He said the small decrease in bus use was in part a result of falling petrol prices, which meant more people were likely to drive.
New Zealand Transport Agency figures showed almost 320,000 trips were taken on Northland buses last year, including 60,000 65-year-old plus passengers using the SuperGold Card.
This was about 6360 trips per week, or 1590 passengers using the bus four times a week.
The council received a targeted fee from ratepayers to run the bus services. This also funds the Total Mobility Service to transport people with impairments preventing public transport use. The annual rate for Whangarei residents was $13.44 per property and Kaitaia's was $15.69.
Since last year the Mid North has had a trial bus service that will be in place until at least 2018. During this period the council will analyse the service and apply for ongoing central government funding.
Mr Powell said the Kaitaia and mid-North bus services had started from a low passenger base and it would take time to build numbers of regular users.
"In your smaller rural areas you don't have the sheer volume... so you're always going to struggle. You've got a longer distance so people say, 'I might as well use the car'. So you have to try make it attractive, and one of those is trying to keep the fare down."
Last year NZTA and the council together put $440,000 into the development of public transport infrastructure. Bus services cost almost $1 million a year to run, before fare recovery was counted.
Public transport commentator Matt Lowrie said in smaller cities with little congestion and low parking costs, it was difficult to attract people to use public transport.
"It's primarily used as an option of last resort rather than a choice - only those that can't drive or really don't want to drive," Mr Lowrie said.
NZ Transport Agency spokesperson Robert Brodnax said many councils were undertaking reviews of their public transport networks to investigate improvements and the service's value for ratepayer and taxpayer money.
Mr Brodnax said public transport had significant societal value.
"An important function public transport plays is providing access for those who have limited transport alternatives, for example the young, the elderly, people without access to a vehicle, and those with medical issues or disabilities."