Minutes_Investment Oversigh Advisory Commission 4 22 15 THE MY OF Dubuque
DUB E
Masterpiece on the Mississippi
TO: Members of City of Dubuque Investment Oversight Advisory Commission
FROM: Paul Lassance, Investment Oversight Advisory Commission
Kenneth J. TeKippe, Finance Director
RE: Un-approved Minutes of the April 22, 2015 Meeting of the Investment
Oversight Advisory Commission
DATE: April 27, 2015
Commission members Brad Chalmers, Rachael Ferraro, Paul Lassance, Stephen
Reisdorf and Gary Ruden were present. Ken TeKippe, Finance Director, Jean
Nachtman, Assistant Finance Director and Tami Lansing, Accountant 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. In the future will
email notice of meeting, not fax. Current list of media on public notice list was
distributed.
2. Paul Lassance, Chairperson, administered the Oath of Office for newly appointed
commission member Rachael Ferraro.
3. Stephen Reisdorf moved that the minutes of the January 28, 2015 meeting be
approved as written. The motion was seconded by Gary Ruden and approved
unanimously.
4. Mike Maloney, Senior Portfolio Manager, of U.S. Bank provided a handout which
provided information on performance, portfolio overview, holdings, market review
and outlook and City investment policy.
Mike Maloney reviewed the U.S. Bank report. His comments included: Securities
have very high credit ratings. The high quality of these safe investments
(government agencies and FDIC insured CD's) guarantee a very low risk portfolio.
US Bank does not feel this is the time to extend maturities. Fed fund rate may go
up in June 2015 by 25 basis points. Any changes will be gradual and incremental.
Portfolio continues to have a low yield.
US Bank may invest in 3-4 year maturities as assets mature, plan to keep funds
liquid and have a quick response time for charging interest rates and funds
available if City needs to withdraw.
Mike Maloney confirmed that U.S. Bank is in compliance with the City's current
investment policy.
5. Tami distributed investment return information for March 31 , 2015, 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 March 31 , 2015 market values.
6. The Commission reviewed the March 2015 quarterly investment reports prepared
by Finance. The City has continued to reinvest maturing Certificates of Deposit
(approximately 6 month maturities) for the Dubuque Metropolitan Area Solid Waste
Agency. Continue to have considerable unspent bond proceeds (approximately
$45.5 million) invested from recent years' bond issues, includes $4.5 million for
Dubuque Metropolitan Area Solid Waste Agency. The City recently received $12
million of property tax revenue.
The City will be borrowing approximately $24 million via Sales Tax Increment
Revenue Bonds (Flood Mitigation Program) in May 2015 for Upper Bee Branch
Creek Project. The borrowing is part of the State of Iowa Flood Mitigation Program
Board state sales tax increment funding of$98,484,178 for the Bee Branch
Watershed Flood Mitigation Project. There will also be an approximate $29 million
State Revolving Loan borrowing for the project. The City will also be borrowing
approximately $3 million in May 2015 in Tax Exempt General Obligation Bonds to
pay costs of the settlement of the Franchise Fee litigation.
It may be necessary to withdraw $1 ,000,000 - $1 ,500,000 from the four investment
managers. The amount is allocated based on funds balance previous month end.
The last withdrawal of funds $1 ,500,000 was in 2014 and the previous withdrawal
was in 2004. A letter has been sent to the four managers to alert them of a
potential withdrawal of funds in the next few months. A copy of possible allocation
of funds by managers was distributed.
Fidelity Bank & Trust, headquartered in Dyersville, with a branch office in
Dubuque, requested to bid on City funds and will be added as a potential
depositor. Approval will be requested at the next City Council meeting.
The balance in the general checking account for the City is higher than in the past
since return is now better than the return now on the premium savings account.
7. The date for the annual Boards and Commissions Picnic has changed to
Wednesday, July 22 at Eager Point Park. City Clerk's office should be sending out
information on the picnic in a few weeks.
8. Brad Chalmers and Rachael Ferraro terms on the commission expire on
July 1 , 2015, both are eligible to reapply. City Clerk's office should be forwarding
information to Brad and Rachael to reapply.
9. There was no communication from the public, commission or staff to report
according to Ken.
10. The next meeting of the Commission is scheduled for Wednesday, July 22, 2015,
at 3:00 p.m. in City Hall. A representative from First Community Trust will be
invited to the meeting.
11 . Gary Ruden moved that the meeting adjourn. The motion was seconded by Steve
Reisdorf and approved unanimously. The meeting adjourned at 3:40 p.m.