The byelection will be restarted on January 18, with nominations opening for the now three vacant positions. This was the earliest date due to the holiday period.
Nominations would close on February 18 and election day would be April 2021.
"However, if the commission announced last week by the Minister of Local Government is appointed on 8 February 2021, as expected, the by-election would be cancelled before nominations close.
"That being the case, the postponement will save the city in the order of $250,000 in unnecessary expenditure."
He said the nominations would carry forward to the new process starting in January.
Local Government Minister Nanaia Mahuta confirmed on Friday she would appoint a commission to the council in the new year. She said commissioner appointments would be announced in February.
Hughes, an at-large councillor, is the third Tauranga elected member to resign this year. Councillor Jako Abrie quit in October and mayor Tenby Powell resigned in November. The byelection was called to fill their seats before the minister announced her final decision.