National Association of Counties * Washington, D.C.           Vol. 31, No. 22 * November 22, 1999

---

Previous story | Table of Contents | Next story

Hats off to … Financial Management

---

Local Government Bond School
Henrico County, Va.
Henrico County recognized the need for local government officials to be familiar with the process and players involved in municipal debt financing. However, there was no formal training for local government finance practitioners in this area.

In response to this need, Henrico County created the Local Government Bond School. The purpose of the Local Government Bond School was to better inform local government officials about the intricacies of municipal debt financing and to provide an opportunity to discuss questions and concerns regarding debt issuance.

Representatives from seven local governments attended the first-ever sessions. A panel of municipal debt finance professionals, representing such areas as investment banking, state issuance authorities, financial advisors, rating agencies, and bond counsel, was assembled to provide information and answer questions. This well-attended event lasted approximately seven hours. The topics discussed included a basic introduction to municipal debt instruments, bond ratings, credit analysis and bond insurance, legal aspects of municipal debt financing, market outlook and refunding, and state involvement in local debt financing.

The Local Government Bond School was a great success because it was not only an educational experience, but it was also a regional event which brought local government officials together to share their concerns about meeting the needs of their jurisdictions while exercising fiscal prudence.

There were no costs incurred by the county because each presenter donated their services and provided their own materials and handouts.

Distraint Warrants
Eagle County, Colo.
A distraint warrant is a physical notice, served by a sheriff’s deputy, that is posted to mobile homes and businesses having delinquent property taxes. For Colorado counties, delinquent taxes are collected only after they have been a year in arrears, and by the time a distraint warrant is usually issued, nearly two years have passed since the taxes have been attached as a lien against the property.

Collecting personal property taxes is particularly difficult for Eagle County, because there are no common license requirements in its seven towns and large unincorporated areas. It’s an even more daunting task because businesses in many of the resort communities throughout the county may not survive for even a year.

To respond to this challenge, a cooperative agreement was reached between the sheriff and the treasurer to facilitate and deliver distraint warrants.

Under this agreement, an employee from the treasurer’s office accompanies a sheriff’s deputy during deliveries of distraint warrants.

The treasurer’s employee records new businesses in operation, notes businesses not long in operation and records corrections to street addresses. A camera is used to document these changes. By using updated records, distraint warrants that were undeliverable in the past can now be served. The treasurer’s employee is also available to explain to property owners the distraint warrant process and the tax collection cycle.

The results of the program show that it has been a tremendous success. The number of distraint warrants issued has decreased dramatically from more than 1,000 annually to only 150.

This success is partially attributed to the fact that tax collections have increased because more distraint warrants are successfully delivered. The time savings also attributed to the success of the program. Before the distraint warrant program, delivering distraint warrants took weeks. Last year, all 150 warrants were served in five days.

There is no additional cost for the treasurer’s employee to accompany a deputy serving distraint warrants.

Programs described in “Hats off” are winners of 1999 NACo Achievement Awards. For more information on these programs, contact the NACo Research Division at 202/393-6226.

(Hats Off was compiled by Jim Culotta, research associate.)