Minutes Investment Oversight 7 31 07THE CITY OF
DUB E
Memorandum
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Kenneth J. TeKippe, Finance Director ~Ca,~ .~~~~
RE: Un-approved Minutes of the July 31, 2007 Meeting of the Investment
Oversight Advisory Commission
DATE: August 1, 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 B 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. Dale Repass and John Gonner of First Community Trust distributed a handout
which provided information on performance, maturity distribution, security type
distribution and fixed income market outlook.
Dale indicated the firm has grown to $260 million in assets since established in
January 2001 and is now experiencing positive earnings. The firm continues to
work with eight financial institutions including four local: East Dubuque Savings
Bank, Premier Bank, Dutrac Community Credit Union and Dupaco Community
Credit Union.
John reviewed the handout and provided the following comments: for the 58
months the firm has invested City funds, results yielded better returns and lower
volatility than the Lehman 1-5 year government index, one and three year returns
have outperformed index considerably (67% and 91 %) predicts no change in
Federal funds rate the rest of the year, inflation is contained under Chairman of
Federal Reserve Ben Bernanke's leadership and the pause in raising federal funds
rate helping Ben's credibility in markets.
John Gonner confirmed that First Community Trust is in compliance with the City's
current investment policy.
3. Gary Ruden moved that Paul Lassance be reappointed chairperson for the
commission. The motion was seconded by Steve Reisdorf and approved
unanimously.
4. Gary Ruden and Steve Reisdorf were reappointed by City Council in July for three
year term on the committee.
5. Virgil Blocker moved that the minutes of the April 25, 2007 meeting be approved as
written. The motion was seconded by Paul Lassance and approved unanimously.
6. Ken distributed investment return information for June 30, 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 June 30, 2007, market values.
7. The Commission reviewed the June 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
continued in the 5.20-5.30% range. A summary of 52 investment quotes for
certificates of deposit bids in the fiscal year ended June 30, 2007 was distributed.
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.
Ken reviewed the results of the recent Financial Services Request for Proposal.
Dubuque Bank and Trust was selected as primary bank for city funds for the next
five years. Four quality local proposals were received. The City will not incur fees
on the account and will receive earnings at Federal Funds rate (currently 5.25%)
plus 15 basis points if over $2,000,000 in the account. The City should benefit by
at least $40,000 each fiscal year.
8. There was no communication from the public, commission or staff to report
according to Ken.
9. The Investment Policy review was tabled until the October 24, 2007 meeting.
10. The next meeting of the Commission is scheduled for Wednesday, October 24,
2007, at 3:00 p.m. in City Hall. A representative from Dana will be invited to the
meeting.
11. Virgil Blocker moved that the meeting adjourn. The motion was seconded by Steve
Reisdorf and approved unanimously. The meeting adjourned at 3:45 p.m.