City Council — Lockhart

Ordinance 2026-17 amends Section 56-192 of the City Code to revise the posted speed limits along FM 20 from East Martin Luther King Jr. Boulevard to the eastern city limits. The proposed ordinance would lower the speed limits on this segment by 5 miles per hour to improve traffic safety and better reflect current roadway conditions. The speed limits on FM 20 between East Martin Luther King Jr. Boulevard and US 183 would remain unchanged. The proposed changes are based on a speed study conducted by the Texas Department of Transportation following a severe accident in the area. As a result of that study, TxDOT recommended reducing speeds along portions of the corridor to enhance safety for the traveling public. In addition to the speed limit revisions, the ordinance makes a technical correction to the directional references in the City Code by changing “northbound” and “southbound” to the correct designations of “eastbound” and “westbound” for FM 20. Speed limits on FM 20 east of the city limits to FM 1854 are also proposed to be reduced as well. Because those sections is outside the city’s jurisdiction, TxDOT will implement those changes separately through a Commission Minute Order.

On September 2, 2025, Council approved Ordinance 2025-18 authorizing creation of the framework for a residential parking permit program, specifically regulating on-street parking in residential areas. The program does not automatically designate any parking restrictions. Instead, property owners would be required to petition the City Council for the creation of a residential permit parking area. Only upon council approval would a designated permit area be established. On November 6, 2025, the first residential parking permit area was created after residents of Bowie Street petitioned the Council. Ordinance 2025-26 amended Ordinance 2025-18 to establish the residential parking area on Bowie Street. On February 26, 2026, Ms. Dolores Peralez Juarez submitted a petition to the city with signatures representing over 60% of the residences on Crockett Street from the intersection of Bowie Street to the intersection of Alamo Street. The signatures have been verified. The parking restrictions for Crockett Street would be 8:00 a.m. to 5:00 p.m. on school days for Lockhart I.S.D. Ordinance 2026-19 amends ordinance 2025-18 to add Crockett Street from the intersection of Bowie Street to the intersection of Alamo Street to the parking permit area. Public Works Director Sean Kelley has reviewed the application for compliance with applicable city ordinances as required by the ordinance. Council may approve, reject or modify the request. If approved, public works would erect signage indicating Crockett Street is a Residential Parking Permit area and residents would be issued parking permits.

On September 2, 2025, Council approved Ordinance 2025-18 authorizing creation of the framework for a residential parking permit program, specifically regulating on-street parking in residential areas. The program does not automatically designate any parking restrictions. Instead, property owners would be required to petition the City Council for the creation of a residential permit parking area. Only upon council approval would a designated permit area be established. On November 6, 2025, the first residential parking permit area was created after residents of Bowie Street petitioned the Council. Ordinance 2025-26 amended Ordinance 2025-18 to establish the residential parking area on Bowie Street. On January 27, 2026, Mr. Patrick (Pat) Waldron submitted a petition to the city with signatures representing over 60% of the residences on Center Street from the intersection of S. Median Street to the intersection of Lions Country Drive, including 807 & 809 Center Street. The signatures have been verified. The parking restrictions for Center Street would be 8:00 a.m. to 5:00 p.m. on school days for Lockhart I.S.D. Ordinance 2026-20 amends ordinance 2025-18 to establish the parking permit area. Public Works Director Sean Kelley has reviewed the application for compliance with applicable city ordinances as required by the ordinance. Council may approve, reject or modify the request. If approved, public works would erect signage indicating Crockett Street is a Residential Parking Permit area and residents would be issued parking permits.

