City of Lakeway

HOME-RULE MUNICIPAL CHARTER OF THE CITY OF LAKEWAY, TEXAS
(TRAVIS COUNTY, STATE OF TEXAS)

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Complete 12-Article Home-Rule Municipal Charter governing the City of Lakeway (Travis County, Texas; serving 19,429 residents) pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Texas Local Government Code. Codifies corporate boundaries, Council-Manager Home-Rule governance (a Mayor and 5 Councilmembers elected at-large by the qualified voters of City of Lakeway), uniform municipal elections, citizen initiative/referendum/recall petition rights, Texas Open Meetings Act 72-hour docket transparency, fiscal budgeting, S.B. 2 voter-approval property tax limits, and debt issuance controls.

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ARTICLE I — INCORPORATION, CORPORATE BOUNDARIES & FORM OF GOVERNMENT

Section 1.01. Corporate Existence & Name. The inhabitants of the City of Lakeway, situated in Travis County, State of Texas, within the corporate limits as now established or as hereafter altered in accordance with Texas law, shall continue to be a municipal body politic and corporate in perpetuity under the official corporate name of "City of Lakeway".

Section 1.02. Constitutional & Statutory Classification. Having attained a population exceeding five thousand (5,000) inhabitants (19,429 residents), the City of Lakeway exercises full Home-Rule authority pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Texas Local Government Code, possessing all powers of local self-government not inconsistent with the Constitution or general laws of the State of Texas.

Section 1.03. Corporate Boundaries & Annexation Protections. The official map and metes-and-bounds description of the corporate limits shall be maintained on permanent public file in the Office of the City Secretary and filed with the Travis County Clerk. Any annexation or disannexation of territory shall strictly comply with Chapter 43 of the Texas Local Government Code, requiring landowner consent or an affirmative vote of the qualified voters residing within the area proposed for annexation, together with written service-plan commitments.

Section 1.04. Form of Municipal Government. The municipal government provided by this instrument shall be known as the Council-Manager Home-Rule form of government. All powers of the municipality, except as otherwise vested by state statute or this Charter, shall be vested in an elected Governing Body consisting of a Mayor and 5 Councilmembers elected at-large by the qualified voters of City of Lakeway, accountable directly to the citizens and taxpayers of City of Lakeway.

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ARTICLE II — MUNICIPAL POWERS, PROPERTY RIGHTS & CONSTITUTIONAL LIMITATIONS

Section 2.01. General Corporate Powers. The City of Lakeway shall have perpetual succession; may use a corporate seal; may sue and be sued to the extent sovereign or governmental immunity is waived by the Texas Tort Claims Act or general statute; may contract and be contracted with; and may acquire, hold, lease, manage, and dispose of real and personal property inside or outside its corporate limits for legitimate public purposes.

Section 2.02. Eminent Domain & Private Property Protections. Any exercise of the power of eminent domain by the City of Lakeway is strictly constrained by Article I, Section 17 of the Texas Constitution and Chapter 21 of the Texas Property Code. Private property shall never be taken for economic development, tax-revenue enhancement, or transfer to a private party, and every condemnation resolution requires a formal public record vote in accordance with Texas Government Code Section 2206.053 after delivery of the Landowner's Bill of Rights.

Section 2.03. Regulatory Preemption & Economic Liberty. Pursuant to the Texas Regulatory Consistency Act and the Constitution of Texas, no municipal ordinance, rule, or administrative order of City of Lakeway may conflict with or preempt state law governing commerce, labor, agriculture, finance, firearms, occupational licensing, or vested property rights under Chapter 245 of the Texas Local Government Code.

Section 2.04. Intergovernmental Cooperation. The City of Lakeway may enter into interlocal cooperation agreements under Chapter 791 of the Texas Government Code with Travis County, overlapping Independent School Districts, Emergency Services Districts, Water Districts, and the State of Texas to eliminate duplicative administrative overhead and reduce the aggregate tax burden on local residents.

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ARTICLE III — THE GOVERNING BODY: COMPOSITION, QUALIFICATIONS, QUORUM & PROCEDURE

Section 3.01. Number, Selection & Terms. The legislative and governing body of the City of Lakeway shall consist of a Mayor and 5 Councilmembers elected at-large by the qualified voters of City of Lakeway. Members of the Governing Body shall be elected by the qualified voters in accordance with Article V of this Charter and Chapter 141 of the Texas Election Code.

