GRAND FORKS (AP) - Managers of this city's events center are projecting more red ink.

Members of the Alerus Center's finance committee expect the center will run at least $150,000 in the red during its next budget year.

The figure represents a little less than 4 percent of the center's projected $4.15 million budget. Deficits would have to be paid for out of city sales tax revenue.

The Alerus Center has not posted a profit since its first two years of operation in 2001 and 2002. Next year brings even more challenges, officials said.

The center's energy budget is expected to total more than $500,000, more than 50 percent higher than this year's estimated $334,000 energy budget. Executive Director Charlie Jeske said the Alerus is considering raising its room rental and catering fees to compensate.

Construction of the Canad Inns hotel complex next to the Alerus Center is expected to take away parking spaces. Major concerts are harder to attract, and the University of North Dakota may have fewer home football games - another source of revenue for the Alerus - as it makes a transition to NCAA Division I.

"It will be a challenging year," finance commission Chairman Randy Newman said.