Investment Overs Qtrly 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 36th quarterly report.
The IOC members met on May 8, 2002. The transactions reviewed through March 31, 2002
appear to be in compliance with the Articles in the Investment Policy.
Mr. Klm Keuter, Trust Officer of U.S. Bank presented information and answered questions
relative to his bank's investment management work for the City. Mr. Keuter confirmed that
investments with U.S. Bank are in compliance with the City's investment policy. Mr. Keuter
reviewed the portfolio performance, treasury yield curve comparison, economic situation and
fixed income conditions and outlook. Mr. Keuter discussed the implications of the defensive
investment strategy U.S. Bank employed during second half of 2001. The strategy resulted in a
lower overall return in 2001, however the strategy contributed better first quarter returns in 2002.
Mr. Keuter assured the IOC that the recent merger of Mercantile and U.S. Bank brings more
resources to help manage the portfolio.
Ken TeHippe, Finance Director reviewed the schedule of funds managed by their department and
presented information on fees charged by the outside portfolio managers. Mr. TeKippe discussed
the lower interest rates the City is receiving on Certificates of Deposits that are being roiled over.
Mr. TeKippe did report that there seemed to be 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