Draft city budget assumes revenue gains.

San Diego's $3 billion budget for its 2007 fiscal year calls for spending $1.38 billion on its general fund, the pool of money allocated to most city services including police, fire and parks.

The city released the budget April 14. The fiscal year begins July 1.

The general fund shows an increase of about 60 percent over last year's $865 million budget and the inclusion of $374 million in pension obligation bonds to address a $1.4 billion pension fund deficit that has hobbled the city's ability to issue debt, and has resulted in multiple investigations into the matter.

The new budget is banking on a significant uptick in revenues for the upcoming year. Among the main sources of revenue are $344 million in property taxes, $235 million in sales taxes and $73 million in transient occupancy taxes.

Despite a call to reduce the current staffing by 500 positions this year, Mayor Jerry Sanders' new budget also calls for the inclusion of 429 "supplemental positions" that were not counted into previous city budgets.

The final tally of all full-time jobs in the 2007 budget is 11,338, but 600 positions are now vacant, according to Sanders.

Sanders said he wants to see the results of a re-engineering study before determining where the cuts will be made.

The City Council begins public hearings regarding the fiscal 2007 budget on April 19. Hearings will continue into May before the final budget is adopted in June.