Wagoner County diverts monthly economic development payments to pay down $13 million debt; authority director cautions on long-term effects

Wagoner County commissioners voted Feb. 20 to temporarily divert monthly payments that had been routed to the Wagoner County Economic Development Authority (EDA) into a county-controlled account to help pay down an estimated $13 million debt.

The motion grew out of staff review of EDA purchase orders showing the authority had used county-provided funds for donations to service organizations. A commissioner who placed the item on the agenda said the board should prioritize reducing the county’s outstanding debt and temporarily withhold the monthly use-tax transfers to the EDA and place them in a county account for debt reduction.

Donna Heller, director of county economic development, told the board she valued the EDA’s role and warned the move would remove a revenue stream the authority uses for operations and marketing. "I would not be doing the job that you hired me to do, commissioners, unless I speak up and say, be thoughtful in that," Heller said, noting the EDA uses county appropriations to market and attract investment.

County Treasurer Chastity Lehi clarified that the funds in question are use-tax receipts and that the diversion would be an internal accounting change rather than an immediate statutory amendment. "This whole funding is use tax. Right. You understand that? It's use tax," Lehi said, confirming the county could create a separate internal account under use-tax receipts to hold the diverted funds.

Commissioners debated whether the change should be temporary and whether it would prevent the EDA from carrying out core functions. The board's motion established a temporary diversion of the monthly transfers into a county account to be used, initially, to reduce the debt; commissioners said they could revisit the policy if the EDA presented specific needs or projects that warranted restored funding.

The board approved the motion in a recorded roll call. Commissioners directed staff to route the transfers into the newly created county account and to report back on the account balance and any requests from the EDA for use of the funds.

Actions recorded: motion to divert monthly use-tax payments to the county account for debt reduction (mover: Tim; seconder: Randy; tally: yes 3; outcome: approved). Commissioners recorded the action as a temporary administrative diversion rather than an immediate change to the underlying resolution governing the use-tax allocation; they said the board could revisit policy changes later.

Commissioners and county staff said the diverted funds would remain within the county's use-tax framework and that any future redesign of the funding flow would be brought back for board consideration.