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Olean council amends ordinance to cap sales tax revenue projections at 90% of prior 12 months
Summary
The council amended city ordinances to require that future annual budgets not project sales-tax revenue above 90% of the previous 12 months of actual receipts, a change the council said is intended to create a conservative buffer for budgeting.
The Olean Common Council on Feb. 25, 2025 amended city ordinances to require that sales-tax revenue projections used in annual budgets not exceed 90% of the prior 12 months' actual sales-tax receipts.
Alderman Crawford introduced the change as PL 23-25 and described it as a rolling 12-month look back intended to reduce the risk of overestimating revenue during budget preparations. "The suggestion that ultimately came out of [the audit committee] was that we don't exceed whatever our previous 12 months of actual sales tax revenue is," Crawford said, and another council member proposed building a 90% buffer into the projection to provide a conservative margin.
Council members said the amendment reflects recent volatility in sales-tax receipts and accounting prudence. The amendment to include a "not to exceed 90%" threshold passed the council and was moved forward for code change publication; the clerk noted the matter will be referred for publication and a subsequent meeting on March 11, 2025 for finalization as a code amendment.
No specific changes to tax rates or to service levels were approved; the action affects how staff and the council may project and present sales-tax revenue in future budgets.
