Purpose of Audit
The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the City’s tentative budget for the 2014-15 fiscal year are reasonable.
The City of Olean, located in Cattaraugus County, issued debt totaling $4,300,000 to liquidate the accumulated deficit in the City’s general, water and sewer funds as of May 31, 2007. Local Finance Law requires all local governments that have been authorized to issue obligations to fund operating deficits to submit their tentative budgets for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding.
- Based on the results of our review, we found that the significant revenue and expenditure projections in the proposed budget are reasonable.
- The City did not completely implemented or resolved recommendations contained in our budget review report letter issued in March 2013.
- The City’s proposed budget complies with the property tax levy limit set by statute.
- Investigate the difference between the streets maintenance budget summary schedules and the supporting schedules.
- Adjust the budget to reflect the corrected debt schedule.
- Adjust the budget to include court security personnel costs.
- Ensure that the potential water and sewer rate increases be authorized by the Common Council prior to the adoption of the budget.