The City of Lakeway is a home-rule city. Accordingly, the City shall have all the powers, defined and implied, that are now, or may hereafter be granted to home-rule cities by the State and this Charter.
Among others, the City may:
(a) 
Use a corporate seal;
(b) 
Contract and be contracted with;
(c) 
Sue and be sued in all courts in all matters;
(d) 
Cooperate with other government entities;
(e) 
Own, acquire or manage property for any municipal purpose within the City or elsewhere;
(f) 
Provide public facilities and services for any municipal purpose;
(g) 
Establish rates and otherwise regulate public utilities in accordance with state and federal law;
(h) 
Assess, levy and collect taxes;
(i) 
Borrow money on the faith and credit of the City, subject to limitations elsewhere in this Charter;
(j) 
Appropriate money;
(k) 
Pass and enforce ordinances;
(l) 
Provide penalties for ordinance violations;
(m) 
Exercise all municipal powers, functions, rights, privileges and immunities of every name and nature except those prohibited by state or federal law.
Enumeration of powers in this Charter is not exclusive. The City shall have all powers, not cited in this Charter incident to local self-government allowed by state and federal law as now enacted or hereafter amended.
The City shall have the full power and right to exercise the power of eminent domain when necessary or desirable to carry out any of the powers conferred upon it by this Charter or by the Constitution or laws of the State of Texas. The power of eminent domain hereby conferred shall include the right of the City to take the fee or some lesser interest in the land so condemned and such power and authority shall include the right to condemn public or private property for such purposes as provided by the statutes of the State of Texas. The City shall have and possess the power of condemnation within or without the corporate limits of the City for any approved public purposes even though not specifically enumerated in this Charter.
For the purpose of promoting the public health, safety, morals, and general welfare and protecting and preserving places and areas of historical, cultural or architectural importance, the Council shall have full power and authority to zone the City and to pass all necessary ordinances, rules and regulations governing the same pursuant to and in accordance with the laws of the State of Texas as now or hereafter amended.