To facilitate credit card payments for City services, the City maintains a merchant services agreement for processing transactions. On April 7, 2026, City Council approved a three-year agreement with Global Payments Direct, Inc. under Resolution 2026-16, which established a negotiated processing rate averaging approximately 3.15% and significantly reduced the City’s exposure to fluctuating market rates. While the new agreement is projected to significantly reduce overall processing costs compared to prior variable rates, the current 2% convenience fee charged to customers does not fully recover the City’s cost of processing credit card transactions. Credit card processing fees are comprised of several components, including interchange fees charged by card-issuing banks, card network (e.g., Visa/Mastercard) assessment fees, and processor fees charged by the City’s vendor (Global Payments Direct, Inc.), which include discount rates and per-transaction charges. Under the approved agreement, the blended effective rate for these combined components is estimated at approximately 3.15%. As a result, maintaining the current 2% convenience fee would continue to require a City subsidy to cover the difference between fees collected and actual processing costs. In response to Council direction provided during the April 7, 2026 meeting, staff has evaluated adjusting the convenience fee to more closely align with actual costs. The proposed increase to 3.25% is intended to function as a pass-through fee to users, better aligning with the City’s actual cost of service while remaining within the allowable limit under state law. The last adjustment to the City’s credit card fee occurred in July 2011.

The proposed annexation includes areas that will encompass parts of phases 2 and 3 of the Seawillow development agreement area. Included in the area is the site of Seawillow Middle School, which has recently begun construction. The overall annexation area is the current extent of the Seawillow Development Agreement area that is either owned by the developer or has been transferred to Lockhart ISD. The annexation petition satisfied a condition in the first amendment to the Seawillow development agreement, which states that the "developer property" comprising the area to be annexed, must be included in a petition for annexation by November 30, 2026. There are approximately 350 acres in the development agreement area that the developer has not yet purchased. This acreage is required to be included in annexation petition(s) no later than September 30, 2030. In addition to the petitions for annexation, both property owners have signed the Annexation Service Agreement. This service agreement describes the responsibilities that the City would assume upon annexation, including police, fire, solid waste collection, and other City services. Additionally, the agreement states that the City will maintain streets, and water and wastewater facilities built on the site. As no zoning change application has been filed, the entire area will be zoned AO, Agricultural-Open Space District, upon annexation.

On April 14, 2026, the City Council held a workshop to discuss solid waste services, operation of the Recycling Center, and the associated cost of service to customers. Following discussion, Council voted to implement universal residential recycling, opt-in commercial recycling, and also approved closure of the Recycling Center effective October 1, 2026, to coincide with the end of the fiscal year budget. The closure was based on the determination that the Recycling Center would no longer be needed once universal residential recycling is available. Since that action, representatives from Caldwell County have contacted the City of Lockhart to request that non-city residents who reside in the unincorporated areas of Caldwell County be allowed to use the Recycling Center for recycling services during the period leading up to the facility’s closure. To allow Caldwell County residents temporary use of the Recycling Center, code amendments would be required. Ordinance 2026-21 would authorize Caldwell County residents who live in unincorporated areas of the county to use the City of Lockhart Recycling Center through September 30, 2026. County residents would be required to show proof of residency, comply with applicable recycling regulations, and pay a per-visit fee for use of the facility. Currently, the City of Lockhart Code of Ordinances provides that only current owners and/or occupants of residential and commercial/industrial properties located within the city may use the recycling site upon presentation of a current utility bill or valid driver’s license, and that non-recycled materials or solid waste generated outside the city limits will not be accepted. If adopted, the code would need to be amended again effective October 1, 2026, to repeal the temporary authorization for Caldwell County resident

State law requires that a city consent to the inclusion of land in its ETJ in a municipal utility district (“MUD”). At a workshop on January 27, 2025, Hillwood Communities discussed the development of 889.3 acres of land (“Property”), 720.681 acres of which is in City’s ETJ (“Property”). Hillwood Communities is continuting in its due diligence period for the purchase of the Property and has asked the City to extend the conditional consent to creation of the Lockhart Municipal Utility District of Caldwell County and the inclusion of the Property into said district. This consent was granted with the passage of Resolution 2025-08 on February 18, 2025. The consent agreement was renewed on August 5, 2025, November 18, 2025 and February 3, 2026. The third extension is nearing expiration, creating the need for another extension, as the Development Agreement between Hillwood and the City of Lockhart has not yet been approved. The subject agreement is conditioned in part on the ability of Hillwood Communities and the City to negotiate and enter into a development agreement and expires in 90 days on August 3 2026, and represents the fourth extension of the original 180-day consent agreement.

