Olean Star

It looks like the 2026-27 Olean city budget the Common Council is poised to pass on Tuesday is almost $2 million less that the $23.2 million budget proposed by Mayor Amy Sherburne.

After changes initiated during the line-by-line review of the proposed budget, the mayor’s proposed 18.69% tax rate hike has been whittled in half. The proposed budget stands at $21.3 million.

The proposed budget on the city website now lists the proposed tax hike of 9.18%. The resulting $1.63 increase would increase the city tax rate to $19.38 per $1,000 assessed value.

The mayor’s initial budget carried a tax levy — or amount to be raised by property taxes — of just over $10 million. That was a $1.5 million increase. The tax levy has now been lowered to about $9.2 million. 

With a $4.7 million water fund and a $5.2 million sewer fund paid by user fees, the proposed budget now totals $33.3 million, down almost $1 million from the initial total of more than $33 million. The water fund has been increased by $200,000 during the council’s budget review.

It’s still unclear what the council plans to do with an increase in the state’s Aid and Incentives to Municipalities (AIM) aid to $780,000 from $260,000. They decided not to use the extra funding to reduce the tax rate because it may be a one-time increase and revert to $260,000 next year. It may, however, be used to pave additional streets.

The mayor did not return calls seeking comment on the budget last week.

Council Finance Committee Chairwoman Sonya McCall, D-Ward 4, said Friday she was looking forward to seeing the mayor’s budget changes.

“She and the department heads have been working all week to bring down the tax rate,” McCall told the Olean Star on Friday.

The Finance Committee chairwoman said the tax rate has been lowered dramatically. “It’s less than half of what it was when we started and I think we can get it below 9%.”

McCall said one good thing about the proposed budget is that “it is a true reflection of costs.”

There were many increases facing the budget this year, McCall noted. Contracts called for a 3% increase, there is a $450,000 increase in health insurance, not including over $600,000 for insurance buyouts.

The city came up short about $100,000 in revenue from  proposed parking fees that were never imposed last year. That plan is dead and there will be no new widespread parking fees this year.

The first item on Tuesday night’s council agenda is a vote on a resolution to override the state’s 2% tax cap.

The budget is due to be passed Tuesday night. The city’s new fiscal year starts June 1.

Olean Star

The Olean Common Council dealt a blow to Mayor Amy B. Sherburne’s plan to hire a consulting auditor during a special meeting Tuesday.

The mayor had asked the council to hire Compass Group of WNY, founded 20 years ago by a former city auditor Gregg Procton, to finish work on the 2026-27 city budget and serve as a bridge until the city can hire a new auditor.

None of the six aldermen in attendance would agree to sponsor the resolution. Absent was Ward 3 Alderwoman Jennifer Forney. 

The resolution called for Compass Group to be paid $200 an hour for up to 20 hours a week with a $40,000 cap. The original proposed contract was for up to 30 hours a week.

The Olean Star incorrectly stated on Tuesday that the Compass Group was a national company based in Minneapolis. The Compass Group in the resolution is based in Portville. Procton’s name was not mentioned during the special meeting

The mayor said at the beginning of the special meeting that “recent audits have highlighted serious concerns” in auditing procedures.

City Auditor Lens Martial was seated in the council chambers throughout the meeting. He was present for the Finance Committee meeting on the budget that followed. 

With the city budget being finalized in less than two weeks, the mayor said “moving forward without addressing these financial inconsistencies would set up any new auditor for failure.”

A second resolution on the agenda for the special meeting directed the mayor to post the auditor’s post at a salary of between $95,000 and $120,000. 

City Attorney Michael Morgan suggested that by not specifying a certified public accountant, the city would keep its hiring options open in case someone with experience as a municipal auditor, but not a CPA, expressed interest. 

Morgan also explained the auditing job was not subject to bidding because it was a professional service.

Alderman David Anastasia, D-Ward 7, questioned whether the special meeting had been properly advertised. When he was assured the meeting was legal, he said the city should not be hiring a consulting auditor for $200 an hour. “I’m voting no.”

Alderman John Crawford, D-Ward 5, noted the council had been talking about this for a couple of weeks, but this was the first time it talked about publicly. Prior discussions were held during executive sessions to discuss personnel.

