OLEAN — New, lower tax bills will be coming to city taxpayers — and they will have some extra time to pay without penalty.
The Common Council unanimously approved an amendment to the 2025-26 city budget — which begins Sunday — to adjust a tax increase from 7.13% to 6.2%, as well as send out new bills to the owners of the roughly 6,000 city properties. The amendment also approved over $71,000 in budget cuts to cover the lost tax revenue.
While the budget approved in April included a 7.13% tax increase, Common Council members said they had approved the budget under the assumption that the increase was 6.2%, which was indicated as correct by the city’s administration. Council members indicated the mistake was made by someone in the auditor’s office, possibly from using old software that did not properly calculate the increase.
City Auditor Lens Martial told the council that he bears the responsibility for the work of the staff in his office.
“I should have looked for it … I put out the budget,” Martial told the council.
The change amounts to $14 on a property assessed at $100,000 — dropping the bill for the year from $1,791 to $1,775.
In addition to the lower bills, Council President John Crawford, D-Ward 5, noted the time to pay was extended by the resolution.
“There is no penalty for payments until August,” Crawford said, with penalties being incurred after Aug. 1. The original bills called for penalties after June 1.
Several hundred taxpayers have already paid their bills and will be given a refund, officials said.
“For those who pay through escrow, please be patient,” Crawford said, adding the city will work with those taxpayers for a refund. Many homeowners with mortgages use escrow accounts with their lender to set aside tax funds, ensuring the lenders do not see properties lost due to tax liens.
The cost of the change — to print and mail new bills — is about $5,600, said Finance chair Sonya McCall, D-Ward 4.
Cuts included removing around $30,000 from debt service, $18,000 from the Department of Public Works, $12,000 of road striping work, and a property insurance quote — which was received after the budget was approved — coming in about $11,000 under estimates.
David Anastasia, D-Ward 7, said the ability of the city to come up with $71,000 from the budget in a week “it just proves that there is fat to cut,” he said, calling on Mayor Bill Aiello or Amy Sherburne, who is challenging the mayor in the June Republican primary, to do more to cut costs if elected.
Aiello countered that “it was a very tight budget,” and the cuts “are not going to be without pain.
“It’s not things we want to go without,” he said, adding costs to the DPW will be particularly felt.
McCall asked how the city can avoid such issues in the future. Aiello noted that training and software updates will be implemented.
Crawford noted an “integrated” software application that would connect the budgets from all city departments and track budgets in real time would be an ideal upgrade that is already in place at many government agencies, and that the city will work to get quotes for the software upgrade.
IN OTHER BUSINESS, the council accepted the resignation of Jason Panus, R-Ward 2. In an emailed resignation dated May 16, Panus announced his resignation as of that date.
In the nine meetings of the Common Council held this year before May 16, Panus was absent from five. Panus could not be immediately reached for comment.
Panus was first elected in 2019, winning reelection in 2021 and 2023. His term is set to expire at the end of the year, and he did not submit a petition to run for reelection with the county Board of Elections.
The vacancy is the first on the council during a term since 2021. Under the city charter, the mayor has the power to appoint a new member, but the council must confirm the appointment by a two-thirds vote.
Crawford said he will work with the mayor on the process to appoint a new council member.
