Atlantic City's council failed to accede to state terms and vote to dissolve its Municipal Utilities Authority, moving the city closer to default, according to a published report.

The city's failure to act meant that New Jersey can demand it immediately pay back a $73 million loan, which required the municipality vote by Sept. 15 to dissolve the authority, the Press of Atlantic City reported.

City officials said they can't pay back the money and are juggling options just as the Miss America pageant takes over the historic city.

Council President Marty Small told the newspaper that there wasn't enough support council members at an executive session to dissolve the authority.

"It's sad to say, but whatever the state does, we deserve," Small said. "People didn't take it seriously. They missed meetings. They claimed meetings were illegal."

The council voted Wednesday to rescind its approval of the loan, but the action did not receive the required two-thirds majority, Legislative Counsel Robert Tarver said, according to the newspaper.

Previous efforts to dissolve the authority also have failed to pass.

The city has until November to develop a five-year financial plan to avoid a state takeover. The $73 million loan was designed to help Atlantic City stay afloat until then.

Those were the provisions of a rescue bill signed into law by Gov. Chris Christie, ending a dispute with state lawmakers and city officials on how to address the fiscal problems plaguing Atlantic City, which saw its tax base shrink by 70 percent amid a rash of casino closings the last two years.

Jonathan D. Salant may be reached at jsalant@njadvancemedia.com. Follow him on Twitter @JDSalant. Find NJ.com Politics on Facebook.