The New Bern Board of Aldermen agreed to let the mayor and city manager decide how $20 million in city funds/services is structured for a federal grant match; approved several other items on Feb. 10, 2026.
Aldermen discuss transportation, Pay-As-You-Go utility payments, historic preservation rules, housing rehab; and approve new streetlight, mutual aid and interagency agreements, sale of city-owned properties, minimum housing penalties, zoning, parking, Electric Fund, CDBG grants, estimated Choice Neighborhood implementation grant application match, and other topics during the Feb. 10, 2026 Board of Aldermen meeting at City Hall, 300 Pollock St. in New Bern, NC.
Alderman Trey Ferguson said citizens felt blindsided and made a motion to table items No. 25 – “Consider Adopting a Resolution Prohibiting Parking in the Parcel Connecting Craven and Middle Streets.” and No. 28 — “Consider an ordinance to change Chapter 70, Section 70-227 “Two-Hour Parking Zones” to delete the easterly side of Hancock Street” so he could talk to stakeholders. Trey Ferguson (Ward 1), Sharon Bryant (Ward 2), Bobby Aster (Ward 3), Lainy White (Ward 4), Barbara Best (Ward 5) and Dana Outlaw (Ward 6) voted aye. Mayor Jeffrey Odham (of Ward 6) also voted for the motion.
Requests and Petition of Citizens
A few people shared their thoughts about item No. 28, which was pulled from the agenda, as reported here.
A citizen spoke about his experience with the process of rebuilding his house in New Bern after Hurricane Florence and voiced frustration with some officials. He asked the city to help him get back into his house. He also talked about a convicted child sex offender. The mayor hit the gavel as the citizen’s time limit (4 minutes) to speak ran out.
Consent agenda
Alderman Outlaw made a motion to move item No. 5, that called for a public hearing on March 10 to receive input on changes to the Electric Rate ordinance to the regular agenda. The aldermen approved the following consent agenda items with one vote without discussion:
-Call for a public hearing on March 10 to receive input on Michael J. Miller’s request to establish the initial zoning for a one-acre parcel at 3406 Old Airport Rd. as R-8 Residential.
-Call for a public hearing to be held on March 10 to receive input on O’Brien Family Wellness, Inc.’s request to rezone a 3.87-acre parcel at 1100 Pinetree Dr. from R-10A Residential to C-3 Commercial.
-Initiate the upset bid process for the sale of vacant 0.116-acre residential parcel at 927 Sampson St. in Ward 5. Denise Delgado and Charles K. Nobles submitted a bid of $3,200 to purchase property that has a tax value of $6,000. It was acquired by the city and Craven County in May 2018 through tax foreclosure.
-Initiate the upset bid process for the sale of a vacant 0.119-acre residential parcel at 1427 Lincoln St. in Ward 5. Kenneth Fairchild submitted a bid of $4,250 to purchase property that has a tax value of $8,500. It was acquired by the city and Craven County in May 2016 through tax foreclosure.
-Approving draft minutes from the Jan. 7 retreat and the Jan. 13 regular meeting.
Regular agenda
Dana Outlaw noted some resident retail customers in New Bern receive electric service from the city and others receive it from Duke Energy Progress. He said municipalities like Kings Mountain, Fayetteville and Reedsville went to NTE, a provider out of Florida, who provides power through natural gas co-generation. He said he thought they needed to explore another rate structure with another provider.
Trey Ferguson proposed establishing an advisory committee of citizens who meet with the director of the Department of Public Utilities so there could be more investigation into the co-generation rate modernization that is outside their monthly meetings.
He said they weren’t going to be able to cut rates anytime soon because Duke is passing on the 4.5 wholesale cost to us the city in March or April.
Alderman Best said she thought they needed to hear from Director Charles “Charlie” Bauschard because he runs the Electric Department.
Ferguson said the director needed to be intimately involved and they needed to have conversations with NCEMPA (North Carolina Eastern Municipal Power Agency). He said he didn’t think the full board should be involved and recommended an ad hoc committee.
The aldermen approved a motion to talk about creating an ad hoc group at the March 10 meeting.
