NEORSD adopts FY26 budget, outlines $1.2B five-year sewer capital plan

NEORSD adopts FY26 budget, outlines $1.2B five-year sewer capital planThe Northeast Ohio Regional Sewer District has approved its 2026 operating and capital budgets, detailing plans to cash-fund the majority of its $1.2 billion capital program through 2030 while advancing key tunnel and stormwater contracts.

The board approved a 2026 sewer capital budget of $293.7 million and a stormwater capital budget of $19.6 million.

NEORSD plans to utilize cash to fund over $764 million of its $1.2 billion sewer capital program from 2026 through 2030.

The district awarded a $3.99 million design contract to Jacobs Associates (dba Delve Underground) for the Edgewater Beach Surge Tunnel, which has an estimated construction cost of $18.5 million.

A $13.9 million construction contract was awarded to Marra Services, Inc. for the Renewal of Culverted Streams IIA project, marking the district's largest stormwater construction award to date.

The Northeast Ohio Regional Sewer District (NEORSD) Board of Trustees formally adopted the district's fiscal year 2026 operating and capital budgets on March 19. The approved 2026 capital budgets include $293.7 million for sewer infrastructure and $19.6 million for stormwater projects. During the budget summary, the board highlighted the district's comprehensive 10-year financial plan. Notably, NEORSD intends to utilize cash to fund over $764 million of its sweeping $1.2 billion sewer capital program spanning 2026 through 2030. Operating expenses for 2026 were set at $156.8 million for sewer—a 1.7% increase—and $27.9 million for stormwater, representing a 22.8% decrease from 2025. Debt service payments for the year are projected at $122.8 million. Moving immediately to execute its capital goals, the board authorized a $3.99 million professional services agreement with Jacobs Associates, doing business as Delve Underground. The contract covers pre-design through construction administration for the Edgewater Beach Surge Tunnel. A staff member noted the project will take about 44 months to complete and involves constructing 1,350 linear feet of 10- to 12-foot diameter tunnel to eliminate the outfall known as O-69 at Edgewater Beach. The estimated construction contract for the tunnel is projected at $18.5 million. In the stormwater sector, the board awarded a $13.9 million public improvement contract to Marra Services, Inc. for the Renewal of Culverted Streams IIA project. Described as the district's largest stormwater construction award to date, the project focuses on rehabilitating severely deteriorated corrugated metal culverts along Big Creek and Mill Creek. The contractor will use custom slip lining to add structural strength and optimize flow without requiring surface excavation. The district also reported significant external funding wins to support its infrastructure efforts. The federal fiscal year 2026 Interior and Environment Appropriations Bill included $1.09 million in grant funding for the $6.5 million Big Creek West Branch repair project. Additionally, the CEO noted that member communities Parma and Parma Heights secured a combined $5.1 million in principal forgiveness from the Ohio EPA's Water Pollution Control Loan Fund for local sewer and septic abatement projects.