“The cost is what it is,” Sheburne said, noting the person had worked for the city in the past and was knowledgeable about the auditor’s office. “His time will be well-spent.”

The mayor said she believed a new auditor could be hired by the time the $40,000 could be expended. At $4,000 a week, the funding would last for 10 weeks.

“We have been keenly aware of the (auditing) issues,” said Finance Committee Chairwoman Sonya McCall, D-Ward 4.

Sherburne pushed for the auditing consultant, saying, “We can’t expect to be looking for an auditor to take over the duties with the practices we have in place. “This person actually was employed at the City of Olean and has come in over the course of our history and fixed problems before. He’s going to know the intimate details of this government.”

The mayor added: “I can assure you that the quicker we get a full-time auditor I can appoint to take over the duties would be my desire. If we delay, we will be in worse shape.”

Council President Vernon Robinson Jr., I-Ward 6, said he thought $200 an hour “seems to be a lot, but I don’t know. I haven’t heard an alternative.” One option, he noted, “is to maintain the person in that spot,” acknowledging “it is a difficult topic.”

Crawford said the “sticker shock” of hiring the auditing consultant “is a valid concern,” but he was more concerned over the timing with only weeks before the council must vote on a budget.

Alderman Lawrence Bennion Jr., R-Ward 1, said the council should consider keeping Martial “in place until you can find another auditor.” He noted that the council had allocated funds for additional training for the auditor, but they had been cut by then-mayor Bill Aiello.

No one spoke up when Robinson asked for sponsors for the resolution to hire Compass Group.

Sherburne did not make any further comment, but appeared to be disappointed.

The second resolution to post the city auditor’s position for $95,00 to $120,000 was approved unanimously by the aldermen in attendance with little discussion.

By RICK MILLER

Olean Star

The Olean Common Council will meet in special session Tuesday night to discuss hiring an accounting firm to oversee the City Auditor’s Department and the $23.2 million city budget.

Mayor Amy B. Sherburne called the special meeting to hire Compass Group, a national auditing and consulting firm. Based in Minneapolis. The company would have the authority to act as city auditor.

Lens Martial, the city auditor, would continue to work in  the office, according to Common Council Finance Committee Chairwoman Sonya McCall, D-Ward 4.

A second resolution submitted for consideration at the special meeting would authorize the mayor to advertise for a city auditor with a salary range of $95,000 to $120,000.

The resolution to employ Compass Group for auditing services and help preparing the 2026-27 city budget cites recent “audit findings as well as a history of errors in the City’s budgets and bookkeeping necessitates assistance from a neutral third party to prepare the 2026-27 fiscal year budget and resolve various issues and address deficiencies with the City’s finances.”

The resolution also states the April 15 deadline to adopt the 2026-27 city budget “is not conducive to the employment of a new City Auditor prior to the budget adoption.”

Compass Group will be authorized “to act as City Auditor” within the City Charter, according to the resolution.

Sherburne was a few days late in introducing her proposed budget. She cited the short six weeks to prepare a budget after taking office in January while two audits were ongoing, as well as new budget software.

McCall, in an interview with the Olean Star, said some Council members have spoken of the need for a certified public accountant to oversee the City Auditor’s Office. 

“It’s like a $30 million business,” she said. “It makes sense.  I think that would be our goal, to ultimately hire a CPA.”

McCall said she could not address personnel issues, but that Martial was still city auditor.

Tonight’s budget review by the Finance Committee will follow the special meeting. The review will focus on the Sewer Division, where an 11% increase in the sewer rate is proposed.

McCall said the Council’s goal is to reduce not only the 11% increase in the sewer rate, but to cut the 18.69% increase in the tax levy. 

The city was notified of a one-time increase in state Assistance and Incentives to Municipalities (AIM) aid from $260,000 to more than $780,000 after the budget was prepared. It’s unclear whether the alderman will dip into the windfall — or how much they will dip into it — to reduce the 2026-27 property tax rate.

McCall said, “The Council is committed to bringing that

the tax burden, if you will, the tax breakdown

as low as we can without sacrificing services.”

