Minutes_Investment Oversight Advisory Commission 10 25 17City of Dubuque
Copyrighted
November 20, 2017
Consent Items # 1.
ITEM TITLE: Minutes and Reports Submitted
SUMMARY: Cable TV Commission of 11/1; City Council Proceedings
of 11/6, 11/13; Human Rights Commission of
10/9; Investment Oversight Advisory Commission of 10/25;
Library Board of Trustees of 9/27, and Council Update
#164 of 10/19; Resilient Community Advisory Commission
of 7/6, 7/25, 8/3, 9/7, 10/5; Zoning Advisory Commission of
11/1/17.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description
Cable TV Commission Minutes of 11/1/17
City Council Proceedings of 11/6/17
City Council Proceedings of 11/13/17
Human Rights Commission Minutes of 10/9/17
Investment Oversight Advisory Commission Minutes
10/25/17
Library Board of Trustees Minues of 9/27/17
Library Board of Trustees Council Update #164 of
10/19/17
RCAC Minutes of 7/6/17
RCAC Minutes of 7/25/17
RCAC Minutes of 8/3/17
RCAC Minutes of 9/7/17
RCAC Minutes of 10/5/17
Zoning Advisory Commission Minutes of 11/1/17
of
Type
Supporting
Supporting
Supporting
Supporting
Supporting
Supporting
Supporting
Supporting
Supporting
Supporting
Supporting
Supporting
Supporting
Documentation
Documentation
Documentation
Documentation
Documentation
Documentation
Documentation
Documentation
Documentation
Documentation
Documentation
Documentation
Documentation
THE CITY OF
Dus
Masterpiece on the Mississippi
Dubuque
ui•amuriaa city
1 I1 ''
2007-2012
2013.2017
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Paul Lassance, Investment Oversight Advisory Commission
Jean Nachtman, Finance Director
RE: Un -approved Minutes of the October 25, 2017, Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: October 30, 2017
Commission members; Paul Lassance; Steve Reisdorf, Gary Ruden and Franz Becker;
and City staff, Jean Nachtman, Finance Director; Tami Lansing, Assistant Finance
Director; Arielle Swift, Accountant.
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 Jean Nachtman, certified that
the meeting was in compliance with the Iowa open meetings law.
2. Steve Reisdorf moved that the minutes of the July 26, 2017, meeting be
approved. The motion was seconded by Franz Becker and approved
unanimously.
3. Matthey Slowinski, Vice President — Portfolio Manager presented for Dana
Investment Advisors.
Matthew reviewed the handout. Dana continues its buy and hold to maturity
strategy. All investments are AAA with shorter durations to position for
anticipated rate increases. As interest rates increase the market value of
securities decreases, which is not a factor if the investments are held to maturity
and redeemed at par. The 10 -year treasury is current rate is 2.41%. The City is
giving up only 4 basis points by maintaining the shorter durations. Four recent
purchases have maturities before 2021. Highest gains in interest rates have
been on the shorter durations. SBA Bonds moves immediately with the fed
rates. Dana is looking for opportunities to add to this investment category.
Agency investments are laddered to maintain consistent income of the years.
Adjusted rate mortgages will reflect the growth of the economy. The portfolio is
58% invested in mortgage bonds.
Dana's forecast is the global picture is improving with the end of negative interest
rates in Europe and Japan. The Feds are signaling higher interest rates in
anticipation of inflation.
The current Fed Chair, Janet Yellen, is a dove on interest rates. While one of her
possible successors, John Taylor, is extremely hawkish. Dana would expect a
1.25% to 3% increase if Taylor were named. The higher rates would affect the
long-term market but have no material effect on the city's portfolio because of the
short- term strategy. The Fed markers are general inflation and unemployment.
Fed movements are predictable, and it usually signals upcoming movements.
Dana expects a fed increase in December and 2 in calendar year 2018, again
depending on the fed chair selection. Unemployment remains low at 4% which is
considered full employment. Housing values have recovered and 401 K
investments value increasing with the stock market increases.
Matthew confirmed that the investments are in compliance with the City
investment policy.
4. Jean reported on current cash standings. The City continues to ladder CD
maturities to meet operations and upcoming December's semi-annual debt
interest payments.
5. The Commission reviewed the September 2017 quarterly investment reports.
6. There was no communication from the public, commission or staff to report
according to Jean.
7. The next meeting of the Commission is scheduled for Wednesday, January 24,
2018 at 3:00 p.m. A representative from Dubuque Bank & Trust will present.
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.