EVERETT — The city of Everett plans to loan the Everett Public Facility District $665,000 to buy a new scoreboard for Xfinity Arena.
The need for a new scoreboard, and the fact that the district didn’t have the money to cover it, came as a surprise to some City Council members when the subject was raised at the council’s April 8 meeting.
Initially, the city floated the idea of just transferring the funds to the district. After some discussion, however, councilmen Scott Murphy and Jeff Moore suggested a long-term loan instead.
The council will consider the loan agreement at its May 6 meeting.
The distinction between the two plans is somewhat academic, because the district’s bonds and the new loan would both come due in 2026, at which point the city would become the owner of Xfinity Arena. Any outstanding debts would be discharged at that time.
The district, a municipal taxing entity that was set up to build the arena, is paying back $71.5 million in bonds it issued in 2003. Those bonds were refinanced in 2007, and as a result the city already pays the district $600,000 a year to help cover its debts.
Moore said he felt that there should be some separation between the finances, at least from an accounting and philosophical standpoint.
“It makes more sense to create a loan interlocal process so we can track those expenditures separately,” Moore said.
Ultimately, it’s using the city’s money for a facility the city will eventually own.
“It has the same end result,” he said.
The arena has lost money in recent years, but in 2014 came close to breaking even on an operating basis.
The council has asked the public facilities district for a long-term projection of its capital needs so that it can better plan for upcoming major expenses.
Chris Winters: 425-374-4165; cwinters@heraldnet.com. Twitter: @Chris_At_Herald.
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