As in all levels of government in a democracy, local governments have the power to act because the people all, or mostly, agree to accept this form of government. We collectively agree to pay taxes to support the work of a governmental body, because we can't solve some of the problems of community life individually. So we all agree that we need police forces to provide safety, and we need somebody to organize and run public schools, or build and repair roads, as well as ensuring that local businesses operate fairly and safely. All groups of people eventually organize themselves into some form of hierarchy, with a leadership structure designed to oversee and shape community life.
