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Olean to reissue tax bills after miscalculation shows higher increase than announced
Summary
City officials discovered a miscalculation in the 2025–26 tax materials that led to tax bills reflecting a 7.13% increase instead of the 6.2% the council discussed; the mayor plans a resolution next week to reissue bills and pursue refunds and a temporary penalty delay.
Olean Mayor and council members agreed May 20 to move quickly to correct a tax-billing error after staff discovered tax bills were calculated and mailed using a 7.13% increase rather than the 6.2% percentage the council expected.
The error affects the 2025–26 budget package the council approved: the general fund budget total cited at the meeting was about $19.8 million, and officials said they needed roughly $8.5 million in levy revenue to support that figure. City staff told the council the correct tax rate to fund that levy is $17.90 per $1,000 of assessed value, but the percentage change printed in the budget materials—6.2%—was computed using an incorrect prior-year rate.
The discrepancy came to light during a committee meeting when the mayor explained the tax-law reporting requirement and a council member asked whether the bills the public received matched the published percentage. “The 7 it was billed as 7.13,” the mayor told the council. The council pressed for corrective action: the mayor said he would present a resolution next Tuesday that would authorize issuing corrected tax bills and making refunds as needed.
Why it matters: the mismatch created a public-trust problem and an immediate operational question about whether to reprint and mail new bills or to adjust payments administratively. Council members said residents were told publicly the increase would be 6.2%, and several aldermen urged the city to absorb the administrative cost of correcting the error rather than pass it to taxpayers.
What officials discussed and next steps - The mayor said he would bring a resolution next Tuesday to authorize issuing corrected estimates and processing refunds as needed. He also proposed delaying penalties for early payments while the city sorts the correction. - Staff estimated printing and postage for reissued bills at roughly $3,000–$4,000. Council members also noted the fiscal gap tied to the percentage error is about $71,000 (a figure several speakers cited as the marginal difference associated with the mistaken percentage). - Council members asked for a corrective-action plan addressing training and process controls for budget preparation; independent auditors were mentioned as a monthly/annual check but would not have caught the error until their year-end review.
What the record shows and limits - The council did not vote on a final corrective resolution during the May 20 meeting. The mayor stated he would bring a formal resolution the following Tuesday to authorize corrected tax bills and refund procedures; he also discussed delaying penalty dates for June and July while corrections were prepared. - Staff repeatedly cautioned that the city must follow state property tax notice law when wording the bills; the mayor cited state property-tax reporting requirements (referred to during the meeting as “state law, legal property tax law 9 22”) as the reason certain terms must appear on notices.
Council members urged quick action to reissue accurate bills, reimburse residents who already paid the larger amount and implement process changes so the mistake does not recur. The mayor’s resolution was scheduled for the next council meeting.
