In a township saddled with roughly $13 million of bond debt and no way to pay it, 2012 began with an infamous past for Sylvan, marking our No. 4 story of the year.
Beginning 12 years ago, Sylvan Township entered an agreement with two developers to provide water and sewer service for their housing projects. To satisfy that agreement, the township set out to build a system designed for 1,000 customers, forecasting the amount needed. The township, having neither the funds nor credit rating needed to carry out such a plan, entered an agreement with Washtenaw County for $12.5 million in bonds to pay for the construction costs.
Then the bottom dropped out. The housing bubble burst, and the developers vacated their project and never paid special assessments.
The township was left with $12.5 million debt, plus interest after a 2010 circuit court ruling found the developers were not obligated to make any payments.
The bulk of the debt remained in limbo throughout 2011 as the township and the county brainstormed repayment options. The government bodies found the only option was a taxpayer-approved millage, which was set at 4.75 mills for 20 years. It was turned down in November 2011.
County cuts a check
Despite being able to make an interest-only payment on bond debt in November 2011, the township defaulted on its May payment. In a May County Commissioner's meeting, the county administrator's office cut a $175,000 check, which covered an interest-only payment. At the meeting, the township's county liaison and county commissioner, Rob Turner, discussed the options for placing a millage on the ballot again. Turner hoped for a better outcome the second time around.
"I think as far as a sentiment of those people who voted against it, I know there are a few who have changed their minds after checking out all the figures that I shared with them," Turner said.
Millage option goes back on ballot
The millage officially made its way onto the August primary ballot with a lower millage rate than last year's attempt. At 4.4 mills instead of 4.75, the payments would still last 20 years. The lower rate, however, would be a smoother transition, Turner said. Continued...
"I have looked for over a year now for any other way for the people of the township to dodge this bullet," Turner told Heritage Media. "But I just have not been able to find anywhere at any level - local, county or state - to give the people any relief from paying off this debt that's owned.'My feeling is that this millage is the best instrument to get this debt paid off."
By an exceptionally narrow margin, the 20-year, 4.4-mill levy passed. With a 62 percent voter turnout, 953 people voted on the millage, with 480 voting for it and 473 opposing it.
Recount requested
The seven-vote margin brewed doubt about the millage's validity among many Sylvan Township residents, and after the mandatory waiting period, a recount request was filed. Township resident Janice Carr made the request after the county's Board of Canvassers certified the vote.
Less than two weeks after the request was filed, the Board of Canvassers denied a potential recount due to what they called "improperly sealed" ballot bags.
Township Clerk LuAnn Koch objected to the recount denial in the township's meeting minutes, stating that the bags have been sealed in the same manner for eight years with no issues.
"All seals are provided by Washtenaw County and are State approved," Koch said. "There were several other precincts in Washtenaw County at this recount that were also determined unrecountable due to the method of sealing ballot bags."
Soon after the ruling, township resident Patrick Zieske took the issue to circuit court, where Judge Archie Brown granted a motion to show just cause for the recount denial.
Brown held a hearing on Oct. 3 with Zieske and the defendant, the Board of Canvassers. Koch, the township's clerk, as well as Peter Flintoft, the township's attorney, were also in attendance to provide testimony. Continued...
In less than two weeks, a recount was performed, and the millage vote stood. As stated in the ballot language, taxpayers will begin paying the additional 4.4 mills on their winter 2013 tax bills.Water issues remain
Though the method for paying back the debt was solved, another looming issue remained: How can a wastewater treatment plant built for more than 1,000 customers continue to operate while serving 110?
Officials from Sylvan Township and nearby Chelsea began brainstorming the options in October. Ideas included shutting down the water tower and piping current customers to the city, selling bottled water or sharing capacity with the city in some way.
With the water tower reaching its 10th anniversary and requiring significant maintenance to continue operations, Sylvan Township is heading toward a deadline with no money in hand for repairs.
While the two municipalities discussed a variety of options with state Rep. Mark Ouimet and state Sen. Rebekah Warren, no definitive plan was formulated.
The lack of concrete options frustrated some, including Chelsea City Councilmember Cheri Albertson.
"This is the ninth time we've been at a table trying to hammer this out," she said at the meeting. "I'm wondering now that it's at the legislative level, at what point do decisions start to get made? Is today the date? The first steps are to draw up what are all of the options, the real options. So when are we going to do that?"
Accusations fly
Not long after that hopeful meeting, Sylvan Township's board sent the city a letter stating the city was legally responsible for 41 percent of the township's $12.5 million water and sewer facility debt. Written by attorney Ga?tan Gerville-R?ache, the letter claimed the city owed the debt because it incorporated 41 percent of the township when it became a city in 2004. Continued...
In a township saddled with roughly $13 million of bond debt and no way to pay it, 2012 began with an infamous past for Sylvan, marking our No. 4 story of the year.Beginning 12 years ago, Sylvan Township entered an agreement with two developers to provide water and sewer service for their housing projects. To satisfy that agreement, the township set out to build a system designed for 1,000 customers, forecasting the amount needed. The township, having neither the funds nor credit rating needed to carry out such a plan, entered an agreement with Washtenaw County for $12.5 million in bonds to pay for the construction costs.
