Mayor David Miller will be pushing up water and sewage service rates but freezing land development fees.

"What the development industry is facing at the moment is considerable uncertainty because of the financial crisis in the U.S.," he said Friday.

Any future increases should be phased in over a period of years, Miller added.

Development charges are used to fix infrastructure in the city. Toronto's development charges are among the lowest in the GTA and a new study was expected to recommend they be doubled.

A spokesperson for the development industry said his group is pleased the mayor wants to block the increase.

"It's the kind of thing you almost never hear in our business -- a tax either going down or not going up, so this is a rare bit of good news," said Stephen Dupuis of Building Industry land Development.

"Given the economic conditions, I think I'm supportive of a freeze because it encourages construction to take place," Coun. Michael Thompson said.

However, the city announced a nine per cent hike to water rates and solid waste fees.

"These fees are being increased to help renew our infrastructure, which in some cases is more than 100 years old, to help deal with very serious flooding problems and to help deal with our environment," Miller said.

This will cost an average Toronto family about $50 per year.

The city is in year four of a nine-year plan to hike water rates by nine per cent per year for flat-rate users for a nine-year period.

For 2009, the water operating budget will be almost $699 million.

For garbage, annual fees remain unchanged will depend on the size of the container for your household, which is part of an effort to encourage residents to divert 70 per cent of their waste:

  • Small - $10 rebate
  • Medium - $39
  • Large - $133
  • Extra large - $190

Residents in single-family homes will start paying garbage fees on Nov. 1.

City council must approve any change to the rates, including the freeze. That will likely happen in November.

The city has already enacted some controversial measures to boost its revenues, including the land transfer tax and vehicle registration tax.

Miller has previously suggested the city's property taxes will be increased by two to four per cent.

Some councillors are crying foul, saying Toronto families can't cope with such increased costs when the economy is so uncertain.

"People of Toronto are getting increased taxes on their property. We're seeing increased land transfer taxes, vehicle ownership taxes and water rates," said Coun. Cliff Jenkins.

"So the people of Toronto are getting socked to it and the development industry is getting protected."

Jenkins said residents end up subsidizing the city for the loss in revenue, but BILD claims that doubling the charges would have doubled the cost passed on to the consumer -- adding $10,000 or $20,0000 to the cost of a new condo or house.

With a report from CTV's Naomi Parness