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Finding solutions for single citizens often helps also finding a general solution.
Usually i have about 8 tram/bus stops thru a town to feed the trainstation, back and forth, and serving residential, commercial and industrial areas. Works quite well. When time progresses use of these lines does deteriorate though. Remarkable enough there's always a few stops that are packed with pax.
A very effective local bus/tram network is not likely to be very profitable one. The player has to choose to focus on profit or good passenger service or compromise to do a mix of the two.
1. Add streets until you have a complete square or rectangle surrounding the city. This is your bus loop. You should be able to cover the entire area inside the loop by placing bus stops along the loop. Make sure to complete intersections along the loop that lead into the city. This will improve the coverage of bus stop in some situations.
2. Place the railroad passenger station outside of the loop and run a street from the loop to the station. The station should be close enough to the loop so that a bus station on the loop links it with the station. I try to make the street leading to the station as long as possible. To allow for max expansion of the city and to reduce emissions.
3. Now create a bus line with stops along the loop described above. You can often start with a small number of stops. Then add a few later as the city fills in.