Minutes Investment Oversight 1 25 05
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Memorandum
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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 January 25, 2005 Meeting of the Investment
Oversight Advisory Commission
DATE:
January 26, 2005
Commission members Paul Lassance, Hiram Melendez, Steve Reisdorf, Charles
Spielman and Gary Ruden were present. Ken TeKippe, Finance Director and Jean
Nachtman, Assistant Finance Director were also present.
1. The meeting was called to order at 3:08 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. Ms. Kim Grant and Ms. Sarah Reicks of Dubuque Bank and Trust provided a
handout with various information to the attendees. Kim reviewed the handout and
projected interest rates for federal funds will go from 2.25% to 3.0%, CPI to grow
.2% per month, inflation to remain low, and a 3.5-4% increase in GDP in 2005.
Approximately $1,000,000 of assts mature in the next couple weeks, which will be
reinvested in 3-5 year maturities, which will increase the current 1.43 weighted
duration. Kim indicated that the CMO's in our portfolio are a small part of large
pools with final maturities out many years.
Kim confirmed that Dubuque Bank and Trust is in compliance with the City's
current investment policy.
3. Hiram Melendez moved that the minutes of the October 28, 2004 meeting be
approved as written. The motion was seconded by Steve Reisdorf and approved
unanimously.
4. Ken distributed investment return information through December 31, 2004 from the
four investment managers: Dubuque Bank & Trust, U.S. Bank, Dana Investment
Advisors and First Community Trust. Also distributed a recap of
manager/custodian annual fees based on December 31,2004 market values.
5. The Commission briefly reviewed the December 2004 quarterly investment reports
prepared by Jean Nachtman. Ken indicated that the City has continued in recent
months to invest in Certificates of Deposit (approximately 6 month maturities) when
investments mature or new funds received, due to higher returns than U.S.
Treasuries. There are no U.S. Treasuries in the current portfolio. Recent interest
rates for certificates of deposit acquired have been in the 3.0% range. A recap of
certificate of deposit bids to date for FY'05 was distributed. The City does not
anticipate adding to or removing funds from the four investment managers during
the balance of FY'05. Limited unspent bond proceeds remain at this time. A
public hearing has been set for the February 7,2005 City Council Meeting to begin
the process of borrowing $1,750,000 for stormwater projects. This should be the
only borrowing during FY'05. Ken indicated the City of Dubuque Comprehensive
Annual Financial Report (CAFR) for fiscal year ended June 30, 2004 was received
in December and a copy is available for any interested committee members.
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, April 27, 2005,
at 3:00 p.m. in City Hall. Future meetings will be scheduled for the fourth
Wednesday at 3:00 p.m. as opposed to Thursday at 3:30 p.m. due to scheduling
conflicts for several commission members. The General Rules of Procedure for
the commission may need to be changed to reflect this change. A representative
from U.S. Bank will be invited to the meeting. Ken will contact our custodian,
American Trust and Savings Bank, to see if interested in attending the next
meeting or presenting any information relative to their custodian work for the City.
8. Charles Spielman moved that the meeting adjourn. The motion was seconded by
Hiram Melendez and approved unanimously. The meeting adjourned at 3:45 p.m.