A potential $3 million break on debt payments sounded good to city of Pittsburgh officials yesterday. But agreeing on what to do with the money -- pave streets, pay pensions, clean lots or clear debts -- could prove tough.

Mayor Luke Ravenstahl wants to refinance around $72 million in decade-old debt, figuring lower interest rates will save money without extending or boosting future payments. His administration introduced legislation to council yesterday to do just that.

"If we're talking about a situation that nets us $3 million and doesn't extend the maturity date and doesn't increase payments in the out years, then yeah, I think it's worth doing," said City Controller Michael Lamb.

In some meetings with council members, the administration has floated the idea of spending some of the savings on street paving, to cover rising asphalt prices.

Mr. Lamb said families are scaling back, and so should the city. "We've got a budget. Let's live within it."

Ultimately, council decides how to spend money. Yesterday there was no consensus there.

"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, said Finance Director Scott Kunka. In May, it held $375 million.

Mr. Lamb said putting it toward pensions, repayment of part of the city's approximately $765 million in debt or into the capital improvements account for future years would be fine.