Minutes_Investment Oversight Advisory Commission 4 2 7 11Masterpiece on the Mississippi
DATE: April 28, 2011
Dubuque
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AII- America City
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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 27, 2011 Meeting of the Investment
Oversight Advisory Commission
Commission members Brad Chalmers, Gary Ruden and Virgil Blocker were present.
Ken TeKippe, Finance Director, Jean Nachtman, Assistant Finance Director and Tami
Lansing, Accountant were also present.
1. The meeting was called to order at 3:05 p.m. in Conference Room A in City Hall by
Acting Chairperson Gary Ruden. Finance Director Ken TeKippe, certified that the
meeting was in compliance with the Iowa open meetings law.
2. Brad Chalmers moved that the minutes of the January 26, 2011 meeting be
approved. The motion was seconded by Virgil Blocker and approved unanimously.
3. Chris Johnson and Taylor Harwood of U.S. Bank provided a handout which
provided information on performance, holdings, maturity information and economic
and financial markets review and outlook.
Taylor reviewed the U.S. Bank report. His comments included: continue to use a
buy and hold strategy, returns in line with intermediate bond index, focus on
agency market, Treasury returns have been higher, plans to reduce the cash
holding (since City has no plans to add, withdraw or reallocate funds with
managers), will invest in 12 -15 month range when $600,000 matures in June, good
news in markets, strong corporate earnings, less interest in bonds, government,
not consumers, have fueled the expansion with QEII which will end in June, project
federal funds rates will begin to increase in third and fourth quarter of 2012 with 3-
4% interest rate in 24 -30 months and 5 -6% interest rate in 48 months driven
primarily by inflation.
Taylor Harwood confirmed that U.S. Bank is in compliance with the City's current
investment policy.
4. Ken distributed investment return information for March 31, 2011, 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 March 31, 2011 market values and new rates.
Ken distributed a handout of questions and answers relative to investing and
deposit of public funds. In February, Dubuque Bank and Trust sold two sizeable
investments that resulted in a realized loss of $106,297 which adversely affected
City cash basis investment returns. Realized loss was offset by discounted price
of new bond purchase. New bond has shorter maturity. An email explaining bank
decision was also distributed.
5. The Commission reviewed the March 2011 quarterly investment reports prepared
by Finance. The City has continued to invest new funds or maturing investments
in the high yield savings accounts and limited Certificates of Deposit
(approximately 6 month maturities) for the Dubuque Metropolitan Area Solid Waste
Agency. Recent interest rates for certificates of deposit acquired have been in the
.40 -.45% range. The City recently received $10.5 million of property tax revenue.
Principal and interest on City debt in the amount of $7.3 million is due June 1,
2011.
The City has not issued any bonds in 2011, but will be doing so later this year.
Prior bond proceeds continue to be spent along with drawdowns from State
Revolving Loan Fund for some larger projects.
6. There was no communication from the public, commission or staff to report
according to Ken.
7. The next meeting of the Commission is scheduled for Wednesday, July 27, 2011,
at 3:00 p.m. in City Hall. A representative from First Community Trust will be
invited to the meeting.
8. Virgil Blocker moved that the meeting adjourn. The motion was seconded by Brad
Chalmers and approved unanimously. The meeting adjourned at 4:00 p.m.