SIDNEY - It took a jury of three men and nine women roughly an hour and a half to find Hamburg Mayor Terry Holliman not guilty of two counts of second-degree theft on Friday.

The theft charges were filed after an audit of the City of Hamburg's finances found nearly $50,000 worth of disbursements to be improper or unsupported. Holliman was accused of misappropriating $3,500 of that amount, $2,000 of city money and $1,500 worth of city property.

Holliman testified on his own behalf Friday morning regarding the $2,000 check that was issued to him by Georgeanne Stephens on June 28, 2005, and culverts he installed on the Bartlett Grain property in April 2005.

Holliman told the jurors he had a conversation with a man whose name he can't remember on June 27 about an ongoing costly sinkhole problem on one of Hamburg's main streets. He said the man told him he would fix the problem, but only for $2,000 cash on a weekend. Holliman then contacted Georgeanne Stephens, the City Clerk in Hamburg, and had her issue him a $2,000 check to Holliman Auto and Supply, which he immediately cashed.

"We wanted to create a paper trail so if someone ever said, 'Where did the $2,000 go?' They could follow it," Holliman said.

Holliman went on to say that he proceeded to keep the cash at his house for "several reasons."

"We needed access to the money on a weekend, and I don't have a key to city hall," he said.

He also noted that city hall had experienced three recent burglaries, in which money was stolen and he believed someone with a key was responsible.

Asked why he didn't return the money when the contractor did not come back after three months during cross-examination, Holliman said he was still waiting.

"We were still in the construction season," he said. "I was waiting until it froze or got too cold to where he couldn't do it."

Questioned on why he didn't inform the council or the street foreman about the bargain on the project, Holliman didn't hesitate to respond.

"I've learned never to count your chickens before they're hatched," he said. "The job hadn't been done yet," he said.

Assistant Attorney General, Scott Brown, who prosecuted the case, said he believed Holliman had other motives for not telling the council.

"You would think, this man has been mayor for years, he's got this great deal. Did he tell the city council? Did he tell the street foreman? Nope, he didn't tell anybody. He never told a soul. If this was legit, he would have been trumpeting what a great deal he got for the city of Hamburg," Brown stressed during his closing argument. "Actions speak louder than words."

"It all fits together: the dates, the debt, Howard Bebout (a witness for the state), the visit and Terry Holliman's request to Georgeanne Stephens," Brown continued, adding that Holliman's negative bank balances reflected a motive. "(Holliman) stole $2,000 of taxpayer property and a little more than $1,500 of taxpayer property. He's a thief."

In his rebuttal, Herzog said calling Holliman a thief was a "slap in the face" to Hamburg and said the prosecution was "inappropriately crucifying" the mayor.

"What this boils down to in a nutshell is that $2,000 was procured to the City Mayor of the City of Hamburg for work done on a city street," he said. "It started off as city money, was city money and was returned as city money."

As for the culverts, Holliman explained it simply in his testimony.

"The city council bought 190 feet of tubing. Bartlett paid me for 190 feet of tubing," he explained of the coincidence. "I didn't bill the city for the additional 20 feet I added to their project."

Holliman testified none of the culverts purchased by the city were used on Bartlett Grain property. He also said the city was obligated to install the culverts near the property in order to prevent future flooding claims against the city.

Herzog proclaimed Holliman's innocence in his closing argument saying it was the defense who had provided the jury with the diagrams and pictures of the culverts.

"Where's their expert, where's their measuring rod? We've showed you where the tubes are. We've presented the photographs."

The state had the burden of proving Holliman mishandled the funds with the intent to deprive the city beyond a reasonable doubt, and in the end failed to do so, at least according to the jury.

"Apparently we didn't prove our case," Brown said in a phone interview Friday afternoon. "I don't know what specifically was lacking, because obviously we felt we had enough evidence to convict. That's why we brought charges in first place."

Herzog believes it was Holliman's testimony that convinced the jury of his innocence.

I think Terry Holliman was frank, honest and forthwright with his testimony and in Oct of 05 when police task force descended on Hamburg and collected the $2,000. People who are innocent don't hide the truth."

Herzog described the envelope containing the $2,000 Holliman led investigators to on Oct. 6 as a "paper wall" in the prosecution's case.

Asked during his testimony if he regrets the decision he made on June 28, 2005, Holliman said he would do things differently

"If I had it to do over again, after what it's put me and my family through, I wouldn't touch (the money) with a 10-foot pole," he said.

During his closing statement, Herzog called the evidence unreliable and insufficient. In the end, the jury agreed.

But things aren't over for Holliman just yet.

"We have other battles to fight for the mayor," Herzog said of Holliman, whose removal from office is currently being pursued by the Attorney General's office. A hearing has been scheduled for June 28.

In an unrelated case, Holliman has also been charged with seven counts of misdemeanor animal abuse for the death of seven dogs in September 2005. That trial has been scheduled for July 10, 2007.