During a sunrise memorial service to mark the storm's anniversary, clergy from the island's different faiths talked of the strides their community has made since Ike made landfall just outside Galveston in the early morning hours of Sept. 13, 2008.

"You can see behind me a new day has dawned. A new day has dawned on our community," the Rev. David Green of the First Presbyterian Church said in a sun-filled ballroom at the Hotel Galvez during a sunrise service.

About 100 people gathered for the service near the beach. It was part of a series of events to highlight recovery efforts.

Through the windows behind Green one could see Galveston's Seawall Boulevard, which runs along the beach and a year ago had been covered in rocks, sand, splintered wood and other debris that had been deposited there by Ike's powerful storm surge. On Sunday, cars flowed along the boulevard and people sat or walked along the beach.

The hurricane damaged 75% of the city's houses as well as thousands of other homes in cities from the southeast Texas Gulf Coast into Houston, which is 50 miles inland.

Galveston suffered more than $3.2 billion in damage. The city's largest employer, the University of Texas Medical Branch, temporarily shut down and had to lay off about 3,000 employees.

Ike's powerful surge reached as high as 20 feet and its 110 mph winds caused more than $29 billion in damage in Texas. The storm caused flooding and deaths as far away as Pennsylvania and Illinois. Ike was blamed for at least 72 deaths in the U.S., including 37 in Texas.

The Rev. Helen Appelberg of St. Augustine of Hippo Episcopal Church asked residents to hold on to hope. "Let the hope that rests in each of our hearts grow and grow into the flower of new life in every corner of this city," she said.

Galveston city leaders said 75% of businesses are now open and tourists have returned. Residents said the city still has a long way to go.

About 3,000 of the city's 58,000 residents still have not returned. Mobile homes provided by the Federal Emergency Management Agency still dot driveways and front lawns of many neighborhoods.

"The community is still hurting," said Elizabeth Godbehere, 59, who was born on the island. "But we've been making tremendous efforts to support each other as a community."

Enlarge By Johnny Hanson, Houston Chronicle, via AP Murdoch's Pier and surrounding businesses were hit hard after Hurricane Ike on Sept. 13, 2008.