The Sacramento City Treasurer says a lawsuit filed against the city and the Sacramento Kings' arena project caused a delay in the bond-buying process. That delay will cost the city $27 million over the next 30 years.
Treasurer Russ Fehr says the city was prepared to buy bonds for the arena project last May, but litigation delayed entry into the bond market until September.
Fehr says if the city purchased bonds earlier, the interest rate would have been 0.5 percent lower. That's a $900,000 per year increase on the debt service.
The lawsuit alleged the city promised financial benefits to the Kings that were not made public.
A judge ruled against the suit in its entirety.
CapRadio provides a trusted source of news because of you. As a nonprofit organization, donations from people like you sustain the journalism that allows us to discover stories that are important to our audience. If you believe in what we do and support our mission, please donate today.