Sylvan Township voters may see 4.26 mill request for debt payment on November ballot
Sylvan Township is expected to put a millage request on the November ballot asking residents to approve an 4.26 mill tax levy for 20 years to pay off about $13.2 million it has amassed in debt payments for a water and sewer system.
Washtenaw County Commissioner Rob Turner told the Sylvan Township Board and about 15 residents Tuesday night that the township owes about $9.70 million in bonds for the water and sewer system, which were backed by the county’s full faith and credit, as well as $1.25 million for payments that were made to the township by the county when developers quit paying the special assessment for the utilities.
“Nothing’s finalized,” Tuner said, until township and county officials meet at 2 p.m. Wednesday, when it’s expected that the exact ballot language will be finalized. The amount will still require approval by the township board to have it placed on the ballot.
Norfolk Development Corp. won a $2.4 million judgment against the township in Washtenaw County Circuit Court after alleging breach of contract, but the decision was overturned by the Appeals Court and sent back to the lower court.
It’s unknown when the circuit court judge will rehear the case.
The judgment from the circuit court also voided the $8 million special assessment district that was supposed to pay for the water plant and sewer connection. This decision was upheld by the Appeals Court.
So the township must pay for the bonds for the utilities and instead of a large lump sum payment, the county is working with the township to “smooth” the payments out over a longer period, Turner said.
If voters turn down the millage, the county could place a special assessment on township residents that could range from 8.5 to 10.5 mills, Turner said.
The 20-year millage of 4.26 mills would mean a home with an assessed value of $100,000 would be taxed $426 per year for the debt. Currently, residents pay less than 1 mill for township operations.
The township only has enough money in its water and sewer fund to make the Nov. 11 interest-only payment of $175,000. In 2012, it will owe $350,000 and in 2014, that payment will increase to $969,000 when the principal payments begin.
The board must approve any millage language before Aug. 14 to be placed on the November ballot.
Lisa Allmendinger is a reporter for AnnArbor.com. She can be reached at lisaallmendinger@annarbor.com. For more Chelsea area stories, visit our Chelsea page.
Comments
maverik
Sat, Aug 6, 2011 : 2:41 a.m.
I agree with all that have commented. Maybe an emergency manager should come in and take a good look at everything about this and all township doings. The residents of the township need to have some meetings and discuss this matter and find out what options are available to us before we just accept what is being shoved down our throats.And now the board wants to turn the township into a charter township, that would give them the power to add 5 mills on us at any time without putting it to the vote of the residents and they will do it. have we not had enough shoved at us? So the residents must become more aware of what is about to happen and have some meetings among ourselves and lets be quick about doing it. The change to a charter was brought up at the last meeting and they are in favor of it, so lets be aware.
snapshot
Fri, Aug 5, 2011 : 3:08 a.m.
This is a crime that should be punished via the judicial system but they protect their own as the Judge held that "job immunity" prevails. This is why emergency managers and their powers are necessary.
Genboy
Wed, Aug 3, 2011 : 5:46 p.m.
Brooktrout is absolutely correct. If you attended any meetings during that time, you would see what he means by "factional power", i.e., the Sylvan good old boy network. He was not a good old boy on the board and his analyses and warnings were ignored. Blatantly.
Genboy
Wed, Aug 3, 2011 : 5:42 p.m.
I think the board members responsible for this debacle, two of whom are still on the board, should be doing some big time paying. Is it possible to bring personal lawsuits when illegal things were done while in office? And futhermore, once they remove the recycling facilities so we can each save $26 per year, feel free to start dumping your recycling in their driveways.
brooktrout
Wed, Aug 3, 2011 : 2:55 p.m.
sorry, forgot to append my full name to the above. brook trout is michael wiliams, supervisor, sylvan township, november 20, 2004, to november 20, 2008
brooktrout
Wed, Aug 3, 2011 : 2:54 p.m.
ah, we finally have some idea of the weight that will drop on us, and when. As I have been watching this point swirl ever and ever closer since my first warnings to the township board back in 2005, it has been rather interesting (but immensely frustrating) to have my perspective on the denial, delays, and errors that brought the township to its present condition. Even after the initial fraud and consequent Rube Goldberg patchwork of agreements, some illegal, that tried to twist and turn the township's way out of this (yes, I can now say words like these, unconstrained by office and litigation) all of this was avoidable, or at the very least containable to far less financial harm to the residents of the township. That it has come to this should be to the everlasting shame of those who chose denial over analysis, spin over facts, and the maintenance of factional power and office over their fiduciary responsibilities to the citizens they served.