The province has shot down a city proposal to charge a fee on new homes in Winnipeg.

Mayor Sam Katz had appeared confident the province would allow the city to add a fee on new homes to pay for infrastructure.

On Monday, the city announced it wants to charge developers thousands of dollars for every new home in new suburbs.

The money would pay for libraries, transit and community centres, said Katz.

Late Wednesday morning, Premier Greg Selinger told CTV News the province will not allow the city to go ahead with the proposed new fee.

“We’ve been very clear. We’re spending $194 million through the city for infrastructure. It was a 12 per cent increase last year,” said Premier Greg Selinger. “We’re very willing to work with them on key infrastructure projects. We’re not interested in new fees and charges.”