The Lakeway City Council meeting on August 4, 2025, focused on critical budget discussions, including considerations for cost-of-living adjustments (COLA), merit increases, and the allocation of funds within the capital reserve. The council reviewed how these factors would influence the upcoming budget and capital improvement plan (CIP).

A significant point of discussion was the upcoming proposal for the maximum tax rate, which will be presented at the next council meeting. This proposal will set the stage for two public hearings if the tax rate exceeds the no-new-revenue rate. The council also noted that a special meeting is planned for the week following the regular meeting on September 22 to finalize the budget and tax rate.

During the meeting, Councilmember O'Brien raised questions regarding the inclusion of hotel occupancy tax in revenue discussions. The financial advisor confirmed that most revenue types would be included, but clarification on hotel occupancy tax was still pending. The council plans to follow up on this matter before the next meeting.

Overall, the discussions highlighted the council's commitment to transparency and thoroughness in budget planning, ensuring that all revenue streams are accurately accounted for as they prepare for the upcoming fiscal year.