A controversial welcome sign criticised as an eyesore cost £8,000 to install.
But environment councillor John Ballance said Brighton and Hove taxpayers had not paid a penny towards it.
He told a Brighton and Hove Council meeting last night that the sign, at the Patcham roundabout on the A23, was paid for by contractor Ecovert South.
The sign, which says Welcome to Brighton and Hove, was installed in the summer.
Selma Montford, secretary of the Preston and Old Patcham Society, asked whether the sign was simply an advert for Ecovert in disguise which would otherwise have needed planning permission.
Coun Ballance said the sign was imposing and was noticed by people who were entering Brighton and Hove.
Opposition Tory councillors have in the past branded the sign a monstrosity.
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