For Information Contact:

Joseph J. Timpano
 798-5780

Timpano, Griffo Announce
County Finished 2003 With Surplus

Oneida County Comptroller Joseph J. Timpano and Oneida County Executive Joseph A. Griffo today announced that Oneida County closed out fiscal 2003 with an operating surplus of $200,000 in its general fund, primarily due to cost savings from holding open employee position vacancies and unanticipated revenue. This represents a turnaround of $1.3 million from the 2002 operating deficit of $1.1 million. 

“These figures show that when we use all possible revenue as a tool to shore up our general fund, and resist the urge to spend, we can improve county finances even in this tough fiscal climate,” Griffo said. “ Comptroller Timpano, Budget Director Tom Keeler and Finance Commissioner Tony Carvelli deserve credit for their efforts to manage county finances.”

 Timpano said that due to the operating surplus, the County’s general fund balance at December 31, 2003 increased to $16.9 million, with all but $2.7 million unrestricted and unreserved. “That figure is vital to our fiscal future and the maintenance of our good credit standing,” Timpano said. “All counties live in a tough fiscal climate with cost increases in Medicaid, health insurance and pension system payments, but the key to our fiscal health is a fund balance that ensures sound operational stability.”

            Timpano said the figures reflect large increases in retirement, Medicaid, and health insurance costs during 2003, and released the following chart:

        Griffo noted that pressures from these three areas are continuing in 2004 and are likely to do so in 2005.

“As every employer knows, health insurance costs continue to rise. Our Medicaid costs will be affected by those cost increases, plus new enrollments in Medicaid programs such as Family Health Plus,” Griffo said. “The retirement system payments, which went sky-high as a result of the Wall Street meltdown, will require substantial General Fund money. All of these pressures will require even greater actions to increase efficiency on our part so that we can continue to operate with a surplus and use every dollar possible to minimize any tax rate increase. The restrictive hiring we adopted last year has paid off, but we will need to stretch money even further as we deal with new pressures through the end of this year and into 2005.”

Griffo noted that his initiative to reduce spending is producing small savings across the board. “Last year I made a commitment to reduce our cell phone costs,” Griffo said. “In 2004, we reduced cell phone usage to a projected $134,000, and have since been able to reduce that even further to an approximate annual cost of $50,000. Tightening up operations to produce many small cost reductions is the key to our achievements.”

Timpano listed major items that helped achieve the 2003 surplus:

Cost Savings From Not Filling Vacancies: $1,500,000            

Escrow Account Restructuring: $1,224,355

Additional State Aid for Medicaid:  $2,409,300

Additional Federal Aid for Medicaid: $1,858,077

Bond Proceeds: $1,300,000

Sales Tax: Sales tax revenue rose from $54,509,737 in 2002 to $57,029,332 in  
                                 2003, for an increase of $2,519,595, or 4.62 percent.

Property Tax Collections: Increased property tax collections brought in $1,450,202
                                                             more than projections.

            Timpano also noted that general fund total expenses and total revenue increased as follows:

Expenses

2002                        2003                    Difference      %                   

$229,236,717       $249,672,196      $20,435,479     8.91%

Revenue

 2002                     2003                    Difference        %

$228,034,191      $249,892,840     $21,858,649      9.58% 

“The closeout report shows that we are being fiscally responsible and holding down spending in every place where the county has control,” Timpano said. “We are staying on top of our spending, and operating efficiently. At a time when counties are being pushed to their fiscal limits, our surplus and our fund balance are signs that even in this difficult economy and amid all these cost increase beyond our control, we are providing the people of Oneida County with sound fiscal management.”