Uhland Mayor Resigns After Felony Arrest Over Missing Festival Funds

Political Turmoil Rocks Small Texas Town

Lacee Duke stepped down as mayor of Uhland, Texas on Monday, ending a tumultuous six-month period that began with her arrest on felony charges related to the alleged improper disbursement of $250,000 to the operator of Uhland Fall Fest . The resignation came just days after a contentious local election that brought new council members to power in the town of roughly 1,500 residents.

Duke had maintained her innocence and publicly stated she would not step down at a Dec. 18 city council meeting , but her defiant stance crumbled under mounting political pressure. "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 resignation statement.

The mayor's departure marks the culmination of a dramatic political showdown that has divided the small community east of Kyle. Mayor Pro Tem Chris Warndahl also resigned his position on the council and the Economic Development Board on Monday , creating a leadership vacuum that the city council must now address.

Serious Criminal Allegations Surface

Duke was indicted and arrested by Texas Rangers on Dec. 4 on a charge of misapplication of fiduciary property greater than $150,000 and less than $300,000 – a second-degree felony punishable by up to 20 years in prison . The investigation centered on allegations of an improper disbursement of $250,000 from city funds to a company, Old Town Uhland LLC, that related to the Uhland Fall Fest .

The Texas Rangers, who specialize in investigating public corruption cases, built their case around a controversial check that Duke signed as mayor. Duke was released after posting $20,000 bond , but the damage to her political standing proved irreversible as the community learned more about the allegations.

Following her arrest, the Uhland City Council passed a resolution to suspend Mayor Duke's financial authority and appointed a finance committee to oversee check signatures . The move reflected the council's determination to protect city finances while the criminal case proceeded.

Community Divides Over Mayor's Fate

The controversy split Uhland residents into opposing camps that became visible at heated city council meetings. One contingent held up signs with slogans like "fire the mayor" and "where did our money go," while others wore red heart-shaped lapel pins inscribed with the phrase, "you make a difference" . The supporters' pins came with notes claiming Duke faced "baseless charges in a perceived effort to force her resignation" .

There were nearly 50 people in attendance – the most, former city council member Mark Garonzik said, he had ever seen at a city meeting . The unprecedented turnout reflected how deeply the scandal had penetrated the small community's consciousness, forcing neighbors to choose sides in a very public political battle.

Leadership Crisis Threatens City Operations

The resignations of Duke and Warndahl mark a period of significant turnover in Uhland's government, with former city council member Ron Merrill also relinquishing his seat in January, leaving only two of the six member council who have been in office since the beginning of the year . This massive exodus of leadership creates immediate challenges for basic city operations and long-term planning.

The Uhland City Council is expected to formally accept the resignations and swear in newly elected council members during a special meeting, with council members potentially appointing a new mayor during that meeting or deciding to call a special election . The path forward remains uncertain as the community grapples with rebuilding trust in local government while ensuring essential services continue uninterrupted.

The Uhland crisis serves as a stark reminder of how quickly local politics can unravel when financial impropriety allegations surface. As Duke faces potential prison time, the town must navigate the delicate process of restoring stability while the criminal case continues to unfold in the courts.