By RICK MILLER
Olean Star
OLEAN — The Olean Common Council voted Tuesday to amend the 2025-26 city budget to reflect a miscalculation of the tax rate increase.
The $19.8 million city budget aldermen approved April 8 by a 5-2 margin carried a 6.2% increase in the 2025-26 city tax rate over the current budget.
City Assessor Greg Piechota reported to the common council last week that there was an error in the amount of the increase in the 2025-26 tax rate.
The amount of the tax levy is unchanged, but the tax bills actually reflect a 7.13% increase, not 6.2% as stated because the 2025-26 tax rate was compared to an incorrect 2024-25 tax rate.
Aldermen voted 6-0 to amend the budget by cutting about $74,700 in expenses to get to a 6.2% increase. The 2025-26 tax rate is $17.75 per $1,000 of assessed value not $17.90. That will bring the tax levy down to a 6.2% increase from the 2024-25 levy.
Last week Finance Committee Chairwoman Sonya McCall, D-Ward 4, said she doubted any of the aldermen would have voted to approve the budget if they had known it carried a 7.13% tax hike instead of a 6.2% increase.
Council President John Crawford, D-Ward 5, indicated he was surprised by Alderman David Anastasia’s vote on amending the budget, since he initially voted against it.
“You just voted for this?” Crawford asked, taken aback. “I’m just appreciate the moment.”
“I did,” Anasrtasia replied. “I’m trying to change your opinion. I’m glad this mistake was found and corrected.” After being told it was a tight budget that couldn’t be cut any further, the problem was corrected in less than a week, he added. “It proves there is fat in the budget.”
Mayor Bill Aiello said the $74,711 in cuts were not without pain. The city is looking to save $30,000 in debt service charges, $11,000 from lower insurance premiums and $20,711 from the Public Works Department including $12,711 for road striping.
It will cost $5,600 to reissue the amended tax bills, which will be lower, and should be going out in Friday’s mail, the mayor said.
Anastasia asked whether the refunds to those who had already paid their tax bill could be mailed at the same time.
Aiello replied that it would “drastically slow the process.” At this time, it’s not clear when the refund checks would be mailed, but it should not take a long time. There will be no interest for amended tax bills paid in June or July, the mayor explained.
McCall asked how this could be prevented in the future.
Crawford said city officials are looking to purchase new software to integrate all departments’ budgets.
Auditor Lens Martial, who was not at last week’s meeting when the tax rate snafu was disclosed, spoke to the council, saying, “I take full responsibility” for the mistake. “I should have looked for it.”
IN OTHER ACTION, THE COUNCIL:
- Approved $10,000 to send two new police recruits to the Police Academy. If the new officers do not stay for five years, they must repay a prorated portion of the cost.
- Approved establishing a $240,000 capital fund with a state reimbursement check for the OATS Bus. The fund will be used to reimburse Cattaraugus County for a loan it advanced the city last year to keep the city buses running. The OATS bus is now being administered by Allegany County.
- Accepted a $283,650 state grant for design work for a new rotating beacon at the Cattaraugus County Olean Airport in Ischua and for new lighting. The city’s share of the design work is $14,182, which will be paid for by the county.
- Was notified of the resignation of Jason Panus, R-Ward 2. Crawford said he plans to meet with the mayor to discuss filling the seat on an interim basis.
- Set aside $1,600 to fix an existing water drainage problem on Elm Street.
- Discussed listing daily efforts to determine the extent of the problem and correct what is causing sewage overflows into the Allegheny River on the city website.
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All Rights Reserved. Star News LLC. Eric M. Firkel.
