By RICK MILER
Olean Star
The Olean Common Council held its first meeting Thursday on the proposed $23.2 million city budget for 2026-27 and its 18.69% tax levy increase.
After opening remarks by Finance Committee Chairwoman Sonya McCall, D-Ward 4, Alderman Lawrence Bennion Jr., R-Ward 1, said he was “unwilling to support an increase of this magnitude. However,” he added, “I look forward to working with the new mayor’s budgetary process.”
Bennion warned that the apparent $780,000 increase in state aid to the city should not be applied to reducing the tax levy if it is a one-time payment. He suggested directing it toward paving city streets.
“The real financial crisis in Olean is not in the city’s operational budget,” Bennion said. “It’s with the household budgets of our residents, families struggling with rising utility bills, high grocery costs” and other expenses.
Last year, the city received $269,000 in Aid and Incentives to Municipalities and that amount was used for AIM revenue in the 2026-27 budget. After the budget was filed, the city got a letter from Gov. Kathy Hochul that the AIM was being increased by $780,000.
Some aldermen saw that increase as one way to begin reducing the tax levy increase proposed in Mayor Amy B. Sherburne’s 20267-27 budget. If there were no changes, the tax rate would increase $3.31 to $21.06 per $1,000 assessed value.
Separate from the budget are the user-supported sewer and water funds. The Water Fund is $4.5 million and the Sewer Fund is $5.2 million. The mayor is looking for an 11% sewer rate hike. The general, water and sewer funds total $33 million.
After speaking to an Albany source, Alderman David Anastasia, D-Ward 7, questioned whether the $780,000 in AIM funds were in addition to the current $269,000 annual award. “You better check that out.” He also said his source indicated the city’s Consolidated Highway Improvement Program or CHIPs funding would be $750,000.
“I don’t think the City of Olean is in a financial crisis,” Anastasia said, noting the city has a $2.5 million fund balance in the general fund. “The taxpayers can’t afford” the 18.69% tax levy increase.
Anastasia said he agreed with Bennion that the council should try to cut the tax increase to around 4%.
“I look forward to working with the council,” Sherburne said. She said she did not want to see city residents burdened with a tax hike of 18.69% and predicted the budget would be passed with a much lower tax rate than was proposed.
With the help of the new software the city purchased for budgeting, Sherburne said, “We are moving in the right direction of knowing what our finances are.”
Auditor Lens Martial used the software to project pages onto a large screen on the wall where aldermen could follow.
The first department head to make a presentation was Public Works Director James Sprague. His proposed budget includes a new position of junior engineer at a cost of around $53,000 plus fringe benefits.
Sprague said the new position would mean more city infrastructure work like the sidewalk program, will get done. It could also cut overtime. The council voted to reduce the overtime budget from $10,000 to $5,000.
McCall said the council would continue meeting each Tuesday and Thursday until they were done with the budget review.
The council is facing an April 15 deadline to pass the 2026-27 budget that takes effect June 1.
