Rio Rancho city councilors voted unanimously last Wednesday to give City Manager James Jimenez and Finance Director Dick Kristof the authority to execute and deliver a loan agreement between the city and the New Mexico Finance Authority to finance two crucial projects.

The city will borrow up to $5.2 million to construct a road water and wastewater infrastructure for the Hewlett-Packard project in downtown.

The city also will borrow up to $4.7 million to complete the extension of Paseo Del Vulcan and complete infrastructure pertaining to the proposed Sue Cleveland High School that will open next year. Jimenez said that no interest rate has been established, but he said one will be set soon.

He estimates that the debt service on the two bonds is $375,000 a year. The money will come from gross receipts taxes.

The city passed its budget in June, where it anticipates generating $28.6 million in gross receipts taxes.