By RICK MILLER
Olean Star
OLEAN — Mayor Bill Aiello released a tentative $29.1 million budget for 2024-25 on Tuesday that carries a 6% property tax increase.
The $19.8 million general fund proposed in the mayor’s tentative budget is $618,000 lower than the 2024-25 budget.
The tentative tax rate is $17.77 per $1,000 assessed value, up from $16.71. Assessed value in the city dropped from $482,000,000 to $478,588,683. The mayor said the city’s assessed value dropped $6 million when Cimolai-HY, which took over the former Siemens (Dresser-Rand) complex — will receive full exemption.
Aiello acknowledged the tax hike exceeds the state’s 2% tax cap, but added: “it is necessary, as the city is not exempt from the price increases caused by inflation.” The city also faces increases in state retirement costs and contractual raises.
Also part of the budget are plans to establish a QR code-base parking program for Union and State streets.
Aiello said a workforce reduction will be made by not filling open positions and increasing some user fees will be discussed in budget deliberations in coming weeks.
The proposed $4.79 million sewer budget is up $292,000 and the $4.5 million water department budget is up $219,000.
Aiello is proposing a sewer rate increase of 5.6% and water rate hike of 5.04%. The other part of the city budget is debt service, which remains at $3.4 million.
Revenues drop in the 2025-26 tentative budget by $618,000 to $19.87 million, including $8.56 million in property taxes, which are up by $513,000 from 2024-25.
Non property tax revenues — including sales taxes — are down $743,000 to $5.66 million.
State aid is down by $513,000 to $2.88 million.
The Common Council and the mayor will hold special budget sessions in the coming weeks. The new budget goes into effect June 1.
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