Investment Oversight Commission 65th Quarterly ReportFrom: City of Dubuque, Investment Oversight Commission
To: MEMBERS of the CITY COUNCIL of DUBUQUE, IA.
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 65~' quarterly
report.
The IOC members met on July 22, 2009. The transactions reviewed through June 30,
2009 appear to be in compliance with the Articles in the Investment Policy.
Mr. Dale Repass, CEO and Mr. John Gonner, CFA, Senior Vice-President from First
Community Trust came before the Commission for the annual review of the funds they
manage for the City. Mr. Gonner presented information and answered questions relative
to the Trust's investment management work. Mr. Gonner confirmed that investments
with the Trust are in compliance with the City's investment policy. Mr. Gonner reviewed
the portfolio performance, treasury yield curve comparison, economic trends and fixed
income conditions and outlook. Mr. Gonner stated that the City portfolio has
experienced better returns with significantly lower volatility than a comparative index.
Mr. Gonner is comfortable that inflation and interest rates will remain low.
In our follow-up review of fees for advisory and custodial services, the IOC had a
lengthly discussion about the cost of services. It was noted that Dana had reduced its fee
and American Trust custodial fees were also slightly reduced. Changes in technology
should have lowered their cost for these services in the opinion of the IOC. Based on
what is being provided with these services, the IOC will revisit at a later date the
possibility that the City Staff go out for Request for Proposals to insure that the City is
getting the best price and services for these fees.
Ken TeKippe, Finance Director reviewed the schedule of funds managed by his
department and presented information on fees charged by the outside portfolio managers
as previously stated. The IOC reviewed activity on Certificates of Deposits (CD) that are
being rolled over. Bidding on new CD issues continues to be very weak. Rates on new
CD are at record low levels.
The IOC wishes to recognize Paul Lassance for his many years of service to the City as a
member and Chairman of the IOC. His dedication and service have been outstanding.
Member Stephen V. Reisdorf chaired the July 22, 2009 meeting. It is expected that at its
October 2009 quarterly meeting the IOC members will elect a permanent Chairman.
Respectfully submitted,
Stephen V. Reisdorf
Chairman pro-tem
Investment Oversight Commission