"The city is in good shape," Lowenthal told the capacity crowd at the Quinlan Center on Jan. 26.

In particular, Lowenthal spoke of an improving economic climate in the city after several years of budget difficulties.

The city's financial crunch has been exacerbated by its dependence on retail taxes. Due to Proposition 13, Cupertino is one of four cities in the county that receives the least revenue from property taxes. Lowenthal is part of an effort to change this discrepancy, a move that could add $2 million to the city's coffers.

The city's financial crunch has been exacerbated by its dependence on retail taxes. Cupertino is one of cities that receives the least revenue from property taxes.

"After five years of financial pain, we have turned the corner and revenue is on the way up," he said, while noting the economic situation forced the city to charge fines and permit fees. As a part of that growth, Lowenthal also pointed toward an increase in jobs in the community. "We have 32,000 jobs now, and its growing at 1,000 per year," he said.

He also touched on the success of city staff in securing grants to help fund civic projects. Therese Smith, director of Cupertino's parks and recreation, for instance, secured a $4 million grant for the Stevens Creek Corridor Parks. The city was also awarded a $9 million grant for the coming bicycle and pedestrian bridge across Highway 280 near the 85 interchange.

Even so, Lowenthal also stressed there was room for improvement.

"We could use more things to do in

Cupertino," he said of plans for a revitalized Vallco. "And the theaters will bring in other businesses and are going to attract quality new retail."

As a part of his goal to improve Cupertino, Lowenthal also highlighted

the new, city-owned 60-acre Stevens Creek Corridor Park. He said the park, used by just 15 percent of city residents, would be more accessible and affordable for those living in Cupertino.

Finally, Lowenthal addressed Cupertino's changing demographics. Referring to a November Wall Street Journal article alleging white flight in Cupertino schools, Lowenthal disputed the reporter's findings.

"We are preparing our kids for the real world and are growing kids equipped for a global economy," he said. "Globalization is happening, and happening in Cupertino first."