Choppy bond markets have forced the city of Pittsburgh to delay a $72 million debt refinancing plan, and officials yesterday suggested that city council might pre-approve a debt package that could be executed late this month or early next month, while council is recessed.

City Finance Director Scott Kunka told council that consultants explored the market Monday and found that they could have saved around $2.1 million by refinancing 10-year-old debt. Questions about the financial stability of bond insurer Financial Security Assurance, plus a negative tone in the markets, prompted him to back off.

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

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

Through Monday, council will consider whether to change the way it approves debt refinancing. In the past, it has pre-approved the details. This time, it may authorize the administration to pounce on a refinancing deal if it can get savings that significantly outweigh the costs.

The Finance Department has told council that the professionals, rating agents and printers needed to do the deal should cost around $580,000, and insurance should cost $800,000.