The council intends to introduce contracted passenger transport services for the Queenstown area in a 32-month trial, as part of the first stage of the Wakatipu Transport Strategy.
However, delayed approval of funding by the New Zealand Transport Agency had meant the council could not rate for the local share of the funds for the 2009-10 year as it had hoped.
Council corporate services director Wayne Scott said in a report to the finance and corporate committee in Dunedin yesterday the transport agency agreed in November it would fund 50% of the estimated total cost of $3.13 million for bus services in the area, subject to conditions.
It would fund 60% of an estimated $1.5 million for infrastructure, electronic ticketing and "real-time information", subject to conditions.
The report said a special rating district for Queenstown passenger transport was set up under the council's long-term plan in June last year to fund the local share of the costs.
However, no rating was done, the report said.
Now funding was secure, the council wanted to start preliminary work, including contract negotiation, promotion and marketing and infrastructure provision, to get the service started by June 1.
The estimated cost is $830,000.
The Queenstown Lakes District Council would meet the local share for the infrastructure component, leaving local share funding of about $175,000 for the regional council to provide this financial year, Mr Scott said.
Councillors yesterday recommended approval be given to advance the local share funding, and for it to be subsequently recovered from the Queenstown special rating district.
