Minutes_Investment Oversight Advisory Commission 10 23 19 Copyrighted
November4, 2019
City of Dubuque Consent Items # 1.
ITEM TITLE: Minutes and Reports Submitted
SUMMARY: City Council proceedings of 10/21; Civil Service
Commission of 10/28; Community Development Advisory
Commission of 10/21 ; I nvestment OversightAdvisory
Commission of 10/23; Proof of Publication for City Council
Proceedings of 9/26, 10/7; Proof of Publication for List of
Claims and Summary of Revenues for Month Ending 9/30.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
City Council Proceedings of 10/21/19 Supporting Documentation
Community De�lopmentAdvisory Commission Minutes Supporting Documentation
of 10/21/19
InvestmentOversightAdvisory Commission Minutes of Supporting Documentation
10/21/19
Proof of Publication City Council Proceedings of Supporting Documentation
9/26/19
Proof of Publication City Council Proceedings 10/7/19 Supporting Documentation
Proof of Publication List of Claims/Summary of Supporting Documentation
Revenues ME 9/30/19
Civil Service Commission Minutes of 10/28/19 Supporting Documentation
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TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Gary Ruden, Investment Oversight Advisory Commission
Jennifer Larson, Director of Finance and Budget
RE: Un-approved Minutes of the October 23, 2019, Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: October 23, 2019
Commission members present: Stephen Reisdorf, Gary Ruden, and Luke Schiltz.
Commission member absent: Paul Lassance. City staff present: Jennifer Larson, Director
of Finance and Budget, Jennifer Raber, Finance Manager, and Nathan Kelleher, Finance
Accountant.
1. The meeting was called to order at 3:05 p.m. in Conference Room A in City Hall by
Gary Ruden. This is an official meeting as a quorum was present.
2. Director of Finance and Budget Jennifer Larson certified that the meeting was in
compliance with the lowa open meetings law.
3. Stephen Reisdorf moved that the minutes of the July 24, 2019 be approved. The
motion was seconded by Gary Ruden and approved unanimously.
4. Matthew Slowinski, Senior Vice President and Joe Veranth, Chief Financial Officer
presented for Dana Investment Advisors. A handout was provided with information
on September 30, 2019 returns and other information.
The City ended September 30, 2019 with a 0.81% relative return in comparison to
Barclay's 0.57% 3-month treasury index, which is the index that most closely mirrors
the City's portFolio. The City's portfolio with Dana I nvestment Advisors has an
effective duration of 0.61. The short duration has caused some of the
underperformance recently. The portFolio has focused on mostly mortgage bonds,
callable and bullet agencies, and small business administration bonds.
Joe Veranth said that rates are settling and there are no expectations for significant
rate changes. The gap of the City of Dubuque's investment portFolio to the index
should start increasing. The City of Dubuque portFolio is expected to have an
estimated gain between $170,000-$190,000 net of fees for June 30, 2019. There is
the expectation that the Federal Reserve will cut interest rates again by 0.25% at
their meeting next week due to the economy slowing. Interest rates around the world
are lower than the United States.
Stephen Reisdort inquired how safe Small Business Administration Bonds are. Joe
Veranth responded that the Small Business Administration is a government agency
fully backed by the Federal Government and has a credit rating of Aaa. Banks make
Small Business Administration loans and 85°k of the loan is guaranteed by the
government and can be sold. The principal and interest are totally guaranteed which
is comparable to Freddie Mac.
Joe Veranth confirmed that the investments are in compliance with the City
investment policy.
5. Jennifer Larson reported on current cash standings. The City has $14.1 million in
certificates of deposit and $26.3 million in the Collins Credit Union money market
account which earns the feds fund rate plus 20 basis points. Certificates of Deposit
have been bidding at 1 .64°k-1 .97°k and the City continues to move maturing
Certificates of Deposit to the money market account.
6. The Commission reviewed the September 2019 quarterly investment reports.
7. There was no communication from the public.
8. The next meeting of the Commission is scheduled for Wednesday, January 22, 2020
at 3:00 p.m. A representative from Dubuque Bank and Trust will be invited to the
meeting.
9. Stephen Reisdort moved that the meeting adjourn. The motion was seconded by
Luke Schiltz. The meeting adjourned at 3:41 p.m.