News Release

Executive Budget Message 2/15/2011

February 15, 2011

Members of the City of Olean Common Council;

It is my pleasure to present to you the proposed budget of the City of Olean for the fiscal year ending May 31, 2012. It was my goal to present a budget that would come in at two percent or less. My goal remains to prepare a budget that would not put an unnecessary burden on our taxpayers. If the City can keep the taxes at a reasonable level, we will be in a better position to attract new businesses, as well as retain the businesses already within our limits.

Our city or any other municipality within New York State continues to find it hard to attract and retain businesses in the already financially-challenged atmosphere. With a new governor and renewed commitments to relieving us of the unfunded mandate burden, we can only encourage our leaders to get serious and pass the needed legislation to create a positive financial atmosphere here in New York State.

Again this year our department heads were encouraged to remove any duplication of services, continue to encourage shared services with surrounding municipalities and the county. In these trying economic times, every employee, in every department, is charged with scrutinizing spending to remove the waste. Also, there needs to be additional oversight on all overtime.

The City continues to be proactive in planning for our future. In the past several years, the Office of the State Comptroller, the City Auditor, and the City’s outside financial advisors, will all continue to address the need for a five year capital plan, which has already implemented the vehicle and equipment replacement plan. We have put together a five-year renovation plan for the Bartlett House and we have seen the completion of the Airport Master Plan. We are in the process of putting together other projects to complete our five-year capital plan within the next four to six weeks. Without a map to know where we are going, it will be impossible to get there. Also this will give us needed leverage to pursue other funding, such as grants, to help finance such ventures. The City needs to constantly prioritize spending and borrowing, to assure we are accomplishing the most important and cost effective projects first.

With the uncertainty of New York State, more than ever local municipalities need to find ways to be more self-sufficient. The City needs to prepare for increasing costs, in particular, health care and retirement costs. I would like to see funds continue to be reserved for these items as was done in the past year’s budget. If at the end of the year, the cost of these items is under budget, we could transfer any remaining funds into the reserve to be used as costs increase in future years.

When operating a municipality, we will always face unforeseen costs. To be prepared for these emergencies, I have included a contingency account of 5.0% of operating appropriations less debt service. In the letter submitted to the Office of the State Comptroller from the Common Council, dated April 1, 2009, the Council agreed to increase the contingency account to 4.3% in the 2010/11 budget, and then to the suggested level of 5% in the 2011/12 budget. We have met this commitment.

I would like to extend my gratitude and thanks to the City taxpayers for giving me the opportunity to lead our City. The past few years have been very difficult, but I am confident the City officials will work as a team to lead us successfully through any new challenges we are faced with.

Respectfully Submitted;

Linda L. Witte
Mayor