Section 3.02. Candidate Eligibility & Residency. Each candidate for Mayor or Councilmember shall be a citizen of the United States, at least eighteen (18) years of age, a qualified registered voter of the State of Texas, and a bona fide resident of the City of Lakeway (and of the applicable single-member district, where district residency applies) for at least twelve (12) continuous months immediately preceding the filing deadline, in compliance with Texas Election Code Section 141.001. No member shall hold any other lucrative office of profit or trust where prohibited by Article XVI, Section 40 of the Texas Constitution.

Section 3.03. Presiding Officer & Mayor Pro Tempore. The Mayor shall preside at meetings of the Governing Body, represent the municipality in intergovernmental and ceremonial capacities, execute official instruments authorized by the Council, and exercise emergency powers solely as governed by Chapter 418 of the Texas Government Code. At its first regular meeting following each municipal election canvass, the Council shall elect one Councilmember to serve as Mayor Pro Tempore.

Section 3.04. Vacancies & Forfeiture of Office. An office becomes vacant upon death, resignation, removal, felony conviction, ceasing to reside within the municipality or respective election district, or unexcused absence from three (3) consecutive regular meetings. Vacancies shall be filled in strict compliance with Article XI, Section 11 of the Texas Constitution (requiring a special election within 120 days where unexpired terms exceed twelve months) or applicable provisions of the Texas Local Government Code.

Section 3.05. Quorum & Recorded Roll-Call Voting. A majority of the Governing Body shall constitute a quorum for the transaction of business, provided that any ordinance levying a tax or adopting an annual budget requires the statutory supermajority or record vote mandated by Texas Tax Code Chapter 26. The ayes and nays of every member on every ordinance, appropriation, bond authorization, and zoning action shall be entered in the permanent public minutes.

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ARTICLE IV — MUNICIPAL ADMINISTRATION, OFFICERS & MUNICIPAL COURT

Section 4.01. City Manager. The Governing Body shall appoint a City Manager solely on the basis of executive and administrative qualifications, who shall serve at the pleasure of a majority of the Council as chief administrative officer of the City of Lakeway. The City Manager shall supervise municipal departments, enforce all laws and Charter provisions, prepare and submit the proposed annual budget and capital program, and keep the Council and public fully advised of the financial condition and operational needs of the municipality. Neither the Council nor any member shall dictate the appointment of administrative subordinates except through formal inquiry or council action.

Section 4.02. City Secretary & Public Records Custodian. The City Secretary shall give timely statutory notice of all Governing Body meetings, record and authenticate all minutes, ordinances, and resolutions, serve as Chief Election Official for municipal elections (or coordinate contract elections with the Travis County Elections Administrator), and act as Public Information Coordinator under Chapter 552 of the Texas Government Code.

Section 4.03. City Attorney. The Governing Body shall appoint a licensed Texas attorney as City Attorney to serve as legal counsel to the municipality, review ordinances, contracts, and bond transcripts for statutory compliance, and represent City of Lakeway in civil proceedings.

Section 4.04. Municipal Court. There is established the Municipal Court of the City of Lakeway pursuant to Chapters 29 and 30 of the Texas Government Code, having jurisdiction within the corporate limits over Class C misdemeanor violations of state law and municipal ordinances relating to fire safety, zoning, public health, and traffic. All fines and court costs collected shall be deposited into the municipal treasury and audited annually; no judge or peace officer shall ever be evaluated or compensated based upon ticket or fine quotas (prohibited by Texas Transportation Code Section 720.002).

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ARTICLE V — MUNICIPAL ELECTIONS, UNIFORM DATES & CANVASSING RETURNS

Section 5.01. Uniform Election Dates. Regular municipal elections of the City of Lakeway shall be held on the uniform election date in May (or November, where designated by valid resolution or statute) in accordance with Chapter 41 of the Texas Election Code. Early voting by personal appearance and by mail shall be conducted in full compliance with Title 7 of the Texas Election Code.

Section 5.02. Ballot Access & Filing. Any qualified resident meeting the requirements of Section 3.02 may file an application for a place on the official ballot with the City Secretary within the statutory filing window prescribed by Chapter 143 of the Texas Election Code. Candidate campaign finance reports shall be filed under Title 15 of the Texas Election Code and made immediately accessible to the public.

