Minutes_Investment Oversight Advisory Commission THE CITY OF Dubuque
AII4merica Ciiy
DUBgkE
Masterpiece on the Mississippi 2007-2012-2013
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Paul Lassance, Investment Oversight Advisory Commission
Ken TeKippe, Finance Director
RE: Un-approved Minutes of the October 28, 2015 Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: November 4, 2015
Commission members Paul Lassance, Gary Ruden, Steve Reisdorf and Brad Chalmers
were present. Ken TeKippe, Finance Director and Jean Nachtman, Assistant Finance
Director were also present.
1. The meeting was called to order at 3:00 p.m. in Conference Room A in City Hall by
Paul Lassance.
2. Finance Director Ken TeKippe certified that the meeting was in compliance with the
Iowa open meetings law.
3. Steve Reisdorf moved that the minutes of the July 22, 2015, meeting be approved.
The motion was seconded by Gary Ruden. Motion carried unanimously.
4. Matt Slowinski of Dana Investment Advisors provided a handout with portfolio and
market overview information. Matt indicated that we continue in a low return
environment; current duration is 0.8 years which is conservative and short; hold 1-
2% cash; agency bonds have step coupons (normally called within 6 months) under
5 years to protect portfolio; 55% in mortgage adjustable rate bonds which are not
exposed to interest variations (never had a year with negative returns).
Matt believes Feds could raise rates in December (remain defensive until rates rise),
with inflation and unemployment the 2 main drivers of policy decisions. Investors are
anticipating higher rates. It was recently reported by the Labor Department that we
have the highest number of job openings since 2001.
Matt confirmed that Dana is in compliance with the City's current investment policy.
5. Ken distributed investment return information for September 30, 2015, from the four
investment managers: Dubuque Bank and Trust (DB&T), U.S. Bank, Dana
Investment Advisors and First Community Trust. Also distributed a recap of
manager/custodian annual fees based on September 30, 2015 market values, all
managers currently use same fee schedule. Hard copies of the quarterly reports that
had been emailed also were provided.
Approximately $49.0 million unspent bond proceeds were on deposit at end of
September, considerable spending in October of bond proceeds. City plans to
borrow additional funds for projects and refunding in early 2016. East Dubuque
Savings Bank has been sold to Fidelity Bank with the transaction to close in
December 2015, so could have one less bidder for CD's and bond proceeds.
However Fidelity has bid on recent available funds. Consulting firm, Rust Consulting,
has been hired to disperse franchise fees rebates, beginning in next couple months.
A multi-year RFP for annual external auditing services will be issued in early 2016.
6. There was no communication from the public, commission or staff to report
according to Ken.
7. The next meeting of the Commission is scheduled for Wednesday, January 27,
2016, at 3:00 p.m. in City Hall. A representative from Dubuque Bank and Trust will
be invited to the meeting.
8. Gary Ruden moved that the meeting adjourn. The motion was seconded by Steve
Reisdorf and approved unanimously. The meeting adjourned at 3:30 p.m.