I appreciate the opportunity to join you today for my 20th State of our City address.

It comes at an extraordinary time.

And I don’t mean because it’s March…not January … when we traditionally gather for this event. January’s historic ice storm knocked us off our usual schedule …. and cleanup crews are still knocking themselves out….working extra shifts… to pick up broken tree limbs and branches piled along our 3,000 miles of city roads.

And not just because Downtown Rotary members faced an unprecedented test of loyalty today: Lunch with the club? Or devotion to Terrence Williams, Andre McGee and the rest of the U of L team playing their Big East quarterfinals game right now at Madison Square Garden? Are there U of L fans here? I figured most of our lunch crowd would be UK fans – and I aim to finish so you can make your game’s 1 p.m. tipoff.

I said earlier that these are extraordinary times. You know these truly are extraordinary times when you find yourself quoting Charles Dickens’ “Tale of Two Cities:”

“These are the best of times and the worst of times.”

Or Winston Churchill, who said: “A pessimist sees the difficulty in every opportunity. An optimist sees the opportunity in every difficulty.”

Well, I am an optimist.

It would be easy to focus only on the worst aspects of these times -- the economic crisis that rocks the headlines and the lives of so many people every day.

More than 22,200 Louisville residents were receiving unemployment checks at the end of January – the most current figures available…There were enough new cases in December alone (more than 16,000) to fill Freedom Hall.

Whether it’s retirement and college-savings accounts dwindling …or businesses struggling to stay afloat in the rapid currents of change... few lives have been untouched.

A number of local development projects ... large and small… have been put on ice till the economy thaws.

And state and city governments, including the city of Louisville, are facing revenue shortfalls and budget cutbacks…with no end in sight.

Three times in the past few months, I’ve joined other large-city mayors to meet with President Obama and his top staff.

“We are at a precipice, “ one advisor told us. …describing the economy.

Whether you see us at the edge… or at a crossroads… we are in uncharted waters.

We can debate various aspects of the stimulus plan … argue whether this aspect or that approach… is the best way to bridge these troubled waters.

But the bottom line is that the economic stimulus program passed by Congress represents an unprecedented response to unprecedented challenges.

And we need to mobilize to make the most of it for our city and our region.

We are doing just that. We have hit the ground running, focusing on resources and opportunities, establishing 10 work teams related to key initiatives in the economic stimulus program. Across this community we have brought together partners from TARC to MSD, from JCPS to local universities, from the homebuilders to social-service agencies to work together. Metro Council members sit with every work team and our hard-working congressman John Yarmuth is also represented.

Recognizing our fast start, Vice President Joe Biden asked me to join several other mayors representing a small circle of cities to provide perspective to the White House over the months ahead on how effectively the recovery legislation works for metropolitan areas.

Our goal is simple: to create jobs … create jobs … create jobs.

Rarely in our history has there been such a strong collaborative focus on strategic investments that will both put people to work and leave as their legacy important public improvement projects … like the investments in mass transit and public housing we announced earlier today. TARC will spend $17.6 million purchase 10 hybrid buses, build an energy-efficient maintenance facility and other capital projects … to create a total of 250 jobs. The Housing Authority of Louisville will spend more than $2 million on projects that will create 80 additional jobs. This is the first round of Louisville at Work funding – that’s the name we’re giving our economic stimulus initiatives. Other legacies will range from cleaner water to more energy-efficient buildings, from modernized schools to enhanced roads and bridges throughout suburban Louisville.

At the same time, we will make strategic investments in our greatest resource – people. … education and job training that will prepare our children and our workforce in rapidly changing times.

o We believe that the hundreds of billions in federal legislation is likely to result in at least $200 million. Some money comes directly to cities, based on formulas. So, for example, we may receive an extra $14 million for public housing over the next 2 ½ years and an extra $5 million for job training in the metropolitan area…from helping young people look for their first jobs this summer … to retraining workers who’ve lost jobs. Some economic recovery money goes to states for distribution – just as the state distributes road funds … the latest two-year state road plan, in fact, has a long list of important projects for our community -- from improving intersections and substandard farm-to-market roads to widening part of I-64 and repaving part of I-65. The economic recovery plan also includes a multitude of grants we can compete for – quickly, in the next several months -- in areas from health to housing, from transportation to technology.

