Posted at: 02/17/2013 8:51 PM
By: The Associated Press
ALBUQUERQUE, N.M. (AP) - The City Council in Rio Rancho has given approval for the city to apply for a loan so it can snap up 400-acre-feet of water rights being offered by a source that officials have declined to name until the deal is finalized.
The Albuquerque Journal reports that council members were told that the city has a conditional contract for the water rights at a cost of $4.8 million.
A briefing memo says the loan from the New Mexico Finance Authority will be repaid over a period of up to 20 years from the $1 surcharge recently added to the $5 monthly water rights acquisition fee on customer bills.
Rio Rancho is required to buy 728 acre feet of water rights every five years.
An acre-foot is approximately 326,000 gallons.
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