The motion, brought forward by Cr Andrew Guile, commits council to reduce all rate categories in the general fund by 25 per cent for the 2020/21 financial year.

His motion asks the CEO to investigate other measures, including what relief council can provide to small businesses and how it can repurpose casual council staff who lost their position because of facility closures.

It also: requires sports clubs, schools and other organisations who use council facilities to suspend competitions until further notice, cancels all non-urgent council meetings and committees, installs hygiene signs around the city and delegates media and communications to the CEO.

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"People seem to be very relaxed about COVID-19 and it shouldn't be the case - there is not a sense of urgency," Cr Guile said.

Originally, Cr Guile's motion asked council to waive all fourth-quarter rates but Mayor Amanda Findley ruled it was an illegal motion and it was changed.

Cr Findley said she was "shocked" by the motion. She feared it would lead to staff losing their employment and believes rate relief is inequitable.

"[The motion] gives the most benefit to wealthy multiple landowners and developers, many who don't even live in the Shoalhaven," she said.

"Shoalhaven Council should be supporting our employees in retaining their employment. We should not be talking about a reduction in staff numbers."

Cr Guile said the suggestion of job losses was untrue and said the motion looks to repurpose the casuals already put off by council.

The motion passed with four councillors voting against it.

Cr Findley said she had lodged a rescission motion but Cr Guile raised doubts if it was received.

For: Crs Gash, Wells, White, Guile, Pakes, Watson, Kitchener and Proudfoot.

Against: Crs Findley, Digiglio, Alldrick and Levett.