On the agenda: Charles City meeting — surveillance camera (Nov 9)

Council/Staff Planning Session

1. Meeting Date And Time
1.I. Monday, November 9, 2026, At 6:00 P.m. City Council, Mayor, And City Staff Will Be
Attending In Person In The Council Chambers Of City Hall. The Public May Attend In
Person Or Via Phone: 312-626-6799, Meeting ID 7870658066.
2. Call To Order
3. Axon Enterprises, Inc. 10-Year Master Services & Purchasing Agreement For Body-Worn
And Fleet Camera Systems
Documents:
AIS - AXON BODY AND FLEET CAMERA AGREEMENT_11.09.2026.PDF
4. FY26 Final Audit Report From T.P. Anderson & Company, P.C.
Documents:
AIS - FY26 AUDIT REPORTS_T.P. ANDERSON.DOC.PDF
5. Upcoming Pay Request To Kingland Construction Services, LLC For The City Hall/Police
Department Renovation Project
6. City Website Redesign Draft Preview
Documents:
AIS - CITYWEBSITEREDESIGNDRAFTPREVIEW.PDF
7. Utility Rate Study Planning Session Date
8. City Administrator Report
9. Board, Commission Or Committee Reports
10. Adjourn

MEETING DATE: 9 November 2026

AGENDA ITEM SUMMARY
Subject: Contract for body and fleet cameras
____________________________________________________________________

Background Summary: Chief Anderson
I recommend that we move forward with Quote C. With the current state of our
body camera program, officers are constantly concerned whether the cameras
function and record. This puts the public and our officers at a great risk. Each
encounter we have could be the one in which camera footage is paramount and
we may not have it.

5-year

10-year

Sign by Nov 30

Sign by Dec 31

discounted

standard

Quote A

Quote B

$39,273.71 per year

$45,596.61 per year

Total $196,592.20

Total $227,840.20

Q-971591-46310JH

Q-969531-46310JH

Quote C

Quote D

$45,507.95 per year

$50,003.10 per year

Total $455,079.54

Total $500,031.04

Q-971596-46310JH

Q-972370-46310JH

CITY OF CHARLES CITY

Axon Enterprise, Inc.
17800 N 85th St
Scottsdale, Arizona 85255
United States
VAT: 86-0741227
Domestic:(800) 978-2737
International:

Q-971596-46322JH
Issued: 10/27/2026
Quote Expiration: 11/30/2026
Estimated Contract Start Date: 01/01/2027
Account Number: 156528
Payment Terms: N30
Mode of Delivery: AUTO-GND
Credit/Debit Amount: $0.00

SHIP TO

BILL TO

Charles City Police Dept. - IA
105 Milwaukee Mall
Charles City,
IA
50616-2229
USA

Charles City Police Dept. - IA
105 Milwaukee Mall
Charles City
IA
50616-2229
USA
Email:

Quote Summary

SALES REPRESENTATIVE

PRIMARY CONTACT

Jonathan Hoebing
Phone:
Email: [email protected]
Fax:

Hugh Anderson
Phone: 641-257-6303
Email: [email protected]
Fax:

Discount Summary

Program Length

120 Months

Average Savings Per Year

TOTAL COST
ESTIMATED TOTAL W/ TAX

$455,079.54
$455,079.54

TOTAL SAVINGS

Page 1

$21,570.61
$215,706.05

Q-971596-46322JH

Payment Summary
Date

Subtotal

Tax

Total

Jan 2027
Jan 2028
Jan 2029
Jan 2030
Jan 2031
Jan 2032
Jan 2033
Jan 2034
Jan 2035
Jan 2036

$45,507.99
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$45,507.99
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95
$45,507.95

Total

$455,079.54

$0.00

$455,079.54

Page 2

Q-971596-46322JH

Quote Unbundled Price:
Quote List Price:
Quote Subtotal:

$670,785.00
$584,623.80
$455,079.54

Pricing
All deliverables are detailed in Delivery Schedules section lower in proposal
Item

Description

Qty

Term

Unbundled

List Price

Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year

16
7

120
120

$153.87
$201.93

$110.46
$198.58

Geotab - Telematics T-Harness
Geotab - Telematics Dongle - USA VZW
Axon Body 4 Multi-Bay Dock Bundle
Axon Body 4 Connected Hardware Bundle

7
7
2
16

1
1

$40.00
$110.00
$1,638.90
$1,049.00

Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Geotab Telematics Service - 5 Year
Axon Auto-Transcribe - Unlimited Service
Pro License Bundle

16
16
7
16
1

120
120
120
120
120

PSO Virtual Training

1

1

Net Price

Subtotal

Tax

Total

$196,177.14
$153,115.20

$0.00
$0.00

$196,177.14
$153,115.20

$0.00
$0.00
$0.00
$0.00

$0.00
$0.00
$0.00
$0.00

$0.00
$0.00
$0.00
$0.00

$0.00
$0.00
$0.00
$0.00

$36.35
$12.12
$29.00
$30.29
$54.52

$0.00
$12.12
$29.00
$30.29
$0.00

$0.00
$23,270.40
$24,360.00
$58,156.80
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00

$0.00
$23,270.40
$24,360.00
$58,156.80
$0.00

$2,500.00

$0.00

$0.00
$455,079.54

$0.00
$0.00

$0.00
$455,079.54

Program
BWCUwTAP10Yr
Fleet3B+TAP10Yr

$102.18
$182.28

A la Carte Hardware
101753
101604
H00002
HWCNAB4

A la Carte Software
102011
73478
101601
85760
ProLicense

A la Carte Services
102531
Total

Delivery Schedule
Hardware
Bundle

Item

Description

QTY

Shipping Location

Estimated Delivery Date

Axon Body 4 Connected Hardware Bundle
Axon Body 4 Connected Hardware Bundle
Axon Body 4 Connected Hardware Bundle
Axon Body 4 Connected Hardware Bundle
Axon Body 4 Multi-Bay Dock Bundle
Axon Body 4 Multi-Bay Dock Bundle
Axon Body 4 Multi-Bay Dock Bundle
Fleet 3 Basic + TAP 10 Year
Fleet 3 Basic + TAP 10 Year
Fleet 3 Basic + TAP 10 Year
Fleet 3 Basic + TAP 10 Year
A la Carte
A la Carte
Body Worn Camera Unlimited with TAP 10Yr Bundle
Body Worn Camera Unlimited with TAP 10Yr Bundle

100147
100466
100775
74028
100206
70033
71019
101924
103346
70112
72036
101604
101753
73309
73689

Axon Body 4 - Camera - First Responder Black Rapidlock US
Axon Body 4 - Cable - USB-C to USB-C
Axon Body 4 - Magnetic Disconnect Cable
Axon Body - Mount - Wing Clip Rapidlock
Axon Body 4 - Dock - Eight-Bay
Axon Body - Dock Wall Mount - Bracket Assembly
Axon Body - Dock Powercord - North America
Axon Fleet - Taoglas Ant - 7-in-1 4Cell 2WIFI 1GNSS Int
Axon Fleet - Ericsson R980-5GD-A+5Yr Netcloud
Axon Signal Vehicle
Axon Fleet 3 - Standard 2 Camera Kit
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon Body - TAP Refresh 1 - Camera
Axon Body - TAP Refresh 1 - Dock Multi-Bay

16
18
18
18
2
2
2
7
7
7
7
7
7
16
2

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

12/01/2026
12/01/2026
12/01/2026
12/01/2026
12/01/2026
12/01/2026
12/01/2026
12/01/2026
12/01/2026
12/01/2026
12/01/2026
12/01/2026
12/01/2026
06/01/2029
06/01/2029

Page 3

Q-971596-46322JH

Hardware
Bundle

Item

Description

QTY

Shipping Location

Estimated Delivery Date

Body Worn Camera Unlimited with TAP 10Yr Bundle
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Body Worn Camera Unlimited with TAP 10Yr Bundle
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Body Worn Camera Unlimited with TAP 10Yr Bundle
Body Worn Camera Unlimited with TAP 10Yr Bundle

73310
73688
72040
73345
73347
100092
73346
73348

Axon Body - TAP Refresh 2 - Camera
Axon Body - TAP Refresh 2 - Dock Multi-Bay
Axon Fleet - TAP Refresh 1 - 2 Camera Kit
Axon Body - TAP Refresh 3 - Camera
Axon Body - TAP Refresh 3 - Dock Multi-Bay
Axon Fleet - TAP Refresh 2 - 2 Camera Kit
Axon Body - TAP Refresh 4 - Camera
Axon Body - TAP Refresh 4 - Dock Multi-Bay

16
2
7
16
2
7
16
2

1
1
1
1
1
1
1
1

12/01/2031
12/01/2031
12/01/2031
06/01/2034
06/01/2034
12/01/2036
12/31/2036
12/31/2036

Bundle

Item

Description

QTY

Estimated Start Date

Estimated End Date

Body Worn Camera Unlimited with TAP 10Yr Bundle
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Fleet 3 Basic + TAP 10 Year
Pro License Bundle
Pro License Bundle
A la Carte
A la Carte
A la Carte
A la Carte

73686
73746
80400
80410
73683
73746
101601
102011
73478
85760

Axon Evidence - Storage - Axon Device Unlimited
Axon Evidence - License - Pro
Axon Evidence - Fleet Vehicle License
Axon Evidence - Storage - Fleet 1 Camera Unlimited
Axon Evidence - Storage - 10GB A La Carte
Axon Evidence - License - Pro
Geotab Telematics Service - 5 Year
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service

16
16
7
14
3
1
7
16
16
16

01/01/2027
01/01/2027
01/01/2027
01/01/2027
01/01/2027
01/01/2027
01/01/2027
01/01/2027
01/01/2027
01/01/2027

12/31/2036
12/31/2036
12/31/2036
12/31/2036
12/31/2036
12/31/2036
12/31/2036
12/31/2036
12/31/2036
12/31/2036

Bundle

Item

Description

Fleet 3 Basic + TAP 10 Year
Fleet 3 Basic + TAP 10 Year
Fleet 3 Basic + TAP 10 Year
A la Carte

100738
73391
73392
102531

Axon Fleet 3 - SIM Insertion - VZW 4FF
Axon Fleet 3 - Deployment Per Vehicle - Not Oversized
Axon Fleet 3 - Installation - Upgrade (Per Vehicle)
PSO Virtual Training

Bundle

Item

Description

QTY

Estimated Start Date

Estimated End Date

Body Worn Camera Unlimited with TAP 10Yr Bundle
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Fleet 3 Basic + TAP 10 Year

80464
80465
80379
80495

Axon Body - TAP Warranty - Camera
Axon Body - TAP Warranty - Multi-Bay Dock
Axon Signal - Ext Warranty - Signal Vehicle
Axon Fleet 3 - Ext Warranty - 2 Camera Kit

16
2
7
7

12/01/2027
12/01/2027
12/01/2027
12/01/2027

12/31/2036
12/31/2036
12/31/2036
12/31/2036

Software

Services
QTY
7
7
7
1

Warranties

Page 4

Q-971596-46322JH

Shipping Locations
Location Number

Street

City

1

105 Milwaukee Mall

Charles City

State

Zip

Country

IA

50616-2229

USA

Payment Details
Jan 2027
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 1
Annual Payment 1
Annual Payment 1
Annual Payment 1
Annual Payment 1
Annual Payment 1
Annual Payment 1
Annual Payment 1
Annual Payment 1
Annual Payment 1
Annual Payment 1
Annual Payment 1

101601
101604
101753
102011
102531
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
H00002
HWCNAB4
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
PSO Virtual Training
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Axon Body 4 Multi-Bay Dock Bundle
Axon Body 4 Connected Hardware Bundle
Pro License Bundle

7
7
7
16
1
16
16
16
7
2
16
1

$2,436.00
$0.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.75
$15,311.52
$0.00
$0.00
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.75
$15,311.52
$0.00
$0.00
$0.00

$45,507.99

$0.00

$45,507.99

Total

Jan 2028
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 2
Annual Payment 2
Annual Payment 2
Annual Payment 2
Annual Payment 2
Annual Payment 2
Annual Payment 2
Annual Payment 2
Annual Payment 2

101601
101604
101753
102011
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Pro License Bundle

7
7
7
16
16
16
16
7
1

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.72
$15,311.51
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.72
$15,311.51
$0.00

$45,507.95

$0.00

$45,507.95

Total

Jan 2029
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 3
Annual Payment 3
Annual Payment 3
Annual Payment 3
Annual Payment 3
Annual Payment 3
Annual Payment 3
Annual Payment 3
Annual Payment 3

101601
101604
101753
102011
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Pro License Bundle

7
7
7
16
16
16
16
7
1

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.71
$15,311.52
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.71
$15,311.52
$0.00

$45,507.95

$0.00

$45,507.95

Total

Page 5

Q-971596-46322JH

Jan 2030
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 4
Annual Payment 4
Annual Payment 4
Annual Payment 4
Annual Payment 4
Annual Payment 4
Annual Payment 4
Annual Payment 4
Annual Payment 4

101601
101604
101753
102011
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Pro License Bundle

7
7
7
16
16
16
16
7
1

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.72
$15,311.51
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.72
$15,311.51
$0.00

$45,507.95

$0.00

$45,507.95

Total

Jan 2031
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 5
Annual Payment 5
Annual Payment 5
Annual Payment 5
Annual Payment 5
Annual Payment 5
Annual Payment 5
Annual Payment 5
Annual Payment 5

101601
101604
101753
102011
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Pro License Bundle

7
7
7
16
16
16
16
7
1

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.68
$15,311.55
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.68
$15,311.55
$0.00

$45,507.95

$0.00

$45,507.95

Total

Jan 2032
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 6
Annual Payment 6
Annual Payment 6
Annual Payment 6
Annual Payment 6
Annual Payment 6
Annual Payment 6
Annual Payment 6
Annual Payment 6

101601
101604
101753
102011
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Pro License Bundle

7
7
7
16
16
16
16
7
1

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.70
$15,311.53
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.70
$15,311.53
$0.00

$45,507.95

$0.00

$45,507.95

Total

Jan 2033
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 7
Annual Payment 7
Annual Payment 7
Annual Payment 7
Annual Payment 7
Annual Payment 7
Annual Payment 7
Annual Payment 7
Annual Payment 7

101601
101604
101753
102011
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Pro License Bundle

7
7
7
16
16
16
16
7
1

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.72
$15,311.51
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.72
$15,311.51
$0.00

$45,507.95

$0.00

$45,507.95

Total

Page 6

Q-971596-46322JH

Jan 2034
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 8
Annual Payment 8
Annual Payment 8
Annual Payment 8
Annual Payment 8
Annual Payment 8
Annual Payment 8
Annual Payment 8
Annual Payment 8

101601
101604
101753
102011
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Pro License Bundle

7
7
7
16
16
16
16
7
1

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.71
$15,311.52
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.71
$15,311.52
$0.00

$45,507.95

$0.00

$45,507.95

Total

Jan 2035
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 9
Annual Payment 9
Annual Payment 9
Annual Payment 9
Annual Payment 9
Annual Payment 9
Annual Payment 9
Annual Payment 9
Annual Payment 9

101601
101604
101753
102011
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Pro License Bundle

7
7
7
16
16
16
16
7
1

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.72
$15,311.51
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.72
$15,311.51
$0.00

$45,507.95

$0.00

$45,507.95

Total

Jan 2036
Invoice Plan

Item

Description

Qty

Subtotal

Tax

Total

Annual Payment 10
Annual Payment 10
Annual Payment 10
Annual Payment 10
Annual Payment 10
Annual Payment 10
Annual Payment 10
Annual Payment 10
Annual Payment 10

101601
101604
101753
102011
73478
85760
BWCUwTAP10Yr
Fleet3B+TAP10Yr
ProLicense

Geotab Telematics Service - 5 Year
Geotab - Telematics Dongle - USA VZW
Geotab - Telematics T-Harness
Axon AI Assistant
Axon Evidence - Redaction Assistant User License
Axon Auto-Transcribe - Unlimited Service
Body Worn Camera Unlimited with TAP 10Yr Bundle
Fleet 3 Basic + TAP 10 Year
Pro License Bundle

7
7
7
16
16
16
16
7
1

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.71
$15,311.52
$0.00

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$2,436.00
$0.00
$0.00
$0.00
$2,327.04
$5,815.68
$19,617.71
$15,311.52
$0.00

$45,507.95

$0.00

$45,507.95

Total

Page 7

Q-971596-46322JH

Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit
prior to invoicing.

Standard Terms and Conditions
Axon Enterprise Inc. Sales Terms and Conditions
Axon Master Services and Purchasing Agreement:
This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement
(posted at https://www.axon.com/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview
Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to
the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix
as described below.
ACEIP:
The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to
develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by
reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program.
Acceptance of Terms:
Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you
are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency
for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote.

Page 8

Q-971596-46322JH

Exceptions to Standard Terms and Conditions
Rewrite Estimates
Estimated Amounts and Contract Terminations. Any amounts stated as due under existing or terminated contracts — including contract transfer balances carried forward to
new or pending contracts — are estimates based on payments received as of the calculation date. These estimates may be adjusted if new contracts are not executed on the
anticipated dates or if expected payments are not made.

Refresh Shipment Timing
Technology Assurance Plan (TAP) Refresh Prior to Renewal. For Customers with expiring agreements that include TAP refresh rights, Axon may, in its discretion, ship
refresh hardware under the existing contract while renewal or replacement agreements are in progress. Any such shipments will be deemed made under the terms of the
existing contract until the new contract is fully executed, after which any applicable updates, fees, or adjustments will apply.

Shipment Timing
Shipment Variance. Estimated shipment dates are provided for planning purposes only and are not guarantees. Axon may ship hardware before or after the estimated
shipment date, and failure to meet an estimated shipment date will not, by itself, constitute a breach, provided Axon uses commercially reasonable efforts to meet estimated
shipment dates.

\s1\

\d1\

Signature

Date Signed

10/27/2026
Page 9

Q-971596-46322JH

Page 10

Q-971596-46322JH

Master Services and Purchasing Agreement
This Master Services and Purchasing Agreement ("Agreement") is between Axon Enterprise, Inc. ("Axon"), and the
Customer listed below or, if no Customer is listed below, the Customer on the Quote (as defined below) ("Customer").
This Agreement is effective as of the later of the (a) last signature date on this Agreement or (b) date of acceptance of
the Quote ("Effective Date"). Axon and Customer are each a "Party" and collectively "Parties". This Agreement
governs Customer’s purchase and use of the Axon Devices and Services detailed in the Quote. It is the intent of the
Parties that this Agreement will govern all subsequent purchases by Customer for the same Axon Devices and
Services in the Quote, and all such subsequent quotes accepted by Customer shall be also incorporated into this
Agreement by reference as a Quote. The Parties agree as follows :
1. Definitions.
1.1. "Axon Cloud Services" means the cloud-based, hosted, subscription services provided and operated by
Axon and made accessible to Customer over the internet or other network, including associated storage,
processing, analytics, digital evidence management, data retention, artificial intelligence features,
integrations, and related functionality. Cloud Services include Updates and enhancements provided during
the Subscription Term and is accessed, not installed or transferred. This does not include third-party SaaS
products.
1.2. "Axon Device" means all hardware provided by Axon under this Agreement. Axon-manufactured Devices
are a subset of Axon Devices.
1.3. “MSRP” means manufacturer’s suggested retail price, or the standalone price of the individual Axon Device
at the time of sale. For multiple Axon Devices that may be combined as a single offering on a Quote, MSRP
is the standalone price of all individual components.
1.4. "Quote" means an offer to sell and is only valid for devices and services on the offer at the specified prices.
Any inconsistent or supplemental terms within Customer’s purchase order in response to a Quote will be
void. Orders are subject to prior credit approval. Changes in the deployment estimated ship date may
change charges in the Quote. Shipping dates are estimates only. Axon is not responsible for typographical
errors in any Quote by Axon, and Axon reserves the right to cancel any orders resulting from such errors.
1.5. "Services" means all services provided by Axon under this Agreement, including Software, Axon Cloud
Services, and professional services.

2.

Term. This Agreement begins on the Effective Date and continues until all subscriptions hereunder have expired
or have been terminated ("Term"). All subscriptions begin on the date stated in the Quote and end upon
completion of program or the subscription stated in the Quote ("Subscription Term").

3.

Payment. Axon invoices for Axon Devices upon shipment, or on the date specified within the invoicing plan in the
Quote. Payment is due net 30 days from the invoice date. Axon invoices for Axon Cloud Services on an upfront
annual basis prior to the beginning of the Subscription Term and upon the anniversary of the Subscription Term.
Payment obligations are non-cancelable. Unless otherwise prohibited by law, Customer will pay interest on all
past-due sums at the lower of one-and-a-half percent (1.5%) per month or the highest rate allowed by law.
Customer will pay invoices without setoff, deduction, or withholding. If Axon sends a past due account to
collections, Customer is responsible for collection and attorneys’ fees. Axon may charge additional fees if
Customer exceeds the permitted use purchased. Axon will notify Customer of additional charges as soon as
reasonably practicable.

4.

Taxes. Customer is responsible for sales and other taxes associated with the order unless Customer provides
Axon a valid tax exemption certificate.

5.

Returns. All sales are final. Axon does not allow refunds or exchanges, except warranty returns or as provided by
state or federal law.

6.

Online Support Platforms. Use of Axon's online support platforms (e.g., Axon Academy and MyAxon) are
governed by the Axon Online Support Platforms Terms of Use Appendix available at www.axon.com/sales-termsand-conditions.

Version: 1.0
Release Date: July 2026

Page 1

Master Services and Purchasing Agreement
7.

Third-Party Hardware, Software and Services. Use of hardware, software, or services of any third-party
products are governed by the terms, if any, entered into between Customer and the respective third-party provider
or the applicable terms and conditions located at www.axon.com/sales-terms-and-conditions.

8.

Statement of Work; Scope Changes. Certain Axon Devices and Services may require a Statement of Work that
details Axon’s Service deliverables ("SOW"). Axon is only responsible for the performance of Services described
in the SOW, Quote, or under this Agreement. All other services are out of scope unless mutually agreed to in a
signed change order. Changes may require an equitable adjustment in fees or schedule. Any applicable SOW is
incorporated into this Agreement by reference.

9.

Design Changes. Axon may make design or feature changes to any Axon Device or Service without notifying
Customer or making the same change to Axon Devices and Services previously purchased by Customer.

10. Combined Offerings. Some offerings in a Quote combine existing and pre-released Axon Devices or Services.
Some offerings may not be available at the time of Customer’s purchase. Axon will not provide a refund, credit, or
additional discount beyond what is in the Quote due to delay of availability or Customer’s choice not to utilize any
portion of a combined offering.
11. Insurance. Axon will maintain General Liability, Workers’ Compensation, and Automobile Liability insurance.
Upon request, Axon will supply certificates of insurance.
12. Security. Axon will implement and maintain commercially reasonable and appropriate security measures to
secure Customer data against accidental or unlawful loss, access or disclosure.
13. IP Rights. Axon and to the extent applicable, Axon’s licensors, own and reserve all rights, titles, and interest in
and to the Axon’s intellectual property, including but not limited to, Axon-manufactured Devices, Services,
documentation, designs, improvements, analytics, derivative works, improvements, and suggestions to Axon,
including all related intellectual property rights (including ownership of all trade secrets and copyrights pertaining
thereto), regardless of the form or media in which the original or copies may exist. Customer will not cause any
Axon proprietary rights to be violated.
14. IP Indemnification. Axon will indemnify Customer against all claims, losses, and reasonable expenses from any
third-party claim alleging that the use of Axon-manufactured Devices and/or Axon Services (“Axon Products”)
infringes or misappropriates the third-party’s intellectual property rights. Customer must promptly provide Axon
with written notice of such claim, tender to Axon the defense or settlement of such claim at Axon’s expense and
cooperate fully with Axon in the defense or settlement of such claim. Axon’s IP indemnification obligations do not
apply to claims based on (a) modification of Axon Products by Customer or a third-party not approved by Axon;
(b) use of Axon Products in combination with hardware or services not approved by Axon; (c) use of Axon
Products other than as permitted in this Agreement; or (d) use of Axon Products that is not the most current
software release provided by Axon.
15. LIMITATIONS. AXON’S CUMULATIVE LIABILITY TO ANY PARTY FOR ANY LOSS OR DAMAGE
RESULTING FROM ANY CLAIM, DEMAND, OR ACTION ARISING OUT OF OR RELATING TO THIS
AGREEMENT WILL NOT EXCEED TWO TIMES (2X) THE PURCHASE PRICE PAID TO AXON FOR THE
AXON DEVICE, OR IF FOR SERVICES, TWO TIMES (2X) THE AMOUNT PAID FOR SUCH SERVICES OVER
THE TWELVE (12) MONTHS PRECEDING THE CLAIM. NEITHER PARTY WILL BE LIABLE FOR SPECIAL,
INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED, WHETHER
FOR BREACH OF WARRANTY OR CONTRACT, NEGLIGENCE, STRICT LIABILITY, TORT OR ANY OTHER
LEGAL THEORY.
16. Termination.
16.1. For Breach. A Party may terminate this Agreement for cause if it provides thirty (30) days written notice of
the breach to the other Party, and the breach remains uncured thirty (30) days after receipt of the written
notice. If Customer terminates this Agreement due to Axon’s uncured breach, Axon will refund prepaid
Version: 1.0
Release Date: July 2026

Page 2

Master Services and Purchasing Agreement
amounts on a prorated basis based on the effective date of termination.

