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"We have enough for the next two years or maybe more to pay with our current monies, and that's being optimistic," Ferrari said.

The 25-year bond was issued to upgrade the township's central water system and bring it into compliance with new federal standards for arsenic.

About 3,000 users of the system are billed $32 each quarter for their water service, and a new tap-in fee costs $6,075. The combination of user fees and tap-in fees pay for the bond.

At the time the bond was issued, there was enough residential development planned to cover the cost of the bond, Ferrari said.

"It'll definitely be a problem in the future because tap-ins aren't coming in as projected," Ferrari said.

The bond paid for several upgrades in the system, including a new casing for one existing well, the installation of a new well, expansion of one treatment facility and a water tower.

The rates are still lower than if the township had chosen to get water from Detroit, which would've cost about $15 million just to tap-in, said township Supervisor Bill Dunn.

Dunn estimated the cost of acquiring easements and putting in infrastructure to bring Detroit water to Oxford would've cost another $10 million to $15 million.

"We felt that was too high of a price to pay. If we would've went to Detroit, rates would be doubled," Dunn said.

The system does not serve all residents of the township, and many residents within the water district can opt to draw water from their own wells rather than from the township, Dunn said.

Ferrari said, "What the township board is trying to do is buy time to see if the economy turns around. If it does, it's a moot point.

"If the economy stays stagnant, the township will have to look at different alternatives to make those bond payments."

Contact staff writer Karen Auchterlonie at (248) 745-4643 or karen@oakpress.com.