In his second inauguration speech, Mayor Mufi Hannemann emphasized last night the problems the city faces as the nation's economy continues to slump.

“;These are difficult times, like no other we've seen in recent memory,”; Hannemann told a crowd of about 1,400 at the Hawaii Theatre last night.

“;The meltdown in the financial industry has been a contagion that has spread across the globe and infected nations and just about every corner of the global economy. Hawaii has not been immune.”;

Hannemann described the economic problems facing Honolulu as “;daunting and difficult.”; The city is facing a “;commensurate”; drop in real property taxes—the city's main source of income—that would affect every facet of city government, from police to roadwork, Hannemann said.

The city has tightened its budget and is considering all options, including raising property taxes, to make up for the dip in revenue, Hannemann told reporters earlier in the day.

Hannemann said he is meeting with the other county mayors to create more plans to help the economy rather than “;always waiting or deferring to the state to show us the way.”;

City Councilman Donovan Dela Cruz called Hannemann's speech “;positive.”;

“;The message was, 'It's going to be hard, but if we all work together, we can pull through this,'”; Dela Cruz said.

Hannemann was formally sworn in for his second term as mayor in a private ceremony in Kapolei Hale earlier in the day in front of his Cabinet members and family.

Hannemann's speech last night was part of a two-hour public celebration at Hawaii Theatre that then continued into Chinatown's monthly First Friday event.

Hannemann also joined the Hawaii Youth Opera Chorus onstage in singing “;What a Wonderful World.”;

“;You didn't think I'd let this evening go by without singing a song,”; Hannemann joked.

Aides did not have the cost estimate of last night's event, but said it was a fraction of typical celebrations.

The City Council held inaugural ceremonies in the Council chambers at City Hall yesterday to swear in four returning members—Todd Apo, Nestor Garcia, Romy Cachola and Barbara Marshall—and its only new member, Councilman Duke Bainum.