16.2. By Customer. If sufficient funds are not appropriated or otherwise legally available to pay the fees,
Customer may terminate this Agreement. Customer will deliver notice of termination under this section as
soon as reasonably practicable.
16.3. Effect of Termination. Upon termination of this Agreement, Customer rights immediately terminate.
Customer remains responsible for all fees incurred before the effective date of termination. If Customer
purchases Axon Devices for less than the MSRP and this Agreement terminates before the end of the
Subscription Term, Axon will invoice Customer the difference between the MSRP for Axon Devices
procured, including any Spare Axon Devices, and amounts paid towards those Axon Devices. Only if
terminating for non-appropriation, Customer may avoid the MSRP fee by returning Axon Devices to Axon
within thirty (30) days of termination. For TASER purchases, this includes returning the TASER Device,
rechargeable battery, holster, dock, core, training suits, and unused cartridges to Axon.
17. Confidentiality. "Confidential Information" means nonpublic information designated as confidential or, given
the nature of the information or circumstances surrounding disclosure, that should reasonably be understood to
be confidential. Each Party will take reasonable measures to avoid disclosure, dissemination, or unauthorized use
of the other Party’s Confidential Information. Unless required by law, neither Party will disclose the other Party’s
Confidential Information during the Term and for five (5) years thereafter. To the extent permissible by law, Axon
pricing is Confidential Information and competition sensitive. If Customer receives a public records request to
disclose Axon Confidential Information, to the extent allowed by law, Customer will provide notice to Axon before
disclosure. Axon may publicly announce information related to this Agreement.
18. Compliance with Laws.
18.1. Laws. Each Party will comply and maintain compliance with all applicable federal, provincial, state, and local
laws, including without limitation, import and export control laws and regulations as well as firearm
regulations and the Gun Control Act of 1968, if applicable.
18.2. Controlled Products. Customer acknowledges that Axon Devices, Software, and Services are subject to
U.S. and international export control laws, including the U.S. Export Administration Regulations (EAR) and
International Traffic in Arms Regulations (ITAR). Customer represents and warrants that neither it nor any
End User is a "Restricted Person," meaning any individual or entity that (1) is subject to U.S. sanctions or
trade restrictions, (2) appears on any U.S. government restricted party list, (3) engages in prohibited
weapons proliferation activities, or (4) is owned or controlled by, or acting on behalf of, such persons or
entities. Customer must promptly notify Axon of any change in status, and Axon may terminate this
Agreement if Customer or any End User becomes a Restricted Person or violates export laws.
19. General.
19.1. Force Majeure. Neither Party will be liable for any delay or failure to perform due to a cause beyond a
Party’s reasonable control.
19.2. Independent Contractors. The Parties are independent contractors. Neither Party has the authority to bind
the other. This Agreement does not create a partnership, franchise, joint venture, fiduciary, or employment
relationship between the Parties.
19.3. Third-Party Beneficiaries. There are no third-party beneficiaries under this Agreement.
19.4. Non-Discrimination. Neither Party nor its employees will discriminate against any person based on race;
religion; creed; color; sex; gender identity and expression; pregnancy; childbirth; breastfeeding; medical
conditions related to pregnancy, childbirth, or breastfeeding; sexual orientation; marital status; age; national
origin; ancestry; genetic information; disability; veteran status; or any class protected by local, state, or
federal law.
Version: 1.0
Release Date: July 2026

Page 3

Master Services and Purchasing Agreement
19.5. Assignment. Neither Party may assign this Agreement without the other Party’s prior written consent. Axon
may assign this Agreement, its rights, or obligations without consent: (a) to an affiliate or subsidiary; or (b)
for purposes of financing, merger, acquisition, corporate reorganization, or sale of all or substantially all its
assets. This Agreement is binding upon the Parties respective successors and assigns.
19.6. Waiver. No waiver or delay by either Party in exercising any right under this Agreement constitutes a waiver
of that right.
19.7. Severability. If a court of competent jurisdiction holds any portion of this Agreement invalid or
unenforceable, the remaining portions of this Agreement will remain in effect.
19.8. Survival. The following sections will survive termination: Payment, Axon Device Warnings, IP Rights, IP
Indemnification, Limitations, Confidentiality, and any other sections detailed in the survival sections of the
attachments.
19.9. Governing Law. The laws of the country, state, province, or municipality where Customer is physically
located, without reference to conflict of law rules, govern this Agreement and any dispute arising from it. The
United Nations Convention for the International Sale of Goods does not apply to this Agreement. The Parties
expressly agree that either Party may appear for and attend all matters, remotely via teleconference or
videoconference at the party's discretion, to the extent allowable by court.
19.10. Notices. All notices must be in English. Notices posted on Customer’s Axon Evidence site are effective upon
posting. Notices by email are effective on the sent date of the email. Notices by personal delivery are
effective immediately. Notices to Customer shall be provided to the address on file with Axon. Notices to
Axon shall be provided to Axon Enterprise, Inc. Attn: Legal, 17800 North 85th Street, Scottsdale, Arizona
85255 with a copy to [email protected].
19.11. Entire Agreement. This Agreement, the Appendices, including any applicable Appendices not attached
herein for the products and services purchased, which are incorporated by reference and located in the
Master Purchasing and Services Agreement located at https://www.axon.com/sales-terms-and-conditions,
Quote(s) and any SOW(s), represent the entire agreement between the Parties. This Agreement supersedes
all prior agreements or understandings, whether written or verbal, regarding the subject matter of this
Agreement. This Agreement may only be modified or amended in a writing signed by the Parties.
Each Party, by and through its respective representative authorized to execute this Agreement, has duly executed and
delivered this Agreement as of the date of signature.
AXON:

CUSTOMER:

Axon Enterprise, Inc.

Signature:

Signature:

Name:

Name:

Title:

Title:

Date:

Date:

Version: 1.0
Release Date: July 2026

Page 4

Master Services and Purchasing Agreement
Software and Cloud Services Terms of Use Appendix
I. General
1. Definitions
1.1. "Customer Content" means all data, files, and content uploaded into, ingested by, created in, or generated
through Customer's use of Axon Cloud Services within Customer's tenant. This includes media/multimedia,
recordings, reports, alerts, messages, videos, chats, and materials provided by the Customer, as well as
Personal Data of users and data from applications connected to the solution. Customer Content excludes
Non-Content Data, Dedrone Data, Third Party Content, and Third Party Services.
1.2. “Data Controller” means the natural or legal person, public authority, or any other body which alone or
jointly with others determines the purposes and means of the processing of Personal Data.
1.3. “Data Processor” means a natural or legal person, public authority or any other body which processes
Personal Data on behalf of the Data Controller.
1.4. “End User” means Customer or Customer’s employees, consultants, agents or contractors who are granted
access to the Axon Cloud Services or Software in support of Customer’s internal business or operations.
1.5. "Evidence" is media or multimedia uploaded into Axon Evidence as 'evidence' by Customer. Evidence is a
subset of Customer Content.
1.6. “Firmware” means the embedded software code installed on and operating within Axon Device, that enables
the Axon Device’s core functionality, control, communication, or security. Firmware is a subset of Software.
1.7. "Non-Content Data" is data, configuration, and usage information about Customer’s Axon Cloud Services
tenant, Axon Devices, client software, and users, that is transmitted or generated when using Axon Devices.
Non-Content Data includes data about users captured during account management and customer support
activities. Non-Content Data does not include Customer Content.
1.8. “Personal Data" means any information relating to an identified or identifiable natural person. An identifiable
natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier
such as a name, an identification number, location data, an online identifier or to one or more factors specific
to the physical, physiological, genetic, mental, economic, cultural, or social identity of that natural person.
1.9. "Processing" means any operation or set of operations which is performed on data or on sets of data,
whether or not by automated means, such as collection, recording, organization, structuring, storage,
adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise
making available, alignment or combination, restriction, erasure, or destruction.
1.10. "Sensitive Personal Data" means Personal Data that reveals an individual’s health, racial or ethnic origin,
sexual orientation, disability, religious or philosophical beliefs, or trade union membership.
1.11. “Software” means application software, programs, mobile or desktop applications, or other executable code
provided to Customer for installation, download or use as defined in this Agreement but excludes Axon
Cloud Services.

2. Customer Owns Customer Content. Customer retains all rights, title and interest, including all intellectual

property rights, in and to Customer Content. Customer is solely responsible for uploading, sharing, managing and
deleting Customer Content. Customer Content is not considered Axon's business records, and except as set out
below, Axon obtains no interest in Customer Content.
2.1. Axon Access and Use of Customer Content.
Customer grants Axon a limited, non-exclusive right to access, process, store, transmit, and otherwise use
Customer Content solely for the following purposes: providing, operating, maintaining, supporting, and
securing the Axon Devices and Services; performing troubleshooting, diagnostics, system monitoring,
maintenance, and incident response; and enforcing this Agreement and Axon policies governing use of the
Axon Devices and Services. Unless otherwise agreed to by the Parties in writing, Axon shall not access or
use Customer Content any reason except as expressly authorized in this Agreement.

3.

Security. Axon implements appropriate technical and organizational security measures designed to prevent
unauthorized access, use or disclosure of Customer Data and will maintain a comprehensive information security
program to protect Axon Cloud Services and Customer Content. For Axon's digital evidence or records
management systems, Axon agrees to comply with the Federal Bureau of Investigation Criminal Justice
Information Services Security Addendum.

Version: 1.0
Release Date: July 2026

Page 5

Master Services and Purchasing Agreement
4.

Restrictions. Customer shall not, and shall not permit any third party to: (i) modify, translate, adapt, tamper with,
repair, or create derivative works of the Axon intellectual property; (ii) reverse engineer, decompile, disassemble,
or attempt to derive the source code; (iii) copy any Axon intellectual property, except as expressly permitted in
writing; (iv) resell, rent, lease, loan, sublicense, distribute, or otherwise commercially exploit Axon intellectual
property; (v) access or use Axon intellectual property to build a competing product or service or to copy features,
functions, or graphics; (vi) remove, alter, or obscure any proprietary notices; (vii) access or use Axon Software or
Cloud Services with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or
quotas; (viii) use trade secret information contained in Axon Software, except as expressly permitted in this
Agreement; (ix) use Axon Devices, Software or Cloud Services to store or transmit infringing, libelous, or other
unlawful or tortious material; material in violation of third-party privacy rights; or malicious code; or (x) use Axon
Devices, Software or Cloud Services in order to monitor the availability, security, performance, or functionality of
the of such products or for any other benchmarking or competitive purposes other than as authorized in this
Agreement; scrape, build databases, or otherwise create permanent copies of such content, or keep cached
copies longer than permitted by the cache header; or misrepresent the source or ownership of Axon Services.

5.

Suspension. Axon may immediately suspend Customer’s or any End User’s access to any portion of the Axon
Devices or Services upon notice if Axon reasonably determines that: (i) Customer’s or an End User’s use poses a
security risk to Axon systems, other customers, or third parties; (ii) Customer fails to pay applicable fees; (iii)
Customer or its End User’s use violates applicable law or regulation; (iv) such use may subject Axon or its
affiliates to liability; or (v) such use is fraudulent or abusive. Customer remains responsible for all fees incurred
through the period of suspension. Suspension does not terminate this Agreement unless Axon elects to terminate
in accordance with the Termination provisions.

6.

Warranty and Disclaimer. AXON WARRANTS THAT ALL AXON SOFTWARE AND AXON CLOUD
SERVICES, WHEN USED IN ACCORDANCE WITH APPLICABLE AXON DOCUMENTATION, WILL
OPERATE IN ALL MATERIAL RESPECTS WITH THE DOCUMENTATION. EXCEPT AS EXPRESSLY
STATED HEREIN, SOFTWARE, SERVICES OR CLOUD SERVICES ARE PROVIDED "AS IS," WITHOUT ANY
WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, THE
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT OR UNINTERRUPTED OR ERROR-FREE USE. CUSTOMER AGREES AXON HAS NO
RESPONSIBILITY OR LIABILITY FOR ANY THIRD-PARTY SERVICES OR PRODUCTS USED BY THE
CUSTOMER IN CONJUNCTION WITH AXON’S PRODUCTS OR SERVICES.

7.

Updates. Axon may make available updates and error corrections ("Updates") to any Axon Software, Firmware,
or Cloud Service product. Axon will provide Updates electronically via the Internet or media as determined by
Axon. An "Upgrade" includes new versions of Axon products that (i) enhance features and functionality, as solely
determined by Axon; and/or (ii) provide additional features or perform additional functions. Upgrades exclude new
products that Axon introduces and markets as distinct products or applications. During the Customer’s Term,
Axon will provide Update and Upgrade releases to the Customer on an if-and-when available basis.

8.

Customer Responsibilities. Customer is responsible for (a) ensuring Customer owns Customer Content or has
the necessary rights to use Customer Content (b) ensuring no Customer Content or Customer End User’s use of
Customer Content, or Axon Software, Firmware, or Cloud Service products violates this Agreement or applicable
laws, including acquiring and maintaining required consents; (c) maintaining necessary computer equipment and
Internet connections for use of the Axon Software, Firmware, or Cloud Service products and any Updates thereto
and (d) verifying the accuracy of any auto generated or AI-generated reports. If Customer becomes aware of any
violation of this Agreement by an End User, Customer will immediately terminate that End User’s access to the
Axon Software, Firmware, or Cloud Service products.
8.1. Passwords. Customer will also maintain the security of End User usernames and passwords and access by
End Users to Customer Content. Customer is responsible for ensuring the configuration and utilization of the
Axon Software, or Cloud Service products meet applicable Customer regulations and standards. Customer
may not sell, transfer, or sublicense access to any other entity or person. If Customer provides access to
unauthorized third-parties, Axon may assess additional fees along with suspending Customer’s access.

Version: 1.0
Release Date: July 2026

Page 6

Master Services and Purchasing Agreement
Customer shall contact Axon immediately if an unauthorized party may be using Customer’s account or
Customer Content, or if account information is lost or stolen.

9.

YouTube. To the extent Customer uses the Axon Cloud Services to interact with YouTube®, such use may be
governed by the YouTube Terms of Service, available at https://www.youtube.com/static?template=terms.

10. Roles of the Parties. To the extent that Customer is the Data Controller of Personal Data, Axon is its Data
Processor. To the extent that Customer is a Data Processor of Personal Data, Axon is its subprocessor.
Notwithstanding the foregoing, to the extent any usage data (including query logs and metadata) and/or
operations data (including billing and support data) in connection with Customer’s use of the Services (collectively
“Usage and Operations Data”) is considered Personal Data, Axon is an independent Data Controller and shall
Process such data in accordance with the Agreement and applicable data protection laws to develop, improve,
support, and operate its products and services. For the avoidance of doubt, Axon will not disclose any Usage and
Operations Data that includes Confidential Information with a third party except (a) in accordance with the
relevant confidentiality provisions in the Agreement, or (b) to the extent the Usage and Operations Data is, in
accordance with applicable data protection laws, anonymized, de-identified, and/or aggregated such that it can no
longer directly or indirectly identify Customer or any particular individual.
11. After Termination. Axon will not delete Customer Content for ninety (90) days following termination. Axon Cloud
Services will not be functional during these ninety (90) days other than the ability to retrieve Customer Content.
Customer will not incur additional fees if Customer downloads Customer Content from Axon Cloud Services
during this time. Axon has no obligation to maintain or provide Customer Content after these ninety (90) days and
will thereafter, unless legally prohibited, delete all Customer Content. Upon request, Axon will provide written
proof that Axon successfully deleted and fully removed all Customer Content from Axon Cloud Services.
12. Post-Termination Assistance. Axon will provide Customer with the same post-termination data retrieval
assistance that Axon generally makes available to all customers. Requests for Axon to provide additional
assistance in downloading or transferring Customer Content, including requests for Axon’s data egress service,
will result in additional fees and Axon will not warrant or guarantee data integrity or readability in the external
system.
13. U.S. Government Rights.
13.1. If Customer is a U.S. Federal department or using Axon Cloud Services or Software on behalf of a U.S.
Federal department, Axon Cloud Services, Software, or Software Documentation are provided as a
"commercial item," "commercial computer software," "commercial computer software documentation," and
"technical data", as defined in the Federal Acquisition Regulation (“FAR”) and Defense Federal Acquisition
Regulation Supplement (“DFARS”). If Customer is using Axon Cloud Services or Software on behalf of the
U.S. Government and these terms are inconsistent in any respect with federal law, Customer will
immediately discontinue use of Axon Cloud Services.
13.2. Use, duplication or disclosure by the U.S. Government is subject to restrictions as set forth in DFAR

255.227-7013(c)(1)(ii) et. Seq. or 252.211-7015, or FAR 52.227-19(a)-(d), as applicable, or similar clauses in
the NASA FAR Supplement.

14. Export Controls. None of the Software, Software Documentation, or underlying information, may be downloaded or
otherwise exported, directly or indirectly, without the prior written consent, if required, of the office of Export
Administration of the United States, Department of Commerce, nor to any country to which the U.S. has embargoed
goods, to any person on the U.S. Treasury Department’s Specially Designated Nationals or Blocked Persons List, or the
U.S. Department of Commerce’s Denied Persons List.

15. Survival. Upon any termination of this Agreement, the following sections in this Appendix will survive: Customer
Owns Customer Content, Restrictions, Export Controls, Privacy, Storage, Disclaimer, and Customer
Responsibilities.
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II. Axon Cloud Services
1. General. The following apply to all Axon Cloud Services unless otherwise provided in the Product Specific Terms
and Conditions Section:
1.1. Access. Upon Axon granting Customer a subscription to Axon Cloud Services, Customer may access and
use Axon Cloud Services to store and manage Customer Content. Customer may not exceed the total
number of End Users specified in the Quote. Axon Air requires an Axon Evidence subscription for each
drone operator. For Axon Evidence access granted solely for TASER, Customer may access and use Axon
Evidence only to store and manage TASER CEW data ("TASER Data") and Customer may not upload nonTASER Data to Axon Evidence.
1.2. Privacy. Customer’s use of Axon Cloud Services is subject to the Axon Cloud Services Privacy Notice, a
current version of which is available at https://www.axon.com/legal/cloud-services-privacy-policy.
1.3. Storage.
1.3.1. Unlimited Axon Device Storage. For Axon Unlimited Device Storage subscriptions, Customer may
store unlimited data in Customer's Axon Evidence account only if the Axon Device data is shared to
Customer through Axon Evidence from a partner agency using Axon Evidence, or the data originates
from Axon Capture or an Axon Device.
1.3.2. Third-Party Unlimited Storage. For Third-Party Unlimited Storage the following restrictions apply: (i) it
may only be used in conjunction with a valid Axon Evidence user license; (ii) is limited to data of the law
enforcement Customer that purchased the Third-Party Unlimited Storage and the Axon Evidence End
User; (iii) Customer is prohibited from storing data for other customers or law enforcement agencies;
and (iv) Customer may only upload and store data that is directly related to (1) the investigation of, or
the prosecution or defense of a crime, (2) common law enforcement activities, or (3) any Customer
Content created by Axon Devices or Axon Evidence.
1.3.3. A-la-Carte Storage. If Customer purchases a-la-carte storage and Customer exceeds the purchased
storage amounts, Axon may charge Customer additional fees for exceeding purchased storage
amounts.
1.3.4. Retention Policy. Customer must categorize and set a retention period for all Customer Content in
accordance with applicable law and Customer policies within 30 days of upload. The retention policy
can be from thirty (30) days to ninety-nine (99) years. Only 10% of Customer Content may be set at 99
years.
1.3.5. Restrictions. Customer may not save live-streamed video, continuous video feeds, including from
CCTV systems, fixed surveillance cameras, third-party camera systems, or any other camera (including
an Axon Device) or monitoring system, even if such content is ingested, integrated, or accessed
through Axon Evidence (“Streaming Video”) under the Axon Unlimited Storage Subscription. Customer
may save clips of the Streaming Video under the Unlimited Storage Plan.
1.3.6. Archival Storage. Axon may place Customer Content in to archived storage if: (i) Customer Content
has not viewed or accessed for six (6) months, or (ii) Customer Content has not been categorized
within thirty (30) days of upload. Customer Content in archival storage will not have immediate
availability and may take up to twenty-four (24) hours to access.
1.3.7. Location of Storage. Axon may transfer Customer Content to third-party subcontractors for storage. If
Customer is located in the United States, Canada, or Australia, Axon will ensure all Customer Content
stored in Axon Cloud Services remains in the country where Customer is located. Axon will determine
the locations of data centers for storage of Customer in accordance with the Agreement.
1.4. Axon Cloud Services Warranty. AXON DISCLAIMS ANY WARRANTIES OR RESPONSIBILITY FOR
DATA CORRUPTION OR ERRORS BEFORE CUSTOMER UPLOADS DATA TO AXON CLOUD
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SERVICES. SERVICE OFFERINGS WILL BE SUBJECT TO THE AXON CLOUD SERVICES SERVICE
LEVEL AGREEMENT, A CURRENT VERSION OF WHICH IS AVAILABLE AT
HTTPS://WWW.AXON.COM/PRODUCTS/AXON-EVIDENCE/SLA.

2.

Cloud Services- Product Specific Terms and Conditions. Notwithstanding any other provision in the
Agreement, the following terms and conditions apply to the specific Axon Cloud Services purchased:

2.1. Policy Chat.
2.1.1. License and Content Restrictions. Any uploads beyond 5,000 pages may be limited by Axon. It is the
Customer's responsibility to manage uploads to ensure system efficiency and compliance with these
terms.
2.1.2. Data Processing. Customer is responsible for uploading and maintaining current, complete, and
accurate policy documents and removing outdated versions. Axon AI Technology (as defined below)
generates responses solely from Customer-provided documents and may not reflect recent updates.
2.2. Draft One. Axon may impose usage restrictions if a single user generates more than three hundred (300)
reports per month for two or more consecutive months.
2.3. Brief One. Brief One includes automatic summarization of all products that can be transcribed. Axon may
limit evidence and case summaries for cases with over one thousand (1000) pieces of evidence or after
three hundred (300) cases per End User per month for two (2) consecutive months in a row.
2.4. Auto-Tagging. Axon Auto-Tagging consists of the development of a module to allow Axon Evidence to
interact with Customer’s Computer-Aided Dispatch ("CAD") or Records Management Systems ("RMS"). This
allows End Users to auto-populate Axon video meta-data with a case ID, category, and location-based on
data maintained in Customer’s CAD or RMS.
2.5. Auto-Transcribe.
2.5.1. A-La-Carte Minutes. If Customer purchases A-La-Carte Auto-Transcribe minutes, Customer may
utilize Axon Auto-Transcribe, subject to the number of minutes allowed on the Quote. Customers
cannot roll over unused minutes to future Auto-Transcribe terms. Axon may charge Customer additional
fees for exceeding the number of purchased minutes. Axon Auto-Transcribe minutes expire one year
after being provisioned to Customer by Axon.
2.5.2. Axon Unlimited Transcribe. If Customer purchases an Unlimited Transcribe subscription, Customer
may utilize Axon Auto-Transcribe with no limit on the number of minutes. Unlimited Transcribe includes
automatic transcription of all Axon BWC and Axon Capture footage. With regard to Axon Interview
Room, Axon Fleet, Axon Community Link, or third-party transcription, transcription must be requested
on demand. Notwithstanding the foregoing, Axon may limit usage after 5,000 minutes per user per
month for multiple months in a row. Axon will not bill for overages.
2.6. FUSUS.
2.6.1. Axon Positioning Services. Axon cameras may offer a feature to enhance location services where
GPS/GNSS signals may not be available, for instance, within buildings or underground. Customer
administrators can manage their choice to use this service within the administrative features of Axon
Cloud Services. If Customer chooses to use this service, Axon must also enable the usage of the
feature for Customer’s Axon Cloud Services tenant. Customer will not see this option with Axon Cloud
Services unless Axon has enabled Wi-Fi Positioning for Customer’s Axon Cloud Services tenant.
2.6.2. Axon Body LTE Requirements. FUSUS is only available and usable with an LTE enabled body-worn
camera. Axon is not liable if Customer utilizes the LTE device outside of the coverage area or if the LTE
carrier is unavailable. LTE coverage is available in the United States including U.S. territories.
Additional verification will be required for use in select international regions. Axon may utilize a carrier
of Axon’s choice to provide LTE service. Axon may change LTE carriers during the Term without
Customer’s consent.
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2.6.3. Axon Fleet LTE Requirements. Axon FUSUS is only available and usable with a compatible Fleet
system configured with LTE modem and service. Customer is responsible for providing LTE service for
the modem. Coverage and availability of LTE service is subject to Customer’s LTE carrier.
2.6.4. Data Privacy. Axon may collect, use, transfer, disclose and otherwise process Customer Content in the
context of facilitating communication of data with Customer through their use of FUSUS cloud services,
FUSUS app (iOS or Android interface), complying with legal requirements, monitoring the Customer’s
use of FUSUS systems, and undertaking data analytics.
2.7. LTE Networks. Partner networks are made available as-is and the carrier makes no warranties or
representations as to the availability or quality of roaming service provided by carrier partners, and the
carrier will not be liable in any capacity for any errors, outages, or failures of carrier partner networks.
Customer expressly understands and agrees that it has no contractual relationship whatsoever with the
underlying wireless service provider or its affiliates or contractors when LTE service is provided by Axon and
Customer is not a third-party beneficiary of any agreement between Axon and the underlying carrier.
2.8. TASER Data Science Program. Axon will provide Customer with Transformed Data (as defined below).
2.8.1. Definitions.
2.8.1.1. "Provided Data" means de-identified, de-personalized, data derived from Customer's TASER
energy weapon deployment reports, related TASER energy weapon logs, body-worn camera
footage, and incident reports.
2.8.1.2. "Transformed Data" means the Provided Data used for the purpose of quantitative evaluation of
the performance and effectiveness of TASER energy weapons in the field across a variety of
circumstances.
2.8.2. License to Axon. If Customer purchases the TASER Data Science Program, Customer grants Axon,
its affiliates, and assignees an irrevocable, perpetual, fully paid, royalty-free, and worldwide right and
license to use Provided Data solely for the purposes of this Agreement and to create Transformed
Data. Customer shall own all rights and title to Provided Data. Axon shall own all rights and title to
Transformed Data and any derivatives of Transformed Data.
2.8.3. License to Customer. Axon grants to Customer an irrevocable, perpetual, fully paid, royalty-free,
license to use to TASER Data Science report for its own internal purposes. The Data Science report is
provided “as is” and without any warranty of any kind.
2.8.4. Deletion of Provided Data. In the event Customer seeks Axon’s deletion of Provided Data, it may
submit a request to [email protected]. Where reasonably capable of doing so, Axon will implement
the request but at a minimum will not continue to collect Provided Data from Customer.
2.9. Community Link.
2.9.1. Community Link Security. Axon will not treat Community Link Customer Content in accordance with
FBI CJIS Security Policy requirements and does not agree to the CJIS Security Addendum for this
engagement or any other security or privacy related commitments that have been established between
Axon and Customer, such as ISO 27001 certification or SOC 2 Reporting.
2.9.2. License and Intellectual Property. Customer grants Axon, its affiliates, and assignees the
irrevocable, perpetual, fully paid, royalty-free, and worldwide right and license to use Community Link
Customer Content for internal use. Customer acknowledges that Axon may make any lawful use of
Community Link Customer Content and any derivative of Customer Content including, without
limitation, the right to monetize, redistribute, make modification of, and make derivatives of, the
surveys, survey responses and associated data, and Customer will have no intellectual property right
in any good, service, media, or other product that uses Community Link Customer Content. Axon
may not release Community Link Customer Content to any third party under this right that is not
aggregated and de-identified.
2.10. Axon Records.

