(A report by the Iowa Capital Dispatch) – The former Elgin city clerk, originally charged with theft in the alleged misuse of $131,213 in taxpayer money, has been fined $430 after pleading guilty to a misdemeanor offense. In March 2023, former Elgin City Clerk Rhonda Dales was named in a state audit report that identified $131,213 in improper disbursements by the city and an additional $7,532 in disbursements for which there was no supporting documentation.
The questionable spending cited by the auditor included:
— Excess payroll payments to Dales: $60,726.
— Unauthorized comp time for Dales: $27,451
— Unauthorized paid time off for Dales: $9,863
— Improper reimbursement payments to Dales: $19,204
The report noted that much of the questionable spending was tied to pay and benefits collected by Dales in violation of city policies. However, the report also noted that regardless of the policy, city council members did not agree as to whether Dales, as a part-time employee, was entitled to such payments.
According to the auditor’s office, its investigation stemmed from a May 2021 Elgin City Council meeting at which Dales was informed she was being fired due to concerns with her job performance. Because of the concerns, city officials asked state auditors to review the city’s financial records from 2017 through June 2021. According to the auditor’s report, the findings of wrongdoing were based on the benefits being contrary to city policy. The report highlighted several deficiencies in financial oversight by the council, noting that the city didn’t follow its own personnel policies and, as a result, Dales “periodically paid herself” for more hours worked than the council had ever authorized.
Within days of the auditor’s report being released in 2023, Fayette County officials criminally charged Dales with felony first-degree theft. Dales pleaded not guilty, and the case was initially scheduled for trial in July 2023.
Court records show that over the next two-and-a-half years, judges granted 14 continuances in the case, and on Aug. 22, 2025, Fayette County prosecutor Jason Dunn reduced the charge from felony first-degree theft to misdemeanor fourth-degree theft, alleging Dales stole no more than $750 worth of property from the city.
Dales pleaded guilty to the charge and on Sept. 3, 2025, was fined $430 and placed on informal probation for one year. There was no restitution ordered in the case.