Appears to be some very minor surface rust, probably from uninformed handling and lack of attention. Items like this confuse me, because although I don't doubt the provenance (because really, who would make that up ? )..did it belong to the Mayor himself, or the "Office of the Mayor" ? Items belonging to the Office itself are property of the City, who very well could have sold it, so the rabbit hole has multiple possible paths. Sadly, no scabbard. Also be nice if they showed the peening arrangement securing the pommel if any. I can see something, a circular area where it may have been peened and then finished flush and polished a bit.. Good news is: It's most likely carbon steel.