Winnipeggers wanting to live in a new development could pay thousands of dollars more to settle in those suburbs.

Most councillors support a plan up for consideration that could tack on a $12,000 fee per new home in major developments.

Mayor Sam Katz said the funds are needed to pay for additional costs that come with new suburbs.

“Is rapid transit a possibility? Yes it is. Community centres, recreation facilities, libraries - all of those things you need in new developments,” said Katz.

Coun. Scott Fielding (St. James – Brooklands) opposed the proposed fee.

“I think it's a new tax on new home buying," said Fielding.

He worries the added charge could drive people outside the Perimeter when looking to buy homes.

“I think it will hinder development here in the city of Winnipeg and what you could hear is a giant sucking sound of people and investment dollars going outside the city of Winnipeg,” said Fielding.

Advocates said several Canadian and even other Manitoba cities already charge a similar fee, ranging from $3,000 to $67,000.

“There's a reason for it because you have to support growth and trying to support it from property taxes is not sustainable," said Katz.

Industry insiders counter that buyers and developers already pick up most of the infrastructure tab inside suburbs.

“The roads, curbs and gutters - the hydro, the water sewer lines, et cetera - many of the other aspects of the development are put in by the developer up front,” said Mike Moore from the Manitoba Home Builders’ Association.

They believed the proposed new fee could raise $30 million a year for the city.

Council approval is first needed before officials can ask the province to change the law to allow the fee. That could take months, if approved.

Because of that timeline, money from a new fee might not start getting collected until 2015, if the plan passes.

Carol Cox lives near Winnipeg’s next big suburb – Ridgewood South.

She’s worried about the impact on nearby infrastructure.

“With the development coming in, the streets are going to get beaten up. Wilkes is going to get beaten up and everyone that's been here is going to end up paying for it,” said Cox.

She supports the proposed fee for new homes in major developments.

- with a report from Jeff Keele