When the Local Government Commission’s next Unit Assistance List comes out, the town of Hertford won’t be on it.
The town, which had been on the LGC’s Unit Assistance List, or UAL, for several years because of its financial health and past fiscal management practices, was notified May 17 that it will not be on the state agency’s UAL for 2023.
Kendra B. Boyle, director of the fiscal management section of the State and Local Government Finance Division in the state Treasurer’s Office, said in a letter to town officials that the LGC had removed Hertford from the UAL after analyzing data from the town’s audited financial statements for fiscal year 2023 “and other information related to (its) financial health and fiscal management.”
“We commend you and your staff on the efforts you made to achieve this goal,” Boyle wrote. “We encourage you to continue to maintain the practices that have led to this accomplishment and to look for opportunities to continue to improve your financial health and fiscal management practices.”
According to the LGC’s website, the agency publishes the UAL “periodically throughout the year” after assessing local governments’ audited financial statements and finding concerns about either their general fund, “water/sewer quick ratio” — ability to pay their water/sewer bills — income, cash flow or internal controls. Local governments can also end up on the list if they don’t submit their audited financial statements to the LGC within four months of the end of the fiscal year on June 30.
Hertford Town Manager Janice Cole said she’s “glad the Local Government Commission recognizes the progress” the town has made improving its financial condition since being placed on the UAL several years ago.
“It sends a message to those who are considering investing in Hertford that we are financially healthy with strong fiscal management practices,” she said. “It also lets the residents know that we are being good stewards of their money.”
She attributes the town coming off the UAL to officials’ “diligence and determination to create a sound and professional financial operation” in Hertford.
“We approached this as a team,” Cole said. “Our finance director, Ashley Eure, focused on every detail of our daily income and expenditures; the assistant (town) manager, Doris Walton, revamped our utilities billing; and I worked with them to assure these best practices were systemized.”
Cole also credited Hertford Town Council for the accomplishment.
“Our mayor, Ashley Hodges, and Council took their oversight responsibilities seriously and attended all of the training that was offered,” she said. “We took advantage of the free studies that were available to make sure our utility rates covered the expenses and Council supported our recommendations for rate changes. And all the while we are doing long-range planning for the capital outlay needed to maintain and replace our infrastructure in years to come.”
Cole was referring to the fact that under state law, city, town and county managers of governing units appearing on the most recently published UAL are required to complete a minimum of six hours of education, including in fiscal management.
Counties, cities and towns on the UAL also must get LGC approval of financing contracts related to the lease, acquisition or construction of capital assets with terms that exceed three years and $50,000. The limit on other local governments not on the UAL are five years and $500,000.
Local governments on the UAL also have to get LGC approval to finance contracts for the purchase, lease, or lease with the option to purchase motor vehicles if the contract amount exceeds $50,000. Units of government not on the UAL aren’t subject to the requirement.
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