Executive Budget Message
City of Olean 2008/2009 Budget
April 1, 2008
Members of the City of Olean Common Council
It is my privilege to present to you the budget for the City of Olean for the fiscal year ending 2009. We are pleased to have put together a balanced budget, however this budget does carry a significant real property tax increase. The New York State Office of the State Comptroller has reviewed this budget, and has issued New York State Comptroller’s Report Number B1-8-1 in connection with this review. It is the responsibility of this Council to take the recommendations within the report, and make modifications to the budget in accordance with these recommendations. Any item that is not incorporated into the budget document needs to be explained in writing to the New York State Office of the State Comptroller no later than five days prior to the adoption of the budget.
Tax Levy and Rates: The tax levy for the 2008/2009 fiscal year is $6,390,786. The tax rate for the year is $163.12 / $1,000 of Assessed Valuation, this is an increase of $16.78 / $1,000 of Assessed Valuation over fiscal year 2007/2008. The average homeowner has an assessed value of approximately $6,000, and would pay roughly $978.72 in City real property tax in 2008.
General Fund: The spending level in the General Fund is $14,900,334. This represents an increase of $965,501 or 6.9%, from the 2007/2008 budget. A primary reason for this increase is related to a plan to hire additional staff, including police officers, street laborers, and a part-time legal secretary. Other substantial increases include an increase in the contingency account, tree program, health insurance, and debt service and interest costs.
Water Fund: The 2008/2009 Water Fund budget is $3,346,762. This represents an increase in appropriations of $152,498, or 4.8%, over the 2007/2008 budget. The water rate was increased on March 11, 2008 by $1.01 / 1000 cubic feet to $57.00. A customer using an average of 2500 cubic feet per quarter would pay an additional $10.10 per year.
Sewer Fund: The spending level in the Sewer Fund is $2,676,251. This represents an increase in appropriations of $378,083, or 16.45%, over the 2007/2008 budget. The sewer rate was increased on March 11, 2008 by $4.50 / 1000 cubic feet to $42.30. A customer using an average of 2500 cubic feet per quarter would pay an additional $45.00 per year.
Debt Service Fund: Debt service for the 2008/2009 budget year totals $1,803,882. To meet these requirements, the City plans to transfer $640,952 from the General Fund, $889,492 from the Water Fund, and $218,438 from the Sewer fund. The City also plans to use $55,000 of Debt Service Fund Balance. This Fund Balance is created when Capital Projects come in under budget, and the balances are transferred to the Debt Service Funds for repayment of debt issued to complete the projects.
Acknowledgements:
I would like to extend my gratitude and thanks to all department heads and staff who contributed to the individual department budget submissions. Without exception, they clearly understand the challenges facing our City in these difficult financial times. City taxpayers are fortunate to have such a professional and dedicated staff team working for them.Respectfully submitted,
David J. Carucci
City of Olean, Mayor