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City investing in property tax certificates
| Article published on Thursday, July 2, 2009 |
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PINELLAS PARK – Pinellas Park officials have come up with an innovative way to help beat financial problems in these hard economic times.
They are investing in property tax certificates that are expected to earn about $84,000, and may even result in owning new property in town.
Michael Gustafson, city manager, said the idea came from the city’s finance committee. That committee is composed of Gustafson, Jim Denhardt, city attorney; Ron Miller, finance administrator; Dan Katsiyiannis, budget administrator, and Sonny Kotala, assistant finance administrator.
Tax certificates are issued on property with delinquent taxes. Properties involved are located throughout Pinellas County, but city officials bid only on about $408,000 worth of certificates on Pinellas Park properties. The city was successful in getting 18 of the 23 certificates within its boundaries.
Miller said the interest rate on the certificates purchased range from 3.75 to 5.75 percent, considerably higher than money market and certificates of deposit that earn only about 1 percent.
“We are not interested in taking over property because of failing to pay property taxes,” Miller said. “The city is not in the real estate business.”
City officials were not sure if other local governments are participating in the program.
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Article published on Thursday, July 2, 2009
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