Minutes_Investment Oversight Advisory CommissionTHE CITY OF
DUB
Masterpiece on the Mississippi
Dubuque
1111- America Cily
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 January 23, 2013 Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: January 25, 2013
Commission members Paul Lassance, Steve Reisdorf, Brad Chalmers, Gary Ruden
and Rick Runde were present. Ken TeKippe, Finance Director, Jean Nachtman,
Assistant Finance Director and Tami Lansing, Accountant were also present.
1. The meeting was called to order at 3:05 p.m. in Conference Room II in City Hall
Annex by Chairperson Paul Lassance. Finance Director Ken TeKippe, certified that
the meeting was in compliance with the Iowa open meetings law.
2. Paul Lassance administered the Oath of Office to new commission member Rick
Runde.
3. Steve Reisdorf moved that the minutes of the October 24, 2012 meeting be
approved as written. The motion was seconded by Gary Ruden and approved
unanimously.
4. Andrew Douglas, Senior Vice President, Chief Investment Officer and Rita
McCarthy, Vice President, Senior Wealth Advisor of Dubuque Bank and Trust
provided a handout with information on 2012 returns, holdings and strategic
outlook.
Andrew indicated that the 2012 YTD return of 1.35% underperformed the market
since shorter durations than broad indices, 2012 had record low rates. Currently
underweighted in 7 and 10 year durations since believe it is not worth the risk to
own longer term investments. Andrew does not project interest rates going up in
first half of 2013, may increase later in year, does not anticipate FEDS raising rates
until 2015. Andrew projects low growth in first half of 2013 but higher growth in
second half, recent increase in payroll taxes has hurt growth. 6.5% is target
unemployment rate.
Andrew confirmed that Dubuque Bank and Trust is in compliance with the City's
current investment policy and the bank's appreciation of the City's business.
5. The Commission reviewed the December 2012 quarterly investment reports
prepared by Tami Lansing. Considerable unspent bond proceeds as projects
taking longer to complete. Ken indicated that the City continues to use a high yield
savings account option versus certificates of deposit. The accounts at DB &T and
EDSB continue to provide rates slightly higher than the six month CD bids. CDs
for excess funds of Dubuque Metropolitan Area Solid Waste Agency are bid. This
allows for continued monitoring of CD rates and also provides investment
opportunities to local financial institutions. Continues to be limited interest by local
financial institutions in providing bids for certificate of deposit; however, recently
Premier Bank and EDSB have submitted best bids for CDs. Bond proceeds from
three issues received in December with DB &T winning the bids for two issues
(.17 %) and American Trust one bid (.35 %). On June 1, there will be a sizable
amount due for principal and interest payments on bonds, over $10 million. A
large payment from County for property taxes is anticipated in mid -April (perhaps
$10 million).
6. Ken distributed investment return information from the four investment managers:
Dubuque Bank and Trust, U.S. Bank, Dana Investment Advisors and First
Community Trust. Information on returns gross of fees for the past ten calendar
years (2003 -2012) was also distributed. The returns for the past ten years will be
provided to the individual managers. A recap of manager/ custodian annual fees
based on December 31, 2012, market values will be sent with minutes.
Borrowings continue through the State of Iowa Revolving Loan Fund for the large
Water Pollution Control Plant Project. SRF loans require spending City funds for
projects and requesting reimbursement after expenses incurred.
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, April 24, 2013,
at 3:00 p.m. A representative from U.S. Bank will be invited to the meeting.
9. 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.