Local government

Local government is a generic term for the lowest tiers of governance or public administration within a particular sovereign state. A municipal council or local council is the legislative body of a municipality or local government area. Depending on the location and classification of the municipality it may be known as a city council, town council, town board, community council, borough council, rural council, village council, board of aldermen, or board of selectmen. Local governments typically constitute a subdivision of a higher-level political or administrative unit, such as a nation or state. Local governments generally act within the powers and functions assigned to them by law or directives of a higher level of government. In federal states, local government generally comprises a third or fourth level of government, whereas in unitary states, local government usually occupies the second or third level of government. The institutions of local government vary greatly between countries, and even where similar arrangements exist, country-specific terminology often varies. Common designated names for different types of local government entities include counties, districts, cities, townships, towns, boroughs, parishes, municipalities, municipal corporations, shires, villages, and local government areas. The same term may be used in different countries to refer to local governance institutions with vastly different institutional features, powers, or functions. In addition to general-purpose local governments, some countries have special-purpose local governments (special districts), such as independent school districts, elected water boards, or local service districts. Although there is no single, commonly accepted definition of the term, the most precise definition of local governments is provided by the International Monetary Fund (IMF), which divides the general government sector into three sub-sectors (central, state, and local government) and defines local governments as "institutional units whose fiscal, legislative, and executive authority extends over the smallest geographical areas distinguished for administrative...