By RICK MILLER
Olean Star
The Olean Common Council’s line-by-line review of the proposed $23.2 million budget for 2026-27 has resulted in cuts and revisions that have pared a tentative 18.69% tax hike by more than half.
Finance Committee Chairwoman Sonya McCall said the tax hike is currently 9% after a preliminary review by the council of Mayor Amy B. Sherburne’s proposed budget.
Separate budgets for the Water Division and the Sewer Division of the Public Works Department have been reviewed. They are supported by water and sewer users.
The proposed Water Fund is $4.5 million and the Sewer Fund is $5.2 million. The mayor’s proposed budget has an 11% sewer rate increase.
Departmental revenues will be reviewed by the Finance Committee on Thursday, McCall said. She’s hopeful that the council and the mayor can find a way to reduce that.
“We’re still working on the tax rate,” McCall said.
No formal budget meetings are scheduled for next week, McCall said. She will prepare a list of budget issues and concerns for the mayor to consider.
One of those issues will likely be restoring funds for a director’s position in the sewer and water departments. Sherburne’s budget cut funds for the sewer and water directors post.
Four aldermen spoke out on the water and sewer directors post before the general meeting’s public comment period began. Sherburne’s budget would leave Public Works Director James Sprague running the sewer and water divisions as well as the rest of his DPW responsibilities.
Alderman John Crawford, D-Ward 5, said he didn’t question Sprague’s capabilities, but that asking one individual to do three jobs — Public Works, water and sewer director — “is unrealistic and not sustainable.” He cited the upcoming West State Street reconstruction as a project that will demand a lot of the DPW director’s time.
Crawford said he did not support the removal of the local water and sewer superintendent and based on numerous letters and messages to aldermen, “I believe many of our residents feel the same way.”
Ward 2 Alderman Robert Keary said besides growing operational and regulatory demands, the city has a DEC consent order to protect the Allegheny River, a strong relationship with the Seneca Nation to maintain and the ongoing impasse with the Village of Allegany over sewer rates.
“I feel we need to have that position,” said Alderwoman Jennifer Forney, R-Ward 3. She cited lead pipe replacement, water wells that need repairs and water meters to be replaced.
Alderman David Anastasia went further, offering a resolution prior to the regular meeting to restore the position to the budget. He later amended his motion to restore funding for the sewer and water superintendent positions, minus a stipend the council had previously implemented.
City Attorney Michael Morgan said the issue could not be addressed at that time.
McCall responded that the issue could be brought up at Thursday’s Finance Committee meeting.
The Finance Committee’s goal is to finish on Thursday, McCall said.
Crawford noted that the city’s health insurance costs were going up by $452,000 in the next fiscal year. It reflects a 4% increase plus new employees for a total of $3.1 million.
McCall said the Finance Committee should complete its budget review on Thursday and would issue a letter of issues and concerns to the mayor the following week.
The proposed budget with any revisions the mayor and council agree to would be voted on April 14.