2.10.1. Term. Axon Records subscription begins on the later of the (1) start date of the Quote, or (2) the
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date Axon provisions Axon Records to Customer, and will end upon the completion of the Axon
Records Subscription in the Quote, or if purchased as part of an OSP 7 or OSP 10 plan, upon
completion of the OSP 7 or OSP 10 Term ("Axon Records Subscription Term").

2.10.2. Limitations.
2.10.2.1.
New or additional Axon products and applications, as well as any Axon Professional
Services needed to configure Axon Records, are not included as part of the Axon Records
Subscription.
End Users of Axon Records may upload files to entities (incidents, reports, cases, etc.) in
Axon Records with no limit to the number of files and amount of storage. Notwithstanding the
foregoing, Axon may limit usage should the Customer exceed an average rate of one hundred
(100) GB per user per year of uploaded files. Axon will not bill Customer for overages.

2.10.2.2.

2.11. Dedrone.

2.11.1. Definitions.
2.11.1.1.
“Dedrone Data” means data that Axon maintains regarding a wide variety of drone
models and manufacturers in the marketplace (“DedroneDNA”, formerly “DroneDNA”), as well
as usability information that Axon collects regarding the performance of the Dedrone Software
and Dedrone Hardware, aggregate or de-identified Collected Data compiled or used by Axon in
accordance with Section 2.11.5, and any other information that Axon makes available to
Customer by means of the Dedrone Software.
2.11.1.2.
“Dedrone Hardware” means the Axon drone detection hardware sensor or mitigation
products set forth on a Quote and does not include any Third-Party Hardware.
2.11.1.3.
“Sensor” means a radio frequency, video, radar or other hardware sensor for drone
detection purchased by Customer from Axon or obtained from any third-party vendor.
2.11.1.4.
“Dedrone Software” means (i) Axon’s proprietary drone-tracking software, known as
DedroneTracker (formerly DroneTracker), whether deployed on-premise or hosted by Axon as
a cloud-based solution, (ii) Axon’s video analytics software (currently known as Analytics
Server), and/or (iii) software and/or firmware deployed or installed on the Dedrone Hardware or
available for download and installation onto Customer’s Third-Party Hardware.
2.11.1.5.
“Third-Party Hardware” means hardware products owned by Customer or purchased by
Customer from third parties that are used by Customer in conjunction with the Software.
2.11.2. License to Customer. Axon grants Customer a royalty-free, nonexclusive, nontransferable,
worldwide right during each Dedrone Subscription Term to use the Dedrone Software, including the
Dedrone Data and Collected Data, subject to the terms of the Agreement and this Section (the
“License”). Customer must purchase a License to the Dedrone Software for each unit of Dedrone
Hardware and/or Third-Party Hardware using Dedrone Software.
2.11.3. Compliance. Customer will ensure that none of the Dedrone Products are directly or indirectly
exported, re-exported, or used to provide services in violation of such export laws and regulations. If
Customer uses a radio jammer, or any other controlled device, in connection with the Dedrone
Software, Customer represents to Axon that it is authorized to do so by the relevant authorities, that it
will do so only in accordance with such authorization, and it will provide supporting documentation
regarding such authorization upon request. Axon shall not be liable if any government export
authorization is delayed, denied, revoked, restricted or not renewed, nor shall any such delay, denial,
revocation, restriction or non-renewal constitute a breach of the Agreement by Axon.
2.11.4. Data Protection. If Customer licenses Dedrone Software, the Dedrone Software may collect and
send to servers owned, operated or controlled by Axon, data or other information regarding
Customer’s use of the Dedrone Software, which may include (i) information generated by each
Sensor deployed by Customer, including the date, time, and duration of the detection of the drone, as
well as the locations of the detected drones, remote controls, and the Sensor itself (collectively,
“Sensor Data”), and (ii) video recording of the detected drones, including flight path ("Video Data")
(Sensor Data and Video Data are collectively referred to as “Collected Data”).
2.11.5. Use of Collected Data. Axon has the right to use Collected Data for any purpose, including: (i)
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improving or analyzing any Dedrone Product; (ii) analyzing any Dedrone Product or the performance
of any Dedrone Product; or (iii) compiling or using aggregate or de-identified Collected Data with
other customers, or government and law enforcement entities, with or without compensation.
Customer acknowledges that Axon may learn from the performance or use of any Dedrone Product,
and Axon shall have the sole right to exploit any modification, enhancement or improvement of any
Dedrone Product resulting from such learning.

2.11.6. Axon Property. Axon owns and retains all rights, title, and interest in and to the Dedrone Data,
Collected Data, the Dedrone Software, and all intellectual property embodied in the Dedrone
Hardware.
2.12. Axon 911 Products (Prepared and Carbyne)

2.12.1. Definitions.
2.12.1.1.
“Solution” means the Axon 911 Software and/or Platform which Axon makes available to
Customer pursuant to this Section, which includes Carbyne and Prepared 911 Products and
Services. The Solution does not include Third Party Content or Third-Party Services.
“Third Party Content” means applications, materials, data and information, such as
2.12.1.2.
location, transcriptions, translations and any output generated by AI powered tools, which are
provided by a third party and are made available to Customer through Customer’s use of the
Solution.
“Third Party Services” means services such as porting phone numbers, voice services
2.12.1.3.
provided by Bandwidth and Twilio, connectivity services and broadband circuits provided by a
third party which are passed through to Customer for use with the Solution.
2.12.2. Solution License. If applicable to the Solution, Customer may use the Solution to connect with
Customer’s other applications, allowing Customer to receive and access Customer Content available
from such applications through the Solution and to make Customer Content available to End Users.
2.12.3. Data Retention. Unless Customer provides Axon with written instruction otherwise, Axon will
retain Customer Content which is submitted to Axon Cloud Services or which is recorded or stored in
the course of Customer’s use of the Solution, for a period of two (2) years during the Subscription
Term (the “Data Retention Period”). Customer Content is automatically deleted thirty (30) days after
(a) the Data Retention Period, or (b) the expiration or termination of the Subscription Term for any
reason. At any time prior to such deletion, Customer may download Customer Content which has
been stored on the Axon Cloud Services. Customer acknowledges it is solely responsible for
compliance with any applicable data retention laws and for any data requests. Axon will have no
further obligation with respect to Customer Content after the Data Retention Period or after the
deletion of Customer Content.
2.12.4. Privacy. Carbyne Privacy Policy, located at https://carbyne.com/privacy-policy, shall govern data
protection and privacy when using Carbyne products or services. Axon may create anonymized and
aggregated statistical data from Customer’s usage of the Solution, which does not include
Customer’s Personal Data. Axon may use such anonymized and aggregated data for Axon’s own
internal purposes, such as to develop and improve the Solution, to develop new services or products
and to identify usage trends.
2.12.5. Third-Party Fees. Fees for Third Party Services reflect pass-through costs from Third Party
Service providers which are based on Customer’s anticipated use. Axon may revise the annual fees
based on Customer’s use. Third Party Service fees are also subject to change based on fee changes
imposed by Third Party Service providers. If Axon is subject to any third party charges as a result of
Customer’s delays or requested changes (such as any changes to requested dates, configuration
changes or additional integrations), Axon will invoice Customer for any applicable third party charges
Axon incurs.
2.12.6. Support Terms for 911 Products. If purchased, Carbyne support will be performed in accordance
with applicable Carbyne Support Terms available at https://carbyne.com/legal/. Prepared support
terms are available upon request.
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2.12.7. Customer Cooperation. Customer acknowledges that timely provision of and access to Customer
systems, equipment, assistance, cooperation, and complete and accurate information and data
("Customer Cooperation") is essential to Axon's performance under this Agreement, and Customer
is responsible for ensuring its infrastructure meets applicable minimum requirements and for the
accuracy of all information provided. Customer Cooperation includes facilitating access to and
discussions with any third-party vendors or subcontractors required to integrate with the Solution, for
whose fees Axon bears no responsibility. Customer authorizes Axon limited access to its systems,
networks, facilities, and third-party systems as reasonably necessary to perform services under this
Agreement or any SOW, and Axon agrees to comply with Customer's security requirements. If
Customer fails to timely perform its obligations or provide Customer Cooperation, Axon is not
responsible for any dependent obligations to the extent of such delay.
2.12.8. Prepared Products Deployment.
Prepared product deployment timelines for Prepared products within the Scope of Work
(SOW) shall be mutually agreed to by the Parties in the SOW. The initial deployment of
Assistive Call Taking (ACT) may take up to twelve (12) months from the execution of the SOW
and the service start date listed in the Agreement; deployments of the remaining Prepared
products may take up to twenty-four (24) months from the execution of the SOW. Axon must
confirm feasibility based on technical requirements for Prepared products prior to the execution
of the SOW.
Customers using Solacom (Comtech CHE) call handling equipment in a multi-tenant
2.12.8.2.
configuration are not eligible for Prepared ACT or Prepared AQA, as call audio cannot be
isolated to a single agency. Such Customers remain eligible for ANET and Assistive Dispatch.
Customers on Solacom single-tenant configurations are eligible for all Prepared products,
subject to SPAN port fees described below.
2.12.8.1.

2.12.9. Disclaimers.
CUSTOMER ACKNOWLEDGES AXON DOES NOT PROVIDE TELEPHONE
2.12.9.1.
SERVICES, INTERCONNECTED VOIP SERVICES, OR 911 SERVICES. AXON MAKES NO
REPRESENTATION THAT IT IS AN INTERCONNECTED VOIP SERVICE OR A COVERED
911 SERVICE PROVIDER, AND CUSTOMER MUST OBTAIN SUCH SERVICES FROM THE
APPROPRIATE THIRD-PARTY SERVICE PROVIDER.
1.1.1.1. CUSTOMER ACKNOWLEDGES THAT AXON MAKES NO REPRESENTATION OR

RECOMMENDATIONS WITH REGARD TO THE CONTENT OR COMPLIANCE OF THE
SOLUTION, OR ANY OTHER PRODUCT OR SERVICE AXON OFFERS, WITH LAWS,
RULES, REGULATIONS AND INDUSTRY STANDARDS (INCLUDING NENA STANDARDS
AND DATA RETENTION REQUIREMENTS) WHICH APPLY TO CUSTOMER’S INTENDED
USE, SUCH AS RECEIVING AND PROCESSING EMERGENCY CALLS. CUSTOMER IS
RESPONSIBLE FOR MAKING CUSTOMER’S OWN LEGAL DETERMINATION ON
WHETHER CUSTOMER CAN USE THE SOLUTION AND ANY OTHER PRODUCTS AND
SERVICES AXON OFFERS FOR CUSTOMER’S INTENDED USE.

III. Software

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1.

Software - General
1.1. Licenses.
1.1.1. Software License. Subject to Customer’s compliance with this Agreement (including the Quote) and
any applicable documentation, and payment of applicable fees, Axon grants Customer a nonexclusive, non-transferable, revocable, limited, non-sublicensable, royalty-free license during the
applicable Subscription Term to install, use, and display the Axon Software solely for Customer’s
internal purposes and solely for data communication with Axon Devices or Cloud Services for the
number and type of licenses purchased.

1.1.2. Firmware License. Subject to Customer’s compliance with this Agreement and payment of
applicable fees, Axon grants Customer a non-exclusive, non-transferable, non-sublicensable, royaltyfree, perpetual limited license to use the Axon Firmware solely on Axon Devices.
1.2. Actions Required Upon Termination. Upon termination of the license associated with this Agreement,
Customer agrees to destroy all copies of the Software and other text and/or graphical documentation,
whether in electronic or printed format, that describes the features, functions and operation of the Software
that is provided by Axon to Customer ("Software Documentation") or return such copies to Axon.
Regarding any copies of media containing regular backups of Customer's computer or computer system,
Customer agrees not to access such media for the purpose of recovering the Software or online Software
Documentation.
2.

Software – Product Specific.
2.1. Wireless Offload Server. Upon request by Axon, Customer will provide Axon with access to Customer’s
store and forward servers solely for troubleshooting and maintenance.

2.2. Investigate- Third-Party Licenses (On-Premises Software Only). This Section applies solely to
Customer’s on-premises deployment of the Software and does not apply to any cloud-hosted or SaaS
offerings. Axon licenses several third-party codecs and applications that are integrated into the Software.
Customer agrees to and understands that an active support contract with Axon is required for access to all of
the following features: DNxHD output formats, decoding files via the "fast indexing" method, proprietary file
metadata, telephone and email support, and all future updates to the Software. If Customer terminates the
annual support contract with Axon, the features listed above will be disabled within the Software.
2.3. Evidence Local License. Axon owns all executable instructions, images, icons, sound, and text in Axon
Evidence Local. All rights are reserved to Axon. Axon grants a non-exclusive, royalty-free, worldwide right
and license to use Axon Evidence Local. "Use" means storing, loading, installing, or executing Axon
Evidence Local exclusively for data communication with an Axon Device. Customer may use Axon Evidence
Local in a networked environment on computers other than the computer it installs Axon Evidence Local on,
so long as each execution of Axon Evidence Local is for data communication with an Axon Device.
Customer may make copies of Axon Evidence Local for archival purposes only. Customer shall retain all
copyright, trademark, and proprietary notices in Axon Evidence Local on all copies or adaptations.
IV. Axon Application Programming Interface (“API”)
1. General
1.1. Definitions.
1.1.1. "Active Channel" means a third-party system that is continuously communicating with an Axon Digital
Evidence Management System.
1.1.2. "API Client" means the software that acts as the interface between Customer’s computer and the
server, which is already developed or to be developed by Customer.
1.1.3. “API Content” All content related to API Service, excluding Customer Content or Customer’s API Client
Content, is considered Axon’s API Content, including: (i) the design, structure and naming of API
Service fields in all responses and requests; (ii) the resources available within API Service for which
Customer takes actions on, such as Evidence, cases, users, or reports; (iii) the structure of and
relationship of API Service resources; and (iv) the design of API Service, in any part or as a whole.
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1.1.4. "API Interface" means software implemented by Customer to configure Customer’s independent API
Client software to operate in conjunction with the API Service for Customer’s authorized Use.
1.1.5. "Axon Digital Evidence Management System" means Axon Evidence or Axon Evidence Local, as
specified in the Channel Services Statement of Work.
1.1.6. "Axon Evidence Partner API, API or Axon API" (collectively "API Service") means Axon’s API which
provides a programmatic means to access data in Customer’s Axon Evidence account or integrate
Customer’s Axon Evidence account with other systems.
1.1.7. "Inactive Channel" means a third-party system that will have a one-time communication to an Axon
Digital Evidence Management System.
1.1.8. "Use" means any operation on Customer’s data enabled by the supported API functionality.
1.2. Purpose and License.

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1.2.1. Customer may use API Service and data made available through API Service, in connection with an
API Client developed by Customer. Axon may monitor Customer’s use of API Service to ensure quality,
improve Axon Devices and Services, and verify compliance with this Agreement. Customer agrees to
not interfere with such monitoring or obscure from Axon Customer’s use of API Service. Customer will
not use API Service for commercial use.
1.2.2. Axon grants Customer a non-exclusive, non-transferable, non-sublicensable, worldwide, revocable right
and license during the Term to use API Service, solely for Customer’s Use in connection with
Customer’s API Client.
1.3. Limitations. Axon reserves the right to set limitations on Customer’s use of the API Service, such as a
quota on operations, to ensure stability and availability of Axon’s API. Axon will use reasonable efforts to
accommodate use beyond the designated limits.
1.4. Configuration. Customer will work independently to configure Customer’s API Client with API Service for
Customer’s applicable Use. Customer will be required to provide certain information (such as identification or
contact details) as part of the registration. Registration information provided to Axon must be accurate.
Customer will inform Axon promptly of any updates. Upon Customer’s registration, Axon will provide
documentation outlining API Service information.
1.5. API Updates. Axon may update or modify the API Service from time to time ("API Update"). Customer is
required to implement and use the most current version of API Service and to make any applicable changes
to Customer’s API Client required as a result of such API Update. API Updates may adversely affect how
Customer’s API Client accesses or communicates with API Service or the API Interface. Each API Client
must contain means for Customer to update API Client to the most current version of API Service. Axon will
provide support for one (1) year following the release of an API Update for all depreciated API Service
versions.
2.

API – Product Specific
2.1. Axon Channel Services
2.1.1. Scope. When Customer has a third-party system or data repository from which Customer desires to
share data with Axon Digital Evidence Management, Axon will facilitate the transfer of Customer’s thirdparty data into or out of Axon’s Digital Evidence Management System, as defined in the Channel
Services Statement of Work ("Channel Services SOW"). Channel Services will not delete any
Customer Content. Customer is responsible for verifying all necessary data is migrated correctly and
retained per Customer policy.

2.1.2. Purpose and Use. For Active Channels, Customer is responsible for any changes to a third-party
system that may affect the functionality of the Channel Service. An Axon Field Engineer may require
access to Customer’s network and systems to perform the Services described in the Channel Services
SOW. Customer is responsible for facilitating this access per all laws and policies applicable to
Customer.

V. Artificial Intelligence (“AI”)
1.

Definitions.
1.1. “AI Technology” means artificial intelligence functionalities embedded in Axon’s Products, which may
include: (a) Enhanced Evidence Management; (b) AI-powered redaction tools; (c) Large Language Modelbased tools (d) Predictive Analytics for operational insights; or (e) Natural Language Processing (NLP) for
text and speech analysis.
1.2. “Bias Mitigation” means strategies and techniques used to identify, measure, and minimize bias in AI
Technology.

2.

Axon Responsibilities

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2.1. Data Use. Unless otherwise agreed to in writing, Axon and Axon’s subprocessors will not train their models
on Customer Content.
2.2. Ethical AI Development. Axon shall: (a) follow its responsible innovation framework; (b) engage with the
Ethics and Equity Advisory Council (EEAC) for feedback; (c) conduct testing to minimize bias and ensure
reliability; and (d) implement Bias Mitigation techniques in model development and deployment.
3.

Customer Responsibilities and Disclaimers.
3.1. Use of AI Technologies. Customer acknowledges that AI Technology is assistive and not designed to
replace human review and judgement. Customer must: (a) review AI-generated outputs to ensure accuracy
and appropriateness; (b) maintain control over Customer Content shared with AI Technologies (c) comply
with applicable laws when using Axon AI Technology and Axon Services; and (d) monitor for potential issues
with AI outputs, including false positives or negatives.

3.2. RESTRICTIONS. AI TECHNOLOGY IS NOT DESIGNED FOR EMERGENCIES, UNLESS EMERGENCY
USE CASES ARE DESCRIBED IN THE APPLICABLE PRODUCT DOCUMENTATION AND IN SUCH
CASES, USERS SHOULD CONTACT APPROPRIATE EMERGENCY SERVICES DIRECTLY. AXON
DISCLAIMS LIABILITY FOR QUERIES CONTAINING PROHIBITED CONTENT, SUCH AS HATE,
SEXUAL MATERIAL, OR VIOLENCE, AND RESERVES THE RIGHT TO RESTRICT SUCH USAGE.
3.3. HEALTHCARE. AXON CLOUD SERVICES THAT LEVERAGE AI TECHNOLOGY, E.G.,
TRANSCRIPTION AND TRANSLATION, MUST NOT BE USED BY HEALTHCARE PROVIDERS (SUCH
AS DOCTORS, NURSES, PARAMEDICS) FOR THE PURPOSE OF PROVIDING HEALTHCARE
SERVICES, AND SHALL ONLY BE USED FOR THE PURPOSE OF HEALTHCARE PROVIDERS DEESCALATING CONFRONTATIONS, UNLESS USE BY HEALTHCARE PROVIDERS TO PROVIDE
SAFER AND MORE EFFICIENT EMERGENCY RESPONSE HEALTHCARE SERVICES IS DESCRIBED
IN PRODUCT DOCUMENTATION.
4.

Prepared Products AI Eras. This section applies to a Customer’s AI Eras subscription for Prepared products:

4.1. Assistive Dispatch Licensing. Deploying Assistive Dispatch may require Axon to procure additional third
party-licensing. Axon reserves the right to pass through these third-party costs to the Customer. Assistive
Dispatch may also require additional third-party hardware or services to be purchased by the Customer directly
from the third-party vendor. AI Era pricing does not include these third-party hardware or services costs.
4.2. Assistive Dispatch Eligibility. Assistive Dispatch is available for Customers using supported CAD and radio
console configurations. A technical assessment will determine eligibility. Customers with analog radio consoles
or unsupported digital console configurations are not eligible for Assistive Dispatch but may use other Prepared
products included in AI Era (ACT, AQA, ANET). Axon will conduct eligibility assessment only when explicitly
requested by customer.
4.3. PSAP Eligibility. PSAP eligibility for Prepared products under the AI Era Plan requires that AI Era licenses
purchased to represent at least one-third (33%) of the total sworn officer count associated with the PSAP. For
PSAPs serving multiple agencies, eligibility is calculated based on the aggregate AI Era licenses purchased
by all participating agencies relative to the combined sworn officer count served by that PSAP. Axon retains
sole discretion to determine PSAP eligibility, and may consider additional factors including call volume,
deployment feasibility, and PSAP configuration in making its determination. If Customer is interested in
Prepared products as part of the purchase of AI Era Plan, Customer shall assist Axon in making all eligibility
determinations within ninety (90) days of the date of the Quote signature.

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Schedule 1 to Software and Cloud Services Terms of Use Appendix
Axon Customer Experience Improvement Program Appendix
The ACEIP is designed to accelerate Axon’s development of technology, such as building and supporting automated
features, aiming to increase safety within communities and efficiency in public safety. Axon may make limited use of
Customer Content from participating customers to develop, improve, and support current and future Axon products
(collectively, “ACEIP Purposes”). ACEIP has 2 modes of participation, Basic and Custom. Customer is enrolled in
ACEIP Basic by default. If Customer does not want to participate in ACEIP Basic, ACEIP Custom, or both, Customer
can revoke its consent at any time via email to [email protected].

1. Axon Obligations
1.1 ACEIP Basic
When Axon uses Customer Content for ACEIP Purposes, Axon will:
 Use Customer Content only for ACEIP Purposes.
 Prohibit direct human access to Customer Content, including by Axon personnel and subprocessors, except
as needed to perform or validate deletion.
 Retain Customer Content only as long as needed to create Transformed Content (defined below) and
validate the transformations.
 Apply privacy-preserving transformations that remove identifying information appropriate to the use case
(“Transformed Content”). AI model weights and similar insights that do not contain Customer Content are
Transformed Content. Transformed Content is not Customer Content.
 Retain and permit direct human access to Transformed Content for ACEIP Purposes.
 Maintain security, privacy, and data governance programs as described in the Software and Cloud Services
Terms of Use Appendix, and apply them to ACEIP.
1.2 Transparency Portal Publication
Before activating a use case, Axon will publish it on the Axon Transparency Portal (https://www.axon.com/aceipenterprise), including the product development purpose, data types involved, and privacy-preserving techniques used.
Axon will also notify ACEIP participants when the Transparency Portal is updated with a new or materially changed
use case. Fifteen (15) calendar days after notification, Axon may activate the use case for all Basic participants.
1.3 Opt Out
Customer may opt out of ACEIP Basic at any time via [email protected]. Axon endeavors to implement opt outs within
fifteen (15) calendar days. Transformations of Customer Content cease when Axon implements the opt out. Axon may
retain Transformed Content created before it implemented the opt out request.
2. ACEIP Custom
Custom use cases may be governed by separate written terms between Axon and Customer. Those terms will control
that use case. Please direct inquiries regarding Customer participation to [email protected].

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Axon Device Appendix
General. The following terms and conditions apply to any purchase, deployment, and use of Axon-manufactured
Devices or third-party hardware products provided under the Agreement.

I.

1.

Warnings. See www.axon.com/legal for the most current Axon Device warnings.

2.

Customer Responsibilities. Customer is responsible for (a) Customer’s use of Axon Devices; (b) Customer or a
Customer-authorized user’s breach of this Agreement or violation of applicable law; (c) disputes between
Customer and a third-party over Customer’s use of Axon Devices; and (d) secure and sustainable destruction and
disposal of Axon Devices at Customer’s cost in accordance with applicable law or regulations.

3.

Installation. In certain circumstances, Axon may use a third party authorized and trained by Axon to install
products. Axon will not be liable for the failure of any Axon hardware to operate per specifications if such failure
results from installation not performed by, or as directed by Axon or Axon’s third party installer.

4.

Shipping. Axon may make partial shipments and ship Axon Devices from multiple locations. All shipments are
EXW (Incoterms 2020) via common carrier. Title and risk of loss pass to Customer upon Axon’s delivery to the
common carrier. Customer is responsible for any shipping charges in the Quote.

II.
1.

2.

General Warranty.
Axon Limited Warranty. Axon warrants that Axon-manufactured Devices, except for TASER devices (see below
for TASER warranty), are free from defects in workmanship and materials for one (1) year from the date of
Customer’s receipt, except Signal Sidearm which Axon warrants for thirty (30) months from Customer’s receipt,
and Axon-manufactured accessories which Axon warrants for ninety (90) days from Customer’s receipt (“Limited
Warranty”).
General Warranty Terms. The following apply to all Axon-manufactured Devices excluding TASER weapons:
2.1. Extended Warranty. If the Quote includes an extended warranty, the extended warranty coverage period
begins upon the expiration of the Limited Warranty. The maximum warranty period for an individual Axon
Device will be five (5) years including the initial Limited Warranty.

