Report Investment Oversight 5 7 07From: City of Dubuque, Investment Oversight Commission
To: MEMBERS of the CITY COUNCIL OF DUBUQUE
Regarding: 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 56th quarterly report.
The IOC members met on Apri125, 2007. The transactions reviewed through March 31, 2007
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 trends and fixed
income conditions and outlook. Mr. Keuter discussed the strategy for the portfolio because of the
current flat yield curve. A larger part of the portfolio has been invested in bonds maturing in the 1
to 3 year range. U.S. Bank is forecasting steady to declining rates in the coming year. Mr. Keuter
intends to extend the maturity of the portfolio as bonds mature.
Ken TeKippe, Finance Director reviewed the schedule of funds managed by their department and
presented information on fees charged by the outside portfolio managers. The commission
reviewed activity on Certificates of Deposits that are being rolled over. There has been a seasonal
increase in the number of Certificates of Deposits outstanding. The IOC did receive
communication from the Association of Public Treasurers concerning recertification of our
Investment Policy. The IOC recommended that the Investment Policy be submitted for
recertification. There have not been any material changes in the Policy sense its last certification,
however the last time it was certified was more than five (5) years ago.
Respectfully submitted
~auC~assance
Paul Lassance
Chairman
Investment Oversight Commission