Two former City of Baxter employees were arrested Thursday, January 8th following an investigation that uncovered more than $75,000 in improper disbursements, according to authorities.
William Daggett, 48, former chief of police, and Katelyn Wilson, 29, former city clerk, were taken into custody after an investigation conducted by the Division of Criminal Investigation, the Iowa Auditor of State’s Office, and the Jasper County Attorney’s Office.
Charges
William Daggett faces:
- Theft in the First Degree (Class C Felony)
- Felonious Misconduct in Office (Class D Felony)
Katelyn Wilson faces:
- Unauthorized Computer Access (Aggravated Misdemeanor)
Audit Findings
Iowa Auditor of State Rob Sand released a special investigation report on November 6th, 2025, detailing findings from an examination of the City of Baxter for the period July 1st, 2021, through February 29th, 2024. The investigation was requested by city officials following concerns regarding certain financial transactions processed by former employees, including Daggett, Wilson, and Randi Gliem, former EMS Coordinator.
The investigation identified $75,073.73 in improper disbursements, $11,294.57 in unsupported disbursements, and $3,814.88 in unbilled, uncollected, and over-collected utility billings. However, because city records were not sufficiently maintained, auditors could not determine if additional amounts were improperly disbursed or if additional utility transactions were improperly recorded or not properly billed and collected.
Breakdown of Improper Disbursements
The $75,073.73 in improper disbursements includes:
- $51,275.62 in improper payroll costs and excess comp time payments paid to Daggett
- $3,509.55 in improper payroll costs and excess comp time payments paid to Wilson
- $1,461.09 in improper payroll costs and excess vacation balance payout paid to Gliem
- $1,776.99 in improper payroll to EMS volunteers
- $4,050.00 in improper payments to a former Water Affidavit Operator
- $10,475.05 in improper disbursements to vendors and cash withdrawals
- $2,037.66 in improper purchases made with the city’s VISA credit card, late fees, and interest
- $487.77 in improper disbursements to vendors for Police Department operations
Unsupported Disbursements and Utility Issues
The $11,294.57 in unsupported disbursements consists of transactions for which the city could not provide supporting documentation, including purchases made with the city’s VISA credit card, purchases from vendors, reimbursements issued to the former librarian, and reimbursements issued to Wilson.
The uncollected, unbilled, and over-collected utility billings identified include $2,851.91 in utility deposits not properly returned to certain customers, $565.47 in utility penalties, and $397.50 in non-sufficient funds fees which should have been applied to accounts but were not.
Recommendations
Sand recommended city officials implement procedures to strengthen internal controls, including segregation of duties, performing utility reconciliations, conducting independent review of bank statements, and ensuring all disbursements are properly supported, approved, and paid in a timely manner.
Copies of the report have been filed with the Jasper County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Jasper County Attorney’s Office, and the Iowa Attorney General’s Office. A copy of the report is available for review on the Auditor of State’s website at Special Interest Reports.
The findings of the City of Baxter audit and the criminal investigation are detailed in the November 6th, 2025, report from the Iowa Auditor of State’s Office and the associated charging documents. No additional information is being released at this time.
