Tourism board pauses new spending pending audit, votes to replace management contract with part-time contractor

The Tourism Economic Development Authority trustees voted on Feb. 25 to approve the authority27s financial report, instructed staff to pause discretionary spending pending completion of the audit, and approved a motion to not award a full management contract and instead hire a contractor for five hours a week at $250 per week.

The board27s treasurer summarized the financial picture at the meeting and urged caution. "Income for February 2025 is $17,183.83 for an annualized income of $398,118. Expenses to date are $481,285 which include grants, special projects, the fall concert series, and the management contract. We have a current bank balance of $400,000. We continue to operate in deficit and funding projects and operations out of cash reserves," Treasurer Kara said. Kara told trustees that, after consulting with the auditors under contract, "the trustees of this tourism authority should not move forward with any motion or vote of expenditures until the audit is complete and the trustees receive further notice. That is my recommendation and my financial report."

Why it matters: trustees said tax revenue month over month is trending downward and the authority is drawing on reserves. The treasurer warned that without changes the authority could face a shortfall that would limit future events and grants.

Discussion and direction: Several trustees argued over how to balance savings against active promotion. Some trustees urged continuing investments that drive hotel stays and downtown activity; others pressed for immediate cost reductions. Trustee Thorpe (motion maker) argued the authority should reduce contract costs and redirect funds toward projects that integrate city and private partners to create larger destination experiences. Trustee concerns included unresolved audit findings and whether a very small contract would be adequate to run marketing, bookkeeping, venue coordination and event activations.

Formal actions: The board first took a roll-call vote to accept the treasurer27s financial report to include in the minutes. Trustees voting to accept the financial report included Jim (yes), Danny (yes), Carrie (yes), Debbie (yes), Matt (yes) and others present; the motion passed. Later, after discussion, the board voted on a motion "that we do not award the management contract, that we contract out a person at 5 hours a week" and to set the contract at $250 per week (a threshold below competitive bidding requirements as described at the meeting). The board approved the motion, with trustees recorded in the discussion as voting in favor; two trustees registered a no vote during roll call and one trustee registered an abstention in the recorded exchange. The motion outcome was recorded as approved.

Clarifying details from the meeting: The treasurer said the fall concert series had cost about $186,000 to date (described as $150,000 plus additional costs) and that the authority had paid $150,000 to a management contract in previous years. Trustees discussed proposals to scale back management spending to a minimal contract (five hours per week) to preserve funds for tourism projects; one trustee described that five hours per week would cost about $1,000 a month (the motion discussed $250 per week). The board noted audit requests remain outstanding and that auditors had asked for additional documentation.

What27s next: Trustees directed that no new grant or sponsorship disbursements be authorized until auditors complete their review and the board receives the audit findings. The board also instructed staff to bring back a posted agenda item or planning workshop to develop a multi-party strategy (city, Choctaw Nation, college, chamber) for destination-level projects and how the authority will fund them going forward.

Ending: The board identified dual priorities: safeguard taxpayer-funded reserves while keeping the authority capable of promoting events and lodging. Trustees said they will revisit management staffing and event contracting after auditors finish their work and after a planning workshop to define shared projects and funding roles.