Editor's note: The date of the first meeting in this series has been corrected. The correct date is Sept. 15.

Sylvan Township residents in November will be asked to approve a 20-year, 4.75-mill tax increase to pay for $13.2 million in debt payments. But before voters make a decision, County Commissioner Rob Turner and township attorney Pete Flintoft will conduct three informational meetings to explain the proposal and answer residents' questions.

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

The meetings are scheduled for Sept. 15, Sept. 29 and Oct. 13 beginning at 7 p.m. at the Washtenaw Street Education Center auditorium at 500 Washington St. in Chelsea.

The proposed 20-year tax levy would pay off a $5 million water system and a $7.5 million sewer system. In the first two years, it would repay a debt to the county of more than $1.2 million for money advanced to the township for “township sewer special assessment installments which were voided by court judgment and water special assessment installments which were declared uncollectible,” according to the ballot language.

Turner said at a recent Sylvan Township Board meeting that the format will include a detailed plan of how the township will repay the money as well as what might happen if the millage is not approved by voters.

In addition, there will be a short history of how the township got into this debt as well as a question and answer session.

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 facility. The decision was overturned in part 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 voided the $8 million special assessment district that was supposed to pay for the water plant and sewer connection, a decision that was upheld by the appeals court.

The township only has enough money in its water and sewer fund to make a 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 kicks in.

A 20-year millage of 4.75 mills would mean a home with an assessed value of $100,000 would be taxed $475 per year for the debt. Currently, residents pay less than 1 mill for township operations.

In the first year, the proposed tax levy is estimated to raise about $853,860, and if approved by voters, it would be collected on the winter tax bill.

Turner provided a timeline of events that led to the situation in which the township now finds itself. Here are some of the highlights:

• May 2000: The township begins discussions with Washtenaw County for a water and sewer system to serve portions of Sylvan Township near the Village of Chelsea. the system was to include a treatment plant on the west side of the township that could also serve Cavanaugh Lake and other lakes in the area.
• September 2000: Sylvan Township signs development agreements with Magellan Properties and Warren Hamill.
• October 2000: A wastewater treatment plant project is presented to the County Board of Public Works with an estimated cost of $4 million. Sylvan Township establishes a special assessment district totaling $4 million for the system.
• January 2001: The township establishes special assessment of $4 million for the township’s water system.
• February 2001: A water project at an estimated cost of $4 million is discussed with the County Board of Public Works with a possibility of providing softened water. The Jackson County Drain Commission expresses concern over the potential discharge from a wastewater treatment plant through Jackson County and suggests that the township connect to the existing wastewater treatment plant in Leoni Township.
• March 2001: An analysis of adding softener to the water system determines it would add $700,000 to the cost of the water system but would be less expensive for individual homeowners than using home water softeners. An analysis of sewage transport to Leoni Township is completed, estimating cost of $5.275 million using a route down Old US-12, but Grass Lake objects. Another analysis is performed routing the sewage along I-94, which would also serve Grass Lake. That cost is estimated at $7.5 million.
• April 2001: Township requests the county's assistance for construction of a water system with a softening system at an estimated cost of $5 million.
• May 2001: Township requests county assistance for the construction of a wastewater system to Leoni Township Wastewater treatment plant at an estimated cost of $7.5 million with a financial analysis that uses revenue from future growth as part of the cash flow for the project’s financing. County agrees to assist the township.
• July 2001: A contract between the county and the township is approved for $12.5 million for the wastewater and sewer system — $7.5 million for wastewater and $5 million for water.
• September, 2001: Bonds are sold in the amount of $12.5 million at a 4.81 percent interest rate.
• October, 2002: Water and wastewater systems are substantially complete.
• December, 2002: First installment on assessments is due.
• June, 2003: County determines the developers failed to pay the first installment and that the development agreements credit future connection fees to the developers rather than the bond debt. County requests that the township correct the issue.
• August, 2003: Magellan and the township enter into an amended development agreement to remove the credit of future connection fees and reduce the assessment on the property covered by that agreement from $4.6 million to $3.2 million — a 30 percent reduction.
• September, 2003: Township and Hamill do not agree on the amended agreement, and because Hamill does not comply with portions of the original agreement, the township rescinds it.
• February, 2004: Norfolk Development Corp. buys two parcels of land from Hamill.
• May, 2004: Norfolk buys two parcels from Magellan.
• August, 2007: Norfolk and Magellan sue Sylvan Township, claiming the water and sewer special assessments are illegal.
• 2007-2009: Neither Norfolk nor Magellan pay any special assessments.
• February, 2010: Township requests that the county refinance and restructure the debt to eliminate interest payments for four years — until 2014 — and extend the debt by four years from 2022 to 2026.
• March, 2010: County sells refinanced bonds at a net interest rate of 3.79 percent.
• April 2010: Washtenaw County Circuit Court rules that the wastewater portion of the special assessment is illegal.
• May 2011: The Michigan Court of Appeals vacates portions of the Circuit Court opinion.

Lisa Allmendinger is a regional reporter for AnnArbor.com. She can be reached at lisaallmendinger@annarbor.com. For more Chelsea area stories, visit our Chelsea page.