Investment Oversight Qtrly Report (2)
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 (IOC) respectfully submits the 52nd
quarterly report.
The IOC members met on April 26, 2006. The transactions reviewed through
March 31, 2006 appear to be in compliance with the Articles in the Investment Policy.
Mr. Kim Keuter from U.S. Bank came before the Commission for the annual review of
the funds they manage for the City. Mr. Keuter, Trust Officer of U.S. Bank presented
information and answered questions relative to his bank's investment management
work. Mr. Keuter confirmed that investments with U.S. Bank are in compliance with the
City's investment policy. Mr. Keuter reviewed the portfolio performance, treasury yield
curve comparison, economic situation and fixed income conditions and outlook. Mr.
Keuter discussed the strategy for the portfolio because of the unusual flat yield curve.
With interest rate the same in the short term market and the long term market he does
not intend to go beyond the 2 year time frame with any funds that need to be reinvested
in order to minimize risk in this unusual market condition.
Ken TeKippe, Finance Director reviewed the schedule of funds managed by their
department and presented information on fees charged by the outside portfolio
managers. There was additional discussion about the interest rates the City is receiving
on Certificates of Deposits that are being rolled over. There has been a substantial
increase in the yield on Certificates of Deposits during the last year. The IOC did receive
communication and questions from Dubuque Bank and Trust about different investment
options for the portfolio they manage. The IOC decided to invite DB&T in to discuss
possible changes during our July meeting.
Respectfully submitted
Pau[ Lassance
Paul Lassance
Chairman
Investment Oversight Commission