What about tapping the general fund balance to help lower the proposed tax rate?

McCall replied that would be difficult since it is already lower than the 15% target for the general fund balance the Council has set. It is close, she noted, just over 13%.

The mayor proposed several new positions in the budget, McCall noted. Aldermen have asked if the departments couldn’t try to implement more efficiencies with existing staff.

Many residents have reacted negatively to the proposed budget Sherburne released four days ago — especially its 18.69% increase in the tax levy — which translates to an increase of $3.31 per $1,000 assessed value.

The mayor wrote:

“The reaction from residents over the past several days, following the publication of the first draft of the budget, underscores why transparency is so essential. 

“For too long, the full financial reality facing the taxpayers of Olean was not clearly presented. Difficult decisions were delayed, and the consequences of unsustainable budgeting practices were allowed to grow. 

“Years of irresponsible spending, overly optimistic revenue projections, a shrinking property tax base, rising inflation, and a “wait and see” approach despite repeated warnings in outside audits contributed to a financial crisis and a spending freeze as recently as last year. 

“These challenges did not emerge overnight, and they will not be resolved overnight. The people of Olean elected change, and with that comes a commitment to transparency even when the truth is uncomfortable. 

“It is my responsibility to confront the financial realities we face, to correct the course, and to rebuild a strong and sustainable foundation for our city’s future. 

“I am confident that together we will restore our financial stability, invest responsibly in our aging infrastructure and position Olean for long-term success. But meaningful progress begins with honesty. “We must move forward with clarity, accountability, and a shared commitment to doing what is right. I ask for your patience and understanding as we work through this process.
“The Common Council and I will continue to work diligently to produce a fair, responsible, and sustainable budget, always with the best interests of the people of Olean at the forefront of every decision,” Sherburne concluded.

Olean Star

Common Council Finance Committee Chairwoman Sonya McCall, D-Ward 4, said a key concern in upcoming budget talks is the need to balance tax increases with the importance of providing services.

With Mayor Amy B. Sherburne filing a proposed $23.2 million budget Thursday with an 18.6% tax hike, McCall, like other aldermen, started getting phone calls from residents.

In late-breaking news on Friday, the mayor disclosed the city had just received a letter from Gov. Kathy Hochul with news of a $780,000 increase in the city’s Aid and Incentives to Municipalities (AIM) funding this year. That wasn’t factored into the budget when it was released last week.
That is good news and will go toward reducing what looked to be a $3.31 per $1,000 increase to $21.06 per $1,000, McCall said.

Sherburne proposed to raise $10,039,044 in property taxes with the $21.06 per $1,000 tax rate.

The council is going to take a hard look at the mayor’s proposed budget, which is up from the current $19.8 million, McCall said. The budget review begins Thursday night.

Part of the reason for the steep increase in the tax levy is because former Mayor Bill Aiello and past councils strived to keep the tax rate down. The council has had to go to the general fund for large unbudgeted purchases, McCall noted. The general fund has dipped below the minimum of 15% of the budget.

McCall indicated there appears to be an issue of transparency that impacts the budget as well, according to a new independent audit by R.A. Mercer. There were instances when the council didn’t have the full picture of city finances, she said.

The city’s budget was built on an Excel spreadsheet, McCall said. This led to multiple errors. There didn’t seem to be acceptable practices established to run departments day-to-day. The challenges included a lack of transparency, a lack of up to date reports and a lack of planning

Now with new budgeting software, the mayor and council will have more financial information at their fingertips. The 2026-2027 budget was built with this new software.

“Amy knows we can’t stay at the percentage increase she came in with,” McCall said. “The $780,000 is great, but is it a one time only thing?” She added: “I can’t imagine six weeks to do a budget.” 

McCall said, “No one wants to slash services. At the same time, taxes have to be appropriate.” She didn’t say what she considers appropriate, but agreed that the new state revenue would make it easier for the council to reach a consensus.

In addition to the $23.2 million proposed budget, there’s a $4.5 million Water Fund and a $5.3 million Sewer Fund. Those are funded by users through water and sewer bills. 

McCalls noted that with several union contracts, personnel costs are bound to go up. While unions deserve to be fairly compensated, “we want to make sure we don’t cripple the city.” 