Editor’s note: 50 years ago, New Bern’s Board of Aldermen agreed to partner with Apex, Ayden, Belhaven, Benson, Clayton, Edenton, Elizabeth City, Farmville, Fremont, Greenville Utilities Commission, Hamilton, Hertford, Hobgood, Hookerton, Kinston, La Grange, Laurinburg, Louisburg, Lumberton, Pikeville, Red Springs, Robersonville, Rocky Mount, Scotland Neck, Selma, Smithfield, Southport, Tarboro, Wake Forest, Washington, and Wilson to form the North Carolina Municipal Power Agency 3, now known as the NC Eastern Municipal Power Agency and jointly purchase ownership interest in several Carolina Power & Light’s nuclear and coal-fired generating units at four power plants and issued municipal bonds to finance the projects, as reported here. CP & L was rebranded as Progress Energy and merged with Duke Energy Progress in 2012. NCEMPA’s member utility customers repaid the bonds principal and interest, which was reported to be several billion dollars. The Board of Aldermen agreed to NCEMPA’s sale of their ownership interest in DEP’s power plants in 2015, the debt was refinanced and reduced electric rates by about 18 percent between 2015 and 2017. The city continues to purchase wholesale power through a take-and-pay agreement with NCEMPA and re-sells it to customers.
Metropolitan Planning Organization
New Bern Area Metropolitan Planning Organization Director Abigail McClay told the board that they are considering expanding the MPO boundary to include Cove City, Dover, Vanceboro, and Havelock so they can plan for growth opportunities outside the current boundary. She also said Craven County expressed interest in hosting the MPO instead of the city of New Bern which would require a memorandum of understanding. The MPO has a Transportation Advisory Committee and a Technical Coordinating Committee.
Historic Preservation Commission
Development Services Director Jessica Rhue shared the results of a public survey related to the city’s Historic Preservation Commission’s program, guidelines and standards and rules of procedure, and talked about a timeline for a draft of the new procedures.
Pay-As-You-Go electric utility payments
The board talked about ending the Pay-As-You-Go Utility Payment Service because it’s underutilized. On Feb. 10, the director of the Department of Public Utilities said the program costs the city about $870 a year to operate each year. Customers with no bad debt will not be required to post a deposit unless a late payment is received twice within a 12-month period. Customers with bad debt will be subject to a $500 deposit plus a 6-month installment loan to address the bad debt. The “my usage” feature will be eliminated.
The aldermen approved a motion to give 30 days’ notice to PAYG program participants and adopt the recommendations and allow the utility one-time funding of $10,000 towards the Round-up program effective April 1, 2026. The mayor also voted for the motion.
Bike and Pedestrian Advisory Committee
The board thanked the Bike and Ped Committee for their efforts and approved a resolution to dissolve the board. The mayor also voted for the motion.
Community Development Block Grant Housing Rehabilitation Program
The aldermen approved an amendment to the CDBG Housing Rehabilitation Program policies and procedures that increased spending limits from $10,000 to $20,000 for eligible houses.
New streetlight
The director of DPU said staff determined the area meets the city’s light standard, but the New Bern Police Department recommended additional lighting for pedestrian safety. “The estimated cost to the Electric Department for the installation of a 70W LED fixture on a pole is $2,085. and the monthly utility cost to Public Works will be $23.45,” according to information in the meeting packet. The aldermen approved an additional streetlight at the intersection of Racetrack Road and Elizabeth Avenue in Ward 4. The mayor also voted for the item.
Mutual Aid Agreements
-The commanding officer of MCAS Cherry Point proposed a Mutual Aid Agreement with the city for fire protection and related services. Services include: “fire interagency training and drills, interoperable radio communications, sharing and combining of resources during large-scale emergencies, natural disasters, and acts of terror to include water rescue operations, technical rescue operations, urban search and rescue, hazardous materials response, open water spill response, emergency medical services support, large pre-planned events and performing joint missions supporting our communities,” according to the packet. The aldermen approved a motion to approve the agreement. The mayor also voted for the motion.
-“The purpose of (an interagency agreement with Craven and Pamlico Counties Children’s Advocacy Center of Southmountain Children and Family Services and Other Parties) MOU is to work together to reduce childhood trauma from abuse. This is a coordinated effort among providers, law enforcement, and prosecutors to serve children and families while gathering evidence to effectively prosecute offenders. Additionally, CPCAC members provide periodic training for officers and detectives. There is no cost to the police department,” according to a memo from Police Chief Patrick Gallagher.
