Minute Invest Oversight 7 24 03CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
FROM:
RE:
Members of City of Dubuque Investment Oversight Advisory Commission
Kenneth J. -reKippe, Finance Director
Un-approved Minutes of the July 24, 2003 Meeting of the Investment
Oversight Advisory Commission
DATE: July 31, 2003
Commission members Paul Lassance, Charles Spielman, and Hiram Melendez were
present. Ken TeKippe, Finance Director and Dawn Lang, Assistant Finance Director
were 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.
Hiram Melendez moved that the minutes of the April 24, 2003 meeting be
approved as written. The motion was seconded by Chuck Spielman and approved
unanimously.
John Gonner and Chip Murray of First Community Trust represented their firm and
provided a handout with information on Performance Analysis, Portfolio Review,
Yield of 10 Year Treasury for 40 Years, and Yield of 5 Year Treasury for the Last
Year. John indicated their firm's shorter duration and security selection affected
yield year-to-date with the drop in interest rates in May hurting their performance.
May performance lagged benchmark by 86 points, but they should recapture by
year-end. John indicated the firm shadow posts account with minimal differences
in market value from the Custodian, American Trust and Savings Bank, due to
pricing services used. First Community Trust utilizes Reuters and American Trust
and Savings Bank uses FT Interactive for pricing. John stated that their
management fee is calculated based on Amedcan Trust and Savings Bank market
value. The 15-year FNMA pools should benefit portfolio if rates go up. John
believes Iow interest rates will be present for a while.
John indicated that First Community Trust is in compliance with the City's current
investment policy.
The Commission bdefly reviewed the June 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. It was approved to distribute one page of
information on certificates of deposit and sort by maturity date in the future. Ken
distributed a fiscal year 2003 payroll recap and expenditure recap that detailed the
outflow of cash during the past fiscal year. The City is continuing to spend funds
for capital projects.
The review of the City Investment Policy was delayed to a future meeting.
Ken distributed investment return information through June 30, 2003 from the four
investment managers: Dubuque Bank & Trust, U.S. Bank, Dana Investment
Advisors and First Community Trust. Also distributed was a recap of
managedcustodian annual fees based on June 30, 2003 market values.
There was no communication from the public, commission or staff to report
according to Ken.
The next meeting of the Commission is scheduled for Thursday, October 23, 2003,
at 3:30 p.m. in City Hall. A representative from Dana investment Advisors will be
invited to the meeting.
Paul Lassance moved that the meeting adjourn. The motion was seconded by
Charles Spielman and approved unanimously. The meeting adjourned at 4:05 p.m.