Council overrides Leeser’s veto of $96 million in non-voter approved debt

UPDATE, Aug. 31: At a heated El Paso City Council meeting Tuesday, council overrode a mayoral veto of nearly $100 million in non-voter approved debt that had previously been ok'd by council members.

City Rep. Peter Svarzbein accused Mayor Oscar Leeser of lack of planning and leadership, saying vetoing $96 million in certificates of obligation was fiscally irresponsible.

Lesser responded by saying he does have great leadership skills as 83-percent of El Paso voters elected him. Certificates of obligation allow the city to authorize debt without voter approval.

City Council originally approved the ordinance a week ago today, and council questioned why the mayor didn't express his opposition at that time.

The $96 million will be spent on projects including streets and lighting, public park improvements and the Mexican-American Cultural Center.

Leeser justified his veto of the ordinance, arguing that El Paso has more certificate of obligation debt than the six other largest cities in Texas.

"Just like a credit card, just 'cause you have it, you don't need to continue to continue to charge on it. Sooner or later that credit card's gonna blow up on you, and this is no different," Leeser told the council members.

City Council needed a super-majority to override the veto and here's how they voted:

• Svarzbein, Alexsandra Annello, Cassandra Hernandez, Isabel Salcido, Henry Rivera and Cissy Lizarraga voted for the override.
• Joe Molinar and Claudia Rodriguez sided with the mayor.

This override vote means the $96 million has been authorized and the debt will go through.

ORIGINAL REPORT, Aug. 27: EL PASO, Texas -- El Paso Mayor Oscar Leeser on Friday vetoed a measure approved by City Council that would have issued almost $100 million in non-voter approved debt for various capital projects.

“I veto this item knowing that over three quarters of the City Council approved it, but with the strength and will of the 80 percent of El Pasoans that voted for me citywide with a mandate of fiscal responsibility,” Leeser said in a statement.

The council authorized $96 million in certificates of obligation to support construction projects as part of the budget process. The vote on Tuesday was 6-2, with Reps. Joe Molinar and Claudia Rodriguez voting No.

“It is my sincere hope that my colleagues at City Council will work with me to manage our debt with more careful consideration of the effect of these long-term commitments on our community. I believe that we can find a mutually agreeable resolution, in which we accomplish what is needed for our city in a more measured manner that minimizes non-voter approved debt," Leeser said.

According to the city charter, it takes 6 out of 8 city representatives to override a mayoral veto.

Rep. Cassandra Hernandez told ABC-7 she had anticipated a possible veto and placed an item on Tuesday's agenda to discuss a possible override. That was one day before the mayor announced his veto.

"There have been ample opportunities to work toward resolutions over the past 2 months," Hernandez told ABC-7 via email. "Our tax and debt service rates must be finalized before September 1, which is in 5 days. 80% of the debt issuance is dedicated to address aging streets and to fund public safety and health infrastructure. A mandate El Paso citizens have overwhelming supported," she said.

In his official statement explaining his veto, Leeser said El Paso ranks at the top of Texas' six largest cities with Certificates of Obligation debt outstanding. Including principal and interest, El Paso's CO debt stands at $851 million, according to data from the Texas Bond Review Board provided by the mayor. The next city on the list is San Antonio, with $597 million in debt.