City must watch out for arena financing debt

Published: Monday, Dec. 9, 2013 - 1:10 pm

Re "City arena subsidy faces new debate" (Page A1, Dec. 6): Sacramento's proposed financing plan for the arena provides more questions than answers. A rigorous analysis of the city's proposal by an independent accounting firm is needed. Bond issues are like credit cards: They push the debt due date into the future and today's politicians and city administrators, like City Treasurer Russ Fehr, won't be around when the repayment of the capital and the interest becomes an onerous burden on present and future citizens. Craig Powell, founder of the Eye on Sacramento government watchdog group, says the debt will be much larger than city officials have stated. The other elephant in the room is the question, "Why is the city even subsidizing a sports team?" Such subsidies have not helped those cities that have subsidized such teams.

-- Carl Hauge, Sacramento

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