Minutes_Investment Oversight Advisory Commission 1 14 16 Copyrighted
February 19, 2018
City of Dubuque Consent Items # 1.
ITEM TITLE: Minutes and Reports Submitted
SUMMARY: Catfish Creek Watershed ManagementAuthority of 1/10;
City Council Proceedings of 2/5, 2/7, 2/8, 2/12; Historic
Preservation Commission of 1/18; Housing Commission of
1/16; Investment Oversight Advisory Commission of 1/24;
Park and Recreation Commission of 1/9; Zoning Board of
Adjustmentof 1/25
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
Caffish Creek Watershed ManagementAuthority Supporting Documentation
Minutes of 1/10/18
City Council Proceedings of 2/5/18 Supporting Documentation
City Council Proceedings of 2/7/18 Supporting Documentation
City Council Proceedings of 2/8/18 Supporting Documentation
Historic Preservation Commission Minutes of 1/18/18 Supporting Documentation
Housing Commission Minutes of 1/16/18 Supporting Documentation
InvestmentOversightAdvisory Commission Minutesof Supporting Documentation
1/24/18
Parks and Recreation Advisory Commission Minutes of Supporting Documentation
1/9/18
Zoning Board of Adjustment Minutes of 1/25/18 Supporting Documentation
THE CTTY OF Dubuque
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TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Paul Lassance, Investment Oversight Advisory Commission
Jean Nachtman, Finance Director
RE: Un-approved Minutes of the January 24, 2018, Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: January 24, 2018
Commission members; Paul Lassance; Rachael Ferraro and Gary Ruden and City staff,
Jean Nachtman, Finance Director; Tami Lansing, Assistant Finance Director; Arielle
Swift, Accountant. Byron Nesler-Perez, a student from the University of Dubuque was
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. Assistant Finance Director Tami Lansing,
certified that the meeting was in compliance with the lowa open meetings law.
2. Gary Ruden moved that the minutes of the October 25, 2017, meeting be
approved. The motion was seconded by Rachael Ferraro and approved
unanimously.
3. Tom Peckosh, Vice President — Senior Equity Manager presented for Dubuque
Bank & Trust. Ross Milne, Associate Portfolio Manager was also in attendance.
The portfolio is actively managed by Paul Dickson in the Albuquerque, NM. Tom
Sticker, in the Dubuque office works closely with Paul and was not available due
to illness. A handout was provided with information on 2017 returns, annual
account review and other information.
The portfolio's performance for the year was 0.99%. Weighted average duration
is 2.40, but if figuring in step-up holdings, it is closer to 2.2. Duration is kept short
to position for future rate increases. The holdings are step-up bonds containing a
provision that allows the bond to be called for redemption on a set anniversary
date. The interest rates continually 'step-up until maturity. Tom expects that as
the rates continue to rise, the bonds will more than likely be called at par. The
bonds were bought at a discount, so a gain will be realized if bonds are called at
par. DB&T is still playing defense with their investment strategy, but expect the
returns in 2018 to be better than 2017.
Tom is expecting the Fed to increase interest rates three times in 2018, the same
as 2017. He is expecting lower unemployment and wage growth in relation to
the Tax Cuts and Jobs Act, leading into possible inflation. The current Fed rate
is 1 .25°k, he would expect it to raise up to 2°k by the end of the year. Rates
haven't been at 2°k since before 2008.
Tom confirmed that the investments are in compliance with the City investment
policy.
4. Jean reported on current cash standings. The City continues to ladder CD
maturities to meet operations. Jean received communication from Collins
Community Credit Union that they are interested in bidding on CD's.
5. The Commission reviewed the December 2017 quarterly investment reports.
6. There was no communication from the public, commission or staff to report
according to Jean.
7. The next meeting of the Commission is scheduled for Wednesday, April 25, 2018
at 3:00 p.m. A representative from US Bank will present.
8. Gary Ruden moved that the meeting adjourn. The motion was seconded by
Rachael Ferraro, and approved unanimously. The meeting adjourned at 330
p.m.