County Commissioner Rob Turner offered a glimpse of what Washtenaw County might do to help Sylvan Township residents ease the pain of a large tax increase for a sewer and water system that’s at the center of a lawsuit brought by two developers against the township.

“I’m only one vote of 11,” he said Tuesday night at the monthly Sylvan Township Board meeting. “But the county wants to work with you folks.”

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 split into two payments, but in 2014, that payment will increase to $969,000 when the principal kicks in.

The township owes about $9.7 million in bonds for the utilities that were backed by the county’s full faith and credit, as well as $1.25 million to the county for payments that were made to the township when the developers quit paying the special assessment for the utilities.

Turner said if residents are willing to vote to tax themselves about 4.15 mills for 20 years to pay for the bonds, as well as what it owes the county when the developers quit paying the special assessments, the county might be willing to help.

So, instead of a large lump sum payment, the county might be willing to “smooth” the payments out over a longer period, he said.

Township Supervisor Bob Lange said everyone is trying to avoid the township defaulting on its bond payment because if the township fails to pay for the bonds, the courts could decide the amount that residents will have to pay, and that amount would be higher than the proposed millage.

The 20-year millage of 4.15 mills would mean a home with an assessed value of $100,000 would be taxed an additional $450 per year for the system. Currently, residents pay less than 1 mill for township operations.

The township’s next step is to hire a financial analyst who will work with the township and the county to finalize a millage amount that could then be placed on the February 2012 ballot.

On top of the bond payments, the township also needs to have additional money set aside for system repairs, Turner said.

“If you get going now, I can’t promise this is what it will be, but you are looking at 4.15 mills or 10 mills if you wait longer,” he said.

In addition, Norfolk Development Corp. won a $2.4 million judgment against the township in the circuit court that alleged breach of contract when the township chose to connect to a sewer treatment plant rather than construct its own, but that judgment was recently overturned by the Appeals Court. Gaetan Gerville-Raeche, the township’s appeals attorney said the damage award by the Washtenaw County Circuit Court, and claimed by the developers, was sent back to the lower court because the circuit court judge used the wrong contract to determine the amount of damages.

The judgment from the circuit court voided the $8 million special assessment district that was supposed to pay for the water plant and sewer connection, and this was upheld by the appeals court. However, Gerville-Reache said the developers would have to pay their fair share of the assessments.

The developer has until July 7 to appeal the decision to the Michigan Supreme Court.

The township has also sued the attorney that represented them in the agreement, but that court case won’t be heard until next year.

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.