? Social Services 54%
Public Transportation (Centro/OCO) 14%
~ ~ ~ ~
Nursing HomelHealth Services 3%
Highway 3%
Do you receive duplicate services from the County, Town, Village or City in which you live?
Highway
Public Safety
Youth Services
Utilities
40%
20%
10%
9%
7%
5. What altemate sources of revenue would you recommend to reduce the reliance on the property tax base?
Economic Development 36%
Fair Property Tax Assessments 33%
Sales Tax 8%
User Fees 5%
Legalize Gambling 4%
6. Is there a fiscal crisis in Oswego County? Yes 67%
Not YetIPending 19%
No 14%
7. Costs can be reduced by: RestructuringlReducing County Govemment 41%
Reducing Employees' Salaries & Benefits 22%
Increasing Employee Productivity 13%
Eliminating County Vehicles 7%
Privatizing County Services 5%
8. Changes needed in County management: Reduce Political Influences 30%
Develop Long-Range Plan 19%
Reduce County WorX Force 15%
Need Strong Leadership 13%
Welfare Dependency 9%
9. What is the role of your Legislator? Represent Constituents 53%
Conserve Tax Spending 13%
Honestyllntegrity in Govemment 7%
Set Policy 6%
10. How should County govemment proceed over the next five years?
Reduce SpendingILower Costs 22%
ReducelRestructure County Govemment 18%
Reduce Taxes 9%
Welfare Reform 8%
Appendices 61
4. Additional Figures
62
page
A-1: 1995 Revenues and Costs ....................................................................... 63
A-2: Oswego County 1995 Budget by Department. ........................... 64
A-3: Oswego County 1995 Personal Services by Department. ........... 65
Appendices
Figure A-1
QSWEGO COUNTY 1995 ANNUAL BUDGET
$ 143 MILLION
( MlLUONS OF DOLLARS )
Revenue
State ($2SM) 18%
Local ($31 M )
Federal ($15M) 11%
County Real Property Taxes ($7OM) 49%
Other E.lIp ( $44M) 31'"
Distribution "passed through" to Residents ($53M) 37"'"
Source: 1995 Annual Budget Report, County of Oswego
Appendices 63
64
FigureA-2
OSWEGO COUNTY 1995 BUDGET BY DEPARTMENT
( MILLIONS OF DOLLARS)
Department
t-I-L.acal-T"I __ ....:..R=8W1
T1
=::=--I'I-T-""-I--t-ol :=:,,=""1 _= . ::;:nII::;rI-T""-I-J1 I
1
Administration 0.2 0.2 0.4 0.1 1 0.5
2
Board of Elections 0.0 0.2 0.1 0.3
3
Budget (1) 0.0 0.1 21 2.2
4
Buildings & Grounds 0.0 1.0 1.5 25
5
Central Services 0.1 0.1 0.3 0.7 0.5 1.5
6
Clerk of the Legislature (2) 0.9 4.7 5.6 0.5 11.7 12.2
7
County Attorney (3) 0.0 0.2 3.4 3.6
8
County Clerk 1.1 0.1 1.2 0.9 0.2 1.1
9
District Attorney 0.3 0.1 0.4 0.6 0.4 0.1 1.1
10
Emergency Management 02 02 0.4 0.2 0.2 0.4
