Some Durham city and county officials seem to finally be facing the facts about their civic center: It is a financial drain on the public, not a benefit. The reporter’s description of the situation could be clearer (emphasis is mine):
The city and county share the cost of covering the annual gap between profit and expenses, which has come down from a peak of $2 million to about $1 million.
In addition, it is estimated that the center needs about $6 million worth of deferred maintenance and upgrades, including a new heating and cooling system. If the city and county do not pay for the work, any sale or transfer of the property would presumably reflect the needed work.
First, an “annual gap between profit and expenses” is called a loss.
Second, “deferred maintenance” is typically a euphemism for work that should have been done, but the money was instead allocated to something else or not properly funded at all.
Bottom line: this civic center, like many publicly owned centers, is a drain on public dollars. Durham officials should seek a buyer willing to operate the center privately and, thus, incur any profits or losses that come with the venture. If this can be operated at a profit, an entrepreneur will want the opportunity. City and county officials should stick to core services that are appropriate for local governments to provide: fire, police, schools, parks. As JLF Local Government Analyst Michael Sanera has written, when local officials stray from core services — like done here and here for example, the financial burden unfairly falls on local taxpayers.
