The Otago Daily Times on Tuesday reported the Otago Regional Council's draft annual plan proposed a targeted rate of about $526,000 for Queenstown ratepayers in the 2010-11 financial year for the extra bus services.
The services were to have started last November, but were delayed because the ORC was waiting on funding approval from the New Zealand Transport Agency.
The ORC applied for $2.45 million to fund its Wakatipu Transport Strategy, which included plans to expand transport services, in April last year.
Preliminary funding for the three-year trial was approved by NZTA in November and the services are now due to begin on July 1.
They will include bus routes served by Connectabus, a private Queenstown company, but if negotiations are successful the routes will be extended to include more residential areas at Kelvin Heights, Arthurs Point, Goldfield Heights, Quail Rise and Lake Hayes Estate.
The funding will also go towards marketing and timetable information, bus shelters on feeder routes, electronic ticketing, three "real-time" information boards and transponders on all buses.
ORC policy and resource planning director Fraser McRae, of Dunedin, said the council was in negotiations with Connectabus to run the extensions as "integral parts of a network in Queenstown".
"They are the only commercial operator in the area at the moment."
Who would set fares - and how much those fares cost - was being negotiated.
"The service that's going in isn't competing with the current service . . . it's extending that service into the residential areas.
"It will mean more buses and it may well mean different styles of buses . . . there may be smaller buses used."
Connectabus owner Ewen McCammon said discussions with the ORC were "coming to a conclusion".
If the negotiations were successful, six new buses would be required to service the extended routes. Some of those would be 24-seat buses used on "feeder services".
Feeder areas would likely be Arthurs Point, Quail Rise, Kelvin Heights and Lake Hayes Estate, he said.
"We operate a commercial service. The feeder systems are to add on other areas.
"The system we're operating now will be beefed up as well."
Mr McCammon said that might mean better frequency and more direct routes, with "express systems" for people to travel in a more timely manner.
Mr McRae said the $2.45 million obtained from NZTA was for the three-year trial, which would be assessed "on its success or otherwise".
"There are three possible outcomes.
"If nobody gets on the bus, that's the end of it.
"If it's really successful Connectabus, or some other operator, may register the service as commercial.
"A third option is that there is sufficient interest to keep the subsidy for a period of time."
Queenstown Lakes Mayor Clive Geddes believed the new bus services would prove popular, particularly given "the alternative ways of getting to work will increase in price".
"We've just seen an 8c increase in the price of petrol and there is every expectation that will continue into the future [and] the council has just readjusted the CBD parking costs.
"The price of public transport has to be seen in context of all of those things.
"The other ways of getting to work and parking will become more expensive, not less.
"As a community, we are fortunate that we can actually drive a vehicle into Queenstown . . . that's probably not going to be the case in the [medium-term] future."
QLDC transportation manager Denis Mander said the council had already installed 17 new bus shelters over the past two years.
It would now instal about 16 more shelters, primarily at "inbound" stops. However, not all of those would be in place by July 1, he said.
Each bus shelter cost about $11,000, of which 60% was subsidised by central Government.
Shelters would be installed at Peninsula Rd, Nairn Square and Quail Rise, with four planned for Gorge Rd, which would also better service the Coronet Peak skifield.
Additionally, the QLDC would look to install about 24 bus stops, which were relatively inexpensive to establish, comprising a sign and road markings.
Bus stops would be set up primarily at "outbound" points, Mr Mander said.
Connectabus' current routes and pricing schedule
> Zone 1: Sunshine Bay; Fernhill; Aspen on Queenstown; Mercure Resort; Queenstown Lodge; Heritage Resort; Rydges Hotel; Queenstown; Copthorne Hotel; Millennium Hotel; Kingsgate Hotel; Frankton Hotels; Hensman Rd; Sherwood Manor; Gold Ridge Hotel; Marina Heights; Frankton Corner; Frankton Bus Shelter; Queenstown Airport; Remarkables Park Shopping Centre.
> Zone 2: Queenstown Events Centre; Lake Hayes Estate.
> Zone 3: Lake Hayes Estate; Arrowtown; Millbrook Resort; Arrowtown South.
Single Trip
Zone 1: $6 (Adult), $3 (Child).
Zone 1 & 2: $7 (Adult), $4 (Child).
Zone 1, 2 & 3: $8 (Adult), $5 (Child).
10-Trip Concession Tickets
Zone 1: $40 (Adult), $19 (Child).
Zone 1 & 2: $47 (Adult), $25 (Child).
Zone 1, 2 & 3: $54 (Adult), $33 (Child).
Day Pass
Zone 1 + Zone 2 + Zone 3: $19 (Adult), $9.50 (Child).
5 Day Unlimited Pass
Zone 1 + Zone 2 + Zone 3: $35 (Adult), $25 (Child).
