By RICK MILLER
Olean Star
After a marathon Finance Committee meeting Tuesday night, the Olean Common Council voted unanimously to approve an amended 2026-27 city budget with a 5.75% tax rate increase and small water and sewer rate hikes.
After cuts, the combined budget and sewer and water funds total $31,591,953 million, down from more than $33 million. The new tax rate is $18.77 per $1,000 assessed value.
A 1.08% increase in the sewer rate and 0.27% water rate hike were also approved unanimously.
The Finance Committee reviewed budget cuts proposed by committee chairwoman Sonya McCall, D-Ward 4.
The council had communicated by email about proposed budget cuts over the past week. McCall and Council President Vernon Robinson Jr., I-Ward 6 had apparently met with Mayor Amy B. Sherburne over the proposed cuts.
The city budget, including separate water and sewer funds, along with sewer and water rate hikes, had been on the April 14 agenda for passage, but aldermen balked at the 8.85% tax rate hike.
Under the city charter, the deadline to pass the annual city budget is April 15. The next fiscal year starts June 1.
The mayor’s initial budget called for an 18.69% increase, plus a 4% water rate increase and 6% hike in the sewer rate.
The proposed $3.31 per $1,000 tax rate increase would have pushed the rate to $21.06 per $1,000 assessed value.
Tuesday night, the council agreed to $239,856 in budget cuts hashed out in the Finance Committee and agreed to limit the sewer rate hike to 1.08% and the water rate increase to 0.27%. Proposed sewer and water rate increases were cut by reducing capital outlays.
The council is also looking forward to resolving the longstanding impasse between the city and Village of Allegany over wastewater treatment fees, which are expected to boost revenues.
The Finance Committee restored $123,000 to the Office of Community Development. Initially, some of the revenue from the city’s bed tax was budgeted for operation of the department. The council had agreed those bed tax revenues would go toward tourism promotion and the city’s economic development efforts. In the first year, the bed tax has raised $214,000.
Community Development Director Keri Kerper expressed some concern Tuesday that the projects she proposed were not included in the budget. McCall assured her that the projects she submitted would be the basis for spending in the coming year.
The council did not allocate any of the $520,000 increase in state Aid and Incentives to Municipalities (AIM) funding. The funds are likely to be directed to one-time projects or purchases such as surface treating of city streets and purchase of Public Works vehicles.
After amendments to the budget, the new tax levy, or amount to be raised by property tax was $9,069,299.
There was some polite clapping as the 7-0 vote on the budget was announced by City Clerk Frank Caputo.
The reason was because Alderman David Anastasia, D-Ward 7, had voted in favor of the budget and water and sewer rate increases. Anastasia joined in good-naturedly and smiled as he clapped.
Anastasia has generally voted against budgets in his 17 years on the council, citing the tax rate is too high.
