Cincinnati will have $72.1million from the sale of the city-owned railway to spend on existing infrastructure in fiscal year 2028.
The board of trustees for the Cincinnati Southern Railway Trust (CSRT) voted to approve that amount at its quarterly meeting Tuesday. Fiscal year 2028 begins July 1, 2027.
Voters approved the $1.6 billion sale to Norfolk Southern in 2023, replacing a decades-long lease to the railway company. The money was invested, with the board approving annual disbursements from a portion of the earned interest. The remaining earned interest stays in the fund to grow the principal. The current balance is more than $1.9 billion.
So far, the city has seen significantly more revenue as a result of the sale:
- Final lease payments: ~$26 million per year
- Fiscal year 2026: $56 million
- Fiscal year 2027: $58 million
- Fiscal year 2028: $72.1 million
The money is required by state law to be spent only on maintaining existing city-owned infrastructure like roads, parks, recreation centers, and police and fire stations.
The board's policy is to disburse 3.5% of the three-year average of the fund's total balance at the end of each fiscal year. That amount is $62.1 million.
The board opted to approve an additional $10 million as a "one-time boost" after hearing from investment managers that the fund is performing above expectations, and from city officials about how they could spend that money.
City officials presented the board with a "sales pitch" for how they could use an additional $10 million to increase a top priority for many city residents: repaving streets.
Department of Transportation and Engineering Director Greg Long says recent significant changes to how the city puts street paving projects out to bid have significantly decreased costs.
He says with $10 million, the city could pave an additional 21 lanes miles and do preventative maintenance on another 25 lane miles.
"I can do more," Long told the railway trust board. "I can get well past that 100 lane mile threshold."
Learn more about the changes in the presentation slides below (article continues after):
Note: this document is 19 pages long; only the first page may be visible on mobile.
Board members were convinced.
"Performance of the fund has far exceeded our goals of 5.5% [annual growth]. Of course, inflation has ticked up, and that's a component to consider," said Board Treasurer Paul Sylvester. "But that being said, we have the money now — we're within a range to provide the city a boost, provide the citizens of Cincinnati more visibility to street rehab and repair."
The CSRT board cannot dictate how the city spends the money disbursed from the trust — that's up to City Council, which usually approves the recommendations of the city manager.
The board plans to send a communication to the city manager and City Council expressing their desire that the "extra" $10 million be put toward street rehabilitation.
Learn more about how the city spends the money, and about the fund's history and current performance, below.
Trust fund performance
Since its inception in March 2024, when the $1.6 billion sale revenue was invested, the fund has had an annualized growth of 9.28%. That's above the board's goal to grow the fund by 5.5% a year.
"The portfolio continues to perform very well on all fronts: on generating income, on capital appreciation, and in managing risk," said Eric Goia from UBS Investment Group, the fund's investment manager.
The current balance as of Sept. 15 is $1,908,156,424.
So far in 2026, the fund has grown 5.13%, despite a temporary drop in March. That's also after sending the city quarterly payments.
How City Council is spending railway revenue
Earned interest from the sale of the railway is now the largest source of revenue for the city's capital budget, which covers purchasing or improving physical assets like buildings, roads, and parks.
In the current fiscal year (FY 27), the city has $58 million in railway sale revenue; the total capital budget for existing infrastructure is $99.4 million.
Here's how that $58 million is broadly being spent:
- $31.8 million on streets and bridges
- $15.9 million on public services
- $2.6 million on parks
- $7.6 million on recreation
- $181,000 on health
You can see a more detailed breakdown of projects, including for prior fiscal years, on the city's Cincy on Track dashboard.
What is the Cincinnati Southern Railway Trust?
The city built the Cincinnati Southern Railway in the 1870s; it begins in the city and run south about 337 miles to Chattanooga, Tennessee. Cincinnati has never owned rail cars nor operated rail traffic for either passengers or freight. The railway has always been leased by a separate entity; a subsidiary of Norfolk Southern has held the lease since 1881.
The city used revenue from the lease, about $26 million a year, to maintain or replace existing city-owned infrastructure. With the latest lease set to expire in 2026, the Board of Trustees that managed the CSR negotiated a $1.6 billion sale agreement with Norfolk Southern. That sale was subject to approval of Cincinnati voters. It was on the ballot in Nov. 2023 and voters narrowly approved the sale with 51.66% support.
The sale revenue was invested in a trust fund, with the goal of spending only a portion of earned interest on city infrastructure, while growing the fund at the same time. So far, earned interest payments to the city have been more than double what the city was getting in lease payments.
The Board of Trustees that previously managed the city's ownership of the railway transitioned to manage the trust fund instead. The Board is made up of appointed members who serve without compensation. They hired the investment firm that actively manages the fund, set the investment strategy, and decide how much money to send the city each year.
The CSRT Board website includes information about its meetings, as well as financial reports about the investment fund.
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