Minutes_Investment Oversight Advisory Commission 7 26 18 Copyrighted
November 5, 2018
City of Dubuque Consent Items # 1.
ITEM TITLE: Minutes and Reports Submitted
SUMMARY: City Council Proceedings of 10/15; Catfish Creek
Watershed ManagementAuthorityof 10/22; Community
Development Advisory Commission of 8/28; Historic
Preservation Commission of 10/18; Housing Commission
Minutes of 8/28; Investment Oversight Advisory
Commission of 10/24; Library Board of Trustees of 9/26;
Library Board of Trustees Council Update #176 of 10/25;
Long Range Planning Advisory Commission of 10/17;
Zoning Board of Adjustment of 10/25; Proof of Publication
for City Council Proceedings of 10/1; Proof of Publication
for List of Claims and Summary of Revenues for Month
Ending 9/20.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
City Council Proceedings of 10/15/18 Supporting Documentation
Caffish Creek Watershed ManagementAuthority Supporting Documentation
Minutes of 10/22/18
Community DevelopmentAdvisory Commission Minutes Supporting Documentation
of 9/26/18
Housing Commission Minutes of 8/28/18 Supporting Documentation
Historic Preservation Commission Minutes of 10/18/18 Supporting Documentation
InvestmentOversightAdvisory Commission Minutesof Supporting Documentation
10/24/18
Library Board of Trustees Minutes of 9/26/18 Supporting Documentation
Library Board of Trustees Council Update#176 of Supporting Documentation
10/25/18
Long Range Planning Advisory Commission Minutes of Supporting Documentation
10/17/18
Zoning Board of Adjustment Minutes of 10/25/18 Supporting Documentation
Proof of Publication for City Council Proceedings of Supporting Documentation
10/1/18
Proof of Publication for List of Claims/Summary of Supporting Documentation
Revenues for ME 9/30/18
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TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Paul Lassance, Investment Oversight Advisory Commission
Jean Nachtman, Finance Director
RE: Un-approved Minutes of the July 26, 2018, Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: October 25, 2018
Commission members; Paul Lassance, Franz Becker, Gary Ruden, Steve Reisdorf and City
staff, Jean Nachtman, Finance Director; Tami Lansing, Assistant Finance Director.
1. The meeting was called to order at 3:02 p.m. in Conference Room A in City Hall by
Chairperson Paul Lassance. Finance Director Jean Nachtman, certified that the
meeting was in compliance with the lowa open meetings law.
2. Gary Ruden moved that the minutes of the July 25, 2018, meeting be approved. The
motion was seconded by Franz Becker and approved unanimously.
3. Joe Veranth, Chief Investment Officer— Portfolio Manager presented for Dana
Investments Advisors. A handout was provided with information on 2018 returns,
annual account review and other information.
Monthly and quarterly earnings are increasing due to increase in interest rates.
Market price is dropping. Monthly/quarterly returns are outpacing market decline.
Current yield on total portfolio is 2.8%. The effective duration of porffolio is 0.85.
The two-year treasury note, which most closely mirrors the City's portfolio, has
moved up 1%.
Joe reviewed the state of the economy, as related to recent events in the stock
market. The yield curve continues to flatten but is not yet indicating that it will invert.
The fed fund target interest rate is 2.38% for end of 2018, 3.13% in 2019, and 3.38
for 2020 and 2021 . There could be a tick up in unemployment as formerly
discouraged workers that have left the job market begin to re-enter and look for work.
Real wages will increase, due to low unemployment rates. Beginning to see turnover
in the lower income jobs as people are moving to higher wage jobs.
The 2018 September Federal Open Market Committee (FOMC) forecasts a drop in
real GDP from predicted 3.1% at the end of 2018 to 1 .8% by 2021 , unemployment to
remain steady at or near current rate 3.7% and inflations to stay around the 2%
target rate. U.S. equities continue higher despite higher interest rates and
consumer confidence continues to be high. Negatives working on the economy are
world trade disputes, higher interest rates, and political drama. U.S. economy
continues to display solid growth but is no longer accelerating.
Joe confirmed that the investments are in compliance with the City investment policy.
4. Jean reported on current cash standings. The City continues to ladder CD maturities
to meet operations.
5. The Commission reviewed the September 2018 quarterly investment reports.
6. There was no communication from the public, commission or staff to report
according to Jean.
7. The next meeting of the Commission is scheduled for Wednesday, January 23, 2019
at 3:00 p.m. A representative from Dubuque Bank & Trust will be invited to the
meeting.
8. Franz Becker moved that the meeting adjourn. The motion was seconded by Steve
Reisdorf and approved unanimously. The meeting adjourned at 3:25 p.m.