The news came after an earlier report that Davenport and Company, a brokerage firm, could not secure any refinancing proposals from traditional banks, Hite said in her report.

Quoting Bob High of Davenport, Hite related to council, “Efforts to secure refinancing with non-traditional lenders were unsuccessful.”

Potential lenders and investment groups have declined to submit a proposal mainly due to the uncertainty of the sale of theater, Hite said. “If the status of the theatre changes, staff recommends that the city re-evaluate the restructuring of this debt.”

The monthly cost associated with the 2007 Series Bonds is $63,932.41.

Receipts from HSV Entertainment, which is leasing the theater from the city, for November were $14,500.

Answering a question posed by Councilman Ernest Bobbitt, City Manager Joseph Scherer said lenders will most likely be willing to consider a refinancing arrangement if the venue is sold.

Following the meeting, Scherer said he was disappointed, but still hopeful something can be worked out to assist the city's finances.

Scherer doesn't expect to make any further moves on refinancing arrangements until closer to the time HSV's lease expires in August. He says the city will also confer with Davenport on the matter.

Talks with HSV last week revealed no news on whether it will buy the venue, Scherer said. “Nothing has changed in their business model. They're still working and continuing to do business as is.”

The news this evening came as Scherer unveiled the city's budget calender for the upcoming fiscal year, which begins on January 6 and ends with a budget ordinance on June 20 as well as a public on May 6.

Bobbitt requested a deviation in the process, that being a presentation from department heads to council on mainly capital items. Scherer concurred this could be done.

Scherer said he goes into the budget-planning process cautiously optimistic the city can continue to provide the same amount of services without a tax increase or staff reductions.