Cr Richard Thomson challenged Cr Lee Vandervis to provide evidence to prove his suggestion some of the figures in the council's 2013-14 annual report were possibly incorrect, while Cr Andrew Noone called the comments unfortunate.
The annual report is a record of the council's performance, including financially, in the previous year.
Councillors yesterday approved the 2013-14 annual report at a meeting chaired by Cr Noone, the acting deputy mayor.
Chief executive Dr Sue Bidrose and Dunedin Mayor Dave Cull were asked by Cr Vandervis why the report's introductions were so ''upbeat'' given the city's debt.
He quizzed staff about assets, debt and how exactly the council's total debt was reduced in 2013-14, although he also suggested at one point it was continuing to increase.
Cr Vandervis then said that the report was ''a pretty comprehensive set of figures and I am sure a lot of them are actually true ...''
He also noted he had insufficient opportunity to say whether he thought the report was accurate or reasonable, ''and I think a lot isn't''.
The comments enticed a guffaw from his colleagues, a stony face from group chief financial officer Grant McKenzie and a point of order from Cr Thomson, who said Cr Vandervis was effectively saying staff were fraudulent and misrepresenting the council, and if he was saying that in a public arena he had a responsibility to provide some evidence of it.
Cr Andrew Noone agreed it was an unfortunate comment to have made, especially about a document reporting work already done.
''I am concerned that, 365 days a year, Cr Vandervis is a councillor that can make a difference in all sorts of ways in terms of budgets and the way the organisation is run, but to take to the opportunity at more than the 11th hour, well, that horse has bolted...''
Cr Noone said he never had any doubt in ''all his time'' as an elected member as to the validity of financial information provided by staff, at which point Cr Vandervis interjected with: ''Vehicle sales included, sir?''
Cr Noone reminded him the report was also audited.
''I think scaremongering is probably the best term that applies here.''
He asked Cr Vandervis if he wanted to withdraw any part of his statement.
''No, but I do not accept Cr Thomson's representation of what I said was anything like what I actually said,'' Cr Vandervis said.
His vote against approving the annual report was recorded.
