Lakeway Faces Budget Crunch | Texas News

Texas News Today | 2 Min News | The Daily News Now! · Aug 20, 2026 · 1m

Lakeway faces a $1.6 million budget gap in 2027, forcing tough choices: hike property taxes or slash city services. With inflation biting and growth slowing, the council voted on the tax rate cap — not final — while reviewing multi-year cuts hitting Police, Parks, and Building Services. State law caps tax hikes at 3.5%, but Lakeway’s small size lets it raise up to $500K without a vote. The city manager’s plan? Spread cuts over three years for smoother adjustments. Meanwhile, $2M over three years is earmarked for the Lakeway Resort and Spa via hotel taxes — residents get a say in September…