Minutes Investment Oversight 4 26 06
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Memorandum
TO:
FROM:
Members of City of Dubuque Investment Oversight Advisory Commission
Kenneth J. TeKippe, Finance Director ~ J. U ~
Un-approved Minutes of the April 26, 2006 Meeting of the Investment
Oversight Advisory Commission
RE:
DATE:
April 27, 2006
Commission members Paul Lassance, Chuck Spielman, Gary Ruden and Steve
Reisdorf were present. Ken TeKippe, Finance Director and Jean Nachtman, Assistant
Finance Director were also present.
1. The meeting was called to order at 3:02 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. Steve Reisdorf moved that the minutes of the January 26, 2006 meeting be
approved as written. The motion was seconded by Gary Ruden and approved
unanimously.
3. Mr. Kim Keuter of U.S. Bank provided a handout with information on the portfolio
and investment outlook. Kim reviewed the information and commented that bank
may get out of treasury bills and invest in agencies, will retain portfolio fairly shortly
(2-3 years) to avoid market risk, may be 1 or 2 more bumps in federal funds,
inflation may be warming up, and returns are net of all fees.
Kim confirmed that U.S. Bank is in compliance with the City's current investment
policy.
4. Ken distributed investment return information through March 31,2006 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 31,2006 market values.
Ken indicated that City did not withdraw funds from the investment managers in the
past few months and there are no plans to withdraw during next few months.
5. The Commission reviewed the March 2006 quarterly investment reports prepared
by Jean Nachtman. Jean indicated that our custodian, American Trust and
Savings Bank, has changed the format in the monthly reports. 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 5.0-5.2% range. A recap of investment quotes for 35
CD bids during the current fiscal year was distributed.
Ken indicated that the proceeds from bond borrowings for stormwater projects
($2,900,000) and improvements to Iowa and Locust Street Ramps ($910,000) will
be received May 2, 2006. East Dubuque Savings Bank submitted the best
proposals (5.22% and 5.10%) and will invest the proceeds from both issues until
spent.
6. The committee reviewed a communication from Dubuque Bank and Trust relative
to investment options. After discussion, it was determined that Ken will visit with
the investment manager regarding committee's thoughts and offer them the
opportunity to attend next committee meeting if they would like to discuss further.
7. There was no other communication from the public, commission or staff to report
according to Ken.
8. The next meeting of the Commission is scheduled for Wednesday, July 26, 2006,
at 3:00 p.m. in City Hall. A representative from First Community Trust will be
invited to the meeting.
9. Gary Ruden moved that the meeting adjourn. The motion was seconded by
Charles Spielman and approved unanimously. The meeting adjourned at 3:40 p.m.