Corporation counsel Tom Leone gave Mayor Tim Lattimore a clean bill of health in regards to his involvement in the Auburn-Cayuga Development Corp. and an alleged conflict of interest between it and the mayor's chair.

Leone, attorney for the mayor, council and all city departments, read from a prepared statement at Thursday's city council meeting. He said he believed the mayor's role with A-CDC was "minimal at best."

"I think it's important to note that even if the mayor were identified in correspondence associated with the A-CDC," Leone said, "I would be hard pressed to find a conflict."

It was Lattimore, not Robert Hunter, who asked Leone to make a formal judgment after Hunter questioned the mayor's role in economic development and A-CDC. In Hunter's inquiry, the question was raised if Lattimore could sit on a not-for-profit group, which he started, while holding the mayor's office.

"I never said it was unethical," Hunter said following the meeting Thursday. "I questioned if it was ethical."

Hunter said he would comment more on the issue at the May 5 economic development summit the city is hosting.

On Leone's decision, Hunter added: "I would prefer an outside opinion."

On the item of the $50,000 grant State Sen. Michael Nozzolio promised for economic development, Leone said he found that the mayor "was not engaged in any impropriety in his desire to see those funds go to the A-CDC."

Leone said in his findings, it appeared that Nozzolio wanted those funds to go to A-CDC.

Lattimore said he was pleased with Leone's comments and believed it was the proper decision to render.

"At the rate we're spending on economic development, we'll be out of business in a few years," Lattimore said. "I'm very happy Mr. Hunter brought this topic to the forefront. We need to address economic development, and my only goal is bringing jobs here."

In other news:

Councilors, city manager John Salomone and comptroller Lisa Green debated the 2005-06 proposed city budget for the first time. The budget calls for an 8.9-percent property-tax increase and an 18-percent boost in sewer fees.

Salomone blamed last year's $900,000 state-mandated pension increase, a citywide decrease in water consumption and four newly signed union contracts for the increases.

Councilors, Salomone said, will have to cut about $80,000 from the budget for every 1-percent decrease they want.

Councilor Thomas McNabb said he was against both hikes.

"We'll have to cut expenses somehow," he said. "Our population keeps decreasing, but our services keep going up."

McNabb said he would be content with a 5-percent rate, which means councilors will have to cut about $320,000 from Salomone's budget.

Staff writer Benning W. De La Mater can be reached at 253-5311 ext. 237 or ben.delamater@lee.net