Lakeway City Manager Julie Oakley has submitted her resignation, which will take effect in September, according to a press release from the city on July 6.

Oakley has been with the city for 12 years in various capacities, including as finance director, assistant city manager and her current position, which she has served in since 2019. She will be moving on to work for a top national accounting firm, and she will also be taking time to care for her mother in West Texas, who has been battling Alzheimer’s disease, Oakley said in the statement.

“I am proud of dedicating 12 years of my life to the city of Lakeway,” Oakley said. “I am truly proud of this Lakeway team. And while I am very excited for this next step in my professional journey, I also know it will be difficult to move on from this amazing team, having worked with many city staff members for more than a decade.”

In her time with the city, Oakley has worked with city staff to usher in new developments, enhance communication for residents, improve the city credit rating and keep taxes low while maintaining quality levels of service, she said. She also worked as not only the city manager, but also filled in as emergency operations manager during Winter Storm Uri and led the city throughout the pandemic, Mayor Tom Kilgore said.

“We—myself and my fellow council members—thank Julie for making the city of Lakeway a better place for all of our residents,” Kilgore said. “We appreciate her hard work and dedication, and wish her the best on this next step of her professional journey.”

This resignation is not in response to the recent lawsuit filed against the city on June 14, concerning Oakley’s residency within the city, she said.

“While the timing is merely coincidental, I want to be clear that this decision does not have to do with the frivolous, politically motivated lawsuit recently filed,” Oakley said. “I was already two months into the interview process when we were made aware of the lawsuit.”

The City Charter requires the city manager to live within Lakeway. The lawsuit was filed in a district court by resident Christopher Levy, claiming Oakley lived outside the city and that officials had deceived residents to cover up the violation of the City Charter.

Due to the suspicion of residents, Oakley has been under constant surveillance for the past several months, with one or more individuals following her home from City Hall or waiting for her at her Lakeway home, Kilgore said.

“While I am supportive of her making this decision to advance her career on a national level, I am also dismayed by the actions of certain individuals within the city of Lakeway over the past several months who have threatened the safety of Julie and her family,” Kilgore said. “No city employee, male or female, should be exposed to a harassing environment. No Lakeway resident should condone or accept this kind of behavior in our community.”

Oakley’s last day with the city will be Sept. 2, she said.

“I want to thank the community for allowing me to serve as your city manager,” Oakley said. "It truly is a team effort here in Lakeway, and I have learned a lot on this particular journey. I know there are still great things to come for this beautiful community, and I look forward to checking in and seeing more of Lakeway’s story evolve.”

Full comments from Oakley and Kilgore are available on the city’s website.