Norwich — Mayor Deberey Hinchey acknowledged in her annual State of the City address Tuesday that 2016 “has not been a year without controversy,” with a brief mention of her participation in a trip to the Kentucky Derby and the City Council's recent vote to demolish the Reid & Hughes Building.

“There have been two ethics complaints filed regarding my participation in a trip to the Kentucky Derby,” Hinchey said in her only reference to the trip. “The Ethics Commission will be taking this matter up at a meeting to be scheduled.”

The Connecticut Municipal Electric Energy Cooperative has hosted lavish trips to the Derby for the past four years. Hinchey attended the 2016 Derby trip, which cost CMEEC $342,330 for 44 participants.

Hinchey also touched on the New Year's weekend fire that destroyed the home of seven businesses at 598 W. Main St. and the recent closure of two long-standing businesses in the blue-collar Greeneville district: the 100-year-old Atlantic Packaging Corp. and the 65-year-old A.P. Savage Supply hardware store.

“These two businesses have been fixtures in Greeneville and we share with the people of Greeneville and the owners of these businesses their sorrow over these losses,” Hinchey said.

Hinchey listed several new businesses that have opened in the past year, including downtown restaurants, new additions to the city business park and the Norwich Community Development Corp.'s new shared workspace, Foundry 66. Hinchey also noted progress being made on long-awaited projects expected to boost the city's tax base. She added a hopeful outlook for future projects in the works.

She touted one positive development with CMEEC and NPU, the August completion of the new solar energy project on Stott Avenue in the Stanley Israelite Norwich Business Park, a project expected to generate enough electricity to power 8,400 homes and boost NPU's renewable energy portfolio to 20 percent when added to existing hydro power facilities.

Hinchey then turned to city staff and activities in several city departments that have saved the city significant dollars, improved services and brought in new revenue to the city. For example, changing the city's insurance carrier saved an estimated $400,000 for city and school properties, and refinancing portions of city debt saved $165,000 in interest costs, Hinchey said.

Two key retirements of city officials occurred in 2016: longtime Planning Director Peter Davis last spring and police Chief Louis Fusaro in July. The city also hired a new tax collector, Kathleen Deal, and City Planner Deanna Rhodes.

On Feb. 1, new City Manager John Salomone started his tenure in Norwich on the eve of the city budget preparation. Hinchey praised Salomone's thrifty city budget that represented a 1 percent reduction in spending over the previous year.

“It was important during this budget year to slow the growth of expenditures as state aid was either reduced or, in some cases, eliminated,” Hinchey said.

Hinchey, a member of the Connecticut Conference of Municipalities Executive Committee that advocates for state aid to cities and towns, said last week's new announcement of mid-year state budget cuts to cities and towns will bring new concerns.

“This cut to already designated funds is difficult, but as we all know, the financial difficulties of our state impacts our revenues,” Hinchey said.

Throughout her 35-minute speech, Hinchey praised the fortitude and perseverance of city businesses, nonprofit agencies and city departments in response to both crises and ongoing issues.

She highlighted United Community and Family Services, which has expanded its staff from 366 to 390 in 2016 and also stepped in when Child and Family Agency was forced by state budget cuts to close three local school-based health centers. This month, UCFS will take over operations at school-based health centers at the Sixth Grade Academy, Kelly Middle School and the John B. Stanton Elementary School “without benefit of any additional funding,” Hinchey said.

“I use UCFS as an example,” Hinchey said. “I could have named and highlighted other entities ... These many businesses provide examples of what is done every day to provide quality of life and service to Norwich residents.”

c.bessette@theday.com