Councils are under pressure around the country as residents and businesses push back on potential rates increases.
About 60 per cent of a council's funding stream comes from rates, with the other 40 per cent having taken a hit under Covid-19.
Local Government NZ president Dave Cull said councils around the country were confronting the issue of funding lines, such as loss of fees and the closure of venues, having been reduced by the need for spending remaining the same or increasing.
Of the 67 local authorities around New Zealand, 21 councils have indicated they will reduce rates.
"Whether it's deprioritising spending and therefore being able to reduce rate increases, or whether they're borrowing a little to make up for what they would normally take in rates, and some councils are taking something out of reserves," Mr Cull said.
Eleven councils have committed or signalled a rates freeze, including Dunedin, Christchurch, Tasman and Taupō District, Waikato, Hawke's Bay and Bay of Plenty Regional Councils.
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