BAXTER, IOWA – Two former town officials are in hot water after a state audit showed thousands of dollars were mis-spent, leading to serious charges.
Today, authorities arrested former City of Baxter employees William Daggett and Katelyn Wilson. The arrests follow an investigation by the Division of Criminal Investigation, the Iowa Auditor of State’s Office, and the Jasper County Attorney’s Office.
The following individuals were arrested on charges related to the investigation:
William Dagget, 48, former chief of police:
Theft in the First Degree (Class C Felony)
Felonious Misconduct in Office (Class D Felony)
Katelyn Wilson, 29, former city clerk:
Unauthorized Computer Access (Aggravated Misdemeanor)
The findings of the City of Baxter audit and the criminal investigation are detailed in the November 6, 2025, report from the Iowa Auditor of State’s Office and the associated charging documents. No additional information was released.
Back on November 6, 2025, Auditor of State Rob Sand released a report on a special investigation of the City of Baxter for the period July 1, 2021 through February 29, 2024. The special investigation was requested by City officials as a result of concerns regarding certain financial transactions processed by former employees, William Daggett, former Police Chief; Katie Wilson, former City Clerk; and Randi Gliem, former EMS Coordinator.
Sand reported the special investigation identified $75,073.73 of improper disbursements, $11,294.57 of unsupported disbursements, and $3,814.88 of unbilled, uncollected, and over-collected utility billings. However, because City records were not sufficiently maintained, it was not possible to determine if additional amounts were improperly disbursed or if additional utility transactions were
improperly recorded or not properly billed and/or collected.
Sand reported the $75,073.73 of improper disbursements identified includes:
• $51,275.62 of improper payroll costs and excess comp time payments, respectively, paid to Daggett;
• $3,509.55 of improper payroll costs and excess comp time payments, respectively, paid to Wilson;
• $1,461.09 of improper payroll costs and excess vacation balance payout, respectively, paid to Gliem;
• $1,776.99 of improper payroll to EMS volunteers;
• $4,050.00 of improper payments to a former Water Affidavit Operator;
• $10,475.05 of improper disbursements to vendors and cash withdrawals;
• $2,037.66 of improper purchases made with the City’s VISA credit card, late fees, and interest; and
• $487.77 of improper disbursements to vendors for Police Department operations.
The $11,294.57 of unsupported disbursements identified is composed 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.