Local government officials misled the public during a campaign last year touting a proposal to build a new sports and recreation arena in downtown Sacramento, according to interim report issued Wednesday by the Sacramento County Grand Jury.

The report, called "The Kings and City and County of Sacramento: Betrayal in the Kingdom?," also accuses city and county leaders of "pandering" to the Kings to keep the team in Sacramento.

The report asserts that Sacramento County officials "breached the good faith of honest and open communication" by placing the measures on the ballot and touting an arena deal that did not exist.

The Grand Jury calls upon the county to take better steps to inform the public about future ballot measures, including explaining details sufficiently and posting related information on the county's Web site.

The report adds that "withholding of the documents from the public before the election does not build confidence in government."

The Grand Jury also criticizes the city of Sacramento, stating that details of a 1997 loan to the Kings "have never been accessible to the public and remain the focus of many rumors." The report calls for all related loan documents to be made public.

The report also states the the county and city have offered too many concessions to the Kings.