By RICK MILLER
Olean Star
In her first proposed budget, Olean Mayor Amy B. Sherburne is seeking a $23.2 million general fund, a $3.4 million increase over the $19.7 million budget for 2025-2026.
It would require a $1.5 million in the tax levy to just over $10 million and increase the property tax rate by $3.31 to $21.06 per $1,000, an increase of 18.69%.
The Water Fund would increase about $100,000 to $4.5 million and the Sewer Fund would increase about $500,000 to $5.2 million. Water and sewer rates pay the costs of the Water and Sewer departments.
Having just received the proposed budget on Thursday, council members contacted by the Olean Star did not immediately respond to messages seeking comment on the budget.
In response to a question from the Olean Star, Sherburne agreed it was a difficult budget for a number of reasons.
The transition did not go as smooth as Sherburne had hoped. She succeeded three-term Mayor Bill Aiello in January.
“Entering into a fully entrenched budget without knowledge of the day to day operations was a learn-as-you-go process,” the mayor said in a letter to the Common Council accompanying the proposed budget. “Meeting with department heads, listening to their needs, navigating line items and making financial decisions started on day one.”
Sherburne also touched on her plan for potential new revenue streams including voluntary payments from not-for-profit property owners including churches, a fair sewer rate agreement with the Village of Allegany and a review of compensation for ambulance service with neighboring towns. This demonstrates the capacity to increase revenue to offset the increase to city taxpayers, she said.
The mayor said, “The cornerstone of the City of Olean budget for the years 2026/2027 will be built on truth and sheer determination to set our course for financial success.”
Sherburne cited an audit by R.A. Mercer & Co., that reported “significant deficiencies in internal controls over compliance with state programs; failure in routine reconciliation of asset and liability accounts balances; a significant misstatement in the general ledger for extended periods of time; a lack of communication of the previous administration and the Common Council in regards to NYS Supreme Court rulings to pay disputed invoices; cash balances of the bank reconciliations for the General, Water, Sewer and Capital did not agree with the general ledger of the city, including transactions that were not correctly recorded during the current year.”
Asked to comment on the tax increase included in Sherburne’s first proposed budget, Council President Vernon Robinson Jr., I-Ward 6, said Thursday evening he was “not sticker shocked” by the proposed tax increase.
“The fact is you can’t have a 0% to 2% tax increase over a decade and not keep pace with inflation.” The RA Mercer report “shows that a major change in acconting practices were warranted,” Robinson said. “We can keep kicking this can down the road, but the fact is, unless you cut employees or city resources, an increase in the inevitable.”
The council will begin budget meetings with the mayor and department heads next Thursday. They are facing an April 15 deadline to approve a budget. The new fiscal year begins June 1.
Sherburne noted that she included funding for new contracts with the patrol and Command units of the Olean Police Department, Fire Department and CSEA. All have contracts that expire this year and need to be renewed.
Some of the budget increases include public safety, a $1.1 million or 15% increase, debt service up $600,000 or 47%, employee benefits up $1 million or 20%, culture and recreation up $225,000 or 18% and general government support up $192,000 or 7%.
The City Charter calls for the proposed budget to be introduced by the mayor by Feb. 15. The council will meet Thursday evenings to review the budget and suggest any changes.
