LYNN – Mayor Judith Flanagan Kennedy said a cloud is lifting from over Lynn, as decreased crime, increased cultural offerings and public investment is attracting people and businesses to the city.”We’re kind of lifting this veil, this cloud, that’s been hanging over the city,” Kennedy said Sunday in a speech at Congregation Ahabat Sholom Sunday afternoon.”[Businesses and people] are not afraid to come to Lynn ? not afraid to go downtown at night. I do feel the city is on the right track.”Kennedy spoke and then answered questions at the Lynn Community Association (LCA) event. Kennedy is running for re-election to a second four-year term as mayor. City Council President Timothy Phelan has announced he is challenging her for the job.Kennedy opened her speech by alluding to the November election, saying that she has a “different” approach as mayor and people will decide later whether that is positive or negative.She acknowledged the city has reduced a roughly $16.5 million reserve fund by more than a half.But Kennedy said the spending was important, citing $4.7 million spent to reduce the tax levy and at least $4.6 million for school renovations and to purchase property for future school sites.She said the city’s bond rating was recently upgraded to an A status with a stable outlook, the city has avoided layoffs again this year and more than 50 police officers and firefighters were hired over her term.Hiring in the Police Department has “a direct correlation” with a 4-percent decrease in crime, Kennedy said.”People are feeling safe in the city and in our downtown,” she said.And Kennedy asserted it is “not just the arts and culture that are thriving downtown.”She mentioned new businesses expanding or relocating downtown including D’Amici’s Bakery and Cafe Rossetti’s, which are planning to open next door to each other on Sutton Street. She received applause when announcing that North Shore Community College has finalized an expansion for a culinary arts program on Union Street. Kennedy said the space was not exactly a new restaurant but “is hoping to use all of us as guinea pigs” for their food.She also cited Market Basket’s plan to open at General Electric’s long-vacant Factory of the Future site and Kettle Cuisine’s plan to invest $20 million in the Clocktower Building for its new facility.Kennedy also touted Lynn Auditorium and the benefits of installing air conditioning in the theater.”Some people think it’s my little pet project, but the fact is it is so much more than that,” she said of the auditorium. “It can become a hub in the economic web that is downtown.”Kennedy said the venue has gone from scheduling two-to-four shows per year to hosting 12-to-15 events. She also announced, smiling, that Alice Cooper is scheduled to perform in October.As for more quality-of-life issues, Kennedy cited several projects to be funded by a $4 million bond expected to be signed Monday. These include security and safety upgrades at City Hall and playground improvements including adding restrooms at Lynn Woods.Kennedy concluded her speech by alluding to an issue that “has been annoying to us for many years,” at which an audience member yelled out, “rats.”It wasn’t the issue Kennedy expected – she said she was thinking of “the pink bridge,” about which she said she got more complaints than anything else.But Kennedy acknowledged rats have been a problem. She said City Hall has changed its system for responding to complaints of rat infestations; but also that she has been waiting since Oct. 2011 for a trash ordinance from city council.She also mentioned conflicts with the city council over issues including an education incentive in salaries for department heads and using the Ford School as a polling place.Mary Ellen Palermo, who had asked Kennedy about “exorbitant” salaries at City Hall and prompted the discussion on the education incentives, noted after the event that no sitting city councilors were among the approximately 40 people who attended