Mayor Michael Bloomberg said in his State of the City address Thursday that the city can expect a tough year ahead due to a tightening economy.

Bloomberg maintained he is optimistic about the future, though. His speech proposed a number of city changes.

Among Bloomberg's announcements was an extension to a 7 percent property tax cut. Bloomberg expects the cut to be proposed next week.

The mayor also addressed affordable housing in the borough during the speech. The address outlined rezoning in the south Bronx, as well as Bloomberg's plan to continue investing $3 billion into new infrastructure. "Affordable housing is the foundation of strong communities," said Bloomberg.

Analysts believe Bloomberg is testing the waters for a possible presidential run. Bloomberg insists he is not interested in joining the race, but it is believed he could use his bipartisan appeal and fortune to become a viable third party candidate.

AP Wires contributed to this article.

For Bloomberg?s full State of the City address, go to channel 612 on your iO digital cable box and select iO Extra.