"Last year was a great year for Los Gatos," Decker said in her opening remarks, in which she cited the renovation of the Town Plaza and downtown streetscape project as 2002 accomplishments. Decker also took time out in the beginning to recognize former Mayor Randy Attaway for his work with the town.

Quickly changing tones, Decker dove into an overview of the economic health of the state and town. Gov. Gray Davis' proposal to take vehicle license fee backfill money away from municipal governments—and his recent veto of an Assembly bill that would have ensured the money be kept in the town's coffer—could mean an estimated $1.8 million loss for Los Gatos over the next two years, the mayor reported. The resulting 7 percent reduction to the town's general fund would be "a serious financial loss for our town."

Yet the mayor cast a ray of hope in the largely dismal economic forecast. Due to sound financial management in years past, the town has strong reserves to draw upon, she said: "Our fiscal outlook remains optimistic—guardedly optimistic."

The mayor also encouraged Los Gatans to "keep sales dollars in the town." According to Decker, the town receives only one penny from every 8.25 cents generated in sales tax. Other money-generating sources for the town have seen a decline in the past year, such as the hotel/motel tax and interest earnings from bank accounts. Furthermore, while revenue from property taxes has remained stable, the town only receives 12 cents from every property tax dollar.

Following the discussion of fiscal health, Decker turned her attention to the various partnership programs in town. The economic vitality program aims to attract new businesses while retaining existing ones through expanded communication with merchants. Also, the town will establish an economic advisory committee to further investigate ways of enhancing the business community.

The mayor also told citizens to watch out for town hall meetings to come to the different areas of Los Gatos. The goal is to encourage representation from the various segments of town. In addition to rotating the location of town hall meetings, communication efforts also include the live taping of council meetings beginning Feb. 18, Decker noted.

The first half of this year should see more streetscape improvement projects to the downtown area, including work on sidewalks and the installation of underground storm drains. The town is also looking at incorporating gateways at key locations to enhance the identity of Los Gatos.

Finally, in what the mayor called a "priority partnership," the town will work with Los Gatos High School (LGHS) to address alcohol use among youths—an initiative that began not long after LGHS senior Eric Quesada lost his life following a drunk driving accident last November. A community meeting is being considered for early March to address this issue.

"The goal will be to take a town tragedy and turn it into a commitment ... to work together to enrich the lives" of Los Gatans, Decker said.

The mayor's 15-minute speech was delivered to a house packed with town staff and local residents who gave her a standing ovation.

"It was short, to the point and informative," resident and library board Chairman Karl Pearson said of Decker's speech.

Like others who attended the event, last week marked the first time that Dale Hill, a Los Gatos resident of 38 years, had been to a State of the Town address. This year's staging of the address at the council chambers differed from previous years, when the speech has been given during the Town of Los Gatos Chamber of Commerce's board installation dinner.

"I don't know why the Chamber should be the only people to hear the mayor," Hill said, adding her approval of the new format for delivering the address.