Patrick Kwok, the new Cupertino mayor and a 24-year resident, gave the address to a capacity crowd, outlining the challenges ahead for the city while also highlighting its strengths.

"People come to Cupertino for its schools and quality of life," said Kwok at the Jan. 26 event at the Quinlan Center.

"It's a city of strong neighborhoods and strong city council," he said, while noting the city will need such resolve to tackle difficult choices.

"In the next year, we'll have to make tough decisions," said Kwok, who succeeded Sandra James as mayor in December. "There is no panacea."

In particular, Kwok cited difficulties imposed by budget constraints due to the national recession. Cupertino has experienced tough economic times of late, dating back to the end of the technology boom in 2000. During that time, revenue from sales taxes has also declined. Sales tax revenue generates 35 percent of the city's general fund. Carol Atwood, the city's director of administrative services, recently told The Cupertino Courier that the city's annual sales tax revenues are approximately $2 million below the $10 million collected in an average year.

As a result, Kwok told the crowd he would promote strong fiscal management. "I will work bring down the deficit," he said, promising to streamline city bureaucracy, refinance bonds, secure more grants and strengthen the retail market, including returning Vallco Fashion Park to prominence.

Kwok also advocated for smart growth--an ongoing topic of concern in Cupertino--calling it "unavoidable." As a part of his smart growth policy, Kwok said he would work to reduce traffic and add to the number of housing units, including those available at below market rates.

Kwok, an environmentalist with a long career in environmental engineering and waste management, also promised to protect Cupertino's natural resources. "We need to restore the natural environment and provide trails," he said. Kwok said he would work to raise money for areas such as the Stevens Creek Corridor, McClellan Ranch and Blackberry Farm.

"We face an uncertain future and difficult choices," Kwok said. But he encouraged the crowd to remain optimistic as the city celebrates its 50th anniversary.

"We must strive to uphold the qualities that make Cupertino special," he said, "and work together for new solutions. The future is bright."