The aldermen approved a motion to approve the agreement. The mayor also voted for the motion.
Sale of city-owned properties
The aldermen approved a motion to approve the sale of the following city-owned properties that were acquired through the tax foreclosure process without discussion. The mayor also voted for the motion.
-Carlos Muro submitted a $2,500 bid for the purchase of the vacant 0.116-acre parcel with a tax value of $5,000 at 2204 Hartford Ave. The bid was advertised, but no upset bids were received. The property was acquired by Craven County and the city in March 2023 through tax foreclosure. If sold for this bid, the city will receive $958 and the county will receive $1,541 from the proceeds.
-BCJ Development submitted a $2,700 bid for the purchase of a vacant 0.063-acre parcel at 1016 Main Street with a tax value of $5,400. The property was acquired in September 2015 through tax foreclosure. If sold for this bid, the city will receive $539 and the county $2,160, according to a memo from the city clerk.
– Chester Freeman submitted a $2,700 for the purchase of 0.069-acre residential tract at 1039 Main St. with a tax value of $5,400. The property was acquired in March of 2024 through tax foreclosure. If sold for this bid, the city will receive $825 and the county $1,874.
-Chester Freeman submitted $2,400 for the purchase of a vacant 0.039-acre vacant tract at 1041 Main Street with a tax value of $4,800. The property was acquired in March of 2024 through tax foreclosure. If sold for this bid, the city will receive $754 and the county will receive $1,645 from the proceeds, according to a memo from the city clerk.
Local Bills
The mayor lumped resolutions for two local bills into one vote.
The Board of Aldermen talked about a provision of Senate Bill 382 that limits the local governments zoning authority and “requires the governments to obtain written consent from all affected property owners before making zoning changes that reduce development density, remove permitted land uses, or create certain nonconformities. This impacts the ability to manage growth, land-use compatibility, and development patterns. The rewrite of the city’s land use ordinance has temporarily been suspended because of this. The city seeks a local bill from the General Assembly exempting New Bern from the down-zoning provision of this bill,” according to a member from the Development Services Director Jessica Rhue. The board approved a resolution requesting a Local Bill that exempts the city from the provision of Senate Bill 382, Part III, Subpart III-K and restoring the original provisions of NCGS §1600-601(d).
Minimum Housing Code
The city is requesting a local bill to authorize New Bern to impose civil penalties for minimum housing violations, according to a memo in the packet.
The aldermen approved a motion to approve the two resolutions. The mayor also voted for the motion.
Prohibit parking
The city owns property that is currently used as a means of ingress and egress to connect the terminus of Middle and Craven Streets. The surface is paved with a passable width of 24 feet but lacks sufficient width to safely allow parallel parking. As this could interfere with safe travel, it is requested that parking be prohibited on either side of the property,” according to a memo from Director of Public Works George Chiles. The board tabled the agenda item as previously noted. The mayor also voted for the motion.
Debt Management Policy
The BOA approved a debt management policy which was “proposed to ensure debt is used prudently to finance long-term capital needs, maintain financial stability and credit quality, and promote transparency and accountability,” per a memo from Director of Finance Kim Ostrom. The mayor also voted for the motion.
300 Block of New Street
The aldermen approved changes to the ordinance for “One-Way Streets Established” to add the 300 Block of New Street in Ward 1. The 300 block of New Street is an existing two-way street located between Middle Street and Craven Street. The existing road is 23.5 feet in width and does not meet the necessary width to accommodate two-way traffic and on-street parking,” per the Public Works Director. Staff recommend “adding New Street between Middle Street and Craven Street (300 block) as a one-way street, with traffic allowed to travel east, and on-street parking to remain on southern side of block.” The mayor also voted for the motion.
Budget amendments
The mayor combined five of the following budget amendments together for one vote:
Alderman Best asked if the aldermen needed an explanation for any of the items and Finance Director Ostrom summarized the items.
-An ordinance to amend the 2019 Electric Improvements Fund to accommodate the North Carolina Department of Transportation Roadway Improvements. The city is relocating electric infrastructure within the project areas. The amendment increases the project fund by $3,937,630 to reconcile prior budget estimates with executed reimbursement agreements, per a memo from the finance director.
