I find that I am very interested in local politics. We've got a City Council election going on at the moment, a bond issue up for consideration, and two County Commissioner seats up. Statewide there are a myriad of things to vote on--Secretary of State, State Treasurer, State Attorney General, my state representative is up unopposed, and the Bureau of Labor and Industries director are (were? I already voted) up on the ballot, as well as several measures:
Oregon 2008 ballot measures - Ballotpedia
I'm also following the governor's race in Washington State very closely, as that's another race that could have an impact on my family and extended family up there; both my father and uncle work for the State of Washington in some capacity.
I've been interested in local politics for quite a while; I have fond memories of a school board candidate's victory party when I was 10 (1992) that was also the victory party of the local state representative, the school board candidate's mother. My mom and I had volunteered for the school board candidate's campaign together.
I think it's important to be familiar with local politics as it can have a direct effect on your life.