Public administration has two basic missions - execution of laws and providing of public (municipal) services. It is impossible to imagine life in the society without the issuing of official acts, without gas and water services, without transportation, without the appointment of a guardianship, or without the social aid. Considering the fact these services are nothing but activities of general interest, they can only be provided by the public administration, which very goal is the fulfillment of those interests. However, the key role in that is performed by the local government, because the local bodies are the closest to the people of any administrative unit, and, therefore, know the best all the needs of those people. Both the local deliberative body and the executive one have significant competencies in establishing and closing down of municipal services. Moreover, local government can also decide upon the form of managing these services - direct or conceded management. Given the importance of these services, it is imperative for public administration to continuously work on improving their quality. Key words. Public administration, local government, services, municipal services, local council, mayor, direct management of municipal services, conceded management of municipal services.