Minutes_Investment Overisght Commission 4 25 12Masterpiece on the Mississippi
Dubuque
Ali - America City
2007
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Paul Lassance, Investment Oversight Advisory Commission
Kenneth J. TeKippe, Finance Director
RE: Un- approved Minutes of the April 25, 2012 Meeting of the Investment
Oversight Advisory Commission
DATE: May 10, 2012
Commission members Brad Chalmers, Gary Ruden, Stephen Reisdorf, Ashlie
Simonson and Paul Lassance were present. Ken TeKippe, Finance Director, Jean
Nachtman and Assistant Finance Director were also present.
1. The meeting was called to order at 3:05 p.m. in Conference Room A in City Hall by
Chairperson Paul Lassance. Finance Director Ken TeKippe, certified that the
meeting was in compliance with the Iowa open meetings law.
2. Steve Reisdorf moved that the minutes of the January 25, 2012 meeting be
approved. The motion was seconded by Gary Ruden and approved unanimously.
3. Chris Johnson and Mike Maloney of U.S. Bank provided a handout which provided
information on performance, holdings, maturity information and economic and
financial markets review and outlook. Chris Johnson explained the transition to
Mike Maloney based out of Dubuque location handling our account.
Mike Maloney reviewed the U.S. Bank report. His comments included: continue to
have a AAA portfolio, duration is 1.73, not the time to extend maturities since bond
market topped out so short duration is the way to go, liquidity is key, Feds are
buying 60 -80% of bonds, predict another year before rates go up so meager
returns will continue, companies are making money but just not hiring, staffing
firms doing well, unemployment will remain high for some time.
Mike Maloney confirmed that U.S. Bank is in compliance with the City's current
investment policy.
4. Ken distributed investment return information for March 31, 2012, 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, 2012 market values and new rates.
Ken does not anticipate adding to or withdrawing funds from the investment
managers over the next few months.
5. The Commission reviewed the March 2012 quarterly investment reports prepared
by Finance. The City has continued to invest new funds or maturing investments
in the high yield savings accounts and limited Certificates of Deposit
(approximately 6 month maturities) for the Dubuque Metropolitan Area Solid Waste
Agency. Interest rates on the two high yield savings accounts reviewed. Recent
interest rates for certificates of deposit acquired have been in the .20 -.25 % range.
The City recently received $10.7 million of property tax revenue. Principal and
interest on City debt in the amount of slightly Tess than $9 million is due June 2012.
The City may be issuing (bonds plus SRF loans) approximately $16 million of
bonds in June 2012, anticipate limited interest in investing the funds by the local
banks. Prior bond proceeds continue to be spent along with drawdowns from
State Revolving Loan Fund for some larger projects. Currently 11 prior bond
issues not fully expended and 4 SRF loans not fully drawdown.
The City may need to increase our authorization naming depositories (for Code of
Iowa) with Dubuque Bank and Trust. Most of the unspent bond proceeds,
certificates of deposits and high yield savings account balances have been
invested with them due to lack of interest or need by other local financial
institutions.
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, July 25, 2012,
at 3:00 p.m. in City Hall. A representative from First Community Trust will be
invited to the meeting.
8. Gary Ruden moved that the meeting adjourn. The motion was seconded by Steve
Reisdorf and approved unanimously. The meeting adjourned at 3:45 p.m.