SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

SABIA PETER A

(Last)

(First)

(Middle)

133 WALNUT STREET

(Street)

DUNMORE

18512

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
COMMUNITY BANK SYSTEM INC [ CBU ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
	Officer (give title below)	Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
11/01/2004

4. If Amendment, Date of 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

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)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	11/01/2004		M		2,000	A	$13.175	14,294⁽¹⁾	D
Common Stock	11/01/2004		M		4,800	A	$15.675	19,094	D
Common Stock	11/01/2004		M		4,520	A	$24.15	23,614	D
Common Stock								52,976⁽²⁾	I	By Valley Dodge Truck Center
Common Stock								155,958⁽³⁾	I	By Peter A. Sabia, Sr. T/U/A (7/31/03)
Common Stock								24,042⁽⁴⁾	I	By Peter A. Sabia, Sr. T/U/A (5/7/04)

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 Securities Underlying Derivative Security (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: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
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)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Stock Option	$13.175	11/01/2004		M			2,000	02/20/2002	02/20/2012	Common Stock	2,000	$13.175	0	D
Stock Option	$15.675	11/01/2004		M			4,800	01/01/2003	01/01/2013	Common Stock	4,800	$15.675	0	D
Stock Option	$24.15	11/01/2004		M			4,520	01/21/2004	01/21/2014	Common Stock	4,520	$24.15	0	D

Explanation of Responses:

1. On April 12, 2004, the common stock of Community Bank System, Inc. split 2-for-1, resulting in the reporting person's acquisition of 6,147 additional shares of common stock.

2. On April 12, 2004, the common stock of Community Bank System, Inc. split 2-for-1, resulting in Valley Dodge Truck Center's acquisition of 26,488 additional shares of common stock.

3. On April 12, 2004, the common stock of Community Bank System, Inc. split 2-for-1, resulting in the Trust's acquisition of 90,000 additional shares of common stock.

4. The reporting person transferred 24,042 shares from the Peter A. Sabia, Sr. T/U/A Trust (7/31/03) to the Peter A. Sabia, Sr. T/U/A Trust (5/7/04).

Remarks:

	Donna J. Drengel, as attorney-in-fact, pursuant to a power of attorney	11/03/2004
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* 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).
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