Pittsburgh Mayor Luke Ravenstahl's administration has asked City Council to approve a proposed $72 million debt refinancing, and council members have begun debating the use of the anticipated $3 million in savings.

The administration today introduced the legislation to refinance debt issued in 1998 with lower-interest debt. The city's "debt profile remains the same," said Finance Director Scott Kunka. The refinance won't push payments out into the future, he added.

The administration had floated the idea of spending some of the savings on street paving, but that got a cool reception from two council members today.

"I don't think it should just be -- snap -- let's use it on street paving," said Council President Doug Shields. "I'd rather see it allocated to pensions."

The city's pension fund should ideally contain $899 million, Mr. Kunka said. In May it held just $375 million.

"The money should be reallocated to debt reduction," said Council Finance Chair William Peduto. The city owes around $765 million.

If the savings is to be used for improvements, it should be put into the capital improvements fund and steered to projects next year, Mr. Peduto said.

Initial council discussions on the debt plan could occur July 30.

More details in tomorrow's Pittsburgh Post-Gazette.