AUBURN – A plan to replace the city’s tax increment financing business development policy with fees paid by developers still needs some work, councilors said Monday.

Councilors discussed using impact fees to cover costs created by new development at a workshop Monday night. Laurie Smith, acting city manager, said councilors will take up the issue again in the fall.

New development creates costs for the city, according to Economic Development Director Roland Miller.

That could include expanding roads, installing utilities like water, sewer or electricity, or adding fire department equipment and staff.

The city now requires developers to pay many of those costs upfront, but puts the development in a TIF district and rebates part of the property taxes the developer pays.

That allows developers to recover some of their initial costs.

The city could simply do the work itself, and charge a fee to the developer, Miller said.

Several communities in Maine do that now.

“Whatever we do, we want to make sure that we remain competitive with those communities,” Miller said.

Councilor Ellen Peters said she needed more information about how changing policies would assist the city.

“What I need to know is what is going to do a better job for the city,” Peters said. “I’m hearing that changing what we do might remove some the flexibility we have to negotiate with developers.”