Minutes Invest. Oversight C. 7 29 05
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Memorandum
TO:
FROM:
Members of City of Dubuque Investment Oversight Advisory Commission
Kenneth J. TeKippe. Finance Director ~. (/ ~
Un-approved Minutes of the July 27, 2005 Meeting of the Investment
Oversight Advisory Commission
RE:
DATE:
July 29,2005
Commission members Paul Lassance, Hiram Melendez, 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 3:00 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. Hiram Melendez moved that the minutes of the April 27, 2005 meeting be
approved as written with one correction in item #7, Charles Spielman's first name
listed as Gary. The motion was seconded by Gary Ruden and approved
unanimously.
3. Mr. John Gonner and Mr. Dale Repass of First Community Trust provided a
handout with information on Performance, Portfolio Composition, Economic and
Interest Rate Outlook and five year Treasury Yield History to the attendees for their
annual investment manager review. John reviewed the handout and indicated
returns have been higher than benchmark with lower risk (22 out of 33 months),
duration of portfolio is 2.7 years and lengthened from last year, volatility in
benchmark is higher than City returns, expect two more moves in federal fund
interest rates (to 3.75%) over next two meetings. Federal fund rate at 1.5% over
inflation would be neutral rate.
John indicated the firm continues to provide sound management to the City and
would like to be considered for additional funds to manage. Ken indicated that with
a number of current projects, additional funds will most likely not be added to
managed funds except for earnings. There may be a need to withdraw funds due
to the significant number of capitol projects underway that aren't being financed
with bond issues.
John confirmed that First Community Trust is in compliance with the City's current
investment policy.
4. Charles Spielman moved that Paul Lassance be reappointed chairperson of the
Investment Oversight Advisory Commission. The motion was seconded by Gary
Ruden and approved by a three to one vote. Charles Spielman was reappointed
by the City Council to the commission for a three year term beginning in July 2005.
5. Ken distributed investment return information through June 30, 2005 from the four
investment managers: Dubuque Sank and Trust, U.S. Sank, Dana Investment
Advisors and First Community Trust. Also distributed a recap of
manager/custodian annual fees based on June 30, 2005 market values. It was
decided to include a fee percentage for the managers on future recaps plus history
of earnings of managers for recent years.
6. The Commission reviewed the June 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 3.5-3.8% range.
American Trust and Savings Sank continues to be high bidder on most recent bids.
Ken distributed and reviewed an expenditure recap as well as a summary of the
investment quotes for certificates of deposit acquired during fiscal year ended June
30, 2005.
7. There was no communication from the public, commission or staff to report
according to Ken.
8. The next meeting of the Commission is scheduled for Wednesday, October 19,
2005, at 3:00 p.m. in City Hall one week earlier than the regularly scheduled date
for the meeting. A representative from Dana will be invited to the meeting.
9. Gary Ruden moved that the meeting adjourn. The motion was seconded by Hiram
Melendez and approved unanimously. The meeting adjourned at 3:55 p.m.
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