Katherine Town Council is "considering" a zero rate increase for the next year in the wake of the economic impacts from the coronavirus pandemic.
Mayor Fay Miller has chosen to take a pay cut as well.
The council has started debating its 2020/2021 budget.
"With serious economic impacts on a large portion of our community, council is exploring both short term and long-term options to address the needs of our community," a council spokeswoman said.
"Initial respite measures by the council include immediate suspension of all rates interest and rates related legal action until June 30 and which time it will again be reviewed.
"Council is also undertaking a thorough review of more meaningful, long-term options that provide further respite to other stimulus and support measures already released by both the Federal and Northern Territory Government."
Mayor Miller said the budget is still "very much in draft form" but the council was keen to cushion the blow of the COVID-19 impact for all of its ratepayers.
"Council is considering a zero rates increase for the next financial year," she said.
According to council's long-term plan, a rate rise of six per cent had been planned for.
"We are also considering our Hardship Policy in order to assist those who might wish to seek assistance from council in the form of payment of rates by alternative instalments," Mayor Miller said.
"Council is aware of the line it has to tread in order to assist where possible and to manage its operations during the difficult times now and ahead.
"Council will also have to ensure that it remains steady at the end of this difficult time and that it is in a position to function as normal when we emerge on the other side.
"In good faith, I have opted to take a decrease in my mayoral allowance and am hoping that other areas such as keeping our fees and charges at a zero increase.
"We are also supporting waiving interest charges on rates arrears till the 30th June this year and suspending legal action to recover rates during that period.
"Whilst we do not have a lot in cash reserves, we are comfortable with the fact that we don't have any loans as well.
"We are hoping that the Federal and Territory governments during their May budget deliberations, will continue to support Local Government through their annual grants so that we can continue to support you".
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