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Grant Application – Transportation FY2027 Combined Capital Grant, FY2027 5311 Administrative (Non-Urbanized Area Formula Program) and Federal Fiscal Year (FFY) 23, 24 & 25 5307 Urbanized Area Formula Funding Application
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INFORMATION CONTACT:
Theresa Torres, Human Services Agency, Transportation Director, 704-283-3598
ACTION REQUESTED:
Authorize the County Manager to submit the associated grant applications and make necessary assurances and certifications associated with the grant applications as substantially consistent with this agenda item, which includes the authorization to execute documents, or delegate electronic execution of documents when use of the federal award management system is required, related to award of the grants and budget funds as appropriate.
PRIOR BOARD ACTIONS:
September 2, 2025, Regular Meeting, Agenda Item # 25-537 – Conducted Public Hearing – FY2027 Combined Capital Transportation Grant Application.
September 2, 2025, Regular Meeting, Agenda Item # 25-538 – Conducted Public Hearing – FY2027 5311 Administrative Transportation Grant Application.
September 2, 2025, Regular Meeting, Agenda Item # 25-535 – Conducted Public Hearing – FFY23, 24, & 25 5307 Urbanized Area Formula Funding Grant Application.
BACKGROUND:
Union County is seeking funding through three federal grant programs—Combined Capital, 5311 Administrative, and 5307 Urbanized Area Formula—to support the continued provision of public transportation services that are accessible to the general public on a regular and ongoing basis. These grants support both rural and urban transit operations and infrastructure, ensuring the County can maintain, operate, and expand its transportation services to meet current and future needs.
Combined Capital Program (FY2027)
The Combined Capital Grant provides financial assistance for the replacement of public transportation vehicles and other capital needs. This program utilizes federal funds from Sections 5311, 5307, and 5339, enabling community transportation systems like Union County Transportation to consolidate their capital needs into one application. The funding will reimburse costs for replacement vehicles that have met NCDOT’s useful life threshold of 100,000 miles, including conversion vans, lift vans, minivans, and Light Transit Vehicles (LTVs). It also covers other capital expenditures such as required NCDOT vehicle lettering, radio equipment, and bi-fuel conversions.
For FY2027, Union County is requesting funding for the replacement of three (3) 22’ LTVs with wheelchair lifts, totaling $427,701. The breakdown includes:
• Federal Share (80%): $342,160
• Local Share (up to 20%): $85,541
o If State funding (10%) of $42,770 is awarded, the local share would be reduced to $42,771.
The application is due October 6, 2025, and covers the performance period from July 1, 2026 – June 30, 2027. Vehicles will be procured via North Carolina State contracts or in accordance with applicable procurement laws.
5311 Administrative Grant (FY2027)
The 5311 Administrative Grant, under the Non-Urbanized Area Formula Program, supports administrative costs related to public transportation in rural areas. Funds are used for planning activities, administrative personnel, compliance, and coordination with other transit services. Union County's application does not include operational funding and is solely for administrative expenses.
For FY2027, Union County is requesting $276,529, with the following cost share:
• Federal Share (80%): $221,223
• State Share (estimated 5%): $13,826
• Local Share (15%): $41,480
o If State funds are unavailable, the local share would increase to 20% ($55,306).
The grant performance period is July 1, 2026 – June 30, 2027, and the application will be reviewed and recommended for funding by the County’s NCDOT Mobility Specialist and the NC Board of Transportation.
5307 Urbanized Area Formula Program (FFY23–FFY25)
The 5307 Program provides capital and operating assistance for transit services in urbanized areas. Eligible expenses include operations, planning, preventive maintenance, paratransit services, security and safety upgrades, and facility improvements. Union County, as part of the Charlotte urbanized area, receives 5307 funding through a regional formula established by the Charlotte Area Transit System (CATS) and approved by the Charlotte Regional Transportation Planning Organization (CRTPO).
Based on the current distribution formula Union County will receive up to:
• $2,041,740 in Federal 5307 funds from FFY23.
• $2,353,090 in Federal 5307 funds from FFY24.
• $2,402,267 in Federal 5307 funds from FFY25.
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) 2023, (FFY) 2024, and (FFY) 2025 Federal Transportation Administration (FTA) funds to Union County. Funds awarded during a given fiscal year are initially allocated for a one-year period of performance, but this may be extended if necessary to enable them to be drawn down over a five-year period after the start of the federal fiscal year of the award. Thus, funds awarded for the:
• FFY23 5307 applications can be drawn down through June 30, 2028.
• FFY24 5307 applications can be drawn down through June 30, 2029.
• FFY25 5307 applications can be drawn down through June 30, 2030.
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. Union County’s Transportation and Planning staff have developed a list of activities for these funds, which include paying 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 allocated for capital-related items will be utilized for the purchase of security-related items as required by the 1% security minimum requirement, safety-related items as required by the 0.75% safety minimum, and for facility renovations.
FINANCIAL IMPACT:
1. Combined Capital Grant
• Total Request: $427,701
• Federal Share (80%): $342,160
• State Share (Estimated 10%): $42,770*
• Local Share (Max 20%): $85,541*
2. 5311 Administrative Grant
• Total Request: $276,529
• Federal Share (80%): $221,223
• State Share (Estimated 5%): $13,826*
• Local Share (Max 20%): $55,306*
3. 5307 Urbanized Area Formula (FFY23–FFY25)
• Total Request: $6,797,097
• Federal Share: $4,178,652
• State Share: Not Applicable
• Local Share: $2,618,445
*Local share may decrease if State funds are awarded.