11
Employment & Training 0.0 0.0
12
Fire Control 0.0 0.5 0.1 0.6
13
Health 8.9 4.4 13.3 7.1 3.6 4.5 15.2
14
Office for the Aging 0.3 0.5 0.8 0.2 0.4 0.9 1.5
15
Personnel (4) 3.3 3.3 10.6 0.7 2.7 14.0
16
Planning & Community Development 0.2 0.2 0.4 0.1 0.1 0.6
17
Probation 0.1 0.6 0.7 1.4 02 1.6
18
Promotion & Tourism 0.1 0.1 0.1 0.5 0.6
19
Public Works 7.6 1.8 9.4 7.7 11.5 0.8 20.0
20
Purchasing 0.0 0.1 02 0.3
21
Real Property Tax 0.0 0.2 0.1 1 0.3
,
22
Sheriff's 0.4 0.3 0.7 4.8 1.1 0.1 6.0
23
Social Services 2.9 13.1 14.8 30.8 7.8 1.6 43.1 52.5
24
Treasurer (5) 5.2 5.2 0.3 3.6 3.9
25
Veterans 0.0 0.1 0.1
26
Youth Bureau 0.3 0.3 0.1 0.1 0.3 0.5
Total $31.3 S26.1 $15.3 $72.7 $45.8
$44.21
$53.1 S143.1

''''
""
51" 31"

Source: Data calculated from 1995 Annual Budget, County of Oswego
Net Costs 10 Os-sJO County Property Tax Payers
Notes: Costs Include (1) Capital Programs, $2.1M; (2) Legislative Accounts, $1UM; (3) inaurance & Insurance $l.OM;
(4) Health Self Insurance, $5.1M; Benefits, $S.1M; (5) Debt SeMces, $ 3.9.1
$0.3
$0.3
$2.2
$2.5
$1,4
$6.6
$3.6
($0.1
$0.7
$0.0
$0.0
$0.6
$1.9
$0.7
$10.7
SO,4
SO.9
$0.5
$10.6
SO.3
$0.3
S5.3
$21.7
(S1.3
$0.1
$0.2
$70."
4Hfj
Appendices
FlgureA-3
OSWEGO COUNTY 1995 PERSONAL SERVICES BUOGET BY OEPARTMENT
( MILLIONS OF DOLLARS)
Department PeRonal Services Number of Employees
T ~ Fmge Fill FIT ~ , I , PIT PIT
s. .. nos ~ Palin... Adj-IIII T,*I rn. T_ wpllB wloB
1
Adminiltnllion 0.3 0.1 0.0
SO."
6 6
2
Board of Elections 0.2 0.0 SO.2 10 24
3
Budget 0.1 0.0 SO. 1 3 2
4
Building. & Grounds 0.8 0.2 0.0 $1.0 36 1 2 13 12
5
Central Services 0.3 0.0 SO.3 9
6
Clerk of the Legislature 0.5 0.0 SO.5 39 1
7
County Attorney 0.1 0.11 0.0 SO.2 2 5
8
County Clerk 0.7 0.2 0.0 SO.9 34 11 5
9
District Attorney 0.3 0.3 0.0 SO 8 6 1
10
Emergency Management 0.2 0.0 SO.2 8 2
11
Employment & Training 1.7 0.2 -1.9 SO.O 64 1 4 2
12
Fire Control 0.4 0.1 0.0 SO.5 11 1 1 9
13
Health 5.2 0.1 1.0 0.8 $7.1 203 8 50 37
14
0tIice for the Aging 0.2 0.0 $0.2 8 3
15
Personnel (1) 0.4
1
10.2 $10.6 15 3 11
16
Planning & Community Development 0.3 0.1
SO."
11 1 1
17
Probation 1.4 0.0 $1.4 47 7 1
18
Promotion & Tourism 0.1 0.0 SO.1 4 1 3
19
Public Wortcs 5.8 1.3 0.5 0.1 $7.7 204 9 41 2
20
Purchallng 0.1
I
0.0 SO.1 3
21
Real Property Tax 0.2
!
0.0 $0.2 10 1
~
Sheritl's 4.4 0.2 0.2i 0.0 $4.8 142 1 2 39
23
Social Services 6.6 0.61 0.6 $7.8 2n 5 36 1
24
Treasurer 0.3
I
0.0 $0.3 11 1 2
25
Veterans 0.1
I
0.0 SO.1 4 1
26
Youth Bureau 0.1
!
