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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