The cash withdrawals had not been paid back by the first week of January, city documents show.
The same employee, Randy Freeman, later called Edwards and asked him about the withdrawals from the petty cash drawer. The conversation was monitored and recorded by the Sallisaw Police Department.
Baker said it is against Sallisaw city policy to take public funds for personal use.
An investigative report prepared by the Sallisaw Police Department has been forwarded to the Sequoyah County district attorney's office.
Baker said the Oklahoma State Bureau of Investigation declined to investigate the incident.
“It's basically in their hands now,” Baker said of the district attorney's office.
Sequoyah County District Attorney Brian Kuester said his office received the report from the Sallisaw Police Department last week but that “no decisions have been made” on whether formal charges will be filed.
Edwards did not return phone messages seeking comment for this story.
Sallisaw is less than 25 miles from the Arkansas border. The city has a population of about 9,000.