WATSON LAKE – A total of $890,000 could be rolling from Ottawa to the City of Whitehorse transit department.

The new $3.4-billion transit fund announced by the federal government is translating into cash for the territory.

The amount allocated for this year – $890,000 – is based on ridership figures for the transit system.

The territory and city haven’t discussed the details of the program yet.

However, Community Services Minister Currie Dixon said in an interview Saturday he’s “almost certain” the full funding would go entirely to Whitehorse. The capital is the territory’s only community to operate a bus system.

The minister was in Watson Lake for the Association of Yukon Communities’ annual general meeting.

As Mayor Dan Curtis put it in an interview Monday: “I’m pretty optimistic.”

It’s not entirely clear yet what projects would be eligible, nor exactly what the funding arrangement might be (if other government contributions will be required and the like), but Curtis already has some ideas in mind.

The city has already ordered two new buses with funding already budgeted for those.

However, the vehicles become an ongoing need for the city to deliver what is many residents’ main form of transportation, he said.

“It really is an essential service,” Curtis said, pointing to the expanding ridership in recent years.

Through agreements with the territory’s Department of Education and Yukon College, students at high schools and the college are offered transit passes.

High school students must choose whether to use the school bus system or city system before they are given the pass.

All full-time students at the college are provided with the service, and can simply show their student ID to ride the bus.

Ridership has also risen with the addition of evening service. That operates until 10:20 p.m., allowing staff at many shops to get home after finishing up the closing shift.

Dixon was quick to note that while $890,000 is certainly welcomed, with buses costing in the $600,000 range, it’s not a limitless pot of money coming for transit.

Along with the possibility of a new bus, Curtis also said he’d like to explore options that might allow the transit department to keep the buses inside.

As it stands, he said, in order to keep the buses operating at -20 C or colder, staff are forced to keep the vehicles running overnight.

If the city had extra funds to add some indoor parking space for buses at its current transit building in Marwell, it would mean the buses could simply be parked overnight without having to waste considerable amounts of diesel fuel and release unnecessary greenhouse gases into the air.

The transit department is envisioned to be part of the building consolidation project that would move a number of departments to a new site off Two Mile Hill and Range Road.

However, Curtis said that will be a future phase to be added in, and is dependent on funding.

For now, the focus of the building consolidation project is getting the new operations building constructed.

Like Dixon, Curtis was quick to note more clarity will be needed on the details of the fund and how it will be delivered before any firm decisions can be made by the city on how the potential funding will be spent.