"The cost of burial is a lot more expensive than cremation. If the family is struggling to meet the costs and they particularly want burial, that may no longer be an option.
"We try to encourage our families as much as possible to pre-arrange and pre-pay."
Barclay said they would always work with families to explore alternative ways to help reduce costs.
Hope Family Funerals Services funeral director Oliver Marriner said the starting cost for burial was $8000, "which can put a lot of stress on families", he said.
Katikati Coffin Club founding member John Russell said it was "a heck of an increase" and would affect the funeral industry.
"You take an increase like that and if people go through funeral directors it's going to be a huge whack because they've got to pass on the costs of it."
Russell said the club had about 283 members, of which "quite a few go for cremations".
The coffin club opened up the discussion about dying, made coffins for their members and helped people plan their last wishes, Russell said.
Tauranga Budget Advisory Services manager Shirley McCombe said planning for funerals was something they encouraged people to consider and plan for, "but only if they can".
"We don't want to see whānau unable to afford shelter, food or power to pay for their own funeral."
McCombe said she saw many people with multiple insurances for funeral cover.
Work and Income could also help with $2000 towards funeral costs if the person met certain criteria which was not recoverable, she said.
"I think it is something families need to talk about ... Hopefully, because [they] have talked about this they won't feel the pressure to have an expensive funeral when the time comes."
The council's general manager of community services, Gareth Wallis, said cremations and burial fee increases had been restricted to the Consumer Price Index (CPI) movements in recent years.
"As a result, the business model for the city's cemeteries is no longer sustainable, because our costs have increased faster than the CPI," Wallis said.
"After the proposed increase, cremation and burial costs will still be comparable with other councils and service providers."
Another rising fee was water supply charges.
The current unmetered annual water charge was $690, which would increase to $804.
The consumption charge per m3 is $2.23, and would increase to $2.90.
Water charges are set under the Rating Act and would be backdated to July 1.
McCombe said increased water charges would also affect their clients.
"It is another cost for those who own a home and for those who rent [and] another cost to be handed on by their landlord.
"The councils do offer rebates for rates and many of our clients take advantage of this."
The council's director of city waters, Stephen Burton, said water charges were likely to be passed on to renters because they were based on the volume of water consumed by each connected property.
"Water charges are based on the cost of delivering high-quality drinking water to households and businesses across the city," he said.
"The cost of delivering this service is increasing because the council is having to invest more to meet water quality standards, ensure we have a resilient water supply and keep up with the capacity needs of a growing population."
Dog registration fees have also increased by $5. The new early bird dog registration rate is $92 if paid before August 1.
These changes will be confirmed when the Long-term Plan is adopted by Tauranga City Council commissioners on July 26.