An engineering consultant said new state and federal regulations make an existing wastewater treatment plant in Maxwell impractical and obsolete.

"The problem will not go away if we do nothing," said David Carter, of Winzler & Kelly. "Solving the problem just becomes more expensive."

The Maxwell Public Utility District hosted this week the first of several public meetings in an effort to seek a tax assessment district to pay for a new wastewater treatment facility.

The new facility is being designed to meet the stringent new clean water mandates imposed by the state and federal governments, district officials said Wednesday.

Property owners can expect to pay from $225 to $500 a parcel on their property taxes each year to help cover the costs.

Carter said inaction could also result in a potential government takeover of the district and denial of any future property development. Maxwell has already been fined $1.6 million for being out of compliance with the regulations.

District officials said Maxwell PUD has applied for a $4 million loan from the Department of Agriculture to meet the requirement, making the district eligible for up to $3 million in grants to pay back the loan, and another $1 million grant to help eligible low-income property owners with their assessment.

Carter said if the assessment district is not formed, property owners would have to pay back the loan through an increase in monthly rates, from $48 a month to approximately $130.

The proposed project includes an upgraded wastewater treatment facility, new pump stations, pipelines, storage ponds and irrigation systems.

"The project involves the regulated irrigation of pasture crops," Carter said. "This is the most practical and cost effective approach to long-term regulatory compliance and a good use of recycled water."

The cost is estimated to be about $8.5 million, but a delay in building could result in additional construction costs, Carter said.

Assessment ballots will be mailed to property owners Nov. 14.