City Finance Director MeLinda Hite told council at its work session this evening Davenport & Company, which the city has used before to help it understand the implications of refinancing the debt, will do its work in two phases. The first phase will consist of the solicitation and assessment while the second phase will consist of implementation and closing.

Davenport will come before city council once three prospects have been chosen, Hite said.

City Manager Joseph Scherer explained that Phase I would be a research phase.

Of particular importance to the city is trying to renegotiate a $3.7 million penalty for refinancing the debt with Bank of America, which crafted the initial agreement. “I hope we can really argue that point,” Councilman Greg Lawson said. “Refinancing that bond and including that penalty, I don't see how it would be feasible.”

Scherer said following the meeting Phase I will cost the city $30,000 while the second phase would cost $50,000. “We're required to use a firm like this in a refinancing package.”

Taking this step, the city manager said, shows the city is serious about refinancing the debt as well as realizing savings. “We're serious about stabilizing that loan payment.”