Several members of Council warned the timing is not right to increase Development Cost Charges.

As part of its 20 year service plan, the finance department is asking for an increase in DCCs, the money the city receives from developers to offset some of the infrastructure expenditures incurred in servicing new developments.

Financial Planning Manager, Keith Grayston, told council DDCs need to be increased due to the rising cost of construction and land.

Grayston says an update of the 2020 plan shows total infrastructure costs of $983.5 million, compared to the original estimate of $905.2 million, an increase of 8.7 per cent.

Councillor, Andre Blanleil, told council he believes they should wait six months before addressing the need to raise DCC charges because of the downturn in the economy.

"I've talked to different people in the construction industry and with the exception of projects that have already started, people are shelving projects left and right and I think it's adding salt to the wound if we are going to raise these DDCs at this point," says Blanleil.

"If the construction industry slows down like it sounds like it is, all of the pricing is going to come down as well when it comes to any work the city has to do. We've had increases over the last number of years and I think now is the time to sit back and wait."

Blanleil says what he is hearing throughout the construction industry, there will not be a lot of big projects going ahead until some of the inventory currently on the market gets down to a more manageable level.

In response, Grayston told council once a DCC review is done, the city is usually a year behind anyway.

"When the development community comes in to pay their DDCs, they are not paying the true cost. When the economy starts going the other way, it takes us about a year to look at those costs and be in a position to adjust those costs if that is what is needed. Every time we do an update we are about a year behind and we're losing money."

Grayston says the average proposed DCC increase is 9% across the board.

In the city centre, DCCs on a single family home would increase 9% to $22,000, a four unit apartment would jump 11% to more than $14,000 while a commercial building would go up 6% to $5,500 per 1000 square feet.

Open houses on the proposal will be held October 15 and 21 with a final report expected to come before council November 10.