Investment Oversight Quarterly Report 7 31 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 57th quarterly report.
The IOC members met on July 31, 2007. The transactions reviewed through June 30, 2007 appear
to be in compliance with the Articles in the Investment Policy.
Dale Repass, Chief Executive Officer and John Gonner, CFA, Senior Vice President from First
Community Trust (FCT) made their annual presentation to the IOC of the portfolio they manage
for the City. Mr. Gonner stated that he had reviewed the City investment policy and that First
Community Trust was operating within compliance of the policy.
Mr. Repass gave a report on the financial status and growth of First Community Trust a Dubuque
based financial institution. He discussed their growth over the last 5 years and the improved
financial condition. FCT has turned into a profitable company with positive cash flow form
operations.
Mr. Gonner then reviewed the investment portfolio managed by FCT and its performance. There
have not been any change in the type of investments utilized FCT. Although interest rates have
been effected by the recent troubles in the sub-prime mortgage lending market, FCT does not see
the Federal Reserve making any significant change in interest rate policy.
Ken TeKippe, City Finance Director reviewed the schedule of funds managed by their department.
City funds continue to have a significant amount invested in CDs with various local financial
institutions. There was a discussion on the new financial services agreement with Dubuque Bank &
Trust. Because of the interest rate DB&T will be paying on the average balance in the city's
checking account there will likely be some shifting of funds from CD to checking account balance.
This action would provide greater liquidity and more income. We reviewed the performance of the
fund manager and the fee they are charging.
The IOC did not receive any communication or questions from the public.
Respectfully submitted
~auC~assance
Paul Lassance
Chairman
Investment Oversight Commission