0.0 $0.1 5 14 1
Total $30.8
!:.61 :.51
$9.9 $45.8 1,174 34 57 147 153
67" 22" 100% 75" ~
.. "
9% 10%
Source: Data calculated from 1995 Annual Budget lind information received from PeIsonnei Department, County of Oswego
Temporary, Seasonal and Part Time E/TlPIOvees elTective September, 1995
Notes: (1) Inctudes Health Self Insurance; SS.lM; Benefits, 55.1M
Appendices
Talal
12
M
5
84

40
7
10
15
10
71
22
218
11
29
13
55
8
256
3
11
184
319
14
5
20
1,565
100%
65
5. Methodologies
66
The following three approaches were used in completing this project:
A. Organizational participation (See page 67.)
(15) Full Task Force Meetings
(8) Editing Group Meetings
(2) Subcommittee Chair Meetings
(7) Status Presentations
(5) Public Sessions
B. Subcommittee Development
Structure and Management:
Programs and Services:
Financial Systems:
c. Information Gathering
Jack Morrison, Chairman
Curt Norpell
Mike Pollock
Millard Sullivan
Gary Toth
Brian Caswell, Chairman
Mark Gibbs
Steve Parker
Connie Smith
Joanne Swenton
Paul Snyder, Chairman
Rockne Burns
Roger Ehrler
Bernie Henderson
Joe Wiedenbeck
interviewed Legislators, department heads, union representatives, and
County residents
reviewed budgets, annual reports, financial reports, indirect cost
recovery projects, comprehensive plans
organizational charts and other pertinent documents from Oswego
County and a number of other jurisdictions
submitted (3) separate questionnaires to departments; reviewed
responses
conducted interviews with various departments
attended public sessions; participated in interviews
presented to Legislators and department heads, Oswego and Fulton
Chambers of Commerce, and local labor groups
reviewed responses to a questionnaire in the County Newsletter
Appendices
Organizational participation
Full Task Force Meetings Editing Group Meetings
April 12, 1995
May 10,1995
June 14, 1995
July 12, 1995
August 9, 1995
September 13, 1995
October 11, 1995
November 8, 1995
December 13, 1995
January 10, 1996
January 12, 1996
January 29, 1996
February 16, 1996
February 23, 1996
March 1, 1996
January 15, 1996
January 20, 1996
January 21, 1996
January 25, 1996
January 27, 1996
January 28, 1996
February 3, 1996
February 14, 1996
Subcommittee Chair Meetings
August 24, 1995
August 31,1995
Status Presentations
September 6, 1995
September 19, 1995
September 20,1995
November 1, 1995
January 10, 1996
January 17, 1996
March 12, 1996
Public Sessions
October 18, 1995
October 19, 1995
October 24, 1995
October 25, 1995
March 14, 1996
Appendices
Oswego County Legislature and Department Heads
Greater Oswego Chamber of Commerce
Greater Fulton Chamber of Commerce
Local Union Labor Groups [County-wide]
Local Union Labor Groups
West Monroe Town Hall
Snow Memorial Building, Pulaski
Fulton Municipal Building
S.U.N.Y. Oswego
Oswego County Legislature Meeting
67
Structure and Management Subcommittee
Schedule of Subcommittee Meetings
July 18, 1995
July 26, 1995
August 9, 1995
August 23, 1995
September 7, 1995
September 13, 1995
September 20,1995
September 27, 1995
October 11, 1995
Oswego
Fulton
Oswego
Fulton
Oswego
Oswego
Oswego
Oswego
Oswego
Schedule of Subcommittee Interviews
September 27, 1995
October 11, 1995
October 20, 1995
October 27, 1995
January 12, 1996
Oswego
Oswego
Oswego
Oswego
Oswego
Sybcommittee Qyestionnaires or Interviews
Administration
Board of Elections
Budget
Buildings & Grounds
Central Services
Clerk of the Legislature (none requested)
County Attorney (none requested)
County Clerk
District Attorney (none requested)
Emergency Management
Employment & Training*
Fire Control
Health*
October 16, 1995
October 20, 1995
October 27, 1995
November 20,1995
November 29,1995
December 5,1995
December 18, 1995
December 27, 1995
January 12, 1996
Sheriff
Oswego
Oswego
Oswego
Fulton
Fulton
Fulton
Fulton
Fulton
Oswego
Superintendent of Public Works
County Clerk
Superintendent 9f Buildings & Grounds
Commissioner of Human Services
County Administrator
Deputy County Administrator
Budget Director
Personnel Director
Director of Operation Oswego County
Office for the Aging
Personnel
Planning and Community Development
Probation*
Promotion & Tourism
Public Works
Purchasing
Real Property Tax*
Sheriffs
Social Services
Treasurer
Veterans
Youth Bureau
*Questionnaire Returned or Interview Completed
68 Appendices
Structure and Management Subcommittee --
Subcommittee Objective
The objective was to determine effectiveness of the organizational structure and
management systems in supporting the quality, service and cost goals of County
Government.