She suggested the city might look at not replacing employees who leave the workforce or retire. “Do we need to replace vacant positions?” she asked.

To those suggesting the city look into a volunteer department, McCall did not think it would work with the services the Olean City Fire Department provides. Volunteer fire departments across the state are having difficulty getting new members.

What kind of a tax increase is the Finance Committee chairman willing to accept?

“I don’t have a number right now,” McCall replied. She’s looked at the budget and has lots of questions for department heads and the mayor.

Olean Star

In her first proposed budget, Olean Mayor Amy B. Sherburne is seeking a $23.2 million general fund, a $3.4 million increase over the $19.7 million budget for 2025-2026.

It would require a $1.5 million increase in the tax levy to just over $10 million and increase the property tax rate by $3.31 to $21.06 per $1,000, an increase of 18.69%.

The Water Fund would increase about $100,000 to $4.5 million and the Sewer Fund would increase about $500,000 to $5.2 million. Water and sewer rates pay the costs of the Water and Sewer departments.

Having just received the proposed budget on Thursday, council members contacted by the Olean Star did not immediately respond to messages seeking comment on the budget.

In response to a question from the Olean Star, Sherburne agreed it was a difficult budget for a number of reasons.

The transition did not go as smooth as Sherburne had hoped. She succeeded three-term Mayor Bill Aiello in January. 

“Entering into a fully entrenched budget without knowledge of the day to day operations was a learn-as-you-go process,” the mayor said in a letter to the Common Council accompanying the proposed budget. “Meeting with department heads, listening to their needs, navigating line items and making financial decisions started on day one.”

Sherburne also touched on her plan for potential new revenue streams including voluntary payments from not-for-profit property owners including churches, a fair sewer rate agreement with the Village of Allegany and a review of compensation for ambulance service with neighboring towns. This demonstrates the capacity to increase revenue to offset the increase to city taxpayers, she said.

The mayor said, “The cornerstone of the City of Olean budget for the years 2026/2027 will be built on truth and sheer determination to set our course for financial success.” 

Sherburne cited an audit by R.A. Mercer & Co., that reported “significant deficiencies in internal controls over compliance with state programs; failure in routine reconciliation of asset and liability accounts balances; a significant misstatement in the general ledger for extended periods of time; a lack of communication of the previous administration and the Common Council in regards to NYS Supreme Court rulings to pay disputed invoices; cash balances of the bank reconciliations for the General, Water, Sewer and Capital did not agree with the general ledger of the city, including transactions that were not correctly recorded during the current year.”

Asked to comment on the tax increase included in Sherburne’s first proposed budget, Council President Vernon Robinson Jr., I-Ward 6, said Thursday evening he was “not sticker shocked” by the proposed tax increase.

“The fact is you can’t have a 0% to 2% tax increase over a decade and not keep pace with inflation.” The RA Mercer report “shows that a major change in accounting practices were warranted,” Robinson said. “We can keep kicking this can down the road, but the fact is, unless you cut employees or city resources, an increase is the inevitable.”

The council will begin budget meetings with the mayor and department heads next Thursday. They are facing an April 15 deadline to approve a budget. The new fiscal year begins June 1.

Sherburne noted that she included funding for new contracts with the Patrol and Command units of the Olean Police Department, Fire Department and CSEA. All have contracts that expire this year and need to be renewed.

Some of the budget increases include public safety, a $1.1 million or 15% increase, debt service up $600,000 or 47%, employee benefits up $1 million or 20%, culture and recreation up $225,000 or 18% and general government support up $192,000 or 7%.

The City Charter calls for the proposed budget to be introduced by the mayor by Feb. 15. The council will meet Thursday evenings to review the budget and suggest any changes.

Olean Star

Each Feb. 15, the Olean mayor presents a proposed 2026-27 budget for the coming year to the Common Council which must approve it by April 15. These dates are included in the city charter.

While Feb. 15 came on a Sunday this year, Mayor Amy Sherburne still had not presented aldermen with a copy of the proposed budget at Tuesday’s meeting.

