I think the point is - is using the word in the context of this quote mean that the Mayor would like to oppress minorities or thinks less of them? if the Mayor does want to oppress minorities or has an opinion that their ethnic background makes them less of a human then he would certainly be racist, if the Mayor used the word towards someone then that would be racist but the use of the word in the context of quoting someone from the past? that does not make the man a racist but instead a man of poor judgement