US Municipal Governments Industry Profile

The US has about 36,000 municipal and township governments with combined annual revenue of more than $1 trillion. The form of municipal government varies widely. Most larger cities have an executive system managed by a mayor or city manager. Many smaller municipalities, especially in the eastern part of the country, are managed by a town board system overseen by a board of selectmen. Some towns in New England still decide many issues by town meetings. Municipal revenue per capita varies widely even among the nation's largest cities, from less than $1,300 in El Paso, Texas, to over $9,600 in New York City; the national average among the nation's 35 largest cities is just under $5,000.

COMPETITIVE LANDSCAPE

The demand for municipal services is driven by population growth and demographics of the local population. Because municipalities must operate with a balanced budget, loss of revenue results in loss of services, usually through job cuts. Municipal government is labor-intensive: average annual revenue per employee is about $100,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Municipal governments provide operating services to residents, formulate and enforce local laws, make infrastructure capital improvements, and provide local planning. The services municipalities provide depend partly on the size of the town or city, but some are basic: a school system, police and fire protection, street and highway maintenance, water and sewer services, waste management, and various social services. Additional services can include municipal courts, jails, hospitals, housing, parks, ...