2.2. Claims. If Axon receives a valid warranty claim for an Axon-manufactured Device during the warranty term,
Axon’s sole responsibility is to repair or replace the Axon-manufactured Device with the same or like Axonmanufactured Device, at Axon’s option. A replacement Axon-manufactured Device will be new or like new.
Axon will warrant the replacement Axon-manufactured Device for the longer of (a) the remaining warranty of
the original Axon-manufactured Device or (b) ninety (90) days from the date of repair or replacement.
If Customer exchanges an Axon-manufactured Device or part, the replacement item becomes Customer’s
property, and the replaced item becomes Axon’s property. Before delivering an Axon-manufactured Device
for service, Customer must upload Axon-manufactured Device data to Axon Evidence or download it and
retain a copy. Axon is not responsible for any loss of software, data, or other information contained in
storage media or any part of the Axon-manufactured Device sent to Axon for service.

3.

Spare Axon Devices. At Axon's reasonable discretion, Axon may provide Customer a predetermined number of
spare Axon Devices detailed in the Quote ("Spare Axon Devices"). Spare Axon Devices are intended to replace
broken or non-functioning units while Customer submits the broken or non-functioning units through Axon’s
warranty return process. Axon will repair or replace the unit with a replacement Device. Axon assumes no liability
or obligation in the event Customer does not utilize Spare Axon Devices for the intended purpose.

4.

Limitations and Disclaimer.
4.1.1. LIMITATION. AXON’S WARRANTY EXCLUDES DAMAGE RELATED TO: (A) FAILURE TO FOLLOW
AXON DEVICE USE INSTRUCTIONS; (B) AXON DEVICES USED WITH EQUIPMENT NOT

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MANUFACTURED OR RECOMMENDED BY AXON; (C) ABUSE, MISUSE, OR INTENTIONAL
DAMAGE TO AXON DEVICE; (D) FORCE MAJEURE; (E) AXON DEVICES REPAIRED OR MODIFIED
BY PERSONS OTHER THAN AXON WITHOUT AXON’S WRITTEN PERMISSION; OR (F) AXON
DEVICES WITH A DEFACED OR REMOVED SERIAL NUMBER. AXON’S WARRANTY WILL BE VOID
IF CUSTOMER RESELLS AXON DEVICES.

4.1.2. DISCLAIMER. AXON DEVICES AND SERVICES THAT ARE NOT MANUFACTURED, PUBLISHED
OR PERFORMED BY AXON ("THIRD-PARTY PRODUCTS") ARE NOT COVERED BY AXON’S
WARRANTY AND ARE ONLY SUBJECT TO THE WARRANTIES OF THE THIRD-PARTY PROVIDER
OR MANUFACTURER.
4.1.3. EXCLUSIVE WARRANTY. TO THE EXTENT PERMITTED BY LAW, THE WARRANTIES AND
REMEDIES IN THE AGREEMENT ARE EXCLUSIVE. AXON DISCLAIMS ALL OTHER WARRANTIES,
REMEDIES, AND CONDITIONS, WHETHER ORAL, WRITTEN, STATUTORY, OR IMPLIED. IF
STATUTORY OR IMPLIED WARRANTIES CANNOT BE LAWFULLY DISCLAIMED, THEN SUCH
WARRANTIES ARE LIMITED TO THE DURATION OF THE WARRANTY DESCRIBED ABOVE AND
BY THE PROVISIONS IN THIS AGREEMENT. CUSTOMER CONFIRMS AND AGREES THAT, IN
DECIDING WHETHER TO SIGN THIS AGREEMENT, CUSTOMER HAS NOT RELIED ON ANY
STATEMENT OR REPRESENTATION BY AXON OR ANYONE ACTING ON BEHALF OF AXON
RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT THAT IS NOT IN THIS AGREEMENT.
4.1.4. LOKI DRONE LIMITATIONS: IF CUSTOMER PURCHASES AXON LOKI, CUSTOMER
ACKNOWLEDGES THE LOKI DEVICE IS DESIGNED FOR OPERATION IN ENCLOSED,
CONTROLLED ENVIRONMENTS AND MUST BE USED IN COMPLIANCE WITH ALL APPLICABLE
LAWS AND SAFETY GUIDELINES. OPERATION IN OPEN OR UNAPPROVED AREAS MAY RESULT
IN SIGNAL INTERFERENCE, LOSS OF CONTROL, OR DAMAGE, AND AXON ASSUMES NO
LIABILITY FOR IMPROPER USE, INCLUDING ANY RESULTING HARM OR REGULATORY
VIOLATIONS.
III.

Technology Assurance Plan (“TAP”).
1. TAP Device and Dock Refresh. If Customer has no outstanding payment obligations and purchased TAP,
Axon will provide Customer a new Axon Device ("Device Refresh") and Axon Dock (“Dock Refresh”) as
scheduled in the Quote. The Device Refresh and or Dock Refresh will be the same or like Axon Device, at
Axon’s option, depending on what model Customer originally purchased. Axon makes no guarantee the
Device Refresh will utilize the same accessories or Axon Dock. Accessories associated with any Dock
Refreshes are subject to change at Axon discretion. Dock Refreshes will only include a new Axon Dock Bay
configuration unless a new Axon Dock core is required for Axon Device compatibility. Under the Dedrone
Refresh Program, the replacement hardware will be the same model as, or a comparable model to, the
original. Axon is not obligated to provide next-generation or upgraded versions.

2.

Refresh Delay. Axon may ship the Axon Device and Dock Refreshes as scheduled in the Quote without prior
confirmation from Customer unless the Parties agree in writing otherwise at least ninety (90) days in advance,
including shipment of the final Axon Devices and Dock Refreshes up to sixty (60) days before the end of the
Subscription Term.

3.

Upgrade Change. If Customer wants to upgrade Axon Device models from the current Axon Device to an
upgraded Axon Device, Customer must pay the price difference between the MSRP for the current Axon
Device and the MSRP for the upgraded Axon Device. Axon will not provide a refund if the model Customer
desires has an MSRP less than the MSRP of Customer’s current Devices. The MSRP is the MSRP in effect
at the time of the upgrade. Customer is responsible for the removal of previously installed hardware and
installation of the Device Upgrade. For Dedrone devices Axon does not guarantee that next-gen products will
be available at the time of refresh.

4.

Return of Original Axon Device. Within thirty (30) days of receiving a Device or Dock Refresh, Customer
must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of
destruction to Axon including serial numbers for the destroyed Axon Devices. If Customer does not return or

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destroy the Axon Devices, Axon will deactivate the serial numbers for the Axon Devices received by
Customer. Under the Dedrone Refresh Program, Customer is not required to return the original hardware
upon receipt of the replacement.

5.

Termination. TAP coverage terminates as of the date of termination and no refunds will be given in the event
of termination or expiration of the Agreement.

IV. Axon Device Specific Terms and Conditions.
1. Cradlepoint. If Customer purchases Cradlepoint hardware, software, or services, Customer will comply with
Cradlepoint’s end user license agreement. The term of the Cradlepoint license may differ from the Axon Evidence
Subscription. If Customer requires Cradlepoint support, Customer will contact Cradlepoint directly. By accepting a
Quote including Cradlepoint products, Customer designates and authorizes Axon as its partner of record for
purposes of Cradlepoint product renewals, support coordination, and other relevant functions. This designation
applies to all Cradlepoint products acquired by Customer during the Subscription Term of the applicable Quote
whether directly from Cradlepoint, through Axon, or through any third-party vendor or distributor. Axon shall have
no liability to Customer or any third party arising out of or relating to Axon’s acts or omissions as the Partner of
Record. Customer has the right to opt out of this authorization at any time by providing prior written notification to
both Axon and Cradlepoint. Upon such notification, the designation will be removed. This authorization remains
effective until formally removed in accordance with this section or as otherwise agreed between the parties in the
Agreement.
2.

Axon Outpost.
2.1. Installation. Customers will obtain, maintain all legally required permits, authorizations, and/or licensing in
order to place, maintain, and/or remove the Axon Outpost device at the installation location, including
licenses or permits for fixed installation of poles. If mutually agreed by the Parties, Axon or an Axon
authorized subcontractor may assist with obtaining the necessary local, state, or Federal approvals before
installing Axon Outpost.

2.2. Vandalism or Motor Vehicle Accident Warranty. If Customer purchases the Vandalism and Accident
warranty, Axon will provide up to two (2) replacements per warranty purchased if your Outpost is damaged
due to vandalism or a motor vehicle accident. Axon will make a commercially reasonable effort to provide
new installation free of charge, but installation may require additional cost. Axon does not provide refunds or
credits if the warranty is not used during the Term of the Quote.
3.

Axon Lightpost.
3.1. Ubicquia. If Customer purchases Lightpost hardware and installation services, any warranties for the
hardware are provided exclusively by the third-party manufacturer Ubicquia. All hardware-related support or
warranty claims must be directed to the respective third-party provider. Axon is not responsible for servicing
or replacing hardware. Axon will provide and support software components in accordance with the applicable
Quote.

3.2. Installation. Installation of Axon Lightpost equipment will be performed by a third-party service provider
authorized by Axon. Axon does not directly perform installation services.
3.3. Power. Customer agrees to supply a power source, in compliance with Lightpost requirements, at each site
where a Lightpost device is installed. The power must be available on a 24-hour, 7 days per week (24/7)
basis.
4.

TASER Devices.
4.1. TASER Weapon Limited Warranty.
4.1.1. Definitions.
“Deployment” means use of the TASER weapon resulting in the discharge of the
4.1.1.1.
conducted energy weapon (“CEW”) cartridge probe. For TASER 10, each probe discharged is

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considered one (1) Deployment. For TASER 7, the dual probe discharged is considered one (1)
Deployment.
“Pooled User” means the TASER weapon is assigned and used by multiple users.
4.1.1.2.
4.1.1.3. “Single User” means the TASER weapon is assigned and used by one user.
4.1.1.4.“Training Device” means the TASER weapon is only used for training purposes.

4.1.2. Warranty Coverage. Axon warrants that each Axon-manufactured TASER Device is free from defects
in workmanship and materials when assigned and used as a single-user device, pooled-user device, or
training device, for the earlier of: (i) one (1) year from the date of Customer’s receipt or (ii) if an
extended warranty is purchased for the Device, a total of up to 500 Deployments over 5 years. Used
CEW cartridges are deemed to have operated properly.
4.1.3. TASER 10L or TASER Covert. If the TASER Device is a TASER 10L (TASER 10 Light) or Covert as
defined in the Quote, Axon warrants that the TASER Device is free from defects in workmanship and
materials for the earlier of one (1) year from the date of Customer's receipt or 100 Deployments.
Reduced Life TASER 10L Device has a maximum warranty that may be purchased that will warrant the
Device for the earlier of two (2) years or 200 Deployments, including the Limited Warranty.

4.1.4.

Registration. Prior to use of the TASER Device, Customer must register each TASER Device in
TASER Device Axon Evidence tenancy as a Single User, Pooled User or Training Device. Failure to
properly register the TASER Device prior to its use may void the warranty at Axon’s sole discretion.

4.2. Duty Cartridge Replenishment Plan. If the Quote includes "Duty Cartridge Replenishment Plan", Customer
must purchase the plan for each CEW user. A CEW user includes officers that use a CEW in the line of duty
and those that only use a CEW for training. Customer may not resell cartridges received. Axon will only
replace cartridges used in the line of duty.
4.3. Trade-in. If the Quote contains a discount on CEW-related line items and that discount is contingent upon
the trade-in of hardware, Customer must return used hardware and accessories associated with the discount
("Trade-In Units") to Axon within the below prescribed timeline. Customer must ship batteries via ground
shipping. Axon will provide Customer with a pre-paid shipping label for the return of the Trade-In Units. If
Axon does not receive Trade-In Units within the timeframe below, Axon will invoice Customer the value of
the trade-in credit. Customer may not destroy Trade-In Units and receive a trade-in credit.
Customer Size

Days to Return from Start Date of TASER 10 Subscription

Less than 100
officers
100 to 499 officers

60 days
90 days

500+ officers

180 days

4.4. Customer Warranty. If Customer is located in the US, Customer warrants and acknowledges that TASER
10 is classified as a firearm and is being acquired for official Customer use pursuant to a law enforcement
agency transfer under the Gun Control Act of 1968.
5.

Virtual Reality (VR) Headsets. Any additional virtual reality headsets purchased for use with Virtual Reality
Media must be purchased from Axon.

6.

Training Pod
6.1. Customer Responsibilities. Customer is responsible for: (i) all permits to use the Axon Training Pod; (ii)
complying with all applicable laws pertaining to the use of the Axon Training Pod; (iii) any maintenance
required for the Axon Training Pod; and (iv) disposal of the Axon Training Pod.

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6.2. Warranties. TO THE EXTENT NOT PROHIBITED BY LAW, AXON TRAINING POD IS SOLD “AS IS”
WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND NON-INFRINGEMENT.
6.3. Placement. Axon will make its best efforts to work with Customer on the initial placement of the Axon
Training Pod. After the initial placement, it is the Customer’s responsibility to make any adjustments to the
Axon Training Pod’s placement.
6.4. Deemed Acceptance. The Axon Training Pod will be deemed accepted by Customer upon delivery.
Customer waives any right to reject the Axon Training Pod except in the event of damage during shipment,
which must be reported to Axon in writing within five (5) business days of delivery.

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Professional Services Appendix
I. Implementation and Training
1.

General
1.1. Delivery of Services. Axon personnel will work Monday through Friday, 8:30 a.m. to 5:30 p.m., except
holidays. Axon will perform all on-site tasks over a consecutive timeframe. Axon will not charge Customer
travel time by Axon personnel to Customer premises as work hours.

1.2. Access Computer Systems to Perform Services. Customer authorizes Axon limited access Customer’s
relevant computers, network systems, facilities, and third-party systems as reasonably necessary for Axon to
perform services as defined in this Agreement or in a SOW. Axon agrees to comply with Customer’s
security requirements to access such systems, either remotely or on-site, as applicable. Axon will use
commercially reasonable efforts to identify the required resources in advance. Customer is responsible for
ensuring its infrastructure meets the minimum requirements and for the accuracy of the information provided.
1.3. Site Preparation. Axon will provide a copy of current user documentation for the Axon Devices ("User
Documentation"), which will include all required environmental and operational specifications for the
professional services and Axon Devices. Before installation of the Axon Devices, Customer must prepare
the location(s) where Axon Devices are to be installed ("Installation Site") per the User Documentation and
ensure all computers, hardware, vehicles, etc. are readily available in a suitable work area. Following
installation, Customer must maintain the Installation Site per the environmental specifications. Axon will
provide any updates to the User Documentation to Customer when Axon generally releases it. For any
onsite training, Customer is responsible for providing a suitable work/training area.
1.4. Acceptance. When Axon completes professional services, Axon will present an acceptance form
("Acceptance Form") to Customer for signature to acknowledge completion. Customer must notify Axon in
writing of any material non-conformance and the specific reasons for rejection within seven (7) calendar
days from delivery of the Acceptance Form. Axon will address the issues and re-present the Acceptance
Form for signature. If Customer does not sign the Acceptance Form or provide written notice of rejection
within seven (7) calendar days of delivery, the professional services will be deemed accepted by Customer.
1.5. Customer Network. Customer is solely responsible for maintenance and functionality of the network. In no
event will Axon be liable for loss, damage, or corruption of Customer’s network from any cause other than
Axon’s negligence.
1.6. Utilization of Services. Customer must use professional services within six (6) months of the Effective Date.

II. Standard Implementation Activities
1.

Except for on-demand training, all professional services include advance remote project planning and
configuration support and assignment of a professional services manager to work with Customer on Customer’s
deployment to determine which Services under each category are appropriate. Any onsite support is noted under
each category. Additional on-site Services days may be purchased if needed.

2.

Professional services may include the following activities depending on the service package purchased:
Implementation Activity

Description

System Setup and Configuration

Configure Customer settings in Axon systems based on Customer need

User and Role Configuration

Configure roles, permissions, categories, and retention settings and
register users, as applicable

Device Registration

Register devices and associate them with Customer domain

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Implementation Activity

Description

Dock Configuration

Configure locations and settings and authenticate Axon Dock systems
(does not include physical mounting of docks)

System Troubleshooting

Troubleshoot IT issues with Axon Evidence, or hardware system access

System Admin Training

Step-by-step explanation and assistance for configuration of security,
roles & permissions, categories & retention, and other specific settings for
Axon Evidence.

Classroom and Practical Training

Step-by-step explanation and assistance for Customer's configuration of
product, functionality, and basic operation.

Evidence Sharing Training

Tailored workflow instruction on sharing cases and evidence with local
prosecuting agencies.

Best Practice Planning

Provide considerations for policy / system operations and best practices

Train-the-Trainer Instruction

Train designated Customer instructors who can support any subsequent
Customer training needs

User Go-Live Training

End-user instruction and deployment support for E.com and
device/operational training

Implementation Documentation

Axon guides for: administrators, product implementation, network setup,
categories & roles, and sample policies
Review deployment and address operational issues

Post Go-Live Review

TABLE 1 – PROFESSIONAL SERVICES MATRIX
Implementation Activity
System Setup and Configuration
User and Role Configuration
Device Registration
Dock configuration
System Troubleshooting
System Admin Training
Classroom and Practical Training
Evidence Sharing Training
Train-the-Trainer Instruction
Implementation Documentation
Best Practice Planning
Post Go-Live Review

3.

Full
✔
✔
✔
✔
✔
✔
—
✔
✔
✔
✔
✔

BWC
Starter
✔
✔
—
✔
✔
—
—
—
✔
✔
—
—

Virtual
✔
✔
—
✔
✔
—
—
—
✔
✔
—
—

Full
✔
✔
✔
—
✔
✔
—
—
✔
✔
✔
✔

CEW
Starter
✔
✔
✔
—
✔
✔
—
—
✔
✔
✔
✔

VR
✔
✔
—
—
✔
—
✔
—
✔
—
✔
—

Air
On-Site Virtual
✔
✔
✔
✔
—
—
—
—
✔
✔
—
—
✔
—
—
—
✔
✔
—
—
✔
✔
—
—

Service Package Scope
3.1. Body-Worn Camera Services
 BWC Full: Includes remote planning and up to four (4) consecutive on-site service days.


BWC Starter: Includes remote planning and one (1) on-site service day.



BWC Virtual: All Services delivered remotely.

3.2. CEW Services
 CEW Full: Includes on-site support and instructor training for up to three (3) instructors.
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Release Date: July 2026

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Justice
✔
✔
—
—
✔
—
—
✔
✔
✔
✔
✔

Master Services and Purchasing Agreement


CEW Starter: Services delivered remotely with instructor training for one (1) instructor.

3.3. VR Services. Includes remote planning and one (1) on-site training day, with instructor training for up to five
(5) instructors.
3.4. Axon Air Training. Includes system configuration and operational training. On-site training includes practical
flight instruction; virtual training excludes flight training.
3.5. Axon Justice Implementation. Includes workflow configuration, disclosure configuration, go-live planning,
and up to three (3) two (2) hour remote training sessions.

III. Additional Professional Services
1.

Smart Weapon Transition Service. The Smart Weapon Transition Service includes:

1.1. Archival of CEW Firing Logs. Axon’s on-site professional services team will upload CEW firing logs to
Axon Evidence from all TASER CEW Smart Weapons that Customer is replacing with newer Smart Weapon
models.
1.2. Return of Old Weapons. Axon’s on-site professional service team will ship all old weapons back to Axon’s
headquarters. Axon will provide Customer with a Certificate of Destruction.
1.2.1. *Note: CEW Full-Service packages for TASER 7 or TASER 10 include Smart Weapon Transition
Service instead of 1-Day Device Specific Instructor Course.
2.

Signal Sidearm Installation Service.
2.1. Purchases of 50 SSA units or more: Axon will provide one (1) day of on-site service and one professional
services manager and will provide train the trainer instruction, with direct assistance on the first of each
unique holster/mounting type. Customer is responsible for providing a suitable work/training area.

2.2. Purchases of less than 50 SSA units: Axon will provide a 1-hour virtual instruction session on the basics of
installation and device calibration.
3.

TASER On Demand Training. If the Quote includes a TASER On Demand Certification subscription, Customer
will have on-demand access to TASER Instructor and TASER Master Instructor courses only for the duration of
the TASER Subscription Term. Axon will issue a maximum of ten (10) TASER Instructor vouchers and ten (10)
TASER Master Instructor vouchers for every thousand TASER subscriptions purchased. Customer shall utilize
vouchers to register for TASER courses at their discretion within one (1) year of issuance; however, Customer
may incur a fee for cancellations less than ten (10) business days prior to a course date or failure to appear to a
registered course. Vouchers have no cash value and cannot be exchanged for any other Axon Device or
Services. Any unused vouchers will be forfeited. A voucher does not include any travel or other expenses that
might be incurred related to attending a course.

IV. Technical Account Manager
1.

Applicability. The following Technical Account Manager scope only applies to Device Technical Account
Managers. A separate SOW will be provided for any Software (SWS) TAM’s.

2.

Axon Technical Account Manager Payment. Axon will invoice for Axon Technical Account Manager ("TAM")
services, as outlined in the Quote, when the TAM commences work on-site at Customer.

3.

TAM Scope of Services. Customer’s Axon sales representative and Axon’s Customer Success team will work with
Customer to define its support needs and ensure the TAM has skills to align with those needs. There may be up to
a six (6) month waiting period before the TAM can work on-site, depending upon Customer’s needs and availability
of TAM.
TAM Scope of Services Matrix

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Master Services and Purchasing Agreement

Availability
Works Onsite
Available by phone and email during regular business hours.

Account Maintenance
Conducting training on new features and devices for Customer
leadership team(s)
Thoroughly documenting issues and workflows and suggesting new
workflows to improve the effectiveness of the Axon program
Conducting weekly meetings to cover current issues and program
status
Quarterly business review and program goal discussion.
Data Analysis
Providing Axon usage data to identify trends and insights for
improving daily workflows
Comparing Customer's Axon usage and trends to peers to establish
best practices
Proactively monitoring the health of Axon equipment and
coordinating returns when needed
Direct Support
Providing Tier 1 and Tier 2 (as defined in Axon's Service Level
Agreement) technical support for Axon Devices
Creating and monitoring RMAs

Full Time TAM

Regional TAM*

Four (4) days per week

Up to three (3)
consecutive days per
quarter
Up to eight (8) hours per
week

✔

✔

✔

✔

✔

✔

✔

✔

✔ Quarterly on-site visit

✔ On Demand

✔ Quarterly

✔

✔

✔

✔

✔

✔

✔

✔

Providing Axon app support

✔

Monitoring and testing new firmware and workflows before they are
released to Customer’s production environment

✔

Customer Advocacy
Coordinating bi-annual voice of customer meetings with Axon’s
Device Management team
Recording and tracking Customer feature requests and major bugs

✔

✔

✔

✔

Ongoing System Set-up and Configuration
Assisting with assigning cameras and registering docks
Maintaining Customer’s Axon Evidence account

✔

Connecting Customer to "Early Access" programs for new devices

✔

✔

*All work by Regional TAM to be performed remotely, except as noted under table. Customer must schedule the on-site days
at least two (2) weeks in advance.

4.

TAM Leave Time. The TAM will be allowed up to seven (7) days of sick leave and up to fifteen (15) days of vacation
time each calendar year. The TAM will work with Customer to coordinate any time off and will provide Customer
with at least two (2) weeks’ notice before utilizing any vacation days.

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Master Services and Purchasing Agreement
Miscellaneous Clauses Appendix
1.

Axon Aid. Upon mutual agreement between Axon and Customer, Axon may provide certain products and
services to Customer as a charitable donation under the Axon Aid program. In such event, Customer expressly
waives and releases any and all claims, now known or hereafter known, against Axon and its officers, directors,
employees, agents, contractors, affiliates, successors, and assigns (collectively, "Releasees"), including but not
limited to, on account of injury, death, property damage, or loss of data, arising out of or attributable to the Axon
Aid program whether arising out of the negligence of any Releasees or otherwise, and forever releases and
discharges all Releasees from liability under such claims. Customer expressly allows Axon to publicly announce
its participation in Axon Aid and use its name in marketing materials. Axon may terminate the Axon Aid program
without cause immediately upon notice to the Customer.

2.

Free Trial.
2.1. Trial Period and License. At any time during the Term, the Parties may agree to a free trial of Axon
Devices and Services new to the Customer (“Trial Products”) for a designated period (“Trial Period”) as
reflected in a quote (“Trial Quote”). During the Trial Period, Axon grants Customer a nonexclusive, nontransferable, revocable license to use the Trial Products solely for Customer’s internal evaluation. Trial
Products may include Axon beta software or firmware and may be subject to additional terms. Axon may
limit the number of Trial Products and may supply refurbished Trial Products. ALL TRIAL PRODUCTS, ARE
PROVIDED “AS IS” AND TO THE EXTENT NOT PROHIBITED BY LAW, AXON DISCLAIMS ALL
LIABILITY REGARDLESS OF THE CLAIM.

2.2. Trial Quote Termination. Upon at least ten (10) business days’ prior written notice to Axon at any time
prior to the end of the Trial Period, Customer may, as its sole option, terminate the free Trial Period and
underlying Trial Quote associated with the Trial Products for convenience. Customer’s rights to the Trial
Products will immediately terminate at the end of the Trial Period, and Customer will return any Trial
Products hardware to Axon within ten (10) days after the effective date of such termination or expiration at
the end of the Trial Period. Customer will return all Trial Products (excluding used CEW cartridges) in good
working condition, minus normal wear and tear. If any individual component of the Trial Products is not
returned, Axon may invoice Customer the MSRP of any of the unreturned items or damaged Trial Products,
and Customer agrees to pay the invoice along with any applicable taxes and shipping. Axon may charge
Customer if there is damage beyond normal wear and tear. Any Customer Content shall be stored and
returned pursuant to the Software and Cloud Services Terms of Use Appendix.
3.

