Minutes Investment Over 4 27 05
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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 27, 2005 Meeting of the Investment
Oversight Advisory Commission
DATE:
May 2, 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 3:04 p.m. in Conference Room A by
Chairperson Pro Tem Hiram Melendez. Finance Director Ken TeKippe, certified
that the meeting was in compliance with the Iowa open meetings law. Paul
Lassance joined the meeting at 3:08 p.m.
2. Steve Reisdorf moved that the minutes of the January 25, 2005 meeting be
approved as written with one spelling correction. The motion was seconded by
Paul Lassance and approved unanimously.
3. Mr. Kim Keuter and Mr. Eric Gardner of U.S. Bank provided a handout with
information on Performance, Maturity Distribution, Security Type Distribution and
Fixed Income Market Outlook to the attendees for their annual investment
manager review. Kim reviewed the handout and detailed additions and
withdrawals to the fund, indicated that 2004 was the first year with negative real
return since 1994 (return 2.4% versus 3.8% CPI), expects two more moves in
federal funds interest rates with moderate growth in economy and inflation under
control. Kim indicated the maturity schedule has changed significantly in the past
year.
Kim confirmed that U.S. Bank is in compliance with the City's current investment
policy.
4. Mr. Gene Hayertz of American Trust and Savings Bank introduced Ms. Patti
Lachecki, Vice President of Operations who reviewed the banks role as custodian
and gatekeeper for the managed funds. Patti explained that their work includes
executing sales, collecting income, monitoring calls and maturities, confirming
settlements are accurate and the accounting is proper and maintaining the sweep
accounts. Last year the funds had approximately 800 purchases and sales and
2000 transactions according to Patti.
5. Ken distributed investment return information through March 31,2005 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, 2005 market values.
6. The Commission briefly reviewed the March 2005 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 3.6% range. American
Trust and Savings Bank has been high bidder on nine out of the last ten bids.
Ken reported that approximately $9 million of bond proceeds for stormwater
projects and infrastructure improvements to Dubuque Industrial Center West were
received on April 18, 2005. Bids were solicited from eight local financial institutions
with bids received from four. The highest bids for investing bond proceeds were
3.40% for $1 ,732,500 from American Trust and Savings Bank, 3.66% for
$4,236,694 from Dubuque Bank and Trust and 3.33% for $2,969,819 from
Dubuque Bank and Trust.
The City received approximately $6.5 million of property taxes from the County on
April 15, 2005 which provided funds for short-term investing. Payments continue
on the new Municipal Services Center with approximately $8 million paid to date
out of the $12 million cost. This project is not being funded with any debt.
7. The General Rules of Procedure for the Investment Oversight Advisory
Commission were reviewed. Copies of the existing rules and proposed new rules
changing the date and time of the quarterly meetings to the fourth Wednesday of
January, April, July and October at 3:00 p.m. were distributed. Gary Spielman
moved that the new rules be approved as drafted. Steve Reisdorf seconded the
motion which was approved unanimously. Copy attached to minutes.
8. There was no communication from the public, commission or staff to report
according to Ken.
9. The next meeting of the Commission is scheduled for Wednesday, July 27,2005,
at 3:00 p.m. in City Hall. A representative from First Community Trust will be
invited to the meeting.
10. Hiram Melendez moved that the meeting adjourn. The motion was seconded by
Steve Reisdorf and approved unanimously. The meeting adjourned at 3:45 p.m.
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GENERAL RULES OF PROCEDURE
INVESTMENT OVERSIGHT ADVISORY COMMISSION
CITY OF DUBUQUE, IOWA
ARTICLE I
MEETINGS
1. Regular meetings of the Investment Oversight Advisory Commission shall be held
at 3:00 p.m., on the fourth Wednesday of January, April, July, and October, or as
rescheduled by the Commission to be in compliance with open meeting rules.
2. Special meetings may be called by the Chairperson or upon request of two
members of the Commission.
3. A quorum of the Commission shall consist of three members.
ARTICLE II
OFFICERS AND DUTIES
1. The Chairperson will be popularly elected each year during the first commission
meeting after July 1.
2. The Chairperson shall preside at all meetings and hearings of the Commission. In
the event of the absence or disability of the Chairperson, the Chairperson shall
appoint a Chairperson Pro Tern to preside.
3. The Chairperson, subject to these rules, shall decide all points of procedure unless
otherwise directed by a majority of the Commission in session at the time.
4. The Chairperson shall, subject to these rules, and further instructions from the
Commission and transact the official business of the Commission.
5. City staff shall provide the necessary clerical support upon request from the
commission.
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ARTICLE III
AMENDMENTS
1. These rules may be amended or modified by an affirmative vote of not less than
three (3) members of the Commission, provided that such amendment be
presented in writing at a regular meeting.
ARTICLE IV
ORDER OF BUSINESS AT THE REGULAR MEETING
1. The order of business at regular meetings of the Commission shall be as follows:
a. Call to order.
b. Certification of compliance with Iowa Open Meetings Law.
c. Review minutes of prior meeting.
d. Review of quarterly performance reports and investment summaries.
e. Communications from the public, commission and staff.
f. Discuss additional information needs with staff.
g. Adjoum.
2. The Commission may, with cause, modify the order of business items.
Passed, approved and adopted the 27th day of April, 2005.
Paullassance, Chairperson
Investment Oversight Advisory Commission