Why Local Governments Need a Public Finance Attorney

At first glance, the phrase public finance attorney might not spark curiosity. It’s not as headline-grabbing as “mayor indicted” or “city secures $50 million grant,” but that’s precisely the point.

Their work is designed to go unnoticed—to ensure the foundations of public finance are solid, compliant, and quietly effective.

And yet, behind nearly every successful municipal project—schools, stormwater systems, libraries, light rail lines—you’ll find the signature of one.

This isn’t just legal work. It’s public stewardship with a pen and a deep knowledge of government finance law.

Back in 2016, a midsized town in the Midwest found itself in unfamiliar territory. City officials had proudly issued bonds to build a new recreational complex.

Everything seemed above board—until the IRS flagged the bonds as violating rules around “private use.” Legal fees mounted. The town faced possible penalties. A public hearing spiraled into a shouting match.

What was missing? A public finance attorney.

Someone who could’ve flagged the red flags before they turned into lawsuits.

This isn’t a rare tale. Municipalities across the country—large and small—often enter the world of public finance with good intentions and shaky legal footing.

That’s where the quiet value of a public finance attorney shows up, sometimes saving millions before a single dollar is spent.

At their core, public finance attorneys guide cities, counties, school boards, and special districts through the legal maze of public borrowing and funding.

But calling them legal guides feels reductive.

They interpret tax codes, draft bond ordinances, structure leases, write official statements and negotiate with underwriters. They ensure your town isn’t breaking federal securities laws when it issues bonds.

They know whether or not a stormwater project qualifies for tax-exempt financing and what needs to be disclosed to the SEC.

Think of them as legal translators—fluent in the dialect of both Wall Street and City Hall.

As defined by the National Association of Bond Lawyers (NABL), these professionals specialize in the legal aspects of public borrowing, including securities, tax, and constitutional law.

But that’s just the resume. A good public finance attorney is a strategic asset, shaping public infrastructure before the public votes.

Municipal finance is rarely linear. It’s layered with rules—some written, some inferred. And when millions (or even thousands) of taxpayer dollars are involved, even minor legal oversights can become major problems.

Consider the issuance of general obligation bonds. Without proper disclosures and structuring, the city could land in hot water with the SEC.

According to the Municipal Securities Rulemaking Board (MSRB), municipalities must provide continuing disclosures long after the initial bond sale. Miss those, and investor confidence vanishes.

That’s why having a public finance attorney is more than box-checking. It’s about foresight.

Take IRS tax code sections 141-150.

These sections govern everything from private use restrictions to arbitrage rebate rules. Most public officials don’t have these memorized—and they shouldn’t need to.

That’s the job of the public finance attorney, who knows the nuances and can apply them practically during planning.

One lesser-known practice? Many attorneys maintain “post-issuance compliance calendars,” ensuring that ongoing obligations tied to the bond's tax-exempt status don’t fall through the cracks years after closing.

The best public finance attorneys have walked through budget meetings where tempers flared, and policy got personal.

They’ve helped refinance bonds during economic downturns and structured public-private partnerships that pleased the mayor and the auditors.

In one coastal town in California, seawall upgrades were funded through a three-tiered financing model: a mix of FEMA grants, municipal bonds, and lease-revenue financing.

The complexity could’ve derailed the project—especially when state regulators stepped in to demand additional environmental disclosures.

A public finance attorney pulled the threads together, ensuring every piece complied with state law and IRS and SEC guidelines.

The seawall was built. The bonds were sold. The city avoided litigation. And no headlines were written—which is usually a good sign.

 Public finance isn’t static. Regulations shift. Best practices evolve. A public finance attorney isn’t just reacting to rules but anticipating them.

Take the proposed SEC amendments to Rule 15c2-12 on Environmental, Social, and Governance (ESG) bond disclosures.

While many cities hadn’t yet adjusted their offering documents, attorneys plugged into these regulatory conversations and helped their clients prepare in advance.

It’s not unusual for public finance attorneys to serve on working groups or contribute to advisory panels shaping state and federal policy. Some even assist in writing the legislation that governs public borrowing.