-An ordinance to amend the 212 Kale Road Fund, which was established in 2024 to fund the purchase and renovations of the new utilities’ facility. The project expenses exceeded the amount that was financed through an installment financing agreement — costs $2,200,000. The project expenses exceeded the amount financed and this amendment transfers $20,000 from the Electric Fund to cover $16,000 for concrete and $4,000 in additional expenses that are anticipated once staff occupy the facility, according to the finance director.
-An ordinance to amend the Roadway Improvements Fund which updates how the motor vehicle fee is recorded. It will be recorded in the General Fund and transferred to the project fund along with the $400,000 from the streets division, according to the finance director.
-An ordinance to amend the Entitlement Cities Community Development Block Grant Fund which recognizes the FY2025 CDBG award of $260,903. My Sister’s House, Catholic Charities and …” Hughes said this is tied into the Five-Year Annual Action Plan. He said they were a little late receiving the funds this year.
-Budget Ordinance amendment for Fiscal Year 2026 for: the General Fund is amended by $400,000 to reflect a change in how motor vehicle fee revenue is recorded. The Electric Fund will be amended to appropriate $20,000 from operating expenses to the 212 Kale Road Project Fund.
The aldermen approved a motion to adopt the budget amendments. The mayor also voted for the motion.
Appointments
Alderman White appointed Gary Williams to the Board of Adjustment.
Alderman Ferguson said they needed to appoint someone to the New Bern Area MPO Transportation Advisory Committee. He said they would be negotiating an MOU with other municipalities on Feb. 19. The board approved a motion to appoint Ferguson to the MPO TAC and Alderman Bryant as an alternate. The mayor also approved the motion.
Mayor Odham asked when the terms for the North Carolina Eastern Municipal Power Agency Advisory Board expire and said he believed Alderman Outlaw would be “a great asset.” Alderman Aster resigned from the alternate position on the NCEMPA advisory board and then the aldermen appointed Outlaw to the position. The mayor also voted for the motion.
City Attorney M. Scott Davis said, “You’ve probably noticed how robust your agenda has become by consolidating the meetings each month to one.” He said staff were sensitive to using the consent agenda tool to avoid anything remotely substantive.
He said the mutual aid agreements have a standing policy where the board isn’t involved in approving agreements that local agencies use “My Form.” He said there are times when federal and other agencies aren’t interested in looking at “My Form,” which could go on the consent agenda. He also talked about the use of the consent agenda.
Trey Ferguson urged staff to move items like the final sale of city-owned properties and upset bids to the consent agenda.
“Obviously we want transparency, we want discussion and insight on things that are worth reflecting upon, but those two categories were examples that there wasn’t much to talk about,” the city attorney said.
City Manager report
The city manager thanked staff for their work during Winter Storm Giana. He also talked about their municipal election options. They could shorten their term by one year; they could extend their term by a year or keep it the same. Ferguson said he thought they should have further discussion and publication on the March agenda to hear what the public wanted. He said they voiced their thoughts during the retreat.
Editor’s note: During the January retreat, Alderman Ferguson said he wanted to extend their term from 2029 to 2030 and said he really hated the idea of moving an election to partisan but from “a cost standpoint” he thought they should consider it. He said if they ask the General Assembly to move the election, they will run the risk of them turning it from nonpartisan to partisan.
Davis said a unanimous decision carried a lot more weight, but it wasn’t the law. He said it would be a local bill, and the charter would be changed.
Reginal “Reggie” Barner, the Housing Authority of the City of New Bern’s development consultant/interim executive director, told the Board of Aldermen that the city agreed to be the lead application for a Choice Neighborhoods Implementation Grant from the U.S. Department of Housing and Urban Development. He said the Housing Authority is getting “leverage letters” from partners and agencies as local commitments for a $26 million federal grant.
He said they have a letter of intent to purchase property that’s adjacent to the former Days Inn site. He also said the school board agreed to a letter of intent for the purchase of the former FR Danyus School/West Street School site. He said they weren’t asking for the city to match the infrastructure for the FR former school site “because that will all come within the development process.”
