Tax collections rebounding since recession - Toledo News Now, News, Weather, Sports, Toledo, OH

Tax collections rebounding since recession

Lucas County Treasurer Wade Kapszukiewicz Lucas County Treasurer Wade Kapszukiewicz
TOLEDO, OH (Toledo News Now) -

In recent years, local income tax and sales tax collections have picked up following the recession. However, when it comes to return on investment, Lucas County's portfolio is not making as much compared to pre-recession times.

This year that portfolio, currently totaling $218.7 million, will return roughly $2 million, compared to $10 million five years ago. Information provided on Thursday to the Lucas County Investment Advisory Committee shows second quarter returns came in at $537,644, a 36 percent decrease compared to last year.

County Treasurer Wade Kapszukiewicz says that's a result of lower treasury yields and a lower balance, and says the county is looking at ways to maximize returns at a time when interest rates have affected their investment strategy.

"The returns on our portfolio went down," he said. "It's a simple equation of math: Interest rates go down, we're going to be bringing in less revenue in our investments. However, there's a lot of evidence interest rates might increase here."

Kapszukiewicz says one change the county is making is investing $10.2 million in ‘commercial paper,' which he calls a better short-term option than certificates of deposit or money market.       

Mobile users, click on the "Video" button in the app to watch this story. Download our app here.

Copyright 2013 Toledo News Now. All rights reserved.

Powered by Frankly