Minutes Investment Oversight 1 28 09THE CITY OF Dubuque
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Masterpiece on the Mississippi
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2007
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Kenneth J. TeKippe, Finance Director ~- ~ ~ ~ ~
RE: Un-approved Minutes of the January 28, 2009 Meeting of the Investment
Oversight Advisory Commission
DATE: February 5, 2009
Commission members Paul Lassance, 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. Hiram Melendez moved that the minutes of the October 22, 2008 meeting be
approved as written. The motion was seconded by Virgil Blocker and approved
unanimously.
3. Mr. William Zaleski and Mr. Andrew Douglas of Dubuque Bank and Trust provided
a handout with strategic outlook, total return analysis and 2008 returns. Andrew's
comments included economy's in bad shape, project sluggish for rest of year with
growth in 2010, consumers hurting, more layoffs anticipated, housing slow. Bond
returns were pretty dismal for 2008 with big positive move in last six weeks.
Anticipate our portfolio outperforming benchmark in all five of the scenarios for a
one-year horizon on total return analysis. The Fed Funds having a range (0% to
.25%) is a first in modern investment era.
A couple questions from Andrew on the recently updated investment policy will be
followed up on.
Andrew confirmed that Dubuque Bank and Trust is in compliance with the City's
current investment policy.
4. The Commission reviewed the December 2008 quarterly investment reports
prepared by Jean Nachtman. The City has continued to invest new funds or
maturing investments in Certificates of Deposit (approximately 6 month maturities),
due to higher returns than U.S. Treasuries. There continue to be no U.S.
Treasuries at end of quarter in our investment portfolio. Recent interest rates for
certificates of deposit acquired have been in the 2.0-2.5%.
5. Ken distributed investment return information for December 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 December 31, 2008, market values.
Ken TeKippe indicated City still has $11 million in unspent bond proceeds for a
number of borrowings, largest being Port of Dubuque Parking Ramp. In addition,
borrowings continue through the State of Iowa Revolving Loan Fund for a number
of projects, engineer and design work for Upper and Lower Bee Branch and Water
Pollution Control Plant work and construction work on West 32nd Street Detention
Basin Project.
Ken indicated that City did not withdraw funds from the investment managers since
the last meeting and there are no plans to withdraw or add to funds during next few
months.
6. The recently updated Investment Policy was forwarded to the Association of Public
Treasurers of the United States & Canada in early December. A reply relative to
the City receiving recertification has not been received at this point.
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, April 22, 2009,
at 3:00 p.m. in City Hall. A representative from U.S. Bank will be invited to the
meeting.
9. Virgil Blocker moved that the meeting adjourn. The motion was seconded by Gary
Ruden and approved unanimously. The meeting adjourned at 3:50 p.m.