Investment Oversight 4th Qtrly Report
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 44th quarterly report.
The IOC members met on April 27, 2005. The transactions reviewed through March 31,2005
appear to be in compliance with the Articles in the Investment Policy.
Mr. Kim Keuter and Mr. Eric Gardner from U.S. Bank came before the Commission for the annual
review of the funds they manage for the City. Mr. Keuter, Trust Officer of U.S. Bank presented
information and answered questions relative to his bank's investment management work. Mr.
Keuter confirmed that investments with U.S. Bank are in compliance with the City's investment
policy. Mr. Keuter reviewed the portfolio performance, treasury yield curve comparison, economic
situation and fixed income conditions and outlook. Mr. Keuter discussed the strategy for the
portfolio in the anticipated rising interest rate and inflation for the coming year.
American Trust and Savings Bank ( AT &S ) the custodian for City funds managed by the 4
Investment fund manager made a presentation on their service performed on behalf of the City.
AT&S was represented by Mr. Eugene Hayertz and Ms. Patti Lachecki. AT&S handles all the
purchase and sales orders from the various portfolio managers. They sweep funds not invested or
from maturing securities into Money Markets accounts each day so that all funds are earning
interest for the City. They follow up to see that all trades are made, and if not determine why they
were not executed. They are responsible daily balancing of the accounts and monthly reporting.
Ms. Lachecki discussed upgrades to the Trust Department computer system that will improve the
speed and handling of transactions. There was also some discussion about AT&S being very active
in bidding for Certificates of Deposits that the City uses for some funds. Mr. Hayertz was happy to
report that the strong economy in Dubuque was helping AT&S find attractive investments locally
for those funds.
Ken TeKippe, Finance Director reviewed the schedule of funds managed by their department and
presented information on fees charged by the outside portfolio managers. There was additional
discussion about the interest rates the City is receiving on Certificates of Deposits that are being
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rolled over. The IOC did not receive any communication or questions from the public.
Respectfully submitted
(jJau{ Lassance
Paul Lassance
Chairman
Investment Oversight Commission
')