The NZ Transport Agency, responsible for about half of Dunedin's public transport funding, is open to the idea of a joint committee running the city's buses.
At a meeting last week, the Otago Regional Council initially rejected a proposal from the Dunedin City Council to establish a joint committee to oversee the city's bus service.
The proposal is part of the city council's submission on the regional council's 10-year plan and is likely to be considered as part of that process.
In other areas where there is joint council governance or funding model for public transport, such as Christchurch or Queenstown, the NZTA is also involved.
Its regional relationships director Jim Harland said the agency was open to the idea of a joint governance committee or group.
About half the cost of the public transport system was covered by the NZTA and the running and management was undertaken by the regional councils.
But within the system there was room for collaboration between different councils and organisations, Mr Harland said.
Such groups were valuable and co-ordinated the provision of both services and infrastructure and ensured overall value for money, he said.
Bus Users Support Group Otepoti Dunedin co-president Alex King said the group was ``stoked'' councillors had listened to the group's submission on the city council's 10-year plan.
Despite the city council not governing the bus service, dozens of submissions on the issue were made to its plan.''
An identical submission would be made to the regional council's 10-year plan, Mr King said.
Any committee or group needed to include a shared funding model, which was essential to its success, he said. Ratepayers would contribute the same amount as at present but it would be split between two rates bills.
``It is feared that with no contribution to funding, the city council involvement would carry no mana and city influence in transport policy would be minimal.''