If you had a load of land and the opportunity to create a new city with it, who would you give votes to?
Land owners = shareholders
Tax payers = paying customers
Residents = users
Should it be any different than a corporation? Users can vote with their feet. LO/SH hold the bag.
Problem is that town council (at least where I live) make decisions in a bubble - residents are up in arm - and then, only can vote them out post the damage. And the cycle seems to repeat???
In several cities I've lived, many members of the council don't even live in the city. That doesn't necessarily make them bad operators but if they don't know the product and they don't have any stake in the outcome of their actions, it's hard to see how they'd make good choices.