Katherine Town Council wants to take $1.5 million away from the town's CBD upgrade to help fix the hot springs.
Council has also been asked to dip into its pockets to give $1.25 million because of a blowout in costs for the sportsground upgrades.
Unexpected costs of almost $600,000 to clean up the Territory Day tyre fire, $350,000 for bird damaged sports lights will see council spending from money put aside for a new rubbish tip.
Residents have long been told hefty rate rises over recent years have been necessary to pay for the closure of the old tip, and opening of a new tip sometime in the future.
The bailout of the hot springs is the big surprise from all the budget changes the council will be asked to approve at its council meeting on Tuesday night.
Interim chief executive Allan McGill has made a series of recommendations to get the council's budget back on track.
Siphoning of about a third of the CBD's grant money to the delay-plagued hot springs project is certain to cause controversy.
Only the expensive appointment of an architect (about $400,000), a promotional film and some mural projects are the only visible signs of CBD works since the project was announced more than a year ago.
A revamp of the CBD is seen as desperately overdue by shopkeepers and residents.
Council will be asked on Tuesday to approve the shift of $1.5 million from the CBD's $5m grant to the hot springs.
The hot springs had received $2m in funding for the NT Government but has been forced to start the project over because of long delays and unexpected repairs.
Now it appears the hot springs makeover will need at least $3.5m to complete.
Council issued a media release in June saying no ratepayer money would be spent on the repairs.
"Council would like to reassure the Katherine community that no rate payers money will be spent on the rectification of the Hot Springs. Rectification works are planned for 2019 and as stated there are no general funds allocated as published in the capital works program for the same period," the statement read.
There is no explanation in the published council agenda for several other amounts to be allocated to the hot springs project including the turtle $235,000 and "variations" of $340,560.
There is also a total amount included the budget variation for hot springs of $747,000 which is not clear.
Aldermen have been asked to vote on the proposed changes.
The large capital expense adjustments for the Sportsground and Hot Springs works are due the completion of tenders and quantity surveys which were in progress at the time of preparing the budget," the agenda details.
"The impact is that there is known a known shortfall in the grant funding to complete the works. The allocation of reserves to these projects will impact on Council's Long-Term Financial Plans, particularly in relation to cash flow in funding the closing of the Waste Management Facility.
Also, the Territory Day fire near the showgrounds is going to cost the council at least $580,000 to clean up.
Unknown to most residents, the council had stored thousands of old tyres on vacant land between the showgrounds and the speedway which caught fire on Territory Day.
It caused the hurried relocation of the free concert at the showgrounds and sent a pall of toxic smoke over much of the town.
The "removal and disposal" of contaminated soil is estimated to cost $580,000, none of which was budgeted for.
It is not known how much it cost council to help put out the fire and cover the tyres with soil using contractors.
The incident is still being investigated by the NT Environment Protection Authority.
Repair work at the Katherine sportsgrounds on the damaged sports lights may cost more than $350,000 to fix.
Corellas caused the damage earlier in the year.
Council has been asked to approve the adjustment to council's budget of $180,000 for oval one and the same for oval two to make the repairs.
"Currently insurers are assessing the damage and council may receive income from the insurers to cover this expenditure," council has been told.
There has been a major blowout in costs for the Katherine sportsgrounds redevelopment.
Council is to be asked to approve the spending of $1.25m more to allow the work, which includes demolition and replacement of the Don Dale pavilion and resurfacing of ovals to go ahead.
Council has already committed more than $200,000 from its own funds to the project, which has total funding of $5.5 million.
The project is now budgeted to cost $7.13m.
Council officers have recommended to aldermen for consideration at Tuesday's meeting they "allocate $1,650,000 as a contribution to the total cost of the project and that those funds be taken from available cash reserves".
"The report is being submitted for final approval by the council and for consideration of available funding," council has been told.
"There is currently a short fall of funds needed to complete the building and the oval upgrade. Subject to final council approval in August 2019, it is expected that the project will commence in October 2019."
The council agenda, released today, also details it cost the council $16,500 to obtain the legal opinion which led them to recently join the class action against the Department of Defence over PFAS contamination and its impact on property values.
Council has also been asked to approved another budget adjustment, this time for its insurance, an extra cost of $124,473 to pay for an unexpected 37 per cent rise in its premium.
The council meeting is held on Tuesday, to start at 5.30pm with a question and answer session and 6pm for the council meeting.
The council's agenda can be viewed here.
Have your say before council votes:
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