Minutes Investment Over 4 29 04
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
Members of City of Dubuque Investment Oversight Advisory Commission
FROM:
Kenneth J. TeKippe, Finance Director
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RE:
Un-approved Minutes of the April 29, 2004 Meeting of the Investment
Oversight Advisory Commission
DATE:
May 4,2004
Commission members Paul Lassance, Hiram Melendez and Steve Reisdorf were
present. Ken TeKippe, Finance Director was also present.
1. The meeting was called to order at 3:45 p.m. in Conference Room A by
Chairperson Paul Lassance. Finance Director Ken TeKippe, certified that the
meeting was in compliance with the Iowa open meetings law.
2. Steve Reisdorf moved that the minutes of the January 22, 2004 meeting be
approved as written. The motion was seconded by Hiram Melendez and approved
unanimously.
3. Kim Keuter of U.S. Bank provided a handout with various information to the
attendees. Kim reviewed performance, maturity, distribution, security type
distribution, yield curve information and market outlook. U.S. Bank plans to
shorten the duration and were in a defensive position at quarter end. Many of the
government issues have callable options. It is projected that the Feds will raise
interest rates 25 basis points every other meeting beginning shortly.
Kim indicated that U.S. Bank is in compliance with the City's current investment
policy.
4. The Commission briefly reviewed the March 2004 quarterly investment reports
prepared by Jean Nachtman. Ken indicated that the City has continued in recent
months to invest in Certificates of Deposit (primarily 6 month) when investments
mature, due to higher returns than U.S. Treasuries. There are no U.S. Treasuries
in the current portfolio. A revised schedule of certificates of deposit and monthly
investment summary was distributed. Approximately $6.5 million in property tax
receipts were received on April 15, 2004. A summary of interest quotes for
certificates of deposits acquired in FY'04 was distributed. At times, the checking
accounts are yielding as much interest as investing in CD's.
5. Ken distributed investment return information tl<1rough March 31, 2004 from the four
investment managers: Dubuque Bank & Trust, U.S. Bank, Dana Investment
Advisors and First Community Trust. Also distributed was a recap of
manager/custodian annual fees based on March 31, 2004 market values.
6. Ken indicated that a new public funds collateralization law became effective March
30, 2004. Under the new law, when a bank accepts a deposit of public funds, the
bank agrees to pledge certain collateral in accordance with Iowa Code section
12C.22 to secure the public funds deposited. If collateral must be pledged, the
bank is known as a "pledging bank." Each bank that accepts public funds must
determine if it must pledge collateral. A bank must pledge collateral, thus
becoming a "pledging bank," if the total amount of public funds (I.e., all deposits by
a city, county, school district, municipal utility, etc. must be included) on deposit in
the bank exceeds the total capital of the bank.
All the local financial institutions responded to a request from Ken indicating that
they were aware of the law and are in current compliance, will be monitoring the
situation and would pledge collateral if required.
7. Ken indicated that a request was made to our custodian of managed funds,
American Trust and Savings Bank, to compute monthly total returns for the four
investment managers. Their proposal of $4,000 ($1,000 per account) of additional
fees was discussed with a decision to not accept their proposal at this time. A
copy of the response from custodian and the request was distributed.
8. The terms of Steve Reisdorf and Gary Ruden expire on July 1, 2004.
Board/Commission Application Forms will be provided to both members with the
anticipation that both would reapply.
9. There was no communication from the public, commission or staff to report
according to Ken.
10. The next meeting of the Commission is scheduled for Thursday, July 22, 2004, at
3:30 p.m. in City Hall. A representative from First Community Trust will be invited
to the meeting. A list of tentative future meeting dates and presenters was
distributed.
11. Paul Lassance moved that the meeting adjourn. The motion was seconded by
Steve Reisdorf and approved unanimously. The meeting adjourned at 4:30 p.m.