A $23,000 full pedestrian crossing was to be installed near the Factory Rd-Church St intersection, but was scrapped in August after objections from local businesses.
The site was reassessed and two options were presented to the community board in March.
One option involved the construction of two kerb protrusions in Factory Rd, to the west of Church St, and a splitter island in Church St, at a cost of $20,000.
The other involved constructing four kerb protrusions in Factory Rd, on either side of Church St, as well as a splitter island in Church St, at a cost of $30,000.
Senior traffic engineer Ron Minnema preferred option one, but it was decided to wait until after the give way rules changed to assess their impact.
Their influence and further issues were identified in another report, considered by the community board on Tuesday.
Mr Minnema told the board the section of Factory Rd between Gordon Rd and Church St was being investigated by the planning department to address several issues including safety, improved amenity and accessibility.
As it was unclear how the investigation and any work would be prioritised, or what it could include, Mr Minnema recommended deferring any plans until after the assessment was complete.
Cr Syd Brown said that was "not satisfactory" as it could take two to three years before the area was assessed.
"This board has asked city planning for five years ... to look at the growth of the Mosgiel township ... It's really concerning that we now have an issue of traffic safety that is sitting without a solution.
"I think we really need to forget about the cost issue and say 'Let's do this' in the best interests of our community.
"It's a cost the city is going to have to bear because it failed to act," he said.
However, Mr Minnema questioned whether spending the money was the best use of "limited funding" if the protrusions would only be removed later.
He also said the protrusions would only provide a "partial fix" of the area's traffic problems.
Other issues in the area included traffic queues, visibility, speed and the impact the protrusions could have on the cycle lane.
The board decided to not make a decision on the kerb protrusions until it received a timeline for the planning department's assessments.