Finance Committee Chairwoman Sonya McCall, D-Ward 4, told the Olean Star on Wednesday that the city purchased new software to help with the budget process. “We need the best version we can get,” she said of the tentative budget. “We should have it by Thursday.” 

The Star left a message for the mayor Wednesday morning which was not returned by the time this story was published.

The 2025 city budget was $29.1 million and carried a $17.77 per $1,000 tax rate.

McCall said the new software will streamline the budget process, adding that while the mayor missed the Feb. 15 deadline, she wasn’t overly concerned.

Council President Vernon Robinson Jr., I-Ward 6, said aldermen received an email from Sherburne on Friday, Feb. 13, advising them the budget would not be presented on Feb. 15.

Robinson said the alderman would not discuss the budget until it was on the agenda — presumably next Tuesday night. The council generally meets Thursday nights to review the budget, which must be passed by April 15.

Alderman David Anastasia D-Ward 7, asked about a letter the mayor had sent to tax-free churches, non-profit groups and businesses with payment in lieu of taxes (PILOT) agreements in the city asking how they would feel about making a voluntary contribution to the city.

“The council is expecting to have copies of the proposed budget before the end of this week with meetings potentially starting late next week in special meetings,” Robinson wrote on his Facebook page after the meeting.

Robinson declined to have the council talk about the measures that were not on Tuesday’s agenda. 

The council again discussed what to do with an unexpected windfall of revenue from the city’s new occupancy, or bed tax.

Earlier this month, City Auditor Lens Martial told aldermen the bed tax had produced $214,000 in revenue since it went into effect June 2, 2025. When passed, the bed tax was expected to produce about $100,000 in revenue a year for the city

Finance Committee Chairman Sonya McCall, D-Ward 4, noted the prior administration had favored using the revenue for salaries in the Community Development Office, something the council members did not all agree on.

Public Works Director James Sprague reported that specifications for new LED street light heads to replace the ones installed on North Union Street that provide insufficient light. The lights will be “aimable” and illuminate more of the street. He hopes to be able to mount pedestrian lighting on the same poles.

Sprague also reported that tree removal in Oak Hill Park will be delayed until the soil is less muddy. Four trees are targeted for removal and others will be trimmed of dangerous limbs.

Aldermen also reviewed a proposal to replace 31 video cameras inside and outside the Municipal Building along with a 10-year contract to install and maintain the cameras and servers for $103,508. The five-year contract would cost $76,963. No action was taken.

Olean Star

OLEAN — In a short meeting Tuesday, the Olean Common Council confirmed several mayoral appointments to the Zoning Board of Appeals.

Five of the six were reappointments of Zoning Board of Appeals members, although none of their terms had expired. The other was an appointment to the board.

Members Otto Tertinek, Kelly Sweet, William Eaton, Steven Rogers and James Rucinski were reappointed to seven-year terms. 

Council President Vernon Robinson Jr., D-Ward 6, cast a no vote on Rogers’ appointment. Aldermen Lawrence Bennion Jr., R-Ward 1, and Jessica Forney, R-Ward 3, were absent.

Robinson said the appointments made by former Mayor Bill Aiello had not previously been confirmed by the council. The appointments were made individually so the council didn’t have to vote on everyone at once, he said. 

“The council was basically making these appointments legal on paper despite some serving for months now,” Robinson told the Olean Star.

The council also voted 5-0 to confirm a new member to the Zoning Board of Appeals, Linda Edstrom to a seven-year term.

There was no word on whether board members James Dwaileebe and Thomas Enright would be reappointed. 

In other action, aldermen amended the city code to prohibit parking on the southeast corner of North Ninth Street at its intersection with Washington Street for a distance of 20 feet.

Alderwoman Sonya McCall, D-Ward 4, reminded her colleagues that The Shops on Union were having a Ladies Night Out Thursday (Feb. 12) from 5-8 p.m.

The stores are looking to bring more people downtown to shop, McCall said. The store will be offering drinks, treats, specials and more. Each store will be offering something unique. 

Participating stores include: For Crafts Sake, Christie’s Boutique, The Hatch Cafe, The Paper Factory, Kaleidoscope Boutique and Gallery, Armond’s Olean Wellness Store, Eatery and Jason Clemons Salon.

