Minutes Invest Over 10 23 02 CITY OF DUBUQUE, IOWA
MEMORANDUM
·
TO:
FROM:
RE:
Members of City of Dubuque Investment Oversight Advisory Commission
J. TeKippe, Finance Director ~¢,.~. ~
Kenneth
Un-approved Minutes of the October 23, 2002 Meeting of the Investment
Oversight Advisory Commission
DATE:
October 25, 2002
Commission members Paul Lassance, Stephen Reisdorf, Charles Spielman, 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 3:34 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 July 25, 2002 meeting be approved
as written. The motion was seconded by Hiram Melendez and approved
unanimously.
Joe Veranth from Dana Investment Advisors provided a handout with information
on performance, outlook, asset allocation and current holdings. Joe stated that
Dana provides the lowest interest rate risk of the investment managers and also
provides for diversification and buffer from other managers. Their 2002 return
should be in the mid 4% range. The current Iow interest rates will normally yield a
lower return from the Dana segment of the portfolio, whereas in times of higher
interest rates Dana will normally outperform the other managers. Significant
changes in interest rates are not anticipated in the next few months.
Joe indicated that Dana was in compliance with the City's current investment policy
and there have been no changes in their firm personnel associated with the
Dubuque account. Dana has recently added an investment professional to their
firm. Joe's presentation was very good and provided solid information to everyone
relative to their investment style and return projections.
The Commission briefly reviewed the September 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. Presently there are no
7.
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U.S. Treasuries in the portfolio. There has been a reduction in City funds over the
past few months as capital projects are undertaken. Interest rates for recent
October, 2002 certificates acquired have been in the area of 1.75%. Funds were
available to invest due to the property tax distribution from Dubuque County in mid
October.
The transition to utilizing First Community Trust (FCT) went well on October 1,
2002. One million dollars was transferred from each of the current managers to
FCT. The Investment Advisor Agreement was finalized with assistance from Bill
Noth of the Ahlers law firm in Des Moines.
Final approval of the Revised General Rules of Procedure for the Investment
Oversight Advisory Commission was provided via a motion from Steve Reisdorf
and seconded by Charles Spielman with unanimous approval. Copy to be
attached to meeting minutes.
Ken distributed investment return information through September 30, 2002 from
the three investment managers: Dubuque Bank & Trust, U.S. Bank and Dana
Investment Advisors. First Community Trust will be expected to provide return
information in the future.
There was no communication from the public, commission or staff to report
according to Ken.
The next meeting of the Commission was scheduled for Thursday, January 23,
2002, at 3:00 p.m. in City Hall (start time one half hour earlier than normal).
Representatives from Dubuque Bank and Trust will be invited to the meeting.
Paul Lassance moved that the meeting adjourn. The motion was seconded by
Steve Reisdorf and approved unanimously. The meeting adjourned at 4:20 p.m.
GENERAL RULES OF PROCEDURE
INVESTMENT OVERSIGHT ADVISORY COMMISSION
CITY OF DUBUQUE, IOWA
ARTICLE I
MEETINGS
Regular meetings of the Investment Oversight Advisory Commission shall be held
at 3:30 p.m., on the fourth Thursday of January, April, July, and October, or as
rescheduled by the Commission to be in compliance with open meeting rules.
Special meetings may be called by the Chairperson or upon request of two
members of the Commission.
A quorum of the Commission shall consist of three members.
ARTICLE II
OFFICERS AND DUTIES
The Chairperson will be popularly elected each year during the first commission
meeting after July 1.
The Chairperson shall preside at all meetings and headngs of the Commission. In
the event of the absence or disability of the Chairperson, the Chairperson shall
appoint a Chairperson Pro Tem to preside.
The Chairperson, subject to these rules, shall decide all points of procedure unless
otherwise directed by a majodty of the Commission in session at the time.
The Chairperson shall, subject to these rules, and further instructions from the
Commission and transact the official business of the Commission.
5. City staff shall provide the necessary clerical support upon request from the
commission.
ARTICLE III
AMENDMENTS
These rules may be amended or modified by an affirmative vote of not less than
three (3) members of the Commission, provided that such amendment be
presented in writing at a regular meeting.
ARTICLE IV
ORDER OF BUSINESS AT THE REGULAR MEETING
The order of business at all regular meetings of the Commission shall be as follows:
a. Call to Order.
b. Certification of Compliance with Iowa Open Meetings Law.
c. Review Minutes
d. Review of Quarterly Performance Reports and Investment Summaries
e. Communications from the Public, Commission and Staff.
f. Discuss additional information needs with Staff.
g. Adjourn.
The Commission may, with cause, modify the order of business items.
Passed, approved and adopted the .,2.~ day of ~~ 2002.
Investment Oversight Advisory Commission
From:
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 (lOC) respectfully submits the 38th quarterly report.
The IOC members met on October 23, 2002. The transactions reviewed through September 30,
2002 appear to be in compliance with the Articles in the Investment Policy.
Joseph Veranth, CFA, Executive Vice President with Dana Investment Advisors made a
presentation to the lOC. We had invited Dana for an annual review of their portfolio. Dana's
emphasis is the use of govermnent agency bonds in the portfolio they manage for the city. Mr.
Veranth did an excellent job of explaining how Dana's portfolio should minimize the impact of
rising interest rates on the value of the principle. There was also a very informative discussion of
the current very low interest rate market.
Ken TeKippe, City Finance Director and Dawn Lang, Assistant Finance Director reviewed the
schedule of funds managed by their department. The lower interest rates the City is receiving on
Certificates of Deposits that are being rolled over was not a surprise give the historically lower
interest rates we are seeing. Mr. TeKippe did report that there was rather limited interest by local
financial institutions on bidding for funds when the City wanted to roll a maturing CD over
recently. However, the yield in the CD market is still greater than short term Treasury Bills.
The IOC made some changes to the general rules for the Commission to allow us to have some
more flexibility in scheduling meeting. This would make it easier for Commission members to
schedule around various work conflicts.
The IOC did not receive any communication or questions from the public.
Respectfully submitted.
C au£ Lassance
Paul Lassance
Chairman
Investment Oversight Commission