Minutes Investment Oversight 1 23 08THE CITY OF
Dus E
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MEMORANDUM
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Kenneth J. TeKippe, Finance Director ~~ (/ e ~'7-v-'
RE: Un-approved Minutes of the January 23, 2008 Meeting of the Investment
Oversight Advisory Commission
DATE: January 24, 2008
Commission members Paul Lassance, Steve Reisdorf, Virgil Blocker and Gary Ruden
were present. Ken TeKippe, Finance Director, and Jean Nachtman, Assistant Finance
Director, were also present.
The meeting was called to order at 3:00 p.m. in Conference Room A in City Hall by
Chairperson Paul Lassance. Finance Director Ken TeKippe, certified that the
meeting was in compliance with the Iowa open meetings law.
2. Steve Reisdorf moved that the minutes of the October 24, 2007 meeting be
approved as written. The motion was seconded by Virgil Blocker and approved
unanimously.
3. Mr. William Zaleski and Ms. Kim Grant of Dubuque Bank and Trust provided a
handout with strategic outlook, total return analysis for December 31, 2006 and
December 31, 2007, performance information and 2008 economic and market
forecast. Kim reviewed the information and predicted another interest rate cut by
Feds (50-75 points). The emergency Federal Funds rate cut of 75 basis points
yesterday affects the December 31, 2007 strategic outlook somewhat. Still not
predicting a recession with housing remaining a sore subject. Treasuries
outperformed other sectors in 2007. However, having no treasuries in our account
hurt our returns (versus bank's December 31, 2006 one year horizon for total
return analysis). Discussed $800,000 investment in Federated Mortgage mutual
fund. Dubuque Bank and Trust added to portfolio because it provides more
diversification and spreads risk. Have not had mutual funds in recent years
because mutual funds do not mature.
Kim confirmed that Dubuque Bank and Trust is in compliance with the City's
current investment policy.
4. Ken distributed investment return information for December 31, 2007, from the four
investment managers: Dubuque Bank and Trust, U.S. Bank, Dana Investment
Advisors and First Community Trust. In addition, investment returns for calendar
years 2001-2007 for the four managers was distributed. Also distributed a recap of
manager/ custodian annual fees based on December 31, 2007, market values.
5. The Commission reviewed the December 2007 quarterly investment reports
prepared by Jean Nachtman. Ken indicated that the City has continued to invest
new funds or maturing investments in Certificates of Deposit (approximately 6
month maturities), due to higher returns than U.S. Treasuries. There were no U.S.
Treasuries at end of quarter in our investment portfolio. Recent interest rates for
certificates of deposit acquired have been in the 4.30-4.50% range until
yesterday's bid (3.918%) after Fed Fund rate drop of 75 points. A summary of
investment quotes for certificates of deposit bids (26) in the current fiscal year was
distributed.
Ken indicated that City did not withdraw funds from the investment managers since
the last meeting and there are no plans to withdraw or add to funds during next few
months.
6. Comments from investment managers on the City of Dubuque Investment Policy
(received in May 2007) along with City policy revised July 12, 1999 were
distributed. Ken will contact managers to see if comments still valid, plus contact
U.S. Bank since no comments were received last year from them. Review was
tabled until the April 23, 2008 meeting.
7. There was no communication from the public, commission or staff to report
according to Ken.
8. The next meeting of the Commission is scheduled for Wednesday, April 23, 2008,
at 3:00 p.m. in City Hall. A representative from U.S. Bank will be invited to the
meeting.
9. Virgil Blocker moved that the meeting adjourn. The motion was seconded by Gary
Ruden and approved unanimously. The meeting adjourned at 3:35 p.m.