Axon Event Offer Terms. If the Quote includes the provision of, or Axon otherwise offers, ticket(s), travel and/or
accommodation for select events hosted by Axon (“Axon Event”), the following terms and conditions shall apply:
3.1. General. Subject to the terms and conditions specified below and those in the Agreement, Axon may
provide Customer with one or more offers to fund Axon Event ticket(s), travel and/or accommodation for
Customer-selected employee(s) to attend one or more Axon Events. By entering into the Agreement,
Customer warrants that it is appropriate and permissible for Customer to receive the referenced Axon Event
offer(s) based on Customer’s understanding of the terms and conditions outlined in this Axon Event Offer
Appendix.

3.2. Attendee/Employee Selection. Customer shall have sole and absolute discretion to select the Customer
employee(s) eligible to receive the ticket(s), travel and/or accommodation that is the subject of any Axon
Event offer(s).
3.3. Compliance. It is the intent of Axon that any and all Axon Event offers comply with all applicable laws,
regulations and ethics rules regarding contributions, including gifts and donations. Axon’s provision of
ticket(s), travel and/or accommodation for the applicable Axon Event to Customer is intended for the use and
benefit of Customer in furtherance of its goals, and not the personal use or benefit of any official or employee
of Customer. Axon makes this offer without seeking promises or favoritism for Axon in any bidding
arrangements. Further, no exclusivity will be expected by either party in consideration for the offer. Axon
makes the offer with the understanding that it will not, as a result of such offer, be prohibited from any
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Master Services and Purchasing Agreement
procurement opportunities or be subject to any reporting requirements. If Customer’s local jurisdiction
requires Customer to report or disclose the fair market value of the benefits provided by Axon, Customer
shall promptly contact Axon to obtain such information, and Axon shall provide the information necessary to
facilitate Customer's compliance with such reporting requirements.

3.4. Assignability. Customer may not sell, transfer, or assign Axon Event ticket(s), travel and/or accommodation
provided under the Agreement.
3.5. Availability. The provision of all offers of Axon Event ticket(s), travel and/or accommodation is subject to
availability of funds and resources. Axon has no obligation to provide Axon Event ticket(s), travel and/or
accommodation.
3.6. Revocation of Offer. Axon reserves the right at any time to rescind the offer of Axon Event ticket(s), travel
and/or accommodation to Customer if Customer or its selected employees fail to meet the prescribed
conditions or if changes in circumstances render the provision of such benefits impractical, inadvisable, or in
violation of any applicable laws, regulations, and ethics rules regarding contributions, including gifts and
donations.

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Release Date: July 2026

Page 29

RESOLUTION NO. 153-26

R ESOLUTI ON AP P R OVI NG A 10-YEAR M ASTER SER VI CES AND P UR CHASI NG
AGR EEM ENT W I TH AXON ENTER P R I SES, I NC. FOR BODY-W OR N AND FLEET
CAM ER A SYSTEM S
WHEREAS, the Charles City Police Department utilizes body-worn and fleet
cameras to support its officers in carrying out their law enforcement duties; and
WHEREAS, Axon Enterprise, Inc. provides body-worn and fleet camera
equipment, software, and related services for law enforcement agencies; and
WHEREAS, the City has reviewed options for continuing these services and has
determined that entering into a 10-year Master Services and Purchasing Agreement
with Axon Enterprise, Inc. is in the best interest of the City; and
WHEREAS, the proposed agreement provides for the continued use of body-worn
and fleet camera systems and associated equipment, software, and services over a 10year term; and
WHEREAS, the annual cost of the proposed agreement is $45,507.00, which is
within the Police Department's budgeted amount of $48,000.00.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CHARLES CITY, IOWA:
SECTION 1. That the 10-year Master Services and Purchasing Agreement with
Axon Enterprise, Inc. for body-worn and fleet camera systems is
hereby approved.
SECTION 2. That the Mayor and City Clerk are hereby authorized to execute the
agreement and any necessary related documents on behalf of the
City of Charles City.
COUNCIL MEMBER

moved for the adoption of the foregoing Resolution;

COUNCIL MEMBER
as follows:

seconded the motion and on roll call the voting was

AYES:
NAYS: None
Passed and approved this 2nd day of November, 2026.

Dean Andrews, Mayor
Attest:

Brittney Lentz, City Clerk

____

MEETING DATE: 11/09/2026

AGENDA ITEM SUMMARY
Subject:

FY26 Final Audit Report from T.P. Anderson & Company P.C.

__________________________________________________________________________
Background Summary:
T.P. Anderson & Company, P.C. has completed the City of Charles City's annual
financial audit for the fiscal year ending June 30, 2026, along with a separate compliance
examination of the City's American Rescue Plan Act (ARPA) funds.
The City received an unmodified (clean) audit opinion on its financial statements,
as well as an unmodified opinion on its ARPA compliance examination.
The audit identified no material weaknesses in internal controls but did identify two
significant deficiencies related to segregation of duties and utility billing. The report also
includes recommendations regarding fund balances, debt-related transfers, and employee
benefit fund balances. Staff has reviewed the findings and is working to address the
identified items.
The final audit reports are attached for Council's review.
Staff Recommendation:
Staff recommends that Council review the final Fiscal Year 2026 audit reports and
accompanying audit findings.

CITY OF CHARLES CITY, IOWA
INDEPENDENT AUDITOR'S REPORTS
BASIC FINANCIAL STATEMENTS
SUPPLEMENTARY AND OTHER INFORMATION
SCHEDULE OF FINDINGS
JUNE 30, 2026

T. P. ANDERSON & COMPANY, P.C.
Certified Public Accountants

Table of Contents
Page
Officials

1

Independent Auditor’s Report
Basic Financial Statements:
Government-wide Financial Statement:
Cash Basis Statement of Activities and Net Position
Governmental Fund Financial Statements:
Statement of Cash Receipts, Disbursements, and
Changes in Cash Balances
Reconciliation of the Statement of Cash Receipts,
Disbursements, and Changes in Cash Balances to
the Cash Basis Statement of Activities and Net Position
Proprietary Fund Financial Statements:
Statement of Cash Receipts, Disbursements, and
Changes in Cash Balances
Reconciliation of the Statement of Cash Receipts,
Disbursements, and Changes in Cash Balances to
the Cash Basis Statement of Activities and Net Position
Notes to Financial Statements

2-4
Exhibit
A

5

B

6

C

7

D

8

E

9
10-30

Other Information:
Budgetary Comparison Schedule of Receipts, Disbursements,
and Changes in Balances – Budget and Actual (Cash Basis)
– All Governmental Funds and Proprietary Funds
Notes to Other Information – Budgetary Reporting
Schedule of the City’s Proportionate Share of the Net Pension Liability – IPERS
Schedule of City Contributions – IPERS
Schedule of the City’s Proportionate Share of the Net Pension Liability – MFPRSI
Schedule of City Contributions – MFPRSI
Notes to Other Information – Pension Liability
Supplementary Information:
Schedule of Cash Receipts, Disbursements, and Changes in
Cash Balances – Nonmajor Governmental Funds
Schedule of Cash Receipts, Disbursements, and Changes in
Cash Balances – Nonmajor Governmental Special Revenue Funds
Schedule of Cash Receipts, Disbursements, and Changes in
Cash Balances – Nonmajor Governmental Capital Project Funds
Schedule of Cash Receipts, Disbursements, and Changes in
Cash Balances – Nonmajor Proprietary Funds
Schedule of Receipts by Source and Disbursements by Function –
Governmental Funds

31
32
33
34
35
36
37-38
Schedule
1

39

2

40

3

41

4

42

5

43

Independent Auditor's Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards

44-45

Schedule of Findings

46-50

City of Charles City, Iowa
Officials
Name

Title

Term Expires

Dean Andrews

Mayor

December 2029

Jeff Otto
Phillip Knighten
Phoebe Pittman
Patrick Lumley
Krista Noah

Council Member
Council Member
Council Member
Council Member
Council Member

December 2027
December 2027
December 2029
December 2029
December 2029

Tyler Trout

City Administrator

Indefinite

Brittney Lentz

City Clerk

Indefinite

Brad Sloter

Attorney

Indefinite

1

Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council:
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business type
activities, each major fund and the aggregate remaining fund information of the City of Charles City, Iowa, as of
and for the year ended June 30, 2026, and the related Notes to Financial Statements, which collectively comprise
the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
cash basis financial position of the governmental activities, the business type activities, each major fund, and the
aggregate remaining fund information of the City of Charles City, as of June 30, 2026, and the respective changes
in cash basis financial position for the year then ended in accordance with the cash basis of accounting described
in Note 1.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
(GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States. Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of Financial Statements section of our report. We are required to be
independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Emphasis of Matter – Basis of Accounting
We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial
statements are prepared on the cash basis of accounting, which is a basis of accounting other than accounting
principles generally accepted in the United States of America. Our opinions are not modified with respect to this
matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with the cash basis of accounting described in Note 1, and for determining that the cash basis of accounting is an
acceptable basis for the preparation of the financial statements in the circumstances. Management is also
responsible for the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.

2

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the financial
statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of
time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we
identified during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. We previously audited, in accordance with the standards referred
to in the Auditor’s Responsibilities for the Audit of the Financial Statements section of this report, the financial
statements for the eight years ended June 30, 2025, and other auditors previously audited the financial statements
for the year ended June 30, 2017 (which are not presented herein) and expressed unmodified opinions on those
financial statements which were prepared on the cash basis of accounting. The supplementary information
included in Schedules 1 through 5, is presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with GAAS.
In our opinion, the supplementary information in Schedules 1 through 5 is fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in this report. The other information comprises the
Budgetary Comparison Information, the Schedules of the City’s Proportionate Share of the Net Pension Liability
and the Schedules of City Contributions on pages 31 through 38 but does not include the basic financial
3

statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are required
to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 9, 2026 on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that
report is solely to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing and not to provide an opinion on the effectiveness of the City’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.

T.P. Anderson & Company, P.C.
November 9, 2026
Humboldt, Iowa

4

Basic Financial Statements

City of Charles City, Iowa
Cash Basis Statement of Activities and Net Position
As of and for the year ended June 30, 2026

Program Receipts

Disbursements
Functions/Programs:
Governmental activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Total governmental activities

$

Business-type activities:
Water
Sewer
Other business-type activities
Total business-type activities
Total functions/programs
General Receipts and Transfers:
Property and other city tax levied for:
General purposes
Debt service
Tax increment financing
Local option sales tax
Property tax replacement
Hotel/motel and franchise tax
Unrestricted interest on investments
Loan and bond proceeds
Miscellaneous
Transfers
Total general receipts and transfers
Change in cash basis net position
Cash basis net position, beginning of year
Cash basis net position, end of year
Cash Basis Net Position
Restricted:
Nonexpendable:
Library trust
Expendable:
Employee benefits
Local option sales tax
Debt service
Other purposes
Unrestricted
Total cash basis net position
See notes to financial statements.

$

Charges for
Service

Operating Grants, Capital Grants,
Contributions, and Contributions, and
Restricted Interest Restricted Interest

3,092,761
1,593,307
367,734
1,407,796
1,059,077
740,255
1,129,067
4,893,388
14,283,385

73,308
295,356
125
368,789

38,046
1,126,370
320,720
63,831
49,286
1,598,253

83,084
163,992
247,076

3,502,547
1,905,211
1,432,943
6,840,701

3,839,417
2,545,924
1,094,267
7,479,608

213,238
213,238

-

21,124,086

7,848,397

1,811,491

247,076

Exhibit A

Net (Disbursements) Receipts and
Changes in Cash Basis Net Position

Governmental
Activities

Business-Type
Activities

Total

(2,981,407)
(466,937)
(47,014)
(1,048,609)
(1,058,952)
(607,885)
(1,129,067)
(4,729,396)
(12,069,267)

-

(2,981,407)
(466,937)
(47,014)
(1,048,609)
(1,058,952)
(607,885)
(1,129,067)
(4,729,396)
(12,069,267)

-

336,870
640,713
(125,438)
852,145

336,870
640,713
(125,438)
852,145

(12,069,267)

852,145

(11,217,122)

4,032,770
544,803
975,765
1,064,091
83,107
847,227
392,552
195,000
619,245
325,515
9,080,075

161,871
41,284
103,747
(325,515)
(18,613)

4,032,770
544,803
975,765
1,064,091
83,107
847,227
554,423
236,284
722,992
9,061,462

(2,989,192)

833,532

(2,155,660)

11,469,395

2,570,562

14,039,957

$

8,480,203

3,404,094

11,884,297

$

91,900

-

91,900

911,506
1,872,667
258,825
2,717,664
2,627,641

129,654
56,474
3,217,966

911,506
1,872,667
388,479
2,774,138
5,845,607

8,480,203

3,404,094

11,884,297

$

5

City of Charles City, Iowa
Statement of Cash Receipts, Disbursements,
and Changes in Cash Balances
Governmental Funds
As of and for the year ended June 30, 2026
Special Revenue
Employee
Benefits

General
Receipts:
Property tax
Local option sales tax
Tax increment financing
Other city tax
Licenses and permits
Use of money and property
Intergovernmental
Charges for service
Miscellaneous
Total receipts

$

Local Option
Sales Tax

American Rescue

2,721,563
962,898
159,835
237,802
151,163
335,386
253,080
4,821,727

1,173,203
105,440
34,257
1,312,900

1,064,091
73,568
1,137,659

51,222
51,222

2,410,647
220,192
1,191,238
216,716
621,342
4,660,135

682,630
231,924
184,310
92,571
1,191,435

-

-

Excess (deficiency) of receipts
over (under) disbursements

161,592

121,465

1,137,659

51,222

Other financing sources (uses):
Bond proceeds
Transfers in
Transfers out
Net other financing sources (uses)

195,000
600,268
(647,558)
147,710

-

(506,152)
(506,152)

(1,284,291)
(1,284,291)

Change in cash balances

309,302

121,465

631,507

(1,233,069)

3,829,888

790,041

1,241,160

1,233,069

$

4,139,190

911,506

1,872,667

-

$

-

-

-

-

$

538,999
93,442
3,506,749
4,139,190

911,506
911,506

1,872,667
1,872,667

-

Disbursements:
Operating:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Total disbursements

Cash balances, beginning of year
Cash balances, end of year
Cash Basis Fund Balances
Nonspendable
Restricted for:
Employee benefits
Local option sales tax
Debt service
Other purposes
Assigned
Unassigned
Total cash basis fund balances
See notes to financial statements.

Exhibit B

Capital Projects
Street
Improvements

City Hall / Ped
Mall Project

Debt Service

Nonmajor

Total

21,361
21,361

-

502,989
41,814
544,803

975,765
78,313
1,672,805
33,403
120,434
2,880,720

4,397,755
1,064,091
975,765
1,110,152
159,835
475,162
1,845,329
368,789
373,514
10,770,392

925,409
925,409

3,712,491
3,712,491

1,129,067
1,129,067

1,141,355
367,767
32,452
842,362
26,420
255,488
2,665,844

3,093,277
1,593,471
367,767
1,408,000
1,059,078
740,333
1,129,067
4,893,388
14,284,381

(904,048)

(3,712,491)

(584,264)

214,876

(3,513,989)

88,104
88,104

1,784,291
1,784,291

415,630
415,630

278,091
(402,868)
(124,777)

195,000
3,166,384
(2,840,869)
520,515

(815,944)

(1,928,200)

(168,634)

90,099

(2,993,474)

(40,000)

2,364,568

427,459

1,542,466

11,388,651

(855,944)

436,368

258,825

1,632,565

8,395,177

-

-

-

91,900

91,900

(855,944)
(855,944)

436,368
436,368

258,825
258,825

1,742,297
(201,632)
1,632,565

911,506
1,872,667
258,825
2,717,664
93,442
2,449,173
8,395,177

6

Exhibit C
City of Charles City, Iowa
Reconciliation of the Statement of Cash Receipts, Disbursements,
and Changes in Cash Balances to the Cash Basis Statement
of Activities and Net Position – Governmental Funds
As of and for the year ended June 30, 2026
Total governmental funds cash balances (page 6)

$

8,395,177

Amounts reported for governmental activities in the Cash Basis Statement of
Activities and Net Position are different because:
The Internal Service Fund is used by management to charge the costs of self-funding
the City's health insurance benefit plan to individual funds. A portion of the cash
balance of the Internal Service Fund is included in governmental activities in the Cash
Basis Statement of Activities and Net Position.

85,026

Cash basis net position of governmental activities (page 5)

$

8,480,203

Change in cash balances (page 6)

$ (2,993,474)

Amounts reported for governmental activities in the Cash Basis Statement of
Activities and Net Position are different because:
The Internal Service Fund is used by management to charge the costs of self-funding
the City's health insurance benefit plan to individual funds. A portion of the change in
the cash balance of the Internal Service Fund is reported with governmental activities
in the Cash Basis Statement of Activities and Net Position.
Change in cash basis net position of governmental activities (page 5)

See notes to financial statements.

7

4,282
$ (2,989,192)

Exhibit D
City of Charles City, Iowa
Statement of Cash Receipts, Disbursements,
and Changes in Cash Balances
Proprietary Funds
As of and for the year ended June 30, 2026
Internal
Service
Employee
Health

Enterprise
Water

Sewer

Nonmajor

Total

Operating receipts:
Charges for service
Miscellaneous
Total operating receipts

$ 3,839,417
84,202
3,923,619

2,545,924
9,903
2,555,827

1,094,267
9,642
1,103,909

7,479,608
103,747
7,583,355

Operating disbursements:
Business-type activities

1,683,488

1,040,641

1,361,650

4,085,779

924,060

Excess (deficiency) of operating receipts
over (under) operating disbursements

2,240,131

1,515,186

(257,741)

3,497,576

1,383

Noncapital subsidies:
Regional transit operating assistance
Transfers in
Transfers out
Total noncapital subsidies

(138,621)
(138,621)

(293,523)
(293,523)

213,238
106,629
319,867

213,238
106,629
(432,144)
(112,277)

-

Excess of operating receipts over operating
disbursements and noncapital subsidies

2,101,510

1,221,663

62,126

3,385,299

1,383

83,192
41,284
(1,031,682)
(787,575)

45,938
(716,142)
(148,536)

31,468
(71,374)

160,598
41,284
(1,747,824)
(1,007,485)

4,559
-

(1,694,781)

(818,740)

(39,906)

(2,553,427)

4,559

406,729

402,923

22,220

831,872

5,942

1,308,156

516,967

737,260

2,562,383

88,923

$ 1,714,885

919,890

759,480

3,394,255

$

94,865

$

59,707
860,183
919,890

759,480
759,480

129,654
56,474
3,208,127
3,394,255

$

94,865
94,865

Other nonoperating receipts (disbursements):
Interest on investments
Water revenue bond proceeds
Debt service
Capital projects
Net other nonoperating receipts
(disbursements)
Change in cash balances
Cash balances, beginning of year
Cash balances, end of year
Cash Basis Fund Balances
Restricted for:
Debt service
Other purposes
Unrestricted
Total cash basis fund balances

69,947
56,474
1,588,464
$ 1,714,885

See notes to financial statements.

8

$

$

924,803
640
925,443

Exhibit E
City of Charles City, Iowa
Reconciliation of the Statement of Cash Receipts, Disbursements,
and Changes in Cash Balances to the Cash Basis Statement
of Activities and Net Position – Proprietary Funds
As of and for the year ended June 30, 2026
Total enterprise funds cash balances (page 8)

$ 3,394,255

Amounts reported for business-type activities in the Cash Basis Statement of
Activities and Net Position are different because:
The Internal Service Fund is used by management to charge the costs of self-funding
the City's health insurance benefit plan to individual funds. A portion of the cash
balance of the Internal Service Fund is included in business type activities in the Cash
Basis Statement of Activities and Net Position.

9,839

Cash basis net position of business-type activities (page 5)

$

3,404,094

Change in cash balances (page 8)

$

831,872

Amounts reported for business-type activities in the Cash Basis Statement of
Activities and Net Position are different because:
The Internal Service Fund is used by management to charge the costs of self-funding
the City's health insurance benefit plan to individual funds. A portion of the change in
the cash balance of the Internal Service Fund is reported with business type activities
in the Cash Basis Statement of Activities and Net Position.
Change in cash basis net position of business-type activities (page 5)

See notes to financial statements.

9

1,660
$

833,532

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
(1)

Summary of Significant Accounting Policies
The City of Charles City is a political subdivision of the State of Iowa located in Floyd County. It was first
incorporated in 1869 and operates under the Home Rule provisions of the Constitution of Iowa. The City
operates under the Mayor-Council form of government with the Mayor and Council Members elected on a
non-partisan basis. The City provides numerous services to citizens including public safety, public works,
health and social services, culture and recreation, community and economic development, and general
government services. The City also provides water, sewer, and other utility services to its citizens.
A.

Reporting Entity
For financial reporting purposes, the City of Charles City has included all funds, organizations,
agencies, boards, commissions, and authorities. The City has also considered all potential
component units for which it is financially accountable and other organizations for which the nature
and significance of their relationship with the City are such that exclusion would cause the City's
financial statements to be misleading or incomplete. The Governmental Accounting Standards
Board has set forth criteria to be considered in determining financial accountability. These criteria
include appointing a voting majority of an organization's governing body, and (1) the ability of the
City to impose its will on that organization or (2) the potential for the organization to provide
specific benefits to or impose specific financial burdens on the City. The City has no component
units which meet the Governmental Accounting Standards Board criteria.
Jointly Governed Organizations
The City participates in several jointly governed organizations that provide goods or services to the
citizenry of the City but do not meet the criteria of a joint venture since there is no ongoing
financial interest or responsibility by the participating governments. City officials are members of
the following boards and commissions: Floyd County Assessor’s Conference Board, Floyd County
Emergency Management Commission, Floyd-Mitchell-Chickasaw County Solid Waste
Management Agency, and Floyd County Joint E911 Service Board.

B.

Basis of Presentation
Government-wide Financial Statement – The Cash Basis Statement of Activities and Net Position
reports information on all of the nonfiduciary activities of the City. For the most part, the effect of
interfund activity has been removed from this statement. Governmental activities, which are
supported by tax and intergovernmental receipts are reported separately from business type
activities, which rely to a significant extent on fees and charges for service.
The Cash Basis Statement of Activities and Net Position presents the City’s nonfiduciary
net position. Net position is reported in the following categories/components:
Nonexpendable restricted net position is subject to externally imposed
stipulations which require the cash balance to be maintained permanently by
the City, including the City’s Permanent Fund.
Expendable restricted net position results when constraints placed on the use
of cash balances are either externally imposed or are imposed by law through
constitutional provisions or enabling legislation.
Unrestricted net position consists of cash balances not meeting the definition
10

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
of the preceding categories. Unrestricted net position is often subject to
constraints imposed by management which can be removed or modified.
The Cash Basis Statement of Activities and Net Position demonstrates the degree to which the
direct disbursements of a given function are offset by program receipts. Direct disbursements are
those clearly identifiable with a specific function. Program receipts include 1) charges to
customers or applicants who purchase, use or directly benefit from goods, services or privileges
provided by a given function and 2) grants, contributions, and interest on investments restricted
to meeting the operational or capital requirements of a particular function. Property tax and other
items not properly included among program receipts are reported instead as general receipts.
Fund Financial Statements – Separate financial statements are provided for governmental funds
and proprietary funds. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements. All remaining
governmental and proprietary funds are aggregated and reported as nonmajor funds.
The City reports the following major governmental funds:
The General Fund is the general operating fund of the City. All general tax receipts from
general and emergency levies and other receipts not allocated by law or contractual
agreement to some other fund are accounted for in this fund. From the fund are paid the
general operating disbursements, the fixed charges, and the capital improvement costs
not paid from other funds.
Special Revenue:
The Employee Benefits Fund is used to account for the property tax collections
for employee benefits and the payment of those benefits.
The Local Option Sales Tax Fund is used to account for the local option sales tax
allocation from the State of Iowa to be used for public safety and street and
roadway improvements.
The American Rescue Fund is used to account for receipts and disbursements
intended for the use of the federal dollars to be used in accordance with grant
terms and conditions.
Capital Projects:
The Street Improvements Project Fund is used to account for all resources used
in the construction of street improvements.
The City Hall / Police Department Renovation Project Fund is used to account
for all resources used in the renovation of the City hall and police department
facilities.
The Debt Service Fund is utilized to account for property tax and other receipts to be
used for the payment of interest and principal on the City’s general long-term debt.

11

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
The City reports the following major proprietary funds:
The Enterprise, Water Fund accounts for operation and maintenance of the City’s water
system.
The Enterprise, Sewer Fund accounts for operation and maintenance of the City’s waste
water treatment and sanitary sewer system.
The City also reports the following proprietary fund:
An Internal Service Fund is utilized to account for the financing of goods or services
purchased by one department of the City and provided to other departments or agencies
on a cost-reimbursement basis.
C.

Measurement Focus and Basis of Accounting
The City maintains its financial records on the basis of cash receipts and disbursements and the
financial statements of the City are prepared on that basis. The cash basis of accounting does not
give effect to accounts receivable, accounts payable and accrued items. Accordingly, the financial
statements do not present financial position and results of operations of the funds in accordance
with U.S. generally accepted accounting principles.
Under the terms of grant agreements, the City funds certain programs by a combination of specific
cost-reimbursement grants, categorical block grants and general receipts. Thus, when program
disbursements are paid, there are both restricted and unrestricted cash basis net position available to
finance the program. It is the City’s policy to first apply cost-reimbursement grant resources to such
programs, followed by categorical block grants and then by general receipts.
When a disbursement in governmental funds can be paid using either restricted or unrestricted
resources, the City’s policy is generally to first apply the disbursement toward restricted fund
balance and then to less-restrictive classifications – committed, assigned and then unassigned fund
balances.
Proprietary funds distinguish operating receipts and disbursements from nonoperating items.
Operating receipts and disbursements are receipts and disbursements other than nonoperating
receipts and disbursements. Nonoperating receipts and disbursements are a) subsidies received and
provided, b) contributions to permanent or term endowments, c) receipts and disbursements related
to financing, d) resources from the disposal of capital assets and inventory and e) investment
income and disbursements. Subsidies are defined as a) resources received from another party or
fund 1) for which the proprietary fund does not provide goods and services to the other party or
fund and 2) directly or indirectly keep the proprietary fund’s current or future fees and charges
lower than they would be otherwise, b) resources provided to another party or fund 1) for which the
other party or fund does not provide goods and services to the proprietary fund and 2) are
recoverable through the proprietary fund’s current or future pricing policies and c) all other
transfers.

