By RICK MILLER
Olean Star
The Olean Common Council will meet in a special session Tuesday night to try to pass Mayor Amy B. Sherburne’s proposed $21.3 million budget for 2026-27.
Last Tuesday, the council refused to support the mayor’s budget due to its 8.85% property tax hike — a $1.63 hike to $19.38 per $1,000 assessed value.
After last week’s budget meeting, the mayor and council agreed to delay the budget vote until Tuesday (April 21), allowing time to make additional adjustments. The city charter calls for the budget to be adopted by April 15.
The council’s Finance Committee is scheduled to meet at 6 p.m. Tuesday to pass the mayor’s freshman budget. The council will meet in a special session following the Finance Committee vote on the budget and proposed sewer and water rate hikes.
There had already been adjustments to the budget, which originally came in at $23.2 million with a tax rate increase of 18.69%. With $5.2 million for sewers and $4.7 million for water, the total budget is $32.3 million. There are proposed increases in the city sewer and water rates.
The initial proposed tax levy — or amount to be raised by property taxes — was just over $10 million. That has been reduced to around $9.2 million.
The city’s website shows the budget with a 9.15% rate hike.
In a statement to the Olean Star on Sunday, the mayor said is hopeful she and the council can “work through any remaining questions together” at the work session. “I’m open to discussing ideas and feedback as part of that conversation.”
Sherburn said, “At the same time, this budget has been built around the core services required to operate our city effectively. Many of the largest cost drivers, such as contractual obligations and employee health insurance, are not discretionary.”
Most city employees will receive a 3% increase in the 2026-27 budget. Police and fire contracts are being negotiated this year.
The mayor said, “This budget proposal of 8.85% reflects current conditions. Rising costs are affecting every area, and those pressures are reflected in the numbers before us. The goal has been to present a responsible and realistic budget based on what we know today.
“As we near the end of the current fiscal year, it’s also clear that last year’s budget did not fully absorb increases in areas like utilities and health insurance. Some adjustments made during that process last year have contributed to the challenges we’re now managing.
“I look forward to a responsible conclusion for this budget by the Council that supports both our immediate needs and long-term stability for the City of Olean taxpayers,” Sherburne said.
Last week, Council President Vernon Robinson Jr., I-Ward 6, said the council thought the 8.85% increase was still too much — even though it was down by half from the original tax rate proposed by the mayor.
He said that without new revenue, he might have proposed reductions in the work force to bring down the tax rate. Robinson said a tax hike of 6% or less would be better for city residents.
The budget eliminates funding for the sewer and water superintendent and budgeted for a new civil engineer. The council first voted to restore funding for the sewer and water superintendent, which the mayor vetoed. The council voted again last week, but failed to restore the funding.
The council urged the mayor to reconsider sewer and water rate increases — particularly with a $3.3 million fund balance in the Sewer Department.
Finance Committee Chairwoman Sonya McCall, D-Ward 4, said last week the council was not prepared to support a tax rate increase of 8.85%.
For Tuesday’s regular meeting at 6 p.m. in the council chambers, new water and sewer rates are being proposed by sponsors Robinsons and McCall.
The new residential water rate is proposed to be .011776 dollars per gallon and the new sewer rate is proposed to be .01084 dollars per gallon. There is a 1,600 gallon minimum.
The commercial rates are proposed at .011776 dollars per gallon for water and .01138 dollars per gallon for sewer. There is a 2,600 gallon minimum charge.
The proposed industrial rates are .010599 dollars per gallon for water up to 250,000 gallons, .010010 dollars for the next 250,000 gallons and .00942 for usage above that. Proposed sewer charges are .00888 dollars per gallon.
