Minutes Investment Oversight 10 19 05
TO:
Members of City of Dubuque Investment Oversight Advisory Commission
FROM:
Kenneth J. TeKippe, Finance Director
RE:
Un-approved Minutes of the October 19, 2005 Meeting of the Investment
Oversight Advisory Commission
DATE:
October 24, 2005
Commission members Paul Lassance, Hiram Melendez and Charles Spielman were
present. Ken TeKippe, Finance Director and Jean Nachtman, Assistant Finance
Director were also present.
1. The meeting was called to order at 3:05 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 July 27, 2005 meeting be approved
as written. The motion was seconded by Charles Spielman and approved
unanimously.
3. Mr. Joe Veranth of Dana provided a handout with information to the attendees.
Joe reviewed the report and indicated that the worst is over for fixed income, 50%
of portfolio coupon rates will be reset in the next eight months, defensive strategy
has worked well, predicts increase in interest rates by Feds in each of the next
three meetings with rates at 4.25-4.50% by the end of January, some inflation will
filter through with current unemployment the lowest in years, project 5% return on
portfolio for the next 12 months, Katrina has been a huge personal disaster, but
area represents only 1-1.5% of GNP.
Joe confirmed that Dana is in compliance with the City’s current investment policy.
The firm may begin using floating rate bonds indexed off one and two year
treasuries. (Yield would be 20 points less.)
4. Ken distributed investment return information through September 30, 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 September 30, 2005 market values. A
net fee percentage for the managers was added on the recap, plus a recap of
earnings of managers for recent calendar years was provided.
Ken indicated there may be a need to withdraw funds due to the significant number
of recent and current capital projects that aren’t being financed with bond issues. It
was the consensus of the group that the current market value of funds managed
be utilized for allocation withdrawals from managers. Ken shared information
provided by Mel Miller of Dubuque Bank and Trust on their fees.
5. The Commission reviewed the September 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 4.2-4.5% range.
American Trust and Savings Bank continues to be high bidder on most recent bids.
The City received $7.1 million of property tax revenue from the County Treasurer
on October 17 for September tax collections. Bond proceeds continue to be drawn
down as projects continue. There has been a new bank account established for
Cable Franchise Equipment Fund created with the recent Cable TV franchise
renewal.
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, January 26,
2006, at 4:00 p.m. in City Hall. Time changed from 3:00 p.m. to 4:00 p.m. for the
meeting. A representative from Dubuque Bank and Trust will be invited to the
meeting.
8. Paul Lassance moved that the meeting adjourn. The motion was seconded by
Hiram Melendez and approved unanimously. The meeting adjourned at 3:55 p.m.