A basketball arena under construction for the...

A basketball arena under construction for the Sacramento Kings was partially financed by a secret $8-million loan from the city’s pension system, the Sacramento Bee reported.

The city council, which has insisted for years that no public funds be used for the $40-million sports complex, was not informed about the deal before it was made last June, the Bee reported.

Only two council members--Mayor Anne Rudin and Joe Serna--were briefed shortly afterward, according to City Manager Walter Slipe. The seven other members didn’t learn of the deal until questions were raised this week by the newspaper.