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Local Government Finance

Program Contact

 

Cynthia Thayer
303.864.7737
cynthia.thayer@state.co.us

 

Don Merrion
303.864.7741
don.merrion@state.co.us

 

Division of Local Government
1313 Sherman Street, Room 521
Denver, Colorado 80203
Fax: 303.864.7759

 


 

Overview

 

Assistance to local governments is provided in many areas of financial management, including investment and cash management strategies, short and long term capital financing options, revenue development, expenditure control, and banking. Staff are available to provide financial trend analyses, a valuable tool in predicting future outcomes.

 

The Division of Local Government provides professional assistance to local governments in many areas of financial management.

 

The Division of Local Government offers an annual series of workshops usually at 6-9 locations around the state on topics of current financial management interest.

 

Some of the areas in which staff can provide assistance include:

 

  • Investments and Cash Management

 

Local governments can earn additional revenues by initiating a cash management and investment program. Managing cash ensures an efficient use of idle money and increases revenue. Whether money is invested for one month or for five years, local governments must be sure that their investments are legal, safe, and liquid! Please see Legal Investments for Colorado Local Governments for more information.

 

  • Borrowing Money

 

Local governments have several options when it comes to borrowing money - general obligation bonds, revenue bonds, lease purchase, and assessment bonds, among others. Some local projects can benefit from tax-exempt "private activity" bonds. Division staff can explain the different types of financing mechanisms and help determine which is the best for your situation.

 

  • Revenues

 

When a local government needs increased revenue, Division staff can assist by identifying possible new revenue sources and by developing revenue projections.

 

  • Expenditures

 

Local governments have a number of potential ways to cut costs including intergovernmental agreements, private contracting, and accounts control. Awareness of how much individual services cost can lead to an examination of ways to make those services more cost-efficient or pay for themselves.

 

  • Fiscal Policies

 

The Division encourages local governments to have policies on all important operations. Adopting appropriate policies will allow staff to work more efficiently and will be reflective of the governing body's consensus on goals and objectives. Appropriate policies can effect the local government's mission. Assistance is available for establishing policies for debt, investments, purchasing, and expenditure approval.

 

  • Banking

 

One of the most important relationships a local government can have is with its bank. Choosing a bank that provides the services you need at the right price is a crucial part of financial management. Colorado law requires public funds to be deposited in accordance with the provisions of the Public Deposit Protection Act (PDPA).

 

  • Trend Analysis and Projections

 

The Division can assist you in preparing a historical revenue and expenditures trend analysis to give you a picture of your financial condition. The construction of cash flow projections to aid in capital planning and debt planning can be invaluable in complying with legal restrictions such as Article X, Section 20 of the Constitution. Please see Local Government Finances for a basic trend presentation.