Minutes Invest Overst 1 23 03
TO:
Members of City of Dubuque Investment Oversight Advisory Commission
FROM:
Kenneth J. TeKippe, Finance Director
RE:
Un-approved Minutes of the January 23, 2003 Meeting of the Investment
Oversight Advisory Commission
DATE:
January 28, 2003
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.
1. The meeting was called to order at 3:03 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. Paul Lassance moved that the minutes of the October 23, 2002 meeting be
approved as written. The motion was seconded by Gary Ruden and approved
unanimously.
3. Mel Miller and Kim Grant from Dubuque Bank and Trust provided a handout with
information on performance, duration analysis, yield curve, and economic forecast.
Kim provided information on returns, average duration, and duration for various
indexes. Mel indicated that collaterized mortgage obligations and government
agencies continue to comprise portfolio with some cash presently. Portfolio should
do better with interest rates up over the next 1-3 years. Mel projects 2% inflation
for 2003 and was surprised at 2002 decline in yield curve with treasuries coming
down too far based on economy.
Mel indicated that Dubuque Bank and Trust is in compliance with the City’s current
investment policy.
4. The Commission briefly reviewed the December 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
U.S. Treasuries in the portfolio. Interest rates for recent certificates acquired have
been in the area of 1.40%. The checking/savings accounts balance was higher
than normal due to unspent bond proceeds, Vision Iowa grant funds and the
sizable distribution received from the DRA near year-end.
5. There was discussion on the possibility of reviewing and updating the City
investment policy, as well as determining benchmark indices that individual
investment managers should use for portfolio performance. It was decided that
Ken would send a letter to the four investment managers and custodian seeking
input (suggested additions, deletions, clarifications) on the current policy approved
in 1999. Responses from the firms will be shared at the next meeting.
6. Ken distributed investment return information through December 31, 2002 from the
four investment managers: Dubuque Bank & Trust, U.S. Bank and Dana
Investment Advisors and First Community Trust. A recap of annual fees for
manager/custodian services based on December 31, 2002 market values was also
distributed.
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 Thursday, April 24, 2003, at
3:30 p.m. in City Hall. Representatives from U.S. Bank will be invited to the
meeting.
9. Paul Lassance moved that the meeting adjourn. The motion was seconded by
Steve Reisdorf and approved unanimously. The meeting adjourned at 3:40 p.m.