The Blue Mountains is changing the structure of its development charges (DCs) to improve funding for capital projects.

The town will have a completed DC study with new estimates for costs to develop in the town ready for public consumption at the end of this month.

The new study will propose a DC method based on the type of development including amount, size and location of the housing units.

DCs will also be charged based on the average capital service levels provided and predicted over ten years as well as on predicted capital projects.

Categories for development include under 800 square feet, 800 to 1,599 square feet, 1,600 to 2,399 square feet and 2,400 square feet and over.

Darcy Chapman, capital accountant for the town, presented the preliminaries of the DC study to council saying that currently the town operates on a one unit - one price philosophy, which worked in the past, but should be changed to better reflect the town.

He added that the proposed method will encourage affordable housing development.

CAO Paul Graham said this method would provide incentive for the development community to implement a range of housing for various incomes and contribute to the sustainability of the town.

Councillor Bob Gamble was apprehensive about increasing development charges for fear of discouraging development due to high costs.

The study recommends that The Blue Mountains charge the maximum allowable amount in the cases of larger developments.

Gamble listed a few of the capital projects included in the ten year predictions that he thought belonged on a wish list including road work for Christie Beach Rd., Thornbury West Roads, Clark Street realignments and parks and recreation projects including a skating loop for the new town hall.

"I just think we're maybe pricing ourselves out of the industry," said Gamble.

Staff  plan to have a meeting with the development community to go over the plan for development charges before decisions are made. The meeting is slated for July 8 and council suggested the meeting be open to the public. An additional public meeting is scheduled for August 10.

Deputy Mayor Duncan McKinlay said it was important to get the development community and the public involved to see what they think of the higher charges. He said they might not mind the extra charges if it means increased infrastructure and capital projects. He compared the situation to buying a truck, which is always cheaper without power windows.

"If the guy that's driving the truck wants power windows and will pay for them, then let him have them," said McKinlay.

Councillor Michael Martin said there was no proof that increased DCs discouraged development.

"Many of us campaigned on the idea that new growth pays for new growth," said Martin adding that council and staff should be cautious about pulling capital projects out of the plan at the risk of lowering levels of service too much.

Martin said he wanted to hear from the public before making decisions.

Future meetings will be posted online and the full DC study report will be available for public consumption on June 30.