Investment Oversight Quarterly 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 (lOC) respectfully submits the 51 st quarterly report.
The IOC members met on January 25, 2006. The transactions reviewed through December 31,
2005 appear to be in compliance with the Articles in the Investment Policy.
The meeting started with the annual review of the funds managed by Dubuque Bank and Trust
(DB&T). Mel Miller, Chief Investment Officer with DB&T discussed the economic outlook that
DB&T will be using to guide their investment decisions in 2006. Andrew Douglas, Senior
Investment Officer gave a review of interest rates for the past year, current interest rate market
conditions and reviewed the DB&T forecast for rates in the next year.
Kim Grant, Assistant Vice President in the Trust Department ofDB&T reviewed the current
investments that DB&T manages for the City of Dubuque. The emphasis continues to be the use
of government agency bonds and collateralized mortgage instruments in the portfolio they manage
for the City. The only change anticipated is that DB&T will try to increase the duration ofthe
portfolio. The current duration is about 2.5 years compared to the target of 4 to 5 years. Mr. Miller
confirmed that portfolio managed by DB&T is in compliance with the City's current investment
policy.
Ken TeKippe, City Finance Director reviewed the fees schedule of charged by the four investment
managers. There have not been any significant changes in the types of investments utilized by City
funds over the last year. Certificates of Deposits ( CD ) rates continue increase. There was some
discussion about the number of CDs awarded to American Trust. Mr. TeKippe is monitoring the
amount of the deposits to make sure we are under the insure total.
The IOC did not receive any communication or questions from the public.
Respectfully submitted
Pau{ Lassance
Paul Lassance
Chairman
Investment Oversight Commission