They’re not just following the law. Sometimes, they’re helping draft it.

And their authority doesn’t end at the courthouse steps.

Membership in organizations like NABL or the Government Finance Officers Association (GFOA) keeps them in the loop on policy guidance, industry ethics, and the latest disclosure templates.

Compliance is a floor—not a ceiling. The real value of a public finance attorney shows up in the form of trust.

Transparent financial statements. Disclosures that withstand scrutiny. Bond deals that don’t unravel years later.

These attorneys ensure local governments earn—and keep—the confidence of bond investors, rating agencies, taxpayers, and state regulators.

And when they do their job well, communities benefit from lower borrowing costs and more favorable terms.

Detroit’s bankruptcy in 2013 remains one of the most studied municipal crises in U.S. history. One lesson?

Disclosure and legal clarity matter. Had stronger legal counsel and public finance oversight been in place earlier, some financial damage could’ve been minimized.

Today, investors are watching closely. A seasoned public finance attorney helps a city speak fluently to the bond market—and be taken seriously.

 You don’t need a billion-dollar project to need a public finance attorney. Even small towns run into big legal questions.

Here are just a few moments where having one on your side makes all the difference:

• Issuing bonds for a new firehouse or city hall
• Creating a tax increment financing (TIF) district for economic development
• Setting up a joint powers authority for regional water supply
• Administering infrastructure grants tied to the Bipartisan Infrastructure Law (BIL)
• Refinancing outstanding debt for lower interest rates
• Structuring lease-purchase agreements for municipal vehicles or equipment

Each of these involves legal decisions with long-term consequences. And each can benefit from the clarity that a public finance attorney brings to the table.

 Finding the right legal partner starts with asking the right questions.

Look for:

• Experience with local issues: State constitutions and municipal rules vary. Choose someone who knows your jurisdiction.
• Certifications and memberships: NABL membership or attendance at GFOA conferences is a good sign they’re engaged in the field.
• Reputation for clarity: Ask for sample disclosures or bond transcripts they’ve worked on. Good attorneys make the complicated readable.
• Collaborative mindset: Your attorney should work well with your finance director, underwriters, and elected officials.

And trust your instincts. If an attorney talks over you—or fails to grasp your community’s values—they might not be the right fit.

 A public finance attorney won’t take the podium at a ribbon-cutting. They won’t be mentioned in the mayor’s newsletter or appear on the local news when the new library opens.

But their fingerprints are everywhere behind the scenes—ensuring that the dollars are legally spent, the disclosures are accurate, and the public’s trust is well-placed.

In an era where transparency and accountability are paramount, these legal professionals do more than interpret the law—they help shape the future of communities, one ordinance, one bond issuance, and one legal review at a time.

If your organization is navigating the complexities of municipal finance, now is the time to work with a trusted partner.

Contact Endow Law today to see how we can help you succeed as your dedicated public finance law firm. 

What does a public finance attorney do for local governments?

A public finance attorney advises local governments on the legal aspects of issuing bonds, managing debt, and funding public projects. They help ensure compliance with federal, state, and local laws, reducing the risk of legal challenges.

Why is it important to have a public finance attorney involved early in a project?

Involving a public finance attorney early helps structure transactions correctly from the start, preventing costly mistakes and delays. Early guidance also ensures that financing options are maximized while staying within legal frameworks.

How can a public finance attorney help with bond issuances?

A public finance attorney prepares critical documents, reviews disclosure statements, and provides legal opinions needed for bond offerings. Their work protects the government’s interests and reassures investors that the bonds meet legal requirements.

What risks can local governments avoid by hiring a public finance attorney?

Hiring a public finance attorney helps avoid risks like violating tax laws, breaching debt covenants, or improperly using bond proceeds. Their oversight protects the municipality from lawsuits, penalties, and reputational harm.

Are public finance attorneys necessary even for small municipalities?

Yes, even small municipalities benefit from having a public finance attorney. The complexity of public finance laws applies to all government entities, regardless of size, and expert guidance ensures proper compliance and financial health.