The City of Edmonton is considering levying a fee on developers for future transit services as new neighbourhoods are built. (CBC)

The City of Edmonton is considering levying a fee on developers for future transit services as new neighbourhoods are developed.

The city's transportation committee has asked for further work on a report that would have developers pay an assessment when land is developed, and once population numbers warrant, the city would provide bus or LRT service to a new neighbourhood.

But developers say that would amount to having homeowners in new subdivisions pay for a service they might wait years to enjoy.

Patrick Shaver, president of Avillia Developments, said a transit levy would be passed on to new-home buyers and would likely add an additional cost of up to $2,500 per home.

Shaver said it's fair to have developers pay for improvements, but not for something that doesn't actually exist.

"Our issue with it is that … the homeowner is paying $2,500 immediately without any service. They're also paying taxes, property taxes, at a higher assessed value because of the levy, and still no transit service. It could be 25 years plus before there's any service whatsoever," he said.

"At least when we pay the other assessments on the arterial roads, or the water, or the sanitary sewer, there's a direct benefit to those residents immediately. Transit — that's indefinite — we don't know when that would be."

The city has decided the transit levy idea needs more work, so a working group will meet with city administrators to review the structure of any new levy. A report is to come back to the transportation committee in February.