By RICK MILLER
Olean Star
Olean aldermen balked at Mayor Amy B. Sherburne’s proposed 2026-27 city budget Tuesday and Council President Vernon Robinson Jr., was unable to obtain sponsors.
The budget, whittled down to $21.3 million from its initial filing of $23.2 million, now carries a tax rate increase of 8.85%. That is down by more than half of the original increase of 18.69%.
The tax levy in the original budget was a little over $10 million. In its latest form, the budget carries a tax levy of $9.2 million.
The Common Council will try again next Tuesday, with a special meeting at 5:30 p.m. to consider the mayor’s newest budget proposal.
The latest budget figures on the city’s website shows a 9.18% tax rate increase or $1.63 per $1,000 assessed value to $19.38 per $1,000. The initial budget called for a $3.31 increase in the tax rate to $21.06 per $1,000.
Separate sewer and water funds of $5.2 million and $4.7 million are included in the total budget, but are paid by users. The mayor’s proposed 4% increase in water rates and 6% increase in sewer rates is also being challenged by aldermen.
After a public hearing at which no one spoke, all aldermen, with the exception of David Anastasia, D-Ward 7, voted to override the state’s 2% tax cap.
The city charter does not specify a deadline to pass the budget, but the council had self-imposed April 16 as a date for passage. The budget was submitted several days after its deadline of Feb. 15.
It was also disclosed Tuesday that Sherburne vetoed a “I think we have ideas on how to get council resolution directing her to restore funding for the sewer and water superintendent.
Finance Committee Chairwoman Sonya McCall, D-Ward 4, said this was the most challenging budget she’s faced since being elected to the council. “I think we have ideas on how to get us below 8.85%, but I think I( speak for the council when I say we are not prepared to pass the budget at 8.85%
Two weeks ago, the council voted 4-3 to restore the funding. Voting again on the measure Tuesday, the council failed to restore the funding on a 4-3 vote. Alderman Joseph Kerry, R-Ward 2, who previously voted yes, changed his vote to no.
Aldermen voted against a proposed 4% increase in the water fund rates and 6% in the sewer fund rates. The sewer fund currently has a $3.3 million fund balance.
A resolution to increase ambulance rates was approved unanimously, with new rates of $2,500 for Advanced Life Support 2 and $2,000 for ALS 1. Basic life support will now cost $1,750.
In a budget-related revenue matter Alderman Lawrence Bennion Jr., R-Ward 1, said he did not favor using an additional $500,000 in state Aid and Incentives to Municipalities to reduce the tax rate because it appears to be a one-time increase. Use the extra money for infrastructure, like Front Street, he said.
Bennion also insisted that the issue of fees for the Village of Allegany to dispose of sewage needs to be resolved. The village has challenged in court the fees set by the city. He said the village was charging rates higher than what the city has imposed. “They turn around and make a profit off it.” Getting those revenues would go a long way toward meeting the city’s fiscal challenges.
Anastasia said he couldn’t support a tax increase of 8.85%. He suggested using some of the additional AIM money from the state to reduce the tax rate.
Kerry said he couldn’t support the budget. “We haven’t done all we can to cut it,” he added.
Council President Vernon Robinson Jr., I-Ward 6, said the writing’s on the wall and that without sponsors for the budget, it was stalled. The council will need time to discuss it, he said.
Sherburne looked disappointed after the meeting, but appeared ready to look for additional cuts and revenues — some of which were suggested earlier by council members.
The mayor said Thursday was little time to come up with additional cuts and suggested the budget vote be delayed until next Tuesday.
Robinson told the Olean Star he is looking for additional cuts. “I would have cut personnel,” he said, noting there is only one new position in the budget, a civil engineer. He did not say where he would have made cuts.
“Eight percent is a lot,” said Robinson, adding 6% or lower would be better for residents.
The council has an informal agreement of a 15% contingency fund, but may look to lower it slightly to lessen the tax rate increase, Robinson indicated.
Another issue raised on Tuesday was the cost of paying employees who do not take health insurance benefits between $10,000 and $15,000 a year. That total is more than $600,000. Health insurance rates also went up $450,000 this year.
Robinson said that is a contractual obligation the city should look to change in negotiations for new police and fire contracts this year.
