Minutes Invest. Oversight 10 26 06
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Memorandum
TO:
Members of City of Dubuque Investment Oversight Advisory Commission
Kenneth J. TeKippe, Finance Director ~ j. (/"; ~
Un-approved Minutes of the October 25, 2006 Meeting of the Investment
Oversight Advisory Commission
FROM:
RE:
DATE:
October 26, 2006
Commission members Paul Lassance, Hiram Melendez, Steve Reisdorf and Gary
Ruden were present. Ken TeKippe, Finance Director, was also present.
1. The meeting was called to order at 3:08 p.m. in Conference Room A in City Hall by
Chairperson Paul Lassance. Finance Director Ken TeKippe, certified that the
meeting was in compliance with the Iowa open meetings law.
2. Hiram Melendez moved that the minutes of the July 26, 2006 meeting be approved
as written. The motion was seconded by Paul Lassance and approved
unanimously.
3. Mr. Joe Veranth of Dana provided a handout with performance, outlook, asset
allocation and current holdings information. Joe reviewed the report and indicated
that unemployment is still low (4.6%), wage growth will keep economy going, does
not believe housing slowdown will hurt economy, core inflation still going up, (near
3%) and 3-1/2 to 4% real growth in GNP for year. Joe predicts one more increase
in interest rates by Feds, rate did not change at today's meeting (5.25%). Joe
indicated that Fed rate should remain over 5% indefinitely. Year to date returns
are lagging, but now is the time for coupons to catch up, currently average seven
months for coupon resets.
Joe confirmed that Dana is in compliance with the City's current investment policy.
4. Ken distributed investment return information through September 30, 2006 from
the four investment managers: Dubuque Bank and Trust, U.S. Bank, Dana
Investment Advisors and First Community Trust and a recap of returns of
managers for past five calendar years. Also distributed a recap of
manager/custodian annual fees based on September 30, 2006 market values.
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Ken indicated there should not be a need to withdraw funds over the next six
months.
5. The Commission reviewed the September 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 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 5.25-5.5% range.
The City received $7 million of property tax revenue from the County Treasurer on
October 13 for September tax collections which provided funds to invest. Bond
proceeds continue to be drawn down as projects continue. Possible loans through
the State Revolving Loan Fund (SRF) are being reviewed for several stormwater
projects. Interest rates and fees totaling 3.25% would be attractive for the 20 year
loans. RFP's for investment advisor services (for bond issues) and primary
banking services should be distributed over the next few months.
6. There was no communication from the public, commission or staff to report
according to Ken.
7. The next meeting of the Commission is scheduled for Wednesday, January 24,
2004, at 3:00 p.m. in City Hall. A representative from Dubuque Bank and Trust will
be invited to the meeting.
8. Gary Ruden moved that the meeting adjourn. The motion was seconded by Paul
Lassance and approved unanimously. The meeting adjourned at 3:45 p.m.