Alliance spokeswoman Dawn Kiddie said in a statement Tauranga householders and business owners were being hit hard.
On July 26, the council adopted the city's Long-term Plan 2021/2031 with an average residential rates rise of 15 per cent and average commercial rise of 34 per cent.
Ratepayers have until August 31 to pay the first instalment.
The alliance called for this deadline to be extended to "at least" September 30, given the uncertainty facing companies and employees.
"Now is not the time for council to be sucker punching them with rate hikes," Kiddie said, who was one of the councillors replaced by the Government-appointed commission.
In addition to delaying the rates deadline, the alliance said the council should freeze its multimillion-dollar hiring plan and cut senior managers' salaries as part of "some demonstrable leadership".
"The council needs to cut its cloth to fit the new economic reality."
Anne Tolley, chairwoman of the council's commission, ruled out delaying the rates payment due date.
"Rates, payment dates and fees and charges for 2021/22 have all been adopted as part of the recent long-term plan process and cannot be reversed or modified at this late stage," she said.
Tauranga City Council commission chairwoman Anne Tolley. Photo / NZME
"Having said that, our rates team is always available to help people work through any issues relating to rates payments."
Tolley said it was too early to make any judgement about the duration or economic impact of the current alert level 4 lockdown "but it's obviously of concern to the commission and to council".
"Our efforts at this time are being devoted to keeping essential services going and making good decisions on behalf of the community and the organisation."
Tauranga Chamber of Commerce chief executive Matt Cowley said he doubted local businesses would benefit from a short-term discounted council rate invoice.
Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / NZME
"Most businesses lease their offices and buildings. Commercial landlords on-charge operational costs such as council rates to their tenants. It's unlikely that council's discounts or postponements would reach most businesses as tenants have contracted monthly payments," he said.
Cowley said the outbreak's impact on local businesses was yet to be clear, as it depended on how quickly New Zealand returned to alert level 1.
"Hopefully we've reached the peak and the Bay of Plenty will be rewarded with deescalating alert levels."
Cowley also hoped the Government continued to deliver weekly Resurgence Support Payment for businesses, "particularly as lockdown has extended beyond a week".
"We are optimistic that we can get back to normality soon. We still have an infrastructure crisis as we need to address Tauranga's housing and transport issues."
Cabinet is due to make a decision on Friday on whether level 4 should be extended beyond its current 11.59pm Friday expiry for regions outside Auckland.
