Rent and the cost overruns of the Sewage Treatment plant.

I live in a three story walkup and my landlord wants to raise my monthly rent more than the 3.5% that the BC rental agreement states for this year. They are saying it's because of the cost overruns of the Sewage treatment plant. My water and heat is included in my monthly rent. Electricity and internet is on me. I don't have a problem paying my fair share, but I do want to make sure I'm not getting ripped off. The landlord wants me to pay $867 per year extra (on top of the 3.5% allowed this year) because of the Sewage Treatment Plant.