The holding company for the Dunedin City Council owns Aurora and has recommended its sale.
The vast majority of public feedback in more than 700 written submissions and from a three-day hearing last month was against a sale of the electricity distribution company.
In a letter to Dunedin Mayor Jules Radich, Dunedin City Holdings Ltd (DCHL) chairman Tim Loan said the board had reviewed submissions and listened to the hearing.
"The nature of the hearings is such that members of the public have been able to state their case, provide their opinions and present information," Mr Loan said.
It was important for the council to be able to verify the factual accuracy of information presented, he said.
"As a board, we have serious concerns that some of the information presented by the public has been factually inaccurate and, in some cases, misleading."
It emerged at a city council meeting last week DCHL had requested time to respond to points raised at the hearing.
The council is expected to decide next month whether it will put Aurora on the market.
If a sale goes ahead, company debt exceeding $500 million would be cleared and hundreds of millions of dollars would be left over to form the base of a diversified investment fund.
It has been suggested the fund could be more useful to the council than a company that has not provided a dividend since 2017.
Arguments against a sale have included that the company should be viewed as a strategic asset worth retaining for the long term.
DCHL raised several points where it anticipated providing further background, clarification and information.
They included "the role and effectiveness of the regulator in protecting consumers" and "a better understanding of the matter of ‘deferred revenue’ ... its impact on future pricing for consumers" and how this should be considered in assessing the Aurora proposal.
Some submitters were worried a new owner could be keener to push up prices and the influence of the Commerce Commission in effectively limiting increases was not always conceded at the hearing.
Prominent Aurora critic Richard Healey highlighted revenue the company was earning but could not yet bill customers for.
Deferred income exceeded $50m across three years until 2024, making the company more profitable than it seemed, Mr Healey told councillors.
The company’s operation extends into Central Otago and Queenstown Lakes and Mr Healey suggested a new owner might look to Dunedin for price hikes.
Escalating debt for both the council and Aurora has also been prominent in discussions.
The Otago Daily Times reported in April the city council could jeopardise lending agreements within a decade if it does not sell Aurora.
The council’s escalating group debt situation takes it close to a Local Government Funding Agency (LGFA) cap for interest, which cannot exceed 30% of rating revenue.
"If Aurora is not sold, then the 30% is likely to be pressed in the early 2030s," a report for councillors said.
Further information about LGFA covenants and clarifying the impact of Aurora debt and future overall debt for the council and its companies made up two of the four items on DCHL’s list.
"This is not an exhaustive list, but [is] intended to provide a sense of some of the key areas where we believe councillors need further information," Mr Loan said.
The letter was requested by the ODT after reference was made to it at last week’s council meeting.
It was dated May 20, which was when DCHL requested a period of four to six weeks to prepare additional information and obtain independent advice.
"This will enable us to respond fully to the matters raised and ensure that [the] council has the right information to make its decision."
It is expected some of the additional content — or what council chief executive Sandy Graham called "a good chunk" — will be made publicly available.
