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Investment Over. ReportFrom; To; Regarding: City of Dubuque, Investment Oversight Commission MEMBERS of the CITY COUNCIL OF DUBUQUE Quarterly Report In Accordance with Ordinance No. 50-92 (3) Sec. 2-231, City code, the City of Dubuque Investment Oversight Commission (IOC) respectfully submits the 34th quarterly report. The IOC members met on October 24, 2001. The transactions reviewed through September 30, 2001 appear to be in compliance with the Articles in the Investment Policy. Joseph Veranth, CFA, Executive Vice President with Dana Investment Advisors made a presentation to the IOC. We had invited Dana for an annual review of their portfolio. Dana's emphasis is the use of government agency bonds in the portfolio they manage for the city. They have also added more Small Business Administration ( SBA ) funds recently. The SBA funds are actually a more conservative investment that the mortgage hacked securities that historically made up the bulk of Dana's portfolio. Mr. Veranth did an excellent job of explaining why Dana was using SBA bonds at this time, and why they are appropriate investments for the portfolio of a city like Dubuque. There was also a very informative discussion of the current very low interest rate market. Ken TeKippe, City Finance Director and Dawn Lang, Assistant Finance Director reviewed the schedule of funds managed by their department. The lower interest rates the City is receiving on Certificates of Deposits that are being rolled over was not a surprise give the historically lower interest rates we are seeing. Mr. TeKippe did report that there was rather limited interest by local financial institutions on bidding for funds when the City wanted to roll a maturing CD over recently. The lOC did not receive any communication or questions from the public. Respectfully submitted Paul Lassance Chairman Investment Oversight Commission