Minutes Investment Oversight 10 24 07THE CITY OF
DUB E
~-~-~
MEMORANDUM
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Kenneth J. TeKippe, Finance Director ~ . ~~,~~~
RE: Un-approved Minutes of the October 24, 2007 Meeting of the Investment
Oversight Advisory Commission
DATE: October 29, 2007
Commission members Paul Lassance, Steve Reisdorf 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 3:05 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 July 31, 2007 meeting be approved
as written. The motion was seconded by Virgil Blocker and approved unanimously.
3. Mr. Joe Veranth of Dana provided a handout with performance, outlook, asset
allocation and current holdings information. Joe reviewed the report and predicted
one more interest rate cut by Feds, indicated housing market slowdown is running
counter to rest of economy, unemployment may tick up slightly, no recession in
economy projected and CPI to 3.5% by late this year. Joe indicated 3.76% return
through September 30 for the City fund with 4.5-5.0% return for the year projected.
Money market returns will be under 5% for year.
Joe confirmed that Dana is in compliance with the City's current investment policy.
4. Ken distributed investment return information for September 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 September 30, 2007, market values.
5. The Commission reviewed the September 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 were no U.S.
Treasuries at end of quarter. Recent interest rates for certificates of deposit
acquired have been in the 4.80-4.90% range. A summary of investment quotes for
certificates of deposit bids in the current fiscal year was distributed.
Ken indicated that City did not withdraw funds from the investment managers since
the last meeting and there are no plans to withdraw or add to funds during next few
months.
The City recently invested the proceeds from the $23,025,000 Urban Renewal Tax
Increment Revenue Bonds for the Port of Dubuque Parking Ramp in separate
funds including Project Construction Fund $16,314,342 (4.7% certificate of
deposit), Capitalized Interest Fund $3,674,150 (4.9% certificate of deposit), North
Facade Fund $686,000 (4.9% certificate of deposit) and Debt Service Reserve
Fund $2,015,125 (4.75% coupon rate, 4.78% effective rate for 30 year Treasury).
6. An article from the October 24, 2007 Wall Street Journal on Structured Investment
Vehicles (SIV) was distributed. Ken will verify with the managers that the City has
no investments in this type of vehicle. Joe Veranth confirmed that Dana's
managed City funds did not include any SIV.
7. The Investment Policy review was tabled until the January 23, 2008 meeting.
8. There was no communication from the public, commission or staff to report
according to Ken.
9. The next meeting of the Commission is scheduled for Wednesday, January 23,
2008, at 3:00 p.m. in City Hall. A representative from Dubuque Bank and Trust will
be invited to the meeting.
10. Paul Lassance moved that the meeting adjourn. The motion was seconded by
Virgil Blocker and approved unanimously. The meeting adjourned at 3:50 p.m.