The savings were an immediate response to the pandemic and associated economic downturn, the report said.
Accordingly, councillors would be asked to choose whether to apply the savings for three, six or 12 months.
Longer-term changes would be considered once the council had a fuller picture of what was needed to aid recovery, the report said.
Although the council had received praise for the current free parking regime, some retailers were crying foul over city workers taking up the spaces outside their shops and affecting trade.
They told The Herald they believed workers were taking advantage of the situation by parking close to their offices, while the free all-day car parks on the outskirts of the CBD that they would normally occupy sat empty.
The report said paid parking was often criticised but, as a user-pays system, remained the fairest way to ensure short-term and medium-term parking was available.
Parking enforcement in the CBD generates about $685,000 for the council's coffers each year.
Making metered car parks free for two hours each workday and all day Saturday would have the biggest impact on revenue, taking away about $107,000 over three months.
Making all metered car parks $1 an hour would take away about $81,500 and free parking for two hours every day would lessen revenue by about $42,000.
The report said rates might need to go up to offset the shortfall.
It did not elaborate on the potential impact of the changes on parking wardens.
The CBD's 806 metered car parks had an occupancy rate of just 17.5 percent in 2018/19.
The city also had approximately 1000 free all-day car parks within walking distance of the main street, Gladstone Road.
Other parking options being presented to councillors at tomorrow's finance and performance committee meeting include free weekday parking in the Grey Street carpark behind Farmers or leasing all Grey Street car park spaces to businesses.
