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Craven County to accept federal Section 5307 funds, approve MOU with New Bern for MPO planning
Summary
The Craven County Board of Commissioners approved a memorandum of agreement authorizing the county to receive Federal Transit Administration Section 5307 funds and subgrant them to the New Bern Area MPO to continue regional transportation planning after deurbanization removed Section 5303 funding.
Craven County commissioners on July 21 approved a memorandum of agreement (MOU) authorizing the county to serve as the direct recipient of Federal Transit Administration (FTA) Section 5307 funds and to pass planning funds to the New Bern Area Metropolitan Planning Organization (MPO).
The action follows a presentation by county staff and Deanna Treble, the New Bern Area MPO administrator, who outlined funding changes after the area lost urbanized status in the 2020 census. Treble and county staff said Section 5303 funds that previously supported MPO planning will end this federal fiscal year; Section 5307 funds are available instead but require a larger local match.
Treble told commissioners that CARTS (the regional transit operator) has obligated operations funding that it will not be able to expend for planning, leaving an available balance the MPO could use. County staff said Craven County would be the direct recipient of Section 5307 funds and the MPO would be a subrecipient under the proposed MOU. The board was asked to accept the information, approve the MOU with the city of New Bern and authorize the county manager to execute related agreements.
The presenters explained the key difference in local cost-sharing: Section 5303 had been paid 80% federal / 10% state / 10% local; Section 5307 lacks the 10% state match and therefore requires a 20% local match. Under the proposed arrangement the 20% local share would be split pro rata among MPO member jurisdictions by population, per the MOU. Staff said the plan was to execute an agreement by October so the MPO could apply for Section 5307 planning funds in January for fiscal year 2027.
Commissioners asked for a brief explanation of the MPO’s role; Treble said the MPO plans for all modes of transportation across the urbanized area defined by the census, including New Bern, Trent Woods, River Bend, Bridgeton and portions of Craven County. A webinar hosted by the UNC School of Government on August 13 was announced as an opportunity for commissioners and staff to learn more about transportation planning in North Carolina.
The board moved, seconded and approved the MOU and delegated authority to the county manager to sign the necessary documents.
Why it matters: the change moves MPO planning from a funding stream that included a state match to Section 5307, which keeps more federal money in the local planning process but raises Craven County’s local match responsibility. The MOU formalizes roles and the pro rata method for splitting the 20% local match among member agencies, which changes local budget planning for jurisdictions participating in the MPO.
