Investment Oversight Comm Quaterly Report 2 4 08From: City of Dubuque, Investment Oversight Commission
To: MEMBERS of the CITY COUNCIL OF DUBUQUE
Regarding: 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 59th quarterly report.
The IOC members met on January 23, 2008. The transactions reviewed through December 31,
2007 appear to be in compliance with the Articles in the Investment Policy.
The Commissioners and city staff had their the annual review of the funds managed by Dubuque
Bank and Trust (DB&T). DB&T was represented by Kim Grant and William Zaleski.
Kim Grant reviewed the current investments that DB&T manages for the City of Dubuque. The
emphasis continues to be the use of government agency bonds, collateralized mortgage
instruments and taxable municipal bonds in the portfolio they manage for the City. There was a
discussion of the use of a mutual fund as an investment vehicle. The fund invests in government
agency bonds. The advantage of using the mutual fund is that there is greater diversification. The
disadvantage in that a fund does not have a given maturity date, unlike investments in individual
bonds. The later factor is what has concerned the IOC about these investments in the past.
Mrs. Grant confirmed that the portfolio managed by DB&T is in compliance with the City's
current investment policy.
Ken TeKippe, City Finance Director reviewed the performance and fees of charged by the four
investment managers. There has been a significant change in Certificates of Deposits (CD) rates in
the last few weeks. The city staff will continue to monitor CD rates in the event that equivalent
maturity US Treasury Bills and Notes would become a better investment for City funds.
The IOC did not receive any communication or questions from the public.
Respectfully submitted
~1'auCLassance
Paul Lassance
Chairman
Investment Oversight Commission