$8,824,835capital deficiency of the Town's solar companies at December 31, 2022 (up from $6,373,405)
The Town owns a company called Énergie Kapuskasing Energy Inc., which owns two solar power companies. These are kept apart from the Town's own books. The audited 2022 statements say their combined "capital deficiency" (what they owe beyond what they own) was $8,824,835 at the end of 2022, up from $6,373,405 a year earlier, after a net loss of $2,451,430 for the year. The statements say the Town, as the only owner, "is responsible for this excess of liabilities over assets". The loss was much larger than the year before ($814,793), mostly because of a line called "Other income (expenses)" of ($1,741,494), against $205,895 of income in 2021. The statements do not say what is in that line. These are the latest statements we could read: the 2023 and 2024 statements are posted, but only through a viewer that does not allow automated reading.
$14,813,519owed to the Town by its solar companies at December 31, 2022, unsecured, no set repayment terms
At the end of 2022 the Town was owed $14,813,519 by the two solar companies. The statements say these loans bear 4% interest, are "unsecured with no set terms of repayment", and that the Town charged $440,052 of interest on them. That is about 46% of the Town's financial assets of $32,184,377 (worked out by us). The Town has also guaranteed three bank loans of the energy and solar companies totalling $14,206,444. One of those loans, $1,051,167, was due in November 2023, and the other two, $6,416,906 and $6,738,371, are due in April 2027.
$5,753,361working capital reserve at December 31, 2022, down from $9,140,776
A reserve is money Council sets aside for later. The "working capital" reserve is the one that covers day-to-day cash needs. It was $9,140,776 at the end of 2021 and $5,753,361 at the end of 2022, a fall of $3,387,415 (worked out by us). Cash and cash equivalents fell from $8,231,859 to $5,113,795 over the same year. The Town also has a bank line of credit of $18,545,126 from January 1 to September 30, falling to $9,272,563 for the last three months of the year.
$6,440,191principal and interest due in 2027, against $2,456,427 due in 2023
The Town's long-term debt was $22,566,796 at the end of 2022. The statements list what must be paid in each of the next five years. In 2023 to 2026 the principal is about $1.5 to $1.7 million a year. In 2027 it is $5,871,887, and the total with interest is $6,440,191. The reason is one new loan in 2022, a 4.70% loan with a balance of $5,935,212 "due in 2027", whose monthly payments of $46,734 are far too small to pay it off by then (worked out by us). The statements say the Town's yearly payments are within the limit set by the province. The same statements show a $1,900,000 investment that matures in December 2027.