CINCINNATI — The first interest payment from the sale of the Cincinnati Southern Railroad is about to pull into the station.
$56 million is set to fund infrastructure improvements across the city. The sale approved by voters requires the money to be used for existing streets, bridges, municipal buildings, parks and recreation centers.
How much money will the city get?
The distribution from the trust to the city will be $56 million in FY2026, which starts July 1. That number is more than double the amount of money the city brought in from Norfolk Southern’s annual lease payments on the railroad.
On Tuesday, wealth managers briefed the Board of Trustees for the Cincinnati Southern Railway on the fund's performance.
"We have almost $60 million of income produced in the trust since inception," said Allen Zaring, Managing Director at UBS, which manages the railway trust.
Despite market turbulence in recent months, the trust fund still generated a return. Even with the first distributions to the city, the original principal from the sale remains untouched, said Timothy Bayer, Vice President of UBS.
"We are thrilled with both the performance and the growth of the portfolio, but specifically that we were secure in the income generation for the city," Zaring said.
Watch to see wealth managers discuss the Board of Trustees on the Cincinnati Southern Railway fund's performance:
Where will the money go?
On Friday, Mayor Aftab Pureval will unveil his administration’s budget for fiscal year 2026.
Council member Jeff Cramerding, chair of the city’s Budget and Finance Committee, said the additional $30 million from the railroad sale in infrastructure projects is significant.
“I think citizens are really going to see an improvement in infrastructure and roads," Cramerding said. "A number of our roads are in very bad condition. I expect that to be the number one priority.”
According to a budget document draft obtained by WCPO 9, at least $18.3 million is set to go toward street rehabilitation, roughly a third of the available $56 million.
According to the document, other major proposed expenditures include an overhaul of Victory Parkway near Eden Park, the State-to-Central Complete Street Project and upgrades to the Dunham Recreation Center in Westwood.
The document is only a draft. It could be changed before Friday's budget press conference.
It also shows millions for the city's fleet garage facility, a location WCPO has reported on for years.
"Workers were working in unacceptable conditions, working in the cold, in the snow, and did not have a facility that let them maintain the trucks," Cramerding said about the fleet facility. "It's a big project. And the sale of the railway really moves that up."
Councilmember Seth Walsh said there is money for smaller projects within communities that residents have been asking the council about.
Sedamsville is set to receive funds to fix its welcome monument.
“It’s a small thing, but it’s an important thing,” Walsh said. “Finally being able to step up as a city, I think it matters.”
What about last year?
Disbursements from the trust don’t begin until July 1, 2025.
Funding from last year’s FY2025 budget was comprised of "revenue generated by certain contractual payments from Norfolk Southern to the Rail Board.”
The city allocated $29.2 million, with the majority following the streets and bridges category.
There is an online dashboard tracking how the money has been spent and committed.
Watch our story on the fund allocation from May 2024:
"We gotta start showing the impact."
Council member Seth Walsh said he is pushing for the administration to quickly begin implementation of the projects once the budget is approved, noting voters approved the sale a year and a half ago.
“We gotta get this money out. We gotta start showing the impact,” he said.
“I think the gap that often falls and where people start to get cynical is that … it's not for another year or two years until you start seeing that progress,” Walsh said. “We’re saying they’re a priority. Now it’s time to make them a priority.”
What’s next?
Pureval is set to release his administration's budget on Friday, which will provide more details on exactly how the money will be allocated.
Then, a full presentation will happen at a Budget and Finance Committee meeting on Tuesday, May 27.
Council will vote on the full budget in the month of June.