Section 5.03. Determination of Results & Runoff Elections. In Home-Rule elections where a majority vote is required by Charter or Texas Constitution Article XI, Section 11, any candidate receiving more than fifty percent (50%) of the valid votes cast for that office shall be declared elected; if no candidate receives a majority, a runoff election between the two candidates receiving the highest number of votes shall be ordered under Chapter 2, Subchapter B of the Texas Election Code.

Section 5.04. Official Canvass & Oath of Office. The Governing Body shall convene in an open public session within the statutory canvass period under Chapter 67 of the Texas Election Code to canvass precinct-by-precinct returns certified by the election officers. Newly elected officials shall execute the Statement of Officer and take the Constitutional Oath of Office under Article XVI, Section 1 of the Texas Constitution prior to assuming official duties.

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ARTICLE VI — INITIATIVE, REFERENDUM, RECALL & TAXPAYER PETITION RIGHTS

Section 6.01. Home-Rule Power of Initiative. Qualified voters of the City of Lakeway reserve the direct democratic power to propose any legislative ordinance (excluding budgets, tax levies, or appropriation of money already obligated) by filing a verified initiative petition signed by qualified voters equal in number to the applicable Charter signature threshold. Upon certification of sufficiency by the City Secretary, the Governing Body shall within thirty (30) days either adopt the proposed ordinance without alteration or submit it to the voters at the next authorized uniform election date.

Section 6.02. Power of Referendum Against Enacted Ordinances. Qualified voters may demand reconsideration of any newly enacted legislative ordinance by filing a referendum petition prior to its effective date or within thirty (30) days after enactment. If the Council does not repeal the protested ordinance in full, its enforcement shall be suspended pending an election of the qualified voters.

Section 6.03. Power of Recall of Elected Officials. Any member of the Governing Body may be removed from office by the qualified voters of City of Lakeway (or of the respective election district) through a verified recall petition stating specific grounds of malfeasance, fiscal recklessness, or breach of public trust, followed by a special recall election ordered on the next uniform election date.

Section 6.04. Mandatory Tax-Rate Rollback & Certificate of Obligation Protest Petitions. Regardless of municipal classification, taxpayers of the City of Lakeway enjoy automatic election and petition protections under Texas Tax Code Sections 26.07 and 26.075 (triggering a mandatory November Voter-Approval Tax Rate Election or de minimis rate petition election when adopted property tax rates exceed statutory thresholds) AND under Texas Local Government Code Section 271.049 (empowering five percent [5%] of registered voters to block non-voted Certificates of Obligation by petition and force a binding public bond referendum).

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ARTICLE VII — LEGISLATION, ORDINANCES, 72-HOUR OPEN MEETINGS & PUBLIC RECORDS

Section 7.01. Enactment & Publication of Ordinances. Every legislative act establishing a permanent rule, zoning regulation, fee schedule, or fine penalty shall be enacted by formal written ordinance bearing a standardized enacting clause. The descriptive caption and penalty clause of every penal ordinance shall be published in the official newspaper and posted on the municipality's internet portal prior to taking effect, pursuant to Chapter 52 of the Texas Local Government Code.

Section 7.02. Texas Open Meetings Act & Mandatory 72-Hour Pre-Vote Notice. Every regular, special, workshop, or committee meeting of a quorum of the Governing Body, Planning and Zoning Commission, Board of Adjustment, or Economic Development Corporation shall be open to the public under Chapter 551 of the Texas Government Code. Written agendas itemizing each specific subject of deliberation and proposed action—including any proposed tax, bond, fee, contract, or zoning item—shall be posted at City Hall and continuously on the municipal website at least seventy-two (72) hours before the scheduled start of the meeting.

Section 7.03. Citizen Right to Address the Governing Body Before Every Vote. Pursuant to Texas Government Code Section 551.007, every member of the public shall be afforded a meaningful opportunity to address the Governing Body regarding any item on an open-meeting agenda BEFORE or DURING the Council's consideration of that item, without viewpoint discrimination.

Section 7.04. Texas Public Information Act & Codification. All budgets, check registers, contracts, agendas, minutes, roll-call vote records, and ordinances of the City of Lakeway are public property subject to prompt inspection and copying under Chapter 552 of the Texas Government Code. All general and permanent ordinances shall be systematically codified and maintained in an accessible municipal code.