o I mentioned work teams a moment ago. Under the umbrella of our collaborative effort called Louisville at Work, these 10 teams have begun meeting in the past two weeks … setting priorities and developing applications. You can go to the city’s website Louisvilleky.gov and add a slash (/) and the word “recovery” (www.louisvilleky.gov/recovery) to keep up with plans as they take shape.

o If you follow the national news, you know the speed at which the federal government is moving in this economic recovery effort. Each day we learn more about allocations, options, criteria, requirements … and gradually the picture becomes clearer. Our public schools will get significant infusions of funds. We know we will be expanding water lines and strengthening floodwalls and waterworks so, for example, city streets don’t flood because of a 50-year-old pumping station located in western Louisville. The cost to replace it: $35 million, creating about 300 new jobs. These stimulus funds also will help us maintain our police force at its current strength…weatherize homes to lower utility bills; create more affordable housing; and help prevent homelessness.

If you work in real estate or construction…job training or technology … engineering or education… law or health care or any number of other fields … you may be following all of this with special interest.

I keep on my desk a Washington Post headline from the first announcements of the stimulus plan. It says, and I quote: “Government gets chance to prove it can work.”

It calls it a “historic opportunity…the ultimate test of government's ability to deliver, from a vast array of federal agencies and departments down to state and local offices across the country.”

I take that challenge seriously. I want Louisville to be a national example of how to do this right.

Earlier…I said it was also the best of times…because we do have tremendous strengths in this community.

In the shadow of dark economic times…. I also see a larger landscape… strengths we can build on…from housing values that have held their own far better than many areas of the country … to our shared vision for a livable and distinctive city...a commitment to keep making investments where we can…so we will be in a strong position when we see the light at the end of this long economic tunnel.

o I see our city’s diverse economy…from our largest corporations to dozens of young, small companies from Internet services to life science research. During 2008, at least $23 million was invested in more than 30 growing local companies, according to GLI statistics.…companies with names like Greener Way and Simpak, 3DR and Smoothstone Communications…all potential success stories that will help provide the jobs of tomorrow. Just last week we announced two new high tech operations in Louisville involving CocaCola and a company called Telamon.

o A transformation continues to move forward at Fort Knox, where 4,000 new professional civilian jobs will be located in the next 4 years….the equivalent of a new corporate headquarters in our region.

o I look around downtown and see continuing progress: How many of you have stopped to marvel at the foundation taking shape at Second and Main? It is nothing short of astounding to see swarms of workers and trucks and a half-dozen cranes transforming this hole in the ground into a multipurpose magnet for sports and entertainment fans…thanks to the strong arena partnership. . . that included the state, our city and the private sector.

o Our health sciences institutions continue to grow in 2008 …with a new U of L outpatient center, research building and parking garage… …. and major expansions of health services in our suburbs.

o At Waterfront Park, we will unveil our Lincoln memorial later this year… a sculpture and panels that tell the story of the president who most inspired our new president. At the same time we will dedicate a new walkway that connects the entire length of the park along the river’s edge.

o We will be dedicating two new firehouses this year and beginning construction on a third, as well as the first phase of our new Animal Services Center.

o Our MetroSafe emergency communications system …which links the region’s first responders for the first time… will become fully operational at its downtown headquarters this year.

o While some park projects have been delayed by budget cuts, we remain committed to green space …from athletic fields to children’s spray parks…because they add to quality of life. Along the Floyds Fork corridor...one of the nation’s largest park expansions continues to take shape. We held a pedestrian summit last year – and set goals for this year and beyond to make Louisville a more walkable community. We will continue to raise our national profile as a bike-friendly city with bike stations and other improvements as funding allows.

o Our clear-air program made headlines in USA Today as a national model. In addition, the EPA chose Louisville as one of its key Energy Star partners and hundreds of people in the private and public sectors are working to go green, knowing it will save green: In fact, the managers of 250 Louisville buildings are competing right now to win awards by cutting energy use.

I could go on.

The point is this: Even in the shadow of difficult times, our community continues a cycle of energy and renewal.

That’s because we have a tradition of hard work and teamwork.

And that tradition and commitment will help us ensure the success of our hometown in both the best of times and the most challenging of times.

As an optimist…like Winston Churchill…I see opportunities ahead. And I look forward to working with you to fulfill them in 2009.

Now I’d be happy to hear comments and answer questions.