Investment Oversight Commission 63rd Quarterly ReportFrom: City of Dubuque, Investment Oversight Commission
To: MEMBERS of the CITY COUNCIL OF DUBUQUE
Regarding: 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 63rd quarterly report.
The IOC members met on January 28, 2009. The transactions reviewed through December 31,
2008 appear to be in compliance with the Articles in the Investment Policy.
The Commissioners and city staff had their the annual review of the funds managed by Dubuque
Bank and Trust (DB&T). DB&T was represented by Andrew Douglas and William Zaleski. After
an introduction by Mr. Zaleski there was a discussion of current economic conditions and the
outlook by Mr. Douglas.
Mr. Douglas reviewed the current investments that DB&T manages for the City of Dubuque. The
emphasis continues to be the use of government agency bonds, collateralized mortgage
instruments, taxable municipal bonds and some funds invested in bond mutual funds making up
the portfolio they manage for the City.
There were some questions from Mr. Douglas about a few points of clarification on the revised
Investment Policy for the City of Dubuque. The City staff noted the questions so that they could
send a response to all the investment managers. As standard practice we ask the investment
managers if they have reviewed Investment Policy to make sure they are still in compliance. It was
rather reassuring to have someone ask questions on minor points.
Ken TeKippe, City Finance Director reviewed the performance and fees of charged by the four
investment managers. There has been a significant reduction in the yield on Certificates of
Deposits (CD) rates in the last few months, with the last CD issued yielding under 2% APR. CD
rates are reflecting the Federal Reserves near 0 interest rate policy being used to try an stimulate
the economy.
The IOC did receive communication or questions from a couple of the investment managers
asking about investing in corporate bonds. We appreciate their expertise in identifying
opportunities. It is the opinion of the IOC that the Investment Policy, that does not allow this
investment, should not be changed. The top priority should always be preservation of capital, and
that is why we have such limited investment option.
Respectfully submitted
~auCGassance
Paul Lassance
Chairman
Investment Oversight Commission