The Hills of Lakeway, now designated as The Hills (or Village of The Hills), was originally in the extra-territorial jurisdiction (ETJ) of the City of Austin. In November 1996, a contract, which transferred the ETJ to the City of Lakeway, carried the stipulation that the City of Lakeway would consent to the incorporation election for a municipality within the village territory.
Contract Set in Place
This contract was signed by:
- Jack O’Neill (mayor of Lakeway)
- Herk Wotkyns (president of the Hurst Creek MUD)
- Don Iburg (president of the Lakeway MUD)
- Ken Pipes (president of the Hills of Lakeway Property Owners Association (POA))
- Stephen Walker (assistant secretary of the Lakeway Hills Properties, L.P., grantor at the time)
- Darrell Ingram
- Paul Hime
- Ken Germond
- George Sawyer
In December 1996, Mayor O’Neill signed the resolution consenting to the incorporation of The Hills. In February 1997, a plan for incorporation as a municipality was presented to property owners in The Hills of Lakeway, a vote was held and the results were 490 for incorporation and 15 against.
The Hills was incorporated as a Type B General Law municipality in the State of Texas in May 1997 and the first election for members of the Board of Aldermen (a mayor and five aldermen) was held in August 1997, Mayors since incorporation have been Ken Pipes, George Sawyer, Virginia Jones, Doug Lindgren, Ron Dodd, and Eric B. Ovlen.
Merging the POA & MUD
It was originally planned that, after incorporation, the Hills of Lakeway POA and the Hurst Creek Municipal Utility District (MUD) would be merged into the municipality but that was soon seen as impossible. As long as the roads remained private and security service provided, the POA would have to continue to exist as cities may not own or maintain private roads or gate security service. Since the POA had both the personnel and expertise to handle architectural controls that function was also left in their able hands.
The Hurst Creek MUD has not yet merged into the municipality as it has customers outside the boundaries of the Village who pay ad valorem taxes on MUD debt.
The Hills is a city with predominantly single-family homes and only one "business" in the community - The Hills Country Club. The property (ad valorem) tax rate in the Village is $0.10 per hundred and the sales tax is 0.075%, of which the Village levies one-half of a cent towards property tax reduction. The preferred postal address is "The Hills, TX 78738".