Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
MCDANIEL W VALEN
  2. Issuer Name and Ticker or Trading Symbol
COMMUNITY BANK SYSTEM INC [CBU]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chief Risk Officer
(Last)
(First)
(Middle)
16 GILLETT LANE
3. Date of Earliest Transaction (Month/Day/Year)
07/29/2005
(Street)

CAZENOVIA, NY 13035
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 07/29/2005   M   370 A $ 11.5625 6,300.383 (1) D  
Common Stock 07/29/2005   M   580 A $ 12.375 6,880.383 D  
Common Stock 07/29/2005   M   670 A $ 13.1 7,550.383 D  
Common Stock 07/29/2005   M   1,416 A $ 15.675 8,966.383 D  
Common Stock 07/29/2005   F   1,748 D $ 24.27 7,218.383 D  
Common Stock               154.6188 (2) I By 401(k) Plan

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option $ 11.5625 07/29/2005   M     370 10/01/2003 01/01/2010 Common Stock 370 $ 11.5625 0 D  
Stock Option $ 12.375 07/29/2005   M     580 10/01/2003 01/01/2011 Common Stock 580 $ 12.375 580 D  
Stock Option $ 13.1 07/29/2005   M     670 10/01/2003 01/01/2012 Common Stock 670 $ 13.1 1,340 D  
Stock Option $ 15.675 07/29/2005   M     1,416 01/01/2004 01/01/2013 Common Stock 1,416 $ 15.675 2,126 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
MCDANIEL W VALEN
16 GILLETT LANE
CAZENOVIA, NY 13035
      Chief Risk Officer  

Signatures

 Donna J. Drengel, as attorney-in-fact, pursuant to a power of attorney   08/02/2005
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Includes 45.588 and 40.854 shares acquired on April 11, 2005 and July 11, 2005, respectively, under the Community Bank System, Inc. Dividend Reinvestment Plan.
(2) The number of shares reported herein were acquired pursuant to Community Bank System, Inc.'s 401(K) Plan and are based on a current plan statement.

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