Olean facing $1 million shortfall in sales tax revenue for 2024-25, enacts spending freeze

By RICK MILLER

Olean Star

OLEAN — Olean Mayor Bill Aiello last week sent a letter to city department heads to notify them of a spending freeze due to a projected shortfall in sales tax revenue.

The letter, dated Jan. 24, came following a meeting a day earlier with City Auditor Lens Martial attended by the mayor, Council President John Crawford and Finance Committee Chairman Sonya McCall to discuss sales tax revenue.

“Lens has projected a $1 million shortfall in sales tax revenue in the current budget,” Aiello wrote to department heads.

The city’s 2024-25 budget of $28.2 million was approved in April. The new fiscal year starts June 1.

In response to the looming revenue shortfall, Aiello ordered the following:

1. A spending freeze is in effect. All spending, including credit card spending will have to be approved by the mayor. 
2.  A hiring freeze is in effect.
3.  A training freeze is in effect. Only certification training may be approved after consultation with the mayor.
4.  Only contractual obligations will be approved after consultation with the mayor.
5.  There will be no unnecessary overtime. If overtime is questionable, consult with the mayor.”

“I know this is not an ideal situation, but it is necessary at this time,” Aiello wrote in the letter to department heads.

The mayor was unavailable to discuss the letter late Friday. The Olean Star was unable to reach Aldermen Crawford and McCall on Friday.

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