The municipal election of 2018 brought about many things – a key one being a new council with agenda to investigate accurate numbers related to the biodigester project.
Much of the financial impact was explained Monday night at Grimsby town council with the presentation of 2018’s audited financial statements, which revealed a $1.5 million deficit.
The process was long overdue, due mainly, said director of finance Steven Gruninger, to many adjustments which had to be made going back into 2017 relating to the biodigester and the CoGen unit.
Measures taken included a $7.5 million writedown on the biodigester and $700,000 on the CoGen unit on town hall’s front lawn. As well, Grimsby Power Inc. wrote off $1 million of a loan deemed uncollectible from Grimsby Energy, which oversaw the biodigester.
Gruninger noted “they still have another note for $1.2 million which remains to be dealt with.
It was noted that proceeds from the sale of the biodigester have paid off much of the debt left from the project including the $4.5 million loan which the council of the day agreed to co-sign for the project.
“It was a tough year,” said Gruninger. “There were a number of losses which hit us. We knew they would eventually hit us.”