Minutes Invest Overs 4 24 03CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
FROM:
RE:
Members of City of Dubuque Investment Oversight Advisory Commission
Kenneth J. TeKippe, Finance Director ~.~65>Q. ~ ~
Un-approved Minutes of the April 24, 2003 Meetin9 of the Investment
Oversight Advisory Commission
DATE: April 29, 2003
Commission members Paul Lassance, Stephen Reisdorf, Charles Spielman, Gary
Ruden and Hiram Melendez were present. Ken TeKippe, Finance Director was also
present.
The meeting was called to order at 3:30 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.
Stephen Reisdorf moved that the minutes of the January 23, 2003 meeting be
approved as written. The motion was seconded by Hiram Melendez and approved
unanimously.
Chris Manternach of U.S. Bank provided a handout with information on investment
policy and objectives, performance, maturity distribution, security type distribution
and fixed income market outlook. It was noted that Vanguard GNMA comprises
approximately 15.16% of total fund assets and is invested 99.9% in government
securities. In the past year, the 0-3 year maturities have had a significant increase
since shorter maturities make sense. There was a small decrease in Treasuries
since Government Agencies have been a better buy. The yield curve has been
slightly higher for corporate bonds. Interest rates are expected to increase this
year.
Chris indicated that U.S. Bank is in compliance with the City's current investment
policy.
The Commission briefly reviewed the Mamh 2003 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 1.27-1.33%. The City received $6.4 million in property taxes
from the County in mid April. Recently an account at U.S. Bank was closed and
moved to American Trust and Savings Bank due to a request from Medical
Associates Health Plans, our third party administrator for medical benefits. A
balance of $150,000 is maintained in the account. Information on expenditures by
type will be provided at the next meeting.
Ken distributed investment return information through March 31, 2003 from the four
investment managers: Dubuque Bank & Trust, U.S. Bank, Dana investment
Advisors and First Community Trust.
Responses from the four investment managers and custodian relative to the
current investment policy were distributed. After a brief discussion it was decided
that committee members would review and discuss further at a future meeting.
The topic of possibly utilizing corporate bonds was discussed with issues such as
quality, duration and percentage limits needing review.
7. There was no communication from the public, commission or staff to report
according to Ken.
A listing of commission members with various information relative to each was
cimulated for review and an updated list will be forwarded with the meeting
minutes. A list of tentative future meeting dates and presenters will also be
provided to commission members.
The commission terms of Paul Lassance and Hiram Melendez expire on July 1,
2003. Application forms were provided for completion and return to the City
Clerk's Office.
10.
The next meeting of the Commission is scheduled for Thursday, July 24, 2003, at
3:30 p.m. in City Hall. Representatives from First Community Trust will be invited
to the meeting.
11. Paul Lassance moved that the meeting adjourn. The motion was seconded by
Steve Reisdorf and approved unanimously. The meeting adjourned at 4:10 p.m.