The fare-free service, which started Jan. 2, will be financed by transit funds from Chapel Hill and Carrboro in addition to an increase in UNC student fees.
The two towns will take on 60 percent of the costs, leaving UNC to fund the remaining 40 percent.
The University will charge undergraduate students an additional $8.49 per semester in fees, and summer school students will be charged an extra $1.49 per credit hour.
Chapel Hill Town Council member Flicka Bateman said the system's benefits will take time to come to fruition but that eventually they will be worth the investment. "The town, just looking at it from a financial point of view, really felt like it was good move," she said.
Carrboro Board of Aldermen member Diana McDuffee said the system will not be without its problems.
"I think the lack of talking to each other about issues regarding the bus has to do with the fact that Chapel Hill is the body that operates the bus systems, and we just forget sometimes what kinds of things are operational issues and what kinds of things really need discussions by partners in the system," she said.
Chapel Hill Transit serves as a hub for housing and maintaining the buses for both the towns and UNC.
Town Council member Jim Ward said in order for the system to succeed, the towns need to cooperate on the most basic level. "Communication is so obvious, and still we do an inadequate job of it sometimes," he said.
The most recent example of miscommunication came in mid-November, when the council was given a presentation that addressed putting advertisements on buses as a way of funding the fare-free service.