In a stroke of luck, a special public transit fund set up by the formal Liberal government will save the City of Whitehorse $430,000 and result in three free buses for city ratepayers.

City manager Dennis Shewfelt said Wednesday he and other city officials were pleased with the news that federal transit funding will likely save the city nearly half a million dollars.

The federal transit funding resulting from federal NDP Leader Jack Layton's budget amendment, along with other strategic funding, is transferred from Ottawa and held by the Yukon government until disbursed.

Layton's budget amendment included a variety of concessions made by former prime minister Paul Martin in exchange for the NDP's support for the Liberal minority government in a non-confidence motion the Liberals won in May 2005.

The concessions made by Martin included more funding for public transit, reducing corporate tax cuts, lowering costs for education, cutting pollution, building affordable housing and an increase in foreign aid.

'The money will stay in the transit equipment replacement fund,' Shewfelt said. 'We could get another bus ... it will be up to council to decide what to do with the money.'

Earlier this year, the city ordered three low-floored buses to add to its fleet under the Municipal Rural Infrastructure Fund (MRIF).

MRIF calls for a one-third municipal, one-third territorial and one-third federal funding contribution for specific projects.

The city had allocated $430,000, the cost of one bus, in this year's budget.

Under the MRIF application, the city's $430,000 was to be matched by the territorial and federal governments, meaning the city was able to leverage three buses for the price of one.

'Under MRIF, we were able to turn one bus into three,' Shewfelt said.

Whitehorse was in line to receive the special transit funding resulting from Layton's 2005 budget amendment for one simple reason, Shewfelt said.

'We are the only ones in the Yukon with a public transit system.'

Shewfelt said the company manufacturing the buses, Nova Bus Ltd. of Quebec, has informed both he and transit manager Dave Muir the buses will likely be ready for this December in time for the 2007 Canada Winter Games.

'If the manufacturer can meet the timelines, and they say they can, we'd have them in time, he said.

'Our goal is to have them for the Games.'