Then the bottom dropped out. The housing bubble burst, and the developers vacated their project and never paid special assessments.
The township was left with $12.5 million debt, plus interest after a 2010 circuit court ruling found the developers were not obligated to make any payments.
The bulk of the debt remained in limbo throughout 2011 as the township and the county brainstormed repayment options. The government bodies found the only option was a taxpayer-approved millage, which was set at 4.75 mills for 20 years. It was turned down in November 2011.
County cuts a check
Despite being able to make an interest-only payment on bond debt in November 2011, the township defaulted on its May payment. In a May County Commissioner's meeting, the county administrator's office cut a $175,000 check, which covered an interest-only payment. At the meeting, the township's county liaison and county commissioner, Rob Turner, discussed the options for placing a millage on the ballot again. Turner hoped for a better outcome the second time around.
"I think as far as a sentiment of those people who voted against it, I know there are a few who have changed their minds after checking out all the figures that I shared with them," Turner said.
Millage option goes back on ballot
The millage officially made its way onto the August primary ballot with a lower millage rate than last year's attempt. At 4.4 mills instead of 4.75, the payments would still last 20 years. The lower rate, however, would be a smoother transition, Turner said.
"I have looked for over a year now for any other way for the people of the township to dodge this bullet," Turner told Heritage Media. "But I just have not been able to find anywhere at any level - local, county or state - to give the people any relief from paying off this debt that's owned.
'My feeling is that this millage is the best instrument to get this debt paid off."
By an exceptionally narrow margin, the 20-year, 4.4-mill levy passed. With a 62 percent voter turnout, 953 people voted on the millage, with 480 voting for it and 473 opposing it.
Recount requested
The seven-vote margin brewed doubt about the millage's validity among many Sylvan Township residents, and after the mandatory waiting period, a recount request was filed. Township resident Janice Carr made the request after the county's Board of Canvassers certified the vote.
Less than two weeks after the request was filed, the Board of Canvassers denied a potential recount due to what they called "improperly sealed" ballot bags.
Township Clerk LuAnn Koch objected to the recount denial in the township's meeting minutes, stating that the bags have been sealed in the same manner for eight years with no issues.
"All seals are provided by Washtenaw County and are State approved," Koch said. "There were several other precincts in Washtenaw County at this recount that were also determined unrecountable due to the method of sealing ballot bags."
Soon after the ruling, township resident Patrick Zieske took the issue to circuit court, where Judge Archie Brown granted a motion to show just cause for the recount denial.
Brown held a hearing on Oct. 3 with Zieske and the defendant, the Board of Canvassers. Koch, the township's clerk, as well as Peter Flintoft, the township's attorney, were also in attendance to provide testimony.
In less than two weeks, a recount was performed, and the millage vote stood. As stated in the ballot language, taxpayers will begin paying the additional 4.4 mills on their winter 2013 tax bills.
Water issues remain
Though the method for paying back the debt was solved, another looming issue remained: How can a wastewater treatment plant built for more than 1,000 customers continue to operate while serving 110?
Officials from Sylvan Township and nearby Chelsea began brainstorming the options in October. Ideas included shutting down the water tower and piping current customers to the city, selling bottled water or sharing capacity with the city in some way.
With the water tower reaching its 10th anniversary and requiring significant maintenance to continue operations, Sylvan Township is heading toward a deadline with no money in hand for repairs.
While the two municipalities discussed a variety of options with state Rep. Mark Ouimet and state Sen. Rebekah Warren, no definitive plan was formulated.
The lack of concrete options frustrated some, including Chelsea City Councilmember Cheri Albertson.
"This is the ninth time we've been at a table trying to hammer this out," she said at the meeting. "I'm wondering now that it's at the legislative level, at what point do decisions start to get made? Is today the date? The first steps are to draw up what are all of the options, the real options. So when are we going to do that?"
Accusations fly
Not long after that hopeful meeting, Sylvan Township's board sent the city a letter stating the city was legally responsible for 41 percent of the township's $12.5 million water and sewer facility debt. Written by attorney Ga?tan Gerville-R?ache, the letter claimed the city owed the debt because it incorporated 41 percent of the township when it became a city in 2004.
Chelsea City Manager John Hanifan called the letter outlandish during a council meeting, but many city officials believed the letter had been conjured by angry members of the Sylvan Township Board who were not re-elected.
New faces take on a familiar problem
With both the August primary and the November election completed, all except one member of the Sylvan Township Board had been replaced.
Trustee Scott Cooper was elected as the township's supervisor. Voters elected newcomers Roy Schmidt and Kurt Koseck as trustees, Doug Smith as clerk and Rod Branham as their township treasurer.
Soon after the officials assumed office they held a meet-and-greet with township residents, Chelsea City officials and other government figures. Many from the Chelsea City Council reportedly attended the gathering, which gave hope to the township's future potential partnership.
No. 1 STORY 2012: Dexter community unites, works together after tornado rips through town
No. 2 STORY 2012: President Obama visits Southeast Michigan twice
No. 3 STORY 2012: Ypsilanti, Willow Run school districts merge
Source: http://www.heritage.com/articles/2012/12/29/chelsea_standard/news/doc50df3596dae4c158434063.txt
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