Investment Report 47th Quarterly
From:
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 (IOC) respectfully submits the 47th quarterly report.
The IOC members met on January 25,2005. The transactions reviewed through December 31,
2004 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. Sarah Reicks, Investment Officer discussed the economic
outlook that DB&T will be using to guide their investment decisions in 2005. The emphasis
continues to be the use of government agency bonds and collateralized mortgage instruments in
the portfolio they manage for the City. Ms. Grant explained how DB&T's portfolio should be
impacted by some maturing issues. They will continue to try and 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 DB&T outlook calls for a relatively flat yield curve
with a bias towards rising rates over the next year.
I
Ken TeKippe, City Finance Director reviewed the schedule of funds managed by their department.
There have not been any significant changes in the types of investments utilized by City funds
over the last year. Certificates of Deposits rates have increase. Recently maturing Certificates of
Deposits are yielding just over 3% compared with about 1.6% a year ago.
The IOC did not receive any communication or questions from the public.
Respectfully submitted
Pau[ Lassance
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Paul Lassance
Chairman
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Investment Oversight Commission
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