Roanoke Rapids city council at its budget work session Thursday will discuss a possible agreement to help lower its theater debt.

Council discussed the matter at its meeting Tuesday night but opted to continue discussion at its budget work session, set for 3 p.m. in the first floor conference room of city hall.

Discussion will center on a proposal from Davenport & Company, a Richmond, Virginia based, financial firm which has been recommended by the city's bond counsel.

Financing options for the theater were discussed at council's retreat earlier this year and brought up again at last week's work session.

The company, according to a copy of the proposed agreement, would do the following:

Provide a comprehensive debt profile of the city.

Model the city's existing debt obligations.

Identify fixed and variable components.

Analyze the method and timing for for resetting and negotiating those agreements.

Provide the city with a series of sensitivity analyses which measure the impact of various scenarios on the city's annual debt service schedules.

The company will identify all potential refunding and restructuring opportunities for the city's tax incremental financing including:

A negotiated re-amortization schedule including annual payment restructuring and term extension.

The issuance of special obligation refunding bonds.

The issuance of Rural Development refunding bonds including a Rural Development Loan Guarantee obligation.

A public-private restructuring agreement.

Other options.

"For these services, Davenport will charge a financial advisory fee based on the time spent working on the engagement in accordance with the schedule of hourly charges ..." the document said.

Ted Cole, a representative from the company, told council it could cost between $35,000 to $50,000 to do the work.

What makes the work cost that much, he said, is the funding of the theater is complex. "It's part variable. It's part fixed. There's a swap on the financing."

He said, however, the company would be able to identify a number of potential strategies.

He said the city also needs to remember the possibility of selling the venue remains an option.

"It's certainly an expensive item," City Manager Paul Sabiston said. "Given the fact it's a $21 million debt, I think it's worth having a professional give us an idea on how to save money."

If the analysis were to save the city $250,000 on its $650,000 payment, "That's $250,000 to go back in the budget for others uses," the city manager said. "We may bootstrap that savings on other savings."