Gray's Funeral Services director Richard Bennison told councillors he was asked to speak on behalf of the city's funeral directors.
Mr Bennison said funeral directors already made it clear to clients the council would seek payment of its burial fees separately and due to Rotorua's lower socio-economic situation were already writing off between $40,000 and $60,000 a year in bad debt. "This can add up to a lot of money if you are doing between five and 10 funerals a month.
"Some estates take up to six months to be settled and we can't afford to carry that amount," Mr Bennison said.
Councillors discussed if fees could be added to rates bills and paid off over time, if ratepayers should be footing the bill for bad debts, or if it was fair for funeral directors to be collecting council fees and charges on the council's behalf.
The council's new Cemetery and Crematorium Policy covers Rotorua (Sala St), Ngakuru, Reporoa and Mamaku cemeteries and the new cemetery at Tarukenga when it becomes operational.
It does not include Kauae Cemetery, which is run by a trust and would have to formally adopt the new policy.