ESCONDIDO -- The City Council wasn't too pleased Wednesday with the city's preliminary budget plan that suggested using police and maintenance savings to offset a $5.1 million debt in the $73.4 million general fund next fiscal year.

But city leaders gently reminded members that in the current economy forecasting budget deficits until at least 2006, there isn't much choice.

"This budget is on step for the future," said City Manager Clay Phillips. "We need this plan now to get to a place where you can replace these funds one day."

The council won't make a final decision on the budget until June, but members told finance officials Wednesday that they were concerned about two areas of funding that would be lost in order to bring the final deficit to $1.9 million for the next fiscal year. The debt would be paid with $12.8 million in a city reserve fund.

First, the council disliked a recommendation to use $357,000 in a $1.2 million savings account for upgrading the Escondido Police Department's Weapons Training Facility at 25855 Valley Center Road. The Escondido Police Department asked that the money go to one-time costs of training new officers.

The Police Department expects to have three times as many officers -- about 12 -- leave in December because of better retirement funds slated to begin in October.

Council members worried that the city would try and regain the money for the training facility when it goes to the voters with a $77 million public safety bond in November. The $5 million cost of overhauling the training facility is already among the lists of needs.

"I don't want to see us take money away from the firing range and then tack it onto the public safety bond," said Councilwoman Marie Waldron. "We need to tighten our belts."

Secondly, council members didn't like the city's suggestion to take $450,000 from the vehicle replacement reserve for the next fiscal year. The money would be replaced the following year.

"I know we have got to draw the money from somewhere," said Councilman Ron Newman. "But my concern is pulling this money out now will come to bite us in the rear end when we need to replace all of those vehicles."

But Mayor Lori Pfeiler said the money is all from the same general fund.

"We have done this in the past," she said. "We have taken money from the reserve funds and then the next year, we put it back."

And there is little choice in these dire financial times, said Joy Canfield, the city's finance manager.

"This is the first time since I have been here that our budget was not balanced," Canfield said of the last 10 years.

She estimates the scenario won't get better until possibly 2006-07. Next year, the deficit is estimated at $2.1 million. The city may see a surplus of $1.2 million if state funding comes in two years. The city's general fund budget should be balanced by 2007-08, she added.

Although the city is expecting a 4 percent to 5 percent growth rate next year, that is overshadowed by an extra $5.8 million in benefit costs for all city employees, Canfield said.

The city is also losing $600,000 in county booking fees the state used to pay for the cost of processing Escondido residents in jail.

To counter the extra costs, city departments were not allowed to increase costs except for what is required by labor contracts.

The preliminary budget plan also calls for hiking fees for towing licenses, paramedic service or for businesses with too many false alarms that contact police. The city would also begin a registration fee for new businesses that set up alarms to the Police Department, according to the budget plan.

After the council's discussion, finance officials will continue to tinker with the numbers before the final plan is approved in June, Canfield said.

Contact staff writer Erin Massey at (760) 740-5416 or emassey@nctimes.com.