Subcommittee Scope
Interviews and questionnaires were completed with Legislators, Department Heads and
Union Representatives to determine the following items with respect to the County as
well as for each of its departments:
mission
quality, service and cost goals
measurement systems to assess goal achievement
organizational structure and reporting relationships
continuous improvement concepts utilized
perceived strengths, weakness and issues with current system
In addition, a broad review was conducted of systems in use to assess and
compensate individual performance and work activity.
Subcommittee Statement of Principles
Structure and management systems exist to ensure the mission of an enterprise is
achieved, that the needs of its customers, owners and employees are satisfied, and
that the results will continue to be improved upon.
The effectiveness of the County organizational structure and management systems
were reviewed and analyzed. Comparisons were made with other businesses or
governments based on the experience, knowledge and research of the subcommittee
members. Individual or departmental performance assessment was not requested,
conducted or provided.
Information concerning individual responses are considered confidential to the Goals
2000+ Task Force and its two County Advisors.
Appendices 69
Programs and Services Subcommittee
Schedule of Subcommittee Meetings
August 3, 1995
September 11, 1995
September 21, 1995
September 26, 1995
October 4, 1995
October 11, 1995
October 19, 1995
October 26, 1995
October 30, 1995
November 2, 1995
November 21, 1995
Fulton
Oswego
Oswego
Oswego
Oswego
Oswego
Oswego
Oswego
Oswego
Oswego
Oswego
Schedyle of Subcommittee Interviews
September 26,1995
October 4, 1995
October 19, 1995
October 30, 1995
November 2,1995
Oswego
Oswego
Oswego
Oswego
Oswego
Sheriff
Deputy Superintendent of ERF
Superintendent of Public Works
Superintendent of Buildin.gs & Grounds
SYbcommittee Departmental Questionnaires
Administration
Board of Elections
Budget
Buildings and Grounds
Central Services
Clerk of the Legislature
County Attorney
County Clerk
District Attorney
Emergency Management
Employment & Training
Fire Control*
Health
* Questionnaire Returned
70
Office for the Aging
Personnel
Planning & Community Development*
Probation*
Promotion & Tourism
Public Works*
Purchasing
Real Property Tax*
Sheriff*"
Social Services
Treasurer
Veterans*
Youth Bureau
Appendices
Programs and Services Subcommittee
Subcommittee Objective
The objective was to conduct a broad assessment of the existing services and level of
services and compare to the perceived County Mission.
Subcommittee Scope
review all programs and services provided by the County in order to determine
compliance with implied and understood mission of the County
review each department use of cost comparison and benchmarking
consider modifications and possible consolidations of the current programs and
services, as well as the possibility of privatization, outsourcing, and bid-for-services
mandated services and the particular level of service provided will be considered
review of the possible overlap of services
review alternate sources of revenue
Subcommittee Statement of Principles
The subcommittee investigated strengths and weaknesses of the programs and
services provided, not the individuals. This is a fundamental principle of operational
auditing as well as the process of continuously improving programs and services.
The subcommittee reviewed each department with particular emphasis on those
departments which spend the largest amount of county dollars. Recommendations of
the subcommittee are based on the research conducted which included interviews of
management, staff and citizens as well as data, questionnaires and feedback from
public sessions. Conclusions were not reached using anecdotal information.
Appendices
71
I
,
74
Appendices

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