As the city plans to cut back transit service this year, it's pondering a bus system that could end up costing taxpayers more in the coming years.

Whitehorse Transit manager Dave Muir confirmed Wednesday afternoon the city is looking at moving to an interline system to replace the current structure where all buses come into and leave the Ogilvie Street terminus.

"We're pretty excited about this," Muir said of the possibility of the new system.

One of the problems with a central location is that it doesn't provide the most direct service for most riders, forcing most transfers to be made at Ogilvie.

During the 2007 Canada Winter Games, the city ran more of an interline system and learned a lot from the experience – what works, what doesn't and what could be improved on, Muir said.

The interline system would enable the city to tailor its transit schedule to specific routes.

With Riverdale being a normally busier route, buses may run more often there than in Lobird, which doesn't have the population base to fill buses as frequently, Muir said.

Some routes might run buses every 15 minutes while others could be staggered every half-hour or longer if there's not as large a demand.

It could also mean setting some service standards so that if ridership on a particular route falls below a certain number, the schedule could be adapted to be less frequent.

"It really gives some good flexibility," Muir said.

The possible schedule and routes are still being worked out by Transit's internal scheduling committee, made up of three drivers and Muir. A city planner is also working with the committee on the concept.

The group plans to bring a draft proposal to city council in the spring.

After looking at issues coming out of the draft, they would produce firmer plans to take to council in early 2010. It would then be up to council to decide whether to go ahead with the new system.

As Muir noted, coming up with transit schedules and routes is not as simple as deciding a bus will go down this or that road at a particular time.

Officials have to make sure roads are up to the right standards, that drivers have adequate time to make the route, and look at other factors, he said.

Along with transit officials working on new routes, the process can involve any number of city departments from, in this case, planning to bylaw, depending on the circumstances, he said.

"It's a complicated process," he said.

As officials look at changing how the routes are run, also under consideration is how the system might move into the next five years as new roads and developments come on line, including Whistle Bend at Porter Creek's lower bench, Ingram next to Arkell, the new area in Takhini North and the Hamilton Boulevard extension.

There may be 1,001 ways to serve the current and new subdivisions in Whitehorse, but coming up with the best way is a challenge, Muir said.

And while the city looks at cutting back its service this year in an effort to keep its property tax hike at no more than four per cent, it's expected a new interline service would end up costing the city more to operate.

The proposed 2009 budget allocates $2.5 million to running the buses. Provisional budgets would see the city spend $2.6 million on running the system in 2010 followed by $2.7 million in 2011.

Muir suggested the new system could result in more riders, bringing more cash into the city, which would, in turn, cost the city less to operate.

Though it's expected to cost more, the exact bill for the proposed new service is still unknown, Muir said.

"We won't know figures until we get the routing schedule down," he said.

In the meantime, council will vote Feb. 23 on the operating budget, with a public hearing set for early in the month.

Muir added he can appreciate the proposed cuts to bus service, including the end of the pilot downtown loop project and cancelling Friday evening service, will inconvenience a number of riders. However, the services proposed to be cut are underused, he said.

Of the 630,000 bus rides people took last year, 4,000 involved the Friday night service.

A public hearing on the operating budget is set for Feb. 9.