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ARTICLE VIII — FISCAL ADMINISTRATION, ANNUAL BUDGET, AUDIT & COMPETITIVE BIDDING

Section 8.01. Fiscal Year & Balanced Budget Requirement. The fiscal year of the City of Lakeway shall commence on October 1 of each calendar year and conclude on September 30 of the succeeding year. At least thirty (30) days prior to the adoption of a tax rate, the proposed itemized annual budget (most recent recorded scale: $33.16 million) shall be filed with the City Secretary and posted prominently online pursuant to Chapter 102 of the Texas Local Government Code.

Section 8.02. Truth-in-Budgeting Cover Page & Public Hearing. In strict compliance with Texas Local Government Code Section 102.005(b), any proposed budget that will raise more total property tax revenue than in the preceding fiscal year must display the mandatory statutory taxpayer warning in 18-point or larger type on its cover page, stating the exact dollar and percentage property tax revenue increase. A noticed public hearing at which any taxpayer may appear and be heard is mandatory prior to budget adoption, and adoption requires a separate record roll-call vote.

Section 8.03. Prohibition of Unappropriated Expenditures. No public funds shall be drawn from the municipal treasury nor any financial obligation incurred except pursuant to a specific budget appropriation or duly enacted budget amendment under Texas Local Government Code Section 102.010.

Section 8.04. Annual Independent CPA Audit & Competitive Procurement. At the close of each fiscal year, an independent certified public accountant holding no personal interest in municipal contracts shall conduct a comprehensive financial audit under Chapter 103 of the Texas Local Government Code, which shall be accepted in open session and published online. All municipal purchases and public works contracts exceeding statutory thresholds shall follow sealed competitive bidding or competitive proposal mandates under Chapter 252 of the Texas Local Government Code and Chapter 2269 of the Texas Government Code.

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ARTICLE IX — AD VALOREM PROPERTY TAXATION & S.B. 2 VOTER-APPROVAL LIMITS

Section 9.01. Constitutional Tax Rate Ceiling & Current Levy Context. The Governing Body is authorized to levy annual ad valorem taxes upon taxable real and tangible personal property within the City of Lakeway not to exceed the constitutional maximum of $2.50 per $100 valuation (Tex. Const. Art. XI, Sec. 5) (latest audited municipal rate baseline: $0.1685 per $100 of taxable assessed valuation). Property appraisals are determined independently by the Travis County Appraisal District pursuant to the Texas Property Tax Code, subject to homeowner protest rights before the Appraisal Review Board.

Section 9.02. No-New-Revenue & Voter-Approval Tax Rate Calculations (Texas Property Tax Reform and Transparency Act / S.B. 2). Each summer prior to adopting an ad valorem rate, the designated officer shall calculate and publish the municipality's No-New-Revenue Tax Rate and its Voter-Approval Tax Rate (capping maintenance and operations revenue growth on existing properties at 3.5% annually without voter approval) in strict compliance with Chapter 26 of the Texas Tax Code.

Section 9.03. Mandatory 60% Supermajority Vote & November Automatic Election. Any motion to adopt a property tax rate exceeding the No-New-Revenue Tax Rate must be phrased in the exact statutory language of Texas Tax Code Section 26.05(b) ("I move that the property tax rate be increased by the adoption of a tax rate of ____, which is effectively a ____ percent increase in the tax rate") and requires a sixty percent (60%) supermajority record vote of the Governing Body. If the adopted rate exceeds the Voter-Approval Tax Rate, the Governing Body MUST order an automatic ratification election on the November uniform election date.

Section 9.04. Homestead, Over-65 & Disabled Veteran Exemptions. The Governing Body may adopt residence homestead exemptions, and shall honor all constitutionally mandated exemptions and tax-ceiling freezes where adopted under Article VIII, Section 1-b of the Texas Constitution for disabled veterans, surviving spouses of fallen first responders and service members, and homeowners aged sixty-five (65) or older or disabled.

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ARTICLE X — MUNICIPAL DEBT, BOND ELECTIONS & CERTIFICATES OF OBLIGATION

Section 10.01. Voter Authorization Required for General Obligation Bonds. The City of Lakeway (recorded total outstanding debt baseline: $43.70 million) shall issue no General Obligation Bonds pledged against ad valorem property taxes unless first authorized by a majority of qualified voters voting at a duly called bond election held on a uniform election date pursuant to Chapter 1251 of the Texas Government Code.

