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Minutes Investment Oversight Commission 4 23 08THE CITY OF DUB E Memorandum TO: Members of City of Dubuque Investment Oversight Advisory Commission FROM: Kenneth J. TeKippe, Finance Director ~~~.~~ ~~ RE: Un-approved Minutes of the April 23, 2008 Meeting of the Investment Oversight Advisory Commission DATE: April 24, 2008 Commission members Paul Lassance, Steve Reisdorf, Hiram Melendez, Virgil Blocker and Gary Ruden 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 Chairperson Paul Lassance. Finance Director Ken TeKippe, certified that the meeting was in compliance with the Iowa open meetings law. 2. Paul Lassance moved that the minutes of the January 23, 2008 meeting be approved with the comment relative to Treasuries made by Dubuque Bank and Trust representatives removed. The motion was seconded by Steve Reisdorf and approved unanimously. 3. Mr. Nick Zimmerman, Vice President Business Development and Michael Maloney, Senior Portfolio Manager of US Bank introduced themselves and indicated they have responsibility for city account previously handled by Kim Keuter. Michael Maloney will attend the future annual investment management review and offered to attend additional meetings if City desires. A handout was distributed which provided information on performance, maturity distribution, security type distribution and fixed income market outlook. Michael stressed the high quality of assets in our portfolio and that there are no safety worries. As of March 31, 2008, the cash percentage of the portfolio is higher than bank prefers (34%). This is attributed to market conditions and low yields for quality treasury securities. He plans to put funds to work as opportunities exist over next few months, anticipate yields increasing. Normally should expect closer to 1-2% cash. Inflation issues and the recent Bear Stearns buyout hurt everyone. The Federal Fund rate dropped 75 basis points. Y Paul Lassance provided information to Nick and Michael on City involvement in Iowa Trust Fund situation from several years ago and impact today on investment policy and establishing commission. Michael Maloney confirmed that US Bank is in compliance with the City's current investment policy. Nick and Michael will meet with Ken and Jean to review current investment policy since it is being updated. 4. Ken distributed investment return information for March 31, 2008, from the four investment managers: Dubuque Bank and Trust, U.S. Bank, Dana Investment Advisors and First Community Trust. Also distributed a recap of manager/ custodian annual fees based on March 31, 2008, market values. Information from the four investment managers relative to the level of risk associated with our investments was provided to the City Manager in March and a copy provided to the commission. 5. The Commission reviewed the March 2008 quarterly investment reports prepared by Jean Nachtman. There were no U.S. Treasuries in the current portfolio due to returns. Recent interest rates for certificates of deposit acquired have been in the 2.50-2.60% range. A summary of 44 investment quotes for certificates of deposit bids in the current fiscal year was distributed. U.S. Bank and Dubuque Bank and Trust have been the successful bidders recently. The City recently received $7.8 million of property tax revenue that provided a source of funds to invest. Several certificates will mature in late April and May and will be used to pay principal and interest on bond issues (approximately $3 million due June 1). The City continues to spend escrow and bond funds re-ative to new parking facility adjacent to the new casino in the Port of Dubuque. Limited additional drawdowns on borrowings via State Revolving Loan Fund (SRF) continue for water, stormwater and sanitary sewer projects. 6. Virgil Blocker indicated that he will reapply for the commission. Virgil's current term expires July 1, 2008. 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, July 23, 2008, at 3:00 p.m. in City Hall. A representative from U.S. Bank will be invited to the meeting. A schedule of meeting dates and representatives for the next year was distributed. 9. Gary Ruden moved that the meeting adjourn. The motion was seconded by Virgil Blocker and approved unanimously. The meeting adjourned at 3:50 p.m.