Minutes_Investment Overisght Advisory Commission 1 27 11Masterpiece on the Mississippi
TO:
FROM:
RE:
Members of City of Dubuque Investment Oversight Advisory Commission
Kenneth J. TeKippe, Finance Director
Un- approved Minutes of the January 26, 2011 Meeting of the Investment
Oversight Advisory Commission
DATE: January 27, 2011
Dubuque
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Commission members Virgil Blocker, Brad Chalmers and Gary Ruden were present.
Ken TeKippe, Finance Director and Jean Nachtman, Assistant Finance Director were
also present.
1. Virgil Blocker made a motion and seconded by Brad Chalmers and approved
unanimously to elect Gary Ruden as Chairperson for the January and April
meetings since Steve Reisdorf will be unable to attend due to health issues.
2. The meeting was called to order at 3:05 p.m. in Conference Room A in City Hall by
Chairperson Gary Ruden. Finance Director Ken TeKippe, certified that the meeting
was in compliance with the Iowa open meetings law.
3. Virgil Blocker moved that the minutes of the October 27, 2010 meeting be
approved as written. The motion was seconded by Brad Chalmers and approved
unanimously.
4. Mr. Michael Flood, Investment Officer and Ms. Rita McCarthy, Vice President,
Senior Wealth Advisor of Dubuque Bank and Trust provided a handout with
strategic outlook, total return analysis, 2010 returns and holdings. Mr. Andrew
Douglas, Senior Vice President, Chief Investment Officer, Wealth Management
Group was unable to attend due to illness.
Michael joined the bank in 2010 on the fixed income side and provided information
on his past experience. Michael indicated that returns for 2010 trailed index due to
restrictive nature of City's investment policy and money moving into stocks, does
not project interest rates going up until 2012, little room for rates to decrease
though, plan to keep short durations with 3.07 year current effective duration,
presently two large investments with two and ten year maturities in the portfolio,
may add mortgage bond investments when risk benefits improve, will review in
March or April by decreasing each of the current two investments.
Michael confirmed that Dubuque Bank and Trust is in compliance with the City's
current investment policy.
5. The Commission reviewed the December 2010 quarterly investment reports
prepared by the Finance Department. The City has continued to invest new funds
or maturing investments in the high yield savings accounts and some Certificates
of Deposit (approximately 6 month maturities for the Dubuque Metropolitan Area
Solid Waste Agency - DMASWA). Recent interest rates for certificates of deposit
acquired have been in the .35 -.45% range. Minimal interest continues from local
banks for accepting City funds. The City recently received $5.7 million distribution
from the Dubuque Racing Association (DRA).
6. Ken distributed investment return information from the four investment managers:
Dubuque Bank and Trust, U.S. Bank, Dana Investment Advisors and First
Community Trust. Also distributed a recap of manager/ custodian annual fees
based on December 31, 2010, market values. Information on returns gross of fees
for the past eight calendar years (2003 -2010) was also distributed. The returns for
the past eight years will be provided to the individual managers. Ken will contact
American Trust & Savings Bank relative to custodian fees charged.
Ken TeKippe indicated City currently has considerable unspent bond proceeds for
a number of borrowings. Borrowings continue through the State of Iowa Revolving
Loan Fund for a number of projects including two large projects: Water Pollution
Control Plant Project and Water Meter Replacement Project. SRF loans require
spending City funds for projects and requesting reimbursement after expenses
paid.
Ken indicated that City did not withdraw funds from the investment managers since
the last meeting and there are no plans to withdraw or add to funds during next few
months.
7. There was no communication from the public, commission or staff to report
according to Ken.
8. The next meeting of the Commission is scheduled for Wednesday, April 27, 2011,
at 3:00 p.m. in City Hall. A representative from U.S. Bank will be invited to the
meeting.
9. Virgil Blocker moved that the meeting adjourn. The motion was seconded by Brad
Chalmers and approved unanimously. The meeting adjourned at 3:50 p.m.