SACRAMENTO -- A government watchdog group says they've discovered that the Sacramento Convention Center loses $16 million a year -- so why is the city considering a multi-million dollar renovation for the facility?

The report from Eye on Sacramento shows the Sacramento Convention Center operating at a loss for more than a decade, costing the city $218 million over the past 14 years.

"There's gonna be a proposal here in September to expand the Convention Center ... and there's just no money to cover that," Dennis Neufeld with Eye on Sacramento said.

[ Read more: Expansion Planned for Sacramento Convention Center ]

Neufeld says the city has been subsidizing the Convention Center with money from the hotel tax -- which generates about $20 million a year. But the city also plans to use the hotel tax to help pay for the new Downtown Arena.

"There is no revenue available from the hotel tax for the arena project," he said.

[ Read the full report from Eye on Sacramento ]