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City manager presents structurally balanced FY26–27 budget, outlines $56 million railway trust spending plan
Summary
City Manager Cheryl Long and Budget Director Andrew Dudes presented a biannual operating and capital budget to the Budget and Finance Committee that the administration says returns the general fund to structural balance and allocates $56 million from the Cincinnati Southern Railway trust to existing city infrastructure.
City Manager Cheryl Long presented the administration’s recommended fiscal 2026–27 biannual spending plan to the Budget and Finance Committee, saying the package “takes care of the city's needs and sets us up for future success” while avoiding one‑time American Rescue Plan dollars. The plan includes $56,000,000 in trust disbursements from the sale of the Cincinnati Southern Railway to fund capital projects.
Budget Director Andrew Dudes told the committee the operating budget aims to return the general fund to recurring balance. “Fiscal year 20 26 is the return to structural balance,” Dudes said, and the administration reported that a combination of revenue adjustments and expenditure reductions narrowed a tentative deficit to $10,200,000.
Why it matters: The recommended budget shifts the city away from one‑time federal funds, increases capital spending on streets and neighborhood facilities, and directs a major new source of capital — railway trust disbursements — toward existing infrastructure. Committee members repeatedly pressed for detail on specific allocations, the pace of repairing deferred maintenance and the budget’s assumptions about revenue growth.
Most of the operating increase is directed at public services and public safety. The city manager cited a 57.1% increase in street rehabilitation funding and additional staffing for the Department of Public Services, plus funding for police and fire recruit classes and a new understudy program for cadets. Dudes said the general fund revenue projection for FY26 is $569,500,000 and that personnel and benefits consume roughly 82% of that total.
The administration described three main balancing steps: an executive finance review that updated revenue and fee schedules, an executive performance review handled by the Office of Performance and Data Analytics, and an executive budget review that combines performance and financial information for allocation decisions. Dudes cited $10,600,000 in additional interest revenue and a variety of targeted revenue increases and expenditure reductions — including vacancy savings, reduced nonpersonnel line items and a $1,200,000 reduction in fire overtime.
Committee members asked for more detail on several items. Vice Mayor Kearney asked how the rising employer pension contribution — moved to 18.5% for FY26 — affects long‑term fiscal goals; Dudes said the contribution follows a multiyear plan. Council Member Seth Walsh asked for a spreadsheet enumerating fee changes to be provided prior to a vote; Dudes said the principal fee in the operating ordinance is a building and inspections increase tied to inflation.
The administration said the budget includes $4,000,000 for leveraged support (reduced by a 2% scenario and some category transfers) and a restructured set of competitive human services programs. Dudes also said the all‑funds operating budget for FY26 is just under $1.3 billion and that capital resources in the general capital budget total approximately $129,000,000, of which the first year railway trust disbursement is $56,000,000.
Ending: Council members acknowledged receipt of the documents Friday before the holiday weekend and said they would continue to review details. The committee filed the budget presentations for further consideration; additional questions and follow‑up opportunities were scheduled next week.
