Investment Report 42nd QtrlyFrom:
To:
Regarding:
City of Dubuque, Investment Oversight Commission
MEMBERS of the CITY COUNCIL OF DUBUQUE
Quarterly Report
In Accordance with Ordinance No. 50-92 (3) Sec. 2-231, City code, the City of Dubuque
Investment Oversight Commission (lOC) respectfully subrrfits the 42nd quarterly report.
The IOC members met on January 22, 2004. The transactions reviewed through December 31,
2003 appear to be in compliance with the Articles in the Investment Policy.
The meeting started with the annual review of the funds managed by Dubuque Bank and Trust
(DB&T). Kim Grant, Trust Officer with DB&T reviewed the current investments that DB&T
manages for the City of Dubuque. Mel Miller, CFA, Senior Vice President and Chief Investment
Officer discussed the reasons for the types of bonds that DB&T has been selecting. The emphasis
continues to be the use of government agency bonds and collateralized mortgage instruments in
the portfolio they manage for the City. Mr. Miller explained how DB&T's portfolio should
minimize the impact of rising interest rates on the value of the principle. The outlook that DB&T
is operating under is that we have seen the bottom for interest rates. The very steep current yield
curve indicates a need to prepare for rising rates over the next year.
Ken TeKippe, City Finance Director reviewed the schedule of funds managed by their
department. The only new development in the market for city funds invested in Certificates of
Deposits was that the newest bank in Dubuque, State Central Bank, is added to the list of local
banks bidding on these funds.
The lOC did not receive any communication or questions from the public.
Respectfully submitted
PaulLassance
Paul Lassance
Chairman
Investment Oversight Commission