Minutes Investment Over 5 8 02CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
FROM:
RE:
Members of City of Dubuque Investment Oversight Advisory Commission
Kenneth J. TeKippe, Finance Director .
Un-approved Minutes of the May 8, 2002 Meeting of the Investment
Oversight Advisory Commission
DATE: May 13, 2002
Commission members Paul Lassance, Stephen Reisdorf, Charles Spielman, Gary
Ruden, and Hiram Melendez were present. Ken TeKippe, Finance Director, and Dawn
Lang, Assistant Finance Director, were also present.
The meeting was called to order at 3:30 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.
Steve Reisdorf moved that the minutes of the January 17, 2002 meeting be
approved as written. The motion was seconded by Charles Spielman and
approved unanimously.
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. Kim
reviewed the performance summary, maturity distribution, treasury yield curve
comparison, economic situation and fixed income conditions and outlook. U.S.
Bank may have been too defensive in second half of 2001 with heavy weighting in
money market and certificates, but the strategy contributed to first quarter 2002
returns. The change from Firstar to U.S. Bank has provided more resources and
tools for Klm, especially on the fixed income side. Klm confirmed that investments
with U.S. Bank are in compliance with the City's investment policy.
The Commission briefly reviewed the March 2002 quarterly investment reports
prepared by Dawn Lang. Ken indicated that the City has continued in recent
months to invest in Certificates of Deposit (primarily 6 month) when investments
mature due to slightly higher returns than U.S. Treasuries. The most recent
certificate bids (approximately last three months) were awarded as follows: Liberty
Bank (7), East Dubuque Savings Bank (4), and U.S. Bank (3).
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Ken reported that representatives from First Community Trust recently approached
the City again about the possibility of serving as an investment manager. Charles
Spielman moved to invite the First Community Trust firm to the July commission to
provide information and review a proposal. The motion was seconded by Gary
Ruden and approved unanimously.
Ken distributed the general rules of procedure for the Investment Oversight
Advisory Commission that were passed, approved and adopted on June 17, 1993.
It was decided that changes will be considered during the July meeting,
Ken distributed investment retum information through March 31, 2002 from the
three investment managers: Dubuque Bank & Trust, U.S. Bank and Dana
investment Advisors.
Handouts were distributed with current managedcustodian annual fees analysis,
as well as a schedule with reduced Dana fees effective April 1, 2002, and a
schedule potentially investing funds with First Community Trust. Ken agreed to
review what other cities' fees are for managed funds.
The terms of commission members was reviewed with Charles Spielman's term to
expire July 1, 2002. Charles indicated an interest in continuing on the commission
and will submit a board/commission application form to the Clerk's Office.
There was no communication from the public, commission or staff to report
according to Ken TeKippe.
The next meeting of the Commission was scheduled for Thursday, July 25, 2002,
at 3:30 p.m. in City Hall. Representatives from First Community Trust will be invited
to the meeting. A list of tentative future meeting dates and presenters was
distributed.
Steve Reisdorf moved that the meeting adjourn. The motion was seconded by Paul
Lassance and approved unanimously. The meeting adjourned at 4:25 p.m.