Minutes Investment Over 1 17 02CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
Members of City of Dubuque Investment Oversight Advisory Commission
FROM:
RE:
wn L. ng Assistant F~ance D~rector
- pp ' ry 17, 2002 Meeting of the Investment
Oversight Advisory Commission
DATE:
January 21, 2002
Commission members Paul Lassance, Stephen Reisdorf, Charles Spielman, and Hiram
Melendez were present. Ken TeKippe, Finance Director, (arrived late for meeting) and
Dawn Lang, Assistant Finance Director, were also present.
The meeting was called to order at 3:35 p.m. in Conference Room 3 in City Hall
Annex by Chairperson Paul Lassance. Assistant Finance Director, Dawn Lang,
certified that the meeting was in compliance with the Iowa open meetings law.
Steve Reisdorf moved that the minutes of the October 24, 2001 meeting be
approved as written. The motion was seconded by Hiram Melendez and approved
unanimously.
Mr. Mel Miller, CFA, of Dubuque Bank & Trust presented information and
answered questions relative to his bank's investment management work for the
City. Mel reviewed the economic historical yield curve, 30 year home mortgage
commitment rates and five year swap curve between Aa corporate bonds and
treasury bonds spread. Mel indicated the spread is getting less due to more
confidence in the business community. The Economic and Market forecast was
provided and actual performance of the City's portfolio was reviewed. Mel
commented that the bank continues to invest in Aaa government backed bonds.
Mel confirmed that investments with Dubuque Bank & Trust are in compliance with
the City's investment policy.
The Commission briefly reviewed the December 2001 quarterly investment reports
prepared by Dawn Lang. Dawn distributed revised Dana and Custodial American
Trust & Savings Bank statements, due to an error on market value pricing that was
corrected. Dawn indicated that the City has continued in recent months to invest in
Certificates of Deposit (primarily 6 month) when investments mature due to higher
returns than U.S. Treasuries. Ken reported that there is limited interest at times by
local financial institutions on bidding for funds when the City wants to rebid a
maturing CD.
10.
Dawn distributed investment return information through December 31, 2001 from
the three investment managers: Dubuque Bank & Trust, Firstar and Dana
Investment Advisors.
A ManagedCustodian annual fee analysis, based on December 31, 2001 market
values, was distributed and reviewed. Dawn indicated that Dana is the only
investment manager that adds accrued interest to their fee calculation and that
Ken has a call into Dana to ask for an explanation.
Ken indicated that City [unds are higher than past months due to recent receipt of
$9.5 million of bond proceeds. Proposals were received from two banks for
investing the funds over the next two years with American Trust paying 2.6%
interest on the account for 2002 and 3.0% for 2003.
There was no communication from the public, commission or staff to report
according to Ken TeKippe.
The next meeting of the Commission was scheduled for Thursday, April 25, 2002,
at 3:30 p.m. in City Hall. A representative from Firstar will be invited to the meeting.
Paul Lassance moved that the meeting adjourn. The motion was seconded by
Chuck Spielman and approved unanimously. The meeting adjourned at 4:20 p.m.
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
FROM:
RE:
DATE:
Members of Investment Oversight Advisory Commission
Ken TeKippe, Finance Director ~ ~,~
Dana Investment Advisors - Management Fee Change
JanUary 21, 2002
During the meeting last week, a handout was provided with investment
manager/custodian fees information. As mentioned, 1 was reviewing a billing issue with
Dana and am pleased to report the following. Joe Veranth from Dana nvestment
Advisors, Inc. notified me that Dana will be reducing the fees charged to the City of
Dubuque. The reduction in fees is effective April 1, 2002 and due to Dubuque being a
longstanding Dana client.
The new fee schedule will be .50% on the first $10 million and .30% over, with the
current fees being .60% on the first $10 million and .40% over. This will be a significant
decrease in fees based on the current fund size, approximately $7,800 per year.
KT/gm
cc: Mike Van Milligen, City Manager
Pauline Joyce, Administrative Services Manager