Community rallies around Waelder city manager amid allegations against mayor

It was standing room only at the Waelder City Council meeting on Tuesday, June 10, 2025, as residents packed the chambers and overflowed into the waiting area to express support for embattled City Manager Paul Zepeda.

During the open forum, speaker after speaker praised Zepeda’s hands-on leadership, dedication to the community, and strong character.

Following the approval of the consent agenda, the council entered executive session to discuss Zepeda’s potential termination. The move drew widespread concern from attendees, many of whom viewed the proceedings as unjust.

Zepeda stated that the closed-session item was retaliatory in nature. Former council members Marie Almaraz and Rachel Martinez shared similar concerns. Zepeda explained that the council had cited a missing bond as justification for his possible removal, but said he was never informed of such a requirement during the hiring process or at any time during his six-month tenure.

He also reported that Waelder has missed out grant funds which would assist in the more than $500,000 of municipal work needed due to the city’s failure to complete an audit since 2017 —including a $250,000 grant to aid in the city water supply needs.

Upon discovering possible financial discrepancies, Zepeda recommended a forensic audit, an action highly suggested by the city's long-standing CPA. On May 20, he filed a Fair Notice statement advising Mayor Diana Olmos that he, along with the Police Chief Administrator Jim Taylor, were in process of investigating the city’s audit history and potential mishandling of funds allegedly perpetrated by city employees.

Days later, Zepeda was suspended. In a formal complaint filed with the Texas Attorney General’s Office, he alleges that Mayor Olmos violated the Texas Open Meetings Act (TOMA) by unilaterally suspending him on May 27 after a council meeting was canceled due to lack of quorum.

Despite the cancellation, the mayor allegedly took action in council chambers with three council members still seated and the public present—creating the appearance of an official meeting. No vote was taken, and the suspension was not listed on the posted agenda — a requirement under TOMA for any action to be taken by a governmental body.

Zepeda also cited a May 22 meeting where residents were reportedly denied the opportunity to speak, as well as ongoing noncompliance with TOMA’s public access requirements related to the city’s official Facebook page.

The complaint alleges that Zepeda’s suspension is part of a broader pattern of retaliation stemming from his efforts to report concerns about financial mismanagement, harassment, and religious discrimination involving the mayor, other city officials and staff.

In a separate formal memorandum dated May 27, Zepeda documented multiple incidents involving Mayor Olmos that he says created a hostile and retaliatory work environment. The memorandum describes unprofessional interactions, including personal comments about Zepeda’s faith and public remarks perceived as retaliatory.

Zepeda asserts these actions violate several provisions of the City of Waelder's Personnel Policies, including:

• Prohibitions against offensive or undesirable conduct;

• Requirements to treat all employees and visitors with respect;

• Protections against retaliation for reporting misconduct (Section 24-5).

When the meeting reconvened in open session after nearly an hour in executive session with the City Attorney, the council voted 3–2 to terminate Zepeda immediately, giving him 10 days to vacate city property. Council members Peggy Blackmon and Michael Harris voted against the motion, with Harris stating, “You have my resignation,” before leaving the chambers.

The meeting continued with the council appointing Adolph Gonzales, the city’s electrical manager, as interim city manager — prompting audible frustration and disbelief over the chosen person from the crowd. The vote passed with Dora Martinez, Martha Melchor, and Margie Zapata in favor; Blackmon abstained.

Other business included discussion of removing playground equipment deemed unsafe, appointing Blackmon and Mayor Olmos to the Waelder Community Center board at the request of board member Felipe Martinez, and approving a board for the Waelder Public Library. The council also voted unanimously to explore hiring an independent audit firm and potentially rescheduling the upcoming budget hearing.
As community tensions rise and official investigations move forward, Waelder faces a critical moment in its leadership. With concerns over transparency, accountability, and governance coming to the forefront, many residents say they are watching closely — and demanding answers. The Attorney General's review of Zepeda’s complaint may prove pivotal in determining the city’s next steps.