On Tuesday, the city controller released the 2007 City Survey that measures the opinions of San Franciscans on the public services they use and experience day to day.

The results reflect the optimism that I feel as a San Franciscan — proud to live in a city where in the last three years, unemployment is down 38.6 percent, universal child care and after-school programming for all public school children is being realized, and health care access for all uninsured is on track to begin in July of this year.

The survey, which asks residents to grade the quality of city services, found that 40 percent of San Franciscans gave city government an “A” or “B” rating — higher than any prior survey. It also found that 64 percent of our families are planning to stay in San Francisco, the highest rate recorded since the survey first asked the question six years ago. Libraries continue to enjoy high ratings and satisfaction. And health insurance coverage is on the rise.

The survey results, though, also clearly reflect the daily frustrations that I hear from San Franciscans as I ride Muni, walk the Tenderloin, meet with residents worried about the recent spike in homicides or talk with parents about our schools and the high cost of living.

Overall, residents give San Francisco a “C+.” Ratings for Muni declined for the third year in a row, with the agency receiving a “C” or lower for reliability and on-time performance. A majority of residents gave the condition of our sidewalks and streets a “C-.” And while the majority of residents — some 80 percent — say they feel safe in their neighborhoods, feelings of safety continue to decline in the southeast, where 45 percent of residents say they feel less than safe walking alone during the day or night.

The fact is, if you brought grades such as these home to Mom and Dad — you’d be grounded.

The condition of our streets and sidewalks, the reliability of our public transit system and the safety of our communities are the fundamentals of daily living. When the bus is late, the street is strewn with litter, or more significantly, a neighborhood is marred by violence — all of San Francisco is diminished.

As I see it, the city survey highlights our need to do better. And that means getting back to basics.

That’s why I am working with my staff to craft a responsible, balanced budget that will address critical, basic areas that need improvement. Including repairing potholes and repaving streets. Cleaning up parks and planting new street trees. Expanding our Clean Corridors program to keep key commercial corridors such as lower 24th Street clean and safe. And funding for 250 new police recruits — augmenting the 354 new officers we’ve added to the police force since 2004 — moving us toward our goal of 750 new officers by 2009.

But that’s just for starters. This year’s budget will expand our successful Housing First strategy that in combination with programs such as Homeward Bound, has moved 4,795 individuals off the street and into permanent supportive housing or helped them return to their communities outside of San Francisco. We will also increase our Homeless Outreach Teams — one of the most effective resources available to move homeless individuals off the street and into supportive services.

And while Muni and its parent agency, the Municipal Transportation Agency, have a separate budgeting process, I will continue my push to ensure that the results of the Transit Effectiveness Plan — the first comprehensive review of Muni in 25 years — are put to work to improve daily Muni operations. It’s worth noting that key TEP reforms are already in place on a pilot basis and showing results in better on-time performance and reliability on the 1-California and J-Church lines.