A much anticipated report at Winnipeg City Hall said new development fees are necessary to offset the costs of growth.

"The report confirms that growth is not paying for growth,” Mayor Brian Bowman.

In a closed door meeting Thursday, councillors were briefed on the $250 thousand dollar study done by Hemson Consulting. It concludes Winnipeg needs a growth fee added onto housing, office and commercial space, possibly city-wide.

It said if the city continues to rely on property taxes to pay for new roads, sewers, emergency services and recreational facilities then infrastructure will continue to deteriorate, services will shrink and property taxes will increase even more for everyone.

"It's about how do we keep property taxes low and how do we really start chipping away at the massive infrastructure deficit that we've inherited,” Bowman said.

The report proposes a fee of more than $8,643 for an 850 square foot home and $18,330 for an 1,800 square foot home.

Councillors, who have long argued large developments aren’t covering service costs, welcomed the report’s conclusions.

"18,000 for an average property, sounds reasonable to me,” Councillor Mynarski Ward said.

However, new homeowner Patrick Labossiere said that would have driven up the cost of his house in Sage Creek and he would've had to go with plan B.

"If there was an extra fee like that added to my mortgage we wouldn't have been able to afford it and so we'd have to look elsewhere,” he said.

Builders worry a new fee could soften the Winnipeg market forcing people outside the Perimeter and beyond.

Qualico's Eric Vogan argues suburbs are covering the costs of new roads and sewers and if the city moves ahead with a fee, the industry is considering legal action.

"If the mayor is playing out of bounds, we'll have to bring him back into the playing field,” Vogan said.

The Province prevented the Sam Katz administration from implementing a similar fee, but Mayor Brian Bowman says he’s been advised the city can move forward without Broadway’s blessing.

City administrators will now take the findings from the report and bring forward recommendations for City Council to consider.