Poor and incompetent representation and management is fixed at the ballot box, not the public trough.
If the federal government keeps bailing out cities and municipalities then they’ll keep perpetuating the problem.
The problems with local governments start with the elected officials either too willing to ignore those who elected them to enact meaningful laws, regulations, or expand and add services that they want, or to easily succumb to the vocal minority who want those same things.
Elected officials and those that are running for office should be required to take a state sponsored course in how government works, the laws that are on the books and how to budget for revenues and expenditures. There should be a course entitled “ What part of NO don’t you understand?”
As staff increases, and services are delivered, the. Their power increases. Next comes unionization of employees until the production vs efficiency curves cross the threshold of decline. By the time any real analysis is performed and the losses totaled it is too late. That money is lossed, the delivery of services becomes a joke, but there is no willingness to cut from the electeds or the electorate.