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^*

PATTERSON DAVID CHARLES

(Last)

(First)

(Middle)

256 POTTER ROAD

(Street)

CANTON

13617

(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)
12/31/2006

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	01/01/2007		M		1,262	A	$0	22,192	D
Common Stock								5,501.87⁽¹⁾	I	By Trustee, W&P P.S. Plan

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	$22.94	01/17/2007		A		3,817		01/17/2007	01/17/2017	Common Stock	3,817	$0	3,817	D
Phantom Stock (Stock Balance Plan)	⁽²⁾	01/17/2007		A		893.33		⁽³⁾	⁽³⁾	Common Stock	893.33	$0	13,081.22	D
Deferred Stock (Deferred Comp.)	⁽⁴⁾	12/31/2006		A		449.897		⁽⁵⁾	⁽⁵⁾	Common Stock	449.897	$0	16,931.3201	D
Deferred Stock (Deferred Comp.)	⁽⁴⁾	01/01/2007		M			1,262.066	⁽⁵⁾	⁽⁵⁾	Common Stock	1,262.066	$0	15,669.2541	D
Deferred Stock (Deferred Comp.)	⁽⁴⁾	01/10/2007		A		145.8339		⁽⁵⁾	⁽⁵⁾	Common Stock	145.8339	$0	15,815.088	D

Explanation of Responses:

1. Includes 29.301 and 29.961 shares acquired on October 10, 2006 and January 10, 2007, respectively, under the Community Bank System, Inc. Dividend Reinvestment Plan.

2. Each phantom stock unit is the economic equivalent of one share of Community Bank System, Inc. common stock.

3. Phantom Stock (Stock Balance Plan) may be settled upon the later of the reporting person's attainment of age 55 or termination of service on Community Bank System, Inc.'s Board of Directors.

4. Each deferred stock unit entitles the reporting person to receive one share of Community Bank System, Inc. common stock.

5. Awards relating to the Deferred Stock units (Deferred Comp. Plan) may be settled upon the reporting person's attainment of age 64.

Remarks:

	Donna J. Drengel, as attorney-in-fact, pursuant to a power of attorney	01/19/2007
	** 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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