Adrian to put oil revenue into long term trust - News, Weather, Sports, Toledo, OH

Adrian to put oil revenue into long term trust

ADRIAN, MI (Toledo News Now) -

It appears the city of Adrian has found a windfall in all of the oil wells popping up around town.  Monday the city decided on a plan to save money made from the wells for the future.  

While environmentalists have been concerned about the safety of the wells, Monday's city council meeting was to determine what to do with tax revenue from the oil flowing out of the ground in Adrian.

The city is leasing public land to oil companies for drilling, and receives royalties from the sale of that oil.

Dozens of residents showed up Monday to voice their opinions about what should be done with that money.  Several voiced concerns with an idea to put the money in a long-term trust account which cannot be depleted if an urgent need arises.

"If you tie this money up, and not concentrate primarily on public safety and things of that nature that benefit the whole community, you're not right," said resident Tom Niell.

"Has there been any consideration of not putting the whole thing in the trust? Keeping maybe 10 percent back for firemen, policemen and put the rest in the trust ," said Larry Heath.

Council voted to go ahead with the plan over some objections, placing the oil and gas revenues into a long term trust. After three years, the city will be allowed to take out up to five percent of the funds per year, but must wait at least 15 years to spend the full amount.

Mayor Greg Dumars says the city is leaving a legacy of long term financial stability.

"Our citizens, down the road, are going to be incredibly thankful when they have $500,000 a year coming in – lifetime from these oil royalties. Maybe even more than that," said Dumars.

After 15 years, the money can be used to pay off long term debt or for capital projects.

Copyright 2013 Toledo News Now. All rights reserved.

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