Choppy financial markets have forced the city of Pittsburgh to delay a potential $72 million debt refinancing plan, but officials said they will watch the markets and seize the right moment to shave $2.5 million from payments.

City Finance Director Scott Kunka told City Council today that consultants explored the market yesterday and found that they could have saved a little more than the $2.1 million. But questions about the financial stability of bond insurer Financial Security Assurance, plus a generally negative tone in the markets, prompted them to back off.

"I'm hoping for at least $2.5 million in savings," said Mr. Kunka. "We're confident that we can get the deal done."

Council will consider whether to change the way it approves debt refinancing. In the past, it has pre-approved the details of debt deals. This time, it may authorize the administration to pounce on a refinancing deal as soon as it can achieve savings that significantly outweigh the costs.

The city's debt rating was upgraded by Moody's Investment Service last week, but that same credit analysis firm warned that insurer FSA might be headed for a downgrade, roiling the entire municipal debt market.