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City attorney outlines narrow legal conditions for city funding of nonprofits; council signals tighter standards
Summary
City Attorney Brad Bullock and the Texas Municipal League guidance briefed the council on legal limits for general fund and hotel‑occupancy‑tax grants to nonprofits; councilors signaled they will tighten oversight and consider contract arrangements rather than automatic annual payments.
The Lago Vista City Council heard legal guidance on whether the city may make grants or donations to nonprofit organizations and under what rules such funding would be lawful.
City Attorney Brad Bullock told the council that gratuitous donations by a city to private parties are generally prohibited by the Texas Constitution (Article 16, Section 50) and the prohibition against lending the city's credit (Article 3, Section 52). He said expenditures that incidentally benefit private interests can be valid only if the expenditure is for a…
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