Minutes_Investment Overisght Advisory Commission 1 23 19 Copyrighted
February 18, 2019
City of Dubuque Consent Items # 1.
ITEM TITLE: Minutes and Reports Submitted
SUMMARY: Arts and Cultural Affairs Advisory Commission of 2/6; City
Council Proceedings of 2/4, 2/7, 2/11, 2/13; Airport
Commission of 1/28; Catfish Creek Watershed
Management Authority of 2/7; Five Flags Civic Center
Commission of 2/4; Investment Oversight Advisory
Commission of 1/23; Library Board of Trustees City
Council Update #179 of 1/24; Zoning Advisory
Commission of 2/6; Zoning Board of Adjustment of 1/24;
Proof of Publication for City Council Proceedings of 1/22,
1/28.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
Arts and Cultural Affairs Advisory Commission Minutes Supporting Documentation
of 2/6/19
City Council Proceedings of 2/4/19 Supporting Documentation
City Council Proceedings of 2/7/19 Supporting Documentation
Airport Commission Minutes of 1/28/19 Supporting Documentation
Caffish Creek Watershed ManagementAuthority Supporting Documentation
Minutes of 2/7/19
Five Flags Civic Center Commission Minutes of 2/4/19 Supporting Documentation
InvestmentOvesightAdvisory Commission Minutesof Supporting Documentation
1/23/19
Library Board of Trustees City Council Update#179 of Supporting Documentation
1/24/19
Zoning Advisory Commission Minutes of 2/6/19 Supporting Documentation
Zoning Board of Adjustment Minutes of 1/24/19 Supporting Documentation
Proof of Publication for City Council Proceedings of Supporting Documentation
1/22/19
Proof of Pubicaton for City Council Proceedings of Supporting Documentation
1/25/19
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TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Paul Lassance, Investment Oversight Advisory Commission
Tami Lansing, Assistant Finance Director
RE: Un-approved Minutes of the January 23, 2019, Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: January 24, 2019
Commission members; Paul Lassance and Gary Ruden, as well as City staff, Tami Lansing,
Assistant Finance Director, Arielle Swift, Accountant.
1. The meeting was called to order at 3:09 p.m. in Conference Room A in City Hall by
Chairperson Paul Lassance. This is an unofficial meeting as a quorum was not
present. Assistant Finance Director Tami Lansing, certified that the meeting was in
compliance with the lowa open meetings law.
2. Paul Lassance moved that the minutes of the October 24, 2018, meeting be
approved. The motion was seconded by Gary Ruden. The motion could not be
approved without a quorum. The October 2018 minutes will be approved at the May
meeting.
3. Tom Stricker, Managing Licensed Wealth Advisor, and Tom Peckosh, Vice
President, Senior Analyst, presented for DB&T. Paul Dickson, the Chief Investment
Officer, manages the porffolio, but is based in New Mexico and was unable to make
it A handout was provided with information on 2018 returns, annual account review
and other information. The information will be provided to missing commission
members.
The City ended 2018 with a 1.66% return in comparison to Barclay's 1.3- Yr
Treasury, which is the index that most closely mirrors the City's portfolio. The City's
portfolio with DB&T has an effective duration of 1.63. This is intentionally short
because there is no additional compensation to go longer.
The portfolio has focused on step coupon securities where rates rise over time, thus
dampening the impact of rising rates. They believe that the Fed is likely to moderate
is monetary tightening program in 2019 and may pause its planned rate hikes during
the first quarter. They are expecting the Feb to raise rates maybe once during the
year providing higher reinvestment rates. Given the shape of the yield curve they
expect reinvestment opportunities to remain on the short end of the curve but will
monitor.
Paul Lassance inquired in they are seeing a lot of refinancing at the callable date
when the coupon increases. Tom was going to investigate this and report back.
Tom confirmed that the investments are in compliance with the City investment
policy.
4. Tami reported on current cash standings. The City continues to ladder CD maturities
to meet operations.
5. The Commission reviewed the December 2018 quarterly investment reports.
6. Ivan Gruhl, CIO with Honkamp Krueger, reached out to Jean Nachtman in January
regarding being heavily invested in bonds. Jean shared the City's investment policy
which is driven from state law and the City's experience in the lowa Trust Scandal
back in the 90's. Nick Molo from Honkamp Kruger attended the meeting to observe
and may apply for a spot on the commission.
7. The next meeting of the Commission is scheduled for Wednesday, April 24, 2019 at
3:00 p.m. A representative from US Bank will be invited to the meeting.
8. Paul Lassance moved that the meeting adjourn. The motion was seconded by Gary
Ruden. The meeting adjourned at 3:42 p.m.