TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
FROM: Tyffany L. Neal, MPA, Transit Director
Jeffrey Yates, Assistant City Manager
DATE: September 22, 2025
RE:Title
Accept Federal Transit Administration Grant NC-2025-049 and Adopt Capital Project Ordinance 2026-32 to Appropriate Federal and Local Funds Title
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Executive Summary:
The City has been awarded a grant from the U.S. Department of Transportation through the Federal Transit Administration (FTA) in the amount of $453,924. This grant allocation is specifically for Transit capital projects.
To appropriate these funds, along with the required local match, City Council is requested to accept the grant award and adopt Capital Project Ordinance (CPO) 2026-32.
This ordinance authorizes the appropriation of a total of $453,924, which includes $363,298 in federal grant funding and $90,626 in required local matching funds. The funds will be used to supplement funding for a replacement diesel bus, capital maintenance and facility improvements at Transit’s Garage as a result of the recent acquisition of Transit’s new battery electric buses (BEBs).
The $90,626 local match will be provided from the Transit Operating Fund.
Background:
The FTA provides federal grant funding to support eligible public transportation projects through several programs. The Fayetteville urbanized area receives an annual apportionment under the FTA’s Section 5307 Urban Formula Program. After identifying eligible projects and priorities, Transit staff submit a formal grant application to the FTA, which outlines in detail the specific uses of the funds. These funds are crucial in supporting both the operational and capital needs of the City’s public transit system.
These actions are necessary to ensure the timely and efficient use of available federal funds and to advance the City’s transit operations and infrastructure projects.
Issues/Analysis:
None.
Budget Impact:
The required local match of $90,626 is provided by a transfer from the Transit Operating Fund.
Options:
1) Accept Federal Transit Administration Grant NC-2025-049 and adopt Capital Project Ordinance 2026-32 to appropriate the grant funds and corresponding match.
2) Do not accept Federal Transit Administration Grant NC-2025-049 or adopt Capital Project Ordinance 2026-32 and provide further guidance to staff.
Recommended Action::Recommended Action
Staff recommends that the Council move to accept Federal Transit Administration Grant NC-2025-049 and adopt Capital Project Ordinance 2026-32 to appropriate the grant funds and corresponding match.
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Attachments:
FTA Grant NC-2025-049
Capital Project Ordinance 2026-32