Resolution 2026-20 authorizes proceeding with the issuance of Certificates of Obligation and further directing the publication of Notice of Intention to issue City of Lockhart, Texas combination tax and revenue certificates of obligation for certain capital projects. The issuance amount of $15,000,000 in the resolution is an amount not to exceed. Council may authorize an issuance amount less than the $15,000,000, depending on the scope of capital projects funded by the issuance. The proposed projects to be funded by this issuance include the following: - design and renovation/construction of an indoor recreation center, currently estimated at approximately $12,000,000; and - subject to available funding capacity and Council direction, upgrades to the existing City Hall; land acquisition and design for future police and/or fire facilities; improvements to existing City parks; and/or street and drainage improvements. The final issuance amount would also include the costs of professional services, including fiscal and engineering fees, in connection to these projects and the costs of issuing the certificates of obligation. Based on guidance from the City’s Financial Advisor, Council has until June 16, 2026, to make a final determination on the issuance amount, should it choose to authorize an amount less than the “not to exceed” threshold. If the Resolution authorizing the Notice of Intent is approved, the City’s Bond Counsel and Financial Advisor will proceed with publication of the required notices and begin preparation of the offering documents for the CO’s. The Financial Advisor is expected to price the CO’s through a competitive sale and present a recommendation for award at a future City Council meeting.

An overview of key growth indicators shaping the county, including population trends, demographic shifts, property valuations, and broader market dynamics, providing context for how these changes impact small businesses. The presentation breaks down the story behind the numbers - who’s moving in, how the community is changing, and what rising values mean for the local business landscape.

On April 14, 2026, the City Council held a workshop to discuss solid waste services, operation of the Recycling Center, and the associated cost of service to customers. Following discussion, Council voted to implement universal residential recycling, opt-in commercial recycling, and also approved closure of the Recycling Center effective October 1, 2026, to coincide with the end of the fiscal year budget. The closure was based on the determination that the Recycling Center would no longer be needed once universal residential recycling is available. Since that action, representatives from Caldwell County have contacted the City of Lockhart to request that non-city residents who reside in the unincorporated areas of Caldwell County be allowed to use the Recycling Center for recycling services during the period leading up to the facility’s closure. To allow Caldwell County residents temporary use of the Recycling Center, code amendments would be required. Ordinance 2026-21 would authorize Caldwell County residents who live in unincorporated areas of the county to use the City of Lockhart Recycling Center through September 30, 2026. County residents would be required to show proof of residency, comply with applicable recycling regulations, and pay a per-visit fee for use of the facility. Currently, the City of Lockhart Code of Ordinances provides that only current owners and/or occupants of residential and commercial/industrial properties located within the city may use the recycling site upon presentation of a current utility bill or valid driver’s license, and that non-recycled materials or solid waste generated outside the city limits will not be accepted. If adopted, the code would need to be amended again effective October 1, 2026, to repeal the temporary authorization for Caldwell County resident

Ordinance 2026-17 amends Section 56-192 of the City Code to revise the posted speed limits along FM 20 from East Martin Luther King Jr. Boulevard to the eastern city limits. The proposed ordinance would lower the speed limits on this segment by 5 miles per hour to improve traffic safety and better reflect current roadway conditions. The speed limits on FM 20 between East Martin Luther King Jr. Boulevard and US 183 would remain unchanged. The proposed changes are based on a speed study conducted by the Texas Department of Transportation following a severe accident in the area. As a result of that study, TxDOT recommended reducing speeds along portions of the corridor to enhance safety for the traveling public. In addition to the speed limit revisions, the ordinance makes a technical correction to the directional references in the City Code by changing “northbound” and “southbound” to the correct designations of “eastbound” and “westbound” for FM 20. Speed limits on FM 20 east of the city limits to FM 1854 are also proposed to be reduced as well. Because those sections is outside the city’s jurisdiction, TxDOT will implement those changes separately through a Commission Minute Order.

