Katherine Town Council acting CEO Claire Johansson said the rate increase for the past two years and increases over the next decade would enable council to pay for the new facility without needing to go into debt.​

For the 2017/18 financial year, council intends to raise $6.35 million from rates.

Ms Johansson said they have identified and stated what the reserves are for, to ensure the additional finances are used for their intended purpose.  

She said without the increases, council would have to borrow and go into debt in the future; a legacy they don’t want to pass on to the town’s children.

“The council needed to allow for the provision of services and maintenance of assets into the future,” Ms Johansson said.

“A major compulsory expense for council is the establishment of a new waste management facility and rehabilitation of the waste management facility.

“That facility will reach the end of its life and the projected cost to be able to rehabilitate that $20 million, which is a conservative estimate.”

The Australian Valuation Office independently assessed properties in the town to provide an unimproved capital value (UCV). For many residents, this means property values have gone up.

However, Ms Johansson said the council had reduced the multiplier they use for these properties to ensure the increase would not exceed 9pc. 

Minimum rates for 2016-17 were $963 and will be $1050 this financial year, an increase of $87.

Rates notices will be printed and posted at the end of July to give residents extra time to prepare for their next payment.