D.

Property Taxes and Governmental Cash Basis Fund Balances
The following accounting policies are followed in preparing the financial statements:

12

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
Property tax revenues recognized in the governmental funds become due and collectible in
September and March of the current fiscal year with a 1½% per month penalty for
delinquent payments; is based on January 1, 2024 assessed property valuations; is for the
tax accrual period July 1, 2025 through June 30, 2026 and reflects tax asking contained in
the budget certified to the City Council in April 2025.
In the governmental fund financial statements, cash basis fund balances are classified as
follows:
Nonspendable – Amounts which cannot be spent because they are legally or
contractually required to be maintained intact.
Restricted – Amounts restricted to specific purposes when constraints placed
on the use of the resources are either externally imposed by creditors,
grantors, state or federal laws, or imposed by law through constitutional
provisions or enabling legislation.
Committed – Amounts which can be used only for specific purposes pursuant
to constraints formally imposed by the City Council through ordinance or
resolution.
Assigned – Amounts the City Council intends to use for specific purposes.
Unassigned – All amounts not included in the preceding classifications.
E.

Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Other Information. During the
year ended June 30, 2026 disbursements did not exceed the amounts budgeted.

F.

Subsequent Events
Management has evaluated subsequent events through the date of the independent auditors’ report,
which is the date the financial statements were available to be issued.

(2)

Cash and Pooled Investments
The City’s deposits in banks at June 30, 2026 were entirely covered by federal depository insurance or by
the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for
additional assessments against the depositories to ensure there will be no loss of public funds.
The City is authorized by statute to invest public funds in obligations of the United States government, its
agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured
depository institutions approved by the City Council; prime eligible bankers acceptances; certain high rated
commercial paper; perfected repurchase agreements; certain registered open-end management investment
companies; certain joint investment trusts; and warrants or improvement certificates of a drainage district.
The City had no investments meeting the disclosure requirements of Governmental Accounting Standards
Board Statement No. 72.

13

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
Interest Rate Risk
The City’s investment policy limits the investment of operating funds (funds expected to be expended in the
current budget year or within 15 months of receipt) to instruments that mature within 397 days. Funds not
identified as operating funds may be invested in investments with maturities longer than 397 days, but the
maturities shall be consistent with the needs and use of the City.
(3)

Bonds, Notes and Leases Payable
A summary of changes in bonds and notes payable for the year ended June 30, 2026 is as follows:
Beginning
Balances

Increases

Decreases

Ending

Due Within

Balances

One Year

Governmental activities:
Urban Renewal Tax Increment

$ 1,202,000

-

250,000

952,000

258,000

General Obligation Bonds

7,252,500

-

289,500

6,963,000

526,000

General Obligation Notes

2,333,000

-

323,163

2,009,837

331,815

37,884

29,093

30,158

36,819

12,371

10,825,384

29,093

892,821

9,961,656

1,128,186

7,177,698

41,284

2,046,982*

5,172,000

929,000

14,277,000

-

511,000

13,766,000

518,000

21,454,698

41,284

2,557,982

18,938,000

1,447,000

Lease agreement
Governmental activities total

$

Business type activities:
Water Revenue Notes

$

Sewer Revenue Notes
Business type activities total

$

*Includes $1,143,739 of principal forgiven. See the Revenue Notes disclosure.
General Obligation Debt
A summary of the City’s June 30, 2026 general obligation bonds and notes payable is as follows:
Year
Ending
June 30,
2027
2028
2029
2030
2031
2032-2036
2037-2041
Total

Corporate Purpose Note
Issued Nov. 9, 2012
Interest
Rates
1.75%
1.75%
1.75%
1.75%
1.75%
1.75%
1.75%

Principal
$
54,000
55,000
56,000
57,000
59,000
60,000
$ 341,000

Interest
5,968
5,023
4,060
3,080
2,083
1,050
21,264

14

Water Improvement Bond
Issued Sept. 3, 2015
Interest
Rates
Principal
Interest
3.50%
$ 145,000
14,000
3.50%
145,000
8,925
3.50%
110,000
3,850
$ 400,000
26,775

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
Waste Water Project
Issued May 1, 2020

Year
Ending
June 30,
2027
2028
2029
2030
2031
2032-2036
2037-2041
Total

Interest
Rates
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%
2.00%

Interest
38,115
35,472
32,795
30,065
27,282
93,013
19,268
276,010

Corporate Purpose Note
Issued Jul. 20, 2023

Year
Ending
June 30,
2027
2028
2029
2030
2031
2032-2036
2037-2041
Total
Year
Ending
June 30,
2027
2028
2029
2030
2031
2032-2036
2037-2041
Total

Principal
$ 151,000
153,000
156,000
159,000
162,000
850,000
547,000
$ 2,178,000

Bridge Improvements
Issued Jan. 12, 2021

Interest
Rates
5.75%
5.75%
5.75%
5.75%
5.75%
5.75%
%

Principal
48,815
51,623
54,591
57,729
61,049
205,030
$ 478,837

$

Interest
26,130
23,242
20,188
16,959
13,544
18,123
118,186

Interest
Rates
1.75%
1.75%
1.75%
1.75%
1.75%

Principal
229,000
233,000
238,000
243,000
247,000
$ 1,190,000
$

Interest
20,825
16,818
12,740
8,575
4,322
63,280

City Hall/Pool Renovation
Issued Feb. 19, 2025
Interest
Rates
Principal
Interest
5.00%
$ 230,000
193,950
5.00%
240,000
182,450
5.00%
250,000
170,450
5.00%
265,000
157,950
5.00%
275,000
144,700
4.00-5.00%
1,590,000
512,200
4.00-5.00%
1,535,000
156,600
$ 4,385,000
1,518,300

Total
Principal
848,815
869,623
856,591
772,729
796,049
2,670,030
2,159,000
$ 8,972,837

$

Interest
299,172
262,272
244,564
217,250
192,710
630,204
170,776
2,016,948

Total
1,147,987
1,131,895
1,101,156
989,979
988,759
3,300,234
2,329,776
10,989,785

On November 9, 2012, the City issued $1,400,000 of general obligation notes with an interest rate of
1.75%. The bonds were issued for various capital improvement projects. During the year ended June 30,
2026, the City paid $53,000 of principal and $7,880 of interest on the notes.
On September 3, 2015, the City issued $2,125,000 of general obligation bonds with interest rates ranging
from 2.0%-3.5%. The bonds were issued for improvements to the municipal waterworks system. During
the year ended June 30, 2026, the City paid $140,000 of principal and $18,700 of interest on the bonds.
On June 15, 2016, the City issued $792,000 of general obligation notes with interest rates ranging from
1.85-2.45%. The bonds were issued for the purchase of a new fire truck. During the year ended June 30,
2026, the City paid $142,000 of principal and $2,606 of interest on the notes.
On May 1, 2020, the City issued $3,000,000 of general obligation bonds with an interest rate of 2.0%. The
bonds were issued for a waste water project. During the year ended June 30, 2026, the City paid $149,500
15

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
of principal and $46,550 of interest on the bonds.
On January 12, 2021, the City issued general obligation notes up to $1,533,000 for a bridge improvement
project with an interest rate of 1.75%. During the year ended June 30, 2026, the City paid $82,000 of
principal and $22,258 of interest on the notes.
On July 20, 2023, the City issued $525,000 of general obligation notes with an interest rate of 5.75%. The
bonds were issued for costs of the removal of diseased and damaged trees. During the year ended June 30,
2026, the City paid $46,163 of principal and $28,860 of interest on the notes.
On February 19, 2025, the City issued $4,385,000 of general obligation notes with an interest rate ranging
from 4.00% to 5.00%. The bonds were issued for a City Hall and pool renovation project. During the year
ended June 30, 2026, the City paid $-0- of principal and $194,550 of interest on the notes.
Urban Renewal Tax Increment Financing Revenue Bonds
The City’s June 30, 2026 urban renewal tax increment financing revenue bonds payable is as follows:
Year
Ending
June 30,
2027
2028
2029
2030
Total

Tax Increment Fin.
Issued Jan. 14, 2020
Interest
Rates
3.19%
3.19%
3.19%
3.19%

Principal
$ 258,000
266,000
275,000
153,000
$ 952,000

Interest
30,369
22,139
13,658
4,875
71,041

The City issued Urban Renewal tax increment financing revenue bonds in January 2020 for the purpose of
refurbishing projects within the urban renewal district. The bonds are payable solely from the TIF receipts
generated by increased property values in the City’s TIF district and credited to the Special Revenue, Urban
Renewal Tax Increment Fund in accordance with Chapter 403.19 of the Code of Iowa. TIF receipts are
generally projected to produce 100% of the debt service requirements over the life of the bonds. The
proceeds of the urban renewal tax increment financing revenue bonds shall be expended only for purposes
which are consistent with the plans of the City’s urban renewal area. The bonds and notes are not a general
obligation of the City. However, the debt is subject to the constitutional debt limitation of the City. Total
principal and interest remaining on the bonds is $1,023,041, payable through June, 2030. For the current
year, principal and interest paid and total TIF receipts were $288,344 and $975,765, respectively.
Revenue Notes
A summary of the City’s June 30, 2026 revenue notes payable is as follows:
Year
Ending
June 30,
2027
2028
2029
2030
2031

Sewer Disinfection
Issued Jun. 24, 2016
Interest
Rates
1.75%
1.75%
1.75%
1.75%
1.75%

Principal
$
87,000
89,000
91,000
93,000
95,000

Sewer Improvements
Issued Sept. 8, 2020
Interest
16,783
15,260
13,703
12,110
10,482

16

Interest
Rates
1.40%
1.40%
1.40%
1.40%
1.40%

$

Principal
431,000
437,000
443,000
450,000
456,000

Interest
147,281
142,324
137,299
132,204
127,029

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
2032-2036
2037-2041
2042-2046
2047-2051
Total

Year
Ending
June 30,
2027
2028
2029
2030
2031
2032-2036
2037-2041
2042-2046
2047-2051
Total

Year
Ending
June 30,
2027
2028
2029
2030
2031
2032-2036
2037-2041
2042-2046
2047-2051
Total

1.75%

$

504,000
959,000

26,810
95,148

1.40%
1.40%
1.40%
1.40%

Water Plant Expansion
Issued Feb. 11, 2009
Interest
Rates
1.75%
1.75%
1.75%

Principal
$
768,000
793,000
819,000
$ 2,380,000

2,377,000
2,548,000
2,734,000
2,931,000
$ 12,807,000
Water Meters
Issued Nov. 18, 2009

Interest
41,650
28,210
14,332
84,192

Interest
Rates
1.75%
1.75%
1.75%
1.75%

Water Improvements
Issued Nov. 18, 2022
Interest
Rates
1.75%
1.75%
1.75%
1.75%
1.75%
1.75%
1.75%
11.75%

Principal
137,000
140,000
142,000
145,000
147,000
775,000
845,000
359,000
$ 2,690,000
$

555,024
414,460
263,718
102,097
2,021,436

Principal
24,000
25,000
26,000
27,000
$ 102,000
$

Interest
1,785
1,365
928
472
4,550

Total
Interest
47,075
44,678
42,228
39,742
37,205
146,492
76,300
9,450
443,170

Principal
$ 1,447,000
1,484,000
1,521,000
715,000
698,000
3,656,000
3,393,000
3,093,000
2,931,000
$ 18,938,000

Interest
254,574
231,837
208,490
184,528
174,716
728,326
490,760
273,168
102,097
2,648,496

Total
1,701,574
1,715,837
1,729,490
899,528
872,716
4,384,326
3,883,760
3,366,168
3,033,097
21,586,496

On June 24, 2016, the City issued $1,745,000 of sewer revenue notes to provide for the construction and
improvements to the sanitary sewer system. The notes bear interest at 1.75%, per annum, and are payable
through 2036. During the year ended June 30, 2026, the City paid principal of $86,000 and interest of
$20,900.
On September 8, 2020, the City issued $15,575,000 of sewer revenue notes to provide for the construction
and extension to the sanitary sewer system, $1,000,000 of which has been forgiven. The notes bear interest
at 1.40%, per annum, and are payable through 2051. During the year ended June 30, 2026, the City paid
principal of $425,000 and interest of $184,242.
The City has pledged future sewer customer receipts net of specific operating disbursements to repay
$1,745,000 of revenue bonds issued in June 2016 and $15,575,000 of revenue bonds issued in September
2020. The notes are payable solely from sewer customer net receipts and are payable through 2036 and
2051 on the 2016 series and the 2020 series, respectively. The total principal and interest remaining to be
paid on the notes is $15,882,584. For the current year, principal and interest paid and total customer net
receipts were $716,142 and $1,515,186, respectively.
17

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
On February 11, 2009, the City issued $9,800,000 of water revenue notes to provide for the construction of
the infrastructure of the water system for the purpose of providing safe drinking water. The notes bear
interest at 1.75%, per annum, and are payable through 2029. During the year ended June 30, 2026, the City
paid principal of $744,000 and interest of $62,480.
On November 18, 2009, the City issued $404,000 of water revenue notes to provide for the construction of
certain improvements to the water system. The notes bear interest at 1.75%, per annum, and are payable
through 2030. During the year ended June 30, 2026, the City paid principal of $24,000 and interest of
$2,520.
On November 18, 2022, the City issued $4,750,000 of water revenue notes to provide for the construction
of certain improvements and extensions to the water system. During the year ended June 30, 2026, the City
received $41,284 in proceeds. Interest will be due semiannually at 1.75% and principal will be paid
annually until 2043. During the year ended June 30, 2026, $1,143,739 of the outstanding principal was
forgiven in accordance with the terms of the loan agreement. The forgiveness did not result in a cash receipt
or disbursement and is not reflected in the City's Statement of Cash Receipts, Disbursements, and Changes
in Cash Balances. During the year ended June 30, 2026, the City paid principal of $135,243 and interest of
$63,439 on the notes.
The City has pledged future water customer receipts net of specific operating disbursements to repay
$9,800,000 of revenue bonds issued in February 2009, $404,000 of revenue bonds issued in November
2009 and $4,750,000 of revenue bonds issued November 2022. The notes are payable solely from water
customer net receipts and are payable through 2029, 2030 and 2043, respectively. The total principal and
interest remaining to be paid on the notes is $5,703,912. For the current year, principal and interest paid and
total customer net receipts were $1,031,682 and $2,240,131 respectively.
The resolution providing for the issuance of the enterprise fund revenue bonds includes the following
provisions:
(a) The bond will only be redeemed from the future earnings of the enterprise activity, and the bond
holders hold a lien on the future earnings of the funds.
(b) The notes require the system generate net revenues equal to at least 110% of the current year
principal and interest installment.
(c) Sufficient monthly transfers shall be made to a separate sewer revenue note sinking account within
the Enterprise Funds for the purpose of making the note principal and interest payments when due.
Lease Agreement
On November 30, 2024 the City entered into lease agreements for buildings to temporarily house City Hall
and the Police Department during a renovation project. The agreements require monthly payments of
$1,400 and $1,200 over 24 months, with an implicit rate of 8.75% and a final payment on September 30,
2026. During the year ended June 30, 2026, the City paid principal of $29,031 and interest of $2,169.
Future principal and interest payments are as follows:
Year Ended June 30,
2027
Total

Principal
$
8,853
$
8,853

18

Interest
147
147

Total
$
9,000
$
9,000

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
On February 4, 2026 the City entered into a lease agreement for the storage of carbon dioxide. The
agreements require monthly payments of $425 over 84 months, with an implicit rate of 6.00% and a final
payment on February 4, 2033. During the year ended June 30, 2026, the City paid principal of $1,127 and
interest of $573. Future principal and interest payments are as follows:
Year Ended June 30,
2027
2028
2029
2030
2031
2032-2033
Total

(4)

Principal
$
3,518
3,735
3,965
4,209
4,469
8,070
$
27,966

Interest
1,582
1,365
1,135
891
631
430
6,034

Total
$
5,100
5,100
5,100
5,100
5,100
8,500
$
34,000

Pension Plans
Iowa Public Employees Retirement System (IPERS)
Plan Description – IPERS membership is mandatory for employees of the City, except for those covered by
another retirement system. Employees of the City are provided with pensions through a cost-sharing
multiple employer defined benefit pension plan administered by the Iowa Public Employees’ Retirement
System (IPERS). IPERS issues a stand-alone financial report which is available to the public by mail at PO
Box 9117, Des Moines, Iowa 50306 or at www.ipers.org.
IPERS benefits are established under Iowa Code Chapter 97B and the administrative rules thereunder.
Chapter 97B and the administrative rules are the official plan documents. The following brief description is
provided for general informational purposes only. Refer to the plan documents for more information.
Pension Benefits – A regular member may retire at normal retirement age and receive monthly benefits
without an early-retirement reduction. Normal retirement age is age 65, any time after reaching age 62 with
20 or more years of covered employment or when the member’s years of service plus the member’s age at
the last birthday equals or exceeds 88, whichever comes first. These qualifications must be met on the
member’s first month of entitlement to benefits. Members cannot begin receiving retirement benefits before
age 55. The formula used to calculate a regular member’s monthly IPERS benefit includes:
 A multiplier based on years of service.
 The member’s highest five-year average salary, except members with service before June 30, 2012
will use the highest three-year average salary as of that date if it is greater than the highest five-year
average salary.
Protection occupation members may retire at normal retirement age, which is generally age 55, and may
retire any time after reaching age 50 with 22 or more years of covered employment.
The formula used to calculate a protection occupation member’s monthly IPERS benefit includes:



60% of average salary after completion of 22 years of service, plus an additional 1.5% of average
salary for more than 22 years of service but not more than 30 years of service.
The member’s highest three-year average salary.

If a member retires before normal retirement age, the member’s monthly retirement benefit will be
permanently reduced by an early-retirement reduction. The early-retirement reduction is calculated
19

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the
reduction is 0.25% for each month the member receives benefits before the member’s earliest normal
retirement age. For service earned on or after July 1, 2012, the reduction is 0.50% for each month the
member receives benefits before age 65.
Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same
for the rest of the member’s lifetime. However, to combat the effects of inflation, retirees who began
receiving benefits prior to July 1990 receive a guaranteed dividend with their regular November benefit
payments.
Disability and Death Benefits – A vested member who is awarded federal Social Security disability or
Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability
benefits are not reduced for early retirement. If a member dies before retirement, the member’s beneficiary
will receive a lifetime annuity or a lump-sum payment equal to the present actuarial value of the member’s
accrued benefit or calculated with a set formula, whichever is greater. When a member dies after
retirement, death benefits depend on the benefit option the member selected at retirement.
Contributions – Contribution rates are established by IPERS following the annual actuarial valuation
which applies IPERS’ Contribution Rate Funding Policy and Actuarial Amortization Method. State statute
limits the amount rates can increase or decrease each year to 1 percentage point. IPERS Contribution Rate
Funding Policy requires the actuarial contribution rate be determined using the “entry age normal”
actuarial cost method and the actuarial assumptions and methods approved by the IPERS Investment
Board. The actuarial contribution rate covers normal cost plus the unfunded actuarial liability payment
based on a 30-year amortization period. The payment to amortize the unfunded actuarial liability is
determined as a level percentage of payroll based on the Actuarial Amortization Method adopted by the
Investment Board.
In fiscal year 2026, pursuant to the required rate, regular members contributed 6.29% of covered payroll
and the City contributed 9.44% of covered payroll, for a total rate of 15.73%. Protection occupation
members contributed 6.335% of covered payroll and the City contributed 9.185% of covered payroll, for a
total rate of 15.52%.
The City’s contributions to IPERS for the year ended June 30, 2026 totaled $227,314.
Net Pension Liability, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of
Resources Related to Pensions – At June 30, 2026, the City reported a liability of $641,202 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2025
and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportion of the net pension liability was based on the City’s share of
contributions to IPERS relative to the contributions of all IPERS participating employers. At June 30,
2025, the City’s proportion was 0.027606%, which was a decrease of 0.000193% from its proportion
measured as of June 30, 2024.
For the year ended June 30, 2026, the City’s pension expense, deferred outflows of resources, and deferred
inflows of resources totaled $(13,363), $379,668 and $361,884, respectively.
There were no non-employer contributing entities to IPERS.
Actuarial Assumptions – The total pension liability in the June 30, 2025 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the measurement:
20

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
Rate of inflation
(effective June 30, 2017)
Rates of salary increase
(effective June 30, 2017)
Long-term investment rate of return
(effective June 30, 2017)
Wage growth
(effective June 30, 2017)

2.60% per annum.
3.25 to 16.25% average, including inflation.
Rates vary by membership group.
7.00% compounded annually, net of investment
expense, including inflation.
3.25% per annum, based on 2.60% inflation
and 0.65% real wage inflation.

The actuarial assumptions used in the June 30, 2025 valuation were based on the results of a quadrennial
experience study covering the period of July 1, 2017 through June 30, 2021.
Mortality rates used in the 2025 valuation were based on the PubG-2010 mortality tables with future
mortality improvements modeled using Scale MP-2021
The long-term expected rate of return on IPERS’ investments was determined using a building-block
method in which best-estimate ranges of expected future real rates (expected returns, net of investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the
long-term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation. The target allocation and best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
Domestic equity
International equity
Global smart beta equity
Core plus fixed income
Public credit
Cash
Private equity
Private real assets
Private credit
Total

Asset
Allocation
021.0%
013.0%
5.0
025.0%
003.0%
001.0%
017.0%
009.0%
006.0%
100.0%

Long-Term Expected
Real Rate of Return
( 3.33%
4.99
3.87
2.84
(0 4.21)%
1.24%
( 7.68)%
(0 4.62)%
(0 6.23)%

Discount Rate – The discount rate used to measure the total pension liability was 7.00%. The projection of
cash flows used to determine the discount rate assumed employee contributions will be made at the
contractually required rate and contributions from the City will be made at contractually required rates,
actuarially determined. Based on those assumptions, IPERS’ fiduciary net position was projected to be
available to make all projected future benefit payments of current active and inactive employees.
Therefore, the long-term expected rate of return on IPERS’ investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
– The following presents the City’s proportionate share of the net pension liability calculated using the
discount rate of 7.00%, as well as what the City’s proportionate share of the net pension liability would be
if it were calculated using a discount rate that is 1% lower (6.00%) or 1% higher (8.00%) than the current
rate.

21

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
1%
Decrease
(6.00%)
City’s proportionate share of
the net pension liability

$

2,121,822

Discount
Rate
(7.00%)
641,202

1%
Increase
(8.00%)
(597,901)

IPERS’ Fiduciary Net Position – Detailed information about IPERS’ fiduciary net position is available in
the separately issued IPERS financial report which is available on IPERS’ website at www.ipers.org.
Municipal Fire and Police Retirement System of Iowa (MFPRSI)
Plan Description – MFPRSI membership is mandatory for fire fighters and police officers covered by the
provisions of Chapter 411 of the Code of Iowa. Employees of the City are provided with pensions through
a cost-sharing multiple employer defined benefit pension plan administered by MFPRSI. MFPRSI issues a
stand-alone financial report which is available to the public by mail at 7155 Lake Drive, Suite #201, West
Des Moines, Iowa 50266 or at www.mfprsi.org.
MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules
thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents.
The following brief description is provided for general informational purposes only. Refer to the plan
documents for more information.
Pension Benefits – Members with 4 or more years of service are entitled to pension benefits beginning at
age 55. Full-service retirement benefits are granted to members with 22 years of service, while partial
benefits are available to those members with 4 to 22 years of service based on the ratio of years completed
to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a refund of their
contribution only, with interest, for the period of employment.
Benefits are calculated based upon the member’s highest 3 years of compensation. The average of these 3
years becomes the member’s average final compensation. The base benefit is 66% of the member’s average
final compensation. Members who perform more than 22 years of service receive an additional 2% of the
member’s average final compensation for each additional year of service, up to a maximum of 8 years.
Survivor benefits are available to the beneficiary of a retired member according to the provisions of the
benefit option chosen, plus an additional benefit for each child. Survivor benefits are subject to a minimum
benefit for those members who chose the basic benefit with a 50% surviving spouse benefit.
Active members at least 55 years of age with 22 or more years of service have the option to participate in
the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member who is
otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a 3-, 4- or
5-year DROP period. When electing to participate in DROP, the member signs a contract stating the
member will retire at the end of the selected DROP period. During the DROP period, the member’s
retirement benefit is frozen, and a DROP benefit is credited to a DROP account established for the member.
Assuming the member completes the DROP period, the DROP benefit is equal to 52% of the member’s
retirement benefit at the member’s earliest date eligible and 100% if the member delays enrollment for 24
months. At the member’s actual date of retirement, the member’s DROP account will be distributed to the
member in the form of a lump sum or rollover to an eligible plan.
Disability and Death Benefits – Disability benefits may be either accidental or ordinary. Accidental
disability is defined as a permanent disability incurred in the line of duty, with benefits equivalent to the
greater of 60% of the member’s average final compensation or the member’s service retirement benefit
calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the
greater of 50% of the member’s average final compensation for those with 5 or more years of service or the
22

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
member’s service retirement benefit calculation amount and 25% of average final compensation for those
with less than 5 years of service.
Death benefits are similar to disability benefits. Benefits for accidental death are 50% of the average final
compensation of the member plus an additional amount for each child, or the provisions for ordinary death.
Ordinary death benefits consist of a pension equal to 40% of the average final compensation of the member
plus an additional amount for each child, or a lump-sum distribution to the designated beneficiary equal to
50% of the previous year’s earnable compensation of the member or equal to the amount of the member’s
total contributions plus interest.
Benefits are increased annually in accordance with Chapter 411.6 of the Code of Iowa, which provides a
standard formula for the increases.
The surviving spouse or dependents of an active member who dies due to a traumatic personal injury
incurred in the line of duty receives a $100,000 lump-sum payment.
Contributions – Member contribution rates are set by state statute. In accordance with Chapter 411 of the
Code of Iowa, the contribution rate was 9.675% of earnable compensation for the year ended June 30, 2026.
Employer contribution rates are based upon an actuarially determined normal contribution rate and set by
state statute. The required actuarially determined contributions are calculated on the basis of the entry age
normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of Iowa.
The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current
plan assets, with such total divided by 1% of the actuarially determined present value of prospective future
compensation of all members, further reduced by member contributions and state appropriations. Under the
Code of Iowa, the City’s contribution rate cannot be less than 17.00% of earnable compensation. The
contribution rate was 22.555% for the year ended June 30, 2026.
The City’s contributions to MFPRSI for the year ended June 30, 2026 totaled $269,242.
If approved by the State Legislature, state appropriations may further reduce the City’s contribution rate, but
not below the minimum statutory contribution rate of 17.00% of earnable compensation. The State of Iowa,
therefore, is considered to be a non-employer contributing entity in accordance with the provisions of
Governmental Accounting Standards Board Statement No. 67, Financial Reporting for Pension Plans.
There were no state appropriations to MFPRSI during the year ended June 30, 2026.
Net Pension Liability, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions – At June 30, 2026, the City reported a liability of $1,887,747 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2025
and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportion of the net pension liability was based on the City’s share of
contributions to the MFPRSI relative to the contributions of all MFPRSI participating employers. At June
30, 2025, the City’s proportion was 0.292393%, which was an increase of 0.009906% from its proportion
measured as of June 30, 2024.
For the year ended June 30, 2026, the City’s pension expense, deferred outflows of resources, and deferred
inflows of resources totaled $188,740, $506,912 and ($138,745) respectively.
Actuarial Assumptions – The total pension liability in the June 30, 2025 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the measurement:
23

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
Rate of inflation
Rates of salary increase
Investment rate of return

3.00% per annum.
3.75 to 15.11%, including inflation.
7.50%, net of investment expense, including inflation.

