Minutes_Investment Oversight Advisory Commission 4 27 16 THE CITY 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
Jean Nachtman, Finance Director
RE: Un-approved Minutes of the April 27, 2016 Meeting of the Investment
Oversight Advisory Commission and Chairman's Quarterly Report
DATE: April 30, 2016
Commission members Brad Chalmers, Rachel Ferrero, Paul Lassance, Steve Reisdorf,
and Gary Ruden, and Jean Nachtman, Finance Director, were present.
1. The meeting was called to order at 3:02 p.m. in Conference Room A in City Hall by
Chairperson Paul Lassance. Finance Director Jean Nachtman, certified that the
meeting was in compliance with the Iowa open meetings law.
2. Gary Ruden moved that the minutes of the October 28, 2015 meeting be approved
as written. The motion was seconded by Brad Chalmers and approved unanimously.
3. Wayne A. Sattler, CFA, Vice President & Managing Director Wealth Management,
IT&C for US Bank gave an update on funds they manage for the City. Michael T.
Maloney Senior Portfolio Manager, was unable to attend.
The City's portfolio is position for anticipated long term bond rate increases. The
overall duration of the portfolio is 2.10 years. Most re-investments are laddered in a
2 - 4 year maturity range. This gives the portfolio unparalleled liquidity if the long
term rates should begin to move up. The current returns are in 1.2% to 1.3% range.
Money market accounts are at 0.10%. The current strategy is buy and hold. This
will give the City the best protection from realized losses and preserves the principal.
Feds raised the short term interest rates 25 basis points in December. Unfortunately
this increase was not reflected in the mid or long term bond market. Foreign
markets are still experiencing negative returns. Foreign money is moving to United
States decreasing the demand for higher rates. US Bank optimistically predicts a
possible 25 basis point in June, and maybe in December after the elections.
Wayne Sattler confirmed that US Bank is in compliance with the City's current
investment policy.
4. The Commission reviewed the March 2016 quarterly investment reports. As of
March 31 sc there were $36 million in unspent bond proceeds. New bond proceeds
were received April 4, 2016. A Franchise Fee Class Action Lawsuit, 2016B refunding
existing debt, and 2016 new debt for capital projects were discussed. The 2016B
proceeds will be spent by June 1 st. The 2016A proceeds should be spent within 6
months. The City is waiting on the court's approval of the payout plan. Property
taxes were received in March ($3 million) and April ($12 million). Certificates of
Deposits 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.
5. Jean mentioned that the City's investment policy was last certified by the Association
of Public Treasures of the Unites States and Canada, in 2009. She suggested that
the policy be submitted again this year. A motion was made by Paul Lassance and
seconded by Gary Ruden to submit the existing policy with no changes to the APT
for review and updated certification.
6. Jean distributed investment returns and fees information for the four investment
managers: Dubuque Bank and Trust, U.S. Bank, Dana Investment Advisors and
First Community Trust.
7. There was no communication from the public, commission or staff to report.
8. The next meeting of the Commission is scheduled for Wednesday, July 27, 2016, at
3:00 p.m. A representative from First Community Trust will be invited to the
meeting.
9. Paul Lassance moved that the meeting adjourn. The motion was seconded by Steve
Reisdorf, and approved unanimously. The meeting adjourned at 3:55 p.m.