Section 10.02. Truth-in-Bonding Ballot Language. Pursuant to Texas Government Code Section 1251.052, every municipal bond proposition printed on the official ballot must plainly state the exact principal dollar amount of debt to be authorized, a concise description of the specific single-purpose capital project, and the explicit statutory statement: "THIS IS A PROPERTY TAX INCREASE," accompanied by a Voter Information Document disclosing total estimated principal and interest repayment costs.

Section 10.03. Restrictions on Non-Voted Certificates of Obligation. Certificates of Obligation under Subchapter C, Chapter 271 of the Texas Local Government Code shall not be issued for any project rejected by voters at a bond election within the preceding three (3) years (Tex. Loc. Gov't Code Sec. 271.047[d]), require forty-five (45) days' advance published notice disclosing total debt service, and remain subject to a five-percent (5%) voter protest petition forcing an election.

Section 10.04. Interest and Sinking Fund Integrity. Whenever tax-supported debt is lawfully issued, an inviolable Interest and Sinking (I&S) Fund shall be maintained solely to retire principal and interest as due; I&S tax revenues shall never be diverted to general administrative operating expenses, and Attorney General examination and Comptroller registration under Texas Government Code Chapter 1202 are mandatory prior to delivery.

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ARTICLE XI — PUBLIC UTILITIES, FRANCHISES, RIGHTS-OF-WAY & LAND-USE DUE PROCESS

Section 11.01. Public Rights-of-Way & Non-Exclusive Franchises. Ownership, control, and supervision of all public streets, alleys, easements, and rights-of-way within the City of Lakeway remain vested in the municipality in trust for the public. No exclusive franchise or monopoly over public utilities or rights-of-way shall ever be granted, and every utility franchise ordinance remains subject to reasonable term limits, public hearing, and statutory right-of-way compensation rules under Texas Local Government Code Chapter 283 and Texas Utilities Code.

Section 11.02. Municipal Utility Systems & Rate Transparency. Where the City of Lakeway owns or operates water, wastewater, solid waste, drainage, or electric utility enterprises, utility accounts shall be separately audited, rates shall reflect cost-of-service principles, and impact fees for new development shall strictly comply with Chapter 395 of the Texas Local Government Code.

Section 11.03. Zoning, Planning & Landowner Due Process. Any zoning ordinance, comprehensive plan amendment, or subdivision regulation adopted under Chapters 211 and 212 of the Texas Local Government Code requires written advance notice to affected property owners within two hundred (200) feet, public hearings before the Planning and Zoning Commission and Governing Body, a three-fourths (3/4) supermajority Council vote whenever twenty percent (20%) of adjacent landowners file a written protest (Tex. Loc. Gov't Code Sec. 211.006[d]), and strict shot-clock approval timelines for subdivision plats under Section 212.009.

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ARTICLE XII — ETHICS, CONFLICT OF INTEREST, CHARTER AMENDMENTS & GENERAL PROVISIONS

Section 12.01. Conflict of Interest & Mandatory Recusal. Every member of the Governing Body and appointed municipal officer is bound by Chapter 171 of the Texas Local Government Code and Chapter 176 vendor disclosure mandates. Any official having a substantial interest in a business entity or parcel of real property affected by a pending municipal action shall file a sworn Affidavit of Conflict of Interest with the City Secretary prior to deliberation and abstain completely from discussion and voting.

Section 12.02. Prohibition Against Nepotism & Personal Financial Gain. Nepotism within the third degree by consanguinity or second degree by affinity is strictly prohibited pursuant to Chapter 573 of the Texas Government Code. No municipal officer or employee shall accept any gift, bribe, or undisclosed benefit calculated to influence official judgment (Texas Penal Code Chapter 36).

Section 12.03. Amendment of Governing Instrument & Severability. This Home-Rule Charter may be amended no more often than once every two (2) years as prescribed by Article XI, Section 5 of the Texas Constitution and Texas Local Government Code Section 9.004, either upon ordinance of the Governing Body or upon petition signed by five percent (5%) of qualified voters (or 20,000 voters, whichever is less), submitted as separate single-subject ballot propositions to the voters of City of Lakeway. If any section, clause, or application of this instrument is held unconstitutional or preempted by general state statute, such invalidity shall not impair the remaining provisions, which shall continue in full legal force and effect.