(13WHAM) Rochester N.Y-Rochester, N.Y.- On Monday night at School of the Arts, Rochester Mayor Tom Richards gave his annual State of the City address.

The speech was titled "Rochester: A City Transformed."

Richards said it was a unique time in the city’s history when, "We are seeing a fundamental change in our circumstances."

He continued by saying he wanted to focus on new realities the city faced. "They include the loss of the industrial base that was largely concentrated in the cities and was the source of stable employment for our citizens," Richards said. "This economy places a premium on education and technical skills."

Richards said he recognized the city’s challenges, some of which include having one of the highest concentrations of poverty in the state and a school system that is struggling.

Richards said he plans on releasing his budget next week and warns that there will be a shortfall in the tens of millions again.