Schaaf began her state of the city address with a performance by lion dancers.
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RELATED: Thousands of Oakland workers go on strike after failed negotiations
Schaaf says Oakland is a great place to live, but many have been priced out of the market. One of her goals for 2018 is more affordable housing. "More funding sources for affordable housing that's what Oakland needs," Schaaf said during her address.
The mayor says the creation of a citizen's police commission will bring more accountability to the Oakland Police Department.
"Over the last five years we have reduced police misconduct claims by 58 percent," Schaaf added.
She also says the violent crime rate has been on a four-year decline. "Even one homicide is too many. We still have work to do," Schaaf said.
Oakland Police Chief Ann Kirkpatrick says OPD needs more cops. "We are in need of 45 officers to get back to compliment level and prepare for future growth."
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City workers and members of SEIU local 1021 held a one-day strike in front of the Islamic Cultural Center where the mayor gave her speech. The union wants a new contract from the city. They hope the mayor was listening.
"We have 2,000 members. Many are part time with no benefits or pension," said union member Lina Hernandez.
The mayor said she respected the union's protest, "I want to give every city worker a round of applause."
She also took time to reflect on the Ghost Ship Fire which claimed 36 lives. She vowed that a tragedy like that can never happen again.
Click here for more on the labor strike and Libby Schaaf's State of the City address.