Clayton gains UZA transit eligibility; staff recommend interlocal agreement and a town–county match for a transit study

Ben Howell explained that the 2020 census urbanized-area designation makes Clayton eligible to receive federal transit formula funds through an urbanized-area (UZA) agreement, with Raleigh as the designated recipient. "Clayton is now an urbanized area, and what that does is it makes Clayton eligible for federal transit funds," Howell said, noting a temporary administrative agreement could allow towns in the UZA to access formula funding without creating new administrative structures.

Town staff described plans to bring an agreement to the council for consideration (a public comment period and CAMPO committee process were noted). Staff outlined a likely local-match split for an initial transit study and a potential 50/50 town–county cost share for the study, with a total study cost in the neighborhood of $250,000–$300,000 and federal funds covering 80% where applicable. Staff also said recurring formula funding for the UZA could be on the order of roughly $1,000,000 annually, subject to program limits and eligible uses; exact allocations and matches remain under discussion.

Council asked about whether Archer Lodge or other municipalities would join the agreement, and staff said the final agreement could include multiple towns and that details on local-match shares remain under negotiation. Staff recommended moving forward with the transit study procurement and continued coordination with CAMPO and county partners.