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City reports $2,053,691 recovered from Dubuque Bank & Trust; council expands investment and cash-management oversight
Summary
The council received and filed a staff report that Dubuque Bank & Trust paid $2,053,691 in interest earnings owed under a 2007 banking services agreement, and council amended the city code to expand the Investment Oversight Advisory Commission's duties to include cash management and external banking agreements.
The Dubuque City Council on Monday received a staff report that Dubuque Bank & Trust (DB&T) paid $2,053,691 in interest earnings after a review of a 2007 banking services agreement covering city accounts.
City staff said the discrepancy was identified during a recent competitive banking selection process. According to the staff summary, DB&T had previously paid a fixed interest rate during a period of Federal Reserve rate decline but did not adjust the city's rate upward once rates rose. City finance staff and DB&T conducted an analysis and resolved the discrepancy; DB&T paid the city $2,053,691 in corrected interest earnings.
Chief Financial Officer Jennifer Larson and city staff described steps to reduce the risk of similar oversights: assigning a finance staff member to closely monitor accounts and rates, amending the Investment Oversight Advisory Commission’s charter to add cash-management responsibilities, and scheduling quarterly meetings between DB&T and city finance staff to review accounts and opportunities.
The council received and filed the press-release summary on the payment by voice and later unanimously approved an ordinance amendment renaming the Investment Oversight Advisory Commission as the Investment and Cash Management Advisory Commission and expanding its purpose and powers to include review of internal cash-management practices and external agreements (for example, banking services agreements, U.S. Treasuries and certificates of deposit) for compliance and recommended changes.
Mayor Brad Cavanaugh and several council members praised staff work and DB&T’s prompt cooperation. The council voted 7-0 to receive and file the DB&T report and later voted 7-0 to waive three readings and give final passage to the ordinance amendment.
City staff said the $2,053,691 will generally be budgeted as one-time revenue through the Fiscal Year 2026 capital improvement program process, with final allocation decided by the council during the April 2025 budget process. Staff identified finance staff (Jennifer Larson, finance manager Brian DeMoss and purchasing and risk management coordinator Tony Breitbach) and the city attorney’s office as key participants in the review and resolution.
