Council authorizes FTA Section 5307 grant; hears public concerns about proposed Go Gastonia fare increase

The council voted unanimously to authorize a resolution allowing the city to apply for Federal Transit Administration (FTA) Section 5307 funds that staff say will reimburse operating and capital costs for Go Gastonia and related transit services. Director of Transportation Randy Gates told the council the application seeks an apportionment from federal fiscal year 2022 and that the program is a reimbursement grant, typically drawn down monthly.

Gates described the grant as an 80/20 federal/local program. He said the FTA allocation being pursued is for federal fiscal year 2022 and would be spent across federal fiscal years 2027 and 2028 as projects and operations require. Gates summarized the planned use of funds, including rolling stock replacement, preventative maintenance and a required security allocation (1% of the grant) for improvements such as lighting and cameras.

Separately, Gates presented a proposal to change the Go Gastonia fare structure, which he said would be considered as part of the FY2027 budget and fee schedule. The principal changes under consideration are increasing the regular fare from $2.50 to $3.00 and raising the reduced fare (for riders 65+ or riders with disabilities) proportionally to $1.50, plus a possible distance‑based surcharge for rides whose straight‑line origin‑to‑destination distance exceeds 5 miles. Gates said staff conducted public engagement that included pushing an online survey to more than 10,000 account holders and gathering 208 responses.

Gates read themes from the public outreach, noting riders asked for more drivers, shorter wait times and better reliability. He also read representative comments opposing an increase because Go Gastonia is “the only affordable transportation for Gastonia” and concerns that a distance surcharge would “punish the patron” in a large city. Staff projected that the fare increase would net roughly $71,000 and a 5‑plus‑mile surcharge would add about $14,200 based on current usage, for a combined additional revenue estimate of about $85,000. Gates emphasized that fare revenue offsets local match obligations on federal grants rather than covering the system’s full cost; he said the system’s current cost is about $16.35 per ride.

What the council did: Council held the required public hearing for the grant and then passed the resolution authorizing the FY2022 FTA Section 5307 grant apportionment so staff can submit the application. The fare proposal was presented for public involvement and will be considered later as part of the FY2027 budget and fee schedule; no fare increase vote occurred on May 4.

What’s next: The city will submit the FTA application and then work with NCDOT and the regional MPO to amend transportation improvement programs as needed. Any fare changes will be considered during the budget process and will require further public notice and a formal decision.