Local governments needs modernization, which is a spontaneous response to present developments and expected tendencies. A view of the current structure of local governments and tendencies as shared economy, local economic policy, alternative financing of local development, inter-municipal cooperation and Smart Agenda are impulses that can contribute to the further development and local governments’ prosperity.

Smart Agenda is about technologies as well as complex, innovative and sustainable solutions. Therefore, it is necessary to prepare local government for linking this agenda with development of public services and growth of quality of life.