MAYOR DELIVERS UPBEAT REPORT ON CITY'S STATUS.

Byline: Mariel Garza Staff Writer

Despite looming cuts in services and hikes in fees, Mayor James Hahn proclaimed in his annual State of the City speech Thursday that Los Angeles is ``strong'' and ``united.''

He touted his effort to hire police officers and boost public safety despite the current city budget woes, steps to empower neighborhoods and lessons learned from deep discontent at City Hall expressed during last year's secession debate.

``Los Angeles today is a strong and vibrant city united by the faith in our country and each other. We are ready to meet the challenges of the future,'' Hahn told an audience of about 250 who gathered at the Police Academy, a location picked to underscore his emphasis on public safety.

Hahn noted the tough economic times of the past two years and that next year's budget will include spending cuts, reportedly involving tree trimming, street paving and other services. His budget plan to be revealed today also is expected to include a variety of fee increases for trash pickup, sewer services, municipal golf courses and zoo admission.

``We have had to reduce spending in many areas,'' Hahn said, ``but because we took decisive action early, we have been able to identify resources, fund key priorities and maintain a strong financial footing.''

Hahn brought up the failed San Fernando Valley and Hollywood secession bids, saying they made officials look at how the city does business.

``Last November the voters of the city sent a clear message: Keep Los Angeles united,'' Hahn said.

``We in city government must be consistently critical of how we deliver services, to see where we need to improve.''

Hahn touted the steps his administration has already taken, from initiating the Teamwork L.A. effort to regionalize city services last fall to the ``Eyes on the Neighborhood'' program he announced this month to get all city workers to look for and report neighborhood problems.

But public safety dominated the speech, with Hahn repeating his oft- mentioned goal ``to make Los Angeles the safest large city in America.''

City Council members seemed to line up with the mayor.

``When you lead the country in murders, that's an issue we need to address,'' said West Valley Councilman Dennis Zine. In 2002, Los Angeles had more homicides than any other U.S. city.

Hahn's message was warmly received by those gathered at the Police Academy, including council members, city commissioners, department heads, and union and community leaders.

``I'm glad to see the priority is public safety, and not just in talk but in terms of action, also,'' said City Council President Alex Padilla.

Even some critics of the mayor were less harsh than usual, in their assessment of the mayor's address.

``I think Hahn wants to make a difference, is trying to make a difference,'' said Richard Close, one of the main forces behind last year's Valley cityhood battle and a critic of the city's status quo.

``But he is too closely aligned with the unions to really effectively reorganize the city.''

Leonard Shaffer, a member of the Tarzana Neighborhood Council and a deputy district attorney for 30 years, said improving public safety is a big concern for him and his neighbors as well.

``Of the people I've spoken to, none object to spending money on new cops. Maybe on other things.''

Business leaders also agreed that having more cops on the street - particularly in the Valley where distances are greater and police response times are traditionally highest - could improve the image and the reality of life in the city.

``That's good. We like the idea of more cops,'' said Bill Powers, chairman of the United Chambers of Commerce of the San Fernando Valley. ``It's a step in the right direction.''

Hahn touched on the business situation in Los Angeles, but not as much as business leaders would have liked, particularly when it comes to reforming business taxes.

Real estate values are high, Hahn said, and the city had more new startup businesses in the city than ever. But critics said those assessments have some dark flip sides and that Hahn's statement that the city is stronger than ever is simply untrue.

``Not in the least,'' Powers said. ``The reason that property values are escalating is because we have no property for expansion.''

And the flourishing of startup businesses hides the fact that large companies are leaving Los Angeles because of the cost of the city's gross-receipts tax, which Hahn and others have talked about reforming but have only started to do so, said business leaders.

``There's a huge 'comma-but' that should go with that statement,'' Bruce Ackerman, president of the Economic Alliance of the San Fernando Valley, said of Hahn's quick economic assessment.

``We are still, from a net employee standpoint, less than we were in 2000. In the Valley alone, we're 6,000 to 8,000 jobs below 2000. And even though a lot of businesses started up, how many businesses went out of business? How many people lost their jobs?''

The mayor's plan calls for hiring 720 LAPD officers next year and the city estimates it will lose 400 officers due to retirement, resignation or other reasons, for a net increase of 320 police officers in the next year.

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2 photos

Photo:

(1 -- color) Los Angeles Mayor James Hahn delivers the State of the City address at the Police Academy on Thursday.

(2) Los Angeles Mayor James Hahn delivers the State of the City address Thursday at the Police Academy. Hahn touted his efforts to hire police officers and boost public safety despite the current city budget woes.

John McCoy/Staff Photographer