Minutes Invest. Oversight 7 26 06
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Memorandum
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TO:
FROM:
Members of City of Dubuque Investment Oversight Advisory Commission
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Kenneth J. TeKippe, Finance Director
RE:
Un-approved Minutes of the July 26, 2006 Meeting of the Investment
Oversight Advisory Commission
DATE:
August 1, 2006
Commission members Paul Lassance, Charles Spielman, Gary Ruden and Hiram
Melendez 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. Gary Ruden moved that Paul Lassance be reappointed chairperson for the
commission. The motion was seconded by Hiram Melendez and approved
unanimously.
3. Hiram Melendez moved that the minutes of the April 26, 2006 meeting be
approved as written. The motion was seconded by Charles Spielman and
approved unanimously.
4. Mr. Dale Repass and Mr. John Gonner of First Community Trust provided a
handout with information on the portfolio and investment outlook. John reviewed
the information and commented that it has been tough time for bond portfolios.
John indicated that the lion's share of bear market is over, economy is slowing with
the 50/50 chance that Federal Reserve will raise rates in August after 17
consecutive rate increases, project returns well over index by year end, returns
have beat benchmark the majority of time regardless of positive or negative
returns, $50,000 is smallest investment normally with investments held to maturity.
1
Dale provided background information on First Community Trust. First Community
Trust is a chartered national bank which has been in business for 5-112 years with
$200 million in assets and has partnerships with six credit unions plus East
Dubuque Savings Bank and Premier Bank.
John Gonner confirmed that First Community Trust is in compliance with the City's
current investment policy.
5. Ken distributed investment return information through June 30, 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 June 30, 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.
6. The Commission reviewed the June 2006 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 due to higher returns than U.S. Treasuries. There are no U.S.
Treasuries in the current portfolio. Interest rates for certificates of deposit acquired
in June were in the 5.25-5.50% range.
7. The committee reviewed a communication from Dubuque Bank and Trust relative
to investment options. After discussion, it was determined no change in
investment category would be endorsed at this time. Bank representatives can
review further during their next scheduled visit with the committee in January,
2007.
8. There was no other communication from the public, commission or staff to report
according to Ken.
9. The next meeting of the Commission is scheduled for Wednesday, October 25,
2006, at 3:00 p.m. in City Hall. A representative from Dana will be invited to the
meeting.
10. Gary Ruden moved that the meeting adjourn. The motion was seconded by
Charles Spielman and approved unanimously. The meeting adjourned at 3:45 p.m.