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McAllen approves resolutions and ordinances to advance groundwater desalination project and buy water rights
Summary
City leaders approved a $30 million financing closing to build production wells for a groundwater desalination project and authorized purchase of water rights; the Public Utility Board and City Commission approved related resolutions and ordinances during the joint meeting.
The City of McAllen and the Public Utility Board voted on a package of actions to advance a groundwater desalination project and to acquire additional surface-water rights.
Mark Vega, presenting to the City Commission and Public Utility Board, described item 2 as “the first of 5 closings” and said the closing would provide $30,000,000, with roughly 90% of those funds intended to construct production wells and about 10% for design. Vega told the meeting the wells program covers about eight wells — four deep and four shallow — and that the city plans to advertise the production-well bid package in spring 2026. “This first closing of $30,000,000 is to construct these deep and shallow wells,” Vega said.
Vega said the true interest cost for the first closing is about 3.82 percent, reflecting a subsidy…
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