The actuarial assumptions used in the June 30, 2025 valuation were based on the results of an actuarial
experience study for the period July 1, 2012 through June 30, 2022.
Mortality rates were based on the RP-2014 Blue Collar Healthy Annuitant Table with males set forward
zero years, females set forward two years and disabled individuals set-forward three years (male only rates),
with generational projection of future mortality improvement with 50% of Scale BB beginning in 2017.
The long-term expected rate of return on MFPRSI investments was determined using a building-block
method in which best-estimate ranges of expected future real rates (i.e., expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. The best estimates of geometric real
rates of return for each major asset class included in the pension plan’s target asset allocation are
summarized in the following table:
Long-Term Expected
Real Rate of Return
4.7%
7.2%
7.2%
7.3%
5.2%
6.4%
10.0%
6.9%
9.0%
9.9%

Asset Class
Broad Fixed Income
Broad U.S. Equity
Global Equity
Broad Non-US Equity
Managed Futures
Core Real Estate
Opportunistic Real Estate
Global Infrastructure
Private Credit
Private Equity

Discount Rate – The discount rate used to measure the total pension liability was 7.50%. The projection of
cash flows used to determine the discount rate assumed contributions will be made at 9.675% of covered
payroll and the City’s contributions will be made at rates equal to the difference between actuarially
determined rates and the member rate. Based on those assumptions, the MFPRSI’s fiduciary net position
was projected to be available to make all projected future benefit payments to current plan members.
Therefore, the long-term expected rate of return on MFPRSI’s investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
– The following presents the City’s proportionate share of the net pension liability calculated using the
discount rate of 7.50%, as well as what the City’s proportionate share of the net pension liability would be
if it were calculated using a discount rate 1% lower (6.50%) or 1% higher (8.50%) than the current rate.
1%
Decrease
(6.50%)
City’s proportionate share of
the net pension liability

$

3,379,745
24

Discount
Rate
(7.50%)
1,887,747

1%
Increase
(8.50%)
653,320

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
MFPRSI’s Fiduciary Net Position – Detailed information about MFPRSI’s fiduciary net position is
available in the separately issued MFPRSI financial report which is available on MFPRSI’s website at
www.mfprsi.org.
(5)

Other Postemployment Benefits (OPEB)
Plan Description – The City operates a single-employer health benefit plan which provides
medical/prescription drug benefits for employees, retirees and their spouses. Group insurance benefits are
established under Iowa Code Chapter 509A.13. The City currently finances the benefit plan on a pay-asyou-go basis. For the year ended June 30, 2026, the City contributed $802,310 and plan members eligible
for benefits contributed $122,493 to the plan. At June 30, 2026, no assets have been accumulated in a trust
that meets the criteria in paragraph 4 of GASB Statement No. 75.
OPEB Benefits – Individuals who are employed by the City and are eligible to participate in the group
health plan are eligible to continue healthcare benefits upon retirement. Retirees under age 65 pay the same
premium for the medical/prescription drug benefits as active employees, which results in an implicit rate
subsidy.
Retired participants must be age 55 or older at retirement, with the exception of special service participants
who must be age 50 with 22 years of service. At June 30, 2026, there were 43 active and no retired
members covered by the benefit terms.

(6)

Compensated Absences
City employees accumulate a limited amount of earned but unused vacation, compensatory time, personal
time, and sick leave hours for subsequent use or for payment upon termination, retirement, or death.
Because the City prepares its financial statements on the cash basis of accounting, compensated absences
are recognized as disbursements when the leave is used or paid. At June 30, 2026, the City’s estimated
obligation for accumulated vacation, compensatory time, personal time and sick leave attributable to
services already rendered and more likely than not to be used, paid, or otherwise settled was measured using
employees’ rates of pay in effect at that date. The estimate included applicable salary-related payments
directly and incrementally associated with the leave. The estimated obligation consisted of the following:
Type of Benefit
Vacation
Compensatory time
Personal time
Sick leave
Total

(7)

Amount
$ 128,385
29,514
3,029
582,591
$ 743,519

Interfund Transfers
The detail of interfund transfers, for the year ended June 30, 2026 is as follows:
Transfer to

Transfer from

General

Special Revenue:
FGP Federal Administrative
Riverside Tax Increment Financing
Southwest Bypass Tax Increment Financing
South Grand Tax Increment Financing

25

Amount
3,000
67,387
54,856
55,060

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
Local Option Sales Tax
Cablevision
Enterprise:
Water
Sewer

106,409
78,000
138,154
97,402
600,268

Special Revenue:
CVTC

Special Revenue:
Road Use Tax

44,711

Special Revenue:
LMI Set Aside

Special Revenue:
South Grand Tax Increment Financing

29,190

Debt Service

Special Revenue:
Local Option Sales Tax

219,580

Enterprise:
Sewer
Capital Projects:
Street Improvements

General
Special Revenue:
Local Option Sales Tax

Capital Projects:
City Hall Project

General
ARPA

Capital Projects:
Main Street Bridge

Special Revenue:
Local Option Sales Tax

Capital Projects:
Bike Trail Ex.

General
Special Revenue:
Local Option Sales Tax
Capital Projects:
CW Bridge

Enterprise:
Transit Service
Enterprise:
Fire Extinguisher

196,050
415,630
28,104
60,000
88,104
500,000
1,284,291
1,784,291
52,912
13,948
67,251
70,079
151,278

General

105,098

General
Special Revenue:
Road Use Tax
Enterprise:
Sewer
Water

408
585
71
467
1,531
$

3,273,013

Transfers generally move resources from the fund statutorily required to collect the resources to the fund
statutorily required to disburse the resources.
26

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
(8)

Risk Management
The City is exposed to various risks of loss related to torts; theft, damage to and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. These risks are covered by the
purchase of commercial insurance. The City assumes liability for any deductibles and claims in excess of
coverage limitations. Settled claims from these risks have not exceeded commercial insurance coverage
in any of the past three fiscal years.

(9)

Deficit Balances
The following funds had deficit balances at June 30, 2026:
Fund Description
Special Revenue, CVTC Operations
Capital Projects, Street Improvements
Capital Projects, IPC/Sponsored
Capital Projects, Arboretum Project
Capital Projects, Main Street Bridge Project
Capital Projects, RRXing N Grand
Capital Projects, RRXing Iowa/Lane
Capital Projects, RRXing Brackett
Enterprise, Transit Service

Balance
(15,068)
(855,944)
(10,946)
(63,966)
(6,678)
(52,912)
(21,642)
(30,420)
(21,001)

The City is aware of the deficits and is actively working to eliminate them.
(10)

Development Agreement
The City has entered into the following development agreements:
Mike Molstead Motors – The City agreed to pay an amount not to exceed $110,000 over a 5-year period
starting in December 2023. During the year ended June 30, 2026, the City rebated $35,778 of incremental
property tax. At June 30, 2026, the remaining balance was $31,549.
Cambrex – The City agreed to pay an amount not to exceed $575,000 over a 9-year period starting in
October 2020. During the year ended June 30, 2026, the City rebated $52,955 of incremental property tax.
At June 30, 2026, the remaining balance was $151,188.
Cambrex – The City agreed to pay an amount not to exceed $400,000 over a 5-year period starting in
December 2025. During the year ended June 30, 2026, the City rebated $43,700 of incremental property
tax. Effective June 15, 2026, the City and Cambrex terminated this agreement, and no further payments are
due under it.
Zoetis – The City agreed to pay an amount not to exceed $1,850,000 over an 8-year period starting in
March 2018. During the year ended June 30, 2026, the City rebated $250,181 of incremental property tax.
At June 30, 2026, the remaining balance was $889,189.
Zoetis – The City agreed to pay an amount not to exceed $7,600,000 over an 8-year period starting in
December 2025. During the year ended June 30, 2026, the City rebated $91,076 of incremental property
tax. At June 30, 2026, the remaining balance was $7,508,924.
27

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
Croell – The City agreed to pay an amount not to exceed $225,000 over a 9-year period starting in January
2020. During the year ended June 30, 2026, the City rebated $1,880 of incremental property tax. At June
30, 2026, the remaining balance was $0.
Birkwood Village – The City agreed to pay an amount not to exceed $2,000,000 over a 10-year period
starting in December 2024. During the year ended June 30, 2026, the City rebated $0 of incremental
property tax. At June 30, 2026, the remaining balance was $2,000,000.
MM Real Estate Holdings – The City agreed to pay an amount not to exceed $125,000 over a 5-year period
starting in December 2024. During the year ended June 30, 2026, the City rebated $15,948 of incremental
property tax. At June 30, 2026, the remaining balance was $96,600.
(11)

Tax Abatements
Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax
revenues that results from an agreement between one or more governments and an individual or entity in
which (a) one or more governments promise to forgo tax receipts to which they are otherwise entitled and
(b) the individual or entity promises to take a specific action after the agreement has been entered into that
contributes to economic development or otherwise benefits the governments or the citizens of those
governments.
City Tax Abatements
The City provides tax abatements for urban renewal and economic development projects with tax increment
financing as provided for in Chapters 15A and 403 of the Code of Iowa. For these types of projects, the City
enters into agreements with developers which require the City, after developers meet the terms of the
agreements, to rebate a portion of the property tax paid by the developers, to pay the developers an
economic development grant or pay the developers a predetermined dollar amount. No other commitments
were made by the City as part of these agreements.
For the year ended June 30, 2026, the City abated $491,518 of property tax under the urban renewal and
economic development agreements.

(12)

Employee Health Insurance Plan
The Internal Service, Employee Health Fund was established to account for the self-funding of the City’s
health insurance benefit plan. The plan is funded by employees, COBRA participants and retirees, and City
contributions and is administered through a service agreement with Auxiant. As of January 1, 2024 the City
switched from a fully self-insured plan to a partially self-insured plan. The City now self-funds up to $6,500
per participant in the plan, with employees contributing the first $1,500 per participant. Monthly payments
of service fees and plan contributions to the Employee Health Fund are recorded as disbursements from the
operating funds. Under the administrative services agreement, monthly payments of service fees and claims
processed are paid to Auxiant from the Employee Health Fund. The City’s contribution for the year ended
June 30, 2026 was $802,310.
The City has estimated unpaid claims for the current year as follows:
Unpaid claims, beginning of year
Incurred claims
(including claims incurred but not reported at June 30, 2026)
Payments on claims during the year
28

$

13,245
118,126
(128,423)

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
Unpaid claims, end of year
(13)

$

2,948

Landfill Agreement
The City participates in an agreement with the Floyd-Mitchell-Chickasaw Solid Waste Management
Agency, a political subdivision created under Chapter 28E of the Code of Iowa. The purpose of the Agency
includes providing for the collection and disposal of solid waste produced or generated by the participants.
On dissolution of the corporation, the net assets of the Agency will be prorated among the municipalities.
The Agency is governed by a board composed of an elected representative of the governing body for each
participating governmental jurisdiction.
The City is obligated to remit a share of the operating and administrative costs. During the year ended June
30, 2026, the City paid Jendro Sanitation $783,279. The sanitation company is then responsible for paying
all landfill fees for the City’s share of the costs. Completed financial statements of the Agency can be
obtained from the Floyd-Mitchell-Chickasaw Solid Waste Management Agency.

(14)

Litigation
The City is subject to pending litigation where the estimate of damages and probability of loss, if any, is
undeterminable as of June 30, 2026.

(15)

Commitments and Contingencies
The City was notified by the United States Environmental Protection Agency (EPA) in 1989 that the area
known as the Shaw Avenue Dump had been determined to contain hazardous waste that has resulted in or
could result in an “imminent and substantial endangerment to the public health or welfare or the
environment”.
Subsequently, a consent order was entered into with the EPA. The City and the Solvay Animal Health have
entered into a cost-sharing agreement whereby each pays 50% of the costs associated with complying with
the consent order. The purpose of the order was to determine the nature and extent of any releases or
threatened releases of pollutants or contaminants; to assess the threat, if any, to the public health and
welfare; and to identify and evaluate remedial alternatives to prevent or mitigate such releases.
In 1991, the EPA issued a decision on their investigation into the contaminated area. Due to their decision,
the City was required to perform a stabilization process in order to secure the contaminants.
This process became the Shaw Avenue Dump Project.
The project has now been complete for several years and the EPA has approved the remedial plan.
However, the City estimates it will pay annual maintenance and testing fees until the final project is
approved. During the year ended June 30, 2026, the City paid $64,014 for maintenance, testing, and other
professional services related to the project. A date on which the final project will be completed has not
been determined.

(16)

Restricted, Committed and Assigned Fund Balances
The general fund included restricted funds of $538,999, and assigned funds of $93,442 at June 30, 2026.
The detail of these amounts is as follows:

29

City of Charles City, Iowa
Notes to Financial Statements
June 30, 2026
Restricted
Fire purchase reserve
Police purchase reserve
Park & recreation purchase reserve
Riverfront maintenance reserve
Park & recreation hotel/motel
Hotel/motel tax
Balance at June 30, 2026

Amount
$ 95,000
40,000
115,103
20,000
89,599
179,297
$ 538,999

Assigned
K-9 unit
Police safety education
Nuisance abatement reserve
Ragbrai
Balance at June 30, 2026
(17)

Amount
15,394
7,351
58,603
12,094
$ 93,442

$

Lease Receivable
The City leases space on one of its water towers to a third party for the operation of a telecommunication
antenna. The agreement began April 1, 2020 for an initial 5-year term, with two additional successive 5year renewal terms, and is expected to end March 31, 2035. The lease receivable was measured assuming
both renewal options will be exercised. Monthly payments were $1,600 during the initial term and increase
15% on the first day of each renewal term ($1,840 beginning April 1, 2025 and $2,116 beginning April 1,
2030). The lease receivable is discounted using an incremental borrowing rate of 5.38%.
At June 30, 2026, the City's lease receivable totaled $165,720. Because the City's financial statements are
prepared on the cash basis of accounting, the lease receivable is not reported in the financial statements.
During the year ended June 30, 2026, the City received lease payments of $22,086, consisting of $12,794 of
principal and $9,292 of interest. Future principal and interest payments to be received are as follows:
Year Ended June 30,
2027
2028
2029
2030
2031
2032-2035
Total

Principal
13,500
14,245
15,030
16,691
20,175
86,079
$
165,720

30

Interest
8,586
7,841
7,056
6,223
5,224
9,167
44,097

Total
22,086
22,086

$

22,086
22,914
25,399
95,246
209,817

Other Information

City of Charles City, Iowa
Budgetary Comparison Schedule
of Receipts, Disbursements, and Changes in Balances Budget and Actual (Cash Basis) - All Governmental Funds and Proprietary Funds
Other Information
Year ended June 30, 2026
Governmental
Funds
Actual
Receipts:
Property tax
Tax increment financing
Other city tax
Licenses and permits
Use of money and property
Intergovernmental
Charges for service
Miscellaneous
Total receipts

$

Proprietary
Funds
Actual

Total

4,397,755
975,765
2,174,243
159,835
475,162
1,845,329
368,789
373,514
10,770,392

160,598
213,238
7,479,608
103,747
7,957,191

4,397,755
975,765
2,174,243
159,835
635,760
2,058,567
7,848,397
477,261
18,727,583

Disbursements:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business-type activities
Total disbursements

3,093,277
1,593,471
367,767
1,408,000
1,059,078
740,333
1,129,067
4,893,388
14,284,381

6,841,088
6,841,088

3,093,277
1,593,471
367,767
1,408,000
1,059,078
740,333
1,129,067
4,893,388
6,841,088
21,125,469

Excess (deficiency) of receipts
over (under) disbursements

(3,513,989)

1,116,103

(2,397,886)

520,515

(284,231)

236,284

Change in cash balances

(2,993,474)

831,872

(2,161,602)

Balances, beginning of year

11,388,651

2,562,383

13,951,034

8,395,177

3,394,255

11,789,432

Other financing sources (uses), net

Balances, end of year

See accompanying independent auditor's report.

$

Budgeted Amounts
Original
Final

Final to
Total
Variance

4,294,819
1,009,763
1,996,748
115,000
306,991
1,637,274
7,525,430
651,089
17,537,114

4,299,617
1,009,763
2,024,467
126,000
568,851
2,167,136
7,646,725
759,792
18,602,351

98,138
(33,998)
149,776
33,835
66,909
(108,569)
201,672
(282,531)
125,232

3,235,514
1,720,985
399,356
1,487,091
1,121,741
691,048
954,853
4,480,770
7,062,217
21,153,575

3,406,539
1,666,338
422,792
1,756,677
1,264,983
767,086
1,129,072
6,092,322
7,373,175
23,878,984

313,262
72,867
55,025
348,677
205,905
26,753
5
1,198,934
532,087
2,753,515

(3,616,461)

(5,276,633)

2,878,747

465,500

230,034

6,250

(3,150,961)

(5,046,599)

2,884,997

10,720,316

13,951,033

1

7,569,355

8,904,434

2,884,998

31

City of Charles City, Iowa
Notes to Other Information – Budgetary Reporting
June 30, 2026

In accordance with the Code of Iowa, the City Council annually adopts a budget on the cash basis
following required public notice and hearing for all funds except blended component units (if applicable)
and the Internal Service Fund. The annual budget may be amended during the year utilizing similar
statutorily prescribed procedures.
Formal and legal budgetary control is based upon nine major classes of disbursements known as
functions, not by fund. These nine functions are: public safety, public works, health and social services,
culture and recreation, community and economic development, general government, debt service, capital
projects and business type activities. Function disbursements required to be budgeted include
disbursements for the General Fund, the Special Revenue Funds, the Debt Service Fund, the Capital
Projects Fund, the Permanent Fund and the Enterprise Funds. Although the budget document presents
function disbursements by fund, the legal level of control is at the aggregated function level, not by fund.
During the year, one budget amendment increased budgeted revenues and other financing sources by
$829,771 and increased budgeted disbursements by $2,725,409. The budget amendment is reflected in the
final budgeted amounts.
During the year ended June 30, 2026, disbursements did not exceed the amounts budgeted.

32

City of Charles City
Schedule of the City's Proportionate Share of the Net Pension Liability
Iowa Public Employees' Retirement System
For the Last Ten Years*
(In Thousands)
Other Information
2026

2025

2024

2023

2022

2021

City's proportion of the
net pension liability

0.02761% 0.02780% 0.02835% 0.02989% -0.01044% 0.03123%

City's proportionate share
of the net pension liability

$

641

1,012

1,279

1,129

36

2,194

City's covered-employee payroll

$ 2,593

2,599

2,487

2,432

2,507

2,489

City's proportionate share of the net
pension liability as a percentage of its
covered-employee payroll
24.72%

38.94%

51.43%

46.42%

1.44%

88.15%

IPERS' net position as a percentage
of the total pension liability

92.30%

90.13%

91.40%

100.81%

82.90%

95.27%

* In accordance with GASB Statement No. 68, the amounts presented for
each fiscal year were determined as of June 30 of the preceding fiscal year.

See accompanying independent auditor's report.

2020

2019

2018

2017

0.03162% 0.03064% 0.02950% 0.03067%
1,831

1,939

1,965

1,912

2,413

2,312

2,203

2,181

75.88%

83.87%

89.20%

87.67%

85.45%

83.62%

82.21%

81.82%

33

City of Charles City, Iowa
Schedule of City Contributions
Iowa Public Employees' Retirement System
For the Last Ten Years
(In Thousands)
Other Information
2026
Statutorily required contribution

$

Contribution in relation to the
statutorily required contribution

2025

2024

2023

227

245

245

235

(227)

(245)

(245)

(235)

-

-

-

Contribution deficiency (excess)

$

-

City's covered payroll

$

2,408

2,593

2,599

2,487

9.43%

9.45%

9.43%

9.45%

Contribution as a percentage
of covered payroll

See accompanying independent auditor's report.

2022

2021

2020

2019

2018

2017

230

237

235

228

206

197

(230)

(237)

(235)

(228)

(206)

(197)

-

-

-

-

-

-

2,432

2,507

2,489

2,413

2,312

2,203

9.46%

9.45%

9.44%

9.45%

8.91%

8.94%

34

City of Charles City
Schedule of the City's Proportionate Share of the Net Pension Liability
Municipal Fire and Police Retirement System of Iowa
For the Last Ten Years*
(In Thousands)
Other Information
2026

2025

2024

2023

2022

2021

City's proportion of the
net pension liability

0.29239% 0.28225% 0.30221% 0.31628% 0.32694% 0.31443%

City's proportionate share
of the net pension liability

$ 1,888

1,867

1,697

710

2,607

2,062

City's covered-employee payroll

$ 1,153

1,060

1,096

1,068

1,062

999

City's proportionate share of the net
pension liability as a percentage of its
covered-employee payroll
163.75% 176.13% 154.84%

66.48% 245.48% 206.41%

MFPRSI's net position as a percentage
of the total pension liability

84.62%

84.41%

83.37%

83.53%

* In accordance with GASB Statement No. 68, the amounts presented for
each fiscal year were determined as of June 30 of the preceding fiscal year.

See accompanying independent auditor's report.

93.62%

76.47%

2020

2019

2018

2017

0.31570% 0.32486% 0.32138% 0.33499%
2,071

1,934

1,884

2,095

957

944

910

908

216.41% 204.87%

207.03%

230.73%

79.94%

80.60%

78.20%

81.07%

35

City of Charles City, Iowa
Schedule of City Contributions
Municipal Fire and Police Retirement System of Iowa
For the Last Ten Years
(In Thousands)
Other Information
2026
Statutorily required contribution

$

Contribution in relation to the
statutorily required contribution

2025

2024

2023

269

261

244

262

(269)

(261)

(244)

(262)

-

-

-

Contribution deficiency (excess)

$

-

City's covered payroll

$

1,194

1,153

1,060

1,096

22.53%

22.64%

23.02%

23.91%

Contribution as a percentage
of covered payroll

See accompanying independent auditor's report.

2022

2021

2020

2019

2018

2017

280

269

244

249

242

236

(280)

(269)

(244)

(249)

(242)

(236)

-

-

-

-

-

-

1,068

1,062

999

957

944

910

26.22%

25.32%

24.41%

26.02%

25.64%

25.93%

36

City of Charles City, Iowa
Notes to Other Information – Pension Liability
Year Ended June 30, 2026
IPERS
Changes of benefit terms:
There are no significant changes in benefit terms.
Changes of assumptions:
The 2022 valuation incorporated the following refinements after a quadrennial experience study:
 Changed mortality assumptions to the PubG-2010 mortality tables with mortality
improvements modeled using Scale MP-2021.
 Adjusted retirement rates for Regular members
 Lowered disability rates for Regular members.
 Adjusted termination rates for all membership groups.
The 2018 valuation implemented the following refinements as a result of a demographic assumption study
dated June 28, 2018:
 Changed mortality assumptions to the RP-2014 mortality tables with mortality improvements
modeled using Scale MP-2017.
 Adjusted retirement rates.
 Lowered disability rates.
 Adjusted the probability of a vested Regular member electing to receive a deferred benefit.
 Adjusted the merit component of the salary increase assumption.
The 2017 valuation implemented the following refinements as a result of an experience study dated
March 24, 2017:
 Decreased the inflation assumption from 3.00% to 2.60%.
 Decreased the assumed rate of interest on member accounts from 3.75% to 3.50% per year.
 Decreased the discount rate from 7.50% to 7.00%.
 Decreased the wage growth assumption from 4.00% to 3.25%.
 Decreased the payroll growth assumption from 4.00% to 3.25%.