To facilitate credit card payments for City services, the City maintains a merchant services agreement for processing transactions. On April 7, 2026, City Council approved a three-year agreement with Global Payments Direct, Inc. under Resolution 2026-16, which established a negotiated processing rate averaging approximately 3.15% and significantly reduced the City’s exposure to fluctuating market rates. While the new agreement is projected to significantly reduce overall processing costs compared to prior variable rates, the current 2% convenience fee charged to customers does not fully recover the City’s cost of processing credit card transactions. Credit card processing fees are comprised of several components, including interchange fees charged by card-issuing banks, card network (e.g., Visa/Mastercard) assessment fees, and processor fees charged by the City’s vendor (Global Payments Direct, Inc.), which include discount rates and per-transaction charges. Under the approved agreement, the blended effective rate for these combined components is estimated at approximately 3.15%. As a result, maintaining the current 2% convenience fee would continue to require a City subsidy to cover the difference between fees collected and actual processing costs. In response to Council direction provided during the April 7, 2026 meeting, staff has evaluated adjusting the convenience fee to more closely align with actual costs. The proposed increase to 3.25% is intended to function as a pass-through fee to users, better aligning with the City’s actual cost of service while remaining within the allowable limit under state law. The last adjustment to the City’s credit card fee occurred in July 2011.

Resolution 2026-20 authorizes proceeding with the issuance of Certificates of Obligation and further directing the publication of Notice of Intention to issue City of Lockhart, Texas combination tax and revenue certificates of obligation for certain capital projects. The issuance amount of $15,000,000 in the resolution is an amount not to exceed. Council may authorize an issuance amount less than the $15,000,000, depending on the scope of capital projects funded by the issuance. The proposed projects to be funded by this issuance include the following: - design and renovation/construction of an indoor recreation center, currently estimated at approximately $12,000,000; and - subject to available funding capacity and Council direction, upgrades to the existing City Hall; land acquisition and design for future police and/or fire facilities; improvements to existing City parks; and/or street and drainage improvements. The final issuance amount would also include the costs of professional services, including fiscal and engineering fees, in connection to these projects and the costs of issuing the certificates of obligation. Based on guidance from the City’s Financial Advisor, Council has until June 16, 2026, to make a final determination on the issuance amount, should it choose to authorize an amount less than the “not to exceed” threshold. If the Resolution authorizing the Notice of Intent is approved, the City’s Bond Counsel and Financial Advisor will proceed with publication of the required notices and begin preparation of the offering documents for the CO’s. The Financial Advisor is expected to price the CO’s through a competitive sale and present a recommendation for award at a future City Council meeting.

State law requires that a city consent to the inclusion of land in its ETJ in a municipal utility district (“MUD”). At a workshop on January 27, 2025, Hillwood Communities discussed the development of 889.3 acres of land (“Property”), 720.681 acres of which is in City’s ETJ (“Property”). Hillwood Communities is continuting in its due diligence period for the purchase of the Property and has asked the City to extend the conditional consent to creation of the Lockhart Municipal Utility District of Caldwell County and the inclusion of the Property into said district. This consent was granted with the passage of Resolution 2025-08 on February 18, 2025. The consent agreement was renewed on August 5, 2025, November 18, 2025 and February 3, 2026. The third extension is nearing expiration, creating the need for another extension, as the Development Agreement between Hillwood and the City of Lockhart has not yet been approved. The subject agreement is conditioned in part on the ability of Hillwood Communities and the City to negotiate and enter into a development agreement and expires in 90 days on August 3 2026, and represents the fourth extension of the original 180-day consent agreement.

Invocation. Pledge of Allegiance to the United States and Texas flags.