He said they would be asking the city to provide a match because the authority wants to reroute the roads and water/sewer/electric utility infrastructure at the Trent Court site.
He said they were looking at a $100 million redevelopment including Low-Income Housing Tax Credits, private funds, bank financing, and other things. And asked the city in advance for about $5 million from the city for infrastructure. When they get the award, they will also redevelop the two sites so they can move the 108 families residing at Trent Court to the other sites. He said the Housing Authority is working to demolish the 12 buildings that were damaged during Hurricane Florence.
Reggie Barner said they received about $1 million from the Federal Emergency Management Agency and $8 million has been committed to the Charles Taylor Building, which will become the authority’s offices. He said about $30 million of FEMA funds that would go towards the redevelopment.
He said they would spend about $2 million on planning, engineering and architectural fees.
City Manager Foster Hughes said the Housing Authority asked New Bern to provide about $5 million for streets, water and sewer infrastructure projects in the redevelopment zone. “We’re looking at leveraging $15 million in projects over the next 8-10 years, plus the additional amount for the road, water and sewer infrastructure to be a total of approximately $20 million for the project,” he said.
Interim Director Barner said if the city doesn’t receive the grant, they would apply for 9 percent Low-Income Housing Tax Credits. The federal government gives LIHTC allocations based on the per capita of each state. Developers apply for the tax credits and sell them to a bank and use the credits against their corporate income tax.
The development consultant/interim ED said if they received tax credits and they were lucky enough to sell each credit for $1 per credit and used a 9 percent tax credit application on a $10 million project they would only have to raise $1 million. He said they can use FEMA funds and other tax credits for the project.
He said the grant funds would help incentivize the redevelopment of people, neighborhoods and housing and they were working on getting leveraging letters from partners and talked about letters of commitment to buy the FR Danyus School and Habitat for Humanity of Craven Count. He also said they would be asking for a LOI from the city for the former Days Inn site.
Editor’s note: The aldermen have not publicly approved a letter of intent site.
He talked about several different projects that would help support initiatives.
Barner asked the New Bern Board of Aldermen to work with the city manager to provide the support that they need up to the max leveraging that Foster Hughes indicated. He has the details.
Ferguson asked them for a little more notice before they are asked to make future decisions.
Hughes asked the aldermen to authorize Mayor Odham to sign a letter regarding the leverages that will be included as part of the grant package and they would pass it around for them to see.
Alderman Ferguson said, “to be clear, the leverages are not funding commitments, it is we’re saying these are projects that we are doing in this region over the next eight years that can be included for this grant.”
Barbara Best said you’re asking us to buy in — this in no way is going to incorporate the monies that we have for the bond referendum.
Hughes said there are certain bond projects in the CNI area that would be included as leverages. He said there could be some streets that are in better condition than they are now. He said they aren’t doing a dump of bond funds in this area.
Editor’s note: The aldermen have not public voted to approve any specific bond projects, which the majority of voters approved during the October 2025 election.
Alderman White said she supported providing the letter and believed construction of new homes needed to start as soon as possible.
Ferguson made a motion to authorize the mayor to sign a letter of leverage to support the city’s application with the Housing Authority for the CNI grant application based on the projects that the mayor and the city manager identify with staff input. Trey Ferguson (Ward 1), Sharon Bryant (Ward 2), “Bobby” Aster (Ward 3), Lainy White (Ward 4), Barbara Best (Ward 5) and Dana Outlaw (Ward 6) voting for the motion. Mayor Jeffrey Odham (of Ward 6) also voted for the motion.
He said they would still move forward with the redevelopment with Low-Income Housing Tax Credits if they didn’t receive the grant.
Editor’s note: Since when does city staff request the aldermen to approve federal grant funding that included a $20 million match of city funds without adding it to the agenda and meeting packet? Since Feb. 10, 2026. The Board of Aldermen regular meetings were reduced from two meetings a month in November. The newly elected aldermen were seated in December 2025.
Meeting agendas, packets and minutes can be found here. Most meeting videos are available City 3 TV, the city’s Facebook page and the city’s YouTube channel.
Editor’s note: The original article included the Feb. 10 meeting agenda and packet information. The article was updated on March.12, 2026.
By Wendy Card, Editor. Send an email with questions or comments.