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Wagoner County Development Authority approves up to $13.62 million bond issuance to cover federal judgment
Summary
Trustees approved a resolution authorizing the Wagner (sic) County Development Authority to issue up to $13,620,000 in bonds to pay a federal judgment entered Nov. 19, 2024; county commissioners adopted companion resolutions and a use-tax implementation resolution to help secure repayment.
The Wagoner County Development Authority voted Monday to authorize the issuance of bonds in an amount not to exceed $13,620,000 to provide funds to pay the balance of a judgment entered against Wagoner County in U.S. District Court for the Eastern District of Oklahoma on Nov. 19, 2024.
The resolution, read and discussed in a joint session of the development authority trustees and the Wagoner County Board of Commissioners, authorizes negotiated sale of the obligations, waiver of competitive bidding for the sale, and execution of related sale and bond-purchase documents. Jay Fraley of the Floyd Law Firm and financial adviser Randy Nelson briefed trustees and commissioners on timing and interest-rate risks, saying the resolution is a first step toward selling bonds and locking current interest rates.
Fraley said the authority will use a public-trust structure to issue the debt and recommended expediting the sale to stabilize interest costs. Randy Nelson said the judgment amount has accrued interest since Jan. 1 and the not-to-exceed amount is intended to cover principal plus estimated accrued interest through closing.
Commissioners then convened as the Board of County Commissioners and took companion action on related agenda items, including approving a resolution to implement a use tax on the same basis as the new county sales tax to dedicate receipts to the debt while it is outstanding.
The development authority motion passed by roll call; commissioners also approved the companion actions. No final bond documents or sale dates were announced at the meeting; officials said additional steps and professional hires will follow to complete the issuance.
Why it matters: The authority’s action is aimed at avoiding placing the judgment on the tax rolls by converting the court judgment into financed obligations. County officials said interest accrues daily and swift action is intended to limit additional interest expense while legal and financing steps continue.
What’s next: Officials said they will return with details on negotiated-sale terms and any related documents as negotiations progress.
