ESCONDIDO -- Worsening financial problems at Escondido's performing arts center have prompted the creation of a strategic plan aimed at attracting more patrons and donors from other parts of North County.

"The arts center is in Escondido, but we need to make the entire region realize that it's theirs, too," said Councilman Dick Daniels, who was appointed last fall to a special subcommittee focused on improving finances at the center. "There's no resource like this north of downtown San Diego."

Meanwhile, center officials have also begun to broaden their marketing efforts, by doubling the number of homes mailed brochures announcing the new season of performances and establishing a presence on popular Web sites such as MySpace, Facebook and YouTube.

Ed Gallo, the other member of the council subcommittee, said the strategic plan will also increase expectations for the 15 members on the arts center board of trustees.

"They are the fundraising arm of the center, but many of them got on the board with no expectations," said Gallo. "Sometimes, things have to be spelled out."

Kathy Rubesha, chairwoman of the board of trustees, could not be reached for comment on the plan.

Daniels and Gallo said the plan, which is being crafted in concert with arts center trustees and an outside facilitator, should be ready this summer. Daniels said the subcommittee has helped improve the city's previously rocky relationship with the arts center.

The council has typically pointed to unsuccessful marketing and ticket sales as the primary causes of the center's financial problems, while the center's board has blamed the relatively small size of the venue and increasing competition from casinos.

The center has run a deficit during 11 of the 13 fiscal years since it opened in 1994, and Executive Director Vicky Basehore told arts center trustees at a board meeting Tuesday that this year's deficit will be larger than expected.

Expenses have been $410,000 less than predicted when trustees adopted the center's 2007-08 budget last summer, but revenue has been $623,000 less than predicted, increasing a projected operating deficit from $342,000 to $556,000. The center's annual budget is about $6 million.

In addition, the City Council agreed last week to provide the center with its annual $1.3 million city allocation two months ahead of schedule in order to solve the center's cash flow problems. The allocation is normally given in early July.

Basehore blamed the cash flow problems on recent last-minute cancellations of two performances: Julio Iglesias and Peter, Paul and Mary. Both cancellations were because of illness, so the center did not have to pay the performers, but money spent marketing the concerts could not be recovered, Basehore said. Center officials declined to estimate how much the cancellations had cost.

Some critics say the center is actually running much larger annual deficits, because the city has made a long-term agreement to provide the center with $1.3 million for operations each year. Supporters argue that the center was never intended to turn a profit, because it was envisioned as a cultural amenity.

In order to improve finances, center officials say they have eliminated many fringe benefits for performers, reduced the number of shows and attempted to choose less edgy and risky acts.

They have also tried to increase donations, but the budget Basehore presented Tuesday shows donations had remained essentially the same as the previous fiscal year. The economic downturn has made fundraising especially difficult, officials said.

Center officials said Tuesday they have increased the number of brochures sent out to advertise their new season from less than 70,000 up to 120,000.

Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.