A new wastewater treatment plant at Gold Village is estimated to cost $1.7 million, but Yuba County officials say it will not cost the county a dime.

Aaron Ward, deputy county administrator for emergency services, said he is hopeful the entire project will be funded through federal and state grants.

"The treatment plant serving the 84-home community off Hammonton-Smartville Road failed in February 2007. The county has been working on funding options for a new plant ever since.

Tuesday night, the Board of Supervisors held a public hearing on an application to the U.S. Department of Agriculture's rural development, waste and wastewater grant program in the amount of $850,000 to construct a new plant. No one spoke.

If the $850,000 is awarded by the federal government, the state Water Resources Control Board will provide the remaining $850,000, Ward said.

Ward said construction could begin in September.

A temporary plant was installed near the community early this week to help cut costs of transporting raw sewage to the Olivehurst Public Utility District for treatment, Ward said.

"It saves a lot of money," Ward said of the $30,000 it cost to transport sewage. Residents "are still doing water conservation measures, but this temporary plant will allow people to function normally," he said.

Once a new plant is constructed, a new rate schedule could also be put in place, Ward said.

County Administrator Robert Bendorf said a rate increases is not ideal, but is necessary to operate the new plant.

"It's unfortunate, but it will provide for a solid and stable plant," Bendorf said.

Rates for Gold Village residents could reach as much as $200 a month. Currently, residents pay $120 per month for service.

"The amount of money they are paying now is not enough to operate a plant," Ward said.