Minutes_Investment Oversight Advisory Commission 1 27 16 THE CITY OF Dubuque
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Masterpiece on the Mississippi 2007-2012-2013
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 January 27, 2016 Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: January 29, 2016
Commission members Brad Chalmers, Rachel Ferrero, Paul Lassance, Steve Reisdorf,
and Gary Ruden were present. Ken TeKippe, Finance Director, Jean Nachtman,
Assistant Finance Director and Arielle Swift, Accountant 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 October 28, 2015 meeting be
approved as written. The motion was seconded by Gary Ruden and approved
unanimously.
Tom Peckosh, Vice President Senior Equity Manager and Tom Stricker, Wealth
Advisor of Dubuque Bank and Trust attended the meeting. Andrew Douglas has
provided annual update in past, but has left employment with the bank. Paul
Dickinson is the manager on the account. A handout was provided with information
on 2015 returns, annual account review and other information.
Comments from bank personnel included: 2016 returns should be better than
2015, may live in low interest rate environment awhile longer; project 1-2 fed rate
increases in 2016 (.25% each) in addition to the .25% increase in December, still
believe short duration best for portfolio since rates projected to increase; when $4
million recent treasury matured, acquired four step coupon treasuries that are AAA
rated that probably will be called at some point; do not have inflation today,
anticipate small increase by year end; December had great jobs report, starting to
see wage increases.
Tom Stricker confirmed that Dubuque Bank and Trust is in compliance with the
City's current investment policy.
3. Ken reported that Jean Nachtman has been appointed Finance Director effective
with his retirement at the end of January. Ken also introduced Arielle Swift who
has been hired as an Accountant to replace Tami Lansing.
The Commission reviewed the December 2015 quarterly investment reports
prepared by Arielle Swift. Considerable unspent bond proceeds remain
(approximately $40 million) as projects taking time to complete. CDs for excess
funds of Dubuque Metropolitan Area Solid Waste Agency and City continue to be
bid. This allows for monitoring of CD rates and also provides investment
opportunities to local financial institutions. Slight uptick in rates in recent months.
Additional bond issues are planned for March 2016. City financial statements for
fiscal year 2015 are being finalized a little later than normal due to opening in
accounting staff and implementing new GASB 68 relative to pension accounting.
4. Ken distributed investment return and fees information for the four investment
managers: Dubuque Bank and Trust, U.S. Bank through December 31 , 2014,
Dana Investment Advisors and First Community Trust.
5. There was no communication from the public, commission or staff to report
according to Ken.
6. The next meeting of the Commission is scheduled for Wednesday, April 27, 2016,
at 3:00 p.m. A representative from U.S. Bank will be invited to the meeting.
7. Gary Ruden moved that the meeting adjourn. The motion was seconded by Steve
Reisdorf and approved unanimously. The meeting adjourned at 3:35 p.m.