The move comes as city officials continue to formulate a plan to hire a new permanent city manager, according to City Council Member Louis Mastrangelo.
Mastrangelo said council also decided to add a 10% stipend to Oakley's salary that will go into effect retroactively from the time she assumed the acting city manager role immediately following the sudden Aug. 19 resignation of Steve Jones, who had been Lakeway's city manager since 2005.
No reasons have yet been given from officials for Jones' resignation. Mastrangelo said council is doing its due diligence regarding the search for a permanent replacement for Jones, and added after the Sept. 9 meeting that Oakley remains a candidate for the position.
Oakley's 10% stipend will last until her replacement is appointed, and there is of yet no time line for when a plan to fill the city manager role might be elucidated publicly, Mastrangelo said.