37

City of Charles City, Iowa
Notes to Other Information – Pension Liability
Year Ended June 30, 2026
MFPRSI
Changes of benefit terms:
There were no significant changes of benefit terms.
Changes of assumptions:
The 2018 valuation changed postretirement mortality rates to the RP-2014 Blue Collar Healthy Annuitant
Table with males set-forward zero years, females set-forward two years and disabled individuals setforward three years (male only rates), with generational projection of future mortality improvement with
50% of Scale BB beginning in 2017.
The 2017 valuation added five years projection of future mortality improvement with Scale BB.
The 2016 valuation changed postretirement mortality rates to the RP-2000 Blue Collar Combined Healthy
Mortality Table with males set-back two years, females set-forward one year and disabled individuals setforward one year (male only rates), with no projection of future mortality improvement.
The 2015 valuation phased in the 1994 Group Annuity Mortality Table for postretirement mortality. This
resulted in a weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994 Group
Annuity Mortality Table.

38

Supplementary Information

Schedule 1
City of Charles City, Iowa
Schedule of Cash Receipts, Disbursements,
and Changes in Cash Balances
Nonmajor Governmental Funds
As of and for the year ended June 30, 2026
Special
Revenue
Receipts:
Tax increment financing
Use of money and property
Intergovernmental
Charges for services
Miscellaneous
Total receipts

$

Capital
Projects

Total

975,765
78,313
1,530,174
33,403
98,084
2,715,739

142,631
22,350
164,981

975,765
78,313
1,672,805
33,403
120,434
2,880,720

1,141,355
367,767
32,452
842,362
26,420
2,410,356

255,488
255,488

1,141,355
367,767
32,452
842,362
26,420
255,488
2,665,844

Excess (deficiency) of receipts
over (under) disbursements

305,383

(90,507)

214,876

Other financing sources (uses):
Transfers in
Transfers out
Net other financing sources (uses)

73,901
(332,789)
(258,888)

204,190
(70,079)
134,111

278,091
(402,868)
(124,777)

46,495

43,604

90,099

1,489,615

52,851

1,542,466

$ 1,536,110

96,455

1,632,565

283,019
(186,564)
96,455

91,900
1,742,297
(201,632)
1,632,565

Disbursements:
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Capital projects
Total disbursements

Change in cash balance
Cash balances, beginning of year
Cash balances, end of year
Cash Basis Fund Balances
Nonspendable - Library Trust
Restricted for other purposes
Unassigned
Total cash basis fund balances

$

91,900
1,459,278
(15,068)
$ 1,536,110

See accompanying independent auditor's report.

39

City of Charles City, Iowa
Schedule of Cash Receipts, Disbursements,
and Changes in Cash Balances
Nonmajor Governmental Special Revenue Funds
As of and for the year ended June 30, 2026
Special Revenue

CVTC
Operations

LMI Tax
Increment
Financing

Riverside Tax
Increment
Financing

Southwest
Bypass Tax
Increment
Financing

South Grand
Tax
Increment
Financing

32,616
1,041,201
7,308
1,081,125

1,422
85,169
1,523
88,114

2,166
2,166

64,972
2,570
67,542

538,304
10,825
549,129

372,489
7,166
379,655

Disbursements:
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Total disbursements

978,906
978,906

162,449
162,449

-

-

502,292
502,292

340,070
340,070

Excess (deficiency) of receipts
over (under) disbursements

102,219

(74,335)

2,166

67,542

46,837

39,585

Other financing sources (uses):
Transfers in
Transfers out
Net other financing sources (uses)

(45,296)
(45,296)

44,711
44,711

29,190
29,190

(67,387)
(67,387)

(54,856)
(54,856)

(84,250)
(84,250)

Change in cash balance

56,923

(29,624)

31,356

155

(8,019)

(44,665)

Cash balances, beginning of year

731,195

14,556

52,148

32,334

110,712

46,856

$

788,118

(15,068)

83,504

32,489

102,693

2,191

$

788,118
788,118

(15,068)
(15,068)

83,504
83,504

32,489
32,489

102,693
102,693

2,191
2,191

Road
Use Tax
Receipts:
Tax increment financing
Use of money and property
Intergovernmental
Charges for services
Miscellaneous
Total receipts

Cash balances, end of year
Cash Basis Fund Balances
Nonspendable - Library Trust
Restricted for other purposes
Unassigned
Total cash basis fund balances

See accompanying independent auditor's report.

$

$

Schedule 2

Special Revenue
Foster
Grandparent
Advisory &
Operating

Police Asset
Forfeiture

Cablevision

9,141
31,979
41,120

3,314
320,720
54,499
378,533

336
2,775
3,111

7,652
33,403
41,055

975,765
78,313
1,530,174
33,403
98,084
2,715,739

26,420
26,420

32,452
32,452

367,767
367,767

-

-

1,141,355
367,767
32,452
842,362
26,420
2,410,356

928

56,664

8,668

10,766

3,111

41,055

305,383

-

-

-

-

(3,000)
(3,000)

-

(78,000)
(78,000)

73,901
(332,789)
(258,888)

177

928

56,664

8,668

7,766

3,111

(36,945)

46,495

4,265

22,354

(23,963)

238,238

88,748

7,892

164,280

1,489,615

4,442

23,282

32,701

246,906

96,514

11,003

127,335

1,536,110

4,442
4,442

23,282
23,282

32,701
32,701

91,900
155,006
246,906

96,514
96,514

11,003
11,003

127,335
127,335

91,900
1,459,278
(15,068)
1,536,110

East Park
Tax
Increment
Financing

Park Avenue
Tax
Increment
Financing

2024 Flood

177
177

928
928

83,084
83,084

-

-

177

Library

40

Total

Schedule 3
City of Charles City, Iowa
Schedule of Cash Receipts, Disbursements,
and Changes in Cash Balances
Nonmajor Governmental Capital Projects Funds
As of and for the year ended June 30, 2026
Capital Projects
RCPP
Project
Receipts:
Intergovernmental
Miscellaneous
Total receipts

$

IPC /
Arboretum
CW Bridge Sponsored
Project

Tree
Removal
Project

-

-

58,448
15,000
73,448

-

7,350
7,350

Disbursements:
Capital projects
Total disbursements

-

-

8,110
8,110

-

7,350
7,350

Excess (deficiency) of receipts
over (under) disbursements

-

-

65,338

-

-

Other financing sources:
Transfers in
Transfers out
Net other financing sources (uses)

-

(70,079)
(70,079)

-

-

-

Change in cash balance

-

(70,079)

65,338

-

-

500

224,583

(76,284)

(63,966)

-

$

500

154,504

(10,946)

(63,966)

-

$

500
500

154,504
154,504

(10,946)
(10,946)

(63,966)
(63,966)

-

Cash balances, beginning of year
Cash balances, end of year
Cash Basis Fund Balances
Restricted for other purposes
Unassigned
Total cash basis fund balances

See accompanying independent auditor's report.

$

Schedule 3

Capital Projects
Main Street
Pool
Bike Trail
Bridge
RRXING N
Extension Renovation
Project
Grand
Project
Project

RRXING
Iowa/Lane

RRXING
Brackett

Total

84,183
84,183

-

-

-

-

-

142,631
22,350
164,981

35,660
35,660

39,804
39,804

59,590
59,590

52,912
52,912

21,642
21,642

30,420
30,420

255,488
255,488

48,523

(39,804)

(59,590)

(52,912)

(21,642)

(30,420)

(90,507)

151,278
151,278

-

52,912
52,912

-

-

-

204,190
(70,079)
134,111

199,801

(39,804)

(6,678)

(52,912)

(21,642)

(30,420)

43,604

(199,801)

167,819

-

-

-

-

52,851

-

128,015

(6,678)

(52,912)

(21,642)

(30,420)

96,455

-

128,015
128,015

(6,678)
(6,678)

(52,912)
(52,912)

(21,642)
(21,642)

(30,420)
(30,420)

283,019
(186,564)
96,455

41

Schedule 4
City of Charles City, Iowa
Schedule of Cash Receipts, Disbursements,
and Changes in Cash Balances
Nonmajor Proprietary Funds
As of and for the year ended June 30, 2026
Waste
Collection
Operating receipts:
Charges for service
Miscellaneous
Total operating receipts

$

Transit
Service

Storm
Water

Fire
Extinguisher

Total

859,498
1,330
860,828

29,907
8,312
38,219

199,812
199,812

5,050
5,050

1,094,267
9,642
1,103,909

Operating disbursements:
Business-type activities
Total operating disbursements

840,362
840,362

428,173
428,173

90,181
90,181

2,934
2,934

1,361,650
1,361,650

Excess (deficiency) of operating receipts
over (under) operating disbursements

20,466

(389,954)

109,631

2,116

(257,741)

Noncapital subsidies:
Regional transit operating assistance
Transfers in
Total noncapital subsidies

-

213,238
105,098
318,336

-

1,531
1,531

213,238
106,629
319,867

20,466

(71,618)

109,631

3,647

62,126

7,945
-

-

22,717
(71,374)

806
-

31,468
(71,374)

7,945

-

(48,657)

806

(39,906)

Change in cash balance

28,411

(71,618)

60,974

4,453

22,220

Cash balances, beginning of year

173,471

50,617

495,273

17,899

737,260

Excess of operating receipts over operating
disbursements and noncapital subsidies
Other nonoperating receipts (disbursements):
Interest on investments
Capital Projects
Net other nonoperating receipts
(disbursements)

Cash balances, end of year

$

201,882

(21,001)

556,247

22,352

759,480

Cash Basis Fund Balances
Unrestricted
Total cash basis fund balances

$
$

201,882
201,882

(21,001)
(21,001)

556,247
556,247

22,352
22,352

759,480
759,480

See accompanying independent auditor's report.

42

City of Charles City, Iowa
Schedule of Receipts by Source and Disbursements by Function
Governmental Funds
For the Last Ten Years

Receipts
Property tax
Tax increment financing
Other city tax
Licenses and permits
Use of money and property
Intergovernmental
Charges for service
Miscellaneous
Disbursements
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects

2026

2025

2024

2023

$ 4,397,755
975,765
2,174,243
159,835
475,162
1,845,329
368,789
373,514
$ 10,770,392

4,322,433
951,194
2,018,670
201,472
516,316
3,013,868
1,064,068
1,047,262
13,135,283

4,118,772
1,065,409
1,509,096
94,807
468,681
2,052,858
2,114,809
888,174
12,312,606

4,053,556
887,439
1,578,669
183,614
437,418
2,544,609
1,854,809
663,752
12,203,866

$ 3,093,277
1,593,471
367,767
1,408,000
1,059,078
740,333
1,129,067
4,893,388
$ 14,284,381

2,750,371
1,666,157
355,933
1,682,952
4,695,982
753,731
910,557
5,898,086
18,713,769

2,831,375
1,676,112
394,363
1,304,635
3,649,813
668,752
875,079
2,105,985
13,506,114

2,604,728
1,521,923
316,456
1,323,827
2,874,581
629,553
830,980
1,900,697
12,002,745

See accompanying independent auditor's report.

Schedule 5

2022

2021

2020

2019

2018

2017

4,274,657
739,275
1,454,629
126,955
116,952
2,999,727
2,270,694
439,401
12,422,290

4,340,605
473,346
1,208,175
113,664
69,891
3,388,034
2,167,782
359,377
12,120,874

3,825,520
224,672
1,322,627
117,040
227,359
2,145,385
1,866,874
339,753
10,069,230

3,708,535
361,255
1,332,681
81,558
355,560
2,074,227
1,818,134
389,771
10,121,721

3,562,048
285,203
1,170,807
130,526
288,533
1,980,916
1,922,722
475,203
9,815,958

3,657,724
324,063
1,237,094
106,965
228,411
2,171,051
1,736,543
404,874
9,866,725

2,864,296
1,771,409
270,749
1,284,876
2,836,855
612,529
1,137,442
1,214,340
11,992,496

2,799,845
1,498,296
264,885
1,108,538
2,540,977
558,933
1,054,950
4,129,691
13,956,115

2,787,088
1,741,461
342,805
1,218,440
4,560,778
558,329
815,067
2,795,241
14,819,209

2,779,016
1,536,742
380,282
1,174,327
2,129,749
569,843
825,842
2,682,217
12,078,018

2,674,376
1,574,581
393,120
1,277,163
2,405,909
524,278
849,073
218,249
9,916,749

2,684,337
1,401,644
368,791
1,206,369
2,117,461
500,034
845,406
265,716
9,389,758

43

Independent Auditor’s Report on Internal Control
Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards
To the Honorable Mayor and Members of the City Council:
We have audited in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the business
type activities, each major fund and the aggregate remaining fund information of the City of Charles City, Iowa,
as of and for the year ended June 30, 2026, and the related Notes to Financial Statements, which collectively
comprise the City’s basic financial statements, and have issued our report thereon dated November 9, 2026. Our
report expressed unmodified opinions on the financial statements which were prepared on the basis of cash
receipts and disbursements, a basis of accounting other than U.S. generally accepted accounting principles.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Charles City’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the City’s financial statements
will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control which is less severe than a material weakness, yet important
enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not
identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. We identified certain deficiencies in internal control, described in Part I of the
accompanying Schedule of Findings as items I-A-26 and I-B-26 to be significant deficiencies.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements, non-compliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of non-compliance
or other matters which are required to be reported under Government Auditing Standards.

44

However, we noted certain immaterial instances of non-compliance or other matters which are described in Part II
of the accompanying Schedule of Findings.
Comments involving statutory and other legal matters about the City’s operations for the year ended June 30,
2026 are based exclusively on knowledge obtained from procedures performed during our audit of the financial
statements of the City. Since our audit was based on tests and samples, not all transactions that might have had an
impact on the comments were necessarily audited. The comments involving statutory and other legal matters are
not intended to constitute legal interpretations of those statutes.
City of Charles City’s Responses to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s responses to the
findings identified in our audit and described in the accompanying Schedule of Findings. The City’s responses
were not subjected to the other auditing procedures applied in the audit of the financial statements and,
accordingly, we express no opinion on the responses.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
We would like to acknowledge the many courtesies and assistance extended to us by personnel of the City of
Charles City during the course of our audit. Should you have any questions concerning any of the above matters,
we shall be pleased to discuss them with you at your convenience.

T.P. Anderson & Company, P.C.
November 9, 2026
Humboldt, Iowa

45

City of Charles City, Iowa
Schedule of Findings
Year ended June 30, 2026
Part I: Findings Related to the Financial Statements:
INTERNAL CONTROL DEFICIENCIES:
I-A-26

Segregation of Duties – Generally, we noted that from time to time one individual may
possess control over each of the following areas:
1) Payroll – entering rates and hours into the system, recordkeeping, preparing,
signing and distributing.
2) Disbursements – purchasing, invoice processing, check writing, mailing,
reconciling and recording.
3) Financial Reporting and Budgeting – preparing and reconciling.
4) Receipts – opening mail, collecting, depositing, journalizing, reconciling and
posting.
Criteria – Management is responsible for establishing and maintaining internal control. A
good system of internal control provides for adequate segregation of duties so no one
individual handles a transaction from its inception to completion. In order to maintain
proper internal control, duties should be segregated so the authorization, custody and
recording of transactions are not under the control of the same employee. This
segregation of duties helps prevent losses from employee error or dishonesty and
maximizes the accuracy of the City’s financial statements.
Condition – One individual has control over various functions of the City.
Cause – The City has a limited number of employees and procedures have not been
designed to adequately segregate duties or provide compensating controls through
additional oversight of transactions and processes.
Effect – Inadequate segregation of duties could adversely affect the City’s ability to
prevent or detect and correct misstatements, errors or misappropriation on a timely basis
by employees in the normal course of performing their assigned functions.
Recommendation – The City should review its control activities to obtain the maximum
internal control possible under the circumstances utilizing currently available staff,
including elected officials. We recommend that the City implement a policy that requires
dual signatures on all checks being issued.
Response – We have reviewed procedures and plan to make improvements to internal
control.
Conclusion – Response accepted.

46

City of Charles City, Iowa
Schedule of Findings
Year ended June 30, 2026
I-B-26

Utility Billing and Adjustments – Controls over utility rate changes and customer account
adjustments were not adequate.
Criteria – An effective system of internal control provides for independent verification
that utility rates entered into the billing system agree with approved ordinances and that
consumption is accurately billed. Customer account adjustments and write-offs should
have a valid basis, be supported by documentation, and be reviewed and approved by an
authorized individual independent of the person entering the transaction. Evidence of the
review and approval should be retained.
Condition – Commercial sewer customers were billed using FY25 rates during the
August 2025 through June 2026 billing periods because the approved FY26 rates had not
been implemented. In addition, supporting documentation and evidence of approval were
not available for certain utility billing adjustments and write-offs selected for testing.
Management attributed several adjustments to incorrect meter readings or system import
errors, but supporting records were not available to verify those adjustments.
Cause – The City has not established adequate procedures for independently verifying
rate changes in the billing system or consistently documenting, reviewing and approving
customer account adjustments and write-offs.
Effect – The commercial sewer rate errors resulted in estimated underbilling of
approximately $12,500. Missing supporting documentation and evidence of approval
prevented us from determining the appropriateness of certain adjustments and write-offs
tested. These control deficiencies increase the risk that billing errors, unauthorized
account reductions or concealment of misappropriated utility collections could occur and
not be detected and corrected timely.
Recommendation – An independent individual should verify all rate changes against
approved ordinances before the first billing at the new rates and document the review.
The City should also review unusual consumption and meter reading exceptions before
bills are issued. Written procedures should require supporting documentation showing the
reason and calculation for each adjustment or write-off, approval by an authorized
individual independent of the person entering it, and retention of evidence of that
approval. Adjustment and write-off reports should be reviewed periodically for unusual
activity.
Response – We have reviewed our procedures and plan to strengthen internal controls
over utility rate changes and billing. We will consider implementing review controls to
ensure consumption is properly billed and customer adjustments and write-offs are valid.
Conclusion – Response accepted.

47

City of Charles City, Iowa
Schedule of Findings
Year ended June 30, 2026
INSTANCES OF NON-COMPLIANCE:
No matters were noted.

48

City of Charles City, Iowa
Schedule of Findings
Year ended June 30, 2026
Part II: Other Findings Related to Required Statutory Reporting:
II-A-26

Certified Budget – Disbursements during the year ended June 30, 2026 did not exceed the
amounts budgeted.

II-B-26

Questionable Disbursements – No disbursements we believe may not meet the
requirements of public purpose as defined in an Attorney General’s opinion dated April
25, 1979 were noted.

II-C-26

Travel Expense – No disbursements of City money for travel expenses of spouses of City
officials or employees were noted.

II-D-26

Business Transactions – No business transactions between the City and its officials or
employees were noted.

II-E-26

Restricted Donor Activity – No transactions were noted between the City, City officials,
City employees and restricted donors in compliance with 68B of the Code of Iowa.

II-F-26

Bond Coverage – Surety bond coverage of City officials and employees is in accordance
with statutory provisions. The amount of coverage should be reviewed annually to ensure
the coverage is adequate for current operations.

II-G-26

City Council Minutes – No transactions were found that we believe should have been
approved in the City Council meeting minutes but were not. Minutes of City Council
proceedings were published as required by Chapter 372.13(6) of the Code of Iowa.

II-H-26

Deposits and Investments – No instances of non-compliance with the deposit and
investment provisions of Chapters 12B and 12C of the Code of Iowa and the City’s
investment policy were noted.

II-I-26

Revenue Bonds and Notes – No instances of noncompliance with the revenue bond and
note provisions were noted.

II-J-26

Financial Condition – The following funds had deficit balances at June 30, 2026:
Fund Description
Special Revenue, CVTC Operations
Capital Projects, Street Improvements
Capital Projects, IPC/Sponsored
Capital Projects, Arboretum Project
Capital Projects, Main Street Bridge Project
Capital Projects, RRXing N Grand
Capital Projects, RRXing Iowa/Lane
Capital Projects, RRXing Brackett
Enterprise, Transit Service

49

Balance
(15,068)
(855,944)
(10,946)
(63,966)
(6,678)
(52,912)
(21,642)
(30,420)
(21,001)

City of Charles City, Iowa
Schedule of Findings
Year ended June 30, 2026
Recommendation – The City should investigate alternatives to eliminate these deficits to
return the funds to sound financial positions.
Response – The City expects future receipts into these funds will eliminate the deficit
balances. These deficits are due to costs being incurred prior to the receipt of grant funds
and assessments, which operate on a reimbursement basis as part of the grant agreement.
Conclusion – Response accepted.
II-K-26

Tax Increment Financing (TIF) – Payments from the Special Revenue, Urban Renewal
Tax Increment Funds properly included only payments for TIF loans and rebates. Also,
the City properly completed the Tax Increment Debt Forms 1, 2 or 3, as appropriate, to
certify TIF obligations (debt), to decertify TIF debt or request a reduced distribution of
TIF.

II-L-26

Annual Urban Renewal Report – The Annual Urban Renewal Report was properly
approved and certified to the Iowa Department of Management on or before December 1
as required by Chapter 384.22(2)(a) of the Code of Iowa and no exceptions were noted.

50

CITY OF CHARLES CITY, IOWA
INDEPENDENT ACCOUNTANT’S REPORT
ON COMPLIANCE FOR THE U.S. DEPARTMENT OF TREASURY CORONAVIRUS STATE
AND LOCAL FISCAL RECOVERY FUNDS PROGRAM (CSLFRF) FOR AN ALTERNATIVE
CSLFRF COMPLIANCE EXAMINATION ENGAGEMENT
JUNE 30, 2026

Table of Contents
Page
Officials
Independent Accountant’s Report on Compliance
for the U.S. Department of Treasury Coronavirus State
and Local Fiscal Recovery Funds Program (CSLFRF)
for an Alternative CSLFRF Compliance
Examination Engagement

1

2-3

City of Charles City, Iowa
Officials

Name

Title

Term
Expires

Dean Andrews

Mayor

December 2029

Patrick Lumley
Krista Noah
Phoebe Pittman
Phillip Knighten
Jeff Otto

Council Member
Council Member
Council Member
Council Member
Council Member

December 2029
December 2029
December 2029
December 2027
December 2027

Tyler Trout

City Administrator

Indefinite

Brittney Lentz

City Clerk/Finance Officer

Indefinite

Brad Sloter

Attorney

Indefinite

1

Independent Accountant’s Report on Compliance
for the U.S. Department of Treasury Coronavirus State and Local Fiscal
Recovery Funds Program (CSLFRF) for an Alternative CSLFRF
Compliance Examination Engagement
To the Honorable Mayor and Members of the City Council:
We have examined the City of Charles City’s compliance with the compliance requirements “activities
allowed or unallowed” and “allowable cost/cost principles” (the specified requirements) as described in
Section 2 “Engagements Performed Under the Alternative Approach” of the CSLFRF section of the
2025 U.S. Office of Management and Budget (OMB) Compliance Supplement during the year ended
June 30, 2026. Management of the City of Charles City is responsible for the City’s compliance with the
specified requirements. Our responsibility is to express an opinion on the City of Charles City’s
compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants, the standards applicable to attestation engagements contained
in Government Auditing Standards, issued by the Comptroller General of the United States and in the
Section 2 “Engagements Performed Under the Alternative Approach”. Those standards and requirements
require that we plan and perform the examination to obtain reasonable assurance about whether the City
of Charles City complied, in all material respects, with the specified requirements referenced above. An
examination involves performing procedures to obtain evidence about whether the City of Charles City
complied with the specified requirements. The nature, timing, and extent of the procedures selected
depend on our judgment, including an assessment of the risks of material noncompliance, whether due to
fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a
reasonable basis for our opinion.
We are required to be independent and meet our other ethical responsibilities in accordance with relevant
ethical requirements relating to the examination engagement.
Our examination does not provide a legal determination on the City of Charles City’s compliance with
specified requirements.
In our opinion, the City of Charles City complied, in all material respects, with the specified
requirements referenced above during the year ended June 30, 2026.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we are required to report all deficiencies which are
considered to be significant deficiencies or material weaknesses in internal control, fraud, and
noncompliance with provisions of laws, regulations, contracts or grant agreements that have a material

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effect on the City’s compliance with the specified requirements and any other instances that warrant the
attention of those charged with governance.
We are also required to obtain and report the views of responsible officials concerning the findings,
conclusions, and recommendations, as well as any planned corrective actions. We performed our
examination to express an opinion on the City’s compliance with the specified requirements and not for
the purpose of expressing an opinion on the internal control over the specified requirements or on
compliance and other matters; accordingly, we express no such opinions. The results of our tests
disclosed no matters that are required to be reported under Government Auditing Standards.
Intended Purpose
The purpose of this examination report is solely to express an opinion on whether the City complied, in
all material respects, with the specified requirements referenced above during the year ended June 30,
2026. Accordingly, this report is not suitable for any other purpose.
We would like to acknowledge the many courtesies and assistance extended to us by personnel of the City
during the course of our examination engagement. Should you have any questions concerning any of the
above matters, we shall be pleased to discuss them with you at your convenience.

T.P. Anderson & Company, P.C.
Humboldt, Iowa
November 9, 2026

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MEETING DATE: 11/09/2026

AGENDA ITEM SUMMARY
Subject: City Website Redesign Draft Preview
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Background Summary:
City staff have been working with CivicPlus on a website redesign, which is the company that hosts the city
website. A redesign was in planning stages with CivicPlus in 2024, but was paused and not completed. When
staff discovered this, meetings were set with CivicPlus to restart the project. Staff also verified with the City’s
CivicPlus Account Manager that since the 2024 redesign project was not completed, this project will not incur
any additional charges.
A City Website Redesign team was then formed, which included Communications Director Katie Hirv, City
Administrator Tyler Trout, City Clerk Brittney Lentz, Parks and Recreation Director Tyler Mitchell, and
AmeriCorps Seniors Foster Grandparent Program Director Jennifer Lantz.
Project meetings began in early September 2026, with the most recent meeting held on Nov. 4, 2026, which
included a preview of the new design. The preview incorporates the design plans for the Council Chambers
while including the color scheme of the City’s logo.
Throughout the redesign process, staff focused on developing a design that would be easy to navigate and
make information and resources more visible on the homepage. Notable additions to the homepage include
(but are not limited to) a more robust calendar option that adds a Parks and Recreation tab, as well as a City
Leadership section.
Once final revisions are submitted to CivicPlus, the project manager will collaborate with the City Website
Redesign team to determine the official launch date of the redesign.

Staff Recommendation:
For informational purposes only. Council is encouraged to provide feedback on the proposed website redesign.