Olean Star

Members of the Olean Common Council heard brief updates on levee reaccreditation and controlling sewage overflows Tuesday night, but a bed tax report seemed to raise aldermen’s eyebrows.

After City Auditor Lens Martial reviewed balances in several capital accounts, he reported the city’s bed tax had taken in $214,000 since its inception June 1, 2025.

When the council approved the 5% bed tax last year it was estimated the fee would raise around $100,000 in the first year and help the city promote tourism and business development.

Finance Committee Chairman Sonya McCall, D-Ward 4, asked where the money was sitting?

Martial replied that it was in the general fund.

McCall said former Mayor Bill Aiello, who proposed the bed tax, had wanted a fairly significant portion for salaries and other things in the Community Development Department. She noted no percentage was set aside for city marketing for tourism and new businesses.

“I don’t think it should be in the general fund because we should not be using this money to supplement our fund that we already know is low,” McCall said.

“”With this generating this amount of money in one year, that’s going to bring forward another conversation,” said Council President Vernon Robinson Jr., D-Ward 6. He suggested putting bed tax revenues on the agenda for discussion at the next meeting.

Martial said that since everything in the general fund would roll over to fund balance at the end of the fiscal year on May 31, the bed tax revenue could better be placed in a capital or reserve account. The Council has until May 31 to make a decision, he added.

Alderman Lawrence Bennion Jr., R-Ward 1, said he agreed with Robinson that “a larger conversation needs to be had very soon with the upcoming budget talks.

In another matter, Public Works Director James Sprague said a report on sewage overflows from the engineering company hired by the state Department of Environmental Conservation was due March 1, but would probably be a e or so late. “We don’t have any specifics to offer to anyone about where we’ll be going after that.”

The report is focused on the areas served by the South Fourth Street pumping station.

The last reported sewage overflow during heavy rains was in June 2024.

Mayor Amy Sherburne said that her administration was preparing binders of documents on the reaccreditation of the city’s levee system that would be ready by the next meeting. The subject had been on the agenda for Tuesday’s meeting.

“We’re waiting for funding from FEMA,” the mayor said of the levee study. The city has until 2028 to complete work on any deficiencies in the levee system found by the study.

One focus of the study was along the east side of Olean Creek in the vicinity of War Veterans Park.

Without fixing any deficiencies, the levee system could not be certified and nearly 2,900 homes and businesses in the city would need to purchase flood insurance.

Olean Star

OLEAN — It was a brief meeting for the Olean Common Council Tuesday night.

Mayor Amy B. Sheburne read a proclamation designating Jan. 27 as a Day of Remembrance for the more than 6 million Jews who were killed by the Nazis in World War II.

Alderman David Anastasia, D-Ward 7, commented he thought the Streets Division did a great job of clearing snow from the recent snowstorm from city streets. 

“I did get a few calls over the weekend about snow plowing, but as a retired DOT snowplow driver myself for 15 years, I think the city did a great job with the amount of snow we had and the amount of streets we have to be plowed.”

Alderwoman Sonya McCall, D-Ward 4, also thanked the Public Works Department and said the condition of city streets was comparable with other areas of the county. She noted there were some Facebook complaints that some cars struck on city streets. 

From her viewpoint, city streets were comparable or better than any of the roads she drove on Monday, McCall said.

Sherburne had declared a citywide Snow Event Monday, with restrictions on parking on many streets. City parking lots were opened to those who had no off-street parking.

The Snow Event was lifted Tuesday afternoon. It was designed to help city plowing crews to clear streets more quickly and efficiently.

Aldermen approved a $3,545 expense for a new police hire to attend the Chautauqua County Police Academy.

Council President Vernon Robinson Jr., D-Ward 6, amended a mayoral appointment to confirm Jaye Beattie and Reed McElfresh to the Olean Planning Board. McElfresh had resigned, he said. The council voted 7-0 to confirm Beattie.

Robinson asked to postpone the appointment of members of the Zoning Board of Appeals until the next meeting. 

The agenda had listed James Dwaileebe, William Eaton, Steve Rogers, James Rucinski, Kelly Sweet and Otto Tertinek as mayoral appointments for the council to confirm.