On Friday, Logansport’s mayor released a letter regarding funding for the power plant project. According to the city, the letter states that $3 million dollars has been deposited by a company called Millennium Energy Corporation and made available to SG Preston and its affiliates. Per the agreements approved last month by the Logansport City Council and Utility Service Board, SG Preston is required to place $1 million, 750-thousand dollars in escrow, though the contracts included a deadline of October 15.
The contracts have not received final approval from the Logansport Board of Public Works and Safety. A public hearing and vote to approve them were set for October 21 but were postponed at the request of SG Preston’s lawyers and have not been rescheduled.
The funding announcement came just a days before the city’s municipal election.
On Friday, the Democratic candidates for mayor and city council released information outlining concerns about the city’s spending. They say that over the past three years, the current administration has deflated the cash balance of the city’s general fund by 81 percent. According to information provided, the city’s spending from the general fund has exceeded tax revenues for the last three years, with a deficit of more than 1 million in 2015. The mayor and two members of the city council responded on Saturday, citing increases in other funds, defending their use of financial consultants and calling into question the personal financial history of the Democratic candidate for mayor.
The mayor and council say the $1.75 million fee that SG Preston is required to deposit will reimburse the fees the city has spent on consultants for the power plant project.
The Logansport City Council is set to meet at 5 p.m. tonight in the city council chambers on the third floor of the Logansport City Building.
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