Mayor Eric Garcetti was optimistic for the future of Los Angeles, even when it comes to tackling some of the most difficult issues, like homelessness.

"I recently talked to a friend who told me that her children have grown up seeing the tents all around, and they think it's a normal part of Los Angeles. We can't accept that. We won't accept that," Garcetti said.

Garcetti is setting aside $176 million to house the homeless, up from $138 million last year. The majority of the funds will come from taxes approved by voters last November.

Many people watching his speech agree Los Angeles' homeless problem needs to be dealt with.

"Luckily we finally have a mayor who is addressing the issue," Watts Neighborhood Council, Mac Shorty, said. "They're on Skid row, but they're all over the city."

Garcetti also took a stand on immigration.

"The LAPD will never act as a federal immigration force," he said as the room burst into applause.

But some say they wish Garcetti would do more and declare Los Angeles a sanctuary city.

"It feels like he says the right things, but he's holding back whether it's fear of retribution from the Trump administration or just inherent cautiousness," Scott Doyle with Indivisible Highland Park said.

Also in his annual budget, Garcetti will be setting aside $35 million to fix streets. He's also increasing enrollment for Los Angeles' after school program, LA's Best, from 6,000 to 7,000 students.

Shorty said he was hoping Garcetti would do more for the kids.

"I kind of expected more for the kids with the after school programs, but we'll take a 1,000 kids. It's better than none," Shorty said.

Los Angeles city officials predict L-A will face a $224 million budget shortfall, but Garcetti did not talk about it in his speech.