ESCONDIDO -- Facing a projected budget deficit of nearly $6 million, Escondido city officials are considering drastic moves that include closing the East Valley library branch, laying off 19 police officers and asking employees to take voluntary pay cuts.

Other potential actions suggested at a budget strategy session this week included letting the grass die in some city parks, closing City Hall two extra days a month and scaling back the city's recent campaign against graffiti and illegal garage conversions

No decisions have been made on cuts to the city's $85 million annual budget. But City Manager Clay Phillips told the City Council's budget subcommittee Wednesday that he would like to make significant cuts by early January.

Plummeting revenue from sales tax and other sources has more than tripled the projected deficit for the current fiscal year since late June, an increase from $1.7 million to $5.9 million, said Phillips.

"The magnitude of this drop-off in revenue means we have to act quickly," Phillips said.

The budget subcommittee, which consists of Mayor Lori Holt Pfeiler and Councilman Dick Daniels, asked Phillips to present a list of suggested cuts at their next meeting on Nov. 19.

Without budget cuts, city officials say they are projecting $84.6 million in expenses and $78.7 million in revenue for the year.

The city's reserves have dropped from $14 million to $7.3 million in the last two years, and the $5.9 million projected deficit for this year would take them below $2 million.

No city employees have been laid off since the economy began slowing last year, but Phillips said it is probably impossible to avoid layoffs now because $73.8 million of the city's budget is devoted to employee salaries and benefits.

"There's no way to deal with this without affecting the number of people you have or the amount of money they make," Phillips said.

Employees may be willing to take pay cuts in order to avoid layoffs, Phillips said. But if each employee agreed to a 1 percent pay cut, the city would only save $600,000. So cuts of nearly 10 percent per employee would be needed to cover the entire $5.9 million, he said.

Phillips recently asked each department head to suggest possible 3 percent program cuts, which would yield $2.4 million if every department complied.

Police Chief Jim Maher said Wednesday that a 3 percent cut would require laying off 19 of the department's 155 police officers.

Jerry Van Leeuwen, director of community services, said the city might stop watering the grass in some parks in order to adequately care for others. He said such an approach might be preferable to cutting back on maintenance in all city parks.

Phillips provided specific savings estimates for a list of other potential cuts Wednesday.

Closing the East Valley library branch would save $125,000 this fiscal year and $506,000 in a full year. Laying off 15 police employees, including 11 sworn officers, would save $346,000 this year and $1.3 million in a full year. Eliminating the city's code compliance campaign would save $600,000 this year and $765,000 in a full year.

Before discussing the possible cuts, the subcommittee got a discouraging update on revenue from city budget officials.

They said that sales tax revenue is expected to decline 8 percent -- at least.

"The number you're chasing is a fluid number," said Gil Rojas, the city's finance director. "We don't want to sound the doomsday alarm, but these estimates are pretty optimistic."

Recent business closures have worsened the problem, he said. The city will lose an estimated $400,000 in sales tax revenue this year from the closures of Mervyns, Circuit City, Witt Lincoln-Mercury and Budget used car sales.

In addition to a nearly $2 million projected drop in sales tax revenue, the city is projecting an $873,000 drop in property tax revenue, a $243,000 dip in hotel tax revenue and a $356,000 decrease in revenue from business licenses.

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