Uhland Mayor Steps Down Following Felony Charges Over Festival Funds

Political Crisis Shakes Small Texas Town

Lacee Duke resigned as Uhland's mayor on Monday, six months after Texas Rangers arrested her on a felony charge for an alleged improper disbursement of $250,000 to the operator of Uhland Fall Fest . The resignation marks the dramatic conclusion to a months-long political crisis that divided the small Texas community of roughly 1,500 residents.

In a statement submitted midday Monday, Duke tendered her resignation "immediately," saying the decision was made "with the heaviest of hearts" . Her departure came after May elections, where new blood was elected to lead Uhland with one incumbent council member ousted , signaling a clear shift in voter sentiment.

Duke had maintained her innocence and publicly stated she would not step down at a Dec. 18 city council meeting – the first she attended after being arrested on a third-degree felony charge of misapplication of fiduciary property . The charges stem from allegations of an improper disbursement of $250,000 from the City of Uhland to Old Town Uhland LLC. The payment was related to the 2024 Uhland Fall Fest .

Community Divided Over Leadership

The scandal created deep divisions within Uhland, a growing community east of Austin. Duke appeared self-assured as she led the meeting in front of a packed chamber and divided constituency – several residents raised signs calling for her ouster while others donned red lapel pins supporting her continued leadership . During a public comment period, Garonzik said a petition to remove the mayor had gathered almost 300 signatures .

The controversy forced the city council to take unprecedented action. The council opted to confine restrictions on Duke to financial matters. They did not limit Duke's ability to preside over meetings or access the city's facilities . This partial stripping of authority reflected the delicate political balance the council tried to maintain while addressing community concerns about financial oversight.

The charge is a second-degree felony punishable by two to 20 years in prison, according to Texas statute . Duke had originally championed the festival investment, writing that it would "put the City of Uhland on the map as a unique and unrivaled destination" and calling it "a once in a lifetime opportunity" .

Government Upheaval Continues

The town's Mayor Pro Tem, Chris Warndahl, also on Monday resigned his position on the council and the Economic Development Board. Duke's and Warndahl's terms would have lasted until 2027 . This latest departure adds to what has been a period of significant turnover in city leadership.

Former city council member Ron Merrill relinquished his seat in January. Only two of the six member council have been in office since the beginning of the year: Mary LaPoint and Garza . The rapid succession of departures has left the small city government struggling to maintain continuity during a period of rapid growth.

Uhland is a small but growing town, with just over 1,500 people counted in the 2020 U.S. Census. The city's economic development corporation projects the population will grow past 18,000 . With such ambitious growth projections, stable leadership becomes even more critical for managing development and municipal services.

Looking Ahead

At a May 11 meeting, the City Council will appoint a mayor and replacement for Warndahl's Place 5 seat . The new leadership will inherit a community still processing the fallout from the scandal and working to rebuild trust in local government.

Duke's resignation statement reflected the bitter divisions that emerged during the crisis. "The majority of Uhland's voters in this recent election have made their preference known and I cannot, in good conscience, stand shoulder-to-shoulder with people who subvert law, order and justice," Duke said in her statement . Her criminal case remains pending, with the Caldwell County District Clerk's Office said a plea had not yet been entered in Duke's case .

The festival at the center of the controversy continues operating, with its founder maintaining that the event has been "welcomed with open arms by the City of Uhland" . As Uhland moves forward with new leadership, residents hope for greater transparency and accountability in city governance, particularly as the community navigates its rapid transformation from small town to growing suburb.