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Public Hearing - FY2028 5311 Administrative (Non-Urbanized Area Formula Program) Transportation Grant Application and FFY2026 5307 Urbanized Area Formula Funding Application
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INFORMATION CONTACT:
Theresa Torres, Human Services Agency - Transportation, Director, 704-283-3598
ACTION REQUESTED:
Conduct a public hearing to accept public comments regarding the application for funding through the FY2028 5311 Administrative Grant and FFY26 5307 Urbanized Area Formula Funding Application.
PRIOR BOARD ACTIONS:
None.
BACKGROUND:
5311 Administrative Transportation Grant Application (FY2028)
The annual 5311 Administrative (Non-Urbanized Area Formula Program) is intended to provide financial assistance for the support of public transportation services which are open to the general public on a regular and continuing basis, and to enable maximum feasible coordination with other rural transportation services. 5311 funds can be used for the costs of transit planning activities, transit operations, and the purchase of capital equipment or facilities to aid in the provision of transit services in rural and small urban areas, as well as provide funds for state-level administration.
Union County Transportation's 5311 application is submitted only for Administrative expenses and includes no operational components. This 5311 Administrative application will be reviewed by our NCDOT Mobility Specialist, who will then provide a recommendation to the NC Board of Transportation, which is responsible for determining the final award amounts. The federal share for eligible 5311 administration costs may not exceed 80% of the project's net cost. The State share is 5 percent, and the local share is 15 percent of eligible costs. However, State funding is subject to State appropriations and availability of funds. Historically, State funds have been made available, but starting in FY2021, NCDOT has directed local governments to be prepared to cover the full 20 percent share, with the assumption that State funds may not be available. The County's 5311 Administrative funding level for FY2028 will be $284,825, which includes 80% Federal funding ($227,860) and County funds of a maximum 20% ($56,965). If State funding is awarded at the expected 5% ($14,241), then the local share would be reduced to 15% ($42,724).
The FY2028 grant application for 5311 Administrative funds is due October 2, 2026. It will cover a one-year performance period from July 1, 2027, to June 30, 2028.
5307 Urbanized Area Formula Funding Application (FFY2026)
The 5307 Urbanized Area Formula Funding program makes federal resources available to urbanized areas for transit capital and operating assistance in urbanized areas and for transportation-related planning. Eligible 5307 activities include planning, engineering, design, and evaluation of transit projects and other technical transportation-related studies; capital investments in bus and bus-related activities such as replacement, overhaul, and rebuilding of buses, crime prevention and security equipment and construction of maintenance and passenger facilities; and capital investments in new and existing fixed guideway systems including rolling stock, overhaul and rebuilding of vehicles, track, signals, communications, and computer hardware and software. All preventive maintenance and some Americans with Disabilities Act complementary paratransit service costs are considered capital costs. Operating assistance is only an eligible expense for urbanized areas with populations less than 200,000.
5307 funds allocated to the Charlotte urbanized area are distributed using a formula that considers population, bus fleet, and transit service provided in its urbanized area outside of Charlotte, which includes the remainder of Mecklenburg County, Iredell County, York County, and Union County.
Based on the current distribution formula created by the Charlotte Area Transit System (CATS)/Metropolitan Public Transportation Authority (MPTA) and approved by the Charlotte Regional Transit Planning Organization (CRTPO), Union County will receive up to $1,542,387 in Federal 5307 funds from FFY26. This funding will be used for both operating expenses, which require a 50% local match, and capital expenses, which require a 20% local match.
The 5307 Grant will result in an award of Federal Fiscal Year (FFY) 2026 Federal Transportation Administration (FTA) funds to Union County. Funds awarded during a given fiscal year are initially awarded for a one-year period of performance, but that may be extended if needed to enable them to be drawn down for five years after the start of the federal fiscal year of the award. Thus, funds awarded for the 5307 application can be drawn down through June 30, 2031.
In Union County, 5307 operational-related services are currently provided using demand response, subscription, and contracted fixed-route service. These services are rendered by Union County Transportation, or its subcontractors, and CATS/MPTA. Union County’s Transportation and Planning staff have developed a list of activities for these funds, which include paying for 50 percent of the cost of the existing Union County 74X Express bus service and provision of demand-response service in the urbanized portions of the County. The funding used for capital-related items will be used for the purchase of security-related items as required by the 1% Security Minimum Requirement and facility renovations.
FINANCIAL IMPACT:
None.