Minutes Investment Oversight 4 25 07THE CITY OF
DUB E
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Memorandum
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Kenneth J. TeKippe, Finance Director ~• C~~'`'~,°
RE: Un-approved Minutes of the April 25, 2007 Meeting of the Investment
Oversight Advisory Commission
DATE: April 26, 2007
Commission members Paul Lassance, Hiram Melendez, Steve Reisdorf, Gary Ruden
and Virgil Blocker were present. Ken TeKippe, Finance Director, and Jean Nachtman,
Assistant Finance Director, were also present.
1. The meeting was called to order at 3:00 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. Steve Reisdorf moved that the minutes of the January 24, 2007 meeting be
approved as written. The motion was seconded by Virgil Blocker and approved
unanimously.
3. Kim Keuter of U.S. Bank distributed a handout which provided information on
performance, maturity distribution, security type distribution and fixed income
market outlook. U.S. Bank's gross returns for 2006 (4.5%) beat the indexes with
compound returns of 5.6% since 1991. The firm is heavier in the 1-3 year maturity
than a year ago (60% versus 45% of fund) with recent returns in 5.4-5.6% range
for bonds acquired. Kim projected a 25 basis point drop in Federal funds in
October and again by calendar year end. He does not anticipate much movement
in rates in next eight months. Kim will extend maturities a bit when/if opportunities
arise. U.S. Bank continues to value its relationship with the City.
Kim Kueter confirmed that U.S. Bank is in compliance with the City's current
investment policy.
4. Ken distributed investment return information for March 31, 2007, 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, 2007, market values.
5. The Commission reviewed the March 2007 quarterly investment reports prepared
by Jean Nachtman. Ken indicated that the City has continued to invest new funds
or maturing investments in Certificates of Deposit (approximately 6 month
maturities), 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 5.20-5.30% range. A summary of 45 investment quotes
for certificates of deposit bids in the current fiscal year was distributed. American
Trust and Savings Bank and Dubuque Bank and Trust have been the successful
bidders recently.
The escrow funds for the new parking facility in the Port of Dubuque were not
received as anticipated in early March. The funds should be received in early
August due to changes in the development agreement with Diamond Jo and after
bids are received for construction of the facility.
The Honkamp Krueger firm will assist in the review of proposals due next week in
response to the recently released Request for Proposal for Financial Services.
There is considerable interest in the major local banks in retaining or obtaining the
City's operating and payroll bank accounts.
6. There was no communication from the public, commission or staff to report
according to Ken.
7. Ken distributed a letter from Association of Public Treasurers relative to Investment
Policy Review and Recertification.
Our investment policy was last recertified in 1999. It was decided to request
information from our investment managers and custodian relative to potential
changes, with limited changes are expected. It is anticipated that the policy will be
recertified later in 2007.
8. The next meeting of the Commission is scheduled for Wednesday, July 25, 2007,
at 3:00 p.m. in City Hall. A representative from First Community Trust will be
invited to the meeting.
9. Virgil Blocker moved that the meeting adjourn. The motion was seconded by Steve
Reisdorf and approved unanimously. The meeting adjourned at 3:35 p.m.